SERVICES CONTRACT
ITEM:
1-S
Agency Contact: Robert Howells 410-230-8789
[email protected]
DEPARTMENT/PROGRAM:
Maryland State Lottery and Gaming Control Agency (MLGCA) Lottery Division
CONTRACT ID:
Veterans’ Organization (VO) Instant Ticket Lottery Machines (ITLMs) and Related Services ADPICS # E75B4400028
CONTRACT DESCRIPTION: Contract to provide Veterans’ Organization (VO) Instant Ticket Lottery Machines (ITLMs) and Related Services, to include: the design, development, installation, implementation, operation and maintenance of a central monitor and control system (ITLM Central System); ITLM design, development, installation, implementation, support, supplies and maintenance at VOs specified in the Lottery Law; instant ticket design, planning, production, security and storage in the contractor’s warehouse; and delivery of instant tickets to the VOs. AWARD:
Diamond Game Enterprises Chatsworth, CA
TERM:
3/1/2014 – 2/28/2019 (w/1 five-year renewal option)
AMOUNT:
$ 57,000,000 Est. (5 Years; Base Contract) $ 60,000,000 Est. (5 Years; Renewal Option) $117,000,000 Est. (10 Years)
PROCUREMENT METHOD:
Competitive Sealed Proposals
PROPOSALS:
Only One Proposal Received
MBE PARTICIPATION:
17.53% (See Requesting Agency Remarks below)
PERFORMANCE SECURITY:
Performance Bond $500,000 Fidelity Bond $250,000
INCUMBENT:
None
REQUESTING AGENCY REMARKS: A notice of the Request for Proposals (RFP) was advertised on eMaryland Marketplace. The RFP was sent to nine potential offerors, of which
three are Maryland firms and one is a MBE. A copy of the RFP was also sent to the Governor’s Office of Minority Affairs. One proposal was received in response to the RFP. It was determined that the offeror is responsible and that its proposal was reasonably susceptible of being selected for award. It was also determined that the financial proposal is fair and reasonable and within the anticipated price range based on the Lottery’s market research. It was also determined that other potential offerors had a reasonable opportunity to respond to the solicitation. Therefore, award is recommended to Diamond Game Enterprises (Diamond), the sole offeror. This is a new project for the State. During the 2012 second special session of the General Assembly, Senate Bill 1 was enacted relating to the legalization of ITLMs in the State. Senate Bill 1 authorizes the Director of the MLGCA to issue to certain VOs a license to operate not more than five ITLMs. VOs that are issued a license shall locate and operate the ITLMs at its principal meeting hall in the county in which the VO is located. During the 2013 session of the General Assembly, House Bill 646 was enacted relating to ITLMs at VOs which provided additional clarification to the requirements in Senate Bill 1. Prior to issuance of the RFP the MLGCA’s market research indicated that there were very few companies in the highly specialized business of providing ITLMs to lotteries in North America and that could potentially supply the type of ITLM and central system required by Maryland. Diamond has several years of experience providing similar ITLMs and central systems to a number of US and Canadian lotteries, as well as to fraternal clubs and commercial bingo halls in Anne Arundel County, Maryland. This Firm Fixed Unit Price-Indefinite Quantity Contract establishes firm-fixed percentage of ITLMs proceeds that will be paid to the contractor. The Award Amount shown above is estimated based upon the projected number of ITLMs placed at VOs and the projected win for those ITLMs. The actual amounts paid to the contractor may be less than the estimated Award Amount. Payments will be made only for the actual proceeds generated by the ITLMs. A 10% MBE participation goal was established for this contract to subcontract the services for machine service, preventive maintenance and spare parts; however, the recommended awardee has committed to a 17.53% MBE participation goal. FUND SOURCE:
100% Special (ITLM Proceeds)
APPROP. CODE:
E75D0001
RESIDENT BUSINESS:
No
MD TAX CLEARANCE:
14-0099-0001
Board of Public Works Action – This Item was: APPROVED
DISAPPROVED
WITH DISCUSSION
DEFERRED
WITHDRAWN
WITHOUT DISCUSSION
