Response to Offeror Questions document.docx

DOCX document 35 KB Posted

Attached to
License Plate Prod, Centralized Fulfillment Cntr, Print On Demand Sys.
Solicitation number
25RFP14522
Issued by
Harding County, South Dakota

About this file

The document is a "Response to Offeror Questions" file for South Dakota's Department of Revenue Request for Proposal (RFP #25RFP14522) concerning license plate production and distribution services. The RFP seeks a vendor to manage comprehensive license plate production, centralized fulfillment, and print-on-demand systems for 68 county offices and the Pierre Department of Revenue office. The contract will cover approximately 1.6 million registered vehicles annually, with projected license plate production between 340,000 to 1.6 million plates per year from 2026-2031. Optional site visits are scheduled for May 6-16, 2025, with a proposal submission deadline of August 4, 2025. The anticipated contract term is 10 years, running from September 2025 to March 2036, with a potential 5-year extension.

The current license plate production occurs through Pheasantland Industries at the State Penitentiary, and the new vendor must be prepared to relocate production equipment if a new prison facility is constructed. Vendors are responsible for providing all necessary equipment, including thermal transfer printers, network infrastructure, servers, and controllers, and must maintain a secure fulfillment center within South Dakota. The RFP does not specify set-aside designations or explicit budget ranges, but vendors will be responsible for all equipment, production, and distribution costs. The state reserves the right to negotiate terms with the highest-ranked vendor and requires comprehensive technical capabilities, including vulnerability scanning, single sign-on integration, and compliance with state IT security standards. Vendors must also maintain cyber liability insurance and implement robust data security protocols.

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Other files

File Type Posted
Appendix F - Security and Vendor Questions v3.1 Production.docx DOCX document
RFP Document.pdf PDF
All Appendices but F.pdf PDF
RFP Document.pdf PDF
All Appendices but F.pdf PDF
Appendix F - Security and Vendor Questions v3.1 Production.docx DOCX document

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Text version

Question

RFP Reference #
Question
1.
3.1
Section 3.1 stipulates an implementation timeline of 6 months. It is respectfully brought to the attention of the State that this would only be achieved by an incumbent vendor who has equipment already in place at the Pheasantland (PI) facility. Would the state please allow for an 18-month implementation timeline, which is realistic based on the equipment and software required and is also in-line with requirements from similar projects in other Jurisdictions.

The current implementation timeline is 6 months because the services provided under the existing contract expire on March 1, 2026. Vendors are encouraged to stick to this timeline where possible, but if needed can provide alternate implementation timelines and justify those timelines. The State’s main objective is to avoid disruptions in service or any shortages of license plate inventory.

2.
N/A
The RFP calls for the following equipment/services/software: -
a.License plate manufacturing equipment.
b.Fulfillment of license plate direct mail with matching registrations.
c.Print On Demand (POD) registrations at field offices.

It is respectfully suggested that these three items belong in separate RFPs in that bundling them together severely restricts or eliminates competition, almost certainly to the benefit of an incumbent vendor only.

The scope of this RFP has been extended significantly from its original form in 2012 to the point where it is now anti-competitive. It is respectfully requested that the RFP in its current form be cancelled and issued as separate RFPs (possibly three) that would foster competition rather than limiting responses to the incumbent vendor only.

Vendors are permitted to work with subcontractors for the services that are outside of their own business model. The RFP is soliciting services from two existing contracts that expire at the same time and are related services.

3.
N/A
Would the State please extend the deadline for submitting questions by 2 weeks to allow potential vendors to submit questions based on the findings of their visit to PI?

No, the State is unable to extend the inquiries deadline.

4.

Would the State please consider visits to the DMV and field offices in order to gain full insight into all three components of the RFP, namely POD, and fulfillment as well as the plate manufacturing piece. At present the provision of a visit only encompasses insight into plate manufacturing.

Please reach out to Morgan Maier to coordinate visits to the county or field offices. The fulfillment center is owned and operated by the current vendor and will not be open for visits.

5.
3.3.2.2
Section 3.3.2.2 calls for two Ink jet printers each capable of printing 3,000,000 plates per year when the maximum annual requirement appears to be 1.6 million plates in 2030. Could the state confirm the required annual capacity of the printers.

The required annual capacity of the printers is 3,000,000 plates per year. The 1.6 million plates referred to in Section 3.3.2.2 are plate pairs rather than individual plates.

6.

When during the contract would the state expect to use the 3,000,000 annual capacity stipulated for the printers?

See answer to question 5.

7.

It is respectfully pointed out to the State that ink jet printers are typically made for continuous/daily use and both printers that would be installed at PI would require daily use if costly maintenance issues and breakdowns were to be avoided. Would the state consider thermal transfer printers which are much better suited for the usage this project will require?

No, the required machinery remains as stated in the RFP.

8.

Would the state accept one ink jet printer or a thermal transfer printer with an annual capacity in excess of 3,000,000 provided the vendor has another such printer available at its DR site?

No, the State requires two inkjet printers as stated in the RFP.

9.

One thermal transfer printer is capable of printing the maximum annual requirements of this RFP would the state therefore consider thermal transfer printing technology as it is better suited to start stop printing that will be required for any contract arising from this RFP.

Answered in Questions 7 & 8 above.

10.

Section 3.3.2.3.1 indicates a blanking line capacity of 3000 to 4000 plates per hour and a requirement for two simultaneously operating blanking lines which would give an hourly capacity of 6,000 to 8000 plates per hour. Would the State please provide hours per day during which inmate labor will be available and days per year so that accurate usage calculations and maintenance requirements can be made for the equipment.

Production takes place during a 7-hour day, 5 days per week. It is not possible to state the days of the year that inmate labor will be available to produce plates because of unforeseen circumstances such as lock downs or staff leave.

11.

A single blanking line can fulfill the States annual requirements in approximately 100 days (assuming 4 working hours per day only) during the States highest volume year (approximately 1.6 million license plates). With this in mind, how long will the chosen vendor have to complete the second blanking line?

The Vendor must provide two functional blanking lines at the time set for production to begin under the contract.

12.
3.3.2.3.1
Section 3.3.2.3.1 states that 2 blanking lines are needed with each producing 3,500-4,000 Plates/Hour. With each line producing 3,500 plates per hour, PI will have the yearly reissue volume of 1.6M plates blanked in 76 working days, and the yearly standard volume of 440k plates blanked in 21 working days. Is the intention of the state to only have the blanking lines running for approximately 4 weeks in a standard year? Is it the intention of the state to require the equipment as stated in the RFP to manufacture only the small volumes of plates as nominated in the RFP, or will the State consider an alternative equipment offering that will provide a more cost effective solution that maximizes the effectiveness of taxpayers’ dollars.

The state does not intend to have blanking lines running 4 weeks per year. The equipment required is stated in the RFP.

13.
3.3.2.6 & 3.3.2.8
Sections 3.3.2.6, and 3.3.2.8: - would the state please provide for the State-owned equipment the age of the equipment and maintenance logs for each piece?

Maintenance is performed on the equipment every 6 months by the current vendor on all equipment in the shop. Each piece of State owned equipment is at least 40 years old.

14.
3.3.2
Per section 3.3.2: would the State please confirm that the current vendor will be responsible for removing the equipment that they own should a new vendor be chosen, and that the current vendor will be cooperative during the transition period?

The current vendor would be responsible for removing their own equipment. Any Vendors involved should work together to complete the transition in a professional manner.

15.
3.3.5
3.3.5:- would the State please confirm the maximum daily license plate order size for passenger size and motorcycle size license plates?

In March of 2023, 274,091 plates were manufactured. In that month, the highest single-day production volume was approximately 20k plates.

16.
4.1
Section 4.1 requests several project artifacts that would be generated prior to, and updated during a live project. Would the State accept examples of these plans and schedules from projects either in progress or previously completed by the potential vendor as only the incumbent vendor can provide the required documentation for this project prior to engagement with the State.

The State requires new documentation that applies to this project.

17.
1.1
Section 1.1 States that vendor must be prepared to move license plate production equipment to any new facility that may be constructed to replace the State Penitentiary. Would the State confirm if the vendor is responsible for moving the state-owned equipment in addition to the vendor owned equipment?

If the vendor plans to use the state-owned equipment, the vendor would be responsible for moving that equipment.

18.
1.1
Section 1.1: - Equipment moves of this nature are costly. How is the expense of this move to be incorporated into vendor pricing or will the State agree a price for the move with the vendor at the time the move is planned?

If a new prison is built and the print shop needs to be moved to a new facility, a separate agreement may be entered into at a later date. It is not expected that the vendor incorporate moving costs for the possible new prison into the pricing for this proposal.

19.

Moving blanking lines and printers is expensive and to expect that this move is paid for solely by the vendor, favors the incumbent vendor, as their cost for the move has already been amortized over the current contract period.

Refer to the answer for question 18.

20.
2.14
Section 2.14 requires the vendor to obtain written consent from the State before using subcontractors. Can the State confirm if submitting our bid with subcontractors implies consent, or is there another process we need to follow before bidding?

Vendors may prepare bids with the use of subcontractors if clearly identified in the Vendor’s proposal. If the Vendor plans to use subcontractors, it must establish which services subcontractors may perform. Besides making the vendor’s use of subcontractors abundantly clear in the proposal, no other process is required prior to bidding. All subcontractors must meet the State’s contractual Vendor requirements.

21.
3.3.2.2
Section 3.3.2.2 states that 2 inkjet printers must be capable of printing 3,000,000 license plates per year. Can the State verify the number of working hours PI will have during the year to allow for calculation of the time to print the license plates?

Refer to answer for question 10 above.

22.
3.3.2.8
Section 3.3.2.8 states that the Vendor must replace defective State-owned equipment that cannot be repaired. Will the Vendor be required to replace this at no cost to the state or will the state be reimbursing the Vendor for the cost of the equipment? Will the vendor maintain ownership of this equipment if it needs to be replaced at the vendor’s expense?

The Vendor is responsible for replacing defective State-owned equipment if it cannot be repaired. The Vendor will maintain ownership of equipment replaced by the Vendor.

23.
3.3.3.1.4
Section 3.3.3.1.4 states that all sheeting must be visually inspected before, during, and after printing. Can the State confirm that this inspection will be and is currently done by PI staff?

The sheeting is inspected immediately prior to, during, and after printing by PI staff. The Vendor is responsible for providing quality control guidelines.

24.
3.3.5
Section 3.3.5 states that the production output must meet large daily capacity demands during peak plate months. Can the state please confirm what the largest daily capacity demands are?

In March of 2023, 247,091 plates were manufactured. In that month the highest single-day production volume was approximately 20,000 plates.

25.
3.4.1.1.1
Section 3.4.1.1.1 states the Vendor shall supply at least 340 thermal transfer printers. If additional printers are required by the state will these need to be provided at no cost to the State? If so, who determines the need for additional thermal printers?

Thermal printers are included as part of the contract and should be factored into the cost sheet. Additional printers shall be provided at no additional cost to the State. The State will initiate any request for additional printers, with opportunity for input from the Vendor.

26.
3.4.1.3
Section 3.4.1.3 states the vendor will provide training if requested by the county personnel. Can the State please confirm how many training visits per year were provided by the vendor during the current contract in addition to the 2 annual visits?

The current vendor provided initial training at each office during setup and implementation. Follow-up training is conducted upon request using in person visits, remote sessions, and/or documentation revisions as appropriate. Additional training has been provided upon request as processes and equipment changed over time.

27.
3.4.4
Section 3.4.4 states the State is interested in options to run the print-on-demand system through a non-state server. Can the State confirm if this is a requirement, and shall be considered as part of the Vendors response?

This is not a mandatory requirement.

28.
Appendix C, Section F
Appendix C Section F states the clear overlaminate must be applied in-line with the UV Ink printing process. We understand this is how the current manufacturing process is done today in the facility, but would the state be open to a different option that has an additional, separate step and piece of equipment to apply the overlaminate not in-line with the UV Ink printing process as called out in the RFP?

The State is open to this possibility. The Vendor is encouraged to provide a cost sheet for both this manufacturing process and the current/requested manufacturing process.

29.
Appendix C, Section A.1.b
Appendix C Section A.1.b states a retained retroreflective value for a rear license plate. Please clarify, as the State currently issues pairs of passenger plates, that the required retained retroreflective value for a rear plate would also be the requirement for the front plate.

Yes, the requirement applies to both front and rear plates.

30.
Appendix C, Section B.3
Appendix C Section B.3 states that the size of the warranty marks is to be 1.125 inches in diameter. The current security mark being utilized by the state is 0.75 inches in diameter. Can the state verify that as part of this contract the intention is to migrate to a larger security mark that is more readily identifiable by law enforcement?

This was an oversight in the RFP. The State would like to remain at the .75 inch security mark.

31.
Appendix C, Section 4
Appendix C Section IV states thermal transfer ribbons. Can the state please confirm that thermal transfer ribbons and thus thermal transfer printing can be used in lieu of a digital inkjet printing system?

This was an oversight. The State expects digital inkjet printing.

32.

Please confirm that all equipment must be new as allowing the use of used equipment currently in place and supplied by the incumbent vendor will favor the incumbent rendering RFP process anti-competitive.

The contract does not assume new or used equipment. Please detail the equipment proposed and factor that equipment into the cost estimate for the proposal.

33.

Given the small license plate production volumes and the high cost, redundancy and necessary/ongoing equipment maintenance needs, would the state alternatively consider third party sourcing for all South Dakota Plates?

Not at this time.

34.
Section 3.4.1.1.2
Section 3.4.1.1.2 states that the vendor is responsible for tracking the inventory for the POD forms, ribbons and finished license plates at the county offices for distribution. Could the State clarify if the Vendor is responsible for purchasing the POD forms and Ribbons and to include this in their costing? Or are these items provided by the State, and the vendor is only responsible for tracking and providing the 60-90 day inventory?

The Vendor is responsible for purchasing these supplies and should include them in its cost proposal. The items are not provided by the State.

35.
Section 3.3.3.2
Section 3.3.3.2, “Plate Backing,” states that the vendor is responsible for providing 0.022” aluminum for the manufacture of license plates. Given that aluminum is a globally traded commodity subject to price fluctuations, would the State consider incorporating an Aluminum Price Adjustment Clause into the agreement, allowing for adjustments up or down on a quarterly basis in alignment with prevailing market prices?

Yes, the State is open to considering cost reduction methodologies. Please propose additional cost sheet(s) for the State’s consideration.

36.

Inkjet printers typically have requirements around airflow and exhaust that is not required for thermal transfer printing. If the current room being used by PI for printing requires an upgrade to the HVAC system to accommodate the change to digital printer, will this cost be covered by the State, PI or the Vendor?

The current HVAC system was installed approximately within the last 5 years. The printing room is a closed, climate-controlled room with a dedicated HVAC system and dehumidifier.

37.
3.3.3.1.2.2
Would the state consider sheeting with security marks and without warranty marks? With modern automation, any vehicle data could be tied back to a manufacturing run, date, and lot number.

The State is open to this possibility. Please provide examples of the proposed manufacturing process and include a relevant cost sheet.

38.
3.3.1.6
Would the state be able to provide a tentative timeline on the plans for a new prison facility including the general location of the facility?

A State workgroup is currently vetting construction sites and plans, but it is not currently possible to accurately predict the timeline or location.

39.
3.4.5
Could the state further elaborate on the required integration with 605 drive for in-office printing? Is the state requesting this interface to provide data on raw consumables, printed materials, or both?

The required integration with 605 Drive is for the print on demand system. Data collected should track when a plate print order is received, when a plate is printed, and when there are any issues with printing.

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