Kentucky Cigarette Tax Stamps, Fulfillment and Distribution

The Commonwealth of Kentucky Department of Revenue is requesting proposals for the manufacturing, fulfillment, and distribution of counterfeit-resistant heat transfer cigarette excise tax stamps under RFP 758 2600000435, with proposals due June 11, 2026 at 3:30 PM Eastern Time.

Stamps must be heat-applied with a minimum of four layers, produced via gravure process or industry standard methods, and compatible with existing stamping equipment from Meyercord Revenue Inc., United Silicone Tax Stamp, and Redstamp Inc. Each roll contains 30,000 units with sequential serial numbering, safety-tinted paper, and fluorescent fibers detectable under ultraviolet light. The contractor must establish and maintain a secure online portal integrated with Kentucky's MyTaxes system enabling wholesalers to submit orders, process payments, and track status. Stamps must ship within one business day of order receipt for pre-10:00 AM submissions and two business days thereafter; the contractor bears responsibility for all lost, stolen, damaged, or defective stamps at no cost to the Commonwealth. Inventory must be maintained at 2 to 3 months of finished goods. Commercial General Liability Insurance of $1 million per occurrence and $2 million aggregate is required, with the Commonwealth as additional insured.

The initial contract term is two years from award, with four optional two-year renewal periods. Pricing is firm fixed unit price per thousand stamps; prices remain firm for the first twelve months, after which increases require written justification based on industry-wide changes submitted at least thirty days in advance. Price decreases must be reflected immediately. The cost proposal must include all manufacturing, warehousing, and fulfillment costs; the Commonwealth covers standard two-day shipping under its statewide contract. Technical proposals are evaluated on 2,000 points across executive summary (100), technical approach (600), implementation plan (300), timeline attestation (300), project management (300), disaster recovery (100), and security plan (300). Cost proposals are worth 800 points. Proposals scoring below 1,000 combined technical points are non-responsive. Vendor written questions were due May 21, 2026; Commonwealth responses were issued May 25, 2026. Addendum 2 was posted May 27, 2026.