FINAL Evaluation Services of Lottery Games~1.docx

December 4, 2015

REQUEST FOR BIDS

FOR:

Bid #16-37 Evaluation Services of Lottery Games

GENERAL:

· The Massachusetts State Lottery Commission (“MSLC” or “Lottery”) is requesting bids through the Massachusetts CommBuys system.

· Submission of a bid in response to this request is confirmation of acceptance of and agreement to comply with all specifications listed herein.

PURPOSE OF PROCUREMENT:

· The MSLC intends to contract for Evaluation Services of Lottery Games. The purpose of this procurement is to contract with a bidder who has the ability to provide an overview, evaluation and security analysis of the Lottery equipment and procedures for the Numbers Game, Mass Cash, and Megabucks Doubler drawings. The work performed under this contract would be conducted to insure that the games mentioned above are fair to all participants and that the integrity of the Lottery is maintained.

ACQUISITION METHOD:

· Outright purchase.

ANTICIPATED EXPENDITURE:

· The expenditure associated with this procurement is to be determined.

· The MSLC makes no guarantee that any commodities or services will be purchased from this bid.

BIDDING INSTRUCTIONS/INFORMATION:

· Bids submitted in response to this Request are due by Monday, December 14, 2015 at 3:00 P.M.

· PLEASE NOTE: Bids are to be submitted electronically via the Massachusetts CommBuys system – www.commbuys.com

· Any inquiry related to this Request must be emailed to Mary Clover OBrien, Procurement Coordinator, at mcobrien@masslottery.com and Kathy Chipman, Accounts Payable Supervisor, at kchipman@masslottery.com

· Please note that all bidders are required to direct their inquiries regarding this engagement to Ms. OBrien and/or Ms. Chipman only. Communications as to this request with any other Lottery employee or employee of the Massachusetts State Treasurer and Receiver General will result in automatic disqualification.

· The Lottery will award the contract based on an evaluation of responses to the Specification Requirements set forth below.

SPECIFICATION REQUIREMENTS:

1. Cost:

Pricing must be entered into the Massachusetts CommBuys system – www.commbuys.com. Please submit a cost sheet as an attachment, which includes a list of all services and pricing applicable to this bid. Additional information may also be submitted as additional attachments with your electronic bid in the CommBuys system.

2. Contract Requirements

To be eligible for contract award, a Vendor must meet the following qualifications:

a) Vendors must have been in a business similar to that described in this bid for a minimum of three (3) years and have the demonstrated experience and capacity to handle the requirements herein.

b) Vendor must agree to the terms and conditions contained within the Commonwealth Terms and Conditions attached within CommBuys.

c) Vendor must comply with all Federal, State and local rules and regulations as they apply to the work to be performed under this bid.

d) Vendor must provide a minimum of three (3) references from the past three (3) years for which work has been performed similar in scope and size to that specified in this bid.

e) Vendor must provide, if applicable, a detailed description of information regarding any company bankruptcy proceedings, criminal investigations, charges filed against the company, directors or managers, any mergers, acquisitions, etc., and any name changes within the last five (5) years.

The MSLC reserves the right to obtain, from sources other than the Vendor, information concerning a Vendor, the Vendor's capabilities and the Vendor's performance under other contracts which the MSLC deems pertinent to this bid and to consider such information in evaluating the Vendor's bid.

3. Performance Specifications:

a. Scope:

The Lottery is seeking a vendor that will provide an evaluation and security analysis of the Lottery equipment and procedures for the Numbers Game, Mass Cash, and Megabucks Doubler either at a designated drawing studio or at other remote locations throughout the state. The purpose of these analyses is to insure that the games drawings are fair to all participants and that the integrity of the Lottery is maintained.

b. Drawing Procedures:

The Vendor is expected to fully understand the Lottery’s written procedures for the drawing of the winning numbers and shall review these procedures in order to identify any discrepancies, inconsistencies, and suggestions for improvement. The Vendor shall make periodic unannounced visits to the drawing studio or remote drawing locations to observe the actual pre-draw and drawing procedures. The Vendor’s choice of the drawing shall be arbitrary unless the Lottery has specific questions or concerns regarding a particular game. The Vendor prepare a written response of their findings, as well as a list of questions which might arise, upon completion of their independent review and unannounced visits. The MSLC will provide the Vendor with all the pertinent information regarding the equipment and a copy of the drawing procedures after a contract has been awarded and finalized.

c. Previously Drawn Numbers:

The Vendor shall conduct an examination of the numbers drawn in the most recent one year period for the Numbers Game, Mass Cash, and Megabucks Doubler and identify additional experiments that should be conducted to determine whether there are any unusual occurrences or patterns in the numbers drawn.

For the Numbers Game, the Vendor shall include, to the extent possible, consideration of both the numbers drawn and the particular wheels used for each number drawn (the selected four out of the fifteen available).

For the Mass Cash and Megabucks Doubler games, the Vendor will review the numbers drawn and cite any obvious and/or unusual trends or anomalies observed. This effort will not include any statistical analysis of the data, but will be mainly a cursory review of the data from an independent view (i.e., a "fresh set of eyes"). The Vendor will recommend any additional tests or analyses that should be conducted to determine the extent or significance of any obvious trends or anomalies that are observed. The Vendor shall make recommendations for further efforts that may be necessary.

Note: The MSLC understands that any review of past events will often reveal trends in numbers that appear unlikely, but could simply be the result of the random occurrence of low probability events. When these trends are identified, the Vendor is expected to make recommendations for further evaluation to be conducted to determine more reliably whether the trend is in fact an occurrence of a low probability event, or if there is some procedural or mechanical reason for the trend. The MSLC will provide the Vendor with the appropriate drawing number data in electronic (computer readable) form for analyses. The MSLC and the Vendor will mutually agree on the exact form in which the data will be organized and provided.

d. Unannounced Visits:

The Vendor shall conduct unannounced visits to the drawing studio or remote drawing locations in order to observe the drawings of the various games and to confirm that the Lottery’s drawing procedures are being followed. The Vendor shall also offer recommendations for improvements to both the operational and written procedures if necessary.

The Vendor shall conduct an average of three (3) separate unannounced visits per year to the drawing studio or remote drawing locations where the drawings are conducted. The Lottery will expect a total of nine (9) visits throughout the duration of this contract. After each visit the vendor will report its findings in the form of a brief letter in which the Vendor will address how closely the established procedures are being followed. The Vendor should also bring to the attention of the MSLC any modifications in the procedures that might improve the overall security and integrity of the drawing operations. The MSLC will provide the Vendor with access to the drawing supervisor or designee in order to conduct the unannounced visits at the drawing studio or remote drawing locations to observe the drawings.

e. Ball Set Examination and Testing:

The Vendor shall conduct an examination for uniformity of all three ball sets used to draw the winning numbers for the above referenced games. The Vendor will include a visual examination of each ball in the set by at least two persons, noting the overall appearance, evidence of damage, wear, or foreign matter adhering to any of the balls in the set. The Vendor will then weigh each ball in the set three different times and average the weights. These values will then be compared to the specifications for the weight of each ball.

A drop test will also be conducted on each ball in the set to determine if any of the balls exhibit inconsistent behavior. In this test, each ball in the set will be dropped three times from a specified height and the bounce heights averaged. The Vendor will then compare the data from this test to the weight data to determine if there is any correlation between ball weight and bounce height.

Additionally, density tests shall be performed as part of the uniformity examination. On a mutually agreeable day, the MSLC Compliance Department or their designee shall deliver the selected ball set to the Vendor’s facility for the examination and testing. The examination and testing shall take no longer than two (2) business days. Upon completion of the work, the MSLC Compliance Department will provide return delivery for the ball set.

f. Drawing Machine Game Wheel Balancing Procedure:

The Vendor shall provide an overview, procedure analysis and security evaluation of the procedures used by the Lottery’s current drawing equipment maintenance vendor.

The Lottery utilizes the services of a third party vendor for maintenance of the drawing machine game wheels used in the Numbers Game, Mass Cash and Megabucks Doubler drawings. These services include, but are not limited to: 1) Monthly servicing of the 15 wheels which include checking location, attachment, tightness, bearing condition, cleaning, re-sealing, etc.; 2) Semi-annual servicing of 15 wheels which include the services outlined above as well as parts replacement and dynamic balancing of the total system as a unit; and 3) Monthly servicing of the game balls which include weighing, cleaning, lubrication, resiliency testing, etc.

g. Other Tests/Examinations:

The Vendor shall include any other tests and/or examinations which the Vendor feels necessary to provide the level of security, integrity and fairness for all participants in any of the Lottery games.

h. Confidentiality:

All materials and information provided to the Vendor by the Lottery shall be regarded as confidential information in accordance with Federal and State law, and ethical standards. The contractor must take all necessary steps to safeguard the confidentiality of such materials or information. Furthermore, there shall be no contact between any other Lottery vendor concerning the work performed under this contract unless specifically authorized by a designated Lottery employee.

i. Conflict of Interest:

The Vendor must provide a list of businesses with whom the Vendor has had or currently has a contractual relationship, involving any aspect of Instant Ticket Games within the past three (3) years. The successful Vendor must maintain an unbiased, objective and independent position.

The Vendor shall provide assurance that it presently has no interest and shall not acquire any interest, either directly or indirectly, which will conflict in any manner or degree with the performance of its services hereunder. The Vendor shall also provide assurances that no person having any such known interests shall be employed during the performance of this contract.

j. Personnel:

Vendor must specify employees who are to be assigned to this contract and provide background/resume information on these individuals and experience related to the type of work specified in this bid.

Please note that the Lottery will require all assigned employees to submit consent for a Criminal Offender Record Information “CORI” check.

k. Pending Litigation

Details of any pertinent judgment, criminal conviction, investigation or litigation pending against the Vendor or any of its officers, directors, employees, agents, or subcontractors of which the bidder has knowledge or a statement that there are none. The Lottery reserves the right to reject a response based on this information.

4. Duration of Contract:

The duration of this contract will begin on January 1, 2016, or upon contract finalization, and will go through June 30, 2018.

The contract duration will be broken down as follows:

BID SUBMISSION:

1. A total contract price for each contract duration period should be entered into the Massachusetts CommBuys system – www.commbuys.com.

2. A cost sheet should be submitted as an attachment to your bid.

3. Vendors are required to submit the following additional information as attachments with your electronic bid in the CommBuys system:

· Personnel documentation – names, background/resumes

· Overview of evaluation procedures

· A sample report

· Commonwealth Terms & Conditions

· Documentation of references. See Vendor Contract Requirement letter “d”.

· If applicable, documentation detailing legal company matters. See Vendor Contract Requirement letter “e”.

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