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TO: |
Board of Trustees |
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THROUGH: |
Mary DeLoretto, Interim Executive Director |
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FROM: |
Bill Greene, Chief Financial Officer and Treasurer |
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PRESENTER(S): |
Emily Diaz, Financial Services Administrator |
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TITLE:
title
Contract: Investment Management Services (Chandler Asset Management, Inc.)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve contract 21-03454 and authorize the Interim Executive Director to execute the contract and associated disbursements with Chandler Asset Management, Inc. for Investment Management Services
BACKGROUND:
UTA desires to hire professional services for Investment Management Services to monitor the market and manage its investment portfolio. On June 15, 2021, UTA issued a Request for Proposal (“RFP”) encouraging interested parties to submit proposals to perform these services for the next 10 years. After evaluation of the seven proposals received, UTA has selected Chandler Asset Management, Inc.
DISCUSSION:
UTA issued an RFP to seek professional services for investment management services for a period of 10 years. UTA received a total of seven responses. After a careful evaluation using the criteria contained in the RFP, Chandler Asset Management, Inc.’s proposal received the highest combined rating and was considered to provide the best value to UTA.
The price was determined to be fair and reasonable based on adequate competition. Payment will not exceed $115,000 per year or $1,150,000 for the ten (10) year period based on a portfolio value of $200 million. However, during the contract term, if the value of the assets managed by the Consultant exceeds $225 million for three consecutive months, the Consultant and the UTA will negotiate a new contract cap reflective of the assets under management.
A 10-year period of performance was approved by the UTA Chief Procurement Officer for this contract in order to maximize long term investment strategy and produce the highest yield and best overall investments for UTA.
CONTRACT SUMMARY:
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Contractor Name: |
Chandler Asset Management, Inc. |
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Contract Number: |
21-03454 |
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Base Contract Effective Dates: |
October 27, 2021-September 30, 2031 |
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Extended Contract Dates: |
N/A |
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Existing Contract Value: |
N/A |
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Amendment Amount: |
N/A |
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New/Total Amount Contract Value: |
$1,150,000 |
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Procurement Method: |
Request for Proposal |
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Funding Sources: |
UTA investment earnings |
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ALTERNATIVES:
UTA could perform these services in house by hiring a number of full-time financial employees to monitor the market on a daily basis to buy and sell investments on behalf of UTA, and remain current on changing requirements in the market.
FISCAL IMPACT:
The fees for Investment Management Services are taken out of investment earnings.
ATTACHMENTS:
Contract- Investment Management Services (Chandler Asset Management, Inc.)