Title
Record Keeper Services for Deferred Compensation, Defined Contributions and Post Employment Health Plans - RFP HR 20-101 (Ordinance S-46814)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with Nationwide Retirement Solutions, Inc. to provide plan administration and record keeper services for the City’s Deferred Compensation 457(b) Plan, Defined Contribution 401(a) Plan, and Post-Employment Health Plan (PEHP) for a five-year period. No disbursement of funds from the City Controller is necessary for this contract.
Report
Summary
This contract is to provide administration, enrollment, participant communication and education, investment management and record keeper services for Defined Contributions and Post Employment Health Plans. There are approximately 18,134 participant accounts and this contract ensures accurate accounting of the assets in each participant account and provides efficient and prudent management of the Plans.
Procurement Information
RFP HR 20-101 was conducted in accordance with Administrative Regulation 3.10. The Human Resources Department received four proposals. The Notice of Solicitation was emailed to 908 vendors registered in ProcurePHX and 41 firms provided by the City's investment consultant, Hyas Group LLC.
The offers were scored on the following criteria (1,000 total points): Qualifications and Experience (250 points), Method of Approach (450 points) and Price (300 points). Initial evaluations of all proposals were conducted by the City’s contracted investment consulting firm, Hyas Group LLC. Evaluations of the proposals were conducted by a committee comprised of members of the City’s Deferred Compensation Plan (DCP) Board and Post Employment Health Plan (PEHP) Board and City staff. The evaluation committee determined that two proposals were within the competitive range, and those proposers were invited to participate in interviews. At the completion of the interviews, all proposals within the competitive range moved forward to the Best and Final Offer (BAFO) process. After reviewing the BAFO responses, it was the consensus of the evaluation committee to recommend awarding the contract to Nationwide Retirement Solutions, Inc. The DCP and PEHP boards unanimously approved the committee’s recommendation at their June 11, 2020 meeting.
The scores were as follows:
Nationwide Retirement Solutions, Inc.: 1,000 points
Empower Retirement: 702 points
Voya: 633 points
T. Rowe Price: 348 points
The Human Resources Director recommends the offer from Nationwide Retirement Solutions, Inc. be accepted as the highest scored, responsive, and responsible offeror.
Contract Term
The five-year contract shall begin on or about Nov. 20, 2020.
Financial Impact
No disbursement of funds from the City Controller is necessary for this contract. The administrative costs for the City's Deferred Compensation Plans and PEHP are paid through plan asset fees by plan participants.
Department
Responsible Department
This item is submitted by Deputy City Manager Toni Maccarone and the Human Resources Department.