Request for Proposals for Internal Control System and Related Services

The Texas Department of Licensing and Regulation (TDLR) is soliciting proposals for a comprehensive Internal Control System (ICS) for the Texas Lottery Program through RFP #452-2026-0001. The procurement seeks a vendor to develop, implement, and provide ongoing support for an ICS that will independently process and verify all lottery transactions, including daily sales, validation, inventory, claims, and retailer management activities. The system must support all Texas Lottery products and games, including multijurisdictional games like Mega Millions and Powerball, with the capability to process up to 200,000 sales transactions per minute and support 100,000 active and cancelled retailers. The successful proposer must provide four integrated systems: Primary, Secondary, Backup, and Development/Test, with the ICS to be installed, configured, and operational by August 31, 2026, to support user acceptance testing. Key proposal submission deadlines include a pre-proposal conference on November 6, 2025, written questions due by November 12, 2025, and final proposals due on December 8, 2025, at 4:00 p.m. Central Time. The contract term will run through August 31, 2031, with potential extensions of up to one additional three-year period and three additional one-year periods.

The procurement includes a Historically Underutilized Business (HUB) Subcontracting Plan with a 21.60% HUB participation goal, requiring proposers to identify and include certified HUB vendors in their submission. Performance and insurance requirements are substantial, including a $25,000 performance bond, Commercial General Liability insurance of $1,000,000 per occurrence, Professional Liability insurance of $1,000,000, and Workers' Compensation coverage. The current ICS vendor is Elsym Consulting, Inc., contracted through Brightstar Global Solutions Corporation, whose lottery operator contract expires August 31, 2028. Proposers must submit a separate sealed cost proposal with all-inclusive pricing for installation/conversion as a one-time fee and monthly maintenance and support services, with pricing to remain firm throughout the contract duration. The procurement is subject to the Texas Public Information Act and requires proposers to comply with background investigations, conflict-of-interest disclosures, and various state certifications related to taxation, immigration, cybersecurity, and prohibitions on discriminatory practices. While specific budget ranges are not explicitly stated, the comprehensive system requirements and multi-year contract suggest a significant investment in lottery technology infrastructure.