OT901421_Revised_Contract.pdf

Index No.: LOT004

Eff. Date: 09/01/24

STATE OF OHIO

DEPARTMENT OF ADMINISTRATIVE SERVICES

GENERAL SERVICES DIVISION

OFFICE OF PROCUREMENT SERVICES

4200 SURFACE ROAD, COLUMBUS, OH 43228-1395

MANDATORY USE CONTRACT FOR: ELECTRONIC, NETWORKED, SELF-SERVICE LOTTERY INSTANT TICKET

DISPENSERS

CONTRACT No.: OT901421 EFFECTIVE DATES: 10/15/20 to 08/31/24 *Renewal through 08/31/26

The Department of Administrative Services has accepted bids submitted in response to Invitation to Bid No. OT901421 that opened on 09/04/20. The evaluation of the bid response(s) has been completed. The bidder(s) listed herein have been determined to be the lowest responsive and responsible bidder(s) and have been awarded a contract for the items(s) listed.

The respective bid response, including the Instructions to Bidders and Standard Terms and Conditions, special contract terms & conditions, any bid addenda, specifications, pricing schedules and any attachments incorporated by reference and accepted by DAS become a part of this Requirements Contract.

This Requirements Contract is effective beginning and ending on the dates noted above unless, prior to the expiration date, the Contract is renewed, terminated or cancelled in accordance with the Contract Terms and Conditions.

CONTRACT RENEWAL. This Contract may be renewed after the ending date of the Contract solely at the discretion of the Contracting Agency for a period of one month. Any further renewals will be by mutual agreement between the Contractor and the Contracting Agency for any number of times and for any period of time. The cumulative time of all mutual renewals may not exceed 48 months unless the Contracting Agency determines that additional renewal is necessary.

This Requirements Contract is available to the Ohio Lottery Commission , as applicable.

Agencies are eligible to make purchases of the listed supplies and/or services in any amount and at any time as determined by the agency. The State makes no representation or guarantee that agencies will purchase the volume of supplies and/or services as advertised in the Invitation to Bid.

This Requirements Contract and any Amendments thereto are available from the DAS Web site at the following address:

http://www.ohio.gov/procure

Signed: __________________________________________________________ Kathleen C. Madden, Director Date

*Indicates a 24 month renewal of the contract, effective 09/01/24 through 08/31/26.

https://procure.ohio.gov/pdf/Instructions_010118.pdf https://procure.ohio.gov/pdf/Standard_t_c_051520.pdf

* Eff. Date: 09/30/22 Page No.: 2

TABLE OF CONTENTS

* CLAUSES PAGE NO.

Amendments 3

Contractor Index 18

Data Center 16

Delivery 3

Fixed-Price with Economic Adjustment 3

Price Schedule 17

Reports 14 - 15

Requirements 6 - 16

Scope 6

Special Terms and Conditions 3 - 5

* Summary of Amendments 19

* Indicates the addition of the Summary of Amendments page to the Table of Contents and updates to the page numbers of the contract, effective 9/30/22.

Eff. Date: 10/15/20 Page No.: 3

SPECIAL CONTRACT TERMS AND CONDITIONS

AMENDMENTS TO CONTRACT TERMS AND CONDITIONS: The following Amendments to the Contract Terms and Conditions do hereby become a part hereof. In the event that an amendment conflicts with the Contract Terms and Conditions, the Amendment will prevail.

DELIVERY AND ACCEPTANCE, SUPPLIES: Supplies will be delivered to the participating agency within thirty (30) days after receipt of order. The delivery location will be noted on the purchase order issued by the participating agency.

Acceptance (transfer of title) will occur upon the inspection and written confirmation by the ordering agency that the supplies delivered conform to the requirements set forth in the Contract. Unless otherwise provided in the Contract, acceptance shall be conclusive except as regards to latent defects, fraud, or such gross mistakes as amount to fraud.

DESCRIPTIVE LITERATURE: The Bidder shall submit descriptive literature of the supplies or services being offered as part of their bid submission. The literature will be used in the evaluation process to determine the lowest responsive and responsible bidder. Any references, that may appear in the descriptive literature, that may alter the terms and conditions and specifications of the bid (e.g. F.O.B. Shipping Point or Prices Subject to Change), will not be part of any contract and will be disregarded by the state of Ohio. Failure of the bidder to furnish descriptive literature as part of their bid response may deem the bidder not responsive.

PRODUCT SAMPLES: The bidder(s) may be required to submit samples of the supplies being offered. The samples will be used in the evaluation process to determine the lowest responsive and responsible bidder. If not included as part of their bid response, the bidder will be required to provide the samples within ten (10) calendar days after notification. Failure to provide the samples within the stated time period will result in the bidder being deemed not responsive. After award of the contract, the samples will be used as a basis of comparison with actual product delivered under contract. Any variation between the samples and product being delivered will be considered as an event of default. Any variations between the samples and actual product being delivered that are due to manufacturer changes may be acceptable and shall require prior written approval from DAS.

EVALUATION: Bids will be evaluated in accordance with Article I-17 of the “Instructions to Bidders”. In addition, the State will evaluate this bid based upon the price schedule; multiplying the price per unit by the estimated annual usage and adding these item totals to determine the lowest responsive and responsible bidder.

CONTRACT AWARD: The items listed are being bid as Brand Name or Approved Equal in accordance with Ohio Administrative Code 123:5-1-10(I). Bidders who offer alternate items to the Brand Names listed must provide detailed written justification with their Bid, describing how the alternate items offered meet or exceed the Brand Name items specified. The specifications for the Brand Names listed are considered necessary only to establish functional requirements. Proprietary design, exact dimensions, capacities, or restrictive features will not preclude acceptance of other recognized alternates meeting comparable performance requirements as determined by the State. Bidder signifies compliance or non-compliance with specifications by listing and outlining all deviations from specifications on company letterhead and returning it with the bid. Failure to provide this information may deem the bid not responsive. The determination of the equality of alternate items offered will be responsibility of the Ohio Lottery Commission and the Office of Procurement Services. All decisions shall be final.

FIXED-PRICE WITH ECONOMIC ADJUSTMENT: The contract prices(s) will remain firm for the first twelve (12) months duration of the contract. Thereafter, the Contractor may submit a request to increase their price(s) to be effective thirty (30) calendar days after acceptance by DAS. No price adjustment will be permitted prior to the effective date of the increase received by the Contractor from his suppliers, or on purchase orders that are already being processed, or on purchase orders that have been filled and are awaiting shipment. If the Contractor receives orders requiring quarterly delivery, the increase will apply to all deliveries made after the effective date of the price increase.

The price increase must be supported by a general price increase in the cost of the finished supplies, due to increases in the cost of raw materials, labor, freight, Workers' Compensation and/or Unemployment Insurance, etc. Detailed documentation, to include a comparison list of the contract items and proposed price increases, must be submitted to support the requested increase. Supportive documentation should include, but is not limited to: copies of the old and the current price lists or similar documents which indicate the original base cost of the product to the Contractor and the corresponding increase, and/or copies of correspondence sent by the Contractor's supplier on the supplier's letterhead, which contain the above price information and explains the source of the increase in such areas as raw materials, freight, fuel or labor, etc.

Should there be a decrease in the cost of the finished product due to a general decline in the market or some other factor, the Contractor is responsible to notify DAS immediately. The price decrease adjustment will be incorporated into the contract and will be effective on all purchase orders issued after the effective date of the decrease. If the price decrease is a temporary decrease, such should be noted on the invoice. In the event that the temporary decrease is revoked, the contract pricing will be returned to the pricing in effect prior to the temporary decrease. For quarterly deliveries, any decrease will be applied to deliveries made after the effective date of the decrease. Failure to comply with this provision will be considered as a default and will be subject to the “Suspension/Termination” and the “Contract Remedies” sections of the “Standard Contract Terms and Conditions”.

Page No.: 4

SPECIAL CONTRACT TERMS AND CONDITIONS (CONT’D)

* II. REGULATORY CONTRACT REQUIREMENTS, J. (STANDARD TERMS AND CONDITIONS): The Contractor agrees to the following updated language:

PROHIBITION OF THE EXPENDITURE OF PUBLIC FUNDS FOR OFFSHORE SERVICES:

No State Cabinet Agency, Board or Commission will enter into any contract to purchase services provided outside of the United States or that allows State data to be sent, taken, accessed, tested, maintained, backed-up, stored, or made available remotely outside (located) of the United States, unless a duly signed waiver from the State has been attained.

Notwithstanding any other terms of this Contract, the State reserves the right to recover any funds paid for services the Contractor performs outside of the United States for which it did not receive a waiver. The State does not waive any other rights and remedies provided to the State in the Contract.

Further, no State agency, board, commission, State educational institution, or pension fund will make any purchase from or investment in any Russian institution or company. Notwithstanding any other terms of this Contract, the State reserves the right to recover any funds paid to Contractor for purchases or investments in a Russian institution or company in violation of this paragraph. The provisions of this paragraph will expire when the applicable Executive Order is no longer effective.

The Contractor must complete the Contractor/Subcontractor Affirmation and Disclosure Form affirming the Contractor understands and will meet the requirements of the above prohibition. During the performance of this Contract, if the Contractor changes the location(s) disclosed on the Affirmation and Disclosure Form, Contractor must complete and submit a revised Affirmation and Disclosure Form reflecting such changes.

BIDDERS MUST COMPLETE THE FOLLOWING: Failure to complete the following may deem your bid not responsive.

BIDDER COST ALLOCATION CATEGORIES

As a baseline for evaluation of price adjustment requests for this Contract, Bidders shall indicate the percentage of total costs for the following cost elements. The sum of all percentages must equal one hundred percent. Bidders may add additional cost categories if appropriate.

Cost of Materials Labor Cost Utilities Transportation Other Overhead

73% 15% 0% 2% 0% 10%

BID AUTOMOBILE LIABILITY CHECKLIST: Contractor will indicate, by checking the appropriate box(es) below, which mode of transportation will apply to this contract.

Bidder/Broker (“The Contractor”) or their Sub Contractor will make delivery or be performing services using a vehicle that is owned, leased or rented. Provide Certificate of Insurance documenting automobile liability with a Combined Single Limit of $500,000.00.

X Goods/Services will be delivered via common carrier.

No employee or representative of the contractor will have cause to be on state property to make deliveries or to perform services.

* Indicates updated language regarding the Prohibition of the Expenditure of Public Funds for Offshore Services, effective 09/30/22.

https://procure.ohio.gov/pdf/EO2022-02D/04-Affirmation%20and%20Disclosure%20Form_3-4-22.pdf

* Page 5

SPECIAL CONTRACT TERMS AND CONDITIONS (CONT’D)

* DISCLOSURE OF SUBCONTRACTORS / JOINT VENTURES AND SERVICE PROVIDERS: List names of subcontractors and service providers who will be performing work under the Contract.

Diamond Game Enterprises

By the signature affixed to Page 1 of this Bid, Bidder hereby certifies that the above information is true and accurate. The Bidder agrees that no changes will be made to this list of subcontractors or locations where work will be performed or data will be stored without prior written approval of DAS. Any attempt by the Bidder/Contractor to change or otherwise alter subcontractors or locations where work will be performed or locations where data will be stored, without prior written approval of DAS, will be deemed as a default. If a default should occur, DAS will seek all legal remedies as set forth in the Terms and Conditions which may include immediate cancellation of the Contract. Failure to complete this page may deem your bid not responsive.

* Indicates move of the Disclosure of Subcontractors / Joint Ventures and Service Providers section from page 4 to page 5 due to spacing and repagination, effective 09/30/22.

* Page No.: 6

SPECIFICATIONS

I. SCOPE: The Ohio Lottery Commission desires to purchase and deploy video equipped, networked, instant ticket lottery game dispensers throughout the State of Ohio. These dispensers shall be Diamond Games Select 4 dispensers or approved equal. The purchase price for each unit shall include delivery, installation, and setup at the locations designated by the Ohio Lottery Commission.

A. Product: The Diamond Games Select 4 dispenser requirements are included in this solicitation for reference and comparison. Bidders submitting prices for dispensers other than the Select 4 shall include in their response a description detailing how the requirements are satisfied by the proposed alternative.

B. Placement: Dispensers shall be installed in suitable, indoor locations capable of supporting the networked features of the product, having adequate electrical service and available internet access. Minimum deployment site requirements shall be established with the Ohio Lottery Commission.

C. Authorized Distributor: The Bidder shall be an authorized dealer/distributor for the product submitted with the bid and shall remain as such for the duration of any contract awarded pursuant to this solicitation. Bidders shall provide a letter from the manufacturer, on manufacturer’s letterhead, identifying the Bidder as an authorized agent.

D. Delivery and Installation: The Bidder shall be prepared with the necessary personnel and equipment to successfully deliver, install, and setup product anywhere within the State of Ohio, as directed by the Ohio Lottery Commission.

E. Service: Bidder shall have the ability to not only service the physical machines but shall also be capable of maintaining the network and data storage requirements as outlined in this solicitation. Charges to service and maintain dispensers shall be distilled into a monthly charge per dispenser as listed on the Bid Price Schedule. This monthly service charge shall include any and all support fees and be consistent for all dispensers, regardless of the physical location.

II. REQUIREMENTS: The dispensers shall be Diamond Games Select 4 dispensers or approved equal complying with the following specifications.

A. Product Summary: The product needs to be an automated, four-bin instant ticket dispenser with digital display. The product needs to be a compact, self-service, instant ticket vending machine suitable for the social environments with limited space.

The product needs to dispense four different scratch-off lottery tickets and be designed for easy, intuitive operation by both the players and administrative personnel. A touch screen needs to guide the players through cash and cashless payment options and ticket selection.

Menus need to be accessible in admin mode for maintenance and administrative tasks. A web application needs to be available to the Lottery and operators to view reports and manage users based on their access levels. The access to options at the central application needs to be permission-based.

The software, ticket images for available games in the market, and idle animations need to be housed centrally and transferred to machines across the market securely. The transaction data on the machine needs to be transferred to central servers for consolidated reporting.

The product shall have the following features in the player, idle, and admin mode.

1. Player Mode:

a. Display of four games available for purchase, including the game information, images, and price of each ticket

b. Adding funds to the terminal via cash, credit or debit

c. Selection of tickets to purchase

d. Confirmation and error messages

e. Dispense of the purchased tickets

2. Idle Mode: If there are no activities on the terminal for more than a specified time, the terminal shall enter an idle mode and scroll through the idle screens. The player shall be able to select English and Spanish language from the idle screen.

* Indicates repagination, effective 09/30/22.

* Page No.: 7

SPECIFICATIONS (CONT’D)

3. Admin Mode: The product shall have separate service doors for cash and tickets with separate locks and keys.

When any of the two service doors are opened, the admin mode shall be displayed. Some main features include:

a. Event History on the Machine, including play, loading ticket, inserting bill into the machine, opening either of the service doors, central server communication, and errors

b. Configure, activate the machine and set up the machine peripherals

c. Cash Drop (Removal of cash from the cashbox)

d. Set the Terminal to an “Out of Service” mode

e. Manage Ticket Bins, load new ticket pack

f. Test Machine’s Peripherals

g. Restart Terminal

B. Terminal’s Player Mode: The main user screen of the product needs to provide the instructions and controls that allow the players to make ticket purchases. The multi-game screen needs to provide information about the available games, the price of the ticket, instruction messages to inform the player how to play, responsible gaming messages, and the Lottery’s logo on a digital screen.

The images on the multi-game screen need to be representative of the actual tickets and include the game name. If the tickets are available for purchasing, the game image on the multi-game screen needs to be in the “Available” state.

If the ticket is sold out or is not available for purchase due to ticket jams or other technical problems, the ticket shall be grayed out and the “Not Available” message (or a similar message) shall be displayed on the image.

The operator needs to be able to deactivate any ticket column as needed in case of ticket jams or other technical issues. The operator also needs to be able to set a machine to “Out of Service” mode, if needed. The availability of each column and the device needs to be communicated to the player via the digital screen.

1. Ticket Purchase Process: A successful ticket purchase process shall be as follows.

a. The balance meter must have sufficient funds to cover the cost of the ticket that is being purchased.

b. The player shall select the desired ticket for purchase.

c. An animation of the purchased ticket being dispensed shall be displayed on the digital screen to communicate with the player about what ticket is being dispensed. For example, the game image on the screen shall move down to simulate dispensing a ticket on the screen.

* Indicate repagination, effective 09/30/22.

* Page No.: 8

d. The ticket needs to be dispensed from the terminal.

e. The cost of the ticket must be deducted from the balance meter.

f. The player shall wait until the ticket is dispensed completely before selecting the next ticket to purchase.

If there are any problems with dispensing the selected ticket, the price of the ticket must not be deducted from the balance on the terminal. Unsuccessful ticket purchases due to insufficient funds, out of stock tickets, ticket jams, and any other technical problems must be handled in the application and logged in the system.

Corresponding messages need to be displayed to the players in case of any problems with the ticket purchase.

2. Adding Funds: The player shall be able to use cash or card to add funds to the terminal. The player doesn’t need to be able to add cents to the balance, and the product does not need to give change. All the funds inserted into the terminal need to be used to purchase tickets.

The credit on the terminal shall not expire, and the machine needs to maintain the accurate balance amount in the following events:

a. In the case of a power outage or internet disconnect, the balance needs to be retained and displayed upon power or internet restoration.

b. If the game enters into idle mode, the balance needs to be retained and displayed upon exiting the screen.

c. If the game enters into Admin screen, the balance needs to be retained and displayed upon exiting the screen.

The player shall be able to insert cash into the bill validator to purchase tickets. The maximum cash allowed to be inserted into the terminal at once shall be a configurable parameter on the machine’s admin model. For example, if the maximum cash allowed in the machine is $700, and if inserting a bill increases the total balance to above the threshold, the bill validator shall not accept more cash.

The communications and processing associated with cashless payments shall be handled by the card reader.

The card reader application needs to be integrated with the WorldPay system. When a card is inserted into the card reader, the player needs to be prompted to specify the transaction type (debit or credit), the transaction amount, and enter their PIN (if debit). The maximum amount that can be added to the terminal via a single card in one week is $700. In the process of adding funds to the terminal, if the cumulative amount via a single card is more than $700, adding the funds shall not be allowed, and error messages need to be displayed to the player.

The terminal shall not collect or capture the information about the card or PIN numbers. The card reader software shall communicate with the payment system, receive the authorization response, and inform the software of the type of the transaction (credit/debit), the dollar amount, and the authorization response.

Depending on the outcome of the transaction, the corresponding messages need to be displayed to the players.

Both authorized and unauthorized transactions need to be logged in the system.

The terminals shall be connected to the WorldPay system via the internet to facilitate cashless transactions.

The communication with the financial server to transfer information needs to be secured, and the cashless component must be PCI compliant. The terminal and the cashless pieces shall have both WIFI and Ethernet capabilities.

* Page No.: 9

C. Terminal’s Idle Mode: If there is no activity on the device for more than a specified time, the screen shall change to an idle mode and cycle through multiple idle screens. The idle screen shall go away upon user interaction with the terminal (by touching the screen or inserting cash or card). The messages and call to action buttons on the idle screen shall be in both English and Spanish. The player shall be able to select their language preference from the idle screen.

D. Terminal’s Admin Mode: The admin menu shall be activated when any of the two service doors of the terminal is unlocked and opened. The operator shall be able to dismiss the admin mode by closing the service doors. If any of the doors are open and there are no activities on the terminal in admin mode after a specified time, an alarm shall be activated. The alarm shall be deactivated when the door is closed and locked.

1. History: All the events, ticket purchase, loading packs, inserting funds, communicating to the central application, loading new game images, software updates, and errors need to be logged on the machine and displayed in the Admin mode.

* Page No.: 10

2. Action: The following action items shall be available to the operators to support the machines at the sites.

a. Out of Service Mode: Operators shall be able to put a machine in an “Out of Service” mode. The device shall not be available for selling tickets; the players shall not be able to add any funds or dispense any tickets if a machine is out of service. This feature shall be used by the operators if the machine needs to be “Out of Service” mode due to technical problems, or player abuse.

The operator needs to be able to deactivate any ticket column as needed in case of ticket jams or other technical issues.

b. Cash Drop: The “Cash Drop” option in the admin mode shall be available to the operators to remove the cash in the cashbox of the bill validator. The cash drop event shall be recorded in a machine activity report.

The total cash available for the drop shall also be available on the report in the machine activity report.

c. Manage Ticket Bins: The “Manage Ticket Bins” functionality shall be available to the operators to load a new pack into the terminal. Only one pack of lottery tickets shall be installed in each ticket bin. The information about the games currently loaded into the terminal shall always be available from the “Manage Ticket Bins” menu.

d. FTP: The ticket images for new games in the market, the art asset for idle screens, and the software updates need to be available on the central server. The device will be able to connect to the FTP folder automatically and download any new assets or software. The operator shall be able to test the terminal’s connection with the central server and initiate a download manually.

e. Restart Terminal: The operator will be able to securely restart the terminal from the admin menu when needed, instead of using a physical shut down button.

* Page No.: 11

3. Statistics: A statistic tab will be available in the admin menu to troubleshoot the terminal if needed. Meters for the game played, money and credit in, and tilt meters for doors and bill validator shall be available. The statistics about the memory currently being used by the software on the terminal shall also be available on the terminal.

4. Test: The options to test all the peripherals on the machine shall be available in the admin menu. The terminal's connection to the central server shall also be available to the operators and technicians.

* Indicates repagination, effective 09/30/22.

* Page No.: 12

5. Configuration: The configuration options need to be available to activate the terminal upon installation and configure the peripherals. The following configuration options shall be available.

a. Terminal’s Language Configuration: The default language of the terminal shall be configurable from the admin menu. This option shall configure the default language in the player mode.

b. Money Limits: The maximum cash allowed to be inserted into the terminal at once shall be a configurable parameter available in the admin menu. If the balance on the terminal is more than the set threshold on the admin menu, the bill validator shall not accept more cash.

6. Admin Default Language Configuration: The language of the tech menu shall be configurable from the admin menu.

* Page No.: 13

E. Logging and Error Handling: The following events and error conditions need to be logged at the terminal and need to be transferred to the central application for consolidated reporting.

1. Open Cash Door Event

2. Open Main Door Event

3. Credit In

4. Debit In

5. Cash In

6. Authorized Transaction

7. Unauthorized Transaction

8. Cash Drop

9. Software Error

10. Ticket Jam

11. Game Unloaded

12. Game Loaded

13. Ticket Purchased

14. Connection Failure

15. Configuration Changes

16. Software Updates

17. New Burster Programmed

18. Terminal Startup

19. Terminal Shutdown

20. Column Set Offline

21. Column Sold Out

F. Communication and Interruptions: Each terminal needs to be able to connect to the central server automatically to upload event data, download new game images, idle images, and software updates. The communication between the terminal and the central application shall be via a RESTful Web API. The connection needs to happen periodically throughout the day. Each message shall use a secure web socket layer, such as SSL. The messages shall be authenticated using the OAuth2 authentication method.

There shall not be any interruptions to the ability to purchase tickets or load new tickets if the terminal cannot connect to the central application. If the internet connection is down at the location, credit and debit card purchases shall not be available, but the operators shall be able to load new packs, and players shall be able to purchase tickets using cash.

In the case of a power outage, the terminal shall use a battery backup and continue the operation as normal. All transactions on the terminal need to be logged and retained. If the battery is low (i.e., 20% remaining) and the balance is zero, the device needs to go to a “tilt” mode and not allow any new balance to be entered through bill validator or card reader.

G. Central Web Portal: A central web portal needs to be available to the Lottery and site operators to view reports and perform user management. Other functionalities such as site and device and user management shall be available in the portal for the vendor to configure and support the operations in the market. The central web portal shall have functionality for managing sites, such as creating new sites, editing existing sites, or activating and deactivating a site.

Access to all sales and transaction data in the web portal need to be secured. Available data shall only be accessed by logging in with a secure password and based on the users’ permission level. Password policies, restrictions, and expiration methods shall be in place. The central application needs to also utilize two-factor authentication for logging into the system.

1. Permissions: The central web portal needs to be a hierarchical role-based system that controls user permissions and data access. The users shall be taken a homepage upon logging into the central web portal. The available options and data needs to be specific to the user's role. The following table shows the minimum user levels that need to be available in the central application.

Role Access

Vendor Users

• Site Management

• Device Management

• User management for Lottery and site users

• Reports

Lottery Admin Users • User management for Lottery and site users

• Reports

Lottery Report Users • Reports

Site Admin Users • User Management for the site

• Reports

Site Report Users • Reports

a. Vendor Users: The users with this access level shall be able to manage the site and lottery users, and have access to the reports for all the sites. These users shall be able to create and edit sites, devices, and users in the central web portal.

* Page No.: 14

b. Lottery Admin Users: These users shall be able to manage users and access reports. The information on the reports shall be aggregated data of all the sites in the market, and the users shall be able to filter to specific site data. Lottery Admin users shall also be able to create other users with Lottery access or create site-specific users.

c. Lottery Report Users: The Lottery Report users shall only be able to see the reports. The information on the reports shall be aggregated data of all the sites in the market, and the user shall be able to filter to site-specific data.

d. Site Admin Users: The Site Admin users shall only be able to see the options that pertain to their site, including report data. A Site Admin user shall be able to manage users for the site that the user belongs to.

e. Site Report Users: The Site Report users shall only be able to see reports with the data that pertains to their site.

2. Site User Management: The available features in the “User Management” section of the central application shall be:

a. Adding a new user

b. Editing an existing user

c. Locking or unlocking an existing user: locking a user shall prevent the selected user from logging in for a configured password lockout period. Unlocking a user shall allow the user to attempt to log in again without changing the password or waiting for the required lockout period.

d. The users of the central application shall have an option to reset their password if they forget the password.

Users who use the “Forgot Password” feature and successfully reset their password shall have their accounts unlocked automatically.

e. Activating or deactivating an existing user: deactivating a user shall prevent the user from accessing the web portal until reactivated. Activating a user shall allow the user to access the system using their credentials.

f. Resetting the password of an existing user

The following information shall be required to create a new user in the system.

a. First name

b. Last name

c. Unique email address for activating the user account and managing other account-related activities such as resetting the password.

d. Unique phone number capable of receiving SMS text messages for two-factor authentication.

In the process of creating a new user, the user role shall be assigned. A user for the Lottery entity shall either be assigned to “Lottery Admin” or “Lottery Report”.

H. Reports: The transactions and machine events need to be logged at the terminals and need to be transferred to a central server for auditing and reporting purposes. The information on the terminal shall be transferred to the central server frequently and when there is an internet connection. In case of a connection failure, the information needs to be saved on the terminal and be transferred to the central application once the connection is restored. On-demand consolidated reports shall be available via a web portal for the Lottery and site users.

1. Machine Activity Report: If the user has access to only one site, the information on the Machine Activity report shall be shown for their site by default. These users shall not have access to information about other sites. The Lottery user shall be able to select the Location and Device for which they want to view the report. The user shall be able to change the period to view the report for the previous day, week, or a date range. The default view shall be the previous day. The user shall be able to export the report in CSV, PDF, or Excel format.

* Page No.: 15

The following information needs to be presented on the Machine Activity Report.

a. Date/Time

b. Location (Location ID)

c. Location Name

d. Device ID

e. Activity (Transaction Type)

f. Other Columns to be populated if applicable, and based on the transaction type

i. Game ID

ii. Ticket Price

iii. Game Name

iv. Transaction Amount

2. Ticket Sales Report: If the user has access to only one site, the information on the Ticket Sales Report shall be shown for their site by default. These users shall not have access to information about other sites. The Lottery user shall be able to view consolidated sales reports for all sites, a selected collection of sites, or a particular site.

The user shall be able to change the period to view the report for the previous day, week, or a date range. The user shall be able to export the report in CSV, PDF, or Excel format.

The following information needs to be presented on the Ticket Sales Report:

a. Location (Location ID)

b. Location Name

c. Terminal Number

d. Game ID

e. Ticket Price

f. Game Name

g. Total Number of Tickets Sold (#)

h. Total Amount of Tickets Sold ($)

Each game shall be displayed as a line item. If there are more than four games active in the selected period on the terminal, all the active games shall be displayed for the selected period.

3. Money In Report: If the user has access to only one site, the information on the Money In report shall be shown for their site by default. These users shall not have access to information about other sites. The Lottery user shall be able to view consolidated sales reports for all sites, a selected collection of sites, or a particular site.

The user shall be able to change the period to view the report for the previous day, week, or a date range. The user shall be able to export the report in CSV, PDF, or Excel format.

The following information needs to be presented on the Money In Report:

a. Location (Location ID)

b. Location Name

c. Terminal Number

d. Total Cash in (per terminal)

e. Total Credit in (per terminal)

f. Count of Credit Transactions (per terminal)

g. Total Debit in (per terminal)

h. Count of Debit Transactions (per terminal)

i. Total Money In (Cash + Card)

* Page No.: 16

SPECIFICATIONS (CONT’D)

I. Data Center: The central servers need to be in the state of Ohio and be housed in a highly rated redundancy and security-focused datacenter. Additionally, the facility needs to be in compliance with SSAE18 SOC-1, SOC-2, ISO 27001, PCI DSS, and NIST 800-53PE standards and be HIPAA aligned. The data center shall provide a minimum of N+1 electrical and cooling with concurrent maintainability. The data center shall also utilize an early-detection fire suppression system such as VESDA as well as fire suppression by dry pipe sprinkler and gaseous systems. Security at the data center shall include perimeter security, video surveillance with a 90-day archive, biometric user authentication, individual access control to customer cabinets and cages using key-cards or locks with the option to add biometric options to cages. Government-issued photo ID shall be required to enter any data center facilities. The data center staff shall also provide 24x7 monitoring of security and fire systems. The data center shall provide CAT5E, COAX, single-mode, and multi-mode fiber, as well as Layer 2 switched infrastructure for automated cross-connects.

J. Backup/Failover Datacenter: Backup/Failover central servers need to be prepared and ready. Each data center shall be carefully selected to mitigate environmental risks such as flooding, extreme weather, and seismic activity. The data center shall be designed to anticipate and tolerate failure while maintaining service levels. Core applications shall be deployed to an N+1 standard so that in the event of a failure, there is sufficient capacity to enable traffic to be load-balanced to remaining sites. Physical access points to server rooms shall be recorded by CCTV, and images shall be retained according to legal and compliance requirements. Physical access shall be controlled at building ingress points by professional security staff utilizing surveillance, detection systems, and other electronic means.

Authorized staff shall utilize multi-factor authentication mechanisms to access data centers. Entrances to server rooms shall be secured with devices that sound alarms to initiate an incident response if the door is forced or held open. Data centers shall be equipped with automatic fire detection and suppression equipment. Fire detection systems shall utilize smoke detection sensors within networking, mechanical, and infrastructure spaces. These areas shall also be protected by suppression systems.

K. Backup Systems and Disaster Recovery: All of the data in the central application needs to be stored on redundant non-volatile storage media and be replicated to ensure data integrity, even in the event of multiple hardware failures and a disaster. The data shall be retained for any period of time as required for historical reporting capabilities.

Market backups shall use Zetta Backup to provide off-site encrypted backup transported over TLS encrypted pipelines. Systems under this scope of coverage could include SQL Database and Application server. Firewall configurations shall be configured to run as needed.

L. Hardware Feature Summary:

Size Compact (26.8”,13.7”, 23.8”)

Weight Approximately: 68 lbs. (depending on hardware configuration) (Note: actual unit weight is 97 lbs.)

Power Supply 120V/60Hz

Payment Methods Bill Acceptor

Credit/ Debit Card reader User Interface 15.6" LCD Touch Screen

Ticket Sizes 4" wide tickets 2" to 12" long tickets 10-12-point stock thickness

Ticket Capacity 4 slots, 1 booklet per slot, 300 fanfold tickets per book

Ticket Activation No

Bar Code Scanner (internal) Yes ADA Requirement Label only

Report Printer No

Receipt Printer No

Connectivity WIFI and Ethernet

Transaction Logging Yes

Admin Mode Yes

Communication Ports USB / Serial

* Eff. Date: 09/01/24

* Page No.: 17

PRICE SCHEDULE

Bid Item # Oaks Item # Description

Manufacturer and Manufacturer Item Number

Offered

Unit of Measure

(UoM) Unit Price ($USD)

* 1 38705 Instant Ticket Lottery Game Dispenser (with cash box only)

Schafer Systems, Inc.

Select 4 Product code

400006993 Each $6,700.00

* 2 38706

Instant Ticket Lottery Game Dispenser (with cash box and cashless transaction capabilities)

Schafer Systems, Inc.

Select 4 Product code

400006994 Each $7,280.00

* 3 38707 Floor mounted base unit to support Instant Ticket Lottery Game Dispenser

Schafer Systems, Inc.

Product code 400006996 Each $715.00

* 4 38708 Wall mounted bracket unit to support Instant Ticket Lottery Game Dispenser

Schafer Systems, Inc.

Product code 400006995 (Note: bracket installation not included)

Each $250.00

* 5 38709 Monthly Service Fee to support and maintain Instant Ticket Lottery Game Dispenser

Diamond Game Service Month $82.00 per machine

* Indicates an update in pricing and repagination, effective with all orders issued on or after 09/01/24.

* Page No.: 18

CONTRACTOR INDEX

CONTRACTOR AND TERMS: BID CONTRACT NO.: OT901421

0000258417 Schafer Systems (2018) Inc. DELIVERY: 30 Days A.R.O. – F.O.B. Destination 1000 Flag Road Adair, IA 50002 TERMS: Net 30 Days

CONTRACTOR'S CONTACT: Toll Free: 800-222-4489 Teresa J. Immel, Sr. Director, Sales and Marketing Telephone: 641-742-3266

FAX: 641-742-3624

E-Mail: teresa.immel@ssi-ia.com

Email purchase orders to teresa.immel@ssi-ia.com mailto:teresa.immel@ssi-ia.com mailto:teresa.immel@ssi-ia.com

Eff. Date: 09/01/24 Page No.: 19

SUMMARY OF AMENDMENTS

Amendment

Number Effective

Date Description

2 09/01/24

This amendment is issued to notify that as a result of mutual agreement between the State of Ohio and the Contractor, this contract is renewed for an additional 24 months, effective 09/01/24 through 08/31/26. This amendment is also issued to notify of updated pricing, effective with all orders issued on or after 09/01/24.

1 09/30/22

This amendment is issued to notify of updated pricing, effective with all orders issued on or after 09/30/22. This amendment is also issued to include updated language regarding the Prohibition of the Expenditure of Public Funds for Offshore Services; to add a Summary of Amendments page to the contract; and to repaginate.