05TO-S953 Closed-Loop Payment Processing System~1.docx

State of Nevada

Steve Sisolak

Department of Administration

Governor

Purchasing Division

Peter Long

Acting Director

515 E. Musser Street, Suite 300 Carson City, NV 89701

Kevin D. Doty

Administrator

State of Nevada

Purchasing Division

Request for Proposal: 05TO-S953

For

CLOSED-LOOP PAYMENT PROCESSING SYSTEM

Release Date: November 25, 2019

Deadline for Submission and Opening Date and Time: January 3, 2020 @ 2:00 PM

Refer to Section 7, RFP Timeline for the complete RFP schedule

For additional information, please contact:

Teri Becker, Purchasing Officer

State of Nevada, Purchasing Division

515 E. Musser Street, Suite 300

Carson City, NV 89701

Phone: 775-684-0178

Email address: tbecker@admin.nv.gov

Refer to Section 8 for instructions on submitting proposals

VENDOR INFORMATION SHEET FOR RFP 05TO-S953

Vendor Shall:

A) Provide all requested information in the space provided next to each numbered question. The information provided in Sections V1 through V3 shall be used for development of the contract;

B) Type or print responses; and

C) Include this Vendor Information Sheet in Section III of the Technical Proposal.

Street Address:

City, State, Zip Code:

Telephone:

Fax:

Toll Free:

including address if different than above

Name:

Title:

Address:

Email Address:

Telephone Number:

Fax:

Name:

Title:

TABLE OF CONTENTS

Prospective vendors are advised to review Nevada’s ethical standards requirements, including but not limited to NRS 281A, NRS 333.800, and NAC 333.155.

All applicable Nevada Revised Statutes (NRS) and Nevada Administrative Code (NAC) documentation can be found at: www.leg.state.nv.us/law1.cfm.

PROJECT OVERVIEW

In accordance with Assembly Bill 466 (AB466) which was passed in the 2019 Legislature and signed by Governor Sisolak on June 5, 2019, the State Treasurer must establish a pilot program for the creation of one or more closed-loop payment processing systems. Therefore, the Office of the State Treasurer is seeking proposals from qualified vendors to provide a closed-loop payment processing system, statewide cash deposit machine services, and optional statewide cash pickup services. The qualified vendor(s) must be able to meet all local, state, and federal, legal and regulatory requirements. Prospective vendors should be aware that additional regulatory requirements governing the closed-loop payment processing system may be promulgated during the competitive selection process and imposed upon the selected vendor(s).

The State may award one or more contracts in conjunction with this RFP, as determined in the best interests of the State. Vendor(s) shall provide a solution that facilitates transactions between businesses. Vendor(s) may also submit proposals for systems that facilitate business to customer transactions. The State is also requesting vendor to directly or indirectly manage cash deposit machine and cash pickup functions connected to the system and its operation.

Please note, the project represents a no-value contract. Accordingly, costs related to the project shall be recovered by the chosen Vendor(s) through fees charged to system users. Vendor(s) should also be aware that any administrative costs incurred by the State Treasurer’s Office for the project will be passed on to the Vendor(s) but shall not exceed $20,000.

The State Treasurer’s Office shall administer contract(s) resulting from this RFP. The resulting contract(s) shall be for an initial contract term of three years, anticipated to begin April 1, 2020, subject to both the Legislative Interim Finance Committee approval, anticipated to be February 14, 2020, and Board of Examiners approval, anticipated to be March 10, 2020. Pursuant to State procurement statutes and regulations, the State Treasurer’s Office may be required to conduct another request for proposal for this service if legislative action permanently establishes the close-loop payment processing system. Contract(s) may be subject to review if applicable federal legislation is adopted.

GOALS AND OBJECTIVES

Vendor(s) shall establish a Closed-Loop Payment Processing System (CLPPS) that enables marijuana establishments, medical marijuana establishments, consumers and holders of registry identification cards or letters of approval, and others to engage in financial transactions in a safe and efficient manner. Vendor(s) shall also directly or indirectly establish a statewide network of cash deposit machines to facilitate the operation of the CLPPS. Vendor(s) must also provide cash pickup services for the cash deposit machines.

Prospective Vendor(s) are encouraged to be innovative in responding to the needs associated with the creation the CLPPS. The objectives of the CLPPS are as follows:

Reduce the risk to the safety and welfare of the public posed by the holding, distribution, and transportation of large sums of cash;

Provide marijuana establishments and medical marijuana establishments with a safe, secure, and convenient method of paying state and local taxes;

Provide the State and local governments with a safe, secure, and convenient method of collecting taxes imposed on marijuana establishments and medical marijuana establishments;

Provide transparency into financial transactions related to marijuana establishments and medical marijuana establishments;

Prevent revenue from the sale of marijuana from going to criminal enterprises, gangs, and drug cartels;

Prevent marijuana from being diverted across state lines;

Prevent the distribution of marijuana to minors; and

Prevent the lawful financial transactions relating to marijuana from being used as a cover or pretext for the trafficking of controlled substances or other unlawful activities.

SCOPE OF WORK

Vendors submitting a proposal will be expected to meet the necessary requirements and provide a system with the functionality detailed in the sub-sections below or a substantially similar system. If a vendor is unable to provide a requested functionality but has an alternative solution, please provide this detail in the applicable sub-section.

GENERAL

Vendor(s) shall create a closed-loop payment processing system capable of facilitating transactions between legal marijuana businesses and other related entities such as utility companies. Vendor(s) must also directly or indirectly manage cash deposit machines and cash pickup functions connected to the system and its operation.

All Vendor(s) systems, functions, products, devices, physical items, and any other components, must be created, established, offered, maintained, operated, and otherwise used in compliance with all federal, state, and local laws and regulations. Failure to do so will result in automatic termination of the contract for cause by the State.

Vendor(s), and/or their Principals must have at least two years of experience in the payment processing, or similar, industry.

Vendor(s) should have experience in creating and managing similar systems in a highly regulated industry.

FUNCTIONALITY - TOKENS

Tokens. The CLPPS must have the ability to create uniquely identifiable, fixed value, electronic tokens.

Tokens must be created upon receipt of an equivalent amount in United States Dollars (USD) in increments of 1/100th (e.g., $0.01 = 1 token | $1.00 = 100 tokens).

Tokens must be created upon receipt of an equivalent amount in USD either individually or combined with other tokens in the system.

The token creation process must take no longer than 5 minutes.

The CLPPS must have the ability to validate, process, and redeem electronic tokens by users within 3 business days.

Tokens must be able to be redeemed upon request of a user in an amount equivalent in USD in increments of 1/100th (e.g., $0.01 = 1 token | $1.00 = 100 tokens).

Tokens must be able to be redeemed by users in an equivalent amount in USD either individually or combined with other tokens in the system.

The CLPPS must have the ability to retire, or remove, the redemption value from all tokens that were successfully exchanged for USD.

The CLPPS must have the ability to collect, maintain, and store all information related to retired tokens.

The CLPPS must not create tokens in advance of a user depositing an equivalent amount of USD into a cash deposit machine.

The CLPPS must not require secondary approval to create tokens following a user depositing an equivalent amount of USD into a cash deposit machine, unless as is warranted on a case-by-case basis for security, fraud, or other related purpose.

The CLPPS must have the ability to collect, maintain, and store all information related to all tokens, including those that are retired, including at a minimum:

Date, time, and location of token creation;

Unique identifier of the token;

The serial number of the USD that was used to create the token;

The cash deposit machine that was used to create the token;

The user account that created the token;

The user account that redeemed the token (if yet applicable); and

Date, time, and location of token retirement or redemption (if yet applicable).

USER ACCOUNTS

The CLPPS must have the ability to create, maintain, suspend, and close user accounts and all associated information.

User accounts must only be able to transmit or otherwise transact with tokens while a user is located in Nevada.

User accounts must have the ability to collect, maintain, and store all information related to a user and the transactions received and initiated by a user, including a user’s deposit of USD into a cash deposit machine in exchange for the creation of tokens. Such information must include at a minimum:

Any transactions that have been initiated by the user;

Any transactions that have been received by the user;

Any transactions that have been initiated by a user but failed, reversed, or did not complete, and the reasons for failure, reversal, or non-completion;

The exact date, time, and location of a user while he/she accessed his/her account;

An inventory of all tokens held by an individual;

An inventory of all tokens retired by an individual;

An inventory of all tokens and their associated transactions initiated or received by a user;

An inventory of any/all unique transaction codes provided to a user acknowledging all transactions initiated from a user; and

Any additional similar functionality at the request of the State.

User accounts must only be able to be created by one, verified individual, acting in a personal capacity, or on behalf of the user’s employer.

User accounts for an individual acting in a personal capacity must be y verified by at least the following information:

The last four digits of the Social Security Number or Tax Identification Number for the individual;

The individual’s full legal name;

The physical address where the individual resides;

The individual’s date of birth showing the individual is 21 years of age or older; and

Any other information the State Treasurer deems necessary to verify the individual’s identity.

User accounts for an individual acting on behalf of his or her employer must be verified by at least the following information:

The legal name of the employer;

The physical address of the employer’s Nevada operation;

The employer’s Nevada State business license number;

The employer’s FEIN;

The employee’s full legal name;

The individual’s date of birth showing the individual is 21 years of age or older;

The employee’s agent card number (if applicable); and

Any other information the State Treasurer deems necessary to verify an individual’s identity and that the individual is authorized to create an account on behalf of his/her employer.

The CLPPS must protect any confidential, sensitive, or personally identifiable information of users.

Vendor(s) shall adopt and adhere to a written, comprehensive Privacy Policy that explains to users the way in which their data will be collected, used, and stored, and what other non-governmental entities the data may be shared with (if applicable).

Vendors shall adopt and adhere to written, comprehensive Terms of Use governing transactions by and between users and the Vendor. The Terms of Use must be available for review at all times by users through a conspicuously displayed internet link. Sample Terms of Use must include the following, at a minimum:

A clear and concise explanation of all fees or charges that may be charged to a user;

The applicability of any federal, state, or local laws and regulations governing users, user actions, and/or user transactions;

Any limits on the size of transactions;

Any limits on the frequency of transactions;

A prominent disclosure that tokens can only be accessed, used, and/or redeemed when a user is located in Nevada;

A prominent notice that the Vendor is covered by insurance (including the type(s) and maximum amount);

Any limits or prohibitions on a user reversing a transaction and any exceptions to such limits or prohibitions;

A description outlining a user’s liability for an unauthorized, mistaken, or accidental transaction, if applicable;

The method by which a user can update his/her contact information with the Vendor;

The method by which a user can suspend and/or permanently close his/her account; and

The process by which a user may dispute any transaction, communication, or any other action originating from the user’s account, or between the user and another user, and/or the user and the Vendor.

TRANSACTIONS

The CLPPS must have the ability to transmit tokens between user accounts.

The CLPPS must have the ability to collect, maintain, and store all information related to a transaction, including a user’s deposit of USD into a cash deposit machine in exchange for the creation of tokens. Such information must include:

The exact date, time, and location a transaction was initiated;

The exact date and time a transaction completed or failed;

The user account that initiated the transaction;

The user account that received the transaction;

The tokens that made up the transaction, inclusive of any fees; and

The unique transaction code provided to a user acknowledging the initiated transaction.

The CLPPS must have the ability to void or reverse unauthorized or incorrect transactions upon initiation of a void or reversal by the State Treasurer or his designee or the Vendor, or upon initiation by a user and approval by the Vendor or the State Treasurer or his designee.

NETWORK

Selected Vendor(s) must agree and adhere to the State Treasurer’s IT Security Agreement.

The CLPPS must be able to be accessed via a secure internet website. Vendor(s) may also create a secure mobile application to access the CLPPS.

Selected Vendor(s) will be responsible for site registration and security certificates.

The CLPPS must be able to connect to and interface with the State Treasurer’s and the Nevada Department of Taxation’s payment processing systems.

The CLPPS must allow the State Treasurer or his designee to view and access real-time data.

CLPPS servers, hardware, and any other physical or otherwise related components and any servers, hardware, and any other physical or otherwise related components controlled by a subcontractor must be physically located in Nevada.

Required and ongoing security and maintenance of the CLPPS shall be the responsibility of the Vendor(s).

The CLPPS must prevent unauthorized access.

The CLPPS must protect internet and mobile transactions from unauthorized use, connection, and modification.

CLPPS must have a redundant backup system for data.

Vendor(s) must create and adhere to a disaster recovery plan to protect the CLPPS and data in the event of a disaster.

The CLPPS must have the ability to identify a transmission error and communicate such an error to the State Treasurer or his designee.

The CLPPS must have the capacity to handle hundreds of concurrent users. The application system must support high bandwidth, low latency, high throughput, and independent progress.

REPORTING

The CLPPS must be capable of utilizing stored information for reporting purposes.

The CLPPS must generate a daily report for transmission to the State Treasurer or his designee, which shall include:

A summary of the total number of tokens in the CLPPS (including those that are retired)

The total number of user accounts in the CLPPS;

The total number of tokens that were created and retired during the previous day;

The total number of transactions that were initiated during the previous day;

The total number of transactions that were completed during the previous day; and

The total number of transactions that failed during the previous day and the reasons for such.

CUSTOMER SERVICE

Vendor(s) must establish and maintain a robust customer service process, which must include implementation, testing, and on-going support for the CLPPS.

REMOTE CASH DEPOSIT MACHINE SERVICES

Vendor(s) must be able to provide and maintain, either directly or indirectly, a network of physical, cash deposit machines throughout Nevada.

Cash deposit machines must be able to connect to the CLPPS and individual user accounts.

Cash deposit machines must be able to receive and secure USD and create an equivalent number of tokens creditable to a user’s account within the CLPPS.

Cash deposit machines must be able to log the serial number of any deposited USD.

Cash deposit machines must be able to scan and flag any deposited USD for fraudulent or fake bills.

ARMORED CAR SERVICES

Vendor(s) must directly or indirectly provide for armored car services to secure and transport money deposited into cash deposit machines.

QUESTIONS

Vendors shall provide answers to the following questions as they relate to requirements set forth in the Scope of Work above.

General (reference Section 2.1 above)

Nevada seeks to create a first of its kind program in the nation by providing a safe, secure, transparent, and efficient closed-loop payment processing product for legal marijuana businesses. In 5 pages or less, please describe why you think your entity and product best fit the needs and vision of Nevada’s program.

Provide and explain in detail your company’s Compliance Standards and Procedures to ensure all functions and operations of your product are legal and regulatory compliant.

Describe your entity’s background in creating, maintaining, servicing, and/or providing the following:

Closed-loop payment processing, or similar, systems;

Cash deposit machines; and/or

Armored car pickups.

Does your entity currently provide similar services to other government agencies? If yes, please describe and state the number of years of experience.

Does your entity currently provide similar services for similar industries and/or transactions related to the sale of marijuana? If yes, please describe and state the number of years of experience.

What percentage of your entity’s capacity is used by your largest customer? What would likely be the ranking of the State under this contract given your current total demand?

Functionality (reference Section 2.2 above)

How would your entity ensure a user will only transmit or otherwise transact with tokens while the user is physically in the State?

Please identify a list of dates and a general description of any data breaches your entity or subcontractors have been subject to, and how each was resolved.

Please identify any current security breaches for your entity or any subcontractors that are ongoing or not yet resolved.

Please identify the process by which users would be notified in the event of a data breach.

Please identify the process your entity would undertake to resolve a data breach.

Please provide a sample Privacy Policy that your entity would adopt and adhere to.

Please provide a sample Terms of Use that your entity would adopt and adhere to.

Network (reference Section 2.5 above)

Describe the security measures your entity uses to protect transactions.

Describe your entity’s backup capabilities in case of a site failure. How often are they tested? When was the last time your entity needed to use it?

Please provide a copy of your entity’s disaster recovery plan, within, please include the estimated time to recover the CLPPS in the event of a disaster.

Provide your entity’s system availability statistics for the current and prior two (2) years, or, if your entity has not been in business for at least two years, the availability statistics for all years.

Please describe who at your entity would be responsible for identifying a transmission error and communicating such an error to the State Treasurer or his designee. Please also include how it would be discovered, and how it would be communicated.

Please illustrate the network connectivity requirements to support the project.

Describe the operating system platform pertinent to the recommended solution.

Does your entity have the capacity to handle an exponential increase in transactional volumes? What percentage of increase would your entity have the capacity to handle?

Describe the high-speed interconnect in detail, including mechanisms for adaptation to heavy loads which will allow the CLPPS the capacity to handle hundreds of concurrent users and support high bandwidth, low latency, high throughput, and independent progress.

Reporting (reference Section 2.6 above)

Describe the reports available to the State Treasurer. Provide examples of standard reports and ad hoc reports that are available. Describe the method of access and delivery, as well as format and field options, frequency and availability and timeframes.

Customer Service (reference Section 2.7 above)

Describe your entity’s implementation process including the anticipated on-boarding process with the State Treasurer’s Office, including test environments, timeframes, and milestones.

Describe your entity’s customer service function and organizational structure including hours of operation, established turnaround times, record for meeting them, regular client meetings and technical support. What is the chain of command for problem resolution? What key performance measures would your entity track?

Does your entity have a dedicated engagement manager deployed to the State relationship? What percentage of his/her time will be dedicated to the State?

Does your entity have 24/7 technical support coverage?

Describe your entity’s customer service function for users. Is it performed in-house or is it outsourced? What days/hours will users be able to reach a customer service representative via phone and/or email? Are customer service representatives limited in what user issues they can resolve? If so, explain further.

Remote Cash Deposit Machine Services (reference Section 2.8 above)

Do you anticipate providing and maintaining the cash deposit machines directly, or do you anticipate having to hire a third party to provide these services? How would your entity or the third party provide support to the cash deposit machines and customers, including support during installation, setup, and testing? Describe the types of orientation and training programs that will be made available for installing and maintaining the cash deposit machines, including the number, length, and type of both on-site and online trainings.

When a user makes a deposit, what documentation is generated indicating the amount of the deposit?

Please provide the costs that your entity anticipates it will need to pass on to users for installation, setup, testing, and ongoing support and maintenance for cash deposit machines, if any. Provide in Attachment G, Cost Schedule.

If the cash deposit machine malfunctions or has technical issues that require onsite service, what is the process and turn-around time to restore service for users?

What is the highest bill volume cash deposit machine your entity, or a contracted third party, could provide?

What mechanisms are in place to ensure the remote cash deposit machines scan and flag fraudulent transactions and/or fraudulent bills?

What would be the requirements for customers to house a cash deposit machine? Would the building need to have an alarm system, 24/7 video surveillance, special bolting to a sub-floor, etc.?

Armored Car Services (reference Section 2.9 above)

What additional costs would be passed on to users by your entity to provide armored car services? Please provide costs associated with providing the service in-house vs. hiring a third party to do so. Provide in Attachment G, Cost Schedule all costs associated with armored car services.

COMPANY BACKGROUND AND REFERENCES

VENDOR INFORMATION

Vendors shall provide a company profile in the table format below.

Company name:

Ownership (sole proprietor, partnership, etc.):

State of incorporation:

Date of incorporation:

# of years in business:

List of top officers:

Location of company headquarters, to include City and State:

Location(s) of the office that shall provide the services described in this RFP:

Number of employees locally with the expertise to support the requirements identified in this RFP:

Number of employees nationally with the expertise to support the requirements in this RFP:

Location(s) from which employees shall be assigned for this project:

Pursuant to NRS 333.3354, the State of Nevada awards a five percent (5%) preference to a vendor certifying that its principal place of business is in Nevada. The term ‘principal place of business’ has the meaning outlined by the United States Supreme Court in Hertz Corp v. Friend, 559 U.S. 77 (2010), typically meaning a company’s corporate headquarters. This preference cannot be combined with any other preference, granted for the award of a contract using federal funds, or granted for the award of a contract procured on a multi-state basis. To claim this preference a business must submit a letter with its proposal showing that it qualifies for the preference.

Please be advised, pursuant to NRS 80.010, a corporation organized pursuant to the laws of another state shall register with the State of Nevada, Secretary of State’s Office as a foreign corporation before a contract can be executed between the State of Nevada and the awarded vendor, unless specifically exempted by NRS 80.015.

The selected vendor, prior to doing business in the State of Nevada, shall be appropriately licensed by the State of Nevada, Secretary of State’s Office pursuant to NRS 76. Information regarding the Nevada Business License can be located at http://nvsos.gov.

Nevada Business License Number:

Legal Entity Name:

Is “Legal Entity Name” the same name as vendor is doing business as?

Yes

No

If “No”, provide explanation.

Has the vendor ever been engaged under contract by any State of Nevada agency?

Yes

No

If “Yes”, complete the following table for each State agency for whom the work was performed. Table can be duplicated for each contract being identified.

Name of State agency:

State agency contact name:

Dates when services were performed:

Type of duties performed:

Total dollar value of the contract:

Are you now or have you been within the last two (2) years an employee of the State of Nevada, or any of its agencies, departments, or divisions?

Yes

No

If “Yes”, please explain when the employee is planning to render services, while on annual leave, compensatory time, or on their own time?

If you employ (a) any person who is a current employee of an agency of the State of Nevada, or (b) any person who has been an employee of an agency of the State of Nevada within the past two (2) years, and if such person shall be performing or producing the services which you shall be contracted to provide under this contract, you shall disclose the identity of each such person in your response to this RFP, and specify the services that each person shall be expected to perform.

Disclosure of any significant prior or ongoing contract failures, contract breaches, civil or criminal litigation in which the vendor has been alleged to be liable or held liable in a matter involving a contract with the State of Nevada or any other governmental entity. Any pending claim or litigation occurring within the past six (6) years which may adversely affect the vendor’s ability to perform or fulfill its obligations if a contract is awarded as a result of this RFP shall also be disclosed.

Does any of the above apply to your company?

Yes

No

If “Yes”, please provide the following information. Table can be duplicated for each issue being identified.

Date of alleged contract failure or breach:

Parties involved:

Description of the contract failure, contract breach, or litigation, including the products or services involved:

Amount in controversy:

Resolution or current status of the dispute:

Status of the litigation:

Vendors shall review and provide if awarded a contract the insurance requirements as specified in Attachment D, Insurance Schedule for RFP 05TO-S953.

Company background/history and why vendor is qualified to provide the services described in this RFP. Limit response to no more than five (5) pages.

Provide a brief description of the length of time vendor has been providing services described in this RFP to the public and/or private sector.

Financial information and documentation to be included in accordance with Section 8.5, Part III – Confidential Financial Information.

Federal Tax Identification Number

The last two (2) years and current year interim:

Profit and Loss Statement Balance Statement

SUBCONTRACTOR INFORMATION

Subcontractors are defined as a third party, not directly employed by the contractor, who shall provide services identified in this RFP. This does not include third parties who provide support or incidental services to the contractor.

Does this proposal include the use of subcontractors?

Yes

No

If “Yes”, vendor shall:

Identify specific subcontractors and the specific requirements of this RFP for which each proposed subcontractor shall perform services.

If any tasks are to be completed by subcontractor(s), vendors shall:

Describe how the work of any subcontractor(s) shall be supervised, channels of communication shall be maintained and compliance with contract terms assured; and

Describe your previous experience with subcontractor(s).

Provide the same information for any proposed subcontractors as requested in Section 3.1, Vendor Information.

Vendor shall not allow any subcontractor to commence work until all insurance required of the subcontractor is provided to the vendor.

Vendor shall notify the using agency of the intended use of any subcontractors not identified within their original proposal and provide the information originally requested in the RFP in Section 3.2, Subcontractor Information. The vendor shall receive agency approval prior to subcontractor commencing work.

BUSINESS REFERENCES

Vendors shall provide a minimum of three (3) business references from similar projects performed for private and/or public sector clients within the last three (3) years.

Vendors shall submit Attachment E, Reference Questionnaire to their business references.

It is the vendor’s responsibility to ensure that completed forms are received by the Purchasing Division on or before the deadline as specified in Section 7, RFP Timeline for inclusion in the evaluation process. Reference Questionnaires not received, or not complete, may adversely affect the vendor’s score in the evaluation process.

The State reserves the right to contact and verify any and all references listed regarding the quality and degree of satisfaction for such performance.

VENDOR STAFF RESUMES

A resume shall be completed for each proposed key personnel responsible for performance under any contract resulting from this RFP per Attachment F, Proposed Staff Resume.

COST

Vendor must provide detailed fixed prices for all costs associated with the responsibilities and related services. Clearly specify the nature of all expenses anticipated (refer to Attachment G, Cost Schedule).

All fields in Attachment G, Cost Schedule must be completed. Use N/C for no charge. Any field left blank will be assumed to be no charge to the State.

All costs must be submitted on the schedule provided in Attachment G, Cost Schedule. No other cost formats will be accepted and modifications to the Cost schedule will not be permitted. Costs not submitted on the State provided Cost Schedule will render a vendor’s entire proposal nonresponsive.

Please note the purpose of the cost schedule is to ensure the vendor understands the current costs associated with the cannabis industry and has a model which will help to reduce these costs. Fees must be reasonable and commercially viable. The costs of the system to all participants is an important component in its overall success.

FINANCIAL

PAYMENT

Neither the State nor the Treasurer’s Office will incur any costs as the result of the execution of the contract.

WRITTEN QUESTIONS AND ANSWERS

The Purchasing Division shall accept questions and/or comments in writing regarding this RFP as noted below:

FIRST SET OF QUESTIONS AND ANSWERS

All questions regarding this RFP should be submitted using the Bid Q&A feature in NevadaEPro.

To access the Bid Q&A:

Log into your Seller account on NevadaEPro.

Click the Bids Tab in the header.

Click View under Bid Q&A on the appropriate Bid Solicitation under the Open Bids section.

The deadline for submitting questions is as specified in Section 7, RFP Timeline.

All questions and/or comments shall be addressed using the Bid Q&A in NevadaEPro. If questions and answers require a material change to the Bid Solicitation, an Amendment will be posted in NevadaEPro and you will receive email notification.

SECOND SET OF QUESTIONS AND ANSWERS

Additional questions may be submitted by the date and time specified in Section 7, RFP Timeline and according to the process identified in Section 6.1.1 through Section 6.1.3.

RFP TIMELINE

The following represents the proposed timeline for this project. All times stated are Pacific Time (PT). These dates represent a tentative schedule of events. The State reserves the right to modify these dates at any time. The State also reserves the right to forego vendor presentations and select vendor(s) based on the written proposals submitted.

PROPOSAL SUBMISSION REQUIREMENTS, FORMAT AND CONTENT

GENERAL SUBMISSION REQUIREMENTS

Vendors shall submit their proposals by using Create Quote through the State electronic procurement website, https://NevadaEPro.com, in accordance with the instructions below.

Refer to Instructions for Vendors Responding to a Bid in the Important Links section on the front page of NevadaEPro for instructions on how to submit a Quote using NevadaEPro.

The Quote/Proposal shall contain a maximum of four (4) attachments which may include:

Technical Proposal Confidential Technical (if applicable) Cost Proposal (if applicable) Confidential Financial (if applicable)

Note: Under the Items Tab the NevadaEPro system defaults to ‘No Bid’. Proposing vendors must uncheck the ‘No Bid’ box and that will allow the system to default to ‘See Quote Attachments’.

Proposals shall have a technical response, which may be composed of two (2) parts in the event a vendor determines that a portion of their technical response qualifies as “confidential” per NRS 333.020 (5) (b).

If complete responses cannot be provided without referencing confidential information, such confidential information shall be provided in accordance with Section 8.3, Part IB – Confidential Technical Proposal and Section 8.5, Part III Confidential Financial Information.

Specific references made to the section, page, and paragraph where the confidential information can be located shall be identified on Attachment A, Confidentiality and Certification of Indemnification and comply with the requirements stated in Section 8.6, Confidentiality of Proposals.

Proposals that do not comply with the requirements may be deemed non-responsive and rejected at the State’s discretion.

Although it is a public opening, only the names of the vendors submitting proposals shall be announced per NRS 333.335(6). Technical and cost details about proposals submitted shall not be disclosed.

Assistance for persons who are disabled, visually impaired or hearing-impaired who wish to attend the RFP opening is available. If special arrangements are necessary, please notify the Purchasing Division designee as soon as possible and at least two (2) days in advance of the opening.

For ease of evaluation, the technical and cost proposals shall be presented in a format that corresponds to and references sections outlined within this RFP and shall be presented in the same order. Written responses shall be in bold/italics and placed immediately following the applicable RFP question, statement and/or section.

Proposals are to be prepared in such a way as to provide a straightforward, concise delineation of capabilities to satisfy the requirements of this RFP. Expensive color displays, promotional materials, etc., are not necessary or desired. Emphasis shall be concentrated on conformance to the RFP instructions, responsiveness to the RFP requirements, and on completeness and clarity of content.

For purposes of addressing questions concerning this RFP, the sole contact shall be the Purchasing Division as specified on Page 1 of this RFP. Upon issuance of this RFP, other employees and representatives of the agencies identified in the RFP shall not answer questions or otherwise discuss the contents of this RFP with any prospective vendors or their representatives. Failure to observe this restriction may result in disqualification of any subsequent proposal per NAC 333.155(3). This restriction does not preclude discussions between affected parties for the purpose of conducting business unrelated to this procurement.

Any vendor who believes there are irregularities or lack of clarity in the RFP or proposal requirements or specifications are unnecessarily restrictive, or limit competition shall notify the Purchasing Division, in writing, as soon as possible, so that corrective addenda may be furnished by the Purchasing Division in a timely manner to all vendors.

If a vendor changes any material RFP language, vendor’s response may be deemed non-responsive per NRS 333.311.

The vendor understands and acknowledges that the representations made in its proposal are material and important and shall be relied on by the State in its evaluation of a proposal. Any misrepresentation by a vendor shall be treated as fraudulent concealment from the State of the true facts relating to the proposal.

PART IA – TECHNICAL PROPOSAL

The Technical Proposal shall not include cost and/or pricing information. Cost and/or pricing information contained in the technical proposal may cause the proposal to be rejected.

Using Create Quote in NevadaEPro, vendors shall provide one (1) PDF Technical Proposal on the Attachments Tab that includes the following:

Section I – Title Page with the following information:

Part IA – Technical Proposal

Vendor Name:

Address:

Section II – Table of Contents

An accurate and updated table of contents shall be provided.

Section III – Vendor Information Sheet

The vendor information sheet shall be completed and signed by an individual authorized to bind the organization.

Section IV – State Documents

The State documents section shall include the following:

The signature page from all amendments signed by an individual authorized to bind the organization.

Attachment A – Confidentiality and Certification of Indemnification signed by an individual authorized to bind the organization.

Attachment B – Vendor Certifications signed by an individual authorized to bind the organization.

Copies of any vendor licensing agreements and/or hardware and software maintenance agreements.

Copies of applicable certifications and/or licenses.

Section V – Scope of Work

Vendors shall place their written response(s) to Section 2, Scope of Work in bold/italics immediately following the applicable RFP question, statement and/or section.

Section VI– Company Background and References

Vendors shall place their written response(s) to Section 3, Company Background and References in bold/italics immediately following the applicable RFP question, statement and/or section. This section shall also include the requested information in Section 3.2, Subcontractor Information, if applicable.

Section VII – Proposed Staff Resume(s)

Vendors shall include all proposed staff resumes per Section 3.4, Vendor Staff Resumes in this section.

This section shall also include any subcontractor proposed staff resumes, if applicable.

Section VIII – Other Informational Material

Vendors shall include any other applicable reference material in this section clearly cross referenced with the proposal.

PART IB – CONFIDENTIAL TECHNICAL PROPOSAL

Vendors only need to submit Part IB if the proposal includes any confidential technical information (Refer to Attachment A, Confidentiality and Certification of Indemnification).

If needed, vendors shall provide one (1) PDF Confidential Technical Proposal file that includes the following:

Section I – Title Page with the following information:

Part IB – Confidential Technical Proposal

Vendor Name:

Address:

Section II – Confidential Technical

Vendors shall cross reference the confidential technical information back to the technical proposal, as applicable.

PART II – COST PROPOSAL

Vendors shall submit pricing information on the Items Tab of their Quote in NevadaEPro.

Vendors shall provide additional pricing information as detailed in Section 8.4.4 if appropriate or required in accordance with Section 4, Cost.

The cost proposal shall not be marked “confidential”. Only information that is deemed proprietary per NRS 333.020 (5) (a) may be marked as “confidential”.

If needed, vendors shall provide one (1) PDF Cost Proposal file that includes the following:

Section I – Title Page with the following information:

Part II – Cost Proposal

Vendor Name:

Address:

Section II – Cost Proposal

Vendor’s shall place the information required per Section 4, Cost in this section.

PART III – CONFIDENTIAL FINANCIAL INFORMATION

If needed, vendors shall provide one (1) PDF Confidential Financial Information file that includes the following:

Section I – Title Page with the following information:

Part III – Confidential Financial Information

Vendor Name:

Address:

Section II – Financial Information and Documentation

Vendors shall place the information required per Section 3.1.11 in this section.

CONFIDENTIALITY OF PROPOSALS

As a potential contractor of a public entity, vendors are advised that full disclosure is required by law.

Vendors are required to submit written documentation in accordance with Attachment A, Confidentiality and Certification of Indemnification demonstrating the material within the proposal marked “confidential” conforms to NRS §333.333, which states “Only specific parts of the proposal may be labeled a “trade secret” as defined in NRS §600A.030(5)”. Not conforming to these requirements shall cause your proposal to be deemed non-compliant and shall not be accepted by the State.

Vendors acknowledge that material not marked as “confidential” shall become public record and shall be posted to the Purchasing website upon contract award.

It is the vendor’s responsibility to act in protection of the labeled information and agree to defend and indemnify the State of Nevada for honoring such designation.

Failure to label any information that is released by the State shall constitute a complete waiver of any and all claims for damages caused by release of said information.

PROPOSAL PACKAGING

Vendors shall submit their proposals through the State electronic procurement website, https://NevadaEPro.com, in accordance with the instructions below.

Proposals shall be received via https://NevadaEPro.com no later than the date and time specified on the General Tab of the Bid Solicitation in NevadaEPro. Proposals that are not submitted by bid opening time and date shall not be accepted. Vendors may submit their proposal any time prior to the deadline stated in NevadaEPro. In the event that dates, and times specified in this document and dates times specified in NevadaEPro conflict, the dates and time in NevadaEPro shall take precedence.

Proposals submitted as physical copies, email, or any submission method other than via NevadaEPro shall not be considered.

PROPOSAL EVALUATION AND AWARD PROCESS

The information in this section does not need to be returned with the vendor’s proposal.

Proposals shall be consistently evaluated and scored in accordance with NRS 333.335 based upon the following criteria. The following criteria are listed in order of importance.

Compliance Standards and Procedures in responding to Section

2.10.1.2 of this RFP

Presentations

Following the evaluation and scoring process specified above, the State may require vendors to make a presentation of their proposal to the evaluation committee or other State staff, as applicable.

The State, at its option, may limit participation in vendor presentations to up to the top five (5) scoring vendors.

The State reserves the right to forego vendor presentations and select vendor(s) based on the written proposals submitted.

Effective July 1, 2017, a five percent (5%) preference will be awarded to businesses based in Nevada. A Nevada business is defined as a business which certifies either that its ‘principal place of business’ is in Nevada, as identified in Section 3.1, Vendor Information, or that a ‘majority of goods provided for the contract are produced’ in Nevada. The preference will be applied to the total score.

Financial stability shall be scored on a pass/fail basis.

Proposals shall be kept confidential until a contract is awarded.

The evaluation committee is an independent committee comprised of a majority of State officers or employees established to evaluate and score proposals submitted in response to the RFP pursuant to NRS 333.335.

The evaluation committee may solicit information from any available source concerning any aspect of a proposal and seek and review any other information deemed pertinent to the evaluation process.

Each vendor shall include in its proposal a complete disclosure of any alleged significant prior or ongoing contract failures, contract breaches, any civil or criminal litigation or investigations pending which involves the vendor or in which the vendor has been judged guilty or liable. Failure to comply with the terms of this provision may disqualify any proposal. The State reserves the right to reject any proposal based upon the vendor’s prior history with the State or with any other party, which documents, without limitation, unsatisfactory performance, adversarial or contentious demeanor, significant failure(s) to meet contract milestones or other contractual failures. Refer generally to NRS 333.335.

Clarification discussions may, at the State’s sole option, be conducted with vendors who submit proposals determined to be acceptable and competitive per NAC 333.165. Vendors shall be accorded fair and equal treatment with respect to any opportunity for discussion and/or written revisions of proposals. Such revisions may be permitted after submissions and prior to award for the purpose of obtaining best and final offers. In conducting discussions, there shall be no disclosure of any information derived from proposals submitted by competing vendors. Any modifications made to the original proposal during the best and final negotiations shall be included as part of the contract.

A Letter of Intent (LOI) shall be issued in accordance with NAC 333.170 notifying…