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Michigan.gov/MiProcurement
BIDDER QUESTIONS & ANSWERS
Request for Proposal No. 230000002409 Instant Game, Pull-Tab, and Charity Game Tickets
Bidders who have questions for the above Solicitation must fill the sections below and attach the document in an email to the Solicitation Manager, as described in the Instruction to Bidders.
| Q # |
| Document and Section |
| Page # |
| Bidder Question |
| Answer (to be completed by the State) |
| 1 |
| RFP 230000002409 - Proposal Instructions |
Section 1. Proposal Preparation, Section 4. Questions Amendment 1, Revised RFP Timeline
| The Lottery has indicated that questions are due to the Lottery by Friday, August 11th and that answers should be expect by Friday, August 18th. Given that the submission is due Friday, August 25, would the Lottery please consider responding to questions as they are received or extend the submission date to September 1st? |
| See Amendment 2. The Event Table on page 1 of the RFP has been revised. The Proposal Deadline has been extended to Friday, September 1, 2023, at 1 p.m. Eastern. |
| 2 |
| Proposal Instructions and Amendment 1 |
| 1 |
| Currently, the anticipated date that the State will post answers to bidder questions is August 18, or one week before the proposal is due. Some answers can have a large impact on a proposal response, requiring a great deal of work to adjust responses in order to address the answers. Given this, we request that the Lottery post responses to questions as they are ready and at the latest August 11, which is two weeks before the proposal due date, as well as adjust the deadline for bidder's questions to August 4. |
| See answer to Question #1. |
| 3 |
| RFP 230000002409 - Proposal Instructions |
Section 1. Proposal Preparation
| 2 |
| The Lottery has indicated that for each of these product categories, the State may award a contract to both a primary and a secondary manufacturer. |
Can the Lottery confirm that the Lottery’s intent is to select one (1) primary and one (1) secondary manufacturer, for each of these product categories?
The Lottery intends to select one primary and one secondary print vendor for Instant Games.
| 4 |
| SIGMAVSS procurement portal |
| N/A |
| When submitting on the portal, the Bidder is required to fill in the Contract Amount. If the Bidder is bidding on more than one component, what amount should be entered? |
| Enter the total combined amount. Each product category will be broken down and evaluated separately. |
| 5 |
| Vendor Questions Worksheet, 5. State of Michigan Experience and Prior Experience. |
| 16 |
| This section asks for at least 3 relevant experiences for each ticket program being bid on. For Bidders bidding on more than one program/component, will the Lottery confirm that a bidder can add rows in the table to accommodate experience for all applicable programs/components? |
| Confirmed. If Bidder is bidding on more than one product category, the bidder can add additional rows under section 5 of the Vendor Questions Worksheet. |
| 6 |
| Schedule A1 - Instant Game Tickets, 3.2. Personnel |
| 20 |
| Will the Lottery please provide a description of the Trainer's responsibilities? |
| In the event of a key personnel change, the trainer would be a vendor representative with full Michigan Lottery knowledge and the ability to fulfill contractual responsibilities until such time the vendor program manager or contract representative returns or is replaced. |
| 7 |
| Schedule A1 - Instant Game Tickets, 8.1. Acceptance, Inspection and Testing, a. |
| 33 |
| This section refers to Section 16. Acceptance of the Standard Contract. Will the Lottery clarify this should refer to Section 17? |
| Confirmed. 8.1 is amended to refer to Section 17. Acceptance. See Amendment #2. |
| 8 |
| Schedule B1-Instant Games Pricing Excel Spreadsheet |
| N/A |
| Would the Lottery confirm the following ticket specifications are included in the Base Price of the excel spreadsheet Schedule B1-Instant Games Pricing: • Card stock of “0.10” thickness that is coated on one side. The coated side is laminated to the aluminum foil and the uncoated side will face out as the back of the ticket. |
• Computer imaged, continuous form, fan-folded tickets.
• Up to five (5) graphic colors on the front of the ticket.
• Up to three (3) colors in the overprint area.
• One (1) color (black) on the ticket back.
• Base or undercoats required to create a distinct display or overprint color do not count as a “color.”
• Order quantity with an allowance of plus or minus 5 percent of the order quantity of instant tickets ordered for each game.
• All shipping cartons must be 275 lb. test.
Anything that is not comparable to the additional options listed in the pricing matrix should be within the base price. Anything that is an additional cost must be listed.
| 9 |
| Schedule B1-Instant Games Pricing Excel Spreadsheet |
| N/A |
| The formulas embedded in the excel worksheet either contain a #REF error or appear to provide incorrect data. Will the Lottery please verify the formulas are working or correct the formula and provide a revised Excel Spreadsheet? |
| See revised Schedule B1. |
| 10 |
| Schedule A1 - Instant Game Tickets (various sections) |
| 2, 3, 5- 7, 9-14, 16, 19, 20, 28-30 |
| The RFP refers to Program Manager in multiple sections in Schedule A1. Will the Lottery confirm that with the exception of Program Manager listed under Key Personnel in 3.2 Key Personnel (page 20) which clearly refers to the Contractor’s staff, these mentions refer to the Lottery’s Program Manager? |
| Confirming those pages listed is Lottery’s program manager with the exception of 3.2 Key Personnel would be referencing the bidders program manager. |
| 11 |
| Schedule B1-Instant Games Pricing Excel Spreadsheet |
| N/A |
| The existing spreadsheet requests a cost per thousand for higher volumes (column G) but doesn’t specify what volume level pertains to the price break. Will the Lottery consider adding a column (between current columns F and G) that indicates the specific volume level that applies to the price break? |
| The bidder shall define where the price break occurs. |
| 12 |
| Schedule B1-Instant Games Pricing Excel Spreadsheet, column H |
| N/A |
| Will the Lottery please clarify if the price requested in column H Balancing is Proportional Prize Distribution Balancing? |
| Balancing requirements to distribute top prizes proportionately across the game based on the total quantity of tickets delivered for each game. |
| 13 |
| Schedule B1-Instant Games Pricing Excel Spreadsheet |
| N/A |
| Schedule B1 specifies that printing options not described in the Cost Tables should be listed and priced under the Miscellaneous columns. The addition of many options will result in a cumbersome document. For ease of use and reading, will the Lottery please allow bidders to include additional options as an attachment to Schedule B1? |
| Yes. |
| 14 |
| Proposal Instructions, 7. Evaluation Process |
| 5-6 |
| The Technical Evaluation Criteria for Instant Game Tickets identifies the evaluation weight allocated to Schedule A, Statement of Work, sections 1, 2 and 3. Will the Lottery please clarify if/how the responses to sections 4. through 13. will be evaluated? |
| The remaining sections (4-13) represent contractual obligation or terms and conditions (Item #4). |
| 15 |
| Proposal Instructions, 7. Evaluation Process |
| 5-6 |
| The Technical Evaluation Criteria for Validation Pull Tabs identifies the evaluation weight allocated to Schedule A, Statement of Work, sections 1 and 2. Will the Lottery please clarify if/how the responses to sections 3. through 15. will be evaluated? |
| The remaining sections (4-13) represent contractual obligation or terms and conditions (Item #4). |
| 16 |
| Proposal Instructions, 7. Evaluation Process |
| 5-6 |
| The Technical Evaluation Criteria for Charity Game Tickets identifies the evaluation weight allocated to Schedule A, Statement of Work, sections 1, 2 and 3. Will the Lottery please clarify if/how the responses to sections 4. through 15. will be evaluated? |
| The remaining sections (4-13) represent contractual obligation or terms and conditions (Item #4). |
| 17 |
| Schedule B1-Instant Games Pricing |
| N/A |
| Recent inflationary pressure on input costs have had and continue to have a considerable impact on all businesses throughout the world. This is particularly true for our industry because inflation has affected paper, ink, transportation, and other costs related to instant tickets even more than most businesses' inputs. Given this unprecedented situation and the fixed and long-term nature of the contract pricing framework, vendors will necessarily need to make important pricing assumptions. In order for the Lottery to benefit from the most competitive pricing possible and in the spirit of mutual cooperation, would the Lottery consider an annual Consumer Price Index (CPI) adjustment to prices? |
| No. |
| 18 |
| Proposal Instructions, Proposal Preparation |
| 2 of 20 |
| Is it the State’s intention to award 1 (one) secondary Contractor, or multiple? |
| See question 3. |
| 19 |
| Proposal Instructions |
| 2 of 20 |
| Page 2 of the Proposal Instructions states that the State may award a contract to both a primary and secondary manufacturer. Does the state intend for Schedule B1 – Instant Games pricing to be applicable to both primary and secondary vendor status, or alternatively, should vendors submit a separate Schedule B1 for primary and secondary? |
| See question 3. Pricing should be applicable to both Primary and Secondary. |
| 20 |
| Schedule A1, Section 1.g, General Requirements |
| 2 of 40 |
| Item 1.g states that vendors will be required to furnish one licensed property per contract year at no cost to the Bureau. Does this requirement apply to secondary printers? If so, will the Lottery commit to some level of printing business with secondary vendor? Otherwise, the vendor will be forced to assume cost of license in its base printing. Please define any parameters on the requirement of the free licensed game (for example, price point, quantity, etc). |
| This requirement would not apply to secondary printers. |
The licensed property for the primary would be based on the quantities listed at price points $2-$10.
| 21 |
| Schedule A1, Section 1.1.r, Instant Game Product Specifications |
| 3 of 40 |
| Would the Bureau please specify how often they would be requesting these types of decoy tickets and the quantity of tickets required each time? |
| Four decoy games per year, with the expected order quantity being one pack of winners and one pack of non-winners per game. |
We do not know the ticket size, it would be dependent upon the game.
| 22 |
| Schedule A1, Section 1.2, Scene/Color Pulsing |
| 3 of 40 |
| Please clarify what is meant by “front page” of the associated working papers. Typically, this information is detailed in the pricing page which is at the end of the Working Papers. |
| See Amendment 2. |
| 23 |
| Schedule A1, Section 1.8, Game, Book, Ticket and Validation Numbers |
| 7 of 40 |
| Item 1.8 states that each instant game ticket shall contain a format-game-book-ticket number sequence which is to appear on the front and back of each ticket and each detachable stub when applicable. Would the Bureau please share the number of games produced with ticket stubs over the past 3 years? Also, would the Bureau please share plans for the anticipated number of future games in which this would be applicable? |
| The Lottery has no current plans for a detachable stub. |
| 24 |
| Schedule A1, Section 1.9.b, Bar Coding |
| 8 of 40 |
| Please verify the information here is accurate. For instance, the numeric characters listed in the chart do not add up to the 27 numeric characters specified in the requirement text. In addition, as a current supplier, this is not the format that we follow to-date. |
| There would be a four-digit prefix of 4419 to equal 27 digits. |
| 25 |
| Schedule A1, Section 2.5.h.1, Marketing Services, Promotions, and Merchandising |
| 18 of 40 |
| Item 2.5.h.1 states that where an instant ticket order by the Bureau includes a second chance drawing or other second chance game, Contractor shall, at no additional cost to the Bureau, work with the Bureau to integrate such second chance games onto any website or mobile application identified by the Bureau. Would the Bureau please share the number of second chance games produced over the past 3 years? In addition, what is the potential for the number of second chance drawings or games with both the Primary and Secondary Contractors? Who would be responsible for conducting the second chance drawings (Lottery or vendor)? |
| Previous years on average 5-6 games would launch with a second chance option. Estimated number of games per year is 3, but that number is not guaranteed. Lottery would conduct drawings. |
| 26 |
| Schedule A1, Section 2.5.h.1, Marketing Services, Promotions, and Merchandising |
| 18 of 40 |
| Does the Bureau want or require hosting of a mobile app or website to accompany the second chance drawings or second chance games? If so, would the Primary or Secondary vendors be required to manage the Player Account Management (PAM)? |
| Lottery would host and have Player information. |
| 27 |
| Schedule A1, Section 2.5.h.1, Marketing Services, Promotions, and Merchandising |
| 18 of 40 |
| Please specify the kinds of integrations that would be required. |
a) Would the vendor be required to integrate with any existing PAM or set up new PAM? Will the PAM provider be able to work to securely pass PII for second chance to conduct drawings both on desktop and within the app?
b) On the mobile app, will vendors be able to integrate with the existing app using web responsive pages?
c) Within the app, if integrating with the app, will the app be able to scan barcodes to be entered into a second chance program – Instant and Draw games?
d) On the desktop, will the vendor be required to integrate within the existing Lottery’s site pages for the second chance? Who will host the site?
Lottery would host and have Player information.
| 28 |
| Schedule A1, Section 2.5.h.1, Marketing Services, Promotions, and Merchandising |
| 18 of 40 |
| Please clarify who would be responsible for creating the second chance games, and if it is the vendor, please confirm the cost of creating such game is included in the instant ticket order. |
| Lottery will create second chance games. |
| 29 |
| Schedule A1, Section 3.5.h, Assurances |
| 27 of 40 |
| Would the Bureau please clarify what types of security measures would need to be in place to ensure security of State facilities given the lack of facility integration as part of the RFP requirements? |
| The question requests the Vendor provide their own security measures they will put in place. General information can be found in the Administrative Guide to State Government Section 0210.06 Conduct on State Property. |
| 30 |
| Schedule A1, Section 4.e, 9.1 and 9.2 |
| 28 and 33 of 40 |
| The Lottery’s inclusion of a “most favored nations” clause creates a significant and material business risk for the bidders. This type of clause creates an unqualified obligation based on the assumption that the underlying goods and services are no more than a commodity item priced in a virtually identical manner to all customers in all relevant markets. This is emphatically not the case. Each bidder prices the requested goods and services only after carefully evaluating numerous variables unique to each customer, such as (but in no way intending to be a comprehensive list) products being purchased, pricing model, sales history, local rental rates, workforce availability, geographic considerations, marketing commitments, testing protocols, product specifications, and many others. In effect, the Lottery is preventing the bidders from actually analyzing your business to determine what investment is needed to grow the Lottery’s contributions to the good causes you support and instead requires bidders to simply insert the lowest price charged to any other customer regardless of that customer’s size, sales, scope and support, and also ignoring the economic conditions in effect now and those in effect when the comparative contract was entered which further results in a false equivalency for the pricing offered then as compared to now. To simply require the lowest price offered to any other customer without qualification creates risks not customarily applicable in the lottery industry and restricts real competition for the proposal best fitting the Lottery’s needs. In addition, the inclusion of any non-government customers creates conflicts for the bidders with regard to contractual obligations of non-disclosure between commercial parties. Therefore, will the Lottery please confirm it will remove Section 4.e of Schedule A1 as the pricing offered to customers is based on the totality of the circumstances related to the package they select and is by its nature extremely challenging to compare equitably or accurately? |
a) Should the Lottery elect not to remove Section 4.e of Schedule A1, please confirm that the requirement for equivalent or lower pricing will only apply for non-commercial contracts in situations where the Lottery has substantially identical characteristics as another customer. Substantial characteristics to include products, quantity, terms, and contract year with consideration for inflation.
b) Should the Lottery elect not to remove Section 4.e of Schedule A1, please confirm whether the requirement applies to primary and secondary bidders.
c) Should the Lottery elect not to remove Section 4.e of Schedule A1, please confirm that confidential pricing offered to commercial customers is not required to be disclosed.
Lottery will not remove Section 4.e of Schedule A1. This inclusion of this type of requirement is standard in this type of contract. On an annual basis and upon the request of Lottery, the contractor must provide Lottery with a breakdown of all pricing for contractor’s other commercial and government clients and is not limited to those situations where the contractor believes that Lottery has substantially identical characteristics as another customer. The requirement applies to both primary and secondary contractors. Provided that the contractor is acting in good faith, the contractor need not disclose pricing information that is considered confidential or not subject to disclosure under the terms of a binding contract. The contractor is free to provide relevant information and context in addition to the pricing information that is required to be disclosed under Section 4.e of Schedule A1, and Lottery will reasonably consider all such information in good faith.
| 31 |
| Schedule A1, Section 6.2, Order Verification |
| 29 of 40 |
| Can the Lottery please specify what type of internal controls they are seeking as it pertains to verifying abnormal orders and ensuring only authorized individuals place orders? |
| Written notice on defect/ abnormal tickets/ orders prior to shipment. Written documentation on what the contractor will do to ensure quality products are produced and delivered. |
| 32 |
| Schedule A1, Section 11, Onsite Inspection, Travel and Accommodations |
| 36 of 40 |
| Item 11 states that Contractor shall pay reasonable travel and accommodation expenses for one Lottery staff member to inspect |
Contractor’s headquarters and production facilities. Does this requirement apply to secondary vendor(s) as well as the primary vendor?
Yes.
| 33 |
| Schedule A1, Section 12.1, Environmental and Energy Efficient Product Standards |
| 37 of 40 |
| Will the Lottery please specify what would be classified or defined as “bio-based” as it pertains to instant tickets? |
| Biobased materials refer to products that mainly consist of a substance (or substances) derived from living matter (biomass) and either occur naturally or are synthesized, or it may refer to products made by processes that use biomass. Following a strict definition, many common materials, such as paper, wood, and leather, can be referred to as biobased materials, but typically, the term refers to modern materials that have undergone more extensive processing. Materials from biomass sources include bulk chemicals, platform chemicals, solvents, polymers, and Biocomposites (some materials may fall under more than one category). |
| Would the Bureau please share current instant ticket price schedules including print options from its instant ticket vendors? |
| The pricing varies based off awards made at the tier 2 process. The price varies depending on the project, price point and quantity. |
| Schedule B1 includes a column with the header “Price Break/Higher Ticket Volume”. Will the Bureau please specify the quantity pertaining to this price break field, or alternatively, permit vendors to specify the higher quantity? For example, the price break associated with an order quantity that is 5 million tickets greater than that shown on Schedule B-1 would be somewhat different than a price break for an additional 1 million tickets. |
| Print vendors should specify at what quantity the % price break. |
| Schedule B1 includes several columns referring to “offset.” Some ticket producers have no offset press equipment however, the same results can be achieved with different equipment. Will the Bureau allow vendors to respond to these columns with a different solution? |
| Vendors may use the misc. column to identify their solutions and print techniques. |
| Schedule B1 includes columns for pricing additional display, back, and OP colors. Would the Bureau please specify the number of front display colors, back display colors, and overprint colors included in the “base ticket,“ in order for vendors to complete these pricing fields? |
| Vendors should identify what is included in their base pricing. |
| Schedule B1 includes a column header “Spectrum OP.” Spectrum OP is the proprietary product of another vendor. Will the Bureau allow vendors to respond to these columns with a different solution? |
| Vendors may use the misc. column to identify their solutions and print techniques. |
| Schedule B1 includes columns for pricing Holographic Paper and Foil Board. Would the Bureau please specify the “base ticket” substrate in order for vendors to complete these pricing fields? |
| Vendors should identify what is included in their base pricing. |
| Schedule B1 includes a column for pricing “Picture Perfect.” Would the Bureau please identify what this product is? |
| Seamless continuous design across the ticket offset (base) graphics and overprints. It’s been called continuous image or continuous scene. |
| Schedule B1 includes a column for pricing Scratch My Back, with a flat fee. Scratch My Back is customarily priced according to ticket area and volume. Would the Bureau please revise the flat fee specification to instead read per 1,000 tickets, or per square inch of ticket area per 1,000 tickets as is industry standard? |
| Confirmed. See Revised Schedule B1. Scratch my back is referencing two-sided printing. We are inquiring about the setup fee and cost per thousand. |
| Schedule B1 includes a column for pricing ITVM Cards, per 1,000. Does the “per 1,000” in this case refer to per 1,000 tickets or per 1,000 ITVM Cards? |
| Per 1,000 ITVM |
| Schedule B1 Instant Games Pricing states that “Printing options not described in the Cost Tables should be listed and priced under Miscellaneous columns.” Given the lengthy list of available miscellaneous options and products available to the Bureau, would the Bureau please confirm that is acceptable to supply miscellaneous option pricing as a separate list, as provided for the exception field in the Schedule B-1 pricing instructions? |
| The vendor may add additional misc. columns in Schedule B to fit other items you would like for us to take into consideration. |
| 44 |
| Schedule A1 - Instant Game Tickets, 9.2. Payment Methods |
| 34 |
| There is a blank green row in the response table (i.e, it doesn't contain instructions to include a description). Is the Bidder expected to provide a description here? |
| This is for the vendor to note exceptions if they cannot meet this requirement. |
| 45 |
| Schedule A1 - Instant Game Tickets, 12.3. ADA |
| 38 |
| There is a blank green row in the response table (i.e, it doesn't contain instructions to include a description). Is the Bidder expected to provide a description here? |
| This is for the vendor to note exceptions if they cannot meet this requirement. |
| 46 |
| Schedule A1 - Instant Game Tickets, 1.18. Transition |
| 15 |
| This section states "Invoices must be sent within 45 calendar days after expiration of contract. Any invoices received after 45 calendar days will result in a non-payment of invoice." Section 9.2 Invoice Requirements states: “the contractor shall not submit invoices for payment until they deliver the product and the Bureau receives the product.” Can the Lottery please clarify how it intends to manage invoices of games ordered under this contract but that have an intended delivery date more than 45 days after the end of the contract period? |
| Section 1.18 references the expiration of the contract and any outstanding invoices need to be sent within 45 days after that date. |
Section 9.2 references games during the contract.
Vendors are welcome to note exceptions to these sections and propose an alternate with justification as to why there would be an exception and the need for an alternate.
| 47 |
| Schedule A1, 3.5. Security, h. Assurances |
| 26-27 |
| 1. and 2. in this section seem to be referring to g. Disclosure. Will the Lottery please confirm? |
| Section 3.5(h) refers to any disclosure required by Section 3.5. |
| 48 |
| Schedule B1-Instant Games Pricing Excel Spreadsheet |
| N/A |
| In order to provide the Lottery with the most flexibility regarding order sizes/quantities, will the Lottery allow us to include a price matrix (similar to what was required for the Lottery's 2008 RFP) in addition to Schedule B1- Instant Games Pricing? |
| As we don’t have that pricing matrix from 2008, we cannot fairly accept additional documents. |
| 49 |
| 01 230000002409 - Proposal Instructions-Confidential Treatment-Vendor Questions Worksheet.docx |
5. Delivery of Proposal
| 5 of 20 |
| Would the Bureau please confirm the MB limitation of the Solicitation Manager's (Doaka@michigan.gov) email inbox? |
| To prevent reaching the MB limitation on the Solicitation Manager’s email inbox, all attempts to condense/zip files should be made. All vendor responses should be complete and concise. |
| 50 |
| 01 230000002409 - Proposal Instructions-Confidential Treatment-Vendor Questions Worksheet.docx |
5. Delivery of Proposal
| 4 of 20 |
| If a vendor's response to Schedule A1 - Instant Game Tickets is over the SIGMA VSS systems’ 6MB limit, would it be acceptable and will the system allow multiple 6MB documents to be uploaded for Schedule A1 - Instant Game Tickets, uniquely identified as "part1ofX.doc"? |
| SIGMA VSS allows multiple documents to be uploaded and allows for zip files as well. All vendors should provide their answers in a complete and concise manner within the bidder boxes provided. |
| 51 |
| 01 230000002409 - Proposal Instructions-Confidential Treatment-Vendor Questions Worksheet.docx |
| 11 of 20 |
| Would the Bureau please confirm that the Confidential Form can be extracted from the 01 230000002409 - Proposal Instructions-Confidential Treatment-Vendor Questions Worksheet.docx, so that it can be signed and submitted separately? |
| Confirmed. The Confidential Form may be submitted as a separate document. |
| 52 |
| 02 230000002409 - Schedule A1 - Instant Game Tickets.docx |
General Requirements e
| 2 of 40 |
| The RFP requires the vendor to provide a coupon database for second chance games, which will include prize structure, coupon database management, tracking, managing, and providing coupon and coupon outcomes. Please confirm that this requirement is only for the Primary contractor. |
| This would be only for the Primary contractor. |
| 53 |
| 02 230000002409 - Schedule A1 - Instant Game Tickets.docx |
1.General Requirements 4.Notifications
| Would the Bureau please clarify whether vendors need to populate the green highlighted areas under the following titles: Lottery Contract Manager and Program Manager – Instant Game Tickets? Or should the Bidder leave this blank? |
| Bidder will leave blank. This information will be completed by MSL when a contract is created. |
| 54 |
| 02 230000002409 - Schedule A1 - Instant Game Tickets.docx |
General Requirements g.
| 3 of 40 |
| The RFP requires the vendor to provide one Licensed property per contract year at no charge to the Lottery. Please confirm that this requirement is only for the Primary contractor. |
| Yes. |
| 55 |
| 02 230000002409 - Schedule A1 - Instant Game Tickets.docx |
1.1 Instant Game Product Specifications r.
| 3 of 40 |
| Would the Bureau please describe how many decoy games will be required per contract year? |
Please also confirm the ticket size and expected order quantity to produce each decoy game.
Four decoy games per year, with the expected order quantity being one pack of winners and one pack of non-winners.
We do not know the ticket size, it would be dependent upon the game.
| 56 |
| 02 230000002409 - Schedule A1 - Instant Game Tickets.docx |
1.4. Trademark and Service Mark Searches
| 5 of 40 |
| Section 1.4 (a) of Schedule A-1 of the RFP states that new trademarks and service marks developed for the Bureau will be the property of the State of Michigan. The contractor likely owns many trademarks related to its proprietary games and products, some of which may be provided to the Bureau but are also provided by the contractor to other customers. |
Would the Bureau please confirm that only those trademarks and service marks developed solely and exclusively for the Bureau are the property of the Bureau?
Yes.
| 57 |
| 02 230000002409 - Schedule A1 - Instant Game Tickets.docx |
1.4. Trademark and Service Mark Searches
| 5 of 40 |
| Section 1.4 of Schedule A1 of the RFP states that the contractor will register new trademarks and service marks in the name of the State of Michigan at the contractor’s cost, as well as be responsible for renewing all trademark or service marks on behalf of the Bureau and provide documentation regarding the registration status. |
Under the USPTO rules, a contractor is not permitted to apply for or prosecute trademark applications owned by its customers. To provide that service would require the contractor to provide legal services to the Bureau, which is not envisioned by the proposed contract or procedurally possible without forming an attorney-client relationship between the contractor and the Bureau.
Would the Bureau please revise section 1.4 to state that with respect to trademark registration, the contractor’s responsibility is limited to providing the necessary documentation required by the Bureau to apply for and maintain registration of trademarks and service marks resulting from the Contract?
Would the Bureau further clarify that the Bureau is responsible for the costs associated with registrations of trademarks and service marks owned by the Bureau?
See Amendment 2 for Section 1.4 changes in red. Ensure the bidder box for this section is used to describe how vendor complies with the requirements of Section 1.4.
| 58 |
| 02 230000002409 - Schedule A1 - Instant Game Tickets.docx |
1.4. Trademark and Service Mark Searches
| 5 of 40 |
| Section 1.4 of Schedule A1 of the RFP states that the contractor will provide the Bureau with a nonexclusive, non-transferable, non-sublicensable license to use the trademarks or service marks owned by the contractor. |
It is customary for a contractor to provide its customers with licenses to the contractor’s trademarks used in connection with products and services provided by the contractor during the term of the contract.
Would the Bureau amend section 1.4 to clarify that the contractor will provide the Bureau with a non-exclusive, non-transferable, non-sub-licensable license to the contractor’s trademarks and service marks solely for use in connection with products and services provided by the contractor to the Bureau and solely for the term of the contract resulting from this RFP?
See Section 1.4, C of Schedule A1.
| 59 |
| 02 230000002409 - Schedule A1 - Instant Game Tickets.docx |
1.4. Trademark and Service Mark Searches
| 5 of 40 |
| Section 1.4 of Schedule A1 states that the contractor will provide a letter warranting its ownership of trademarks and service marks that are owned by the contractor. |
Contractor does not typically provide a letter warranting ownership of its trademarks and service marks, and instead relies on the marks publication as a filed application or registration in the USPTO trademark database to evidence ownership.
Would the Bureau confirm that the existence of an application for registration or registration in the USPTO trademark database is sufficient evidence of the contractor’s ownership?
Confirmed.
| 60 |
| 02 230000002409 - Schedule A1 - Instant Game Tickets.docx |
1.11. Test Files
| 10 of 40 |
| Would the Bureau please confirm that the test game will not be printed on-press but, rather, in the form of laser proofs in the PDF format? |
| Per security and gaming control. Yes, tickets printed on laser proofs in a PDF file format. |
| 61 |
| 02 230000002409 - Schedule A1 - Instant Game Tickets.docx |
3.2.1 Key Personnel
| 20 of 40 |
| Would the Bureau please describe the role of “trainer” and “attorney” in connection to the delivery of services under this contract? |
| The trainer is someone assigned to Michigan’s account with Michigan Lottery knowledge in the event one of the key personnel cannot meet the requirements listed This person will be able to train the replacement until key personnel has returned or needs to be replaced indefinitely. |
| 62 |
| 02 230000002409 -Schedule A1 - Instant Game Tickets.docx |
3.5.c Security Program 3.5.c.6 Disaster Recovery and Contingency Plan
| 24 of 40 |
| Would the Bureau please confirm that the vendor should give the Security Program and the Disaster Recovery and Contingency Plan the same name: Exhibit 2 to Schedule D? And will the Bureau confirm the location of Schedule D? |
| The Contractor will refer to their Security Program as EXHIBIT 1 TO SCHEDULE D. See revision to 3.5.c Security Program in Amendment 2 document. |
Contractor will refer to their Disaster Recovery and Contingency Plan as EXHIBIT 2 TO SCHEDULE D, CONTRACTOR’S DISTASTER RECOVERY AND CONTINGENCY PLAN.
Schedule D will be located between Schedule C and Contract Terms. See Amendment 2.
| 63 |
| 02a 230000002409 Schedule B1 Instant Games Ticket Pricing |
| N/A |
| Schedule B1 has columns titled Total Cost that have a formula within that references a “#REF” cell. |
Would the Bureau please advise which cell is being referenced in the formula and revise Schedule B1 accordingly?
See answer to Question 9.
| 64 |
| 02a 230000002409 Schedule B1 Instant Games Ticket Pricing |
| N/A |
| Would the Bureau allow vendors to provide two Pricing schedules, for Primary and Secondary, given the difference in volume assigned and guaranteed to the Primary? |
| Please use misc. column and list as secondary pricing. |
| 65 |
| 02a 230000002409 Schedule B1 Instant Games Ticket Pricing |
| N/A |
| Would the Bureau please explain what Balancing per pack means in the price form? Is this different from the way the Lottery currently has its games balanced? |
| Balancing refers to a vendor program ensuring top prizes equally distributed throughout the print run. I.E. ensuring that all top prizes are not located at the front of the print run, back, etc. This is the way Lottery currently has its games balanced. |
| 66 |
| 02a 230000002409 Schedule B1 Instant Games Ticket Pricing |
| N/A |
| The price schedule requires pricing for options that are owned or patented by a specific vendor. |
Would the Bureau please confirm that, for these options, a vendor can either provide an equivalent solution or reply with a N/A response?
Yes. Provide an amount or n/a. Vendors may also provide any additional options not listed under misc.
| 67 |
| 02a 230000002409 Schedule B1 Instant Games Ticket Pricing |
| N/A |
| Schedule B1 has a column labeled “Scratch FX/Scratch FXTRA/ Glam/ Sparkle/DuoFX.” We understand this section is to list pricing for a holographic stamping solution. |
Would the Bureau confirm that it meant to write “Gleam,” rather than “Glam”?
That section refers to holographic stock and what vendors call their own patented version. Gleam and Glam mean the same thing.
| 68 |
| 02a 230000002409 Schedule B1 Instant Games Ticket Pricing |
| N/A |
| In several columns, the Bureau refers to offset printing. Offset is a specific printed technology with limited use in the lottery industry. |
Is the Bureau specifically requiring the use of Offset printing? Or is this simply a general term for requesting the application of additional colors that can also be achieved with other printing technologies?
Offset printing/ offset colors refers to the portion of the ticket that is not scratchable and may have more than one color used. It has also been referred to as “base graphics or base printing”.
| 69 |
| 02a 230000002409 Schedule B1 Instant Games Ticket Pricing |
| N/A |
| The term MegaColor, which appears in the heading of one of the columns, is a trademark relative to a 4CP integrated display and overprint design. |
Would the Bureau please confirm that vendors may change the column header to “4CP integrated display and over print graphics”?
Leave the header title as is but you may put in the body “We refer to MegaColor as 4CP” with your definition.
| 70 |
| 02a 230000002409 Schedule B1 Instant Games Ticket Pricing |
| N/A |
| With regard to the Schedule B1 column labeled “Digital Printing,” would the Bureau please describe the digital printing solution it is looking for, scope, specifications, ability, etc.? |
| Games that are produced on a physical press, but the preparation process is digital. In place of a station with a plate and cylinder producing the same ticket multiple times over, the digital technology provides a full level of customization. Each ticket can be different than the next. The design can be extended underneath the latex, on the ticket back, which can also be in full color, not just black and white. |
| 71 |
| Schedule A1 - Instant Game Tickets, section 1.12 |
| 10 |
| What are the standards applicable to “SFTP” referenced in section 1.12 of Schedule A1? |
| Contractors are advised that the State has methods, policies, standards and procedures that have been developed over the years. Contractors are expected to provide proposals that conform to State IT policies and standards. All services and products provided as a result of this RFP must comply with all applicable State IT policies and standards. State of Michigan IT standards can be found here: DTMB - IT Policies, Standards & Procedures (michigan.gov). |
At a minimum, the SFTP must meet the following standards:
1. Must use either SFTP or FTPS protocol, no standard FTP
1. Must use strong encryption (TLS1.2 or greater) and hashing (SHA-2)
1. Server should be behind a secure gateway or minimally in secure DMZ behind a managed firewall, with file and/or folder security applied
1. Must require whitelisted IP address access
1. Must keep server hardened and up-to-date with all OS and software patches
1. Must have secure account management, including requiring strong passwords (minimum 8 characters with all 4 character types)
| 72 |
| Schedule A1 - Instant Game Tickets, section 1(e) |
| 2 |
| What standards are applicable to the database referenced in section 1(e) of Schedule A1? |
| Contractors are advised that the State has methods, policies, standards and procedures that have been developed over the years. Contractors are expected to provide proposals that conform to State IT policies and standards. All services and products provided as a result of this RFP must comply with all applicable State IT policies and standards. State of Michigan IT standards can be found here: DTMB - IT Policies, Standards & Procedures (michigan.gov). |
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