FY27-30 IDOR Cigarette Tax Stamps Invitation for Bid Contract~2.docx

The following information will become the contract between the awarded vendor and the Illinois Department of Revenue Instructions and requirements to submit a bid response are found in the attachment titled “Invitation for Bid Vendor Instructions and Requirements”.

State of Illinois Contract v.25.4

Illinois Department of Revenue Contract FY27-30 IDOR Cigarette Tax Stamps

27-492DOR-ACCOU-B-50964

The Parties to this contract are the State of Illinois acting through the undersigned Agency (collectively the State) and the Vendor. This contract, consisting of the signature page and numbered sections listed below and any attachments referenced in this contract, constitute the entire contract between the Parties concerning the subject matter of the contract, and in signing the contract, the Vendor affirms that the Certifications and Financial Disclosures and Conflicts of Interest attached hereto are true and accurate as of the date of the Vendor’s execution of the contract. This contract supersedes all prior proposals, contracts and understandings between the Parties concerning the subject matter of the contract. This contract can be signed in multiple counterparts upon agreement of the Parties.

1. SCOPE OF WORK

1.1. OVERVIEW AND PURPOSE:

The purpose of this solicitation is to establish a contract to enable the Illinois Department of Revenue to purchase Serialized and Heat Applied Cigarette Tax Stamps on an as needed basis during the contract period.

1.2. SUPPLIES AND/OR SERVICES REQUIRED:

The procedures and specifications contained herein are requirements of the solicitation. Attention specifically is directed to the requirement of maintaining production worksheets and inventory reports plus the notification to the Illinois Department of Revenue (IDOR) dealing with any irregularities. Careful, neat and workmanlike printing will be required and demanded. IDOR reserves the right to pass final judgment on what constitutes satisfactory work.

The contractor must be prepared and equipped to do and perform all the work contracted for within the contractor’s own premises. No part of the work contracted for stamp production may be sublet or performed in any other plant or establishment nor shall any assignment of contract in part or in whole be permitted in the event of an emergency, the contractor may request a temporary waiver from IDOR.

Bidder’s response shall address each section of the specifications. No proposal will be considered which is not complete. Bidders will be required to furnish evidence satisfactory to IDOR of their ability to successfully comply with all the provisions and conditions of these specifications and instructions and of the possession of the necessary facilities, equipment, machinery, tools and resources, pecuniary and otherwise, necessary to properly and efficiently carry out the terms of the contract.

Stamp Type and Applications:

Details:

Details:

(Attachment Included in BidBuy)

Details: (Provide evidence title and page number)

Size, Design and Color:

Paper:

12. IDOR reserves the right to determine whether or not such security features give the State the required protection against counterfeiting.

All spoiled paper and stamps are to be strictly accounted for and kept in a secure area and destroyed in the presence of a duly authorized agent of the State. All stock will be controlled by a serial number on each roll, giving IDOR accuracy regarding waste plus finished product to equal paper purchased by bidder.

13. The bidder shall provide the name and address of the paper supplier and submit three (3) laminated hard-copy samples of the paper proposed for use, as part of the bid submission. Paper stock shall be watermarked in such form as the State of Illinois may approve. Samples must be mailed with a post mark NO LATER than the Bid due date – March 02, 2026 to:

Illinois Department of Revenue Receiving, MC 2-216 Attn: Jason Kincaid, RDOB 101 West Jefferson St.

Springfield, Illinois 62702

All samples to be retained by the Department.

|_| Agree (Sample mailed)

Details: (Manufacturer and address) and Provide evidence title and page number

Serial Numbering:

Details:

Details:

Layout and Packing:

Details:

Details:

Stamp Readers:

Stamping Applying Machines:

Protection:

Details: (Provide evidence title and page number)

Accounting:

Production:

34. Vendors must ensure they have sufficient measures in place to prevent loss of stamps during the process of manufacture as well as during storage.

All work under this contract must be performed wholly within the premises of the contractor. No part of this contract may be sublet or performed in any other establishment. No assignment of this contract in whole or in part may be made without the consent of the State. The successful bidder will establish to the satisfaction of the State that it possesses the necessary plant, equipment and facilities to properly and satisfactorily discharge the responsibility imposed by these specifications.

Details:

Details: (Provide evidence title and page number)

Details:

Details:

Cylinders: The State will accept slight modifications to these requirements for a Bidder using an equivalent manufacturing process. The State will determine if the modifications to the manufacturing requirements are equivalent and acceptable.

Details:

Details:

Linear Footage Meter Controls: The State will accept slight modifications to these requirements for a Bidder using an equivalent manufacturing process. The State will determine if the modifications to the manufacturing requirements are equivalent and acceptable.

Details:

Paper Roll Production: The State will accept slight modifications to these requirements for a Bidder using an equivalent manufacturing process. The State will determine if the modifications to the manufacturing requirements are equivalent and acceptable.

60. Any unaccountable loss of 50 feet or more of waste on a roll of 30,000 Serialized Cigarette Tax Stamps must be immediately reported to IDOR. Vendor shall reimburse or credit the State of Illinois for amounts paid by the State.

67. When each production roll is completed and rewound, the corresponding spoilage box is to be sealed and initialed. Each spoilage box must be stored until approval is received by IDOR to dispose of the scrap. Prior to destruction the manufacturer will:

(a) - Prepare a schedule of the scrap to be destroyed by roll number. This schedule must be retained and must be tendered to the Department of Revenue Representative on demand.

(b) - Inventory the scrap to be destroyed at the destruction site.

Distributor Affiliation:

Security:

Unreasonable Delay:

Delivery:

73. Stamps will be ordered and delivered upon request of IDOR with at least 30 calendar days’ notice. Delivery will be arranged upon artwork approval as part of the purchase order. The contractor will deliver all work as directed by the Department of Revenue. All shipments must be made by bonded carrier, insured and prepaid. The contractor will be responsible for safe and proper delivery. IDOR estimates that Stamp orders will be 350-450 Cases per year (750,000 STAMPS PER Case) to be delivered in 2 installments of equal amounts.

Failure on the part of the successful bidder to deliver Cigarette Tax Stamps to the Department or its authorized agent as provided in this contract for whatever reason, other than an Act of God or some unforeseen circumstance over which said successful bidder has no control (control being subject to the interpretation of the Department), will result in liability on the part of said successful bidder to provide the stamps not delivered and replace stamps delivered that do not meet these specifications or that arrive damaged. Such stamps must be in conformance with all provisions embodied in this contract as if said stamps were the original issue.

Said stamps will be made at the expense of the successful bidder and without any additional cost to the Department.

Note: Revenue facilities are secure facilities that require vendors to schedule deliveries prior to shipment.

The successful vendor shall coordinate with Jason Kincaid to agree upon a proposed delivery date prior to scheduling the delivery with the IDOR warehouse. Notification shall be made by phone at (217) 524-2764 or by email at jason.kincaid@illinois.gov.”

The contractor will deliver stamps upon request of IDOR to the Willard Ice Building located at 101 W. Jefferson St. in Springfield, IL 62702 for each year covered by the contract.

NOTE: The delivery instructions provided in this contract are subject to change. The Agency will notify the Vendor in writing of any changes to the delivery instructions during the term of this contract. The Vendor shall implement such changes within a reasonable timeframe after receiving notice from the Agency.

Special Requirements:

1.3. MILESTONES AND DELIVERABLES: See Requirements in Sections 1.2.

1.4. VENDOR/STAFF SPECIFICATIONS: See Requirements in Sections 1.2.

1.5. TRANSPORTATION AND DELIVERY: See Requirements in Sections 1.2.

1.6. SUBCONTRACTING: Subcontractors are not allowed.

1.6.1. Will subcontractors be utilized? |_| Yes |X| No

A subcontractor is a person or entity that enters into a contractual agreement with a total value of $100,000 or more with a person or entity who has a contract subject to the Illinois Procurement Code pursuant to which the person or entity provides some or all of the goods, services, real property, remuneration, or other monetary forms of consideration that are the subject of the primary State contract, including subleases from a lessee of a State contract.

All contracts with subcontractors where the annual value of the subcontract is greater than $50,000 must include Illinois Standard Certifications completed by the subcontractor.

1.6.2. Please identify below subcontracts with an annual value of $100,000 or more that will be utilized in the performance of the contract, the names and addresses of the subcontractors, and a description of the work to be performed by each.

· Subcontractor Name: N/A Amount to Be Paid: N/A Address: N/A Description of Work: N/A

If additional space is necessary to provide subcontractor information, please attach an additional page.

1.6.3. If the annual value of any subcontracts is more than $100,000, then the Vendor must provide to the State the Financial Disclosures and Conflicts of Interest for that subcontractor.

1.6.4. If at any time during the term of the Contract, Vendor adds or changes any subcontractors, Vendor is required to promptly notify, in writing, the State Purchasing Officer or the Chief Procurement Officer of the names and addresses and the expected amount of money that each new or replaced subcontractor will receive pursuant to this Contract. Any subcontracts entered prior to award of this Contract are done at the sole risk of the Vendor and subcontractor(s).

1.7. WHERE SERVICES ARE TO BE PERFORMED: Unless otherwise disclosed in this section all services shall be performed in the United States. If the Vendor performs the services purchased hereunder in another country in violation of this provision, such action may be deemed by the State as a breach of the contract by Vendor.

Vendor shall disclose the locations where the services required shall be performed and the known or anticipated value of the services to be performed at each location. If the Vendor received additional consideration in the evaluation based on work being performed in the United States, it shall be a breach of contract if the Offeror shifts any such work outside the United States.

· Location where services will be performed: Click here to enter text Value of services performed at this location: Click here to enter text

2. PRICING

2.1. FORMAT OF PRICING:

2.1.1. Vendor shall submit pricing in the format shown below and in the BidBuy Items Tab, based on the terms and conditions set forth in section 1 of this Contract. Award will be made based on the complete low total, to the responsible bidder(s) offering the lowest responsive bid. The quoted prices shall be F.O.B. destination, freight prepaid to delivery location as specified.

2.1.2. Vendor shall provide stamps upon request of the Department and will be billed using the Vendor’s price below which will be applicable for the duration of the contract.

2.1.3. Stamps shall be packaged: 30,000 stamps per roll, 25 rolls per case for a total of 750,000 stamps per case

2.1.4. All bid prices shall be fully loaded at the rate of one thousand (1,000) stamps, which shall include but is not limited to: the cost of manufacturing the stamps including original drawings, engravings, heat application guns, 25 functional readers, and stamp delivery. Bid price per one thousand (1,000) stamps net F.O.B. destination.

2.1.5. Pricing shall be submitted in the following format:

(270,000 x Vendor cost per Thousand)

2.2. TYPE OF PRICING: The Illinois Office of the Comptroller requires the State to indicate whether the contract price is firm or estimated at the time it is submitted for obligation. The total price of this contract is firm.

2.3. VENDOR’S PRICING: Vendor’s pricing is located in the Items Tab in the BidBuy Purchase Order. The State includes in this contract the BidBuy Purchase Order as it contains the agreed pricing.

2.4. ECONOMIC ADJUSTMENTS: N/A

2.5. RENEWAL COMPENSATION: If the contract is renewed, the price shall be at the same rate as for the initial contract term, unless a different compensation or formula for determining the renewal compensation is stated in this section.

2.5.1. Agency Formula for Determining Renewal Compensation: N/A.

2.5.2. Vendors renewal pricing is per the quote upon which the award was determined. Quote number N/A The awarded quote number will be entered by the State prior to execution of the contract.

2.6. MAXIMUM AMOUNT: The total payments under the initial term of this contract shall not exceed $Click here to enter text without a formal amendment. The maximum amount will be entered by the State prior to execution of the contract.

3. TERM AND TERMINATION

3.1. TERM:

3.1.1. TERM OF THIS CONTRACT: The contract will have an initial term commencing upon July 1, 2026 and ending on June 30, 2030. In no event will the maximum total term of the contract, including the initial term, any renewal terms, and any extensions, exceed ten (10) years. Vendor shall not commence billable work in furtherance of the contract prior to final execution of the contract except when permitted pursuant to 30 ILCS 500/20-80.

3.1.2. RENEWAL: Subject to the maximum total term identified above, the State has the option to renew for the following term(s): N/A

Any renewal of the resulting contract is subject to the same terms and conditions that apply to the initial term of the contract unless otherwise provided. The State may renew the contract for any or all of the option periods specified, may exercise any of the renewal options early, and may exercise more than one option at a time based on continuing need and favorable market conditions, when in the best interest of the State. The contract may neither renew automatically nor renew solely at the Vendor’s option.

3.2. TERMINATION FOR CAUSE: The State may terminate this contract, in whole or in part, immediately upon notice to the Vendor if: (a) the State determines that the actions or inactions of the Vendor, its agents, employees or subcontractors have caused, or reasonably could cause, jeopardy to health, safety, or property, or (b) the Vendor has notified the State that it is unable or unwilling to perform the contract.

If Vendor fails to perform to the State’s satisfaction any material requirement of this contract, is in violation of a material provision of this contract, or the State determines that the Vendor lacks the financial resources to perform the contract, the State shall provide written notice to the Vendor to cure the problem identified within the period of time specified in the State’s written notice. If not cured by that date the State may either: (a) immediately terminate the contract without additional written notice or (b) enforce the terms and conditions of the contract.

For termination due to any of the causes contained in this Section, the State retains its rights to seek any available legal or equitable remedies and damages.

3.3. TERMINATION FOR CONVENIENCE: The State may, for its convenience and with thirty (30) days prior written notice to Vendor, terminate this contract in whole or in part and without payment of any penalty or incurring any further obligation to the Vendor.

Upon submission of invoices and proof of claim, the Vendor shall be entitled to compensation for supplies and services provided in compliance with this contract up to and including the date of termination.

3.4. AVAILABILITY OF APPROPRIATION: This contract is contingent upon and subject to the availability of funds. The State, at its sole option, may terminate or suspend this contract, in whole or in part, without penalty or further payment being required, if (1) the Illinois General Assembly or the federal funding source fails to make an appropriation sufficient to pay such obligation, or if funds needed are insufficient for any reason (30 ILCS 500/20-60), (2) the Governor decreases the Agency’s funding by reserving some or all of the Agency’s appropriation(s) pursuant to power delegated to the Governor by the Illinois General Assembly, or (3) the Agency determines, in its sole discretion or as directed by the Office of the Governor, that a reduction is necessary or advisable based upon actual or projected budgetary considerations. Contractor will be notified in writing of the failure of appropriation or of a reduction or decrease.

4. STANDARD BUSINESS TERMS AND CONDITIONS

4.1. PAYMENT TERMS AND CONDITIONS:

4.1.1. LATE PAYMENT: Payments, including late payment charges, will be paid in accordance with the State Prompt Payment Act and rules when applicable. 30 ILCS 540; 74 III. Adm. Code 900. This shall be Vendor’s sole remedy for late payments by the State. Payment terms contained in Vendor’s invoices shall have no force or effect.

4.1.2. MINORITY CONTRACTOR INITIATIVE: Any Vendor awarded a contract of $1,000 or more under Section 20-10, 20-15, 20-25 or 20-30 of the Illinois Procurement Code (30 ILCS 500) is required to pay a fee of $15. The Comptroller shall deduct the fee from the first check issued to the Vendor under the contract and deposit the fee in the Comptroller’s Administrative Fund. 15 ILCS 405/23.9.

4.1.3. EXPENSES: The State will not pay for supplies provided or services rendered, including related expenses, incurred prior to the execution of this contract by the Parties even if the effective date of the contract is prior to execution.

4.1.4. PREVAILING WAGE: As a condition of receiving payment Vendor must (i) be in compliance with the contract, (ii) pay its employees prevailing wages when required by law, (iii) pay its suppliers and subcontractors according to the terms of their respective contracts, and (iv) provide lien waivers to the State upon request. Examples of prevailing wage categories include public works, printing, janitorial, window washing, building and grounds services, site technician services, natural resource services, security guard and food services. The prevailing wages are revised by the Illinois Department of Labor (DOL) and are available on DOL’s official website, which shall be deemed proper notification of any rate changes under this subsection. Vendor is responsible for contacting DOL at 217-782-6206 or (https://labor.illinois.gov) to ensure understanding of prevailing wage requirements.

4.1.5. FEDERAL FUNDING: This contract may be partially or totally funded with Federal funds. If Federal funds are expected to be used, then the percentage of the good/service paid using Federal funds and the total Federal funds expected to be used will be provided to the awarded Vendor in the notice of intent to award.

4.1.6. INVOICING: By submitting an invoice, Vendor certifies that the supplies or services provided meet all requirements of this contract, and the amount billed and expenses incurred are as allowed in this contract. Invoices for supplies purchased, services performed, and expenses incurred through June 30 of any year must be submitted to the State no later than July 31 of that year; otherwise Vendor may have to seek payment through the Illinois Court of Claims. 30 ILCS 105/25. All invoices are subject to statutory offset. 30 ILCS 210.

4.1.6.1. Vendor shall not bill for any taxes unless accompanied by proof that the State is subject to the tax. If necessary, Vendor may request the applicable agency’s Illinois tax exemption number and Federal tax exemption information.

4.1.6.2. Vendor shall invoice at this completion of the contract unless invoicing is tied in this contract to milestones, deliverables, or other invoicing requirements agreed to in the contract.

Send invoices to:

For procurements conducted in BidBuy, the Agency may include in this contract the BidBuy Purchase Order as it contains the Bill To address.

4.2. ASSIGNMENT: This contract may not be assigned or transferred in whole or in part by Vendor without the prior written consent of the State.

4.3. SUBCONTRACTING: For purposes of this section, subcontractors are those with contracts with an annual value exceeding $100,000 and who are specifically hired to perform all or part of the work covered by this contract. Vendor must receive prior written approval before use of any subcontractors in the performance of this contract. Vendor shall describe, in an attachment if not already provided, the names and addresses of all authorized subcontractors to be utilized by Vendor in the performance of this contract, together with a description of the work to be performed by the subcontractor and the anticipated amount of money that each subcontractor is expected to receive pursuant to this contract. If required, Vendor shall provide a copy of any subcontracts within fifteen (15) days after execution of this contract. All subcontracts must include the same certifications that Vendor must make as a condition of this contract. Vendor shall include in each subcontract the Standard Illinois Certification form available from the State. If at any time during the term of the Contract, Vendor adds or changes any subcontractors, then Vendor must promptly notify, by written amendment to the Contract, the State Purchasing Officer or the Chief Procurement Officer of the names and addresses, the expected amount of money that each new or replaced subcontractor will receive pursuant to the Contract, and the general type of work to be performed. 30 ILCS 500/20-120.

4.4. AUDIT/RETENTION OF RECORDS: Vendor and its subcontractors shall maintain books and records relating to the performance of this contract and any subcontract necessary to support amounts charged to the State pursuant this contract or subcontract. Books and records, including information stored in databases or other computer systems, shall be maintained by the Vendor for a period of three (3) years from the later of the date of final payment under the contract or completion of the contract, and by the subcontractor for a period of three (3) years from the later of final payment under the term or completion of the subcontract. If Federal funds are used to pay contract costs, the Vendor and its subcontractors must retain their respective records for five (5) years. Books and records required to be maintained under this section shall be available for review or audit by representatives of the procuring Agency, the Auditor General, the Executive Inspector General, the Chief Procurement Officer, State of Illinois internal auditors or other governmental entities with monitoring authority, upon reasonable notice and during normal business hours. Vendor and its subcontractors shall cooperate fully with any such audit and with any investigation conducted by any of these entities. Failure to maintain books and records required by this section shall establish a presumption in favor of the State for the recovery of any funds paid by the State under this contract or any subcontract for which adequate books and records are not available to support the purported disbursement. The Vendor or subcontractors shall not impose a charge for audit or examination of the Vendor’s or subcontractor’s books and records. 30 ILCS 500/20-65.

4.5. TIME IS OF THE ESSENCE: Time is of the essence with respect to Vendor’s performance of this contract. Vendor shall continue to perform its obligations while any dispute concerning this contract is being resolved unless otherwise directed by the State.

4.6. NO WAIVER OF RIGHTS: Except as specifically waived in writing, failure by a Party to exercise or enforce a right does not waive that Party’s right to exercise or enforce that or other rights in the future.

4.7. FORCE MAJEURE: Failure by either Party to perform its duties and obligations will be excused by unforeseeable circumstances beyond its reasonable control and not due to its negligence, including acts of nature, acts of terrorism, riots, labor disputes, fire, flood, explosion, and governmental prohibition. The non-declaring Party may cancel this contract without penalty if performance does not resume within thirty (30) days of the declaration.

4.8. CONFIDENTIAL INFORMATION: Each Party to this contract, including its agents and subcontractors, may have or gain access to confidential data or information owned or maintained by the other Party in the course of carrying out its responsibilities under this contract. Vendor shall presume all information received from the State or to which it gains access pursuant to this contract is confidential. Vendor information, unless clearly marked as confidential and exempt from disclosure under the Illinois Freedom of Information Act, shall be considered public. No confidential data collected, maintained, or used in the course of performance of this contract shall be disseminated except as authorized by law and with the written consent of the disclosing Party, either during the period of this contract or thereafter. The receiving Party must return any and all data collected, maintained, created or used in the course of the performance of this contract, in whatever form it is maintained, promptly at the end of this contract, or earlier at the request of the disclosing Party, or notify the disclosing Party in writing of its destruction. The foregoing obligations shall not apply to confidential data or information lawfully in the receiving Party’s possession prior to its acquisition from the disclosing Party; received in good faith from a third Party not subject to any confidentiality obligation to the disclosing Party; now is or later becomes publicly known through no breach of confidentiality obligation by the receiving Party; or that is independently developed by the receiving Party without the use or benefit of the disclosing Party’s confidential information.

4.9. USE AND OWNERSHIP: All work performed or supplies created by Vendor under this contract, whether written documents or data, goods or deliverables of any kind, shall be deemed work for hire under copyright law and all intellectual property and other laws, and the State of Illinois is granted sole and exclusive ownership to all such work, unless otherwise agreed in writing. Vendor hereby assigns to the State all right, title, and interest in and to such work including any related intellectual property rights, and/or waives any and all claims that Vendor may have to such work including any so-called "moral rights" in connection with the work. Vendor acknowledges the State may use the work product for any purpose. Confidential data or information contained in such work shall be subject to the confidentiality provisions of this contract.

4.10. INDEMNIFICATION AND LIABILITY: The Vendor shall indemnify and hold harmless the State of Illinois, its agencies, officers, employees, agents and volunteers from any and all costs, demands, expenses, losses, claims, damages, liabilities, settlements and judgments, including in-house and contracted attorneys’ fees and expenses, arising out of: (a) any breach or violation by Vendor of any of its certifications, representations, warranties, covenants or agreements; (b) any actual or alleged death or injury to any person, damage to any real or personal property, or any other damage or loss claimed to result in whole or in part from Vendor’s negligent performance; (c) any act, activity or omission of Vendor or any of its employees,…