Cigarette Tax Stamp

The State of Illinois, through the Illinois Department of Revenue, is seeking bids for the supply of approximately 1.62 billion serialized cigarette tax stamps over a 4-year initial term from September 15, 2018 (or date of execution) to September 14, 2022. The successful bidder will be required to provide heat-applied cigarette tax stamps with specific security features, as well as stamp applying machines and 25 functional readers for the duration of the contract. Deliveries of 135 million stamps are required in the last weeks of October, December, and March each year. Bidders must submit samples, demonstrate the stamp applying machines, and comply with detailed production, accounting, and security requirements outlined in the specifications. The bid price per 1,000 stamps must include the cost of manufacturing the stamps and providing and maintaining the 25 readers. Bidders must also submit an emergency contingency plan and a performance bond equal to 10% of the total contract amount.

The contract cannot be sublet or assigned, and the successful bidder cannot be affiliated with an Illinois licensed cigarette distributor. There is no Small Business Set-Aside or Veteran Small Business goal for this procurement, but there is a Minority Contractor Initiative fee of $15 that will be deducted from the first payment to the awarded vendor. The contract was previously awarded to Myercord Revenue Inc. for $842,400.00, and the current solicitation is the result of a new Invitation for Bid process.