ESBD_442808_1754329937503_RFQ RQ25-0638TW MTN DRAWING MACHINES EQUIP - GARRON - Final.pdf

TEXAS LOTTERY COMMISSION

REQUEST FOR QUOTE

RFQ# RQ25-0638TW

PURCHASING CONTACT:

Tammy Williams, Contracts Specialist

PHONE: (512) 344-5146

EMAIL:

tammy.williams@lottery.state.tx.us

DATE: AUGUST 4, 2025

*******PRICING DUE ON OR BEFORE AUGUST 19, 2025 @ 3:00 P.M.*******

***SEE ATTACHED SCOPE OF WORK, TERMS AND CONDITIONS***

This procurement is a proprietary purchase for maintenance services on all drawing machines and drawing equipment manufactured by Garron Lottery Products and owned by the Texas Lottery Commission (TLC).

This solicitation is being advertised in accordance with the State Lottery Act (Tex. Gov't Code ch. 466.001), as amended; the procurement rules of the Texas Lottery Commission, 16 Tex. Admin. Code (TAC) §401.101, et seq.; and other applicable laws of the state of Texas. Only bids on items conforming exactly to these specifications, which include proposing only the brand name(s), make and model number(s) specified, will be considered in determining the award.

BIDDER MUST SIGN AND RETURN THIS PAGE OR QUOTE MAY BE DISQUALIFIED.

SIGN HERE:________________________________________________________________ DATE:______________

(AUTHORIZED SIGNATURE & TITLE)

PRINT NAME:_______________________________________COMPANY NAME:________________________________

BIDDER MUST COMPLETE THE FOLLOWING AND RETURN WITH QUOTE

COMPANY NAME:

COMPANY ADDRESS:

COMPANY VID/TINS NUMBER

CITY & STATE:

CONTACT NAME:

PHONE NUMBER:

Request for Quote (RFQ) RQ25-0638TW for

Maintenance Services on Drawing Machines and Drawing Equipment

Scope of Work

1. PURPOSE:

This procurement is a proprietary purchase for maintenance services on all drawing machines and drawing equipment manufactured by Garron Lottery Products (Garron) and owned by the Texas Lottery Commission (TLC).

This solicitation is being advertised in accordance with the State Lottery Act (Tex. Gov't Code ch.

466.001), as amended; the procurement rules of the Texas Lottery Commission, 16 Tex. Admin.

Code (TAC) §401.101, et seq.; and other applicable laws of the state of Texas. Only bids on items conforming exactly to these specifications, which include proposing only the brand name(s), make and model number(s) specified, will be considered in determining the award.

2. SPECIFICATIONS:

2.1 As described below, maintenance services shall include two (2) preventative maintenance visits, and emergency and additional visits as needed. Vendor must provide pricing for all services as noted below under Section 4.

A. PREVENTATIVE MAINTENANCE - Two (2) preventative maintenance checks per year for each drawing machine and drawing equipment manufactured by Garron. Parts not covered under Item 8 below will be billed at an additional cost, upon TLC approval.

Preventative maintenance checks shall be provided on Sunday and Monday, or as otherwise approved by the TLC.

Note: Cost for maintenance will be billed on a bi-annual basis upon completion of each preventative maintenance check.

Preventative maintenance will include the following for each drawing machine and drawing equipment manufactured by Garron Lottery Products.

1) Examination and cleaning of all moving parts.

2) Inspection of all units for wear and stress cracks that may signal the possibility of a future breakdown.

3) Lubrication of all moving parts and motors.

4) Cleaning and tightening and inspection of all switches and electrical connections

5) Draining and inspection of compressed air system; checking pressure accuracy.

6) Inspection and cleaning of all plastic components

7) Any minor repairs will be included.

8) Parts totaling up to $50.00 per visit included.

9) Major repairs reported and quoted before work is performed.

B. EMERGENCY VISIT - Vendor shall provide an emergency visit for any drawing machine and drawing equipment, upon request by the TLC. Emergency visits require vendor to be on-site within 24-48 hours of notice by the TLC. Services may be scheduled Monday – Friday, or as otherwise approved by the TLC. Parts will be billed at an additional cost.

C. ADDITIONAL VISITS - Vendor agrees to provide any additional visits required by the TLC which are not included in Item A or B above. Vendor will be provided a minimum of five (5) business days’ notice. Services may be scheduled Monday – Friday, or as otherwise approved by the TLC. Parts will be billed at an additional cost.

2.2 Maintenance on all Garron manufactured drawing machines and drawing equipment may include, but is not limited to, the following. The vendor agrees that TLC may add additional equipment manufactured by Garron at no additional cost during the contract period.

Studio

• (4) Lotto Texas Machines

• (3) All or Nothing Drawing Machines

• (1) Selection Process Drawing Machine

• All Control Boxes for Listed Drawing Machines

Business Continuity

• (2) Texas Two Step Business Continuity Machine

• (2) All or Nothing Business Continuity Drawing Machine

• (1) Selection Process Business Continuity Drawing Machine

• All Control Boxes for Listed Drawing Machines

2.3 Vendor agrees to provide a representative fully trained in the maintenance of Garron equipment to service the drawing machines and drawing equipment. All costs for preventative, emergency or additional visits shall be inclusive of travel, lodging and labor.

2.4 Ordering of replacement parts shall be approved by the TLC.

3. TERM:

Maintenance for the drawing machines and drawing equipment is to be for a one (1) year period beginning 9-1-2025 thru 8-31-2026. The TLC reserves the right, at its sole option, to renew this maintenance agreement under the same terms, conditions, and price, for an additional one (1) year period.

4. PRICING:

Vendor must include all costs as indicated below. Payment will be upon completion of services and an approved invoice. All costs are firm for the term of the contract and any renewal thereof.

A. PREVENTATIVE MAINTENANCE - Two (2) preventative maintenance checks per year for each drawing machine and drawing equipment manufactured by Garron Lottery Products.

Parts not covered under Section 2.1.A.8 will be billed at an additional cost, upon TLC approval.

Preventative maintenance checks shall be provided on Sunday and Monday, or as otherwise approved by the TLC.

QUANTITY: 2 EACH UNIT PRICE: $ ____________ EXTENSION: $ ___________

B. EMERGENCY VISIT - Vendor shall provide an emergency visit for any drawing machine and drawing equipment, upon request by TLC. Emergency visits require vendor to be on-site within 24-48 hours of notice by the TLC. Services may be scheduled Monday – Friday, or as otherwise approved by the TLC. Parts will be billed at an additional cost.

QUANTITY: 1 EACH UNIT PRICE: $____________ EXTENSION: $____________

C. ADDITIONAL VISITS - Vendor agrees to provide any additional visits required by the TLC which are not included in Item A or B above. Vendor will be provided a minimum of five (5) business days’ notice. Services may be scheduled Monday – Friday, or as otherwise approved by the TLC. Parts will be billed at an additional cost.

QUANTITY: 1 EACH UNIT PRICE: $_____________ EXTENSION: $____________

Dated 03/20/2025

TERMS AND CONDITIONS:

ITEMS BELOW APPLY TO AND BECOME PART OF BID/PURCHASE ORDER

ANY EXCEPTIONS THERETO MUST BE IN WRITING

1. BIDDING REQUIREMENTS:

1.1 Bidders must comply with all rules, regulations and statutes relating to purchasing in the State of Texas in addition to the requirements of this form. As used herein, “bidder” includes, and is used interchangeably with, the term “vendor” or “contractor”.

1.2 Bidder must price per unit shown. Unit prices shall govern in the event of extension errors. If a price quotation is submitted as part of the bid, the quotation must be referenced on the bid document and signed by the bidder to establish formal linkage to the bid.

1.3 Bids must be time stamped at Texas Lottery Commission (TLC) on or before the hour and date specified for the bid opening.

1.4 Late and/or unsigned bids will not be considered under any circumstances. Person signing bid must have the authority to bind the firm in a contract.

1.5 Quote FOB destination, freight prepaid and allowed unless otherwise stated within the specifications.

1.6 Bid prices are requested to be firm for TLC acceptance for 30 days from bid opening date. “Discount from list” bids are not acceptable unless requested. Cash discounts are not considered in determining an award. Cash discounts offered will be taken if earned.

1.7 Bidder should enter Texas Identification Number System (TINS) number, full firm name and address of bidder on the face of this form. Enter in the space provided, if not shown. Additionally, firm name should appear on each continuation page of a bid, in the block provided in the upper right hand corner.

1.8 Bid cannot be altered or amended after opening time. Alterations made before opening time should be initialed by bidder or his authorized agent. No bid can be withdrawn after opening time without approval by the TLC based on an acceptable written reason.

1.9 Purchases made for State use are exempt from the State Sales tax and Federal Excise tax. Do not include tax in bid. Excise Tax Exemption Certificates are available upon request.

1.10 AWARD NOTICE: TLC reserves the right to make an award on the basis of low line item bid, low total of line items, or in any other combination that will serve the best interest of TLC and to reject any and all bid items at the sole discretion of the TLC. TLC also reserves the right to accept or reject all or any part of any bid, waive minor technicalities and award the bid to best serve the interests of the TLC.

1.11 Consistent and continued tie bidding could cause rejection of bids by the TLC and/or investigation for antitrust violations.

1.12 The telephone number for FAX submission of bids is 1-512-344- 5064. This is the only number that will be used for the receipt of bids. TLC shall not be responsible for failure of electronic equipment or operator error.

1.13 Inquiries pertaining to bids must include the requisition number, class/item codes, and opening date.

2. SPECIFICATION:

2.1 Catalogs, brand names or manufacturer’s references are

descriptive only, and indicate type and quality desired. Bids on brands of like nature and quality will be considered unless advertised under Tex. Gov’t Code, Section 2155.067. If bidding on other than references, bid should show manufacturer, brand or trade name, and other description of product offered. If other than brand(s) specified is offered, illustrations and complete description of product offered are requested to be made part of the bid. Failure to take exception to specifications or reference data will require bidder to furnish specified brand names, numbers, etc.

2.2 Unless otherwise specified, items shall be new and unused and of current production.

2.3 All electrical items must meet all applicable OSHA standards and regulations, and bear the appropriate listing from UL, FMRC or

NEMA.

2.4 Samples, when requested, must be furnished free of expense to the

State. If not destroyed in examination, they may be returned to the bidder, on request, at bidder’s expense. Each sample should be marked with bidder’s name and address, and requisition number.

Do not enclose in or attach bid to sample.

2.5 TLC will not be bound by any oral statement or representation contrary to the written specifications of this bid.

2.6 Manufacturer’s standard warranty shall apply unless otherwise stated in the bid.

3. TIE BIDS: Awards will be made in accordance with 16 TAC §401.101(h) (Preferences).

4. DELIVERY:

4.1 Show number of days required to place material in receiving agency’s designated location under normal conditions. Delivery days mean calendar days, unless otherwise specified. Failure to state delivery time obligates bidder to deliver in 14 calendar days.

Unrealistic delivery promises may cause bid to be disregarded.

4.2 If delay is foreseen, vendor shall give written notice to the TLC.

Vendor must keep the TLC advised at all times of status of order.

Default in promised delivery (without accepted reasons) or failure to meet specifications authorizes the TLC to purchase supplies elsewhere and charge full increase, if any, in cost and handling to defaulting vendor.

4.3 No substitutions permitted without written approval of TLC.

4.4 Delivery shall be made during normal working hours only, unless prior approval has been obtained from the TLC.

5. INSPECTION AND TESTS:

All goods will be subject to inspection and test by TLC. Authorized TLC personnel shall have access to supplier’s place of business for the purpose of inspecting merchandise. Tests shall be performed on samples submitted with the bid or on samples taken from regular shipment. All costs shall be borne by the vendor in the event products tested fail to meet or exceed all conditions and requirements of the specification. Goods delivered and rejected in whole or in part may, at TLC’s option, be returned to the vendor or held for disposition at vendor’s expense. Latent defects may result in revocation of acceptance.

6. AWARD OF CONTRACT:

A response to this bid is an offer to contract based upon the terms, conditions, and specifications contained herein. Bids do not become contracts until they are accepted through a purchase order. The contract shall be governed, construed, and interpreted under the laws of the State of Texas. The provisions of Tex. Gov’t Code, Chapter 466, the State Lottery Act, §466.101 shall be applicable to the procurement process herein, and the factors listed in Texas Tex. Gov’t Code, §2261.052 shall be considered in making an award when specified.

Any legal actions must be filed in Travis County, Texas.

7. PAYMENT: Vendor shall submit 2 copies of an itemized invoice showing TLC order number and agency requisition number on all copies. TLC will incur no penalty for late payment if payment is made in 30 or fewer days from receipt of goods or services and an uncontested invoice.

8. PATENTS OR COPYRIGHTS: The vendor agrees to protect the State from claims involving infringement of patents or copyrights.

9. VENDOR ASSIGNMENTS: Vendor hereby assigns to TLC any and all claims for overcharges associated with this contract arising under the antitrust laws of the United States 15 U.S.C.A. Section 1, et seq. (1973), and the antitrust laws of the State of Texas. Tex. Bus. & Comm. Code §15.01, et seq. (1967).

10. CERTIFICATIONS: Signing a bid or contract with a false statement is a material breach of contract and shall void the submitted bid or any resulting contracts, and the bidder shall be removed from all bid lists.

By signature hereon affixed, the bidder or vendor hereby certifies that:

a. The bidder has not given, offered to give, nor intends to give at any time hereafter any economic opportunity, future employment, gift, loan, gratuity, special discount, trip, favor, or service to a public servant in connection with the submitted bid.

Neither the bidder nor the firm, corporation, partnership, or institution represented by the bidder, or anyone acting for such firm, corporation or institution has violated the antitrust laws of this State or the Federal Antitrust Laws (see section 9, above), nor communicated directly or indirectly the bid made to any competitor or any other person engaged in such line of business.

b. Under Tex. Gov’t Code §2155.004, the bidder has not received compensation for participation in the preparation of the specifications for this bid.

c. Under Tex. Gov’t Code §2155.004, the bidder certifies that the individual or business entity named in this bid or contract is not ineligible to receive the specified contract and acknowledges that this contract may be terminated and payment withheld if this certification is inaccurate.

d. Under Tex. Family Code §231.006(d) re: child support, the bidder certifies that the individual or business entity named in this bid is not ineligible to receive the specified payment and acknowledges that this contract may be terminated and payment may be withheld if this certification is inaccurate.

e. The vendor shall defend, indemnify, and hold harmless the State of Texas, all of its officers, agents and employees from and against all claims, actions, suits, demands, proceedings, costs, damages, and liabilities, arising out of, connected with, or resulting from any acts or omissions of vendor or any agent, employee, subcontractor, or supplier of vendor in the execution or performance of this contract.

f. Vendor agrees that any payments due under this contract will be applied towards any debt, including but not limited to delinquent taxes and child support that is owed to the State of Texas.

g. Bidder certifies that it is in compliance with Tex. Gov’t Code §669.003, relating to contracting with executive head of a State agency. If §

669.003 applies, bidder will complete the following information in order for the bid to be evaluated:

Name of Former Executive: ________________________________

Name of State Agency: ____________________________________

Date of Separation from State Agency: ________________________

Position with Bidder: ______________________________________

Date of Employment with Bidder: ____________________________

h. Vendor agrees to comply with Tex. Gov’t Code §2155.4441, pertaining to service contract use of products produced in the State of Texas.

i. The TLC is federally mandated to adhere to the directions provided in the President’s Executive Order (EO) 13224, Executive Order on Terrorist Financing – Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism, effective 9/24/2001 and any subsequent changes made to it via cross-referencing bidders / vendors with the Federal General Services Administration’s System for Award Management (SAM), https://www.sam.gov/portal/public/SAM/ which is inclusive of the United States Treasury’s Office of Foreign Assets Control (OFAC) Specially Designated National (SDN) list.

j. Under Tex. Gov’t Code §2261.053, effective September 1, 2007, a state agency may not accept a bid or award a contract that includes proposed financial participation by a person who, during the five-year period preceding the date of the bid or award, has been convicted of violating a federal law, or assessed a penalty in a federal civil or administrative enforcement act, in connection with a contract awarded by the federal government for relief, recovery, or reconstruction efforts as a result of Hurricane Rita, Hurricane Katrina, or any other disaster occurring after September 24, 2005; or convicted of any offense related to the direct support or promotion of human trafficking. Under Tex. Gov’t Code §2261.053, the vendor certifies that the individual or business entity named in this bid or contract is not ineligible to receive the specified contract and acknowledges that this contract may be terminated and payment withheld if this certification is inaccurate.

k. Bidder certifies that the bidding entity and its principals are eligible to participate in this transaction and have not been subjected to suspension, debarment, or similar ineligibility determined by any federal, state, or local governmental entity, and that Bidder is in compliance with the State of Texas statutes and rules relating to procurement.

l. Under Tex. Gov’t Code § 2271.002, the Executive Director may not award a contract for goods or services unless the contract contains a written verification from the bidder that it: (1) meets an exemption criteria under §2271.002; or (2) does not boycott Israel and will not boycott Israel during the term of the contract. Bidder shall state any facts that make it exempt from the boycott certification in its bid. By signing and submitting a bid, the bidder certifies that it does not boycott Israel and will not boycott Israel during the term of the Contract.

m. Under Tex. Gov’t Code §2252.152, a state agency may not award a contract to a company engaged in business with Iran, Sudan, or a foreign terrorist organization. The Bidder certifies it is not ineligible to receive a state contract under §2252.152.

n. Under Tex. Gov’t Code §572.069, the bidder certifies that it has not employed and will not employ a former state officer or employee of the Texas Lottery who participated in a procurement or contract negotiation for the Texas Lottery involving the bidder within two years after the contract has been signed or the procurement is terminated or withdrawn.

o. Under §161.0085 of the Health and Safety Code, a business that requires a customer to provide any documentation certifying the customer’s COVID-19 vaccination or post-transmission recovery on entry to, to gain access to, or to receive services from that business is not eligible to enter a contract payable with state funds. By signing and submitting a bid, the bidder certifies that it does not require a customer to provide any documentation certifying a customer’s COVID-19 vaccination or post-transmission recovery upon entry to, to gain access to, or to receive services and will not require such during the term of the Contract.

p. Under Tex. Gov’t Code § 2276.002, a state agency may not award a contract for goods or services unless the contract contains a written verification from the bidder that it: (1) does not boycott energy companies; and (2) will not boycott energy companies during the term of the contract. By signing and submitting a bid, the bidder certifies that it does not boycott energy companies and will not boycott energy companies during the term of the Contract.

q. Under Tex. Gov’t Code § 2274.002, a state agency may not award a contract for goods or services unless the contract contains a written verification from the bidder that it: (1) does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association; and (2) will not discriminate during the term of the contract against a firearm entity or firearm trade association. By signing and submitting a bid, the bidder certifies that it does not discriminate against a firearm entity or firearm trade association and will not discriminate against a firearm entity or firearm trade association during the term of the Contract.

r. Pursuant to the Governor’s Executive Order (EO) GA-48, issued

November 19, 2024, Bidder certifies that neither it, nor its holding companies or subsidiaries, is:

(a) Listed in Section 889 of the 2019 National Defense Authorization Act;

(b) Listed in Section 1260H of the 2021 National Defense Authorization Act; or

(c) Owned by the government of a country on the U.S. Department of Commerce’s foreign adversaries list under 15 C.F.R Section 791.4; or

(d) Controlled by any governing or regulatory body located in a country on the U.S. Department of Commerce’s foreign adversaries list under 15 C.F.R Section 791.4.

11. Under Tex. Family Code §231.006(c), any bid must include Names and Social Security Numbers of each person with at least 25% ownership of the business entity submitting the bid. Attach Name & Social Security https://www.sam.gov/portal/public/SAM/

Numbers for each person. This information must be provided prior to contract award.

Name:

Social Security Number:

Name:

Social Security Number:

Name:

Social Security Number:

12. NOTE TO BIDDER:

Any terms and conditions attached to a bid will not be considered unless specifically referred to on this bid form and may result in disqualification of the bid. If bidder takes any exceptions to any provisions of the solicitation, these exceptions must be specifically and clearly identified by section in bidder’s response to the solicitation, and a proposed alternative must also be provided. Bidders cannot take a ‘blanket exception’ to the entire solicitation or its terms and conditions.

13. NON-APPROPRIATION OF FUNDS:

TLC’s funds are contingent on the availability of lawful appropriations by the Texas Legislature. If the Texas Legislature fails to continue funding for the payments due under an order referencing this Contract, the order will terminate as of the date that the funding expires, and TLC will have no further obligation to make any payments.

14. TERMINATION WITHOUT PENALTY: Under Tex. Gov’t Code

§466.014(c), the Executive Director of the Texas Lottery Commission is permitted to terminate this Contract, without penalty, if an investigation reveals that vendor would not be eligible for a sales agent license under Tex. Gov’t Code §466.155.

15. TERMINATION FOR CONVENIENCE:

The Texas Lottery Commission reserves the exclusive right to terminate any contract, in whole or in part, on thirty (30) days’ written notice to the awarded vendor, or immediately, with written notice, if in the TLC Executive Director’s sole judgment the integrity of the Texas Lottery Commission is in jeopardy and it is in the best interest of the Texas Lottery Commission to do so.

16. TERMINATION COSTS:

Upon termination by the TLC, the TLC agrees to pay vendor the then-current Contract rate(s) for goods or services provided by vendor under this Contract and accepted by the TLC, in its sole discretion, through the Contract expiration/termination date. This agreement, however, does not waive any right or remedy otherwise available to the TLC, such as withholding of payment, should the goods or services fail to meet specifications, or for any reason otherwise allowed under this Contract.

17. TEXAS PUBLIC INFORMATION ACT:

Information, documentation, and other material in connection with this solicitation or any resulting contract may be subject to public disclosure pursuant to Chapter 552 of the Tex. Gov’t Code (the “Public Information Act”).

18. 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)

1) Effective September 1, 2006 state agencies and institutions of higher education shall procure products which comply with the State Accessibility requirements for Electronic and Information Resources specified in 1 TAC Chapters 206 and 213 when such products are available in the commercial marketplace or when such products are developed in response to a procurement solicitation.

2) Upon request, but not later than thirty (30) calendar days after request, Vendor shall provide agency with a completed Voluntary Product Accessibility Template (VPAT) of the specified product or a URL to the VPAT for reviewing compliance with the State Accessibility requirements (based on the federal standards established under Section 508 of the Rehabilitation Act).

19. SECURE ERASURE OF HARD DISK PRODUCTS AND/OR SERVICES:

Vendor agrees that all products and/or services provided hereunder that are equipped with hard disk drives (i.e. computers, telephones, printers, fax machines, scanners, multifunction devices, etc.) shall have the capability to securely erase data written to the hard drive prior to final disposition of such products and/or services, either at the end of the product’s useful life or the end of the related services contract for such products and/or services, in accordance with 1 TAC 202.

20. SECTION 466.103 CERTIFICATION:

Under Tex. Gov’t Code §466.103, the Executive Director may not award a contract for the purchase or lease of facilities, goods or services related to lottery operations to a person who would be denied a license as a sales agent under Tex. Gov’t Code §466.155. Bidder certifies that it has reviewed Tex. Gov’t Code §466.155 and that it would not be denied a license as a sales agent under that section.

21. ACCOUNTING RECORDS AND AUDITS:

21.1 The vendor and its subcontractors are required to maintain and retain their books, records, information and any and all other supporting fiscal documents relevant to showing any contract payments were expended in accordance with the laws and regulations of the State of Texas, including, but not limited to, requirements of the Texas Comptroller of Public Accounts and the Texas State Auditor.

21.2 These records shall be available to the Texas Lottery, its internal auditor or external auditors (and other designees) and the Texas State Auditor at all times during the Contract period and for seven (7) full years after (i) the expiration date of the Contract or (ii) final payment under any contract awarded pursuant to this solicitation, whichever is later.

21.3 Under §2262.154, Tex. Gov’t Code, the state auditor may conduct an audit or investigation of any entity receiving funds from the state directly under this purchase order or contract or indirectly through a subcontract under this purchase order or contract. The vendor understands that acceptance of funds under this purchase order or contract acts as acceptance of the authority of the State Auditor’s Office to conduct an audit or investigation in connection with those funds. The vendor further agrees to cooperate fully with the State Auditor’s Office in the conduct of the audit or investigation, including providing all records requested. The vendor will ensure that this provision concerning the State Auditor’s Office’s authority to audit state funds and the requirement to cooperate fully with the State Auditor’s Office is included in any subcontracts it awards.

Additionally, the State Auditor’s Office shall at any time have access to and the rights to examine, audit, excerpt, and transcribe any pertinent books, documents, audit documentation, and records of the vendor relating to this Contract or purchase order.

22. DISPUTE RESOLUTION: In addition to the dispute resolution process under Tex. Gov’t Code, Chapter 2260, the provisions of 16 TAC

403.201 – 223 must be used by the vendor to attempt to resolve all disputes brought by the vendor arising under this purchase order or contract.

Notwithstanding any other provision of the Contract to the contrary, unless otherwise requested or approved in writing by the TLC the vendor shall continue performance and shall not be excused from performance during the period any breach of contract claim or dispute is pending under either of the above processes unless specifically authorized by Texas law.

23. CODE OF CONDUCT:

• Except when circumstances require otherwise, employees of the Texas Lottery Commission and employees, subcontractors and agents of vendor should meet only at Texas Lottery headquarters.

• Employees, subcontractors and agents of vendor may not offer or give anything of value to any Texas Lottery Commission employee.

• Employees, subcontractors and agents of vendor may not socialize with any Texas Lottery Commission employee.

24. PURCHASE OF TICKET BY OR PAYMENT OF PRIZE TO CERTAIN

PERSONS:

Under Tex. Gov’t Code §466.254 (Purchase of ticket by or Payment of

Prize to Certain Persons), no member, officer or employee of the vendor directly involved in selling or leasing the goods or performing the services that are the subject of a contract with the Texas Lottery Commission or that member’s, officer’s or employee’s spouse, child, brother, sister, or parent, who resides in the same household of the principal place of residence of such officer or employee, shall purchase a Texas Lottery ticket or be paid a prize in any Texas Lottery game.

Vendor certifies that it has read, understood and will abide by the provisions of Tex. Gov’t Code §466.254, Purchase of Ticket by or Payment of Prize to Certain Persons, during the term of the purchase order. Vendor shall ensure that this requirement is made known to each member, officer and employee of vendor directly involved in selling or leasing the goods or performing the services that are the subject of this purchase order. TLC considers “directly involved” to mean, by way of illustration only, responsible for and/or actively participating in (1) contract negotiations (including contract signatories); (2) contract administration (e.g., regular or direct contact with TLC staff), or (3) contract performance (including assigned project/team leaders and members and anyone else who oversees or performs the work or provides the services.) Again, by way of illustration, support staff (such as clerical, accounting or delivery employees) are not considered to be “directly involved” unless they also serve in the roles listed above for “directly involved” employees.

25. NEWS RELEASES, ADVERTISEMENTS, AND PUBLICITY:

The vendor must not make any news releases, public announcements, or public disclosures, nor will it have any conversations with representatives of the news media, pertaining to this contract, without the express, prior written approval of TLC, and then only in accordance with explicit written instructions from TLC. The vendor must not use the name of the State of Texas or TLC in any advertisement, promotion, or otherwise for any purpose regarding this contract without advance written consent.

26. FORCE MAJEURE:

Except as otherwise provided herein, neither the vendor nor the TLC shall be liable to the other for any delay in, or failure of performance of, any covenant contained herein caused by force majeure. The existence of such causes of delay or failure shall extend the period of performance in the exercise of reasonable diligence until after the causes of delay or failure have been removed. For purposes of this solicitation and any contract/Purchase Order resulting therefrom, “force majeure” is defined as “an act of God or any other cause of like kind not reasonably within a party’s control and which, by the exercise of due diligence of such party, could not have been prevented or is unable to be overcome.” The vendor must inform the TLC in writing within three

(3) days of the existence of such force majeure or otherwise waives this right as a defense.

27. RELATIONSHIP OF THE PARTIES:

The vendor and the TLC agree and understand that the vendor shall render the goods, services, and requirements under the Contract as an independent contractor, and nothing contained in the Contract resulting from this solicitation will be construed to create or imply a joint venture, partnership, employer/employee relationship, principal-agent relationship, or any other relationship between the parties. Employees of the vendor will not be considered employees of the TLC within the meaning of any federal, state, or local law, ordinance, or regulation, including but not limited to, laws, ordinances, or regulations concerning unemployment insurance, social security benefits, workers compensation, or withholding requirements.

28. ASSIGNMENT:

No right or obligation under this contract may be assigned without the prior written approval of the TLC, and in the event of any such approval, the terms and conditions hereof shall apply to and bind the party or parties to whom the right or obligation is assigned as fully and completely as the vendor is hereunder bound and obligated. No assignment shall operate to release the vendor from its liability for the timely and effective performance of its obligations hereunder.

Assignments made in violation of this provision shall be null and void.

Subject to the limitations on assignment contained herein, this contract shall inure to the benefit of, and be binding upon, the successors and assigns of the respective parties hereto.

29. FORMAT OF CONTRACT DELIVERABLES: Vendor is required to make any information created or exchanged with the state under this contract, and not otherwise excepted from disclosure under the Texas Public Information Act, available in a format that is accessible by the public at no additional charge to the state. Vendor shall provide all Contract deliverables in a format approved by the Texas Lottery and accessible by the public.

30. VENDOR PERFORMANCE:

Under Tex. Gov’t Code §§ 2155.074 and 2155.075, vendor performance may be used as a factor in the award.

The Vendor Performance Tracking System (VPTS) is maintained by the

Statewide Procurement Division (SPD) of the Texas Comptroller of Public Accounts (CPA). Vendor ratings are based on set performance criteria which include Administration, Scope, Product, Delivery, Customer Service, Communication and Cancellation. For more information see https://comptroller.texas.gov/purchasing/programs/vendor-performance-tracking/index.php#oveview

31. U.S. DEPARTMENT OF HOMELAND SECURITY’S E-VERIFY

SYSTEM: By entering into a Contract for services with the Texas Lottery Commission, the Vendor certifies and ensures that it utilizes and will continue to utilize, for the term of this Contract, the U. S.

Department of Homeland Security’s E-verify system to determine the eligibility of:

1. All persons employed to perform duties within Texas, during the term of the Contract; and

2. All persons (including subcontractors) assigned by the vendor to perform work pursuant to the Contract, within the United States of America.

32. CYBERSECURITY TRAINING AND DATA SECURITY:

Under Tex. Gov’t Code §2054.5192, any vendor with access to a TLC computer system or database shall complete a cybersecurity training program certified under §2054.519. The vendor shall verify completion and sign the Texas Lottery’s Information Security Agreement with TLC prior to receiving access to computer systems or databases.

The vendor agrees that it will not utilize any Prohibited Technologies on any of the vendor’s or its employees’ personally-owned devices used to access state- owned data, including cell phones, tablets, desktop and laptop computers, and other internet-capable devices. “Prohibited Technologies” refers to software applications and hardware products with security concerns made by manufacturers on the prohibited technologies list located on the Texas Department of Information Resources’ website at: https://dir.texas.gov/information-security/prohibited-technologies. In addition to the DIR list, the TLC in its sole discretion may designate additional prohibited technologies. The vendor’s employees may be required to review the TLC’s Information Technology Security Manual and sign the Texas Lottery’s Information Security Agreement upon request of the TLC.

Under Tex. Gov’t Code §2054.0593, any cloud computing services utilized by the vendor under the Contract resulting from this RFP shall comply with the requirements of the state risk and authorization management program. The vendor shall maintain program compliance and certification throughout any Contract term and shall be required to demonstrate compliance with program requirements upon request by the TLC.

Under Tex. Gov’t Code §2054.138, any vendor authorized to access, transmit, use, or store data for the TLC shall meet the designated security controls as established by TLC and determined to be proportionate with the contract risk and the sensitivity of the data. The vendor must periodically provide evidence of compliance with the security controls required under the Contract upon request by the TLC.

The vendor agrees that all products and/or services provided hereunder that are equipped with data storage (i.e. computers, telephones, printers, fax machines, scanners, multifunction devices, etc.) shall have the capability to securely erase data written to the data storage device prior to final disposition of such products and/or services, either at the end of the product’s useful life or the end of the related services contract for such products and/or services, in accordance with 1 TAC Chapter 202.

33. PROHIBITION ON CERTAIN BIDS AND CONTRACTS RELATED TO

PERSONS INVOLVED IN HUMAN TRAFFICKING. Under Tex. Gov’t Code §2155.0061, the vendor certifies that the individual or business entity named in this bid or contract is not ineligible to receive the specified contract and acknowledges that this contract may be terminated and payment withheld if this certification is inaccurate.

https://comptroller.texas.gov/purchasing/programs/vendor-performance-tracking/index.php#oveview https://comptroller.texas.gov/purchasing/programs/vendor-performance-tracking/index.php#oveview https://dir.texas.gov/information-security/prohibited-technologies https://dir.texas.gov/information-security/prohibited-technologies