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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Kim Shanklin, Chief People Officer |
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PRESENTER(S): |
Kim Shanklin, Chief People Officer |
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TITLE:
title
Change Order: Investment Management Agreement Modification No. 002 - Term Extension (Cambridge Associates, LLC)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve the extension of the contract term and authorize the Executive Director to execute the change order and associated disbursements for investment management services in the amount of $510,000.
BACKGROUND:
Cambridge Associates, LLC was chosen as part of an RFP process to provide investment fund management services to the UTA Pension Committee. That initial contract was executed effective February 1, 2016, with a one-year term that could renew automatically on an annual basis for a maximum of six renewals. The seventh year of the contract (6 renewals) ends on January 31, 2023. The RFP process to procure the next 5-year contract has been started but the work will not be completed until fourth quarter 2023.
DISCUSSION:
The Chief Procurement Officer has reviewed and approved an extension of the contract term beyond the initial 7-years to properly ensure continuity of services. Staff is now requesting that the board approve the one-year extension, and associated contract value increase, to allow time to complete the procurement of a new contract. It is estimated that approximately $2,502,938 has been spent for investment management services over the life of this contract. Investment management fees are based on a calculation of basis points per volume of investment assets managed OR a minimum annual fee of $280,000 (whichever is greater).
CONTRACT SUMMARY:
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Contractor Name: |
Cambridge Associates, LLC |
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Contract Number: |
15-1403JL-2 |
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Base Contract Effective Dates: |
February 1, 2016 - January 31, 2023 |
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Extended Contract Dates: |
February 1, 2023 - December 31, 2023 |
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Existing Contract Value: |
$2,502,938 (estimated) |
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Amendment Amount: |
$510,000.00 |
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New/Total Contract Value: |
$3,012,938 (estimated) |
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Procurement Method: |
Extension of competitively bid contract |
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Budget Authority: |
Pension Operating |
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ALTERNATIVES:
Operate without a Pension Fund Investment Management provider until the results of an RFP are completed in third quarter 2023.
FISCAL IMPACT:
This contract has no fiscal impact on UTA’s budget as it is paid from the Pension Trust.
ATTACHMENTS:
Amendment two (2) to the Investment Management Agreement
Investment Management Agreement (original contract with Cambridge Associates)