ESBD_490721_1774468092263_Lottery Drawings CPA Services Q&A - Final.pdf

TEXAS DEPARTMENT OF LICENSING AND

REGULATION

REQUEST FOR PROPOSALS FOR

LOTTERY DRAWINGS CPA SERVICES

No. 452-2026-0004

RESPONSES TO PROPOSERS’

QUESTIONS

AND

AMENDMENTS TO THE RFP

March 25, 2026

REQUEST FOR PROPOSALS

FOR

LOTTERY DRAWINGS CPA SERVICES

RESPONSES TO PROPOSERS’

QUESTIONS

Note to All Prospective Proposers:

The following responses include questions raised and answers provided during the pre-proposal conference held on March 5, 2026, and questions submitted in writing by the RFP deadline.

The Texas Department of Licensing and Regulation (TDLR) has provided responses to questions.

Some answers may clarify the RFP or result in an RFP amendment, and every Prospective Proposer is on notice of each answer’s content. Answers apply only to the facts as presented in each specific question.

TDLR reviewed all questions submitted by the deadline but declines to respond to some questions when TDLR believes providing the information would impair competition or otherwise harm the interests of TDLR.

Proposers shall review all sections of the RFP along with this document to ensure a complete understanding of the requirements. Any exceptions to the RFP shall be noted in the proposal, as required under Section 2.7 of the RFP.

Please note: Any questions regarding the HUB Subcontracting Plan (HSP) are in a separate document that will be updated throughout the procurement process.

PRE-PROPOSAL CONFERENCE QUESTIONS AND RESPONSES -

MARCH 5, 2026. The following question was asked during the Pre-Proposal Conference, and a response was deferred to this Questions and Responses document.

1. page 63 under the section financials. And if you don't have audited financial statements, there are three bullet points under Section 4. Do you want all three to be included like the line of credit from the third-party financial institution as well as six month of average bank balance. Do you want both or either or?

RESPONSE: Refer to RFP Section 4.6.2 for accepted documents to prove evidence of Financial Soundness. TDLR declines to provide additional clarification on acceptable documents.

WRITTEN QUESTIONS RECEIVED BY MARCH 16, 2026 @ 4 P.M.

2. Paragraphs 1.1.1, 4.1.1 and 6.1.2 of the RFP – Can you please clarify whether the accounting firm is required to provide evidence of licensure by the Texas State Board of Public Accountancy, or just each individual accountant who will perform services?

RESPONSE: In accordance with RFP Section 4.1.1, evidence of licensure by the Texas State Board of Public Accountancy shall be provided for each individual accountant who will perform services.

3. Paragraphs 2.10.1 and 3.14.2 – Paragraph 2.10.1 indicates that “Pricing agreed to in any resulting Contract shall be firm and remain constant through the life of the contract.”

However, paragraph 3.14.2 seems to imply that the rates can be modified for the two renewal periods. Given the significant inflation on wages seen over the last few years, would the Texas Lottery accept a Cost Proposal that provides for separate rates for each year of the possible five-year total term?

RESPONSE: No. In accordance with RFP Section 2.10, pricing for the required services is to be presented only in the format set forth in Attachment G of the RFP.

4. Paragraph 3.50.6 of the RFP – Please clarify what sanctions and liquidated damages are being referenced as section 3.37 of the RFP only contemplates litigation.

RESPONSE: Refer to RFP Amendment No. 2

5. Paragraphs 6.8.2(b) and 6.8.2(e) of the RFP – Paragraph 6.8.2(b) indicates that “the Texas Lottery will provide the pre-test results and running totals to the Successful Proposer no later than fifteen (15) Working Days after the last drawing of the month by 5 p.m.” However, there are additional reports that the Texas Lottery must provide in order for the Successful Proposer to produce the monthly drawings report, some of which the Texas Lottery cannot provide until they are received from third-parties. As a result, the deadline for producing the monthly drawings report as specified in paragraph 6.8.2(e) is not always possible if there is a delay in receiving the other materials from those third parties. Additionally, the Texas Lottery has historically requested a draft report to review and approve prior to issuance of the final monthly report. Would the Texas Lottery consider a modification to paragraph 6.8.2(e) to reflect the need for additional items and a draft report to review and approve? Potential alternative language for paragraph 6.8.2(e) might be something similar to the following:

The Successful Proposer shall submit a draft of the final monthly report within ten

(10) Working Days of receiving from the Texas Lottery the last information necessary to produce the complete monthly drawing report, after the last drawing of the previous month. The successful Proposer shall submit the final monthly report, including all attachments, within five (5) Working Days of receiving the last required approval of the draft report from the Texas Lottery.

RESPONSE: Refer to RFP Amendment No. 3. Also, Section 6.8 of the RFP does not require a draft monthly report be submitted to the Texas Lottery for review and approval prior to submittal of the final monthly report.

6. Paragraph 6.8.3 of the RFP – Sharing files via USB has come under scrutiny by security departments due to the possibility of loss and lack of an audit trail to prove when files were delivered and whether only authorized users have accessed the files. We believe that the TDLR Information Technology department has provided a Microsoft SharePoint site for auditors sharing information on other Texas Lottery projects. Would the Texas Lottery consider a modification that allows for alternative methods of report delivery?

Potential alternative language might be something similar to the following:

The Successful Proposer shall deliver the monthly drawings report in a format agreed upon by the Texas Lottery and must include the “Independent Accountants’ Report on Applying Agreed-Upon Procedures” and all supporting documentation as appendices. The method of delivery of the final monthly drawings report will be via either (a) two copies provided on separate USBs, (b) a secure file sharing site approved by the TDLR Information Technology Department, or (c) other new technology as otherwise agreed to by TDLR.

RESPONSE: TDLR declines to modify Section 6.8.3 of the RFP. The Successful Proposer is required to provide two (2) USBs in accordance with RFP Section 6.8.3.

Additionally, the lead in paragraph for Section 6.8 states that the Successful Proposer shall prepare and submit (electronically, unless requested in writing) monthly drawings reports. Electronically is not defined, therefore, the Successful Proposer may propose an electronic method of delivery that is agreed to by the Texas Lottery.

7. Paragraph 6.13.4 of the RFP – The link provided for parking references limited parking available for contractors in a few garages, but not Garages T and W which are not accessible by the public. Given the time sensitive nature of each individual drawing and the fact that auditors are on site until late hours six days per week, including Saturdays, does the Texas Lottery intend to remove access to Garages T and W for the auditors?

Additionally, TFC has not historically charged the accounting firm for their parking passes. Is the intent for the Successful Proposer to start charging each auditor for a parking pass?

RESPONSE: No. TDLR has no intent for the Successful Proposer to start charging each auditor for a parking pass. All parking on the Capitol Complex is administered by the Texas Facilities Commission (TFC). Prospective Proposers should contact TFC for any parking fees. The Successful Proposer is responsible for paying for parking.

8. Question #1 - In Section 4.6 - Financial Soundness in subsection 4.6.2, if Item 1, 2, or 3 is not applicable, will unaudited financial statements be acceptable per Item 4? Also, Item 4 has two bullet items to submit with the unaudited financial statements. Are both items required such as the line of credit and bank statements, or will one of the items be sufficient?

RESPONSE: Refer to the response to question No. 1.

AMENDMENTS TO THE RFP

The following have been adopted by Amendment to the RFP, as permitted by Section 2.12 of the RFP. The following sections have either been replaced in their entirety or material has been removed.

Amendment No. 2

3.50. Sanctions and Remedies Schedule

3.50.6 Failure to Disclose Litigation. The failure of the Successful Proposer to disclose litigation, sanctions, or liquidated damages as required by Section 3.37 of this RFP may result in the Successful Proposer being assessed sanctions in the amount of one hundred dollars ($100) per incident.

Amendment No. 3

6.8. Reporting Requirements

6.8.2 Monthly Drawing Reports.

(b) Reports shall contain details of each drawing including all forms and checklists used for that month’s drawings. At the end of each month, the Successful Proposer shall check and verify that the lists compiled by the Texas Lottery drawings staff properly detail the pre-test results and running totals for the ball sets and machines used for each drawing. The Texas Lottery will provide the pre-test results and running totals to the Successful Proposer no later than fifteen (15) Working Days after the last utilize a bifurcated process for providing the required documents. The Texas Lottery shall provide the pre-test results, running totals, and all other supporting documents in advance of the entire package to the Successful Proposer and provide the remaining documents no later than fifteen (15) twenty (20) Working Days after the last drawing of the month by 5 p.m.

(e) The Successful Proposer shall submit the final monthly report, including all attachments, within fifteen (15) twenty (20) Working Days of receiving the pre-test results, and running totals, and other supporting documents from the Texas Lottery, after the last drawing of the previous month.

6.8.2 Monthly Drawing Reports.