Lottery Instant Game, Pull-Tab, and Charity Game Tickets

The State of Michigan, through the Department of Technology, Management and Budget on behalf of the Michigan Bureau of State Lottery, is soliciting proposals for the manufacturing and distribution of instant game tickets, pull-tab tickets, and charity game tickets through Request for Proposal No. 230000002409. Bidders may submit proposals for one, two, or all three product categories, with the State anticipating awards to both primary and secondary manufacturers for each category, with primary contractors expected to fulfill approximately 90 percent of orders and secondary contractors fulfilling remaining orders and serving as backup. The Bureau anticipates introducing 35-45 instant games annually with approximately 350 million instant game tickets, 22-24 validation pull-tab games with 40-45 million pull-tab tickets annually, and approximately 131 million charity game tickets annually, though these figures are estimates subject to Bureau discretion. Deliverables include comprehensive services encompassing graphic design, prize structure development, computer programming, product printing, game design development, marketing and sales support, security measures, coupon database management, trademark and service mark searches, randomization and odds auditing, third-party focus group testing, and delivery using exclusive-use vehicles with security seals. Contractor qualifications require a minimum of five years of experience producing the respective lottery ticket products for state-sanctioned lottery programs, with a dedicated contractor representative and knowledgeable staff available during business hours (8:00 AM to 5:00 PM EST) to respond to Bureau inquiries within eight hours. Proposals will be evaluated on technical criteria including general requirements and product quality (40 points), service requirements (40 points), vendor questions worksheet responses (15 points), and acceptance of terms and conditions (5 points), with a minimum threshold of 80 points required for pricing evaluation. Critical deadlines include a question submission deadline of Friday, August 11, 2023, at 1:00 p.m. Eastern with anticipated answers posted by Friday, August 18, 2023, a proposal submission deadline of Friday, September 1, 2023, at 1:00 p.m. Eastern, and an anticipated contract begin date of Friday, December 1, 2023, with contract duration extending through December 1, 2028, with the option for the State to renew for up to five additional one-year periods.

The RFP does not specify set-asides exclusively designated for disadvantaged enterprises; however, if bidders subcontract services exceeding 20 percent of deliverables, they must comply with Goods and Services Disadvantaged Business Enterprise (GDBE) subcontracting requirements. No incumbent vendors or current contractors are identified in the RFP documentation. Integration requirements include compliance with State IT policies and standards, including SFTP and specific database specifications, with the State conducting all second chance drawings and hosting related websites and applications, requiring vendor coordination with existing State infrastructure. The contractor bears responsibility for all costs related to security compliance, including background investigations for employees, independent auditing of randomization and game odds, third-party focus group testing, and facility inspections with reasonable travel and accommodation expenses for one Lottery staff member per fiscal year. Pricing must be submitted on Schedule B documents with separate pricing for instant games, pull-tab tickets, and charity games based on tiered order volumes, with pricing established per thousand tickets or through flat fees and setup charges for various printing enhancements and specialty features; specific budget allocations and award values are not disclosed in the RFP. The contract includes liquidated damages provisions ranging from $500 to $450,000 per game depending on violation type, including late delivery, non-conforming tickets, security breaches, and failure to meet quality standards, with the State evaluating final awards based on best value considerations including principal place of performance, Michigan employment, and total cost of ownership.