Veterans’ and fraternal organizations instant ticket lottery machines and central system

The State of Maryland is soliciting proposals for an instant ticket lottery central system, instant ticket lottery machines, and related services for veterans' and fraternal organizations, with proposals due September 29, 2026. The procurement is identified as Solicitation #2026-02 and is managed by the Maryland Lottery and Gaming Control Agency (MLGCA).

The scope encompasses supply and operation of a complete ITLM system including hardware, software, central system infrastructure, facility installations, and ongoing field service support. The contractor must implement comprehensive reporting across operational, financial, and tax categories, with daily to annual submission frequencies. Contractor personnel must pass criminal background checks (CJIS State and federal) at contractor expense prior to assignment, with exclusions for personnel convicted of crimes against property, theft, fraud, crimes against public administration, or crimes of violence as defined under Maryland law. All contractor personnel must display company identification badges while on State premises and ITLM locations.

The financial proposal structure is fixed as a tiered percentage of ITLM Net Proceeds, with separate percentages for location bands spanning 0 to 100 locations, 101 to 125 locations, 126 to 150 locations, 151 to 175 locations, 176 to 200 locations, and more than 200 locations, each stated to three decimal places. The proposal includes a credit mechanism for unused press checks and security visits calculated on a per-person, per-site-visit basis as a whole dollar amount. Contractor compensation is due within 30 days of receipt of proper invoices.

The contract includes liquidated damages for performance failures: $10,000 per day for late system conversion; $500 per day per location for late ITLM facility conversions; $500 per day for late deliverables; $1,000 per hour for central system downtime exceeding five minutes daily; and $25,000 per incident for unauthorized software changes or data center access. The sample contract establishes an initial term with MLGCA retaining unilateral discretion to extend for up to one three-year renewal option at prices established in the contract. A performance bond covering the original term, any extensions, and warranty periods is required, with surety obligation to complete remaining work or reimburse the state up to the penal sum amount if the contractor defaults and fails to remedy within 15 days of notice.

MBE and VSBE participation goals apply. Contractors must either commit to meeting the full MBE participation goal or request a waiver by demonstrating good faith efforts; identical requirements apply to VSBE participation. Only firms certified by the Maryland Department of Transportation (MDOT) may be counted toward MBE goals. VSBE participation goal waiver documentation, if required, must be submitted within ten business days of apparent awardee notification. All subcontractors must be documented on Attachment P, with anticipated subcontractors submitted with the bid and actual subcontractors completed during performance and at closeout.

A bid bond is required with a ninety-day acceptance period, extendable up to an additional ninety days. Bidders must submit references from customers for comparable goods or services within the timeframe specified in Section 3, Table A of the solicitation. Contractors valued at $200,000 or more in aggregate state contracts within a calendar year must file beneficial ownership information with the Maryland Secretary of State within thirty days of reaching that threshold and comply with biennial political contribution disclosure requirements covering the prior twenty-four months and subsequently twice annually during contract term.

All contractor personnel must comply with data protection and confidentiality requirements, including a mandatory Data Use Agreement prohibiting sale or unauthorized sharing of personal information and requiring breach notification to the state and Maryland Security Operations Center within twenty-four hours of discovery, with individual notification within forty-five days. Contractors must implement reasonable security measures including cryptographic data transmission, limited disclosure to need-to-know personnel, and current access lists. Upon contract termination, contractors must return or destroy all personal information and provide written certification of destruction using NIST-compliant methods.

Questions due and pre-bid meeting or site visit dates are not identified in the source materials.