Request for Proposal (RFP)

R005370

Quantitative Market Simulation Research

April 10, 2026

CALIFORNIA STATE LOTTERY

700 North 10th Street

Sacramento, California 95811-0393

REQUEST FOR PROPOSAL

Notice to Prospective Proposers

April 10, 2026

You are invited to review and respond to this Request for Proposal (RFP) entitled (RFP #R005370 Quantitative Market Simulation Research. In submitting your proposal, you must comply with these instructions.

Note that all agreements entered into with the California State Lottery (Lottery) will include by attachment Terms and Conditions and Contractor Certification Clauses that are hereby included in this solicitation.

In the opinion of the Lottery, this RFP is complete and without need of explanation.

However, if you have questions, or should you need any clarifying information, the contact person for this RFP is:

Kevin Blunt

California State Lottery solicitations@calottery.com

Please note that no verbal information given will be binding upon the Lottery unless such information is issued in writing as an official addendum.

Kevin Blunt

Procurement Specialist

RFP R005370

Quantitative Market Simulation Research i April 10 , 2026

Table of Contents

Request for Proposal (RFP) ..................................................................................... i

I. GENERAL INFORMATION

Purpose Minimum Proposer Qualifications Background Submission of Proposal Projected Timetable Verbal Communication Examination of All Requirements Amendments to the RFP

Written Questions Written Intent to Bid Property of the Lottery Proposals are Public Records Acceptance Period Conditions of Submission Nonmaterial Deviation Rejection of Proposals Agreement Execution Hiring of Lottery Personnel Bid Protests Governing Law and Regulations

II. PROPOSAL REQUIREMENTS

Mandatory Submittals Rated Submittals

III. PROPOSAL EVALUATION AND AWARD

Mandatory Submittals Review (Pass/Fail) Rated Submittals Evaluation Cost Sheet Assessment Best Value Proposal Determination Right to Cancel

IV. DELIVERY OF PROPOSAL

A. Delivery

ATTACHMENT 1 – TRANSMITTAL LETTER

ATTACHMENT 2 – REQUIRED ATTACHMENT CHECKLIST

ATTACHMENT 3 – COST SHEET .................. ERROR! BOOKMARK NOT DEFINED.

ATTACHMENT 4 – CERTIFICATION

Quantitative Market Simulation Research ii April 10 , 2026

ATTACHMENT 5 – DISABLED VETERAN BUSINESS ENTERPRISE

PARTICIPATION (DVBE) – IF APPLICABLE

ATTACHMENT 6 – SMALL AND MICROBUSINESS PARTICIPATION – IF

APPLICABLE

ATTACHMENT 7 – PAYEE DATA RECORD (STD 204)

ATTACHMENT 8 – GENAI IMPACT ASSESSMENT FORM

ATTACHMENT 9 – RATED SUBMITTALS

ATTACHMENT 10 – PROPOSED CONTRACT TERMS AND CONDITIONS

Quantitative Market Simulation Research 3 April 10 , 2026

I. GENERAL INFORMATION

Purpose

The California State Lottery (Lottery) is inviting responses from qualified vendors to conduct quantitative consumer research (English Only) studies specifically utilizing spending exercises/market simulations with the following objectives.

For Scratchers® concept testing:

1. Gain insights into which Scratchers® concept has the greatest potential sales and profit gains if launched.

2. Estimate incremental concept trial, playership, sales, profits, and cannibalization at other price points or within the price point from each of the concepts.

3. Compare trial, appeal, and interest among the concepts and explore why players liked/disliked them.

4. Any other secondary objectives which may be required based on the specific Scratchers® concepts being tested.

For Other Market Simulation testing:

1. Objectives to be determined on a project-by-project basis but shall be similar in breadth and detail to those listed above for Scratchers® concept testing.

At the Lottery’s request, the Contractor may be required to provide additional associated services in support of quantitative spending exercise/market simulation research services.

The Agreement resulting from this RFP will be for a period of two (2) years with two (2) optional one-year extensions.

Minimum Proposer Qualifications

This Request for Proposal (RFP) is open to all Proposers that, at the time of proposal submission, meet the following minimum Proposer qualifications:

Quantitative Market Simulation Research 4 April 10 , 2026

1. Contractor shall be able to conduct these online surveys as described in Attachment 10 – Proposed Contract Terms and Conditions, Exhibit A, Scope of Work (SOW).

2. Contractor and the proposed project team conducting research must have conducted a minimum of three quantitative research studies including product concept testing with a spending exercise (as defined in the SOW) to estimate incremental sales and cannibalization within the past five years.

3. Contractor must be able to conduct each study and deliver written topline report deliverables no later than 8 weeks after each project kick-off meeting with the Lottery. Proposer shall adhere to the mutually agreed upon timeline details.

4. Meet the requirements specified in RFP section II.A, Mandatory Submittals.

5. Be a legal business entity and licensed to do business in California.

Background

1. The California State Lottery was created in 1984 to provide supplemental funding for public schools and colleges in California. For the past fiscal year, Lottery sales were about $9 billion, with about $2 billion of that going to California’s public schools. It is very important for the Lottery to not solely focus on sales gains, but also consider profits in its decisions to launch new games.

In the past fiscal year, Scratchers® sales made up 75% of total Lottery sales, proving that this product category is essential to Lottery sales and profits. Currently, the Lottery launches $1, $2, $3, $5, $10, $20, $25, $30 and $40 games. Below is a table of how many games are to be launched per price point this fiscal year and how many games are recommended to be sold concurrently at retailer. On average 50-55 games are launched each fiscal year, with the majority of retailers displaying 28 or more games at a time. Each year, there are changes to the number of games launched per price point but typically nothing more than a 1-2 game variation. In the future, the Lottery may also consider adding/removing full price points, but those actions would be tested first through studies covered in this Agreement.

Scratchers® Ticket Price

Number of games launched in FY 2025

Approx. number of games recommended to be sold concurrently at retailers

$1 4 1

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Generally, the higher the price of the Scratchers® game, the lower the profit margins. Players have proven that they need higher prizes for them to spend more on each game and move to those higher price points, therefore the profits gained per ticket is lower for the Lottery. For example, the $30 profit margin is roughly 9% per ticket, versus 11% for $20 games and 14% for $10 games.

2. Every year the Lottery considers a multitude of strategies and tactics to optimize sales, payouts, and profits from its games. Sometimes it is simple changes such as (re-)releasing high-selling Scratchers®, and other times it can be a much larger or holistic change to the Scratchers®/product portfolio.

To test larger portfolio changes, the Lottery conducts market simulation/spending exercise research studies. This method has proven to be the most effective at estimating changes to sales and profits for the entire portfolio of games, both in relation to other concepts but also in absolute magnitude. Some examples of past changes tested using this methodology were:

• Adding/removing a price point to/from the Scratchers® mix

• Adding/removing games shown within a price point at retail

• Adding very unique and diverse Scratchers® ticket themes

• Changing the price and game play of a draw game (SuperLotto

Plus®, Mega Millions®, etc.)

The above list is not exhaustive of the possible scenarios to be tested during the term of this Agreement but reflects a sampling of what types of studies have been done previously for context.

3. In the past, market simulation/spending exercise studies were typically handled one project/contract at a time. However, due to ever-changing consumer trends and a greater importance on profit implications, studies

$2 10 3

$3 5 3

$5 10 5

$10 11 6

$20 9 6

$25 1 1

$30 2 2

$40 1 1

Quantitative Market Simulation Research 6 April 10 , 2026 are used more frequently. Therefore, this solicitation will result in a single Agreement to cover multiple market simulation/spending exercise studies.

The Lottery expects the need for one or two spending exercise/market simulation studies per year. Depending on the specific concepts ready for testing, each study could have multiple objectives, such as testing specific $30 concepts as well as the impact of removing the $30 price point overall.

Two studies per year allows the Lottery time to develop necessary concepts and ensures we are testing the most up-to-date concepts and addressing priority concerns of the Product Development team throughout the year.

4. This research will test the impact of actual ticket or game concepts. The Lottery has tested (and will continue to test) preference for themes and other individual ticket/game elements prior to completion of a spending exercise/market simulation study. The top themes or ideas from prior research studies are then put into this research as actual game designs to see the impact on sales and profits.

5. Spending exercise studies shall address potential cannibalization of other price points or games. The Lottery defines cannibalization of products as the decrease in sales on a pre-existing Lottery game resulting from a release of a new or competing Lottery game(s). A good example of potential cannibalization is the relationship between $30 games and the $20 price point. The Lottery regularly sees a dip in sales for the $20 price point whenever a new $30 game is launched. This behavior makes it imperative that any research and sales estimates for new ticket concepts needs to consider the potential cannibalization of similar games and other lower price points.

6. The Lottery segments its players into “player segments” based on the games they play as well as how often they play them. The definitions and incidence of each segment is in Attachment 10, Exhibit A, Attachment A, Player Segment Definitions and Population Incidences. The Lottery will be interested in understanding the results of this research by these various segments as described in Exhibit A, Scope of Work. Depending on each study’s objectives, the target sample may be a combination of the segments.

Submission of Proposal

This RFP is issued by the Lottery’s Procurement Services and Support office.

The issuing office is the sole point of contact regarding this RFP. All notices or questions pertaining to this RFP must be directed to:

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California State Lottery Procurement Services and Support Attention: Kevin Blunt 700 North 10th Street Sacramento, California 95811 Email: solicitations@calottery.com

No contact regarding this RFP will be allowed between Proposer or potential Proposer and members of the Lottery Evaluation Team, Lottery Commissioners, or Lottery staff after issuance of the RFP with the exception of the Lottery contact person named above. Any such contact may disqualify a Proposer or potential Proposer from further consideration. Requests for clarification will be allowed, provided such requests are made through the above contact.

Projected Timetable

The following projected timetable is subject to change and is provided for informational and planning purposes only. The Lottery may change the dates after Proposals Due without amending this RFP.

KEY ACTION DATE

Request for Proposal Release Date April 10, 2026 Intent to Bid and/or Written Questions Due

April 20, 2026 (by 3:00 P.M.)

Responses to Proposer Questions Posted

April 30, 2026

Proposals Due May 7, 2026 (by 3:00 P.M.)

Evaluation Period May 8, 2026 – May 21, 2026 Notice of Intent to Award Posted May 26, 2026 Proposed Effective Date of Contract August 3, 2026

The Lottery reserves the right to adjust timetable events listed after the Proposals Due Date without issuance of an addendum.

Verbal Communication

Any verbal communication with a Lottery employee concerning this RFP is not binding on the Lottery and will in no way alter a specification, term, or condition of this RFP or of any resulting agreement.

mailto:solicitations@calottery.com

Quantitative Market Simulation Research 8 April 10 , 2026

Examination of All Requirements

Proposers are strongly encouraged to examine this document thoroughly and become familiar with the RFP’s requirements, including but not limited to those set forth in Attachment 10 – Proposed Contract Terms and Conditions, Exhibit A, Scope of Work, and Exhibit C, General Terms and Conditions. Proposals must be based solely on the information and materials contained in the RFP and any amendments thereto and on other written communications regarding the RFP that are issued by the Lottery contact person named above. Proposers must disregard all other information, including draft material, newspaper advertisements or articles, and verbal representations.

If a Proposer discovers an error in this RFP but fails to notify the Lottery of that error, the Proposer submits a proposal at its own risk. If awarded the Agreement, the Proposer will not be entitled to additional compensation or time due to the error or its subsequent correction. Unless amended as part of a Response to Proposer Questions (see Sections I.E and I.I), the Agreement’s exhibits (Exhibit A, Scope of Work, Exhibit B, Budget and Payment Provisions, and Exhibit C, General Terms and Conditions) are non-negotiable. However, the Lottery reserves the right to adjust the language within the Scope of Work and the resulting Agreement awarded from this solicitation. Therefore, final Agreement language may deviate from the provisions provided in this solicitation.

The Lottery may, in its sole discretion, refuse to accept a proposal if it fails to furnish all required information or follow the format specified in this RFP.

Amendments to the RFP

The Lottery may cancel or amend this RFP at any time. Notice of amendment or cancellation will be sent to Proposers that submitted a written Intent to Bid if the amendment or cancellation occurs prior to proposal submission, and to Proposers that submitted a proposal if the amendment or cancellation occurs after proposal submission.

Written Questions

Questions regarding the content of this RFP must be submitted in writing via email to the Lottery contact person specified in Section I.D – Submission of Proposal by the due date and time specified in Section I.E - Projected Timetable. It is the Proposers sole responsibility to verify receipt of submitted questions. The Lottery may, in its sole discretion, respond to written questions received after the specified due date and time. Questions and responses will

Quantitative Market Simulation Research 9 April 10 , 2026 be provided to firms that submitted a written Intent to Bid and will also be posted on the Lottery’s website and the California State Contracts Register (CSCR).

Written Intent to Bid

Interested Proposers may submit an Intent to Bid in writing via email to the Lottery contact person by the date and time specified in the Projected Timetable in order to receive direct communications from the Lottery about this RFP.

The written Intent to Bid must include the Proposers contact person’s name, email address, mailing address, telephone number, and fax number (if applicable).

If a written Intent to Bid is not sent, a proposal may still be submitted. However, RFP notices and addendums issued by the Lottery will only be sent directly to Proposers with a written Intent to Bid on file. After the proposal due date, only Proposers that have submitted proposal packages in accordance with section II, Proposal Requirements, and section IV, Delivery of Proposal, to the Lottery contact person specified in section I.D. will receive direct RFP communication and notices.

All interested parties may access such notices and addendums on the Lottery’s website and CSCR.

Property of the Lottery

All proposals become the property of the Lottery upon receipt and will not be returned to Proposers.

Proposals are Public Records

Pursuant to the California Public Records Act, California Government Code §§ 6250 et seq., all data, materials, information, and documents submitted to the Lottery by a Proposer may be incorporated into a publicly-available Agreement and may otherwise be subject to disclosure upon request by competitors and members of the public after the apparent successful Proposer has been announced. The Lottery will process all Public Records Act requests in accordance with the laws of the State of California. A Proposers labeling of any proposal materials as “confidential” or otherwise exempt from disclosure is not binding on the Lottery, and the Lottery will not be liable to the Proposer or to any other person or entity for disclosing information as required by law.

https://www.calottery.com/vendor-opportunities https://caleprocure.ca.gov/pages/Events-BS3/event-search.aspx https://www.calottery.com/vendor-opportunities https://caleprocure.ca.gov/pages/Events-BS3/event-search.aspx

Quantitative Market Simulation Research 10 April 10 , 2026

Acceptance Period

As a condition of submission, each Proposers proposal constitutes an unconditional offer to the Lottery and is irrevocable for 180 days from the date submissions are due.

Conditions of Submission

Proposals to the RFP and any subsequent presentations must be submitted with the best offer they can to fulfil the required Exhibit A, Scope of Work, the Proposer can offer. Proposers will be allowed to withdraw their proposals only when a written request for withdrawal is received by the Lottery prior to the deadline for final bid submission. Requests for bid withdrawal must be filed in the same manner as proposals. After the submission deadline, Proposers cannot replace, change, or modify their proposals in any way except as specified in this RFP or a subsequent addendum to this RFP.

Nonmaterial Deviation

The Lottery may waive any deviation in a proposal that the Lottery determines to be nonmaterial. The Lottery’s waiver of a nonmaterial deviation in no way modifies the RFP’s requirements or excuses Proposers from full compliance with the Agreement’s requirements.

Rejection of Proposals

The Lottery reserves the right to reject any or all proposals to this RFP. The Lottery may reject any proposal that is conditional, contains additions not called for, is incomplete, contains erasures or irregularities of any kind, or contains material deviations. Any provisions of this RFP that are defined as requirements will be considered mandatory. In the interest of promoting competition, the Lottery may allow a Proposer to correct an inaccuracy in its proposal. If all Proposers fail to meet one or more of the mandatory requirements, the Lottery reserves the right to continue evaluation of the proposals and to select the proposal that most closely meets the requirements specified in this RFP.

Agreement Execution

The Lottery Director or designee will make the final determination of Agreement award, subject to California Lottery Commission approval if applicable. In making this determination, the Lottery Director or designee may be assisted by an Evaluation Committee.

The Lottery, in its sole discretion, may treat failure or refusal by the intended awardee to begin performance within ten state working days of execution as

Quantitative Market Simulation Research 11 April 10 , 2026 repudiation of the Agreement. The Lottery may then either (1) select another proposal which conforms to the requirements of this RFP and represents, in the Lottery’s sole discretion, the best value; or (2) reject all proposals. The Lottery may also seek compensation for any damages associated with repudiation of the Agreement.

The Lottery reserves the right to cancel all elements of this solicitation or rescind the announced award at any time before execution of the Agreement.

Issuance of this RFP does not constitute a commitment by the Lottery to award an Agreement.

Hiring of Lottery Personnel

At all times during the proposal evaluation period and continuing through award or rejection of all proposals, Proposers are prohibited from officially or unofficially making any employment offer or proposing any business arrangement whatsoever to any Lottery employee involved in the evaluation of proposals. A Proposer making such an offer or proposition will be disqualified from further consideration.

Bid Protests

1. Only an actual Proposer may protest a contract award, and only on the following grounds:

a) The Lottery did not follow its own written procedures in selecting the apparent successful Proposer, and

b) The protestor can demonstrate that had the Lottery followed its procedures, the protesting Proposer would have been the successful Proposer.

2. A notice of intent to protest must be received by the Lottery within seven (7) business days after the Lottery posts a notice of intent to award on its website. A timely notice of intent to protest is a prerequisite to any protest.

3. Provided that a timely notice of intent to protest has been filed with the Lottery, a protest must be filed within twelve (12) business days after the Lottery posts its notice of intent to award on its website. A protest must include a complete and detailed explanation of how the facts support the protest.

4. All protest documents must be received by the Lottery at its Sacramento headquarters no later than 3:00 p.m. Pacific Time on the last day of the applicable protest period. The envelope containing protest documents or

Quantitative Market Simulation Research 12 April 10 , 2026 the cover page to a protest must be addressed to the attention of the Director and must be clearly labeled: “Protest to the (title and number of the solicitation), DO NOT OPEN IN MAILROOM.” Untimely protests will not be considered.

5. It is the protestor’s responsibility to ensure that the Director has all information and arguments that the protestor deems relevant and necessary to resolve the protest. The Director may request additional information in writing from the protestor or from other sources, including the apparent successful Proposer and Lottery staff, as he/she deems appropriate for resolution of the protest.

6. The Director will issue a written decision within fifteen (15) days of completion of his/her review of the record.

7. In his/her sole discretion, the Director may determine that it is in the best interest of the Lottery to proceed with contract award and performance, while a protest is pending, and may direct a Contractor to commence work.

Governing Law and Regulations

The Lottery’s governing law and regulations, including the California State Lottery Act and the Lottery’s procedures for procurement of goods and services, are available on the Lottery’s website. It is each Proposers responsibility to be familiar with these laws and regulations.

II. PROPOSAL REQUIREMENTS

Proposals submitted in response to this RFP must comply with the requirements of this section. Failure to complete and submit the information listed in this section in the specified format may result in rejection of the Proposers proposal.

Proposers must provide as much information as necessary in their proposal for the Lottery to award an Agreement. At a minimum, proposals must be fully responsive to the specific requirements stated in this RFP. Proposers must identify any requirements of this RFP they cannot satisfy.

Mandatory Submittals

Proposers must not alter the Lottery’s mandatory submittals. Any change made to the forms, including but not limited to exceptions, deletions, and additions, https://www.calottery.com/about-us

Quantitative Market Simulation Research 13 April 10 , 2026 may be the basis for disqualification of a Proposers proposal. The required forms can be located at the Lottery’s website or by going onto the CSCR.

Proposers must complete and submit the following as detailed below:

1. Transmittal Letter (Attachment 1):

Proposers must submit a cover letter indicating that it is responding to the RFP and that all of the RFP requirements have been met. The letter must be signed by a representative identified in the Proposer Certification as legally authorized to contractually bind the Proposers.

Proposers must disclose whether they consulted with others in the preparation of this proposal. If others were consulted, they must identify those with whom they consulted and provide contact information. Any change or addition to those consulted while this RFP is pending must be reported to the Lottery. Failure to do so may result in a decreased rating level or rejection of a Proposers proposal. The Lottery reserves the right to contact these consultants. Under no circumstances may Proposers submitting or considering the submittal of a proposal consult with a competing Proposer.

Proposers must also disclose any potential, actual or apparent conflicts of interest that may exist between any current client and the Lottery. Because of the complexities involved in defining conflicts of interest, the Lottery will make a final determination as to whether a disqualifying conflict exists.

Note: If there are no conflicts, provide a statement to this effect.

2. Required Attachment Checklist - (Attachment 2)

Proposers must submit the Required Attachment Checklist to confirm all required documents have been included in the proposal submittal package.

3. Cost Sheet (Attachment 3):

Proposers must complete and submit Attachment 3, Cost Sheet for the services identified in Exhibit A, Scope of Work. Any changes made to the Cost Sheet by the Proposer, including but not limited to exceptions, deletions, and additions, may be the basis for disqualification.

4. Certification (Attachment 4):

Proposers must complete and submit the Certification form in their proposal package.

https://www.calottery.com/vendor-opportunities https://caleprocure.ca.gov/pages/Events-BS3/event-search.aspx

Quantitative Market Simulation Research 14 April 10 , 2026

5. Disabled Veteran Business Enterprise Participation (DVBE) – If applicable (Attachment 5):

In order to receive DVBE cost preference, Proposers must complete and submit the Disabled Veteran Business Enterprise Participation form in their proposal package. While not required for this solicitation, a preference of up to 5% will be applied, based on the level of DVBE participation proposed.

Additional details are provided in the DVBE form.

6. Small and Microbusiness Participation (SMP) – If applicable (Attachment 6):

In order to receive SMP cost preference, Proposers must complete and submit the Small and Microbusiness Participation forms in their proposal package. Based upon the nature of the goods and services to be utilized under this solicitation (as outlined in Exhibit A, Scope of Work), the Lottery has set a Small and Microbusiness Participation goal of 25% for utilization of small or microbusiness subcontractors under the contract resulting from this RFP. While not required for this solicitation, a preference of up to 25% will be applied, based on the level of SMP participation proposed. Additional details are provided in the SMP form.

7. Payee Data Record (STD 204) – (Attachment 7)

Proposers must complete and submit the Payee Data Record in the proposal package.

8. GenAI Impact Assessment Form (CSL1499) – (Attachment 8)

Proposers must complete and sign the GenAI Impact Assessment Form if:

1) the Proposer intends to provide Generative Artificial Intelligence (GenAI) as a Contract deliverable; or (2) the Proposer intends to utilize GenAI, including GenAI from third parties, to complete any portion of the Contract deliverables or services.

9. Rated Submittals

See Section II.B for details of contents.

Section II.A - Summary:

Mandatory Submittals: Pass/Fail Failure to submit the following forms will result in Proposer disqualification:

Transmittal Letter (Attachment 1)

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Required Attachment Checklist (Attachment 2) Cost Sheet (Attachment 3) Certification (Attachment 4) Payee Data Record (STD 204) (Attachment 7) GenAI Impact Assessment Form (Attachment 8) Rated Submittals (Attachment 9)

Failure to submit the following forms will not result in Proposer disqualification but will render the Proposer ineligible to receive DVBE and/or SMP preference during the Cost Sheet Assessment.

DVBE and SMP Assessment (Attachments 5 and 6) Disabled Veteran Business Enterprise Participation Incentive Program

(if applicable). A preference of up to 5% will be applied, based on the level of DVBE participation proposed.

Small & Micro Business Participation (if applicable). A preference of up to 5% will be applied, based on the level of SMP participation proposed.

Rated Submittals

1. Rated Submittals and Evaluation Criteria

Proposals submitted in response to this RFP will be rated in comparison with other submitted proposals. Proposers must submit the following information, which will be evaluated under the corresponding criteria and rated in accordance with the Rating Chart in section III, Proposal Evaluation and Award.

The relative importance of each category of the rated submittals is also set forth in section III, Proposal Evaluation and Award.

a. Research Methodology and Analysis (maximum 10 pages)

Total Relative Value Compared to Other Rated Submittals: 30 points

In this section, the Proposer must describe its proposed research methodology and analysis to perform the work as described in Attachment 10 – Proposed Contract Terms and Conditions, Exhibit A, Scope of Work. At a minimum, this section must include the following:

i. Provide a thorough explanation of the proposed spending exercise/market simulation research methodology and explain how it will address each stated objective via the survey instrument and

Quantitative Market Simulation Research 16 April 10 , 2026 the analysis of responses. This must include a high-level questionnaire flow and examples of the types of questions to be asked of respondents.

ii. Explain and/or showcase a mockup of the proposed spending exercise/market simulation activity. Specifically, how would the exercise look and function in the example of Scratchers® concept testing and in which ways could it be modified to meet the objectives of other studies testing more broad market simulations. Will you be able to include full-sized ticket images (scaled proportionately) or only ticket inserts? (Full-sized tickets will receive preference in scoring but are not required.) For market simulations not specifically testing Scratchers® concepts, are there any criteria or limitations to the types and quantity of stimuli to be shown?

iii. Thoroughly explain the advanced statistical techniques that will be used in the spending exercise/market simulation analysis and development. Also, describe what criteria or other best practices will be used to come up with the number of rotations or scenarios seen by each respondent.

iv. Explain the types of logic which can be applied in the spending exercise/market simulation.

v. Outline the approximate quantity and types of questions to be asked in any “deep dive” sections. Provide an explanation of how customizable the “deep dive” section can be between studies and the amount of client input which will be allowed. Additionally, explain how these questions will be analyzed and utilized in the final written reports.

vi. What is the expected length of interview (LOI) for each section of the study (refer to cost sheet for sections). Please explain why this LOI will be reasonable for accomplishing the objectives of this study.

vii. Explain the process for collaboration with the client in the research design, questionnaire development, and analysis phases of a project.

Evaluation Criteria for Research Design and Analysis:

Clarity and thoroughness of explanation for how research design and following analysis addresses the objectives.

Clarity of explanation and quality of advanced statistical techniques proposed for market spending analysis; specifically, in how well it will

Quantitative Market Simulation Research 17 April 10 , 2026 meet the needs specified in Attachment 10 – Proposed Contract Terms and Conditions, Exhibit A, Scope of Work.

Extent of collaboration and best practices utilized during questionnaire development process.

Quality of research design in how it incorporates industry best practices to minimize biases and encourage quality responses.

b. Corporate and Personnel Qualifications (maximum 3 pages plus Key Personnel narratives)

Total Relative Value Compared to Other Rated Submittals: 25 points

In this section, the Proposer shall provide a written description and examples outlining its general research capabilities along with the proposed Lottery account resources and personnel experience.

Specifically:

i. The Proposer must outline the resources and research capabilities to conduct all studies as outlined in Exhibit A, Scope of Work, including spending exercises, market simulations, and other advanced quantitative choice-based concept testing.

ii. The Proposer must disclose how subcontractors would be used, if at all, for any element of this project.

iii. The Proposer must outline the staff resources it will commit to this project. This includes details on the number of staff positions involved with the project, and the roles and responsibilities of each individual. Critical staff members must be clearly designated as “Key Personnel.”

iv. Proposers must submit a narrative for each of the Key Personnel that elaborates on how the individual’s past experience and credentials are best suited for their role and responsibilities on the Lottery account. This must be limited to one page per staff member.

v. The Proposer shall provide a list of research projects over at least the past two years that were both a) similar to the services specified in the attached Exhibit A, Scope of Work, and b) handled by the Key Personnel to be assigned to the Lottery account. This should include the company or industry the research was conducted for, the type of research/research objectives, research methodology employed, the dates of the project, and the Key Personnel on the team that were

Quantitative Market Simulation Research 18 April 10 , 2026 part of the project and their roles. At least one of these projects must NOT be a simulation involving Scratchers®.

Evaluation Criteria for Corporate, Personnel, and Subcontractor Qualifications section (Experience):

Overall research capabilities, including years and breadth of experience in the market research industry.

Degree of relevancy, quantity, and quality of demonstrated experience (for the Proposer and its subcontractors) in conducting spending exercises and/or market simulation studies similar to the Lottery’s business needs, as described in Attachment 10 – Proposed Contract Terms and Conditions, Exhibit A, Scope of Work.

Degree of relevancy, quantity, and quality of demonstrated experience (for the Proposer) in conducting other advanced quantitative choice-based concept testing similar to the Lottery’s business needs, as described in Attachment 10 – Proposed Contract Terms and Conditions, Exhibit A, Scope of Work.

History and experience with collaboration and iterative processes with a client.

Prior experience with research in the gaming industry.

Reliance on subcontractors to perform significant portions of the contracted work. (Less reliance on subcontractors is viewed more favorably.)

Extent of relevant education and experience, and the professional merits of Key Personnel as it pertains to their designated Lottery account roles and duties. (Experience and qualifications of Key Personnel with the most hours dedicated to the Lottery account will be weighted more heavily.)

c. Project Management, Deliverables, and Schedule (maximum 3 pages plus examples)

Total Relative Value Compared to Other Rated Submittals: 15 points

In this section, the Proposer provides details on how the overall projects will be managed from start to final deliverable receipt. This includes implementing the surveys, as well as providing the data files and all other deliverables specified in Exhibit A, Scope of Work.

i. Provide a project timeline/schedule detailing key milestones, including but not limited to the project kick-off meeting, questionnaire development, fielding dates, analysis work, and deliverables.

Quantitative Market Simulation Research 19 April 10 , 2026

ii. Describe the project management strategies to be employed in all phases of the project, from questionnaire development, fielding, and analysis, through deliverable creation and presentation.

iii. Include typical business hours when the project manager will be available for support or questions.

iv. Provide examples of past deliverables for projects with similar objectives. This does NOT need to be complete reports or contain any confidential or privileged information, such as client names.

Redacted excerpts, screenshots, and generalized explanations will be sufficient to meet this requirement.

Evaluation Criteria for Project Management and Deliverables, and Schedule:

Demonstrate the quality of project management strategies to promote timely and quality deliverables.

Proposed timeline is reasonable, expedient, and meets the required timeline as described in Exhibit A, Scope of Work.

Demonstrated quality of deliverables and reports.

III. PROPOSAL EVALUATION AND AWARD

The Lottery will conduct a fair and impartial evaluation of proposals received in response to this RFP. The complete evaluation process is comprised of the following phases:

1. Mandatory Submittals Review

2. Rated Submittals Evaluation

3. Cost Proposal Assessment

4. Best Value Proposal Determination

Proposals will be reviewed by the Lottery evaluation team in accordance with the criteria and ratings indicated in this RFP. The Lottery may request clarification from Proposers during any phase of the evaluation process.

Mandatory Submittals Review (Pass/Fail)

The documents required in Section II.A must be completed and submitted before further consideration of a Proposers proposal.

Quantitative Market Simulation Research 20 April 10 , 2026

All proposals shall be reviewed to verify the Proposer has met the RFP submission requirements. Proposals that have not followed the rules, do not meet minimum content, requirements, qualifications, quality standards, make unacceptable exceptions to the terms and conditions, or are non-responsive to the required responses in this RFP will be eliminated from further consideration.

Proposals meeting the Mandatory Submittals requirements will advance to Rated Submittals Evaluation.

Rated Submittals Evaluation

The information requested in section II.B, Rated Submittals and Evaluation Criteria, as listed below, will be evaluated using the criteria identified in section

II.B.

POINT SCORING SCHEDULE

Rated Submittal Section Points Research Methodology and Analysis 30 Corporate and Personnel Qualifications 25 Project Management, Deliverables, Schedule 15 Rated Submittal Evaluation: Total Points Possible 70

The rated submittal section will be rated and scored in accordance with the Rating and Definition chart on the next page. The Proposer will receive 0 points if they receive a score of Does Not Meet. Proposer will receive the maximum points allocated to that section if the proposal receives a score of Superior within that section. Points will be rounded to the nearest percent.

Proposers that meet the minimum score requirement of 35 points in the Rated Submittals Evaluation will be a “Qualified Proposer” and advance to the Cost Sheet Assessment.

(Continued on next page)

Quantitative Market Simulation Research 21 April 10 , 2026

Rating and Definition

Rating Definition

Superior -receives 100% of maximum points within section

Proposal exceptionally exceeds performance or capability requirements; proposal demonstrates extraordinary strengths that will more than significantly benefit the Lottery.

Significantly Exceeds receives 85% of maximum points within section

Proposal significantly exceeds performance or capability requirements; proposal demonstrates exceptional strengths that will significantly benefit the Lottery.

Exceeds receives 70% of maximum points within section

Proposal exceeds performance or capability requirements; proposal has one or more strengths that will benefit the Lottery.

Meets receives 50% of maximum points within section

Proposal meets specified minimum performance or capability requirements necessary for acceptable contract performance.

Meets with Exceptions receives 15% of maximum points within section

Proposal demonstrates weak performance or capability standards necessary for minimum contract performance; proposal has one or more weaknesses that offset any strengths.

Does Not Meet receives 0 points

Proposal fails to meet specified minimum performance or capability requirements. Proposals with an unacceptable rating are not awardable.

Cost Sheet Assessment

Proposers must complete and submit Attachment 3, Cost Sheet as part of the proposal. The costs identified in the Cost Sheet must be provided in US dollars

Quantitative Market Simulation Research 22 April 10 , 2026 and cover all services outlined in Attachment 10 – Proposed Contract Terms and Conditions, Exhibit A, Scope of Work.

The Lottery will assess each Qualified Proposer’s Cost Sheet to determine its responsiveness to the RFP’s requirements and its overall value to the Lottery.

As part of this assessment, the Lottery will also compare cost sheets from each of the Qualified Proposers.

Methodology:

The Lottery will use a pre-determined sampling model to generate expected cost estimates for initial and subsequent surveys of various incidence rates, sample sizes, and concepts for the three-year contract term. The sum of those cost estimates will become the Proposer’s Cost Proposal for evaluation purposes.

Each Proposer’s Cost Proposal will be evaluated and scored in accordance to the following formula. A maximum of 30 points and a minimum of 0 points can be allotted per Cost Proposal. With this formula, the lowest Cost Proposal will receive the most points in the Cost Sheet Assessment, and the highest Cost Sheet will receive the lowest points in the Cost Sheet Assessment.

Specifically, each Proposer will receive a base of 15 points. Then the Proposer’s remaining points will be added or subtracted based on the Proposer’s percentage difference from the average cost of all qualified Proposers.

(Average Cost-Proposal Cost)/Average Cost = % difference from Average Cost

Cost Assessment Point Formula: 15 + [15 * (% difference from Average Cost)]

For example, if the Proposer’s total project cost is 50% lower than the average cost of all qualified Proposers, then the Proposer will receive 15 points plus an additional 7.5 points (50%*15pts=7.5pts). The Proposer’s final cost assessment score would be 22.5 points total.

If a Proposer’s total project cost is 25% higher than the average cost of all qualified Proposers, then the Proposer’s final cost assessment score would be 11.25 points total (-25%*15pts=-3.75pts; final score = 15-3.75pts=11.25 pts).

Each qualified Proposer’s Cost Sheet shall be evaluated and scored.

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Changes made to Attachment 3, Cost Sheet including but not limited to exceptions, deletions, or additions, may form the basis for rejection of the proposal.

1. Small Business Preference

a. Small Businesses (SB). If there is at least one (1) California certified SB competing as the lead or prime contractor and the lowest qualified bid is submitted by a non-small business, the SB Preference shall be applied and computed as follows:

i. Only Proposers that are qualified Proposers shall be entitled to SB preference.

ii. The SB preference amount shall be five (5) percent of the cost submitted by the lowest qualified non-small business proposer. This amount shall be deducted from the submitted costs of all qualified certified SB proposers.

iii. After all the calculations are determined, the proposer(s) with the lowest cost qualified bid (and including all incentive calculations) shall be selected for contract award.

iv. This calculation is only used in the evaluation process and shall not be included in the final agreement.

SB certification information can be found at the following internet web site: https://www.dgs.ca.gov/PD/About/Page-Content/PD-Branch-Intro- Accordion-List/Office-of-Small-Business-and-Disabled-Veteran- Business-Enterprise/Certification-Program

b. Non-Small Business (Non-SB). If there is not a responsive California certified SB competing as the lead or prime contractor and the lowest qualified bid is submitted by a Proposer that is not eligible for Non-SB preference (as described herein), then Non-SB preference shall apply and be calculated as follows:

i. Only Proposers that are qualified Proposers and shall provide a minimum of 25% SB participation in the performance of the contract shall be entitled Non-SB preference.

ii. The Non-SB preference shall be five (5) percent of the cost submitted by the lowest qualified Proposer that is not eligible for this preference. The amount shall be deducted from the submitted costs

Quantitative Market Simulation Research 24 April 10 , 2026 of all qualified Proposers that meet the 25% Small Business (SB) participation requirements.

iii. After all the calculations are determined, the Proposer(s) with the lowest cost qualified bid (and including all incentive calculations) shall be selected for contract award.

iv. This calculation is only used in the evaluation process and shall not be included in the final agreement.

SB certification information can be found at the following internet web site: https://www.dgs.ca.gov/PD/About/Page-Content/PD-Branch-Intro- Accordion-List/Office-of-Small-Business-and-Disabled-Veteran- Business-Enterprise/Certification-Program

(Note: Non-SB Preference cannot displace a direct award to a California certified Small Business or a California certified Micro Business).

During the Contract term, the Lottery’s SMP preference compliance shall be calculated based on the Lottery’s completed work as verified by an audit of Lottery’s invoices and Lottery’s payments to designated subcontractors. Attachment 7, Small and Microbusiness Participation, if applicable, shall be completed by the Proposer.

c. The preference under this subsection may not exceed $50,000.

2. Disabled Veteran Business Enterprise (DVBE) Preference

a. The Lottery recognizes disabled veterans for their service by establishing a Disabled Veteran Business Enterprise (DVBE) Participation Program. The program is intended to further veterans’ participation in Lottery contracting, promote competition and encourage greater economic opportunity.

b. The DVBE Program Requirement has been waived for this project.

However, Proposers may receive a percentage incentive based on the DVBE participation levels included in their proposal. Percentages shall be determined as follows:

DVBE Incentive:

Confirmed DVBE Participation DVBE Incentive

5% or Over 5% 4% to 4.99% 4% 3% to 3.99% 3%

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2% to 2.99% 2% 1% to 1.99% 1%

c. DVBE incentive shall applied as follows:

1. Only Proposers that are qualified Proposers shall be eligible for the DVBE incentive.

2. The DVBE incentive amount shall be calculated by multiplying the eligible Proposer’s specific DVBE incentive percentage by the lowest qualified Proposer’s cost. This amount shall be deducted from the cost submitted by the eligible Proposer. The incentive under this section may not exceed $100,000 and the combined DVBE incentives and SB preferences may not exceed $100,000.

3. SB preference (and non-SB preference) shall be calculated prior to the DVBE incentive, and in no event shall application of the DVBE incentive displace an award to a small business with a non-small business.

4. After all the calculations are determined, the Proposer(s) with the lowest cost qualified bid (and including all incentive calculations) shall be selected for contract award.

5. This calculation is only used in the evaluation process and shall not be included in the final agreement.

DVBE certification information can be found at the following internet web site: https://www.dgs.ca.gov/PD/About/Page-Content/PD-Branch-Intro- Accordion-List/Office-of-Small-Business-and-Disabled-Veteran- Business-Enterprise/Certification-Program

Best Value Proposal Determination

Unless this solicitation is cancelled or withdrawn, an Agreement will be awarded to the Proposer that meets the requirements of this RFP and submits the best value proposal, as determined by Lottery. The best value proposal is the proposal that provides the best overall value to the Lottery with respect to quality and pricing while fulfilling the Lottery’s mandate to: 1) maximize the benefits to the state in relation to the areas of security, competence, experience, and timely performance; 2) take into account the particularly sensitive nature of the California Lottery; and 3) act to promote and ensure

Quantitative Market Simulation Research 26 April 10 , 2026 integrity, security, honesty, and fairness in the operation and administration of the Lottery.

For purposes of this RFP, the best value proposal will be determined using the Best Value Scoring Schedule set forth in the table below. The proposal that meets all mandatory requirements and receives the most combined points for the Rated Proposal Evaluation and Cost Sheet Assessment will be deemed the best value proposal. Final combined points will be rounded to the nearest integer. In the event of a tie, the Proposal with the highest Research Methodology and Analysis score shall be selected.

BEST VALUE POINT SCORING SCHEDULE

Overall Proposal Submission (Section III) Maximum Points A. Mandatory Requirements Pass/Fail B. Rated Submittals 70 C.