New York State Gaming Commission REQUEST FOR PROPOSALS FOR New York Lottery Video Lottery Games C202017 February 5, 2021 Notice to Bidders • The Permissible Contacts for this solicitation are Stacey Relation and Alysan Bowers, as noted in Section 1.8 of the Request for Proposals (“RFP”). • Bidders are responsible for checking the New York State Gaming Commission’s (“Commission”) website for updated information relative to the procurement process and the RFP. The Commission will not be responsible for a Bidder’s failure to obtain updated information. • By submission of a Proposal in response to this RFP, the Bidder agrees to the terms of the resulting Agreement in the form incorporated into the RFP as Appendix B, or as revised through the RFP process. The Commission does not intend to negotiate terms of the Agreement after receipt of Proposals or following award (Section 2.2). • By submission of a Proposal in response to this solicitation, the Bidder agrees to comply with the insurance requirements defined in the RFP (Section 2.15). • The participation goals for Minority and Women-Owned Business Enterprises and Service-Disabled Veteran-Owned Businesses under this RFP are 30 percent and 6 percent, respectively. (Sections 2.18 and 2.19). • To assist Bidders in completion and submittal of the required documents, Attachment 3, Document Submittal Checklist, is incorporated into this RFP. • Do not include any pricing in the Technical Proposal. Technical Proposals that contain pricing will be deemed non-responsive and removed from consideration. • Bidders choosing not to submit a Proposal in response to this RFP are requested to submit the Non-Bid Response form, included in this RFP as Attachment 4, as the information is useful to the Commission in the planning and development of future RFPs and Bidders’ lists. Page 2 of 96 Table of Contents PART 1 – GENERAL INFORMATION ............................................................................... 6 1.1 INTRODUCTION ............................................................................................. 6 1.2 BACKGROUND INFORMATION........................................................................ 8 1.3 OBJECTIVE ..................................................................................................... 9 1.4 VIDEO LOTTERY GAMING ............................................................................... 9 1.5 MINIMUM QUALIFICATIONS ........................................................................11 1.6 SCHEDULE ....................................................................................................11 1.7 RFP APPENDICES, ATTACHMENTS AND EXHIBIT .........................................12 1.8 BIDDER/CONTRACTOR DIFFERENTIATION .................................................13 1.9 HEADINGS ....................................................................................................13 1.10 DESIGNATED CONTACTS ..............................................................................13 1.11 PROCUREMENT LOBBYING RESTRICTIONS .................................................14 1.12 QUESTIONS AND INQUIRIES .......................................................................15 1.13 NON-COLLUSIVE BIDDING REQUIREMENT ..................................................15 1.14 NEW YORK STATE VENDOR RESPONSIBILITY QUESTIONNAIRE .................16 1.15 DESIGNATION OF PROPRIETARY INFORMATION ........................................16 1.16 CLARIFICATION PROCESS ...........................................................................17 1.17 SITE VISITS AND DEMONSTRATIONS ..........................................................17 1.18 DISCLOSURE AND INVESTIGATIONS DURING PROPOSAL EVALUATION .....17 1.19 DISCLOSURE OF LITIGATION AND OTHER INFORMATION ..........................18 1.20 CONFLICTS OF INTEREST .............................................................................18 1.21 NEW YORK STATE PUBLIC OFFICERS LAW ...................................................19 1.22 ETHICS REQUIREMENTS ..............................................................................19 1.23 CERTIFICATION OF COMPLIANCE WITH STATE FINANCE LAW § 139-l .......20 1.24 EXECUTIVE ORDER NO. 177 CERTIFICATION ..............................................20 1.25 CHANGE IN FINANCIAL CONDITION ............................................................21 1.26 CHANGE IN OWNERSHIP ..............................................................................21 1.27 NEWS RELEASES...........................................................................................22 1.28 ADVERTISING ..............................................................................................22 1.29 STATE’S RESERVED AUTHORITY ..................................................................22 PART 2 - PROVISIONS ..................................................................................................24 2.1 GOVERNING LAW .........................................................................................24 Page 3 of 96 2.2 FORM OF CONTRACTUAL AGREEMENT .........................................................24 2.3 LICENSING ...................................................................................................24 2.4 BACKGROUND INVESTIGATIONS .................................................................25 2.5 AUDIT REQUIREMENTS ................................................................................25 2.6 RIGHT TO AUDIT SUCCESSFUL BIDDER’S NEW YORK OPERATION SYSTEM 26 2.7 CONTRACT ELEMENTS ..................................................................................26 2.8 SEVERABILITY ..............................................................................................26 2.9 TERM OF CONTRACT .....................................................................................26 2.10 ALL-INCLUSIVE ............................................................................................27 2.11 COMPENSATION, INVOICING AND PAYMENT ..............................................27 2.12 VENDOR IDENTIFICATION NUMBER ............................................................28 2.13 ELECTRONIC PAYMENT (ePAYMENT) PROGRAM ..........................................28 2.14 NEW YORK STATE TAX LAW SECTION 5-A....................................................29 2.15 INSURER QUALIFICATIONS AND INSURANCE REQUIREMENTS ..................29 2.16 BOND REQUIREMENTS .................................................................................30 2.17 LIQUIDATED DAMAGES ................................................................................30 2.18 SUCCESSFUL BIDDER REQUIREMENTS AND PROCEDURES FOR EQUAL EMPLOYMENT AND BUSINESS PARTICIPATION OPPORTUNITIES FOR MINORITY GROUP MEMBERS AND NEW YORK STATE CERTIFIED MINORITY/WOMEN-OWNED BUSINESSES .....................................................33 2.19 NEW YORK STATE SERVICE-DISABLED VETERAN-OWNED BUSINESSES .....33 2.20 SUCCESSFUL BIDDER RESPONSIBILITIES AS PRIMARY CONTRACTOR .......34 2.21 APPROVAL OF STAFFING ..............................................................................34 2.22 NEW YORK STATE SUBCONTRACTORS AND SUPPLIERS ..............................34 2.23 SUBCONTRACT APPROVAL ...........................................................................34 2.24 DELEGATION AND/OR ASSIGNMENT ...........................................................36 2.25 SUCCESSFUL BIDDER CODE OF CONDUCT ...................................................36 2.26 GAME PLAYING AND PRIZE PAYMENT RESTRICTIONS ................................37 2.27 MANAGEMENT OF SOFTWARE DOCUMENTATION ........................................37 2.28 LICENSED INTELLECTUAL PROPERTY ..........................................................37 2.29 COMMISSION PHYSICAL SECURITY REQUIREMENTS ..................................38 2.30 OWNERSHIP OF MATERIALS ........................................................................40 2.31 NET NEUTRALITY PRINCIPLES .....................................................................40 Page 4 of 96 2.32 PRODUCTION ACCEPTANCE OF VLT, GAMES AND SOFTWARE TEST FOLLOWING AWARD ..............................................................................................41 2.33 TECHNOLOGY PROVISIONS .........................................................................41 2.34 PATENTED DEVICES, MATERIALS AND PROCESS .........................................51 2.35 USE OF COPYRIGHTED OR TRADEMARKED MATERIALS ..............................52 2.36 PROPOSED STAFFING ..................................................................................52 PART 3 – SCOPE OF WORK ...........................................................................................53 3.0 INTRODUCTION ...........................................................................................53 3.1 PRIMARY AND QUALIFIED SUPPLIERS ........................................................53 3.2 FLOOR ALLOCATION .....................................................................................55 3.3 CENTRAL SYSTEM PROTOCOL ......................................................................56 3.4 PRODUCT MIX AND MARKETABILITY ...........................................................56 3.5 VIDEO LOTTERY GAMES ...............................................................................57 3.6 VLT SPECIFICATIONS ...................................................................................59 3.7 VLT MAINTENANCE PROGRAM .....................................................................72