CSP031091_Contract.pdf

PDF 219 KB Posted Jul 1, 2025

Attached to: Competitive Selection OH|CSP031091
Contract number: CSP031091
Issued by: Ohio

About this file

Written by GovTribe AI · Jul 11, 2025

This document is a contract between the State of Ohio Department of Administrative Services, acting on behalf of the Ohio Lottery Commission, and Pollard Banknote Limited for scratch-off lottery ticket products and services. The contract was solicited through Request for Proposals #SRC0000027289 and is designated as Contract #CSP031091, with Pollard Banknote Limited awarded as the Secondary Contractor.

The contract covers a wide range of lottery ticket printing and related services, including various printing options, licensed property games, specialty printed products, and innovative digital solutions. The contract term is from July 1, 2025, through June 30, 2035, with the potential for renewal for up to five additional years. Pricing is structured as a percentage of sales rate, with specific rates for different ticket types and features. For print services, Pollard Banknote Limited will be compensated at a fixed rate of 0.7245% of sales from 2026 to 2035. The contract includes detailed pricing for additional options such as die-cut tickets, special printing features, and licensed properties like Atari, PAC-MAN, and Chevrolet, with pricing ranging from 1.5% to 2% of sales. The contract also provides credits for certain service modifications and includes a waiver for services performed outside the United States.

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State of Ohio Department of Administrative Services Scratch-off Lottery Ticket Products and Services – RFP #SRC0000027289

On behalf of the Ohio Lottery Commission RFP Version 11/21/24

A CONTRACT BETWEEN

THE OHIO DEPARTMENT OF ADMINISTRATIVE SERVICES

ON BEHALF OF THE

OHIO LOTTERY COMMISSION

AND

POLLARD BANKNOTE LIMITED

This Contract (#CSP031091), which results from Request for Proposals #SRC0000027289 titled Scratch-off Lottery Ticket Products and Services (RFP), is between the State of Ohio, through the Department of Administrative Services, on behalf of the Ohio Lottery Commission, and Pollard Banknote Limited (Contractor).

This Contract is the result of agreed upon changes to the RFP including all exhibits and written amendments to this RFP and the Contractor's negotiated and accepted Proposal. It will also include any materials incorporated by reference in the above documents. The terms and conditions for this Contract are contained in Parts 2-4 of the RFP. If there are conflicting provisions between the documents that make up the Contract, the order of precedence for the documents is as follows:

1. This one-page Contract;

2. Contract Part 6;

3. This RFP, including all sections, parts, and exhibits, as amended; and

4. The Proposal dated 5/1/2025.

Once awarded, the term of the Contract will be from July 1, 2025 through June 30, 2035. The State may solely renew this Contract at its discretion for a period of one month. Any further renewals will be by mutual agreement between the Contractor and the State. The parties may renew this Contract for up to five years.

Any such renewal of all or part of the Contract is also subject to the satisfactory performance of the Contractor and the needs of the State of Ohio.

To show their agreement, the parties have executed this Contract as of the dates below.

POLLARD BANKNOTE LIMITED STATE OF OHIO,

DEPARTMENT OF ADMINISTRATIVE SERVICES

By: _________________________________ By: ____________________________________

Name: Douglas E. Pollard_________________ Name: __________________________________

Title: Director & Co-Chief Executive Officer Title: Director

Part 6 – Mutually Agreed Upon Changes

The fully negotiated and agreed upon final version of the proposed exceptions or changes will be set forth in this Part 6 and become part of the Contract.

1. Pollard Banknote Limited is awarded as Secondary contractor.

2. Part 2 – Contract-Specific Terms and Conditions, Section D, 5. Additional Insurance, d. Professional

Liability (Errors and Omissions) Insurance is removed and replaced with the following:

d. Professional Liability (Errors and Omissions) Insurance appropriate to the Contractor’s profession, with limits not less than $5,000,000 each claim/aggregate for the Primary Contractor, and $2,500,000 each claim/aggregate for the Secondary Contractor. Coverage shall be sufficiently broad to respond to the duties and obligations as are undertaken by Contractor in this agreement and shall cover all applicable Contractor personnel or subcontractors who perform professional services related to this agreement. Coverage shall indemnify the Lottery for over-redemption of winning tickets that results from errors, omissions, printing or production problems of any type. Claims against the insurance may be invoked when the over redemption exceeds five percent of any instant game’s prize structure as based on the number of tickets actually sold. Coverage shall also indemnify DAS and the Ohio

Lottery Commission for the retail price of unsold tickets if a game is terminated because retailer(s) can pick out winners or because ticket manufacturing is unacceptable to the Lottery.

3. Part 5 – Cost Proposal is removed and replaced with the following as the Contractor’s Best and Final

Offer:

B. SECONDARY CONTRACTOR COST PROPOSAL

1. BASE SPECIFICATION PRICING

a. PERCENT OF SALES RATE:

% of Sales Rate FY Rate (% of Sales)

Print Services Only 2026 0.7245%

Print Services Only 2027 0.7245%

Print Services Only 2028 0.7245%

Print Services Only 2029 0.7245%

Print Services Only 2030 0.7245%

Print Services Only 2031 0.7245%

Print Services Only 2032 0.7245%

Print Services Only 2033 0.7245%

Print Services Only 2034 0.7245%

Print Services Only 2035 0.7245%

b. DISCOUNT FOR REPRINTS UNDER SECONDARY CONTRACT: List discount, if any, which would be applicable (regardless of ticket size) for reprints ordered under the secondary contract. Pricing for reorders may be lower than, but may not exceed, the cost of the original order, regardless of whether the game includes special features or services. (Reorder is defined as an order for a game that the Agency has previously sold, which is reprinted with the same graphics and prize structure; the game number may or may not be the same.)

Discount %

0– 4.9 million tickets reprinted 0.0092%

5– 9.9 million tickets reprinted 0.0092%

10 – or higher million tickets reprinted 0.0092%

2. SECONDARY CONTRACT PRICING FOR SPECIAL FEATURES/SERVICES

SPECIFICATIONS PRICING

For the Secondary Contract, the State requests pricing for the following optional related products and/or services in addition to the required products. The State reserves the right to accept or reject any or all the price quotes hereinafter.

a. PRINTING OPTIONS:

Price as Percentage of

Sales

Additional Void (Sample) Books (in quantities of 25) 0.0100%

Additional Book Insert Cards (6 3/4” x 4”) (in quantities of 1,000) 0.0003%

Book Insert Cards (size other than 6 3/4” x 4”) 0.0250%

Producing and inserting a bar-coded item into a book 0.0500%

Additional display color(s) (Beyond seven colors) 0.0240%

Additional overprint color(s) (Beyond five colors) 0.0240%

Additional ticket back color(s) (Beyond two colors) 0.0240%

Printing on Shrink Wrap 0.0500%

Stub Game with perforations, with covering 0.0084%

Stub Game with perforations, without covering 0.0063%

Die Cut Tickets 0.1907%

Cost savings for Integrated Printing (per color) No change to ticket base price

Two-sided display printing on two-sided coated stock 0.0720%

Deleted UV coating Deduct 0.0120%

Scoring 0.0488%

Insert per Book (supplied by Contractor) 0.0500%

Insert per Book (supplied by Lottery) 0.0500%

Tinted Varnish (play area) 0.0180%

b. PRODUCTS AND SERVICES:

i. LICENSED PROPERTY AND MERCHANDISE GAMES: It is the intent of the Agency to release Licensed Property games and Merchandise/Travel games as part of the scratch-off game product mix. The Offeror must list all current Licensed Properties and Merchandise/Travel games that are part of the Offeror’s portfolio. The Offeror must list % of sales pricing associated with each of the properties (i.e., royalty fees, licensing fees, merchandise costs, etc.), second chance website link development capabilities and costs, prize fulfillment (second chance drawing or instant) and costs, marketing support provided with the properties, licensing rights agreement term dates and extensions for each property, any payment options and any other additional items.

The Offeror must provide information pertaining to multiple game agreement possibilities and Agency costs. The Offeror must also list any properties that can be used by the Agency at no cost, or games at no cost based on a specific number of licensed properties released in a fiscal year.

Where the costs for such licensed property games are based on the percentage of sales of the specified scratch-offs, the State expects that the royalty and/or licensing fees be charged to the State at cost.

Licensed Properties

Price

Merchandise Model Percentage of Sales Model

Atari® (Centipede, Asteroids, Missile Command, Pong, Tempest)

6.0-8.0% merchandise allocation as a % of prize fund (negotiable based on ticket volumes and ticket selling price)