Heat-Transfer Cigarette Tax Stamp Manufacturing and Distribution

The State of Oregon, through the Department of Administrative Services Procurement Services (DAS PS) on behalf of the Oregon Department of Revenue, is soliciting bids for heat-transfer, counterfeit-resistant cigarette tax stamp manufacturing and distribution. The Invitation to Bid (ITB) No. S-DASOBO-00004975 covers jurisdictions including Marion County and the City of Salem, with an initial one-year contract term and potential extensions. The procurement requires the production and distribution of various cigarette tax stamp types, including pads, large rolls, wide rolls, and specific rolls for Marlboro/25's cigarettes, with detailed specifications for stamp layout, security features, and counterfeit detection devices. Bidders must demonstrate capability to interface with the state's ordering system, provide direct-to-distributor shipping, and maintain adequate stock levels. The procurement process involves a three-step approach: a mandatory Notification of Intent to Participate, product sample evaluation, and final bid submission, with bids to be evaluated on a pass/fail basis focusing on lowest responsive and responsible bidder. Key dates include a bid opening on January 10, 2023, with a Notice of Intent to Award anticipated for January 27, 2023, and contract execution expected around February 6, 2023.

The ITB includes specific requirements for Certified Disadvantaged Business participation, mandating that bidders take reasonable steps to ensure minority-owned, woman-owned, service-disabled veteran-owned, and emerging small businesses have equal subcontracting opportunities. Bidders must describe subcontracting opportunities and report subcontractor identities to the Oregon Certification Office for Business Inclusion and Diversity (COBID) if awarded. The solicitation indicates that Meyercord Revenue, Inc. was initially named as the lowest cost responsible bidder, but a subsequent revised Notice of Intent to Award named Aston Potter (USA) Ltd. as the selected contractor. Bidders must meet various compliance requirements, including registering to do business in Oregon, submitting a Pay Equity Certification, and providing Certificates of Insurance. While specific contract value is not explicitly stated, the detailed pricing structure in Attachment D (Price Bid Submittal Form) suggests the contract involves significant volume of tax stamp production across multiple stamp types and quantities. Successful bidders must also comply with non-discrimination policies, provide proof of insurance, and meet strict security and design requirements for the tax stamp production.