Investment Advisory Services and Municiple Financial Products Advisory Services

The City of Waco, Texas Purchasing Services is requesting proposals for Investment Advisory Services and Municipal Financial Products Advisory Services under RFP 2026-007, with proposals due March 9, 2026 at 2:00 p.m. CST. Respondents may bid on one or both service areas; the City reserves the right to engage one firm for both areas or separate firms for each depending on demonstrated qualifications.

Service Area 1 encompasses sub-advised discretionary investment advisory services including investment strategy and policy development, portfolio management guidance, performance monitoring and quarterly reporting to City Council, safekeeping and custody oversight, and compliance with the Texas Public Funds Investment Act. Service Area 2 covers specialized municipal financial products advisory including debt-related fund structuring, swap and derivative advisory, energy risk management, trade maintenance and compliance reporting, and an optional secure web-based platform for debt and investment modeling.

Qualified respondents must demonstrate a minimum of five years' experience providing relevant advisory services to Texas public entities. Service Area 1 requires Registered Investment Advisor registration; Service Area 2 requires Municipal Advisor registration with the SEC and MSRB, plus Commodity Trading Advisor registration for energy commodity transactions. Advisors must serve as fiduciaries with no material conflicts of interest and maintain professional liability insurance of at least $2 million and general liability insurance of at least $1 million prior to contract execution.

The initial term is three years from execution with two optional one-year renewal periods. Either party may terminate with 90 days' written notice without cause. Fee structures may include annual retainers, basis points on assets under advisement, hourly rates, or transaction-based fees; respondents must confirm no third-party compensation related to City transactions.

For Service Area 1, evaluation weights firm qualifications and TFPIA expertise (35%), proposed approach and methodology (35%), staff qualifications and resources (15%), experience with Texas public entities (10%), and fee structure (5%). Service Area 2 evaluation emphasizes firm qualifications and specialized expertise (25%), proposed approach and methodology (30%), experience with municipal financial products (20%), fee structure (15%), and staff qualifications (10%).

Addendum #1, posted March 9, includes a comprehensive Investment Report detailing the City's portfolio (par value $922.7 million as of December 31, 2025) and performance for the fourth quarter of 2025. Respondents must sign and return the addendum acknowledgment with their proposal.