RFP Template€¦ · Web viewPURPOSE OF REQUEST FOR PROPOSAL. The purpose of this Request for...

Request for Proposal

Investment and Management of Funds

RFP # Q0010113

Issued:June 13, 2014

Due Date:July 31, 2014

Utah Valley UniversityProcurement Services

800 W University PkwyOrem, UT 84058

Q0010113 Investment and Management of FundsTABLE OF CONTENTS

SECTION 1 – PURPOSE OF RFP..............................................................................................................61.01. PURPOSE OF REQUEST FOR PROPOSAL..........................................................................61.02. ABOUT UTAH VALLEY UNIVERSITY...............................................................................6

SECTION 2 – DEFINITIONS.....................................................................................................................7SECTION 3 – INFORMATION SPECIFIC TO THIS RFP.......................................................................9

3.01. ADMINISTRATIVE GUIDANCE...........................................................................................93.02. ISSUING OFFICE AND RFP REFERENCE NUMBER.........................................................93.03. DUE DATE...............................................................................................................................93.04. PRE-PROPOSAL CONFERENCE...........................................................................................93.05. QUESTIONS AND ANSWERS...............................................................................................93.06. PROPOSAL SUBMISSION.....................................................................................................93.07. IMPORTANT DATES............................................................................................................103.08. TIME FOR EVALUATION...................................................................................................103.09. GOVERNING LAWS AND REGULATIONS......................................................................103.10. CONTRACT PERIOD............................................................................................................10

SECTION 4 – STATEMENT OF NEEDS................................................................................................114.01. OBJECTIVE............................................................................................................................114.02. MINIMUM OFFEROR QUALIFICATIONS.........................................................................114.03. SCOPE OF WORK AND SPECIFICATIONS.......................................................................12

SECTION 5 – RFP PROVISIONS............................................................................................................165.01. GENERAL BID PROVISIONS..............................................................................................165.02. CONSIDERATION OF PROPOSALS...................................................................................165.03. ORAL PRESENTATION.......................................................................................................165.04. GRATUITIES.........................................................................................................................165.05. AWARD OF CONTRACT.....................................................................................................165.06. FURTHER AGREEMENTS...................................................................................................165.07. NEWS RELEASES.................................................................................................................165.08. PROTECTED INFORMATION.............................................................................................165.09. COST OF PREPARING PROPOSAL....................................................................................175.10. DISPOSITION OF PROPOSALS...........................................................................................175.11. ADDENDUM TO RFP...........................................................................................................175.12. RESTRICTIONS ON COMMUNICATIONS WITH UNIVERSITY STAFF......................175.13. OFFICIAL COMMUNICATION...........................................................................................17

Page 3 of 37

Q0010113 Investment and Management of Funds

5.14. ALTERNATIVE PROPOSALS..............................................................................................185.15. AUTHORIZED OFFEROR REPRESENTATIVES...............................................................185.16. AWARD OF SUBCONTRACTS...........................................................................................185.17. REMEDIES.............................................................................................................................185.18. ANTI-COLLUSION...............................................................................................................185.19. RESTRICTIONS.....................................................................................................................185.20. OUTSTANDING TAX LIEN.................................................................................................185.21. RIGHT TO REJECT...............................................................................................................195.22. STATUS VERIFICATION SYSTEM....................................................................................195.23. DEBARMENT........................................................................................................................19

SECTION 6 – PROPOSAL RESPONSE OUTLINE................................................................................206.01. PROPOSAL RESPONSE OUTLINE.....................................................................................20

A. FILE ONE – LETTER OF TRANSMITTAL.........................................................................20B. FILE TWO – TECHNICAL PROPOSAL..............................................................................20C. ADDITIONAL FILES............................................................................................................22D. ELECTRONIC FORMS..........................................................................................................22

6.02. OFFEROR’S CHECKLIST....................................................................................................22SECTION 7 – PROPOSAL EVALUATION............................................................................................23

7.01. OPENING OF PROPOSALS..................................................................................................237.02. EVALUATION PROCESS OVERVIEW..............................................................................237.03. RESPONSIVE DETERMINATION.......................................................................................237.04. RESPONSIBLE DETERMINATION....................................................................................237.05. TECHNICAL EVALUATION...............................................................................................237.06. TECHNICAL EVALUATION CRITERIA............................................................................247.07. SELECTED OFFEROR..........................................................................................................247.08. NEGOTIATIONS AND BEST AND FINAL OFFERS.........................................................24

SECTION 8 – CONTRACT TERMS AND CONDITIONS....................................................................258.01. CONTRACT TERMS AND CONDITIONS..........................................................................258.02. EXCUSED PERFORMANCE................................................................................................258.03. ENDORSEMENT...................................................................................................................258.04. DATA SECURITY.................................................................................................................258.05. OTHER AGREEMENTS........................................................................................................258.06. ASSIGNMENT.......................................................................................................................26

Page 4 of 37


8.07. COMPLIANCE.......................................................................................................................268.08. TERMINATION OF CONTRACT.........................................................................................268.09. ACCEPTANCE OF SERVICES RENDERED......................................................................268.10. INDEMNIFICATION.............................................................................................................268.11. INSURANCE..........................................................................................................................268.12. ACCOUNTING.......................................................................................................................278.13. RELATIONSHIP OF THE PARTIES....................................................................................278.14. EQUAL OPPORTUNITY.......................................................................................................278.15. STATE AND LOCAL TAXES...............................................................................................278.16. PRICE REDUCTION..............................................................................................................278.17. NON-APPROPRIATION OF FUNDS...................................................................................27

APPENDIX A – ABOUT UVU FOUNDATION.....................................................................................28RFP EVALUATION SCORE SHEET......................................................................................................37

Page 5 of 37


SECTION 1 – PURPOSE OF RFP

1.01. PURPOSE OF REQUEST FOR PROPOSALThe purpose of this Request for Proposal (RFP) is to solicit proposals to enter into a contract with a qualified offeror to obtain the investment and management of approximately $22,000,000 for the Utah Valley University Foundation. The University and Foundationare examining several alternatives of providing this product and/or construction and may decide, after reviewing proposals submitted, not to enter into any agreement.

This document solicits competitive sealed proposals, from qualified businesses to perform the scope of work set forth herein. This RFP is an offer by the University and Foundation to purchase, in accordance with the terms and conditions of this RFP, the products and/or services proposed by the successful offeror. Offerors are strongly encouraged to carefully read the entire RFP.

1.02. ABOUT UTAH VALLEY UNIVERSITYUtah Valley University is a teaching institution which provides opportunity, promotes student success, and meets regional educational needs. UVU builds on a foundation of substantive scholarly and creative work to foster engaged learning. The University prepares professionally competent people of integrity who, as life-long learners and leaders, serve as stewards of a globally interdependent community.

Utah Valley University is located in Orem, Utah. UVU began as a vocational school during World War II, and, in the seven decades since, has evolved into a technical school, a community school, a state college, and, finally, a comprehensive regional teaching university. UVU is one of Utah’s largest institutions of higher learning and offers programs ranging from career training to high-demand master degrees, with emphasis on undergraduate education.

For additional general information about Utah Valley University, please visit the University’s home page at http://www.uvu.edu/ , and our fact book at http://www.uvu.edu/iri/.

Page 6 of 37

http://www.uvu.edu/iri/

http://www.uvu.edu/


SECTION 2 – DEFINITIONS

2.01. Addenda: Written or graphic instructions issued by the University prior to the receipt of Proposals that modify or interpret the Request for Proposal documents by addition, deletions, clarification, or corrections.

2.02. Business: Any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or any other private legal entity.

2.03. Contract: The agreement resulting from this RFP, executed between the University and an offeror. The contract shall include the terms and conditions contained herein and any other negotiated terms and conditions.

2.04. Contractor: Any person having a contract with the University.

2.05. Construction:The process of building, renovating, or demolishing any University structure or building, major developmental work, or landscaping of University real property. It does not include the routine operation, routine repair, or routine maintenance of existing structures, buildings, or real property.

2.06. Data: Recorded information, regardless of form or characteristic.

2.07. Employee: An individual drawing a salary from the University and any non-compensated individual performing personal services for the University.

2.08. Foundation: Utah Valley University Foundation, Inc.

2.09. Goods: Anything purchased other than construction, services, or real property.

2.10. May: Denotes the permissive.

2.11. Offer or Proposal:Anofferor’s response to this Request for Proposal.

2.12. Offeror:Any business, entity, or contractor group submitting a proposal.

2.13. Person: Any business, individual, union, committee, club, other organization, or group of individuals.

2.14. Procurement: Buying, purchasing, renting, leasing, or otherwise acquiring any goods, services, or construction. It also includes all functions that pertain to the obtaining of any supply, service, or construction, including description of requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration.

2.15. Product:Thegoods or services that a company makes available.

2.16. Public Notice: The distribution or dissemination of information to interested parties using methods that are reasonably available. Such methods include publication in newspapers of general circulation, electronic or paper mailing lists, and web site(s) designated by the University and maintained for that purpose.

2.17. Procurement Services: Utah Valley University, Procurement Services, 936 South 800 West, Room 215,

Page 7 of 37


Orem, Utah 84058.

2.18. Purchasing Official:The individual appointed by the Director of Procurement Services to manage this RFP process.

2.19. Real Property:Land and its permanently affixed buildings or structures.

2.20. Responsible Offeror: A person or business who has the capability, in all respects, to perform fully the contract requirements and the integrity and reliability that will assure good faith performance.

2.21. Request for Proposal (RFP): All documents, whether attached or incorporated by reference, utilized for soliciting proposals.

2.22. RFP Committee:A committee of individuals appointed by the Purchasing Official to perform a technical evaluationof submitted proposals.

2.23. Services: Furnish of labor, time, or effort by a contractor. Does not include the delivery of a specific end product, other than reports which are merely incidental to the required performance. This term shall not include employment agreements or collective bargaining agreements.

2.24. Shall: Denotes the imperative.

2.25. Signature: A manual or electronic identifier, or the electronic result of an authentication technique attached to or logically associated with a record that is intended by the person using it to have the same force and effect as a manual signature.

2.26. Solicitation:ARequest for Proposal (RFP) or Invitation for Bid (IFB).

2.27. Specifications: Any description of the physical or functional characteristics, or of the nature of a supply, service, or construction item. It may include a description of any requirement for inspecting, testing, or preparing a supply, service, or construction item for delivery.

2.28. University: Utah Valley University.

2.29. Using Department: Any unit of the University which utilizes any goods, services, or construction procured under this RFP.

2.30. Utah Procurement Code:Utah State Code § 63G-6a-101 et. seq. as amended

2.31. Will: Denotes the imperative.

2.32. Written or In Writing: The product of any method of forming characters on paper, other materials, or viewable screens, which can be read, retrieved, and reproduced, including information that is electronically transmitted and stored.

Page 8 of 37


SECTION 3 – INFORMATION SPECIFIC TO THIS RFP

3.01. ADMINISTRATIVE GUIDANCEThis RFP is designed to provide interested businesses with basic information sufficient to submit proposals meeting minimum requirements. It is not intended to limit a proposal's content or to exclude any relevant or essential data therefrom. Offerors are at liberty, and are encouraged, to expand upon the specifications to give additional evidence of their ability to provide the products and/or construction requested in this RFP.

3.02. ISSUING OFFICE AND RFP REFERENCE NUMBERProcurement Services is the issuing office for this RFP and all addenda relating to it. The reference number for this RFP is Q0010113. This number must be referenced on all proposals, correspondence, and documentation relating to this RFP.

3.03. DUE DATEIn order for a proposal to be considered, it must be received by Procurement Services no later than 2:00 PM MDT on July 31, 2014. Proposals submitted through BidSync will be considered received by Procurement Services. Proposals received after this deadline will be late and ineligible for consideration.

3.04. PRE-PROPOSAL CONFERENCENo pre-proposal conference will be held.

3.05. QUESTIONS AND ANSWERSAll questions, inquiries, or requests for information, clarification, or interpretation arising subsequent to the issuance of this RFP shall be submitted in writing through BidSync.com. Answers will be given via the BidSync site. Questions submitted by e-mail, phone, or other method will not be considered.

All questions must be received by 2:00 PM MDT on July 1, 2014. Questions asked after this deadline will not be answered. Procurement Services will extend the due date if such information significantly amends this solicitation or makes compliance with the original due date impractical.

3.06. PROPOSAL SUBMISSIONProposals must be submitted electronically through BidSync.com. Proposals submitted in any other way will be considered not responsive and will not be accepted. Submitting a response to the University via BidSync.com is free of charge. Please register at www.bidsync.com, or contact BidSync Customer Service at 800-990-9339. When submitting a bid electronically through BidSync, please allow sufficient time to complete the online forms and upload documents. The solicitation will end at the closing time listed on the posting. If the system is in the middle of uploading a file at the closing time, the system will stop the process and the bid will not be received by the system.

BidSync’s site will accept a wide variety of document types as attachments. However, the submission of files containing embedded documents (zip files), mov, wmp, and mp3 files are prohibited. Do not upload PDF documents which contain attached or embedded documents. All documents should be attached as separate files.

Proposals will not be accepted via fax or e-mail.

Page 9 of 37

http://www.bidsync.com/


3.07. IMPORTANT DATESThe following dates are significant for this RFP:

RFP Issued June 13, 2014RFP Questions July 1, 2014 at 2:00 PM MDTProposal Due Date July 31, 2014 at 2:00 PM MDT

3.08. TIME FOR EVALUATIONAll proposals shall remain valid for a minimum of 120 calendar days after the Proposal Due Date to allow adequate time for evaluation.

3.09. GOVERNING LAWS AND REGULATIONSThis procurement is conducted by Utah Valley University, in accordance with the Utah Procurement Code, Title 63g, Chapter 6a Utah Code Annotated, as amended, and Procurement Policies adopted by the University.

3.10. CONTRACT PERIODAny contract awarded as a result of this solicitation will have an initial term beginning the date the final contract is signed and continuing for three (3) year. The contract may be terminated at any time with 90 days written notice. The contract shall be renewable for up to two (2) additional one-year renewal periods. The total contract period will not exceed five (5) years. Annual renewal shall be contingent upon the University’s and Foundation’s satisfaction with the services performed and the overall performance of the contractor.

Page 10 of 37


SECTION 4–STATEMENT OF NEEDS

4.01. OBJECTIVEThe University and Foundation is requesting proposals from financial institutions that will invest and manage approximately $22,000,000 of UVU Foundation’s investment funds in addition to future funds as accrued by the Foundation during the tenure of the contract. Management will include giving advice to the UVU Foundation Board on investment strategy and providing regular reports on the performance of the invested funds with recommendations for adjustments as necessary. The primary focus is for a firm to manage these funds in both equities and in alternative investment vehicles as described in Appendix A, Section H and I.

4.02. MINIMUM OFFEROR QUALIFICATIONS

A. Overview and Organizationi. Provide the legal name and address of your firm.

ii. Provide the name, title, address, telephone number, and e-mail address of the person in your organization who will be the contact person for this proposal.

iii. Describe your firm's history and ownership structure. Describe any significant organizational changes which have occurred in the past 3 years? Describe any significant organizational changes you anticipate will occur during the next twelve months?

iv. How long have you been providing Fiduciary Management services?

v. What is the current scope of the firm – services provided, assets under management, number of investment professionals, organizational structure of the firm?

vi. Provide an organizational chart for your company. Indicate overall staff size and experience. Describe the financial professionals employed by your firm, including the average tenure and years of industry experience.

vii. Provide a list of names and qualifications of personnel assigned to this project.

viii. State whether your firm, its parent or affiliate, is a registered investment advisor with the SEC under the Investment Advisors Act of 1940.

ix. Describe the culture of your firm and what you consider the advantages of this culture are.

B. Clientele and Experiencei. List the number of institutional clients for whom you provide investment services,

including assets under management.

ii. List the number of institutional clients for whom you provide partial and full discretionary services, including assets under management.

iii. Provide a representative client list.

iv. Provide at least three references from your current client list for which you act as Page 11 of 37


a Fiduciary Management provider that we may contact. Include contact information and a brief description of the services being provided. One reference should be from a recent transition (i.e. a transition in the last 12 months).

v. Describe relevant experience with foundations having between $50M and $70M in assets.

vi. What is the number of clients by type of organization and by type of services provided?

vii. Concerning assets managed among your client relationships, what are the largest, the smallest, and the “typical” portfolio sizes?

4.03. SCOPE OF WORK AND SPECIFICATIONS

A. Servicesi. Describe the scope of your services.

ii. Indicate your organization's role with respect to fiduciary status. Be clear as to your firm's fiduciary status with respect to each primary function (i.e., asset allocation, investment manager selection, oversight and replacement, trustee services, etc.)

iii. Outline the full extent of your firm's custodial and trustee services.

iv. What sets you apart from your competitors?

v. Why would your firm be a good fit?

vi. What is the future business model of the firm with respect to private equity advisory services? Is there an anticipated limit to the firm’s capacity for these relationships? How close is the firm to being closed to new relationships?

B. Investment Process and Performancei. Please describe the firm’s investment philosophy. How has it evolved during the

last five years?ii. How does your firm measure success? How would you anticipate measuring

success for our account? iii. Describe the process by which portfolios are designed and constructed. How is

the client’s investment objective and preferences incorporated into this process?iv. Do you have a typical or “model” asset allocation? If so, what is it currently?

Provide a history of this model allocation for the past 7 years, or however long you have such information (maximum of 7 years).

v. Referencing the credit crisis of 2007-2010, how are portfolios managed during volatile markets and how are they managed in anticipation of future volatile markets?

vi. What is the firm’s current outlook, and how is that outlook reflected in the construction of portfolios? How often are the firm’s views incorporated into

Page 12 of 37


portfolios? What are the criteria used for implementing these views into portfolios?

vii. Do you utilize internally-managed open or closed-end funds for some or all asset classes in constructing portfolios, or do you function more as a manager-of-managers?

viii. Provide 5 years of history (where available) for how clients have ranked in the NACUBO/Commonfund Study of Endowments or in other universities, beginning with the most recent calendar year.

ix. What are your performance benchmarks? Provide a five-year history of how you have performed against those benchmarks?

x. Provide performance data including a summary of the team’s previous record, include benchmarks and explanations, if you deem appropriate.

xi. How often do you recommend the same manager to multiple clients? What is the process and what benefits does this provide to the clients?

xii. How many hours do you typically spend on reviewing and preparing recommendation materials on managers you recommend to your clients?

xiii. How do you evaluate managers and how is your level of satisfaction with managers communicated to clients?

xiv. How do you typically source managers that ultimately are approved for investment?

C. Governance and Processi. What different types of relationships does your firm have with clients? Among

existing clients, what are the variations in roles of Investment Committees? Of clients’ staff?

ii. Provide some samples of performance and risk reporting. How are reports and information provided (email, on-line) and with what frequency?

iii. In what ways does your firm interact with client Investment Committees? How would you describe the most effective investment committees with similar sized portfolios and similar missions as ours? What roles and responsibilities do they have relative to outside advisors, internal staff, and any other advisors?

iv. Would the Foundation own units in a common investment pool or would it have title to underlying investments? Who would negotiate and sign contracts with investment managers? Who would be the custodian of the investment assets?

D. Alternative Investment Specific Questionsi. Define Alternative Investments? How do you segment it?ii. What are the names of Alternative managers used by your firm?iii. List your 5 favorite managers for each:

1. Small cap buy out

Page 13 of 37


2. Mid market buy out3. Credit or debt funds4. Venture capital funds5. Fund to funds

iv. Of the managers listed above, which ones do you not have access? v. What is the structure you use to give your clients access to these funds?vi. How does a small client access these funds?vii. Give 3 examples of how you might strategically invest a $10M allocation to

Alternative Investments?1. A detailed tactical description for each is not necessary.2. Note that we are less interested in Hedge, Commodities, and Real Estate

viii. Will you evaluate firms that were brought to you by a client?1. What is your firm’s position on evaluating and recommending managers

introduced by your clients? In the past 5 years how many private equity managers were introduced to your firm by a client have you approved for investment?

ix. How frequently do you meet with your managers that ultimately invest the capital?

x. How do you evaluate the performance of your managers?xi. What benchmarks do you use for Alternative Investments and how did you

perform against those benchmarks?xii. How many of your clients make final approval on Alternative Investments?xiii. How do you measure success for your Alternative portfolios?xiv. List your team and include the bios of the members that would work on our

Alternative Investments.

E. Risk Managementi. What risks are managed, how are they monitored, and how are new risks

identified and managed?ii. Do you have a separate dedicated department for risk management? Please

describe.iii. Describe your approach to managing risk in the asset allocation and portfolio

selection process.1. What systems are utilized?2. What risk metrics are monitored in the risk management process?

iv. Describe a situation where the risk management process overruled a decision within your investment team.

F. Compliance and Conducti. Does your firm have a written Code of Conduct, Ethics Policy or Conflict of

Interest Policy? Describe each applicable policy.

Page 14 of 37


ii. Describe the level of coverage for SEC-required (17g-1) fidelity bonds, errors and omissions insurance, and any fiduciary or professional liability insurance your firm carries.

G. Feesi. Please provide a breakdown of the fee structure that you would propose for this

relationship.ii. Please provide a 7-year history of your fee structure, if available. iii. If we were to hire you for Alternative services, would your fees be higher and

what would they be?

Page 15 of 37


SECTION 5 –RFP PROVISIONS

5.01. GENERAL BID PROVISIONSThe University’s General Bid Provisions are viewable at http://www.uvu.edu/procurement/ terms and apply to this Request for Proposals. In the event of a conflict, the terms contained in this RFP document or subsequent addenda govern.

5.02. CONSIDERATION OF PROPOSALSThe University may award a contract based on initial proposals received without discussion of such proposals with offerors. Accordingly, each initial proposal should be submitted with the most favorable price and service available. The University reserves the right to negotiate with any or all offering proposals, to reject any or all proposals, and to call for best and final offers. Offerors shall be prepared to send qualified personnel to discuss technical and contractual aspects of their proposal at no cost to the University.

5.03. ORAL PRESENTATIONThe University may require an oral presentation by an offeror to supplement their written proposal. These presentations will be scheduled, if required, by the Purchasing Official after proposals are received and prior to the award of acontract.

5.04. GRATUITIESThe University may disqualify from consideration or terminate any subsequent contract, if it is found that gratuities, in the form of entertainment, gifts, or otherwise, were offered or given by the offeror, or any agent or representative of the offeror, to any officer or employee of the University with the intent to secure a contract or secure favorable treatment with respect to the awarding or amending of a contract.Offerors must comply with the provisions of the Utah Procurement Code, U.C.A. § 63G-6a Part 24.

5.05. AWARD OF CONTRACTUpon completion of the evaluation process, the University may award a contract to the offerorwhose proposal is determined to be the most advantageous to the University. The University may choose to award contracts to multiple offerors if it would be in the best interest of the University. Procurement Services is the only agency authorized to award a contract. All pertinent University policies and State of Utah statutes, codes, and regulations apply. Any contract resulting from this RFP will include, but not be limited to, the University’sPurchase Order Contract Terms and Conditions and the applicable conditions outlined in this RFP.

5.06. FURTHER AGREEMENTSIn addition to a proposal, the University may require an offeror to execute certain additional documents or agreements for the purpose of clarifying the intention of the parties with respect to providing the goods or services hereunder.

5.07. NEWS RELEASESNews releases pertaining to this RFP, any proposal, or the contract will be made only by the University.

5.08. PROTECTED INFORMATIONThe Utah Procurement Code, U.C.A. § 63G-6a-101 et seq.,the Government Records Access and Management Act, U.C.A. § 63G-2-101 et seq. ("GRAMA"), and Utah State procurement rules provide that trade secrets, commercial information or non-individual financial information may be protected by submitting a Claim of Business Confidentiality.

Page 16 of 37

http://www.uvu.edu/procurement/documents/UVUGBP.pdf


To protect information under a Claim of Business Confidentiality, the bidder must:A. Provide a completed Claim of Business Confidentiality form at the time the bid is submitted to the

University, B. Include a concise statement of reasons supporting the claim of business confidentiality (Subsection

63G-2-309), andC. Submit an electronic “redacted” (excluding protected information) copy of the bid response. Copy

must clearly be marked “Redacted Version.”

A Claim of Business Confidentiality may be appropriate for information such as client lists and non-public financial statements. Pricing and service elements may not be protected. An entire bid cannot be protected under a Claim of Business Confidentiality. The claim of business confidentiality must be submitted with the bid on the form provided. Failure to complete this form may result in the disclosure of information contained in a bid if a GRAMA request is received.

To ensure the information is protected, Procurement Services asks the bidder to clearly identify in the Executive Summary and in the body of the bid any specific information for which a bidder claims business confidentiality protection as "PROTECTED".

All materials submitted become the property of the University. Materials may be evaluated by anyone designated by the University as part of the bid evaluation committee. Materials submitted may be returned only at the University’s option.

5.09. COST OF PREPARING PROPOSALThe University will not be liable for any cost which offerors may incur in connection with the preparation or presentation of their proposal(s). Proposals should be concise, straightforward and prepared simply and economically. Expensive displays, bindings or promotional materials are neither desired nor required. However, these instructions are not intended to limit a proposal's content or exclude any relevant or essential data therefrom.

5.10. DISPOSITION OF PROPOSALSAll proposals become the property of the University. The successful proposal will be incorporated into the resulting contract by reference.

5.11. ADDENDUM TO RFPIn the event that it becomes necessary to revise this RFP in whole or in part, an addendum will be released by Procurement Services. All addenda become part of the RFP and the information contained therein will take precedence over the information contained in this document.

5.12. RESTRICTIONS ON COMMUNICATIONS WITH UNIVERSITY STAFFFrom the issue date of this RFP until a contractor is selected and a contract award is made, offerors are not allowed to communicate about the subject of this RFP with any University administrator, faculty, staff, or members of the Board of Trustees except the Purchasing Official assigned to this RFP, other Procurement Services staff members, individuals authorized in writing by the Purchasing Official, and University representatives during offeror presentations. If violation of this provision occurs, the University reserves the right to reject the offeror’s proposal.

5.13. OFFICIAL COMMUNICATIONDuring this RFP process (from the date of issue through the date of contract award or other final decision), the Purchasing Official is the sole source of official information regarding this RFP. All other

Page 17 of 37


communications, both oral and written, which are received by any representative of the business from other sources should be confirmed by the business with the Purchasing Official as being true and accurate prior to incorporating such information into its response. This refers to both formal and informal conversations and communications. Significant changes to this RFP will always be issued as a formal, written addendum.

5.14. ALTERNATIVE PROPOSALSAn offeror may submit more than one proposal, each of which must follow the Proposal Response Outline (section 6.01 herein) and satisfy the requirements of this RFP. The offeror’s primary proposal must be complete and comply with all instructions. Alternative proposals may be in abbreviated form following the Proposal Response Outline and providing complete information only for sections which differ in any way from those contained in the primary proposal. If alternative proposals are submitted, the offeror must explain the reasons for the alternative(s) and the comparative benefits. Each proposal submitted will be evaluated on its own merits.

5.15. AUTHORIZED OFFEROR REPRESENTATIVESEach proposal will list the name, title, office address, telephone number, fax number and e-mail address (if available) of the person(s) authorized to represent the offeror regarding the offeror’s proposal. The University reserves the right to negotiate a change in the individual assigned to represent the offeror awarded a contact if the assigned representative does not supply the needs of the University appropriately. This right shall continue through the response period and during the term of the contract.

5.16. AWARD OF SUBCONTRACTSFor each subcontract, if any, which the offeror proposes to award, the offeror shall specify in writing the proposed subcontractor's name and address, and the purpose of each subcontract. Any offeror proposing subcontracts as a part of a proposal must explicitly state so in the proposal. Written approval by Procurement Services is required prior to the awarding of any subcontracts. Any subcontractor shall be required to provide evidence to the University of the same insurance provisions and coverage as described herein.

5.17. REMEDIESThe laws of the State of Utah shall apply in all disputes arising out of this RFP, without regard to Utah choice of law rules. The Utah Procurement Code, U.C.A. § 63G-6a-1601, addresses the procedure for filing a protest regarding the award of bids. It states that a protest must be submitted in writing prior to the opening of bids, unless the aggrieved person did not know the facts giving rise to the protest, in which case the protest must be submitted in writing within seven days after the aggrieved person knows or should have known the facts giving rise to the protest. Protest may be appealed in accordance with the Utah Procurement Code, U.C.A. § 63G-6a part 17.

5.18. ANTI-COLLUSIONAny agreement or collusion among offerors or prospective offerors, which restrains, tends to restrain, or is reasonably calculated to restrain competition by agreement to bid at a fixed price or to refrain from offering, or otherwise, is prohibited. The submission of a proposal constitutes agreement that the offeror has not divulged its proposal to, or colluded with, any other offeror or party to a proposal.

5.19. RESTRICTIONSAll proposals must clearly set forth any restrictions or provisions deemed necessary by the offeror to effectively perform the contract.

5.20. OUTSTANDING TAX LIENBy responding to this solicitation, the offeror affirms that it does not have any outstanding tax liens issued

Page 18 of 37


by the Utah State Tax Commission.

5.21. RIGHT TO REJECTThe University reserves the right to reject any or all proposals and to waive any informality or technicality in any proposal in the interest of the University. Grounds for rejection of proposals include, but shall not be limited to:

A. Failure of a proposal to conform to the essential requirements of the Request for Proposal.

B. Imposition of conditions that would significantly modify the terms and conditions of the solicitation or limit the offeror’s liability to the University on the contract awarded on the basis of such solicitation.

C. Receipt of proposal after the closing date and time specified in this RFP.

D. Submission of a proposal which is not in compliance with section 3.06PROPOSAL SUBMISSION.

5.22. STATUS VERIFICATION SYSTEMIf a contract is awarded through this RFP for the physical performance of services within the State of Utah, the offeror or itsagent, contractor, subcontractor or service provider is required to register and participate in the Status Verification System (E-verify) to verify the work eligibility status of the offeror or itsagent's, contractor's, subcontractor's or service provider's employees hired on or after July 1, 2009 and employed in the State of Utah, in accordance with UCA Section 63G-12-302.

5.23. DEBARMENTThe contractor certifies that neither it nor its principals or employees are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction or any resulting contract, by any governmental department or agency. If the contractor cannot certify this statement, it must attach a written explanation for review.

Page 19 of 37


SECTION 6– PROPOSAL RESPONSE OUTLINE

6.01. PROPOSAL RESPONSE OUTLINEProposals must be concise and in outline format. Pertinent supplemental information should be referenced and included as attachments. All proposals must be organized and submitted in three separate files as outlined below. Proposals that are not submitted as outlined herein, may be deemed non-responsive and will not be considered.

A. FILE ONE – LETTER OF TRANSMITTAL

The Letter of Transmittal accompanying this RFP shall be in the form of a standard business letter and shall be signed by an individual authorized to legally bind the offeror. It shall include:i. List the name, title, office address, telephone number, fax number and e-mail address of

the person(s) authorized to represent the offeror regarding the offeror’s proposal. ii. A statement indicating the receipt of all addenda and written questions, the answers and

any clarifications to this RFP issued by the University and received by the offeror. If no addenda have been received, a statement to that effect should be included.

iii. A statement that the offeror’s proposal shall remain valid for the time indicated in3.08TIME FOR EVALUATION.

iv. A statement that the offeror will accept financial responsibility for all travel expenses incurred for oral presentations (if required) and candidate interviews.

v. A statement that summarizes any deviations or exceptions the RFP requirements outlined in Section 4.

vi. A statement that summarizes any information considered“confidential”as described in Section 5.08PROTECTED INFORMATION and indicated on the form provided.

vii. A statement that identifies proposed exemptions to the terms and conditions contained or referenced herein.

B. FILE TWO – TECHNICAL PROPOSAL

i. EXECUTIVE SUMMARY AND PROPOSAL OVERVIEWThe executive summary will briefly describe the offeror’s approach and clearly indicate any options or alternatives being proposed. It should also indicate any major requirements that cannot be met by the offeror. It shall condense and highlight the contents of the technical proposal in such a way as to provide the evaluation committee with a broad understanding of the entire proposal.

ii. AGEEMENT TO TERMS AND CONDITIONSAll offerors must demonstrate its agreement with the terms and conditions outlined in sections 3, 5, 7, and 8 of this RFP. The offeror may use language such as, “Understood and Agreed,” in the proposal for each term. A detailed explanation and justification must be provided for any exceptions to the terms and conditions outlined in the aforementioned sections. Offerors shall not submit their own standard terms and conditions as exceptions to any term or condition contained or referenced herein. Each exception to a term or condition shall be individually addressed.

iii. DETAILED DISCUSSIONThis section should constitute the major portion of the proposal and must contain a specific response in outline form to each section in this RFP which requires a

Page 20 of 37


response. Outline numbers should correspond, in order, to the section numbers contained in this RFP.

The response must explain how the offeror would meet the needs of the University as described in this RFP, especially Section 4.03 SCOPE OF WORK AND SPECIFICATIONS. Failure to provide written response to items indicated in this RFP will be interpreted by the University as an inability by the offeror to provide the requested product(s), construction,and/or function. Pricing shall not be included in the technical proposal.

iv. OFFEROR QUALIFICATIONSThe purpose of the offeror Qualifications section is to determine the ability of the offeror to respond to this Request for Proposal. Offers must describe and offer evidence of their ability to meet each of the qualifications listed in section THE UNIVERSITY AND FOUNDATION IS REQUESTING PROPOSALS FROM FINANCIAL INSTITUTIONS THAT WILL INVEST AND MANAGEAPPROXIMATELY $22,000,000 OF UVU FOUNDATION’S INVESTMENT FUNDS IN ADDITION TO FUTURE FUNDS AS ACCRUED BY THE FOUNDATION DURING THE TENURE OF THE CONTRACT. MANAGEMENT WILL INCLUDE GIVING ADVICE TO THE UVU FOUNDATION BOARD ON INVESTMENT STRATEGY AND PROVIDING REGULAR REPORTS ON THE PERFORMANCE OF THE INVESTED FUNDS WITH RECOMMENDATIONS FOR ADJUSTMENTS AS NECESSARY. THE PRIMARY FOCUS IS FOR A FIRM TO MANAGE THESE FUNDS IN BOTH EQUITIES AND IN ALTERNATIVE INVESTMENT VEHICLES AS DESCRIBED INAPPENDIX A, SECTION H AND I.. Describe in detail the company’s capability of providing the services required. Do not use boilerplate marketing materials, but speak very specifically to the Scope of Work.

v. REFERENCESThe offeror shall provide at least five (5) references of customers which have received services similar to those required by the University. Include for each reference, the business name, address, phone number, contact person, date of the project, and a short description of the project and the work performed. The University reserves the right to contact or visit any of the offeror’s provided references to evaluate the level of performance and customer satisfaction. Information gathered during this process will not be made public. If the offeror is not able to provide the aforementioned information, provide a detailed explanation of the reason(s) for such inability. The information gathered from references will be considered during the evaluation process.

vi. EVIDENCE OF FINANCIAL RESPONSIBILITYThe offeror must demonstrate that its organization and any material subcontractors are in sound financial condition and/or that appropriate corrective measures are being taken to address and resolve any identified financial problems.

The offeror shall submit documentation of its financial condition by providing one of the following:

1. A Business Information Report supplied by Dun & Bradstreet.2. Audited financial statements for the two most recent fiscal years.3. Other information available in the ordinary course of business which

demonstrates the offeror’s financial stability.

Page 21 of 37


All information provided by the offeror as evidence of financial responsibility will be considered confidential and will only be disclosed by UVU to any party other than the evaluation committee, except as required by law or upon receiving written consent by the offeror.

vii. MISCELLANEOUSAdditional information and attachments pertinent to this RFP may be submitted by the offeror in this section.

C. ADDITIONAL FILESThe following documents should also be uploaded with the proposal:1. Current W9 form2. Business license

D. ELECTRONIC FORMSThe following electronic forms should be completed on BidSync:1. Vendor Registration Form2. Declaration of Business Confidentiality Form

6.02. OFFEROR’S CHECKLIST

_____ File One – Letter of Transmittal_____ File Two – Technical Proposal

_____ Executive Summary and Overview_____ Detailed Discussion _____ Qualifications Documents _____ Reference Documents_____ Financial Responsibility Documents_____ Miscellaneous Attachments

_____ Other Documents_____ Vendor Registration Form (Electronic form)_____ Business License_____ Current W9_____ Declaration of Business Confidentiality Form (Electronic form)_____ Licenses and/or certificates

Page 22 of 37


SECTION 7– PROPOSAL EVALUATION

7.01. OPENING OF PROPOSALSThe proposals will be opened so as to avoid disclosure of the contents to competing offerors. No public opening will be held. All proposals will be kept in strict confidence until the contract has been awarded. An offeror may withdraw their proposal prior to the University and Foundation making a final decision.

7.02. EVALUATION PROCESS OVERVIEWAll proposals in response to this RFP will be evaluated in a manner consistent with the Utah Procurement Codeand all applicable rules and policies.

The evaluation process will consist of the following steps:A. Responsive determination. See Section 7.03.B. Responsible determination. See Section 7.04.C. Technical evaluation. See Section 7.05.F. Selected offeror. See Section 7.07.

7.03. RESPONSIVE DETERMINATIONProposals will be reviewed to confirm that they conform to the requirements outlined herein. Non-responsive proposals (those that do not conform to RFP requirements) will be eliminated from consideration.A proposal may be rejected if it is conditional or incomplete in the judgment of the University.

7.04. RESPONSIBLE DETERMINATIONIn determining whether an offeror is responsible, the University may evaluate various factors including (but not limited to) financial resources; experience; organization; technical qualifications; available resources; record of performance; integrity; judgment; ability to perform successfully under the terms and conditions of the contract; and adversarial relationship between the offeror and the University that is so serious and compelling that it may negatively impact the work performed under this RFP; or any other cause determined to be so serious and compelling as to affect the responsibility of the offeror.

7.05. TECHNICAL EVALUATIONA committee of University officials appointed by the Purchasing Official will evaluate proposals, found to be responsive and responsible, as outlined herein. The technical evaluation will be based upon the information provided in the proposal, additional information requested by the University for clarification, information obtained from references and independent sources, and demonstrations, presentations, and proofs of concepts if requested. The University and Foundation will evaluate proposals as submitted and may not notify offerors of deficiencies in their responses.

The committee will evaluate the technical proposals in accordance with the criteria outlined below utilizing the RFP Evaluation Score Sheet contained herein. Proposals will be rated superior, very good, good, fair, or poor for each criterion. The technical evaluations for each proposal will be combined to form a technical score for each proposal. Only the top scoring proposals may proceed to subsequent evaluation phases.

If additional technical evaluation phases are needed, for example: demonstrations, presentations, and proofs of concept, they will be scheduled and evaluated by the committee using the RFP Evaluation Score Sheet and the criteria outlined below.

7.06. TECHNICAL EVALUATION CRITERIAProposals will be evaluated in accordance with the following criteria:

Page 23 of 37


A. Understanding the needs, cash flows and investment requirements of the UVU Foundation investments. (15 pts)

B. Experience of the firm in managing institutional endowed funds. (10 pts)

C. The experience, resources and qualifications of your organization and the individual assigned to manage the UVU Foundation’s assets. (10 pts)

D. Historic performance of investing similar asset pools as those available from the UVU Foundation asset pool. (5 pts)

E. Performance of Equities as measured against the benchmarks of similarly sized endowments in the NACUBO/CommonFund Study as well as against traditional benchmarks. (15 pts)

F. Performance of Alternative Investments as measured against the benchmarks of similarly sized endowments in the NACUBO/CommonFund Study as well as against traditional benchmarks. (15 pts)

G. Degree of discretion provided to the UVU Foundation in determining investment holdings? (5 pts)

H. Access to alternative asset investment options. (15 pts)

I. Proposed services and associated investment management fees. (5 pts)

J. Innovative ideas of conceptsyour firm may offer that would have “added value“ for the UVU Foundation Investments. (5 pts)

K. Does the firm have at least $500,000,000 under management from other investors with no single investor having 20% of the assets under management? Yes/No

7.07. SELECTED OFFERORThe contract will be awarded to the offeror whose proposal received the highest composite score. The University will send written notice to the offeror selected as a result of this RFP. If the selected offeror fails to sign the contract offered for their acceptance within a reasonable period of time, as determined by the University, the University may assume that the offeror has abandoned the contract and shall be free to select another offeror with which to negotiate the contract. In such case, the University and Foundation may also choose to debar the offeror that has abandoned the contract from offering on future requirements of the University and Foundation.

7.08. NEGOTIATIONS AND BEST AND FINAL OFFERSThe University reserves the right, as provided by the Utah Procurement Code, to negotiate with the finalists and to call for best and final offers.

Page 24 of 37


SECTION 8 – CONTRACT TERMS AND CONDITIONS

8.01. CONTRACT TERMS AND CONDITIONSAny contract resulting from this RFP will include, but not be limited to, the applicable terms and conditions contained in the University’s Purchase Order Contract Terms and Conditions document viewable at http://www.uvu.edu/procurement/terms.

If the offeror has any contractual documents, in whole or in part, to comprise a portion of the final governing language of any agreement arising from this RFP, including maintenance agreements, a copy of that agreement must be submitted with the proposal. A legal review of the contractual demands in view of what is acceptable to the University as an entity of the State of Utah shall be part of the criteria in evaluating the proposal for responsiveness. In the event of a conflict, the terms contained in this RFP document or any subsequent addenda govern.

The University and Foundation will not enter into any contract or affix signature to any document, the terms of which require the University or Foundation to waive conditions or requirements negotiated via this solicitation process, provided for in the document, or by mutual consent. Any document containing a clause or clauses that purport to supersede all other documents included in, or arising from this RFP process will be rejected.

8.02. EXCUSED PERFORMANCEIf, because of riots, war, public emergency or calamity, fire, flood, earthquake, act of God, or government restriction, business operations at the University are interrupted or stopped, the performance of the Agreement, with the exception of money already due and owing, shall be suspended and excused to the extent commensurate with such interfering occurrence. The expiration date of the Agreement may be extended, by mutual written consent, for a period of time equal to the time that such default in performance is excused.

8.03. ENDORSEMENTUnless specifically authorized in writing by the University, the contractor shall have no right to use, and shall not use, the name of Utah Valley University, its officials or employees, or the seal or mark of the University in advertising, publicity, or promotion; nor to express or imply an endorsement of contractor’s products or services.

8.04. DATA SECURITYThe contractor shall treat all data that it receives from the University or Foundation, or is otherwise exposed to within University or Foundation data systems, with the highest degree of confidentiality and in compliance with all applicable federal and state laws and regulations and University policies. The contractor shall employ best practices for ensuring the security of all University electronic and paper data accessed, used, maintained, or disposed of in the course of contractor’s performance under this Agreement. The contractor shall only use such data for the purpose of fulfilling its duties under this Agreement and shall not further disclose such data to any third party without the prior written consent of the University or as otherwise required by law. Upon termination or expiration of the contract, contractor will either return or confirm the secure destruction of all University documents, records and data, at the University’s election.

8.05. OTHER AGREEMENTSThe government entity addendum (GEA) and the payment card industry data security standards (pci dss), if applicable, copies of which are viewable at http://www.uvu.edu/procurement/terms, will be part of the final contract.

Page 25 of 37

http://www.uvu.edu/procurement/terms

http://www.uvu.edu/procurement/terms


8.06. ASSIGNMENTThe contractor shall not assign or subcontract any portion of its obligations under the contract without the prior written consent of Procurement Services. Assignment or subcontracting shall in no way relieve the contractor of any of its obligations under the contract.

8.07. COMPLIANCEThe contractor agrees to comply with the provisions of the Utah Workmen’s Compensation Act, Utah Occupational Disease and Disability Act, Utah Unemployment Compensation Act, Federal Unemployment Tax Act, Federal Insurance Contribution Act.

The contractor hereby agrees to abide with all other applicable federal, state, county and city laws and regulations and to be responsible for obtaining and/or possessing any and all permits and licenses that may be required.

8.08. TERMINATION OF CONTRACTInadequate delivery, unsatisfactory service, failure to adhere to the contract covenants, or other material breach of the contract terms may result in termination of the contract. The contractor shall be responsible for reimbursing the University for expenses incurred as a result of unacceptable service. In the event that either party determines that a material breach has occurred that would be cause for termination of the contract, the party wishing to terminate shall notify the other party of the alleged breach in writing, and allow the other party thirty (30) days in which to cure the alleged breach. If the alleged breach is not cured or substantial steps to cure the alleged breach are not taken within this period, the non-defaulting party may terminate the contract at the end of said thirty (30) day period.

8.09. ACCEPTANCE OF SERVICES RENDEREDThe University, through its designated agents and representatives, will be the sole determining judge of whether services rendered under the contract satisfy the requirements as identified in the contract.

8.10. INDEMNIFICATIONThe contractor shall protect, indemnify, and save harmless, the University and the State of Utah and their officers, employees, and agents from and against any and all claims, demands, losses, causes of action, judgments, damages and expenses of every kind or character including, but not limited to, attorney fees resulting from bodily injury, death, or damage to, or destruction of, tangible property or any other injury or damage resulting from or arising out of: (a) performance or breach of the contract by the contractor;(b) the contractor’s use of University premises; or (c) any act, error, or omission on the part of the contractor, or its agents, employees, invitees, participants, or subcontractors except where such claims, demands, losses, causes of action, judgments, damages and expenses result from the negligent acts or omissions of contractor and/or its agents, invitees, participants, or subcontractors. The contractor shall defend the University and the State of Utah and their officers, employees, and agents from all claims covered by this indemnification and shall pay its proportionate share of all costs and expenses incidental thereto, but the University shall have the right, at their option, to participate in the defense of any such suit without relieving the contractor of any obligation hereunder.

8.11. INSURANCEThe contractor shall maintain, during the term of the contract, comprehensive General, Contractual, Professional and Errors and Omissions (E&O) Liability Insurance and Employee Dishonesty bonding coverage or such coverage as required by Federal, State, and local laws governing the services described herein. The contractor shall also maintain all employee-related insurances, in the statutory amounts, such as unemployment compensation, worker’s compensation, and employer’s liability, for its employees

Page 26 of 37


involved in performing services pursuant to any resulting underwriting contract. Such coverage may be self-funded.

8.12. ACCOUNTINGThe contractor must keep accurate accounting records of all operations covered by the contract and establish and maintain a system of bookkeeping and accounting satisfactory to the University and Foundation. The contractor should be able to summarize and concisely report pertinent information in a timely manner through the duration of the contract.

8.13. RELATIONSHIP OF THE PARTIESIn assuming and performing the obligations of any contract, the University/Foundation and any contractor shall act as independent parties and neither shall be considered or represent itself as a joint venturer, partner or employee of the other.

8.14. EQUAL OPPORTUNITYNo offeror of goods and/or services under any contract shall discriminate against any employee, applicant for employment, or recipient of services on the basis of race, color, religion, national origin, gender, pregnancy, childbirth, pregnancy-related conditions, age, disability, veteran status, genetic predisposition, or otherwise as provided by state and federal law.

8.15. STATE AND LOCAL TAXESThe University is exempt from State of Utah sales and excise taxes (State of Utah Sales Tax Exemption number: 11843640-002-STC). Exemption certification information appears on all purchase orders issued by the University and such taxes will not apply to the University unless otherwise noted.

8.16. PRICE REDUCTIONIf at any time during the contract period, the contractor reduces the price of any good or service covered under a contract, the contractor shall give the University proportionately reduced pricing for such goods or services.

8.17. NON-APPROPRIATION OF FUNDSThe contractor acknowledges that the Universitycannot contract for the payment of funds not yet appropriated by the Utah State Legislature. If funding to the University is reduced due to an order by the Legislature or the Governor, or is required by State law, or if federal funding (when applicable) is not provided, the University may terminate the contract or proportionately reduce the services and purchase obligations and the amount due from the University upon thirty (30) days written notice. In the case that funds are not appropriated or are reduced, the University will reimburse the contractor for products delivered or service performed through the date of cancellation or reduction, and the University will not be liable for any future commitments, penalties, or liquidated damages.

Page 27 of 37


APPENDIX A – ABOUT UVU FOUNDATION A. BACKGROUND

The Utah Valley University Foundation, Inc. was organized and incorporated in 1981 under Board of Regent policy as a support organization and “component part” of Utah Valley University for the purpose of stimulating voluntary private support from alumni, parents, friends, corporations, foundations, and others for the benefit of the University.

The Foundation exists to help raise and manage private resources and to steward donors supporting the mission and priorities of the University as articulated by the Board of Trustees and the President and provide opportunities for students and a margin of institutional excellence unavailable with state funds.

The Foundation is dedicated to assisting the University in building the endowment and in addressing, through financial support, the long-term academic and other priorities of the University. The Board and its members provide advice and counsel to the University President and Vice President for Development and Alumni Relations concerning fund raising and externally focused programs as appropriate, and manage gift resources and institutional endowments consistent with governance policy as outlined in Regents Policy, University Policy and UVU Foundation Policy.

As stated in its articles of incorporation, the Foundation is a separately incorporated 501(c)(3) organization and is responsible for assisting the Development Office in identifying and nurturing relationships with potential donors and other friends of Utah Valley University, and soliciting cash, securities, real and intellectual property, and other private resources for the support of the University and acknowledging and stewarding such gifts in accordance with donor intent and its fiduciary responsibilities

B. MISSION

The mission of the UVU Foundation is to obtain financial support for Utah Valley University. Our mission is accomplished through three objectives.

1. Serving as AmbassadorsAssist the University administration and involve members of the community in programs and activities of the University. Tell the story of the University to groups and individuals with such effectiveness that support for the institution is a natural consequence.

2. FundraisingIn cooperation with the University’s Alumni Relations and Development Division; plan, organize and execute development programs including planned giving, annual giving, campaigns, and other appropriate activities.

3. Fund Management Invest the University’s endowment with the purpose of realizing a return that is above the median performance of similarly managed university funds. Insure that the endowment is properly accounted for and disbursed.

Page 28 of 37


C. GOVERNANCEThe management powers of the Foundation are vested in a self-perpetuating Board that has charge, control and management of the property, affairs, and funds of the Foundation; and has the power and authority to do and perform all acts and functions not inconsistent with the Foundation’s Bylaws, or with the Articles of Incorporation.

The Foundation Board currently consists of twenty volunteer members including a Chair and two Vice-Chairs. The Board also contains five ex-officio members. Those members include the President of Utah Valley University, the CEO of the Foundation (University Vice President of Development and Alumni Relations), COO of the Foundation (Sr. Director of Development), the President of the Alumni Association, and the President of the Utah Valley University Student Association.

D. ASSET MANAGEMENTThe Foundation has responsibility for the following financial management obligations.

i. The Foundation has responsibility to manage all assets under its control, and transfers funds to the designated entities within the institution in compliance with applicable laws, university policies, and donor intent as defined in gift agreements.

ii. The Foundation has responsibility for asset-allocation, disbursement, and spending policies for all managed resources that adhere to applicable University policy and federal and state laws, including the Uniform Prudent Management of Institutional Funds Act (UPMIFA).

iii. The Foundation Investment Guidelines are set by Utah State Higher Education Board of Regents policy, which adheres to UPMIFA. Any changes to the Investment Guidelines beyond the ranges set forth in Regents Policy requires approval of the University Board of Trustees and the Utah State Higher Education Board of Regents.

iv. The Foundation receives, holds, manages, invests, and disburses contributions of cash, securities, patents, copyrights, and other forms of property, including immediately investing gifts and deferred gifts that are contributed in the form of planned and deferred-gift instruments.

v. The Foundation engages an independent accounting/audit firm annually to conduct an audit of the Foundation’s financial and operational records and provides the University with a copy of the annual audited financial statements, including management letters.

E. INVESTMENT POLICYi. BACKGROUND

The endowment funds of Utah Valley University are segregated from the University’s other assets and are held at and invested within the Utah Valley University Foundation. The Foundation has its own tax identification number and is a separate legal entity apart from the University.

Page 29 of 37


ii. INVESTMENT OBJECTIVESFoundation funds (the “Fund”) are invested under the total return concept of the Uniform Prudent Management of Institutional Funds Act (UPMIFA), whereby “net appreciation, realized and unrealized, in the fair value of the assets of an endowment fund” may be appropriated for expenditure. UPMIFA was adopted into state law under Utah Code Annotated §51-8, as amended, and is the governing regulation for the Foundation’s endowment funds. The Fund’s investment objectives are as follows:

1. To maximize returnsover a rolling 10-year periodwithin established riskparametersand constraints imposed by operational and regulatory considerations.

2. To meet Foundation funding requirements and unexpected developments.

3. To exceed long-term annual foundation spending projections calculated at 4.5% in real terms.

iii. ASSET ALLOCATION GUIDELINES

The asset allocation guidelines contained herein are written to comply with the Utah State Board of Regents Investment Policy (R541). The following asset allocation targets and ranges will guide the long-term Foundation investment activities:

Asset Class Target Allocation Allocation Range

Marketable Equities 55% 20% - 65%

Fixed Income, including cash 30% 25% - 50%

Alternatives: Portfolio Value1

<$50 million

>$50 million

15%

15%

5% - 15%

5% - 20%

The Investment Committee and Foundation Staff will manage the asset allocation mix within the Target Allocations and Allocation Ranges. It is expected that the asset allocation mix will be diversified among asset classes and be designed to meet the rate of return and risk objectives of the Fund over a 10-year period or longer.

i. Use of commingled funds (e.g., mutual funds, bank trust funds), domestic and offshore partnerships and corporations, separate account agreements, and obligations of the University which meet the general intent of the guidelines, may be utilized by the Fund.

1 Portfolio Value includes Board Directed and Donor Investments (Performing Assets on the “Statement of Financial Position and Activities” report; not included are pledges receivable.

Page 30 of 37


ii. Alternative assets and other illiquid investments that may be classified elsewhere, for purposes of compliance to these guidelines, shall be measured at time of purchase.

iii. When investing in illiquid or non-marketable alternative asset classes, strategies, and investments, such investments shall be thoroughly documented describing the asset classes, securities, and/or strategies.

iv. Cash inflows and outflows will be invested in or taken from portfolios in accordance with the most recently measured asset allocation relative to the stated Asset Allocation Guidelines, subject to liquidity constraints and operational realities. Regardless of such constraints and realities, active inflow and outflow decisions may not cause the portfolio to violate the allocation limits outlined herein. For example, if equities were 65% of the portfolio allocation at the time of an inflow, no portion of the incoming cash could be invested in equities because this would cause the allocation to exceed the stated limit.

v. The Committee will review the Fund’s asset allocation on a regular basis.

vi. Rebalancing:

1. The Committee shall determine the initial weighting and rebalancing parameters for allocation to investment strategies. The Committee may also seek advice from external investment advisor(s) or consultant(s) regarding asset allocation strategies.

2. The Committee may rebalance the portfolio at any given time, provided the portfolio allocations remain within their stated limits.

3. Upon approval of the Committee, Staff will direct managers in rebalancing portfolios when any of the allocation limits is breached, as measured at a quarter-end. This requirement is waived when market conditions result in illiquid asset limits being breached because such assets are not marked to market. The Committee believes that selling illiquid assets during times of market distress is counterproductive to long-term investment success.

4. Because of the illiquid nature of some alternative strategies, these investments may not be able to participate in regular rebalancing. It is expected that alternative assets’ allocation changes will more likely occur as a result of cash flows into or out of the Fund.

vii. Eligible Fund Investments

Page 31 of 37


1. The following guidelines shall define eligible Fund investments and their parameters. These guidelines shall be subject to review on an ongoing basis.

a. Marketable Equities

i. The marketable equity segment may be diversified across a spectrum of market capitalizations by allowing investments in small, medium, and large-capitalization stocks.

ii. The marketable equity segment may be diversified across multiple regions, including the United States, developed foreign markets, and emerging markets.

iii. Equity holdings should be readily marketable and diversified by issue, industry, and sector.

iv. Equity managers may invest in short term commercial paper, money-market mutual funds, other money market investments, and short term bond investments as a surrogate for cash reserves from time-to-time. The intent is to have the investment manager remain fully invested at all times.

b. Fixed Income

i. Fixed Income holdings may include privately negotiated contracts between the Foundation and University or outside parties.

ii. Marketable fixed income should be diversified by country, issuer, sector, coupon, and quality.

c. Alternative Investments

i. In addition to the foregoing investments, the Fund may invest in alternative investment funds that derive returns primarily from high yield and distressed debt (hedged or non-hedged), private capital (including venture capital, private equity, both domestic and international), natural resources, and private real estate assets or absolute return and long/short hedge funds (each an “Alternative Investment Fund”).

ii. The Fund may invest in Alternative Investments up to the limits outlined in the section titled “Asset Allocation Guidelines” above.

iii. The alternative investment segment of the portfolio should be diversified among various types of investments.

Page 32 of 37


iv. Alternative investments shall be measured against appropriate benchmarks, universes and/or expected rates of return.

viii. Fund Risk Tolerance

1. Based on the Foundation’s understanding of capital market risk, the following guiding principles and measures may be utilized to assist the Foundation to manage portfolio volatility relative to return in the Fund:

i. The Fund may invest in assets that, by themselves, appear highly risky, but when taken within the context of the overall Fund, provide a reasonable diversification benefit or a commensurately high expected return to compensate for the risk.

ii. Standard Deviation or other measures of portfolio volatilityiii. Beta versus markets, primarily equity and fixed income

iv. Return and risk ratios such as Sharpe and Information Ratios

v. Duration as a measure of interest rate sensitivity

vi. Returns relative to benchmarks over 3 and 5 year timeframes or longer

vii. Peer return rankings over 3 and 5 year timeframes or longer, where available

viii. Total fund performance within the NACUBO universe or similar universe

b. The Foundation recognizes that the primary fiduciary obligation regarding the Fund is to prudently invest the portfolio to meet investment objectives that will fulfill the purpose of the Fund as described in the Investment Objectives section above.

c. The Foundation fully recognizes the likelihood of periodic market declines and is willing to accept the possibility of some short-term declines in market value in order to achieve potentially higher long-term investment returns.

d. Assets of the Fund are to be diversified to protect against large investment losses and to reduce the probability of excessive performance volatility.

e. Diversification of assets is to be achieved by:

i. allocating monies to various asset classes and investment styles within asset classes, and

ii. retaining investment management firm(s) with complementary investment philosophies, styles, and approaches.

Page 33 of 37


F. SPENDING POLICY

The UVU Foundation’s spending policy is set based on expectations set forth in UPMIFA and are benchmarked annually against our peers based on data in the NACUBO/CommonFund Endowment Study. To this end, the UVU Foundation’s Spending Policy is:

i. based on a three year rolling average of the return on investment of the Endowment.

ii. variable in that the spending rate is dependent on the average return during that three year period. Specifically,

a. For rates of return greater than 10%, the spending rate is 5%.

b. For rates of return between 8% and 10%, the spending rate is 4.5%.

c. For rates of return less than 8%, the spending rate is 4%.

G. INVESTMENT COMMITTEE

The Investment Committee for the UVU Foundation Board has primary responsibility for the items listed under section D. The Investment Committee is focused on strategic decisions related to the overall asset allocation and management of endowed funds. The decisions are made during quarterly Committee meetings. The Committee trust the fund managers to make tactical decisions with regards to the funds under management. However, the board requests short monthly updates of these tactical shifts. Decisions made by the Committee must be approved by the Executive Committee and the full Board.

The members of the Investment Committee are not required to be members of the full Board. However, they are chaired by a full board member. The Investment Committee voting members are:

i. Jefferson Moss, Chair – Vice President/Investment Specialist at Key Private Bank. Formerly an Associate with Credit Suisse. MBA, FINRA Series 7 and Series 65.

ii. Mike Francis, CPA - Associate VP of Finance, Utah Valley University

iii. Rob Garder, CPA – CFO of Goal Zero. Formerly a Manager at Sorenson Capital. MBA, MaCC.

iv. Joel B. Kincart, COO of the UVU Foundation

v. Duane Madsen - Retired Vice President of Wealth Management Investment Advisory Services at Goldman Sachs. MBA.

vi. Jeremy Nielson, JD – Managing Director at Assure Equity Partners. Formerly the Managing Director of the Utah Fund of Funds. MBA, JD.

vii. Marlo M. Oaks, CFA, CAIA – Senior Advisor at Peace Field, Ltd. Formerly the Director of Investments at Intermountain Healthcare and the Director of Investments - Farmers Insurance. Seventeen years of institutional investment management experience. MBA

Page 34 of 37


viii. Heidi Thorn – CEO/President of Navitus Renewable Energy. Formerly with Morgan Stanley/Smith Barney. Formerly the CEO/President of the Gold Fund, Inc. FINRA Series 7 and Series 65, NASD Series 31.

ix. Brigham Tomco, JD – CEO of Zylun. Formerly a Partner at Canyon View Partners. Formerly an Associate and Investment Committee member with Ocean Road Advisors. MBA, JD.

H. DEFINITIONS

As it relates to our Investment Guidelines and this RFP, the following information also applies:

i. The UVU Foundation measures its performance against the data provided in the NACUBO/CommonFund Endowment Study.

ii. The UVU Foundation benchmarks its asset allocation against the data provided in the NACUBO/CommonFund Endowment Study.

iii. The UVU Foundation benchmarks its spending rate against the data provided in the NACUBO/CommonFund Endowment Study.

iv. The UVU Foundation defines “alternatives” using the definition of the NACUBO/CommonFund Endowment Study. This is consistent with Board of Regents Policy. Alternatives are defined as all investment vehicles that are neither bonds nor publicly traded stocks. This definition includes commodities and funds that derive returns primarily from high yield and distressed debt (hedged or non-hedged), private capital (including venture capital, private equity, both domestic and international), natural resources, and private real estate assets or absolute return and long/short hedge funds.

I. OTHER ESSENTIAL INFORMATION

i. The UVU Foundation manages its cash via the Utah Public Treasurers’ Investment Fund (PTIF) which is available to state and local government entities as a short-term cash investment vehicle. The PTIF invests primarily in investment-grade corporate notes, top tier commercial paper, money market mutual funds and U.S. government agency obligations. The PTIF invests only in securities authorized by the Utah Money Management Act. This fund returns a competitive interest rate and does not include management fees.

ii. The UVU Foundation manages its fixed income obligation at this point in time via long term loans to the University for key institutional projects. These loans are backed by the State of Utah via the University and earn a competitive rate of return. Further, these loans serve the Foundation’s purpose of supporting the University.

Page 35 of 37


Page 36 of 37


RFP EVALUATION SCORE SHEET Q0010113 – Investment and Management of Funds

Offeror:

Evaluator:

Date:

Score will be assigned as follows:1 = Poor, inadequate, ability to meet requirements doubtful2 = Fair, ability to meet requirements questionable3 = Good, meets minimum requirement4 = Very good, exceeds minimum requirement5 = Superior

Criteria Score(1-5)

Evaluator Notes

A. Understanding the needs, cash flows and investment requirements of the UVU Foundation investments. (20 pts)

B. Experience of the firm in managing institutional endowed funds. (10 pts)

C. The experience, resources and qualifications of your organization and the individual assigned to manage the UVU Foundation’s assets. (10 pts)

D. Historic performance of investing similar asset pools as those available from the UVU Foundation asset pool. (5 pts)

E. Performance of Equities as measured against the benchmarks of similarly sized endowments in the NACUBO/CommonFund Study as well as against traditional benchmarks. (15 pts)

F. Performance of Alternative Investments as measured against the benchmarks of similarly sized endowments in the NACUBO/CommonFund Study as well as against traditional benchmarks. (15 pts)

G. Degree of discretion provided to the UVU Foundation in determining investment holdings? (5 pts)

H. Access to alternative asset investment options. (15 pts)

I. Proposed services and associated investment management fees. (5 pts)

J. Innovative ideas of conceptsyour firm may offer that would have “added value“ for the UVU Foundation Investments. (5 pts)

K. Does the firm have at least $500,000,000 under management from other investors with no single investor having 20% of the assets under management? Yes/No

Page 37 of 37

RFP Template€¦ · Web viewPURPOSE OF REQUEST FOR PROPOSAL. The purpose of this Request for...

Documents

Transcript of RFP Template€¦ · Web viewPURPOSE OF REQUEST FOR PROPOSAL. The purpose of this Request for...