RFQ 2602. RFQ Lifetime Annuities.pdf

Lifetime Annuities

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The Commonwealth of Massachusetts Massachusetts State Lottery Commission

150 Mount Vernon Street, Dorchester, MA 02125

REQUEST FOR QUALIFICATIONS

Document Title PRE-QUALIFICATION FOR LIFETIME ANNUITY BIDS

COMMBUYS Bid Number BD-26-1062-LOT-LOTDO-125534

MSLC Document Number RFQ LOT 2602

Bid Release Date

February 18, 2026

Bid Response Deadline March 30, 2026, at 10:00AM ET

GENERAL PROCUREMENT INFORMATION

Please note: This is a single document associated with a complete Bid (also referred to as Solicitation) that can be found on www.COMMBUYS.com. All Bidders are responsible for reviewing and adhering to all information, forms and requirements for the entire Bid, which are all incorporated into the Bid. Bidders may also contact the COMMBUYS Helpdesk at COMMBUYS@state.ma.us or the COMMBUYS Helpline at 1-888-MA-STATE. The Helpline is staffed from 8:00 a.m. to 5:00 p.m.

Monday through Friday Eastern Standard or Daylight time, as applicable, except on federal, state and Suffolk County holidays.

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Table of Contents

GENERAL PROCUREMENT INFORMATION

REQUEST FOR RESPONSE INFORMATION

SUMMARY AND PURPOSE

RFQ INSTRUCTIONS

Response Submission:

Response Format:

Response Provisions:

Disqualification of Responses:

RFQ EVALUATION PROCESS

Evaluation Process:

PRESENTATIONS / INTERVIEWS (if applicable)

RFQ TERMS AND CONDITIONS

RFQ General Information

Procurement Specifications

COMPONENTS OF PROCUREMENT

Duration and Renewal Options

Single or Multiple Contracts

Contract Guidelines

Contract Performance and Additional Business Specifications

REQUIRED SUBMISSIONS

MINIMUM QUALIFICATIONS

LEGAL AND OTHER REQUIREMENTS

DISCLOSURE STATEMENT

MANDATORY FORMS AND ENCLOSURES

MANDATORY TECHNICAL REQUIREMENTS

General Background

Attachments

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REQUEST FOR RESPONSE INFORMATION

SUMMARY AND PURPOSE

The Massachusetts State Lottery Commission (“MSLC”) is seeking qualification responses from established, recognized and qualified insurance companies interested in submitting lifetime annuity bids.

The purpose of this Request for Qualification (“RFQ”) is to establish a qualified list of companies to respond to bids when issued by the MSLC. The MSLC provides no assurance that any pre-qualified company will be requested to provide services for the related category.

Pursuant to Massachusetts General Laws (“M.G.L.”) c. 29, § 35, the Massachusetts State Treasurer and Receiver General (“Treasurer”) may purchase with a portion of the State Lottery and Gaming Fund, as established and defined in M.G.L. c. 10, § 35, from insurance companies lawfully doing business in the Commonwealth, annuities payable to the Commonwealth to be used for payment of lottery prizes. Such annuities shall not be subject to the provisions of M.G.L. c. 175, § 118 limiting payment of annuities to individuals, and shall, to the extent that such annuities are payable to the Commonwealth, be exempt from taxation under M.G.L. c. 63, § 20. Contracts for the purchase of such annuities shall be subject to competitive bidding and shall be awarded to the lowest responsible bidder. All such bids and contracts shall be public records.

RFQ EVENT CALENDAR

The following is the tentative time schedule for the MSLC’s selection of qualified Bidders under this RFQ. All dates are subject to change by the MSLC with notice on COMMBUYS.

• Issuance of RFQ February 18, 2026

• Bidder Question Deadline March 2, 2026, by 10AM

• Post Answers to Bidder Questions March 4, 2026

(posted on COMMBUYS at http://commbuys.com)

• Initial RFQ Bidder Submission Deadline March 30, 2026, by 10AM

• Rolling Enrollment Deadline June 30, 2033

• Approximate Notification of April/May 2026 Apparent Successful Bidder(s)

NOTE: Questions concerning the RFQ must be submitted in writing to:

Lee Conroy, Procurement Manager Massachusetts State Lottery Commission

ATTN: RFQ LOT# 2602

E-mail Address: lotteryprocurement@masslottery.com

Contact with any other Lottery employee is expressly prohibited.

Subsequent to the initial deadline, this RFQ will remain open and proposals will be accepted through http://commbuys.com/

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June 30, 2033 (Open and rolling period) specifically changed, at the discretion of the MSLC, which notice shall be in writing and posted on COMMBUYS. Proposals will be reviewed quarterly and awards for contracts will be made on a rolling basis throughout the open period. Questions concerning this RFQ will be accepted throughout the open period if they are submitted in writing to Lotteryprocurement@masslottery.com.

RFQ INSTRUCTIONS

Response Submission:

Bidders must submit their bids through the Commonwealth’s online procurement system, COMMBUYS (www.COMMBUYS.com). Bidders are advised to check this site regularly, as this will be the sole method used for notification of changes.

All times in this RFQ are in prevailing Eastern Time. Responses must be received no later than the response due date and time indicated in the RFQ event calendar or they will not be evaluated. Bidders must have their responses fully loaded and accepted in COMMBUYS prior to the RFQ Response Due date and time listed below. Bidders are urged to allow sufficient time to upload their entire response.

COMMBUYS Support and Useful links:

• Job aid on how to submit a quote: https://www.mass.gov/doc/how-to-create-a-quote-in-commbuys/download

• Webcast: How to Locate and Respond to a Bid in CommBuys, which will familiarize bidders with CommBuys terminology, basic navigation, and provide guidance for locating bid opportunities in CommBuys and submitting an online quote.

• Technical assistance is available during the procurement process. Every effort is made to respond to inquiries within one business day.

o Website: Go to www.commbuys.com for Vendor Training Resources.

o Email: Send inquiries to the COMMBUYS Helpdesk at OSDHelpDesk@mass.gov o Telephone: Call the COMMBUYS Help Desk at 1-888-627-8283 or 617-720-3197. The Help Desk is staffed from 8:00 AM to 5:00 PM Monday through Friday Eastern Standard or Daylight time, as applicable, except on federal and state holidays.

o Bidders are advised that COMMBUYS will be unavailable during regularly scheduled maintenance hours of which all users will be notified.

o Bidders MUST have their complete bid fully loaded and submitted prior to the time and date listed in the calendar. COMMBUYS will not allow for bids to be submitted after the posted time.

Responses and attachments received after this open enrollment deadline date and time will not be evaluated. A facsimile or email response will not qualify as a “submission” for deadline purposes.

Facsimile and email responses will not be accepted.

All Bidders are advised to allow adequate time for submission by considering potential online submission impediments like Internet traffic, Internet connection speed, file size, and file volume.

The MSLC is not responsible for delays encountered by Bidders or their agents, or for a Bidder’s local hardware failures, such as computers or related networks, associated with bid compilation or submission. Bids submitted via COMMBUYS are time stamped by the COMMBUYS system clock which is considered the official time of record.

mailto:Lotteryprocurement@masslottery.com https://www.youtube.com/watch?v=IG7XDNk4-U0 http://www.commbuys/ mailto:OSDHelpDesk@mass.gov?Subject=COMMBUYS%20Question

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If a large file fails to upload, the Bidder must save the contents as multiple files. If a large file fails to upload, bidders must break up the file and append _Part1, _Part2 to the end of the Description and File Name.

Response Format:

Failure to follow these requirements may result in the disqualification of the Bidder’s response.

Bidders are required to use the Response Templates which can be downloaded from COMMBUYS.

Required elements of a valid proposal response incorporate the following:

(a) Cover Letter

(b) Statement of Minimum Qualifications

(c) Representations and Warranties

(d) Legal and Other Requirements

(e) Disclosure Statement

(f) Mandatory Forms and Enclosures

(g) Specifications Narrative

Response Provisions:

When responding to this RFQ, Bidders should take note of the following provisions:

The MSLC reserves the right to request additional information from Bidders responding to this request. Additionally, upon reviewing the responses the Procurement Management Team (“PMT”) may decide to have Bidders make presentations if applicable.

The MSLC reserves the right to reject any and all responses to this request, to waive any minor informality in a response, and to request clarification of information from any Bidder responding. The MSLC reserves the right to amend or cancel this RFQ at any time.

All responses and their contents will become the sole property of the Commonwealth/ MSLC upon receipt and will not be returned to the Bidder.

The MSLC will not reimburse any Bidder for any costs associated with the preparation or submittal of any response to this request or for any travel and/or per diem incurred in any presentation of such responses.

The narrative response should address all items included in each section of the RFQ

Disqualification of Responses:

Late Proposals: Proposals that are received after the open enrollment deadline date and time shall be automatically disqualified.

Non-responsive Proposals: A response that fails to meet any material term, condition, requirement or procedure of this RFQ may be deemed unresponsive and thus may be disqualified, at the sole discretion of the MSLC. The MSLC reserves the right to waive or permit cure of non-material errors or omissions. Non-responsive proposals shall also include, but are not limited to those responses which fail to address or meet any mandatory item.

Collusion: Collusion by two or more Bidders agreeing to act in a manner intended to avoid or frustrate fair and open competition is prohibited and shall be grounds for rejection or

Page | 6 disqualification of a proposal or termination of this contract. Bidders will be required to complete a “Certificate of Non-Collusion” as one of the mandatory forms to this RFQ.

Debarred Bidders or Subcontractors: A Bidder, who is currently subject to any Commonwealth or federal debarment order or determination, shall not be considered for evaluation by the PMT. If a Bidder’s proposal is dependent upon the services of a named subcontractor and the disqualification of this named subcontractor would materially alter the proposal, then that proposal shall be deemed unresponsive if the named subcontractor is found to be debarred. Proposals that indicate that subcontractors will be used but do not rely on any specifically named subcontractor shall not be deemed unresponsive if the disqualification of a proposed subcontractor will not materially alter the proposal.

RFQ EVALUATION PROCESS

Evaluation Process:

The RFQ Evaluation Process will be conducted in one phase. A review team consisting of MSLC employees will complete evaluation for all proposal submissions.

PRESENTATIONS / INTERVIEWS (if applicable) The PMT shall have the option to invite any or all of the Bidders to make presentations/come in for interviews. Presentations/interviews provide the PMT with an opportunity to evaluate the Bidder through the presentation of their proposal. The decision to engage in interviews will solely be in the purview of the PMT. It will be within the full discretion of the PMT to determine the Bidders to move onto the presentations/interviews. If the decision is made to request presentations/interviews, then only Bidders that receive an invitation to participate in presentations/interviews will proceed to cost evaluation. Bidders that do not receive an invitation to interviews will be eliminated from further consideration under this RFQ. Bidders will not be informed of their rank at the time of the presentation/interview.

The time allotments and the format shall be the same for all presentations/interviews. The PMT may waive the location and medium requirements of an presentation/interview upon the written request of a Bidder due to special hardships, such as a Bidder with disabilities or limited resources.

In these circumstances the PMT may conduct presentations through an alternative written or electronic medium (e.g., telephone, videoconference, TTY or Internet).

A Bidder is limited to the presentation of material contained in its proposal, with the limited exception that a Bidder may incorporate information relating to and which address specific questions posed by the PMT. Any other correction or modification of the proposal or the presentation of supplemental information shall not be permitted. A Bidder’s attempt to submit such corrections, modifications or supplemental information during an presentation/interview may subject the Bidder’s proposal to disqualification. A Bidder’s failure to agree to an presentation/interview may result in disqualification from further consideration. Presentations may be recorded by the MSLC as a matter of public record.

On-Site Visits (Optional). The PMT reserves the right to conduct on-site inspections of any or all Bidder locations at any time prior to the awarding of this contract to verify the Bidder’s ability to perform the services required. The PMT shall schedule the time of these site visits and shall provide notice of at least three (3) business days before a visit. Failure to agree to a site visit may result in disqualification of a Bidder’s proposal. Only those firms that were evaluated in Phase II and were

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RFQ TERMS AND CONDITIONS

RFQ General Information To the maximum extent possible and subject to the best interests of the MSLC, the MSLC follows the rules and regulations set forth in 801 Code of Massachusetts Regulations (“CMR”) 21.00:

Procurement of Commodities and Services in this RFQ. Words used in this RFQ shall have the meanings defined in 801 CMR 21.00. Additional definitions may also be identified in this RFQ. All terms, conditions, requirements, and procedures included in this RFQ must be met for a response to be qualified as responsive. A response that fails to meet any material term, condition, requirement or procedure of this RFQ, at the sole discretion of the MSLC, may be deemed unresponsive and disqualified. The MSLC reserves the right to waive or permit cure of non-material errors or omissions. The MSLC and/or the PMT reserves the right to modify, amend or cancel the terms of the RFQ at any time.

Unless otherwise specified, all communications, responses, and documentation regarding this RFQ must be in English, all measurements must be provided in feet, inches, and pounds, equipment must be new and of current manufacturing models and unused, and all cost proposals or figures in U.S.

Currency. All responses must be submitted in accordance with the specific terms of this RFQ.

Procurement Specifications

Alternatives.

A response which fails to meet any material term or condition of the RFR, including the submission of required forms, may lose points or be deemed unresponsive and disqualified. Unless otherwise specified, Bidders are encouraged to submit responses proposing alternatives that provide equivalent, better, or more cost-effective performance than achievable under the stated RFR specifications. Such response should describe how any alternative achieves substantially equivalent or better performance to the RFR specification. These alternatives may include related services that may be available to enhance performance during the period of the contract. The response should describe how any alternative achieves substantially equivalent or better performance to that of the RFR specifications.

The MSLC will determine if a proposed alternative method of performance achieves substantially equivalent or better performance. The goal of this RFR is to provide the best value of commodities and services to achieve the procurement goals of the MSLC. Bidders that propose discounts, uncharged commodities and services or other benefits in addition to the RFR specifications may receive a preference or additional points under this RFR as specified.

Best Value Selection and Negotiation.

The PMT may select the response(s) that demonstrates the “Best Value” overall including proposed alternatives that will achieve the procurement goals of the Lottery. The Lottery and selected Bidder(s) may negotiate a change in any element of performance, cost and / or deliverable pursuant to awarding of a contract, subsequent thereto if mutually agreed upon in writing, which results in lower costs or is more cost effective or is an overall better value.

Bidder Communication.

Bidders are prohibited from communicating directly with any employees of the MSLC, including any

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MSLC departments and divisions and affiliated commissions, boards, and trusts,1 or any member of the PMT regarding this RFQ and may be disqualified for doing so at the discretion of the PMT, except as specified in this RFQ, and no other individual Commonwealth employee or representative is authorized to provide any information or respond to any question or inquiry concerning this RFQ.

Bidders may communicate with the contact person for this RFQ in the event this RFQ is incomplete or the Bidder is having trouble obtaining any required forms electronically through COMMBUYS (https://www.commbuys.com).

Brand Name or Equal.

Unless otherwise specified in this RFQ, any reference to a particular trademark, trade name, patent, design, type, specification, producer or supplier is not intended to restrict this RFQ to any issuer, underwriter or proprietor or to constitute an endorsement of any service. The MSLC will consider clearly identified offers of substantially equivalent services submitted in response to such reference.

Change in Financial Condition.

Bidders shall be required to immediately inform the Executive Director of the MSLC in writing of any major change in the financial condition or organization of the company. Misrepresentation or failure of the Bidder to notify the MSLC shall be grounds for contract award cancellation and/or termination.

COMMBUYS Market Center.

COMMBUYS is the official source of information for this RFQ and is publicly accessible at no charge at www.commbuys.com. Information contained in this document and in COMMBUYS, including file attachments, and information contained in the related Bid Questions and Answers (Q&A), are all components of the RFQ, as referenced in COMMBUYS, and are incorporated into the RFQ and any resulting contract.

Bidders are solely responsible for obtaining all information distributed for this RFQ via COMMBUYS.

RFQ Q&A supports Bidder submission of written questions associated with a RFQ and publication of official answers.

It is each Bidder's responsibility to check COMMBUYS for:

• Any amendments, addenda or modifications to this RFQ, and

• Any RFQ Q&A records related to this RFQ.

• Any extensions of time or related directives due to Covid-19 pandemic.

The Commonwealth accepts no responsibility and will provide no accommodation to Bidders who submit a response based on an out-of-date RFQ or on information received from a source other than

COMMBUYS.

Bidders may not alter (manually or electronically) the RFQ language or any RFQ component files.

The RFQ is a proprietary MSLC document and any modifications to the body of the RFQ, its

1 For purposes of this RFQ, “MSLC” includes the following departments, divisions, boards, trusts, and commissions: Office of the State Treasurer and Receiver General (“Treasury”), Advisory Board to the Comptroller, State Retirement Board, Board of Bank Incorporation (Division of Banks and Loan Agencies), Water Pollution Abatement Trust (now known as the Clean Water Trust), Pension Reserves Investment Management Board, Massachusetts Convention Center Authority, Massachusetts School Building Authority, Teachers’ Retirement Board, Alcoholic Beverages Control Commission, Health Care Security Trust, Commissioners on Fireman’s, Economic Empowerment Trust Fund http://www.commbuys.com/

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COMMBUYS Subscription.

Bidders may elect to obtain a free COMMBUYS Seller subscription which provides value-added features, including automated email notification associated with postings and modifications to COMMBUYS records.

All Bidders submitting a response to this RFQ agree that, upon bidding and if awarded a contract: (1) they will maintain an active seller account in COMMBUYS; (2) they will, when directed to do so by the procuring entity, activate and maintain a COMMBUYS-enabled catalog using Commonwealth Commodity Codes; (3) they will comply with all requests by the procuring entity to utilize COMMBUYS for the purposes of conducting all aspects of purchasing and invoicing with the Commonwealth, as added functionality for the COMMBUYS system is activated; and (4) in the event the Commonwealth adopts an alternate market center system, successful Bidders will be required to utilize such system, as directed by the procuring entity. Commonwealth Commodity Codes are based on the United Nations Standard Products and Services Code (“UNSPSC”).

The COMMBUYS system introduces new terminology, which bidders must be familiar with in order to conduct business with the Commonwealth. To view this terminology and to learn more about the COMMBUYS system, please visit the COMMBUYS Resource Center.

Conflict of Interest.

Prior to an award of any contract, the Bidder shall certify in writing to the MSLC that no relationship exists between the Bidder and the MSLC that interferes with fair competition or is a conflict of interest, and no relationship exists between the Bidder and another person or organization that constitutes a conflict of interest with respect to a state contract. No official or employee of the Commonwealth who exercises any function or responsibility in the review or approval of the undertaking or carrying out of this project shall, prior to the completion of the project, voluntarily acquire any personal interest, either directly or indirectly, in this contract or proposed contract.

The Bidder shall provide assurance that it presently has no interest and shall not acquire any interest, either directly or indirectly, which will conflict in any manner or degree with the performance of its services hereunder. The Bidder shall also provide assurances that no person having any such known interests shall be employed during the performance of this contract.

Costs.

Costs that are not specifically identified and defined in the Bidder's response, and accepted by the MSLC, will not be compensated. The MSLC is not responsible for any costs or expenses incurred by Bidders in responding to this RFQ.

Electronic Communication/Update of Bidder’s/Contractor’s Contact Information.

It is the responsibility of the prospective Bidder and qualified company to keep current the E-mail address of the Bidder’s contact person and/or prospective contract manager, if awarded a contract, and to monitor that E-mail inbox for communications from the PMT, including requests for clarification. The PMT and the MSLC assume no responsibility if a prospective Bidder’s/awarded Contractor’s designated E-mail address is not current, or if technical problems, including those with the prospective Bidder’s/awarded Contractor’s computer, network or Internet service provider (“ISP”) cause E-mail communications sent to/from the prospective Bidder/awarded Contractor and the PMT to be lost or rejected by any means including E-mail or spam filtering.

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Environmental Response Submission Compliance.

Documents and items that cannot be submitted electronically, like confidential business references submitted by the reference, or requests for material samples, respectively, must follow all of the Quote submission requirements including Bid Opening Date/Time, Bid Package and Environmental Response Submission Compliance provisions.

In an effort to promote greater use of recycled and environmentally preferable products and minimize waste, all materials submitted should comply with the following guidelines:

- All copies should be printed double sided.

- All submittals and copies should be printed on recycled paper with a minimum post-consumer content of 30% or on tree-free paper (i.e., paper made from raw materials other than trees, such as kenaf). To document the use of such paper, a photocopy of the ream cover/wrapper should be included with the response.

- Unless absolutely necessary, all responses and copies should minimize or eliminate use of non-recyclable or non-reusable materials such as plastic report covers, plastic dividers, vinyl sleeves, and GBC binding. Three ringed binders, glued materials, paper clips, and staples are acceptable.

- Bidders should submit materials in a format which allows for easy removal and recycling of paper materials.

- Bidders are encouraged to use other products that contain recycled content in their response documents. Such products may include, but are not limited to, folders, binders, paper clips, discs, envelopes, boxes, etc. Where appropriate, bidders should note which products in their responses are made with recycled materials.

- Unnecessary samples, attachments, or documents not specifically asked for should not be submitted.

Estimated Provisions.

The MSLC makes no guarantee that any commodities or services will be purchased from any qualification resulting from this RFQ. Any estimates and/or past or current procurement volumes referenced in this RFQ are included only for the convenience of Bidders, and are not to be relied upon as any indication of future purchase levels.

Freight.

Unless otherwise specified herein, all products and services shall be “FOB Destination”. The MSLC will not assume any separate freight, mileage, travel time or any other associated charges in addition to the bid price. Any charges of this nature must be included in the bid price.

Mandatories and Desirables.

Mandatory specifications in this RFQ are identified with the words "must", "shall", "will", "mandatory", or "is required". A mandatory specification is one that must be met in order for a response to be considered responsive. Any response, which fails to meet a mandatory specification of the RFQ, will be deemed non-responsive and will be disqualified. Desirable specifications are designated with the words, "is desired", "desirable", and "highly desirable". Unless there is an explicit indication to the contrary stated in this RFQ, Bidders may receive evaluation points for “desirable” goods and services.

Minimum Bid Duration.

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Bidder must certify in their response that the submitted response, will remain in effect for 150 days from the date of bid submission until either the Bidder withdraws the response in writing, a contract is executed or the procurement is canceled, whichever occurs first. Any change in condition of terms must be provided in writing to the MSLC.

News Releases.

The successful Bidder shall not issue any news releases, advertising or promotional materials pertaining to the performance of the contract without prior approval by the Executive Director of the MSLC

Payments Payment shall be made for services only after such services have been delivered and accepted by the MSLC. Payments shall be made only in arrears. No advance payments can be made to Contractors.

Generally, payments for life annuity contracts will be made within ten (10) business days, with exception to life annuity contracts relating to the multi-state game, Millionaire for Life, which will be made in thirty (30) business days after settlement and receipt of funds due from other states. In no event will the payment settlement dates go beyond the Commonwealth’s forty-five (45) day requirement.

Prime Contractor Responsibility.

The MSLC requires a single point of contact; Bidder acknowledges and accepts responsibility for performance of any Contract that may result from this RFQ. Subcontractors may be used, but the Bidder accepts full responsibility for the subcontractor's performance. All subcontractors must be identified by the Bidder and the Bidder must describe the type of contractual arrangement that will exist with all subcontractors. The Bidder shall be responsible for meeting all of the terms of the Contract resulting from the RFQ. Prior approval of the department is required for any subcontracted service of the contract. Bidders are responsible for the satisfactory performance and adequate oversight of its subcontractors. Subcontractors are required to meet the same local, state, and federal financial and program reporting requirements and are held to the same reimbursable cost standards as successful Bidders.

Public Records.

All responses and information submitted in response to this RFQ are subject to the Massachusetts Public Records Law, Massachusetts General Laws (“M.G.L.”), Chapter 66, Section 10, and Chapter 4, Section 7, Subsection 26. Any statements in submitted responses that are inconsistent with these statutes will be disregarded, and all submissions will be treated as confidential until the contract is awarded, all terms are negotiated and documents are executed.

Reasonable Accommodation.

Bidders with disabilities or hardships that seek reasonable accommodation, which may include the receipt of RFQ information in an alternative format, must communicate such requests in writing to the RFQ contact person. Requests for accommodation will be addressed on a case-by-case basis. A Bidder requesting accommodation must submit a written statement which describes the Bidder’s disability and the requested accommodation to the contact person for the RFQ. The PMT reserves the right to reject unreasonable requests.

Restriction on the Use of the Commonwealth Seal.

Bidders and contractors are not allowed to display the Commonwealth of Massachusetts Seal in their response package or in any subsequent marketing materials if they are awarded a contract.

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Use of the Coat of Arms and the Great Seal of the Commonwealth for advertising or commercial purposes is prohibited by law.

Prohibition Against Selling or Distributing Information.

Any Bidder awarded a contract under this RFQ is prohibited from selling or distributing any information collected or derived from the contract and/or procurement process, including lists of participating or eligible Commonwealth of Massachusetts employee names, telephone numbers, email addresses or mailing addresses.

COMPONENTS OF PROCUREMENT

Duration and Renewal Options.

The MSLC intends to enter into a five (5) year contract commencing on the resulting contract start date. The MSLC will continue to qualify firms on a rolling basis through June 30, 2031, and extensions thereto June 30, 2033. All initial contract terms will end on June 30, 2031, and the MSLC may, at its option, extend the contract for two (2) additional one year period(s) for a maximum contract term not exceeding seven (7) years. Bidders successfully qualified during this time will enter into contracts which will run concurrently with other firms.

Single or Multiple Contracts.

The MSLC reserves the right to award any contract to a single vendor or multiple vendors, in the best interest of the MSLC. The Bidder must agree to cooperate with such other Bidders and must not commit or permit any act that may interfere with the performance of work by any other Bidder.

Contract Guidelines.

It is the intent of this contract that the MSLC is the only user.

Contract Performance and Additional Business Specifications.

Evaluation and Selection of Contractor.

The MSLC shall have sole authority to evaluate and make the final selection of Bidder(s) for contract negotiation(s) pursuant to this RFQ. The selection will be made after evaluation of both mandatory submissions and technical narrative by the PMT and final approval by the Commissioners of the

MSLC.

Change in Terms.

The MSLC reserves the right to change, and/or amend the specifications identified in the RFQ at any time prior to the closing date. The MSLC reserves the right to negotiate with the selected Bidder(s) as to any element of cost or performance, including without limitation, elements identified in the RFQ and/or the selected Bidder’s response in order to achieve the best value for the Commonwealth. The MSLC reserves the right to procure some, all, or none of the services specified in this RFQ. The MSLC may/will qualify bidders during the open enrollment period and as needed during the contract term.

The MSLC also reserves the right to change, amend and/or cancel a bid issued hereunder at any time during the term of the contract. If, due to unforeseen circumstances, the MSLC determines that the scope of services needs to be substantially changed or modified, the MSLC reserves the right to amend the contract to adjust for cost, elements of performance or to amend scope to accomplish the purpose for which the contract is intended. Any amendment shall be in writing and executed by the parties.

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Termination or Suspension.

Once retained, a vendor’s service may be terminated or suspended from the MSLC’s contract for poor performance, failure to perform, fraud or other cause, including MSLC’s sole determination of performance, at any time without prior notice. Vendors may be terminated from the contract without cause with sixty (60) day prior written notice. The vendor may not terminate the contract or performance except upon a minimum of 150 days written notice to the MSLC.

Permits and Compliance.

The vendor shall procure and pay for all permits, licenses and approvals necessary to perform the services solicited in this RFQ. The Bidder shall comply with all applicable laws, ordinances, rules, orders and regulations related to the performance of the services solicited. The MSLC may, at its option, request documentation evidencing the vendor’s compliance.

Rejection of Proposals.

The MSLC reserves the right to reject any and all proposals submitted under this solicitation and any bids if not in the best interest of the MSLC.

Fees Subject to MSLC Signatory Authorization.

All fees must be approved by the Executive Director or his designee and are subject to verification of performance.

Confidentiality Policy Regarding Bidder’s Support Staff and/or Vendors.

The MSLC may require Bidders’ support staff or outside vendors to sign a confidentiality agreement for the confidential information they will have or have access to.

Concurrent Contracts Running (Renewals and Transitions).

The MSLC may engage with one or more firms during the course of the contract and bid proposals shall be submitted to only qualified firms. The MSLC reserves the right to qualify firms throughout the term of the contract. In the event that funds are not appropriated or otherwise made available to support continuation of performance in any fiscal year succeeding the year, the MSLC, in its sole determination, may cancel any or all portions of the contract. The MSLC reserves the right, in its sole discretion to exercise its option to renew, which will not be subject to contractor acceptance or agreement. Any assistance required for this transition must be provided in a smooth and timely manner. If at any time the contract is canceled, terminated or expires, and a contract is subsequently executed with a firm other than the contractor, the contractor has the affirmative obligation to assist in the smooth transition of contract services to the subsequent contractor.

Price Limitation.

The Bidder must agree that no other state or public entity customer within the Commonwealth of Massachusetts of similar size and with similar terms and conditions shall receive a lower price for the same commodity and service during the contract period, unless this same lower price is immediately effective for the MSLC. Upon request by MSLC, the Bidder must agree to provide current or historical pricing offered or negotiated with other state or public entities at any time during the contract period in the absence of proprietary information being part of such contracts.

Submission of Proposal Materials and Presentation.

All materials, representations and submissions made within the proposal and at the presentation are subject to becoming part of the contract binding the selected Bidder to uphold the materials, representations and submissions made by the selected Bidder within the proposal and at the presentations.

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Fiduciary Status of the Bidder/Firm; Chapter 268A.

With respect to the performance of its duties and responsibilities hereunder, if awarded the contract, the Bidder/Firm acknowledges that it is a fiduciary, and that the Bidder/Firm will discharge its duties and responsibilities under this Agreement in accordance with the fiduciary standards of conduct and other requirements as they apply to the Bidder. The Bidder in submitting a response acknowledges and agrees to be subject to Massachusetts General Laws, Chapter 268A (the Massachusetts "Conflict of Interest" statute), and is required to act and perform its duties in accordance with such provisions.

Security Breach Law, M.G.L. c. 93H.

The Bidder hereby acknowledges and agrees to comply with the requirements and responsibilities, including those of providing notice and response, as set forth in G.L. c. 93H concerning Security Breaches and any regulations implemented to effectuate security of “personal information” as defined in § 1 of G.L. c. 93H. Qualified Bidders, and upon the award of a bid, must agree to protect the information, documents, materials (hard copy or digital) and selected Bidders shall provide the same standards of care or better from disclosure as it would its own information, documents and or materials.

REQUIRED SUBMISSIONS

Compliance with all criteria listed below is mandatory in order for a bid to be accepted for further review. Lack of compliance with this criteria will automatically disqualify the Bidder. Bidder’s response should demonstrate compliance with each of the conditions qualifying an institution to propose as outlined below.

MINIMUM QUALIFICATIONS

Bidders submitting Proposals must meet the following minimum qualifications to be given further consideration. Failure of a Bidder to meet the minimum qualifications applicable to this RFQ will result in immediate rejection. The Bidder’s response to each minimum qualification component should be “yes” or “no” followed by a detailed statement of explanation. Please be advised that Bidders are requested to specifically describe how the Bidder meets each of these minimum qualifications.

1. Licensed to do business in the Commonwealth of Massachusetts.

2. Maintain an AM BEST rating of A- or better.

3. Maintain at least $100 million in capital and surplus.

4. Maintain at least $1 billion in assets per the balance sheet of the company’s most recently audited financial statements prepared by an independent certified public accountant.

5. Provide, if applicable, a description of information regarding any company bankruptcy proceedings, any mergers or acquisitions or name changes within the past 12 months.

LEGAL AND OTHER REQUIREMENTS

Subject to the following legal and contract requirements, all bidders must certify and/ or provide in their response to the following:

1. As required in the Phase I Response Template attachment.

2. Compliance with standards: Bidder shall ensure that all deliverables adhere and comply with

Page | 15 industry standards.

3. Security and Confidentiality: Bidder shall hold in strictest confidence any information and material which is related to MSLC other than that information which is now in the public domain through no fault of the bidder, prior disclosure received by 3rd party, subsequent lawful disclosure or obligated to be produced by order of court of competent jurisdiction.

4. The rights granted hereunder this contract may not be assigned or transferred without the prior express written consent of the MSLC.

5. Immediately inform, in writing, the Executive Director or their designee, of any major change in the financial condition or organization of the company; failure to do so shall constitute a breach of the contract.

6. All forms, documents and like requirements of the Bidder to engage with the MSLC shall be included in its respective response to this RFQ; and any new and/or additional forms to be required to be used for the engagement of the services intended herein must be provided not less than sixty (60) days prior to execution with an explanation of the requirement an document to be provided to the MSLC.

7. The MSLC must be notified of any security incident or data breach immediately upon becoming aware of such incident or data breach and document any and all responsive actions.

8. All responses and contents shall become the property of the MSLC upon receipt.

9. Respondents shall acknowledge that any bid issued to qualified respondent is for services, payment of which is to be determined respective of individual bids issued.

DISCLOSURE STATEMENT

As required in the Phase I Response Template attachment.

MANDATORY FORMS AND ENCLOSURES

Bidder’s response shall include the completed mandatory forms listed in the Response Template.

The Response Template and the subject forms can be found on COMMBUYS with this RFQ. All mandatory forms and enclosures must be signed by an individual having authority to bind the bidding company. The “originals” should have an original signature in blue ink or certified electronic signature. Furthermore, the signatory must be listed on the Contractor Authorized Signatory Listing form provided in the RFQ Response Template.

Original ink signatures may/are required only after contracts have been awarded. Successful Bidders who agreed to the terms and conditions of all mandatory forms and enclosures electronically via the COMMBUYS online Quote submission tool must still submit requested forms with ink signatures within seven (7) calendar days of award notification or their contract may not be executed by the Commonwealth.

MANDATORY TECHNICAL REQUIREMENTS

General Background

A. General Information

The MSLC is seeking a pool of firms eligible to fund “lifetime” grand prizes via insurance life annuity contracts. The MSLC bid process is streamlined by pre-qualifying firms and requiring only

Page | 16 submission of a written quotation for future lifetime annuity bids. Once qualified, each firm shall provide bids to the MSLC on an as needed basis. In Fiscal Year 2025, one annuity bid opening was conducted to fund two “lifetime” prizes. The aggregated guaranteed prize liability was $208,000.00 and the total cost to fund the two premiums was $158,922.00.

Definitions

Life Annuity: Only life insurance companies are authorized to issue life annuity contracts. A life annuity pays a guaranteed income for life. The life insurance company guarantees to make the annuity payments no matter how long the annuitant lives. If the annuitant lives longer than expected or if the interest earned is less than expected, the insurer must make up the difference.

Life Annuity with a guaranteed number of payments: This annuity income option pays a life income and provides if the annuitant dies before the expiration of a stipulated period (20 years) the balance of the guaranteed payments will be continued to the beneficiary until the end of the guarantee period. If the annuitant outlives the guarantee, the payments continue until payout of the last regular installment due proceeding the annuitant’s death, and then nothing further is payable.

Deferred lifetime annuity: This annuity is bought with a single premium to pay an income commencing at a specified future date.

1. Background

The MSLC conducts several games in which prizes are paid in equal installments over a player’s lifetime with a guaranteed minimum payment stream of twenty (20) years. These games promote several lifetime grand prizes with annual payments ranging historically from $5,200 ($104,000 minimum guaranteed) to $1,000,000 ($20,000,000 minimum guaranteed). The MSLC makes the first such payment when the prize is claimed, with the balance being paid over the remaining life of the winner. The MSLC funds these lifetime annual payments through the purchase of life annuity contracts.

Winning firms are selected through a competitive bid process using an “Annuity Solicitation Letter” and “Official Annuity Offer Form” which details the response requirements and the bid opening date. Refer to Attachments M and N for samples of these items. In certain instances, the bid opening must wait until a drawing is held among the grand prize finalists to determine the lifetime winners.

MSLC procedure has been to schedule an annuity bid upon the claiming of grand prize-winning tickets. Thereafter, an annuity solicitation letter shall be mailed to all qualified firms. The MSLC annuity bid opening shall be held at the MSLC Headquarters in Dorchester, MA where the submitted bids shall be opened and recorded. The MSLC will then award the bid or bids to the winning firm or firms within one week.

2. Offering Parameters:

Approximately one month prior to a scheduled bid opening, all pre-qualified firms shall be mailed a sealed bid solicitation letter containing the following information: winner(s) name, winner(s) date of birth, winner(s) gender, and annual payment amount and anniversary/claim date. A bid form will be attached to the letter for interested firms to complete. Any quotations submitted should be in

Page | 17 whole dollar amounts (no cents). The winning proposal shall be the one that provides the desired stream of annuity payments at the lowest total cost. In the event more than one firm provides the same quote, the winning proposal shall be the offer that was received first by the Lottery (all proposals will be date/time stamped).

3. Bid Opening Procedures:

The bid proposals must be submitted on the bid forms supplied by the Lottery and must include a separate cost for each individual premium and be signed by an authorized representative of the firm.

Within 15 minutes of the bid proposal deadline, authorized representatives of the Lottery shall open and record each bid in a public forum. Immediately following the bid opening, the Lottery shall notify the winning firm(s) by phone that their offer was accepted. A written confirmation for each annuity winner shall be issued within one week of the bid offering.

The Lottery reserves the right to withdraw the request for bids at any time.

The Lottery will not be held responsible for bid responses not properly marked.

4. Settlement:

Generally, payments for life annuity contracts will be made within ten (10) business days, with exception of life annuity contracts relating to the multi-state game, Millionaire for Life, which will be made in thirty (30) business days after settlement and receipt of funds due from other states. In no event will the payment settlement dates go beyond the Commonwealth’s forty-five (45) day requirement.

The winning firm(s) will EFT the annual annuity amount to the Lottery’s designated bank account on or about the anniversary date of the initial prize claim or drawing date.

The winning firm(s) must supply the official contract policies within five (5) business days of receipt of payment from the Lottery. Contracts should be mailed to: Massachusetts State Lottery Commission, 150 Mount Vernon Street Suite 300 Dorchester, MA 02125, Attention: Controller.

B. Qualification Requirements:

As outlined above, firms must meet or exceed the following requirements in order to pre-qualify and participate in the Lottery lifetime annuity bids:

1. Licensed to do business in the Commonwealth of Massachusetts;

2. Maintain an AM BEST rating of A- or better;

3. Maintain at least $100 million in capital and surplus;

4. Maintain at least $1 billion in assets per the balance sheet of the company’s most recently audited financial statements prepared by an independent certified public accountant.

If any firm, during the life of this contract, fails to meet any of the above conditions said firm must immediately inform the Controller of Lottery in writing and shall no longer be considered qualified.

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Misrepresentation or failure of the firm to notify the MSLC shall be reason for termination of contract and possible legal action. The Lottery reserves the right to remove any firm from the pool at any time. Furthermore, the Lottery may conduct additional searches for qualified firms to add to the pool on a rolling basis during the term of the contract.

Quarterly, the Lottery will perform a solvency review of each company’s AM Best Rating and may require submission of a copy of the most recent audited financial statements.

C. Response requirements and required documentation:

All firms interested in participating in lifetime annuity bids must provide the following:

1. A copy of the company’s AM BEST rating

2. A copy of the company’s most recently audited financial statements prepared by an independent certified public accountant

3. A copy of the company’s recent annual national association of insurance commissioners statement, and

4. Any other documentation as necessary as evidence of your compliance with the above criteria

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Attachments Attachment A - Commonwealth of Massachusetts Terms and Conditions

Attachment B – Commonwealth of Massachusetts Standard Contract Form

Attachment C – Massachusetts Substitute W-9 Form

Attachment D - Contractor Authorized Signatory Form

Attachment E – Request for Certificate of Good Standing

Attachment F - Business Reference Form

Attachment G – Supplier Diversity Program Forms

Attachment H – Invest in Massachusetts Form and Instructions

Attachment I – Certificate of Non-Collusion

Attachment J – Electronic Funds Transfer Form

Attachment K – Prompt Payment Discount Form

Attachment L – Certificate of Compliance Concerning Personal Data and Personal Information

Attachment M – Sample Annuity Solicitation Letter

Attachment N – Sample Official Annuity Offer Form