Att K - SOW .docx

SOLICITATION TYPE: RFP 26-87895

Exhibit 1

STATEMENT OF WORK

I. EXECUTIVE SUMMARY

It has come to the Indiana Alcohol and Tobacco Commission (ATC)’s attention that there is a rapidly expanding market of retail Tetrahydrocannabinol (THC) products sold by regulated businesses. While “smokable hemp” is illegal and can be confiscated without testing, most THC products, such as edibles, tinctures, and e‑liquids, require certified laboratory analysis to determine whether they exceed the legal 0.3% Delta‑9 THC limit. ATC field experience shows many products contain unlawful THC levels, reinforcing the need for reliable lab testing to support enforcement actions and criminal referrals. To meet these obligations, ATC seeks to contract with a qualified, accredited laboratory capable of accurately testing a wide variety of cannabinoid products.

II. BACKGROUND AND CURRENT STATE

Ensuring compliance with state laws related to the sale of intoxicating substances is among the ATC’s core functions. Historically, intoxicating products distributed by ATC permit and certificate holders were limited to alcohol and tobacco consumables. Over the last five (5) years the prevalence of retail THC products on the shelves of Indiana businesses has grown exponentially. Today, most tobacco certificate holders regulated by ATC sell THC products, including edibles, e-liquid, tinctures, wax, flower, and beverages. As such, the enforcement of state and federal limits on THC content in consumer cannabis products has become an increasingly important part of ATC’s regular administrative and criminal compliance activities.

Products that qualify as “smokable hemp” are per se illegal under Indiana law and can be confiscated by ATC administratively, regardless of Delta-9 THC concentration, and without an underlying lab test. However, most products sold by certificate holders are non-flower products, like edibles and e-liquids. These products are legal under Indiana law if they contain no more than 0.3% Delta-9 THC. As such, to confiscate, administratively cite, or make criminal referrals related to non-flower THC products, ATC must obtain a laboratory test of the THC content to determine legality. Criminal prosecution of individuals or businesses for the possession or sale of THC flower products also requires a laboratory test.

In the agency’s experience, a significant ratio of THC products found in Indiana convenience stores and other retail tobacco establishments contain more than 0.3% Delta-9 THC, making said products illegal under state and federal law. ATC has a duty to eradicate illegal THC products sold by regulated businesses. As such, ATC needs to execute a contract with a properly qualified laboratory to test THC products and provide certified analyses of THC content for flower and non-flower hemp products.

III. SCOPE OF WORK

a. OBJECTIVES OF ENGAGEMENT

· Provide detection and quantification of standard cannabinoids and tetrahydrocannabinol in specimens provided by the Indiana State Excise Police (ISEP).

· Incorporate the latest developments and trends for liquid and/or gas chromatography detection and quantification of the cannabinoids and tetrahydrocannabinol in accordance with the contractor’s accreditation/certification requirements for testing. The detection limit shall be down to 0.03%.

· Provide, at no additional cost, all necessary services and supplies for specimen collection, including but not limited to the following: appropriate tubes, bottles, syringes, specimen transport bags, evidence seals, transport boxes, documented forensic chain of custody, laboratory analysis, formal written reports, interpretation and consultation services.

b. DELIVERABLES AND DEADLINES

· THC varieties that ATC may need to have a specimen tested for:

1. D9-THC

2. D9-THCA

3. D8-THC

4. (6aR, 9R) D10-THC

5. (6aR, 9S) D10-THC

6. D11-THC

7. THC-P

8. CBD

9. CBDA

· Specimen Samples may include:

1. Flower

2. Powder

3. Liquid

4. Edibles

5. Crystals

6. Tinctures

7. E-liquid in a closed or open system

· Provide a written report of results in ten (10) calendar days or less from receipt of the specimen.

· Maintain a forensic chain of custody for all specimens that are tested.

· Provide any standard operating procedures for testing cannabinoids and tetrahydrocannabinol, upon request of ISEP or a prosecutor

c. PAYMENT MILESTONES

· Submit all billing invoices to ISEP. All invoices submitted to ISEP must be submitted with supporting documentation to constitute the invoice.

IV. PROJECT MANAGEMENT

a. PROJECT MANAGEMENT PLAN

i. The ISEP Evidence Technician, or designee, will make arrangements with Contractor to deliver the specimen for testing. The Contractor will test the specimen and provide the test results and a written report to ISEP. Upon completion of the testing, the ISEP Evidence Technician will make arrangements to retrieve the specimen. The Contractor will maintain proper forensic chain of custody at all times.

b. KEY PERSONS

i. Qualified Lab Technician(s)

c. OTHER PROJECT STAFF

i. Any other staff required to fulfill Contractor’s obligations under the contract.

d. DOCUMENT MANAGEMENT

i. Contractor shall complete forensic chain of custody forms and maintain forensic chain of custody for all specimens that are tested.

ii. Contractor shall provide any standard operating procedures for testing cannabinoids and tetrahydrocannabinol, upon request of ISEP or a prosecutor.

iii. Contractor shall provide test results

iv. Contractor shall provide written report of test results.

v. Any other documents ISEP or Contractor require for completion of specimen testing.

e. STATUS UPDATES AND REPORTING

· Provide a written report of results in ten (10) calendar days or less from receipt of the specimen.

· Send reports to ISEP electronically, within twenty-four (24) hours after completion of testing.

V. INDEPENDENT VALIDATION AND VERIFICATION

In the event the State determines that any independent verification and validation ("IV&V") oversight is required by the State during the term of this Contract, the Contractor shall comply with any such oversight during the term of this Contract, pursuant to which an independent third-party review may be conducted by a reviewer selected by the State, for the purpose of verifying that the Contractor has performed its obligations in compliance with the terms of this Contract. In the absence of any such IV&V oversight, the Contractor shall comply with any other appropriate methods or means for verification and validation required by the State during the term of this Contract for the purpose of verifying and validating that the Contractor has performed its obligations in compliance with the terms of this Contract. The Contractor shall provide all information and documentation requested during the State's IV&V oversight or verification and validation efforts related to this Contract and in connection with any IV&V oversight or verification and validation efforts related to an initiative of which this Contract is a part.

VI. COMPLIANCE REQUIREMENTS

a. Be accredited as a testing laboratory under the International Organization for Standardization (ISO) 17025 by a third-party accrediting body, such as the American Association for Laboratory Accreditation (A2LA) or Assured Calibration and Laboratory Accreditation Select Services (ACLASS). The Contractor shall maintain accreditation under the ISO and shall notify ISEP within five (5) business days of any change in this accreditation status.

b. Notify ISEP of any known conflict of interest or business relationship with any manufacturer of the specimens submitted for testing.

VII. KEY PERFORMANCE INDICATORS

The State will use Key Performance Indicators (KPIs) to measure performance and outcomes of the Contract. The specific KPIs and their targets will be defined and agreed upon by the State and the Contractor during the initial phases of the requirements under the Contract. At a minimum, on time delivery at quality standards of the scope provided within the budget set forth in the Contract will each be measured. Additionally, the State will collect a modified Net Promoter Score from customers to this Contract in its discretion. Low ratings on the modified Net Promoter Score or failure to meet any other KPIs may be deemed, at the discretion of the State, to constitute default under the Contract.

The specific Key Performance Indicators include the following:

a. Provide accurate and reliable test results of cannabinoids and tetrahydrocannabinol with a detection limit of .03%.

b. Compliance with standard operating procedures for testing cannabinoids and tetrahydrocannabinol.

c. Maintain accreditation under the ISO during the life of the contract and any amendments.

d. Complete testing and provide testing results and written reports within the time frames provided herein.

VIII. END OF CONTRACT TRANSITION AND TURNOVER

Contractor shall complete testing and written reports for any specimen that is provided to the Contractor prior to the termination date of the contract.