Request for Proposal State of Arizona PAGE State Procurement Office Solicitation No.: ADSPO16-00005378 1 100 N. 15th Ave, Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
Notice of Request for Proposal
In accordance with A.R.S. § 41-2534, competitive sealed proposals for the materials or services specified, will be received by the State Procurement Office online through the State’s e-Procurement system, ProcureAZ (https://procure.az.gov) at the date and time posted in ProcureAZ. Proposals received by the correct time and date will be opened and the name of each Offeror will be publically available. Proposals must be in the actual possession of the State on or prior to the time and date indicated in the Notice. Late proposals will not be considered.
OFFERORS ARE STRONGLY ENCOURAGED TO CAREFULLY READ THE ENTIRE SOLICITATION.
SOLICITATION NUMBER: ADSPO16-00005378
DESCRIPTION: The State of Arizona invites sealed proposals from qualified firms to provide Advertising and Marketing Services for use by the Arizona Lottery.
DUE DATE AND TIME: Offers shall be received until 3:00 p.m. MST, August 13, 2015.
SUBMITTALS: Sealed Offers in response to this solicitation shall be submitted within the State’s e- Procurement system, ProcureAZ (https:/procure.az.gov). The due date and time are indicated in ProcureAZ as the Bid Opening Date. Late submittals will not be considered. Offers received by the due date and time will be electronically opened. Offers submitted outside of ProcureAZ, or those that are received after the due date and time, shall be rejected.
Bidders shall copy and save ProcureAZ attachments to their own computer, save the information entered, and submit the completed information as a new, appropriately renamed Attachment in ProcureAZ. ProcureAZ will not save information entered directly on the attachments.
Additional information regarding submittal instructions is located within this document in the following sections: Special Instructions to Offerors and Uniform Instructions to Offerors.
QUESTIONS: Inquiries regarding the solicitation are encouraged to be submitted online through ProcureAZ using the Q&A tab.
Request for Proposal State of Arizona PAGE State Procurement Office Solicitation No.: ADSPO16-00005378 2 100 N. 15th Ave, Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
Table of Contents
Offer and Acceptance Form…………...... 3
Scope of Work...... 4
Special Terms and Conditions...... 17
Uniform Terms and Conditions...... 38
Special Instructions to Offerors……...... 46
Uniform Instructions to Offerors...... 54
Exhibits
Exhibit A – Gaming Data ...... 60
Response Forms
The Response Forms to be filled out by the Offeror are available as separate attachments within ProcureAZ
Attachment I – Designation of Confidential, Trade Secret & Proprietary Information ...... 64
Response Form 1 - Method of Approach to Scope of Work Questionnaire ...... 65
Response Form 2 - Summary of Firm/Capacity of Offeror Questionnaire ...... 66
Response Form 3 - References… ...... 67
Response Form 4 - Price Sheet… ...... 68
Offer and Acceptance State of Arizona State Procurement Office SOLICITATION NO.: ADSPO16-00005378 PAGE 3 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF OFFFEROR: [insert company name here] 68
OFFER TO THE STATE OF ARIZONA: The Undersigned hereby offers and agrees to furnish the material, service or construction in compliance with all terms, conditions, specifications and amendments in the Solicitation and any written exceptions in the Offer. Signature also certifies Small Business status.
Company Name Signature of Person Authorized to Sign Offer
Address Printed Name
City State Zip Title Phone:
Fax: Contact Email Address
By signature in the Offer section above, the Offeror certifies:
1. The submission of the Offer did not involve collusion or other anticompetitive practices. 2. The Offeror shall not discriminate against any employee or applicant for employment in violation of Federal Executive Order 11246, State Executive Order 2009-9 or A.R.S. §§ 41−1461 through 1465. 3. The Offeror has not given, offered to give, nor intends to give at any time hereafter any economic opportunity, future employment, gift, loan, gratuity, special discount, trip, favor, or service to a public servant in connection with the submitted Offer. Failure to provide a valid signature affirming the stipulations required by this clause shall result in rejection of the Offer. Signing the Offer with a false statement shall void the Offer, any resulting Contract and may be subject to legal remedies provided by law. 4. The Offeror certifies that the above referenced organization ___ IS/ ___ IS NOT a small business with less than 100 employees or has gross revenues of $4 million or less.
ACCEPTANCE OF OFFER The Offer is hereby accepted. The Contractor is now bound to sell the materials or services listed by the attached Contract and based upon the solicitation, including all terms, conditions, specifications, amendments, etc., and the Contractor’s Offer as accepted by the State. This Contract shall henceforth be referred to as Contract No. ______. The effective date of the Contract is ______. The Contractor is cautioned not to commence any billable work or to provide any material or service under this contract until Contractor receives purchase order, contract release document or written notice to proceed. State of Arizona Awarded this day of 20
Procurement Officer
Scope of Work State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 4 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
1. INTRODUCTION AND BACKGROUND
1.1. The Arizona Lottery (hereinafter referred to as “AZ Lottery”) is seeking the services of a qualified firm (hereinafter referred to as Contractor) to perform all functions (“Advertising Services”) normally required of a full-service advertising agency necessary for the development, preparation, and placement of advertising in various media throughout the state of Arizona as the AZ Lottery shall direct or deem necessary. The AZ Lottery’s advertising is both product and image-oriented. Product advertising is game-specific. Image advertising focuses on the ways in which the AZ Lottery revenues benefit communities throughout the state. AZ Lottery advertising uses a mix of outdoor, broadcast, print, digital, social, and point-of-sale media to inform and educate players and the public. It is the mission of the AZ Lottery to help generate revenue for the State through the sale of entertaining lottery tickets. The AZ Lottery places advertising in both English-language and Spanish-language media to ensure reaching all communities, including the general and the multi-cultural market.
1.2. The AZ Lottery prefers to award a Contract to one Contractor with expertise in all needed disciplines; however, the AZ Lottery may award a Contract to more than one Contractor, if it is in the best interest of the AZ Lottery. The resulting Contract(s) will be awarded based on the best value for the AZ Lottery, taking into consideration the Contractor’s skill and experience, the scope of professionalism of proposed services, demonstration of services achieving the AZ Lottery’s objectives, and cost to the AZ Lottery, as also described in Section 8.1 of the Special Instructions to Offerors.
1.3. The AZ Lottery has the following objectives in issuing this RFP:
1.3.1. Maintain the public’s trust and confidence in the AZ Lottery and its operations;
1.3.2. Consistently and efficiently respond to innovations in the industry and changes in the demands of the marketplace;
1.3.3. Use the Contractor’s marketing expertise and experience to develop innovative and creative products to achieve sales objectives;
1.3.4. Market a continually updated product, manufactured and sold using state-of-the-art technology, to achieve sales objectives; and
1.3.5. The acquisition of services that optimize the net revenue of the State of Arizona to fund the AZ Lottery’s legislatively mandated beneficiaries.
1.4. The AZ Lottery’s present advertising contract will end no later than June 30, 2016. The AZ Lottery does not intend that the present advertising contract will be extended after that date, but unforeseen circumstances may require an extension for some period of time after June 30, 2016. The Contractor(s) awarded resultant Contract(s) will be expected to meet with key AZ Lottery staff within fifteen (15) days of the award. The Contractor(s) will actively participate in marketing status meetings cooperatively working with multiple vendors and be prepared to receive historical data working files. The key personnel of the Contractor(s) will actively engage in development and planning to assure that AZ Lottery initiatives and revenue generating campaigns will continue to be seamlessly executed as of the termination date of the present advertising contract. Payment to the new Contractor(s) will commence the day after termination of the present advertising contract.
1.5. If more than one contract is awarded, Contractor(s) are expected to work cooperatively as a team to accomplish the AZ Lottery’s objectives.
1.6. The mission and additional background of the AZ Lottery are identified in this Solicitation Exhibit A – Gaming Data.
Scope of Work State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 5 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
2. GENERAL REQUIREMENTS
2.1. Contractor shall have the capability and requisite experience and expertise to perform Advertising Services for AZ Lottery in accordance with the provisions and requirements set forth herein for the duration of the Contract. The requirements listed herein are intended to clarify the types of services to be provided, but do not constitute a complete listing.
2.2. Unless otherwise indicated herein, the Contractor will be responsible for the costs of all labor and services, including but not limited to: costs and materials for media buying, publication; shipping within Arizona; postage; overnight deliveries; travel within Arizona; attendance and registration fees for industry conferences and educational seminars; overhead; insurance, bonds or letters of credit; profits; permits and licenses; phone; voice messaging; fax phone charges; fax lease; internet service, including duplication, distribution, uploading and other related costs to traffic production assets across media buys; photography and prints; artwork; production cost overruns; advertising copy; electronic storage media; any other expenses not pre-approved by the AZ Lottery; and similar costs of doing business. The Offeror should include all such costs in the fee listed in its ProcureAZ bid “Items” tab Pricing. 2.3. It is highly preferred that the Contractor have in-house personnel to perform required Advertising Services, and it is expected that a full complement of Account Services Staff, as defined below, will require a maximum of twenty (20) individuals. The Contractor shall maintain a full-time office in the Phoenix metropolitan area so that all account, media, public relations, interactive and creative staff is available to the AZ Lottery on a daily basis.
2.4. The Contractor must provide Advertising Services in a business-like manner, consistent with the AZ Lottery’s daily needs, and in conformance with the highest possible industry and quality standards. Advertising Services shall generally include, but are not limited to:
2.4.1. Effective and integrated planning, guidance, design, development, and execution of general market, multi- cultural, public relations, interactive, media, retailer merchandising, and promotional advertising, including assistance in development of a yearly integrated marketing plan, as outlined further herein (“Marketing Plan”);
2.4.2. Branding, creative conception, development, production, planning, buying, circulating, and placing of approved broadcast, print, digital, and out-of-home advertising in support of the Marketing Plan;
2.4.3. Implementation of emerging technologies and services as approved by the AZ Lottery;
2.4.4. Provision of staff and resources to assist with retailer, promotional, community outreach, and other special events;
2.4.5. Provision of relevant research, analysis, advice, recommendations, and support for all AZ Lottery advertising initiatives;
2.4.6. Provision of pre-activity evaluation of all proposed advertising initiatives, and post-activity evaluation of the performance of such initiatives;
2.4.7. Establishment and execution of an annual advertising budget (the “Budget”) as outlined in section 3 of the Scope of Work, being accountable for budgetary control and sharing responsibility for cost savings; and
2.4.8. The Contractor may be required to perform additional related functions for the AZ Lottery over the term of the Contract at the AZ Lottery’s request. 2.5. The Contractor shall provide all services in a manner consistent with the North American Association of State and Provincial Lotteries (“NASPL”) Advertising Guidelines, as approved March 19, 1999, or as amended by any successor guidelines adopted by NASPL. The guidelines can be located at http://www.naspl.org/index.cfm?fuseaction=content&MenuID=14&PageID=1055.
Scope of Work State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 6 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
3. BUDGET
3.1. The maximum level of anticipated annual spending for advertising (“Yearly Allotment”) will be determined by the Arizona State Legislature and the AZ Lottery, based on projections developed by the AZ Lottery. Each Yearly Allotment may be reduced by a reserve held for internal Special Projects, leaving the remainder as the amount of funds available to the Contractor to provide Advertising Services (“Contractor Allotment”). Prior to each State Fiscal Year, the AZ Lottery will provide the Contractor with the Contractor Allotment for Advertising Services and will require the Contractor to develop a cost-efficient Budget for Advertising Services that is responsive to the AZ Lottery’s sales and net revenue goals and marketing needs and does not exceed the Contractor Allotment. Each yearly Budget or adjustments thereto, proposed by the Contractor shall be subject to the modification of, and final approval by the AZ Lottery, exercising its sole discretion.
3.2. Development of an annual Budget must include, at a minimum, the creation of a project budget, hour’s utilization, procurement, and tracking reports or other reports as requested.
3.2.1. Contractor shall be expected to: (a) recommend and document ways to generate cost savings and improve efficiencies; (b) develop value-added opportunities; and (c) maximize advertising impact and exposure of budgeted initiatives.
3.2.2. The Contractor shall provide regular Budget updates as required by the AZ Lottery.
3.3. The Contractor shall pay all AZ Lottery-related bills that it generates in a timely fashion. If it fails to do so and a vendor contacts the AZ Lottery directly about payment, the AZ Lottery reserves the right, with adequate notice to the Contractor, to pay the bill directly and to offset the amount thereof from the next payment(s) due the Contractor. Any such offset/deduction shall not waive or diminish any of the AZ Lottery’s rights against the Contractor.
4. STRATEGIC SERVICES/PLANS
4.1. The Contractor shall work with the AZ Lottery to develop an annual integrated Marketing Plan in the time frame reasonably required by the AZ Lottery. The final Marketing Plan must be approved by the AZ Lottery, and must:
4.1.1. Incorporate the sales, net revenue, and marketing initiatives selected by the AZ Lottery;
4.1.2. Include a detailed outline of all integrated campaigns or plans during each State Fiscal Year;
4.1.3. Provide budget estimates of proposed spending related to each initiative, including costs for recommended media and creative production;
4.1.4. Be reviewed by Contractor and the AZ Lottery at least once per quarter and revised as required by changes in initiatives, strategies, budget, and market conditions, or as directed by the AZ Lottery; and
4.1.5. Be based on credible research developed under section 9, Research Services, herein.
4.2. The Contractor shall work with the AZ Lottery to develop short and long term strategic plans, as defined herein or as reasonably requested by the AZ Lottery, which must be integrated into the Marketing Plan.
4.2.1. These plans will consist of:
4.2.1.1. A research plan.
4.2.1.2. A public relations plan for communications, including, but not limited to:
4.2.1.2.1. Press releases;
Scope of Work State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 7 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
4.2.1.2.2. State-wide winner awareness plan;
4.2.1.2.3. A corporate, community or public service outreach plan, outlining distribution/placement of materials; and
4.2.1.2.4. A trade outreach plan, outlining collateral creation and development, including press kits, releases, brochures, flyers, and broadcast segment outlines.
4.2.1.3. A media advertising plan per individual initiatives. It is highly desirable that the media plans include:
4.2.1.3.1. Allocation of dollars by media and designated market area (“DMA”) with detailed rationale;
4.2.1.3.2. Gross rating point (“GRP”) objectives with reach/frequency and efficiency analysis; and
4.2.1.3.3. Detailed media flowchart that specifies mediums, market tiers, GRP levels, number of spots, estimated impressions, and costs for each campaign.
4.2.1.4. A web-based interactive media plan, which may include sub-plans for individual initiatives and which shall include a mixture of paid advertising, search engine and key word optimization.
4.2.1.5. Social media marketing plan, which may include, but is not limited to, Facebook, Twitter, and Instagram.
4.3. Strategic plans should be based on the State Fiscal Year (FY) (July 1 – June 30). All plans must support strategic direction, set forth specific objectives, outline measurable results, and include detailed rationale, time frames, budgets, in-depth analysis, and recommendations.
5. ACCOUNT SERVICES
5.1. Account Services Staff. All Contractor staff assigned to AZ Lottery’s account shall be approved by the AZ Lottery. The Contractor shall provide an outline (organization chart) of staff assigned to the AZ Lottery indicated by area of specialization, including delineation of duties and percentage of time allocated to the AZ Lottery account per Contractor account representative (“Account Services Staff”). The outline shall be updated upon a change in Contractor’s personnel and/or upon the AZ Lottery’s request, within two (2) business days of the change or request.
5.1.2. The term “Account Services Staff” includes “Account Management Staff,” as defined below. Account Services Staff (in conjunction with key AZ Lottery personnel) shall develop and maintain a Graphic Standards manual. All Account Services Staff working on the AZ Lottery account shall be required to thoroughly familiarize themselves with the key brand logos, marks, elements, taglines, legal language, boilerplates, and other key brand items. New Account Services Staff must attain the same level of familiarization within the first two (2) weeks of any new Account Services Staff changes or hires.
5.1.3. Upon award of the Contract, Account Services Staff assigned to the AZ Lottery account will be required to spend a day in the field with AZ Lottery Territory Managers. Additional field visits will be scheduled on a twice annual basis. The purpose of these visits is for Account Services Staff to listen to retailer comments, review POS materials, and stay intimately familiar with the environment in which POS and signage are presented and intended to be effective.
5.1.4. Designated Account Services Staff shall meet regularly (not less than quarterly) with AZ Lottery management executives to evaluate, develop, and discuss ongoing and future programs, plans, and strategies.
Scope of Work State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 8 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
5.1.5. Account Services Staff must have strong abilities in the areas of:
5.1.5.1. Resource management expertise, as well as the ability to ensure the highest quality work from third party vendors;
5.1.5.2. Ability to control costs and achieve cost savings while ensuring the highest standards and quality possible, consistent with budget constraints;
5.1.5.3. Ability to deal effectively and responsibly with AZ Lottery marketing staff, present ideas clearly, and listen and be responsive to communications from the AZ Lottery; and
5.1.5.4. Expertise in providing all Advertising Services.
5.1.6. The Contractor may be expected to assign one member of Account Services Staff or a student intern as a full- time, on-site assistant to the internal AZ Lottery marketing team upon request by the AZ Lottery. Manner and schedule of providing services will be left to the Contractor.
5.1.7. A senior representative from the Account Services Staff or other senior level designee approved by the AZ Lottery will be required to provide reports and presentations to the AZ Lottery Commission and attend Commission meetings.
5.1.7.1. Additional members of Account Services Staff may also be required to attend monthly commission meetings and be prepared to answer questions as they arise.
5.2. Account Management Services. The Contractor shall provide sufficient and solely dedicated project managers (“Account Management Staff”) to supervise the work of the Account Services Staff to ensure that requirements of the Scope of Work and that the AZ Lottery’s daily needs are met.
5.2.1. Account Management Staff must have strong project management skills for all Advertising Services initiatives, ensuring that all deadlines and deliverables are met.
5.2.2. Account Management Staff must have the ability to handle the volume of accounting and business functions associated with annual multi-million dollar account billings with accurate record keeping and communication.
5.3. Relevant Account Management or Account Services Staff shall conduct weekly staff meetings and shall hold regularly scheduled creative meetings (with the AZ Lottery creative team present) with the AZ Lottery. During these meetings, there will be discussions regarding scheduling and planning, concept approvals, pre-production of advertisements, Point of Sale (POS) or other Contractor-produced materials. Additional meetings shall be held with AZ Lottery personnel as required by the AZ Lottery.
6. BUSINESS ACCOUNT SERVICES
6.1. The Contractor shall be required to enter into agreements with third parties to provide sponsorships, promotions, or special event opportunities or services under this Scope of Work, or to provide other materials and services to the AZ Lottery that are related to Advertising Services under the Contract (“Service Agreements”). No Service Agreement will be entered by the Contractor until the Contractor has satisfied all terms in the Contract or stipulations of the AZ Lottery that require that the Contractor demonstrate to the AZ Lottery’s satisfaction the value of the opportunity, materials or services subject to the Service Agreement. The terms of Service Agreements are subject to prior approval by the AZ Lottery, and shall include a term that the AZ Lottery is not a party to the Service Agreement, but is a third-party beneficiary of the Service Agreement. As a party, the Contractor will be primarily responsible for payment of fees and costs under such Service Agreements, and shall bill the AZ Lottery for those fees and costs, which may include reimbursement for any taxes paid by Contractor on the goods or services (exclusive of income taxation of Contractor), but may not include any mark-up or late fees. The AZ Lottery shall not be responsible for payment of additional fees,
Scope of Work State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 9 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
losses, costs or expenses that may result from the Contractor’s agreement in a Service Agreement to indemnify the other party, to pay for late fees, or to provide insurance certificates to the other party.
6.2. Contractor shall negotiate on behalf of the AZ Lottery to secure the lowest available rate that will best achieve AZ Lottery objectives. The Contractor shall obtain competitive bids and prepare cost estimates for all advertising and related production products, services and supplies from third-party vendors as it relates to this Contract. The Contractor must obtain for the AZ Lottery’s approval at least three (3) competitive bids for all purchases, including aggregate purchases from the same vendor, which would amount to five thousand dollars ($5,000) or more in one State Fiscal Year. In case of emergency, time constraints, a sole source provider, or when competition is impracticable, a letter explaining the details and the attempt to provide the most competition that was practicable must be submitted to the AZ Lottery. The AZ Lottery shall determine, in its sole discretion, whether the competitive bid requirement can be waived prior to issuance of a Service Agreement.
6.2.1. The Contractor shall publish the request for proposal on the Contractor’s website all purchases including aggregate purchases from the same vendor that would amount to $5,000 or more in a year. The posting of the request for proposal shall be available on the Contractors website for a period not less than ten (10) business days and the deadline for submission shall not be shorter than ten (10) business days from the date of the first posting. The Contractor shall determine other rules regarding submission and consideration of all bids received, but shall be guided by the principle that the process should provide the best competition practicable for the Lottery. Such rules, deadlines, and other criteria shall also be posted on the Contractor’s website contemporaneously with the posting of the request for proposal.
6.2.2. Any vendor from which aggregate purchases from that vendor that would amount to $50,000 or more in a year shall be defined as a “Large Vendor.” The Contractor must provide to the Lottery a written explanation justifying to the Lottery why it is more competitive and in the Lottery’s best interest to make purchases from an out-of-state Large Vendor instead of an in-state Large Vendor, prior to concluding any agreement with that Large Vendor. If a vendor is domiciled in Arizona, that vendor may be considered to be an “in-state” vendor.
6.2.3. For each Large Vendor, the Contractor must reinitiate the procedures set forth in this section on an annual basis. The Lottery’s approval of the selection of a vendor will only be valid for the State Fiscal Year in which the approval was received by the Contractor.
6.3. The Contractor shall ensure that total invoices from third-party vendors for services and products do not exceed approved estimates. Payment for any costs or charges that exceed approved estimates shall be the sole responsibility of the Contractor and shall not be paid by the AZ Lottery.
6.4. The Contractor shall ensure that any marketing product or service that is paid for by the AZ Lottery is received from a vendor in a timely manner and in compliance with any agreements with the vendor. Documentation of timely performance of vendors, such as affidavits or tear sheets, will be required, as directed by the AZ Lottery.
6.5. The Contractor must notify the AZ Lottery before approving any replacement for marketing that did not run as scheduled. All such documentation shall be maintained by the Contractor and shall be available for inspection by the AZ Lottery or authorized AZ Lottery representatives within twenty-four (24) hours of a request for the materials.
6.6. The Contractor shall not, either verbally or in writing, commit the AZ Lottery to any purchase without the AZ Lottery’s written preapproval. In negotiating purchases, the Contractor shall make the AZ Lottery aware of any cost savings that might be achieved through long-term commitments or other special programs and any savings shall be passed on to the AZ Lottery.
6.7. The AZ Lottery may at any time cancel, at no cost, any purchase previously authorized when the vendor will accept such cancellation without financial penalty. The AZ Lottery may, in its sole discretion, also cancel any purchase previously authorized for which there is a cancellation penalty, but such penalty shall be paid by the AZ Lottery.
Scope of Work State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 10 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
7. MULTI-CULTURAL SERVICES
7.1. The AZ Lottery has a diverse customer and retailer base and seeks to reach those audiences in meaningful ways. The Contractor must include Spanish-speaking and multi-cultural staff to assist with all multi-cultural outreach efforts and projects. Translation services may include translation in multiple languages, terminology creation and management, editing, proofreading, studio linguistic advising and post-processing, and cultural review. These services must be available on request.
8. REPORTING SERVICES
8.1. Account services staff shall provide reports as required by the AZ Lottery, which include, but are not limited to, the following:
8.1.1. Weekly status reports to provide accurate, detailed information on all projects in process, including individual project and initiative timelines;
8.1.2. Detailed notes and action items (recap reports) shall be provided after all AZ Lottery meetings with the Contractor;
8.1.3. On a quarterly basis, a written overview of current industry trends and advertising campaigns shall be prepared and presented, along with samples of interesting, applicable work and best practices from other lotteries (the entire Account Services Staff will be required to attend these presentations); and
8.1.4. Other reports as required by the AZ Lottery, for example, budget reports as outlined in section 3, Budget, year-end summaries of spending by game category by media, quarterly evaluation of the value of bonus spots achieved through negotiations, special reports on specific markets or programs, reports on the acceptance and usage of public service announcements by the media, pre-initiative analysis, post-initiative analysis, or point-of-view white papers.
8.1.5. For every proposed initiative, the Contractor must provide a written pre-initiative analysis to evaluate the basis of the recommendation, and to weigh the strategic benefits against the costs and risks of the initiative.
8.1.6. Within thirty (30) days of the completion of an initiative, the Contractor must provide a written post-initiative Return-on-Investment (ROI) value analysis focusing on the effectiveness of the initiative in terms of sales levels, cost, reach, continuity, and overall message effectiveness. Such analysis must include a recommendation based on cost versus actual value in context with future AZ Lottery objectives and strategies.
8.1.7. Within sixty (60) days before the end of each State Fiscal Year and on December 1 of each State Fiscal Year, the Contractor shall supply a list of current Subcontractors, with itemization of the activities performed by those Subcontractors, which shall be updated within ten (10) days of any change.
9. RESEARCH SERVICES
9.1. The Contractor shall provide Research Services, in order to improve advertising, marketing, and product development. Research Services are defined as (a) utilizing current relevant third-party research to develop strategies for marketing AZ Lottery products; and (b) recommending, designing, implementing, managing, and analyzing research projects and results, which will determine program effectiveness and gauge changes in target audience attitudes and perceptions.
9.2. Research Services shall include, but are not limited to: monthly tracking studies, focus group research, consumer segmentation studies, media research, psychographic behavior studies, and advertisement concept testing.
Scope of Work State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 11 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
9.3. The Contractor may use a Subcontractor to provide approved Research Services, but the Contractor shall retain responsibility for managing subcontracted research projects on behalf of the AZ Lottery. Contractor may be required to work with AZ Lottery-designated subcontractors to continue research in progress at initiation of Contract.
9.4. The results, materials, and databases generated by Research Services shall be considered to be intellectual property owned by the AZ Lottery under the standard ownership of intellectual property provisions of the AZ Lottery’s Uniform and Special Terms and Conditions.
10. CREATIVE DEVELOPMENT AND PRODUCTION SERVICES
10.1. Under the direction of the AZ Lottery, the Contractor shall be responsible for the creation and production of effective advertising materials and services (“Creative Services”), including, but not limited to:
10.1.1. Television, radio, interactive/web, out-of-home, print materials;
10.1.2. POS materials, including posters, wobblers, banners, brochures, game flyers, clings, toppers, pole signs, etc.;
10.1.3. Images and advertisements for use on the AZ Lottery or partner website and social media (Facebook, Twitter, YouTube, Instagram, etc.);
10.1.4. Promotional and sponsorship materials, including posters, flyers, clings, banners, digital elements, and promotional gifts;
10.1.5. As requested, game name creation, ticket design, trademark design and clearance;
10.1.6. Research, clearance and procurement of the rights to use intellectual property (“IP”), whether that IP belongs to the AZ Lottery (i.e., Contractor must obtain a reputable legal opinion that all trademark designs created by Contractor for the AZ Lottery are researched and cleared for legal use by the AZ Lottery) or to third-parties (i.e., Contractor must negotiate for and obtain the right to use all third-party licensed properties); and
10.1.7. Materials and services in support of multimedia campaigns or other initiatives and promotions identified in the Marketing Plan.
10.2. The Contractor shall be responsible for offering at least three (3) alternative campaign concepts rather than only one creative solution to a particular game, promotion or initiative. Each concept shall reflect a distinctly different tone, approach, and style.
10.3. The AZ Lottery will adopt detailed production schedules for developing, presenting, and refining Creative Services. Such production schedules will outline the milestones and deadlines for Creative Services, such as presentation, obtaining final approval, editing and revising a selected option, and producing and distributing the finished product. Creative services must comply with AZ Lottery specifications and production schedules.
10.4. The Contractor must obtain written approval from the AZ Lottery prior to producing any Creative Services products or materials. When producing any creative work, the Contractor shall not vary from approved scripts, storyboards, or print layouts without AZ Lottery approval. Failure to adhere to approved scripts, storyboards, or layouts may void the AZ Lottery’s approval of the estimate for the project. The Contractor shall be liable for all costs if Creative Services products or materials are executed in a manner not consistent with the AZ Lottery’s approval. The AZ Lottery will not be responsible for payment of overtime on any project that has not been pre-approved by the AZ Lottery.
10.5. All casting and talent selection shall be pre-approved by the AZ Lottery, exercising its sole discretion. If actors or other talent are needed for an advertising project, the Contractor shall: (a) obtain the most cost-effective talent in compliance with Screen Actors Guild (SAG) or American Federation of Radio and Television Artists (AFTRA) requirements; (b) recommend extended talent cycles and buyouts in cases when additional uses of advertisements and their components are anticipated and approved in advance by the AZ Lottery; (c) utilize talent who are not covered
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by collective bargaining agreements whenever possible; (d) negotiate the best possible rate for talent and provide written justification as to why the negotiated compensation package is reasonable; (e) ensure that selection of talent will be reflective of the population of Arizona as a whole, and (f) select Arizona-based talent whenever possible.
10.6. The Contractor must oversee and supervise all aspects of the broadcast production process by third party production services.
11. PUBLIC RELATIONS/CORPORATE COMMUNICATION SERVICES
11.1. The Contractor shall be responsible for providing consultation, drafting services, and public appearance services to the AZ Lottery with regard to public relations and corporate communications and will assist in the development of short- and long-term strategic communications plans (“PR Services”). PR Services shall include planning, development, training, implementation, or support of various communications efforts, including communications with news media. Such planning, development, training, implementation, or support may include, but is not limited to, the following areas of need:
11.1.1. Public relations management, communications and presentations, including publicity gained through promotional initiatives and optimization of opportunity-based promotional efforts (“Earned Media”);
11.1.2. Crisis communications;
11.1.3. Winner awareness programs and communications;
11.1.4. Responsible gaming/problem gaming education and awareness communications and programs as directed by the AZ Lottery;
11.1.5. Corporate, community or public service outreach programs, including distribution/placement of materials;
11.1.5.1. With regard to public service announcements, the Contractor shall be required to develop low- cost informational materials that will be acceptable to all types of media outlets (television, radio, outdoor, digital, print media, etc.) to run at no charge to the AZ Lottery.
11.1.6. Trade outreach programs, including collateral creation and development including press kits, releases, brochures, flyers, and broadcast segment outlines;
11.1.7. Promotional programs in support of events, product launches, and product awareness;
11.1.8. Interactive and social media programs;
11.1.9. Strategic initiatives;
11.1.10. Public appearances, press conferences and press releases, including those occasioned by high volume of traffic, jackpot rollover, or jackpot winners;
11.1.10.1. It will be expected that a draft of a press release will be provided to the AZ Lottery within no more than two (2) hours from notification from the AZ Lottery to the Contractor of the need for the press release. In addition, it will be expected that, once the draft is approved by the AZ Lottery and returned to the Contractor, it must be released to the media within one (1) hour, unless otherwise directed by the AZ Lottery.
11.1.11. Talking points and media training for AZ Lottery staff;
11.1.12. Beneficiary communications proposals;
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11.1.13. Internal and external memoranda or publications regarding AZ Lottery initiatives and business developments; and
11.1.14. Public Service Awareness outreach plan and distribution/placement of materials.
12. MEDIA STRATEGY AND PLANNING SERVICES
12.1. The Contractor shall be responsible for providing consultation, drafting services, and public appearance services to the AZ Lottery with regard to media advertising and will assist in the development of short- and long-term media advertising plans (“Media Services”). The planning, development, training, implementation, or support of various media advertising efforts, include, but are not limited to, the following areas of need:
12.1.1. Communication with media advertising partners, and evaluation of sponsorship opportunities available to the AZ Lottery via media outlets, sports organizations/arenas, special events, concert venues, etc.;
12.1.2. Negotiation, purchase, instruction, and delivery of materials for placement of media time and space;
12.1.3. Utilization of bonus spots, and/or added value promotions from all radio and TV stations based on estimated spending over each Contract quarter;
12.1.4. On-going real time sales analysis and adjustment to media plan according to such analysis; and
12.1.5. Electronic signage and other outdoor media contracts (upon AZ Lottery approval, execution and management of outdoor strategies and contracts).
12.2. The Contractor shall document the process of selecting media outlets to the AZ Lottery.
12.3. The Contractor shall establish a goal for the number of bonus spots or other value-added promotions. Any such bonus spots or value-added promotions provided by participating stations must be identified in the post-initiative ROI analysis of the media buy, and the value must be calculated as a savings to the AZ Lottery.
13. DIGITAL SERVICES
13.1. The Contractor shall be responsible for Web-based Interactive Services as directed by the AZ Lottery, defined as activities related to the internet that may include, but are not limited to:
13.1.1. Creative development, modification, and maintenance of the responsive AZ Lottery website (potentially including mobile websites);
13.1.2. Development of player retention and new player acquisition strategies and plans;
13.1.3. Management of email marketing program with a third-party vendor to include strategy, creative development, database acquisition, and post-activity analysis;
13.1.4. Social Media strategy and planning and management of daily social media activity;
13.1.5. Conducting research and surveys to gain knowledge regarding user behavior, and to provide recommendations regarding strategy shifts; and
13.1.6. Discovery or creation of co-promotional opportunities with retailers, beneficiaries, and sponsor-affiliated websites.
13.2. The Contractor must be able to provide Digital Services that are compatible with current AZ Lottery digital platforms and operating systems; or, at its expense, must obtain training specific to the AZ Lottery digital platforms. For example, the AZ Lottery’s current website utilizes the Sitecore platform. The design of the Marketing Plan must
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include strategies for site analytic functions that utilize the AZ Lottery’s current digital platform to optimize the website user’s experience.
13.3. The Contractor may be responsible for communicating with vendors on behalf of the AZ Lottery and evaluate all potential Digital Services opportunities. If the AZ Lottery is contacted by a company offering Digital Services opportunities, the AZ Lottery may direct the inquiring party to the Contractor.
13.4. The Contractor shall be responsible for the negotiation, purchase, instruction, and delivery of materials for the placement of digital media time and space.
13.5. The AZ Lottery will have the sole discretion to approve the selection of media outlets. The Contractor shall provide documentation of the process for selecting interactive media outlets to the AZ Lottery prior to the approval and selection by the AZ Lottery of such outlets.
14. SPECIAL EVENTS SERVICES
14.1. The Contractor shall be responsible for providing assistance in designing, developing, and implementing sponsorships, promotions, and special events (“Special Event Services”). Special Event Services include, but are not limited to:
14.1.1. Identifying opportunities, planning, development, and executing tasks necessary to develop retailer and consumer sponsorships, promotions, and special events, including but not limited to pricing, staffing, collateral development and production, working in tandem with third-party vendors; and
14.1.2. Reviewing, evaluating, and providing recommendations regarding Special Event opportunities.
14.2. The Contractor must provide a promotions team (the “Street Team”), staffed by the Contractor or a third-party provider. Staffing of the Street Team by a third-party provider requires approval of the expenditure by the AZ Lottery. The Street Team will be responsible for the coordination, production, activation, and staffing of functions at retailers, community and special events, sponsorships, and other promotions.
14.2.1. The Street Team may be required to transport and deliver promotional Materials and equipment to promotional sites. Such duties include, but are not limited to: towing the AZ Lottery sales trailer (the “Trolley”); transportation of staff; transportation of promotional equipment and prizes; and installing and de- installing promotional Materials. The Street Team will be responsible for maintaining the condition of AZ Lottery property in good repair.
14.2.2. The Contractor must provide a vehicle, which: (a) must be maintained at the Contractor’s expense, (b) is capable of transporting staff and promotional Materials to promotional sites and towing the Trolley; and (c) will be stored at the Contractor’s location. The vehicle must be wrapped with AZ Lottery-branded Materials, as approved by the AZ Lottery.
14.2.3. The Contractor must solicit and develop joint promotional and cross-promotional opportunities leveraging existing networks, relationships, and sponsorships. Contractor will be expected to negotiate and oversee the number of corporate cross-promotional programs set by the AZ Lottery each year.
14.2.4. The Contractor may, in the sole discretion of the AZ Lottery, be reimbursed for actual unexpected expenses that are not included in the approved quoted price and that are incurred as a result of the Contractor’s performance of Special Event Services when itemized invoices are submitted according to billing and procurement requirements.
15. RETAILER STRATEGY SERVICES
15.1. In providing Retailer Strategy Services, the Contractor will be expected to obtain and maintain thorough familiarity with the AZ Lottery’s current position within the retailer industry. Retailer Strategy includes, but is not limited to:
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15.1.1. Development of a strong retailer optimization strategy and associated tactics to ensure AZ Lottery is maximizing exposure and merchandizing potential with retailers;
15.1.2. Design and production of integrated POS materials for AZ Lottery games and promotions;
15.1.3. Development and maintenance of a POS retailer calendar and library to ensure all available tools are being utilized;
15.1.4. Mastery of retail/POS trends and best practices from other state lotteries (the Contractor shall be required to present new ideas and opportunities to the AZ Lottery on a quarterly basis, as required by Section 8.1.3);
15.1.5. Development of retailer communication pieces including, but not limited to: newsletters, brochures, new player folders, check presentation folders, premium items, sales kits, how to play guides, new product info/sell-in sheets, interactive tutorials, etc.;
15.1.6. Upon request by the AZ Lottery, subcontracting with a third party to provide retailer relationship strategic guidance, along with specialized corporate account development and support; and
15.1.7. Design of electronic sales and promotional messaging for retailer terminals, working in conjunction with AZ Lottery contractor(s) who provide retailer terminals.
16. OTHER DESIGN, PRODUCTION OR ADVERTISING SERVICES
16.1. Other Design, Production or Advertising Services will include, but may not be limited to:
16.1.1. Designing, delivering, and placing promotional items required and approved by the AZ Lottery (examples of promotional items that may be required by the AZ Lottery are AZ Lottery-branded t-shirts, key chains, hats, etc., that can be used as retailer or consumer promotional prizes);
16.1.2. Provision of all materials or services needed for Special Events, such as equipment, materials, signage, and services (an example of such materials is a banner; and examples of such services are transportation, storage, assembly and disassembly of Special Event materials);
16.1.3. Development of cooperative advertising programs or promotions with corporate or retailer partners, together with related services and materials;
16.1.4. Contractor is required to keep up-to-date on industry standards and activity. Participation in training and trade shows is expected to maintain a current knowledge base.
16.1. 5. Procurement of items or services not specifically identified in, but related or similar to those identified requirements stated in the Scope of Work (including, but are not limited to: consultative services for public affairs, crisis management, and production assistance), which must be pre-approved by the AZ Lottery. Costs for these additional services will be billed directly to the AZ Lottery without markup. Pricing for optional or alternative services must be included in Response Form 4 - Price Sheet.
16.1.6. Attendance for a maximum of two (2) AZ Lottery staff members to attend no more than three (3) AZ Lottery- related conventions, trade shows, educational seminars, special events or meetings (“Industry Events”) on an annual basis as designated by the AZ Lottery shall be included in the proposal. It is preferred that the Contractor also send up to two (2) members of Contractor staff to accompany AZ Lottery staff who are attending selected Industry Events. Industry Events are those marketing retreats, strategic planning sessions, trade shows, or educational opportunities that are relevant to the lottery industry. Industry Events include, but are not necessarily limited to, the NASPL annual convention and the La Fleur’s Lottery Conclave and Interactive Summit. The cost of AZ Lottery-staff attendance at Industry Events under this provision should be factored into and itemized on the Contractor’s proposal. Under this provision, the Contractor would
Scope of Work State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 16 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68 be responsible to pay costs for registration, travel, lodging, and per-diem payments at government rates of AZ Lottery staff.
Special Terms and Conditions State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 17 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
1. Definitions
1.1. ProcureAZ terms. ProcureAZ (https://procure.az.gov) is the State’s online eProcurement system. Although the system was configured for the State’s needs, the application is based on a commercial product known as BuySpeed Online, made by Periscope Holdings, Inc. As a result, some of the terms used in the BuySpeed Online application may be semantically different to similar terms used by the State. The following terms are as they appear in BuySpeed Online (and ProcureAZ), along with their corresponding meanings as they apply to the solicitation.
1.1.1. “A.A.C.” is the abbreviation for the Arizona Administrative Code.
1.1.2. “Actual Cost” means the total value of all items and their extended quantities.
1.1.3. “Advertising Services” for purposes of this Solicitation is the provision of budget management, strategic plan development, account management, multicultural, research, creative, public relations, media, digital, special events, retailer merchandising, and all other related Services detailed in the Scope of Work.
1.1.4. “A.R.S.” is the abbreviation for Arizona Revised Statutes.
1.1.5. “AZ Lottery” is the Arizona Lottery. The term “AZ Lottery” shall encompass the State.
1.1.6. “Catalog ID” is an optional data field and means an identification number to signify a group of related contracts.
1.1.7. “Contact Instructions” means the contact information for the procurement officer.
1.1.8. “Contract Officer Representative” is the using agency personnel designated by the State Procurement Office to handle daily Contract administration, after the award of the Contract.
1.1.9. “Days ARO” means the number of days ‘After Receipt of Order’ in which the customer will receive the ordered materials and/or services.
1.1.10. “Department” means the AZ Lottery.
1.1.11. “Draw game” is an AZ Lottery game where tickets are purchased through a network of computer terminals located at retail locations. The terminals are connected to a central computer that controls and records all game functions.
1.1.12. “Drawing” is the formal process of selecting winning numbers which determine the number of winners for each prize level of a draw game.
1.1.13. “Entered Date” means the date that the Contract was awarded, not necessarily the date the Contract starts, e.g., Master Blanket/Contract Begin Date.
1.1.14. “Fiscal Year” means the State Fiscal Year in which the solicitation was initiated. In the event of Contract(s) resulting from the solicitation, the Fiscal Year shall remain unchanged.
1.1.15. “Header Information” means the section of the solicitation or Contract, as displayed in ProcureAZ, containing solicitation or Contract information other than the line items.
1.1.16. “Item information” means the section of the solicitation or Contract, as displayed in ProcureAZ, containing the solicitation or Contract line items.
Special Terms and Conditions State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 18 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
1.1.17. “La Fleur’s” The business name of a publication and other lottery services, such as conferences, provided by TLF Publications, Inc., a private publishing and conference management firm devoted to the lottery industry.
1.1.18. “M” is an abbreviation for million.
1.1.19. “Master Blanket/Contract Begin Date” means the date that the Contract starts.
1.1.20. “Master Blanket/Contract End Date” means the date that the Contract ends.
1.1.21. “Master Blanket/Contract End Date (Maximum)” means the date that the Contract may be extended through if all allowable term extensions are exercised.
1.1.22. “Master Blanket/Contract Vendor Distributor List” means the list of companies authorized to distribute the materials and/or services on behalf of the Contractor under the Contract.
1.1.23. “Master Blanket Purchase Order” means the Contract, indicating that the Contract will be in effect over a stated period of time.
1.1.24. “May” indicates something that is not mandatory but permissible.
1.1.25. “Media” has multiple meanings depending upon the context in which it is used. In reference to data, media means the physical mechanism used for data storage or memory (e.g., tapes, CD, DVD, hard disk). In reference to advertising services, media may mean: (a) the materials used to create advertising or (b) a method of mass communication, such as television, telephone, radio, print, outdoor advertising, or the Internet.
1.1.25.1. “Media Buy” means the purchase of mass communication media.
1.1.26. “Minor Status” is an optional data field and means a type of status indicator of the Contract in ProcureAZ.
1.1.27. “MUSL” is the Multi-State Lottery Association, a government-benefit association wholly owned and operated by party lotteries.
1.1.28. “NASPL” is the North American Association of States and Provincial Lotteries.
1.1.29. “Offer” is a bid, proposal, or quotation provided in response to the Solicitation.
1.1.30. “Offeror” is a vendor who responds to the Solicitation.
1.1.31. “Pass-through costs” are defined as costs incurred by the Contractor for a product or service that are passed on to the AZ Lottery, without markup or any additional fees.
1.1.32. “Payment Terms” means the period of time that payment is due after receipt of an accurate invoice.
1.1.33. “Pcard Enabled” is an optional data field and means that customers are allowed to use their purchasing card (P-Card or Pcard) to order from the Contract within the ProcureAZ system.
1.1.34. “PO Acknowledgement” means the list the notifications to the Contractor and their acknowledgements of these notices.
1.1.35. “PO Type” means the period of time that the Contract is in place, either a one-time transaction, Open Market, or for a stated period of time, Blanket.
Special Terms and Conditions State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 19 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
1.1.36. “Print Format” means the format of the solicitation or Contract print output.
1.1.37. “Purchase Order” means Contract.
1.1.38. “Purchase Order Number” means the Contract’s identification number.
1.1.39. “Receipt Method” means the method by which materials and/or services under the Contract are received, either by amount spent, Dollar, or by item units, Quantity.
1.1.40. “Release Number” means the order number of each order under the Contract. The Master Blanket/Contract will always reflect a zero “0” release number.
1.1.41. “Release Type” means the process that orders under the Contract are subject to within ProcureAZ, requiring approval on an order-by-order basis, e.g., Standard Releases or not requiring approval, e.g., Direct Release.
1.1.42. “Request for Proposal or RFP” is synonymous with “Solicitation.”
1.1.43. “Retainage %” is an optional field and means the amount of the Contract’s value that is retained.
1.1.44. “Shall / must” indicates a mandatory requirement. Failure to meet mandatory requirements may result in the rejection of a proposal as non-responsive.
1.1.45. “Shipping Method” means the method of shipping to be used under the Contract.
1.1.46. “Shipping Terms” means the point where the Contractor will ship the materials and/or services to, and if accepted, the point when responsibility and title passes from the Contractor to the State.
1.1.47. “Short Description” means the Contract title.
1.1.48. “Should” indicates something that is recommended but not mandatory. If the Offeror fails to provide recommended information, the AZ Lottery may, at its sole option, ask the Offeror to provide the information or evaluate the proposal without the information.
1.1.49. “Software” is the compilation of electronic programs and other operating information used by a computer.
1.1.50. “Solicitation” is the State’s invitation to Offerors to bid on the Contract, and is synonymous with “Request for Proposal or RFP.”
1.1.51. ”Solicitation Amendment” is a written document that is signed by the Procurement Officer and issued for the purpose of making changes to the Solicitation.
1.1.52. “Status” means the availability of the Contract within ProcureAZ for ordering, e.g., Sent status.
1.1.53. “Subcontractor” is any person who, or entity that, has a Subcontract with the State under this Solicitation.
1.1.54. “Tax Code”, if applicable, means the amount of taxes, expressed as a percentage, to be added to all items purchased under the Contract. As items may be subject to differing tax rates, this field may be blank.
1.1.55. “Terminal” is a device authorized by the AZ Lottery to function in an online, interactive mode with the AZ Lottery’s computer system for the purpose of issuing AZ Lottery tickets and entering, receiving,
Special Terms and Conditions State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 20 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
and processing AZ Lottery transactions, including purchases, validating tickets, and transmitting reports.
1.1.56. “Validation” is the confirmation of whether a ticket is a winner or not.
1.1.57. “Vendor” means Contractor.
2. CONTRACT ADMINISTRATION AND OPERATION
2.1. The Contract between the State of Arizona and the Contractor shall consist of the Solicitation as amended, any requests for clarifications and/or best and final Offers, the proposal submitted by the Contractor, their responses to any requests for clarifications and/or their best and final Offer. In the event of a conflict in language between the documents referenced above, the provisions and requirements set forth and/or referenced in the Solicitation as amended shall govern. However, the State reserves the right to clarify any contractual requirement in writing, and such written clarification shall govern in case of conflict with the applicable requirements stated in the Solicitation as amended or the Contractor's proposal. In all other matters not affected by the written clarification, if any, the Solicitation shall govern.
2.2. Following award, the Contractor shall contact the Contract Officer Representative for guidance or direction in matters of contract interpretation or problems regarding the performance, terms, conditions, or scope of the Contract.
3. TERM OF CONTRACT
3.1. The term of any resultant Contract shall commence on date of award and will continue for a period of two (2) years thereafter, unless terminated, canceled or extended as otherwise provided herein. The Contract shall not bind nor purport to bind, the State for any contractual commitment in excess of the original Contract period.
4. CONTRACT EXTENSIONS
4.1. By mutual written Contract amendment, any resultant Contract may be extended for three (3) additional one- year periods, such that the supplemental periods with a maximum aggregate including all extensions not to exceed five (5) years.
5. ELIGIBLE AGENCIES
5.1. This Contract shall be for the exclusive use of the AZ Lottery.
6. NON-EXCLUSIVE CONTRACT
6.1. This Contract has been awarded with the understanding and agreement that it is for the sole convenience of the State. The State reserves the right to obtain like goods or services from another source when necessary. Off-Contract purchase authorization(s) may be approved by either the AZ Lottery (within its delegated authority) or by the State Procurement Office. Approvals shall be at the exclusive discretion of the State and shall be final. Off-Contract procurement shall be consistent with the Arizona Procurement Code or the AZ Lottery Procurement Code.
6.2. Contractor shall fully cooperate and carefully coordinate its work with the work of other contractors. The Contractor shall not commit or permit any act which will interfere with the performance of work by any other contractor.
7. CONTRACT TYPE
This shall be a Firm Fixed-Price Contract.
Special Terms and Conditions State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 21 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
8. MULTIPLE AWARDS
In order to ensure adequate coverage of the requirements of AZ Lottery, multiple awards may be made.
9. CONTRACT MODIFICATIONS/AMENDMENTS
9.1. Any change in the Contract, including but not limited to the Scope of Work described herein, whether by modification or supplementation, must be accomplished by a formal contract amendment signed and approved by and between the dully authorized representatives of the Contractor and the Arizona State Procurement Office. The Contractor expressly and explicitly understands and agrees that no other method nor other document, including correspondence, acts, and oral communications by or from any person, shall be used or construed as an amendment, modification, or supplementation to the Contract.
9.2. Contractor agrees to make changes in a timely manner in such instance where the State of Arizona or federal legislature enacts legislation that impacts AZ Lottery and require such changes.
9.3. The Procurement Officer may modify at any time, by written order, and without notice to the sureties, the general scope of this Contract in any one or more of the following ways:
Description of services to be performed as it relates to advertising services and the Scope of Work defined herein;
Time of performance (i.e., hours of the day, days of the week);
Place of performance of the services;
Drawings, designs or specifications, if supplies to be furnished are to be specially manufactured for the AZ Lottery in accordance with the drawings, designs or specifications;
Method of shipment or packing of supplies; and
Place of delivery.
9.3.1. If any such modification causes an increase or decrease in the cost of, or the time required for the performance of any part of the work under this Contract, whether changed or not changed by the order, the Procurement Officer shall consider an equitable adjustment in the Contract price, the delivery schedule or both.
9.3.2. The Contractor must assert its right to a price adjustment under this clause within thirty (30) days from the date of receipt of the written order.
9.4. The State may clarify the Contract following award. This clarification shall not substantially alter the contents of the Contract, but shall only edit and reformat the Contract in a manner that will facilitate ease of use, Contract administration, and performance of the parties.
9.5. Any Contract Amendment shall specify an effective date, any increases or decreases in the amount of the Contractor’s compensation, if applicable, and shall be signed by the Contractor and the Procurement Officer.
10. GOOD FAITH COOPERATION WITH THE STATE
10.1. The Contractor shall cooperate fully, in good faith, with the State as may be required in the performance of this Contract. This shall include attendance at meetings, discussion, and hearings, as may be required; presentation of data, as may be requested from time to time by the State to effect such cooperation; and
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compliance with all directives issued by the State. The Contractor shall not commit or permit any act which will interfere with the performance of work by State employees.
11. TERMINATION/SUSPENSION
11.1. The Contract may be terminated at any time by the Contractor with mutual consent of both the Contractor and the AZ Lottery. However, the Contractor must provide the AZ Lottery with at least a six (6) month’s written notice of said termination.
11.2. The Contract may be terminated by the AZ Lottery if the Contractor engages in any action that might create or result in the appearance of impropriety, such as (a) inappropriately using or divulging of information gathered or discovered pursuant to the performance of its duties under the Contract; (b) acting on behalf of the State without appropriate authorization; (c) treating anyone with unfair preference or disfavor; (d) exercising discretion in a way that shows partiality, or that could have a political consequence for the State; (e) taking any action that could affect the public confidence regarding the integrity of the State.
11.3. In the event of a termination due to Contractor Default under the Uniform Terms and Conditions, the AZ Lottery may, in its sole discretion, provide notice of the default and an opportunity to cure the default prior to termination of the Contract.
11.4. The time of completion of performance may be extended due to a force majeure event under the Uniform Terms and Condition, but the Final termination date of the Contract will not be changed by a delay caused by a force majeure incident.
12. SUBCONTRACTS
12.1. The Contractor may, with the consent of the State, enter into written Subcontract(s) for performance of certain of its functions under the contract. Such Subcontracts must be approved by the Contract Officer Representative prior to the effective date of any Subcontract.
12.2. No Subcontract that the Contractor enters into with respect to performance under the Contract shall in any way relieve the Contractor of any responsibility for performance of its duties.
12.3. The Contractor shall give the Contract Officer Representative immediate notice in writing by certified mail of any action or suit filed and prompt notice of any claim made against the Contractor by any Subcontractor or vendor which in the opinion of the Contractor may result in litigation related in any way to the Contract with the State.
13. WAIVER OF DEFECTS/REJECTION OF OFFERS
13.1. Notwithstanding any other provision of the Solicitation, the State reserves the right to waive any immaterial defect or informality; reject any and all Offers or portions thereof; or cancel a Solicitation. The Procurement Officer shall file a written determination specifying the reasons for the decision.
14. ACCURACY OF WORK
14.1. The Contractor shall be responsible for the accuracy of the work and shall promptly make all necessary revisions or corrections resulting from errors and omissions on the part of the Contractor without additional compensation. Acceptance of the work by the State will not relieve the Contractor of the responsibility for subsequent correction of any such errors and the clarification of any ambiguities.
15. NEW EQUIPMENT
15.1. All equipment, materials, parts and other components incorporated in the work or an item covered by this Contract shall be new, of the latest model and of the most suitable grade for the purpose intended.
Special Terms and Conditions State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 23 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
15.1.1. Current Product (Software). All products or software offered in this Solicitation shall be in current and ongoing production, shall have been formally announced for general marketing purposes; shall be a version currently functioning in a user (pay customer) environment and capable of meeting or exceeding all specifications and requirements set forth in this Solicitation at the time of Offer submission.
16. ELECTRONIC OR INFORMATION TECHNOLOGY PRODUCTS/SERVICES
16.1. Unless specifically authorized in the Contract, any electronic or information technology offered to the State under this Solicitation shall comply with A.R.S. § 41-3531 and § 41-3532 and Section 508 of the Rehabilitation Act of 1973, which requires that employees and members of the public shall have access to and use of information technology that is comparable to the access and use by employees and members of the public who are not individuals with disabilities.
16.2. Copies of all source code files produced under the Contract, required to develop the system object code and firmware, with any compilers, utilities, hardware, and required instructions, must be held in escrow for the duration of the Contract. Versions of the executables shall also be placed in escrow.
17. PROTECTION OF FACILITIES AND GROUNDS
17.1. The Contractor shall provide the services contained herein in such a manner that does not result in damage to State facilities, grounds, landscaping, equipment, utilities, or structures. In the event that damage does occur during the performance of this Contract, the Contractor shall repair or replace the damage at no cost to the State as specified by the Contract Officer Representative.
17.2. Should the Contractor fail or refuse to make proper repairs or replacements, the Contractor shall be liable for the cost thereof which may be deducted from unpaid invoices or by any other means provided by law. Any and all equipment supplied by the Contractor(s) for use by the AZ Lottery shall remain the property of the Contractor.
17.3. The State shall be under no obligation to the Contractor in regards to any restoration or rehabilitation of the Contractor's premises or property during the Contract term or after the final Contract expiration date.
18. SAFETY STANDARDS
18.1. All items supplied under this Contract must comply with the current applicable occupational safety and health standards of the State of Arizona Industrial Commission, applicable building and electrical codes, and The National Fire Protection Association Standards.
19. CONFIDENTIALITY OF RECORDS
19.1. The Contractor shall establish and maintain procedures and controls that are acceptable to the AZ Lottery for the purpose of ensuring that no information contained in its records or obtained from the AZ Lottery or from others in carrying out its functions under the Contract shall be used or disclosed by it, or Contractor Personnel (as defined in section 29.4, Contractor Personnel), except as required to efficiently perform duties under the Contract. Persons requesting such information should be referred to the AZ Lottery. The Contractor also agrees that any information pertaining to individual persons shall not be divulged other than to Contractor Personnel as needed for the performance of duties under the Contract, unless otherwise agreed to in writing by the AZ Lottery.
19.2. Contractor shall keep confidential all information concerning individual end-users. Contractor shall not, under any conditions, resell, transfer or convey information about end-users to any third party. Contractor shall not retain or reuse information about the end-users in their own operations.
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20. RECORDS RETENTION
20.1. In addition to the Records Retention obligations stated in the Uniform Terms and Conditions, the Contractor must abide by the following requirements:
20.1.1. Cost Records. The Contractor shall maintain books, records, documents, and other evidence pertaining to the costs and expenses of the Contract, hereinafter collectively called the "cost records," to the extent and in such detail as shall properly reflect all net costs, direct or indirect, of labor, materials, equipment, supplies, and services, and other costs and expenses of whatever nature for which payment is made under the Contract, including records of in-kind or financial benefits received by Contractor for transactions conducted with a third-party vendor. The Contractor shall agree to make available at the office of the Contractor at all reasonable times during the period, as set forth below, any of the cost records for inspection, audit or reproduction by any authorized representative of the State. The Contractor shall preserve and make available the records for a period of five (5) years from the date of final payment under the Contract and for such period, if any, as is required by applicable statute, by any other paragraph of the Contract as stated below:
20.1.1.1. If the Contract is completely or partially terminated, the cost records relating to the work terminated shall be preserved and made available for a period of five (5) years from the date of any resulting final settlement.
20.1.2. Litigation Records. "Litigation records," which relate to appeals, litigation, or the settlement of claims arising out of the performance of the Contract, or cost and expenses of the Contract as to which exception has been taken by the AZ Lottery, shall be retained by the Contractor until such appeals, litigation, claims or exceptions have been resolved, or the statute of limitations on such actions has expired on any potential claims. The provisions of this Section shall be applicable to and included in each Subcontract hereunder.
20.1.3. Public Information and Marketing Records. “Public Information and Marketing Records,” including social media communications, shall be retained by the Contractor during and after the term of the Contract according to the Arizona State Library, Archives and Public Records Schedule Number GS 1003, “General Records Retention Schedule Issued to All Public Bodies – Public Information and Marketing.” After termination of the Contract, such materials may be archived with the Arizona State Library, Archives and Public Records, or returned to the Lottery’s safekeeping, as directed by the Lottery.
21. OWNERSHIP OF INTELLECTUAL PROPERTY
21.1. To the extent any work created by Contractor does not qualify as a "work for hire," under the Ownership of Intellectual Property section of the Uniform Terms and Conditions, Contractor hereby assigns, transfers, releases, and conveys to the State all rights, title, and interest to such Intellectual Property, including but not limited to all copyright, invention, trademark, trade name and trade secret rights, and United States patent rights or other patent rights recognized by a treaty to which the United States is a signatory.
21.2. Notwithstanding anything to the contrary in this Contract, if the State elects, in its sole and absolute discretion, to relinquish its ownership interest in any or all of the Intellectual Property, the State shall have the rights to use, modify, reproduce, release, perform, display, sublicense or disclose such Intellectual Property within State government and operations without restriction for any activity in which the State is a party (collectively, "Government Purpose Rights").
22. TRANSITION PERIODS
22.1. Transitioning from the Previous Contractor. Upon award, in addition to any meetings required under the Scope of Work, the Contractor may be required to participate in meetings for the successful implementation of
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the Contract and to facilitate a transition from the previous contractor to the Contractor, if necessary. The meetings will be at the discretion of the AZ Lottery. The Contractor will be notified in advance of the meeting(s) time, frequency, and locations to ensure all appropriate Contract staff and representatives attend. The State reserves the right to decline conference call attendance or participation.
22.1.1. The State reserves the right to permit the previous contractor to complete necessary work or tasks currently in progress to aid in the transition process.
22.1.2. The Contractor will be required to assume an assignment of ongoing contractual obligations incurred by the previous contractor to allow continuity of all goods and services currently in place.
22.2. Transitioning Upon Turnover to a New Contractor. Upon the termination of this Contract, if the AZ Lottery anticipates a continued need for the Contract services specified herein and a Contract is awarded to a new contractor, there shall be a transition of service period. During this period, the existing Contractor shall work closely with a new contractor’s personnel and/or staff to ensure a smooth and complete transfer of duties and responsibilities.
22.2.1. All transition activities will be coordinated by the AZ Lottery’s authorized representative. A transition plan as approved by the AZ Lottery will be developed in conjunction with the Contractor to assist the new contractor and/or staff to implement the transfer of duties. The transition plan may include, but is not limited to the following:
22.2.1.1. Prior to the expiration of the Contract term, the AZ Lottery will award a new contract. Commencing at least six (6) months prior to termination and continuing through the effective date of termination, Contractor shall provide the State with termination assistance. In addition, Contractor shall provide, upon the State's request, termination assistance for up to six (6) months following the date of termination.
22.2.1.2. In the event of turnover, the Contractor shall prepare at no cost, in a format that is acceptable to the AZ Lottery, all data for transfer to a new contractor. All historical data shall be available for transfer no later than two (2) months prior to the termination of the Contract.
22.2.2. Transition assistance services may be required after the expiration of the Contract. Transition assistance services shall be billed on a time and materials basis. The Contractor will be reimbursed for transition assistance services by the State based on the State accepted Contractor Transition Service, ProcureAZ bid “Items” tab Pricing. The Contractor shall not be separately reimbursed for any turnover services within the term of the Contract.
22.2.3. The State shall have the right to extend offers of employment to any Contractor employees to protect the continuance of service to the State. All non-competition agreements for such employees shall be disregarded in this case. Contractor shall provide reasonable access to these employees and will not interfere with the State's efforts to hire them.
22.2.4. Contractor will transition all dedicated equipment, furniture and fixtures produced specifically for the AZ Lottery at the end of the Contract. Contractor will agree to leave said equipment certified for maintenance by the Contractor prior to transfer.
22.2.5. The State shall have the option to assume contracts for any services provided by third parties to the Contractor and used by the Contractor to provide services to the State, and the contracts between the Contractor and any third parties or sub-contractors shall be written so that they are assumable by the State or a new contractor assuming responsibility for any Advertising Services, at the sole option of the State or that new contractor.
22.2.6. If the Contractor has incorporated the State's network into a Contractor proprietary network, the Contractor will provide up to two (2) years continued network services at the then current contract
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rates for such service. This will permit the State to establish a replacement capability in an orderly manner.
23. VENDOR PERFORMANCE REPORTS
23.1. Program management shall document Contractor performance, whether exemplary or needing improvement where corrective action is needed or desired. Copies of corrective action reports will be forwarded to the State Procurement Office for review and any necessary follow-up. The State Procurement Office may contact the Contractor upon receipt of the report and may request corrective action. The State Procurement Office shall discuss the Contractor’s suggested corrective action plan with the Contract Officer Representative for approval of the plan.
24. NOTICES
24.1. Notices, requests, demands, consents, approvals, and other communications which may or are required to be served or given hereunder (for the purposes of this provisions collectively called 'Notices'), shall be in writing and shall be sent by registered or certified United States mail, return receipt requested, postage prepaid, addressed to the party or parties to receive such notice as follows:
a. If intended for the State, to:
Arizona Department of Administration Attention: Procurement Officer 100 No. 17th Ave., Suite 201 Phoenix, Arizona 85007
And to:
Contract Officer Representative Arizona Lottery 4740 East University Drive Phoenix, AZ 85034
b. If intended for the Contractor, to:
The Contractor Company Name Attention: Contractor Contact Address City, State, Zip
24.2. Or to such other address as either party may from time to time furnish in writing to the other by notice hereunder. Any notice so mailed shall be deemed to have been given as of the date such notice is received as shown on the return receipt. Furthermore, such notice may be given by delivering personally such notice, if intended for the State, to the Arizona Department of Administration, Procurement Officer and, if intended for the Contractor, to the Contract Officer Representative named on the Offer & Contract Award of this contract, or to such other person as either party may from time to time furnish in writing to the other by notice hereunder. Any notice so delivered shall be deemed to have been given as of the date such notice is personally delivered to the other party.
25. INDEMNIFICATION
25.1. Contractor shall defend, indemnify, and hold harmless the State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees (hereinafter referred to as “Indemnitee”) from and against any and all claims, actions, liabilities, damages, losses, or expenses (including court costs, attorneys’ fees, and costs of claim processing, investigation and litigation) (hereinafter referred to
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as “Claims”) for bodily injury or personal injury (including death), or loss or damage to tangible or intangible property caused, or alleged to be caused, in whole or in part, by the negligent or willful acts or omissions of Contractor or any of its owners, officers, directors, agents, employees or Subcontractors. This indemnity includes any claim or amount arising out of, or recovered under, the Workers’ Compensation Law or arising out of the failure of such Contractor to conform to any federal, state or local law, statute, ordinance, rule, regulation or court decree. It is the specific intention of the parties that the Indemnitee shall, in all instances, except for Claims arising solely from the negligent or willful acts or omissions of the Indemnitee, be indemnified by Contractor from and against any and all claims. It is agreed that Contractor will be responsible for primary loss investigation, defense and judgment costs where this indemnification is applicable. In consideration of the award of this Contract, the Contractor agrees to waive all rights of subrogation against the State of Arizona, its officers, officials, agents and employees for losses arising from the work performed by the Contractor for the State of Arizona.
25.2. The indemnification obligations listed in this Contract include the provisions that, as an independent contractor, the Contractor shall assume all legal and financial responsibility relating to Contractor’s employees for salaries, wages, bonuses, retirement, minimum wage requirements, overtime, withholdings, taxes, FICA, employee fringe benefits, workmen's compensation, occupational disease compensation, unemployment compensation, employee insurance, and premiums appurtenant thereto, and the Contractor agrees to indemnify, save, and hold the Indemnitee, harmless from and against, any and all loss; cost (including attorney fees); and damage of any kind related to such matters.
25.3. The indemnification obligations listed in this Contract include indemnification for any claim or amount arising out of, or recovered under, any damage to or damage caused by AZ Lottery vehicles, equipment, trailers, ticket trolleys, or any other AZ Lottery property (“Property”) when such damage occurs while such Property is being used by, or is under the control of, Contractor or any of its owners, officers, directors, agents, employees or Subcontractors.
25.4. Under the Indemnification – Patent and Copyright section of the Uniform Terms and Conditions, the following obligations will be included:
25.4.1. With respect to claims arising from computer hardware or software manufactured or developed solely by a third party, Contractor shall pass through to the State such indemnity rights as it receives from such third party (the “Third Party Obligation”) and will cooperate in enforcing them; provided, however, that if: (a) the third party manufacturer fails to honor the Third Party Obligation, or (b) the Third Party Obligation is insufficient to fully indemnify the State, Contractor shall indemnify, defend and hold harmless the State against such claims in their entirety or for the balance of any liability not fully covered by the Third Party Obligation.
25.4.2. If Contractor believes at any time that any materials provided or in use pursuant to this Contract infringe a third party’s intellectual property rights, Contractor shall, at Contractor’s sole cost and expense, and upon receipt of the State’s prior written consent, which shall not be unreasonably withheld: (a) replace an infringing material with a non-infringing material; (b) obtain for the State the right to continue to use the infringing material; or (c) modify the infringing material to be non- infringing, provided that following any replacement or modification made pursuant to the foregoing, the material continues to function in accordance with the Contract. Contractor’s failure or inability to accomplish any of the foregoing shall be deemed a material breach of the Contract.
25.4.3. Notwithstanding the foregoing, Contractor shall not be liable for any claim or infringement based solely on any Indemnitee’s:
25.4.3.1. Modification or use of materials provided by Contractor other than as contemplated by the Contract or specifications of such materials or as otherwise authorized or proposed in any way by the Contractor or a Contractor Party; or
25.4.3.2. Use of the materials in combination, operation, or use with other products in a manner not contemplated by the Contract, or, the specifications of such materials,
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or as otherwise authorized or proposed in any way by Contractor or Contractor Party.
25.4.4. Contractor certifies, represents, and warrants to the State that it has appropriate systems and controls in place to ensure that State funds will not be used in the performance of the Contract for the acquisition, operation, or maintenance of materials in violation of intellectual property laws.
26. INSURANCE REQUIREMENTS
26.1. Contractor and Subcontractors shall procure and maintain until all of their obligations have been discharged, including any warranty periods under this Contract are satisfied, insurance against claims for injury to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Contractor, his agents, representatives, employees or Subcontractors.
26.2. The insurance requirements herein are minimum requirements for this Contract and in no way limit the indemnity covenants contained in this Contract. The State of Arizona in no way warrants that the minimum limits contained herein are sufficient to protect the Contractor from liabilities that might arise out of the performance of the work under this Contract by the Contractor, its agents, representatives, employees or Subcontractors, and Contractor is free to purchase additional insurance.
26.3. Minimum Scope and Limits of Insurance: Contractor shall provide coverage with limits of liability not less than those stated below.
26.3.1. Commercial General Liability – Occurrence Form Policy shall include bodily injury, property damage, personal and advertising injury and products and completed operations. General Aggregate $2,000,000 Products – Completed Operations Aggregate $1,000,000 Personal and Advertising Injury $1,000,000 Damage to Rented Premises $ 50,000 Each Occurrence $1,000,000
26.3.1.1. The policy shall be endorsed, as required by this written agreement to include: “The State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees as additional insureds with respect to liability arising out of the activities performed by or on behalf of the Contractor.”
26.3.1.2. Policy shall contain a waiver of subrogation endorsement as required by this written agreement in favor of the State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees” for losses arising from work performed by or on behalf of the Contractor.
26.3.2. Business Automobile Liability Bodily Injury and Property Damage for any owned, hired, and/or non-owned vehicles used in the performance of this Contract. Combined Single Limit (CSL) $1,000,000
26.3.2.1. The policy shall be endorsed as required by this written agreement to include “The State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees as additional insureds with respect to liability arising out of the activities performed by or on behalf
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of the Contractor, involving automobiles owned, leased, hired or borrowed by the Contractor.”
26.3.2.2. Policy shall contain a waiver of subrogation endorsement as required by this written agreement in favor of “The State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees” for losses arising from work performed by or on behalf of the Contractor.
26.3.3. Worker's Compensation and Employers' Liability
Workers' Compensation Statutory Employers' Liability o Each Accident $1,000,000 o Disease – Each Employee $1,000,000 o Disease – Policy Limit $1,000,000
26.3.3.1. Policy shall contain a waiver of subrogation endorsement as required by written agreement in favor of “The State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees” for losses arising from work performed by or on behalf of the Contractor.
26.3.3.2. This requirement shall not apply to: Separately, EACH Contractor or Subcontractor exempt under A.R.S. § 23-901, AND when such Contractor or Subcontractor executes the appropriate waiver (Sole Proprietor/Independent Contractor) form.
26.3.4. Professional Liability Each Claim $2,000,000 Annual Aggregate $2,000,000
26.3.4.1. In the event that the professional liability insurance required by this Contract is written on a claims-made basis, Contractor warrants that any retroactive date under the policy shall precede the effective date of this Contract; and that either continuous coverage will be maintained or an extended discovery period will be exercised for a period of two (2) years beginning at the time work under this Contract is completed.
26.3.4.2. The policy shall cover professional misconduct or negligent acts for those positions defined in the Scope of Work of this Contract.
26.3.5. Network Security (Cyber) and Privacy Liability Each Claim $2,000,000 Annual Aggregate $2,000,000
26.3.5.1. Such insurance shall include but not be limited to coverage for third party claims and losses with respect to network risks (such as data breaches, unauthorized access or use, ID theft, theft of data) and invasion of privacy regardless of the type of media involved in the loss of private information, crisis management and identity theft response costs – includes breach notification costs, credit remediation and credit monitoring, defense and claims expenses, regulatory defense costs plus fines and penalties, cyber extortion, computer program and electronic data restoration expenses coverage (data asset protection), network business interruption, computer fraud coverage, and funds transfer loss.
26.3.5.2. In the event that the Network Security and Privacy Liability insurance required by this Contract is written on a claims-made basis, Contractor warrants that any retroactive
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date under the policy shall precede the effective date of this Contract; and that either continuous coverage will be maintained or an extended discovery period will be exercised for a period of two (2) years beginning at the time work under this Contract is completed.
26.4. FIDELITY BOND
26.4.1. The limit required should be adjusted based on the amount of cash or securities being handled by the Contractor subject to a minimum of $25,000.
26.4.1.1. Coverage amount is twenty five thousand dollars ($25,000.00)
26.4.1.2. Coverage should include but is not limited to:
Employee Dishonesty (to include coverage for theft and mysterious disappearance and inventory storage). Money & Securities Inside/Outside Computer Fraud Funds Transferred (if applicable) Forgery or Alteration The policy shall be endorsed to include the State of Arizona (and the respective agency) as Loss Payee.
26.5. PERFORMANCE BOND. Within ten (10) days of Contract award, the Contractor must provide a performance bond in an amount not less than five million dollars ($5M) for the initial transition period of performance and conditioned on the Contractor’s faithful performance. Once a successful transition has taken place and the Contractor has assumed all operational responsibilities under the Contract, the AZ Lottery will determine, in its sole discretion, whether to continue performance bond requirements for the remainder of the Contract.
26.6. ADDITIONAL INSURANCE REQUIREMENTS: The policies shall include, or be endorsed as required by written agreement to include, the following provisions:
26.6.1. The Contractor's policies shall stipulate that the insurance afforded the Contractor shall be primary insurance and that any insurance carried by the Department, its agents, officials, employees or the State of Arizona shall be excess and not contributory insurance, as provided by A.R.S. § 41-621 (E). 26.6.2. Insurance provided by the Contractor shall not limit the Contractor’s liability assumed under the indemnification provisions of this Contract.
26.7. NOTICE OF CANCELLATION: For each insurance policy required by the insurance provisions of this Contract, the Contractor must provide to the State, within two (2) business days of receipt, a notice if a policy is suspended, voided or cancelled for any reason. Such notice shall be mailed, emailed, hand delivered or sent by facsimile transmission to the Contract Officer Representative.
26.8. ACCEPTABILITY OF INSURERS: Contractors insurance shall be placed with companies duly licensed in the State of Arizona or hold approved non-admitted status on the Arizona Department of Insurance List of Qualified Unauthorized Insurers. Insurers shall have an “A.M. Best” rating of not less than A- VII or duly authorized to transact Workers’ Compensation insurance in the State of Arizona. The State of Arizona in no way warrants that the above-required minimum insurer rating is sufficient to protect the Contractor from potential insurer insolvency.
26.9. VERIFICATION OF COVERAGE: Contractor shall furnish the State of Arizona with certificates of insurance valid (ACORD form or equivalent approved by the State of Arizona) as required by this Contract. The certificates for each insurance policy are to be signed by an authorized representative.
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26.9.1. All certificates and endorsements as required by this written agreement are to be received and approved by the State of Arizona before work commences. Each insurance policy required by this Contract must be in effect at or prior to commencement of work under this Contract. Failure to maintain the insurance policies as required by this Contract, or to provide evidence of renewal, is a material breach of contract.
26.9.2. All certificates required by this Contract shall be sent directly to State of Arizona, State Procurement Office, 100 N. 15th Avenue, Suite 201, Phoenix, AZ 85007. The State of Arizona project/Contract number and project description shall be noted on the certificate of insurance. The State of Arizona reserves the right to require complete, certified copies of all insurance policies required by this Contract at any time.
26.10. CONTRACTORS/SUBCONTRACTORS: Contractors’ certificate(s) shall include all Subcontractors as insureds under its policies or Contractor shall be responsible for ensuring and/or verifying that all Subcontractors have collectable insurance as evidenced by the certificate of insurance and endorsements for each Subcontractor. All coverages for Subcontractors shall be subject to the minimum insurance requirements identified above. The Department reserves the right to require, at any time, proof from the Contractor that its Subcontractors have the required coverage.
26.11. APPROVAL AND MODIFICATIONS: The Contracting agency in consultation with the Department of Administration, Risk Management Division reserves the right to review, or make modifications to the insurance limits, required coverages or endorsements throughout the life of this Contract as deemed necessary. In such event, the Contracting agency shall provide the Contractor with written notice of such and Contractor shall comply within thirty (30) days of receipt thereof. Such action will not require a formal Contract amendment, but may be made by administrative action.
26.12. EXCEPTIONS: In the event the Contractor or Subcontractor(s) is/are a public entity, then the Insurance Requirements shall not apply. Such public entity shall provide a Certificate of Self-Insurance. If the contractor or Subcontractor(s) is/are a State of Arizona agency, board, commission, or university, none of the above shall apply.
27. AUDIT REQUIREMENTS
27.1. If the Contractor does not desire to retain the audit documentation in its entirety for a period of five (5) years from the date of the audit report as required by the Audit section of the Uniform Terms and Conditions, the documentation shall be given to the Auditor General for safekeeping.
27.2. Arizona Revised Statute, Title V, requires an annual audit of the AZ Lottery fund. An independent verification and review of the existence and reliability of the Contractor’s policies, procedures, and controls may be included in this annual audit. The scope of the AZ Lottery’s financial audit and the Contractor’s portion, if any, shall be determined annually. The cost of the Contractor’s portion of the audit shall be the responsibility of the Contractor. In the event the independent third party makes recommendations for change and the AZ Lottery concurs, the Contractor shall be required to comply with the recommendations. All costs for implementing such recommendations shall be the responsibility of the Contractor.
27.3. If the Contractor is a publically traded company, the Contractor shall provide the AZ Lottery with Securities and Exchange Commission (“SEC”) 10-K reports (or the appropriate non-U.S. equivalent) as they are issued, together with any reports required pursuant to Section 13 of the Securities and Exchange Act of 1934, as amended.
28. CONTRACTOR QUALIFICATIONS/REQUIREMENTS/WARRANTIES
28.1. Financial Soundness. The Contractor must be financially stable and able to substantiate the financial stability of its company. If requested, current financial statements or other financial information deemed appropriate documenting financial soundness must be provided within five (5) business days of request. The State
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reserves the right to request additional documentation from the Contractor, regarding financial stability or reports on financial stability from independent financial rating services. The State reserves the right to reject Contractor if it does not demonstrate financial stability sufficient for the scope of this Contract. The AZ Lottery must be notified in writing of any substantial change in the Contractor's financial condition during the term of the Contract. Failure to notify the AZ Lottery of such a substantial change in financial condition will be sufficient grounds for terminating the Contract.
28.2. Licenses. Contractor shall maintain in current status all federal, state, and local licenses and permits required for the operation of the business conducted by the Contractor. The Contractor must be authorized to do business in Arizona.
28.3. Vendor Registration. Prior to issuance of a Purchase Order or Invoice and subsequent payment and/or formal award, the Contractor shall have a completed STATE OF ARIZONA SUBSTITUTE W-9 FORM on file with the State. No payments shall be made until the form is on file. The STATE OF ARIZONA SUBSTITUTE W-9 FORM will be provided to the Contractor at the time of Award and must be completely filled out and returned prior to the start of any project for the State.
28.4. Contractor Personnel. The Contractor agrees and understands that the AZ Lottery's agreement to the Contract is predicated, in part and among other considerations, on the utilization of the specific individual(s) and/or personnel qualification(s) as identified and/or described in the Contractor's proposal ("Contractor Personnel"). Therefore, the Contractor agrees that no substitution of such specified individuals and/or personnel qualifications shall be made without the prior written approval of the Contract Officer Representative. The Contractor further agrees that any substitution made pursuant to this paragraph must be equal or better than originally proposed and that the AZ Lottery's approval of a substitution shall not be construed as an acceptance of the substitution's performance potential. The AZ Lottery agrees that an approval of a substitution will not be unreasonably withheld. The Contractor agrees to reveal its staffing levels by function, including resumes, before award of the Contract and, upon request by the AZ Lottery, at any time after award of the Contract. The State reserves the right to require the Contractor to reassign or otherwise remove any Contractor Personnel assigned to the AZ Lottery who are found unacceptable.
28.4.1. Security Clearance. A security clearance shall be required of all Contractor Personnel who will have access to the facilities or operations of the AZ Lottery and/or of the Contractor's site serving this Contract as described in the Scope of Work. Over the life of the Contract, information on new Contractor Personnel must be submitted as soon as possible, but prior to Contractor Personnel beginning work at the site(s). Access to Contractor Personnel is to be denied until those individuals have been security-cleared by the AZ Lottery. The AZ Lottery reserves the right to review all security clearances and to disapprove any Contractor Personnel. The AZ Lottery may reject the assignment of any Contractor Personnel (or any Subcontractor or consultant who is an officer, partner, or is a key employee under this Contract), who has been convicted of any felony, or a misdemeanor involving moral turpitude within five (5) years of the date of this Contract or during the term of this Contract.
28.5. Contractor Personnel, including partners, temporary employees, Subcontractors, and consultants involved in the performance of this Contract shall be prohibited from (a) purchasing any AZ Lottery tickets, including draw games offered by another state lottery which are also offered by the AZ Lottery (such as Powerball); (b) playing any AZ Lottery games; and/or (c) entering any AZ Lottery promotions during the period of this Contract. This prohibition shall include any spouse, child, sibling, or parent residing as a member of the primary household of such Contractor Personnel. No AZ Lottery prize shall be paid to any of the above persons. The Contractor shall ensure that this requirement is made known to all Contractor Personnel involved in the performance of this Contract.
29. PAYMENTS / METHOD OF COMPENSATION
29.1. Base Contractor Fee. The AZ Lottery shall compensate the Contractor by payment of a fee calculated as a percentage of the Contractor Allotment. This Base Contractor Fee shall include all expenses incurred by the Contractor and will serve as the Contractor’s sole source of compensation for this engagement, except for any
Special Terms and Conditions State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 33 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
bonus under Section 30.8. The Base Contractor Fee may be adjusted up or down from year to year, depending on the Contractor Allotment for the each State Fiscal Year.
29.2. Work shall be completed in a responsible and professional manner in accordance with the requirements incorporated in the assignment. Determination of acceptability of work will be made by the AZ Lottery. Payment shall be made upon AZ Lottery's receipt of Contractor's invoice, which shall itemize any work covered by the Base Contractor Fee under Section 30.7 below, and other costs or expenses, including those listed under Section 30.3 below.
29.3. The monthly billing should itemize all costs and fees for Advertising Services, including all expenses required to be prepaid by the Contractor and pass-through costs. In the case of pass-through costs, the Contractor shall pay for all such goods and services purchased for the AZ Lottery and shall submit invoices to the AZ Lottery for reimbursement, itemizing such expenditures without mark-up of any kind. Pass-through costs include, but are not limited to:
29.3.1. Special project costs;
29.3.2. Service Agreement or Subcontractor fees, including Street Team fees and expenses;
29.3.3. Sponsorship fees; and
29.3.4. Public relations distribution and media monitoring fees;
29.3.5. Third-party research fees;
29.3.6. Actual costs for third-party production and media fees (media buying services and airtime placement costs).
29.3.6.1. Third-party production and media fees incurred in the delivery of services during the term of this Contract will be itemized separately from the monthly fee and will be paid without mark-up, if preapproved by the AZ Lottery. Actual vendor invoices must be attached to the monthly billing.
29.3.7. Any other reasonable costs that are not clearly defined herein and are mutually agreed upon by the Offeror(s) and the AZ Lottery, such as presentation items, industry award submissions, and vendor proofs.
29.4. In no event shall the Contractor or Subcontractors accept non-cash incentives or rewards for their own use or on behalf of the AZ Lottery unless directed to do so by the AZ Lottery. If any non-cash incentives or rewards are offered for the purchase of goods and services, the Contractor shall attempt to negotiate, as a substitute, a reduction in cost to be passed on to the AZ Lottery. If such reduction of cost cannot be achieved, the Contractor will transfer to the Lottery any discounts or rewards earned in conjunction with such purchases, if approved by the AZ Lottery; or the value of such benefits must be deducted from the Contractor’s monthly fee or remitted directly to the AZ Lottery as a cash payment, as follows:
29.4.1. Rebates. The Contractor shall return to the AZ Lottery or credit the Lottery’s account with any amounts received in rebate from media owners or other third parties resulting from rate reductions, lineage shrinkage, short circulation, non-appearance of advertisement, faulty reproduction, or other similar cause.
29.4.2. Media Rebate Exemptions. For all Media Buying, the Contractor shall rebate the industry standard fifteen percent (15%) commission to the Lottery.
29.4.3. Discounts. In the event that the Contractor receives cash discounts from media owners for media bills paid on or before the due dates thereof, any such discount shall be passed along to the AZ Lottery.
Special Terms and Conditions State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 34 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
29.4.4. Travel/Merchandise Bonuses. In the event that the Contractor receives travel and/or merchandise offers as an incentive predicated on the expenditures of media dollars in any market on behalf of the AZ Lottery, the Contractor shall disclose such opportunities to the AZ Lottery, and if authorized to expend such media dollars, such travel and/or merchandise shall become the property of the AZ Lottery. Transfer of Travel/Merchandise Bonuses may be accomplished by direct transfer of the offers to the AZ Lottery, or if direct transfer is not possible, by reduction of the Base Contractor Fee or other costs and expenses in an amount equal to the value of the offers.
29.4.5. Contractor will be required to disclose to the AZ Lottery all in-kind or financial benefits received by Contractor in transactions with third-party vendors. Such benefits must be disclosed to the AZ Lottery within thirty (30) days from receipt of the benefit or on the next monthly invoice from the Contractor, whichever is sooner.
29.5. Any travel or per diem by the Contractor to carry out its obligations under the Contract shall be at the Contractor’s expense.
29.6. Concurrently with the monthly billing, the Contractor shall itemize the time and materials utilized for each previous month’s activities for the purpose of documenting the “where, what, when, and why” of allocation of the Contractor’s resources.
29.7. Bonus. In addition to the Base Contractor Fee, the Contractor may be entitled to a bonus if fund transfers to the state increase year-over-year. The bonus will be calculated as an additional percentage of the Contractor Allotment as specified in the table below. Such bonus shall be capped at a maximum two hundred eighty thousand dollars ($280,000.00) per State Fiscal Year; to be paid no later than the end of the first quarter after the State Fiscal Year in which the calculation is being determined (the “Bonus Year”). No bonus will be paid if, year-over-year, the actual fund transfers in the Bonus Year are equal to or less than the actual fund transfers in the previous State Fiscal Year. If at any time, the calculated bonus would be equal to or greater than the increase of actual fund transfers in the Bonus Year, the Contractor will be entitled to an amount equal to fifty percent (50%) of the actual fund transfer increase as a bonus.
Fund Transfer Growth Year- Bonus Percentage of Over-Year Contractor Allotment .01 to 0.99 % 0.5% 1.00 to 4.99 % 1.0% 5.00 to 9.99 % 1.5% 10.0 % or above 2.0%
29.8. Calculation of Fees for Multiple Contractors. In the event that the AZ Lottery awards this Contract to more than one Offeror, the Base Contractor Fee will be calculated on the portion of the Contractor Allotment awarded to each Offeror.
30. ADJUSTMENTS TO PAYMENT
30.1. If the Contractor is in any manner in default in the performance of any obligation under this Contract, the AZ Lottery may, at its option and in addition to other remedies, adjust or withhold payment until satisfactory resolution of the default. The Contractor shall have the right to written notice of the AZ Lottery’s action in adjusting or withholding payment. Under no circumstances shall the AZ Lottery authorize payment to the Contractor that exceeds the amount specified in this Contract without an approved written amendment to this Contract. The AZ Lottery may, at its option, withhold all payment for any task order under this Contract until it has received all final reports and deliverables required by the task order.
31. LIQUIDATED DAMAGES
Special Terms and Conditions State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 35 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
31.1. The parties to this Contract understand and agree that the equipment and services as defined in the Scope of Work must be extremely reliable. Any Contract delay or breach of Contract will disrupt the AZ Lottery’s operations and will lead to damages.
31.2. The parties agree that proving the actual loss of revenue will be extremely impractical and difficult, and the goods and services under this Contract are not readily available on the open market. The parties will use established liquidated damages formulae to resolve issues that arise under certain specified damages categories and that the liquidated damages established in this Section are fair and reasonable.
31.3. All recommendations for the assessment of liquidated damages are subject to review, modification, and approval of the AZ Lottery.
31.4. Liquidated damages shall be assessed as a monetary damage assessment (which may be paid through the performance bond if not collected directly from the Contractor). If the parties cannot mutually agree on the imposition and amount of the assessment, the AZ Lottery will pursue the assessment by following the procedures in A.A.C. §R2-7-B905 for making a claim against the Contractor.
31.5. Liquidated damages shall not reduce the AZ Lottery’s entitlement to Advertising Services (shall not be “financed” by AZ Lottery monies), and shall be paid by the Contractor.
31.6. The AZ Lottery reserves the right, in its sole discretion:
31.6.1. To determine the existence of any factors relevant to the assessment of liquidated damages (such as the fact or length of downtime or degraded performance);
31.6.2. To waive any liquidated damages as determined by the AZ Lottery, but the waiver of any liquidated damages due the AZ Lottery shall constitute a waiver only as to such liquidated damages and not a waiver of any future liquidated damages;
31.6.3. To assess liquidated damages under each section applicable to any given incident, and to calculate any liquidated damages assessment based on the cumulative effect of two or more damages categories.
31.7. The assessment of liquidated damages will be in addition to, and not in lieu of, such other remedies as may be available to the AZ Lottery.
31.8. The Contractor shall not be required to pay liquidated damages for delays due to matters as enumerated in the Section entitled “Force Majeure” or for delays due to changes which are requested in writing by the AZ Lottery or for time delays specifically caused by or approved by the AZ Lottery.
31.9. In all of the liquidated damages sections, there shall be no pro-ration of damages for partial periods.
31.10. Notification of Liquidated Damages. Upon determination that liquidated damages are to be assessed, the AZ Lottery shall notify the Contractor of the assessment in writing.
31.11. Severability of Liquidated Damages Clauses. If any clause of this provision is determined to be unenforceable, the remainder of the provision will remain in effect.
31.12. Assessment of Liquidated Damages – Categories and Standards. Liquidated damages may be assessed as described in the following categories and in the amounts listed in the succeeding table that correspond to the following categories:
31.12.1. Failure to Commence Operations. The Contractor fails to have staffing, or strategic plans in place as provided in the written timeline as agreed to by both the AZ Lottery and the Contractor, such delay being the fault of the Contractor.
Special Terms and Conditions State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 36 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
31.12.2. Failure to provide timely pre-initiative analysis. The Contractor fails to provide pre-initiative analysis of proposed marketing or promotional campaigns.
31.12.3. Failure to provide post-initiative analysis. The Contractor fails to provide post-initiative analysis of completed marketing or promotional campaigns.
31.12.4. Failure to Clear Usage of Licensed Properties or Materials. The Contractor fails to procure permission to use licensed properties of materials prior to a marketing or promotional campaign using such materials.
31.12.5. Failure to Research and Obtain Clearance for Design and Use of AZ Lottery Marks. The Contractor fails to adequately research the ability of the AZ Lottery to use marks prior to implementation of new word or design marks.
31.12.6. Failure to produce PR statements within the time periods required.
31.12.7. Production of erroneous advertising materials. Failure to produce and/or deliver sales-related materials within the time frames set for game launches.
31.12.8 Failure to notify the AZ Lottery of a change of personnel within two (2) business days of the change, as required by section 5.1 of the Scope of Work.
31.12.9 Failure to produce documents as requested for the AZ Lottery to perform an audit under section 3.3 of the Uniform Terms and Conditions within ten (10) days of the request.
31.12.10 Failure to disclose in-kind or financial benefits received by the Contractor from a third-party vendor.
Reference Damages Category Damages Assessment Formulae & Maximum Damages Section 31.12.1. Failure to Commence Operations $1,000.00 per day.
Failure to provide timely pre-initiative $50 per day, beginning from the implementation date set 31.12.2. analysis by the AZ Lottery for that request Failure to provide post-initiative $50 per day , beginning from the completion date set by 31.12.3. analysis the AZ Lottery for that request Failure to Clear Usage of Licensed $10,000 per occurrence. 31.12.4. Properties or Materials Failure to Research and Obtain $500.00 per day that launch is delayed, or $1000 per day 31.12.5. Clearance for Design and Use of AZ that the uncleared mark is in circulation in the marketplace. Lottery Marks Failure to produce PR statements 31.12.6. $1,000.00 per occurrence within the time periods required. Production of erroneous advertising $100.00 per day that the material is in circulation per each 31.12.7. materials affected retailer. Failure to notify the AZ Lottery of a $100.00 per day from the final due date of the notice of 31.12.8 change of personnel. change to the date of actual notice of change. $500.00 per day from the final due date of the request for 31.12.9 Failure to produce documents. documents to the date of actual delivery of the documents. Failure to disclose in-kind or financial Equal to the value of the in-kind or financial benefit, as 31.12.10 benefits. determined by the Lottery.
Special Terms and Conditions State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 37 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
31.13. Payment of Liquidated Damages
31.13.1. The Contractor shall pay the balance to the AZ Lottery within thirty (30) calendar days of written demand for payment from the AZ Lottery.
31.13.2. If the amount due is not paid in full, the balance may be deducted from subsequent payments owed to the Contractor. At the AZ Lottery’s sole option, the AZ Lottery may obtain payment of assessed liquidated damages through one or more claims upon the Performance Bond or by acceptance of materials or services of an amount equal in value to the assessed liquidated damages.
31.13.3. Definition of Day. “Day,” for purposes of assessing liquidated damages, means a consecutive twenty-four (24) hour calendar day, or any fraction of that period.
Uniform Terms and Conditions State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 38 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
1. Definition of Terms
As used in this Solicitation and any resulting Contract, the terms listed below are defined as follows:
1.1. “Attachment” means any item the Solicitation requires the Offeror to submit as part of the Offer.
1.2. “Contract” means the combination of the Solicitation, including the Uniform and Special Instructions to Offerors, the Uniform and Special Terms and Conditions, and the Specifications and Statement or Scope of Work; the Offer and any Best and Final Offers; and any Solicitation Amendments or Contract Amendments.
1.3. "Contract Amendment" means a written document signed by the Procurement Officer that is issued for the purpose of making changes in the Contract.
1.4. “Contractor” means any person who has a Contract with the State.
1.5. “Days” means calendar days unless otherwise specified.
1.6. “Exhibit” means any item labeled as an Exhibit in the Solicitation or placed in the Exhibits section of the Solicitation.
1.7. “Gratuity” means a payment, loan, subscription, advance, deposit of money, services, or anything of more than nominal value, present or promised, unless consideration of substantially equal or greater value is received.
1.8. “Materials” means all property, including equipment, supplies, printing, insurance and leases of property but does not include land, a permanent interest in land or real property or leasing space.
1.9. “Procurement Officer” means the person, or his or her designee, duly authorized by the State to enter into and administer Contracts and make written determinations with respect to the Contract. 1.10. “Services” means the furnishing of labor, time or effort by a Contractor or Subcontractor which does not involve the delivery of a specific end product other than required reports and performance, but does include employment agreements or collective bargaining agreements. 1.11. “Subcontract” means any Contract, express or implied, between the Contractor and another party or between a Subcontractor and another party delegating or assigning, in whole or in part, the making or furnishing of any material or any service required for the performance of the Contract.
1.12. “State” means the State of Arizona and Department or Agency of the State that executes the Contract.
1.13. “State Fiscal Year” means the period beginning with July 1 and ending June 30.
2. Contract Interpretation
2.1. Arizona Law. The Arizona law applies to this Contract including, where applicable, the Uniform Commercial Code as adopted by the State of Arizona and the Arizona Procurement Code, Arizona Revised Statutes (A.R.S.) Title 41, Chapter 23, and it’s implementing rules, Arizona Administrative Code (A.A.C.) Title 2, Chapter 7.
2.2. Implied Contract Terms. Each provision of law and any terms required by law to be in this Contract are a part of this Contract as if fully stated in it.
2.3. Contract Order of Precedence. In the event of a conflict in the provisions of the Contract, as accepted by the State and as they may be amended, the following shall prevail in the order set forth below:
Uniform Terms and Conditions State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 39 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
2.3.1. Special Terms and Conditions;
2.3.2. Uniform Terms and Conditions;
2.3.3. Statement or Scope of Work;
2.3.4. Specifications;
2.3.5. Attachments;
2.3.6. Exhibits;
2.3.7. Documents referenced or included in the Solicitation.
2.4. Relationship of Parties. The Contractor under this Contract is an independent Contractor. Neither party to this Contract shall be deemed to be the employee or agent of the other party to the Contract.
2.5. Severability. The provisions of this Contract are severable. Any term or condition deemed illegal or invalid shall not affect any other term or condition of the Contract.
2.6. No Parole Evidence. This Contract is intended by the parties as a final and complete expression of their agreement. No course of prior dealings between the parties and no usage of the trade shall supplement or explain any terms used in this document and no other understanding either oral or in writing shall be binding.
2.7. No Waiver. Either party’s failure to insist on strict performance of any term or condition of the Contract shall not be deemed a waiver of that term or condition even if the party accepting or acquiescing in the nonconforming performance knows of the nature of the performance and fails to object to it.
3. Contract Administration and Operation
3.1. Records. Under A.R.S. § 35-214 and § 35-215, the Contractor shall retain and shall contractually require each Subcontractor to retain all data and other “records” relating to the acquisition and performance of the Contract for a period of five years after the completion of the Contract. All records shall be subject to inspection and audit by the State at reasonable times. Upon request, the Contractor shall produce a legible copy of any or all such records.
3.2. Non-Discrimination. The Contractor shall comply with State Executive Order No. 2009-09 and all other applicable Federal and State laws, rules and regulations, including the Americans with Disabilities Act.
3.3. Audit. Pursuant to ARS § 35-214, at any time during the term of this Contract and five (5) years thereafter, the Contractor’s or any Subcontractor’s books and records shall be subject to audit by the State and, where applicable, the Federal Government, to the extent that the books and records relate to the performance of the Contract or Subcontract.
3.4. Facilities Inspection and Materials Testing. The Contractor agrees to permit access to its facilities, Subcontractor facilities and the Contractor’s processes or services, at reasonable times for inspection of the facilities or materials covered under this Contract. The State shall also have the right to test, at its own cost, the materials to be supplied under this Contract. Neither inspection of the Contractor’s facilities nor materials testing shall constitute final acceptance of the materials or services. If the State determines non-compliance of the materials, the Contractor shall be responsible for the payment of all costs incurred by the State for testing and inspection.
3.5. Notices. Notices to the Contractor required by this Contract shall be made by the State to the person indicated on the Offer and Acceptance form submitted by the Contractor unless otherwise stated in the
Uniform Terms and Conditions State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 40 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
Contract. Notices to the State required by the Contract shall be made by the Contractor to the Solicitation Contact Person indicated on the Solicitation cover sheet, unless otherwise stated in the Contract. An authorized Procurement Officer and an authorized Contractor representative may change their respective person to whom notice shall be given by written notice to the other and an amendment to the Contract shall not be necessary.
3.6. Advertising, Publishing and Promotion of Contract. The Contractor shall not use, advertise or promote information for commercial benefit concerning this Contract without the prior written approval of the Procurement Officer.
3.7. Property of the State. Any materials, including reports, computer programs and other deliverables, created under this Contract are the sole property of the State. The Contractor is not entitled to a patent or copyright on those materials and may not transfer the patent or copyright to anyone else. The Contractor shall not use or release these materials without the prior written consent of the State.
3.8. Ownership of Intellectual Property. Any and all intellectual property, including but not limited to copyright, invention, trademark, trade name, service mark, and/or trade secrets created or conceived pursuant to or as a result of this Contract and any related Subcontract (“Intellectual Property”), shall be work made for hire and the State shall be considered the creator of such Intellectual Property. The agency, department, division, board or commission of the State of Arizona requesting the issuance of this Contract shall own (for and on behalf of the State) the entire right, title and interest to the Intellectual Property throughout the world. Contractor shall notify the State, within thirty (30) days, of the creation of any Intellectual Property by it or its Subcontractor(s). Contractor, on behalf of itself and any Subcontractor(s), agrees to execute any and all document(s) necessary to assure ownership of the Intellectual Property vests in the State and shall take no affirmative actions that might have the effect of vesting all or part of the Intellectual Property in any entity other than the State. The Intellectual Property shall not be disclosed by Contractor or its Subcontractor(s) to any entity not the State without the express written authorization of the agency, department, division, board or commission of the State of Arizona requesting the issuance of this Contract. 3.9. Federal Immigration and Nationality Act. The Contractor shall comply with all federal, state and local immigration laws and regulations relating to the immigration status of their employees during the term of the Contract. Further, the Contractor shall flow down this requirement to all Subcontractors utilized during the term of the Contract. The State shall retain the right to perform random audits of Contractor and Subcontractor records or to inspect papers of any employee thereof to ensure compliance. Should the State determine that the Contractor and/or any Subcontractors be found noncompliant, the State may pursue all remedies allowed by law, including, but not limited to; suspension of work, termination of the contract for default and suspension and/or debarment of the Contractor.
3.10 E-Verify Requirements. In accordance with A.R.S. § 41-4401, Contractor warrants compliance with all Federal immigration laws and regulations relating to employees and warrants its compliance with Section A.R.S. § 23-214, Subsection A.
3.11 Offshore Performance of Work Prohibited. Any services that are described in the specifications or scope of work that directly serve the State of Arizona or its clients and involve access to secure or sensitive data or personal client data shall be performed within the defined territories of the United States. Unless specifically stated otherwise in the specifications, this paragraph does not apply to indirect or 'overhead' services, redundant back-up services or services that are incidental to the performance of the Contract. This provision applies to work performed by Subcontractors at all tiers. 4. Costs and Payments 4.1. Payments. Payments shall comply with the requirements of A.R.S. Titles 35 and 41, Net 30 days. Upon receipt and acceptance of goods or services, the Contractor shall submit a complete and accurate invoice for payment from the State within thirty (30) days.
Uniform Terms and Conditions State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 41 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
4.2. Delivery. Unless stated otherwise in the Contract, all prices shall be F.O.B. Destination and shall include all freight delivery and unloading at the destination.
4.3. Applicable Taxes.
4.3.1. Payment of Taxes. The Contractor shall be responsible for paying all applicable taxes.
4.3.2. State and Local Transaction Privilege Taxes. The State of Arizona is subject to all applicable state and local transaction privilege taxes. Transaction privilege taxes apply to the sale and are the responsibility of the seller to remit. Failure to collect such taxes from the buyer does not relieve the seller from its obligation to remit taxes.
4.3.3. Tax Indemnification. Contractor and all Subcontractors shall pay all Federal, state and local taxes applicable to its operation and any persons employed by the Contractor. Contractor shall, and require all Subcontractors to hold the State harmless from any responsibility for taxes, damages and interest, if applicable, contributions required under Federal, and/or state and local laws and regulations and any other costs including transaction privilege taxes, unemployment compensation insurance, Social Security and Worker’s Compensation.
4.3.4. IRS W9 Form. In order to receive payment the Contractor shall have a current I.R.S. W9 Form on file with the State of Arizona, unless not required by law.
4.4. Availability of Funds for the Next State Fiscal Year. Funds may not presently be available for performance under this Contract beyond the current State Fiscal Year. No legal liability on the part of the State for any payment may arise under this Contract beyond the current State Fiscal Year until funds are made available for performance of this Contract.
4.5. Availability of Funds for the Current State Fiscal Year. Should the State Legislature enter back into session and reduce the appropriations or for any reason and these goods or services are not funded, the State may take any of the following actions:
4.5.1. Accept a decrease in price offered by the Contractor;
4.5.2. Cancel the Contract; or
4.5.3. Cancel the Contract and re-solicit the requirements.
5. Contract Changes
5.1. Amendments. This Contract is issued under the authority of the Procurement Officer who signed this Contract. The Contract may be modified only through a Contract Amendment within the scope of the Contract. Changes to the Contract, including the addition of work or materials, the revision of payment terms, or the substitution of work or materials, directed by a person who is not specifically authorized by the procurement officer in writing or made unilaterally by the Contractor are violations of the Contract and of applicable law. Such changes, including unauthorized written Contract Amendments shall be void and without effect, and the Contractor shall not be entitled to any claim under this Contract based on those changes.
5.2. Subcontracts. The Contractor shall not enter into any Subcontract under this Contract for the performance of this Contract without the advance written approval of the Procurement Officer. The Contractor shall clearly list any proposed Subcontractors and the Subcontractor’s proposed responsibilities. The Subcontract shall incorporate by reference the terms and conditions of this Contract.
5.3. Assignment and Delegation. The Contractor shall not assign any right nor delegate any duty under this Contract without the prior written approval of the Procurement Officer. The State shall not unreasonably
Uniform Terms and Conditions State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 42 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
withhold approval.
6. Risk and Liability
6.1. Risk of Loss: The Contractor shall bear all loss of conforming material covered under this Contract until received by authorized personnel at the location designated in the purchase order or Contract. Mere receipt does not constitute final acceptance. The risk of loss for nonconforming materials shall remain with the Contractor regardless of receipt.
6.2. Indemnification
6.2.1. Contractor/Vendor Indemnification (Not Public Agency) The parties to this Contract agree that the State of Arizona, its departments, agencies, boards and commissions shall be indemnified and held harmless by the Contractor for the vicarious liability of the State as a result of entering into this Contract. However, the parties further agree that the State of Arizona, its departments, agencies, boards and commissions shall be responsible for its own negligence. Each party to this Contract is responsible for its own negligence.
6.3. Indemnification - Patent and Copyright. The Contractor shall indemnify and hold harmless the State against any liability, including costs and expenses, for infringement of any patent, trademark or copyright arising out of Contract performance or use by the State of materials furnished or work performed under this Contract. The State shall reasonably notify the Contractor of any claim for which it may be liable under this paragraph. If the Contractor is insured pursuant to A.R.S. § 41-621 and § 35-155, this section shall not apply.
6.4. Force Majeure.
6.4.1 Except for payment of sums due, neither party shall be liable to the other nor deemed in default under this Contract if and to the extent that such party’s performance of this Contract is prevented by reason of force majeure. The term “force majeure” means an occurrence that is beyond the control of the party affected and occurs without its fault or negligence. Without limiting the foregoing, force majeure includes acts of God; acts of the public enemy; war; riots; strikes; mobilization; labor disputes; civil disorders; fire; flood; lockouts; injunctions-intervention-acts; or failures or refusals to act by government authority; and other similar occurrences beyond the control of the party declaring force majeure which such party is unable to prevent by exercising reasonable diligence.
6.4.2. Force Majeure shall not include the following occurrences:
6.4.2.1. Late delivery of equipment or materials caused by congestion at a manufacturer’s plant or elsewhere, or an oversold condition of the market;
6.4.2.2. Late performance by a Subcontractor unless the delay arises out of a force majeure occurrence in accordance with this force majeure term and condition; or
6.4.2.3. Inability of either the Contractor or any Subcontractor to acquire or maintain any required insurance, bonds, licenses or permits.
6.4.3. If either party is delayed at any time in the progress of the work by force majeure, the delayed party shall notify the other party in writing of such delay, as soon as is practicable and no later than the following working day, of the commencement thereof and shall specify the causes of such delay in such notice. Such notice shall be delivered or mailed certified-return receipt and shall make a specific reference to this article, thereby invoking its provisions. The delayed party shall cause such delay to cease as soon as practicable and shall notify the other party in writing when it has done so. The time of completion shall be extended by Contract Amendment for a
Uniform Terms and Conditions State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 43 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
period of time equal to the time that results or effects of such delay prevent the delayed party from performing in accordance with this Contract.
6.4.4. Any delay or failure in performance by either party hereto shall not constitute default hereunder or give rise to any claim for damages or loss of anticipated profits if, and to the extent that such delay or failure is caused by force majeure.
6.5. Third Party Antitrust Violations. The Contractor assigns to the State any claim for overcharges resulting from antitrust violations to the extent that those violations concern materials or services supplied by third parties to the Contractor, toward fulfillment of this Contract.
7. Warranties
7.1. Liens. The Contractor warrants that the materials supplied under this Contract are free of liens and shall remain free of liens.
7.2. Quality. Unless otherwise modified elsewhere in these terms and conditions, the Contractor warrants that, for one year after acceptance by the State of the materials, they shall be:
7.2.1. Of a quality to pass without objection in the trade under the Contract description;
7.2.2. Fit for the intended purposes for which the materials are used;
7.2.3. Within the variations permitted by the Contract and are of even kind, quantity, and quality within each unit and among all units;
7.2.4. Adequately contained, packaged and marked as the Contract may require; and
7.2.5. Conform to the written promises or affirmations of fact made by the Contractor.
7.3. Fitness. The Contractor warrants that any material supplied to the State shall fully conform to all requirements of the Contract and all representations of the Contractor, and shall be fit for all purposes and uses required by the Contract.
7.4. Inspection/Testing. The warranties set forth in subparagraphs 7.1 through 7.3 of this paragraph are not affected by inspection or testing of or payment for the materials by the State. 7.5. Compliance With Applicable Laws. The materials and services supplied under this Contract shall comply with all applicable Federal, state and local laws, and the Contractor shall maintain all applicable license and permit requirements. 7.6. Survival of Rights and Obligations after Contract Expiration or Termination.
7.6.1. Contractor's Representations and Warranties. All representations and warranties made by the Contractor under this Contract shall survive the expiration or termination hereof. In addition, the parties hereto acknowledge that pursuant to A.R.S. § 12-510, except as provided in A.R.S. § 12- 529, the State is not subject to or barred by any limitations of actions prescribed in A.R.S., Title 12, Chapter 5.
7.6.2. Purchase Orders. The Contractor shall, in accordance with all terms and conditions of the Contract, fully perform and shall be obligated to comply with all purchase orders received by the Contractor prior to the expiration or termination hereof, unless otherwise directed in writing by the Procurement Officer, including, without limitation, all purchase orders received prior to but not fully performed and satisfied at the expiration or termination of this Contract.
8. State's Contractual Remedies
Uniform Terms and Conditions State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 44 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
8.1. Right to Assurance. If the State in good faith has reason to believe that the Contractor does not intend to, or is unable to perform or continue performing under this Contract, the Procurement Officer may demand in writing that the Contractor give a written assurance of intent to perform. Failure by the Contractor to provide written assurance within the number of Days specified in the demand may, at the State’s option, be the basis for terminating the Contract under the Uniform Terms and Conditions or other rights and remedies available by law or provided by the contract.
8.2. Stop Work Order.
8.2.1. The State may, at any time, by written order to the Contractor, require the Contractor to stop all or any part, of the work called for by this Contract for period(s) of days indicated by the State after the order is delivered to the Contractor. The order shall be specifically identified as a stop work order issued under this clause. Upon receipt of the order, the Contractor shall immediately comply with its terms and take all reasonable steps to minimize the incurrence of costs allocable to the work covered by the order during the period of work stoppage.
8.2.2. If a stop work order issued under this clause is canceled or the period of the order or any extension expires, the Contractor shall resume work. The Procurement Officer shall make an equitable adjustment in the delivery schedule or Contract price, or both, and the Contract shall be amended in writing accordingly.
8.3. Non-exclusive Remedies. The rights and the remedies of the State under this Contract are not exclusive.
8.4. Nonconforming Tender. Materials or services supplied under this Contract shall fully comply with the Contract. The delivery of materials or services or a portion of the materials or services that do not fully comply constitutes a breach of contract. On delivery of nonconforming materials or services, the State may terminate the Contract for default under applicable termination clauses in the Contract, exercise any of its rights and remedies under the Uniform Commercial Code, or pursue any other right or remedy available to it.
8.5. Right of Offset. The State shall be entitled to offset against any sums due the Contractor, any expenses or costs incurred by the State, or damages assessed by the State concerning the Contractor’s non- conforming performance or failure to perform the Contract, including expenses, costs and damages described in the Uniform Terms and Conditions.
9. Contract Termination
9.1. Cancellation for Conflict of Interest. Pursuant to A.R.S. § 38-511, the State may cancel this Contract within three (3) years after Contract execution without penalty or further obligation if any person significantly involved in initiating, negotiating, securing, drafting or creating the Contract on behalf of the State is or becomes at any time while the Contract or an extension of the Contract is in effect an employee of or a consultant to any other party to this Contract with respect to the subject matter of the Contract. The cancellation shall be effective when the Contractor receives written notice of the cancellation unless the notice specifies a later time. If the Contractor is a political subdivision of the State, it may also cancel this Contract as provided in A.R.S. § 38-511.
9.2. Gratuities. The State may, by written notice, terminate this Contract, in whole or in part, if the State determines that employment or a Gratuity was offered or made by the Contractor or a representative of the Contractor to any officer or employee of the State for the purpose of influencing the outcome of the procurement or securing the Contract, an amendment to the Contract, or favorable treatment concerning the Contract, including the making of any determination or decision about Contract performance. The State, in addition to any other rights or remedies, shall be entitled to recover exemplary damages in the amount of three times the value of the Gratuity offered by the Contractor.
9.3. Suspension or Debarment. The State may, by written notice to the Contractor, immediately terminate this
Uniform Terms and Conditions State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 45 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
Contract if the State determines that the Contractor has been debarred, suspended or otherwise lawfully prohibited from participating in any public procurement activity, including but not limited to, being disapproved as a subcontractor of any public procurement unit or other governmental body. Submittal of an Offer or execution of a Contract shall attest that the Contractor is not currently suspended or debarred. If the Contractor becomes suspended or debarred, the Contractor shall immediately notify the State.
9.4. Termination for Convenience. The State reserves the right to terminate the Contract, in whole or in part at any time when in the best interest of the State, without penalty or recourse. Upon receipt of the written notice, the Contractor shall stop all work, as directed in the notice, notify all Subcontractors of the effective date of the termination and minimize all further costs to the State. In the event of termination under this paragraph, all documents, data and reports prepared by the Contractor under the Contract shall become the property of and be delivered to the State upon demand. The Contractor shall be entitled to receive just and equitable compensation for work in progress, work completed and materials accepted before the effective date of the termination. The cost principles and procedures provided in A.A.C. R2-7-701 shall apply.
9.5. Termination for Default.
9.5.1. In addition to the rights reserved in the Contract, the State may terminate the Contract in whole or in part due to the failure of the Contractor to comply with any term or condition of the Contract, to acquire and maintain all required insurance policies, bonds, licenses and permits, or to make satisfactory progress in performing the Contract. The Procurement Officer shall provide written notice of the termination and the reasons for it to the Contractor.
9.5.2. Upon termination under this paragraph, all goods, materials, documents, data and reports prepared by the Contractor under the Contract shall become the property of and be delivered to the State on demand.
9.5.3. The State may, upon termination of this Contract, procure, on terms and in the manner that it deems appropriate, materials or services to replace those under this Contract. The Contractor shall be liable to the State for any excess costs incurred by the State in procuring materials or services in substitution for those due from the Contractor.
9.6. Continuation of Performance Through Termination. The Contractor shall continue to perform, in accordance with the requirements of the Contract, up to the date of termination, as directed in the termination notice.
10. Contract Claims
10.1 All contract claims or controversies under this Contract shall be resolved according to A.R.S. Title 41, Chapter 23, Article 9, and rules adopted thereunder.
11. Arbitration
11.1 The parties to this Contract agree to resolve all disputes arising out of or relating to this Contract through arbitration, after exhausting applicable administrative review, to the extent required by A.R.S. § 12-1518, except as may be required by other applicable statutes (Title 41).
12. Comments Welcome 12.1 The State Procurement Office periodically reviews the Uniform Terms and Conditions and welcomes any comments you may have. Please submit your comments to: State Procurement Administrator, State Procurement Office, 100 North 15th Avenue, Suite 201, Phoenix, Arizona, 85007.
Special Instructions to Offerors State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 46 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
1. DEFINITIONS
1.1. ProcureAZ terms. ProcureAZ (https://procure.az.gov) is the State’s online eProcurement system. Although the system was configured for the State’s needs, the application is based on a commercial product known as BuySpeed Online, made by Periscope Holdings, Inc. As a result, some of the terms used in the BuySpeed Online application may be semantically different to similar terms used by the State. The following terms are as they appear in BuySpeed Online (and ProcureAZ), along with their corresponding meanings as they apply to the Solicitation.
1.1.1. “Allow Electronic Quote” means an indicator, signifying whether or not Offers may be submitted in ProcureAZ.
1.1.2. “Alternate ID” means a data field, in which may contain additional data in order to link a Solicitation to a related project, activity or program.
1.1.3. “Amendments” means Solicitation amendments.
1.1.4. “Available Date” means a data field, in which may contain the date that the Solicitation was published.
1.1.5. “Bid”, depending on its use may mean Solicitation or Offer. For example, in the terms “Bid Solicitation” and “Bid Number”, the term “Bid” means Solicitation. In the terms “Bid Opening Date” and “Pre Bid Conference”, “Bid” means Offer.
1.1.6. “Bid Number” means the Solicitation’s identification number.
1.1.7. “Method” means the type of Solicitation process being conducted.
1.1.8. “Bid Opening Date” means the date and time Offers are due.
1.1.9. “Bid Solicitation” means Solicitation.
1.1.10. “Bid Type” means the extent the Solicitation notices were issued, ranging from “OPEN” (notices went to vendors registered with the selected commodity codes) to “CLOSED” (notices were only sent to the specific vendors invited by the State).
1.1.11. “Bill-to Address” means the department address where invoices occurring under any resulting Contract may be billed.
1.1.12. “Bulletin Description” means a data field, in which may contain additional information regarding the scope of the Solicitation.
1.1.13. “Buyer” means Procurement Officer.
1.1.14. “Description” means the Solicitation’s title.
1.1.15. “Info Contact” means a data field, in which may contain the contact information of a person to whom inquiries are to be directed.
1.1.16. “Pre Bid Conference” means pre-offer conference.
1.1.17. “Purchase Method” means the type of contract transaction contemplated, ranging from an “Open Market” (one- time) transaction to a “Blanket” (term) transaction.
1.1.18. “Quote” means Offer.
1.1.19. “Required Date” means a data field, in which may contain the date that the materials, services or construction are needed by the State.
Special Instructions to Offerors State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 47 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
1.1.20. “Ship-to Address” means the department address where materials, services or construction purchased under any resulting Contract may be billed.
2. QUESTIONS
2.1. All questions related to this Request for Proposal shall be in writing and shall be directed through the State’s E- Procurement System, ProcureAZ using the Q&A tab. Questions will be answered via ProcureAZ and are due no less than ten (10) calendar days prior to the Solicitation due date and time. Any other contact shall be directed to Diane Miller at [email protected]. Questions related to a Solicitation should refer to the appropriate Solicitation number, page and paragraph number.
2.2. Offerors shall not contact the employees of the using Agency concerning this procurement while the proposal and evaluation are in process.
3. CONFIDENTIAL INFORMATION
3.1 If a person believes that any portion of a proposal, bid, Offer, specification, protest or correspondence contains information that should be withheld, then the Procurement Officer shall be so advised in writing (Price is not confidential and will not be withheld). Such material shall be identified as confidential wherever it appears. The State, pursuant to A.C.R.R. R2-7-104, shall review all requests for confidentiality and provide a written determination. If the confidential request is denied, such information shall be disclosed as public information, unless the person utilizes the 'Protest' provision as noted in §41-2611 through §41-2616.
4. SUBMISSION OF OFFER
4.1. Electronic Documents. The Solicitation document is provided in an electronic format. Any unidentified alteration or modification to any Solicitation documents, to any attachments, exhibits, forms, charts or illustrations contained herein shall be null and void. In those instances where modifications are identified, the original document published by the State shall take precedence. As provided in the Solicitation Instructions, Offerors are responsible for clearly identifying any and all changes or modifications to any Solicitation documents upon submission to the State.
4.2. Acceptable Formats. Offer electronic files shall be submitted in a format acceptable to the State. Acceptable formats include .DOC and .DOCX (Microsoft Word), .XLS and .XLSX (Microsoft Excel), .PPT and .PPTX (Microsoft PowerPoint) and .PDF (Adobe Acrobat). Other file formats may also be acceptable, including .ZIP (not ZIPx), .MDB, .MDBX, .MPP, MPPX, .VSD, .JPG, .GIF, and .BMP. Offerors wishing to submit files in these or other formats shall submit an inquiry to the Procurement Officer.
4.3. Submission Required in ProcureAZ
4.3.1. Offers in response to this Solicitation shall be submitted within the State’s eProcurement system, PROCUREAZ (https://procure.az.gov). Please be advised that utilizing ProcureAZ requires a certain level of technical competency that should be considered when selecting staff to work the system. The successful submission of your Offer in ProcureAZ is critical in order for the State to receive and evaluate your Offer. Therefore, particular focus should be placed on the selection of staff given the responsibility for submitting your Offer in ProcureAZ. Offers shall be received before the date/time listed in the Solicitation’s ‘Bid Opening Date’ field. Offers submitted outside PROCUREAZ, or those that are received after the date/time stated in the ‘Bid Opening Date’ field, shall be rejected. Questions in this regard shall be directed to the Procurement Officer or to the PROCUREAZ Help Desk ([email protected] or 602-542-7600).
4.3.2. To submit an Offer, Offerors must register in the ProcureAZ system.
4.3.3. To assist Offerors in the submission of a quote/Offer, ProcureAZ offers a Help Desk with email ([email protected]) and telephone support (602) 542-7600), and a Quick Reference Guide – Responding to Solicitations, http://www.spo.az/ProcureAZ/Vendors/default.asp. Offerors are encouraged to submit any
Special Instructions to Offerors State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 48 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
requests for assistance in a timely manner in order to meet the bid due date and time identified on the Notice Page.
5. PREPARATION OF BID PACKAGE
5.1. Only the following items shall be returned with the bid package. Failure to provide all of the items and the information requested may result in a bid being rejected.
5.2. The Offeror is cautioned that it is the Offeror’s sole responsibility to submit the required information which relates to the evaluation categories and that the ADOA is under no obligation to solicit such information if it is not included with the Offer. Failure to include and complete, as prescribed, the below information may cause a negative impact on the evaluation of the Offer. Lack of care in preparing an Offer shall not be grounds for a Contract claim.
6. REQUIRED INFORMATION
6.1. The Offer shall include the following and should be presented in the order in which they appear. FAILURE TO PROVIDE ALL OF THE REQUIRED INFORMATION MAY RESULT IN REJECTION OF THE PROPOSAL.
6.1.1. Offer and Acceptance. Offers shall include a signed Offer and Acceptance form (Page 2 of this Solicitation). The Offer and Acceptance Form shall be signed with an original signature by the person signing the Offer, and shall be submitted electronically with the submitted bid no later than the Offer due date and time. Failure to return an Offer and Acceptance Form may result in rejection of the Offer.
6.1.2. Acknowledgement of Solicitation Amendments. All Solicitation Amendments shall be acknowledged electronically prior to the Offer due date and time. Failure to acknowledge all Solicitation Amendments may result in rejection of the Offer.
6.1.3. Proposal Content. Offers shall include the following completed documents in their proposal. Failure to follow Proposal Content Instructions may result in rejection of Offer. Offeror shall limit its responses on Response Form 1 such that it shall not exceed thirty (30) pages in length. The Response Forms to be filled out are available as separate attachments within ProcureAZ.
6.1.3.1. Attachment I – Designation of Confidential, Trade Secret & Proprietary Information
6.1.3.2. Response Form 1 - Method of Approach to Scope of Work Questionnaire
6.1.3.3. Response Form 2 - Summary of Firm/Capacity of Offeror Questionnaire (and the following attachments are required with the Offer): Attachment 1 – Identity and Organization Chart (refer to section 7.2.1 and 7.2.2 below) Attachment 2 – Key Personnel, including resumes (refer to section 7.2.2 below) Attachment 3 – Experience (refer to section 7.2.3 below) Attachment 4 – Proposed Subcontractors and description of selection process, if applicable. (Refer to section 7.2.4 below) Attachment 5 – Audited Financial Statements (refer to section 7.2.5 below) Attachment 6 – Authority to do Business in Arizona (refer to section 7.2.6 below)
6.1.3.4. Response Form 3 - References; provide at least five (5) professional references, at least two (2) of which should be government clients other than the AZ Lottery that can be contacted as part of the evaluation (refer to section 7.2.3.1 below). Attachment 7 – Other Customer Experience List (refer to section 7.2.3.2 below)
6.1.3.5. Samples of Work. Samples must be from within the last three (3) years for clients other than the AZ Lottery. Samples shall be furnished at no expense to the State. Samples shall be uploaded and
Special Instructions to Offerors State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 49 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
submitted via ProcureAZ.gov. Refer to sections 4.2 Acceptable Formats and 7.3 Instructions for Samples of Work.
6.1.3.6. Response Form 4 - Price Sheet; any services required by the Scope of Work or offered in the Offeror response are considered to be covered in the fee for Services. All price line items in ProcureAZ must be completed. Additional pricing has been requested on Response Form 4 and must be filled out and submitted as an attachment to the Offer, labeled Attachment 8 – Additional Pricing.
6.1.3.7. Exceptions – Any exceptions to the Scope of Work, Terms and Conditions, or any other part of this Solicitation must be delineated in a separate attachment, labeled Attachment 9 - Exceptions. Exceptions may impact an Offeror’s susceptibility for award.
6.1.4. Price Submission. Offerors shall submit their pricing as follows, failure to complete ProcureAZ and Response Form 4 Price Sheet as follows may result in Offeror(s) submission being deemed non-responsive:
6.1.4.1. ProcureAZ Pricing: To be considered responsive, please complete the Line Items for ProcureAZ processing. If Offeror is not bidding on a line item, check the “No Bid” box. Do not leave the Items blank.
6.1.4.2. Offeror(s) shall submit Price Sheet as requested utilizing Response Form 4 – Price Sheet.
7. INSTRUCTIONS FOR PROVIDING THE REQUIRED INFORMATION – PROPOSAL CONTENT
7.1. Instructions for Method of Approach – The Scope of Work define the services that the Contractor shall provide.
7.1.1. Offeror’s methodology shall adhere to the Scope of Work and all requirements stated therein. The Offeror shall upload in ProcureAZ Response Form 1 - Method of Approach Questionnaire and its additional documents that best exhibit their ability to meet each of the required objectives in the Scope of Work through demonstration of past experience, solutions, prior art, and measured results. Offerors shall clearly state their understanding of the Scope of Work and their acceptance of all requirements, noting any exceptions they take, either within the text of the requirements or in a sub-section of such and clearly titled “Exceptions”. Offerors taking exceptions may propose alternate language for the State's consideration. Exceptions taken to the Scope of Work or the Requirements therein may negatively affect the State's evaluation of the Offeror’s proposals. In addition to responding to the requirements of the Scope of Work, Methodology should include:
7.1.1.1. Proposals for benchmarking Advertising trends and for measuring performance of AZ Lottery Advertising Services;
7.1.1.2. Description of how the Offeror will effect an orderly transition from the previous contractor or to the State or to another Contractor upon termination of this Contract for any reason;
7.1.1.3. A proposed approach for calculating and administering liquidated damages in the event that service levels do not meet the agreed-upon levels;
7.1.1.4. A preliminary assessment of where the Offeror believes the State could reduce its Advertising expenses without negatively impacting quality or service level;
7.1.1.5. A preliminary proposal for calculating and identifying a cost reduction sharing program wherein you are able to share a portion of the realized savings in Advertising Services spending through bulk buying or other processes that you help the AZ Lottery realize.
7.2. Summary of Firm / Capacity of Offeror. In addition to Response Form 2 - Summary of Firm/Capacity of Offeror Questionnaire, Offerors shall provide an electronic document or file entitled ' ADSPO16-00005378 - [Offeror Name], Capacity of Offeror.' Multiple documents may be provided in a single file so long as this file is named in accordance with the aforementioned format and each of the included documents are similarly labeled - differing only to indicate their
Special Instructions to Offerors State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 50 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68 respective contents. Offerors shall include in this document evidence of their ability to provide all services and/or supplies sought under this Solicitation. In this section, the Special Instructions to Offerors, the Solicitation provides instructions for the types of information the State seeks in determining Offeror’s capacity to perform. Offerors shall include in this section their responses to each of the following items.
7.2.1. Identity and Organization. Offerors shall describe their total organization, including any parent companies, subsidiaries, affiliates, and other related entities. Offerors shall describe the ownership structure including any significant or controlling equity holders. Offerors shall provide an organizational chart for their overall organization showing each entity within the organization. Offerors comprised of multiple organizations or alliances shall identify all entities to be providing supplies and/or services to the State - see also the State's prohibition on offshore work performance cited hereunder. Offerors shall clarify the respective duties and roles of all associated organizations that would support the State, with percentages and areas of responsibilities allocated across all such organizations. Offerors composed of multiple organizations shall identify a single or lead organization, including a contact person therein, who will be responsible for all communications with the State throughout the Solicitation process.
7.2.2. Key Personnel. Offerors shall provide the names of all proposed Account Services Staff who would be providing services to the State under any resulting contract. Information provided on such individuals shall include: (a) name; (b) proposed responsibilities; (c) telephone number; (d) e-mail Address; (e) qualifications (i.e., a resume and certifications); (f) experience (previous work assignments as may relate to this RFP); and (g) an organizational chart detailing where all such individuals relate to each other organizationally and to the State with regard to the services proposed. Offeror shall cite their percent of turnover for the last three (3) years of those positions listed as key personnel and all other relevant staff that would be responsible for performing services to the State under any resulting Contract. Offerors shall describe their customary selection and replacement procedures for all key personnel and relevant staff. Offerors shall clarify their intent to maintain the quantities and quality of all such key personnel and relevant staff positions throughout the term of any resulting Contract.
7.2.2.1. In its proposal, Offerors must provide a full-time employee chart outlining the percentage of time that each assigned employee shall be devoted to performing an aspect of the Scope of Work.
7.2.3. Experience. Offerors shall describe the scope of Advertising Services for which they have been responsible; their experience, including number of years in business; qualifications and membership in professional associations, societies or boards; and the number of years of experience acting as a prime contractor providing Advertising Services similar to the services described in their proposal.
7.2.3.1. Offerors shall provide at a minimum five (5) customer references, at least two (2) of which should be for government clients. Reference information should include the following data: (a) client name; (b) contract title or contract reference number; (c) primary contact, title and telephone number; (d) contract dates; (e) contract amount; (f) type of contract - public or private sector; (g) length of relationship with Client; and (h) description of innovative solutions implemented to meet customer needs.
7.2.3.2. Offerors shall provide the names and contact information of all previous customers over the last three (3) years for whom Advertising Services were provided but were discontinued for whatever reason. The State shall have the option to contact these customers at its discretion. Offerors shall fully disclose their involvement in any legal proceedings, lawsuits or governmental regulatory actions, taken or pending, and any contractual demands for assurance regarding their provision of similar services.
7.2.4. Subcontractors. In the event that Subcontractors are utilized to provide any service outlined in this Solicitation, the Offeror should include the following information regarding Subcontractors:
7.2.4.1. Subcontractor’s area of responsibilities under a resultant Contract;
7.2.4.2. Name of the firm and individual(s) who will provide direct services;
7.2.4.3. The anticipated percentage of Advertising Services the individual will be responsible for; and
Special Instructions to Offerors State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 51 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
7.2.4.4. A commitment statement from the firm and designated individual(s) who will provide the Advertising Services.
7.2.5. Financial Soundness. Offeror shall demonstrate their financial stability. Offeror’s proposals which do not include or do not include sufficient information regarding their financial stability may be negatively impacted.
7.2.5.1. The Offeror shall at a minimum submit a copy of their independently audited financial statements from the last three (3) years and any other financial description that will adequately provide factual documentation of the financial stability of the Offeror. The Offeror must provide the AZ Lottery with adequate information to permit an evaluation of its financial capabilities to undertake and satisfactorily perform any Contract pursuant to the RFP.
7.2.5.2. If the Offeror is a subsidiary of another corporation, the above information must also be supplied for the parent corporation. The AZ Lottery reserves the right to require any additional information necessary to determine the financial integrity and responsibility of the Offeror.
7.2.5.3. If the Offeror experiences substantial change in its financial condition during the period prior to the award of any Contract pursuant to this RFP, or if any Offeror experiences a substantial change during the term of the Contract, the AZ Lottery must be notified of the change in writing at the time the change occurs or is identified.
7.2.6. Authority to do Business in Arizona
7.2.6.1. The Offeror shall submit copies of professional and business licenses that authorize the Offeror to perform the Advertising Services required in this Solicitation.
7.3. Instructions for Samples of Work
7.3.1. Provide one (1) comprehensive statewide marketing campaign, including a narrative that describes any market research and analysis, budget, objectives, creative strategy, media strategy and execution, documented results, and copies of any advertisements and/or marketing materials.
7.3.2. Provide two (2) summaries of broadcast media purchases for statewide advertising campaigns that included thirty second (:30) ads for both radio and television. Each summary should include the timeframe of broadcast, primary target audience, stations used, total number of spots by media type, and total cost by media type. The television portion of each summary should also include gross rating points, cost per point, and day part distribution of ads in the Phoenix, Flagstaff, and Tucson markets. Copies of the ads are not necessary, unless otherwise included in the samples requested in Section 7.3.3.
7.3.3. Provide the following samples and briefly explain why the particular sample was selected:
7.3.3.1. Three (3) TV ads (the ads can provided via a WAV file);
7.3.3.2. Three (3) radio ads;
7.3.3.3. Three (3) print ads designed for newspaper publication;
7.3.3.4. Three (3) print ads designed for magazine or event program publication;
7.3.3.5. Three (3) images or photos of point of sale samples of maximum variety;
7.3.3.6. Two (2) URL addresses of agency-designed websites;
7.3.3.7. Two (2) layout images of brochures or other collateral material;
Special Instructions to Offerors State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 52 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
7.3.3.8. Two (2) images of outdoor advertisements;
7.3.3.9. Two (2) images of website designs for clients;
7.3.3.10. One (1) image of a unique or innovative advertising piece not specifically listed above; and
7.3.3.11. Images of three (3) logos designed for clients.
8. EVALUATION
8.1. Evaluation. In accordance with the Arizona Procurement Code A.R.S. § 41-2534, awards shall be made to the responsible Offeror(s) whose proposal is determined in writing to be the most advantageous to the State based upon the evaluation criteria listed below. An evaluation committee will evaluate the Offer(s) based on the factors listed in their relative order of importance.
Experience/Expertise/Reliability and Capacity Conformance to Scope of Work and Methodology Samples of Work Pricing
8.2. In addition to the evaluation criteria, exceptions to terms and conditions, as stated in the Uniform Instruction Section C.3, may impact an Offeror’s susceptibility for award.
8.3 Clarifications. Upon receipt and opening of proposals submitted in response to this Solicitation, the State may request oral or written clarifications, including demonstrations or questions and answers, for the sole purpose of information gathering or of eliminating minor informalities or correcting nonjudgmental mistakes in proposals. Clarifications shall not otherwise afford the Offerors the opportunity to alter or change its proposal.
8.4. Interviews/Discussions. State may conduct Discussions with those Offerors who’s Offers are determined by the State to be reasonable susceptible of being selected for award. Discussions may be in writing or in person and may include presentations/interviews.
8.5. Final Proposal Revisions. If discussions are conducted, the State shall issue a written request for Final Proposal Revisions. The request shall set forth the date, time and place for the submission of Final Proposal Revisions.
9. Responsibility, Responsiveness and Susceptibility. In accordance with A.R.S. 41-2534(G), A.A.C. R2-7-C311, A.A.C. R2-7-C312 and R2-7-C316, the State shall consider, at a minimum, the following criteria when determining Offeror’s responsibility, as well, as the proposal’s responsiveness and susceptibility for Contract award.
9.1. Whether the Offeror has had a contract within the last five (5) years that was terminated for cause due to breach or similar failure to comply with the terms of the contract;
9.2. Whether the Offeror’s record of performance includes factual evidence of failure to satisfy the terms of the Offeror’s agreements with any party to a contract. Factual evidence may consist of documented vendor performance reports, customer complaints and/or negative references;
9.3. Whether the Offeror is legally qualified to contract with the State and the Offeror’s financial, business, personnel, or other resources, including Subcontractors;
9.3.1. Legally qualified includes if the vendor or if key personnel have been debarred, suspended or otherwise lawfully prohibited from participating in any public procurement activity, including but not limited to, being disapproved as a subcontractor of any public procurement unit or other governmental body.
9.4. Whether the Offeror promptly supplied all requested information concerning its responsibility;
Special Instructions to Offerors State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 53 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
9.5. Whether the Offer was sufficient to permit evaluation by the State, in accordance with the evaluation criteria identified in this Solicitation or other necessary Offer components. Necessary Offer components include: attachments, documents or forms to be submitted with the Offer, an indication of the intent to be bound, reasonable or acceptable approach to perform the Scope of Work, acknowledged Solicitation Amendments, references to include experience verification, adequacy of financial/business/personal or other resources to include a performance bond and stability including Subcontractors and any other data specifically requested in the Solicitation;
9.6. Whether the Offer was in conformance with the requirements contained in the Scope of Work, Terms and Conditions, and Instructions for the Solicitation including its Amendments and all documents incorporated by reference;
9.7. Whether the Offer limits the rights of the State;
9.8. Whether the Offer includes or is subject to unreasonable conditions, to include conditions upon the State necessary for successful Contract performance. The State shall be the sole determiner as to the reasonableness of a condition;
9.9. Whether the Offer materially changes the contents set forth in the Solicitation, which includes the Scope of Work, Terms and Conditions, or Instructions; and,
9.10. Whether the Offeror provides misleading or inaccurate information.
10. AWARD
10.1. Contract Document Consolidation. At its sole option, following any Contract award(s) the State may consolidate the resulting Contract documents. Examples of such consolidation would include (i) reorganizing Solicitation documents and those components of the Contractor’s Offer not pertaining to the Contract’s operations; (ii) revising the Scope of Work to incorporate the Contractor’s response, (iii) revising any terms and conditions to incorporate any changes in the Contractor’s Offer; (iv) excluding any components of the Contractor’s Offer that were not awarded. Contract document consolidation shall not materially change the Contract.
Uniform Instructions to Offerors State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 54 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
A. Definition of Terms
As used in these Instructions, the terms listed below are defined as follows:
1. “Attachment” means any item the Solicitation requires an Offeror to submit as part of the Offer.
2. ‘Best and Final Offer” means a revision to an Offer submitted after negotiations are completed that contains the Offeror’s most favorable terms for price, service, and products to be delivered. Sometimes referred to as a Final Proposal Revision.
3. “Contract” means the combination of the Solicitation, including the Uniform and Special Terms and Conditions, and the Specifications and Statement or Scope of Work; the Offer, any Clarifications, and any Best and Final Offers; and any Solicitation Amendments or Contract Amendments.
4. "Contract Amendment" means a written document signed by the Procurement Officer issued for the purpose of making changes in the Contract.
5. “Contractor” means any person who has a Contract with a state governmental unit.
6. “Day” means calendar days unless otherwise specified.
7. “eProcurement (Electronic Procurement)” means conducting all or some of the procurement function over the Internet. Point, click, buy and ship Internet technology is replacing paper-based procurement and supply management business processes. Elements of eProcurement also include Invitation for Bids, Request for Proposals, and Request for Quotations.
8. “Exhibit” means any document or object labeled as an Exhibit in the Solicitation or placed in the Exhibits section of the Solicitation.
9. “Offer” means a response to a Solicitation.
10. “Offeror” means a person who responds to a Solicitation.
11. “Person” means any corporation, business, individual, union, committee, club, or other organization or group of individuals.
12. “Procurement Officer” means the person, or his or her designee, duly authorized by the State to enter into and administer Contracts and make written determinations with respect to the Contract.
13. ”Solicitation” means an Invitation for Bids (“IFB”), a Request for Technical Offers, a Request for Proposals (“RFP”), a Request for Quotations (“RFQ”), or any other invitation or request issued by the purchasing agency to invite a person to submit an Offer.
14. "Solicitation Amendment" means a change to the Solicitation issued by the Procurement Officer.
15. “Subcontract” means any Contract, express or implied, between the Contractor and another party or between a Subcontractor and another party delegating or assigning, in whole or in part, the making or furnishing of any material or any service required for the performance of the Contract.
16. “State” means the State of Arizona and Department or Agency of the State that executes the Contract.
Uniform Instructions to Offerors State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 55 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
B. Inquiries
1. Duty to Examine. It is the responsibility of each Offeror to examine the entire Solicitation, seek clarification in writing (inquiries), and examine its Offer for accuracy before submitting an Offer. Lack of care in preparing an Offer shall not be grounds for modifying or withdrawing the Offer after the Offer due date and time.
2. Solicitation Contact Person. Any inquiry related to a Solicitation, including any requests for or inquiries regarding standards referenced in the Solicitation shall be directed solely to the Procurement Officer.
3. Submission of Inquiries. All inquiries related to the Solicitation are required to be submitted in the State’s eProcurement system. All responses to inquiries will be answered in the State’s eProcurement system. Any inquiry related to the Solicitation should reference the appropriate Solicitation page and paragraph number. Offerors are prohibited from contacting any State employee other than the Procurement Officer concerning the procurement while the Solicitation and evaluation are in process.
4. Timeliness. Any inquiry or exception to the Solicitation shall be submitted as soon as possible and should be submitted at least seven days before the Offer due date and time for review and determination by the State. Failure to do so may result in the inquiry not being considered for a Solicitation Amendment.
5. No Right to Rely on Verbal or Electronic Mail Responses. An Offeror shall not rely on verbal or electronic mail responses to inquiries. A verbal or electronic mail reply to an inquiry does not constitute a modification of the Solicitation.
6. Solicitation Amendments. The Solicitation shall only be modified by a Solicitation Amendment.
7. Pre-Offer Conference. If a pre-Offer conference has been scheduled under the Solicitation, the date, time and location shall appear in the State’s eProcurement system. Offerors should raise any questions about the Solicitation at that time. An Offeror may not rely on any verbal responses to questions at the conference. Material issues raised at the conference that result in changes to the Solicitation shall be answered solely through a Solicitation Amendment.
8. Persons With Disabilities. Persons with a disability may request a reasonable accommodation, such as a sign language interpreter, by contacting the Procurement Officer. Requests shall be made as early as possible to allow time to arrange the accommodation.
C. Offer Preparation
1. Electronic Documents. The Solicitation is provided in an electronic format. Offerors are responsible for clearly identifying any and all changes or modifications to any Solicitation documents upon submission to the State’s eProcurement system. Any unidentified alteration or modification to any Solicitation, attachments, exhibits, forms, charts or illustrations contained herein shall be null and void. Offeror’s electronic files shall be submitted in a format acceptable to the State. Acceptable formats include .doc and .docx (Microsoft Word), .xls and .xlsx (Microsoft Excel), .ppt and .pptx (Microsoft PowerPoint) and .pdf (Adobe Acrobat). Offerors wishing to submit files in any other format shall submit an inquiry to the Procurement Officer.
2. Evidence of Intent to be Bound. The Offer and Acceptance form within the Solicitation shall be submitted with the Offer in the State’s eProcurement system and shall include a signature by a person authorized to sign the Offer. The signature shall signify the Offeror’s intent to be bound by the Offer and the terms of the Solicitation and that the information provided is true, accurate and complete. Failure to submit verifiable evidence of an intent to be bound, such as a signature, shall result in rejection of the Offer.
3. Exceptions to Terms and Conditions. All exceptions included with the Offer shall be submitted in the State’s eProcurement system in a clearly identified separate section of the Offer in which the Offeror clearly identifies the specific paragraphs of the Solicitation where the exceptions occur. Any exceptions not included in such a section shall be without force and effect in any resulting Contract unless such exception is specifically accepted by the
Uniform Instructions to Offerors State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 56 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
Procurement Officer in a written statement. The Offeror’s preprinted or standard terms will not be considered by the State as a part of any resulting Contract.
3.1. Invitation for Bids. An Offer that takes exception to a material requirement of any part of the Solicitation, including terms and conditions, shall be rejected.
3.2. Request for Proposals. All exceptions that are contained in the Offer may negatively impact an Offeror’s susceptibility for award. An Offer that takes exception to any material requirement of the Solicitation may be rejected.
4. Subcontracts. Offeror shall clearly list any proposed Subcontractors and the Subcontractor’s proposed responsibilities in the Offer.
5. Cost of Offer Preparation. The State will not reimburse any Offeror the cost of responding to a Solicitation.
6. Federal Excise Tax. The State is exempt from certain Federal Excise Tax on manufactured goods. Exemption Certificates will be provided by the State.
7. Provision of Tax Identification Numbers. Offerors are required to provide their Arizona Transaction Privilege Tax Number and/or Federal Tax Identification number in the space provided on the Offer and Acceptance form.
7.1 Employee Identification. Offeror agrees to provide an employee identification number or social security number to the State for the purposes of reporting to appropriate taxing authorities, monies paid by the State under this Contract. If the federal identifier of the Offeror is a social security number, this number is being requested solely for tax reporting purposes and will be shared only with appropriate state and federal officials. This submission is mandatory under 26 U.S.C. § 6041A.
8. Identification of Taxes in Offer. The State is subject to all applicable state and local transaction privilege taxes. All applicable taxes shall be identified as a separate item offered in the Solicitation. When applicable, the tax rate and amount shall be identified on the price sheet.
9. Disclosure. If the person submitting this Offer has been debarred, suspended or otherwise lawfully precluded from participating in any public procurement activity, including being disapproved as a subcontractor with any federal, state or local government, or if any such preclusion from participation from any public procurement activity is currently pending, the Offeror shall fully explain the circumstances relating to the preclusion or proposed preclusion in the Offer. The Offeror shall set forth the name and address of the governmental unit, the effective date of the suspension or debarment, the duration of the suspension or debarment, and the relevant circumstances relating to the suspension or debarment. If suspension or debarment is currently pending, a detailed description of all relevant circumstances including the details enumerated above shall be provided.
10. Delivery. Unless stated otherwise in the Solicitation, all prices shall be F.O.B. Destination and shall include all freight, delivery and unloading at the destination(s).
11. Federal Immigration and Nationality Act. By signing of the Offer, the Offeror warrants that both it and all proposed Subcontractors are in compliance with federal immigration laws and regulations (FINA) relating to the immigration status of their employees. The State may, at its sole discretion require evidence of compliance during the evaluation process. Should the State request evidence of compliance, the Offeror shall have five days from receipt of the request to supply adequate information. Failure to comply with this instruction or failure to supply requested information within the timeframe specified shall result in the Offer not being considered for Contract award.
12. Offshore Performance of Work Prohibited. Any services that are described in the specifications or scope of work that directly serve the State or its clients and involve access to secure or sensitive data or personal client data shall be performed within the defined territories of the United States. Unless specifically stated otherwise in the specifications, this paragraph does not apply to indirect or 'overhead' services, redundant back-up services or services that are incidental to the performance of the Contract. This provision applies to work performed by Subcontractors at all tiers. Offerors shall declare all anticipated offshore services in the Offer.
Uniform Instructions to Offerors State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 57 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
D. Submission of Offer
1. Offer Submission, Due Date and Time. Offerors responding to a Solicitation must submit the Offer electronically through the State’s eProcurement system. Offers shall be received before the due date and time stated in the Solicitation. Offers submitted outside of the State’s eProcurement system or those that are received after the due date and time shall be rejected.
2. Offer and Acceptance. Offers shall include a signed Offer and Acceptance form. The Offer and Acceptance form shall be signed with a signature by the person authorized to sign the Offer, and shall be submitted in the State’s eProcurement system with the Offer no later than the Solicitation due date and time. Failure to return an Offer and Acceptance form may result in rejection of the Offer.
3. Solicitation Amendments. A Solicitation Amendment shall be acknowledged in the State’s eProcurement system no later than the Offer due date and time. Failure to acknowledge a Solicitation Amendment may result in rejection of the Offer.
4. Offer Amendment or Withdrawal. An Offer may not be amended or withdrawn after the Offer due date and time except as otherwise provided under applicable law.
5. Confidential Information. If an Offeror believes that any portion of an Offer, protest, or correspondence contains a trade secret or other proprietary information, the Offeror shall clearly designate the trade secret and other proprietary information, using the term “confidential.” An Offeror shall provide a statement detailing the reasons why the information should not be disclosed including the specific harm or prejudice that may arise upon disclosure. The Procurement Officer shall review all requests for confidentiality and provide a written determination. Until a written determination is made, a Procurement Officer shall not disclose information designated as confidential except to those individuals deemed to have a legitimate State interest. In the event the Procurement Officer denies the request for confidentiality, the Offeror may appeal the determination to the State Procurement Administrator within the time specified in the written determination. Contract terms and conditions, pricing, and information generally available to the public are not considered confidential information.
6. Public Record. All Offers submitted and opened are public records and must be retained by the State for six (6) years. Offers shall be open and available to public inspection through the State’s eProcurement system after Contract award, except for such Offers deemed to be confidential by the State.
7. Non-collusion, Employment, and Services. By signing the Offer and Acceptance form or other official Contract form, the Offeror certifies that:
7.1. The Offeror did not engage in collusion or other anti-competitive practices in connection with the preparation or submission of its Offer; and
7.2. The Offeror does not discriminate against any employee or applicant for employment or person to whom it provides services because of race, color, religion, sex, national origin, or disability, and that it complies with an applicable federal, state and local laws and executive orders regarding employment.
E. Evaluation
1. Unit Price Prevails. In the case of discrepancy between the unit price or rate and the extension of that unit price or rate, the unit price or rate shall govern.
2. Taxes. If the products and/or services specified require transaction privilege or use taxes, they shall be described and itemized separately on the Offer. Arizona transaction privilege and use taxes shall not be considered for evaluation.
Uniform Instructions to Offerors State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 58 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
3. Prompt Payment Discount. Prompt payment discounts of thirty (30) days or more set forth in an Offer shall be deducted from the Offer for the purpose of evaluating that price.
4. Late Offers. An Offer submitted after the exact Offer due date and time shall be rejected.
5. Disqualifications. An Offeror (including each of its principals) who is currently debarred, suspended or otherwise lawfully prohibited from any public procurement activity shall have its Offer rejected.
6. Offer Acceptance Period. An Offeror submitting an Offer under the Solicitation shall hold its Offer open for the number of days from the Offer due date that is stated in the Solicitation. If the Solicitation does not specifically state a number of days for Offer acceptance, the number of days shall be one hundred twenty (120). If a Best and Final Offer is requested pursuant to a Request for Proposals, an Offeror shall hold its Offer open for one hundred twenty (120) days from the Best and Final Offer due date.
7. Waiver and Rejection Rights. Notwithstanding any other provision of the Solicitation, the State reserves the right to:
7.1 Waive any minor informality;
7.2. Reject any and all Offers or portions thereof; or
7.3 Cancel the Solicitation.
F. Award
1. Number of Types of Awards. The State reserves the right to make multiple awards or to award a Contract by individual line items or alternatives, by group of line items or alternatives, or to make an aggregate award, or regional awards, whichever is most advantageous to the State.
2. Contract Inception. An Offer does not constitute a Contract nor does it confer any rights on the Offeror to the award of a Contract. A Contract is not created until the Offer is accepted in writing by the Procurement Officer’s signature on the Offer and Acceptance form. A notice of award or of the intent to award shall not constitute acceptance of the Offer.
3. Effective Date. The effective date of the Contract shall be the date that the Procurement Officer signs the Offer and Acceptance form or other official Contract form, unless another date is specifically stated in the Contract.
G. Protests
A protest shall comply with and be resolved according to Arizona Revised Statutes Title 41, Chapter 23, Article 9 and rules adopted thereunder. Protests shall be in writing and be filed with both the Procurement Officer of the purchasing agency and with the State Procurement Administrator. A protest of the Solicitation shall be received by the Procurement Officer before the Offer due date. A protest of a proposed award or of an award shall be filed within ten (10) days after the Procurement Officer makes the procurement file available for public inspection. A protest shall include:
1. The name, address, email address and telephone number of the interested party;
2. The signature of the interested party or its representative;
3. Identification of the purchasing agency and the Solicitation or Contract number;
4. A detailed statement of the legal and factual grounds of the protest including copies of relevant documents; and
5. The form of relief requested.
Uniform Instructions to Offerors State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 59 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
H. Comments Welcome
The State Procurement Office periodically reviews the Uniform Instructions to Offerors and welcomes any comments you may have. Please submit your comments to: State Procurement Administrator, State Procurement Office, 100 North 15th Avenue, Suite 201, Phoenix, Arizona, 85007.
EXHIBIT A – GAMING DATA State of Arizona Solicitation No.: ADSPO16-00005378 PAGE State Procurement Office 60 100 N.15th Ave., Suite 201 OF Phoenix, AZ 85007 Description: Advertising and Marketing – AZ Lottery 68
1. BACKGROUND
1.1. The mission of the AZ Lottery is to support Arizona programs for the public benefit by maximizing revenue in a responsible manner. The AZ Lottery was established to maximize revenue dedicated to various beneficiaries through statutory formulas. With a Governor-appointed Commission and Executive Director overseeing operations, the AZ Lottery works with a retailer network to provide players with innovative, entertaining, and rewarding games.
1.2. AZ Lottery products compete with other entertainment and consumer products for the discretionary income of the Arizona consumer. The current product mix includes the multi-state jackpot games, Powerball® and Mega Millions,® the in-state draw games, The Pick,™ Fantasy 5,™ Pick 3,™ Weekly Winnings,™ and All or Nothing,™ and the instant product, Scratchers.®1
1.3. The AZ Lottery’s approach is to constantly refresh its lottery inventory with initiatives in new draw games and approximately fifty to sixty (50-60) new Scratchers games annually to provide players with a variety of new game choices throughout the year.
1.4. Approximately two thousand nine hundred (2,900) retailers make up the AZ Lottery retailer network. The majority of the retailer network is comprised of the convenience store category with approximately seventy-three percent (73%) of the locations and the grocery category with fifteen percent (15%) of the locations. The sales of both these categories combined represent more than ninety-five percent (95%) of the total AZ Lottery game revenues. Additional sales are made from the AZ Lottery’s physical office locations, in Phoenix and Tucson.
1.5. The AZ Lottery has been successful in increasing revenues and expects the Contractor(s) to assist in continuing this growth. Recent sales and proceeds history (in 1,000’s) follows:
State Fiscal Year Product 2015 2014 2013 2012 2011
Powerball $ 93,638.4 $ 113,038.6 $ 151,219.4 $ 104,211.0 $ 89,102.0 Mega Millions 45,946.1 56,295.5 32,370.2 56,069.8 47,317.2 MONOPOLY 871.7 The Pick 25,811.0 30,384.7 32,998.1 34,630.2 34,623.6 Fantasy 5 17,051.7 16,409.7 15,762.2 18,087.4 15,597.1 Pick 3 9,734.9 9,203.7 8,547.6 8,485.0 8,343.2 Weekly Winnings 3,551.2 5,679.5 7,903.1 N/A N/A All Or Nothing 6,198.2 1,735.9 N/A N/A N/A 2by2 N/A 2,916.1 3,094.8 3,324.4 3,850.0 CA$H4 N/A N/A 578.3 2,820.8 3,031.5 Raffle N/A N/A N/A 6,000.0 6,000.0 Fast Play N/A N/A N/A N/A 1,209.2 Total Draw 202,803.4 235,663.7 252,473.7 233,628.6 209,073.7
Scratchers 542,030.3 483,895.8 436,599.6 409,776.7 373,452.2
Total $ 744,833.7 $ 719,559.6 $ 689,073.3 $ 643,405.4 $ 582,525.9 Return to State Not Available $ 175,415.3 $ 177,806.3 $ 171,388.1 $ 144,445.1
1 Powerball and Mega Millions are registered trademarks of MUSL. Scratchers is a registered service mark of the California Lottery. The Pick, Fantasy 5, Pick 3, and Weekly Winnings are trademarks of the AZ Lottery. All or Nothing is a registered trademark of the Texas Lottery.
EXHIBIT A – GAMING DATA State of Arizona Solicitation No.: ADSPO16-00005378 PAGE State Procurement Office 61 100 N.15th Ave., Suite 201 OF Phoenix, AZ 85007 Description: Advertising and Marketing – AZ Lottery 68
1.6 There is a legislatively allocated allotment for all marketing and advertising activities for the AZ Lottery. Of that Yearly Allotment, the AZ Lottery reserves an amount for internal AZ Lottery spending and allocates an amount to be utilized by the Contractor. The amount allocated to the Contractor on a yearly basis is known, for purposes of this Contract, as the Contractor Allotment. Approximately $10M per year of the Contractor Allotment is expended in media buying, but that amount is subject to change. The following table shows the Contractor Allotments for Advertising Services for recent years (in 1,000’s):
State Fiscal Year 2015-16 2014-15 2013-14 2012-13 2011-12 Contractor Allotment 11,750.0 14,500.0 14,500.0 15,000.0 15,000.0
2. CURRENT GAMES AND FEATURES
2.1. The current games and features on the gaming system are described below.
2.1.1. Powerball2 is a two dollar ($2) multi-state lotto-style game with a rolling jackpot starting at forty million dollars ($40M). Players select five (5) numbers from one (1) through fifty-nine (59), plus a Powerball number from one (1) through thirty-five (35). The player has the choice of computer pick or player-selected numbers via a selection slip or manual entry. There are nine (9) ways to win. Prizes are awarded if the player matches one (1), two (2), three (3), four (4) or five (5) numbers in any order plus the Powerball; three (3), four (4), or five (5) numbers without the Powerball or the Powerball alone. Players have sixty (60) days to choose either a thirty (30)-year annuity or a lump-sum cash payment of approximately half the amount of the announced jackpot. Powerball drawings are held on Wednesday and Saturday nights. Tickets can be purchased for up to ten (10) consecutive drawings on the same ticket.
2.1.2. Power Play® is an extra feature on the Powerball game.3 For an extra one dollar ($1) at the time of purchase, players can multiply their winnings for the bottom seven (7) prizes by a number from two (2) to five (5) randomly selected at draw time.
2.1.2.1. Players who match five (5) numbers, excluding the Powerball, and selected the Power Play option will automatically win two million dollars ($2M).
2.1.2.2. Power Play does not apply to the jackpot.
2.1.3. Mega Millions is a one dollar ($1) multi-state lotto-style game with a rolling jackpot starting at fifteen million dollars ($15M). Players select five (5) numbers from one (1) through seventy-five (75), plus a Mega Ball number from one (1) through fifteen (15). The player has the choice of computer pick or player-selected numbers via a selection slip or manual entry. There are nine (9) ways to win. Prizes are awarded if the player matches one (1), two (2), three (3), four (4), or five (5) numbers in any order plus the Mega Ball; three (3), four (4) or five (5) numbers with the Mega Ball or the Mega Ball alone. Players have sixty (60) days to choose either a thirty (30)-year annuity or a lump-sum cash payment of approximately half the amount of the announced jackpot.
2.1.3.1. Megaplier® is an extra feature on the Mega Millions game.4 For an extra one dollar ($1) at the time of purchase, players can multiply their winnings by a number from two (2) to five (5) randomly selected at draw time. 2.1.3.2. Megaplier does not apply to the jackpot.
2 The design of the Powerball game is projected to change as of October, 2015. 3 Power Play (or PowerPlay) is a registered trademark of MUSL. 4 Megaplier is a registered trademark of MUSL.
EXHIBIT A – GAMING DATA State of Arizona Solicitation No.: ADSPO16-00005378 PAGE State Procurement Office 62 100 N.15th Ave., Suite 201 OF Phoenix, AZ 85007 Description: Advertising and Marketing – AZ Lottery 68
2.1.4. The Pick is Arizona’s in-state lotto-style game with a rolling jackpot starting at one million dollars ($1M). Players select six (6) numbers from one (1) through forty-four (44). Players win by matching three (3), four (4), five (5) or all six (6) of the first six (6) numbers drawn. All prizes for this game except the jackpot are fixed prizes. Players have sixty (60) days to choose either a thirty (30)-year annuity or a lump-sum cash payment of approximately half the amount of the announced jackpot. The player has the choice of computer pick or player-selected numbers via a selection slip or manual entry. Drawings are held twice weekly on Wednesday and Saturday nights. Tickets can be purchased for up to ten (10) consecutive drawings on the same ticket.
2.1.5. Fantasy 5 is a cash lotto-style game with a fifty thousand dollar ($50,000) top prize. Players select five (5) numbers from one (1) to forty-one (41). Players win by matching three (3), four (4), or five (5) of the numbers drawn. Approximately one (1) in every ten (10) tickets will be designated a DOUBLER at no additional cost. If that symbol appears on the ticket, all non-jackpot prizes will be doubled. The player has the choice of computer pick or player-selected numbers via a selection slip or manual entry. Drawings are held six (6) days a week, Monday through Saturday. Tickets can be purchased for up to twelve (12) consecutive drawings on the same ticket.
2.1.6. Pick 3 is a three (3)-digit daily numbers game that allows players to choose how they want to play their numbers. Current play types are Straight, three (3) numbers in the exact order drawn; Box, three (3) numbers in any order drawn; Straight/Box, three (3) numbers in either exact or any order drawn; Front Pair, first two (2) numbers in the exact order drawn; or Back Pair, last two (2) numbers in the exact order drawn. Players may choose to play two (2) plays for one dollar ($1), reducing their winnings in half; or one (1) play for one dollar ($1) for the full prize amounts. Drawings are held six (6) days a week, Monday through Saturday. Tickets can be purchased for up to twelve (12) consecutive drawings on the same ticket.
2.1.7. EXTRA is an optional feature that provides an opportunity for a player to win a cash prize instantly. The feature is available on both The Pick and Fantasy 5. For an additional one dollar ($1) or two dollars ($2) on each board wagered, six (6) extra numbers are printed on the ticket. If any of the EXTRA numbers match any of the board numbers, a player wins a cash prize instantly. Tickets may win by matching more than one (1) number. Players may redeem their EXTRA prizes instantly and receive an exchange ticket for that game’s drawing.
2.1.8. Weekly Winnings is a two dollar ($2) draw game with a top prize of one thousand dollars ($1,000) a week for a year. Players select a set of four (4) numbers from one (1) through fifty (50) or let the computer select the numbers for a chance to win the top prize. The computer then selects an additional five (5) sets of four (4) numbers for the remaining prize categories. Drawings are held every Tuesday and Friday evening. Players winning the top prize may elect to receive a prize payment of one thousand dollars ($1,000) each week (taxes paid) for one (1) year or a single payment of fifty-two thousand dollars ($52,000) (taxes paid) at the time of validation. Tickets can be purchased for up to ten (10) consecutive drawings.
2.1.9. All or Nothing is a two dollar ($2) twice-daily draw game that provides a chance to win a prize by matching all of the numbers drawn or none of the numbers drawn. Players select ten (10) numbers from one (1) through twenty (20) or let the computer select the numbers. Drawings are held twice each day, morning and evening, Monday through Saturday. Tickets can be purchased for up to twenty-four (24) consecutive drawings on the same ticket.
2.1.10. Scratchers are instant-ticket games with prizes ranging from one dollar ($1) to more than one million dollars ($1M), depending on the game type and ticket price. The AZ Lottery currently offers instant-ticket games costing one dollar ($1), two dollars ($2), three dollars ($3), five dollars ($5), ten dollars ($10), and twenty dollars ($20). The AZ Lottery has separate contracts to provide printing, telemarketing, warehousing, and distribution services of the instant product line. The instant-game functions pass through the AZ Lottery’s communication equipment to the instant-ticket contractor.
2.1.11. Promotion Features. Currently the AZ Lottery uses promotion-software features to offer free tickets, cash prizes or drawing-entry coupons to players. An example would be every Nth ticket throughout the system (not terminal specific) on a designated game would generate a promotion ticket rewarding the player with a free
EXHIBIT A – GAMING DATA State of Arizona Solicitation No.: ADSPO16-00005378 PAGE State Procurement Office 63 100 N.15th Ave., Suite 201 OF Phoenix, AZ 85007 Description: Advertising and Marketing – AZ Lottery 68
ticket for another game type, a coupon entry for a drawing, or a cash prize. Another example would be that every purchase for a specific dollar amount would generate the promotion ticket.
Attachment I – Designation of Confidential, Trade Secret & Proprietary Information State of Arizona State Procurement Office PAGE Solicitation No.: ADSPO16-00005378 100 N.15th Ave., Suite 201 64 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
See Attachment I – available in ProcureAZ to be filled out by the Offeror.
Response Form 1 - Method of Approach to Scope of Work Questionnaire State of Arizona State Procurement Office PAGE Solicitation No.: ADSPO16-00005378 100 N.15th Ave., Suite 201 65 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
See Response Form 1 – available in ProcureAZ to be filled out by the Offeror.
Response Form 2 - Summary of Firm/Capacity of Offeror Questionnaire State of Arizona State Procurement Office Solicitation No.: ADSPO16-00005378 PAGE 100 N.15th Ave., Suite 201 66 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
See Response Form 2 – available in ProcureAZ to be filled out by the Offeror.
Response Form - 3 References State of Arizona Solicitation No.: ADSPO16-00005378 PAGE State Procurement Office 67 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Advertising and Marketing – AZ Lottery 68
See Response Form 3 – available in ProcureAZ to be filled out by the Offeror.
Response Form - 4 Price Sheet State of Arizona Solicitation No.: ADSPO16-00005378 PAGE State Procurement Office 68 100 N.15th Ave., Suite 201 Phoenix, AZ 85007 OF Description: Employment and Income Verification 68
See Response Form 4 – available in ProcureAZ to be filled out by the Offeror.