RFP DOR 17002 - Scratch Ticket Production

The Colorado Department of Revenue, State Lottery Division, issued Request for Proposal (RFP) DOR17002 for Scratch Ticket Production services on October 28, 2016, with a proposal deadline of December 22, 2016, at 2:00 PM Mountain Standard Time. The procurement seeks to award contracts to one Primary Contractor (producing a minimum of 80% of ordered scratch games) and one or more Secondary Contractors (producing up to 20% of total games ordered, with no guaranteed minimum volume) to design, produce, and deliver instant lottery scratch tickets and related services for the Colorado Lottery. The scope encompasses ticket production across seven price points ($1, $2, $3, $5, $10, $20, and $50), with an estimated 40-45 games annually and projected FY2017 sales of $396 million across approximately 761.87 million tickets over the six-year contract term. Primary Contractors must provide comprehensive services including product design, production, critical support services (marketing assistance, market research, retailer promotions, game design support, and tracking studies), and delivery to designated Colorado warehouses in Pueblo and Denver, while Secondary Contractors need only provide product and production services. The contract period runs from July 1, 2017, through June 30, 2023, with options to renew for two additional two-year periods extending through June 30, 2027. Proposal submissions require seven complete copies (one original and six duplicates) plus an electronic copy, with pricing submitted separately in sealed envelopes on a per-thousand-ticket basis. Evaluation criteria include company experience and qualifications, product and production services capabilities, security and game integrity protocols, ticket handling and storage procedures, critical support services, value-added elements, and pricing. The RFP timeline included two rounds of written inquiries with deadlines of November 2, 2016, and November 23, 2016 (both at 5:00 PM MST), oral presentations and site visits estimated for January 30 through February 10, 2017, a Notice of Intent to Make Award projected for March 23, 2017, and financial and security admissions and algorithm acceptance testing to be completed by April 7, 2017.

The RFP includes a Service-Disabled Veteran Owned Small Business (SDVOSB) goal of at least 3 percent of contract value, with eligible entities required to provide appropriate certification documentation from the U.S. Department of Veterans Affairs. No incumbent contractor was identified in the procurement documents. The Primary Contractor must obtain a $3,000,000 performance bond and a $5,000,000 fidelity bond, while Secondary Contractors must secure a $300,000 performance bond and share the $5,000,000 fidelity bond requirement, with all bonds issued by companies licensed in Colorado and delivered within ten days of the Notice of Intent to Award. The Apparent Successful Offeror must complete financial and security investigations at its own expense, including comprehensive background checks of officers, directors, and employees with 5 percent or greater ownership stakes, conducted by the Colorado Lottery Commission, Colorado Bureau of Investigation, and Colorado Attorney General. IGT Global Solutions Corporation was awarded the Primary Contractor position on May 12, 2017, with a reported contract award value of $400,000.00; however, this figure appears to represent an initial or partial award amount, as the comprehensive market basket projections and service scope suggest substantially higher total contract values over the six-year term. Weldon Williams & Lick Inc. submitted a non-conforming alternative proposal and did not receive contract award. All pricing proposals must be firm, best, and final offers with no estimated or "to be negotiated" pricing accepted (except for retailer games, pouches, and probability games), and prices must remain firm throughout the initial contract term and all renewal periods.