RFP Document.pdf

STATE OF SOUTH DAKOTA

DEPARTMENT OF REVENUE

445 EAST CAPITOL AVE

PIERRE, SD 57501

License Plate Production, Centralized Fulfillment Center, and Print on Demand System

PROPOSALS ARE DUE NO LATER THAN 5:00 PM (CDT) ON AUGUST 4, 2025

RFP #: 25RFP14522 State POC: Morgan Maier Email: Morgan.Maier@state.sd.us

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FIRM NAME: AUTHORIZED SIGNATURE:

ADDRESS: TYPE OR PRINT NAME:

CITY/STATE: TELEPHONE NO:

ZIP (9 DIGIT): FAX NO:

E-MAIL:

PRIMARY CONTACT INFORMATION

CONTACT NAME: TELEPHONE NO:

FAX NO: E-MAIL:

1.0 GENERAL INFORMATION

1.1 PURPOSE OF REQUEST FOR PROPOSAL (RFP)

South Dakota’s license plates are manufactured at the State Penitentiary through Pheasantland Industries (PI).

Registrations in the state are printed on demand at the County Treasurer’s office locations and in the Department of Revenue (DOR) office in Pierre. Each year, there are about 1.6 million registered vehicles in South Dakota (including boats, snowmobiles, and off-road vehicles).

License plates and registrations are distributed to customers in the following ways: at a County Treasurer’s office location, an order for mailed plates and registrations placed through the web portal, or an order for a print on demand registration at a kiosk.

The South Dakota Department of Revenue is seeking responses from Vendors for the following services:

Centralized production and distribution of license plates;

Centralized fulfillment location, processes, and equipment; and

Print on demand system for all county offices and the Pierre DOR office (68 physical office locations).

Vendors must also be prepared to move license plate production equipment to any new facility that may be constructed to replace the State Penitentiary.

To be considered, Vendors must be able to provide all mandatory services within this RFP.

1.2 ISSUING OFFICE AND RFP REFERENCE NUMBER

The Department of Revenue is the issuing office for this document and all subsequent addenda relating to it on behalf of the State of South Dakota. The reference number for the transaction is RFP #25RFP14522. This number must be referred to on all proposals, correspondence, and documentation relating to the RFP.

1.3 LETTER OF INTENT

All interested Vendors must submit a Letter of Intent to respond to this RFP. Failure to submit a Letter of Intent will disqualify Vendors from the procurement process.

Letters of Intent must be submitted by email to Morgan.Maier@state.sd.us no later than 5:00pm (CDT) on May 5, 2025. “RFP #25RFP14522” must be written in the subject line of any email submissions.

1.4 SCHEDULE OF ACTIVITIES (SUBJECT TO CHANGE)

RFP Publication Friday, April 25, 2025 Letter of Intent to Respond Due Monday, May 5, 2025, 5:00pm CDT Site Visits at Pheasantland Industries (optional at Vendor request)**

Tuesday, May 6 – Friday, May 9, 2025 and Monday, May 12 – Friday, May 16, 2025

Vendor Questions Due Monday, May 19, 2025, 5:00pm CDT Responses to Vendor Questions Due Monday, June 2, 2025 Proposal Submission Due Monday, August 4, 2025, 5:00pm CDT Oral Presentations/discussions (if required) Week of August 18, 2025 Technical Review Meetings (if required) Week of August 25, 2025 Anticipated Award Decision/Contract Negotiation Week of September 2, 2025

** SITE VISIT DETAILS: Site visits are available between the hours of 8:30am – 12:00pm, and 1:30pm – 3:00pm. All visitors to the South Dakota State Penitentiary must complete a background check at least 10 business days prior to the planned visit. The background check form can be found attached as Appendix H to this

RFP.

Site visits must be coordinated with Kendrick Winters (Kendrick.Winters@state.sd.us) with Pheasantland Industries. Visitors will not be permitted until all background checks are approved. Cellphones, cameras, and smart watches will not be allowed into the facility without prior approval.

1.5 SUBMITTING THE PROPOSAL

All proposals must be completed and received by Morgan Maier via electronic mail at Morgan.Maier@state.sd.us by the date and time indicated in the Schedule of Activities. The electronic version should be provided in MS Word or in PDF format. Please note that electronic mail messages (including attachments) must be less than 20MB in order to be received. Proposals received after the deadline will be late and ineligible for consideration.

No proposal shall be accepted from, and no contract or purchase order shall be awarded to any person, firm, or corporation that is in arrears upon any obligations to the State of South Dakota, or that otherwise may be deemed irresponsible or unreliable by the State of South Dakota.

1.6 CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY, AND VOLUNTARY

EXCLUSION – LOWER TIER COVERED TRANSACTIONS

By signing and submitting this proposal, the Vendor certifies that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation, by any Federal department or agency, from transactions involving the use of Federal funds. Where the Vendor is unable to certify to any of the statements in this certification, the bidder shall attach an explanation to their offer.

1.7 NON-DISCRIMINATION STATEMENT

The State of South Dakota requires that all contractors, vendors, and suppliers doing business with any State agency, department, or institution provide a statement of non-discrimination. By signing and submitting their proposal, the Vendor certifies they do not discriminate in their employment practices with regard to race, color, creed, religion, age, sex, ancestry, national origin, or disability.

1.8 CERTIFICATION RELATING TO PROHIBITED ENTITY

For contractors, vendors, suppliers, or subcontractors who enter into a contract with the State of South Dakota by submitting a response to this solicitation or agreeing to contract with the State, the Vendor certifies and agrees that the following information is correct:

The Vendor, in preparing its response or offer or in considering proposals submitted from qualified, potential vendors, suppliers, and subcontractors, or in the solicitation, selection, or commercial treatment of any vendor, supplier, or subcontractor, is not an entity, regardless of its principal place of business, that is ultimately owned or controlled, directly or indirectly, by a foreign national, a foreign parent entity, or foreign government from China, Iran, North Korea, Russia, Cuba, or Venezuela, as defined by SDCL 5- 18A. It is understood and agreed that, if this certification is false, such false certification will constitute grounds for the State to reject the bid or response submitted by the bidder or vendor on this project and terminate any contract awarded based on the bid or response. The successful Vendor further agrees to provide immediate written notice to the contracting executive branch agency if during the term of the contract it no longer complies with this certification and agrees such noncompliance may be grounds for contract termination.

1.9 RESTRICTION OF BOYCOTT OF ISRAEL

For contractors, vendors, suppliers, or subcontractors with five (5) or more employees who enter into a contract with the State of South Dakota that involves the expenditure of one hundred thousand dollars ($100,000) or more, by submitting a response to this solicitation or agreeing to contract with the State, the bidder or vendor certifies and agrees that the following information is correct:

The Vendor, in preparing its response or offer or in considering proposals submitted from qualified, potential vendors, suppliers, and subcontractors, or in the solicitation, selection, or commercial treatment of any vendor, supplier, or subcontractor, has not refused to transact business activities, has not terminated business activities, and has not taken other similar actions intended to limit its commercial relations, related to the subject matter of the bid or offer, with a person or entity on the basis of Israeli national origin, or residence or incorporation in Israel or its territories, with the specific intent to accomplish a boycott or divestment of Israel in a discriminatory manner. It is understood and agreed that, if this certification is false, such false certification will constitute grounds for the State to reject the bid or response submitted by the bidder or vendor on this project and terminate any contract awarded based on the bid or response. The successful Vendor further agrees to provide immediate written notice to the contracting executive branch agency if during the term of the contract it no longer complies with this certification and agrees such noncompliance may be grounds for contract termination.

1.10 CERTIFICATION OF NO STATE LEGISLATOR INTEREST

Vendor (i) understands neither a state legislator nor a business in which a state legislator has an ownership interest may be directly or indirectly interested in any contract with the State that was authorized by any law passed during the term for which that legislator was elected, or within one year thereafter, and (ii) has read South Dakota Constitution Article 3, Section 12 and has had the opportunity to seek independent legal advice on the applicability of that provision to any Agreement entered into as a result of this RFP. By signing an Agreement pursuant to this RFP, vendor hereby certifies that the Agreement is not made in violation of the South Dakota Constitution Article 3, Section 12.

1.11 MODIFICATION OR WITHDRAWAL OF PROPOSALS

Proposals may be modified or withdrawn by the vendor prior to the established due date and time.

No oral, telephonic, telegraphic, or facsimile responses or modifications to informal, formal bids, or Request for Proposals will be considered.

1.12 VENDOR INQUIRIES

Vendors may email inquiries concerning this RFP to obtain clarification of requirements. No inquiries will be accepted after the date and time indicated in the Schedule of Activities. Inquiries must be emailed to Morgan Maier at Morgan.Maier@state.sd.us. “RFP #25RFP14522” must be written in the subject line of any email submissions.

The State will respond to vendor’s inquiries (if required) via e-mail. In addition, all inquiries and the State’s response will be posted on the State’s e-procurement system. Vendors may not rely on any other statements, either of a written or oral nature, that alter any specification or other term or condition of this RFP. Vendors will be notified in the same manner as indicated above regarding any modifications to this RFP.

1.13 PROPRIETARY INFORMATION

The proposal of the successful vendor(s) becomes public information. Proprietary information can be protected under limited circumstances such as client lists and non-public financial statements. An entire proposal may not be marked as proprietary. Vendors must clearly identify in the Executive Summary and mark in the body of the proposal any specific proprietary information they are requesting to be protected. The Executive Summary must contain specific justification explaining why the information is to be protected. Proposals may be reviewed and evaluated by any person at the discretion of the State. All materials submitted become the property of the State of South Dakota and may be returned only at the State's option.

1.14 LENGTH OF CONTRACT

The Department of Revenue anticipates awarding a 10-year contract with one optional extension of 5 years, to be exercised at the discretion of the State.

1.15 GOVERNING LAW

Venue for any and all legal action regarding or arising out of the transaction covered herein shall be solely in the State of South Dakota. The laws of South Dakota shall govern this transaction.

1.16 DISCUSSIONS WITH VENDORS (ORAL PRESENTATION/NEGOTIATIONS)

An oral presentation by an vendor to clarify a proposal may be required at the sole discretion of the State.

However, the State may award a contract based on the initial proposals received without discussion with the Vendor. If oral presentations are required, they will be scheduled after the submission of proposals. Oral presentations will be made at the vendor’s expense.

This process is a Request for Proposal/Competitive Negotiation process. Each Proposal shall be evaluated, and each respondent shall be available for negotiation meetings at the State’s request. The State reserves the right to negotiate on any and/or all components of every proposal submitted. From the time the proposals are submitted until the formal award of a contract, each proposal is considered a working document and, as such, will be kept confidential. The negotiation discussions will also be held as confidential until such time as the award is completed.

2.0 STANDARD CONTRACT TERMS AND CONDITIONS

Any contract or agreement resulting from this RFP will include the State’s standard terms and conditions as listed below, the State’s standard Information Technology (IT) contract terms listed in Appendix E, and any additional terms and conditions as negotiated by the parties. The vendor must indicate in its response any issues it has with specific contract terms. If the vendor does not indicate that there is an issue with a specific contract term, then the vendor will be deemed to have accepted the contract terms as written.

2.1 The Vendor will perform those services described in the Scope of Work, attached hereto as Section 3 of the RFP and by this reference incorporated herein.

2.2 The Vendor’s services under this Agreement will start in September of 2025 and will end on March 1, 2036, unless terminated sooner pursuant to the terms of the Agreement. One renewal term of 5 years will be available at the option of the State.

2.3 Notwithstanding the specific equipment owned by the State that is available for use by the Vendor as well as the workshop space to be used at Pheasantland Industries (PI), the Vendor will not use State equipment, supplies, or facilities. The Vendor will provide the State with its Employer Identification Number, Federal Tax Identification Number, or Social Security Number upon execution of this Agreement.

2.4 The State will make payment for services upon satisfactory completion of the services. The TOTAL

CONTRACT AMOUNT is an amount not to exceed $ . The State will not pay the Vendor's expenses as a separate item. Payment will be made pursuant to itemized invoices submitted with a signed state voucher. Payment will be made consistent with SDCL chapter 5-26.

2.5 The Vendor agrees to indemnify the State of South Dakota, its officers, agents, and employees from and against all claims or proceedings for actions, suits, damages, liabilities, other losses or equitable relief that may arise at least in part as a result of an act or omission in performing services under this Agreement. The Vendor will defend the State of South Dakota, its officers, agents, and employees against any claim, including any claim, action, suit, or other proceeding related to the claim. The Vendor’s obligation to indemnify includes the payment of attorney fees and other costs of defense. In defending the State of South Dakota, its officers, agents, and employees, the Vendor will engage other professionals, subject to the written approval of the State which will not be unreasonably withheld. Notwithstanding the foregoing, the

State may, in its sole discretion and at the expense of the Vendor, engage attorneys and other professionals to defend the State of South Dakota, its officers, agents, and employees or to assist the Vendor in the defense. This section does not require the Vendor to be responsible for or defend against claims or proceedings for damages, liabilities, losses, or equitable relief arising solely from errors or omissions of the State, its officers, agents, or employees.

2.6 During the term of this Agreement, the Vendor will obtain and maintain in force insurance coverage of the types and with the limits as follows:

2.6.1 Commercial General Liability Insurance:

The Vendor will maintain occurrence-based commercial general liability insurance or equivalent form with a limit of not less than $1 million for each occurrence. If such insurance contains a general aggregate limit, it will apply separately to this Agreement or be no less than two times the occurrence limit. The insurance policy will name the State of South Dakota, its officers, and employees as additional insureds, but liability coverage is limited to claims not barred by sovereign immunity. The State of South Dakota, its officers, and employees do not hereby waive sovereign immunity for discretionary conduct as provided by law.

2.6.2 Professional Liability Insurance or Miscellaneous Professional Liability Insurance:

The Vendor will procure and maintain professional liability insurance or miscellaneous professional liability insurance with a limit not less than $1 million.

2.6.3 Business Automobile Liability Insurance:

The Vendor will maintain business automobile liability insurance or equivalent form with a limit of not less than $1 million for each accident. Such insurance will include coverage for owned, hired, and non-owned vehicles.

2.6.4 Workers’ Compensation Insurance:

The Vendor will procure and maintain workers’ compensation and employers’ liability insurance as required by South Dakota or federal law.

Before beginning work under this Agreement, Vendor will furnish the State with properly executed Certificates of Insurance which will clearly evidence all insurance required in this Agreement. In the event a substantial change in insurance, issuance of a new policy, cancellation, or nonrenewal of the policy, the Vendor agrees to provide immediate notice to the State and provide a new Certificate of Insurance showing continuous coverage in the amounts required. Vendor will furnish copies of insurance policies if requested by the State.

2.7 While performing services under this Agreement, the Vendor is an independent contractor and not an officer, agent, or employee of the State of South Dakota.

2.8 The Vendor agrees to report to the State any event encountered in the course of performance of this

Agreement which results in injury to the person or property of third parties, or which may otherwise subject Vendor or the State to liability. The Vendor will report any such event to the State immediately upon discovery.

The Vendor's obligation under this section will only be to report the occurrence of any event to the State and to make any other report provided for by their duties or applicable law. The Vendor’s obligation to report will not require disclosure of any information subject to privilege or confidentiality under law (e.g., attorney-client communications). Reporting to the State under this section will not excuse or satisfy any obligation of the Vendor to report any event to law enforcement or other entities under the requirements of any applicable law.

2.9 This Agreement may be terminated by either party hereto upon thirty (30) days’ written notice. In the event the Vendor breaches any of the terms or conditions of this Agreement, this Agreement may be terminated by the State at any time with or without notice. If termination for a breach is affected by the State, any payments due to the Vendor at the time of termination may be adjusted to cover any additional costs to the State because of the Vendor's breach. Upon termination, the State may take over the work and may award another party an agreement to complete the work under this Agreement. If, after the State terminates for a breach by the Vendor, it is determined that the Vendor was not at fault, then the Vendor will be paid for eligible services rendered and expenses incurred up to the date of termination.

2.10 This Agreement depends upon the continued availability of appropriated funds and expenditure authority from the Legislature for this purpose. If, for any reason, the Legislature fails to appropriate funds or grant expenditure authority or funds become unavailable by operation of law or federal funds reductions, this Agreement will be terminated by the State upon five (5) business days’ written notice. The Vendor agrees that termination for any of these reasons is not a default by the State nor does it give rise to a claim against the State or any officer, agent, or employee of the State, and the Vendor waives any claim against the same.

2.11 This Agreement may not be assigned without the express prior written consent of the State. This Agreement may not be amended except in writing, which writing will be expressly identified as a part of this Agreement and be signed by an authorized representative of each of the parties to this Agreement.

2.12 This Agreement will be governed by and construed in accordance with the laws of the State of South Dakota, without regard to any conflicts of law principles, decisional law, or statutory provision which would require or permit the application of another jurisdiction’s substantive law. Venue for any lawsuit pertaining to or affecting this Agreement will be in Circuit Court, Sixth Judicial Circuit, Hughes County, South Dakota.

2.13 The Vendor will comply with all federal, tribal, state, and local laws, regulations, ordinances, guidelines, permits, requirements, and other standards applicable to providing services pursuant to this Agreement and will be solely responsible for obtaining current information on such requirements. Nothing herein will constitute a waiver by the State to any defense to jurisdiction nor will anything under this Agreement constitute an acknowledgement by the State that any tribe has or exercises any jurisdiction over this Agreement or the parties.

2.14 The Vendor may not use subcontractors to perform the services described in this Agreement without the express prior written consent of the State. The Vendor will include provisions in its subcontracts requiring its subcontractors to comply with the applicable provisions of this Agreement, to indemnify the State, and to provide insurance coverage for the benefit of the State in a manner consistent with this Agreement. The Vendor will cause its subcontractors, agents, and employees to comply with applicable federal, tribal, state, and local laws, regulations, ordinances, guidelines, permits, and other standards and will adopt such review and inspection procedures as are necessary to assure such compliance. The State, at its option, may require the vetting of any subcontractors. The Vendor will assist in the vetting process.

2.15 The State reserves the right to reject any person from performing services under this Agreement who the

State believes would be detrimental to the services, presents insufficient skills, presents inappropriate behavior, or is considered by the State to be a security risk.

2.16 The Vendor hereby acknowledges and agrees that all reports, plans, specifications, technical data, miscellaneous drawings, software system programs and documentation, procedures, or files, operating instructions and procedures, source code(s) and documentation, including those necessary to upgrade and maintain the software program, and all information contained therein provided to the State by the Vendor in connection with its performance of services under this Agreement will belong to and is the property of the State and will not be used in any way by the Vendor without the written consent of the State. Papers, reports, forms, software programs, source code(s), and other material which are a part of the work under this Agreement will not be copyrighted without written approval of the State.

2.17 The Vendor certifies that neither the Vendor nor its principals are presently debarred, suspended, proposed for debarment or suspension, or declared ineligible from participating in transactions by the federal government or any state or local government department or agency. Vendor further agrees that it will immediately notify the State if during the term of this Agreement Vendor or its principals become subject to debarment, suspension, or ineligibility from participating in transactions by the federal government or by any state or local government department or agency.

2.18 By signing this Agreement, the Vendor certifies and agrees that it has not refused to transact business activities, has not terminated business activities, and has not taken other similar actions intended to limit its commercial relations, related to the subject matter of this Agreement, with a person or entity that is either the State of Israel, or a company doing business in or with Israel or authorized by, licensed by, or organized under the laws of the State of Israel to do business, or doing business in the State of Israel, with the specific intent to accomplish a boycott or divestment of Israel in a discriminatory manner. It is understood and agreed that, if this certification is false, such false certification will constitute grounds for the State to terminate this Agreement. During the term of this Agreement, if the Vendor no longer complies with this certification, the Vendor agrees to provide immediate written notice to the State and agrees such noncompliance may be grounds for termination of this Agreement.

2.19 Pursuant to South Dakota Codified Law § 5-18A, by entering into this Agreement with the State of South

Dakota, the Vendor certifies and warrants that the Vendor is not a prohibited entity, regardless of its principal place of business, that is ultimately owned or controlled, directly or indirectly, by a foreign national, a foreign parent entity, or foreign government from China, Iran, North Korea, Russia, Cuba, or Venezuela, as defined by South Dakota Codified Law § 5-18A.

The Vendor agrees that if this certification is false, the State may terminate this Agreement with no further liability to the State. The Vendor further agrees to provide immediate written notice to the State if during the term of the contract it no longer complies with this certification, and the Vendor agrees such noncompliance may be grounds for contract termination and would be cause to suspend and debar a business under SDCL § 5-18D-12.

2.20 The Vendor (i) understands neither a state legislator nor a business in which a state legislator has an ownership interest may be directly or indirectly interested in any contract with the State that was authorized by any law passed during the term for which that legislator was elected, or within one year thereafter, and (ii) has read South Dakota Constitution Article 3, Section 12 and has had the opportunity to seek independent legal advice on the applicability of that provision to this Agreement. By signing this Agreement, the Vendor certifies that this Agreement is not made in violation of the South Dakota Constitution Article 3, Section 12.

2.21 Any notice or other communication required under this Agreement will be in writing and sent to the address set forth above. Notices will be given by and to Toni Richardson, Director of Administration on behalf of the State, and by and to , on behalf of the Vendor, or such authorized designees as either party may from time to time designate in writing. Notices or communications to or between the parties will be deemed to have been delivered when mailed by first class mail, provided that notice of default or termination will be sent by registered or certified mail, or, if personally delivered, when received by such party.

2.22 In the event that any court of competent jurisdiction will hold any provision of this Agreement unenforceable or invalid, such holding will not invalidate or render unenforceable any other provision of this Agreement.

2.23 All other prior discussions, communications, and representations concerning the subject matter of this

Agreement are superseded by the terms of this Agreement, and except as specifically provided in this Agreement, this Agreement constitutes the entire Agreement with respect to the subject matter.

2.24 The waiver by either party of a breach or violation of any provisions of this Agreement will not operate as, or be construed to be, a waiver of any subsequent breach of the same or other provision of this Agreement.

2.25 Nothing in this Agreement is intended to constitute a waiver of sovereign immunity by or on behalf of the

State of South Dakota, its agencies, officers, or employees.

2.26 Neither party will disclose the contents of the Agreement except as required by applicable law or as necessary to carry out the terms of the Agreement or to enforce that party’s rights under this Agreement. The Vendor acknowledges that the State of South Dakota and its agencies are public entities and thus are bound by South Dakota open meetings and open records laws. It is therefore not a breach of this Agreement for the State to take any action that the State reasonably believes is necessary to comply with the South Dakota open records or open meetings laws, including, without limitation, posting this Agreement on the website pursuant to SDCL § 1-27-46.

3.0 SCOPE OF WORK

3.1 Implementation schedule. Vendor must provide an implementation schedule, detailing how and when all required project components could be set up and established within a 6-month timeframe. For each project component, please provide a transition plan, including a plan for testing, a technology needs/transition plan to share with the Bureau of Information and Telecommunications, and any other considerations necessary to transition services seamlessly.

3.2 Disaster Recovery Plan. If for any reason license plate production at PI has been (or will be) suspended for fourteen (14) or more days, the Vendor must be able to support plate production in a separate location with full equipment, machinery, and raw materials within one week of notice from the State. Vendors must provide a disaster recovery plan that will provide for license plate production, fulfillment center activities, and replacement of equipment and materials.

3.3 License Plate Production Mandatory Requirements

3.3.1 Pheasantland Industries. Vendor must work closely with PI to facilitate the production of license plates. Vendor must provide PI with all necessary and prescribed raw materials, equipment, supplies, and training to facilitate timely license plate production.

3.3.1.1 Personal Information. Vendor understands that inmates employed by PI are strictly prohibited from accessing any personal information related to the license plates being produced. Vendor processes and systems must ensure this information security requirement.

3.3.1.2 Security Screening. All of Vendor’s employees or agents handling deliveries to PI must complete and pass a background check. Background checks must be completed at least ten (10) business days prior to any planned delivery or activity required at PI. The background check form is attached to this RFP as Appendix I.

3.3.1.3 Delivery of Materials. Vendor is responsible for acquiring and delivering raw materials to

PI. Vendors are advised that storage at PI is limited. PI can store about ninety (90) days of raw materials and supplies at a time. Vendor will be responsible for just-in-time replenishment of raw materials.

3.3.1.4 Periodic Evaluation. The State reserves the right to periodically evaluate the performance of materials. Samples for periodic evaluation of performance will be selected at random from materials used or provided by the Vendor for use in the license plate production process. Failure of materials to comply with the requirements of this specification shall be cause for removal.

3.3.1.5 Training. The Vendor must provide a plan for training all relevant State and PI personnel on the proposed processes, materials, equipment, and software that may be utilized within the Vendor’s bid.

3.3.1.6 Moving. Upon construction of a new state penitentiary, the Vendor will be responsible for moving and assembling all equipment in a timeframe to be decided upon mutual agreement of the Vendor and State parties.

3.3.2 Production Equipment. Vendor must maintain at least two production lines capable of producing license plates, simultaneously.

3.3.2.1 The following production equipment must be provided by Vendor to be housed at PI:

3.3.2.1.1 Blanking Line Press

3.3.2.1.2 Unwinder

3.3.2.1.3 Coil Straightener

3.3.2.1.4 Blanking Die (minimum two (2), one for truck, auto and trailer, and one for motorcycle)

3.3.2.1.5 Applicator Registry System (minimum of 2)

3.3.2.1.6 Components

3.3.2.1.7 Ink Jet Digital License Plate Printers (minimum of 2)

3.3.2.1.8 Rimming Embosser

3.3.2.1.9 License Plate Shredder

3.3.2.1.10 Barcode Scanner (minimum of 4)

3.3.2.1.11 Computers and software to read barcodes (minimum of 4)

3.3.2.2 Inkjet Printers. Vendor must provide two (2) ink jet printers capable of printing 3,000,000 license plates per year at 600x720 DPI (1039x1247 apparent DPI).

3.3.2.3 Blanking Lines. Vendor must provide one complete blanking line having the following capabilities:

3.3.2.3.1 A throughput up to 3,500 – 4,000 Plates/Hour for each line;

3.3.2.3.2 Ability to work with both automobile and motorcycle dies; and

3.3.2.3.3 An applicator module specifically for inline lamination of two (2) separate continuous-length rolls of pressure-sensitive reflective license plate sheeting and overlaminate or similar material to the aluminum substrate.

3.3.2.4 Embossing Equipment. The Vendor must provide a manual stamping embosser to apply an embossed rim around the commercial vehicle license plates.

3.3.2.5 License Plate Shredder. Vendor must provide a license plate shredder to be used for all rejected or damaged license plates. These plates must be shredded on site by PI. The shredder must be capable of cutting through .022 aluminum gauge thickness.

3.3.2.6 State-Owned Equipment. The State owns some blanking line components (listed below in Section 3.3.2.7) that can be used by the Vendor with compatible equipment provided by the Vendor. If the Vendor plans to use any of the State-owned equipment, written notice must be provided as part of this RFP. Use of the equipment is not mandatory, but if the Vendor uses the equipment, it must be maintained in accordance with the provision below.

3.3.2.7 State Owned Equipment List. The State owns the following blanking line components that can either be used with compatible equipment provided by the Vendor for license plate production or upgraded to the same performance standards of the new blanking line:

a. 1-Vertical Unwind Cooper Weymouth 2,500 lb Serial # 25-12P-1401

b. 1-Coil Straightener Cooper Weymouth Peterson Model # 12B Serial # M21284

c. 1-Blanking Line Press Federal Press # 5 Serial #5 2355

3.3.2.8 Maintenance of State-Owned Equipment. Excluding normal wear and tear, the Vendor must maintain and repair any State-owned equipment used by the Vendor for plate production. The Vendor must pay for or replace any defective State-owned equipment that was used by the Vendor and cannot be repaired.

3.3.3 Materials Specifications for Plate Production.

3.3.3.1 Plate sheeting.

3.3.3.1.1 Sheeting must be retroreflective. Sheeting must meet or exceed current license plate standards for retroreflectivity, resistance to accelerated weathering, rainfall performance, cleanability, solvent resistance, and performance life.

3.3.3.1.2 Sheeting must contain identifying, warranty enforcement, and anti-counterfeiting marks.

3.3.3.1.2.1 Warranty marks may be required to be buried below the sheeting surface for durability and, if required, must incorporate a production run number designating the source, year, and specific lot of manufacture. Warranty marks may not interfere with or detract from the graphic design or reduce sheet brightness. Warranty marks must remain durable for the life of the license plate.

3.3.3.1.2.2 Security marks must be three-dimensional and run from top to bottom or left to right across the license plate. The design must be distinctly visible from a distance of 0-40 feet (0-12 meters). The security marks must remain durable for the life of the license plate.

3.3.3.1.3 To avoid supply issues, the license plate sheeting must not include any specific state branding to South Dakota within the security marks or embedded in the sheeting. Instead, the sheeting must contain a security mark that can be universally used in multiple states in the event of supply issues.

3.3.3.1.4 All sheeting must be visually inspected before, during, and after printing.

3.3.3.2 Plate backing. Vendor must agree to use aluminum plate backing at a minimum of .022-gauge thickness. Alternative materials for license plate production may be considered, however the Vendor must provide a cost sheet for both aluminum and the proposed alternative material(s).

3.3.3.3 UV Ink and Protective Clear Film. The Vendor must provide the UV Ink to be used for the Inkjet Printers and protective clear film to be laminated to the sheeting.

3.3.3.4 Dynamic Decals. License plates mailed on demand to customers must include a dynamically printed 1” by 1.5’’ decal. The decal must be printed in the bottom right corner of the license plate, in the same color as traditional registration tags for that renewal year, and list all of the information contained on a general registration decal (renewal month, year, and license plate number).

3.3.4 License Plates. Vendor must work with the State to develop and maintain compliance with all federal, state, and South Dakota law enforcement license plate design standards. All license plates produced must meet or exceed industry standards for reflectivity, durability, and performance. Plate production standards incorporating newer technology will also be considered if they meet AAMVA industry standards.

3.3.4.1 Plate size.

3.3.4.1.1 Car, truck, and large trailer plates:

3.3.4.1.1.1 Dimensions 12” wide x 6” tall

3.3.4.1.1.2 Hole placement must be 5/8’ from the top or bottom of the plate and

2 ½” from the sides of the plate

3.3.4.1.1.3 Hole size must be ¼” radius

3.3.4.1.2 Motorcycle and small trailer plates:

3.3.4.1.2.1 7” wide x 4” tall

3.3.4.1.2.2 Hole placement must be 5/8’ from the top or bottom of the plate and

2 ½” from the sides of the plate

3.3.4.1.2.3 Hole size must be ¼” radius

3.3.4.2 South Dakota Plate Reproduction. The Vendor must be capable of reproducing the

State’s currently digitally printed license plates. The State will provide necessary information and files upon contract award. The current plates are shown in Appendix A.

The Vendor must provide a proof of each license plate design to the State prior to production.

3.3.4.3 Plate Design. The Vendor shall be responsible for all plate designs and will incorporate input and feedback from the State. The Vendor is required to design personalized, emblem, souvenir, and specialty plates in addition to the conventional plate designs. The Vendor must provide a proof of each license plate design to the State prior to production.

Each proof provided must be approved by all relevant federal, state, and special recognition groups prior to production.

3.3.4.4 Souvenir Plates. The Vendor must work with the State to design and produce souvenir plates for various events, including the Buffalo Round-Up and the Governor’s Pheasant Hunt. The State typically receives requests for up to five (5) types of souvenir plates, but that is subject to change. Vendor’s design services are not compensated, but the State will pay the plate production fees related to these plates upon receiving a proof plate and approving the proof.

3.3.5 Production of License Plates. The production output must meet large daily capacity demands during peak plate months.

3.3.5.1 License Plate Projections. The following projections are an estimate of license plate demand for the next six (6) years. The Vendor must meet the actual demand each year, even if it exceeds the projected demand. The State is not responsible for overproduction of license plates.

3.3.5.1.1 2026 – 360,000

3.3.5.1.2 2027 – 340,000

3.3.5.1.3 2028 – 440,000

3.3.5.1.4 2029 – 1.1 million

3.3.5.1.5 2030 – 1.6 million

3.3.5.1.6 2031 - 485,000

3.3.5.2 Quality Control. The Vendor must ensure that 100% of license plates produced and delivered to customers meet or exceed the State’s quality specifications as provided in this RFP.

3.3.5.3 Corrective Quality Action. The Vendor must implement quality control procedures to reasonably ensure that its services meet or exceed the State’s reasonable quality expectations. The State will provide written notice of any quality control concerns. Within thirty (30) days of notice, the Vendor shall provide the State with a mutually acceptable plan for correction of any quality issues. Failure to adequately address the quality control concerns may be grounds for termination of the contract resulting from this RFP.

3.4 Registration Printing Equipment and Services Mandatory Requirements

3.4.1 Equipment, Maintenance, and Support. The Vendor must provide the following Equipment, Maintenance, and Support to the 68 office locations listed in Appendix B.

3.4.1.1 Printing Equipment and Supplies. The Vendor must provide the following registration printing equipment and supplies to all county offices and fulfillment locations:

3.4.1.1.1 Vendor must supply at least 340 thermal transfer printers, which includes at least one additional spare plug-and-play printer for each county office location. Appendix B lists the current count of printers housed at each county office location. These totals include the backup plug-and-play printers.

3.4.1.1.2 POD forms and ribbon and finished license plate inventory at the county office locations must be tracked by the Vendor. The Vendor will be responsible for just-in-time inventory distribution and ensuring the county offices have a 60–90-day supply on hand.

3.4.1.1.3 All necessary network infrastructure, servers, and controllers for the print on demand system.

3.4.1.2 Maintenance. The Vendor must provide, maintain, and warranty functionality of the equipment provided in connection with this requirement. Any defective or worn-out equipment must be timely repaired or replaced by the Vendor at no additional cost to the State.

3.4.1.3 Preventative Maintenance. The Vendor will provide at least two (2) visits annually to each county office listed in Appendix B to perform preventative maintenance and support.

Should the county personnel desire additional training or instruction on the use of any of the equipment, materials, or support services, the Vendor will provide such training without delay.

3.4.2 Technical Support. The Vendor must provide at least the following minimum technical support:

3.4.2.1 On-the-ground technical support via the Vendor or Vendor’s subcontractor for all printing equipment, materials, and services provided. The Vendor must respond to on-site calls within eight (8) hours between 7:00 a.m. and 12:00 a.m., Monday through Saturday.

3.4.2.2 Toll-free telephonic access to support personnel for problem resolution. Vendor’s response time shall be no longer than thirty (30) minutes.

3.4.2.3 The State agrees that the Vendor shall be permitted to utilize the State’s help desk and BIT support staff function to assist the Vendor’s field service requirements. The use of BIT support staff and services must be coordinated in conjunction with the DOR.

3.4.2.4 Greater support offerings are preferred, and Vendor should provide the details of any additional support offerings as well as cost in its response to this RFP.

3.4.3 Automated Print-on-Demand System. The Vendor must provide the State with an automated print-on-demand system for the State and all county offices (county Treasurer and any existing satellite office). The system must be capable of printing and dispensing registrations, tonnage validation stickers, and handicap placards.

3.4.4 Servers. The State is interested in options to run the print-on-demand system through a non-state server.

3.4.5 Software. The Vendor must provide a software application solution to interface with South Dakota’s Motor Vehicle Database (605Drive). The software must be capable of generating on-demand reports providing registration and decal inventory information including creation, distribution, printing, and reprinting. The software must be capable of identifying and reporting discrepancies in decals and form inventories.

3.5 Fulfillment Center and Related Services

3.5.1 Fulfillment Center within South Dakota. The Vendor must operate a secure fulfillment center location within South Dakota to process and package the necessary plates and documentation to be sent out to taxpayers.

3.5.1.1 Equipment. The Vendor must have the following equipment available for use at the fulfillment center:

3.5.1.1.1 A minimum of two (2) barcode scanners.

3.5.1.1.2 A minimum of two (2) computers with software capable of reading barcodes.

3.5.1.2 Secure Premises. The Vendor must ensure the fulfillment center is operated securely.

The most basic acceptable security measures include badge access for fulfillment center staff and a visitor log for anyone who is not fulfillment center staff. Greater security measures are preferred and should be detailed in the Vendor’s response to this RFP.

3.5.1.3 Raw Material Storage. The Vendor’s fulfillment center must house all raw material inventory (other than the 90-day supply supported by PI storage) within an acceptable geographical region allowing efficient and timely transfer to PI to facilitate continuous production.

3.5.2 Orders. The Vendor must receive and process State-provided files containing necessary plate messaging, registration, and delivery information on a daily basis.

3.5.2.1 Mailing. The Vendor must provide fulfillment center mailing services with the ability to combine multiple license plate and registration documents into a single package for mailing. The Vendor must utilize barcodes to ensure that the correct license plates and corresponding registration documentation are mailed together. All packaging practices and materials must be approved by the State.

3.5.2.2 Postage Rates. The Vendor must base their postage rates on current United States

Postal Service (USPS) postage rates as of the date of the response.

3.5.2.3 Web Portal. The Vendor must provide the State access to a web-based portal that provides real-time status updates for all license plate transactions from order receipt to completed shipment. The information provided must be sufficient to enable the State to provide status updates to customers via 605Drive. The web portal must be capable of generating daily production and performance management summary reports. Reports should include volume, quality control, turnaround time, and all other relevant production and performance tracking metrics.

3.5.2.4 Turnaround time. “Turnaround time” is defined as the number of business days between the Vendor’s receipt of an accurate order file from the State and the corresponding completed package entering the mail stream from the Vendor’s fulfillment center.

Turnaround time does not include federal holidays. The Vendor must place 100% of packages into the mail within 7 business days.

3.5.2.5 Performance Penalties. Any agreement reached resulting from this RFP may be terminated for non-performance. The State may charge a penalty of $10 per transaction for plates and accompanying documentation delivered outside of the acceptable turnaround time.

3.5.3 License Plate Inventory

3.5.3.1 Inventory Management. The Vendor must provide a just-in-time inventory management plan to minimize inventory costs and maximize efficiency while meeting production and quality demands. The Vendor’s inventory management plan must be capable of consistently and dependably delivering all materials and supplies necessary for production to PI in a timely, secure, and efficient manner.

3.5.3.2 Inventory Tracking. The Vendor must capture and analyze historical inventory trends to ensure that each county office location maintains an optimal 90-day license plate inventory and adequate registration printing supplies inventory. The 90-day inventory must follow higher plate re-issue year levels and lower plate non re-issue year levels.

3.5.3.3 Bulk shipping. The Vendor must be capable of bulk shipping license plates to all South Dakota county offices and the State’s main Pierre office location. All packaging practices and materials must be approved by the State.

4.0 Project Deliverables/Approach/Methodology

The vendor must describe in detail how its proposed deliverables will meet the needs of the State as described in Section 3. At its sole discretion, the State may consider a solution that includes any of these deliverables or consider deliverables not originally listed.

An vendor must highlight any requirement in Section 3 or Section 4 that the vendor’s proposed deliverables cannot comply with, and the vendor must provide any suggested “work-around” to the requirement in question or a future date that the vendor will be able to comply with the requirement.

4.1 The vendor’s proposal must include a:

Project Management Plan Project Schedule Risk Management Plan Data Conversion Plan, if applicable Requirements Traceability Matrix Communication Plan Testing Plan Training Plan Go-Live/Cutover Plan Post-Implementation Support (or Maintenance and Operations Plan)

In addition, the vendor’s proposal must include how its proposed deliverables will meet the following IT requirements (General, State Hosted, and Vendor Hosted). If the vendor’s proposal includes an option for a state hosted solution and an option for a vendor hosted solution, the vendor must provide a separate response for each proposed solution and how each solution will meet the requirements in Sections 3 and 4.

4.2 GENERAL IT REQUIREMENTS

4.2.1 Hosting and Data Access Requirements

The State will own all data tables created as a result of the Agreement. The State must have the ability to manipulate data, run reports as needed, pull code tables, access raw data, and develop dashboards as needed through Microsoft Power BI, ESRI, Tableau, and associated platforms.

The vendor’s proposal must describe how the State can access data housed within the proposed solution for ingestion into a state data repository, encompassing available methodologies (e.g.,…