Investment Provider Services for the State of Florida Deferred Compensation Plan

The Florida Department of Financial Services is issuing an Invitation to Negotiate (ITN) for Investment Provider Services for the State of Florida Deferred Compensation Plan, a 457(b) supplemental retirement program serving approximately 92,000 participants with $6 billion in assets. The solicitation seeks a single contractor to provide comprehensive record keeping and investment provider services, with a five-year contract term and potential five-year renewals. Key deliverables include offering a robust investment menu featuring equity and bond products, fixed income options, target date funds, low-cost index funds, a brokerage service, and an advisory/managed account service. The contractor must provide dedicated account representatives, participant education materials, a plan website, and telephone support, while managing payroll contributions, participant transactions, and maintaining high data security standards. The pricing model requires a revenue-neutral approach, with an explicit fee collected monthly from participants not exceeding $6,000 annually per participant, and the contractor must remit 0.037% of participant plan assets monthly to the Department. Responses are due on January 14, 2026, with a public opening scheduled the same day, and all submissions must be filed through the Vendor Information Portal (VIP).

The solicitation includes several mandatory certification requirements that restrict potential respondents, including demonstrating prior experience administering an employer retirement program with over $3 billion in assets and 45,000 accounts. Vendors must have at least 15 full-time equivalent account representatives dedicated specifically to this plan and must comply with various state regulations, including E-Verify participation and non-engagement in boycotts of Israel. While no specific set-aside designations are mentioned, vendors must confirm they have not had public employer contracts terminated in the past year and must be registered with the Florida Department of State. The current plan infrastructure involves three existing contractors and a third-party administrator, which the new contractor will need to seamlessly integrate and replace. Though a specific award value is not explicitly stated, the plan's $6 billion in assets suggests a significant contract opportunity, with the potential for substantial revenue through the prescribed monthly participant fees and asset percentage remittance.