ESBD_510884_1778247665793_Lottery Operations and Services Pre-Proposal Conference Info.pdf

This document is a Pre-Proposal Conference notification issued by the Texas Department of Licensing and Regulation (TDLR) for the Lottery Operations and Services Request for Proposals (RFP No. 452-2026-0007). The conference will be held on May 11, 2026, at 9:00 a.m. via Microsoft Teams and is mandatory for vendors seeking to submit proposals for comprehensive lottery operations and services. The RFP seeks a single vendor to serve as the Lottery Operator for the Texas Lottery Program through August 31, 2038, encompassing the Lottery Gaming System, sales and marketing services, warehouse and distribution operations, draw games and scratch ticket management, mobile applications, retailer management systems, claims and validation services, and related infrastructure. Key project milestones include submission of Letters of Intent and Non-Disclosure Agreements by May 18, 2026; two rounds of written questions with responses due June 15 and July 10, 2026; proposal submission deadline of July 27, 2026; oral presentations and site visits scheduled for October 7-23, 2026; and announcement of the Apparent Successful Proposer on or before November 2, 2026. The successful vendor must complete approximately twenty months of conversion and implementation to achieve full system operability by September 1, 2028, with the contract term extending through August 31, 2038, and a renewal option for one additional three-year period at mutually agreed upon rates.

Vendors must register for the pre-proposal conference through the provided Microsoft Teams link to create an official attendance record. Historically Underutilized Business (HUB) participation is mandatory with required subcontracting plans, and mandatory HUB Subcontracting Plan workshops are scheduled for May 18-29 and July 1, 2026. The successful proposer must submit a proposal surety bond of $150,000 and a protest/litigation bond of $750,000 with the technical proposal, followed by a performance bond of $20,000,000 within fifteen days of contract execution. Comprehensive insurance requirements include commercial general liability ($2,000,000 per occurrence), professional liability ($10,000,000 per occurrence), crime insurance ($10,000,000), cyber liability ($10,000,000 per occurrence), and umbrella/excess liability ($10,000,000). The successful proposer will receive no compensation during the twenty-month conversion period and must withhold six weekly payments during the final contract year as hold-back, with additional eight-week withholding possible if transition to a replacement vendor fails. A comprehensive sanctions and remedies schedule applies to performance failures with liquidated damages ranging from $200 per minute for system degradation to $100,000 per incident for unauthorized media releases. Based on fiscal year 2025 performance, the Texas Lottery generated $7.9 billion in sales, approximately 81% from scratch tickets and 19% from draw games.