ESBD_408188_1744058308323_Promotional Products RFP 2025 - Final.pdf

TEXAS LOTTERY COMMISSION

REQUEST FOR PROPOSALS

FOR

PROMOTIONAL PRODUCTS

ISSUED April 7, 2025, 4:00 P.M. CENTRAL TIME Request for Proposal No. 362-2025-0002

PAGE i

REQUEST FOR PROPOSALS FOR TABLE OF CONTENTS

TABLE OF CONTENTS

TABLE OF CONTENTS ...................................................................................................................... I

GLOSSARY OF TERMS

1. GENERAL INFORMATION

1.1. Purpose

1.2. Background

1.3. Our Vision and Mission

1.4. Our Core Values

1.5. Schedule of Events

1.6. Successful Proposer’s / Lottery Relationship

1.7. Procurement Authority

1.8. Proposals Subject to The Texas Public Information Act

1.9. Misunderstanding or Lack of Information

1.10. Rejection of Proposals and Cancellation of RFP

1.11. Ownership of Proposals

1.12. Incurred Expenses

1.13. Proposal Tenure

1.14. No Texas Lottery Obligations

1.15. Successful Proposer’s Obligations

1.16. Captions

1.17. Parts Incorporated

2. PROPOSAL PROCESS

2.1. Contact Person

2.2. Prohibition Against Unauthorized Contact

2.3. Pre-Proposal Conference

2.4. Questions

2.5. Submission of Proposal

2.6. Response Format & Contents

2.7. Letter of Transmittal

2.8. Executive Summary

2.9. Proposer’s Contracting Authority

PAGE ii

2.10. Proposer’s Cost Proposal

2.11. Multiple Proposals

2.12. Changes, Modifications and Cancellation

2.13. Updates to Information Supporting a Proposal

2.14. Additional Information

2.15. Proposal Evaluation and Contract Award

2.16. Samples

2.17. Site Visits and/or Oral Presentations

2.18. Protest Procedure

3. CONTRACTUAL TERMS AND CONDITIONS

3.1. Introduction

3.2. Governing Law and Venue

3.3. Contract Elements

3.4. Amendments

3.5. Non-Waiver

3.6. Clarification of Texas Lottery’s Intent

3.7. Relationship of the Parties

3.8. Payment

3.9. Assignments

3.10. Subcontracting

3.11. Lottery Approval of Staffing

3.12. Background Investigations

3.13. Compliance

3.14. Term of Contract

3.15. Annual Pricing Adjustments

3.16. Discounts

3.17. Expedited Delivery Charges

3.18. Termination at Will

3.19. Termination for Cause

3.20. Termination Related to Availability of Legislative Appropriations

3.21. Termination Without Penalty

3.22. No Liability Upon Termination

3.23. Warranties

PAGE iii

3.24. Licenses and Permits

3.25. Successful Proposer Site Visits

3.26. Intellectual Property Rights

3.27. Pre-Existing and Third-Party Rights

3.28. Remediation

3.29. Accounting Records

3.30. Right to Audit

3.31. Indemnification

3.32. Insurance

3.33. Self-Insurance

3.34. Commercial General Liability Insurance

3.35. Workers’ Compensation & Employer’s Liability Insurance

3.36. Business Automobile Insurance

3.37. Performance Bond

3.38. Disclosure of Litigation

3.39. Changes in Ownership

3.40. Force Majeure / Delay of Performance

3.41. Taxes, Fees and Assessments

3.42. Media Releases

3.43. Advertising

3.44. Hiring of Texas Lottery Personnel

3.45. Hiring of Lobbyist, Consultant and/or Advisor; Supplemental Information

3.46. Notices

3.47. Non-Disclosure

3.48. Usufruct

3.49. Ticket Purchase

3.50. Liquidated Damages

3.51. Sanctions and Remedies Schedule

3.52. Dispute Resolution

3.53. Certifications

3.54. Preferences

3.55. Deceptive Trade Practices; Unfair Business Practices

3.56. Immigration

PAGE iv

3.57. Electronic and Information Resources Accessibility Standards, as Required by 1 TAC Chapters 206 and 213 (Applicable to State Agency and Institution of Higher Education Purchases Only)

3.58. Cybersecurity Training, Cloud Computing, Data Protection and Security

3.59. False Statements; Breach of Representations

3.60. Limitation on Authority; No Other Obligations

3.61. Proposer Assignment

3.62. Code of Conduct

3.63. Contact with Texas Lottery Commission

3.64. Incidents and Anomalies

3.65. U.S. Department of Homeland Security’s E-Verify System

3.66. Non-Exclusive Contract

3.67. Survival

4. REQUIRED INFORMATION

4.1. Experience of Proposer

4.2. Experience of Key Personnel

4.3. Proposer References

4.4. Contact Person

4.5. Samples

4.6. Conflict of Interest

4.7. Financial Soundness

4.8. Background Investigations

4.9. Disclosure of Interested Parties

5. HISTORICALLY UNDERUTILIZED BUSINESS (HUB) PARTICIPATION

5.1. HUB Requirement

5.2. HSP Submission and Texas Lottery Review

5.3. Assistance for Preparation of HSP

5.4. Requirements for Completing the HSP Forms

5.5. Subcontracting Opportunities

5.6. Post-Contract Award

6. SCOPE OF SERVICES

6.1. Description of Products

6.2. Product Development Schedule

6.3. Work Order

PAGE v

6.4. Tariffs

6.5. Post Executed Changes (Change Order)

6.6. Work Order Pre-Production Sample

6.7. Materials and Workmanship

6.8. Quality Assurance

6.9. Camera-Ready Artwork

6.10. Color

6.11. Print Options

6.12. Recycled Materials

6.13. Packaging, Shipping and Delivery

6.14. Late Delivery

6.15. Non-Conforming Promotional Products

6.16. Order Quantities

6.17. Partial Orders

6.18. Customer Service

6.19. Preliminary Design Concepts

6.20. Costs

6.21. Warranties

6.22. Promotional Product Specifications

6.23. Offered Option - Promotional Products

ATTACHMENT A PROPOSER’S COMMITMENT

ATTACHMENT B FINANCIAL COMMITMENT AND RESPONSIBILITY

ATTACHMENT C HUB SUBCONTRACTING PLAN

ATTACHMENT C-1 HSP QUICK CHECK LIST

ATTACHMENT C-2 HUB SUBCONTRACTING OPPORTUNITY NOTIFICATION FORM

ATTACHMENT D TEXAS GOVERNMENT CODE §466.155

ATTACHMENT D-1 BACKGROUND INFORMATION CERTIFICATION

ATTACHMENT E SAMPLE PERFORMANCE BOND

ATTACHMENT F SCORING MATRIX

ATTACHMENT G COST PROPOSAL

ATTACHMENT H TEXAS GOVERNMENT CODE CHAPTER 552 SUBCHAPTER J. ADDITIONAL

PROVISIONS RELATED TO CONTRACTING INFORMATION

ATTACHMENT I PROMOTIONAL PRODUCT WORK ORDER

PAGE vi

ATTACHMENT J PROMOTIONAL PRODUCT ORDER HISTORY

ATTACHMENT K TEXAS LOTTERY WAREHOUSE LOCATIONS

ATTACHMENT L TEXAS LOTTERY LOGO

ATTACHMENT M CHANGE ORDER

REQUEST FOR PROPOSALS FOR GLOSSARY OF TERMS

GLOSSARY OF TERMS

This Glossary assigns definitions to the listed terms. The definition given to a term listed in this Glossary applies whenever the capitalized term appears in this Request for Proposals (RFP) and in any response, including a Proposal, to this Request for Proposals.

Term Definition Apparent Successful Proposer

The Proposer recommended by the evaluation committee and approved by the Executive Director, subject to the execution of a completed contract.

Business Hours The Texas Lottery’s Business Hours are 8:00 a.m. to 5:00 p.m. CT, Monday through Friday, except State holidays.

Contract The agreement entered into by the Texas Lottery and the Successful Proposer, which will incorporate the contents of this RFP and the Successful Proposer’s Proposal, except as specifically provided to the contrary in the Contract and any amendments to the Contract.

Contract Award The day of the Contract announcement after the signing of a Contract between the Texas Lottery and the Successful Proposer.

Contract Term The time period when the Contract is in effect, which unless otherwise indicated includes any extension period.

CPA Texas Comptroller of Public Accounts.

Day A calendar Day.

Executive Director The Executive Director of the Texas Lottery Commission or an employee of the Texas Lottery Commission authorized to act on behalf of the Executive Director.

Fiscal Year The Texas Lottery’s fiscal year, which begins on September 1 and ends on August 31 of the following year.

Historically Underutilized Business (HUB)

A Historically Underutilized Business is a business that is certified by the State of Texas that (1) is at least 51% owned by an Asian Pacific American, Black American, Hispanic American, Native American, American women, and/or Veteran (as defined by 38 U.S.C. Section 101(2)) who have suffered at least a 20 percent service-connected disability as defined by 38 U.S.C. Section 101(16); (2) is a for-profit entity that has not exceeded the size standards prescribed by 34 Texas Administrative Code (TAC) §20.294, and has its principal place of business in Texas; and (3) has an owner residing in Texas with a proportionate interest who actively participates in the control, operations and management of the entity's affairs. For further explanation, see the Comptroller of Public Accounts (CPA) HUB rule definitions at 34 TAC §20.282.

HSP The Historically Underutilized Business Subcontracting Plan (HSP) required by Chapter 2161 of the Texas Government Code and by Texas Lottery Commission Rule, 16 TAC §403.301 (See Attachment C.).

Incident An event or occurrence.

Intellectual Property Rights The worldwide legal rights or interests evidenced by or embodied in:

(i) any idea, design, concept, personality right, method, process, technique, apparatus, invention, discovery, enhancement or improvement, including any patents, trade secrets, and know-how; (ii) any work of authorship, including any copyrights, moral rights, reversionary rights or neighboring rights; and any derivative work thereto (iii) any trademark, service mark, trade dress, trade name, or other indicia of source or origin; (iv) domain names (v) any other proprietary or similar rights, and (vi) any applications, provisionals, registrations, renewals, continuations, continuations-in-part, or divisionals relating thereto. The Intellectual Property Rights of a party include all worldwide legal rights or interests that the party may have acquired by assignment or license with the right to grant sublicenses.

Major And Prime Contracts

The following Texas Lottery contracts are considered major or prime contracts: lottery operations and services, scratch (instant) ticket manufacturing and services, advertising media services, lottery drawings certified public accounting services, drawings studio and production services, promotional products, TLC warehouse lease, internal audit services, internal control system and related services, security management system and monitoring services, risk review and compliance monitoring services, website hosting services, Houston claim center lease, retailer bonus payment management services, trademark license and promotional agreements with the Dallas Cowboys and the Houston Texans, promotional and sponsorship agreement with the National Medal of Honor Museum Foundation. The Texas Lottery may add or delete major or prime contracts at its sole option.

Offered Option

Offered Options are not requested in the response to this RFP, but may be identified by the Proposer and included in its Proposal. A Proposer is not obligated to include an Offered Option in the Proposal. This is an opportunity for Proposers to offer options that the Texas Lottery may not have been aware of at the time the RFP was written. The Texas Lottery makes no commitment to quantity or timing for acquisition of Offered Options and offered options are not considered during evaluation of Proposals.

Proposal

All information and materials submitted by a Proposer in response to this RFP. This includes the sealed Cost Proposal, Technical Proposal, and other information and materials provided to the Texas Lottery by the Proposer prior to Contract Award.

Proposer

An individual or entity that submits a Proposal. The term includes anyone acting on behalf of the individual or entity that submits a Proposal, such as agents, employees and representatives.

Responsive Proposal A Proposal submitted which conforms in all material respects to the RFP, as determined solely by the Texas Lottery.

RFP This Request for Proposals.

SPD Statewide Procurement Division (SPD) is a division of the Texas Comptroller of Public Accounts.

State The State of Texas and its agencies, boards and commissions, officers and employees.

Subcontractor A person who contracts with the Successful Proposer to work, to supply commodities, or contribute toward completing work for the Texas Lottery.

Successful Proposer The Proposer with whom the Texas Lottery executes a contract to provide the goods and services that this RFP requires.

Texas Lottery Commission, Texas Lottery, Lottery or

TLC

That agency created by Chapters 466 and 467, Texas Government Code. The Texas Lottery Commission may be referred to as the Texas Lottery, Lottery or TLC throughout this document.

Working Days Business days occurring Monday through Friday except for the legal holidays observed by the State of Texas. The terms “working days” and “business days” may be used interchangeably.

Works

Any tangible or intangible items or things that have been or will be prepared, created, maintained, serviced or developed by a Successful Proposer (or such third parties as the Successful Proposer may be permitted to engage) at any time following the effective date of the Contract, for or on behalf of TLC under the Contract, including but not limited to any (i) works of authorship (such as literary works, musical works, dramatic works, choreographic works, pictorial, graphic and sculptural works, motion pictures and other audiovisual works, sound recordings and architectural works, which includes but is not limited to lottery games, game names, game designs, ticket format and layout, manuals, instructions, printed material, graphics, artwork, images, illustrations, photographs, computer software, scripts, object code, source code or other programming code, HTML code, data, information, multimedia files, text web pages or web sites, other written or machine readable expression of such works fixed in any tangible media, and all other copyrightable works and any derivative works thereto), (ii) trademarks, service marks, trade dress, trade names, logos, or other indicia of source or origin, (iii) ideas, designs, concepts, personality rights, methods, processes, techniques, apparatuses, inventions, formulas, discoveries, enhancements or improvements, including any patents, trade secrets and know-how, (iv) domain names,

(v) any copies, and similar or derivative works to any of the foregoing,

(vi) all documentation and materials related to any of the foregoing,

(vii) all other goods, services or deliverables to be provided to TLC under the Contract, and (viii) all Intellectual Property Rights in any of the foregoing.

REQUEST FOR PROPOSALS FOR PART 1

PROMOTIONAL PRODUCTS GENERAL INFORMATION

1. GENERAL INFORMATION

1.1. Purpose

The Texas Lottery is issuing this Request for Proposals (RFP) to obtain proposals from qualified Proposers to provide a variety of promotional products. The Texas Lottery is committed to generating revenue for the State of Texas through the responsible management and sale of entertaining lottery products. In order to generate revenue for the State of Texas, the Texas Lottery creates awareness and interest for its products and services through the use of promotional products. The distribution of promotional products provides a tangible, actual winning experience associated with product trial.

The Texas Lottery also uses promotional products to act as an incentive in retailer sales venues to encourage the selling of lottery products.

The Texas Lottery has identified the following promotional products that may be procured under any contract(s) that results from this RFP. Proposers shall be able to provide (directly or through subcontracting as per Part 5 of this RFP) all of the promotional products identified in this section consistent with the specifications for each product identified in Part 6. For complete product description refer to Section 6.22 of the

RFP.

PROMOTIONAL ITEMS Beach Towel

Wireless Speaker Umbrella

Cotton Tote Bag DRINKABLE ITEMS

Sunglasses Vacuum Audio Bottle

Lanyards Stainless Steel Bottle w/Wireless Charger & Power Bank

Wrapping Paper Travel Cup

Magnet Note Pads Travel Tumbler

Insulated Lunch Cooler Bag WEARABLE ITEMS

Roll-Up Stadium Blanket Constructed Military Camouflage Baseball Cap

Flashlight Trucker Style Cap

Sun Shade Short Sleeve T-Shirt

Duffle Bag Long Sleeve T-Shirt

Reusable Grocery Bag TEXAS LOTTERY CUSTOM ITEMS

Clear Tote Bag Brass Holiday Ornament

Portable Bluetooth Speaker & Wireless Charger

Scratch Coin

Beverage Holder Token

At its sole option, following review and evaluation of all Responsive Proposals submitted in response to this RFP, the Texas Lottery desires to select multiple Successful Proposers that demonstrate superior technical qualities and outstanding service, and that offer competitive pricing. The Texas Lottery intends to take advantage of the production and shipping capabilities offered by different merchandisers to accommodate the Texas Lottery’s scheduling needs.

All Proposers shall be capable of providing all of the goods and services set forth in this RFP. Unless otherwise provided herein or in any contract resulting from this RFP, the terms and conditions of this RFP apply to all Proposers.

Proposers responding to this RFP are expected to provide the Texas Lottery with information, evidence and demonstrations that will permit awarding a contract in a manner that provides the best value to the Texas Lottery. Proposers shall propose on all components and submit a single proposal for all goods and/or services in response to this

RFP.

1.2. Background

A history of promotional product purchases is included as Attachment J of this RFP.

Reported quantities, based on Fiscal Years 2023 and 2024, are being provided for informational purposes only and should not be construed as a minimum or maximum that the Texas Lottery will order, or be interpreted as exact specifications for the products included in this RFP. Orders will be placed on an as-needed basis.

1.3. Our Vision and Mission

Vision – To be the preeminent Lottery and Charitable Bingo agency through innovative leadership.

Texas Lottery Mission – The Texas Lottery is committed to generating revenue for the State of Texas through the responsible management and sale of entertaining lottery products. The Texas Lottery will incorporate the highest standard of security, integrity and responsible gaming principles, set and achieve challenging goals, provide quality customer service and utilize a TEAM approach.

Charitable Bingo Mission – Provide authorized organizations the opportunity to raise funds for their charitable purposes by conducting bingo. Determine that all charitable bingo funds are used for a lawful purpose. Promote and maintain the integrity of the charitable bingo industry throughout Texas.

1.4. Our Core Values

Integrity and Responsibility — The Texas Lottery Commission works hard to maintain the public trust by protecting and ensuring the security of our lottery games, systems, drawings and operational facilities. We value and require ethical behavior by our employees, licensees and vendors. We promote the integrity of charitable bingo in Texas for the benefit of charitable organizations.

Innovation — We strive to incorporate innovation into our products to provide the citizens of Texas with the best entertainment experience available through our products.

We pursue the use of technology that enhances the services that we provide to our customers and reduces our operating expenses. All proposed innovations must be authorized by Texas law, and do not include video lottery, casino gaming, internet-based lottery sales, fantasy sports, or any other activities not authorized by law.

Fiscal Accountability — We emphasize fiscal accountability by ensuring that all expenditures directly or indirectly generate revenue, enhance security, fulfill regulatory requirements, improve customer service and/or boost productivity. We recognize our responsibility in generating revenue for the State of Texas without unduly influencing players to participate in our games. We maximize benefits to charities through the continual examination and review of charitable bingo operations.

Customer Responsiveness — The Texas Lottery Commission takes pride in providing exemplary service to the people of Texas through the courteous dissemination of clear and accurate information about our products, services and regulatory functions. We seek and respond to feedback expressed by our employees, retailers, licensees and the playing and non-playing public. We apply this feedback in the development of our products and in the services that we provide.

Teamwork — We are committed to creating an environment of mutual respect where open, honest communication is our cornerstone. We embrace the diversity of our team and individual perspectives in working together to achieve our common goals.

Excellence — We strive for excellence by taking a position of leadership on issues that impact the Texas Lottery Commission and achieve challenging goals by focusing on our core values.

1.5. Schedule of Events

The following time periods are set forth for informational and planning purposes only.

The Texas Lottery reserves the right to change any of the time periods and will post all changes on the Electronic State Business Daily, https://www.txsmartbuy.gov/esbd and/or the Texas Lottery website, http://www.texaslottery.com (Click on About, Doing Business with TLC, Procurement).

1.6. Successful Proposer’s / Lottery Relationship

The Texas Lottery Commission is a part of the Executive Branch of Texas State Government. The Texas Lottery will not relinquish control over lottery operations. The Successful Proposer shall function under the supervision of the Texas Lottery. Its operations will be subject to the same scrutiny and oversight that would apply if all operations were performed by Texas Lottery® employees. Accordingly, all operations shall be conducted in adherence to applicable statutes and the highest ethical standards.

1.7. Procurement Authority

This RFP and all activities leading toward the execution of a written contract under this RFP are being conducted in accordance with the State Lottery Act (Tex. Gov't Code. §§

Date Event April 7, 2025 (4:00 p.m., CENTRAL TIME)

Issuance of RFP

April 23, 2025 (1:30 p.m., CENTRAL TIME)

Pre-Proposal Conference (Virtual conference -see Section 2.3.)

April 30, 2025 (4:00 p.m., CENTRAL TIME) (Late Questions will not be answered)

Written Questions Due

On or before May 1, 2025

Responses to Written Questions Issued

May 15, 2025 (4:00 p.m., CENTRAL TIME)

Final date for submission of draft HSP forms and final date to conduct one-on-one workshops (Zoom, TEAMS or telephone conference)

June 2, 2025 (4:00 p.m., CENTRAL TIME) (Late Proposals will not be considered)

Deadline for Proposals

On or before September 3, 2025 (or as soon as possible thereafter)

Announcement of Apparent Successful Proposer https://www.txsmartbuy.gov/esbd http://www.texaslottery.com/

466.001, et seq.), as amended; the Texas Lottery's administrative regulations (16 TAC §§ 401.101, et seq.); and other applicable laws of the State of Texas. All Proposers should read and be familiar with the State Lottery Act and 16 TAC §401.101-103.

1.8. Proposals Subject to The Texas Public Information Act

The Texas Lottery is subject to the Texas Public Information Act (Act) (Chapter 552, Government Code). Proposals submitted to the Texas Lottery in response to this RFP are subject (in their entirety) to release by the Texas Lottery as public information. A Proposal, or specific parts thereof, may, however, be shown by the Proposer to fall within one or more of the exceptions to disclosure provided in the Act, the State Lottery Act or other applicable law. Marking an entire Proposal as “confidential” or “copyrighted” is unacceptable. If a Proposer believes that parts of its Proposal are confidential under the Act, it should specify the confidential information by marking “Confidential” on each page or by each paragraph containing such information prior to submitting the Proposal to the Texas Lottery. In response to this section, Proposers shall provide the Texas Lottery with specific and detailed reasons for each item marked “Confidential”. Vague and general claims to confidentiality are not acceptable. This detail is necessary so that the Texas Lottery will have sufficient information to provide to the Attorney General of Texas, if a ruling regarding the confidentiality of such information is requested. Failure of a Proposer to respond to such notification may result in the release of all or part of the Proposal as public information. It is the Proposer’s obligation to submit briefing to the Office of the Attorney General setting forth the basis upon which the requested information should remain confidential. The Attorney General may determine all or part of a Proposal to be public information even though parts of the Proposal were marked “Confidential” by the Proposer. Additionally, see Sec. 552.0222 of the Act relating to contracting information that is considered public and shall be released.

The Texas Lottery assumes no responsibility for asserting legal arguments to the Attorney General on behalf of Proposers.

Proposers are advised to consult with their legal counsel concerning disclosure issues resulting from this procurement process and to take precautions to safeguard trade secrets and other proprietary information.

The requirements of Subchapter J of the Act may apply to this Proposal and the Successful Proposer, contractor, or vendor agrees that the Contract can be terminated if the Successful Proposer, contractor or vendor knowingly or intentionally fails to comply with a requirement of that subchapter. See Attachment H.

1.9. Misunderstanding or Lack of Information

By submitting a Proposal, a Proposer agrees that it fully understands and will abide by the terms and conditions of the RFP, and it will not make any claims for, or have any rights to, cancellation or relief without penalty because of any misunderstanding or lack of information. The Executive Director reserves the right to accept Proposals by waiving minor technicalities if the Executive Director, within his or her sole discretion, determines it to be in the best interests of the Texas Lottery. The decision of the Executive Director shall be conclusive, and subject to protest under Section 2.18 of this RFP.

1.10. Rejection of Proposals and Cancellation of RFP

Issuance of this RFP and/or retention of Proposals does not constitute a commitment on the part of the Texas Lottery to award a contract. The Texas Lottery maintains the right to reject any or all Proposals, and to cancel this RFP, if the Texas Lottery, in its sole discretion, considers it to be in its best interests to do so.

1.11. Ownership of Proposals

All materials submitted by a Proposer will become the property of the Texas Lottery and may be used as the Texas Lottery deems appropriate.

1.12. Incurred Expenses

The Texas Lottery accepts no obligations for costs incurred in preparing and submitting a Proposal. Proposals shall be submitted at the sole expense of the Proposer. All Proposals shall be prepared simply and economically, providing a straightforward, concise delineation of the Proposer’s capabilities to satisfy the requirements of this RFP.

1.13. Proposal Tenure

All Proposals shall be valid for a period of two hundred and seventy (270) Days from the deadline for submitting Proposals.

1.14. No Texas Lottery Obligations

The Texas Lottery reserves the right to select qualified Proposals to this RFP without discussion of the Proposals with Proposers. It is understood that all Proposals will become a part of the Texas Lottery’s official procurement files after the Contract has been awarded or the procurement has been terminated, and will be available for public inspection except for portions that the Proposer has designated as proprietary and confidential (see Sections 552.110 and 552.305 of the Public Information Act and RFP Section 1.8 above).

1.15. Successful Proposer’s Obligations

The Successful Proposer shall always be responsible for the performance of any contractual obligations that may result from the award of the Contract and shall be liable for the non-performance of any or all Subcontractors.

1.16. Captions

The captions to the sections of this RFP are for convenience only and are not part of the RFP’s substantive terms.

1.17. Parts Incorporated

All attachments listed in the Table of Contents are incorporated into and expressly made a part of this RFP.

REQUEST FOR PROPOSALS FOR PART 2

PROMOTIONAL PRODUCTS PROPOSAL PROCESS

2. PROPOSAL PROCESS

2.1. Contact Person

The sole point of contact for communications concerning this RFP will be Jake Lowe, whose mailing address and email address, are as follows:

Jake Lowe CTCD, CTCM Contracts Specialist

Texas Lottery Commission P. O. Box 16630

Austin, TX 78761-6630 Phone (512) 344-5375 contracts@lottery.state.tx.us

The Texas Lottery headquarters’ physical address for deliveries is:

Jake Lowe CTCD, CTCM Contracts Specialist

George H.W. Bush State Office Building Texas Lottery Commission 1801 N. Congress Avenue

Austin, TX 78701

2.2. Prohibition Against Unauthorized Contact

The Texas Lottery is committed to a procurement process that maintains the highest level of integrity. Accordingly, Proposers, as well as their agents, liaisons, advocates, lobbyists, legislative consultants, representatives or others promoting their position, are limited to those communications authorized by and described in this RFP. Any attempt to influence any of the participants, whether that attempt is oral or written, formal or informal, direct or indirect, outside of this RFP process is strictly prohibited.

Should allegations of improper contact be made prior to Contract Award, the Executive Director may investigate those allegations and, in his sole discretion, disqualify a Proposer.

2.3. Pre-Proposal Conference

Prospective Proposers should plan to attend a virtual Pre-Proposal Conference. See the Schedule of Events for the date and time. The Pre-Proposal Conference will include an overview of the RFP and a presentation on the HUB Subcontracting Plan (HSP) requirements. A question-and-answer session will also take place regarding general, technical and HSP questions. Attendance at the Pre-Proposal Conference is recommended, but not mandatory. A link to the virtual Pre-Proposal Conference will be posted on the Texas Lottery website at https://www.texaslottery.com and on the Electronic State Business Daily (ESBD), https://www.txsmartbuy.gov/esbd in advance of the day and time listed in the Schedule of Events. The Texas Lottery intends to use Microsoft TEAMS for the conference. A video of the Pre-Proposal Conference will be posted on the Texas Lottery website.

2.4. Questions

Written questions concerning this RFP will be accepted and responses posted on the Electronic State Business Daily (ESBD), https://www.txsmartbuy.gov/esbd, and the Texas Lottery website, https://www.texaslottery.com/ according to the timetable established in the Schedule of Events. Questions received after the deadlines set in the Schedule of Events may be reviewed by the Texas Lottery, but will not be answered. Any addenda or amendments, whether made as a result of a prospective Proposer’s written questions or otherwise, will be posted on the ESBD and the Texas Lottery website. It is the responsibility of the Proposer to check these websites for any additional information regarding this RFP.

Questions shall be submitted by email by the question submission deadline to:

contracts@lottery.state.tx.us

A Proposer shall submit questions in writing and is responsible for obtaining clarification as to any ambiguity, conflict, discrepancy, exclusionary specification, omission or error in this RFP (collectively, errors) prior to submitting a Proposal, but in no event shall be entitled to additional compensation, relief or time by reason of any error or its later correction. If a Proposer fails to obtain written clarification of any errors, the Proposer shall submit a Proposal at its own risk; and, if awarded the Contract, the Proposer shall be deemed to have waived any claim to contest the Texas Lottery’s interpretation thereof.

2.5. Submission of Proposal

Proposals shall be delivered to Jake Lowe at the address provided in Section 2.1 and received no later than the deadline established in the Schedule of Events. Late Proposals will not be considered. No exceptions will be made.

The Texas Lottery headquarters is located at 1801 N. Congress Ave. the George H. W.

Bush State Office Building. This is a secure building and all visitors shall check in at the front desk. If you are hand delivering a Proposal, please allow adequate time to check in and for TLC staff to retrieve your bid timely prior to submission time listed in the Schedule of Event. Any updates will be provided on the ESBD and the TLC websites.

https://www.texaslottery.com/ https://www.txsmartbuy.gov/esbd https://www.txsmartbuy.gov/esbd file://FSRESOURCE/RESOURCE$/Legal/LCMS%20Assigned%20Case%20Files/00%20CONTRACTS/ACTIVE/Lottery%20Operator%202024/PROCUREMENT/RFP%20Drafts/www.texaslottery.com/

The Proposer shall submit one (1) signed original and four (4) copies of its Proposal. For Part 5 only, Proposers shall provide one (1) signed original and two (2) copies of all required HSP documentation. All Proposals submitted shall be bound in a three-ring binder, organized, and arranged to correspond directly with the numbered sections of this RFP, and all pages shall be numbered. For Parts 1, 2 and 3 only, Proposers may provide a blanket acknowledgment and acceptance in lieu of a section-by-section response, unless a section requires a specific, detailed answer from the Proposer. For Parts 4 and 6 only, Proposers shall provide a section-by-section response to the RFP. For Part 5, Proposers shall follow the instructions for completing and submitting an HSP. Proposers shall also provide samples as required under Section 4.5.

If a Proposer is claiming any part(s) of its Proposal is confidential, the Proposer shall provide a detailed response to Section 1.8 and mark the material as “Confidential”.

A Proposer may not amend a commitment to comply with a specific section of this RFP by a later reference back to that section.

The Proposer’s Commitment (Attachment A) and the Background Information Certification (Attachment D-1) shall be signed by an officer or agent of the Proposer with authority to contractually bind the Proposer, and the attachment shall be included with the original Proposal.

Proposers are required to propose a complete solution to the Texas Lottery’s requirements in their Technical Proposal. Any items not specifically requested, but integral to the requested services, shall be included in a Proposer’s Proposal and identified in the appropriate sections thereof.

Proposers responding to this RFP shall fully and completely address all goods, services and other requirements as described by this RFP. Incomplete or partial Proposals will not be considered. A Proposer shall provide all information that the Proposer believes would be helpful to the Texas Lottery in evaluating the Proposer’s ability to fulfill the RFP requirements.

In addition to the printed Proposal, a Proposer shall also submit one copy of the entire Proposal, excluding the Cost Proposal, on a USB drive in a searchable and unprotected PDF file. If there is any disparity between the contents of the printed Proposal and the contents of the Proposal contained on the USB drive, the contents of the printed Proposal shall take precedence. The content on the USB drive or soft copy provided herein will not be accepted in lieu of the signed original and copies as required in Section 2.5.3.

Proposals that have been copyrighted by any Proposer are unacceptable and may be rejected as non-responsive.

2.6. Response Format & Contents

The Proposer shall demonstrate its understanding of the requested goods and services, and shall address specifically in writing the Proposer’s approach to providing each requirement in this RFP. Each Proposal shall be organized in the manner described below:

a. Letter of Transmittal;

b. Executive Summary;

c. Section-by-section response to the RFP (see Section 2.5.3 above);

d. Sealed Cost Proposal (Attachment to the original proposal only);

e. Proposer’s Commitment (Attachment A); and

f. Background Information Certification (Attachment D-1).

2.7. Letter of Transmittal

Proposers shall submit a Letter of Transmittal that identifies the entity submitting the Proposal and includes a commitment by that entity to provide the goods and services required by the Texas Lottery in this RFP. The Letter of Transmittal shall state that the Proposal is valid for two hundred and seventy (270) Days from the Day after the date that the Proposal is delivered to the Texas Lottery. Any Proposal containing a term of less than two hundred and seventy (270) Days for acceptance shall be rejected. The Letter of Transmittal shall be signed by a person(s) legally authorized to bind the Proposer to the representations in the Proposal. The Proposer should also indicate, in its Letter of Transmittal, why it believes it is the most qualified Proposer to provide the goods and services required by the Texas Lottery in this RFP.

The Letter of Transmittal shall include a statement of acceptance of the terms and conditions set forth in Part 3 of this RFP that will be included in the Contract. If the Proposer takes exception to any of the proposed terms and conditions, those exceptions shall be noted in the Letter of Transmittal. Proposers shall provide specific and detailed reasons for each exception, together with suggested alternative language. Vague and general exceptions are not acceptable. Proposers should realize, however, that failure to accept the terms and conditions specified in Part 3 of the RFP may result in disqualification of the Proposal.

2.8. Executive Summary

Proposers shall provide an executive summary of the Proposal (excluding cost information) that asserts that the Proposer is providing, in its Proposal, all the requirements of this RFP. If the Proposer is providing goods or services beyond those specifically requested, those goods or services shall be identified. If the Proposer is offering goods or services that do not meet the specific requirements of this RFP, but in the opinion of the Proposer are equivalent or superior to those specifically requested, any such differences shall be noted in the Executive Summary. The Proposer should realize, however, that failure to provide the goods and services specifically requested may result in disqualification.

The Proposer shall demonstrate its understanding of the requested goods and services and shall address specifically, in writing, the Proposer’s approach to providing each requirement in this RFP.

The Executive Summary shall not exceed five (5) pages and should represent a full and concise summary of the contents of the Proposal.

2.9. Proposer’s Contracting Authority

The Proposer warrants and represents that the person named on the Proposer’s Commitment (Attachment A) has the full right, power and is legally authorized to execute the Contract resulting from this RFP on behalf of the Proposer. Commitments shall be unqualified, not limited, and fully commit the Proposer to provide the goods and services required under this RFP.

2.10. Proposer’s Cost Proposal

The Proposer shall state its pricing for all goods and services rendered during the course of the proposed Contract, including any and all costs involved that are to be paid or reimbursed by the Texas Lottery. The pricing for the required goods and services is to be presented only in the format set forth in Attachment G of the RFP. Please review the entire Attachment G and its instructions carefully. Failure to complete all documents with required information may result in disqualification of the Proposal.

Pricing information shall include all costs associated with providing the required goods and services and shall be submitted in a separate, sealed envelope clearly marked as such, attached to the original Proposal only. No reimbursement is available to the Successful Proposer beyond the amount agreed to be paid for the goods and services provided.

Pricing agreed to in any resulting Contract shall be firm and remain constant through the life of the Contract unless amended pursuant to the terms of the Contract under Section

3.15 of the RFP.

Texas Lottery has also provided the Imprinted, Embroidered, and Laser Etched Cost Sheet in an Excel Format. Failure to complete all cells and indicate Brand/Product number in the Imprinted, Embroidered, and Laser Etched Cost Sheet may result in disqualification of the Proposal.

The Proposer shall not disclose its Cost Proposal or other cost information in the body of its written Proposal. Including cost information in the written Proposal may be cause for disqualification.

2.11. Multiple Proposals

Each Proposer may submit only one (1) Proposal. If a Proposer submits more than one

(1) Proposal, all Proposals from that Proposer may be rejected.

2.12. Changes, Modifications and Cancellation

The Texas Lottery reserves the right to make changes to and/or cancel this RFP. The TLC will post all changes and modifications, whether made as a result of a potential Proposer’s written questions or otherwise, and any cancellation notices on the Electronic State Business Daily and the Texas Lottery websites. It is the responsibility of the Proposer to check these websites for any additional information regarding this RFP. If the Proposer fails to monitor the ESBD and TLC websites for any changes or modifications to the RFP, such failure will not relieve the Proposer of its obligation to fulfill the requirements as posted.

2.13. Updates to Information Supporting a Proposal

Following the submission of Proposals and prior to execution of a Contract, the Proposer is under a continuing obligation to notify the Texas Lottery in writing of any updates or changes to information offered in support of its Proposal that might reasonably be expected to affect the Texas Lottery’s consideration of the Proposal. Nothing in this section shall be interpreted to permit the unilateral modification by a Proposer of its commitment to provide goods and services described in its Proposal as filed for the cost stated therein.

2.14. Additional Information

By submitting a Proposal, the Proposer grants the Executive Director the right to obtain any information from any lawful source regarding the past history, practices, conduct, ability and eligibility under the State Lottery Act of the Proposer to supply goods, services and to fulfill requirements under this RFP, and the past history, practices, conduct, ability and eligibility of any director, officer or key employee of the Proposer.

By submitting a Proposal, the Proposer generally releases from liability and waives all claims against any party providing information about the Proposer at the request of the Executive Director. Such information may be taken into consideration in evaluating Proposals.

2.15. Proposal Evaluation and Contract Award

The Texas Lottery Commission intends to conduct a fair, comprehensive and impartial evaluation of all Proposals received in response to this RFP using an evaluation committee. The evaluation committee will be selected by the Executive Director and may consist of Texas Lottery employees or outside individuals with expertise in particular areas. In addition, the Texas Lottery’s General Counsel, other in-house legal counsel, and outside legal counsel may assist by advising the evaluation committee. Texas Lottery employees and consultants may also assist in the process as technical non-voting members of the evaluation committee.

Each member of the evaluation committee will independently score each Proposal submitted in response to this RFP which conforms to the RFP in all material respects, as determined solely by the Texas Lottery. Evaluation committee members may seek, obtain and consider the opinions of other committee members or subject matter experts (including Texas Lottery staff, staff from other Texas agencies and consultants retained by the Texas Lottery) when evaluating and independently scoring particular areas of the Proposals.

The evaluation committee may request clarification of information or representations in a Proposal before completing the initial evaluation. Requests for clarification and responses to requests for clarification will be in writing and will become part of the evaluation record.

The procurement process will be conducted in accordance with 16 TAC §401.101.

At a minimum, the factors to be considered by the evaluation committee in evaluating Proposals shall include:

(i) the Proposer’s price to provide the goods or services;

(ii) the probable quality of the offered goods and/or services;

(iii) The agency’s evaluation of the likelihood of the Proposal to produce the desired outcome for the agency, considering, among other criteria:

(I) the quality of the Proposer’s past performance in contracting with the agency, with other state entities, or with private sector entities;

(II) the qualifications of the Proposer’s personnel;

(III) the experience of the Proposer in providing the requested goods or services;

(IV) the financial status of the Proposer; and

(iv) whether the Proposer performed the good faith effort required by the HUB subcontracting plan, when the agency has determined that subcontracting is probable.

The evaluation committee also may consider vendor performance reviews maintained by the Texas Comptroller of Public Accounts under Tex. Gov’t Code §2262.055.

A copy of the scoring matrix is included as Attachment F.

A written notice of Contract Award will be posted on the ESBD, and sent to all Proposers immediately following execution of the Contract.

2.16. Samples

Each Proposer shall include with its Proposal all samples as stated under Section 4.5.

Failure to provide all samples may result in disqualification of the Proposal.

2.17. Site Visits and/or Oral Presentations

The Texas Lottery, in its sole discretion, reserves the right to conduct site visits and/or to require Proposers to make oral presentations prior to the Contract Award and may consider such presentations and visits when evaluating Proposals. Proposers will be notified in writing and will be provided with equal advance notification of site visits and/or oral presentation assignments and guidelines.

2.18. Protest Procedure

Any protest shall be governed by Tex. Gov’t Code §466.101 and 16 TAC §§ 401.102- 103.

REQUEST FOR PROPOSALS FOR PART 3

PROMOTIONAL PRODUCTS CONTRACTUAL TERMS AND CONDITIONS

3. CONTRACTUAL TERMS AND CONDITIONS

3.1. Introduction

This part sets forth terms and conditions applicable to the procurement process as well as terms and conditions that will become part of the Contract. The Texas Lottery reserves the right to incorporate additional provisions in the Contract in the best interest of the Texas Lottery.

3.2. Governing Law and Venue

The procurement process, the award procedure, and the Contract shall be governed by, and construed and interpreted in accordance with, the applicable laws of the State of Texas. Any and all actions or suits brought by a Proposer or any related party regarding this RFP or the Contract shall be brought in the state district court located in Austin, Travis County, Texas. By submitting a Proposal, a Proposer is deemed to waive the right to bring any action in any other court. This section is purely a venue provision and shall not be deemed a waiver of sovereign immunity.

3.3. Contract Elements

The Contract between the Texas Lottery and the Successful Proposer will follow the general format specified by the Texas Lottery. The Texas Lottery reserves the right to negotiate provisions in addition to those stipulated in this RFP. The contents of this RFP, as modified by published addenda or amendments, and the Successful Proposer’s Proposal, will be incorporated into the Contract. In the event of any conflict or contradiction between or among these documents, the documents shall control in the following order of precedence: the written Contract, the RFP, and the Successful Proposer’s Proposal. Specific exceptions to this general rule may be noted in the Contract.

The Texas Lottery has determined that subcontracting opportunities are probable under this RFP. Therefore, the Texas Lottery requires the submission of an HSP as a part of each Proposal, as discussed further in Part 5 of this RFP. The HSP, if accepted by the Texas Lottery, will become a provision of the Contract.

If any term or provision of this RFP or the Contract is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the RFP or Contract shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

3.4. Amendments

The Contract may be amended only by written agreement signed by both parties.

3.5. Non-Waiver

The failure of the Texas Lottery to object to, or to take affirmative action with respect to, any conduct of the Successful Proposer which is in violation or breach of the terms of the Contract shall not be construed as a waiver of the violation or breach, or of any future violation or breach. Nothing in this RFP, or the Contract, shall constitute or be construed as a waiver of any of the privileges, rights, defenses, remedies, or immunities available to the Texas Lottery Commission, as an agency of the State of Texas. The failure to enforce, or any delay in the enforcement, of any privileges, rights, defenses, remedies, or immunities available to the Texas Lottery Commission under the Contract or under applicable law shall not constitute a waiver of such privileges, rights, defenses, remedies, or immunities, or be considered as a basis for estoppel.

3.6. Clarification of Texas Lottery’s Intent

It is the responsibility of the Successful Proposer to address and resolve all questions with the Texas Lottery’s designated points of contact, and to achieve a clear understanding of all Texas Lottery requirements during each stage of the Contract Term.

The Texas Lottery will use reasonable efforts to provide timely responses to questions of policy or procedure as they may affect the Successful Proposer’s performance. Key Texas Lottery staff will be available to the Successful Proposer on a reasonable basis, but may not be available on weekends, or State or national holidays, as defined in Tex.

Gov’t Code §662.003.

3.7. Relationship of the Parties

The Successful Proposer and the Texas Lottery agree and understand that the Successful Proposer shall render the goods, services and requirements under the Contract as an independent contractor, and nothing contained in the Contract…