ESBD_491556_1771620512991_IFB for Daily 4 Drawing Machines and Ball Sets RQ26-12110 Final.pdf

Date: February 20, 2026 Page 1 of 62

BIDDER MUST FILL IN ALL ITEMS

VENDOR I.D. NUMBER

Name of firm

Street address

City, State, ZIP code

Attention:

INVITATION FOR BIDS

TEXAS DEPARTMENT OF

LICENSING AND REGULATION

• IF NOT BIDDING, PLEASE DO NOT RETURN THIS FORM.

• IF BIDDING, BID MUST BE SIGNED.

• All Bids must be quoted F.O.B. DESTINATION.

• BIDDER AGREES TO COMPLY WITH ALL TERMS AND CONDITIONS.

• THE LAWS OF THE STATE OF TEXAS MUST PREVAIL ON ALL BIDS.

BIDDER MUST SIGN BID MANUALLY OR BID WILL BE DISQUALIFIED

Authorized signature and title sign,► here

Date

BID OPENING DATE: March 16, 2026

IFB Number: RQ26-12110

QUOTE F.O.B. DESTINATION

RETURN SEALED BIDS TO:

Procurement@lottery.state.tx.us

HAND DELIVERIES/EXPRESS MAIL TO:

Check below if preference claimed under 34 TAC Section 20.306

( ) Agricultural product produced or grown in Texas ( ) Produced in USA

( ) Produced in Texas and/or offered by Texas Bidder

By signing this bid, Bidder certifies that if a Texas address is shown as the address of the Bidder, Bidder qualifies as a Texas Bidder as defined in Tex. Gov’t Code §2155.444(c)(2)

SPECIAL INSTRUCTIONS

NIGP COMMODITY CLASS-ITEM CODES: 578-53 Daily 4™ Drawing Machines and Ball Sets

PROPRIETARY (SOLE SOURCE) SOLICITATION. THE EQUIPMENT BEING PURCHASED IS CONSIDERED

PROPRIETARY BY SOURCE AND CAN ONLY BE PURCHASED THROUGH ITS MANUFACTURER.

NOTE: ANY QUESTIONS REGARDING THIS BID MUST BE SUBMITTED IN WRITING TO E-MAIL:

tammy.williams@lottery.state.tx.us

NOTICE TO BIDDERS:

• BID PRICING MUST BE SUBMITTED ON ATTACHMENT D. SEE SECTION 3.3 OF THIS IFB.

• THIS PAGE AND ATTACHMENT D (COST SHEET) MUST BE SIGNED AND INCLUDED WITH

YOUR BID OR BID WILL BE DISQUALIFIED.

mailto:Procurement@lottery.state.tx.us

TEXAS DEPARTMENT OF LICENSING

AND REGULATION

INVITATION FOR BIDS

Daily 4™ Drawing Machines and Ball Sets

Proprietary

INVITATION FOR BIDS NO. RQ26-12110

TEXAS DEPARTMENT OF LICENSING AND REGULATION

IFB FOR DAILY 4 DRAWING MACHINES AND BALL SETS

PART 1 INTRODUCTION

1.1 PURPOSE

1.2 INTENT

1.3 SCHEDULE OF EVENTS

1.4 CONTACT WITH BIDDERS

1.5 QUESTIONS

1.6 BIDDER UNDERSTANDING OF IFB

1.7 HISTORICALLY UNDERUTILIZED BUSINESS (HUB) PLAN

1.8 BIDDER’S CONTRACTING AUTHORITY

PART 2 GENERAL INFORMATION

2.1 AUTHORITY

2.2 ISSUING AGENCY AND RIGHT TO AMEND IFB

2.3 TEXAS DEPARTMENT OF LICENSING AND REGULATION OBLIGATIONS

2.4 SUCCESSFUL BIDDER'S OBLIGATIONS

2.5 BID TENURE

2.6 MEDIA RELEASES

2.7 OPEN RECORDS

2.8 CERTIFICATION

2.9 VENDOR PERFORMANCE

PART 3 RESPONSE REQUIREMENTS

3.1 INTRODUCTION

3.2 NUMBER OF COPIES

3.3 BIDDER’S COST

3.4 REFERENCES

3.5 EXPERIENCE OF THE BIDDER

3.6 EXPERIENCE OF PERSONNEL

3.7 HISTORICALLY UNDERUTILIZED BUSINESS PARTICIPATION

3.8 STATEMENT OF NON-DISCRIMINATION

3.9 CONFLICT OF INTEREST

3.10 BIDDER POINT-OF-CONTACT

PART 4 CONTRACT SPECIFICATIONS

4.1 BACKGROUND

4.2 DESCRIPTION OF GOODS AND SERVICES

4.3 BALL SETS

4.4 SAMPLE BALLS

4.5 BALL SET CASES

4.6 DELIVERY, TRAINING AND TESTING

4.7 WARRANTY, MAINTENANCE AND REPAIR

4.8 MACHINE REPLACEMENT

4.9 SHIPPING CRATES WITH RAMPS

4.10 DELIVERY DATE

4.11 RECYCLING

4.12 SHIPPING REQUIREMENTS

4.13 WARRANTIES

4.14 AWARD OF CONTRACT

PART 5 SELECTION PROCESS

5.1 PROHIBITION AGAINST UNAUTHORIZED CONTACT

5.2 BID EVALUATION CRITERIA

5.3 PROTEST PROCEDURE

PART 6 CONTRACT TERMS AND CONDITIONS

6.1 INTRODUCTION

6.2 TERMINATION FOR CONVENIENCE

6.3 TERMINATION WITHOUT PENALTY

6.4 TERMINATION AND NEW CONTRACT AWARD

6.5 TEXAS DEPARTMENT OF LICENSING AND REGULATION’S TERMINATION RELATED TO AVAILABILITY OF

LEGISLATIVE APPROPRIATIONS

6.6 GOVERNING LAW AND VENUE

6.7 CONFLICT AMONG DOCUMENTS

6.8 ASSIGNMENT

6.9 INDEMNIFICATION

6.10 TAXES, FEES AND ASSESSMENTS

6.11 DISPUTE RESOLUTION

6.12 FORCE MAJEURE / DELAY OF PERFORMANCE

6.13 TERMINATION FOR CAUSE

6.14 BIDDER EMPLOYEES

6.15 TICKET PURCHASE

6.16 LIQUIDATED DAMAGES

6.17 PAYMENT

6.18 NON-DISCLOSURE

6.19 CODE OF CONDUCT

6.20 AMENDMENT

6.21 NON-WAIVER

6.22 ACCOUNTING RECORDS

6.23 RIGHT TO AUDIT

6.24 CONTACT WITH TEXAS DEPARTMENT OF LICENSING AND REGULATION EMPLOYEES

6.25 BIDDER CERTIFICATIONS

6.26 BIDDER ASSIGNMENT

6.27 SEVERABILITY

6.28 PREFERENCES

6.29 CYBERSECURITY TRAINING, CLOUD COMPUTING, DATE PROTECTION AND SECURITY

PART 7 CREATION OF WORKS, USE OF MATERIALS, OWNERSHIP BY TEXAS DEPARTMENT

OF LICENSING AND REGULATION

7.1 CREATION OF “WORKS”

7.2 TEXAS DEPARTMENT OF LICENSING AND REGULATION OWNERSHIP OF WORKS

7.3 WORKS SHALL BE “WORKS MADE FOR HIRE”

7.4 ASSIGNMENT OF RIGHTS TO THE WORKS

7.5 WAIVER OF MORAL RIGHTS TO THE WORKS

7.6 CONFIDENTIALITY OF THE WORKS

7.7 PRE-EXISTING RIGHTS AND THIRD-PARTY RIGHTS

7.8 RIGHT AND AUTHORITY OF BIDDER

7.9 INJUNCTIVE RELIEF

PART 8 ATTACHMENTS

ATTACHMENT A TEXAS GOVERNMENT CODE § 466.155

ATTACHMENT B CONTACT/COMPANY INFORMATION

ATTACHMENT C REFERENCES

ATTACHMENT D COST SHEET

ATTACHMENT E SCORING MATRIX

ATTACHMENT F BIDDER CERTIFICATION

ATTACHMENT G HUB SUBCONTRACTING PLAN…….……………………………………………………59

ATTACHMENT G-1 HSP QUICK CHECKLIST…………………………………………..……………………60

ATTACHMENT G-2 HUB SUBCONTRACTING OPPORTUNITY NOTIFICATION FORM

ATTACHMENT H DRAWING MACHINE PHOTOGRAPHS

PART 1 INTRODUCTION

1.1 Purpose

The purpose of this Invitation for Bids (IFB) is to obtain bids from qualified vendors to provide three (3) identical Daily 4 Drawing Machines and forty (40) Daily 4 Ball Sets for the Texas Department of Licensing and Regulation (referred to herein as “Department,” or

“TDLR”).

1.2 Intent

1.2.1 The Texas Department of Licensing and Regulation intends to enter into a contract with the Successful Bidder to provide three (3) identical Daily 4™ Drawing Machines and forty

(40) Daily 4 Ball Sets for the Texas Lottery Program (referred to herein as “Texas Lottery” or “Lottery”), as more fully described in Part 4, Contract Specifications.

1.2.2 For purposes of this procurement, a Contract includes a purchase order. “Bidder” means an individual or entity that submits a bid. The term includes anyone acting on behalf of the individual or entity that submits a bid, such as agents, employees and representatives.

“Successful Bidder” means the Bidder with whom the Texas Department of Licensing and Regulation executes a contract to provide the goods and services this IFB requires.

1.3 Schedule of Events

The following time periods are set forth for informational and planning purposes only. The Texas Department of Licensing and Regulation reserves the right to change any of the time periods and will post all changes on the Electronic State Business Daily (ESBD), https://www.txsmartbuy.gov/esbd website.

DATE EVENT

February 20, 2026 Issuance of IFB February 27, 2026 (4:00 p.m., CENTRAL TIME)

Written Technical Questions Due (Late Questions will not be answered)

March 6, 2026 On or before (or as soon as possible thereafter)

Responses to Written Technical Questions Issued

March 6, 2026 Final date for submission of draft HSP forms and final date to conduct one-on-one workshops (Zoom, TEAMS or telephone conferences)

March 16, 2026 (3:00 p.m., CENTRAL TIME)

DEADLINE FOR BIDS

https://www.txsmartbuy.gov/esbd

March 30, 2026 On or before (Or as soon as possible thereafter)

Announcement of Award

1.4 Contact with Bidders

1.4.1 The sole point of contact with regard to all procurement and contractual matters relating to the goods and services described in this IFB will be Tammy Williams. All communications concerning this procurement must be addressed in writing to:

tammy.williams@lottery.state.tx.us Except for the point of contact, potential Bidders or their representatives shall not ask questions or otherwise discuss with TDLR representatives and employees the contents of this IFB. Failure to observe this restriction may result in disqualification. The restrictions shall not, however, preclude discussions between affected parties for the purpose of conducting business unrelated to this procurement.

1.5 Questions

1.5.1 Written questions concerning this IFB will be accepted by Tammy Williams and responses posted on the Electronic State Business Daily (ESBD), https://www.txsmartbuy.gov/esbd website, 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 Department of Licensing and Regulation but will not be answered. Any addenda or amendments, whether made as a result of a prospective Bidder’s written questions or otherwise, will be posted on the ESBD website. It is the responsibility of the Bidder to check this website for any additional information regarding this IFB.

1.5.2 Questions shall be submitted by email by the questions submission deadline:

tammy.williams@lottery.state.tx.us

1.6 Bidder Understanding of IFB

1.6.1 By submitting a signed bid, a Bidder agrees that it fully understands this IFB and shall abide by the terms and conditions contained in it. For Parts 3 and 4 only, Bidders are requested to provide a section-by-section response to the IFB, unless otherwise required by the terms of this IFB. No exceptions, amendments, or deviations will be allowed in any bid unless agreed to in writing by TDLR prior to bid opening. Unauthorized exceptions, amendments, or deviations in the bid may result in disqualification. To be considered, Bids must be received by 3:00 p.m. Central Time on February 20, 2026. Late Bids will not be considered. No exceptions will be made.

1.6.2 Electronic Delivery Submission. Electronic responses shall be sent via email to Procurement@lottery.state.tx.us. Bidders shall place the IFB Name and Number, along mailto:sidney.valle@lottery.state.tx.us https://www.txsmartbuy.gov/esbd mailto:sidney.valle@lottery.state.tx.us mailto:Procurement@lottery.state.tx.us with the Bidder Name into the subject line of their email. Electronic responses shall be received no later than the deadline established in the Schedule of Events. Late Bids will not be considered. No exceptions will be made.

1.6.3 For electronic submissions, Bidders shall submit one (1) signed original of its Bid along with the required Attachments and one (1) signed original of its Cost Sheet that shall be in a searchable and unprotected portable document format (PDF). Each PDF file attachment shall be a separate document and clearly named. The Texas Department of Licensing and Regulation takes no responsibility for electronic submissions that are captured, blocked, filtered, quarantined or otherwise prevented from reaching the proper destination server by any TDLR anti-virus or other security software. To confirm receipt of all electronic submissions, Bidders should request confirmation by e-mail.

1.6.4 If a Bidder discovers any ambiguity, conflict, discrepancy, exclusionary specification, omission or other error in this IFB, it shall immediately notify, in writing, the Texas Department of Licensing and Regulation point of contact and request clarification. If a Bidder fails to notify TDLR point of contact of any error, ambiguity, conflict, discrepancy, exclusionary specification or omission, the Bidder shall submit a response at its own risk;

and, if awarded a contract, the Successful Bidder shall be deemed to have waived any claim that the IFB and contract were ambiguous and shall not contest the Texas Department of Licensing and Regulation ’s interpretation. In no event shall a Bidder be entitled to additional compensation, relief or time by reason of the above-listed defects or their later correction.

1.7 Historically Underutilized Business (HUB) Plan

All Bids must include a completed Historically Underutilized Business (HUB) Subcontracting Plan (HSP) in the format required by the Texas Comptroller of Public Accounts. Bidders are strongly encouraged to start preparing HSP forms as soon as possible and take advantage of the Texas Department of Licensing and Regulation’s assistance as noted in Section 3.7.3 of this IFB. See Section 1.3, Schedule of Events, for HSP related deadlines. See Section 3.7 for additional information on the HSP.

1.8 Bidder’s Contracting Authority

The Bidder warrants and represents that the person named on the first page of the Bid has the full right, power and is legally authorized to execute the Contract and/or Purchase Order resulting from this IFB on behalf of the Bidder. Commitments must be unqualified, not limited, and fully commit the Bidder to provide the goods and services required under this

IFB.

PART 2 GENERAL INFORMATION

2.1 Authority

This IFB is issued in accordance with the State Lottery Act (Tex. Gov’t Code ch. 466) and the procurement rules of the Texas Department of Licensing and Regulation, 16 Tex.

Admin. Code (TAC) §§ 140. 101–105. All Bids submitted in response to this IFB are subject to the requirements of the State Lottery Act, regardless of whether specifically addressed in this IFB. All potential Bidders should read and be familiar with the State Lottery Act and the procurement rules of the Texas Department of Licensing and Regulation.

2.2 Issuing Agency and Right to Amend IFB

This IFB is issued by TDLR and is subject to clarification, modification, amendment, alteration, or withdrawal at TDLR’s sole discretion at any time prior to award, if in the Texas Department of Licensing and Regulation ’s best interest. The decision of the Texas Department of Licensing and Regulation shall be administratively final in this regard.

2.3 Texas Department of Licensing and Regulation Obligations

The Texas Department of Licensing and Regulation shall not be responsible for costs incurred in responding to this IFB. TDLR reserves the right to select qualified Bids to this IFB without discussion of the Bids with the Bidders. All Bids will become a part of the Texas Department of Licensing and Regulation official procurement files and will be available for public inspection after contract award. The Texas Department of Licensing and Regulation reserves the right to reject any or all Bids received. No obligation is created by retention of these Bids, nor is the Texas Department of Licensing and Regulation committed to awarding a contract as a result of this IFB.

2.4 Successful Bidder's Obligations

The Successful Bidder shall be responsible for the performance of all contractual obligations that may result from an award based on this IFB and shall not be relieved of obligations due to non-performance of any or all subcontractor(s).

A bid submitted in response to this IFB must identify any subcontractors and describe the contractual relationship between the Bidder and each subcontractor. The Successful Bidder must obtain written approval from the Texas Department of Licensing and Regulation before subcontracting any portion of the contract requirements.

2.5 Bid Tenure

All Bids shall be valid for a period of ninety (90) days from the deadline for Bids.

2.6 Media Releases

The Successful Bidder shall not issue any media releases or publish information to the public, including on social media platforms, pertaining to this procurement process or the performance of the Contract without prior written approval of the Texas Department of Licensing and Regulation. For any required disclosure or any public release of information of any kind, including a non-required disclosure, that is under a deadline imposed by any statutory or regulatory authority, the Successful Bidder shall seek approval from TDLR no less than two (2) Business Days prior to the deadline for the release of the information. In any instance where there is a deadline for the release of information, approval of the release by TDLR shall neither be construed as an endorsement of the release, as assent to the content of the release, as an indication of the accuracy of the information in the release, nor as any admission of any kind regarding any subject covered in the release.

2.7 Open Records

The Texas Department of Licensing and Regulation is subject to the Texas Public Information Act (Act) (Tex. Gov’t Code ch. 552). Bids submitted to the Texas Department of Licensing and Regulation in response to this IFB are subject to release by TDLR as public information unless the bid or specific parts thereof can be shown to fall within one or more of the exceptions to disclosure provided in the Act, the State Lottery Act or other applicable law. If a Bidder believes that its bid, or parts thereof, is confidential under the Act, it must specify that either all or part is excepted by marking “Confidential” on each page or by each paragraph containing such information. The Bidder further must specify which exception(s) it believes applies for each portion marked “Confidential,” with specific and detailed reasons. Vague, general or blank claims to confidentiality are not acceptable. This is necessary so the Texas Department of Licensing and Regulation will have sufficient information to provide the Attorney General of Texas, if an opinion regarding the confidentiality of the information is requested. All Bids or parts of Bids that are not marked as being confidential may automatically be considered public information after a contract has been awarded. The successful bid may be considered public information even though parts are marked “confidential.”

2.8 Certification

Pursuant to Tex. Gov’t Code § 466.103 (Prohibited Contracts), the Texas Department of Licensing and Regulation 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. By submitting a bid, each Bidder certifies that it has reviewed Tex. Gov’t Code § 466.155 (attached hereto as Attachment A) and neither the Bidder nor any of the following would be denied a license as a sales agent: (i) Bidder’s officers, directors, investors, owners, partners, and principals, as more particularly described in Tex. Gov’t Code § 466.155 (collectively, Bidder Principals); or (ii) any spouse, child, brother, sister or parent residing as a member of the same household in the principal place of residence of the Bidder or any of the Bidder Principals.

Additionally, as part of any bid, proposal or agreement, Bidder must provide written certification (Attachment F) that it would not be denied a license as a sales agent pursuant to Tex. Gov’t Code § 466.155. Attachment F must be signed and returned with the bid;

otherwise, the bid may be disqualified.

2.9 Vendor Performance

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

PART 3 RESPONSE REQUIREMENTS

3.1 Introduction

Each Bidder may submit only one (1) bid. Failure to provide information required in a bid response under this Part 3, or as otherwise required by the terms of this IFB, may result in the rejection of a bid as non-responsive.

3.2 Number of Copies

Each Bidder shall submit one (1) signed original bid including the following:

• Bid Cover Sheet signed.

• Attachment B – Contact/Company Information

• Attachment C – References

• Attachment D –Cost Sheet (signed) (one (1) separate PDF)

• Attachment F –Bidder Certification (signed)

• Attachment G – Historically Underutilized Business Subcontracting Plan (signed one

(1) separate PDF)

The Bid must include all pages of the IFB required information. Failure to provide signatures where required will result in disqualification of the bid.

3.3 Bidder’s Cost

Each Bidder shall state its pricing for the required goods and services as specified on the Cost Sheet (Attachment D).

The Successful Bidder will be paid based on the price in the contract for goods and services accepted by the Texas Department of Licensing and Regulation under this IFB. No reimbursement is available to the Bidder beyond the amount agreed to be paid as the cost of goods or services provided, if any. The costs of shipping and other such charges must be specifically identified on the Cost Sheet. Any such charges not identified by the Successful Bidder will be the Successful Bidder’s responsibility.

3.4 References

A minimum of five (5) verifiable references must be provided that include contact person, name of company, phone number, and e-mail address (Attachment C). Bidder’s references shall include references for which the Bidder has provided similar goods or services as described in Part 4 of this IFB within the last five (5) years. The Texas Department of Licensing and Regulation reserves the right to contact these references to verify Bidder’s ability to provide the goods and/or services as specified and to verify all information in the

Bid submitted by the Bidder and seek other information it deems necessary to conduct a thorough review.

3.5 Experience of the Bidder

3.5.1 Bidder must explain why it has the required experience to provide the goods and services required under this IFB. Each Bidder must also indicate why the goods and services bid best meet the objectives of the Texas Lottery Program. This shall include the Bidder’s experience to ensure timely delivery of quality products and services.

3.5.2 Bidder must indicate the number of years’ experience the Bidder has in providing the goods and/or services specified in this IFB, including any applicable training and/or certifications.

3.5.3 Bidder must indicate any previous state of Texas or governmental entity experience providing similar goods and/or services, including name of agency, type of work performed, and duration of project.

3.5.4 Bidders must disclose whether any of the following occurred during the last three (3) years: (i) the Bidder has had a contract terminated and, if so, shall provide full details, including the other party’s name, address and telephone number; (ii) the Bidder has been assessed any sanctions or liquidated damages under any existing or past contracts with any state, provincial, or other lottery or government agency and, if so, note the jurisdiction, the reason for and the amount of the sanction or liquidated damages for each incident; (iii) the Bidder has been the subject of any disciplinary action for substandard work or unethical practices or was debarred or suspended from engaging in any business, practice or activity; (iv) the Bidder has been involved in litigation with any lottery or governmental agency.

3.6 Experience of Personnel

Each Bidder must provide detailed resumes or other documentation for key personnel assigned to this project that includes experience with similar projects, and the number of years with the Bidder’s company. Documentation must provide sufficient detail to demonstrate the experience and expertise of the Bidder’s assigned personnel to provide the goods and perform the services specified in this IFB.

3.7 Historically Underutilized Business Participation

3.7.1 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 a Service-disabled Veteran (as defined by 38 U.S.C.

Section 101(2)) who has 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.

3.7.2 HSP Requirement

TDLR has adopted the rules promulgated by the Comptroller of Public Accounts (CPA) regarding Historically Underutilized Businesses (HUBs) in 34 Texas Administrative Code (TAC) §§ 20.281 – 20.298 (See https://texas-sos.appianportalsgov.com/rules-and-meetings?chapter=20&division=1&interface=VIEW_TAC&part=1&subchapter=D&title =34

By submitting a Bid, the Bidder certifies that it has reviewed 34 TAC §§ 20.281 - 20.298.

Rule 20.285 addresses the specific requirements of Historically Underutilized Business subcontracting plans (HSPs).

3.7.3 HSP Submission and TDLR Review

a. All Bids must include an HSP (Attachment G, including Method A or B, if applicable) in the format required by the Comptroller of Public Accounts. Bidders may access the HSP forms on-line at the following CPA website link:

https://www.comptroller.texas.gov/purchasing/vendor/hub/forms.php. The forms must be printed, signed and submitted with your Bid. The HSP is a pass/fail requirement.

BIDS THAT DO NOT INCLUDE A COMPLETED HSP PREPARED IN

ACCORDANCE WITH 34 TAC §20.285 SHALL BE REJECTED AND WILL

NOT BE EVALUATED.

b. The HSP forms are provided in Attachment G of this IFB. To determine whether a Bidder has performed a good faith effort in preparing its HSP as required by the Comptroller’s HUB rules, TDLR may request clarifications, if necessary. The HSP will be reviewed based on the Bidder’s submission and any clarifications requested by the agency.

3.7.4 Assistance for Preparation of HSP

a. HSP Quick Check List and HUB Subcontracting Opportunity Notification Form.

Attached to this IFB are an HSP Quick Check List (Attachment G-1) prepared by the CPA and a HUB Subcontracting Opportunity Notification Form (Attachment G-2).

Attachment G-1 is intended to assist Bidders in preparing the HSP forms but is not required to be submitted with Bids. Bidders are encouraged to use Attachment G-2 when sending notice of subcontracting opportunities.

b. Additional TDLR Assistance. As stated above, if an HSP is rejected, the Bid will be disqualified and will not be considered. Therefore, Bidders are strongly encouraged to start preparing HSP forms as soon as possible and take advantage of the https://texas-sos.appianportalsgov.com/rules-and-meetings?chapter=20&division=1&interface=VIEW_TAC&part=1&subchapter=D&title=34 https://texas-sos.appianportalsgov.com/rules-and-meetings?chapter=20&division=1&interface=VIEW_TAC&part=1&subchapter=D&title=34 https://texas-sos.appianportalsgov.com/rules-and-meetings?chapter=20&division=1&interface=VIEW_TAC&part=1&subchapter=D&title=34 https://www.comptroller.texas.gov/purchasing/vendor/hub/forms.php following TDLR assistance. Please note there are deadlines associated with this process and Bidders have a limited amount of time to cure any deficiencies.

• Written questions regarding the HSP can be submitted at any time up until the Bid deadline. TDLR will compile and post a separate HSP question-and-answer document on the ESBD website. The document will be updated as questions are submitted. It is the Bidder’s responsibility to check the ESBD website for this information.

• TDLR will conduct one-on-one HSP workshops with Bidders upon request. The workshops will cover detailed information on how to complete the HSP forms.

Workshops must be concluded by the date and time listed in the Schedule of Events.

Workshops may be conducted via Zoom, TEAMS or telephone conference. During these workshops, TDLR will not answer any questions that are not directly related to the HSP process. Bidders are responsible for contacting TDLR to schedule a workshop during the specified time period.

• TDLR will review and provide individual written feedback on draft HSP forms submitted by Bidders. Draft HSP forms must be submitted by the date and time listed in the Schedule of Events. Upon request, TDLR may also provide verbal feedback.

Note that “draft HSP forms” consist only of the forms included in Attachments G, G-1 and G-2 of the IFB and documentation related to performance of the good faith effort. In reviewing draft forms, TDLR will not comment on responses to any other sections of the IFB, even if they are referred to in the HSP forms. Bidders are instructed not to submit any other portions of their Bid to TDLR as part of the draft HSP.

One-on-one workshops and TDLR’s review of draft HSP forms do not guarantee that the HSP submitted with the Bid will pass.

3.7.5 Requirements for Completing the HSP Forms

a. TDLR’s HUB Participation Goal. The goods and/or services requested in this IFB are classified in the category of Commodities Services Contracts. The agency’s HUB participation goal for this IFB is 21.10%.

b. Requirements of the HUB subcontracting plan. Each Bidder shall complete the HSP forms prescribed by the Comptroller (Attachment G) and provide the following:

(A) a certification the Bidder has made a good faith effort to meet the requirements of

34 TAC § 20.285;

(B) the names of the subcontractors that will be used during the course of the Contract;

(C) the expected percentage of work to be subcontracted; and

(D) the approximate dollar value of that percentage of work.

Each Bidder shall provide all documentation required by the agency to demonstrate the Bidder’s compliance with the good faith effort requirements prior to Contract Award. If a Bidder fails to provide supporting documentation (phone logs, fax transmittals, electronic mail, etc.) by the deadline specified by the agency, the Bid shall be rejected for material failure to comply with Tex. Gov’t Code §2161.252 (b).

c. Bidder Intends to Subcontract

Bidders who intend to subcontract any portion of the Contract must indicate in the HSP form that they intend to subcontract and must perform one of the three good faith effort methods identified below.

(1) Solicitation Method. To complete the solicitation method, the Bidder shall comply with all requirements of this clause.

(A) The Bidder shall divide the work into reasonable lots or portions consistent with prudent industry practices.

(B) The Bidder shall notify, in writing, at least two trade organizations or development centers that serve economically disadvantaged persons, of the subcontracting opportunities that the Bidder intends to subcontract.

(C) The Bidder shall notify, in writing, at least three HUBs of the subcontracting opportunities that the Bidder intends to subcontract. The Bidder shall provide the notice described in this subclause to three or more HUBs per subcontracting opportunity that provide the type of work required.

(D) The notices required by subparagraphs (B) and (C) of this paragraph shall include the scope of work, information regarding location to review plans and specifications, information about bonding and insurance requirements, required qualifications, and other contract requirements and identify a contact person.

(E) The Bidder shall provide the notices required by subparagraphs (B) and (C) of this paragraph at least seven working days prior to submission of the response.

Neither the day on which the notice is sent nor the day on which the Bidder submits its response count as one of the required seven working days. A state agency may determine that circumstances require a different time period than seven working days but must notify potential vendors of the requirement and document the justification in the contract file.

(F) The Bidder shall submit documentation of having provided the notices required by subparagraphs (B) and (C) of this paragraph, including copies of relevant correspondence with the recipients, with its HUB subcontracting plan.

(G) If the Bidder selects a non-HUB business to perform a subcontract instead of a HUB that bid for the same subcontract work, the Bidder shall include a written justification for the selection in its HUB subcontracting plan.

(H) The Bidder shall retain documentation of its compliance with each aspect of the solicitation method and submit it to the state agency upon request.

(2) All-HUB-Subcontractors Method. The Bidder may use the all-HUB-subcontractors method to demonstrate a good faith effort for any subcontracting opportunity by submitting documentation that 100% of subcontracting opportunities will be performed by HUBs.

(3) Meeting-or-Exceeding-HUB-Goal Method. The Bidder may use the meeting-or-exceeding-HUB-goal method to demonstrate a good faith effort for any subcontracting opportunity by submitting documentation that it will utilize one or more HUBs to perform subcontracts with a total value that will meet or exceed the HUB utilization goal identified in section 3.7.4(a). Bidders using this method shall perform the outreach even for areas where a Bidder has a pre-existing subcontracting relationship.

BIDDERS WHO INTEND TO SUBCONTRACT, AT A MINIMUM, MUST USE

ONE OF THE METHODS OUTLINED ABOVE. FAILURE TO DO SO WILL

RESULT IN DISQUALIFICATION.

d. Bidder Does Not Intend to Subcontract

Self-performing Method. The Bidder may use the self-performing method to demonstrate a good faith effort for any subcontracting opportunity by providing a statement of how it intends to fulfill the entire contract, including each subcontracting opportunity, with its own equipment, supplies, materials, and employees. The Bidder shall provide the following if requested:

(A) evidence of existing staffing to meet contract objectives;

(B) monthly payroll records showing employees engaged in the contract;

(C) on-site reviews of company headquarters or work site where services are to be performed; and

(D) documentation proving employment of qualified personnel holding the necessary licenses and certificates required to perform the work

Bidders who intend to fulfill the entire Contract using only their own existing resources and employees, without subcontracting, should check the appropriate box in Section 2 of the HSP form and complete Sections 3 and 4 of the form.

The Bidder must explain how all functions of the Contract will be performed without the use of Subcontractors and should refer to Section 3 of the HSP form.

3.7.6 Subcontracting Opportunities

a. The Texas Department of Licensing and Regulation has identified the following potential subcontracting opportunities under this IFB. Bidders intending to subcontract must perform the good faith effort detailed in the HSP instructions and include a compliant HSP with the Bid.

CLASS 100 – BARRELS, DRUMS, KEGS, AND CONTAINERS

Item Number and Commodity Descriptions:

100-05 Boxes, Crates, Baskets (Inactive, effective January 1, 2016) 100-11 Crates, Plywood 100-21 Freight and Cargo Containers, Shipping, (See Class 640 for Boxes)

Class 962: MISCELLANEOUS SERVICES, NO. 2 (NOT OTHERWISE

CLASSIFIED)

Item Number and Commodity Descriptions:

962-86 Transportation of Goods, Shipping and Handling, and Other Freight

Services

b. The potential subcontracting opportunities listed above may or may not be areas that a

Bidder would subcontract, depending on that Bidder’s existing resources, employees, and business model. Further, Bidders are not limited to the list above, and may identify additional areas of subcontracting. Bidders who intend to subcontract are responsible for identifying all areas that will be subcontracted and shall submit a completed HSP demonstrating evidence of good faith effort in developing that plan.

c. A list of HUB vendors registered with the CPA for the subcontracting opportunities identified above is included under HUB/CMBL of this IFB. This list is provided as a resource to assist Bidders in preparing and submitting an HSP. The TDLR does not endorse, recommend or attest to the capabilities of any company or individual listed.

Note that currently active certified HUBs will have a status code of “A.” All other status codes indicate that a vendor is inactive or not a HUB.

d. Please refer to the HUB/CMBL Directory Instructions and HUB Vendor Reference Lists under, HUB/CMBL, of this IFB to locate potential HUB Subcontractors.

3.7.7 Post Contract Award

a. Notification of Subcontractors

Following Contract Award, the Successful Bidder must provide notice to all subcontractors (HUBs and Non-HUBs) of their selection for the awarded Contract. The Successful Bidder is also required to provide a copy of each notice to the agency’s HUB Coordinator for the Contract no later than ten (10) Working Days after the Contract is awarded. Bidders should refer to Section 4 of the HSP form for additional information about this requirement.

b. HSP Changes

Following Contract Award, any proposed changes to the HSP must be submitted, in writing, by the Successful Bidder to TDLR for prior review and must be approved by the TDLR in writing before becoming effective under the Contract.

c. HSP Reporting

Following Contract Award, if the Successful Bidder is subcontracting, the Successful Bidder shall maintain business records documenting compliance with the HSP and shall submit a monthly compliance report in the format required by TDLR. The monthly compliance report shall be submitted to the TDLR by the 10th of the following month or on the date requested by the agency’s HUB Coordinator or his/her designee. The submission of the monthly compliance report is required as a condition of payment.

3.8 Statement of Non-Discrimination

The Successful Bidder shall comply with all applicable state and federal laws, rules and regulations involving nondiscrimination on the basis of race, color, religion, national origin, disability, sex, or age.

3.9 Conflict of Interest

The Bidder shall disclose any actual, potential, or perceived conflict of interest relative to the performance of the requirements of this IFB. The Bidder shall disclose any personal or business relationship of (a) itself; (b) any of its principals, officers, directors, investors, owners, partners, and employees (collectively, Proposer Personnel); (c) any spouse, child, brother, sister, or parent residing as a member of the same household in the principal place of residence of any Proposer Personnel; (d) any affiliate; or (e) any Subcontractor with (1) any employee or representative of Texas Department of Licensing and Regulation (including the Texas Department of Licensing and Regulation Executive Director and its commissioners) or (2) the Lottery’s vendors with contracts over $100,000. The list for all Texas Department of Licensing and Regulation and Texas Lottery Program contracts over $100,000, including major and prime contracts, is found at the following website links:

https://www.tdlr.texas.gov/contracting.htm http://www.texaslottery.com/export/sites/lottery/About_Us/Doing_Business_with_TLC /Contracts_Over_$100x000/

Failure to promptly disclose any such relationship may be a cause for disqualification of a Bid.

This is a continuing disclosure requirement for all Bidders throughout the procurement. For the Successful Bidder, there is also a continuing disclosure requirement after Contract Award and throughout the Contract Term to disclose to the Texas Department of Licensing and Regulation in writing any actual, potential or perceived conflict of interest relative to the performance of the requirements of this IFB and the Contract at the time such conflict is identified. Failure to promptly notify the Texas Department of Licensing and Regulation may be a cause for rejecting the Bidder.

https://www.tdlr.texas.gov/contracting.htm http://www.texaslottery.com/export/sites/lottery/About_Us/Doing_Business_with_TLC/Contracts_Over_$100x000/ http://www.texaslottery.com/export/sites/lottery/About_Us/Doing_Business_with_TLC/Contracts_Over_$100x000/

3.10 Bidder Point-of-Contact

Each Bidder shall designate a point of contact and provide the information requested in Attachment B.

PART 4 CONTRACT SPECIFICATIONS

4.1 Background

The purpose of this IFB is to obtain bids from qualified vendors to provide three (3) identical Daily 4 Drawing Machines and forty (40) Daily 4 Ball Sets.

4.2 Description of Goods and Services

4.2.1 The Successful Bidder shall be required to provide three (3) identical Daily 4 Drawing Machines that meet the required specifications listed in this Section 4.2 of the IFB. The Bidder must indicate how its Drawing Machines meet the established specifications.

Drawing Machines must be new and unused and have the same appearance (including color) and functionality as, and be interchangeable with, the Drawing Machines currently in rotation for the Texas Lottery Program. For purposes of illustrating the required appearance of the Drawing Machines, see Attachment H of this IFB for photographs of one of the Drawing Machines currently in rotation.

4.2.2 Each Drawing Machine must contain four (4) separate mixing chambers that include a device or method of mixing balls. Because this is a four-chamber machine, there shall be a delivery device for each chamber. Each machine shall have a display receptacle tray that must be centered between the four (4) mixing chambers. A controlled access gate and a selection head/lever are required between each mixing chamber and the selection display receptacle tray. The gate is required to automatically close after the ball has been selected.

The selection / display receptacle tray shall be attached above the mixing chamber at the top of each Drawing Machine. Each mixing chamber must be capable of drawing a single ball and the display receptacle/tray for each chamber shall hold one (1) selected ball. The display receptacle tray shall be in close proximity of the selection head / lever to allow for constant visual monitoring and broadcast presentation of the selection process. A total of four (4) selected balls will be displayed and shall have a separation of less than one inch at the final rest between the ends of the delivery trays.

4.2.3 An independent loading rack is required for each of the mixing chamber. The loading rack holds the numbered balls prior to their release into their respective mixing chamber. The loading rack for each mixing chamber must be attached to the separation panel for each mixing chamber. Separation panels are required for each chamber. The balls must mix freely without obstruction. When selected, the ball shall travel from the delivery device in a transparent tube to a selection display receptacle/tray. The loading rack for each mixing chamber must be capable of holding ten (10) ping-pong style balls.

4.2.4 When a ball is selected, the ball shall travel from the mixing chamber up through a delivery device (which is a transparent tube), and then through a controlled access gate with a selection head / lever to a display receptacle tray located on the top and front side of the drawing machines. The controlled access gate with selection head / lever is required to automatically close after the ball has traveled from the mixing chamber up through the delivery device and through the controlled access gate. The controlled access gate and selection head lever shall also allow for manual selection.

4.2.5 Each Drawing Machine shall be constructed of the same types of materials and in the same manner as the Daily 4 Drawing Machines currently in rotation at the Texas Lottery, with ½” and ¾” cell cast G grade acrylic, and ¾” birch veneer, maple core plywood to allow for sound suppression of the mixing process. All visible material/ substance on the Drawing Machines must be non-reflective to avoid hot spots during the televised productions of drawings. The top, walls and chambers of each Drawing Machine shall not be less than ¾ inch thick to allow for lighted or color edging. A device or method of mixing is necessary in each of the mixing chambers. Each Drawing Machine base cabinet shall be insulated for sound proofing to suppress the noise emitted by the compressor and blower units.

4.2.6 Each Drawing Machine shall be 59 inches in height at the set up location to be the same height as the Daily 4 Drawing Machines currently in rotation at the Texas Lottery.

4.2.7 Each Drawing Machine must provide an unobstructed view of the mixing and selection process. Each Drawing Machine must be able to randomly select balls both automatically and manually. All mixing and selection of balls must occur in full view of the drawing team and viewing public. The balls must be completely visible at all times to the public and the drawing team throughout the broadcast of the ball drop, mix, selection, and delivery process.

4.2.8 Each Drawing Machine shall have a selection process that allows for operation by remote control, and also from controls on the Drawing Machine itself with automatic, semi-automatic, and interactive and/or manual selection capabilities. The control panel on each Drawing Machine shall have the capability to allow the operator to set the parameters for the game. The remote control shall have a “Reset” button that is covered and/or protected and distinguishable from the rest of the buttons on the remote control. Each Drawing Machine must be designed in such a manner that the on-air talent will have the ability to initiate the automatic, semi-automatic, or interactive (manual) game modes, and controls for the Drawing Machine must be able to be operated out of sight of television cameras.

The cables for the remote control must be no less than 50 feet in length.

4.2.9 Each Drawing Machine must have the ability to select from one of the three modes of operation for delivering and mixing the balls in the mixing chamber: (i) an automatic selection mode (one button operation) that will involve the start of the delivery (dropping the balls)—the process would then mix and select the balls automatically at timed intervals; (ii) a semi-automatic selection mode where the drawing official selects start (which drops and mixes the balls), or the drawing official selects drop (which drops the balls) and then selects mix (which mixes the balls) and pushes select (and the balls are selected at a timed interval); and, (iii) an interactive (manual) selection mode where, at the command of the drawing official, the balls are dropped, mixed and manually selected with the lever.

4.2.10 Each Drawing Machine shall be designed so that the average time for a ball to be drawn is one (1) second or less.

4.2.11 Each Drawing Machine shall allow for movement to and from a storage location to the Texas Lottery Drawing Studio floor and must have recessed handles on one or both sides.

The Drawing Machines must be mounted on swivel casters/transport wheels, and must be three (3) inches in diameter, with foot-operated locking capability. Casters must be heavy duty and capable of easy movement over carpeted areas.

4.2.12 The Drawing Machines must be level.

4.2.13 Each Drawing Machine shall come with a removable game logo sign that matches existing Daily 4 logo. The cost of the signs shall be included in the base price of the Drawing Machines to be provided by the Bidder. The dimension of the logo sign is 9" tall by 17" wide. Refer to Attachment I for a picture of the logo sign.

4.2.14 The Drawing Machines shall have transport cases or custom crates with a ramp to allow for the movement to another location or shipment to and from the manufacturer. (see Section 4.9 )

4.2.15 Each Drawing Machine must meet or exceed Underwriters Laboratories (U/L) specifications. The Drawing Machines must operate on at least 110 volt, 60 Hz, AC current and have the capability to be operated by a backup generator in the event that normal power is not available.

4.2.16 Each Drawing Machine must come equipped with power cords with a minimum of 25 feet and rated for 125 volts and have 20 amp three (3) prong twist lock male ends. For each drawing machine, one (1) additional regular power cord equipped with a three (3) prong flat-blade male end with the same electrical specifications is also required to be supplied. .

4.2.17 The design of each Drawing Machine must assure the completely random selection of official numbers drawn and that the Drawing Machine is tamper-proof. Bidders must provide a design of the Drawing Machine proposed.

4.2.18 Bidders shall identify any items not specified by the Lottery which are necessary for the operation of the Drawing Machines. The cost of any such items shall be included in the base price to be provided by the Bidder.

4.2.19 The Successful Bidder shall provide a water-resistant cover for each Drawing Machine.

The cover must protect the entire top portion of the drawing machine to include the mixing chamber, holding tubes, display receptacle tray and the control panel. The cost of any cover shall be included in the base price of the equipment to be provided by the Bidder.

4.2.20 The Successful Bidder shall provide digital photos via email of the drawing machine build; from the onset of the build through completion and final crating. The digital photos must be sent to the drawings section designee(s) on a weekly basis or upon completion of each building phase and as requested by TDLR.

4.3 Ball Sets

4.3.1 The Successful Bidder shall be required to provide forty (40) Daily 4 Ball Sets that meet the specifications listed in this Section 4.3 of the IFB. The Bidder shall indicate how its proposed Ball Sets meet or exceed the established specifications. All balls shall be designed to prevent the deterioration of the numbers on the surface of the balls.

4.3.2 The balls shall be standard ping-pong style balls and will be imprinted a minimum of six

(6) times.

4.3.3 Each Ball Set shall consist of ten (10) balls numbered zero (0) through nine (9). The color of the balls shall be white. The font of the numbers on each ball must be no smaller than ¾ inches. The color for the numbers must be black. Each of the numbers on each ball must also be underscored with its alpha equivalent, i.e., spelling out the number zero, one, two, etc. The font for the alpha equivalent must be 1/8 inches. The color for the alpha equivalent must be black. Each ball will be labeled with a security code which is the number of its corresponding set. The security code shall be 1/8 inch in font size. The color of the security code shall be black and the security code shall be imprinted on each ball of each ball set. TDLR will provide the security code designations after the award of the bid.

1 2 3 4 5 6 7 8 9

ZERO ONE TWO THREE FOUR FIVE SIX SEVEN EIGHT NINE

4.3.4 The Texas Lottery Program requires the following display pattern for the balls in each set:

The number must appear on each ball six (6) times as follows: four (4) times around the equator and once on each axis: four (4) times around the equator (the pattern being, # right side up, # upside down, # right side up, # upside down); one (1) time on each axis pole (the pattern being, # right side up, # upside down); with this pattern the #’s opposite each other will show to be the same on each side.

4.3.5 Each ball shall be coated with a smooth non-reflective clear finish that will enhance the display of the ball and reduce any glare or…