Texas Local Government Investment Pool Investment Management and Related Services

The Texas Comptroller of Public Accounts is requesting proposals for investment management and related services for TexPool and TexPool Prime, two local government investment pools, with proposals due September 2, 2026, and a question deadline of July 29, 2026. A VetHUB Subcontracting Plan is mandatory for this solicitation; all respondents must submit a completed plan as part of their proposal, and vendors intending to use subcontractors must demonstrate good faith efforts to recruit certified VetHUB vendors with a minimum seven-business-day response period, even if ultimately no VetHUB awards result.

The scope encompasses portfolio management, cash management, custody services, fund accounting, financial reporting, participant services, information technology services, education and training programs, and transition services for approximately 2,990 TexPool participants and 738 TexPool Prime participants, with combined assets under management of approximately $58.4 billion as of March 31, 2026. The successful respondent must maintain a physical office in Texas, comply with the Public Funds Investment Act and accessibility standards, and meet specified customer-service performance standards.

The contract runs from January 1, 2027, through December 31, 2032, with an optional extension for one additional two-year period through December 31, 2034. The incumbent, Federated Hermes, Inc., currently charges 4.5 basis points for TexPool and 5.5 basis points for TexPool Prime, with all operational expenses covered by fees netted from participant accounts and no sales loads or deferred sales loads imposed. Respondents must submit audited financial statements for the previous three fiscal years, professional liability and other required insurance evidence, references from five public funds clients, detailed personnel resumes, and comprehensive transition-in and transition-out plans. Proposals must be submitted electronically in searchable PDF format and remain valid for 180 days from the submission deadline. Official responses to written questions will be released by August 5, 2026.