Investment Master Custody and Related Services - UPDATED

The State of Tennessee Treasury Department is seeking proposals for comprehensive investment master custody and related services through a Request for Proposals (RFP) with contract number 30901-62826. The procurement covers multiple state investment programs, including the Tennessee Consolidated Retirement System, Tennessee Chairs of Excellence endowment fund, Tennessee Promise endowment fund, Tennessee Other Post-Employment Benefit Trust, Tennessee Qualified School Construction Bond program, and K-12 Mental Health Trust fund. Required services encompass a broad range of financial management activities, such as client relationship services, account administration, global master custody, trade processing, securities litigation, portfolio accounting, performance reporting, corporate actions, cash investment, and daily portfolio valuation. Respondents must have a minimum of five years of master custody experience, with at least three U.S.-based pension fund clients managing over $1 billion in international marketable securities. The evaluation will use a points-based system across four categories: general qualifications (10 points), technical qualifications (50 points), oral presentations (10 points), and cost proposal (30 points). Key dates include a Technical Response and Cost Proposal deadline of May 8, 2025, oral presentations for finalists scheduled for June 2-3, 2025, and an anticipated contract award by June 11, 2025. The contract term will be 65 months, commencing on July 1, 2025.

While no specific set-aside designations or restrictions for disadvantaged enterprises are explicitly mentioned in the provided documents, the RFP requires the successful contractor to have at least $5 trillion in tax-exempt master custody assets as of June 30, 2024, and provide a dedicated team of at least two full-time staff solely responsible for the State's account. Pricing will be structured as a flat monthly rate for core services, with optional services billed at an hourly rate. The maximum contract liability will be specified in the final contract, and the State reserves the right to terminate the contract with appropriate notice. No incumbent vendors are identified in the current documentation. The procurement suggests a sophisticated financial services requirement that will likely involve complex technological integration with existing state investment management systems. While a specific budget range is not disclosed, the comprehensive nature of the services and the multiple investment programs involved indicate a significant potential contract value.