RFP 260000000882 - Schedule A - Statement of Work.docx

SCHEDULE A - STATEMENT OF WORK

Request for Proposal No. 260000000882 Michigan State Lottery (MSL) Advertising Services This schedule identifies the anticipated requirements of any Contract resulting from this RFP. The term “Contractor” in this document refers to a bidder responding to this RFP, as well as the Contractor who is awarded the contract. The term “Bidder” is used to identify where specific responses to the RFP are required.

The Contractor must respond to each requirement or question and explain how it will fulfill each requirement. Attach any supplemental information and appropriately reference within your response.

IMPORTANT NOTE TO CONTRACTORS/BIDDERS: There are specific requirements for which acceptance must be simply acknowledged through a checkbox(es), and others that require further explanation. Click the appropriate checkbox and complete the entries as appropriate.

BACKGROUND

The Lottery is a major revenue producer for the State of Michigan with headquarters located in Lansing, Michigan. Lottery’s statutory mandate is to maximize net revenues for the State consistent with the general welfare of the people. The Lottery provides quality entertainment to the public consistent with statutory mandates and maintains its integrity by projecting a positive image. Under the statutory mandate, the Lottery oversees games of chance such as instant games, pull-tab games, draw games, and online games. Current Lottery games offered, and related information can be found on the Lottery’s website at www.michiganlottery.com.

Note the Following:

1. The State’s Fiscal Year (FY) runs from October 1 – September 30.

2. Lottery’s Advertising budget for each FY is subject to annual appropriation by the State’s Legislature.

3. Delegation of funding is at the sole determination of Lottery.

4. Estimated Contract Value:

Contract Base Years (3-years): $135,000,000.00 Option Year Renewal (4, 1-year): $45,000,000.00/Year

SCOPE

The goal of this procurement is to obtain marketing, promotion, and advertising services which will maximize net proceeds from the sale of lottery tickets. In addition, the Lottery, as a State agency, must ensure that its advertising and promotional efforts are in good taste and serve to confirm the credibility and integrity of the Lottery.

The Contractor will be responsible for supporting the marketing strategy and plan for Lottery products sold in-store (Retail) such as instant games, pull-tab games, and draw games as well as online by providing expert creative, marketing strategy and planning, media planning and buying, trafficking, production, personnel, and/or subcontractors. The Contractor will work in tandem with various Lottery marketing staff to assist in planning, designing, and execution of the Lottery's marketing activities.

The distribution of marketing/advertising expenditures is subject to change depending on the Lottery's market strategies, requirements and needs during any given fiscal year. In past years, the Lottery has implemented programs involving the following strategies and activities:

1. Second chance sweepstakes

2. New game introductions

3. Coupon promotions

4. Sports sponsorships

5. Event activations

6. Seasonal campaigns

7. Bonus payout promotions

8. Game shows

9. Product enhancement campaigns

10. Retailer incentives

11. Product maintenance campaigns

12. Winner awareness campaigns

13. Jackpot awareness campaigns

14. “Umbrella” product campaigns It is incumbent upon the Contractor to develop programs and promotions that, in the view of the Lottery, warrant the expenditure of funds. The following list outlines the allocation of general advertising funds in FY25:

*Includes research, public relations expenditures, miscellaneous advertising production, and miscellaneous promotional expenses. Some of these expenditures are made through the Contractor; others are handled directly by the Lottery.

The Lottery reserves the option to modify strategy or budget allocations as the market warrants and in response to changes to legislative appropriations. The Lottery must always retain final authority for determining allocations of funds, strategies, plans and campaigns.

OBJECTIVES

1. Maximize sales of all Michigan Lottery games;

2. Increase public awareness of iLottery while incorporating responsible gaming practices;

3. Maintain the public trust and confidence in the Lottery and its operations;

4. Ensure lottery advertising and promotional efforts are in good taste and serve to confirm the credibility and integrity of the Lottery.

5. Plan, develop, and execute in a timely manner with respect to marketing, promotion, and advertising programs;

6. Effectively create strategies and campaigns to stimulate interest, excitement, and participation in iLottery games

7. Achieve maximum effectiveness and efficiency in expenditures for marketing services and deliverables

1. Requirements

1.1. General Requirements

The Contractor must support the growing demands of the Lottery’s business. The Contractor must provide deliverables, services, and staff, along with all things necessary to the performance of work that will include but is not limited to items set forth below:

A. Marketing Strategy

1. Aid in conducting an in-depth business analyses including comparisons with retail consumer packaged goods and other state lotteries.

2. Provide extensive assistance in the development of the Lottery's annual marketing plan, including a product-by-product strategy, product sales goals, key activities, time frames, and estimated budgets.

3. Counsel the Lottery on all marketing, promotion, and advertising-related decision making including new product development, game enhancements, and sales promotions.

4. Utilize research information to identify and evaluate market and sales development opportunities.

List all exception(s):

Bidder must provide their plan for meeting the Marketing Strategy requirement above:

B. Media

1. Develop individual media plans for projects and promotions identified in the annual marketing plan. Detailed rationale, time frames, and budgets must be included to support all elements in the plan.

2. The Contractor is required to prepare media plans for all individual media campaigns. No later than two weeks prior to a media buy, the Contractor must provide copies of the negotiated buy (including value-added opportunities submitted by stations free of charge) to the Lottery for approval consideration. Once these media plans are reviewed and approved by Lottery, the Contractor will proceed with developing individual media buys based on the media plans. The Contractor is required to submit these media buys to the Lottery Program Manager for review and approval.

3. Provide in-depth evaluation of all media vehicles (radio, television, print, outdoor, digital, etc.) available to the Lottery throughout the State as requested by the Lottery.

4. Inform the Lottery of and evaluate as requested any special or unique media placements or opportunities.

5. Buy and negotiate radio and television airtime, publication space, outdoor and transit space, and any other media used for advertising and promotions projects in accordance with the specific guidelines established by the Lottery for each medium. Guidelines include, but are not limited to: demographic parameters, rating point goals, viewability, programming restrictions, daypart goals, audience-delivery goals, make-good procedures.

6. Monitor performance and make real-time adjustments to live campaigns as needed. Monitor all reporting systems to ensure campaigns are running correctly and impressions bought are delivered.

7. Conduct post-buy review on the placement of media and the effectiveness of media buys in terms of cost, reach, frequency, continuity, and message dispersion requirements, etc. The Contractor must use findings to refine current and future media plans. No later than two months following the end of each media buy, the Contractor must submit this post analysis report to the Lottery Program Manager.

8. Cooperate and work in tandem with third-party media auditing services to periodically examine and audit advertising released through the various media to verify that quality, timing, position, and distribution are consistent with the approved plans, guidelines, and industry standards. If, for any reason, the auditing service finds these conditions are not met, it is the Contractor’s responsibility to rectify the situation.

List all exception(s):

Bidder must provide their plan for meeting the Media requirement above:

C. Creative

1. Develop individual creative briefs for projects and promotions identified in the annual marketing plan. The briefs must outline campaign Key Performance Indicators, target audience, tone, unique selling propositions, budgets, and other creative requirements.

2. Responsible for the conceptual development of multi-media promotional programs as identified in the annual marketing plan. At least three creative alternatives must be presented for consideration unless otherwise directed by the Lottery. Generally, one of the three concepts is taken to final art or script, which is generally routed for review and comment through necessary Lottery staff. Once changes are made and reviewed, the concept will receive final approval from Lottery to move forward.

3. Create and direct the development of comprehensive advertising materials to support approved promotional programs. Materials include, but are not limited to, video, audio, point-of-sale, out-of-home, digital, advertising specialties, printed brochures and other collateral materials.

List all exception(s):

Bidder must provide their plan for meeting the Creative requirement above:

D. Production

1. Responsible for the timeliness and quality of production of all marketing, advertising and promotion materials including, but not limited to, point-of-sale materials, collateral, brochures, advertising specialty items and direct mail.

2. Responsible for arranging the packing and shipping of printed materials to individual Lottery retailers or Lottery warehouses as required.

3. Direct and coordinate video and audio asset production and review all aspects including budgets, casting, music, and special effects with the Lottery. Responsible for film shooting, recording, editing, and post-production. Deliver both rough cuts and finished spots to the Lottery for final approval with sufficient time allowed for necessary changes, if required.

List all exception(s):

Bidder must provide their plan for meeting the Production requirement above:

E. Traffic

1. Utilize and maintain a secure Internet-based asset management solution to view and transfer files between the Contractor, the Lottery, and other Lottery vendors. The solution must also facilitate automation of the Contractor review process to route approvals, review and mark up production materials, and ensure that Lottery approvals are properly obtained, and audit trails are logged to meet Contract compliance. Asset management services are the sole expense of the Contractor.

2. Transfer all approved advertising materials, with appropriate traffic instructions, to media vendors in time to meet program deadlines.

3. Utilize and maintain a real-time digital ad serving solution that will allow the Contractor to manage digital placements and track ad performance including impressions, clicks, conversions, ad spending, viewability, etc.

List all exception(s):

Bidder must provide their plan for meeting the Traffic requirement above:

F. Promotional/Sponsorship Agreement Evaluation and Administration

1. At the State’s direction, execute approved promotional or sponsorship agreements with third party promoters on behalf of the State. These agreements will be jointly identified and agreed upon. The Contractor may be required to cooperate with the State to assess potential opportunities or offers, and to examine and audit promoters’ proof of performance under an agreement. In instances where the State maintains direct management of an agreement, the Contractor may be required to perform an administrative role limited to project accounting and billing.

List all exception(s):

Bidder must provide their plan for meeting the requirement above:

G. Market Research Procurement and Evaluation

1. At the State's direction, execute or procure through third-party providers market research services on behalf of the State. These research projects will be jointly identified and agreed upon. The Contractor may be required to cooperate with the State to draft requests for research proposals, recommend potential research partners, evaluate competitive bids and provide recommendations for third-party providers based on the best value to the State. From time to time the Contractor may also be required to design and execute certain market research projects directly without the use of third-party providers.

List all exception(s):

Bidder must provide their plan for meeting the requirement above:

H. Optional Use Professional Services

1. Optional Use Professional Services may be requested, as needed during the Contract period.

2. Optional Use Professional Services will be priced per project.

3. Optional Use Professional Services are identified as being of interest to the Lottery and the Lottery anticipates acquiring such from the Contractor. However, the Lottery may choose not to exercise such an option and makes no commitment in this RFP to the quantity or timing for acquisition.

4. Contractor must describe all optional use services and must price them separately in the pricing proposal.

List all exception(s):

Bidder must provide their plan for meeting the requirement above:

1.2. Training

Responsible Gaming Prior to performing work for Lottery, Contractor will ensure that employees have reviewed all guidelines as directed by Lottery. Responsible Gaming guidelines will be reviewed once per year and Contractor will be required to ensure employees participate in Responsible Gaming training as directed by Lottery.

List all exception(s):

Bidder must explain its training capabilities and any training that is included in its proposal:

1.3. Specific Standards

IT Policies, Standards and Procedures (PSP) Contractors are advised that the State has methods, policies, standards and procedures that have been developed over the years. Contractors are expected to provide proposals that conform to State IT policies and standards. All services and products provided as a result of this RFP must comply with all applicable State IT policies and standards. Contractor is required to review all applicable links provided below and state compliance for the publicly available PSPs in their response. Non-public PSPs are available to bidders under NDA.

Public IT Policies, Standards and Procedures (PSP):

DTMB - IT Policies, Standards & Procedures (michigan.gov)

List all exception(s):

Acceptable Use Policy To the extent that Contractor has access to the State’s computer system, Contractor must comply with the State’s Acceptable Use Policy, see 1340.00.130.02 Acceptable Use of Information Technology (michigan.gov). All Contractor Personnel will be required, in writing, to agree to the State’s Acceptable Use Policy before accessing the State’s system. The State reserves the right to terminate Contractor’s access to the State’s system if a violation occurs.

List all exception(s):

SOM Digital Standards All software items provided by the Contractor must adhere to the State of Michigan Application/Site Standards which can be found at SOM Applications and Site Standards (michigan.gov).

List all exception(s):

Mobile Responsiveness The Contractor’s Solution must utilize responsive design practices to ensure the assets are accessible via a mobile device.

List all exception(s):

Bidders must provide a list of all mobile devices that are compatible with the Solution. Additionally, Bidder must provide list of features that can be performed via a mobile device either in this response box.

ADA Compliance The State is required to comply with the Americans with Disabilities Act of 1990 (ADA) including its accessibility standard for websites, applications, content and documents. All Contract Activities created, provided, or made available by Contractor under this Contract in a digital format, including but not limited to, websites, applications, software, mobile applications, text, images, sounds, videos, controls, animations, links, and documents (including files in the following formats: PDF, word processing, presentation, and spreadsheet) must comply with the accessibility standards provided in the Digital Accessibility Standards, located at https://www.michigan.gov/standards.

Contractor must provide a description of conformance with the Digital Accessibility Standards by providing a completed Accessibility Conformance Report (ACR), such as an Information Technology Industry Council (ITIC) Voluntary Product Accessibility Template ( VPAT®), or equivalent for the Solution. If the Solution is comprised of multiple products, an ACR or VPAT must be provided for each product. In addition to the ACRs, Contractors may include a verification of conformance certified by an industry-recognized third-party. If the Contractor is including any third-party products in the Solution, Contractor must obtain and provide the third-party ACRs or VPATs as well.

Each ACR or VPAT must state how the product meets the specifications. All “Not Applicable” (N/A) responses must be fully explained. Contractor must address each standard individually and with specificity; and clarify whether conformance is achieved throughout the entire product (for example – user functionality, administrator functionality, and reporting), or only in limited areas. A description of the evaluation methods used to support conformance claims, including, if applicable, any third-party testing, must be provided. For each product that does not fully conform to the Digital Accessibility Standards, Contractor must provide detailed information regarding the plan to achieve conformance, including timelines.

List all exception(s):

Bidder must acknowledge their agreement with this section and provide details for how they will meet the requirements:

1.4. User Type and Capacity

Contractor must be able to meet the expected number of concurrent Users listed above for their file sharing site.

List all exception(s):

Bidder must explain how it will be able to support the expected number of concurrent Users. Bidder must also explain whether the Software can scale up or down without affecting performance:

Bidder must provide details regarding latency response time for (i.e., Generate Page Load, standardized reporting, ad hoc reporting):

The Bidder must identify what network connectivity or equipment will the State be required to have to meet the expected latency response time?

1.5. Access Control and Authentication

The Contractor’s Solution must comply with the policy described in the State of Michigan Administrative Guide (1340.00.020.08 Enterprise Identity and Access Management Services Standard (michigan.gov).

To support federation with Lottery's Solution, the Contractor’s Solution must support SAML, OpenID or OAuth federated identity protocols.

Software running within the State's internally managed IT environment may be suitable for integration with the State’s Active Directory services as identified in the 1340.00.020.08 standard.

List all exception(s):

Bidder must explain how they will meet the requirements for Access Control and Authentication:

1.6. End-User Operating Environment

The SOM IT environment includes FedRAMP authorized major cloud providers and on-premises market leading virtualization environments, with supporting platforms that includes enterprise storage, monitoring, and management running in house and in cloud hosting provides.

Contractor must accommodate the latest browser versions (including mobile browsers) as well as some pre-existing browsers. To ensure that users are able to access online services, Contractor must ensure applications and websites display and function accurately in, at minimum, the two most recent major versions of the following browsers, without reliance on special plugins or extensions:

· Google Chrome

· Microsoft Edge

· Firefox

· Safari Contractor must support the current and future State standard environment at no additional cost to the State.

List all exception(s):

1.7. Required Functionality Relating to Data Retention, Disposal, and Retrieval The State has legal obligations to retain, dispose, and retrieve State Data along with obligations to manage and secure State Data. To meet these obligations, the Solution must allow the State to:

1) retain all data for the entire length of the Contract.

2) delete its data or request the deletion of its data, even data that may be stored offline or in backups.

3) transfer its data back to the State or to a new vendor or new solution.

4) transfer its data to the Archives of Michigan as may be required by a retention and disposal schedule.

5) retrieve data, even data that may be stored offline or in backups.

Except as otherwise stated in the Contract, Contractor will not dispose of, delete, or destroy State Data without the prior written approval of the State.

List all exceptions:

Bidder must review and explain how the data retention, disposal, and retrieval requirements will be met by the solution and describe its data management capabilities (storage limitations, duration, etc.). If the Solution does not allow the State to perform these activities itself, the bidder must explain how it will support the State’s compliance with these requirements.

2. Service Requirements

2.1. Delivery

The Contractor must explain the transportation method (e.g., UPS, FedEx, Contractor fleet, or other third-party carrier) it intends on utilizing in delivery of the Contract Activities.

2.2. Packaging and Palletizing

Packaging must be optimized to permit the lowest freight rate possible while adhering to Lottery shipping, receiving, and warehousing specifications. Shipments must be palletized whenever possible using pallets specified by Lottery.

List all exceptions:

Bidder must provide their plan for meeting the requirements above:

3. Acceptance The following criteria will be used by Lottery to determine Acceptance of the Contract Activities:

Before approving invoices for payment, the Program Manager will review deliverables, review project hours and team members' involvement in the project, and review invoices for pass through expenses to verify costs are accurate and do not reflect markups. The Program Manager will also ensure Contractor's invoices include detailed information for the project.

The Lottery will pay the Contractor for its costs incurred related to the deliverables plus mark-up based on the Contract rates. The Lottery will reimburse the Contractor only for services and/or merchandise authorized by Lottery, approved by the Program Manager, and provided for in the purchase order. Payment will not exceed the amount approved by authorized estimate without submission and approval of a revised estimate. All invoices must reflect actual work done.

List all exception(s):

4. Staffing

4.1. Contractor Representative

The Contractor must appoint one individual specifically assigned to State of Michigan accounts, who will respond to State inquiries regarding the Contract Activities, answer questions related to ordering and delivery, etc. (the “Contractor Representative”).

The Contractor must notify the Contract Administrator at least 14 calendar days before removing or assigning a new Contractor Representative.

List all exception(s):

Bidder must identify its Contractor Representative:

4.2. Contract Administrator

The Contract Administrator for each party is the only person authorized to modify any terms of this Contract, and approve and execute any change under this Contract (each a “Contract Administrator”):

Marissa Gove 320 S Walnut St.

Lansing, MI 48933 Govem1@michigan.gov 517-449-8952 [Name] [Street Address] [City, State, Zip] [Email] [Phone]

4.3. Program Manager

The Program Manager for each party will monitor and coordinate the day-to-day activities of the Contract (each a “Program Manager”):

Tim Shafer 101 E. Hilldale St.

Lansing, MI 48933 Shafert@michigan.gov 517-335-1509 [Name] [Street Address] [City, State, Zip] [Email] [Phone]

4.4. Customer Service Number

The Contractor must specify its number for the State to contact the Contractor Representative. The Contractor Representative must be available for calls during the hours of 7:00 am to 6:00 pm ET.

List all exception(s):

Bidder must identify its Customer Service Number:

4.5. Work Hours

The Contractor must provide Contract Activities during the State’s normal working hours Monday – Friday, 7:00 am to 6:00 pm ET and possible night and weekend hours depending on the requirements of the project.

List all exception(s):

4.6. Key Personnel

The Contractor must appoint a team that possess talent and expertise in the marketing and advertising disciplines referenced throughout this RFP. The team (“Key Personnel”) will be directly responsible for the day-to-day operations of the Contract. Key Personnel must be specifically assigned to the State account, be knowledgeable on the contractual requirements, and respond to State inquiries within 24 hours.

Contractor’s Key Personnel must be available during the following times: Monday – Friday, 7:00am – 6:00pm ET, and possible night and weekend hours depending on the requirements of the project.

At a minimum, Contractor must specifically provide the following Key Personnel positions:

· Experience managing and directing major advertising accounts

· 50% time commitment to the Lottery account

· Experience supervising advertising projects

· 100% time commitment to the Lottery account

· At least one position with 100% time commitment to the Lottery account

· At least one position with 50% time commitment to the Lottery account

· At least one position with 20% time commitment to the Lottery account

· 20% time commitment to the Lottery account

· At least one position with a minimum of 20% time commitment to the Lottery account

· At least one position with a minimum of 20% time commitment to the Lottery account

The State has the right to recommend and approve in writing the initial assignment, as well as any proposed reassignment or replacement, of any Key Personnel. Before assigning an individual to any Key Personnel position, Contractor will notify the State of the proposed assignment, introduce the individual to the State’s Project Manager, and provide the State with a resume and any other information about the individual reasonably requested by the State. The State reserves the right to interview the individual before granting written approval. In the event the State finds a proposed individual unacceptable, the State will provide a written explanation including reasonable detail outlining the reasons for the rejection. The State may require a 30-calendar day training period for replacement personnel.

Contractor will not remove any Key Personnel from their assigned roles on this Contract without the prior written consent of the State. The Contractor’s removal of Key Personnel without the prior written consent of the State is an unauthorized removal (“Unauthorized Removal”). An Unauthorized Removal does not include replacing Key Personnel for reasons beyond the reasonable control of Contractor, including illness, disability, leave of absence, personal emergency circumstances, resignation, or for cause termination of the Key Personnel’s employment. Any Unauthorized Removal may be considered by the State to be a material breach of this Contract, in respect of which the State may elect to terminate this Contract for cause under the Termination for Cause section of the Standard Contract Terms. It is further acknowledged that an Unauthorized Removal will interfere with the timely and proper completion of this Contract, to the loss and damage of the State, and that it would be impracticable and extremely difficult to fix the actual damage sustained by the State as a result of any Unauthorized Removal. Therefore, Contractor and the State agree that in the case of any Unauthorized Removal in respect of which the State does not elect to exercise its rights under Termination for Cause, Contractor will issue to the State the corresponding credits set forth below (each, an “Unauthorized Removal Credit”):

(i) For the Unauthorized Removal of any Key Personnel designated in the applicable Statement of Work, the credit amount will be $50,000.00 per individual if Contractor identifies a replacement approved by the State and assigns the replacement to shadow the Key Personnel who is leaving for a period of at least 30-calendar days before the Key Personnel’s removal.

(ii) If Contractor fails to assign a replacement to shadow the removed Key Personnel for at least 30-calendar days, in addition to the $50,000.00 credit specified above, Contractor will credit the State $1,600 per calendar day for each day of the 30-calendar day shadow period that the replacement Key Personnel does not shadow the removed Key Personnel, up to $50,000.00 maximum per individual. The total Unauthorized Removal Credits that may be assessed per Unauthorized Removal and failure to provide 30-calendar days of shadowing will not exceed $100,000.00 per individual.

Contractor acknowledges and agrees that each of the Unauthorized Removal Credits assessed above: (i) is a reasonable estimate of and compensation for the anticipated or actual harm to the State that may arise from the Unauthorized Removal, which would be impossible or very difficult to accurately estimate; and (ii) may, at the State’s option, be credited or set off against any fees or other charges payable to Contractor under this Contract.

The Contractor must identify the Key Personnel, indicate where they will be physically located, describe the functions they will perform, and provide current chronological résumés.

List all exception(s):

Michigan.gov/MiProcurement

A. The Contractor must identify all Key Personnel that will be assigned to this contract in the table below which includes the following:

1. Name and title of staff that will be designated as Key Personnel.

2. Which of the Key Personnel positions are being filled.

3. Key Personnel years of experience in the current classification.

4. Key Personnel’s roles and responsibilities, as they relate to this RFP, if the Contractor is successful in being awarded the Contract. Descriptions of roles should be functional and not just by title.

5. Identify if each Key Personnel is a direct, subcontract, or contract employee.

6. Identify if each Key Personnel staff member is employed full-time (FT), part-time (PT) or temporary (T), including consultants used for the purpose of providing information for the proposal.

7. List each Key Personnel staff member’s length of employment or affiliation with the Contractor’s organization.

8. Identify each Key Personnel’s percentage of work time devoted to this Contract.

9. Identify where each Key Personnel staff member will be physically located (city and state) during the Contract performance.

<Add more rows below as needed> 1.

Name & Title 2.

Key Personnel Position Being Filled 3.

Years of Experience in Current Classification 4.

Role(s) / Responsibilities 5.

Direct / Subcontract/ Contract 6.

FT/ PT/ T

7.

Length of Employment 8.

% of Work Time 9.

Physical Location

B. The Contractor must provide detailed, chronological resumes of all proposed Key Personnel, including a description of their work experience relevant to their purposed role as it relates to the RFP.

Qualifications will be measured by education and experience with particular reference to experience on projects similar to that described in the RFP.

Bidder must provide the resumes and information as required above – either in this response box or identified here as an attachment to this RFP labelled as “Resumes-Bidder Name”.

4.7. Organizational Chart

The Contractor must provide an overall organizational chart that details staff members, by name and title, and subcontractors.

Bidder must provide detailed information as required above – either in this response box or identified here as an attachment to this RFP labelled as “Organizational Chart-Bidder Name”.

4.8. Disclosure of Subcontractors

If the Contractor intends to utilize subcontractors, the Contractor must disclose the following:

· The legal business name; address; telephone number; a description of subcontractor’s organization and the services it will provide; and information concerning subcontractor’s ability to provide the Contract Activities.

· The relationship of the subcontractor to the Contractor.

· Whether the Contractor has a previous working experience with the subcontractor. If yes, provide the details of that previous relationship.

· A complete description of the Contract Activities that will be performed or provided by the subcontractor

· Geographically Disadvantaged Business Enterprise Sub-Contractors: If contractors plan to utilize subcontractors to perform more than 20% of the deliverables under this contract, at least 20% of that subcontracted work must be awarded to Michigan-based Geographically Disadvantaged Business Enterprises (GDBE). Contractor will submit a plan detailing all subcontractors to be used, including the percentage of the work to be done by each. Contractor must inform the State to the name and address of the GDBE, the percentage of the work they will complete, the total amount estimated to be paid to the GDBE, and provide evidence for their qualifications as a GDBE. If contractor cannot find GDBE subcontractors to meet this requirement they must provide reasoning and justification to receive an exemption from this requirement from the State. (Existing business relationships will not be an approved reason for this.)

GDBE definition: "Geographically-Disadvantaged Business Enterprise" means a person or entity that satisfies one or more of the following: (i) Is certified as a HUBZone Small Business Concern by the United States Small Business Administration. (ii) Has a principal place of business located within a Qualified Opportunity Zone within Michigan. (iii) More than half of its employees have a principal residence located within a Qualified Opportunity Zone within Michigan, or both.

Additional information on GDBEs can be found here:

Michigan Qualified Opportunity Zone (QOZ) Map Michigan Supplier Community (MiSC) Page

List all exception(s):

Bidder must provide detailed information as requested in the above requirement(s).

The legal business name, address, telephone number of the subcontractor(s).

A description of subcontractor’s organization and the services it will provide and information concerning subcontractor’s ability to provide the Contract Activities.

The relationship of the subcontractor to the Bidder.

If yes, provide the details of that previous relationship.

A complete description of the Contract Activities that will be performed or provided by the subcontractor.

Of the total bid, the price of the subcontractor’s work.

4.9. Security

Prior to operations under the Contract, the Contractor must establish and maintain an approved security program for the entire system, subject to the written approval of the Lottery. This program must be updated, reviewed, and approved annually by the Lottery. As part of this requirement the Contractor must maintain an approved Operations Security Plan.

The security program must include the following procedural, administrative, and physical elements:

A. The Contractor must complete background and criminal history checks for all staff involved with this Contract at Contractor’s cost. The Contractor must not assign any individual to work on this Contract until they have cleared the background check. Background Checks include, but are not limited to:

a. Determining if the person has been charged or convicted of a felony.

b. Obtaining criminal history check from State Police.

B. Security measures and systems which preclude unauthorized persons from accessing all facilities and supplies, and equipment within the facilities. The Lottery reserves the right to prohibit physical access to operations areas by non-operations personnel.

C. Security measures which preclude the unauthorized use of equipment and materials, without written authorization from the Lottery.

D. Security measures that ensure the integrity of the preparation, storage, distribution, or use of any data or documentation relating to player information or any personal identifying information.

E. A disaster recovery and contingency plan for maintaining the successful operation of the development and manufacturing processes. Such a plan must include a method and timeframe for recovery and continuation of these processes.

F. Personnel Security. The Lottery may initiate investigations into the backgrounds of any officers and Subcontractors, employees of the Contractor, or any other associates of the Contractor it deems appropriate. Any costs of background investigations are the responsibility of the Contractor.

Personnel who will be performing services under the Contract and as determined by the Lottery will be required to undergo a background investigation by the Lottery. This Lottery background check does not relieve the Contractor of their responsibility to conduct their own background investigations. After an employee being considered for work on the Lottery Contract has been cleared by the Contractor’s background checks, the person must be submitted to Lottery for clearance. The results of whether personnel has or has not passed the background check conducted by the Contractor must be shared with Lottery.

The Contractor consents to cooperate with such investigations, and to instruct its employees to cooperate. The Lottery may terminate the Contract or require the Contractor to remove an employee from the Lottery project based upon adverse results of background checks if the Lottery determines that its integrity, security, or goodwill may be in jeopardy. The Lottery may disapprove any employee or Subcontractor of the Contractor who is assigned to this project, either at Contract inception or at any time during the term of the Contract.

The Contractor must not allow the engagement of unfit or unqualified persons not skilled in the tasks assigned to them with respect to the Contract and must at all times employ sufficient personnel for carrying out work to full completion in the manner and time prescribed by the Contract. The Contractor must be responsible to the Lottery for the acts and omissions of the Contractor’s employees or Subcontractors.

Any person employed by the Contractor must, at the written and reasonable request of the Lottery, be removed forthwith by the Contractor from work relating to the Contract. The Contractor’s Subcontractors are in this respect considered employees of the Contractor.

The ability to conduct such investigations is a continuing right of the Lottery throughout the Contract.

The Contractor must at the start of the Contract, and for each new employee prior to their assignment on Michigan Contract work, submit to the Lottery the name, address, date of birth, social security number, driver license number, or fingerprint cards and/or other release forms bearing the person’s signed authorization to allow criminal justice agencies to release to the Lottery any criminal history that pertains to such person, of all officers and employees of the Contractor and of any Subcontractor, who are involved in any phase or aspect of the contract. The Lottery reserves the right to review and approve or disapprove any persons prior to or during their assignment to this Contract. No employee is to be given access to facilities or assigned to work on this Contract until the employee has been cleared by the Lottery. The Lottery reserves the right to review all security clearances and to disapprove any Contractor or Subcontractor employee.

The Contractor must notify the Lottery of departures of persons who are involved in the Contract and must provide a roster of current employees to the Lottery at least every twelve (12) months during the term of the Contract.

G. Security Violation Reporting. The Contractor must immediately report to the Lottery any security procedural violation, system compromise, potential violation of law, or compromises of equipment, software, or materials used or to be used in the performance of this Contract.

H. Security Information (Disclosure) Updates. The Contractor must report any change in, addition to, or deletion from, the information disclosed to the Lottery. The report must be in the form of a letter addressed to the Lottery and must be delivered to the Lottery’s Security Director immediately but no longer than thirty (30) days of the effective date of the change, addition, or deletion. In particular the Contractor must report the involvement of any of the Contractor's employees, owners, or agents in any known criminal arrest (exclusive of minor traffic violations) or investigation.

I. Assurances. In the event that any such Proceeding disclosed to the Lottery pursuant to this section, or of which the Lottery otherwise becomes aware, during the term of this Contract would cause a reasonable party to be concerned about:

a. The ability of the Contractor (or a Subcontractor hereunder) to continue to perform this Contract in accordance with its terms and conditions.

b. Whether the Contractor (or a Subcontractor hereunder) in performing services for the State is engaged in conduct which is similar in nature to conduct alleged in such Proceeding, which conduct would constitute a breach of this Contract or a violation of Michigan law, regulations or public policy, then the Contractor must be required to provide the State all reasonable assurances requested by the State to demonstrate that (a) the Contractor and/or its Subcontractors hereunder will be able to continue to perform this Contract and any Statements of Work in accordance with its terms and conditions, and (b) the Contractor and/or its Subcontractors hereunder have not and will not engage in conduct in performing the services similar in nature to the conduct alleged in such Proceeding.

J. Notifications. The Contractor must make the following notifications in writing:

a. The Contractor must notify the Lottery Contract Manager within thirty (30) days whenever changes to asset valuations or any other cost changes have occurred or are certain to occur as a result of a change in ownership or officers.

b. The Contractor must notify the Lottery Contract Manager within thirty (30) days whenever changes to company affiliations occur.

K. Eligibility of Contractor Employees. An individual or organization or employees of an organization under contract with the bureau is not eligible to win any prize in any lottery operated by the bureau during the period of the contract if the individual, organization, or employee has access to any of the following which is not open to the general public: (a) Bureau data. (b) Books and records. (c) Electronic data processing programs. (d) Systems designs. (e) Other information.

List all exception(s):

Bidder must explain how they will comply with the above requirements and any additional security measures in place to ensure the security of the State and its facilities:

5. Project Management

5.1. General

A. Contractor must provide account management that is proactive and flexible to meet changing business conditions.

B. Contractor must take all reasonable precautions to guard against any loss to Lottery through the failure of suppliers to execute commitments properly.

C. Contractor must not begin any work on any project before the Lottery has given formal approval and a work/expense authorization/purchase order has been issued and signed.

D. Upon failure to meet a predetermined deadline, the Contractor must provide an explanation for such failure as soon as it is known and submit an updated project schedule to the Lottery.

List all exception(s):

Bidder must provide their plan for meeting the requirements above:

5.2. Project Plan

A. Contractor must meet with the Lottery for direction and to discuss the specifics of each project.

B. Contractor must provide a schedule with sufficient approval time frames, as designated by Lottery, from initial presentation of creative through the production and delivery of product.

C. Prior to beginning work on a specific task or deliverable as agreed upon by the Lottery, the Contractor must provide the Lottery with a Project Plan for review.