Authorized Third Party Electronic Service Partner

The Arizona Department of Transportation (ADOT) Motor Vehicle Division (MVD) is seeking an Authorized Third-Party Electronic Service Partner (ATP ESP) through a competitive sealed proposal process, solicitation number BPM007132. The procurement will select an exclusive contractor to provide comprehensive digital government services and technology solutions for Arizona's motor vehicle operations, including hosting, developing, and maintaining the MAX system and AZMVDNow portal. Core services include payment gateway solutions for over 500 point-of-sale terminals, field office technology infrastructure support, renew-by-mail processing for approximately 130,000 annual transactions, document scanning, mail intake services, call center support, motor vehicle insurance verification, and eGovernment administrative services. Proposals must be submitted electronically through the Arizona Procurement Portal (APP) by January 7, 2026, with a pre-offer conference recommended for clarification. Evaluation criteria will prioritize Method of Approach, Experience and Capacity, and Pricing, in that order. Offerors must demonstrate compliance with procurement requirements, including signed offer forms, legal qualification to contract, and federal immigration law compliance.

The contract does not appear to have specific set-aside designations for disadvantaged enterprises. The incumbent vendor is Kyndryl (formerly IBM), which has held the contract since 1996 and currently processes over 4.4 million online transactions annually with total retention revenues exceeding $42 million in fiscal 2025. The contract term is 48 months with potential extension for an additional 36 months, with compensation structured as a hybrid revenue-sharing model. Reimbursement includes maximum percentages for credit card merchant fees (2.2%), ATP retention fees from online transactions (52%), Managed Services Agreement fees (2.2%), and administration fees (1.25%). Vendors must demonstrate robust information security capabilities, including PCI-DSS compliance, NIST framework adherence, data encryption, and multi-factor authentication. Critical requirements include maintaining all ADOT MVD data within the continental United States, prohibiting offshore work, and carrying comprehensive insurance with cyber liability and technology errors and omissions coverage of at least $2 million.