REQUEST FOR PROPOSALS. 403(b) Retirement Plan Investment Analysis and Consulting. July 2012

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1 REQUEST FOR PROPOSALS 403(b) Retirement Plan Investment Analysis and Consulting July 2012 I. Investment Analysis and Consulting The Corporation for Public Broadcasting ( CPB ) is seeking proposals for a consultant to assist in the finalization and implementation of the Investment Policy Statement (Policy) related to our Deferred Annuity Plan and the CPB Defined Contribution Retirement Plan. Additional assistance is required to provide periodic analysis of investment options, and to evaluate the performance of the Fund Manager and the level of management fees charged. II. Tax Deferred Annuity and Defined Retirement Plan CPB is a District of Columbia not-for-profit corporation authorized by Congress under the Public Broadcasting Act of 1967, as amended. CPB has a defined contribution pension plan which is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended, that operates under section 403(b) of the Internal Revenue Code. The CPB Tax Deferred Annuity Plan and the CPB Defined Contribution Retirement Plan were originally established in 1974 and 1969, respectively. Effective January 1, 2009, CPB amended, restated and consolidated these plans into one plan, the CPB Tax Deferred Annuity and Defined Contribution Retirement Plan (Plan). As of December 31, 2011, the plan had approximately 525 active participants. The Plan is currently administered through TIAA-CREF (who also serves as the Fund Manager ), with plan assets at December 31, 2011, in excess of $45 million. For more information about the Plan and its investment assets, please see Appendix I for the most recent Plan audit. The Plan operates on a calendar year basis and underwent its first audit in At the conclusion of the 2009 audit, CPB s auditors included the following recommendation in their management letter: In order to ensure that plan assets are prudently and effectively managed, we recommend that the plan adopt an investment policy that outlines the roles and

2 responsibilities of those individuals and committees involved in the plan s administration and management and have periodic meetings to review the investment performance in accordance with the investment policy. Based upon this recommendation, CPB has drafted an Investment Policy Statement (Policy), attached as Appendix II, and is seeking proposals to provide recommendations on any revisions that might be needed for the policy, as well as assistance in implementing the Policy, analysis of investment options, and evaluating the performance of the Fund Manager consistent with the Policy requirements. More information about CPB may be found at III. Investment and Fund Manager Consulting Services CPB is seeking proposals to provide the services below for a period of three years, with the option of renewing annually for a period of five years. A. Investment Policy Statement Implementation By November 30, 2012, the consultant will be required to: 1) provide advice on what steps need to be taken to finalize the Policy; 2) make recommendations on any necessary revisions to the Policy; 3) make recommendations concerning the appropriate frequency of periodic investment performance reviews (whether it be quarterly, semi-annually, or annually); and 4) develop appropriate benchmarks with respect to investment fund performance. B. Investment and Fund Manager Analysis The consultant will be required to provide the following services: Periodically review the performance of the investment options being offered and provide a comparison against peer groups and benchmarks in accordance with the provisions of the Policy. This analysis will be performed for calendar year 2011 and must be reported and presented to CPB s Retirement Plan Oversight Committee no later than November 30, In addition the consultant must provide pricing for carrying out the analysis quarterly, semi-annually, and annually. For years after 2011, the consultant will perform and report their analysis on the frequency selected above. At a minimum, an annual report will be prepared and provided to the CPB s Retirement Plan Oversight Committee no later than the end of February. If appropriate, the consultant may recommend placing investment options on the performance watch list as described in the Policy. Beginning with calendar year 2012, the consultant will monitor and evaluate the Fund Manager(s) performance. No later than the end of February of the following year the consultant will report their conclusions to CPB s Retirement Plan Oversight Committee. Annually the consultant will evaluate and report on the reasonableness of the Fund Manager s fees and compliance with applicable Policy requirements.

3 C. The consultant will be required to meet with and provide expert technical advice to CPB management, the Retirement Plan Oversight committee, the Audit and Finance Committee, and the Board of Directors on a variety of issues, as requested. The issue may relate to compliance requirements, investment menu design, retention or selection of Fund Managers, or other similar matters pertaining to the Policy. For purposes of pricing these services, CPB requests the consultant establish the hourly rate for any potential staff members or a set quote for a block of hours per time period. IV. Contracting Process The basic contractual terms and conditions that will be included in the contract are detailed in Attachment A. V. Proposal Schedule Below are the key dates for the proposal submission and contract negotiations. CPB anticipates the work to being expediently after the selection and contracting process; however, the dates are subject to change at the sole discretion of CPB. In the technical proposal, respondents should provide an anticipated timeline for services to be performed. CPB may require the top applicants present their proposals to the review panel, at CPB s offices in Washington, D.C. CPB will confirm the date and times of the presentations, if required. Proposal Schedule Date Proposal Submissions Due July 27, 2012 Panel Reviews Proposals August 7, 2012 Presentations to the Review Panel August 17, 2012 Select Vendor August 24, 2012 Negotiate Contract August 30, 2012 VI. Evaluation Criteria CPB will evaluate proposals received based on the following criteria with the specified weights. Evaluation Criteria Criteria Approach and Experience: Describe the approach and process employed to ensure that a retirement plan s assets are prudently and effectively managed. Describe your firm s experience performing this type of review for nonprofit clients and for TIAA-CREF managed plans. Currently, how many of your clients use TIAA- Weight 35%

4 CREF as their fund manager? Benchmarks: Describe how you select or develop the 15% benchmarks that are used to evaluate CPB s fund selection. Fund Manager Performance: Please describe your approach to measuring and monitoring a fund manager s 20% performance. Provide a description of an instance where you identified a fund manager who was not managing the fund assets effectively. Explain how the managerial in effectiveness was recognized, what actions were taken, the final outcome, and the time required to resolve the issues raised. Fees reasonableness of the fees 30% Each respondent is encouraged to provide no more than three references and relevant contact information, including s and telephone numbers. Evaluation results will be kept confidential and not made available to any bidder. VII. Fees Applicants must provide a breakdown of costs for each Section II, Services Required category for the first three years using the attached Fee Proposal spreadsheet. Please note any advantages to quarterly, semi-annual or annual reviews and fee implications. Provide any relevant details about future extension period fee expectations, anticipated expenses, or consulting fee calculations. Clearly highlight areas where additional fees may be charged beyond the quotes provided. VIII. Proposal Submission Requirements Applicants must separate their technical and fee proposals. The technical proposal should be submitted via to Heather Hamm, Director, Budget Reporting, at hhamm@cpb.org by July 27, 2012 and the fee proposal should be submitted via to Jackie Livesay, Vice President, Compliance, at jlivesay@cpb.org by July 27, Any questions regarding this Request for Proposal must be submitted in writing to hhamm@cpb.org. All applicant questions and CPB s response will be posted to the CPB website.

5 Attachment A Terms and Conditions CPB Terms Proposals submitted in response to this RFP by an applicant ( Offeror ) shall be valid for at least 90 days following the closing date of proposals. Proposals shall be prepared simply and economically, providing a straightforward, concise description of the Offeror's proposals to meet the requirements of this RFP. Neither multiple nor alternate proposals will be accepted. An Offeror should give specific attention to the clear identification of those portions of its proposal that it considers confidential, proprietary commercial information or trade secrets. The selected Offeror shall be responsible for all products and services required by this RFP. Subcontractors must be identified and a complete description of their role relative to the proposals must be included in the Offeror s proposals. By submitting an offer in response to this RFP, an Offeror, if selected for award, shall be deemed to have accepted the terms of this RFP. Any exceptions to this RFP must be clearly identified in the proposal. A proposal that takes exception to these terms may be rejected. As part of the RFP review process, CPB may share materials, data, other information and analyses (collectively, Information ) with Offerors. As a condition of receiving such Information, Offerors responding to this RFP shall be deemed to agreed to protect, preserve and maintain all such Information on a strictly confidential basis, and to promptly return to CPB upon its request all tangible copies of such Information in your possession. CPB is not responsible for loss or damage to material submitted with or in support of this RFP. Any submission to CPB shall become the property of CPB (not including any intellectual property rights contained in such submission), and CPB is not required to return any submitted materials to any Offeror. CPB is not responsible for any violation of copyright, trademark, patent, trade secret, or other rights that may result from disclosure made by response to this RFP. Solicitation by CPB of proposals does not constitute an agreement by CPB to extend funding to any party for the project under consideration. CPB may, in its sole discretion, elect not to pursue this project in any manner. By submitting a proposal, each Offeror grants to CPB the right to duplicate, use, disclose, and distribute all of the materials submitted for purposes of evaluation, review, and research. In addition, each Offeror guarantees that the Offeror has full and complete rights to all of the information and materials included in the proposal. Each Offeror also guarantees that all such materials are not defamatory and do not infringe upon or violate the privacy rights, copyrights, or other proprietary rights of any third party.

6 Conditions of Agreement If a proposal in response to this RFP is selected for funding, Offerors will be required to sign a binding agreement. Until both parties have signed an agreement, no express or implied commitment has been made to provide financial support. Offerors are not authorized to commence work until the agreement is fully executed. If Offerors opt to commence work, they do so at their own risk. No oral or written statement other than the signed, written agreement will govern or modify the relationship. As a condition of agreement, Offerors must guarantee that, among other things, any work they undertake on behalf of CPB is not defamatory and will not violate or infringe upon the privacy rights, copyrights, or other proprietary rights of any third party. Offerors must also agree to indemnify CPB against any loss resulting from breach of any of the guarantees contained in the agreement. Those receiving funds from CPB must be able to comply with a number of requirements that will be included in the operative agreement. These requirements include but are not limited to: (1) A demonstration of adequate financial support to complete the work for which they have been contracted and to deliver reports and/or other intellectual property created pursuant to the Agreement; (2) Maintenance, for 3 years following receipt of relevant funds, of all financial records to the project, which records shall be accessible to CPB, and to the U.S. Comptroller General or other representatives for examination and audit purposes. (Offerors will additionally ensure that any subcontractors or consultants under the agreement shall also maintain such records for the period specified and under the same terms); (3) Maintenance, for 3 years after approval of a final financial report, of a complete file of all subcontracts and other agreements, licenses, clearances, and other documents related to the work undertaken, copies of which shall be made available to CPB on request; (4) Submission to CPB of a copy of any U.S. Comptroller General final audit report in connection with the project; (5) Compliance with equal employment opportunity and nondiscrimination laws and policies; (6) Offerors will be required to provide documentation as to actual costs, and provide supporting detail demonstrating that all costs are reasonable, necessary and allocable to the requirements and objectives of the work undertaken; and (7) All research and materials created, developed, compiled or produced pursuant to or as a result of this project (including but not limited to all reports) will be considered ordered and commissioned by CPB as works made for hire under the copyright laws, and made in the course of services rendered. If, for any reason, the proposed research

7 and materials to be provided are not considered works made for hire under the copyright laws, then the Offeror will be required to assign all right, title and interest in and to such research and materials to CPB. Offerors further agree that neither they, nor any of their subcontractors, will have any copyrights or other intellectual property rights whatsoever in any research and/or materials created, developed, compiled or produced by them or by any subcontractor, or by any third party participating in the preparation of research or materials for this project. (8) The agreement will be governed by construed in accordance with the laws of the District of Columbia without regard to its conflict of law provisions. Other material terms and provisions will be set forth in the documents provided to the Offeror that successfully completes the selection process. CPB will have complete rights to the reports created as deliverables for this project. CPB will not be responsible for any costs incurred by an Offeror in preparing and submitting a proposal, or in performing any other activities relative to this solicitation.