The Commonwealth of Massachusetts Massachusetts State Lottery Commission (MSLC) REQUEST FOR RESPONSE (RFR)

Transcription

1 The Commonwealth of Massachusetts Massachusetts State Lottery Commission (MSLC) REQUEST FOR RESPONSE (RFR) Document Title: COMMBUYS Bid Number: BD LOT MSLC Document Number: RFR LOT # 1501 RFR Release Date: February 2, 2015 RFR Response Due Date/Time: June 2, 2015 at 1:00 PM Please note: This is a single document associated with a complete Bid (also referred to as Solicitation) that can be found on All Bidders are responsible for reviewing and adhering to all information, forms and requirements for the entire Bid, which are all incorporated into the Bid. Bidders may also contact the COMMBUYS Helpdesk at COMMBUYS@state.ma.us or the COMMBUYS Helpline at MA STATE. The Helpline is staffed from 8:00 a.m. to 5:00 p.m. Monday through Friday Eastern Standard or Daylight time, as applicable, except on federal, state and Suffolk county holidays.

2 GENERAL INFORMATION General Information - The terms of 801 CMR 21.00: Procurement of Commodities and Services is incorporated by reference into this RFR. Words used in this RFR shall have the meanings defined in 801 CMR Additional definitions may also be identified in this RFR. All terms, conditions, requirements, and procedures included in this RFR must be met for a Response to be determined responsive. If a Bidder fails to meet any material term, condition, requirement or procedure, its Response may be deemed unresponsive and disqualified. Unless otherwise specified in this RFR all communications, responses, and documentation must be in English, all measurements must be provided in feet, inches, and pounds, equipment must be new and of current manufacturing models and unused, and all cost proposals or figures in U.S. Currency. All Responses must be submitted in accordance with the specific terms of this RFR. No electronic Responses may be submitted in response to this RFR. The MSLC will not assume nor be liable for any costs incurred by the Bidder in preparing and/or submitting a response to this RFR. The MSLC is not obligated to award any contract pursuant to this RFR, and any such contract is subject to available funding. The Procurement Management Team ( PMT ) reserves the right to modify, amend or cancel the terms of this RFR at any time. TERMS AND CONDITIONS Agent(s) Term used to describe one of, or multiple Lottery - licensed retail sales Agents who sell the MSLC s products on behalf of the Lottery. Alterations - Bidders may not alter (manually or electronically) the Solicitation language or any Solicitation component files, except as directed in the RFR. Modifications to the body of the Solicitation, specifications, terms and conditions, or which change the intent of this Solicitation are prohibited and may disqualify a Response. Alternatives - A response which fails to meet any material term or condition of the RFR, including the submission of required attachments, may lose points or be deemed unresponsive and disqualified. Unless otherwise specified, Bidders may submit responses proposing alternatives which provide equivalent, better or more cost effective performance than achievable under the stated RFR specifications. These alternatives may include related commodities or services that may be available to enhance performance during the period of the contract. The response should describe how any alternative achieves substantially equivalent or better performance to that of the RFR specifications. The MSLC will determine if a proposed alternative method of performance achieves substantially equivalent or better performance. The goal of this RFR is to provide the best value of commodities and services to achieve the procurement goals of the department. Bidders that propose discounts, uncharged commodities and services or other benefits in addition to the RFR specifications may receive a preference or additional points under this RFR as specified. Vendors may also propose alternatives for equivalent, better or more cost effective performance than specified under the Vendor s original response to enable the MSLC to take advantage of enhanced technologies, commodities or services which become available during the term of the contract. Arrearages- By submitting a response to this Solicitation, each Bidder represents that it is not in arrears in the payment of any obligations due and owing the State, including the payment of taxes and employee benefits, and that it shall not become so in arrears during the term of the contract if selected as the Selected Bidder or Vendor. Best Value Selection and Negotiation- The Procurement Management Team (PMT) may select the response(s) which demonstrates the best value overall, including proposed alternatives that will achieve the procurement goals of the department. The PMT and a Selected Bidder, or a Vendor, may negotiate a change in any element of contract performance or cost identified in the original RFR or the Selected Bidder s or Vendor s response which results in lower costs or a more cost effective or better value than was presented in the Selected Bidder s or Vendor s original response. Bidder(s) - Means potential or actual respondents to this RFR. Bidder Communication - Bidders are prohibited from communicating directly with any employee of the MSLC or any member of the PMT regarding this RFR except as specified in this RFR, and no other individual Commonwealth employee or representative is authorized to provide any information or respond to any question or inquiry concerning this RFR. Bidders may contact the contact person for this RFR in the event this RFR is incomplete or the Bidder is having trouble obtaining any required attachments electronically through COMMBUYS. RFR LOT #1501 Page 2 of 262

3 Business Profile/Change in Financial Condition - The MSLC reserves the right to request, at MSLC expense through the reporting system in place at the time, a business profile and financial condition report on any corporation, parent company, directors, principals, officers, partnerships or sole proprietorships involved in submitting a response to this RFR. In addition, the MSLC reserves the right to obtain, from sources other than the Bidder, information concerning the Bidder, the Bidder s capabilities and the Bidder s performance under other contracts which the MSLC deems pertinent to this RFR and to consider such information when making an award. Vendors shall be required to immediately inform the Executive Director of the MSLC in writing of any major change in the financial condition or organization of the company. Misrepresentation or failure of the Vendor to notify the MSLC shall be grounds for contract award cancellation and/or termination. COMMBUYS. COMMBUYS is the official source of information for this Bid and is publicly accessible at no charge at Information contained in this document and in COMMBUYS, including file attachments, and information contained in the related Bid Q&A, are all components of the Bid, as referenced in COMMBUYS, and are incorporated into the Bid and any resulting contract. Bidders are solely responsible for obtaining all information distributed for this Bid via COMMBUYS. Bid Q&A supports Bidder submission of written questions associated with a Bid and publication of official answers. It is each Bidder s responsibility to check COMMBUYS for: any amendments, addenda or modifications to this Bid; any Bid Q&A records related to this Bid. The Commonwealth accepts no responsibility and will provide no accommodation to Bidders who submit a Quote/Response based on an out-of-date Bid or on information received from a source other than COMMBUYS. The COMMBUYS system introduces new terminology, with which Bidders must be familiar, in order to conduct business with the Commonwealth. To view this terminology and to learn more about the COMMBUYS system, please visit the COMMBUYS Resource Center. COMMBUYS Subscription. Bidders may elect to obtain a free COMMBUYS Seller subscription which provides value-added features, including automated notification associated with postings and modifications to COMMBUYS records. However, in order to respond to a Bid, Bidders must register and maintain an active COMMBUYS Seller subscription account. All Bidders submitting a Quote/Response in response to this Bid (previously referred to as Solicitation) agree that, if awarded a contract (1) they will maintain an active seller account in COMMBUYS; (2) keep current the address of the Bidder s contact person and prospective Contract Manager, and to monitor that inbox for communications from the MSLC, including requests for clarification; (3) they will, when directed to do so by the procuring entity, activate and maintain a COMMBUYS-enabled catalog using Commonwealth Commodity Codes; (4) they will comply with all requests by the procuring entity to utilize COMMBUYS for the purposes of conducting all aspects of purchasing and invoicing with the Commonwealth, as added functionality for the COMMBUYS system is activated; (5) they understand and acknowledge that all references to the Comm-PASS website, or related requirements throughout this RFR, shall be superseded by comparable requirements pertaining to the COMMBUYS website; and (6) in the event the Commonwealth adopts an alternate market center system, they will be required to utilize such system, as directed by the procuring entity. Commonwealth Commodity Codes are based on the United Nations Standard Products and Services Code (UNSPSC). Please note: The MSLC and the Commonwealth assume no responsibility if a prospective Bidder s/awarded Contractor s designated address is not current, or if technical problems, including those with the prospective Bidder s/awarded Contractor s computer, network or internet service provider (ISP) cause communications sent to/from the prospective Bidder/Awarded contractor and the MSLC to be lost or rejected by any means including or spam filtering. Commonwealth Tax Exemption - Payment vouchers or invoices submitted to the MSLC must not include sales tax. Conflict of Interest - Prior to the award of any contract, the Vendor shall certify in writing to the procuring agency that no relationship exists between the Vendor and the MSLC that interferes with fair competition or is a conflict of interest, and no relationship exists between the Vendor and another person or organization that constitutes a conflict of interest with respect to a state contract. No official or employee of the Commonwealth who exercises any function or responsibility in the review or approval of the undertaking or carrying out of this project shall, prior to the completion of this project, voluntarily acquire any personal interest, either directly or indirectly, in this contract or proposed contract. RFR LOT #1501 Page 3 of 262

4 The Bidder shall provide assurance that it presently has no interest and shall not acquire any interest, either directly or indirectly, which will conflict in any manner or degree with the performance of its services hereunder. The Bidder shall also provide assurances that no person having any such known interests shall be employed during the performance of this contract. Contract Award - The contract will be awarded to the Vendor with the lowest overall cost that has met all mandatory performance and business specifications provided it is the best value for the Commonwealth of Massachusetts. A procurement will be considered in the best interest, or the best value when it: 1) supports the achievement of required performance outcomes; 2) generates the best quality and economic value; 3) is performed timely; 4) minimizes the burden on administrative resources; 5) expedites simple or routine purchases; 6) allows flexibility in developing alternative procurement and business relationships; 7) encourages competition and the continuing participation of quality Vendors; and 8) supports Commonwealth and MSLC procurement planning and implementation. [801 CMR (1)]. The PMT may select the response(s) which demonstrates the best value overall, including proposed alternatives which will achieve the procurement goals of the department. The PMT and a Selected Bidder, or a Vendor, may negotiate a change in any element of contract performance or cost identified in the original RFR or the Selected Bidder s or Vendor s response which results in lower costs or a more cost effective or better value than was presented in the Selected Bidder s or Vendor s original response. If, over the life of the contract, the PMT determines that additional Contractors should be added, these may first be drawn from qualified firms that responded to this RFR but were not awarded contracts. If necessary to meet the requirements of the Commonwealth, the RFR may be re-opened to obtain additional Quote/Response. Contract Documents - The contract between the MSLC and the awarded Vendor will include as integral parts thereof, in the following order of precedence: Commonwealth Terms and Conditions (See Attachment A) Standard Contract Form (See Attachment B) This RFR and amendments thereto Statement of Work and any other documents negotiated between the parties under this RFR Vendor s response to this RFR and amendments thereto In the event of a conflict in language between any of the above mentioned documents, the provisions and requirements set forth or referenced in the Commonwealth Terms and Conditions and this RFR (including any amendments hereto) shall govern. In the event that an issue is addressed in the response that is not addressed in the RFR, no conflict in language shall be deemed to occur. Contract Expansion - If additional funds become available during the contract duration period, the MSLC reserves the right to increase the maximum obligation to some or all contracts executed as a result of this RFR or to execute contracts with contractors not funded in the initial selection process, subject to available funding, satisfactory contract performance and service or commodity need. Contract Manager - The selected vendor must assign a Contract Manager(s) which the MSLC may contact regarding the service performance during the contract term. The MSLC reserves the option to require that the individual(s) be replaced if it finds that they are not responsive or compatible. Costs - Costs which are not specifically identified in the Bidder s response, and accepted by the MSLC as part of a contract, will not be compensated under any contract awarded pursuant to this RFR. The Commonwealth will not be responsible for any costs or expenses incurred by Bidders responding to this RFR. Electronic Communication/Update of Bidder s/vendor s Contact Information - It is the responsibility of the prospective Bidder and awarded Vendor to keep current the address of the Bidder s contact person and prospective contract manager, if awarded a contract, and to monitor that inbox for communications from the PMT, including requests for clarification. The PMT and the Commonwealth assume no responsibility if a prospective Bidder s/awarded contractor s designated address is not current, or if technical problems, including those with the prospective Bidder s/awarded contractor s computer, network or internet service provider (ISP) cause communications sent to/from the prospective Bidder/awarded contractor and the PMT to be lost or rejected by any means including or spam filtering. Electronic Funds Transfer (EFT). All Bidders responding to this RFR must agree to participate in the Commonwealth RFR LOT #1501 Page 4 of 262

5 Electronic Funds Transfer (EFT) program for receiving payments, unless the Bidder can provide compelling proof that it would be unduly burdensome. EFT is a benefit to both Vendors and the Commonwealth because it ensures fast, safe and reliable payment directly to Vendors and saves both parties the cost of processing checks. Vendors are able to track and verify payments made electronically through the Comptroller s Vendor Web system. A link to the EFT application can be found on the OSD Forms page ( Additional information about EFT is available on the VendorWeb site ( Click on MASSfinance. Successful Bidders, upon notification of contract award, will be required to enroll in EFT as a contract requirement by completing and submitting the Authorization for Electronic Funds Payment Form to the MSLC for review, approval and forwarding to the Office of the Comptroller. If the Bidder is already enrolled in the program, it may so indicate in its response. Because the Authorization for Electronic Funds Payment Form contains banking information, this form, and all information contained on this form, shall not be considered a public record and shall not be subject to public disclosure through a public records request. The requirement to use EFT may be waived by the PMT on a case-by-case basis if participation in the program would be unduly burdensome on the Bidder. If a Bidder is claiming that this requirement is a hardship or unduly burdensome, the specific reason must be documented in its response. The PMT will consider such requests on a case-by-case basis and communicate the findings with the Bidder. Emergency Standby Commodities and/or Services - Due to a declaration of a state of emergency where the safety and well-being of Commonwealth citizens are at risk, the Commonwealth of Massachusetts may request specific commodities and/or services from its Vendors. Vendors may be called upon to supply and/or deliver to the MSLC on a priority basis such commodities and/or services currently under contract. Such accommodations may be requested from a Vendor during an actual emergency. To accommodate such requests, Vendors may be requested and must make every effort to service these requests from regular sources of supply at the rates set forth in any standard contract resulting from this RFR. Environmentally Preferable Products and Services - The MSLC and the Vendor(s) may negotiate during the contract term to permit the substitution or addition of Environmentally Preferable Products (EPPs) when such products are readily available at a competitive cost and satisfy the MSLC s performance needs. Environmental Response Submission Compliance - In an effort to promote greater use of recycled and environmentally preferable products and minimize waste, all responses submitted should comply with the following guidelines: All copies should be printed double sided. All submittals and copies should be printed on recycled paper with a minimum post-consumer content of 30% or on tree-free paper (i.e. paper made from raw materials other than trees, such as Kenaf). To document the use of such paper, a photocopy of the ream cover/wrapper should be included with the response. Unless absolutely necessary, all responses and copies should minimize or eliminate use of non-recyclable or non-reusable materials such as plastic report covers, plastic dividers, vinyl sleeves and GBC binding. Three ringed binders, glued materials, paper clips and staples are acceptable. Bidders should submit materials in a format which allows for easy removal and recycling of paper materials. Bidders are encouraged to use other products which contain recycled content in their response documents. Such products may include, but are not limited to, folders, binders, paper clips, diskettes, envelopes, boxes, etc. Where appropriate, Bidders should note which products in their responses are made with recycled materials. Unnecessary samples, attachments or documents not specifically asked for should not be submitted. Executive Order 515, Establishing an Environmental Purchasing Policy Products and services purchased by state agencies must be in compliance with Executive Order 515, issued October 27, Under this Executive Order, Executive Departments are required to reduce their impact on the environment and enhance public health by procuring environmentally preferable products and services (EPPs) whenever such products and services perform to satisfactory standards and represent best value, consistent with 801 CMR In line with this directive, all contracts, whether departmental or statewide, comply with the specifications and guidelines established by OSD and the EPP Program. EPPs are considered to be products and services that help to conserve natural resources, reduce waste, protect public health and the environment, and promote the use of clean technologies, recycled materials, and less toxic products. Questions concerning the Executive Order or the appropriate specifications may be directed to OSD s EPP Procurement Program: Evaluation Criteria (Components) - The evaluation criteria is designed to select Bid Proposals that offer the best value to the Commonwealth. Only responsive proposals that meet all required specifications and procedures, as outlined in the RFR, will be evaluated, scored and qualified by the PMT. The following components will be the criteria considered by the Procurement Management Team (PMT) when evaluating each Bid Response: Mandatories RFR LOT #1501 Page 5 of 262

6 Highly Desirables Desirables Cost Supplier Diversity Program (SDP) (See Attachment G) Invest in MA. (See Attachment J and Attachment J1) Bidder scores will be used to rank Bidders and will determine which Bidders will proceed to subsequent stages of the evaluation and/or enter into negotiations with the Commonwealth to receive a contract award. Estimated Provisions - The Commonwealth makes no guarantee that any Commodities or Services will be purchased from any contract resulting from this RFR. Any estimates or past procurement volumes referenced in this RFR are included only for the convenience of Bidders, and are not to be relied upon as any indication of future purchase levels. Freight - Unless otherwise specified, all products and services shall be FOB Destination. The MSLC will not assume any separate freight, mileage, travel time or any other associated charges in addition to the bid price. Any charges of this nature are to be included in the bid price. Information Technology, Clarification of Language in Section 11, Indemnification of the Commonwealth Terms and Conditions - Required for the following object codes within the Expenditure Classification Handbook as issued by the Office of the Comptroller (OSC): CODE TITLE U01 U02 U03 U04 U05 U06 U07 U08 U09 U10 U75 U98 Telecommunications Services Data Telecommunications Services Voice Software and Information Technology (IT) Licenses Information Technology (IT) Chargeback Information Technology (IT) Professionals Information Technology (IT) Cabling Information Technology (IT) Equipment Information Technology (IT) Equipment TELP Lease-Purchase Information Technology (IT) Equipment Rental or Lease Information Technology (IT) Equipment Maintenance and Repair Advance Administrative Expenses Reimbursement for Travel Expenses for IT Professionals Pursuant to Section 11. Indemnification of the Commonwealth Terms and Conditions, the term other damages shall include, but shall not be limited to, the reasonable costs the Commonwealth incurs to repair, return, replace or seek cover (purchase of comparable substitute commodities and services) under a contract. Other damages shall not include damages to the Commonwealth as a result of third party claims, provided, however, that the foregoing in no way limits the Commonwealth s right of recovery for personal injury or property damages or patent and copyright infringement under Section 11 nor the Commonwealth s ability to join the Vendor as a third party defendant. Further, the term other damages shall not include, and in no event shall the Vendor be liable for, damages for the Commonwealth s use of Vendor-provided products or services, loss of Commonwealth records or data (or other intangible property), loss of use of equipment, lost revenue, lost savings or lost profits of the Commonwealth. In no event shall other damages exceed the greater of $100,000, or two times the value of the product or service (as defined in the contract scope of work) that is the subject of the claim. Section 11 sets forth the Vendor s entire liability under a contract. Nothing in this section shall limit the Commonwealth s ability to negotiate higher limitations of liability in a particular contract, provided that any such limitation must specifically reference Section 11 of the Commonwealth Terms and Conditions. This paragraph is explicitly limited in application to the RFR and related purchases by the definition of damages and methodology of calculating damages stated in Section VII, Part B of this solicitation. If there is any conflict between this paragraph and the terms of Section VII, then Section VII shall prevail. Limitation of Liability and Indemnification - Bidder agrees to and shall comply with the following provisions: A. The MSLC shall not be liable to the Bidder under any theory of liability for any direct, indirect, incidental, special consequential or exemplary damages that may be incurred from the shipping and delivery of the Bidder s products, or placement of the Bidder s products at any MSLC location or at any MSLC agent s location. RFR LOT #1501 Page 6 of 262

7 B. To the maximum extent permitted by law, the Bidder agrees to defend, indemnify and hold harmless the MSLC, its directors, officers, and employees from and against any and all third party claims, actions, suits or proceedings, as well as any and all losses, liabilities, damages, costs and expenses arising out of or accruing from any violation of this agreement and any damages, injuries, which may occur from the defect and/or design of any product. Insurance - Vendor shall maintain, throughout the term of the contract the type of insurance as set forth below: Workers Compensation Insurance - for officers, employees and agents employed in connection with this contract in accordance with applicable law, including the laws of the Commonwealth of Massachusetts as well as the laws of any other state where the Contractor maintains its principal place of business with a limit of at least two hundred thousand dollars ($200,000) per occurrence with an annual aggregate of one million dollars ($1,000,000). Vehicle Liability Insurance - covering owned, non-owned, substitute and hired vehicles in accordance with applicable laws, including, but not limited to, the automobile insurance laws of the Commonwealth of Massachusetts, and those of any other states where the Vendor maintains its principal place of business with a combined single limit annual aggregate of one million dollars ($1,000,000). Commercial General Liability Insurance - for all damages arising out of bodily injury or death, or damage to personal or real property incurred with respect to work performed under this contract. Said insurance shall provide for bodily injury and property damage coverage liability limits of one million dollars ($1,000,000) per person with an annual aggregate of three million dollars ($3,000,000) per event. The Vendor shall provide certificates of insurance evidencing such coverage to the MSLC within ten (10) days of the date of execution of the contract by the Vendor and the MSLC. Failure to provide and maintain such insurance shall be deemed a breach of contract, and may, at the sole discretion of the MSLC, operate as immediate termination hereof. Each policy of insurance shall expressly provide sixty (60) days prior notice by the insurer to the MSLC of any intent to cancel, failure to renew or material change in the coverage identified above. The automobile liability insurance and the commercial general liability insurance policies shall identify the MSLC as an additional insured. All insurance shall be maintained from an insurance carrier authorized to conduct business in the Commonwealth of Massachusetts. Invest in Massachusetts - The MSLC encourages investment in our local economy and is committed to advancing the creation and preservation of jobs in the Commonwealth. As a result, Bidders must submit an Invest in Massachusetts Data Form (the IMD Form ). Bidders, regardless of their certification status, are required to complete Parts I and II of the IMD Form in order to be deemed responsive and eligible for consideration. Bidders who are able to and do certify in Part III of the IMD Form that 50% or more of the work-hours performed in connection with any contract arising out of its RFR Response will be performed in Massachusetts will receive toward their overall score an additional 5% of the Bidder s total Business and Technical evaluation points. Please be advised, however, that inability to provide such certification shall not preclude any Bidder from being awarded a contract if such Bidder receives the most overall points throughout the entire evaluation process. Mandatory and Desirable - Mandatory specifications in this RFR are identified with the words "must", "shall", "will", "mandatory", or "is required". However, Bidders must assume that every specification included herein is a mandatory specification, unless it is clearly indicated to be otherwise. A mandatory specification is one that must be met in order for a response to be considered responsive. Any response which fails to meet a mandatory specification of the RFR will be deemed non-responsive and will be disqualified. Desirable specifications are designated with the words, "is desired", "desirable", and "highly desirable". Unless there is an explicit indication to the contrary stated in this RFR, Bidders may receive evaluation points for desirable goods and services. Minimum Bid Duration - Bidder responses/bids made in response to this RFR must remain in effect for one hundred eighty (180) days from the date of bid submission. News Releases - The successful Vendor shall not issue any news releases, advertising or promotional materials pertaining to the performance of the contract without prior approval by the Executive Director of the MSLC. Ownership of Submitted Responses - All documentation, materials, data, etc., submitted in response to this RFR shall become the property of the MSLC, and will not be returned to the Bidder. Bidders are cautioned that ideas, techniques, information, etc., submitted as part of the Bidders response may be used by the MSLC without separate payment to the Bidder or Sub-Contractors. RFR LOT #1501 Page 7 of 262

8 Payments - Payment shall be made for services only after such services have been delivered and accepted by the MSLC. Payments shall be made only in arrears. No advance payments can be made to Vendors. Payment will be made forty-five (45) days after acceptance and following receipt of invoice (unless a Prompt Pay Discount (PPD) is agreed upon). Pricing: Federal Government Services Administration (GSA) or Veteran s Administration Supply - The MSLC reserves the right to request from the Successful Bidder(s) initial pricing schedules and periodic updates available under their GSA or other federal pricing contracts. In the absence of proprietary information being part of such contracts, compliance for submission of requested pricing information is expected within thirty (30) days of any request. If the Vendor receives a GSA or Veteran s Administration Supply contract at any time during this contract period, it must notify the MSLC contract manager. Pricing: Price Limitation. The Bidder must agree that no other state or public entity customer within the United States of similar size and with similar terms and conditions shall receive a lower price for the same commodity and service during the contract period, unless this same lower price is immediately effective for the Commonwealth. If the Commonwealth believes that it is not receiving this lower price as required by this language, the Bidder must agree to provide current or historical pricing offered or negotiated with other state or public entities at any time during the contract period in the absence of proprietary information being part of such contracts. Prime Contractor Responsibility - The MSLC requires a single point of responsibility for performance of any contract that may result from this RFR. Subcontractors may be used, but the Prime Contractor must accept full responsibility for the subcontractor's performance. All subcontractors must be identified by the Prime Contractor and the Prime Contractor must describe the type of contractual arrangement that will exist with all subcontractors. The Prime Contractor shall be responsible for meeting all of the terms of the contract resulting from the RFR. Prior approval of the MSLC is required for any subcontracted service of the contract. Vendors are responsible for the satisfactory performance and adequate oversight of its subcontractors. Subcontractors are required to meet the same state and federal financial and program reporting requirements and are held to the same reimbursable cost standards as contractors. Prompt Payment Discounts (PPD). All Bidders responding to this procurement must agree to offer discounts through participation in the Commonwealth Prompt Payment Discount (PPD) initiative for receiving early and/or on-time payments, unless the bidder can provide compelling proof that it would be unduly burdensome. PPD benefits both contractors and the Commonwealth. Vendors benefit by increased, usable cash flow as a result of fast and efficient payments for commodities or services rendered. Participation in the Electronic Funds Transfer initiative further maximizes the benefits with payments directed to designated accounts, thus eliminating the impact of check clearance policies and traditional mail lead time or delays. The Commonwealth benefits because Vendors reduce the cost of products and services through the applied discount. Payments that are processed electronically can be tracked and verified through the Comptroller s Vendor Web system. The PPD form can be found under the Forms and Terms tab of this RFR. Bidders must submit agreeable terms for Prompt Payment Discount using the PPD form within their proposal, unless otherwise specified by the PMT. The PMT will review, negotiate or reject the offering as deemed in the best interest of the Commonwealth. The requirement to use PPD offerings may be waived by the PMT on a case-by-case basis if participation in the program would be unduly burdensome on the Bidder. If a Bidder is claiming that this requirement is a hardship or unduly burdensome, the specific reason must be documented in or attached to the PPD form. Publicity - Any Vendor awarded a contract under this RFR is prohibited from selling or distributing any information collected or derived from the contract, including lists of participating entities, Commonwealth employee names, telephone numbers or addresses, or any other information except as specifically authorized by the Executive Director of the MSLC. Public Records - All responses and information submitted in response to this RFR are subject to the Massachusetts Public Records Law, M.G.L., c. 66, 10, and to c. 4, 7, cl. 26. Any statements in submitted responses that are inconsistent with these statutes shall be disregarded. Reasonable Accommodation - Bidders with disabilities or hardships that seek reasonable accommodation, which may include the receipt of RFR information in an alternative format, must communicate such requests in writing to the contact person. Requests for accommodation will be addressed on a case by case basis. A Bidder requesting accommodation must submit a written statement which describes the Bidder s disability and the requested accommodation to the contact person for the RFR. The PMT reserves the right to reject unreasonable requests. Rejection of Bids - The MSLC may reject any and all bids in response to this RFR if it deems it is in its best interest to do so. The MSLC may also reject any and all bids for any of the following reasons: a) fails to adhere to one or more of the provisions established in this RFR; RFR LOT #1501 Page 8 of 262

9 b) fails to submit its bid at the time or in the format specified herein, or to supply the minimum information requested herein; c) fails to meet unconditionally all of the mandatory performance and business specifications of this RFR; d) fails to state in writing its acceptance of the mandatory terms and conditions in Attachment A of this RFR as they appear in Attachment A without change or alteration; e) fails to submit its bid, to the required address, before or on the deadline date established by the Procurement Calendar; f) materially misrepresents its services or provides demonstrably false information in its bid; g) fails to submit costs on the Cost Tables (Attachment C), or to guarantee the costs for one hundred eighty (180) days; h) refuses to provide clarification, if requested by the Procurement Management Team (PMT); i) fails to sign a contract within ten (10) business days of receipt of the Contract for signing. Restriction on the Use of the Commonwealth Seal - Bidders and contractors are prohibited by law from the use of the Commonwealth of Massachusetts Seal in their bid package or subsequent marketing materials if they are awarded a contract. Revisions to this RFR - If it becomes necessary to revise any part of this RFR, or if additional data is necessary to clarify any of its provisions, a supplement will be posted on the Commonwealth Procurement Access and Solicitation (COMMBUYS) Site It will be mailed or faxed to Vendors who have obtained a copy of the RFR directly from the MSLC and not by any other means or subscriptions. RFR Cancellation - The MSLC reserves the right to cancel this bid at any time before a contract has been executed and approved, in which event the MSLC will reject any and all bids received in response to this RFR. Should the bid be canceled, all expenses related to preparation of response to this RFR remain the responsibility of the Bidder/Vendor. Subcontracting Policies - Prior approval of the MSLC is required for any subcontracted service of the contract. Vendors are responsible for the satisfactory performance and adequate oversight of its subcontractors. Supplier Diversity Program (SDP) Plan - Massachusetts Executive Order 524 established a policy to promote the award of state contracts in a manner that develops and strengthens Minority and Women Business Enterprises (M/WBEs) that resulted in the Supplier Diversity Program in Public Contracting. M/WBEs are strongly encouraged to submit responses to this RFR, either as prime Vendors, joint venture partners or other type of business partnerships. Similarly, Executive Order 546 established the Service-Disabled Veteran-Owned Business Enterprise (SDVOBE) Program to encourage the participation of businesses owned and controlled by service-disabled veterans in all areas of state procurement and contracting, thereby including them in the SDP. All Bidders must follow the requirements set forth in the SDP section of the RFR, which will detail the specific requirements relating to the prime Vendor s inclusion of M/WBEs and/or SDVOBEs. Bidders are required to develop creative initiatives to help foster new business relationships with M/WBEs and/or SDVOBEs within the primary industries affected by this RFR. In order to satisfy the compliance of this section and encourage Bidder s participation of SDP objectives, the Supplier Diversity Program (SDP) Plan for large procurements greater than $150,000 will be evaluated at 10% or more of the total evaluation. Once an SDP commitment, expressed as a percentage of contract revenues, is submitted, negotiated and approved, the agency will then monitor the contractor s performance, and use actual expenditures with Supplier Diversity Office (SDO) certified M/WBE contractors and the Center for Veterans Enterprise certified SDVOBEs to fulfill their own SDP expenditure benchmarks. M/WBE and SDVOBE participation must be incorporated into and monitored for all types of procurements regardless of size; however, submission of an SDP Plan is mandated only for large procurements over $150,000. Unless otherwise specified in the RFR, the following SDP forms are required to be submitted by the deadlines noted below in order to meet the mandatory participation requirements of the SDP: SDP Plan Form #/Name Submitted By When Submitted SDP Plan Form #1 SDP Plan Commitment All Bidders With Bid Response SDP Plan Form #2 Declaration of SDP Partners Newly Awarded Contractors Within 30 days of contract execution SDP Plan Form #3 SDP Spending Report Contractors Within 45 days of the end of each quarter Supplier Diversity Program (SDP) Resources: RFR LOT #1501 Page 9 of 262

10 Resources available to assist Prime Bidders in finding potential Minority Business Enterprises (MBE) and Women Business Enterprises (WBE) partners can be found on the Supplier Diversity Program Webpage ( Resources available to assist Prime Bidders in finding potential Service-Disabled Veteran-Owned Business Enterprise (SDVOBE) partners can be found on the Supplier Diversity Office Webpage ( The Supplier Diversity Program offers training on the SDP Plan requirements. The dates of upcoming trainings can be found on the OSD Training & Outreach Webpage. In addition, the SDP Webinar can be located on the Supplier Diversity Program Webpage ( Supplier Diversity Program Subcontracting Policies: Prior approval of the agency is required for any subcontracted service of the contract. Agencies may define required deliverables including, but not limited to, documentation necessary to verify subcontractor commitments and expenditures with Minority- or Women-Owned Business Enterprises (M/WBEs) and/or Service Disabled Veteran Owned Business Enterprises (SDV)Bes) for the purpose of monitoring and enforcing compliance of subcontracting commitments made in a bidder s Supplier Diversity Program (SDP) Plan. Contractors are responsible for the satisfactory performance and adequate oversight of their subcontractors. Taxes, Fees, Assessments, Etc. - Vendors must pay all taxes, fees and assessments associated with furnishing the products as part of the contract. Trademarks, Patents, Etc. - Unless otherwise clearly stated in this RFR, any reference to a particular trademark, trade name, patent, design, type, specification, producer or supplier is not intended to restrict this RFR to any manufacturer or proprietor or to constitute an endorsement of any good or service, and the MSLC may consider clearly identified offers of substantially equivalent goods and services submitted in response to such reference. Vendor - In the context of this RFR, Vendor refers to either an existing supplier under contract with the MSLC or to an awarded Bidder who has executed a contract with the MSLC. RFR LOT #1501 Page 10 of 262

11 Section I - Purpose of Procurement Purpose The Massachusetts State Lottery Commission (MSLC) intends to acquire technical, business and cost responses for a lottery host system, terminal application, and multi-media solution as well as components to support business intelligence, helpdesk and asset tracking and field services activities. The MSLC is also seeking Vendor support to migrate from the existing lottery host and terminals, although the purchase of new terminal hardware will be managed through a separate procurement process. The Lottery Host Procurement Management Team (PMT), acting on behalf of the MSLC, also referred to as the Lottery will manage the RFR process and evaluate the responses to identify a suitable Vendor with an existing lottery system and sufficient implementation experience that will achieve the MSLC s objectives and ensure that it offers the best value for the Commonwealth. Background to RFR The current on-line gaming system, owned and operated by the MSLC, is approximately 18 years old. The MSLC is therefore seeking to replace its on-line gaming system and to introduce a multimedia solution via competitive bidding processes. For purposes of this RFR, On-line gaming system refers to lottery terminals connected to a lottery computer system via a lottery controlled network. The term internet refers to access via public networks. The MSLC first publicized its intent to upgrade the Existing Lottery Terminals and lottery host in November 2011 when it released an RFR for Consultancy Services for Development of Request for Responses for New On-Line Gaming System (RFR LOT #1204). This was followed up by a Notice of Intent NOI LOT #1302 released on January 23, Since then the MSLC has been working with the selected consultants to help design a new technology architecture, supplied by possibly multiple Vendors, to enable the MSLC to respond to technology and consumer trends with optimal flexibility, and to be prepared for potential opportunities such as the internet and mobile products and play. In order to validate the technology architecture and to provide inputs to this RFR, a Request For Information, RFI (LOT#1302) was issued in February Based on the work on the technology architecture and the RFI, the MSLC can now commence a procurement process to select a new lottery host, a terminal application, a multi-media solution and other back office systems. A separate procurement is being managed by the MSLC, and will follow this RFR, for replacement terminal hardware, Agent Hardware Master RFR LOT#1504. RFR LOT #1501 Page 11 of 262

12 Background to MSLC Recognized as one of the most successful lotteries in the world, the Massachusetts State Lottery has grossed over $100.1 billion in sales, awarded $69.2 billion in prizes and returned more than $22.6 billion in net profit to the Commonwealth since selling its first game ticket in March The Massachusetts Lottery has grown to become a leader in lottery gaming innovation and sales in the United States. The MSLC offers four in-state draw games The Numbers Game, Megabucks Doubler, the Raffle Game, and Mass Cash, two multi-state jackpot games Mega Millions and Powerball, and one regional draw game Lucky for Life. The MSLC also manages the industry s most robust Instant Ticket portfolio featuring new game releases annually. The Lottery successfully launched a Keno monitor based game in September 1993 and more recently launched the Jackpot Poker Game in June Overall sales of monitor based games now exceed $814M annually. In Fiscal Year 2014 alone, the Lottery had total sales of $4.8 billion, awarded nearly $3.5 billion in prizes, and returned $974 million in net profit to the state, the majority of which flowed back to 351 cities and towns in unrestricted local aid. Playing a key role in the continued success of the Lottery is its statewide network of more than 7,400 Agents. These Agents serve as the Lottery s direct interface with the playing public, varying from chain stores to supermarkets, gas stations, and convenience stores. Since 1972, Agents have collectively earned $5.7 billion by selling Lottery games at their stores, with the average Agent earning approximately $37,000 annually in commission and bonuses. MSLC Business Overview General information about the MSLC, including its On-line games (i.e., games played via the Lottery s controlled network and not over the internet), instant games, services and history can be found on the Lottery s website at To download the Lottery s Information Package, go to As supplementary information to the website a number of key metrics are outlined in Table 1. Key Business Metrics. RFR LOT #1501 Page 12 of 262

13 Table 1. Key Business Metrics 2014 Sales: On-line Games In State $418M On-line Games - Multi State $228M Other Games (Monitor Games and Pull Tabs) $814M Instant Tickets $3.38B VIP Club Membership 226,347 Value of Season Ticket Purchases $3.3M Agent Profile: Convenience-Store 34% Gas Station 16% Grocer 7% Bar/Restaurant 21% Drug Store 3% Liquor Store 15% Other 4% Approximate number of agents 7,400 Agents with Keno/Jackpot Poker monitors 2,600 Terminal Devices: Standard Terminals 8,092 Player Activated Terminals 525 Instant Ticket Vending Machines 1,345 Ticket Checkers 2,361 MSLC System Architecture Overview The MSLC IT team maintains all of the Lottery s core systems and has customized them over time in order to meet requirements and business processes. The existing systems are stable, secure, and functional but are in need of further investment to support the future business strategies. As additional reference material for Bidders, Appendix A contains a diagram of the current MSLC logical systems architecture and notes to describe the key systems, their main functions, and primary interfaces. It should be noted that Appendix A has been extracted from RFI LOT #1302 and may therefore be slightly out of date. Any reference to existing processes, systems and operations may have been superseded by more up to date content contained within Section VII A Performance Requirements. RFR LOT #1501 Page 13 of 262

14 Scope of RFR The following software and hardware components form the scope of this RFR: Lottery terminal software for all formats of Agent terminals. Software for basic and advanced ticket checking devices. Software to manage the Agent terminal network and terminal software. Gaming system functionality to operate all aspects of the MSLC s existing and planned Online and Instant Ticket games. A promotions package. An internet website for general MSLC information. Internet website functionality for the MSLC s VIP Club, Season Ticket and Promotion support. Internet player administration functionality. Software support for the display of monitor game results on display screens at Agent locations. A multi-media solution to support the display of media content on display screens at Agent locations. Media players to support the display of multi-media content. Agent Licensing, Helpdesk, Field Services and Inventory and Asset Tracking software. A data warehouse and business intelligence solution. An internet based Agent portal. Integration to other MSLC and third-party systems. Infrastructure and hardware for the development, production, test and training environments required to support the new software components in this RFR. (However, MSLC reserves the right to purchase from third parties any hardware and software recommended by Bidder.) The following services are also in scope for this RFR: The software and project support required to convert existing gaming systems to those delivered as part of this RFR. Software and project support to migrate existing data to the system delivered as part of this RFR. Project Management and system integration responsibilities for all aspects of the system conversion. Integrating the lottery terminal software on the new agent terminal hardware by working collaboratively with other MSLC Vendors to obtain the cooperation and consent required for such integration, such cooperation and consent not to be unreasonably withheld as determined by the Lottery, in its sole discretion. RFR LOT #1501 Page 14 of 262

15 Software and project support to ensure that the existing player activated terminals continue to operate. Collaboration with third-parties and other Vendors where required. Requirements analysis and specification for the MSLC s software requirements. Technical and architectural design analysis and specification for the implementation of the systems delivered by this RFR. Technical, administrative and end user documentation for the systems delivered. Test and defect management. On-going support after the implementation of systems. Optionally, an extended period of support for specific components of the systems delivered. Training and skills transfer to the MSLC s teams to enable them to operate, support, maintain, enhance and test new hardware and software components. Agent training on the use of terminal software. Asset data for all assets delivered as part of this RFR. Perpetual software licenses to provide the MSLC with the ability to operate, maintain and develop the terminal software, gaming system and other software components. The following items are not in scope of this RFR: Agent terminal hardware and associated operating system, drivers, and Application Programming Interface. Ticket checkers and other hardware in Agent locations. Monitors for the display of multi-media content. Agent communications network. Jackpot signage. Instant Ticket Vending Machines. The description of the scope of this RFR, set forth above, is intended to provide a general overview for the Bidders and may not include or represent all of the requirements of this procurement and its resulting contract. Full details of requirements and specifications relevant to this RFR are defined in Section VII Performance and Contract Specifications. Related Solicitations The following solicitations are either being processed as separate, yet dependent RFRs and competitive bidding processes, or are being considered by the MSLC for issue in the future. They are being listed below in the spirit of transparency and providing guidance to potential Bidders for this RFR. RFR LOT #1501 Page 15 of 262

16 Agent Hardware Master Agreement RFR for terminal hardware components and peripherals RFR LOT#1504. Jackpot Signs for agents. RFR LOT#1304 (Awarded). Upgrade of the existing Agent communications network to replace the current frame relay solution. A Request For Response is currently in progress. Porting of existing software elements from the IBM Mainframe to a more modern platform. Note that this work is not expected to progress until after the main upgrade and transition work is completed. RFR LOT #1501 Page 16 of 262

17 Section II - Acquisition Method The acquisition method(s) to acquire goods and/or services from this RFR are outright purchase, lease to own, fee for service and license. For instructions regarding the preparation of a Cost Table, please see the applicable section and strictly adhere to the instructions and do not provide any cost information in the main body of your proposal. Section III - Single or Multiple Contractor Contract The MSLC reserves the right to award multiple contracts as a result of this procurement. Section IV - Single or Multiple Users It is the intent of this contract that the MSLC is the only user. Section V - Anticipated Duration of Contract Any contract resulting from this RFR shall be for the period of five years commencing on the resulting contract start date. The MSLC shall have the option to extend the term of any Contract(s) resulting from this RFR for up to two, one year periods. The MSLC shall exercise its option by submitting written notice to the vendor at least thirty (30) days prior to the termination. Section VI - Anticipated Expenditures The expenditure associated with this procurement is to be determined. The MSLC makes no guarantee that any commodities or services will be purchased from any contract resulting from this RFR. Any estimates or past procurement volumes referenced in this RFR are included only for the convenience of Bidders, and are not to be relied upon as any indication of future purchase levels. If, due to unforeseen circumstances, the scope of services is substantially changed or modified, the MSLC maintains the right to amend the contract and increase the maximum obligation in order to obtain the best value. The Vendor will be bound by the terms of the contract and the MSLC will not be responsible for price increases due to market fluctuations or product availability. RFR LOT #1501 Page 17 of 262

18 Section VII - Performance and Contract Specifications A. Performance Requirements 1 Introduction Section VII Part A contains details of the MSLC s requirements and expectations for the responses required from Bidders. This introductory section provides an overview of the MSLC s strategic objectives, defines the MSLC s intended system architecture, and concludes with guidance notes and a table of terms. The remainder of Section VII Part A is structured as follows: Section Description 2 Lottery System The requirements for the applications and functionality required to support the MSLC s business objectives. It covers On-line games, Instant Tickets and the retail and internet channels. 3 Agent management and field services 4 Business intelligence and Agent portal 5 Agent terminals and multi-media Defines the MSLC s requirements for managing its relationships with Agents and running its Field Services operation. This section describes requirements for a corporate wide business intelligence solution and an internet based Agent reporting and Lottery information portal. Describes requirements for Agent and player facing components at Agent locations. The scope of this section includes the Agent terminal functionality, multi-media, and ticket checkers. 6 Architecture This section defines the software and hardware requirements for the components required to host and manage the Technology Solution. Requirements also cover the security and operational aspects of the Technology Solution. 7 Technology Solution implementation Contains requirements for the System Conversion, including training for MSLC staff and Agents, and general business requirements, e.g., delivery and packaging. RFR LOT #1501 Page 18 of 262

19 1.1 Overview of strategic objectives The MSLC s overall mission has always been to maximize revenues returned to the Commonwealth, the majority of which is provided to Massachusetts cities and towns in the form of direct local aid. No effort to increase sales, however, will be tolerated at the expense of the Lottery s integrity or the well-being of the Lottery s customers. In FY14, the Lottery returned a total of $974M in net profit to the Commonwealth and remains the single largest source of unrestricted local aid for the Commonwealth s 351 cities and towns. These funds have a meaningful and measurable impact on improving the quality of life for residents across the state. The MSLC recognizes its obligations and responsibilities to staff, citizens, and players as well as its commitment to protecting the interests of its local partners, most notably its 7,400 loyal Agents throughout the Commonwealth Business strategic objectives i. On-going innovation and launch of new On-line and Instant games. ii. Retention of the existing customer segments while more actively targeting games and services at newer players. iii. Modernize the Agent and player facing elements of the Lottery through the rollout of state of the art terminals. iv. More active engagement of players in Agent locations through the use of multimedia screens. v. Evolution of the VIP Club and other player loyalty based programs. vi. Subject to authorization by legislation, responding to the opportunities presented from internet based gaming. vii. Ability to offer cross-channel promotions that attract and retain players and provide a fulfilling player experience, e.g., buy game X and get game Y free. viii. Improve communications and tools available to the Agent base, e.g., internet based self-service Agent portal for invoices, news items and reconciliation tools. ix. Support Agents with more efficient ways of servicing their customers through improvements in the terminal user interface and increased use of self-service terminals and ticket checkers. x. Pursue opportunities to expand the Agent base through developing relationships with chains and by identifying new locations that would maximize incremental sales. xi. Ability to respond to the evolving landscape in retail and Agent locations by having flexibility in the solutions available for Agent locations, i.e., not a one size fits all solution Technology strategic objectives i. To continue to support and maintain the operational, security, performance and data integrity aspects of all of the systems and games. RFR LOT #1501 Page 19 of 262

20 ii. To retain the in-house ability to maintain and enhance all software, games, and services. iii. To have contractual and technical flexibility in the hardware and software configuration options available for its Agent terminals and their integration to its Lottery host. iv. To permit the use of terminal hardware from multiple Vendors. v. To retain the ability to independently maintain and repair Agent based hardware. vi. Keep its platforms as open as possible to allow the freedom to integrate to other systems, e.g., Commonwealth financial reporting system (MMARS), Agent pointof-sale devices and, subject to legislative changes, a potential integration with an internet channel. vii. Consolidate existing platforms, systems and operating systems in order to ease maintenance effort and provide the scope for Lottery staff to be able to adopt and support new technologies. viii. To migrate to a more consistent, flexible, scalable and sustainable enterprise technology architecture. ix. Upgrade the retail Agent networks to take advantage of improvements in data communications and networking technology. 1.2 Overview of future system architecture Figure 1, located at the end of this section, presents the target technical architecture beyond the System Conversion. It should be noted that the diagram presents an aspirational view and the eventual shape of the technical architecture may deviate as a result of Bidder recommendations or further MSLC strategic planning activities. While Figure 1 Future system architecture provides a general overview of the entire system architecture, the following bullets highlight the points relevant to this RFR: Instant Ticket Processing It is intended to retain Instant Ticket processing outside of the Technology Solution although key transactional information such as Instant Ticket cashing and pack activations will still require integration with the Technology Solution. IBM Platform As well as the Instant Ticket Processing function, a number of components are expected to remain within the IBM Platform. Examples include but are not limited to, the following functions: i. Warehouse management. ii. Financial accounting. iii. ICS. RFR LOT #1501 Page 20 of 262