ESBD_510884_1780330451550_Lottery Operations and Services RFP Amendment 2.pdf
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- Solicitation number
- 452-2026-0007
- Issued by
- Travis County, Austin City, Texas
About this file
This document is Amendment No. 2 to the Request for Proposals (RFP No. 452-2026-0007) issued by the Texas Department of Licensing and Regulation (TDLR) for Lottery Operations and Services. The amendment modifies Section 5.5.2 of the RFP regarding subcontracting requirements for proposers who intend to subcontract any portion of the contract work. The RFP seeks a single comprehensive lottery operator for the Texas Lottery Program through August 31, 2038, with a mandatory pre-proposal conference held on May 11, 2026, and a proposal submission deadline of 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 includes an approximately twenty-month conversion and implementation period to achieve full system operability by September 1, 2028.
Proposers intending to subcontract must demonstrate good faith efforts through one of three methods, with the Solicitation Method requiring proposers to divide work into reasonable lots, notify at least two Historically Underutilized Businesses (HUBs) of subcontracting opportunities at least seven business days before proposal submission, provide detailed scope and contract information to potential HUB subcontractors, and submit documentation of compliance with the HUB subcontracting plan. If a non-HUB business is selected over a bidding HUB, the proposer must provide written justification. Failure to comply with mandatory subcontracting requirements will result in proposal disqualification. The successful proposer must submit a proposal surety bond of $150,000, a protest/litigation bond of $750,000, and subsequently a performance bond of $20,000,000, along with comprehensive insurance coverage including $2,000,000 commercial general liability, $10,000,000 professional liability, $10,000,000 crime insurance, and $10,000,000 cyber liability. The contract includes liquidated damages provisions ranging from $200 per minute for system degradation to $100,000 per incident for unauthorized media releases, with the potential for renewal for one additional three-year period at mutually agreed-upon rates.
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Text version
REQUEST FOR PROPOSALS
FOR
LOTTERY OPERATIONS AND SERVICES
RFP No. 452-2026-0007
AMENDMENTS TO THE RFP
The following has been adopted by Amendment to the RFP, as permitted by Section 2.18 of the RFP.
The following sections have either been replaced in entirety or attachments added or deleted.
Amendment No. 2
5.5.2 Proposer Intends to Subcontract
Proposers who intend to subcontract any portion of the Contract shall indicate in the HSP Subcontracting Plan form that they intend to subcontract, and shall perform the one of the three good faith effort methods as follows:
(1) Solicitation Method. To complete the solicitation method, the Proposer shall comply with all of following statutory requirements:
(A) The Proposer shall divide the work into reasonable lots or portions consistent with prudent industry practices.
(B) Reserved.
(C) The Proposer shall notify, in writing, at least two HUBs of the subcontracting opportunities that the Proposer intends to subcontract. The Proposer shall provide the notice described in this subclause to two 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 Proposer shall provide the notices required by subparagraphs (B) and (C) of this paragraph at least seven Business Days prior to submission of the response.
Neither the day on which the notice is sent nor the day on which the Proposer submits its response count as one of the required seven Business Days. A state agency may determine that circumstances require a different time period than seven Business Days but shall notify potential vendors of the requirement and document the justification in the contract file.
(F) The Proposer 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 Proposer state agency requests it, selects a non-HUB business to perform a subcontract instead of a HUB that bid for the same subcontract work, the Proposer shall provide a written justification for its selection. A Proposer is not required to select a small business if it determines in good faith that another subcontractor is more suitable.
(H) The Proposer shall retain documentation of its compliance with each aspect of the solicitation method and submit it to the state agency upon request.
PROPOSERS WHO INTEND TO SUBCONTRACT, AT A MINIMUM, SHALL
USE ONE OF THE METHODS OUTLINED ABOVE. FAILURE TO DO SO
WILL RESULT IN DISQUALIFICATION.
| REQUEST FOR PROPOSALS |
| FOR |
| LOTTERY OPERATIONS AND SERVICES |
| RFP No. 452-2026-0007 |
| 5.5.2 Proposer Intends to Subcontract |
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