CTR076890_Contract_Documents_Per_Amendment_Two.pdf

ARIZONA DEPARTMENT OF TRANSPORTATION

1655 W. Jackson Street, MD 100P

Phoenix, AZ 85007

Contract Amendment Summary CONTRACTOR: Intellectual Technology Inc. AMENDMENT NO.: Two

DESCRIPTION: Central License Plate Issuance

Rev. 03/2025

Pursuant to the Uniform Terms and Conditions, Section 5, Contract Changes, the above referenced contract is amended. Summary of changes is as follows:

1. Additional Scope to be added in Scope of Work, Section 3.8 General Fulfillment, 3.8.15:

a. Effective September 26, 2025 the contractor will start receiving a second production file from ADOT's MAX system that contains only registrations and license plates that require a 4" X 4" alternative fuel decal in the license plate fulfillment activity. The department will provide the 4" X 4" vinyl decal. The contractor will place one 4" x 4" decal into the #10 license plate envelope behind the vehicle registration form with the blue graphic facing out behind the registration form.

2. Pricing:

The following Line items have been added:

Line Item Description Rate

Transaction – Registration and license required alternative fuel decal only, insert alternative fuel 4”x4” decal into the #10 envelope

$0.25

3. All other terms, conditions and provisions of this contract remain unchanged.

Procurement

ATTACHMENT 1

OFFER AND ACCEPTANCE

Solicitation No: BPM006375 Available online at https://app.az.gov

Rev 09/2022

OFFER

TO THE STATE OF ARIZONA:

The undersigned hereby offers and agrees to perform in compliance with all terms, conditions, specifications and amendments of this solicitation and any written exceptions in the offer. Signature also acknowledges receipt of all pages indicated in the Table of Contents.

Offeror (Company) Name Signature of Person Authorized to Sign Offer

Address Printed Name Date

City State Zip Title

Email Address Phone Number

Company Email Address Fax Number

By signature in the Offer section above, the Offeror certifies that the submission of the Offer did not involve collusion or other anticompetitive practices.

ACCEPTANCE OF OFFER (FOR DEPARTMENT USE ONLY)

The Contractor is now bound to perform based upon Contract Number _________________________________including all terms, conditions, specifications, amendments, etc., and the Contractor's offer as accepted by the state.

The Contractor is hereby cautioned not to commence any billable work or provide any material, service or construction under this contract until contractor receives a purchase order document.

State of Arizona

Effective this day of 20

Procurement Officer Awarded Date

Docusign Envelope ID: 30C20B07-07AF-4C9F-A012-570D4F5D64B6

Fort Wayne

Drew Nicholson

Intellectual Technology Inc.

46805

(260) 459-8800 sales@iti4dmv.com

8/20/2024

IN Chief Executive Officer dnicholson@iti4dmv.com

2980 E. Coliseum Blvd., Suite 100

Docusign Envelope ID: 6F5BBDA3-B4FF-4684-B65F-F49CB0A7433F

CTR076890

May

5/15/2025 https://app.az.gov/

Rev. 05/2023

STATE OF ARIZONA

ARIZONA DEPARTMENT OF TRANSPORTATION

1655 W. Jackson St., MD 100P

REQUEST FOR PROPOSAL

SOLICITATION NUMBER: BPM006375

DESCRIPTION: Central License Plate Issuance

QUESTIONS: Inquiries regarding the solicitation are to be submitted online through the State’s e-Procurement system, Arizona Procurement Portal (APP) (https://app.az.gov/) using the Discussion Forum tab.

OFFERORS ARE STRONGLY ENCOURAGED TO READ THE ENTIRE SOLICITATION.

William Haynes Procurement Officer Phone: 602-712-8595 Email: whaynes@azdot.gov

This solicitation is issued in accordance with A.R.S. §41-2534 and A.A.C. R2-7-C301 et seq., Competitive Sealed Proposals.

“An Equal Opportunity Agency”

The Arizona Department of Transportation, in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252.42 U.S.C. §§ 2000d-4) and the Americans with Disabilities Act (ADA), hereby notifies all bidders that it will affirmatively ensure that any contract entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full and fair opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, national origin in consideration for an award.

Persons that require a reasonable accommodation based on language or disability should contact ADOT’s Procurement Office by phone (602) 712-7466. Requests should be made as early as possible to ensure the State has an opportunity to address the accommodation.

Las personas que requieran asistencia (dentro de lo razonable) ya sea por el idioma o discapacidad deben ponerse en contacto con ADOT (602) 712-7466.

TABLE OF CONTENTS

Solicitation No: BPM006375 Available online at

SECTION PAGE

Notice 1

Table of Contents 2

Scope of Work 3

Special Terms and Conditions 19

Uniform Terms and Conditions 37

EXHIBITS

1 - Title VI/Non-Discrimination Assurances Appendix A 55

2 - Title VI/Non-Discrimination Assurances Appendix E 56

3 - Quarterly Usage Report 57

SCOPE OF WORK

1. Statement of Need

1.1. Pursuant to the Arizona Procurement Code, A.R.S. §41-2501 et seq., the State of Arizona Department of Transportation (Department), has a requirement for a qualified firm or individual, herein referred to as (Contractor) to provide on-demand direct distribution of license plates, associated vehicle registration documents and a Disaster Recovery (DR) program for license plate production in the event the current production center is compromised.

2. Introduction and Background

2.1. The Department currently utilizes Arizona Correctional Industries (ACI) for the production of license plates and intends plates to continue to be produced at ACI. Plates manufactured by ACI can be flat or embossed depending on plate type. Manufacturing is currently done by thermal transfer ribbon, ink on sheeting or embossing press with roll coat ink and ovens. The plate file will not be provided in sequence, if that is a requirement by the Contractor they will need to provide a solution in their implementation plan.

2.2. The Contractor will either support the current font for license plate printing or suggest a new font that is very similar in the event they are required to produce license plates. The department would like to keep the current font or something similar.

2.3. ACI will be responsible for the following:

2.3.1. A location within ACI for storage of license plate materials and supplies.

2.3.2. The necessary manufacturing equipment to manufacture an average of 7,500 license plates daily.

2.3.3. Sufficient amount of labor resources to manufacture an average of 7,500 license plates daily.

2.3.4. Sufficient amount of labor to package and prepare for pickup an average of 7,500 license plates daily.

2.4. The Department operating system (MAX) will send JavaScript Object Notation (JSON) for all production files. ACI uses Plate Builder software provided by 3M. The MAX system from the state spools plate sales data daily from hundreds of offices around the state. At an agreed time daily, the state transfers that JSON file to the contractor via SFTP. The contractor takes receipt of the file and processes it for ACI and their needs.

2.5. Distribution of all license plates issued by the Motor Vehicle Division (MVD) or authorized third party providers will be fulfilled through this Contract. The Department will allow the public to renew their plates and order new license plates through the Departments internet site, US mail, and MVD offices. Orders placed through these means will be collected by the Department and placed into single data file for the contractor. The Contractor will then use the file to fulfill by mailing license plates and registration documents directly to the customers. These plates are considered to be “on demand” and will not be printed until the order is placed. Specialty license plates will also be produced on demand and shipped directly to customer’s addresses. A key component of the on demand process is the use of a fulfillment center to match up the license plate(s) with the registration document via use of a 3 of 9 barcode feature ensuring the correct pairing of plates and registrations, place them in an envelope and mail them directly to the customers.

3. General Requirements

3.1. The Contractor will provide registration printing, mailing the registration documents with or without license plates and a DR license plate function when required in the most efficient manner possible. This shall include orders placed on demand through the Internet, mail system, and plates purchased or assigned from (MVD) offices, third party contractors and fleet service. The majority of the mailings are plate and registration. The registration only printing will be used in a DR plan activation only if the ADOT central production printing were compromised. The contractor would be required to use their registration printers and documents to support this activity until the Department was able to recover their operation.

3.2. The contractor will have 30-days to provide the Department a written implementation plan for the Department’s acceptance. If needed, the contractor can propose a phased implementation plan to ensure enough time is given to implement both the fulfillment and DR portions of this solicitation. The Department will require that the fulfillment portion of the contract be in place no later than 12-months after award. This includes but is not limited to the SFTP link for the intake of the JSON file from the Department, processing the data for plate production to ACI, printing the registration forms, pick-up of the produced plates, pairing the plates to the registrations, mailing them to the Department's customers and reporting back to the departments' system via SFTP status of these actions. The DR plan must be in place no later than 18-months from the award of the contract. This includes but is not limited to all license plate production equipment, raw materials and proposed methods to ensure the Contractor is ready upon a three days’ notice to produce at minimum a 90-day supply of Arizona license plates and the average daily 20,000 registrations being printed and mailed.

3.3. Pricing shall include the distribution of license plates and registration documents, as well as license plates production. The contractor will have a two pricing option requirement, one to use raw materials from ACI, and two, using the Contractor’s own supply of raw materials consistent with the Disaster Recovery Plan.

3.4. The contractor will be required to work with ACI to utilize raw materials if needed. In that event, the contractor will be responsible to form terms and conditions with ACI for those materials. The price when using raw materials from ACI should be all costs associated with production minus the raw materials cost. Pricing Worksheet shall apply when the Department acknowledges and agrees that until ACI delivers raw materials, the Contractor’s license plate production obligations under this contract shall only extend to the portion of Contractor’s raw materials that the Contractor is able to designate for production under this contract, which shall be at minimum ninety (90) days of projected volume of license plate production (“Contactor Supply”).

3.5. The Contractor shall use commercially reasonable efforts to secure additional raw materials to continue license plate production beyond the ninety (90) day period in the event a long term solution is needed. In the event the raw materials were reaching end of shelf life, the contractor would work with ACI to cycle those materials or provide a cost solution to replace the materials. Ideally the contractor and Department would work to use “in-stock” components of their already operational license plate production environment.

3.6. The Contractors solution shall include the outline of how they will require ACI to package and pick up plates daily from the ACI facility. This requirement will include the materials needed for ACI to complete the daily packaging of the plates for the Contractor to transport the plates. The hours would be between 8:00am and 2:00 pm daily.

The facility is located at 1305 E Butte Ave Florence, AZ 85132. The vendor would be required to enter the prison and pick up the plates from their warehouse. The contractor's driver would be required to meet the prison entrance requirements. To date, that would be a NCIC background check and providing full legal name, DOB, social security number and driver's license when checking in. The sally port check generally only takes a couple of minutes.

3.7. The Contractor’s solution shall include the ability to obtain the license plate files on a daily basis from the Department and provide efficient plate order files to ACI. In an effort to mitigate the risk of errors for the contractor matching produced plates to printed registrations the contractor is required to manage the Department daily production file. The Contractor will segregate the data for production and registration using their preferred methods to ensure the accurate matching of the plates and registrations during the fulfillment process. ACI does not receive any plate or registration files from the Department. The Contractor must ensure no personal data or customer information is provided to ACI other than the license plate type and plate message to be printed. The Contractor must pick up the manufactured license plates from ACI or receive plates from ACI on a daily basis and print the associated registration documents for direct mailing to the customers.

3.8. General Fulfillment

3.8.1. The Contractor shall have a designated area within the Contractor’s location for storage of registration materials, license plate materials and supplies. The Contractor will provide inventories for all raw materials needed to produce registrations, license plates and envelopes. This will include the raw materials such as aluminum, sheeting and printer supplies for license plate production in the DR plan.

All inventories should be a physical count and updated monthly at minimum. It is required that the Contractor collaborate with ACI and the Department to ensure that materials are available for plate production. This should be recorded in such a way that the department has access at any time to review these inventories. Each party is responsible for managing their own inventory. Inventory control is a responsibility of all three parties, ACI, the Department and the Contractor.

3.8.2. The necessary manufacturing equipment and labor to manufacture and mail an average of twenty thousand (20,000) registrations and an average of seven thousand five hundred (7,500) license plates daily. The DR plan can utilize out of state facilities and even sub-contractors as long as the staff are not former inmates of the correctional system.

3.8.3. The Contractor shall utilize a software solution to manage the processing of the Department’s JSON production file, fulfillment operation and mailing services as a whole.

3.8.4. For the DR site the Contractor shall utilize an inventory method that will automatically calculate and forecast production requirements for raw materials to maintain a ninety (90) day stock of raw materials based on the current usage trends at all times in the event the DR plan is activated.

3.8.5. A web based reporting component to provide the Department real-time view of the fulfillment process.

Reporting component must be able to track each plate individually through the fulfillment process.

3.8.6. Sufficient labor resources to pick up plates from ACI daily.

3.8.7. The ability to handle and provide resolution for returned plates or registrations from the mailing process.

The current return rate is between 1.5% - 2%.

3.8.8. The ability to mail plates directly to the customers at the most efficient postal rates.

3.8.9. A comprehensive training program for essential State and ACI personnel on the operation and maintenance of the Contractor solution. If training would be required to utilize the contractor’s equipment at ACI or by the department, the contractor would be responsible to accommodate and provide that training.

3.8.10. Ability for the reporting of status to the Department’s system electronically from computer to computer.

3.8.11. The fulfillment center is desired to be located close to ACI to allow daily pickup and fulfillment of license plates printed on demand. The Contractor fulfillment center shall have capacity to fulfill approximately one million license plates annually and provide complete fulfillment and mailing within eight (8) business days from the date the JSON plate production file is received until the plate was produced, registration printed and both mailed to the customer. The Contractor shall provide the Department with a real-time view of fulfillment status on an individual plate and plate order basis via SFTP or web-based utility.

3.8.12. The Contractor’s solution may include the ability to receive the registration files on a daily basis from the Departments Manage Print queue configured by Taylor Communications. The department currently prints and mails registration only documents today. The offers are being asked to provide a DR plan to accommodate the registration only printing and mailing using the contractors supplies and equipment in the event the department is compromised. Taylor communications provides a print management solution for the department with regards to registration only printing and mailing. The contractor may need to work with Taylor in the event of a DR plan outlined by the contractor showing the ability to fulfill the required 20,000 registration only printing daily. Utilizing the Contractor's registration forms and hardware, a solution shall include the ability to print the registration documents for direct mailing to the customers. Both registration with plate and registration only mailings are requirements. While the contractor will be required to produce either at any given time, the majority of the work will be approximately 7,500 registrations with plates daily.

3.8.13. The current system used by the Department is MAX. MAX uses a JSON file format which is SFTP to the Department’s Manage Print application for printing. The Departments Manage Print application will have the ability to send merged PCL5 registration print files to the Contractor in the event the Department’s printing facility is compromised and would require the registration only DR plan from the contractor to be activated.

3.8.14. Distribution of all registrations is considered to be “on-demand” and will not be printed until the order file is received from the department to the contractor.

3.9. Disaster Recovery Fulfillment

3.9.1. DR License Plate Production Daily File: The file the Contractor uses to produce license plates would be the same license plate and registration JSON file received today from MVD’s MAX system. This file generates the plate production details necessary for the Contractor license plate production system.

Instead of the Contractor sending the license plate production needs to ACI, they shall send that to the Contractor’s license plate production facility. Should a new file not be detected by 9:00 AM MST, the Contractor system shall automatically alert all parties via email and through reports. When the Contractor application detects a new file, it shall validate each file to ensure that all required fields are present and in proper format. Once validation is complete, each file shall be parsed and stored within the Contractor database system. The original files shall be stored on the Contractor file system and maintained for a minimum period of twelve (12) Months. The contractor solution shall accommodate the license plate designs approved by the Department in the outlined sections of this fulfillment contract. The Contractor shall process each plate using the corresponding license plate design file in accordance with MVD requirements.

3.9.2. If the Department requires the Contractor to engage the DR of license plates, the estimated time for this action will be eight (8) business days from the date the Contractor receives the JSON production file to mailing the license plate to the customer.

4. Specific Requirements

4.1. License Plate Production

4.1.1. Functional Requirements

4.1.1.1. Facility: The contractor is required to have a license plate production facility capable of producing the seven thousand five hundred (7,500) required daily license plates for the Department. The contractor’s license plate production facility is not required to be in state.

The Contractor facility shall be a secure facility with twenty-four (24) hour security, video surveillance, access control, and monitored alarm systems. The Contractor shall maintain a customer support center and a full staff of technical and support personnel to manage the requirements of the MVD program along with the Contractor's contractual obligation for the distribution of license plates, as well as the Contractor's responsibilities encompassed by this contract.

4.1.1.2. License Plate Fulfillment Material: In the event the Contractor license plate production environment is activated, the Contractor shall be responsible for all license plate sheeting, metal substrate, tool and die equipment, blanking line, presses, roll coater, inks, drying equipment, and any supporting materials, equipment, or processes necessary to produce MVD accepted license plates. MVD is currently using 3M HD sheeting for the ACI license plate production and Avery or Nikkalite sheeting at the DR site.

4.1.1.3. Timeline: Once the contractor has their systems in place and the Department needs to activate the DR license plate production solution with the contractor, the Contractor shall be required to be in full production for all Arizona approved license plates within a three (3) day notice.

4.1.1.4. Disaster Recovery: In the event that a disaster at the contractors facility, including a technology system outage that exceeds twenty-four (24) hours the Contractor shall work with the Department to implement a continuity plan to ensure license plate fulfillment is operable. Procedures for notifying the Department of a disaster and plans to fully implement continuity shall be outlined by the Contractor for the Departments approval. The Contractor shall continue to maintain a central fulfillment solution that is operational and fully available.

Operational and fully available means the central fulfillment solution including functionality required from the Department. Functionality includes maintaining connectivity to MVD, processing MVD data files, producing license plates, printing registration cards, bursting, house holding if in use and fulfillment to the postal service.

4.1.1.5. Postage Account: The Contractor shall provide a pre-funded postal permit plus presort fee for the Department mailings to be charged against. The Contractor shall then bill the Department monthly, with no markup, for the actual postage costs during the previous month.

4.1.2. Technical

4.1.2.1. This section provides key specifications in the manufacturing process necessary to produce Arizona license plates in a consistent manner that optimizes the readability, security, appearance, and performance of the license plate. This includes flat and embossed plates.

4.1.2.2. The Contractor will either support the current font for license plate printing or suggest a new font that is very similar in the event they are required to produce license plates. The department would like to keep the current font or something similar.

4.1.2.3. License Plate Dimensions and Bolt Holes: Passenger vehicles, trucks, and trailers shall comply with the Society of Automotive Engineers (SAE)–Motor Vehicle License Plates Standard J686 (revised July 2012).

4.1.2.4. Printing Process: The printing process for license plates shall allow for high contrast recognition for infrared (IR) and visible light illumination in daylight and nighttime conditions. The dye, ink, paint, or film used for the license plate number is opaque in both visible and IR spectrums, allowing for better and more accurate character capture.

4.1.2.5. Manufacture Retro-reflectivity License Plates: Shall contain a retro-reflective surface, and the license plate number will be readable in both daylight and nighttime from distances of at least one hundred (100) feet. This provides illumination without distortion when viewed under headlights. License plates contain a retro-reflective surface consistent with International Organization for Standardization ISO 7591.

4.1.2.6. Security Features: Specific security feature(s) shall be presented by the Contractor to the Department. The Department shall choose the feature(s) for use. The security features shall be difficult to duplicate, an integral part of the license plate and registration decal, and does not interfere with license plate character legibility by the human eye and ALPR. The Contractor shall be required to provide at least one (1) level 1 security feature.

4.1.2.7. Network: The Contractor shall maintain a site-to-site VPN between the Department and the Contractors facility to ensure stable and secure data exchange with the Department. The Contractor solution shall ensure that all data remains on the Contractor servers within the IoT Datacenter for maximum security of customer records. The Contractor shall not transfer or store any MVD customer data within its facilities. The Contractor shall continue to maintain the network requirements for operating with the Department.

4.1.2.8. Miscellaneous Application Components: The Contractor shall continue to maintain all registration data processes as performed under the provisions of this contract, thus allowing the continued support of miscellaneous MVD requirements as defined and in the future as this program evolves. Thus, the Contractor solution shall be able to accommodate special registration services for MVD as well as third-party entities.

4.1.2.9. License Plate Specifications: Font will be assessed at the time of award. We are aware that not all contractors have every font and the department will work with the selected contractor to develop the font needed moving forward after award. The department owns all license plate artwork files and will be able to have them transferred to the contractor at no charge. The Contractor application ensures that license plates are comprised of the following components:

4.1.2.9.1. Sheeted Aluminum – Automobile Plate

4.1.2.9.2. Plate Size: 6” X 12” or 6 1/8” X 12 1/8”

4.1.2.9.3. Plate Material: Aluminum Alloy 3105 H-122 (1/4 Hard)

4.1.2.9.4. Plate Thickness: 0.022”

4.1.2.9.5. Stock: 6” or 6 1/8” width, coil size I.D. 16”, O.D. 36” to a max of 40”

4.1.2.9.6. Tensile Strength: Not less than 17,000 P.S.I., not more than 45,000 P.S.I.

4.1.2.9.7. Average Density: Not to exceed 0.099 pounds per cubic inch.

4.1.2.9.8. The plate isn’t required to have a rim.

4.1.2.9.9. Surface Finished: Both sides to be treated with a light, tightly adherent, non-hexavalent chromium or chrome free conversion coating or that has been approved by the reflective sheeting supplier. The coating to be applied in conformance with specifications outlined in ASTM Designation B-449-93, class 2 or as revised. The surface should be free of any powdery residue, oil or other foreign material, which may affect the adhesion of the reflective sheeting.

4.1.2.10. Sheeted Aluminum: Motorcycle License Plate

4.1.2.10.1. Plate Size: 4” X 7” or 4 1/8” X 7 1/8”

4.1.2.10.2. Plate Material: Aluminum Alloy 3105 H-122 (1/4 Hard)

4.1.2.10.3. Plate Thickness: 0.022”

4.1.2.10.4. Stock: 4” or 4 1/8” width, coil size I.D. 16”, O.D. 36” to max of 40”

4.1.2.10.5. Tensile Strength: Not less than 17,000 P.S.I., Not more than 45,000 P.S.I.

4.1.2.10.6. Average Density: Not to exceed 0.099 pounds per cubic inch

4.1.2.10.7. The plate isn’t required to have a rim

4.1.2.10.8. Surface Finished: Both sides to be treated with a light, tightly adherent, non-hexavalent chromium or chrome free conversion coating or that has been approved by the reflective sheeting supplier. The coating to be applied in conformance with specifications outlined in ASTM Designation B-449-93, class 2 or as revised. The surface should be free of any powdery residue, oil or other foreign material, which may affect the adhesion of the reflective sheeting.

4.1.2.11. Embossed Copper: Automobile License Plate, Historical, Horseless Carriage, and Classic Car

4.1.2.11.1. Plate size: 6” X 12” or 6 1/8” X 12 1/8”

4.1.2.11.2. Plate material: Copper Alloy 20 oz.

4.1.2.11.3. Plate Thickness: .25” plus or minus .002”

4.1.2.11.4. Stock: 6” or 6 1/8” width, coil size I.D. 16”, O.D. 36” to max of 40”

4.1.2.11.5. Tensile Strength: ¼ Hard

4.1.2.11.6. Average Density: N/A

4.1.2.11.7. Paint: Roll coat license plate ink process.

4.1.2.11.8. Plate will have an embossed rim.

4.1.2.12. Embossed Copper: Motorcycle License Plate and Historical

4.1.2.12.1. Plate size: 4”x7” or 4 1/8” x 7 1/8”

4.1.2.12.2. Plate material: Copper Alloy 20 oz.

4.1.2.12.3. Plate Thickness: .25” plus or minus .002”

4.1.2.12.4. Stock: 4” or 4 1/8”width, coil size I.D. 16”, O.D. 36” to max of 40”

4.1.2.12.5. Tensile Strength: ¼ Hard

4.1.2.12.6. Average Density: N/A

4.1.2.12.7. Paint: Roll coat license plate ink process.

4.1.2.12.8. The plate will have an embossed rim

4.1.2.13. Quality Assurance Application: The Contractor solution shall ensure quality assurance techniques to ensure proper production of all Arizona approved license plates when actively producing plates in the DR scenario. The Contractor solution shall have barcode scanners mounted for scanning of the IMB barcodes to ensure a valid read; any invalid reads are rejected and staged for reprint. Once printing is complete, the license plates will be shipped to the Contractor fulfillment center for mailing.

4.1.2.14. Fulfillment Center Verification: The Contractor solution shall ensure the file is validated against the Contractor databases for a final check that all pieces have been produced. Once the mail pieces are delivered to the post office, the postal service shall confirm that the number of pieces received matches the file the Contractor solution sent. This process ensures from beginning to end that all license plate records have been produced and mailed.

4.1.2.15. Turn-Around Time: "Turn-around time" is defined as the amount of time that elapses between the Contractor receiving an accurate order file from MVD and the completed package entering the mail stream. MVD shall make available daily files seven (7) days a week, day one of the turn-around time schedule begins that business day. If the file is available after 8:00 am MST, day one of the turn- around time schedule begins the next business day. The required turn-around time is eight (8) business days. The Contractor is required to have one hundred percent (100%) of the completed packages into the mainstream within the required turn-around time. Any delays related to ACI production will not count towards the eight (8) business day turn-around time requirement.

4.1.2.16. Production Status: The Contractor shall ensure a status is kept for all license plate production when in DR mode and fulfillment from the time the file is received by the contractor until the license plate is mailed to the customer. The Contractor shall be responsible for providing reporting to MVD for the use of MVD staff to inquire the current status of a license plate at any time. All reports shall be made available for approval by the Contractor and designated MVD personnel. The Contractor shall provide reporting to include current orders, order history, current records and current status, record history, audit details, and performance metrics. Performance metrics shall include actual registration production time, order error percentages, and program specific cycle times. Audit reports shall allow administrators to review orders or individual records to determine production dates and times as well as production cycle dates and times. Order status shall be displayed as received, in production, or complete. Record level status in production includes the following:

4.1.2.16.1. Pre-production Testing: The Contractor shall develop test plans and test cases to systematically test all components of the Contractor system with special regard to redundant functions. The Contractor shall test all known potential error conditions to ensure that the system maintains automatic error reporting and failover functionality with no loss to production status. Test cases and test plans shall be fully executed and documented in the implementation process. All test cases shall be reviewed with MVD and the Contractor personnel for analysis and approval. The Contractor shall maintain Development and UAT environments to ensure proper testing and change migration.

4.1.3. Implementation

4.1.3.1. Installation: The Contractor personnel shall ensure the proper modification of the servers and the visibility of the Department network shares for file placement. The Contractor shall ensure that all systems are configured and operating within the parameters of the Department security guidelines as outlined.

4.1.3.2. Pre-production Testing: The Contractor shall systematically test all components of the Contractor system with special regard to application integration and redundant functions.

The Contractor shall test all known potential error conditions to ensure that system maintains automatic failover functionality and no loss to production status. The Contractor shall then coordinate with the Department to enable the system to interact with the MVD UAT functions to test simulated production events. The Contractor shall ensure that all production processes are replicated within the UAT environment and that said processes are documented for analysis.

4.1.3.3. Certification: The Contractor shall submit all test plans and test cases to the Department for analysis and approval. The Contractor shall meet with all involved Department personnel to review test results and discuss any potential issues and risks involved with switching the new system into production.

4.1.3.4. Support and Maintenance: The Contractor shall provide all support and maintenance for equipment, materials, and software required to support the MVD license plate production program. The Contractor shall provide a fully staffed support desk with a single toll free number to call for all support requests. Help Desk hours shall be established as 7:00 a.m. to 5:00 p.m., Monday through Friday, Arizona Mountain Standard Time (AZMST); excluding State observed holidays. The Contractor shall provide immediate response to all calls and provide escalated service response to any calls not fixed within one hour. The central fulfillment systems shall maintain a twelve (12) hour full resolution response time.

4.1.4. DR Plan:

4.1.4.1. The Contractor shall provide a copy of their general DR plan and establish procedures for the Department acceptance for the immediate transfer of data services that will provide a backup plan for license plate production if the Contractor production facility is compromised. The Contractor shall ensure it maintains a network connection to the Department and can access production files upon notification from the Contractor personnel. The Contractor staff shall be thoroughly trained in the requirements of the contractor’s DR plans and shall be ready to respond immediately. In the event of a site failover condition, the Contractor staff shall assist in performing all production requirements and fulfilling produced license plates as specified by the Department management.

4.2. Registrations, Functional Requirements, and Registration Forms

4.2.1. The size specifications for the Contractor provided registrations are:

4.2.1.1. Dimensions = 8.5” wide X 4” tall up to 8.5” wide by 11” tall

4.2.1.2. There is a registration decal measuring 1 3/8” x 1 1/8” on the document.

4.2.1.3. The Contractor shall conduct testing on a regular basis to ensure either the thermal transfer or toner based printing of the decal is adhering and not being compromised by any outside elements, traditional car washing chemicals or processes for at least five (5) years during use on a vehicle license plate.

4.2.1.4. All testing results shall be provided to the Department upon completion.

4.2.1.5. The decal must be made of a vinyl material that is self-destructive after application to the license plate. The decal must be retro reflective and include at least one, level one security feature.

4.2.2. Number of registrations per transaction, one (1) registration per vehicle for approximately 7,500 plates per day and/or 20,000 registration only mailings per day in the event the DR plan is activated.

4.3. Solution Management

4.3.1. The Contractor shall provide reporting capabilities with the proposed solution. Reports must be generated in real time. Desired reports include but may not be limited to:

4.3.1.1. Production volumes by day and operator selected along with specified time periods.

4.3.1.2. Jeopardy and violation production reporting. Jeopardy status is assigned to registration orders that are within one (1) day of mailing time requirement and not yet mailed. Violation status is for registrations mailed after the mailing time requirement.

4.3.1.3. Production time in days on an order and individual registration basis.

4.3.1.4. Production volumes by date received, produced, mailed and returned.

4.3.1.5. Service call and support incident reporting on a monthly basis.

4.3.1.6. System status reporting

4.3.2. The Contractor shall provide audit capabilities with the proposed solution. Desired audit components include but may not be limited to:

4.3.2.1. Inventory level discrepancies.

4.3.2.2. Transaction accountability. The Department desires to be able to review transaction details by time, date, status, and user

4.3.2.3. The Contractor shall employ user access control on all report and audit functions provided.

4.3.2.4. The Contractor shall perform periodic audits to verify physical stock counts match inventory system report counts.

4.3.3. Problem Reporting and Tracking Resolution

4.3.3.1. The performance standards, both before and after implementation, specified within this document are of particular importance to the Department, their purpose is:

4.3.3.1.1. To define the service levels that must be maintained to meet the Department’s commitment to private enterprise, other state agencies, and most important, the customers at large and;

4.3.3.1.2. To provide a basis for ensuring the Department is receiving adequate value from the Contractor’s product and services.

4.3.3.1.3. Performance Standards serve little purpose unless they can be monitored and tracked. As a part of the contract, the Contractor shall perform data collection and reporting processes for monitoring and measuring their performance against contractual obligations. Service level reports shall be provided to the Department monthly.

4.3.4. The Contractor shall have problem management procedures in place. These procedures shall include how problems will be reported and documented, and the method(s) employed to determine problem severity levels for the prioritization and resolution of problem types across the supported user group.

4.3.5. Severity Levels

4.3.5.1. The Contractor shall provide the Department with a System Security Plan (SSP) that demonstrates NIST, NASPO, and FIPS compliance with regard to data and physical security.

The reported problem shall immediately be assigned a severity level according to the reported business risk and potential impact of the problem. The severity level determines how quickly the problem shall be resolved or escalated. The Contractor shall communicate all action plans with the Department and incorporate the following severity level categorization and response time scheme(s):

Severity Response Time

Communicate Action Plan

1 2 Hours 1 Hour

2 4 Hours 1 Hour

Severity 1 Emergency Calls - Entire system is down. Unable to perform any system functions.

Severity 2

Standard Service Calls - Limited impact to the system (partial features and / or functionality failure with available work around)

Response Time

The time elapsed between the report of a problem and the time it takes a technical support person to acknowledge, via e-mail, the issue during the Department’s regular business hours, Monday through Friday.

Action Plan Diagnosis of issue and recommended plan of resolution.

4.4. Disaster Recovery Plan

4.4.1. The Contractor shall provide details to procedures utilized for disaster recovery with regard to production facilities, data, software, production materials, and hardware components.

4.4.2. The Contractor shall provide a disaster recovery plan prior to implementation. The disaster recovery plan must address at a minimum the following details:

4.4.2.1. Disaster recovery processes for foreseeable events that can interrupt registration fulfillment processes, license plate production and fulfillment procedures.

4.4.2.2. Disaster recovery event identification processes and procedures

4.4.2.3. Escalation processes and procedures.

4.4.2.4. Reporting and communication processes and procedures.

4.4.2.5. The Contractor shall demonstrate to the Department on an annual basis the disaster recovery processes and procedures. The Contractor shall develop a comprehensive testing plan that can be initiated.

4.4.2.6. A secondary facility for registration fulfillment, the contractors DR plan for license plate production and fulfillment procedures.

4.4.2.7. Resuming fulfillment center activities.

4.4.2.8. Replacement of equipment and materials.

4.5. Functional Requirements for Central Fulfillment License Plate

4.5.1. The Contractor solution will receive files from MVD on a daily basis to be processed and mailed. The contractor would not be held responsible for delays in receiving the daily production files from the department. The production turn-around timeline starts from the time the contractor receives the file from the department.

4.5.2. The Contractor solution must be able to accommodate the JSON file formats for vehicle and motorcycle size license plates.

4.5.3. The Contractor solution must log and send confirmation emails upon file receipt for each specified format with record counts. The Contractor solution must send emails also denoting if files of each format do not exist or contain zero record counts.

4.5.4. The Contractor must print all provided license plate records daily in proper format and design. The Contractor solution shall barcode scan all license plates at print time to ensure barcode is readable. Any error license plates are to be logged and replaced at the end of production.

4.5.5. The Contractor solution must log and verify license plate counts and mailing counts match original record files received for the day. All logged information and error conditions are to be made available real time to the Department via the Contractor solution reporting.

4.5.6. The Contractor shall at a minimum provide the following reports:

4.5.6.1. Production reports that include the following information:

4.5.6.1.1. Job received;

4.5.6.1.2. Job batched;

4.5.6.1.3. Job printed;

4.5.6.1.4. Quality and Assurance pass fail reports;

4.5.6.1.5. Jobs that Shipped;

4.5.6.1.6. Mailing Status;

4.5.6.1.7. Agreed upon performance metrics;

4.5.6.1.8. Issue(s) reporting and resolution; and

4.5.6.1.9. Plate returns

4.5.7. The Contractor Intranet shall provide historical reporting on orders and individual records in detail with regards to production dates and production cycle time.

4.5.8. The Contractor Intranet shall provide searchable time frame parameters to locate orders and/or records for audit purposes.

4.5.9. The Contractor shall provide billing reports as specified by the Department.

5. Contractor’s Responsibilities

5.1. Central Fulfillment Services

5.1.1. The state expects the contractor to work closely with ACI ensuring normal daily plate files are transferred and received, daily pick-ups of completed plates, and delays in production to the contractor are reported. If the contractor decides to utilize ACI materials the contractor will be expected to outline terms and conditions with ACI.

5.1.2. The Contractor shall work with the Department to facilitate production and mailing of registrations.

5.1.3. The Contractor shall provide all of the necessary and compatible equipment, supplies, and training to allow license plate fulfillment and with the capacity to handle large daily demands during peak plate months at no additional expense beyond the license plate transactional fee. The transactional fee will also cover any costs associated with the fulfillment center.

5.1.4. The Contractor shall bill the Department monthly based on the number of complete transactions that occur in any given month multiplied by the applicable license plate transaction fee.

5.1.5. The Contractor understands and agrees that inmate(s) employed by ACI must never have access to the Department’s customer personal information related to the license plates being produced. The contractor will manage all plate production activities and will process the department’s daily JSON file to segregate the plate production and customer’s registration. The contractor will then pass on the plate production file to ACI for daily plate production. They must ensure that ACI does not receive any customer information other than the plate type and number that needs to be printed.

5.1.6. The Contractor shall work in conjunction with the Department and ACI to ensure license plate designs compliant with all 2020 American Association of Motor Vehicle Administrators (AAMVA) License Plate Standards, along with State, and State Law Enforcement standards and expectations.

5.1.7. The Contractor shall have the ability to receive and handle a daily order file(s) from the Department which will contain all necessary information related to plate messaging, the registration document and delivery to customers.

5.1.8. The Contractor shall provide a web service that provides real-time status updates for all license plate transactions – from order receipt to order completion/shipment, in order for the Department to provide customer status updates. The Contractor shall also provide access to a web portal to the Department.

The web portal shall also have the ability to generate daily production reports and management summary reports on performance including, but not limited to, volumes, quality, and turn-around time.

5.1.9. The Contractor shall take steps to reasonably ensure that quality control procedures are in place that reasonably ensure that license plates delivered to customers meet or exceed the Department quality specifications as provided in the contract. This can be done while the contractor is completing the fulfillment function by simply doing a visible acuity check of the plate to ensure the plate is in good order prior to placing in the envelope.

5.1.10. The Department is open to changes in the technology and materials for the production of the license plates and encourages the Contractor to provide the best solution at the best price in addition to providing pricing for the equipment and materials specified. The Contractor shall also provide information on how the alternative technology or materials would be beneficial or cost effective.

5.1.11. The Contractor shall utilize a single mail piece to the customer by sending a registration with license plate in one envelope. In the event the Department was unable to process their registrations. The vendor would need to print the daily registration forms and mail to customers using a single envelope.

5.1.12. The Contractor shall provide fulfillment center mailing services. The Contractor must be able to utilize bar codes to ensure that the correct license plate(s) and corresponding registration documentation are mailed together.

5.1.13. The Contractor is encouraged to provide mailing and postage solutions that will increase efficiency, delivery time, and provide the Department maximum savings with regard to postage.

5.1.14. The Contractor is responsible for all shipping and packaging costs related to license plate distribution and accompanying registration documents. All packaging practices and materials must be approved by the Department.

5.1.15. The Contractor shall base their postage rates on current United States postage rates as of current date.

This cost will be reviewed annually during the life of the contract and may be adjusted through the proper contract amendment process.

5.1.16. The Contractor shall provide any required training for all relevant Department and ACI personnel on the contractors proposed process, materials, equipment, and software that will be utilized for this contract.

5.1.17. The Contractor shall provide a plan for maintaining physical security of any facilities and process for handling and disposal of any damaged or returned license plates. This plan must also include details about the Contractor’s cyber security plan. Any plates or registrations that are not deliverable or final returned to the fulfillment facility will need to be destroyed by the contractor.

5.1.18. The Contractor shall meet turn-around-time requirements for license plate fulfillment. Turn-around time is defined as the amount of time that elapses between the receiving an accurate order file from the Department and the completed package entering the mail stream from the fulfillment center. The turn-around time schedule begins the next business day from when the Contractor receives the order file. For this project, the required turn-around time is eight (8) business days. The Contractor is required to have one hundred percent (100%) of the completed packages into the mail system within the required turn-around time.

5.2. Implementation

5.2.1. Process Management

5.2.1.1. The Contractor shall provide a Program Manager with strong experience in both flat and embossed license plate production, registration printing and fulfillment services.

5.2.1.2. Program Manager will ensure all Department processes…