RFP to modernize production of license plates for Kentucky

The Commonwealth of Kentucky Finance and Administration Cabinet, on behalf of the Kentucky Transportation Cabinet Division of Motor Vehicle Licensing, issued RFP 758 1900000201 to modernize the production, distribution, and inventory management of vehicle license plates by transitioning from traditional embossed aluminum plates produced at Kentucky Correctional Industries (KCI) to a digital flat plate system. The vendor shall establish a centralized plate production line at KCI facilities in La Grange, Kentucky, operate a distribution center for shipment to 155 county clerk offices and individual customers, and develop a browser-based inventory management system interfacing with the existing KAVIS vehicle registration system to manage approximately 230 license plate types across 4 million registered vehicles statewide. The comprehensive solution must include all production equipment, materials, supplies, software development, real-time inventory management capabilities, IT infrastructure, and fulfillment services, with the vendor responsible for all associated costs except KCI-supplied facility space, utilities, inmate labor, and machine maintenance. Proposals required separate sealed submissions for technical solutions (scored up to 1,500 points) and cost solutions (scored up to 500 points), with vendors achieving 1,000 points or greater on technical evaluation advancing to cost evaluation; the Commonwealth reserved the right to conduct oral presentations or demonstrations worth up to 250 additional points for the top-ranked vendors. Vendors were required to demonstrate at least three years of experience with large-scale license plate production and distribution services of similar scope and complexity and must have operated within correctional facility environments. The RFP was issued on January 10, 2019, with vendor question deadlines of January 22, 2019, and February 11, 2019, followed by Commonwealth responses on January 31 and February 20, 2019, respectively; four addenda were issued to address vendor inquiries and clarify requirements, with the final proposal submission deadline of March 1, 2019, at 3:30 p.m. EST to the Finance Office of Procurement Services at 702 Capitol Avenue, Frankfort, Kentucky 40601.

The RFP documentation does not identify set-aside designations or restrictions limiting participation to specific enterprise categories; however, all bidders must comply with Kentucky procurement statutes, including campaign finance laws (KRS 45A.110 and 45A.115), state tax registration requirements, and provisions prohibiting boycotts of jurisdictions with which Kentucky maintains open trade. Vendors must execute required affidavits affirming compliance with applicable regulations and must submit revenue documentation from Kentucky tax registration, a Certificate of Authority from the Secretary of State for foreign entities, and completion of the Mandatory Requirements Checklist addressing compliance with sections 30 and 50 of the RFP. The incumbent system involves KYTC staff managing inventory through the AVIS mainframe system with manual coordination with KCI for plate production and distribution. The Commonwealth anticipated annual re-plating funding of approximately $2 million, with separate budgets allocated for new vehicle plate issuance, resulting in production volumes of approximately 1.3 million plates during non-replating years and 2 million plates annually once the rolling re-plating plan commenced. The contract shall be awarded for an initial five-year term with three optional five-year renewal periods exercisable at the Commonwealth's sole discretion, operating under a transactional pricing model where the vendor charges per-plate fees plus actual postage costs, with no capital investment required from the Commonwealth; the vendor retains ownership of hardware and software while the Commonwealth maintains ownership of all data and system source code developed specifically for its requirements.