Title
Stable Value Fund Manager Services (Ordinance S-47505)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with Principal Global Investors, LLC to provide Stable Value Fund Manager services in an amount not to exceed $5.3 million over a five-year period. No disbursement of funds from the City Controller is required for this contract. The administrative costs are paid by plan participants.
Report
Summary
This contract is needed to provide professional management of the Phoenix Stable Income Fund including discretionary investment management of the underlying securities as well as the wrap providers for a stable value portfolio totaling approximately $445 million in assets. The Contractor will maintain knowledge of the federal laws and regulations applicable to such funds and will manage the assets in the Fund in a manner consistent with the requirements of such laws and regulations.
Procurement Information
RFP HR 20-123 was conducted in accordance with Administrative Regulation 3.10. The Human Resources Department received eight offers and one offer was deemed non-response. The Notice of Solicitation was emailed to 48 vendors registered in ProcurePHX and 18 firms provided by the Consultant, Hyas Group. The offers were scored on the following criteria: Qualifications and Experience (250 points), Method of Approach (500 points) and Price (250 points).
The City’s Financial Investment Consultant, Hyas Group, conducted an analysis of the offers and provided a report to the evaluation committee. Evaluation occurred by a four-person panel. The evaluation committee determined that two offers were within the competitive range, and those offerors participated in Finalists Interviews and Best and Final Offers (BAFO) process. It was the consensus of the evaluation committee to recommend awarding the contract to Principal Global Investors, LLC.
The City of Phoenix Employees’ Deferred Compensation Board approved the award recommendation at the March 18, 2021 Special Session Board meeting.
The following are the scores of all responsive Offerors:
Principal Global Investors, LLC 838.00
T. Rowe Price Associates, Inc. 800.00
Voya Financial 639.50
The Vanguard Group, Inc. 627.00
Galliard Capital Management, Inc. 609.50
Invesco Advisers, Inc 584.50
J.P. Morgan Investment Management, Inc. 508.50
The Human Resources Director recommends the offer from Principal Global Investors, LLC be accepted as the highest-scored, responsive, and responsible offeror.
Contract Term
The five-year contract shall begin on or about May 21, 2021.
Financial Impact
The aggregate five-year contract value for these services shall not exceed $5.3 million. No disbursement of funds from the City Controller is required for this contract. The administrative costs are paid by plan participants.
Department
Responsible Department
This item is submitted by Deputy City Manager Toni Maccarone and the Human Resources Department.