Amend 1- ITB 2026-0400-0266- Heat Applied Cigarette Tax Stamps.pdf

STATE OF ALASKA

Department of Revenue Tax Division

Heat Applied Cigarette Tax Stamps

RFP # 2026-0400-0266

Amendment # 1 4/15/2026

This amendment is being issued to provide a response to submitted questions on RFP, adjust the RFP schedule, and provide updated sections that have material changes provided to them as a result from submitted questions.

Important Note to Offerors: You must sign and return this page of the amendment document with your proposal.

Failure to do so may result in the rejection of your proposal. Only the RFP terms and conditions referenced in this amendment are being changed. All other terms and conditions of the RFP remain the same.

Procurement Officer Kristie Ely Phone: (907) 465-2313 Email: Kristie.ely@alaska.gov COMPANY SUBMITTING PROPOSAL

AUTHORIZED SIGNATURE

DATE

Please see the below updated ITB Schedule:

ACTIVITY TIME DATE

Issue Date / ITB Released April 1, 2026 Deadline for Receipt of Questions 2pm, AST April 8, 2026 Deadline for Receipt of Bids / Bid Due Date 3pm, AST April 27, 2026 Bid Evaluations Complete April 28, 2026 Notice of Intent to Award April 29, 2026 Contract Issued May 1, 2026

Below is the States response to submitted questions on ITB:

ITB Section Page# ITB SEC. 1.06 – Questions

IMPORTANT

NOTICE 1 How does one register with the procurement officer in order to receive notifications of subsequent amendments to the solicitation?

Answer:

Per Section 1.11, the ITB states:

“If a bidder received this solicitation from the State of Alaska’s Online Public Notice website, and you wish to receive notification of any subsequent amendments, you must register with the Procurement Officer.

Therefore, registration is accomplished by contacting the procurement officer directly using the contact information provided in the ITB.

BIDDER’S

NOTICE (1) 1

(1) “the license number must be written below”.

Where should the Alaska business license number be included to ensure compliance.

Answer:

Per the front-page Bidder’s Notice, the ITB states:

“…the license number must be written below.”

The Alaska Business License number must be written on the front page of the bid document or written in the space provided directly below the Bidder's Notice Certification on the ITB cover page.

Sec. 1.04 4

This section requires samples of cancelled heat-applied cigarette tax stamps that are currently in use by at least 3 government agencies.

Our contract with government agency customers do not allow that we provide samples of their cancelled stamps.

Would the State accept samples of stamps that include all of the proposed security features but that are not the specific stamp design being used by another government agency?

Answer: Yes.

Sec. 2.01 #7 9

One of the required security features is a "Reagent". This is a feature unique to a single supplier and as such it eliminates fair and open competition. Will the State remove this requirement, or at a minimum allow the bidder to offer a functionally equivalent security feature?

Answer:

Yes. The State will accept a functionally equivalent covert security feature in place of a proprietary chemical reagent. To ensure fair and open competition while maintaining the necessary level of security, the State provides the following clarification of what will be considered “equivalent.”

A proposed alternative must allow State inspectors to perform a physical, covert test that reliably determines whether a stamp is valid or counterfeit. At a minimum, an equivalent feature must:

Be covert (not visible or detectable without specialized knowledge or tools).

Enable a physical verification method, performed by State personnel, that produces a clear, affirmative result confirming stamp authenticity.

Provide similar or greater security value when compared to a chemical reagent test; that is, it must prevent unauthorized reproduction and support straightforward identification of counterfeit stamps.

Be vendor-supported, meaning the bidder must fully describe:

• how the test is performed,

• what equipment or tools (if any) are required, and

• what training or instructions will be provided to the State.

Be included in the bidder’s confidential security statement required under Sec.

1.04 and Sec. 2.01 #7, with sufficient detail for the State to evaluate functional equivalence.

The State will evaluate equivalency based on the proposed feature’s ability to allow inspectors to make a reliable, repeatable, physical determination of stamp validity that is not easily defeated or replicated

Sec. 2.01 #2 8 Price – “Offeror must submit net prices per fifteen thousand (15,000) stamps.

And Attachment One (1); Bid Sheet – Unit in the bid sheet is A Case (540,000 stamps/case).

Attachment 1 Bid Sheet Can the state confirm the “Unit Price” in the Bid Sheet should be the price for one

(1) case of 540,000 stamps?

Answer: Per Section 2.01(2), the ITB states:

“Offeror must submit net prices per fifteen thousand (15,000) stamps.”

Per Attachment One (Bid Sheet), the ITB states:

“Unit: Case (540,000 stamps/case)” and requires the bidder to enter a Unit Price per case.

Clarifying statement:

Because the Bid Sheet defines the unit of issue as a case, the required Unit Price is the price per one case (540,000 stamps), boxes must be of 15,000 stamps each, making 36 boxes per "case".

Attachment 1 Bid Sheet 31

Attachment One (1); Bid Sheet – “Orders will be issued throughout the contract period on an as-needed basis.”

Does the State expect more than one order per year shipping f.o.b. destination Anchorage AK?

Answer: The State expects to process orders twice a year on this agreement unless there is an emergent need to do a additional order during the year.

Sec. 2.01 #5 8

Paper – “The name of the manufacture of the paper stock is to be furnished with the proposal.”

Public release of the name on the paper manufacturer would result in a loss of security for the State as counterfeiters would have access to a key component. Public release of this would also provide our competitors with valuable information and put us at a competitive disadvantage. Will the State remove the requirement to provide the name of our paper manufacturer or at a minimum allow this to be provided as confidential information that will not be released as a result of a Freedom of Information Request?

Answer:

Per Section 2.01(5), the ITB states:

“The name of the manufacturer of the paper stock is to be furnished with the proposal.”

Per Section 5.15, the ITB states:

“If the bidder designates specific documents as confidential, the bidder must identify the legal authority… the State will not disclose information designated as confidential except as required by law.”

The requirement to provide the paper manufacturer must still be met, bidders may submit the name as confidential according to Sec. 5.15.

Sec. 2.01 #3 8

Designs and colors – “Offerors must submit with proposal, and without charge, suggested designs and colors.”

Will the State provide an image of the current stamp designs and/or additional information on the copy that must be included on each of the stamp versions, “20” and “NPM”?

Answer: Yes images of the current stamp designs can be provided

Sec. 4.13 22

Method of Award – “Award will be made by line item to the lowest responsive and responsible bidder.”

Can the State clarify how the pricing for each line item in the Attachment One (1) Bid Sheet will be delineated to determine lowest responsive bidder?

Answer:

The state is amending Sec. 4.13 to read as follows: "Method of Award- Award will be made to the lowest, responsive bidder." Bids will be evaluated over their total cost for both line items.

Section 1.04 Required Experience

Can the Agency confirm 1) how many cancelled samples are required for each of the three government agencies, and (2) that cancelled samples, if using a delivery service, be mailed to:

Department of Revenue Administrative Services Division Attention: Kristie Ely (ITB) Number: 2026-0400-0266 Heat Applied Cigarette Tax Stamps 333 Willoughby Avenue, 11th Floor Juneau, AK 99801

Answer:

Per Section 1.04, the ITB states:

“Samples of cancelled heat-applied cigarette tax stamps that are currently in use by at least three government agencies must be submitted…” Per Section 1.08, the ITB states:

“If using a delivery service, deliver to: Department of Revenue Administrative Services Division… 333 Willoughby Avenue, 11th Floor, Juneau, AK 99801.”

The ITB requires samples from three agencies, but does not specify quantity per agency. One cancelled sample per agency meets the requirement.

Section 2.01, Section 7.

Protection

8 & 9

The ITB specifies that required security features must include, at a minimum, “chemical reagent compatibility” or "Equivalent" as part of the covert security elements

Please confirm whether the State requires that the offered cigarette tax stamps:

1. Are compatible with chemical reagent used to detect counterfeit stamps in the field or laboratory, and

2. Demonstrate a visible, measurable, or verifiable reaction when tested with such reagent.

Additionally, please clarify whether bidders are required to:

Describe the specific chemical reagent detection method in their confidential security statement, and

Provide documented evidence or prior state use demonstrating successful implementation of chemical reagent–based authentication.

Answer: Confirm 1 and 2. and also yes, bidders are required to describe the detection method and provide evidence of successful implementation.

Section 1.04

The submission requires a separate confidential statement describing the bidder’s system for protection against unlawful reproduction and methods of detection.

Prior Experience, Security Statement Requirement

Please confirm whether a bidder’s failure to address each minimum security feature listed in Section 2.01, Item 7 (page 9), including chemical reagent compatibility, would render the bid non-responsive, even if other security features are present.

Answer: Failure to address each minimum security feature listed, would render the bid non-responsive. Please review the updated Sec. 2.01 #7 In this amendment.

Section 4.15 Notice of Intent to Award

Based on Section 4.15 (Notice of Intent to Award), can the Agency confirm whether the Notice of Intent to Award is the bid tabulation identifying the apparent low responsive bidder? Additionally, will this Notice be the sole method of award notification, or will the award be posted or communicated elsewhere? If so, please indicate where vendors can view the award information.

Answer: Per Section 4.15, the ITB states:

“A Notice of Intent to Award (NOIA) will be issued… providing the bidder(s) indicated their solicitation results. A copy will be sent to each company or person who responded.” 1 The NOIA functions as the bid tabulation and is the formal method of notifying bidders of intent to award.

Please see the updated ITB sections in order:

1. Section 2.01 #7: PROTECTION: All stamps and paper must contain proven protective features to guard against illegal reproduction. This will include security features that permit laboratory identification of inks. Offeror shall submit a separate confidential detailed statement explaining fully their system for the protection of the State against unlawful reproduction and the method by which such reproduction can be detected by inspectors of the State. This statement will remain confidential. Statement must address the minimum security requirements for the proposed cigarette tax stamps. Application method for all cigarette tax stamps must be heat-applied. Required security features on all stamp types must include, at a minimum, the following overt, semi-covert, and covert security elements:

a. Roll numbering

b. Individual stamp numbering

c. UV watermark

d. Variable image

e. Taggants

f. Chemical reagent compatibility

i. A proposed alternative for the chemical reagent compatibility must allow State inspectors to perform a physical, covert test that reliably determines whether a stamp is valid or counterfeit. At a minimum, an equivalent feature must:

1. Be covert (not visible or detectable without specialized knowledge or tools).

2. Enable a physical verification method, performed by State personnel, that produces a clear, affirmative result confirming stamp authenticity.

3. Provide similar or greater security value when compared to a chemical reagent test; that is, it must prevent unauthorized reproduction and support straightforward identification of counterfeit stamps.

4. Be vendor‑supported, meaning the bidder must fully describe:

a. how the test is performed,

b. what equipment or tools (if any) are required, and

c. what training or instructions will be provided to the State.

5. Be included in the bidder’s confidential security statement required under Sec. 1.04 and Sec. 2.01 #7, with sufficient detail for the State to evaluate functional equivalence.

6. The State will evaluate equivalency based on the proposed feature’s ability to allow inspectors to make a reliable, repeatable, physical determination of stamp validity that is not easily defeated or replicated

These features collectively provide layered protection and help ensure the integrity of the tax stamp program.

Section 4.13: Award will be made to the lowest responsive, responsible bidder.