ESBD_510884_1779223067498_SP QA -Lottery Operations and Services 2026 Round 2 - final.pdf
PDF 240 KB Posted
- Solicitation number
- 452-2026-0007
- Issued by
- Travis County, Austin City, Texas
About this file
This document is a responses-to-proposers' subcontracting plan questions issued by the Texas Department of Licensing and Regulation (TDLR) for the Lottery Operations and Services Request for Proposals #452-2026-0007. The RFP, issued April 28, 2026, seeks a single comprehensive vendor to operate the Texas Lottery Program through August 31, 2038, encompassing gaming systems, sales and marketing, warehouse and distribution, game management, claims and validation, mobile applications, retailer management systems, call center support, and conversion/implementation services. The mandatory pre-proposal conference was held May 11, 2026, with letters of intent and non-disclosure agreements due May 18, 2026. Written questions are accepted in two rounds with responses provided by June 15 and July 10, 2026, and the proposal submission deadline is July 27, 2026. Oral presentations and site visits are scheduled for October 7-23, 2026, with the Apparent Successful Proposer to be announced on or before November 2, 2026. The contract term extends approximately twelve years with an option to renew for one additional three-year period at mutually agreed upon rates.
Proposers must submit a proposal surety bond of $150,000 and a protest/litigation bond of $750,000 with technical proposals, followed by a performance bond of $20,000,000 within fifteen days of contract execution. The successful proposer will receive no compensation during the approximately twenty-month conversion period and must withhold six weekly payments during the final contract year, with possible additional eight-week withholding if transition to a replacement vendor fails. Historically Underutilized Business (HUB) participation, including the newly adopted Veteran Heroes United in Business (VetHUB) program rules effective May 12, 2026, is mandatory with required subcontracting plans. The TDLR amended the RFP on May 8, 2026, to incorporate the revised VetHUB rules at 34 TAC Sections 281-298, and proposers must submit good faith effort documentation for each identified subcontracting opportunity, including search results from the Centralized Master Bidders List demonstrating efforts to identify certified VetHUB vendors. Comprehensive sanctions and remedies apply to performance failures, with liquidated damages ranging from $200 per minute for system degradation to $100,000 per incident for unauthorized media releases and daily sanctions up to $100,000 for system unavailability. Pricing must be submitted on required cost proposal forms with costs remaining firm throughout the contract term.
View the file
Other files
On GovTribe
Work with this file
- Download the original file
- Contacts named in this file
- Similar government files
- Ask GovTribe AI about this file
Text version
TEXAS DEPARTMENT OF LICENSING AND
REGULATION
REQUEST FOR PROPOSALS FOR
LOTTERY OPERATIONS AND SERVICES
#452-2026-0007
RESPONSES TO PROPOSERS’
SUBCONTRACTING PLAN QUESTIONS
May 19, 2026
RESPONSES FOR PROPOSALS
FOR
LOTTERY OPERATIONS AND SERVICES
SUBCONTRACTING PLAN QUESTIONS
Note to All Prospective Proposers:
The following responses include Subcontracting Plan questions submitted in writing prior to the deadline for Proposals. This document will be updated as necessary to respond to additional questions.
Proposers must review Part 5 of the RFP along with this document to ensure a complete understanding of the Subcontracting Plan requirements.
1. Reference: Historically Underutilized Business (HUB) Participation, Part 5, Pg., 150
Question: The Texas Comptroller of Public Accounts has adopted amended VetHUB program rules at 34 TAC Sections 281–298, including substantive revisions to 34 TAC 20.285 and a new subcontracting plan form effective May 12, 2026. The bulletin states that agencies may, but are not required to, amend existing solicitations closing on or after May 12 to incorporate the new subcontracting plan.
Will the Lottery please clarify whether TDLR intends to incorporate the new VetHUB subcontracting plan and revised Section 20.285 requirements for this solicitation, or respondents should continue to comply with the subcontracting plan requirements currently included in the solicitation?
Response: The Lottery Operations and Services RFP was amended on May 8, 2026, to incorporate the adopted Texas Comptroller of Public Accounts Veteran Heroes United in Business (VetHUB) program rules at 34 Texas Administrative Code (TAC) Sections 281-298.
2. Reference: Historically Underutilized Business (HUB) Participation, Part 5, Pg 150, Question: Under the amended VetHUB rules at 34 TAC §20.285.2(b)(1), agencies are instructed that:
“If no certified VetHUBs can be identified to fulfill subcontracting opportunities — rendering the good faith effort ineffective — the agency should document that and not require a subcon-tracting plan.”
Could the TDLR please clarify the expected method and level of documentation required to demonstrate that no certified VetHUB vendors are available for a specific subcontracting opportunity?
For example, for the shipping and distribution of Scratch Ticket products, if it is determined that no certified VetHUB vendors are capable of meeting the contractual requirements for secure, high-volume lottery ticket transportation and logistics services, how should we document that determination to support not requiring the Good Faith Effort?
Response: Currently, the adopted rule 34 TAC §20.285.2(b)(1) regarding the VetHUB program does not state “If no certified VetHUBs can be identified to fulfill subcontracting opportunities — rendering the good faith effort ineffective — the agency should document that and not require a subcontracting plan.”
Proposers who identified subcontracting opportunity descriptions in Section 4: Respondent’s Subcontracting Opportunities of the revised Subcontracting Forms, shall submit a copy of Section 5: Subcontracting Plan – Good Faith Effort form for each identified subcontracting opportunity. For opportunities in which no certified VetHUB subcontractors are identified, Proposers shall also submit copies of the “Search For Vendors” results page from the CMBL demonstrating that no certified VetHUB vendors exist for that particular subcontracting opportunity, along with the applicable Subcontracting Plan.
There is no waiver of the good faith effort requirement based on the capability of VetHUB vendors. Proposers are expected to make a good faith effort to identify VetHUB vendors for subcontracting opportunities as outlined in 34 TAC §20.285.
File details come from the government source that posted it. Updated .