GEORGIA LOTTERY CORPORATION
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1 GEORGIA LOTTERY CORPORATION REQUEST FOR PROPOSAL FOR EVENING/NIGHT LOTTERY DRAW AUDIT SERVICES (SUNDAY - SATURDAY) We propose to furnish and deliver any and all of the deliverables and services named in the Request for Proposal ( RFP ) for Lottery Draw Audit Services EVENING/NIGHT to the Georgia Lottery Corporation ( GLC ). The terms offered herein shall apply for the period of time stated in the RFP. We further agree to strictly abide by all of the terms and conditions contained in the RFP and the Georgia Lottery for Education Act, O.C.G.A et seq., as amended from time to time. Any exceptions are noted in writing and included with our proposal. It is understood and agreed that we have read the Georgia Lottery Corporation s specifications shown or referenced in the RFP and that this proposal is made in accordance with the provisions of such specifications. By our written signature on this proposal, we guarantee and certify that all items included in this proposal meet or exceed any and all of the GLC specifications. We further agree, if awarded a contract, to deliver goods and services that meet or exceed the specifications. PROPOSAL SIGNATURE AND CERTIFICATION (Authorized representative must sign and return with proposal) I certify that this proposal is made without prior understanding, agreement, or connection with any corporation, firm, or person submitting a proposal for the same materials, supplies, equipment, or services and is in all respects fair and without collusion or fraud. I understand collusive bidding is a violation of State and Federal Law and can result in fines, prison sentences, and civil damage awards. I understand and agree to abide by all conditions of the RFP and this proposal and certify that I am authorized to sign this proposal for the responding firm. I further certify that the provisions of O.C.G.A et seq. have not been and will not be violated in any respect. Date: Authorized Signature: Print Name: Title: Company Name: NOTE: PLEASE ENSURE THAT ALL REQUIRED SIGNATURE BLOCKS ARE COMPLETED. FAILURE TO SIGN THIS FORM AND INCLUDE IT WITH YOUR PROPOSAL WILL RESULT IN REJECTION OF YOUR PROPOSAL.
2 Page 2 of 12 GEORGIA LOTTERY CORPORATION REQUEST FOR PROPOSAL FOR LOTTERY DRAW AUDIT SERVICES LOTTERY DRAW (SUNDAY SATURDAY) A. PURPOSE The Georgia Lottery Corporation ( GLC ) is requesting proposals for Lottery Draw Audit Services, as outlined in this Request for Proposal ( RFP ). Lottery Draw Audit Services for the GLC are defined as the in-person audit of the GLC s on-line ticket drawing process, and review of the drawing procedures, used to select winning lottery ticket numbers / tickets. For security and integrity purposes, the audit is conducted by an independent auditing firm, which oversees the conduct of lottery drawings at WSB-TV in Atlanta, Georgia, the current television draw station, to ensure that the drawings are conducted in an unbiased, fair, and impartial manner, in accordance with prescribed procedures. (The location of the drawings is subject to change, however.) The schedule of the audited drawings and corresponding weekly time commitment are further described in Exhibit A. Proposal documents shall be submitted to the GLC in accordance with the instructions and specifications detailed herein. B. GENERAL INFORMATION The Georgia Lottery Corporation was established in Its headquarters are located at 250 Williams Street, Suite 3000, in Atlanta, Georgia. Additionally, the GLC operates seven (7) district offices, which are located in Augusta, Columbus, Dalton, Duluth, Macon, Savannah, and Tifton, Georgia. This RFP has been issued on Monday, May 8, Questions and requests for clarifications relating to this RFP must be directed to the GLC s Contract Compliance Administrator. All questions and requests for clarification must be submitted in writing via e- mail by Friday, May 19, 2017, at 5:00 p.m ET. The GLC will respond to all submitted written questions and requests via before 5:00 p.m. ET on Friday, June 2, 2017, to all firms that submitted questions or otherwise requested a response and by placing its responses on the GLC s website, The Contract Compliance Administrator is to be the sole point of contact at the GLC for firms, effective with the date of release of this RFP. Contact with any representative of the GLC other than the Contract Compliance Administrator may result in disqualification. The GLC s Contract Compliance Administrator is:
3 Steve Silver Georgia Lottery Corporation Suite Williams Street, NW Atlanta, GA Telephone: Georgia Lottery Corporation Page 3 of 12 Delivery of six (6) copies of the proposal, with original signatures, to the GLC Contract Compliance Administrator at the above address is due no later than 5:00 p.m. ET on Friday, June 9, Proposals received by the GLC Contract Compliance Administrator after this date and time will be rejected, without exception. No provisions are made for extenuating circumstances in this RFP. A three (3) year contract will be awarded to the firm whose proposal is determined to be the most advantageous for the GLC, considering all the conditions set forth in this RFP, and which the GLC believes provides the greatest long-term benefit to the State of Georgia, the greatest integrity for the GLC, and the best services and products for the public. The contract is projected to begin September 1, While price will be an important factor, it alone will not be the deciding factor in the selection process. In accordance with the Lottery for Education Act, O.C.G.A , the firm selected will be required to pass a security and financial responsibility background investigation. Issuance of this RFP does not constitute a commitment on the part of the GLC to award a contract pursuant to this RFP. The GLC reserves the right to reject any and all proposals submitted in response to this RFP, in whole or in part, and to award a contract pursuant to this RFP or cancel this RFP if it is considered to be in the best interests of the GLC. The GLC further reserves the right to make changes to this RFP at any time by issuance of written addendum/addenda, amendment(s) or clarification(s). C. EQUAL OPPORTUNITY The GLC prohibits discrimination on the basis of race, color, gender, religion, national origin, or disability in connection with employment of any person, or the award of any contract with the corporation. The GLC will provide equal opportunities without regard to race, color, gender, religion, national origin, or disability, by requiring that any firm doing business with the corporation provide equal opportunity to persons and businesses employed by, or contracting with the supplier of products and services to the Corporation. D. MINORITY PARTICIPATION The Georgia Lottery for Education Act encourages the participation of minority businesses in all aspects of the work of the GLC. It is the policy of the GLC to contribute to the establishment, preservation and strengthening of minority-owned businesses, and to encourage their participation in the GLC's procurement activities. Towards that end, the GLC strongly
4 Page 4 of 12 encourages minority-owned firms to submit proposals or become part of a team or teams that submit a proposal, and the GLC encourages non-minority firms to provide for the participation of minority-owned firms through partnerships, joint ventures, subcontracts, and other contractual opportunities. E. COSTS OF PROPOSALS The GLC is not responsible or liable for any of the costs incurred by any firm in preparing and/or submitting a proposal pursuant to this RFP. F. INTERVIEWS, QUESTIONS, AND NEGOTIATIONS The GLC reserves the right to ask any or all firms to clarify any portion of their proposals after submission. Furthermore, the GLC also reserves the right to negotiate with any or all firms in any manner deemed necessary or appropriate by the GLC to serve the best interests of the GLC. G. MINIMUM CONTENT OF PROPOSAL Each submission should contain, at a minimum, an outline of the firm s Work Plan to submit trained personnel to audit the lottery drawings process. At least one (1) auditor (and one (1) backup auditor) is required for each lottery drawing session. Lottery drawings are held seven (7) days a week, every day of the calendar year. Specific standards that should be addressed are as follows: 1. Training: Although the GLC will provide initial training to firm representatives on the conduct of lottery drawings, each firm is responsible for submitting trained personnel to audit each drawing. Each auditor (or substitute auditor) should be trained prior to being assigned lottery drawing responsibility, (which must include at least one-day on-site training). Each auditor must also be pre-approved (including passing a criminal background investigation) by the GLC prior to the assignment of work duties. 2. Experience: Each assigned auditor must have a minimum of twelve (12) months professional auditing or similar experience with the contracted audit firm. 3. Length of Auditing Service: Each auditor shall be assigned to the lottery drawings for a minimum of one week at a time. Each auditor may only work a maximum of twice (or two (2) weeks) per each quarter of the year. Logistically, a firm should have at least seven (7) auditors capable of performing the job duties in order to meet the schedule demands. An auditor may not work a shift on the EVENING/NIGHT schedule (Exhibit A) and a shift on the MIDDAY schedule (Exhibit B) in any 24-hour period. Any manager or partner assigned to this project must be a Certified Public Accountant.
5 Page 5 of Monthly Reports/Invoices: The firm shall submit monthly invoices (signed by the firm s assigned project manager) of the personnel provided (names, experience, and hourly charge), hours worked, and costs incurred to the GLC within 30 days after the expiration of each month. Monthly reports will include a general review of the drawings as to the compliance with procedures as well as specific details of any anomalies. Monthly invoices will not be paid until the monthly report is received by the GLC. A penalty may be imposed for the submission of each untimely report. 5. Backup Provisions: Auditor attendance at each drawing is crucial to the security and integrity of the lottery drawing process. Given the strict time demands posed by daily drawing events, each firm must provide for a back-up plan that can be implemented in the event of inclement weather or emergency conditions, an auditor s tardiness, the appearance of an untrained or unqualified auditor for duty, or the complete failure of an auditor to appear. If no qualified auditor appears for duty for any drawing, liquidated damages in the amount of $5, for each missed drawing will be assessed. 6. Detailed Description of Services: The GLC follows a set checklist of security measures prior to and immediately after each drawing. It is mandatory that the auditor be present, on-time, at the scheduled performance of the security measures. The auditor must closely monitor the adherence of GLC staff to the checklist. The auditor must also closely observe the test and actual drawings to ensure that exceptions do not occur. In the event of a drawing exception, the auditor must ensure that all exception procedures are followed. From time to time, the GLC conducts special drawings such as non-periodic raffles or second-chance drawings. The successful firm may have an opportunity to provide services for these special drawings. 7. Litigation, Bankruptcy, Criminal and Disciplinary Proceedings: The firm must specifically list all material litigation to which it is a party or has been a party during the past five (5) years and any bankruptcy, insolvency, or similar proceeding to which it may have been subjected to, as well as any finding or plea, conviction, or adjudication of guilt in state or federal court for any felony or other criminal offense other than a traffic violation. The firm must disclose whether or not it has been a party to any professional disciplinary action during the past five (5) years. The firm should also submit evidence of its financial responsibility, security, and integrity. H. EVALUATION OF PROPOSALS The GLC has established an Evaluation Committee that will be responsible for evaluating the proposals received from responding firms. With the release of this proposals, the Evaluation Committee has established uniform criteria by which all proposals will be scored. The criteria to be used by the Evaluation Committee will be: (1) cost to the GLC (i.e., hourly rate for personnel auditing duties, separated by position); (2) experience and firm background; (3) personnel of the firm available for audit duties; (4) references; and the (5) Lottery Draw Audit Services Work Plan [a proposal for servicing the drawings in Exhibit A, to specifically include: (a) Lottery Draw Audit training of auditors; (b) experience level of auditors; (c) proposed length of tour of duty for each auditor; (d) back-up plans for substitute auditors; (e) management
6 Page 6 of 12 reports; and (f) other services deemed appropriate]. These criteria are presented for informational purposes and do not necessarily represent the order of importance or weight that each factor will have in the final scoring of proposals. I. PROPOSAL TENURE All proposals will be an irrevocable offer for ninety (90) calendar days from the proposal due date. J. CRIMINAL BACKGROUND INVESTIGATIONS In accordance with the requirements of the Act, employees of the successful firm assigned to this engagement will be required to submit to a criminal background investigation which meets GLC requirements, at the expense of the firm. K. INSURANCE The successful firm must maintain sufficient professional liability, commercial general liability, automobile liability, and other insurance coverage during the term of the contract to provide for damages, claims, or other losses incurred by the GLC arising from the firm s performance of its services. The successful firm shall maintain professional liability insurance in the minimum amount of Five Million Dollars ($5,000,000), commercial general liability insurance in the minimum amount of One Million Dollars ($1,000,000). The successful Firm shall provide proof of such insurance coverage to the GLC prior to execution of its contract with the GLC. L. PROPOSAL SIGNATURES AND PACKAGING A corporate representative who is authorized to contractually bind the firm must manually sign all copies of the proposal. The firm must also provide the GLC with the name, business address, address, and business telephone number of a person who will act as the contact person for all inquiries that the GLC may have during the proposal evaluation process. Such person shall be authorized to make representations for and bind the firm contractually. ALL PROPOSALS MUST BE SUBMITTED IN A SEALED ENVELOPE AND PROPERLY ADDRESSED TO THE CONTRACT COMPLIANCE ADMINISTRATOR AT THE GLC. PRICING MUST BE SUBMITTED IN A SEPARATE SEALED ENVELOPE. M. NON-EXCLUSIVE RIGHTS By this RFP, the GLC does not intend to grant any firm the exclusive rights to provide all materials and services required by the GLC during the period covered by any contract resulting from this RFP. If the GLC determines that the creation and production of materials and services
7 Page 7 of 12 by various firms is in the GLC's best interest, the GLC shall have the right to purchase, contract for, and use these materials and services without infringing upon or terminating any contract resulting from this RFP. N. PROPOSAL DELIVERY It is the firm's responsibility to assure that its proposal is delivered at the proper time and place, as specified in this RFP. Proposals which, for any reason, are not so delivered will not be considered by the GLC. Late proposals will not be accepted; they will be returned unopened to the responding firm. Proposals transmitted by telegram, telephone, , or fax will not be accepted. A proposal may not be altered after delivery, unless requested by the GLC. O. ACCEPTANCE OF PROPOSAL BY THE GLC The GLC reserves the right to accept or reject any and all proposals and to award a contract pursuant to this RFP in the best interests of the GLC and the State of Georgia. The GLC also reserves the right to negotiate with any or all firm(s) in any manner necessary to serve the Corporation's best interests. P. PROPOSALS SUBJECT TO OPEN RECORDS All data, material, and documentation originated and prepared for the GLC pursuant to this RFP shall belong exclusively to the GLC and may be available to the public in accordance with the Georgia Open Records Act, O.C.G.A , as amended. However, in accordance with O.C.G.A , the GLC will make reasonable attempts to maintain the confidentiality of any trade secrets or proprietary information identified by a firm if such firm properly identifies the particular data or other materials that are trade secrets or proprietary information in writing by page, paragraph, and sentence prior to or upon submission to the GLC of the data or other materials to be protected. The firm should also state the reasons such confidentiality is necessary. However, under no circumstance will the GLC be liable to any firm or to any other person or entity, for any disclosure of any such trade secret or confidential information. The GLC may not consider proposals in which all or a substantial portion of the proposal is declared by the firm to constitute trade secrets or confidential information. Q. ADVERTISING In submitting a proposal, the firm agrees not to use the results thereof as a part of any commercial advertising without the prior written consent of the GLC. R. NEWS RELEASES The GLC is the only entity authorized to issue news releases relating to this RFP, its evaluation, and the award of any contract and performance thereunder. Under no circumstances shall any firm issue any such news releases without the express prior written consent of the GLC in each instance.
8 Page 8 of 12 S. INTERPRETATIONS AND DISPUTES Any questions concerning conditions and specifications in this RFP shall be directed in writing to the GLC Contract Compliance Administrator. Inquiries must reference this RFP and the date that delivery of the proposal is due to the GLC Contract Compliance Administrator. No interpretation shall be considered binding unless provided in writing by the GLC through the Contract Compliance Administrator. Any actual or prospective firm that disputes the reasonableness or appropriateness of the terms, conditions, and specifications of the RFP or any action taken by the GLC in connection with this RFP or the contract to be awarded pursuant hereto must first pursue and exhaust any and all remedies available to it in accordance with the dispute resolution procedures adopted by the GLC, as amended from time to time. Any appeal of any decision of the Board of Directors of the GLC must be made in accordance with such dispute resolution procedures and Section of the Georgia Lottery for Education Act. T. NONASSIGNABILITY Any award resulting from this RFP cannot be assigned in whole or in part without the prior written approval of the GLC.
9 Page 9 of 12 EXHIBIT A GLC ON-LINE DRAWINGS AUDITOR SCHEDULE EVENING GAMES Sunday Monday Tuesday Wednesday Thursday Friday Saturday All or Nothing Cash 3 Cash 4 Georgia Five 5 Card Cash NIGHT GAMES All or Nothing Cash 3 Cash 4 Georgia Five Fantasy 5 Jumbo Bucks Lotto* Mega Millions* *Jumbo Bucks Lotto drawings on Monday and Thursday; Mega Millions drawings on Tuesday and Friday Duties: One trained on-site auditor will be required to be physically present at the GLC television studio, at a minimum, between the hours of 9:30 a.m. and 2:00 p.m., Sunday through Saturday, 365 days a year (and 366 days a year during leap years) to perform Lottery Draw Audit duties.
10 Page 10 of 12 EXHIBIT B GLC ON-LINE DRAWINGS AUDITOR SCHEDULE MIDDAY GAMES Sunday Monday Tuesday Wednesday Thursday Friday Saturday All or Nothing (x2) Cash 3 Cash 4 Georgia 5 Duties: One trained on-site auditor will be required to be physically present at the GLC television studio, at a minimum, between the hours of 9:30 a.m. and 2:00 p.m., Sunday through Saturday, 365 days a year (and 366 days a year during leap years) to perform Lottery Draw Audit duties.
11 Page 11 of 12 REFERENCES Firm: Date: Provide References Please list four (4) major accounts for which you have provided similar services. Company: Company: Address: Address: Contact: Contact: Phone #: Phone #: Company: Company: Address: Address: Contact: Contact: Phone #: Phone #:
12 Page 12 of 12 PRICING SHEET Firm: Date: Professional fees (hourly rate): Staff $ Senior $ Supervisor $ Manager $ Partner $ Other: $
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