attachment_1_bid_103_25.pdf

Bidder Initials:_______

Date:_________

ATTACHMENT 1: NH Tobacco Tax Stamps RFB Specifications

RFB 103-25 NH Tobacco Tax Stamps / NH Dept. of Revenue Administration

PROJECT SPECIFICATIONS

CLIENT AGENCY: NH Dept. of Revenue Administration (NHDRA)

BID SUBMISSION DEADLINE: 10:00 a.m. EDT Wednesday, March 4, 2025

VENDOR QUALIFICATIONS: NH Dept. of Revenue Administration reserves the right to disqualify any bidder who does not meet these qualifications:

1. Bidder must be able to manufacture these stamps entirely within their own secure facilities.

This project may not be brokered and no part of it may be subcontracted. In bidding, vendor warrants that it is fully capable and qualified to perform all aspects of this contract in-house and that it will do so with the utmost care, safety and security to the State of New Hampshire as outlined herein.

2. Bidder must have prior experience in the manufacture of this kind of stamp and be able to document such experience with samples and references upon request.

3. Bidder must have experience or demonstrate the ability to integrate seamlessly with the Department of Revenue’s existing Revenue Information Management System (RIMS) GenTax® Integrated Tax System, at no additional cost to the Department.

4. To be eligible for a contract award, a Vendor must have completed Vendor Application Package on file with the NH Bureau of Purchase and Property. Click the below link for information on obtaining and filing the required forms (no fee):

https://das.nh.gov/Purchasing/vendorresources.aspx

QUANTITY: Estimated yearly purchase is as follows:

New Hampshire “B-Series” Cigarette Tax Stamps -96,000,000 these should be provided in rolls of 30,000 stamps per roll.

New Hampshire “C-Series” Cigarette Tax Stamps –3,381,000 these stamps should be provided in rolls of 3,000 stamps per roll.

FORMAT: These stamps shall be thermal transfer images deposited on rolls of security carrier paper. The visible stamp image shall be approximately 1/2” x 1/2” in size and shall repeat on the roll at stepped intervals of ¾” both horizontally and vertically.

The carrier rolls shall be 12” wide and have 5/8”-wide pinfeed strips on the side edges. Within these strips, pinfeed holes of 3/16” diameter shall be spaced ½” on center. The carrier roll stock must have sufficient tensile strength to prevent tearing on the automated stamp application machinery.

All standard stamp application machinery must be able to run the rolls and apply the thermal transfer images to tobacco products.

Rolls shall be approximately 125’ long, with 15 columns of stamps across the width x 2000 rows of stamps down the length, for a total of 30,000 stamps per roll.

Each stamp shall be serially numbered with two 5-digit serial numbers: one to identify the roll the stamp comes from and the other to uniquely identify the stamp among other stamps on the roll.

STOCK: These stamps shall be formed as thermal transfer images on special security-tinted, mill-controlled carrier roll paper furnished by the contractor. The carrier paper shall be prepared with an overall repeating phantom security image that undergoes thermal transfer along with the stamp image. This image must blend so well with the colored background of the carrier paper that it cannot be successfully captured by scan or photograph. It must underlie the entirety of each stamp image and even extend beyond it, into the areas between stamps.

B STAMP DESIGN & COMPOSITION: The visual appearance of the stamp shall be the same as other Series B tobacco tax stamps printed in recent years for the State of New Hampshire. Vendor may be able to print from archived files. If any re-composing is needed, it shall be done by vendor to replicate the look of existing tobacco tax stamps as shown (enlarged) below, while incorporating the security features elected for this run (see below under “FRAUD PROTECTION”). Each stamp is to be of irregular shape and outline. The lighter green band in the middle must fit two serial numbers as shown.

C STAMP DESIGN & COMPOSITION: The visual appearance of the stamp shall be the same as other Series C tobacco tax stamps printed in recent years for the State of New Hampshire. Vendor may be able to print from archived files. If any re-composing is needed, it shall be done by vendor to replicate the look of existing tobacco tax stamps as shown (enlarged) below, while incorporating the security features elected for this run (see below under “FRAUD PROTECTION”). Each stamp is to be of irregular shape and outline. The lighter blue band in the middle must fit two serial numbers as shown.

FRAUD PROTECTION: Apart from the phantom background image described above, these stamps must contain other overt and covert security features to discourage fraudulent reproduction and facilitate detection of counterfeit stamps.

Bidders are requested to submit their base price for stamps with the phantom security image as described in the “STOCK” specification. Separately, they are requested to provide a list of other optional security features and their add-on price factors. These security feature options will be kept confidential, as will the State’s choices, in order to guard the fraud-protective qualities of the stamps. This information will not be revealed at any time in any bid summaries or FOIA requests.

The contract awardee shall provide, in writing, full explanatory details of all security features and fraud detection methods planned for the stamps to a designated official at NH Dept. of Revenue Administration who will protect their confidentiality.

FILM: Any film negatives or positives required in the production of these stamps shall be created by the vendor if/as needed. In the event of an archive cleanout or facility closure, any such films may not be sold or shared in any way and must be irrecoverably destroyed.

PROOFS: Proofs are required for any new or re-created imaging; however, proofing shall be waived if already- proven image resources are being re-used. Send or deliver any required proofs to Attn:

Shelley Gerlarneau, NH Dept. of Revenue Administration, 109 Pleasant St., Concord, NH 03301

Phone: (603) 230-5016. E-mail: Shelley.J.Gerlarneau@DRA.NH.GOV

PRINTING: Bids based on any one or more printing methods will be accepted, provided the method(s) perform all required functions effectively, resulting in a satisfactory product.

Printing shall consist of:

1. The phantom security image applied overall to the carrier paper;

2. Stamp printing and numbering in correct color order with reverse imaging so that, when applied to tobacco products, the stamps appear right-reading with black numbering and static print on top of green, with opaque white background.

3. Any other images, coatings or applications that the contractor may employ to increase the utility or security of the product.

Stamps must retain graphic clarity and quality after application.

The stamps must adhere well and resist rubbing or flaking off under conditions of moderate abrasion, both when they are on the carrier paper and after they have been applied.

The stamps must remain viable on the roll for a minimum of 2 years’ storage in a climate-controlled environment.

mailto:Shelley.J.Gerlarneau@DRA.NH.GOV

NUMBERING: Serial numbering is required as follows:

1. Two 5-digit serial numbers are required on each stamp, to be printed in black. One number will uniquely identify the roll from which the stamp comes among all other rolls; the other number will uniquely distinguish the stamp among all other stamps on the same roll, using a number between 00001 and 30000.

2. The roll number shall also appear at regular intervals on the face edge of each roll.

3. The starting roll serial number will be provided by NH Dept. of Revenue Administration upon award of order.

4. Print leading zeroes where applicable.

5. After application to cigarette products, both numbers on every stamp must be complete, visible in their entirety, and easy to read.

RUNNABILITY: These stamps must work without difficulty on all standard tobacco stamp application machinery. The stamp manufacturer shall provide active technical assistance as needed to the wholesalers for any application issues and shall take full responsibility for the viability of the stamp product.

The tensile strength of the carrier roll material must be sufficient to afford trouble-free running without web breaks on all properly equipped and correctly adjusted stamp application equipment in use by the wholesalers.

The thermal transfer properties of the stamps shall make them suitable for both machine and hand-iron application to typical cigarette packaging materials such as cellophane and printed paperboard. New Hampshire administrative rule requires that at least 75% of the stamp must be visible on the package after transfer.

PACKING: Secure each roll with an adhesive closure. Pack each roll in an individual box of appropriate size. Mark contents clearly on the outside of each case, including quantity, kind, denomination and the range of roll serial numbers contained in the case.

SECURITY OF MATERIALS: All first quality product, unprinted stock, spoiled stock, and seconds are to be strictly accounted for and kept under high security. Secure irrevocable destruction of partial rolls, spoilage or stamp stock is to be documented and an affidavit of such destruction to be provided to the NH Dept. of Revenue Administration, Attn: Shelley Gerlarneau. NH DRA reserves the right to send an authorized agent to observe all security measures and procedures including destruction of spoilage.

TEST ROLL: In the event that a new supplier wins this bid, NH DRA will want to test a roll or a portion of a roll of the proposed material for its viability in currently deployed thermal application equipment prior to delivery of the finished product. This test roll would not have to be printed with our stamp, but it would have to conform to the layout of the NH Series,B,C stamps in terms of the size of the roll and the size & placement of stamps on the roll. Please indicate with your bid if a sample roll can be supplied for testing.

DIRECT SHIPMENT OF STAMPS TO PURCHASERS-DISTRIBUTORS: The agency is requesting a system for shipping stamps directly to its Licensed Cigarette Wholesalers. Vendors who offer this service will receive an electronic file of orders daily and must ship the stamps within one business day of receiving the order. The wholesalers will be responsible for paying the cost for the shipping of the stamps. Vendor will ship all orders overnight.

NOTE: An order acknowledgement must be sent back to the Agency electronically within one business day of the order being filled. The acknowledgement must contain the name of the NH Licensed Wholesaler, shipment tracking number, the date of shipment, the type of stamp shipped (eg., B, C…) and the actual stamp roll ID’s issued to each purchaser. Vendor must be able to ship using all major carriers. Currently, the State has 158 Licensed Wholesalers.

Please provide a narrative response detailing your solution for meeting the functionality requirements of having the ability to send fulfillment acknowledgements within one day of an order being filled.

Bidder’s narrative response must also demonstrate Bidder’s capability to integrate with the Department of Revenue’s existing Revenue Information Management System (RIMS) GenTax® Integrated Tax System and provide at least two (2) state references where the Bidder has delivered a stamp shipment solution to an agency using the GenTax® solution. Other software programs with an integrated system for a government agency encompassing accounting, output, and online capabilities (webpage) will be sufficient with agency approval.

Vendor will bill the agency monthly on actual stamp roll ID distribution. Vendor will maintain inventory and provide monthly reporting on stamp roll availability. Vendor will create a portal for agency personnel to use to view the stamp orders filtered by wholesalers (change to wholesalers), order date and/ or order status and stamp type (e.g. B, C…). The Portal will provide an order detail report that displays information about the order including the quantity and type (roll size and denomination) of stamps in the order, as well as the wholesalers (wholesaler) name and address.

For shipped orders, this order detail report contains carrier tracking numbers so states can track the delivery of shipments.

The contractor shall be responsible for the safe and proper delivery of stamps as specified.

Vendor will keep some number of rolls of stamp type (e.g. B, C…) on hand to address Agency orders that will need to be serviced at the time of Bid Award. This will be negotiated with the agency and the bidder at time at award.

ORDERS/SHIPMENTS TO AGENCY: The Agency shall issue written order requests to the supplier for the type and quantity of rolls/sheets of stamps needed no later than 6 (six) weeks prior to the approximate delivery date when direct shipment is not utilized.

INSPECTION AND QUALITY CONTROL: Vendor must implement a rigorous quality assurance program to prevent delivery of defective or non-conforming stamps.

NH DRA reserves the right to reject any stamps that fail to transfer properly, or that do not perform as required or that are not satisfactory in any other respect, whether the defect is apparent right away or is latent and discovered later. In the event that any stamps are found to be defective, vendor agrees to pay the return transportation costs on the rejected stamps and to replace all unsatisfactory stamps at no expense to NH Dept. of Revenue Administration.

Vendor further agrees that authorized representatives of the NH Dept. of Revenue Administration shall have the right of access to inspect their relevant manufacturing and/or storage facilities at any time, as needed to confirm adherence to these specifications.

RESTRICTIONS ON BIDDER: Vendor agrees that no representative of its company shall call on any licensed tobacco distributor within the State of New Hampshire for the purpose of discussing tobacco tax stamps without first receiving permission from the NH Dept. of Revenue Administration and then only under such conditions or regulations as Dept. of Revenue Administration may prescribe.

CONTRACT TERM: The term of the contract shall commence July 1, 2025 or upon execution by the Commissioner of the Department of Administrative Services, whichever is later (the “effective date”) and shall continue thereafter for a period of two (2) years.

The contract may be extended for an additional two-year extension thereafter under the same terms, conditions and pricing structure upon the mutual agreement between the successful Vendor and the State with the approval of the Commissioner of the Department of Administrative Services. The maximum term of the contract (including extensions) shall not exceed four (4) years.

CANCELLATION OF CONTRACT: The State of NH reserves the right to cancel the contract if, in its opinion, the stamps received are not made in accordance with these specifications and the supplier fails to effectively cure the indicated defect(s) within 30 calendar days after receipt of written notification by the State of NH.

PROJECT SPECIFICATIONS