Final_RFP_758_2600000435_2_SO_FORM.PDF

Document ID: RFP 758 2600000435 Page: 1

Commonwealth of Kentucky

SOLICITATION MODIFICATION

Modification: Yes Version #: 2

TITLE: Kentucky Cigarette Tax Stamps, Fulfillment and Distribution

Date Issued:

05/26/2026 Record Date:

05/26/2026

Solicitation Closes Date:

06/11/2026 Time:

15:30

Solicitation No:

RFP 758 2600000435

Reason for Modification

5-26-2026 Addendum 1 to post responses to vendors' questions. Please note that Attachment B Cost Proposal Form V2 has been uploaded.

Online Bidding Prohibited: No

For Information Call:

Stephanie Durr 502-564-6521

Bid Receiving Location:

Bid Receiving

See Terms & Conditions for Bid Submission Instructions

Other KY

Vendor Customer Number:

Vendor Name:

Phone Number:

Fax Number:

Email Address:

Ordering

Address:

City, State, Zip:

Contact Name:

Contact Email:

Contact Phone Number:

Payment

Address:

City, State, Zip:

Contact Name:

Contact Email:

Contact Phone Number:

Ownership Type

__ Sole Proprietorship __ Partnership __ Corporation __ Other_________________________

SIGNATURE OF AUTHORIZED AGENT IS REQUIRED UNLESS RESPONSE

IS SUBMITTED ELECTRONICALLY. FAILURE TO SIGN SHALL RENDER

THE BID INVALID.

Signature X_________________________________________ FEIN#____________________ Date____________

All offers subject to all terms and conditions contained in this solicitation.

Document ID: RFP 758 2600000435 Page: 2

Line Items

Commodity Group: Default Commodity Group

Line CL Description Quantity UOM Unit Cost Line Total or Contract Amnt

1 Heat Transfer Cigarette Tax Stamp 0.00000 EA

Comm Code Comm Description Manufacturer Model # Manuf Part #

25520 Cigarette Stamp, Numbered

Extended Description Kentucky Cigarette Tax Stamps, Fulfillment and Distribution

Shipping Information Various Shipping

See Extended Description

Various KY

Billing Information Finance - Department of Revenue DOR.Invoices@ky.gov 501 High Street

Frankfort KY 40601

Document ID: RFP 758 2600000435 Page: 3

Submission Checklist

The following items will be required to be submitted with bid:

Item

5-26-2026 - PLEASE SEE ATTACHMENT E ADDENDUM #1

ATTACHMENT A

Request for Proposal (RFP)

For Kentucky Cigarette Tax Stamps, Fulfillment and Distribution

RFP 758 2600000435

Release Date: May 13, 2026 CLOSING DATE AND TIME June 11, 2026 at 3:30pm ET

Issued by

The Finance and Administration Cabinet

Commonwealth Buyer:

Stephanie Durr

COMMONWEALTH OF KENTUCKY

FINANCE AND ADMINISTRATION CABINET

Office of Procurement Services

200 Mero Street, 5th Floor Frankfort, KY 40622

(502) 564-6521 Stephanie.durr@ky.gov

TABLE OF CONTENTS

Proposal Submission Checklist Section 1 – Summary Section 2 – Introduction Section 3 – Scope of Work Section 4 – Procurement Requirements and Instructions Section 5 – Proposal Submission Section 6 – Proposal Evaluation Section 7 – Negotiations Section 8 – Contract Requirements Section 9 – Standard Terms and Conditions Section 10 – Attachments

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2600000435 Final Kentucky Cigarette Tax Stamps, Fulfillment and Distribution

Total Pages: 31 mailto:Stephanie.durr@ky.gov

PROPOSAL SUBMISSION CHECKLIST

The vendor MUST include the following with the proposal submission.

If the items highlighted below are not submitted with the proposal submission, the Commonwealth MUST deem the proposal non-responsive and SHALL NOT consider for award.

All other items MUST be submitted prior to award.

o *PROPOSED TECHNICAL SOLUTION o *PROPOSED COST SOLUTION o TRANSMITTAL LETTER [see Section 6.7(A)] o REVENUE FORM 10A100 KENTUCKY TAX REGISTRATION APPLICATION

IF APPLICABLE (see Section 6.7 (C)], o CERTIFICATE OF AUTHORITY- REGISTRATION WITH SECRETARY OF STATE BY A FOREIGN ENTITY IF APPLICABLE [see Section 6.7 (D)] o REQUIRED ANNUAL AFFIDAVIT AND OTHER AFFIDAVIT(S) https://finance.ky.gov/office-of-the-secretary/FinanceForms/Annual%20Required %20Affidavit%20for%20Bidders%20Offerors%20and%20Contractors.pdf

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Distribution

Total Pages: 31 https://finance.ky.gov/office-of-the-secretary/FinanceForms/Annual%20Required%20Affidavit%20for%20Bidders%20Offerors%20and%20Contractors.pdf https://finance.ky.gov/office-of-the-secretary/FinanceForms/Annual%20Required%20Affidavit%20for%20Bidders%20Offerors%20and%20Contractors.pdf

SECTION 1 - RFP SUMMARY

1.1 Estimated Schedule of RFP Activities

The following table presents the anticipated schedule for major activities associated with the RFP distribution, proposal submission, proposal evaluation process, and contract award.

The Commonwealth reserves the right at its sole discretion to change the Schedule of Activities, including the associated dates and times.

Anticipated Schedule of Activities

Release of RFP

May 13, 2026

Vendors’ Written Questions due by 12:00 PM ET

(SUBMIT QUESTIONS ON ATTACHMENT D- VENDORS’

QUESTION FORM)

May 21, 2026

Commonwealth’s Response to Vendors’ Written Questions May 25, 2026

Proposals due by 3:30 PM ET

June 11, 2026

1.2 Issuing Office

The Commonwealth of Kentucky, Finance and Administration Cabinet, Office of Procurement Services, is issuing this RFP on behalf of the Department of Revenue. The Finance and Administration Cabinet is the only office authorized to change, modify, amend, alter, or clarify the specifications, terms and conditions of this RFP.

A contract, based on this RFP, may or may not be awarded. Any contract award from this RFP is invalid until properly approved and executed by the Finance and Administration Cabinet.

1.3 Agencies to Be Served

This contract shall be for use by the DEPARTMENT OF REVENUE. No shipments shall be made except upon receipt by vendor of an official delivery order from the using agency.

Extending the Contract Use to Other Agencies The Office of Procurement Services reserves the right, with the consent of the vendor, to offer the Master Agreement resulting from this solicitation to other state agencies requiring the product(s) or service(s).

SECTION 2 - INTRODUCTION –

2.1 Purpose

The purpose of this Request for Proposal (RFP) is to solicit proposals for competitive negotiations pursuant to 200 KAR 5:307. The Kentucky Department of Revenue (DOR) issues this Request For Proposal (RFP) to solicit proposals and proposed pricing from

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2600000435 Final Kentucky Cigarette Tax Stamps, Fulfillment and Distribution qualified vendors for Printing, Manufacturing and Related Services to produce Counterfeit- Resistant Cigarette Excise Stamps for the Commonwealth of Kentucky, including the provision of heat transfer cigarette tax stamps as described in this Section and in this RFP.

DOR determines the date of issue, design, size, color, denomination and quantity of stamps manufactured. +Stamps must be manufactured so that they are easily and securely attached to an individual package of cigarettes and permit identification of the person that affixed the stamp to the particular package of cigarettes by means of a consecutive number system and other overt and/or covert features on the stamp. A strong consideration in the selection of Respondent’s proposals for the stamps and related services will be the maximum protection offered to the State against illegal reproduction or counterfeiting.

In addition, the proposal must include inventory warehousing, fulfillment, and shipping services of approved orders of the stamps produced to cigarette wholesalers licensed by

DOR.

2.2 Background

DOR currently uses heat transfer Cigarette tax stamps to document the cigarette excise tax and Master Settlement Agreement (MSA) enforcement. DOR also uses third party fulfillment services to facilitate the orders, payment, and distribution of cigarette stamps.

SECTION 3 – SCOPE OF WORK

3.1 Scope of Work/Technical Requirements

Respondents of this RFP must provide stamps that comply and meet the following specifications and quantities for all items:

a) Stamps must be heat applied consisting of a minimum of four (4) impressions or layers, including safety tint lettering; must be produced by the Gravure process or other industry standard; and must be suitable for high speed, stamping machine or heat iron and capable of application with heat to the receiving surface such as cellophane, paper, etc. Stamps must be compatible with standard stamping equipment currently in operation in the State as determined by DOR. Wholesalers licensed by DOR are currently using equipment manufactured by Meyercord Revenue Inc., United Silicone Tax Stamp, and Redstamp Inc.

b) Stamps must be printed on unique, safety tinted, mill controlled, colored paper furnished by the Respondents.

c) Base paper must contain fibers, which under ordinary daylight are not distinguishable from the remainder of the fibers in the base paper, but shall become brightly fluorescent when exposed to the rays of ultraviolet light. This fluorescence must be a permanent effect whenever tests are made and shall not be fugitive.

d) All base paper stock must be processed with a special safety tint lettering, specified by DOR, and must be arranged and printed such that the safety tint lettering will be extremely difficult to reproduce photographically.

e) Safety tint lettering for machine and manually applied stamps must be so printed as to appear on the face of each stamp and must appear on the base paper between the stamps. The safety tint shall transfer with the machine and manually applied stamp, and the lettering extending beyond the edges of the stamp must also transfer with the stamp.

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2600000435 Final Kentucky Cigarette Tax Stamps, Fulfillment and

f) Stamps must contain not less than two (2) different distinctive colors. Halftones, shades, tints, or tones of a color or colors will not be acceptable or considered as separate and distinctive colors. Safety tint lettering shall not be considered as one of the stamp colors.

g) Each stamp must contain a substance or substances that allow field testing for security and authenticity.

h) The machine application stamps must measure approximately ½ inch x ½ inch.

i) Serially numbered stamps must be furnished as follows:

a. Each roll of 30,000 machine-applied stamps, fifteen (15) across and two thousand (2,000) down, must carry the same five (5) digit serial number.

b. Each stamp on each roll must have a unique five (5) digit individual stamp number sequential from 00001 through 30000.

c. The serial numbers must be centered on all stamps and must be sharp and easy to read.

d. The serial number must have a character field allotment of five (5) spaces. The serial number will always be a five (5) digit number running consecutively using all five (5) spaces. The numbering

e. system used shall be adaptable to adding an Alphabetic character within the five (5) spaces when necessary.

j) Each roll of base paper must have a blank continuing leader of at least 24 inches” in length on the leading edge of the roll, and a blank continuing tail of at least 12 inches” in length on the trailing end of the roll. The machine perforations along the side edges of the base paper and running the complete length of each roll shall be punched completely through the paper and be free of excess paper fragments.

k) Stamps must securely adhere and must remain legible. Adhesion must be sufficient to prevent the lifting up or peeling of the stamp using a sharp edge, a tacky product such as tape, or other method of removal once the stamp has adhered to the intended surface.

l) If shipment is necessary, a detailed listing of the serial numbers shall accompany each shipment, including the number of stamps for interface with Kentucky’s current stamp fulfillment vendor’s system to recognize the roll numbers and to ensure distribution to wholesalers in numerical and printed sequence.***

m) Each roll is to be packed in a securely sealed cardboard box. These cardboard boxes are to be consecutively and serially numbered.

n) The Respondent shall supply any additional packing materials to ensure safe delivery of stamps.

o) A label shall be affixed to the end of the cardboard box showing the serial number of the box and the quantity of stamps therein.

p) Stamps for mechanical application must be furnished in rolls consisting of a hard core and containing 30,000 stamps each. Each roll must be packed in a cardboard box, securely sealed and labeled, showing quantity, denomination, and serial number. Twenty-five (25) boxes must be packed in corrugated containers, securely sealed and labeled, showing quantity, denomination, colors, and serial numbers. Stamps must be packaged to prevent damage in transit. All prices shall be expressed as per unit of one thousand (M) (1,000). Spoiled rolls shall be identified as “NOT IN CIRCULATION”. The beginning and ending roll number shall be clearly indicated on the outside of the box of 20 stamp rolls. For example … “ROLL#1- ROLL#20”. A certified listing of rolls “not in circulation” shall be provided to DOR.

q) Default in Delivery. If Respondent refuses or fails to make timely deliveries of the cigarette tax stamps as specified in the RFP, proposal response and Contract, DOR may terminate the right of Respondent to proceed with deliveries of such parts as were delayed. In such event, DOR may purchase similar cigarette tax stamps, by contract or otherwise and the defaulting Respondent shall be liable to the State

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2600000435 Final Kentucky Cigarette Tax Stamps, Fulfillment and for any excess costs to the State; provided Respondent shall not be charged with any excess costs occasioned by the State by the purchase of cigarette tax stamps, in the open market or under other contract, when the delay of the Respondent in manufacturing and/or making deliveries is due to an event of force majeure. In submitting a response to this RFP, Respondent agrees that the measure of damages in the event of a default or breach by Successful Respondent may be difficult or impossible to calculate. To the extent that any delay or failure to make timely deliveries of the cigarette tax stamps is not due to force majeure and results in DOR being unable to fulfill its delivery obligation to third parties, DOR may require Respondents to pay, as liquidated damages and not as a penalty, no more than $500.00 per calendar day until such delay or failure is cured. DOR may impose but is not obligated to impose these liquidated damages in lieu of monetary damages available to DOR under the contract or any applicable law.

r) Supervision of Manufacturing Plant. DOR or DOR’s authorized agent or agents shall have access to all parts of the plant where the cigarette tax stamps are being manufactured at any and all times, and Respondent shall conform to such regulations as may be made by DOR to prevent the removal from the Respondent’s plant any stamps so manufactured, or any property or equipment that might provide a means of reproducing the design of the stamps being manufactured under any PO resulting from this RFP. The removal without order of any of the foregoing property or equipment shall constitute breach of contract by the Respondent and DOR may stop the manufacturing process and the Respondent shall be liable for any loss incurred in stamps printed prior to such improper removal. In the event such action becomes necessary, the State shall not be liable for any cost of materials or expenses of printing or manufacturing the stamps so manufactured prior to the time the manufacturing process is ordered stopped, and DOR may refuse to accept stamps manufactured prior to such act.

s) Respondents shall immediately notify DOR should the Respondent become aware of any stamp integrity issues which may impact the State of Kentucky. Such stamp integrity issues include, but are not limited to, the following: security breach at manufacturing plant or storage facilities, counterfeiting activities, stamp alterations/ modifications, or any misapplication of stamps at a wholesaler or distributor level.

t) Custody of Design, Drawing, Printing Plates, Inspection of Printing and Processing Stamp. During the manufacturing process and printing of the stamps, the Respondent shall have custody of specifications, photographs, negatives, positive impressions, drawings, dies, electroplates, printing stones, and all other property or equipment that may provide a means of reproducing, manufacturing or printing of the cigarette tax stamps selected by DOR. Also, DOR or DOR’s authorized agent or agents shall be permitted to observe the printing, manufacturing and processing of the stamps for delivery, and to inspect all finished stamps prior to sealing of boxes prepared for stamp deliveries. DOR shall have access to all defective stocks of stamps and the same shall be destroyed under its supervision.

u) All printing and manufacturing services under Contract, if any, resulting from this RFP must be performed strictly within the premises of the Respondents.

Subcontractor(s) may be used with the provision that the subcontractor(s) must be divulged in the Vendor’s Technical Proposal with a detailed explanation of the work that the subcontractor(s) will be performing. No assignment of the Contract, in whole or in part, may be made without prior written consent of DOR. DOR authorized agent or agents with proper credentials may act as inspectors during the process of manufacture and shall be accorded all privileges and assistance in carrying out this function.

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2600000435 Final Kentucky Cigarette Tax Stamps, Fulfillment and

v) Stones, Zincs, Plates, Etc. If applicable, stones, zincs, plates, etc., by whatever name used in connection with the production of stamps shall become the property of the State, and upon DOR’s written request all such items shall be turned over to DOR or destroyed at DOR’s option. When stones, zincs, plates, etc. are not in use, they shall be deposited by Respondents in a place of security acceptable to DOR.

When production on a specific order has been completed, Respondents will return stones, zincs, plates, etc. to the designated place of deposit acceptable to DOR.

Details regarding the preservation and security of stones, zincs, plates, etc., will be arranged between the Respondents, if a contract award is made under the terms of this RFP.

3.2 Fulfillment and Shipping to Distributor:

Contractor must provide fulfillment and shipping services of approved orders to licensed wholesalers through a secure online portal used by the wholesalers to submit their stamp orders and make corresponding payments.

a. The software shall allow for Internet-based submission of cigarette tax stamp orders and associated payment. Parameters contained herein must be scalable.

b. System must allow for DOR personnel to place holds and override holds on stamp orders.

c. The system shall allow for, and track, purchases made on a deferred payment basis.

Licensees are only allowed to purchase on a deferred payment basis if approved by DOR staff and they have a valid surety on file.

d. Stamps must be delivered to all licensee sites either through ground or air transportation.

e. All shipments shall be insured.

f. System shall state the estimated time of delivery once the stamp order is approved by DOR.

g. Vendor shall provide an expedited shipping delivery option to the licensee at the licensee expense.

h. All stamps that are lost, stolen, or damaged, in transit shall be replaced by the vendor at no additional cost to DOR or licensee.

i. All stamps that are defective, lost, stolen, or damaged, in transit shall be replaced by the vendor in an expedited manner at no additional cost to DOR or the licensee.

j. All stamps that are defective shall be replaced by the vendor in an expedited manner at no additional cost to DOR or licensee.

k. Stamps must be shipped within (1) one business day of receipt of the order.

l. An order acknowledgement must be sent back to the DOR electronically, with the actual stamp numbers issued within (1) one business day of order being filed.

m. Information provided to DOR and the tobacco wholesaler:

1. Order Status

2. Order Number / ID

3. License Number

4. Stamp Roll ID’s

5. Date shipment was sent to tobacco wholesaler

6. Shipment method including tracking numbers

n. Shipping Addresses: Vendors must be able to ship orders anywhere within the United States.

o. Shipping Cost: Orders requesting next-day delivery will be billed to the wholesaler’s FedEx or UPS account. All other orders will be processed as a two (2)

- day delivery. All other tobacco stamp shipping costs will be the responsibility of the Contractor and included in the scope of this contract.

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2600000435 Final Kentucky Cigarette Tax Stamps, Fulfillment and

p. Processing Orders: Upon receiving approved orders, the Contractor’s personnel will provide fulfillment services to pick, pack, and ship tobacco stamps to the appropriate wholesaler. Orders should be shipped if submitted with the following timeframe:

1. Orders transmitted to the Contractor by 10:00 AM Eastern Time Zone will be processed and shipped on the same business day.

2. Orders transmitted to the Contractor after 10:00 AM Eastern Time Zone will be shipped on the next business day.

q. The Contractor shall submit for DOR approval its policies and procedures for tracking of stamps in transit as well as policies and procedures for the recovery of lost products.

r. Stamp Inventory Management: The Contractor will maintain an inventory of tax stamps at its secure facility. Typically, a two (2) to three (3) month inventory of stamps should be retained for fulfillment. Contractor will fulfill DOR approved orders out of that inventory and maintain records of all stamp production and fulfillment, which will be made available for review and audit by the State.

s. Security Measures:

1. Contractor must provide detailed description of their policies and/or security measures that are in place to prevent erroneous shipments and theft.

2. Contractor’s personnel will comply with all security regulations in effect at the State’s premises, the Information Security Policy and externally for materials and property belonging to the State or to the project. Contractor is responsible for promptly reporting to the State any known breach of security.

SECTION 4 – NOT APPLICABLE TO THIS PROCUREMENT

SECTION 5 – PROCUREMENT REQUIREMENTS AND INSTRUCTIONS

5.1 Procurement Requirements

Procurement requirements are listed under “Procurement Laws, Preference, Regulations and Policies” and “Response to Solicitation” located on the eProcurement Web page at https://finance.ky.gov/eProcurement/Pages/procurement-laws-regulations-and-policies.aspx and https://finance.ky.gov/eProcurement/Pages/doing-business-with-the-commonwealth.aspx respectively. The vendor must comply with all applicable statutes, regulations and policies related to this procurement.

5.2 Access to Solicitation, RFP, and Addenda

The Commonwealth wants each prospective vendor to have full and complete information on which to base a proposal response. Only information presented or referred to in this RFP and any additional written information that is supplied by the Commonwealth Buyer shall be used by vendors in preparing the response.

The solicitation, addenda, and attachments shall be posted to the Kentucky Vendor Self Service link at https://vss.ky.gov

It is not necessary to register to access the solicitation. Unregistered vendors can access solicitations by clicking on public access.

In the event of any conflict or variation between the solicitation or modification as issued by the Commonwealth and the vendor’s response, the version as issued shall prevail.

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Total Pages: 31 https://finance.ky.gov/eProcurement/Pages/procurement-laws-regulations-and-policies.aspx https://finance.ky.gov/eProcurement/Pages/doing-business-with-the-commonwealth.aspx https://vss.ky.gov

5.3 RFP Terminology

For the purpose of this RFP, the following terms may be used interchangeably:

o Proposer, Offeror, Contractor, Provider, or Vendor o Commonwealth Buyer, Buyer, Purchaser, or Contract Officer o RFP, Solicitation, or Procurement o Bid, Proposal, or Offer o Commonwealth of Kentucky, Commonwealth, or State, Agency, Department of

Revenue o Fiscal Year will be defined as the Commonwealth fiscal year: July 1 through June 30 o Biennium will be defined as the Commonwealth biennium: July 1 of each even numbered year through June 30 of the next even numbered year o Requirements that include the words “Shall”, “Will”, “Must” indicate a mandatory requirement o Mandatory Requirement means a condition set out in the specifications or statement of work that must be met without exception.”

5.4 Restrictions on Communications

The Commonwealth Buyer named on the Cover Sheet of this RFP shall be the sole point of contact throughout the procurement process. All communications, oral and written (regular, express, or electronic mail,), concerning this procurement shall be addressed to the Buyer.

For violation of this provision, the Commonwealth shall reserve the right to disqualify the vendors’ proposal response.

5.5 Confidentiality of Contract Terms

The contractor and the Commonwealth agree that all information communicated between them before the effective date of the contract shall be received in strict confidence and shall not be necessarily disclosed by the receiving party, its agents, or employees without prior written consent of the other party. Such material will be kept confidential subject to Commonwealth and Federal public information disclosure laws.

Upon signing of the contract by all parties, terms of the contract become available to the public, pursuant to the provisions of the Kentucky Revised Statutes.

The contractor shall have an appropriate agreement with its subcontractors extending these confidentiality requirements to all subcontractors’ employees.

5.6 Written Questions Regarding this RFP

Vendors are encouraged to submit written questions pursuant to Section 1.1 of this RFP. Written questions shall be submitted to the Commonwealth Buyer via email at stephanie.durr@ky.gov . Vendors should submit questions on Attachment D Vendors Question Form. No questions shall be accepted after the date(s) listed in Section 1.1 unless the question(s) is considered material to the procurement. The Commonwealth shall respond to salient questions in writing by issuing an addendum to the solicitation. The addendum shall be posted to the Kentucky Vendor Self Service site.

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5.7 Vendor Response and Proprietary Information

The RFP specifies the format, required information, and general content of proposals submitted in response to the RFP. The Finance and Administration Cabinet will not disclose any portions of the proposals prior to Contract Award to anyone outside the Finance and Administration Cabinet, representatives of the agency for whose benefit the contract is proposed, representatives of the Federal Government, if required, and the members of the evaluation committees. After a contract is awarded in whole or in part, the Commonwealth shall have the right to duplicate, use, or disclose all proposal data submitted by vendors in response to this RFP as a matter of public record. Although the Commonwealth recognizes the vendor's possible interest in preserving selected data which may be part of a proposal, the Commonwealth must treat such information as provided by the Kentucky Open Records Act, KRS 61.870 et sequitur.

Informational areas which normally might be considered proprietary shall be limited to individual personnel data, customer references, selected financial data, formulae, and financial audits which, if disclosed, would permit an unfair advantage to competitors. If a proposal contains information in these areas that a vendor declares proprietary in nature and not available for public disclosure, the vendor should declare in the Transmittal Letter [see Section 6.7 (A)] the inclusion of proprietary information and shall noticeably label as proprietary each file containing such information. Proprietary information shall be submitted separately and identified as “Proprietary Data”. Proposals containing information declared by the vendor to be proprietary, either in whole or in part, outside the areas listed above may be deemed non-responsive to the RFP and may be rejected.

5.8 Notification of Award of Contract

The procurement process will provide for the evaluation of proposals and selection of the successful proposal in accordance with State law and regulations. KRS Chapter 45A of the Kentucky Model Procurement Code provides the regulatory framework for the procurement of services by State agencies.

All applicable statutes, regulations, policies and requirements shall become a part of an award as well as the Information Technology requirements.

For additional award information, vendors may email the Commonwealth Buyer.

5.9 Protest

Pursuant to KRS 45A.285, the Secretary of the Finance and Administration Cabinet, or his designee, shall have authority to determine protests and other controversies of actual or prospective offerors in connection with the solicitations or selection for award of a contract.

Any actual or prospective offeror or contractor, who is aggrieved in connection with solicitation or selection for award of a contract, may a file protest with the Secretary of the Finance and Administration Cabinet. A protest or notice of other controversy must be filed promptly and in any event within two (2) calendar weeks after such aggrieved person knows or should have known of the facts giving rise thereto. All protests or notices of other controversies must be in writing and shall be addressed and mailed to:

Holly M. Johnson, Secretary

COMMONWEALTH OF KENTUCKY

FINANCE AND ADMINISTRATION CABINET

200 MERO STREET, 5TH FLOOR

FRANKFORT, KY 40622

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The Secretary of Finance and Administration Cabinet shall promptly issue a decision in writing. A copy of that decision shall be mailed or otherwise furnished to the aggrieved party and shall state the reasons for the action taken.

The decision by the Secretary of the Finance and Administration Cabinet shall be final and conclusive.

5.10 Vendor Notification – Ineligible for Award

The Commonwealth will not consider or evaluate any proposal submitted by a vendor when the vendor, the vendor’s employees or agents, had any involvement, contribution or participation in the development, preparation or review of this RFP prior to its issuance.

The vendors proposal will be deemed ineligible for award.

5.11Past Vendor Performance Past vendor performance may be considered in the award of this Contract. Vendors with a record of poor performance in the last twelve (12) months may be found non-responsible and ineligible for award.

SECTION 6 – PROPOSAL SUBMISSION

6.1 Disposition of Proposals

All proposals become the property of the Commonwealth of Kentucky. The successful proposal shall be incorporated into the resulting contract by reference. Disposal of unsuccessful proposals shall be at the discretion of the Commonwealth Buyer.

6.2 Rules for Withdrawal of Proposals

Prior to the date specified for receipt of offers, a submitted proposal may be withdrawn by electronic or written notice by submitting a signed written request for its withdrawal to the Commonwealth Buyer.

6.3 Commonwealth’s Right to Use Proposal Ideas

The Commonwealth of Kentucky shall have the right to use all system ideas, or adaptations of those ideas, contained in any proposals received in response to the RFP. Selection or rejection of the proposal will not affect this right.

6.4 Submission of RFP Response

Each qualified offeror shall submit only one (1) proposal. Alternate proposals shall not be allowed. Failure to submit as specified shall result in a non-responsive proposal.

Acknowledgment of Addenda It is the vendor's responsibility to check the web site for any modifications to this solicitation.

Failure to specifically acknowledge addenda with submission will not excuse the vendor from adhering to all changes to the requirements of the solicitation set forth therein nor provide justification for any pricing changes.

6.5 Electronic Proposal Submission

Proposals shall be received by electronic submission in the eProcurement system.

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An electronic proposal shall be authorized by the proper agent of the firm by the act of submitting it electronically through the eProcurement system.

Proposal information MUST be completed online. Response must contain all required information for the Solicitation. All bidders MUST be registered in the Commonwealth eProcurement System via the Vendor Self Service System at https://vss.ky.gov Allow 24 – 48 hours to complete Vendor Registration. Vendors must be logged in to their Vendor Self Service (VSS) account in order to submit a response. Registrations completed the day of bid closing must be completed by the Vendor in the VSS portal. The Customer Resource Center is not able to complete registrations and activate accounts on the same day.

Closing dates will not be extended for Vendors not registered by the date/time of the bid closing. Vendor Self Service Registration Guides are provided at https://vss.ky.gov

All bidders are cautioned to begin their electronic submission in sufficient time to complete before the closing date and time. Delays due to technical difficulties or document upload impediments shall not be justification for acceptance of a late bid or proposal.

Vendor attention to this advisory is encouraged. If you need assistance, please contact the Customer Resource Center (CRC) by email at Finance.CRCGroup@ky.gov or phone 502-564-9641 or toll-free 877-973-HELP (4357).

Proposals shall be submitted in three (3) parts: The Technical Proposal, the Cost Proposal, and Proprietary Information. Each part should consist of one document attachment. Do not submit multiple document attachments as Technical, Cost or Proprietary. All files shall be labeled accordingly. Attachments may not exceed 65,000 KB.

Proposals submitted online must be in an “Accepted” status and shall be assigned a date and time stamp from the eProcurement system at the time of final acceptance and formal submission by the vendor. The system will not allow submission of an online proposal after the published date and time for closing.

A proposal may be modified or withdrawn by electronic or written notice ONLY if received prior to the bid closing date and time. An electronic offer may be modified by applying the appropriate electronic signature and following the procedure in the state’s eProcurement system.

6.6 Format of Response

A. . Proposals shall be submitted in three (3) parts: the Technical Proposal, the Cost

Proposal, and Proprietary Information. Each part should consist of one document.

Do not submit multiple documents as Technical, Cost or Proprietary.

a. The Technical Proposal should be submitted on one (1) document marked Technical (in Microsoft Word, Microsoft Excel or PDF format ONLY). Do not include embedded documents, hyperlinks or hyperlinks to videos. The document should be named in the following manner: Technical – Name of offeror RFP number

b. The Cost Proposal should be submitted on one (1) document marked Cost (in

Microsoft Word, Microsoft Excel or PDF format ONLY). Do not include embedded documents, hyperlinks or hyperlinks to videos. The document

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Total Pages: 31 https://vss.ky.gov https://vss.ky.gov mailto:Finance.CRCGroup@ky.gov should be named in the following manner: Cost – Name of offeror RFP number

c. Any Proprietary Information shall be submitted on one (1) document marked Proprietary (in Microsoft Word, Microsoft Excel or PDF format ONLY). Do not include embedded documents, hyperlinks or hyperlinks to videos. The document should be named in the following manner:

Proprietary – Name of offeror RFP number

Pricing shall only be provided in the Cost Proposal. DO NOT SUBMIT ANY

PRICING INFORMATION IN THE TECHNICAL PROPOSAL.

All submitted Technical and Cost Proposals shall remain valid for a minimum of six (6) months after the proposal due date.

6.7 Technical Proposal Content

A. Transmittal Letter The transmittal letter should be on the vendor’s letterhead, and signed by an agent authorized to bind the vendor. The transmittal letter should include the following:

i. A statement that deviations are included, if applicable. Proposed deviations must be outlined in the transmittal letter. Any deviation from the provisions of the solicitation must be specifically identified by the vendor in its proposal, which if successful, shall become part of the contract. Such deviations shall not be in conflict with the basic nature of this solicitation. The Commonwealth reserves the right to reject any and/or all deviations in whole or in part.

ii. A statement that, if awarded a contract as a result of this solicitation, the vendor shall comply in full with all requirements of the Kentucky Civil Rights Act, and shall submit all data required by KRS 45.560 to 45.640;

iii. A statement pursuant to KRS 11A.040 that the vendor has not knowingly violated any provisions of the Executive Branch Code of Ethics;

iv. A statement of that the vendor is in compliance with Prohibitions of Certain Conflicts of Interest;

v. A statement of certification in accordance with Federal Acquisition Regulation 52.209-5, Certification Regarding Debarment, Suspension, and Proposed Debarment that to the best of its knowledge and belief, the vendor and/or its principals is (are) not presently debarred, suspended, proposed for debarment, or declared ineligible for the award of contracts by any State or Federal agency.

vi. The name, address, telephone number, and email address of the contact person for this RFP. The address shall be one in which the major overnight delivery services will deliver.

vii. The name, address, telephone number, and email address of the contact person to serve as a point of contact for day-to-day operations.

viii.Subcontractor information to include name of company, address, telephone number and contact name, if applicable.

ix. Federal Tax ID

x. A statement that the vendor agrees to comply with items included in the

Mandatory Checklist, if applicable.

B. Disclosure of Violation of Statutes

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Pursuant to KRS 45A.485, contractors are required to reveal final determinations of violation of certain statutes incurred within the last five (5) years and be in continuous compliance with those statutes during the contract. Where applicable, the vendor is required to complete and submit Report of Prior Violations of Tax and Employment Laws.

C. Kentucky Tax Registration Application

Revenue Form 10A100, Kentucky Tax Registration Application effective July 2008, is a form to be completed by any person or entity wishing to contract with the Commonwealth to provide goods or services subject to sales and use tax pursuant to KRS 139.200.

https://revenue.ky.gov/Forms/10A100(P)(4-25)_FINAL_locked%20Fill-in.pdf

In accordance with administrative regulation 200 KAR 5:390, this form has to be completed and submitted, before a contract can be awarded. Section 2 of the regulation also notes: “Failure to submit the required documentation or to remain registered and in compliance with the sales and use tax filing and remittance requirements of KRS 139.540 and KRS 139.550 throughout the duration of the contract shall constitute a material breach of the contract and the contract may be terminated.”

D. Registration with the Secretary of State by a Foreign Entity

Pursuant to KRS 45A.480(1)(b), an agency, department, office, or political subdivision of the Commonwealth of Kentucky shall not award a state contract to a person that is a foreign entity required by KRS 14A.9-010:

to obtain a certificate of authority to transact business in the Commonwealth (“certificate”) from the Secretary of State under KRS 14A.9-030: https:// apps.legislature.ky.gov/law/statutes/statute.aspx?id=40424 therefore, foreign entities should submit a copy of their certificate with their solicitation response.

If the foreign entity is not required to obtain a certificate as provided in KRS 14A.9-010: https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=44318, the foreign entity should identify the applicable exception in its solicitation response.

Foreign entity is defined within KRS 14A.1-070:

https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=50474

Businesses can register with the Secretary of State at:.

https://www.sos.ky.gov/bus/business-filings/Pages/default.aspx

E. Required Annual Affidavit and Other Affidavit(s)

F. Proposed Solution (see Section 6.8)

6.8 Proposed Solution Content

Response should be based on the RFP requirements and should include the following:

A. Executive Summary Describe the business, the staff, the number of years in business and any other pertinent information about the business.

B. Technical Approach Respondents may be asked to submit at least three samples of the actual revenue stamp rolls of 30,000 stamps in quantities of 20’s which meet the specifications of this RFP. In addition, Respondents may be asked to submit a sample of the paper which Respondents

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Total Pages: 31 https://revenue.ky.gov/Forms/10A100(P)(4-25)_FINAL_locked%20Fill-in.pdf https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=40424 https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=40424 https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=44318 https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=50474 https://www.sos.ky.gov/bus/business-filings/Pages/default.aspx propose to use for the machine-applied stamps. The samples will be used for testing by three (3) different stamping wholesalers of DOR’s choosing to determine how well the product works in stamping cigarette packages based upon location, legibility, adherence to the surface, etc. Evaluation of this criteria and any other relevant factors will be determined exclusively by the DOR. Samples are not to be submitted unless the vendor receives a request from the buyer. Once notified of the request, samples must be received within ten

(10) days of the notification.

Respondents must submit, with the proposal, verification of the Respondents’ testing of stamp durability in regard to expected shelf life once affixed with no fading or other product deterioration.

Respondents must also submit, with the proposals, the name of the manufacturer of the paper stock to be used to print each type of stamps identified in this RFP.

C. Implementation Plan Respondents must submit, with the proposal, the estimated time necessary to manufacture and ship orders.

D. Attestation to Timelines Vendor should state in their technical response that they agree to the following Vendor shall provide proofs to DOR within five (5) business days of contract signing.

Vendor shall produce printing plates within seven (7) business days of proof approval.

Vendor shall hold a minimum of 2,500 rolls in inventory available for immediate shipment during the term of the contract.

D. Project Management Plan Respondents must submit a complete description of the organizational structure, personnel, and their roles in administering the contract.

E. Disaster Recovery Plan Respondents must submit in the proposal a complete description of its disaster recovery program. The disaster recovery program should address the Respondents’ plans and turn-around times for the manufacturing of stamps in the event Respondents experience a disaster that renders its equipment inoperable, etc.

F. Security Plan Respondents must submit with the proposal a separate, confidential, detailed statement fully explaining the Respondents’ manufacturing protection system, the protection provided the State against unlawful stamp reproduction, and the method by which such reproduction can be detected by inspectors of the State. In its confidential statement, Respondents must describe the manufacturing protection systems utilized by the Respondents to ensure that all stamps manufactured are carefully guarded during the manufacturing process and during storage prior to shipment or delivery. Such systems may include the use of an alarm system, video surveillance system, key card access to restricted areas, etc. DOR reserves the right to verify manufacturing protection system and security of facility prior to award.

DO NOT INCLUDE ANY COST IN THE TECHNICAL RESPONSE. COST SHOULD

BE SUBMITTED SEPARATELY

6.9 Cost Proposal Content

The vendor should provide its costs for the proposed solution as instructed on the Cost Proposal Form. (see Attachment B)

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2600000435 Final Kentucky Cigarette Tax Stamps, Fulfillment and

The Commonwealth of Kentucky is Tax Exempt. Do not include Federal Excise Tax, Kentucky Sales or Use Tax in proposed costs.

Costs for developing the proposals are solely the responsibility of the offerors. The Commonwealth of Kentucky shall not provide any reimbursements for such costs.

A proposal shall not be considered for award if the price in the proposal was not arrived at independently without collusion, consultation, communication, or agreement as to any matter relating to such prices with any other offeror or with any competitor. In addition, the offeror is prohibited from making multiple proposals in a different form.

Should conflict of interest be detected any time during the contract, the contract shall be null and void and the contractor shall assume all costs of this project until such time that a new contractor is selected.

SECTION 7 – PROPOSAL EVALUATION

7.1 Proposal Evaluation

The Commonwealth shall conduct a comprehensive, fair, and impartial evaluation of all proposals. The Commonwealth may reject any proposal that is incomplete or in which there are significant inconsistencies or inaccuracies. The Commonwealth reserves the right to reject all proposals.

The Commonwealth has established a Proposal Evaluation Committee to review, evaluate and verify information submitted by the offeror.

Each vendor is responsible for submitting all relevant, factual and correct information with their offer to enable the evaluator(s) to afford each vendor the maximum score based on the available data submitted by the vendor.

The Commonwealth shall evaluate the proposals by assigning scores as indicated.

7.2 Technical Proposal Evaluation

Proposals with a combined technical score less than 50% of the maximum technical points possible will not be considered for award and neither cost proposals nor oral demonstration/presentation evaluations will be evaluated regarding that proposal. A proposal’s combined technical score is the combined total points of all scored criteria in the technical proposal portion of an evaluation.

Criteria Maximum Points Possible Executive Summary 100 Technical 600 Implementation 300 Timeline 300 Project Management 300 Disaster 100 Security 300 Maximum Points Possible 2000

7.3 Cost Proposal Evaluation

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Proposed Cost of Solution 800 Maximum Points Possible 800

The scoring of bids/proposals is subject to the reciprocal preference for Kentucky resident bidders and preferences for a Qualified Bidder or the Department of Corrections, Division of Prison Industries (See KRS 45A.490(1), (2), 45A.492, 45A.494 and KAR 200 5:410).

7.4 Oral Demonstration/Presentation Evaluation, if required

Oral Presentations/Demonstrations

The Commonwealth reserves the right to require Oral Presentations/Demonstrations to verify or expand on the Technical or Cost Proposals. Oral Presentations/Demonstrations may be conducted through video-conferencing or by conference call, if it is in the best interest of the Commonwealth. This is the opportunity for the vendor to present and demonstrate the solution and to answer questions or to clarify the understanding of the evaluation committee in accordance with the requirements of this RFP. The Commonwealth reserves the right to reject any or all proposals in whole or in part based on the oral presentations/demonstrations.

If required, the highest ranking vendors may be invited.

Scheduling will be at the discretion of the Commonwealth.

The Commonwealth reserves the right not to require oral presentations/demonstrations

The decision regarding whether to request oral presentations shall be solely within the discretion of the evaluation team.

The evaluation team may determine that oral presentations are unnecessary, even in instances where technical proposal scores are sufficiently close that Oral Presentations/Demonstrations might affect final rankings. (Note “Oral Presentations/ Discussions” as used in this context shall not include KRS 45A.085(7) written or oral discussions regarding final terms of contracts to be awarded as a result of this RFP

Maximum Points Possible 200

7.5 Best and Final Offer (BAFO)

In accordance with FAP 111-57-00 (3) (h), the Commonwealth reserves the right to request Best and Final Offers (BAFO).

7.6 Total Proposal Evaluation

Technical Proposal 2000

Cost Proposal 800

Oral Demonstrations/Presentations, if required 200

MAXIMUM POINTS POSSIBLE

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SECTION 8 – NEGOTIATIONS

The Commonwealth reserves the right pursuant to KRS 45A.085 to negotiate a contract with the top-ranked vendor. In the event the Commonwealth cannot reach agreement with the top-ranked vendor, it may proceed to negotiate with the next highest ranked vendor, and so on. It is the Commonwealth’s intent to award a contract to the vendor with whom successful negotiations are completed.

Terms and conditions that may be…