RFQ 2602. Pre-qualification for lifetime annuity bids

The Massachusetts State Lottery Commission has issued RFQ 2602, a Request for Qualifications to establish a pre-qualified pool of insurance companies to submit lifetime annuity bids for lottery grand prizes. The procurement seeks established, recognized, and qualified insurance companies licensed to do business in Massachusetts to provide life annuity contracts that fund guaranteed lifetime prize payments to lottery winners. Qualified bidders must meet minimum requirements including an AM BEST rating of A- or better, at least $100 million in capital and surplus, and at least $1 billion in assets per independently audited financial statements; bidders must also maintain a Massachusetts business license, possess appropriate fidelity bonds, have not filed bankruptcy within the past three years, and maintain workers compensation and liability insurance. The RFQ follows a streamlined two-phase process whereby firms first submit Phase I pre-qualification responses by March 30, 2026, at 10:00 AM EST (with bidder questions due by March 2, 2026), and subsequently submit sealed competitive bids for individual annuity contracts on an as-needed basis. The RFQ remains open with rolling enrollment through June 30, 2033, with proposals reviewed quarterly and awards made on a rolling basis; successful bidders will enter into five-year initial contracts with the option for two additional one-year extensions, for a maximum contract term of seven years. Phase I responses must include cover letters, statements of minimum qualifications, representations and warranties, legal certifications, disclosure statements, tax compliance certificates from the Massachusetts Department of Revenue, three business references confirming similar service experience, and no cost-related information. Winners of subsequent annuity bids are selected through competitive sealed bidding based on the lowest responsible bidder's premium quotations, with payment made within ten business days for standard games and up to thirty business days for multi-state games.

The RFQ does not establish formal set-aside designations; however, bidders are encouraged to complete supplier diversity program and Invest in Massachusetts plans, though participation in these programs is optional. There are no identified incumbent vendors or current contractors listed in the procurement documents. In Fiscal Year 2025, one annuity bid opening funded two lifetime prizes with aggregated guaranteed prize liability of $208,000 and total premium cost of $158,922, providing a baseline for anticipated contract values, though future bid amounts will vary based on individual prize structures and demographics of lottery winners. The Commission reserves the right to award contracts to single or multiple vendors and may terminate vendors from the contract without cause with sixty days' written notice. All Phase I responses must remain valid for 150 days from the submission date, and all responses become the property of the MSLC upon receipt and are subject to Massachusetts public records law.