Kentucky Retirement Systems Investment Fee for Service

The Kentucky Retirement Systems (KRS) has issued a Request for Proposal (RFP) for investment fee verification services focusing on their Private Equity Portfolio. The procurement seeks a qualified firm to recalculate and verify fees and expenses for investment managers, with a specific emphasis on 43 partnerships committed prior to 2011 and potentially covering up to 75 partnerships overall. Deliverables must be presented in a user-friendly format to KRS's Investment Staff, with initial findings expected before June 30, 2019. The technical proposal will be evaluated across multiple criteria, including firm history (50 points), technical knowledge and expertise (250 points), experience with private equity fee verification services (200 points), professional references (50 points), location (50 points), and potential oral presentations (25 points). The RFP was originally released on August 31, 2018, with written questions due by September 15, 2018, and proposals due by 4:00 PM Eastern Time on October 19, 2018 (extended from the original October 4, 2018 date via Addendum 1). The initial contract term is set from October 25, 2018, through June 30, 2020, with potential renewal options for up to two additional two-year periods.

The RFP allows for multiple personal service contracts and provides preferences for Kentucky resident and qualified bidders as defined under state law. No minimum work volume is guaranteed, and KRS reserves the right to negotiate fair and reasonable compensation and to reject any or all proposals. The procurement does not specify explicit set-aside designations for disadvantaged enterprises. Proposals must be submitted in three separate sealed parts: technical proposal (original and three copies plus electronic format), cost proposal (original and three copies plus electronic format), and any proprietary information. The cost proposal component allows for up to 400 points, with the lowest-priced proposal receiving maximum points and remaining proposals scored proportionally. KRS currently does not have an existing provider for these services and cannot provide specific budget information, though the services are primarily intended as a one-time verification of fees since fund inception. The agency maintains data in Burgiss but acknowledges that existing information may be insufficient for comprehensive fee verification. The final contract will require approval from the Secretary of the Finance and Administration Cabinet and must be filed with the Legislative Research Commission's Government Contract Review Committee.