Kentucky Cigarette Tax Stamps, Fulfillment and Distribution

The Commonwealth of Kentucky is requesting proposals for cigarette tax stamp production, fulfillment, and distribution services under RFP 758 2600000435, with proposals due June 11, 2026. The contract runs from August 2026 through August 2028.

The scope requires design, production, and delivery of cigarette tax stamps compliant with Kentucky regulations and federal requirements, including security features to prevent counterfeiting. The contractor must maintain inventory management systems, process orders from licensed cigarette distributors, and ensure timely delivery. The cost proposal form identifies two primary line items: heat transfer cigarette tax stamps machine-applied at 20 per pack (450,000 units) and warehousing, fulfillment, and shipping services for the contract period. Vendors may propose optional additional features.

The contractor must implement performance standards including order cycle times, inventory accuracy, secure storage, and reliable distribution to support Kentucky's cigarette tax collection and enforcement. The contractor is responsible for coordination with the Kentucky Department of Revenue, compliance with state and federal tobacco tax administration regulations, security protocols for handling tax stamps, and regular reporting on fulfillment operations and distribution metrics. Technology systems must track stamp inventory and distribution activities, and detailed transaction records must be maintained.

All vendors must submit a notarized affidavit attesting under penalty of perjury that they have not knowingly violated Kentucky campaign finance laws and that contract award will not violate any provision of Kentucky's campaign finance statutes, per KRS 45A.110 and 45A.115. The affidavit is effective for one year from execution and the Commonwealth may request an updated affidavit at any time during the contract term. Vendors may submit clarification questions using the provided Vendors' Question Form.