RFP RD160631 Lottery Internal Control System and Services



DEPARTMENT OF REVENUELOTTERY INTERNAL CONTROL SYSTEM AND SERVICESRFP # RD160631Issued: May 20, 2016Responses Due: 2:00:00 p.m. CT, June 21, 2016TABLE OF CONTENTS1.0GENERAL INFORMATION1.1Introduction and background1.2Scope of the project1.3Procuring and contracting agency1.4Clarification and/or revisions to the specifications and requirements1.5Reasonable accommodations1.6Calendar of events1.7Contract term and funding1.8VendorNet registration2.0PREPARING AND SUBMITTING A PROPOSAL2.1General instructions2.2Incurring costs2.3Submitting the proposal2.4Proposal organization and format2.5Multiple proposals2.6Oral presentations and site visits2.7Withdrawal of proposals2.8Late responses2.9Demonstrations3.0PROPOSAL SELECTION AND AWARD PROCESS3.1Preliminary evaluation3.2Proposal scoring3.3Evaluation criteria3.4Method to score costs3.5Award and final offers 3.6Right to reject proposals and negotiate contract terms 3.7Notification of Intent to Award3.8Appeals process4.0GENERAL PROPOSAL REQUIREMENTS4.1Proposer mandatory requirements4.2Proposer financial viability4.3Proposer integrity and responsibility4.4Organization capabilities/experience4.5Staff qualifications4.6Proposer references5.0TECHNICAL REQUIREMENTS5.1System Configuration5.2Hardware5.3Software5.4Networking5.5Performance5.6Reporting5.7Security5.8Support and Maintenance5.9Implementation and Conversion5.10Training5.11Continuation of Operations6.0COST PROPOSAL6.1General instructions on preparing cost proposals6.2Fixed price period7.0SPECIAL CONTRACT TERMS AND CONDITIONS7.1Additional services7.2Background investigations7.3Changes in ownership/financial condition7.4Required insurance coverage7.5Confidentiality of Information7.6Conflict of interest7.7Contract Amendments7.8Debarment7.9Order of precedence7.10Governing law and venue7.11Liquidated damages7.12Minority subcontracting7.13News releases7.14Prime contractor7.15Record keeping7.16Security clearance at Contractor's expense7.17Staffing information and approval7.18Termination of Contract7.19Termination of Partner, Member, Officer, Director or Owner7.20Ticket purchase7.21Wisconsin office requirement7.22Wisconsin sales and use tax registration8.0STANDARD TERMS AND CONDITIONSStandard Terms and Conditions (Requests for Bids/Proposals) (DOA-3054)Supplemental Standard Terms and Conditions for Procurements for Services (DOA-3681)9.0REQUIRED FORMSRequest for Proposal (DOA-3261), Completed and SignedDesignation of Confidential and Proprietary Information (DOA-3027)Vendor Information (DOA-3477)Vendor Reference (DOA-3478)Cost Proposal (Attachment A)Response to Qualifications and Mandatory Requirements (Attachment B)Key Personnel Qualifications Form (Attachment C)DefinitionsThe following definitions are used throughout the RFP:TERMDEFINITIONAcceptance TestingAn extensive verification process to demonstrate and ensure that the System conforms to all Requirements.Agency/DepartmentWisconsin Department of Revenue.AdministratorThe Wisconsin Lottery Deputy Division Administrator or Designee.CAPSConsolidated Agency Purchasing Services.CATCustomer Acceptance Testing.Calendar DayA period of twenty-four hours starting at midnight.ChecksumFormally, a digit representing the sum of the correct digits in a piece of stored or transmitted digital data, against which later comparisons can be made to detect errors in the data. In this document, "Checksum" refers to a string of characters (sometimes called a "hash") generated by applying a standard algorithm (e.g. MD5) to a computer file, serving as a 'fingerprint' to verify that the file has not changed, or that a copy of the file is truly identical to the original.ConversionImplementation activity during which the existing ICS used by the Wisconsin Lottery is replaced.ContractThe written agreement resulting from the successful Proposer and subsequent negotiations that shall incorporate, among other things, this RFP and the successful Proposer's Proposal, and all modifications hereto and thereto, and in addition shall contain such other terms and conditions as may be required by the Lottery.ContractorProposer that is awarded the Contract.Critical PeriodThe period of time beginning one hour before each scheduled Powerball and Mega Millions draw until one hour after the draw.DOADepartment of Administration.DORDepartment of Revenue.Draw BreakThe set period of time during which a Gaming System prevents creation of new wagers for a game. Each game has its own independently defined Draw Break.Gaming SystemThe entire infrastructure, including all computer hardware, software, terminals, networks, and equipment, supplies, and services, used to operate the Lotto games and Instant Games of the Lottery. ICSInternal Control System.ICS-AInternal Control System at Lottery Headquarters.ICS-BInternal Control System at the Lottery Secondary draw site location.ICS OperatorA Lottery staff person authorized to perform production tasks on the ICS system.ImplementationThe set of activities, including but not limited to planning, delivery, installation, configuration, testing, and cutover, whose goal and end is placement of the new system into production.Instant GamesScratch or pull-tab tickets that are not generated through a terminal. Intent to Awarda writing issued by the Procuring Agency notifying all Proposers of the Procuring Agency’s intent to award a Services Contract to the successful Proposal. Key Employee or Key StaffContractor Employees who shall be responsible and accountable to the Contractor for full and complete performance of a Contract resulting from this RFP. Lottery (or Wisconsin Lottery)The Lottery Division of the Department of Revenue of the State of Wisconsin.Lottery HeadquartersLocated at 2135 Rimrock Road, Madison, WI 53713.LottoWhen referring to games or tickets, tickets that are generated through the terminal.Major Procurement (Relates to background checks) As defined in sec. 565.01 (4),Wis. Stats., a procurement for materials, supplies, equipment or services which are unique to the Lottery and not common to the ordinary operations of State agencies, including security services, prize payout agreements or annuity contracts and materials, supplies, equipment or services involving marketing, the printing of lottery tickets or lottery shares, the receiving or recording of a player’s selection in any lottery game and the determination of winners of a lottery game.MUSLMulti-State Lottery Association. An organization of which the Lottery is currently a member. Principle of Least PrivilegeThe practice of limiting access to the minimal level that will allow normal functioning. Applied to employees, the Principle of Least Privilege translates to giving people the lowest level of user rights that they can have and still do their jobs.Promotional TransactionLimited time special offers supported by the Gaming System which include, but are not limited to: free plays, cross promotions, multiple drawings per Day of the same game; bonus drawings; bonus winner payoffs; sampler tickets; Retailer clerk incentives; external coupons, and Gaming System generated coupons.ProposalThe Proposer's response to this Request for Proposal (RFP). ProposerAny agency, firm, organization, corporation, association, joint venture, or partnership submitting a Proposal in response to this Request for Proposal (RFP). QAQuality Assurance.Real Time/Near Real TimeLittle or no noticeable delay between the original transaction and its processing by the ICS.RetailerA business contracted with the Lottery to sell, validate, and when appropriate pay prizes on Instant and Lotto tickets. RFPRequest for Proposal. This document together with all its attachments and amendments.RFP Procurement ManagerThe person responsible for managing the procurement process is Susanne Matschull, Procurement Specialist.StateState of Wisconsin.Test ICSIdentical in hardware, software, and configuration to the production ICS-A and ICS-B, to be used for Lottery Quality Assurance (QA) activities.Transactions Events typically involving exchange of value or communication of information and mediated or facilitated or recorded by the Gaming System including but not limited to wagers, instant ticket sales, scans of tickets, voids, payments, account adjustments, money transfers.VendornetState of Wisconsin’s online procurement system, which enables vendors and municipalities to electronically access a variety of purchasing related services (see RFP Section 1.9).1.0GENERAL INFORMATION1.1Introduction and backgroundThe purpose of this document is to provide interested parties with information to enable them to prepare and submit a Proposal for an Internal Control System (ICS) and ongoing support and maintenance services for the Wisconsin Lottery. The State of Wisconsin as represented by the Department of Administration (DOA), Consolidated Agency Purchasing Services (CAPS), on behalf of the Department of Revenue (DOR), Lottery Division intends to use the results of this solicitation to award a Contract for the purchase of an Internal Control System and ongoing support services.The mission of the Wisconsin Lottery is to provide Wisconsin homeowners with property tax credits by offering entertaining games in a socially responsible manner, while ensuring security, integrity, and public trust. A robust Gaming System is installed and operated to sell and validate winning Lotto and Instant Tickets through approximately 4,000 Retailers throughout the state. An ICS is used to audit and verify all Transactions, such as ticket sales and validations, made through the Lottery Gaming System to ensure accuracy and integrity. Currently, ICS services for the Lottery's Gaming System are provided by a third party subcontractor. Industry technology and best practices have evolved and now support the Lottery entering into a contract directly with an ICS provider for this service. The Lottery has awarded a contract to IGT Global Solutions Corporation for a new Gaming System, anticipated to be operational in May of 2017. The implementation of the ICS resulting from this RFP is intended to coincide with the implementation of the new Gaming System. While the Lottery will independently select and Contract with the ICS provider, cooperation between IGT Global Solutions Corporation and the ICS Contractor is critical.1.2Scope of the project1.2.1Project descriptionThe Contractor shall provide an Internal Control System and related support services to monitor and audit Transactions of the Lottery Gaming System. This includes but is not limited to:Development and implementation of an ICS system comprised of three identical and independent sub-systems (ICS-A, ICS-B, and Test ICS)System shall be configured to meet the immediate needs of the Lottery and flexible to adapt to suit the business needs and rules of the LotteryProvision of all hardware and software Maintenance, upgrades, and updates of ICS softwareTechnical and programming supportOngoing training and general system support1.2.2ObjectivesThe Department of Revenue seeks to obtain a Contract with a Proposer who can provide an ICS and related services to monitor, log, verify, and balance all Lottery Transactions in real, or near-real time, to support the Lottery’s mission of achieving the highest possible revenue for property tax credits by offering games in a socially responsible manner, while ensuring security, integrity, and public trust.Implementation of the new Gaming System is underway and it will go to production on or about May 14, 2017, with parallel processing commencing on or about April 20, 2017. The ICS must be developed and delivered to Lottery for testing no later than October 1, 2016. 1.2.3Current operationsCurrently, the Gaming System contractor sub-contracts with a third party, Elsym, for the ICS and services. This consists of three (3) identical computer systems including hardware, software, printers, maintenance, and upgrades which are installed at two (2) different locations. The ICS processes on-going transaction files in batches, in near real-time which are pulled from the Gaming System; and then balanced with the Gaming System computer. 1.3Procuring and contracting agencyThis Request for Proposal (RFP) is issued by the Wisconsin Department of Administration (DOA) through its Consolidated Agency Purchasing Services (CAPS), on behalf of the Department of Revenue (DOR), Lottery Division. The person responsible for managing the procurement process is Susanne Matschull, Procurement Specialist. The Contract resulting from this RFP will be administered by the Wisconsin Department of Revenue, Lottery Division. The Contract Administrator will be the Deputy Administrator of the Lottery, or her designee. 1.4Clarification and/or revisions to the specifications and requirementsAny questions concerning this RFP must be submitted via e-mail to Susanne Matschull, Susanne.Matschull@, on or before May 31, 2016. Proposers are expected to raise any questions, exceptions, or additions they have concerning the RFP document at this point in the RFP process. If a Proposer discovers any significant ambiguity, error, conflict, discrepancy, omission, or other deficiency in this RFP, the Proposer should immediately notify the above named individual of such error and request modification or clarification of the RFP.In the event that it becomes necessary to provide additional clarifying data or information, or to revise any part of this RFP, supplements or revisions will be posted on VendorNet ().Any contact with State employees concerning this RFP is prohibited, except as authorized by the RFP manager during the period from date of release of the RFP until the Notice of Intent to Award is released.1.5Reasonable accommodationsThe Department will provide reasonable accommodations, including the provision of informational material in an alternative format, for individuals with disabilities upon request. If the Proposer needs accommodations at a proposal opening, contact Susanne Matschull at Susanne.matschull@.1.6Calendar of eventsListed below are specific and estimated dates and times of actions related to this Request for Proposal (RFP). The actions with specific dates must be completed as indicated unless otherwise changed by the State. In the event that the State finds it necessary to change any of the specific dates and times in the calendar of events listed below, it will do so by issuing an amendment to this RFP. There may or may not be a formal notification issued for changes in the estimated dates and times.DATEEVENTMay 18, 2016Date of issue of the RFP.May 31, 2016Last day for submitting written inquires.June 7, 2016 (est.)Post questions and answers and/or amendments to the RFP June 21, 2016, at 2:00 Central TimeProposals due 1.7Contract term and fundingThe Contract shall be effective on the Contract execution date. The ICS shall be installed and fully functional by the Operational Start Date of the Gaming System, estimated for May 14, 2017. The ongoing ICS support agreement shall be coterminous to the Gaming System contract, seven (7) years from the Operational Start Date, with an option by mutual agreement of the Agency and contractor, to renew for three (3) additional oneyear periods. As required by Wisconsin Statutes, continuance of a contract beyond the limits of funds available shall be contingent upon appropriation of the necessary funds, and the termination of the contract by lack of appropriations shall be without penalty.1.8VendorNet registrationOnly Proposers registered with the State of Wisconsin’s VendorNet will receive automatic future official notice for bid opportunities for this service/commodity. The State of Wisconsin’s purchasing information and vendor notification service is available to all businesses and organizations that want to sell to the state. Anyone may access VendorNet on the Internet at to get information on state purchasing practices and policies, goods and services that the state buys, and tips on selling to the state. 2.0PREPARING AND SUBMITTING A PROPOSAL2.1General instructionsThe evaluation and selection of a Contractor and the Contract will be based on the information submitted in the Proposal plus references and any required onsite visits or oral interviews. Failure to respond to each of the requirements in the RFP will be the basis for rejecting a response.Elaborate Proposals (e.g., expensive artwork), beyond that sufficient to present a complete and effective Proposal, are not necessary or desired.2.2Incurring costsThe State of Wisconsin is not liable for any cost incurred by Proposers in replying to this RFP.2.3Submitting the proposalProposers must submit one (1) original plus three (3) copies and one (1) electronic version either on CD or USB flash drive of all materials required for acceptance of their Proposal by June 21, 2016 at 2:00 CT to:Postal AddressCommon Carrier AddressSusanne Matschull RFP #RD160631Susanne Matschull/ RFP #RD160631Department of AdministrationDepartment of Administration PO Box 7867101 E. Wilson Street, 6th FloorMadison WI 53707-7867Madison WI 53703Proposals must be received in the above office by the specified time stated above. All Proposals must be time-stamped as accepted by the State Bureau of Procurement by the stated time. Proposals not so stamped will not be accepted. Receipt of a Proposal by the State mail system does not constitute receipt of a Proposal by the State Bureau of Procurement, for purposes of this RFP. To ensure confidentiality of the document, all Proposals must be packaged, sealed and show the following information on the outside of the package:Proposer's name and addressRequest for Proposal title – Lottery Internal Control SystemRequest for Proposal number – RFP RD160631Proposal due date – June 21, 2016 Central TimeOne (1) original plus one (1) copy of the Cost Proposal must be sealed and submitted as a separate part of the proposal. The outside of the envelope must be clearly labeled with the words “Cost Proposal, RFP # and name of the Proposer and due date”. The Cost Proposal is due to the addressee on the due date and time noted above. Hand Delivered BidsThe Department of Administration, at 101 E. Wilson St. in Madison, has building security policies and procedures. There is a security checkpoint at the first floor lobby. All visitors will be required to provide current identification and sign in for a visitor’s pass. Security personnel will call the intended procurement specialist prior to the visitor being allowed to proceed to their destination in the DOA building. This means Proposers must have the procurement specialist’s name to allow the security guard to place a call to the procurement specialist. The Proposer must allow ample time to clear security before reaching the Bureau of Procurement office to obtain the required bid time-stamp.The State is not responsible for deliveries that do not reach the Bureau of Procurement office by the required due date and time.2.4Proposal organization and formatProposals shall be typed and submitted on 8.5 by 11 inch paper bound securely. Proposals shall be organized and presented in the order and by the number assigned in the RFP. Proposals shall be organized with the following headings and subheadings. Each heading and subheading shall be separated by tabs or otherwise clearly marked. The RFP sections which shall be submitted or responded to are:Tab 1Cover page – DOA 3261 IntroductionTab 2Response to general requirements (4.1-4.3)Organizational qualifications (4.4)Staff qualifications (4.5)Key Personnel Qualifications Form (Attachment C)References – DOA 3478 (4.6)Tab 3Response to technical requirements (5.1-5.11)Tab 4Required forms Request for Proposal (DOA-3261)Designation of Confidential and Proprietary Information (DOA-3027)Vendor Information(DOA-3477)Response to Qualifications and Mandatory Requirements (Attachment B) Cost Proposal – Attachment A(Separate Sealed Envelope)The Proposer must submit its Cost Proposal on the form provided in Attachment A according to the instructions provided. Failure to provide any requested information in the prescribed format may result in disqualification of the Proposal.No mention of the cost proposal may be made in the response to the technical requirements of this Request for Proposal.2.5Multiple proposalsMultiple Proposals from a Proposer will be permissible; however, each Proposal must conform fully to the requirements for Proposal submission. Each such Proposal must be submitted separately and labeled as Proposal #1, Proposal #2, etc. on each page included in the response. 2.6Oral presentations and site visits Top scoring Proposers based on an evaluation of the written proposal may be required to participate in interviews and/or site visits to support and clarify their proposals, if requested by the State. The State will make every reasonable attempt to schedule each presentation at a time and location that is agreeable to the Proposer. Failure of a Proposer to interview or permit a site visit on the date scheduled may result in rejection of the proposal. 2.7Withdrawal of proposalsProposals shall be irrevocable until Contract award unless the Proposal is withdrawn. Proposers may withdraw a Proposal in writing at any time up to the Proposal closing date and time or upon expiration of five (5) days after the due date and time if received by the RFP manager. To accomplish this, the written request must be signed by an authorized representative of the Proposer and submitted to the RFP manager. If a previously submitted proposal is withdrawn before the proposal due date and time, the Proposer may submit another proposal at any time up to the proposal closing date and time.2.8Late ResponsesAny responses received after the hour specified in Section 2.3 will not be reviewed.2.9DemonstrationsTop-scoring Proposer (s) may be required to install and demonstrate its product(s) and/or service(s) at a State site. Product(s) being demonstrated must be delivered to the State site upon two (2) weeks notice by the State to the Proposer(s) and must be installed and ready for the demonstration within one (1) week of delivery. The State will furnish detailed specifications concerning the demonstration site and the particular test it will use to exercise the Proposer's product(s) and/or service(s). Failure of a Proposer to furnish the product(s) and/or service(s) it has proposed for demonstration within the time constraints of the preceding paragraph may result in rejection of that proposal. Failure of any product(s) and/or service(s) to meet the State's specified requirements during the demonstration may result in rejection of the proposal.The successful demonstration of the Proposer's product(s) and/or service(s) does not constitute acceptance by the State. Any product(s) and/or service(s) furnished by the Proposer for the purposes of this demonstration must be identical in every respect to those which will be furnished if a contract results.3.0PROPOSAL SELECTION AND AWARD PROCESS3.1Preliminary evaluationThe proposals will be reviewed initially to determine if mandatory requirements are met. Failure to meet mandatory requirements will result in rejection of the Proposal. In the event that all Proposers do not meet one or more of the mandatory requirements, the State reserves the right to continue the evaluation of the Proposals and to select the Proposal which most closely meets the requirements specified in this RFP.3.2Proposal scoringProposals shall be reviewed by an evaluation committee and scored against the stated criteria. The committee may review references, request oral interviews/presentations and use the results in scoring the proposals. A Proposer shall not contact any member of an evaluation committee except at the State’s direction. Proposals from certified Minority Business Enterprises and Disabled Veteran-Owned Businesses may have points weighted by a factor of 1.05 to provide up to a five percent (5%) preference to these businesses (Wis. Stats. 16.75(3m)). 3.3Evaluation criteriaThe proposals will be scored using the following criteria:Description PointsPercent1.General Proposal Requirements (Section 4.0)4.1 – Mandatory RequirementsP/F4.2 – Proposer Financial Viability 0 0%4.3 – Proposer Integrity and Responsibility 0 0%4.4 – Organization Capabilities 504.17%4.5 – Staff Qualifications 50 4.17%Technical Requirements (Section 5.0)5.1–System Configuration 45 3.75%5.2-Hardware 45 3.75%5.3-Software37831.50%5.4-Networking 45 3.75%5.5 Performance 0 0%5.6-Reporting 90 7.50%5.7-Security 90 7.50%5.8-Support & Maintenance 45 3.75%5.9-Implementation & Conversion 90 7.50%5.10-Training 45 3.75%5.11-Continuation of Operation 27 2.25%2.Cost 200 16.66%Total: 1200 100%3.4Method to score costsCost is one of the evaluation categories listed above and will be a percentage of the total RFP evaluation. After the final grading of the proposal requirements, cost will be prorated with the lowest cost proposal given the highest score for that category. The formula that will be used is as follows:Lowest Proposal Cost (constant) x Maximum evaluation points given to cost = ScoreOther Proposer’s CostCalculation of points awarded to subsequent proposals will use the lowest dollar proposal amount as a constant numerator and the dollar amount of the firm being scored as the denominator. (This result will always be less than one(1). The result then is multiplied by the number of points given to the cost section of the RFP. 3.5Award and final offersThe State will compile the final scores (technical and cost) for each proposal. The award will be granted in one of two ways. The award may be granted to the highest scoring responsive and responsible Proposer. Alternatively, the highest scoring Proposer or Proposers may be requested to submit best and final offers. If best and final offers are requested by the State and submitted by the Proposer, they will be evaluated against the stated criteria, scored and ranked by the evaluation committee. The award then will be granted to the highest scoring Proposer. However, a Proposer should not expect that the State will request a best and final offer.3.6Right to reject proposals and negotiate contract terms The State reserves the right to reject any and all proposals. The State may negotiate the terms of the contract, including the award amount, with the selected Proposer prior to entering into a Contract. If Contract negotiations cannot be concluded successfully with the highest scoring Proposer, the Agency may negotiate a Contract with the next highest scoring Proposer.3.7Notification of intent to awardAll Proposers who respond to this RFP will be notified in writing of the State's intent to award the contract(s) as a result of this RFP.3.8Appeals processNotices of intent to protest and protests must be made in writing to the head procuring agency. Protestors shall make their protests as specific as possible and shall identify statutes and Wisconsin Administrative Code provisions that are alleged to have been violated.Any written notice of intent to protest the intent to award a contract must be filed with Postal AddressCommon Carrier AddressRichard Chandler, SecretaryRichard Chandler, SecretaryDepartment of RevenueDepartment of Revenue PO Box 89072135 Rimrock RoadMadison WI 53708-8907Madison WI 53708and received in his office no later than five (5) working days after the notices of intent to award are issued.Any written protest must be received within ten (10) working days after the notice of intent to award is issued.In addition, a copy of the protest shall be sent electronically to the purchasing office responsible for the procurement:Postal AddressCommon Carrier AddressSusanne Matschull, Procurement SpecialistSusanne Matschull, Procurement SpecialistDepartment of AdministrationDepartment of Administration PO Box 7867101 E. Wilson St., 6th FloorMadison WI 53707-7867Madison WI 53703The decision of the head of the procuring agency may be appealed to the Secretary of the Department of Administration within five (5) working days of issuance, with a copy of such appeal filed with the procuring agency. The appeal must allege a violation of a Wisconsin statute or a section of the Wisconsin Administrative Code.4.0GENERAL PROPOSAL REQUIREMENTS4.1Proposer mandatory requirements The following requirements are mandatory. Proposers must respond accurately to each question in this section by responding Yes or No on Attachment B and return with your proposal. Proposer’s response shall be reviewed by the evaluation committee to determine if mandatory requirements are met. Should any question in this section be unanswered or checked “No”, Proposer’s proposal shall be rejected and eliminated from further consideration. However, in the event that no Proposer is able to meet an individual mandatory requirement, the State reserves the right to continue the review of Proposals and to select the Proposal that most closely meets the requirements specified in this RFP.4.1.1Pursuant to 2009 Wisconsin Act 136 [§16.705(1r), Wis. Stats.], these services must only be performed within the boundaries of the United States.? The inability to perform services in the United States shall be grounds for disqualifying a Proposal.4.1.2Proposer shall have provided an ICS and related support services to one or more North American lotteries within the last three (3) years. 4.2Proposer financial viability Proposer (and each subcontractor, if any) shall substantiate its financial stability and capability of timely and complete performance of its obligations under the Contract resulting from this RFP. Independently audited financial statements for the last three (3) completed fiscal years, along with additional supporting documentation (Income Statement, Statement of Cash Flows, Balance Sheet, and Statement of Change in Financial Position along with all auditors’ notes) shall be submitted with the Proposal. If the Proposer is a subsidiary, the parent company must be identified and the consolidated audited financial statements of the parent company must be submitted. The State may request reports on financial stability from independent financial rating services to substantiate the Proposer's stability. Proposer name is to be included on each page submitted.If no audit was required, please explain why and submit three (3) years of financial statements certified by two (2) officers of the Board of Directors, and the chief financial officer/financial manager.4.3Proposer Integrity and Responsibility The Proposer shall be in good standing with its customers and the business community. 4.3.1 Disciplinary ActionsProposers shall provide details (including jurisdiction, case number, narrative of facts and circumstances, and disposition) of any disciplinary or other administrative action relating to ICS for lottery or gaming taken by any jurisdiction or person against Proposer or any person required to be listed below or any subcontractor(s) Proposer intends to use. For the sole proprietor of Proposers and subcontractors that are sole-proprietorships.For each partner for Proposers and subcontractors that are partnerships. Where partner is itself a corporation, limited liability company or another partnership, the information required by this section shall be provided for the partners, members, managers, officers, directors and owners of that ownership entity.For each member and each manager for Proposers that are limited liability companies. Where a member or a manager is itself a corporation, limited liability company or partnership, the information required by this section shall be provided for the partners, members, managers, officers, directors and owners of that ownership entity.For Proposers and subcontractors that are corporations, for each officer or director of the corporation and each owner, directly or indirectly, of any equity security of other ownership interest in the corporation. In the case of owners of publicly held securities in a publicly traded corporation, only those persons who are direct or indirect owners of five percent (5%) or more of the publicly held securities. Where an owner of securities in the Proposer or subcontractors is itself a corporation, partnership or limited liability company, then the information required by this section shall be provided for partners, members, managers, officers, directors and owners of that ownership entity.In the event that there is more than one tier of ownership by entities other than individuals, then the foregoing requirements shall apply to all individuals and entities that directly or indirectly own an interest in the Proposer or subcontractor.4.3.2LitigationTo the extent that the information has not been otherwise provided under Section 4.3.1, the Proposer shall list and summarize all litigation, judicial or administrative proceedings, settlements involving its Lottery activities, claims of unlawful employment discrimination and anti-trust suits in which the Proposer has been a party within the last five (5) years. This applies to both pending litigation and investigations, as well as to litigation and investigations that have been concluded. The Proposer shall list any and all criminal convictions in detail including what action Proposer took. List the following information for each instance:Caption or name of case or proceeding;Case or docket number;Jurisdiction involved;Date case or proceeding was commenced;Summary of allegations; Amount of monetary damages sought;Current status;Summary of final outcome, including terms and amount of the agreement or settlement.If the Proposer is a subsidiary, this information shall also be submitted for all parent companies. If the Proposer uses subcontractors, associated companies, or consultants that will be involved in any phase of this project, the Proposer’s responses shall include pertinent subcontractor, associated companies or consultants information.4.4Organization capabilities/experience (50 Points)Proposers shall describe experience and capabilities in providing the services required in this RFP. If a Proposer is using subcontractor(s), the response shall address both the Proposer and each subcontractor individually. The Proposer shall provide such detail by indicating if the Proposer or subcontractor is being referenced. Be specific and identify projects, dates, and results. 4.4.1Proposer shall provide details about the length of time it and its subcontractor(s) have been in the ICS business. 4.4.2Proposer shall describe its experience providing an ICS similar in scope to the requirements in this RFP to one or more North American lotteries.Each experience statement shall include the following details:Name of client lottery or gaming enterprise;If applicable, name of the gaming system contractor;Estimated contract value;The term of the contract including effective dates;Reason for contract termination, if the contract is no longer in effect;Types of services directly provided by the Proposer under the contract and whether the Proposer was a prime contractor or subcontractor.The descriptions shall include client names, titles, addresses and telephone numbers that may be contacted to verify qualifying experience. If the experience is provided by a teaming partner or a subcontractor that will provide a major part of the ICS and services, then experience information for that entity shall be included.4.5Staff qualifications (50 Points)4.5.1 Proposer shall complete the Key Personnel Qualifications (KPQ) Form (Attachment C) and attach a one-page resume describing the educational and work history for each of the Key staff who will perform services related to the design, Conversion, and Implementation of the ICS. Each KPQ Form and resume shall describe the following information for each individual:knowledge of the program arearole in the organizationrelevant education and trainingexperience with Proposer and/or any subcontractors4.5.2Proposer shall complete the Key Personnel Qualifications Form (KPQ) Form (Attachment C) and attach a resume for each of the Key staff who will play an active role to provide ongoing technical support through the life of the Contract. Each KPQ Form and resume shall describe the following information for each individual:knowledge of the program arearole in the organizationrelevant education and trainingexperience with Proposer and/or any subcontractors4.5.3Proposer shall submit an organization chart which illustrates how each Key Staff member fits into the organizational structure. NOTE: The Proposer shall identify subcontractor staff by name, where such are anticipated to be part of the implementation and ongoing technical support efforts.4.6Proposer referencesProposers must include in their RFPs, a list of all (clients/buyers/organizations) with whom the Proposer has done business like that required by this solicitation within the last three (3) years. For each client/buyer/organization, the Proposer must include the name, title, address, and telephone number of a contact person along with a brief description of the project or assignment which was the basis for the business relationship. The evaluation committee will determine which, if any, references to contact to assess the quality of work performed and personnel assigned to the project. The results of any references will be used in scoring the proposal. Ratings of technical capabilities may be adjusted on the basis of the reference checks.5.0TECHNICAL REQUIREMENTSThis section includes Minimum Mandatory Requirements and Scored Requirements. The Minimum Mandatory Requirements shall be met by the Proposer and reviewed on a Pass/Fail basis. Proposers shall use Attachment B-Response to Qualifications and Mandatory Requirements to respond to the Minimum Mandatory Requirements in this section. Failure to meet any mandatory requirement shall result in rejection of the Proposal. However, in the event that no Proposer is able to meet an individual mandatory requirement, the State reserves the right to continue the review of Proposals and to select the Proposal that most closely meets the requirements specified in this RFP.5.1System ConfigurationThe system shall be flexible, able to grow, and tailorable to the business needs and rules of the Wisconsin Lottery. Flexibility and adaptability are critical as the gaming environment can be expected to evolve over the course of the Contract.MINIMUM MANDATORY REQUIREMENTS5.1.1Production ICS: The Contractor shall furnish, install, and maintain the production ICS computer hardware, operating system and application software. The production ICS shall be comprised of two equal systems, one at Lottery Headquarters ("ICS-A") and one at the Lottery secondary draw site ("ICS-B"), operating simultaneously and independently, that will accept and process Transactions in real, or near real-time, from the Lottery's Gaming System. 5.1.2Test ICS: In addition to the production ICS, the Contractor shall furnish, install, and maintain a Test ICS to be used for Lottery Quality Assurance (QA) activities. The Test ICS shall be identical in hardware, software, and configuration to the production ICS and shall be available for use by Lottery, with full support from the Contractor. The Test ICS shall be able to be updated and activated for production in the event of failure of ICS-A or ICS-B.5.1.3The Contractor shall not conduct software development or its own quality assurance activities on any of Lottery's production systems; or on the Test ICS, except for supporting Lottery's Customer Acceptance Testing (CAT) on the Test ICS as directed by the Lottery. Any system internally employed by the Contractor for development shall employ comparable architecture and capacity as Wisconsin's production and Test ICSs, to ensure compatibility upon release for Acceptance Testing.5.1.4Multiple systems in the ICS configuration shall have a time-synchronizing mechanism to ensure consistent time recording and reporting for events and Transactions. 5.1.5An ICS operator shall be able to determine at any time, from ICS-A or ICS-B, that it and the other ICS are processing Transactions in real time. If either ICS-A or ICS-B stops processing Transactions, then that ICS shall automatically "catch up" to real-time processing as soon as it returns to service, restoring the duplex/failover functionality of the system. (Example: in the event of a network interruption to ICS-A, it will fall behind. When the network connection is restored, it shall automatically catch up to real time without need for operator intervention.)5.1.6The Contractor shall provide an Internal Control System configuration capable of handling the immediate and long-range needs of Lottery three hundred sixty-five (365) days per year, twenty-four (24) hours per day. The ICS configuration shall consist of at least three (3) identical computer systems including hardware and software.THE FOLLOWING ITEMS WILL BE SCORED. (45 Points)Provide a response to the following item.5.1.aDescribe how the proposed system shall be scalable to accommodate changes in processing demands. Demands can change for such reasons as: increased Retailers, increased Transactions, new software that is more demanding of hardware, increased number of games offered.5.1.bDescribe the time-synchronizing mechanism to ensure consistent time recording and reporting for events and Transactions. 5.1.cProvide configuration block diagrams, down to the component level of the proposed ICS with the Proposal. Each hardware and software item shall be identified by manufacturer, product name, and model number, as applicable. For software, version numbers shall be provided, or such will be assumed to be the latest release at the time of Conversion. Any deviations from the suppliers' standard hardware and software products shall be disclosed and an explanation provided. Installation of any such deviations would require approval of the Lottery.5.2HardwareMINIMUM MANDATORY REQUIREMENTS5.2.1The Contractor shall supply all hardware necessary to operate each ICS, including main CPU unit, keyboard, mouse, printer and display.5.2.2The proposed equipment shall have been inspected for safety and certified by an agreed upon testing laboratory, and all proposed equipment shall be in compliance with FCC regulations suitable for devices of the types proposed.5.2.3All proposed equipment shall be new and unused. Equipment proposed shall be compliant with current electronic technology manufacturing standards and be of current manufacture by the Proposer or its suppliers. All hardware models and software versions installed at system start-up shall represent the then-current equivalent or better model or version in a case a proposed offering is phased out or superseded.5.2.4Each ICS shall include fault-tolerant storage of at least RAID 5 or equivalent. 5.2.5Each ICS shall include fault-tolerant power supplies.THE FOLLOWING ITEMS WILL BE SCORED. (45 Points)Provide a response to the following items.5.2.aDescribe the server-class features of the proposed hardware, such as manufacturer's designation as server-class, fault-tolerant features, use of components designed for round the clock use and high availability, hot-swap components, etc..5.2.bDescribe the amount of space, power, and other environmental support required by the ICS hardware.5.3SoftwareMINIMUM MANDATORY REQUIREMENTSThe ICS shall be able to independently process all daily sales, wagers, cancels, validations, claims, inventory, coupons, and Retailer management and accounting activities for lotto and Instant Transactions, to ensure the integrity of the Transactions processed. The Contractor shall maintain the ICS software, e.g. updating the application software whenever the Lottery implements a new game or makes changes to a game that would affect ICS processing, or updating the operating system. Written prior approval is required from the Lottery Administrator before making any enhancement or modification to any software.The Lottery and the MUSL Product Group must approve the ICS software before use, and the ICS must adhere to all requirements as outlined in 1) MUSL Confidential Minimum Game Security Standards, version of Sept. 12, 2012 or later, and 2) MUSL Rule 2, version April 8, 2015 or later.ICS-A and ICS-B shall import and process all lotto transaction data directly from the computer Gaming System; in as close to real time as possible.ICS-A and ICS-B shall check that all wagers shall be applied to the appropriate drawing(s).The ICS shall process all data and produce balancing reports within twenty (20) minutes after the Draw Break.The processes and activities to identify winners for a draw shall be completed within thirty (30) minutes after entry of the winning numbers for each drawing.List and describe all software not part of the ICS application that will be installed on each ICS computer.The ICS shall perform the following balancing procedures: Reprocess all Transactions for each drawing.Produce and compare end-of-day game reports. At a minimum, counts and amounts of all financial activity by game and Retailer shall be balanced daily, as well as balancing total validations and outstanding prize liability by game and draw. Verify sales by game and by drawing for each Retailer.Verify the number of prize winners at each prize level for each game.Confirm validations and outstanding prize liabilities for each game and each drawing.Verify deferred revenue – including future sales. Verify commissions, promotion credits, returns, return commissions, cancellations, unclaimed prizes, purged tickets, and adjustments.Various inquiry and reconciliation activitiesProduce reports that are automatically balanced against reports produced by the Gaming System to verify the above items.The ICS shall support Promotional Transactions as implemented under the Gaming System, should Lottery opt to include them. These Transactions include, but are not limited to: free plays, cross promotions, multiple drawings per Day of the same game; bonus drawings; bonus winner payoffs; sampler tickets; Retailer clerk incentives; external coupons, and Gaming system generated coupons.Any out-of-balance conditions shall be reported immediately as an alert to the appropriate Lottery employees, Gaming System employees, and ICS contractor employees.Weekly (based on accounting week), the ICS shall recalculate Retailer accounting information to compare to the Gaming System contractor for accuracy.The ICS shall support the lockdown alternative technology currently in use in other MUSL jurisdictions.ICS processing relative to a drawing shall allow (i) manual entry of winning numbers for games not drawn by the Wisconsin automated drawing machines (e.g., Powerball), and (ii) the ability to accept winning numbers passed from the Gaming System in the transaction stream directed to the ICS.Real-time monitoring of communications between the ICS and the Gaming System shall be provided. The Lottery shall receive immediate notification of abnormal ICS operations and their causes, such as communication difficulties, ICS hardware, operating system errors, etc.The ICS shall support backup and restore functionality of critical files, software, and back-up data, and processes to test backup and restore procedures (e.g. Lottery may restore a backup file to a testing system to ensure viability).THE FOLLOWING ITEMS WILL BE SCORED. (378 Points)Provide a response to the following items.5.3.aDescribe the process for how the ICS will, with minimal operator involvement, handle day-end, Draw Breaks, maintenance windows of the Gaming System, cutovers between duplexed systems within data centers, and cutovers between Gaming System data centers (i.e. Primary Data Center and Backup Data Center). Include description of operator involvement.5.3.bDescribe how the ICS will obtain winning numbers for each drawing. [note: time to complete will be evaluated].5.3.cState how many minutes the ICS will require to process all data and produce balancing reports after the Draw Break.5.3.dDescribe how the ICS shall support the lockdown alternative technology currently in use in other MUSL jurisdictions.5.3.eDescribe the Proposer's experience developing new ICS software, and upgrading existing ICS software.5.3.fDescribe the process by which ICS software is maintained and kept up to date.5.3.gDescribe the Proposer's software engineering quality practices. Identify any certifications under recognized software quality standards.5.3.hDescribe procedures that will be used to reconcile an “out of balance” condition between the ICS and gaming computer systems should it occur, including anticipated time required for resolution.5.3.iDescribe mechanism by which the Lottery shall be alerted to exceptions in ICS functioning, including but not limited to the following:o Imbalanceso Inability to import data from the Gaming System, including interruptions.o Software or hardware failureo Unauthorized activityo Error conditions5.3.jDescribe alternate means that will be used to provide data to the ICS computers and the procedures and time necessary to balance sales and winners, in the event data transmission to the ICS is disrupted or not functioning.5.3.kDescribe the ICS's capability to log system generated commands and operator entered commands. Include a description of any exception reports that are available when unusual or unauthorized system generated commands and operator generated commands may have been entered.5.3.lDescribe if and how the proposed ICS could be used to verify Instant validations and Instant ticket inventory.5.3.mRecommend a process for balancing the quantities of unique boards played for a given draw. The proposed process should include the recommended methodology for getting this information from the Gaming System, comparing it to the ICS information, and balancing.5.4 NetworkingICS-A and ICS-B shall interface to the Gaming System using Ethernet network connections provided by Lottery and the Gaming System contractor. The Lottery and Gaming System contractor will provide firewall protection for these network connections.MINIMUM MANDATORY REQUIREMENTS5.4.1The ICS shall import a near-real time feed of gaming Transactions from the Gaming System contractor over the network connections described.5.4.2In the event that the network transmission fails, the ICS shall use physical media from Lottery's Gaming System as the source of ICS data, and operate in a standalone mode.5.4.3Each ICS shall be configured to securely support remote connections from the Contractor for system support.THE FOLLOWING ITEMS WILL BE SCORED. (45 Points)Provide a response to the following items.5.4.aDescribe network connectivity requirements for the proposed ICS solution.5.4.bDescribe how the ICS shall monitor the data transmission process, and the connection between the ICS computers and the Gaming System, and alert the Lottery if a failure occurs in the data transmission process.5.4.cDescribe the ICS process that will occur in the event of a network failure.5.5 PerformanceMINIMUM MANDATORY REQUIREMENTS5.5.1ICS Quantitative Performance Criteria - The ICS shall be able to accept Transactions from Lottery's Gaming System at a rate of 30,000 tickets per minute and 2,000 combined cancel and winning ticket Validations per minute, concurrently.5.5.2The ICS shall have the capacity in all hardware and software aspects to expand from support of Transactions from the current four thousand (4,000) Retailers up to five thousand (5,000) active Retailers, shall be able to support fifty (50) concurrent Lotto games, three hundred (300) concurrent Instant Games being in any status (e.g., loaded, distributed, sold, validated, closed out), a lotto sales day of at least fifty million dollars ($50,000,000) and a lotto jackpot over one billion dollars ($1,000,000,000).5.6 ReportingMINIMUM MANDATORY REQUIREMENTSThe ICS shall generate paper and electronic reports as directed by the Lottery.A process shall exist for Lottery ICS operators to copy all ICS reports to removable media [e.g. secure flash drive, CD/DVD].5.6.3The ICS shall generate reports which allow Lottery to balance system totals, game totals, and Retailer activity totals, against the Gaming System. Examples include but are not limited to the following:Winners by game or drawingDrawing sales by draw or gameDaily sales by drawing or gameValidations by game and prize typeDaily sales activity and totals by Retailer (sales, cancels, validations)Daily sales totals by game or productLiability reports by drawing, showing won, paid, outstanding, and purgedUnclaimed prizesPromotional reporting for free tickets, coupons, etc. (Lottery will determine final report specifications with the Contractor.)THE FOLLOWING ITEMS WILL BE SCORED. (90 Points)Provide a response to the following items.5.6.aDescribe the type and content of the reports that are produced and how these reports can be used to balance transaction counts and amounts with reports produced by the gaming computer system.5.6.bDescribe how ICS reports will be archived and made available for later retrieval, and any ICS performance impact that would result from creating, storing, managing, or retrieving reports.5.7 SecurityICS security represents a critical component in protecting Lottery information and assets. The following security requirements apply to all systems in the Contractor's configuration. All security controls shall be subject to Lottery approval.MINIMUM MANDATORY REQUIREMENTSThe ICS shall adhere to all security requirements and be fully compliant with all Multi-State Lottery Association (MUSL) Rules. The ICS Contractor shall have neither logical nor physical access to the ICS except with Lottery approval. All systems and users requiring access to the ICS shall be approved by the Lottery. The ICS shall also support controls and procedures that allow Lottery to audit all system access.The Proposal shall clearly identify controls related to user authentication, authorization and access.All systems shall be configured to support only those services required to provide the intended ICS functions. ICS users shall be granted access only to the operating system functions and file systems needed to perform their job functions (Principle of Least Privilege).The ICS shall be compliant with all security and fault tolerance requirements accepted as operating principles promulgated by any Multi-jurisdictional organization of which Lottery may be a member (e.g., MUSL).The Contractor shall ensure that the ICS is not vulnerable to unauthorized access or malware. The Lottery reserves the right to review any and all ICS narratives, source program listings and maintenance procedures to ensure data and ICS integrity.All operator commands and management workstation modifications executed on the ICS and any ICS warnings or problem messages shall be logged on non-volatile media available to the Lottery which may at its sole discretion process and review the logs for auditing purposes.Checksums are required for executable programs on the ICS for auditing purposes. Checksums shall be available on all ICS systems whenever Lottery chooses to request them from the Contractor, or to generate them.THE FOLLOWING ITEMS WILL BE SCORED. (90 Points)Provide a response to the following items.5.7.aDescribe the methods and procedures in the proposed system that prevent tampering with the ICS, including reports on attempts to tamper (eg: intrusion protection, operating system hardening, log-in and password controls, security log management, protection against malware).5.8 Support and MaintenanceMINIMUM MANDATORY REQUIREMENTS5.8.1The Contractor shall provide programming support to ensure ICS compatibility with changes made to the Lottery's system, (e.g., new games, etc.) and/or ICS requirements. Software upgrades and updates shall also be available to the Lottery at no additional cost.5.8.2The Contractor shall provide on-call and/or on-site system support services, twenty-four (24) hours a day, seven (7) days a week, 365 days a year. The availability and reliability of the ICS is crucial.5.8.3Minimum support response time requirements are as follows:5.8.3.1Time to provide support during Critical Periods: Within 5 minutes5.8.3.2Time to provide support during all other times: Within 30 minutes5.8.3.3Time to provide on-site staff support: within 24 hours5.8.3.4Time to provide a fully functioning replacement ICS-A or ICS-B: within 24 hoursCritical periods are defined as one hour before each scheduled Powerball and Mega Millions draw, until one hour after the draw. 5.8.4The ICS shall be delivered with a full set of tools for its operation and administration. Authorized Lottery staff shall have the ability to perform user account administration. 5.8.5The Contractor shall perform administration and maintenance tasks as part of its support obligation. ICS administration and maintenance responsibilities include, but are not limited to, operating system, security vulnerability assessment and management; coordination and fulfillment of all hardware maintenance; and licensing maintenance. Application responsibilities relate to all installed software components including third-party applications.5.8.6Documentation of all ICS administration and maintenance events shall be maintained by the Contractor and be made available for Lottery review as requested. 5.8.7The Contractor shall obtain replacement parts and maintenance services that are recommended by the original equipment and software suppliers.5.8.8The Contractor shall operate under well-defined change control and configuration management practices. Contractor shall perform in accordance with the principles of configuration management.The Contractor shall ensure through procedural and ICS controls that only Lottery approved changes, on an approved schedule, can be made. Reports and displays shall be available to Lottery to review all related change and configuration management activities.Each release of the software for testing by Lottery shall be accompanied by release notes. The release notes shall evidence good configuration management practices, namely each release shall be identified by a version number and the changes shall be defined. All changes to the ICS shall first be completed on a related QA system. All changes approved and completed for production systems shall be completed on all three (3) systems (ICS-A, ICS-B, Test ICS).Checksums are required for software at the time it is released for Lottery QA, and shall be available at any time. ICS components shall be documented with version and release numbers/patch versions, or model and serial numbers.The Contractor shall track all changes made to the ICS components, provide reports showing when and by whom a change was made and for what purpose, and shall avoid multiple update conflicts. Change logs shall reference associated planning documents and approvals.The Contractor shall have the ability to produce a configuration status report identifying the current configuration of any ICS component as well as an inventory report including all ICS components.For each ICS, a backup of the current configuration is required to ensure these components can be restored quickly and limit the time period where the ICS would be operating in a non-redundant configuration in the case of an ICS or device failure.The Contractor shall provide and maintain comprehensive ICS documentation for Lottery including but not limited to: security standards and processes, Multi-jurisdictional security standards compliance documents, change control processes and procedures, daily balancing procedures, draw balancing, data dictionaries, third-party licensing documentation, etc.THE FOLLOWING ITEMS WILL BE SCORED. (45 Points)Provide a response to the following items.5.8.aDescribe any offered response times that will meet or exceed the mandatory requirements for support.5.9 Implementation and ConversionLottery with its Gaming System contractor will implement a new Gaming System, currently expected to be delivered May, 2017. Lottery intends the ICS in this Request for Proposal to work with the new Gaming System.MINIMUM MANDATORY REQUIREMENTS5.9.1The ICS shall go into production at the same time as the new Gaming System, which is scheduled for May 14, 2017.5.9.2The Contractor shall work in conjunction with the Gaming System contractor to plan, develop, test, and deliver the new ICS. The ICS Contractor shall adhere to the Gaming System contractor's conversion timeline. A production ICS or a development version shall be available for interface testing with the test gaming system by October 1, 2016. Acceptance testing of the gaming system is scheduled to begin January 17, 2017, and parallel production is scheduled to begin April 17, 2017. 5.9.3ICS testing and implementation shall not delay the Gaming System implementation plan.5.9.4Lottery will conduct a series of QA tests for the new ICS at the same time as testing the new Gaming System. The Contractor shall support the Lottery's and the Gaming System contractor's testing.Training and operations manuals and documentation specific to the Wisconsin Lottery shall be delivered prior to QA testing. The Contractor shall provide technical assistance as a resource to collaborate and support the Gaming System contractor's and Lottery's quality assurance testing.Each release of the software for testing by Lottery shall be accompanied by release notes. The release notes shall evidence good configuration management practices, namely each release shall be identified by a version number and the changes shall be defined. 5.9.4.4Lottery will have successfully completed its quality assurance testing when all components of the ICS have been tested and all significant issues identified by Lottery during testing are resolved by the Contractor and validated by Lottery. The Contractor and Lottery shall develop and agree upon detailed criteria that shall be met prior to the ICS Conversion. The Contractor shall comply with Lottery's reasonable statements of entry and exit criteria for Lottery quality assurance testing and identify any issue that may concern the Contractor regarding effective and timely QA testing.5.9.5While implementation plans are requested for purposes of evaluating Proposals, the Contractor shall submit a final implementation plan that is acceptable to the Lottery within two (2) weeks from the date of Contract execution. The Lottery will determine/approve the final Implementation plan.5.9.6Processing Aged and Outstanding Transactions after Conversion - The new ICS shall accommodate Transactions from the new Gaming System that represents outstanding Transactions prior to the Conversion from the old Gaming System.THE FOLLOWING ITEMs WILL BE SCORED. (90 Points)Provide a response to the following items.5.9.a Describe the Proposer’s experience with implementing a new ICS concurrently with a gaming system Conversion.5.9.bProvide an implementation plan and time chart (Gantt, PERT, or similar) identifying the major milestones to be accomplished for the business requirements definition, equipment delivery, software programming, installation, testing, training, and file conversion. Responsibilities of the Contractor's implementation team, of Lottery's implementation team, and of any of Lottery's other providers (e.g., Gaming System contractor), shall be identified. The final implementation plan of the Contractor requires Lottery approval.5.10 TrainingThe Contractor shall provide training for Lottery staff, at Lottery offices or appropriate venues, or both, as approved by Lottery.MINIMUM MANDATORY REQUIREMENTSThe Contractor shall train Lottery personnel on the use and operation of the ICS, including operation of the hardware, application software, balancing procedures, out-of-balance procedures, and shall provide procedure manuals at start-up and all updates when any change is made to the system if applicable to the operation of the ICS. Besides the initial training for Lottery personnel at the time of Conversion, follow-up training shall be provided when changes are made to the ICS for any new software and when there is turnover of Lottery operations personnel.Training shall be customized to meet the unique needs of Lottery employees performing specific primary and support activities in the following function areas: ICS Operations (draw and daily activities), IT Support, Security Administration, and Internal Audit. Additional training may be needed as ICS features evolve.Training shall incorporate a mix of instructor-led presentations and discussions, as well as hands-on workshops. The Contractor shall provide documentation to support these activities.THE FOLLOWING ITEMS WILL BE SCORED. (45 Points)Provide a response to the following items.5.10.aDescribe the program that will be implemented to train up to eight (8) Lottery personnel on the operation and use of the ICS. Include a description of training materials and procedure manuals that will be provided, the approach that will be used, and the expected length of each training session. Include a copy of an actual system user’s guide in the Proposal.5.10.bDescribe what training will be available on an ongoing basis for system changes and new staff.5.11 Continuation of OperationsMINIMUM MANDATORY REQUIREMENTS5.11.1In the event of irreparable damages or of an unplanned, extended abandonment of Lottery Headquarters or the secondary draw site, the Contractor shall provide new hardware, software, and other components necessary to resume ICS operations under a dual system operational scenario. Such components shall be furnished, installed and operational within fifteen (15) days after the disaster. In the event that the Gaming System and the ICS are both subject to disaster recovery, then the ICS shall be made operational concurrently with the Gaming System.5.11.2The Contractor shall provide a disaster recovery plan for Contractor's infrastructure necessary to support the Wisconsin Lottery. THE FOLLOWING ITEMS WILL BE SCORED. (27 Points)Provide a response to the following items.5.11.aDescribe the measures that will be in place to ensure the Proposer will be ready and able, on an ongoing basis, to satisfy the contingency requirements described in Requirement 5.11.1.5.11.bProvide a copy of the Proposer's draft disaster recovery plan referenced in Requirement 5.11.2. 6.0COST PROPOSAL6.1General instructions on preparing cost proposalsThe cost proposal shall be submitted in a separate sealed envelope with the written Proposal. Use Attachment A, Cost Proposal, to submit cost proposal.6.2Fixed price periodAll costs outlined in the proposal shall remain firm for the initial seven (7) year period of the Contract. Any price increases after the initial seven-year period must be received in writing and approved by the Lottery ninety (90) days prior to the beginning of the next period of the Contract.7.0SPECIAL CONTRACT TERMS AND CONDITIONS7.1Additional servicesThe Lottery reserves the right to add additional or new items, features or services provided by the Contractor during the life of the Contract. The Contractor and the Lottery shall negotiate the cost for the additional items, features or services, as long as it does not deviate from the scope/intent of the original signed contract.7.2 Background investigations7.2.1Background Information Checks: The Wisconsin Department of Justice is required by law to conduct background investigations on each Lottery major procurement Contractor and its key individuals (ss. 565.25(4), Wis. Stats.). Background information required by the Department of Justice is contained in the Wisconsin Lottery Major Procurement Vendor and Personal Disclosure Forms. Only the awarded Proposer after the Proposal evaluation process shall be required to submit completed background check materials to Lottery Security.Background or security checks are at the successful Contractor’s expense. See Section 7.16 Security Clearance at Contractor’s Expense.Personal disclosure forms shall be submitted for the following types of individuals:Proposers that are sole-proprietorships.For each partner for Proposers that are partnerships. Where a partner is itself a corporation, limited liability company, or another partnership, the information required by this section shall be provided for the partners, members, officers, directors and owners of that ownership entity.For each member for Proposers that are limited liability companies.For Proposers that are corporations, for each officer or director of the corporation and each owner, directly or indirectly, of any equity security or other ownership. For publicly traded corporations, the owners subject to background check would be limited to only those persons who are direct or indirect owners of five percent (5%) or more of the publicly held securities. Where an owner of securities in the Proposer is itself a corporation, partnership or limited liability company, then the information required by this section shall be provided for partners, members, officers, directors and owners of that ownership entity.All completed vendor and personal disclosure forms (original plus one (1) copy) and duplicate fingerprint cards shall be sent under separate cover directly to Wisconsin Department of Revenue, Lottery Division, Attn: Security, 2135 Rimrock Road, PO Box 8941, Madison, WI 53708-8941. Submittal of the vendor and personal background information should be within thirty (30) days following the date of Intent to Award notification or as otherwise specified by Lottery Security. Additional sets of the disclosure forms and associated fingerprint cards are available upon request to Lottery Security at 608-264-6641.7.2.2Continuing background information obligationContractor understands and agrees that during the life of the Contract, it shall be obligated to provide such information about its officers, directors, employees and owners as the Lottery may prescribe in furtherance of the Lottery's duties and responsibilities under ss. 565.25 (3) and (4), Wis. Stats. This may include the background information described in this RFP for officers, directors and owners of parent companies beyond an immediate parent company.7.3Changes in ownership/financial conditionIf the Contractor experiences a change in ownership or a substantial change in its financial condition during the Life of the Contract, the Lottery shall be notified of the change in writing at the time the change occurs or is identified. Willful failure to notify the Lottery upon receipt of an SEC Schedule 13G from the Securities and Exchange Commission shall be grounds for terminating the Contract and failure to notify the Lottery of a substantial change in financial condition shall be grounds for terminating the Contract. For the purpose of this section, “change of ownership” does not include a sale or transfer of Contractor’s publicly held securities unless an individual, partnership, corporation, associate group of investors or legal entity obtains an ownership interest of the Contractor in the amount of five percent (5%) or more.7.4Required insurance coverageThe following minimum required coverage amounts for the Contract must be met.WORKER'S COMPENSATION Minimum of Liability(Including Employers’ Liability) (WC Statutory Limits)Each Accident (WC Statutory Limits)Disease – Each Employee (WC Statutory Limits)Disease – Policy Limit (WC Statutory Limits)COMMERCIAL GENERAL LIABILITY Each Occurrence $1,000,000General Aggregate $2,000,000 Umbrella Coverage: (Each Occurrence) $2,000,000Aggregate $5,000,000AUTOMOBILE LIABILITYCombined Single Limit $2,000,000 ERRORS & OMISSIONS LIABILITY Each Occurrence $1,000,000Aggregate $3,000,000COMMERCIAL PROPERTYAll Risk Property Floater Actual Replacement Cost7.5Confidentiality of InformationThe Contractor and any subcontractor(s) shall execute a Non-disclosure Agreement substantially similar to the Attachment D, Non-Disclosure Agreement.7.6Conflict of interestWis. Stats. 565.05(1)(a) prohibits any employee of the Lottery, or the Secretary, Deputy Secretary or Assistant Deputy Secretary of the Department from having direct or indirect interest in, or be employed by, the Contractor or any subcontractor while such person is serving as an officer or employee of the Department or for two (2) years following the officer's or employee's termination of service. The Lottery shall not engage the services of an employee of the Contractor during the life of the Contract.7.7Contract AmendmentsThe Contract may be amended within the Contract period by mutual written consent of the parties. No modification or amendment to the Contract shall become valid unless in writing and signed by both parties. All correspondence regarding modifications or amendments to the Contract shall be forwarded to the Department of Administration, attention CAPS, for prior review and approval.7.8Debarment Federal Executive Order (E.O.) 12549 “Debarment” requires that all Contractors receiving individual awards, using federal funds, and all sub recipients certify that the organization and its principals are not debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded by any Federal department or Agency from doing business with the Federal Government. Information on debarment is available at the following websites: and far/.7.9Order of precedenceIn the event of Contract award, the contents of this RFP (including all attachments), RFP addenda and revisions, and the Proposal of the successful Proposer, and additional terms agreed to, in writing, by the Agency and the Contractor shall become part of the Contract. Failure of the successful Proposer to accept these as a contractual agreement may result in a cancellation of award.In the event of conflict with the incorporated elements of the Contract, the following order of precedence will prevail:ContractStandard Terms and ConditionsProposer's Proposal Dated June 21, 2016, 2:00 CTState Request for Proposal Dated May 18, 20167.10Governing law and venueThe laws of the State of Wisconsin shall govern this Contract. The Contractor shall at all times comply with and observe all federal and state laws, local laws, ordinances, and regulations which are in effect during the life of the Contract and which in any manner affect the work or its conduct. The Contractor agrees that any litigation commenced by the recipient for matters arising out of this Contract, shall have venue in Dane County, Wisconsin, unless otherwise specifically agreed between the Department and the Contractor.7.11Liquidated damagesBoth parties acknowledge that it can be difficult to ascertain actual damages when a Contractor fails to carry out the responsibilities of the Contract, and therefore, the Contract shall contain a Liquidated Damages clause that will be substantially similar to the following:7.11.1It is agreed by the Contractor and the Lottery that:a.The Contract contains liquidated damages for Contractor default, including but not limited to, failure to effectively carry out the Contract provisions, improper or non-professional conduct, untimely performance, questionable security practices or security breaches as determined by the Lottery. Breach of any of the foregoing or any action of the Contractor or any subcontractor involved in the Contract, which reflects upon the integrity, credibility, honesty or security of the Lottery shall result in remedial action and may include cancellation of the Contract by the Lottery. Therefore, if the Contractor does not perform the contractual requirements or obligations in the Contract, damage to the Lottery will result.b.It will be costly, difficult, time-consuming, and impossible to calculate the exact amount of damages resulting from the breach or non-performance of certain of the terms and conditions of this Contract.c.These liquidated damage provisions represent a good faith effort to quantify the damages that could reasonably be anticipated at the time of the execution of the Contract. The liquidated damages provided in this Section 7.12 are just and reasonable. If two (2) or more sub-sections could apply to an incident of non-performance by the Contractor for which the Lottery has the right to assess liquidated damages, then the one (1) sub-section which most accurately describes the nature of the non-performance by the Contractor shall apply, as determined by the Lottery in its sole discretion.d.Nothing in this Section 7.12 shall be construed as relieving the Contractor from performing all contractual requirements and obligations in the Contract whether or not the failure to do so is a basis for the assessment of liquidated damages as set forth.e.The Lottery's right to assess liquidated damages in no way diminishes or limits the Lottery's right to seek any and all forms of relief permitted by State law with respect to Contractor's breaches not addressed in this Section 7.12.f.Whenever the Lottery has determined that liquidated damages are to be assessed, the Administrator shall notify the Contractor of the assessment. Failure to notify does not affect the Lottery's right to impose liquidated damages and is not a condition precedent thereto. The Lottery shall withhold liquidated damages from payments to the Contractor, or, if no payments are to be made, the Lottery shall make demand of payment of liquidated damages. The Contractor shall make payment within thirty (30) days of the Lottery's demand. If within this thirty (30) day period, the Contractor satisfies the Lottery that there was no breach or that the breach was not attributable to the Contractor, then the Lottery in its discretion may withdraw its assessment of liquidated damages.g.Delays due to a subcontractor conduct, negligence or failure to perform shall not excuse the Contractor from the liquidated damages provisions of the Contract unless caused by "force majeure" as defined in the attached Standard Terms and Conditions (DOA-3054).h.Partial performance of the Contract shall not relieve the Contractor from liability for liquidated damages if any material portion of the Contract remains unperformed upon the date performance is to be completed. i.The Contractor's liability for liquidated damages shall cease at such time as the Lottery obtains complete substituted performance as reasonably determined by the Lottery from the Contractor or a second vendor; provided, however, the Contractor shall remain liable for liquidated damages which have accrued to the time of substituted performance. j.Payment of liquidated damages shall in no event impair the obligation or liability of the Contractors surety to perform according to the terms of the Contract.k.The Contractor shall not be required to pay liquidated damages due to negligence or actions of the Lottery or third parties except for the Contractor's subcontractors, for which the Contractor is responsible. l.The Contractor shall not be required to pay liquidated damages for delays due to matters as referenced in the attached Standard Terms and Conditions (DOA-3054) Force Majeure Section 35.0, for delays specifically approved in writing by the Lottery. m.Repeated instances of breach or non-performance by the Contractor giving rise to liquidated damages; may, in the sole discretion of the Lottery, be grounds for termination of the Contract.n.The Lottery shall have the discretion to waive or reduce assessed amounts of liquidated damages. The failure of the Lottery to assess or the waiver or reduction by the Lottery of liquidated damages in any instance where the Lottery is entitled to Liquidated Damages pursuant to the terms and conditions of the Contract, shall not constitute waiver in any fashion of the Lottery's rights to assess liquidated damages.o.If any portion of this Section 7.12 is determined to be unenforceable, the other portions of this Section 7.12 shall remain in full force and effect.p.The Contractor is responsible for adherence by any Contractor's subcontractor(s) to all of the terms and conditions of this Contract, and therefore is responsible for any and all instances of non-performance or breach by subcontractor(s) which give rise to liquidated damages.7.11.2Payment of Liquidated DamagesThe Lottery may assess, and the Contractor covenants and agrees to pay the Lottery, as and for liquidated damages, without proof of actual or specified loss, as follows (what follows is not an all-inclusive list of possible liquidated damages scenarios):Installation and Implementation: Installation and implementation shall be completed in a timely manner. Time is of the essence and, as such, the Lottery may impose liquidated damages of up to one thousand dollars ($1,000.00) a day if the ICS is not functioning in its role with the pre-production Gaming System as of the date specified in the ICS Implementation Plan, unless that date is amended by mutual agreement between the Lottery and Contractor. Entire System Down: When, due to Contractor's hardware, software, or connection malfunction, the Lottery is unable to produce accurate and complete reports in the required timeframes to balance sales and winning tickets and/or conduct a drawing, the Lottery may assess liquidated damages in the amount of one thousand dollars ($1,000) per hour, up to a maximum of twenty thousand dollars ($20,000) per day.Failure of Production ICS: When, due to Contractor's hardware, software, or connection malfunction, either ICS-A or ICS-B are unavailable for longer than twenty-four (24) hours, the Lottery may assess Liquidated Damages in the amount of two thousand dollars ($2,000) per day or a portion thereof commencing with the twenty-fifth hour of the outage.Failure of Test ICS: When, due to Contractor's hardware, software, or connection malfunction, the Test ICS is unavailable for longer than seventy-hours (72) hours, the Lottery may assess Liquidated Damages in the amount of one thousand dollars ($1,000) per day or a portion thereof commencing with the seventy-third hour of the outage.7.12 Minority subcontractingThe Department will require from the Contractor a quarterly report, submitted to the Lottery Contract Specialist, or such other person as the Lottery designates, Department of Revenue, Lottery Division, of purchases of such supplies and services from minority vendors necessary for the implementation of this Contract. A list of certified minority businesses, and the services and commodities they provide is available from the Department of Administration, Wisconsin Supplier Diversity Program, 608/2612510.7.13News releasesNews releases and media contacts pertaining to this agreement, or other work performed on behalf of the Department, shall not be made without the prior approval of the State of Wisconsin, Department of Revenue.7.14Prime contractorThe Contractor will be responsible for all subcontractors and subcontractors must abide by all terms and conditions of the Contract. If subcontractors are to be used, the Proposer must clearly explain their participation in the Proposal.7.15Record keepingThe Contractor shall establish and maintain adequate records of all expenditures incurred under the Contract. All records shall be kept in accordance with generally accepted accounting procedures. All procedures shall be in accordance with federal, state and local ordinances.The Department shall have the right to audit, review, examine copy and transcribe any pertinent records or documents relating to any Contract resulting from this RFP held by the Contractor. The Contractor shall retain all documents applicable to the Contract for a period of not less than three (3) years after final payment is made.7.16Security clearance at Contractor’s expenseThe Contractor is subject to a background investigation as required by ss. 565.25(4), Wis. Stats. (Section 7.2 Background Investigation.) The Lottery may require subsequent investigations during the life of the Contract. The Contractor shall reimburse the State for the cost of any such investigation. The actual cost of a background investigation shall vary, depending on the organization of Contractor’s business and number of individuals involved, but is usually between $5,000 and $10,000. Normally the investigation should be completed within ninety (90) days. If a Contract with the successful Proposer is executed before the investigation is concluded, and the results of the investigation disclose information that would have restricted the Lottery’s authority to Contract with the Proposer as provided under ss. 565.25(3)(a), Wis. Stats., had the information been disclosed prior to Contract execution, the Contract shall be void.Section 7.19 Staffing Information and Approval of this RFP describes the information that is required for the background check as well as the individuals who shall provide the information. 7.17Staffing information and approval:During the life of the Contract, the Contractor shall identify within twenty-four (24) hours of assignment or hire, any officers or employees performing services for the Contract, including officers and employees of subcontractors under the Contract. For purposes of this section, “identify” means to list the person’s name, classification, work location and security clearance level. The security clearance levels are associated with the employee’s classification and/or their location and shall determine the type of background investigation (e.g., minimum, key employee) required for the Contract. The Contractor shall bear the cost of any required employee background investigations.Security clearance levels associated with classifications having greater responsibilities shall have background investigations commensurate with the increased access to Lottery operations and design materials. Lottery Security shall assign the security clearance levels associated with each classification.Background Investigation Requirements:Minimum - Name, including middle initial- Any name changes- Current home address and telephone number- Race- Gender- Date and place of birth- Social Security Number- Marital status- Driver’s license number, if appropriate- Wisconsin criminal history by name check- Positive identification through fingerprintsKey Employee - All of the above plus:- Non-Wisconsin criminal history- Residency history- Spouse identification – name, including middle initial- Educational history check- Employment reference check- Credit check- Analysis of the information provided in the appropriate disclosure forms in the Wisconsin Lottery Major Procurement Vendor and Personal Disclosure Forms document (see section 7.2.1 for more information).The Lottery reserves the right, with or without cause, and in its sole discretion, to review the background investigation files, perform background investigations on and/or disapprove any employees of the Contractor, subcontractors, and employees of Contractors to the Contractor prior to assignment to work related in any way to the Contract. The Lottery reserves the right to order that any of these persons be relieved of responsibilities related to the Contract, if the Lottery believes that any such employee is not performing in the Lottery’s best interests or the employee’s presence is not in the Lottery’s best interests. 7.18 Termination of ContractThe Agency may terminate the Contract at any time at its sole discretion by delivering thirty (30) days written notice to the Contractor. Upon termination, the Agency's liability shall be limited to the pro rata cost of the services performed as of the date of termination plus expenses incurred with the prior written approval of the Agency. In the event that the Contractor terminates the Contract, for any reason whatsoever, it shall refund to the Agency within thirty (30) days of said termination, all payments made hereunder by the Agency to the Contractor for work not completed or not accepted by the Agency. Such termination shall require written notice to that effect to be delivered by the Contractor to the Agency not less than thirty (30) days prior to said termination. 7.19Termination of Partner, Member, Officer, Director, or OwnerPursuant to sec. 565.25(3)(b)4, Wis. Stats., and during the life of the Contract, the Contractor agrees it shall immediately terminate its relationship with any partner, member, officer, director, or owner whose actions directly contributed to the Contractor’s conviction or entry of a guilty plea or plea of no contest to a felony, gambling related offense or fraud or misrepresentation in any connection or a violation of a provision of Chapter 565, Wis. Stats., or a rule of the Lottery. The Contractor shall also provide sufficient proof of such termination to the Lottery’s satisfaction. If the Lottery is not satisfied that the termination has occurred, the Contract is void. If during the life of the Contract, one of the Contractor’s partners, members, officers, directors, or owners is convicted or if the result of the background investigation discloses that the partner, member, officer, director, or owner has been convicted within the last ten (10) years or has entered a plea of guilty or no contest to a felony, a gambling-related offense, fraud or misrepresentation in any connection, or violation of Chapter 565, Wis. Stats., or a rule of the Lottery, the Contractor shall immediately terminate its relationship with that person. If the Lottery is not satisfied that the termination has occurred, the Contract is void.7.20Ticket purchaseNo officer or Key Employee of the Contractor or that officer’s or Key Employee’s spouse, child, stepchild, brother, stepbrother, sister, stepsister, parent or stepparent who resides in the household of such officer or Key Employee shall purchase a Wisconsin Lottery ticket or be paid a prize in any Wisconsin Lottery game. This section shall apply to all Contractor and subcontractor’s officers and Key Employees.The Contractor shall ensure that the above requirements are made known to each officer and Key Employee of the Contractor and any subcontractor.This restriction applies during the term of the Contract.7.21Wisconsin office requirementAs required by ss. 565.25(3)(c), Wis. Stats., the Contractor shall establish a Wisconsin office within a reasonable time period to be specified in the Contract from which the Contractor shall process, produce, distribute, supply or sell materials, supplies, equipment or services under the Contract. 7.22Wisconsin sales and use tax registration No award can be made to a Proposer who is not in compliance with sec. 77.66 of the Wis. Statute. (vendornet.state.wi.us/vendornet/wocc/certtax.asp) relating to sales and use tax certification. If you have not established a certification for Collection of Sale and Use Tax status with the Wisconsin Department of Revenue, the state cannot issue any purchase orders to your firm. For additional information see 8.0STANDARD TERMS AND CONDITIONSThese standard and supplemental terms and conditions shall govern this proposal and subsequent award. Vendors must accept these terms and conditions or submit point-by-point exceptions along with proposed alternative or additional language for each point, including any vendor contracts. Submission of any standard vendor contracts as a substitute for language in the terms and conditions is not a sufficient response to this requirement and may result in rejection of the vendor's proposal. The State reserves the right to negotiate contractual terms and conditions other than those in the State of Wisconsin Contract when it is in the best interest of the State to do so.The State of Wisconsin reserves the right to incorporate standard State contract provisions into any contract negotiated with any proposal submitted responding to this RFP (Standard Terms and Conditions (DOA-3054)) and Supplemental Standard Terms and Conditions for Procurements for Services (DOA-3681)). Failure of the successful proposer to accept these obligations in a contractual agreement may result in cancellation of the award.9.0REQUIRED FORMSThe following forms must be completed and submitted with the proposal in accordance with the instructions given in Section 2.4. Blank forms are attached.Request for Proposal (DOA-3261), completed and signedDesignation of Confidential and Proprietary Information (DOA-3027)Vendor Information (DOA-3477)Vendor Reference (DOA-3478)Vendor Agreement (DOA-3333)Cost Proposal (Attachment A)Response to Qualifications and Mandatory Requirements (Attachment B)Key Personnel Qualifications Form (Attachment C) ................
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