Addendum No. 4_ITB S-DASOBO-00004975_12-9-2022~1.pdf

ITB # S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution

Addendum No. 4

Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

ADDENDUM No. 4 to

ITB No. S-DASOBO-00004975 for

HEAT-TRANSFER CIGARETTE TAX STAMP MANUFACTURING AND

DISTRIBUTION

SECTION 1: PURPOSE

The purpose of this addendum is:

1.1 MODIFICATION OF SCHEDULE OF EVENTS – Section 1.3 to modify the dates in the schedule of events.

1.2 MODIFICATION OF ATTACHMENT H-1 – Product Sample and Submittal Requirements, to replace Attachment H-1.

1.3 MODIFICATION OF ATTACHMENT H-2 – Evaluation and Testing, to replace the written content and to modify the Stamp Specification tables to show clarification of Specifications.

1.4 MODIFICATION OF ATTACHMENT I – Design and Print Specifications (g), (h), (l), (m), and (n);

Counterfeit Detection Specifications (a) and (b); Quantity and Availability of Stock Level Specification (a); and revise Attachment I-1, I-2, I-3, and I-4.

SECTION 2: MODIFICATIONS

2.1 SECTION 1.3 – SCHEDULE OF EVENTS IS MODIFIED AS FOLLOWS. New language is indicated by bold underlined font, deleted language is indicated by strikethrough font and brackets.

See REVISED Schedule of Events, attached.

Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

2.2 ATTACHMENT H-2 PRODUCT SAMPLE AND SUBMITTAL REQUIREMENTS is modified to clarify and modify Sample Submission Requirements. Attachment H-1 is modified by replacing Attachment H-1.

See REVISED Attachment H-1 – Product Sample and Submittal Requirements, attached.

2.3 ATTACHMENT H-2 EVALUATION AND TESTING is modified by replacing written testing requirements and to modify Stamp Specification Tables to clarify the testing process. Written content is deleted and replaced; Specification Tables are modified as follows. New language is indicated by bold underlined font, deleted language is indicated by strikethrough font and brackets.

See REVISED Attachment H-2 – Evaluation and Testing, attached.

2.4 ATTACHMENT I – PRINTING AND SERVICE SPECIFICATIONS is modified to clarify and correct the following specifications, Design and Print Specifications (g), (h), (l), (m), and (n), Counterfeit Detection Specifications (a) and (b); Quantity and Availability of Stock Level Specification (a). Attachment I-1 is modified as follows. New language is indicated by bold underlined font, deleted language is indicated by strikethrough font and brackets.

See REVISED Attachment I – Printing and Service Specifications, and its Attachments I-1, I-2, I-3 and I-4, attached.

SECTION 3: PROTEST

Protests to this addendum must be submitted in the same manner required in ITB section 2.3.5 and are due at 5:00 PM (PT) December 12th, 2022.

Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

REVISED Schedule of Events

EVENT Party Responsible

DATE TIME

(Pacific Time)

Pre-Bid Conference Date:

Pre-Bid Conference (Non-Mandatory)

Bidder November 30, 2022 10:00 am

Questions and Clarifications Due:

Submit all Questions and Clarifications in writing

Bidder

December 14, 2022 [December 6, 2022]

2:00 pm

Answers to Questions and Clarifications Date:

Answers to Questions and Clarifications published in OregonBuys

DAS PS

December 15, 2022 [December 7, 2022]

(approximately) N/A

Second Pre-Bid Conference Date:

Pre-Bid Conference (Non-Mandatory)

Bidder December 13, 2022 10:00 am

Step One:

Notice of Intent to Participate Email Notification Due

December 15, 2022

N/A

Step Two:

Product Sample Submittal Requirements Product Sample and Requirements Due

January 10, 2023

2:00 PM

Product Sample Evaluation and Testing:

Product Sample Submittal Requirements to be evaluated and tested.

DAS PS

January 12, 2023 (approximately)

N//A

Pass-Fail Notification Date:

Release Product Pass/Fail Notifications

DAS PS

January 13, 2023 (approximately)

N/A

ITB Protest Period End Date:

ITB Bidder Protest Period Ends

Bidder 7 calendar days prior to ITB

Bid Opening Date

5:00 PM

Step Three:

Submit Bids (Bid Opening Date) Bid Submittal and Required Forms Due

Eligible Bidders See Cover Page of this ITB

Recording of Bid Opening Date:

Date all Bid Submissions will be recorded in OregonBuys

DAS PS 48 hours after the (Bid Opening)

Notice of Intent to Award Date:

Notice of Intent to Award posted in OregonBuys

DAS PS

January 27, 2023 (approximately)

N/A

Intent to Award Protest Period End Date:

Notice of Intent to Award Protest Period Ends

Bidder 7 days from Notice of Intent to

Award

5:00 PM

Price Agreement Execution Date:

Approximate date Price Agreement will be Executed

DAS PS

February 6, 2023 (approximately)

N/A

Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

REVISED ATTACHMENT H-1

PRODUCT SAMPLE AND SUBMITTAL REQUIREMENTS

STEP 2 - REQUIRED SUBMITTALS

Mandatory: Product Sample Submittal Requirements

Bidder must submit the Product Samples and Submittal Requirements as listed herein. DAS PS shall evaluate Product Sample and Submittal Requirements as detailed in Attachment H-2 (Evaluation and

Testing) and reserves the right to test all Product and Samples submitted. The submitted test stamps may be tested on Oregon License Distributor Machines such as United Silicone, Red Stamp machines, or similar heat applied tax stamping machines with one or multiple heads for stamping the cartons.

Samples provided must not contain features of the current Oregon Cigarette Tax Stamps, including Oregon images or colors so as not to be mistaken with the current cigarette tax stamps.

Sample Products must be clearly marked as Sample Products, be labeled with Bidder’s name, and the ITB number.

Ink, technique, products, and material used for Product Samples must be identical to ink, technique, products, and material the Bidder is Bidding. All costs related to Product Sample Submittal Requirements are at the expense of the Bidder.

Product Sample Submittal Requirements submitted which fail to comply with these requirements risk rejection.

DAS PS reserves the right to require additional samples prior to, or after, award for additional testing.

Failure to provide the required additional samples within five (5) business days, or date specified in the request, whichever is later, after DAS PS request can result in Bidder disqualification.

Bidder may request the return of the Product Sample Submittal Requirements submitted. Bidder’s requesting returned samples must provide a self-addressed, postage-paid envelope, box, or container to return said samples. Return container must be submitted at the time of Product Sample Submittal Requirements submission. DAS PS will place samples into provided container, seal the container, and ship the samples to the address listed on the container within 60 days of the published Intent to Award Notice in OregonBuys.

Product Sample Submittal Requirements submitted that do not contain a return container will be considered property of the State.

Product Sample Submittal Requirement Delivery Format: Bidder shall submit its Product Sample Submittal Requirements in postage paid package addressed to the SPC which clearly identifies Bidder’s name and the ITB number. The required package must contain an envelope, addressed to the SPC with all Step Two required submittal forms and documents.

Product Sample Submittal Requirement Delivery Options: Bidder is solely responsible for ensuring its Product Sample Submittal Requirement package is received at DAS PS in accordance

Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

with the ITB requirements, by the Product Sample Submittal Requirement Due date. DAS PS shall not be responsible for any delays in submission or delivery.

Product Sample Submittal Requirement Modification: It is the responsibility of the Bidder to ensure modified Product Sample Submittal Requirements are submitted before the Product Sample Submittal Requirement Due date and time. DAS PS shall not be responsible for any delays in submission or delivery.

A Bidder wanting to make modifications to its Product Sample Submittal Requirements already submitted must withdraw its Product Sample Submittal Requirements and resubmit the modified version using the same submission method as outlined above.

Product Sample Submittal Requirement Withdrawal: It is the responsibility of the Bidder to ensure a notice to withdraw its Product Sample Submittal Requirements submitted before the Product Sample Submittal Requirements Due date and time. DAS PS shall not be responsible for any delays in submission or delivery of a notice to withdraw.

A Bidder wanting to withdraw its Product Sample Submittal Requirements already submitted must submit a notice to withdraw its Product Sample Submittal Requirements via email to the SPC. The withdraw notice must include

• Reference the OregonBuys ITB number, S-DASOBO-00004975,

• Bidder’s name and contact information,

• Sent by the Bidders’ authorized representative and,

• Be received by the SPC prior to the Product Sample Submittal Requirements Due date.

Oral, facsimile, telephonic, or hand delivered withdraws will not be accepted.

Late Product Sample Submittal Requirements: Late Product Sample Submittal Requirement submittals will NOT be accepted or evaluated. In the event a Product Sample Submittal Requirements is received but determined to be late, DAS PS is not obligated to return the submission to the respective Bidder.

Submit Product Sample Submittal Requirements to:

Department of Administrative Services, Procurement Services

Attn: Kim O’Neill

ITB # S-DASOBO-00004975

255 Ferry St. SW Salem, OR 97301

Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

REVISED ATTACHMENT H-1

PRODUCT SAMPLE AND SUBMITTAL REQUIREMENTS

(CONTINUED)

Bidder must Submit the Product Sample Submittal Requirements as indicated below. Submitted Product

Sample Submittal Requirements will be evaluated and tested using the criteria set forth in Attachment H-

2 (Evaluation and Testing).

Requirement Documents

• Submit Attachment C - Reference Check Form

• Submit Attachment G - Disclosure Exemption Certification (if applicable)

Requirement Statement

Submit a Statement indicating Proposer has read and agrees to conform with the following Specifications:

• Attachment I – Printing and Service Specifications, and

• Attachment I-1 – Stamp Type Specifications.

Counterfeit Detection

Submit the following counterfeit detection product samples:

• Submit a statement or pamphlet for each counterfeit detection device, indicating how to use the device and detailing the devices’ ability to detect counterfeit features.

• At least one device must include an invisible laser energy beam that detects tangent security features.

• Submit photographs of each counterfeit detection device demonstrating its ability to determine a counterfeit stamp.

Stamp Type 1 (Pad) Requirements

Perform a test run of 10 Stamp Type 1 stamps at a license cigarette distributor and photograph the test run.

• Submit one (1) Stamp Type 1 sample affixed stamp from the test run. The sample affixed stamp must be affixed to the cigarette cellophane or other packaging but does not need to contain the entire cigarette box or its contents.

• Submit one (1) Set of photographs of the Stamp Type 1 test run during the testing process.

• Submit one (1) Affidavit from whomever conducted the test run that the Bidder conducted test runs of Stamp Type 1 (Pads) and certification that the test was successful. (A successful test means

Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

that the stamps affixed without error to their intended cigarette packages.) Affidavit must include specifications of tool used to apply Stamp Type 1 test stamps to test cigarette packs.

• Submit one (1) Stamp Type 1 Sample Pad containing unaffixed sample stamps.

Stamp Type 2 (Large Roll) Requirements

Perform a test run of a minimum two (2) cartons of Stamp Type 2 stamps at a license cigarette distributor and photograph the test run.

• Submit tow (2) Sample Type 2 affixed stamp from the test run. The stamp must be affixed to the cigarette cellophane or other packaging but does not need to contain the entire cigarette box or its contents.

• Submit one (1) Set of photographs of the Stamp Type 2 test run showing two (2) cartons of affixed stamps during the test process.

• Submit one (1) Affidavit from whomever conducted the test process that the Bidder conducted test runs of Stamp Type 2 (Large Rolls) and certification that the test was successful. (A successful test means that the stamp rolls ran through the machine without error and the stamps affixed to their intended cigarette packages.) Affidavit must include specifications of machines used to apply

Stamp Type 2 test stamps to test cigarette packs.

• Submit one (1) Sample roll containing unaffixed samples of Stamp Type 2 test stamps.

Stamp Type 3 (Wide Rolls) Requirements

Perform a test run of a minimum of two (2) cartons of Stamp Type 3 stamps at a license cigarette distributor and photograph the test run.

• Submit two (2) Sample Type 3 affixed stamp from the test run. The stamp must be affixed to the cigarette cellophane or other packaging but does not need to contain the entire cigarette box or its contents.

• Submit one (1) Set of photographs of the Stamp Type 3 test showing two (2) cartons of affixed stamps during the test process.

• Submit one (1) Affidavit from whomever conducted the test process that the Bidder conducted test runs of Stamp Type 3 (Wide Rolls) and certification that the test was successful. (A successful test means that the stamp rolls ran through the machine without error and the stamps affixed to their intended cigarette packages.) Affidavit must include specifications of machines used to apply

Stamp Type 3 test stamps to test cigarette packs.

• Submit one (1) Sample roll containing unaffixed samples of Stamp Type 3 test stamps.

Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

REVISED ATTACHMENT H-2 –

EVALUATION AND TESTING

STEP 2 – PROCESS

Product Sample Submittal Requirements will be evaluated and tested as defined below:

SPC Evaluation of Product Sample Submittal Requirements:

The SPC will evaluate the submissions which meet the Product Sample Submittal Requirements defined in Attachment H -1. Product Sample Submittal Requirements will be evaluated by a pass/fails score.

Product Sample Submittal Requirements that receive one (1) Fail will be disqualified and will not be sent to the Evaluation team. The Bidder will not be able to continue in the ITB. Product Sample Submittal

Requirement that receives Passes for each criteria listed below will be sent to the Evaluation team for further evaluation and testing.

Evaluation Criteria of Submittal Requirement Documents

• Pass/Fail: Attachment C Completed and Submitted

• Pass/Fail: Attachment G Completed and Submitted

Evaluation Criteria of Submittal Requirement Statement

• Pass/Fail: Statement Submitted

• Pass/Fail: Statement Agrees to Conform to Specifications in Attachment I and Attachment I-1

Evaluation Criteria Counterfeit Detection Requirement

• Pass/Fail: Bidder Submitted statements or pamphlets for each of their counterfeit detection device.

• Pass/Fail: The statements or pamphlets indicated how to use the device and detail the devices’ ability to detect counterfeit features.

• Pass/Fail: At least one device must include an invisible laser energy beam that detects tangent security features.

• Pass/Fail: Bidder submitted photographs of each counterfeit detection device demonstrating its ability to determine a counterfeit stamp.

Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

Evaluation Criteria of Submittal Requirements Stamp Type 1 Samples and Documents

• Pass/Fail: Bidder performed a test run of Stamp Type 1 stamps at a license distributor.

• Pass/Fail: Bidder submitted one (1) Stamp Type 1 sample stamp from the test run, affixed to the cigarette cellophane or other packaging.

• Pass/Fail: Bidder submitted one (1) Set of photographs of the Stamp Type 1 test run during the test process.

• Pass/Fail: Bidder submitted one (1) Affidavit.

• Pass/Fail: The Affidavit certifies that the test was successful.

• Pass/Fail: The Affidavit includes specifications of the machines used in testing.

• Pass/Fail: Submit one (1) Stamp Type 1 Sample Pad containing unaffixed samples.

Evaluation Criteria of Submittal Requirements Stamp Type 2 Samples and Documents

• Pass/Fail: Bidder performed a test run of two (2) cartons of Stamp Type 2 stamps at a license distributor.

• Pass/Fail: Bidder submitted two (2) Stamp Type 2 sample stamps from the test run, affixed to the cigarette cellophane or other packaging.

• Pass/Fail: Bidder submitted one (1) Set of photographs of the Stamp Type 2 test run taken during the test process showing two (2) cartons of Type 2 Stamps affixed to packaging.

• Pass/Fail: Bidder submitted one (1) Affidavit.

• Pass/Fail: The Affidavit certifies that the test was successful.

• Pass/Fail: Bidder submitted one (1) Stamp Type 2 Sample roll containing unaffixed samples.

Evaluation Criteria Submittal Requirements Stamp Type 3 Samples and Documents

• Pass/Fail: Bidder performed a test run of two (2) cartons of Stamp Type 3 stamps at a license distributor.

• Pass/Fail: Bidder submitted two (2) Stamp Type 3 sample stamps from the test run, affixed to the cigarette cellophane or other packaging.

• Pass/Fail: Bidder submitted one (1) Set of photographs of the Stamp Type 3 test run taken during the test process showing two (2) cartons of Stamps affixed to packaging.

• Pass/Fail: Bidder submitted one (1) Affidavit.

• Pass/Fail: The Affidavit certifies that the test was successful.

• Pass/Fail: Bidder submitted one (1) Stamp Type 3 Sample roll containing unaffixed samples.

Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

Evaluation Team Evaluation and Testing:

The Evaluation team will evaluate and test Product Samples in accordance with each criteria listed below.

Samples that show the ability to meet the individual Specification, as specified below, and which meet the needs of the Agency will receive a Pass for that criterion. Samples that do not show the ability to meet the individual Specification, as specified below, and which do not meet the needs of the Agency will receive a

Fail. A Bidder who receives one (1) Fail will be disqualified to continue in the ITB.

The State reserves the right to test all Product and Samples submitted. The submitted test stamps may be tested on Oregon License Distributor Machines such as United Silicone, Red Stamp machines, or similar heat applied tax stamping machines with one or multiple heads for stamping the cartons.

Counterfeit Detection Device

• Pass/Fail: Photographs submitted show that the counterfeit detection devices detect the counterfeit feature(s) as specified in its respective statement or pamphlet.

• Pass/Fail: At least one device must show that it detects tangent features when exposed to an invisible laser energy beam.

Evaluation Testing of Stamp Type 1 Samples

Stamp Type 1: Specifications Pass Fail

(iii) Must measure approximately ½ inch x 5/8 inch.

(iv) Must be manufactured in Pads of 1,000 stamps:

a. A Pad must contain ten (10) sheets of one-hundred stamps per sheet.

b. Sheet layout must be ten (10) stamps across x ten (10) stamps long.

c. Each sheet must be consecutively numbered one (1) through ten (10).

d. Pads must be wire stitched at the top in such a manner to allow each sheet to be separated from the Pad for hand-stamp application.

(v) Stamps manufactured on Pads must contain a unique number designed in the following format:

a. A two 2-line, ten 10-digit, alphanumeric number (“unique number”) must be printed on each stamp.

b.

The first line of the unique number must begin with the capital letter “P” (for Pad) followed by a sequence of four 4-numbers indicating the Pad number (i.e., P0001, P0002, P0003 etc.) in sequential order.

c.

The second line of the unique number must include the stamp number in a five 5-number sequence, beginning with 00001 through 01000. Numbers increase from left to right and must be in sequential order.

d.

Stamp numbering must consecutively increase on each sheet of the Pad (i.e., Sheet 1:

#00001- 00100, Sheet 2: #00101-00200, Sheet 3: #00201 -00300 etc.)

Unique Number Example:

(Pad #) P0010 (Stamp #) 10100

Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

1.2.1 Design and Print Pass Fail

f Stamps must remain legible after adhesion to receiving surface g Stamps must be of irregular shape and outline. (uniform design, irregular shape) h Stamps must be genuine layer-build decal stamps consisting of at least five (5) impressions using the following security layers: Forensic, Covert, Semi-Covert and Overt.

i [I]

One security layer must include Stamps being printed on unique, safety-tinted, mill-controlled, colored (not-clear) paper furnished by the Contractor.

j [J]

One security layer must include Watermark Stamps having microprint features that cause photocopied / scanned and printed stamps to be unreadable.

k [K]

One security layer must include Stamps printed with a variable image, specified by Agency, using variable ink, and must be printed in the middle of each stamp or other location as specified by Agency.

l [L]

The Variable image must appear and disappear when viewed from different angles and must be unable to be photocopied.

[One security layer must include Watermark-Variable images that appear and disappear when viewed from different angles and cannot be photocopied.] m [M]

One security layer must include Watermark special safety tint lettering, specified by Agency, and must be arranged and printed such to prevent counterfeiting.

n [N]

Watermark Safety tint lettering must be printed as to appear on the face of each stamp, on the base paper, and must extend beyond each stamp’s boarder onto the receiving surface of which the stamp gets affixed to.

[Watermark and Safety tint lettering must be printed as to appear on the face of each stamp and on the base paper; safety tint lettering must extend beyond each stamp’s border and onto the paper on which the stamp gets affixed to.] o [O]

One security layer must be a taggant security feature printed on each Stamp. The taggant feature must emit a luminescence when exposed to an invisible laser energy beam.

p [P]

Stamps must contain at least three (3) different distinctive colors. Halftones, bed-day effects, shades, tints or tones of a color or colors, and safety tint lettering, will not be acceptable or considered as separate and distinctive colors.

Evaluation Testing of Stamp Type 2 Samples

Stamp Type 2: Specifications Pass Fail

(iii) Must measure approximately ½ inch x ½ inch.

(iv) Must be manufactured on Large Rolls of 30,000 stamps:

a. A Large Roll layout must contain ten (10) stamps across x 3,000 stamps long.

b. Each Large Roll must be consecutively numbered.

(v) Stamps manufactured on Large Rolls must contain a unique number designed in the following format

a. A two 2-line, ten 10-digit, alphanumeric number (“unique number”) must be printed on each stamp.

Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

The first line of the unique number must begin with the capital letter “R” (for Roll) followed by a sequence of four 4-numbers indicating the Roll number (i.e., R0001, R0002, R0003 etc.) in sequential order.

number sequence, beginning with 00001 through 30000. Numbers increase from left to right and must be in sequential order.

Stamp numbering must consecutively increase on each stamp (i.e., 00001, 00002, 00003 etc.)

Unique Number Example:

(Large Roll #) R0001 (Stamp #) 10100

1.2.1 Design and Print Pass Fail

f Stamps must remain legible after adhesion to receiving surface g Stamps must be of irregular shape and outline. (uniform design, irregular shape) h Stamps must be genuine layer-build decal stamps consisting of at least five (5) impressions using the following security layers: Forensic, Covert, Semi-Covert and Overt.

One security layer must include Watermark Stamps having microprint features that cause

One security layer must include Stamps printed with a variable image, specified by

The Variable image must appear and disappear when viewed from different angles and must be unable to be photocopied.

One security layer must include Watermark special safety tint lettering, specified by Agency, and must be arranged and printed such to prevent counterfeiting.

Watermark Safety tint lettering must be printed as to appear on the face of each stamp, on the base paper, and must extend beyond each stamp’s boarder onto the receiving surface of which the stamp gets affixed to.

[Watermark and Safety tint lettering must be printed as to appear on the face of each o One security layer must be a taggant security feature printed on each Stamp. The taggant feature must emit a luminescence when exposed to an invisible laser energy beam.

Stamps must contain at least three (3) different distinctive colors. Halftones, bed-day

Evaluation Testing of Stamp Type 3 Samples

Stamp Type 3: Specifications Pass Fail

(iii) Must measure approximately ½ inch x ½ inch.

Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

(iv) Must be manufactured on Large Rolls of 7,200 stamps:

a. A Wide Roll layout must contain ten (10) stamps across x 720 stamps long.

b. Each Wide Roll must be consecutively numbered.

(v) Stamps manufactured on Wide Rolls must contain a unique number designed in the following format

a. A two 2-line, ten 10-digit, alphanumeric number (“unique number”) must be printed on each stamp.

The first line of the unique number must begin with the capital letter “W” (indicating Wide) followed by a sequence of four 4-numbers indicating the Wide Roll number (i.e., W0001, W0002, W0003 etc.) in sequential order.

number sequence, beginning with 00001 through 7200. Numbers increase from left to right and must be in sequential order.

Stamp numbering must consecutively increase on each stamp (i.e., 00001, 00002, 00003 etc.)

Unique Number Example:

(Wide Roll #) W0001 (Stamp #) 00100

1.2.1 Design and Print Pass Fail

f Stamps must remain legible after adhesion to receiving surface g Stamps must be of irregular shape and outline. (uniform design, irregular shape) h Stamps must be genuine layer-build decal stamps consisting of at least five (5) impressions using the following security layers: Forensic, Covert, Semi-Covert and Overt.

One security layer must include Stamps having microprint features that cause

One security layer must include Stamps printed with a variable image, specified by

The Variable image must appear and disappear when viewed from different angles and must be unable to be photocopied.

One security layer must include Watermark special safety tint lettering, specified by Agency, and must be arranged and printed such to prevent counterfeiting.

Watermark Safety tint lettering must be printed as to appear on the face of each stamp, on the base paper, and must extend beyond each stamp’s boarder onto the receiving surface of which the stamp gets affixed to.

[Watermark and Safety tint lettering must be printed as to appear on the face of each

Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

o One security layer must be a taggant security feature printed on each Stamp. The taggant feature must emit a luminescence when exposed to an invisible laser energy beam.

Stamps must contain at least three (3) different distinctive colors. Halftones, bed-day

Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

REVISED Attachment I –

Printing and Service Specifications

Stamp Types:

Stamp Type 1: OR-20SH100_”20” denomination (P) A Pad - 1,000 stamps (ten (10) sheets of 100 stamps) For packs containing 20 cigarettes, Applied by hand using heat iron tool.

Stamp Type 2: OR-2030_”20” denomination (R) A Large Roll - 30,000 stamps For packs containing 20 cigarettes, Applied by machine.

Stamp Type 3: OR-2072_”20” denomination, wide (W) A Wide Roll - 7,200 stamps For packs containing 20 (wide) cigarettes, Applied by machine.

Stamp Type 4: OR-2572_”25” denomination (M) A Roll 7,200 stamps Marlboro’s/25’s For packs containing 25 cigarettes (represents the higher tax rate as the pack has 5 extra cigarettes), Applied by machine.

The end of this page is intentionally left blank.

Printing and Service Specifications can be found on the next page.

Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

Bidder must have the ability to manufacture cigarette tax stamps (“stamps”) that comply with the following specifications:

SPECIFICATIONS

DESIGNS AND PRINT

a) Stamps must be affixed to a release type carrier (base paper).

b) Stamps must be capable of application with heat to the receiving surface such as cellophane, paper, etc.

c) Stamps must be applicable with high-speed stamping machines or by hand with a heat iron tool.

d) Stamps must be compatible and applicable with stamping equipment currently in operation by Oregon’s Licensed Distributors.

e) Stamps must securely and permanently adhere to receiving surface. Once the stamp has been adhered to the intended surface it must remain affixed in a manner that cannot be removed by lifting, peeling, using a sharp edge, using a tacky product such as tape, or any other method without destruction of the Stamp.

f) Stamps must remain legible after adhesion to receiving surface.

g) Stamps must be of irregular shape and outline. (uniform design, irregular shape)

h) Stamps must be genuine layer-build decal stamps consisting of at least five (5) impressions using the following security layers: Forensic, Covert, Semi-Covert and Overt.

i) One security layer must include Stamps being printed on unique, safety-tinted, mill-controlled, colored (not-clear) paper furnished by the Contractor.

j) One security layer must include Stamps having microprint features that cause photocopied / scanned and printed stamps to be unreadable.

k) One security layer must include Stamps printed with a variable image, specified by Agency, using variable ink, and must be printed in the middle of each stamp or other location as specified by Agency.

l) The Variable image must appear and disappear when viewed from different angles and must be unable to be photocopied.

[One security layer must include Watermark-Variable images that appear and disappear when viewed from different angles and cannot be photocopied.]

m) One security layer must include Watermark special safety tint lettering, specified by Agency, and must be arranged and printed such to prevent counterfeiting.

Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

n) Watermark Safety tint lettering must be printed as to appear on the face of each stamp, on the base paper, and must extend beyond each stamp’s boarder onto the receiving surface of which the stamp gets affixed to.

[Watermark and Safety tint lettering must be printed as to appear on the face of each stamp and on the base paper; safety tint lettering must extend beyond each stamp’s border and onto the paper on which the stamp gets affixed to.]

o) One security layer must be a taggant security feature printed on each Stamp. The taggant feature must emit a luminescence when exposed to an invisible laser energy beam.

p) Stamps must contain at least three (3) different distinctive colors. Halftones, bed-day effects, shades, tints or tones of a color or colors, and safety tint lettering, will not be acceptable or considered as separate and distinctive colors.

COUNTERFEIT DETECTION

a) Contractor must provide [a minimum of three (3) types of] counterfeit-detection devices which quickly detect counterfeit cigarette tax stamps.

b) At least one device must include an invisible laser energy beam that detects taggant security features.

c) Contractor must test any cigarette tax stamp suspected to be counterfeit.

PRODUCTION AND DESIGN CONTROL

a) Contractor shall not produce any Oregon Cigarette tax stamps without the written approval of Agency.

b) Agency must approve all aspects of the stamp production including quality, security features, design, color, characters, location of characters, paper quality, paper manufacturer, and any changes to the stamp production features.

c) Agency must approve all aspects of destruction including, process, notification, recordkeeping, and certification.

d) Contractor shall not make any changes to stamps, or the production of stamps, including paper manufactures, without prior written approval from Agency. Such approval may not to be unreasonably withheld, conditioned, or delayed.

e) Contractor shall suggest new stamp designs and colors for Agency review only at the request of Agency.

f) Contractor shall not charge for design and color suggestions.

g) Contractor must supply Agency with samples of any new stamp design for review and evaluation.

h) Contractor shall not commence production of new stamps without Agency approval.

i) Contractor shall account for all spoiled rolls and shall identify them as “not in circulation.”

Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

CUSTODY, ACCOUNTING, PRODUCTION, AND DESTRUCTION

a) Contractor shall have custody and maintain accurate records to account for all production materials to prevent the theft, reproducing, manufacturing, or printing of Oregon’s cigarette tax stamps. (production materials include, records, paper, stamps, spoilage, books, specifications, photographs, negatives, positive impressions, drawings, dies, inks, plates, printing stones, and all other property, equipment, or records not included in this list.)

b) Contractor shall provide Agency an accurate account of all paper, stamps, rolls, pads, sheets, spoilage, and all material as requested by Agency (i.e., with invoices).

c) Contractor shall identify all spoilage of stamps, pads, and rolls as “not in circulation” as part of accounting, record keeping, reports and documentation given to Agency.

d) Contractor understands that all material and equipment used in the production of Oregon’s stamps shall become the property of the State, and upon Agency’s written request all such material and equipment must be turned over to Agency or destroyed at Agency’s direction.

e) Contractor shall store production equipment and materials in a secure place of storage when they are not in use. The secure place of storage must be approved by Agency. Contractor shall return all equipment and materials to the designated secure place of storage upon completion of order production. (production equipment and materials include, records, paper, stamps, spoilage, books, specifications, photographs, negatives, positive impressions, drawings, dies, inks, plates, printing stones, and all other property, equipment, or records not included in this list.)

f) Contractor shall store completed stamps in a secure place of storage while awaiting shipment.

The secure place of storage for completed stamps must be approved by Agency.

g) Contractor shall allow Agency’s authorized agents access to Contractor’s facilities to observe and inspect the entire production. Agency’s authorized agents shall be accorded all privileges and assistance in carrying out this function of Agency stamps, from receipt of materials, through printing, manufacturing, storage, spoilage, records, books, and processing of the stamps for delivery, through finished stamps prior to sealing of boxes prepared for shipment.

a)

h) Contractor shall provide destruction services of spoilage, material and equipment in a manner approved by Agency and shall provide documentation of destruction, to Agency in the manner of Agency’s choosing. The destruction process and procedures will be discussed and agreed to in writing between Agency and Contractor prior to any destruction services taking place.

Destruction services may include 30-day notification prior to destruction, ability for Agency’s authorized personnel to witness the destruction, notarized affidavit of destruction, video of destruction, confirmation of destruction within 72 hours of destruction being complete, Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

certified destruction process, or other process and procedures as agree to in writing by Agency and Contractor.

i) Contractor shall accord Agency’s authorized agents all privileges, assistance, and access to view and inspect the method and the destruction of spoilage of stamps and equipment.

Destruction and method of destruction must be approved by Agency.

j) Contract shall agree that the use of all production material (i.e., samples or templates) must be used solely for this Price Agreement and subsequent orders, if any.

k) Contractor shall agree that all printing and manufacturing services are performed by Contractor and that no part of the Agreement or Services will be subcontracted, outsourced, or sublet out without the prior written consent of Agency.

l) Contractor shall agree that all printing and manufacturing services are performed within the premises of the Contractor’s facility and shall not be changed without the prior written consent of Agency.

m) Contractor shall closely supervise the manufacturing, production, and shipment of all Oregon tax Stamps.

n) Contractor shall not permit employees or others to enter or leave the building or the production area, where Oregon tax Stamps are being produced, until first assuring that all Stamps, equipment, and materials used in the production of the Stamps are properly accounted for.

o) Contractor shall have and maintain the equipment and resources necessary to fulfil the requirements of this Price Agreement and must provide evidence of such to Agency upon request.

PACKAGING, SHIPPING, AND DELIVERY

a) Cardboard boxes and corrugated shipping cartons must be packaged as to not have any slack space that allows crushing or distortion from palletizing or stacking.

b) Cardboard boxes and corrugated Shipping cartons must be durable in construction so that they may be reshipped without further reinforcement.

c) Contractor shall ship all shipments by bonded carrier, insured and prepaid.

d) Contractor shall ship all shipments via fob destination.

e) Title of shipment shall not pass until the Oregon Tax Stamps are received by Agency or Oregon's approved License Distributors.

f) Contractor is responsible for safe and proper delivery of all Oregon Tax Stamps.

g) Contractor shall only ship Oregon Tax Stamps to Agency, or Oregon’s License Distributors.

Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

QUANTITY AND AVAILABILITY OF STOCK LEVEL

a) Contractor shall maintain stock of all stamps and shall notify Agency when stock of any stamp reaches [the] an estimated 2-month supply or at other points as Agency determines is needed to assure availability of stock.

Estimated two-month supply for stock purposes:

Stamp Type 1 – 20,000 to 26,000;

Stamp Type 2 – 8,00,000 to 10,00,000;

Stamp Type 3 – 25,000 to 30,000;

Stamp Type 4 – 30,000 to 40,000.

b) Contractor shall fulfill up to a three (3) month supply of stamps if requested by Agency or Oregon’s License Distributors prior to a change in stamp design or prior to the expiration of the Price Agreement.

PROHIBITED DISTRIBUTION OF STAMP

a) Contractor shall not have the right to furnish any Oregon cigarette tax stamps or Oregon cigarette tax stamp samples manufactured under the Price Agreement to any individual or another agency, other than Agency and Oregon’s Licensed Distributors without the express prior written consent of Agency.

b) Contractor shall immediately notify Agency if Contractor detects, becomes aware of, or suspects that, Oregon cigarette tax stamps are being counterfeited or stamps are lost or stolen.

c) Contractor shall be required to help Agency with enforcement of the Tax Code and guard against illegal reproduction or counterfeiting of the cigarette tax stamps.

d) Contractor shall have the ability to perform direct to distributor shipment to Oregon’s License Distributors.

e) Contractor shall have the ability to interface with Agency’s online ordering system, (Revenue Online) (GenTax®) and be capable of exchanging data through an xml file. Contractor’s interface must be completed within 8 weeks of Price Agreement execution.

f) Contractor shall only produce, and ship stamps as ordered by Agency or Oregon’s Licensed Distributor via the Department of Revenue’s Online order system (Revenue Online) (GenTax®).

Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

REVISED Attachment I-1

Stamp Type Specifications

Stamp Type 1

PAD, OR-20SH100_”20” DENOMINATION (P)

STAMPS MUST BE SOLD IN FULL PADS, THE SMALLEST SALE UNIT IS ONE PAD.

Stamp sold in Pads must be manufactured as follows:

1.2.1 Must be able to be applied to a cigarette package in a standard carton configuration.

1.2.2 Must be able to be manually applied using a heat iron tool.

1.2.3 Must measure approximately ½ inch x 5/8 inch.

12.4 Must be manufactured in Pads of 1,000 stamps:

a) A Pad must contain ten (10) sheets of one-hundred stamps per sheet.

b) Sheet layout must be ten (10) stamps across x ten (10) stamps long.

c) Each sheet must be consecutively numbered one (1) through ten (10).

d) Pads must be wire stitched at the top in such a manner to allow each sheet to be separated from the Pad for hand-stamp application.

1.2.5 Stamps manufactured on Pads must contain a unique number designed in the following format:

a) A two 2-line, ten 10-digit, alphanumeric number (“unique number”) must be printed on each stamp.

b) The first line of the unique number must begin with the capital letter “P” (for Pad) followed by a sequence of four 4-numbers indicating the Pad number (i.e., P0001, P0002, P0003 etc.) in sequential order.

c) The second line of the unique number must include the stamp number in a five 5-number sequence, beginning with 00001 through 01000. Numbers increase from left to right and must be in sequential order.

d) Stamp numbering must consecutively increase on each sheet of the Pad. (i.e., Sheet 1: #00001- 00100, Sheet 2: #00101-00200, Sheet 3: #00201 -00300 etc.)

Unique Number Example:

(Pad #) P0010 (Stamp #) 10100

e) Unique numbers must not be repeated.

1.2.6 Stamps manufactured in Pads must be packaged as follows:

a) Ten (10) Pads must be packaged in a cardboard box.

Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

b) Pads must be arranged in ascending stamp number order with the lowest numbered Pad at the top of the box and highest numbered Pad at the bottom of the box.

c) The outside of the cardboard box must display its contents including, the quantity of stamps, the denomination of the stamps, and the first and last consecutive Pad numbers.

d) The total order of cardboard boxes of Pads must then be packed in a corrugated shipping container.

e) The outside of the corrugated shipping container must display its contents, including the quantity of stamps, the denomination of the stamps, and the first and last consecutive Pad numbers. (i.e., Pad #P0001 – Pad #P2500)

Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

REVISED Attachment I-2

Stamp Type 2

LARGE ROLL, OR-2030_”20” DENOMINATION (R)

STAMPS MUST BE SOLD IN FULL ROLLS, THE SMALLEST SALE UNIT IS ONE LARGE ROLL.

Stamps sold in Large Rolls must be manufactured as follows:

1.3.1 Must be able to be applied to a cigarette package in a standard carton configuration.

1.3.2 Must be able to be applied by machine.

1.3.3 Must measure approximately ½ inch x ½ inch.

1.3.4 Must be manufactured on Large Rolls of 30,000 stamps:

a) A Large Roll layout must contain fifteen (15) stamps across x 2,000 stamps long.

b) Each Large Roll must be consecutively numbered.

1.3.5 Stamps manufactured on Large Rolls must contain a unique number designed in the following format:

a) A two 2-line, ten 10-digit, alphanumeric number (“unique number”) must be printed on each stamp.

b) The first line of the unique number must be a sequence of five 5-numbers indicating the Large Roll number (i.e., 00001, 00002, 00003 etc.) in sequential order.

c) The second line of the unique number must include the stamp number in a five 5-number sequence, beginning with 00001 through 30000. Numbers increase from left to right and must be in sequential order.

d) Stamp numbering must consecutively increase on each stamp (i.e., 00001, 00002, 00003 etc.)

Unique Number Example:

(Large Roll #) 00001 (Stamp #) 10100

e) Unique numbers must not be repeated.

1.3.6 Each Large Roll must indicate a stamp count, at regular intervals, on the base paper of the Large Roll.

a) Each Large Roll must have a base paper that the stamps are contained on. The stamp layout must have a break between stamps, at regular numeric intervals, where the stamp count is shown on the base paper, between the stamps.

b) The stamp count shown on the base paper at each break, must identify the stamp quantity in ascending and descending order to identify the number of stamps used and the number of

Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

stamps remaining on the Large Roll. Ascending stamp numbers show the quantity of stamps used and the descending stamp numbers show the quantity of stamps remaining on the Large Roll. (i.e., Ascending stamp quantity # 004000 (stamps used) Descending stamp quantity # 29,600 (stamps remaining))

c) Intervals for stamp counts must be specified by Agency.

1.3.7 Stamps manufactured in Large Rolls must be packaged as follows:

a) Each Large Roll must be packaged in a cardboard box.

b) The outside of the cardboard box must display its contents including, the quantity of stamps, the denomination, and the Large Roll number.

c) Twenty-five (25) carboard boxes of Large Rolls must then be packed in a corrugated shipping container.

d) The outside of the corrugated shipping container must clearly identity its contents, including, the quantity of stamps, the denomination of the stamps, the quantity of Large Rolls, and the beginning and ending Large Roll numbers contained therein. (i.e., Large Roll #1 – Large Roll #25)

Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

REVISED Attachment I-3

Stamp Type 3

WIDE ROLL, OR-2072_”20” DENOMINATION, WIDE (W)

STAMPS MUST BE SOLD IN FULL ROLLS, THE SMALLEST SALE UNIT IS ONE WIDE ROLL.

Stamps sold in Wide Rolls must be manufactured as follows:

1.4.1 Must be able to be applied to a cigarette package in a wide carton configuration. (i.e. - such as Camel Wide Cigarettes)

1.4.2 Must be able to be applied by machine.

1.4.3 Must measure approximately ½ inch x ½ inch.

1.4.4 Must be manufactured on Wide Rolls of 7,200 stamps:

a) A Wide Roll layout must contain ten (10) stamps across x 720 stamps long.

b) Each Wide Roll must be consecutively numbered.

1.4.5 Stamps manufactured on Wide Rolls must contain a unique number designed in the following format:

a) A two 2-line, ten 10-digit, alphanumeric number (“unique number”) must be printed on each stamp.

b) The first line of the unique number must begin with the capital letter “W” (indicating Wide) followed by a sequence of four 4-numbers indicating the Wide Roll number (i.e., W0001, W0002, W0003 etc.) in sequential order.

c) The second line of the unique number must include the stamp number in a five 5-number sequence, beginning with 00001 through 07200. Numbers increase from left to right and must be in sequential order.

d) Stamp numbering must consecutively increase on each stamp. (i.e., 00001, 00002, 00003 etc.)

Unique Number Example:

(Wide Roll #) W0001 (Stamp #) 00100

e) Unique numbers must not be repeated.

1.4.6 Each Wide Roll must indicate a stamp count, at regular intervals, on the base paper of the Wide Roll.

a) Each Wide Roll must have a base paper that the stamps are contained on. The stamp layout must have a break between stamps, at regular numeric intervals, where the stamp count is shown on the base paper, between the stamps.

Addendum No. 4 to ITB No. S-DASOBO-00004975 – Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution.

d) The stamp count shown on the base paper at each break, must identify the stamp quantity in ascending and descending order to identify the number of stamps used and the number of stamps remaining on the Wide Roll. Ascending stamp numbers show the quantity of stamps used and the descending stamp numbers show the quantity of stamps remaining on the Wide Roll. (i.e., Ascending stamp quantity # 4000 (stamps used) Descending stamp quantity # 3200 (stamps remaining))

b) At each interval the base paper must show ascending stamp numbers to identify the amount of stamps used and descending stamp numbers to identify the amount of stamps remaining in on the roll. (i.e., Ascending # 004000 (stamps used) Descending # 3,200 (stamps remaining))

c) Intervals for stamp counts must be specified by Agency.

1.4.7 Stamps manufactured in Wide Rolls must be packaged as followings:

a) Each Wide Roll must be packaged in a cardboard box.

b) The outside of the cardboard box must display its contents including, the quantity of stamps, the denomination of the stamps, and the Wide Roll number.

c) Forty-nine (49) carboard boxes of Wide Rolls must then be packed in a corrugated shipping container.

d) The outside of the corrugated shipping container must clearly identity its contents, including, the quantity of stamps, the denomination of…