Michigan.gov/MiProcurement

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Michigan.gov/MiProcurement Schedule a3 – Charity Game Tickets statement of work contract activities Request for Proposal (RFP) No. 230000002409 Charity Game Tickets Background The Michigan Bureau of State Lottery (Bureau) is seeking proposals for the manufacture of Charity Game Tickets, as well as all related services and supplies associated with producing Charity Game Tickets.

Scope The Bureau’s Charitable Gaming Division is responsible for providing charity game tickets to licensed suppliers for resale to organizations that have been issued a gaming license by the Bureau. The Charitable Gaming Division presently inventories 25 to 30 different Charity Game Tickets and introduces multiple new games each year. Approximately 131 million Charity Game Tickets are sold to organizations each year.

The annual number of tickets is an estimate, and the Bureau is neither committed to nor limited by the estimated quantities when making purchase orders. The Bureau will use its discretion when determining the number of tickets needed in each purchase order.

The Bureau may, at its discretion, implement a validation system for charity game tickets. The system currently used by licensed lottery retailers is provided by IGT Corporation under a separate contract.

Any contract awarded will be based on best value to the Bureau. Best value is not limited to the lowest price or highest proposal score. The concept of best value encompasses a wide array of factors, including pricing, strength and versatility of the proposal, bidder experience, ease of administration over one or multiple contracts, and/or local economic benefits.

The contractor must respond to each requirement or question and explain how it will fulfill each requirement. Attach any supplemental information and appropriately reference within your response.

1. General Requirements Product specifications for Charity Game Tickets are included in the various sections and subsections below.

a. The contractor must provide deliverables/services, staff, and otherwise do all things necessary for or incidental to the performance of work as set forth herein. Necessary work may include but is not limited to:

1. Graphic design, winning ticket randomization, prize structure development, launch schedule coordination, print production, packaging, and shipping;

2. Developing game specifications;

3. Coordinating and executing game design;

4. Producing and launching schedule oversight from design to delivery;

5. Providing press proofs to program manager or designee by next business day for approval;

6. Interfacing with/utilize lottery computerized accounting, allocating or validating systems;

7. Controlling inventory and security as necessary to protect the integrity of the game; and

8. Marketing, promoting, and supplier training.

b. The contractor will develop game specifications for each game under the direction of the program manager or designee. The game specifications will be referred to as working papers. The contractor must produce specifications that accurately reflect each new game. Working papers must include:

1. Prize structure;

2. Ticket specifications;

3. Final art for front and back of tickets;

4. Winning and non-winning symbols;

5. Game data files and other required data;

6. Flare/information specifications;

7. Postcard;

8. Serial number;

9. Packaging and shipping information;

10. Palletizing instructions;

11. Order quantity;

12. Production and delivery schedule;

13. Approval to authorize production; and

14. Any optional products features, or services requested by the program manager or designee, and pricing.

c. The program manager or designee must approve game specifications and issue a purchase order before ticket manufacturing begins. The contractor must manufacture and deliver the tickets according to the working papers. The working papers for each game will become part of the contract.

d. The contractor must write working papers for the games in a format provided by the Bureau. The program manager will establish a schedule for the execution of working papers to facilitate the orderly process for production and delivery of tickets. The cost of working paper creation and revision shall be included in the base ticket price.

Program Manager – Charity Game Tickets Name TBD, Email: TBD Phone: TBD

1.1. Charitable Pull-Tab Specifications

a. Prize Structure The contractor will work with the program manager or designee to develop prize structures, prize randomization, and multi-win extensions, as needed.

b. Ticket Design The contractor shall be responsible for working with existing ticket designs/themes and creating new ticket designs/themes.

1. Existing Games: The contractor may be required to reproduce up to 30 existing games. The Bureau will provide art samples for existing games. When an existing game is reproduced, the Bureau will determine if new working papers must be drafted.

2. New Games: The contractor will provide game themes and artwork for new games. The contractor may be required to provide several new games during the term of the contract. New games may be provided from existing games offered in other jurisdictions or may be new designs.

3. Winning combination patterns, winning and non-winning symbols, ticket front art and ticket back art including opening tab perforations shall be included in the working papers.

4. Any given ticket shall not contain more winning combinations than what is intended for that ticket. Each deal must contain the exact number of tickets as well as the exact number of tickets for each prize amount as defined in the working papers. Each bundle of tickets must contain an acceptable number of winners (typically 8 to 11 out of 50).

5. A Michigan Lottery or other Bureau-approved logo shall appear on each ticket along with language provided by the Bureau.

List all exception(s):

Bidder must describe how they comply with the above requirement(s):

1.2. Trademark and Service Mark Searches

The Contractor will conduct trademark and service mark searches for all game and/or promotion names not owned by the Contractor no less than 60 calendar days in advance of game production or the promotion and as used during the term of the Contract and provide to the State with a written legal opinion as to the permissible use of each game name based upon a search of registrations and applications for registration filed with the United States Patent and Trademark office, applicable state agencies and other appropriate sources.

New trademarks and service marks developed for the Bureau will be the property of the State of Michigan and will be registered, by the Contractor, in the name of the Bureau, at its discretion. The contractor shall provide the Program Manager or designee with a copy of the signed registration or denial of a trademark or service mark.

The contractor shall be responsible for renewing all trademark or service marks, as required.

The contractor will provide a letter warranting its ownership when granting the Bureau, the right to use a game name, owned by the contractor.

All costs relating to the above shall be the contractor’s responsibility, as part of the Contract.

Where Contractor does not own or have licensed use of any game name or artwork, it is understood that: Contractor’s indemnification obligations outlined in the contract apply, the State is under no obligation to undergo an independent inquiry, and agreement to the working papers or any other approval by the State does not waive, diminish, or otherwise limit Contractor’s indemnification obligations. The State relies on Contractor to perform a diligent inquiry into the permissible use of all artwork associated with a game, even if employees of the State are involved in the general design or review of such artwork, and it is agreed that Contractor’s indemnification obligations can only be waived or limited by a written amendment to the contract that is specific to the game, the name or artwork at issue, and signed by both the contract administrator and Program Manager. Anything less, such as emails or statements on working papers are wholly ineffective.

List all exception(s):

Bidder must describe how they comply with the above requirement(s):

1.3. Proprietary and Patented Play Styles & Licensed Properties The contractor will make all currently held proprietary and/or patented play styles, copyrights, service marks or trademarks, owned by the contractor, available to the Bureau, at no additional cost.

If any proprietary and/or patented play styles, copyrights, service marks or trademarks are developed or acquired by the contractor during the term of this contract, the items will also be made available to the Bureau at no additional cost.

The Bureau will have the right to acquire proprietary and/or patented play styles from other sources for incorporation into games produced by the contractor.

List all exception(s):

Bidder must describe how they comply with the above requirement(s):

1.4. Randomization

The contractor shall implement “random but equal” industry methods that distribute winning tickets throughout the game. This safeguard assures that winning tickets cannot be picked out by their location in a deal or a banded bundle. It also ensures a reasonable number of winners will be included in any given bundle or sequence of tickets. No less than four (4) points of randomization must be utilized. A contractor shall:

a. Use printing plates or number scrambler programs for printing tickets so that winning tickets are interspersed randomly among non-winning tickets;

b. Randomly print high tier winners and hold tickets on a minimum of four (4) sheets for each deal of tickets;

c. Utilize a minimum of two (2) additional steps that further ensure randomization of the tickets;

d. Ensure each bundle contains a reasonable number of winners in relationship to the winning ticket ratio; or

e. Produce non-winning tickets with a variety of several non-winning patterns of numbers or symbols to maintain the image of randomness in the deal.

List all exception(s):

Bidder must describe how they comply with the above requirement(s):

1.5. Serial Numbering

a. Each deal of tickets shall be assigned a unique 10-character serial number where the first three (3) characters designate the game identifier, unless otherwise determined by the Bureau. The serial number must be identical for all tickets contained in a single deal.

b. Each deal within a shipment shall be numbered consecutively. There shall be no duplication of serial numbers outside a deal of tickets.

c. There shall be no omission of serial numbers in a print run.

d. Each new assignment of serial numbers for a given game must begin where the previous run left off.

List all exception(s):

1.6. Disposition of Ticket Art Files

Game art files must be retained for the length of the contract, including any option years. Game art files must be made available in an electronic format and delivered to the Bureau during a new contract transition period or as requested.

List all exception(s):

1.7. Ticket Production

1. Ticket Form and Stock The basic ticket construction is 2-ply. The front side of the ticket (side opposite the opening tabs) shall be constructed of a coated board stock. The back side of the ticket shall be mill produced on .012” carbon black back opaque paper stock. The stock used in the construction of the ticket shall be such that the overall bulk thickness is .024 inch, except as otherwise approved by the Bureau. Tickets shall maintain their original crisp appearance and remain properly sealed during normal storage, handling, and usage for a minimum of two (2) years after contractor shipment.

List all exception(s):

2. Recycled Content and Recyclability Deliverables. The Bureau prefers deliverable(s) containing higher percentages of recycled materials, without compromising performance or quality. The bidder must indicate an estimate of the percentage of recycled materials, if any, contained in each deliverable.

If no recycled content indicate 0%:

Total estimated percentage of recovered materials:

Estimated percentage of post-consumer materials:

Estimate percentage of post-industrial materials:

List all exception(s):

3. Printing Methods Printing methods are at the discretion of the contractor. All printing must be crisp and legible and meet the approved quality standards specified in the working papers.

List all exception(s):

4. Ticket Size The dimensions shall be in accordance with the measurements provided in the pricing matrix.

For any given game, tickets shall not vary in size; from ticket to ticket, from deal to deal, or from shipment to shipment. In the cutting of finished tickets, winners and non-winners shall be cut together so it is not possible to pick out winners from variations in cutting or from edge patterns that are caused from cutting.

Tickets shall be 2 9/16” X 1-7/8” or 3 7/8” x 1 7/8” or other industry standard dimension approved by the Bureau.

List all exception(s):

5. Ticket Colors The contractor shall ensure color consistency from ticket to ticket and from deal to deal so that it is impossible to identify winning tickets due to a difference in color, appearance, extraneous marks, or any other distinguishing characteristics on the tickets.

a. The face of the ticket (the side opposite the tabs) and the game play area (symbols and captions under the tabs) shall be multicolored using up to a 5-color process.

b. The tab side of the ticket will use up to a 2-color process.

List all exception(s):

6. Play Symbols Play symbols and other numbers or instructions should appear on individual tickets comprising the game. Any computer work necessary to generate the numbers and symbols must also be included in the base ticket price. Play symbols and numbers:

a. The play area must correspond with the colors and symbols on the front of the ticket. The contractor shall use a four or five color process and specify the number of colors involved.

b. Must be uniformly positioned and aligned on the tickets so that no part of a symbol or number remains covered when the tab is removed.

c. Must be protected from being viewed or winning symbols or numbers determined from the outside of the ticket using high Intensity lamp of 500 watts or more. Protection shall be provided by using opaque paper.

d. Must be sufficiently legible to be readily discernible to a person with normal vision under normal lighting conditions.

e. Including all type and artwork reproductions shall be clear and sharp with no broken characters and contain no identifying marks or hairlines and shall be uniform in ink coverage.

List all exception(s):

7. Ticket Perforations and or Die Cut Openings For any given game, die-cut openings for all tickets shall not vary in size, from deal to deal, or from shipment to shipment. The opening tabs shall be centered top to bottom and side to side on each ticket. Perforations and die-cutting shall allow easy opening while not permitting tickets to be accidentally opened during normal handling. The size of the openings shall be consistent with previously produced Charity Game Tickets, unless otherwise requested by the Bureau.

List all exception(s):

8. Ticket Sealing/Gluing Sealing or gluing the two plies of paper stock required for the construction of the ticket shall occur securely on all four edges of the ticket and between the individual game ticket tabs.

a. It must not be possible to separate the top and bottom layers of the tickets without destroying the ticket validity.

b. Glue must be applied in the register and must not cause interference or difficulty in opening the tabs.

List all exception(s):

9. Sample Tickets

a. The contractor shall deliver the Bureau one box of sample tickets upon the production of each new game.

b. The box of sample tickets shall contain a variety of non-winning tickets.

c. Each of the standard size samples shall have “VOID” printed on the ticket. The location of the word VOID shall be defined in the working papers.

d. The cost of sample tickets shall be included in the price per thousand saleable tickets. The contractor will not invoice, and the Bureau will not pay, for sample tickets.

List all exception(s):

10. Game Inserts/Box Inserts Various items may be included in a box of tickets that provide additional tools for the licensee. Inserts may include:

a. Game Instructions;

b. Accountability Forms; and

c. Promotional items, such as flyer, column insert, or table tent.

List all exception(s):

11. Flare Cards Flare cards are to be produced to fit the top of the ticket box.

The flare card will be two-sided and contain:

a. Game name;

b. Prize payout structure;

c. Graphics related to the game; and

d. Other information deemed necessary by the Bureau.

The label(s) containing the serial number and barcode of the corresponding deal(s) shall be indicated on the flare card.

List all exception(s):

12. Seal Cards When a game includes seal cards, the contractor shall produce a minimum of one seal card for each deal of tickets, in accordance with game design.

a. The seal card shall contain a minimum of one window that, when removed, displays a winning number or symbol.

b. Concealed numbers or graphics shall not be viewable or determinable from the outside of the seal card using a high-intensity lamp of up to and including 500 watts.

c. Seal cards are to be sized to fit within the limitations of the size of the box. The basic seal card construction is 2-ply with the overall bulk thickness ranging from .022 to .026 inch.

d. Each seal card shall be printed using up to a 5-color process (to match the ticket game) and have the same print quality required of the tickets.

e. Gluing the two plies of paper stock required for the construction of the seal card shall occur securely on all four edges of the seal card and around each window.

f. For any given game, die-cut windows for all seal cards shall not vary in size, from deal to deal or from shipment to shipment. Perforations on windows shall be constructed in a manner that allows easy opening while not permitting the inadvertent opening of a window as an adjacent window is being opened.

g. The ties on a die cut window must be of a thickness or strength to hinder “peeking” under the windows and if “peeking” has occurred, it must be readily detectable.

h. The seal card will contain the game name, graphics related to the game, and other information deemed necessary by the Bureau. The label(s) containing the serial number and barcode of the corresponding deal(s) shall be adhered to the seal card.

i. The contractor shall implement a process to ensure the complete randomization of the seal card’s winning numbers or graphics from one seal card to the next.

j. For the first shipment of a new seal game, the contractor shall provide the Bureau with up to 100 extra seal cards.

List all exception(s):

13. Packaging, Wrapping and Labeling Packaging must be optimized to permit the lowest freight rate.

a. Bundling and Wrapping The contractor shall bundle or wrap tickets into predetermined increments within a deal, unless deal size does not lend itself to traditional packaging. The Bureau and the contractor shall mutually determine the number of tickets to be included in each bundle which shall be specified in the working papers.

1. The contractor shall bundle the tickets using such materials and in such a manner to securely hold the tickets during normal handling without creasing or otherwise damaging the tickets. The band shall be easily removed without causing damage to the tickets.

2. The Bureau may require that small deals and/or books be separated in other packaging. Packaging options include, but are not limited to, plastic transparent bags or cardboard containers designed to tightly contain a row of tickets. Packaging is determined by the Program Manager and must be detailed in the working papers.

3. A seal card might also be packed in a plastic bag along with corresponding tickets.

b. Boxes and Box Labeling Box size is dependent on game design; therefore, actual box dimensions shall be detailed in the working papers for each game.

1. Boxes are to be constructed of 200 lb. test corrugated material. Boxes must be fully packed using dividers and fillers where necessary.

2. Bundles or books of tickets are to be placed in a box as detailed in the working papers. Any bundles should be packed in random sequences.

3. A flare card shall be added to the outside of each box prior to shrink-wrapping. If requested by the Bureau a flare card may also be enclosed in the box of bundled tickets.

4. Each box shall be sealed with special tape or sticker so that the box is securely closed, and the purchaser can immediately detect if the seal has been tampered with. The warning "Purchaser - Do Not Accept If Seal Is Broken" shall be legibly imprinted on the seal or across the top of each box and readable when the box is sealed.

5. Serial number(s) and barcode(s) shall be adhered to the box of tickets.

a. The serial number for each deal shall be attached to each box and on the flare or seal card.

b. The serial number shall be imprinted on the same ply of the ticket that contains the concealed symbols.

6. The game flare card or seal card(s) shall be added to the top of each box. Games with seal cards do not have flare cards. The seal card will be in place of the flare card in these cases.

7. Each box shall be wrapped with a heat shrink process in a clear poly wrap material of sufficient gauge to prevent bursting while being handled or while in shipment or storage.

c. Cases and Case Labeling All cases are to be fully packed containing the prescribed number of boxes for a particular game as indicated in the working papers.

1. The case shall be constructed of 200 lb. test corrugated material. Case dimensions will be dependent upon the box size used in a particular game.

2. The top and bottom of the case shall be sealed with a 2" wide fabric or fiber-reinforced tape with a tensile strength of at least 30 lb./inch of width and bearing no printed information. No staples or glue shall be used. The tape shall not cover labels or handwritten case numbers.

3. Label or labels shall be securely glued to one end of the case as specified in the working papers. Label information shall include the:

a. Name of the game;

b. Case number;

c. Serial number of each box contained within the case; and

d. Statement, "THIS CASE CONTAINS MATERIALS THAT ARE REGISTERED BY NUMBER AND WHICH WILL BE VOIDED IF STOLEN".

4. Print on labels must be large enough to be easily readable and shall be approved in advance by the Bureau.

List all exception(s):

14. Promotion and Merchandising

a. The contractor shall work with the Bureau when developing promotions and educational tools for the launch of new game types. New game types shall include assistance with graphic design and production of catalogs, banners, table tents, and/or other promotional products.

b. The contractor shall provide analysis of charity game ticket strategies or techniques employed in the industry.

c. The contractor shall include up to $3,000 each year for promotional items. If the Bureau does not utilize the full amount during a fiscal year, the unused amount shall carry over to the next fiscal year. This requirement applies only to the primary Contractor and does not apply to any secondary Contractor.

1. Flyers/Postcards The contractor shall provide up to 4,000 flyers/postcards with each new game.

2. Catalogs The contractor shall provide up to 1,500 annual charity game ticket (club) catalogs and up to 3,000 bingo ticket catalogs for each 12-month period.

3. Point of Sale Items The contractor shall provide necessary banners, posters, table tents, or other educational tools defined for the launch of new game types.

List all exception(s):

15. Marketing Services, Promotions, and Merchandising

a. Contractor shall provide at no additional cost high-resolution images of all charity games and associated artwork in any file format designated by the Bureau for display and promotional uses.

b. Contractor shall prepare and provide market research and analysis at no additional cost for review by the State, including but not limited to:

1. Monthly sales analysis including game indexes and comparison to similar price points;

2. Quarterly review of sales in Michigan as compared to other jurisdictions;

3. Annual review of charity game sales including comparison of price points over a five-year period;

4. Regular updates on strategies and techniques being used in the industry;

5. Other sales data and comparisons as requested by the Bureau.

c. If requested, contractor shall retain a third-party research company or companies to conduct qualitative and quantitative research such as focus groups and online surveys.

1. Retention of third-party researchers is subject to approval by the Bureau;

2. Costs of third-party research must be passed to the Bureau without any additional markup or charge;

3. Contractor shall pass the costs of all third-party consultants to the Bureau without any markup or additional charge.

4. Contractor shall, at the Bureau’s request and at no cost, solicit bids for merchandise or equipment associated with a charity games.

5. Any contract for the purchase of merchandise or equipment must be between contractor and the third-party merchandiser or manufacturer.

6. Contractor shall pass merchandise costs to the State without additional markup or charge.

7. Contractor shall pass costs associated with equipment purchase or lease onto the Bureau or licensees as designated by the Bureau at no additional cost or markup.

8. Contractor and the Bureau may enter into good-faith negotiations for contractor to provide equipment directly to the Bureau or to licensees as designated by the Bureau.

d. Contractor shall make a continuous effort to find ways to improve cost-effectiveness for the Bureau and its licensees, such as ways to replace banding, improve ordering, or maximize print runs.

e. Bidders submitting bids for both Schedules B and C (pull tab and charity game tickets) are encouraged to suggest ways to increase cost effectiveness if Bidder is awarded both contracts.

f. Contractor will provide or subcontract for provision of other marketing and sales support as agreed upon by the parties.

List all exception(s):

Bidder must describe how they comply with the above requirement(s):

16. New Game Capabilities The contractor shall describe its capabilities to design and produce games which are different from standard pull tab ticket game. Examples might include games developed for specific target markets, games with unusual tickets, shapes or play formats, games with out-of-the-ordinary prizes or any other characteristics which set them apart. The information provided should include: the target market(s) for which these games are developed; reasons why they have been or would be successful; suggested retail price; contractors unique manufacturing capabilities and security features; and sales statistics and analysis in jurisdictions in which the product has been marketed.

List all exception(s):

17. Vending

a. All tickets must be compatible with the ticket dispensing systems currently in the Michigan pull tab ticket market (American Games, Technik, and Arrow) and any reasonable vending device used in the future.

b. The contractor may modify the ticket stock, at the Bureau’s discretion, during the term of the contract.

c. Proper vending in varying humidity levels is required. Contractors should take into consideration a seasonal 100% relative humidity level in Michigan.

List all exception(s):

1.8. Warranties

Describe any warranties included in the bid – add additional rows as needed. Explain the process for reporting warranty issues and how the Contractor will handle any repairs or replacements.

The State reserves the right to require additional warranties other than those identified by the Contractor in its response to this RFP.

Bidder must provide detailed information requested below:

Describe any warranties included in the bid (if none, write N/A):

Provide the length of the warranty:

Explain the process for reporting warranty issues:

Explain how any repairs or replacements are made, including timing, etc.:

If the warranty is provided through a third-party or manufacturer, the Contractor must confirm that the manufacturer’s warranty passes through to the State:

Provide the name, address, contact name, phone number and email address of the party responsible for the warranty:

1.9. Recall/Defective Ticket Requirements and Procedures

If it is determined that a deficiency or defect has occurred, the contractor must identify the extent of the potential defect to the program manager or designee and to any supplier that reported the defect.

For a large-scale defect that impacts the integrity of a shipment, the contractor will arrange for stock pick-up and, if requested, will replace the stock within three weeks.

List all exception(s):

Bidder must describe how they comply with the above requirement(s):

1.10. Quality Assurance Program

The contractor must guarantee the integrity of all tickets in accordance with the following and remedy any deficiencies.

a. Ticket Production Standards To maintain public confidence in the integrity and security of the charitable pull tab game, and to provide maximum marketability of the pull tab tickets, the Bureau requires that tickets be produced with the highest quality standards. A deal of tickets that does not comply with the specifications set forth in Section 1.1 Charitable Pull-Tab Specifications will not be considered acceptable by the Bureau. In addition, Charity Game Tickets will not be considered acceptable if:

1. There is an incorrect number of tickets within a deal as defined in the working papers;

2. There is an incorrect number of tickets for each prize amount or “HOLD” tickets as defined by the working papers;

3. The ticket is not trimmed straight or cleanly;

4. The ticket is the incorrect size or vary in thickness;

5. The ticket is warped, bowed or de-bonded;

6. The ticket displays poor lamination quality or adhesive overruns;

7. The ticket shows overprint or the display print design lettering and/or play symbols are off register or are not clear and crisply printed;

8. The ticket color shows variations or fading;

9. The ticket has inconsistent opacity;

10. The ticket has color transfers or smudges;

11. The play symbols peek out or can be seen from outside of ticket;

12. The play symbols are not in the correct position;

13. The play symbols are unclear, clipped, or incomplete;

14. The play symbols smear with slight moisture or normal handling;

15. The ticket has perforations between windows that causes difficulty with playability of tickets;

16. The ticket has perforation variations, positioning registration or other inconsistencies;

17. The captions are not clear or do not correctly describe the play symbol;

18. The bar code contrast and clarity is not in accordance with specified standards;

19. The serial numbers or bar codes are incorrect or missing serial numbers;

20. Serial numbers are omitted from a deal;

21. The tickets are not correctly randomized; and

22. The ticket presents any other degradation of quality not specified above, but which a reasonable person would constitute as unacceptable quality.

List all exception(s):

Bidder must describe how they comply with the above requirement(s):

b. Press Approvals Prior to a full-ticket print run of a new game, a press sample of the front and back of a ticket sheet showing winning and non-winning tickets must be submitted to the Bureau for final approval.

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c. Ticket Testing

1. The Bureau reserves the right to test deals of tickets prior to the release of and payment for the game. The contractor shall ship test or promotional tickets to the Bureau as requested. The cost of the test or promotional tickets shall be included in the price per thousand saleable tickets.

2. The program manager or designee shall notify the contractor of any defect discovered during testing deals of tickets prior to release. If the Bureau finds the product is not in accordance with the provisions of this contract or the working papers the contractor shall make appropriate changes.

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Bidder must describe how they comply with the above requirement(s):

d. Omitted/Defective Tickets Omitted serial numbers are not allowed.

1. The contractor shall assign a quality control representative to resolve reports of defective tickets and any actual losses incurred by licensed organizations.

2. The contractor shall be responsible for coordinating the return and credit for all defective deals of tickets.

3. The quality control representative is responsible for:

a. Receiving defective ticket return forms from licensed suppliers;

b. Investigating the validity of reported defects;

c. Tracking potential problems with related tickets; and

d. Reporting any defective tickets for each month to the Bureau.

4. The monthly report must be accompanied by copies of all related ticket return forms and a credit memo for any amounts due to the Bureau for reported defective tickets.

5. For large-scale defects that impacts the integrity of a shipment, the contractor will arrange for stock pick-up and, if requested, will replace the stock within 3 weeks.

List all exception(s):

Bidder must describe how they comply with the above requirement(s):

1.11. Incentives

Explain any special incentives or services including, but not limited to, return policies, trade-in programs, quantity discounts, etc.

Bidder must provide detailed information as requested in the above requirement(s). If none, enter N/A.

2. Service Requirements

2.1. Time Frames

Contractor will adhere to the following game delivery schedule:

a. Within two (2) weeks of receiving notification from the Bureau that the prize structure, play style, and artwork for a particular game have been approved, the contractor will provide the draft working papers to the Program Manager for review and comment.

b. Within one (1) week after receipt of comments from the Program Manager, the contractor will provide the Program Manager the final working papers for signature (execution). The contractor will include the final ticket art with the final working papers.

c. The contractor shall produce and deliver the quantity of tickets specified in the approved purchase order within 45 calendar days of receipt of executed working papers and approved delivery order.

List all exception(s):

2.2. Delivery

a. Delivery will be expected by the date defined in the executed working papers.

b. Charity Game Tickets directly shipped to Suppliers.

c. Charity Game Tickets shall be delivered to each supplier’s address by the contractor.

d. The contractor is responsible for shipping tickets to the suppliers, which shall be priced separately from the cost of the tickets in Schedule B - Pricing.

List all exception(s):

2.3. Training

The Bureau may request the assistance of the contractor in developing state-led training seminar material in Michigan to provide methods for increasing ticket sales. The Bureau may use its discretion when determining if contractors will be asked to speaking or present at a training seminar.

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Bidder must describe how they comply with the above requirement(s):

2.4. Reporting

The contractor must submit upon request from the program manager or designee, reports of the following information:

a. Monthly defective tickets including a one-page summary report as provided by the Bureau plus any defective ticket return forms provided by licensed suppliers.

b. Monthly inventory of deals including beginning inventory, shipped orders, pending deals on orders, and ending inventory.

c. Monthly inventory of cases including beginning inventory, shipped orders, pending cases on orders, and ending inventory.

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2.5. Meetings

The contractor must attend a kick-off meeting within 30 calendar days of award of contract and any other meetings the Bureau deems appropriate.

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3. Staffing

3.1. Contractor Representative

The contractor must appoint one individual (e.g., contractor representative), specifically assigned to State of Michigan accounts, that will respond to Bureau inquiries regarding contract activities, questions related to ordering and delivery, etc.

The contractor representative will also be directly responsible for coordinating and communicating the day-to-day operations of the contract. The contract representative must respond to Bureau inquires within 24 hours.

The contractor representative or designee must be available for communications during the contractor’s standard business hours.

The contractor must notify the Bureau at least 30 calendar days before removing or assigning a new contractor representative.

The contractor may not remove or assign a contractor representative without the prior consent of the Bureau. Prior consent is not required for reassignment for reasons beyond the contractor’s control, including illness, disability, death, leave of absence, personal emergency circumstances, resignation, or termination for cause. The Bureau may request a résumé and conduct an interview before approving a change. The Bureau may require a 30-calendar day training period for replacement personnel.

The contractor must identify who will be assigned as contractor representative(s), indicate where they will be physically located, describe the functions they will perform, and provide a current chronological résumé. Please attach resume here or indicate if this is provided in an attachment and if so, indicate the location:

List all exception(s):

1) Contractor Representative

2) Physical Location of Contractor Representative:

3) Functions Contractor Representative will perform:

4) Current Chronological Résumés (attach):

3.2. Key Personnel

In addition to the contract representative, the contractor must identify who will be directly responsible for the day-to-day operations of the contract (key personnel). Key personnel must be specifically assigned to State of Michigan accounts, be knowledgeable on the contractual requirements, and respond to Bureau inquires within 24 hours.

Contractor’s key personnel or designee must be available for communications during the contractor’s standard business hours.

The contractor may not remove or assign key personnel without the prior consent of the Bureau. Prior consent is not required for reassignment for reasons beyond the contractor’s control, including illness, disability, death, leave of absence, personal emergency circumstances, resignation, or termination for cause. The Bureau may request a résumé and conduct an interview before approving a change. The Bureau may require a 30-calendar day training period for replacement personnel.

The contractor must identify the key personnel, indicate where they will be physically located, describe the functions they will perform, and provide current chronological résumés. Please attach resume here or indicate if this is provided in an attachment and if so, indicate the location.

List all exception(s):

5) Key Personnel

6) Physical Location of Key Personnel:

7) Functions each Key Personnel will perform:

8) Current Chronological Résumés (attach):

3.3. Organizational Chart

Contractor must provide an overall organizational chart that details staff members and subcontractors by name and title. Contractor must indicate if this is provided in an attachment and if so, indicate the location.

The Bidder must provide an overall organizational chart that details staff members, by name and title, and subcontractors - either in this response box or identified here as an attachment to this RFP labelled as Organizational Chart – Bidder Name.

3.4. Customer Service/Toll-Free Number

The contractor must provide the Bureau with any toll-free or customer service phone numbers available during standard business hours. The contractor representative must be available for calls during the contractor’s standard business hours.

List all exception(s):

The Bidder must specify its toll-free number for the State to make contact with the Contractor Representative.

Identify customer service availability for this proposal by hours and days of the week.

3.5. Disclosure of Subcontractors

If the Contractor intends to utilize subcontractors, the Contractor must disclose the following:

· The legal business name; address; telephone number; a description of subcontractor’s organization and the services it will provide; and information concerning subcontractor’s ability to provide the Contract Activities.

· The relationship of the subcontractor to the Contractor. Of the total bid, the price of the subcontractor’s work. Whether the Contractor has a previous working experience with the subcontractor. If yes, provide the details of that previous relationship.

· A complete description of the Contract Activities that will be performed or provided by the subcontractor.

· Geographically Disadvantaged Business Enterprise Sub-Contractors: If contractors plan to utilize subcontractors to perform more than 20% of the deliverables under this contract, at least 20% of that subcontracted work must be awarded to Michigan-based Geographically Disadvantaged Business Enterprises (GDBE). Contractor will submit a plan detailing all subcontractors to be used, including the percentage of the work to be done by each. Contractor must inform the State to the name and address of the GDBE, the percentage of the work they will complete, the total amount estimated to be paid to the GDBE, and provide evidence for their qualifications as a GDBE. If contractor cannot find GDBE subcontractors to meet this requirement they must provide reasoning and justification to receive an exemption from this requirement from the State. (Existing business relationships will not be an approved reason for this.)

GDBE definition: "Geographically-Disadvantaged Business Enterprise" means a person or entity that satisfies one or more of the following: (i) Is certified as a HUBZone Small Business Concern by the United States Small Business Administration. (ii) Has a principal place of business located within a Qualified Opportunity Zone within Michigan. (iii) More than half of its employees have a principal residence located within a Qualified Opportunity Zone within Michigan, or both.

Additional information on GDBEs can be found here:

Michigan Qualified Opportunity Zone (QOZ) Map Michigan Supplier Community (MiSC) Page Bidder must provide detailed information as requested in the above requirement(s).

The legal business name, address, telephone number of the subcontractor(s).

A description of subcontractor’s organization and the services it will provide and information concerning subcontractor’s ability to provide the Contract Activities.

The relationship of the subcontractor to the Bidder.

If yes, provide the details of that previous relationship.

A complete description of the Contract Activities that will be performed or provided by the subcontractor.

Of the total bid, the price of the subcontractor’s work.

Bidder must provide information based on the work performed by all subcontractors

Total percentage of work that will be performed by subcontractors:

Total percentage of subcontracted work that will be performed by GDBE subcontractors:

4. Security The contractor will be subject to the following security procedures:

a. Plant Storage Contractor must preclude persons who are not authorized from accessing facilities, equipment and information utilized in the production of tickets. The contractor must provide secure, exclusive storage space, in the printing plant or other facility for the storage of finished tickets. Space must also be provided for the storage of paper stock and other supplies needed to produce the games. The contractor is responsible for monitoring the availability of all materials to ensure that sufficient supplies are on hand to meet the delivery schedule in the working papers. Contractor shall notify the Bureau of a security breach within 24 hours of the event.

The Contractor must explain any additional security measures in place to ensure the security of State facilities.

The Contractor’s staff may be required to make deliveries to or enter State facilities. The State may require the Contractor’s personnel to wear State issued identification badges.

The Contractor must: (a) explain how it intends to ensure the security of State facilities, (b) whether it uses uniforms and ID badges, etc., (c) identify the company that will perform background checks, and (d) the scope of the background checks.

List all exception(s):

Bidder must describe how they comply with the above requirement(s):

5. Pricing

5.1.…