Lottery Central Monitoring and Control System and Related Service

The Department of General Services on behalf of the Maryland Lottery and Gaming Control Agency is soliciting proposals for a comprehensive lottery central monitoring and control system including software, hardware, terminals, data center infrastructure, and operational support for Maryland's retail lottery operations statewide, with proposals due September 30, 2026 at 2:00 p.m. via eMarylandMarketplace Advantage and a pre-proposal conference scheduled for July 16, 2026 at 11:00 a.m. (RSVP required by July 14). An overall MBE subcontract participation goal of 25 percent applies, with specific subgoals of 10 percent for African American MBEs, 10 percent for Woman-Owned MBEs, and 1 percent for Veteran Service-Disabled Business Enterprises; MBE liquidated damages provisions establish daily penalties ranging from $100 to the difference between committed and actual participation values for non-compliance.

Minimum qualifications require the offeror to demonstrate experience supplying a central monitoring and control system for at least one North American state or provincial lottery within the previous three years, with the proposed system currently operational within a North American lottery at proposal submission. The scope encompasses approximately 3,800 to 5,400 full-size clerk selling terminals, 660 intermediate terminals, 275 small-footprint terminals, 500 non-selling validation terminals, 2,400 full-service self-service terminals, 200 reduced-height self-service terminals, 500 draw-only terminals, 4,500 cash drawers, 3,700 hanging jackpot signs, 3,500 ADA-compliant play stations, a primary data center, at least one remote hot backup data center within the continental United States, an operations center within five miles of MLGCA headquarters in Baltimore, training facilities, and in-state warehouse locations. The contractor must establish data feeds for game information, winning numbers, progressive jackpots, retailer locations, and analytics; comply with NIST cybersecurity framework standards, PCI DSS, annual SOC 1 Type 2 and SOC 2 Type 2 audits, and Maryland IT security policy; encrypt all sensitive data in transit and at rest using FIPS-compliant algorithms; and maintain separate production, test, and training environments.

The contract uses a Firm Fixed Price structure based on a specified percentage of net lottery sales with separate fixed monthly fees for additional hardware options. Pricing is structured in Part A (base proposal), Part B (optional iLottery, Mobile Payment Application, and Print on Receipt programs), and Part C (offeror-proposed optional equipment and services). Evaluation applies 65 percent technical weighting and 35 percent financial weighting using a 0, 1, 3, 5 adjectival scoring scale on evaluated revenue to the State. The contract includes an eleven-year base term plus one optional five-year renewal and one optional twelve-month transition period. The contractor assumes all costs for system development, implementation, field operations, staff training, data center maintenance, a marketing fund ($850,000 initial annual with 3 percent annual inflation), instant ticket warehouse integration, Member Loyalty Rewards Program administration ($375,000 monthly prize budget with 3 percent annual inflation), sales force automation, and communications infrastructure. An electronic transaction fee of 1 percent of total invoiced amount is due within 45 calendar days after each reporting period. Liquidated damages for operational breaches range from $25 to $150,000 per day depending on the violation and include penalties for missed system conversion milestones, retailer terminal installation delays, late or inaccurate reports, and system outages exceeding two minutes daily. Questions are due July 30, 2026 at 10:00 a.m. No federal funding is associated with this procurement.