Vendor Value Index Targets Unwarranted Fee Arrangements

August 19, 2011 ( - Fiduciary advisor Roland|Criss has announced a new offering to help pension and foundation executives assess their vendors’ performance and fees. 


According to a press release, the Vendor Value Index contains a special feature that meets the Department of Labor’s new regulation 408(b)(2), which requires retirement plan sponsors to prove the reasonableness of the compensation paid to vendors. 


Roland|Criss says it created the Vendor Value Index in response to the “information disadvantage” that retirement plan sponsors and foundation executives face with their vendors, noting that “in the fiduciary market, vendors are specialists in the design of their products, services, and compensation arrangements”, and that “vendors have a critical information advantage over their clients”, which the firm said can lead to excessive fees going unnoticed. 


By applying forensic analysis, Roland|Criss developed the Vendor Value Index in order to equip its clients to identify potential and unwarranted fee arrangements. According to the firm, its methodology applies to all service provider types in both the retirement plan and foundation communities. 


The Vendor Value Index provides a vendor rating of 1 to 5, based upon qualitative data gathered regarding the vendor’s services and fees. A rating of 1 indicates the vendor’s fees are reasonable as defined under ERISA and UPMIFA, while a rating of 5 indicates the vendor is charging excessive fees for their services provided, according to the firm. 


“The Vendor Value Index will redefine how executives measure vendor performance and ROI.  We have seen it to be especially effective for CFO’s, as they are often leading the charge in evaluating cost vs. value,” said Ronald E. Hagan, President and CEO of Roland|Criss.   


The Vendor Value Index, which the firm says is a key part of Roland|Criss’ Fiduciary Supply Chain Management System, may be viewed at