OPEB Trust--Investment Advisor RFP

The City of Scranton's Office of Business Administration is conducting a Request for Proposal (RFP) to procure investment advisory services for the City's Other Post-Employment Benefits (OPEB) Trust. The OPEB Trust, established in December 2022, currently holds approximately $2.61 million in assets and is responsible for managing advance funding of future costs for retired employee health insurance and other post-employment benefits for City employees. The selected investment adviser must be registered as an investment adviser under the Investment Advisers Act or qualify as a bank, and will be responsible for managing the OPEB Trust's assets in accordance with the Trust's adopted investment policy, providing quarterly performance reports, and delivering comprehensive advisory services. Required qualifications include a minimum of five years of experience under the current business name, compliance with the City of Scranton's local tax requirements, and professional liability insurance of $1,000,000 per occurrence and $1,000,000 aggregate, along with comprehensive general liability, workers' compensation, employer's liability, and comprehensive automobile liability coverage. Proposals must include at least two references with contact information, a detailed cost sheet showing hourly rates, labor costs, expenses, and a not-to-exceed budget for reimbursable expenses, and must be accompanied by a certificate of insurance, signed affirmative action affidavits, non-segregated facilities certifications, and non-collusion affidavits. The evaluation will be based on completeness and quality of response (11.6%), professional qualifications and experience (29.1%), proposed work plan (29.1%), and project fees (18.6%). Sealed proposals must be submitted electronically through the City of Scranton's e-Procurement Portal at https://secure.procurenow.com/portal/scrantonpa by 10:00 a.m. on Tuesday, March 24, 2026, with a deadline for questions on March 18, 2026, at 5:00 p.m., and the bid opening will occur in City Council Chambers on the 2nd Floor of City Hall with a video available for public viewing.

This RFP contains no specific set-aside designations or restrictions limiting responses to disadvantaged enterprises or other protected classifications, though all respondents must comply with the City's affirmative action and non-segregated facilities requirements as standard conditions of proposal submission. The OPEB Trust assets are currently held in custody with Fidelity Deposit & Discount Bank, and the selected investment adviser must integrate with and manage these existing holdings. The initial contract term will be three years, with the City retaining the right to extend annually by providing written notice at least 60 days before expiration, indicating a long-term engagement opportunity. While specific award values or budget ranges are not disclosed in the RFP documents, the current asset base of approximately $2.61 million and projected employer contributions of 5.39% of covered payroll (approximately $37.1 million in 2023) suggest a growing portfolio requiring professional management. Respondents should note that no benefits were paid from the Trust during fiscal years 2023 and 2024, and the Trust currently shows an unqualified audit opinion with no significant findings, indicating stable financial administration and a well-organized fiduciary entity.