[checklist][/checklist][divider]
Organization Name: Dot Foods, Inc.
Mandate Size/Type: $201m Defined Contribution Plan
City, State: Mount Sterling, IL
eRFP Status: Invite-Only, Issued in February, Proposals deadline March, Finals in April.
Purpose of the RFP: Due diligence
Incumbent: Rubin Brown, was invited to rebid (originally hired via RFP process in 2003)
RFP Services Utilized: InHub’s eRFP technology (www.theinhub.com/eRFP). Also worked with InHub for assistance creating the first draft of the RFP (InHub’s Front-End Concierge Services) and utilized InHub’s Advisor Platform to source qualified RFP candidates.
Finalists: SageView, Ellwood Associates, Rubin Brown
Winner: SageView (replacement)
Post Mortem with Plan Sponsor: Dot Foods, a larger food distributor conducts RFPs for all aspects of their business to stay competitive – it’s just good business according to Tom Strieker, their Director of Benefits and compensation, so why not for their 401k plan advisor. They do it for all providers including their record keeper, which is required by law, so though they were happy with their incumbent advisor, they set out to conduct prudent and proper due diligence looking to make sure they were getting “…the best of the best service at a competitive price.”
Then life got in the way and they delayed the search focused on other priorities especially since they were happy with their current advisors. That’s why Strieker hired InHub which he called his “caddy”. They were instrumental in organizing the questions, facilitating the responses and retaining the information to help Dot Foods focus on the issues. They took time vetting InHub and were very pleased with the results.
Biggest issue other than other priorities getting in the way according to Strieker? Getting senior management with busy schedules to stay on board with the process which included 7 advisors responding to the RFP and 3 finalists. In the end they selected a new advisor from Sageview because Dot’s team connected with the advisor and his team and Strieker liked the fact that they were part of a national organization that could grow with the company.
“With so much going on, you can get overwhelmed,” advised Strieker, “Especially if things are going well. You may be tempted to wait until something bad thing happens. We probably would not have conducted the RFP without the help of InHub.” Dot conducts an RFP for their record keeper every 3-5 years but expects to wait 5-7 years until their next advisor RFP even if everything is going well with that advisor. It’s just good business and, by the way, it is the law.
For help on conducting a plan advisor search go to 401kTV’s advisor RFP service using InHub technology.
