Fixed Income Investment Services

Form / Attachment / Pricing Sheet

This document, "Attachment 4 - Fixed Income Pricing Template (Final).xlsx", is a pricing template provided to assist offerors in submitting their proposed rates and asset amounts for the opportunity. It is intended to standardize pricing submissions across all bidders.

• The template is structured by contract year (Base Year through Option Year 9).
• It includes sections for different product types: Core Product, Credit Product, Global Product, and Emerging Markets Debt Product.
• For each product type and contract year, offerors must fill in undiscounted rates (in basis points) and asset amounts (in dollars) for various tiers (e.g., 'on first...', 'on next...', 'on balance.').
• Offerors are encouraged to propose discounted rates in addition to standard rates.
• Space is provided for explanations of any proposed discounts. Offerors may add additional Excel tabs if the explanation alone is insufficient.

Bidders must use this template to detail their pricing structure. It requires careful completion of rates and asset amounts across different product categories and contract years. The template also provides an opportunity to offer discounts, which should be clearly explained. Accurate and complete submission using this template is crucial for proposal evaluation.

Solicitation / RFP / RFQ

This document provides instructions to offerors for the Pension Benefit Guaranty Corporation (PBGC) Fixed Income Investment Services solicitation. It supplements FAR 52.212-1 and outlines requirements for proposal submission and evaluation.

• Offerors must comply with FAR 52.212-1 and this addendum.

• Proposals must be clear, coherent, and address all aspects described.

• Offerors must propose a minimum of two and a maximum of four financial products from Core, Credit, Global, and/or Emerging Markets Debt categories.

• Specific forms must be completed for each proposed product based on the solicitation phase.

• Offerors must submit a cover letter with each proposal volume, including specific attestations and information.

• Representations and Certifications must be submitted via www.sam.gov, and potentially FAR 52.212-3.

• An OCI Risk Mitigation Plan is required only if offerors cannot certify the absence of actual or potential OCI risks.

• PBGC anticipates making up to seven (7) contract awards.

• Offerors must agree to hold prices firm for 270 days from the proposal receipt date for Volume 3 (Price Proposal).

• Proposals are due in three volumes:

  • Volume 1 – Offeror Qualifications: Due by the solicitation closing date.
  • Volume 2 – Technical Proposal: Approximately three weeks after Phase 1 notification.
  • Volume 3 – Price Proposal: Approximately 60 days after Volume 2 due date.

• Proposals should be submitted via PBGC Secure File Exchange or email.

• Offerors must be fully registered in SAM.gov by the Volume 3 submission deadline.

• PBGC may hold discussions (negotiations) with best-qualified offerors after Phase 2.

• A facility tour may be required following in-person discussions.

• Post-selection negotiations will occur for awardees.

• No specific set-aside information is provided in this document.

• Attachment 10 (PBGC Responses to Industry Feedback) and Attachment 11 (Industry Feedback) are referenced for industry questions.

• Attachment 9 (Mercer NDA Form) is required for offerors wishing to protect proposal data.

• Offerors must use specific formatting and labeling conventions for submitted documents and supporting materials.

Form / Attachment / Pricing Sheet

This document outlines the evaluation criteria and methodology that the Pension Benefit Guaranty Corporation (PBGC) will use to evaluate proposals for Fixed Income Investment Services. It details the basis for award, the factors considered, and the two-phase evaluation process.

• Basis for Award: Contracts will be awarded to responsible offerors whose proposals are most advantageous to the Government, considering price and other factors. PBGC may award more or fewer than the anticipated seven contracts.
• Evaluation Factors & Rating Methods:
  • Factor 1: Proposal Compliance (Pass/Fail)
  • Factor 2: Offeror Qualifications (Pass/Fail)
  • Factor 3: Offeror Capability (Confidence Rating)
  • Factor 4: Strength of Product Offering (Confidence Rating)
  • Factor 5: Price (Price Analysis)
• Importance of Factors: Factor 4 (Strength of Product Offering) is the most important. Non-price factors combined are significantly more important than price. Price becomes more important as proposals become technically comparable.
• Evaluation Phases:
  • Phase I (Pass/Fail): Assesses Proposal Compliance (Factor 1) and Offeror Qualifications (Factor 2). Offerors must meet minimum criteria to proceed.
  • Phase II (Technical & Price): Assesses Offeror Capability (Factor 3), Strength of Product Offering (Factor 4), and Price (Factor 5) for offerors who passed Phase I. A competitive range will be created.
• Negotiations: PBGC may invite offerors within the competitive range to participate in discussions.
• Incorporation of Proposals: PBGC reserves the right to incorporate portions of proposals into the final contract.
• Evaluation Support: A contractor (Mercer, Inc.) will assist with proposal analysis, with provisions for non-disclosure agreements (NDAs) for proprietary information.

This document is critical for bidders as it defines how their proposals will be evaluated. Understanding these criteria will help bidders tailor their proposals to meet PBGC's requirements, focusing on technical superiority, product strength, and competitive pricing. It also clarifies the multi-phase evaluation process and the potential for negotiations.

Statement of Work (SOW) / Performance Work Statement (PWS)

To seek fixed income investments that provide a total rate of return exceeding their respective benchmarks over a full market cycle, consistent with appropriate risk levels.

• Manage fixed income assets across multiple strategies within the Trust Fund.

• Provide active investment management and related services for fixed income portfolios.

• Strategies include: Core Fixed Income, Credit Fixed Income, Global Fixed Income, and Emerging Markets Debt.

• Award allocations are expected to range from $250 million to $3.0 billion per strategy.

• Contractors must select suitable securities, comply with PBGC's Investment Policy Statement (IPS), and avoid companies with underfunded pension plans likely to be terminated by PBGC.

• Estimated award in early calendar year 2027.

• Total potential contract length, including options, is 10 years.

• Work performed off-site at contractor's offices.

• Semi-annual virtual meetings and annual in-person due diligence meetings required.

• Contract Type: Fixed-rate, variable-quantity.

• Transition-In Period: Approximately three months post-award for guideline finalization and mandate funding.

• Transition-Out Period: Coordination for liquidation of investment mandate.

• Post-Award Conference and Periodic Progress Meetings required.

• Deliverables include monthly, quarterly, and annual reports on portfolio performance, holdings, market commentary, and compliance.

• Specific insurance requirements: Fidelity bond ($10M min), Errors & Omissions ($10M min), Cyber/Technology Liability ($5M min).

• Disaster Recovery Plan required, including testing and updates.

Form / Attachment / Pricing Sheet

This document is a Non-Disclosure Agreement (NDA) required for offerors to sign as part of solicitation #16PBGCXXXXXX. It establishes terms under which Mercer, Inc., assisting the Pension Benefit Guaranty Corporation (PBGC) with proposal analysis, will handle proprietary or confidential information submitted by offerors.

• Parties: Mercer, Inc. and the Offeror.
• Purpose: To protect offeror information from unauthorized use or disclosure by Mercer employees.
• Scope: Mercer will review and analyze proposal information and data, including proprietary or confidential markings.
• Offeror Consent: By signing, the offeror consents to Mercer's review and analysis of their proposal data.
• Execution: Mercer will countersign upon receipt and provide copies. The Contracting Officer will authorize proposal release to Mercer after confirmation of proper execution.
• Submission Contact: Neeraj Baxi, CFA, Partner at Mercer.

Bidders must execute this NDA and submit it to Mercer. Failure to do so will prevent Mercer from reviewing and analyzing their proposal, which may impact the evaluation process. This agreement ensures that sensitive proposal content shared with Mercer will be safeguarded according to specific terms.

Questions & Answers / Clarifications

This document contains responses from the PBGC to industry feedback and questions regarding a draft solicitation for Fixed Income Investment Services. It clarifies requirements, benchmarks, qualifications, and submission details.

• Offeror Qualifications: A minimum of $500 billion in Assets Under Management (AUM) is strictly required; no "Specialist" classification with lower AUM will be offered. International investment management experience is acceptable.
• Product Benchmarks: While some flexibility exists for Global Fixed Income (e.g., accepting unhedged versions of the Bloomberg Global Aggregate Index with a commitment to hedge if awarded), specific benchmarks are required for other products (e.g., Credit Fixed Income must use specified Bloomberg credit indices).
• AUM Requirements: The $1 billion threshold for GIPS composites can be met by combining AUM for composites benchmarked against the same index. The requirement for tax-exempt institutional accounts over $100 million has been removed.
• Proposal Submission: Offerors must submit at least two qualifying products. Each proposal may contain only one product per type, and only a single proposal is allowed per offeror. Evaluation places more weight on non-price factors.
• Data & Reporting: Performance data is typically evaluated on a gross-of-fee basis, though net-of-fee data can be submitted for compliance. Reporting does not require specific software, but adequate resources are expected.

Several clarifications and amendments to the solicitation language are noted, particularly regarding product qualifications, benchmark acceptance, and the removal of the tax-exempt client requirement. The evaluation criteria for the "Strength of Product Offering" have been clarified as the most important factor.