exhibit a pa lottery rfp business requirements … web view... sample of the offeror’s recommended...

PA LOTTERY: INSTANT LOTTERY GAME SERVICES - DETAILED REQIREMENTS

Instant Lottery Game ServicesInstant Lottery Game Services (BRD)

Version 0.6

Status Baseline

Issue Date 08 / 09 / 2017

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Document Revision History

Version

Version Date Summary of Changes Author

0.0 7/28/2017 Draft working version Greg DoucetteKelly BlackNicole Gallant

0.6 08/09/2017 Consolidation of team feedback Greg DoucetteKelly BlackNicole Gallant

0.7 08/16/2017 Draft for issue to Committee for review Greg DoucetteKelly BlackNicole Gallant

Stakeholders

Group Representative(s)

Instant Ticket Marketing & Design Kara Sparks / Cal Heath / Connie Bloss

Finance and Corporate Services

Customer Care Jen Towsen

IT Operations Support Chrisy

Security William Phillips

Instant Ticket Sales Victoria Holman / Matt Greenstreet

Account Management Daniel Coyne / Aaron Drew

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Contents

Document Revision History..........................................................................................................................................................................................2

Stakeholders............................................................................................................................................................................................................ 2

Contents...................................................................................................................................................................................................................... 3

Introduction: Instant Lottery Game Services...............................................................................................................................................................6

Document Scope..................................................................................................................................................................................................... 7

Terminology:................................................................................................................................................................................................................ 7

Detailed Requirements................................................................................................................................................................................................9

1. Account Management Services...........................................................................................................................................................................9

Business Account Management Services.................................................................................................................................................................9

Proprietary and/or Patented, Trademark, Service Mark Search and Registration.................................................................................................10

Licensed Properties............................................................................................................................................................................................... 10

Licensed Properties............................................................................................................................................................................................... 11

Project Governance............................................................................................................................................................................................... 12

Audit and Certification Reports.............................................................................................................................................................................13

Business Recovery Plan......................................................................................................................................................................................... 14

2. Instant Ticket Marketing Services.....................................................................................................................................................................15

Product Plan.......................................................................................................................................................................................................... 15

Marketing Plan...................................................................................................................................................................................................... 16

Industry Analysis.................................................................................................................................................................................................... 17

Product Research & Development........................................................................................................................................................................18

Telemarketing, Ticket Ordering and Inventory Monitoring System.......................................................................................................................18

Inventory Management Integration......................................................................................................................................................................19

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District Sales Representative (DSR) Transactions..................................................................................................................................................20

Reports.................................................................................................................................................................................................................. 21

Instant Ticket Inventory Transition Plan................................................................................................................................................................21

3. Instant Game Design and Printing.....................................................................................................................................................................22

Instant Game Planning Process.............................................................................................................................................................................22

Product Development and Game Design...............................................................................................................................................................23

Instant Game Staffing............................................................................................................................................................................................ 24

Development of Printing and Production Schedule...............................................................................................................................................25

Game Design......................................................................................................................................................................................................... 25

Ticket Catalogs....................................................................................................................................................................................................... 27

Working Papers..................................................................................................................................................................................................... 27

Ticket Numbering.................................................................................................................................................................................................. 28

Ticket Printing........................................................................................................................................................................................................ 30

Variable Number of Tickets per Pack per Game (pack size)..................................................................................................................................31

Quality Specifications............................................................................................................................................................................................ 32

4. Storage and Distribution of Instant Tickets.......................................................................................................................................................33

Inventory Management.........................................................................................................................................................................................33

Distribution Facility & Warehousing......................................................................................................................................................................35

Warehouse Staffing............................................................................................................................................................................................... 38

Ticket Order Fulfillment.........................................................................................................................................................................................38

Picking Process...................................................................................................................................................................................................... 39

Instant Ticket Distribution.....................................................................................................................................................................................40

Instant Ticket Collection and Return Process........................................................................................................................................................41

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Shipping Additional Materials...............................................................................................................................................................................42

Ensure Secure Distribution/Distribution Subcontractors.......................................................................................................................................42

Ticket Distribution and Ticket Lifecycle Security....................................................................................................................................................43

5. Instant Ticket Security.......................................................................................................................................................................................45

Instant Ticket Printing and Production Game Specifications.................................................................................................................................45

Operations and Ticket Production Security...........................................................................................................................................................45

Instant Ticket Security Incident Reporting.............................................................................................................................................................46

Instant Ticket Security Controls.............................................................................................................................................................................46

Ticket Reconstruction............................................................................................................................................................................................ 47

Security Testing..................................................................................................................................................................................................... 47

Printing Plant and Pre – Delivery Warehouse Security..........................................................................................................................................48

Employee Security Program..................................................................................................................................................................................48

Ticket Quality Testing............................................................................................................................................................................................ 48

Game Production and Prize Guarantees................................................................................................................................................................49

Winner’s File and Inventory File............................................................................................................................................................................51

Secure Instant Ticket Transportation.....................................................................................................................................................................51

6. Instant Ticket Game Closure.............................................................................................................................................................................52

Returned Tickets.................................................................................................................................................................................................... 52

Game Close Audit.................................................................................................................................................................................................. 52

Instant Ticket Destruction.....................................................................................................................................................................................53

7. Retailer and Employee Training........................................................................................................................................................................54

Retailer & Employee Training................................................................................................................................................................................54

Provide a sample of a standard retailer training manual.......................................................................................................................................54

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Retailer Security Training.......................................................................................................................................................................................55

Supplemental Professional Training Support........................................................................................................................................................56

Corporate Partners Development Program...........................................................................................................................................................56

8. Dispensing Equipment & Systems Support.......................................................................................................................................................57

Instant Ticket Dispensers & Signage......................................................................................................................................................................57

Instant Ticket Management System Software Programming Support Requirement.............................................................................................58

9. Optional Services............................................................................................................................................................................................... 59

Offered & Invited Options.....................................................................................................................................................................................59

Additional Marketing Services...............................................................................................................................................................................59

Product Innovation Roadmap................................................................................................................................................................................60

Retailer Centric Devices.........................................................................................................................................................................................60

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Introduction: Instant Lottery Game Services

Lottery is seeking proposals for the replacement of its current Instant Ticket Management contract. The following BRD describes the service option sought that will meet Lottery’s need for printing and distribution of Lottery products, primarily instant tickets. This BRD and the associated proposal of service should include but not limited to; the development, design, production and marketing of secure, high quality instant tickets. Additionally, an offeror should provide insight on print technologies, sustainable ticket supply plans, distribution planning, facility description, market analysis (including player profiling). Finally, an offeror should provide information concerning telemarketing and ordering services, vending machine options (including addressing the current vending equipment owned by the Lottery), billing and financial reporting, account management, game development ticket characteristics and security and testing protocols. This BRD is structure in such a way as to describe the Lottery’s current state of operations, along with a listing of detailed requirements.

Document Scope

The Business Requirements Document (BRD) describes the end-state requirements of the Instant Lottery Marketing & Management Service, Instant Ticket Design and Printing, Instant Ticket Security, Instant Ticket Storage and Distribution, Training, Lottery Central System Integration, and Dispensing Devices of the solution to be sourced.

Terminology:The following definitions apply to the box marked “Significance”:

CRITICAL The section or subsection and its requirements must be responded and adhered to.

REQUIRED The section or subsection and its requirements are considered essential to the Lottery and should be adhered to.

DESIRED The section or subsection and its requirements are desired by the Lottery.

INVITED OPTION An Invited Option is identified as being of specific interest to the Lottery. Bidders are not obligated to include Invited Options in their Proposals and should consider them as added value.

In addition please indicate using the appropriate drop box for each requirement and if appropriate include a comment for further explanation: Out of the box Configurable setting

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Would require customization Not Supported Supported in next release

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Detailed Requirements

1. Account Management Services

ID Category Requirement Significance Business Owner

Status Comments

1.1 Account Management

ServicesBusiness Account Management Services

Account management services are required by the successful Offeror. Describe the account management services framework that will be employed for this contract. Please detail your standard account management process considering, but not limited to the following items:

Provide regular billing and financial reports as required by PA Lottery.

Attend regular meetings as requested by PA Lottery.

Develop, implement, and manage effective and efficient account and financial management practices that allow each game to be successfully executed.

Secure all legal clearances, consents, permissions, and implement tax withholdings and other procedures as required by law.

Provide a single point of account management.

Critical Daniel Coyne ☐ Out of the box

☐ Configurable setting

☐ Would require customization

☐ Not Supported

☐ Supported in next release

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Status Comments

Provide other services as required.1.2 Account

Management Services

Proprietary and/or Patented, Trademark, Service Mark Search and Registration

The successful Offeror will be required to conduct trademark and service mark searches for all game names and patent searches for play styles used during the term of the Contract, and will be required to provide to the PA Lottery, before working paper execution, a written legal opinion as to the permissible use of each game name or play style based upon a search of registrations and applications for registration filed with the United States Patent and Trademark office, applicable state agencies and other appropriate sources.

New trademark and service marks developed for the PA Lottery shall be the property of the PA Lottery and will be registered in the name of the PA Lottery at its direction. The Offeror may be required to register new Trade Marks as determined by the Lottery

Critical Aaron Drew ☐ Out of the box



☐ Not Supported



ServicesLicensed Properties

The Offeror may not separately charge the Lottery for licensing, royalties, or any other Intellectual Property fee for any items owned by



☐ Would require

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Status Comments

the Successful Offeror, the Successful Offeror’s parents, affiliates, subsidiaries or any other entity owned by the Successful Offeror or the Successful Offeror’s parent company. This requirement shall apply to all items owned by the Successful Offeror, the Successful Offeror’s parents, affiliates, subsidiaries or any other entity owned by the Successful Offeror or the Successful Offeror’s parent company, at the time the contract is executed for provision of services under this RFP, or at any time during the term of the contract for provision of services under this RFP, whether the item is sold or otherwise transferred to another party during the term of the contract.

customization

☐ Not Supported



ServicesLicensed Properties

The Offeror must list and describe any and all currently held exclusive licensing agreements or licensed properties of any kind in the response to this Proposal. All of the above must be available for use by the PA Lottery in producing instant tickets or in any advertising/promotions for the tickets. The required listing of all licensed properties must indicate which properties are available at no additional cost and those that will require an additional fee if the PA Lottery chooses to offer a game featuring this property.




☐ Not Supported


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Status Comments

The PA Lottery reserves the right to acquire licensed properties from other sources at its own expense, for incorporation into instant games printed by the Successful Offeror for the PA Lottery.


Services Project Governance

Project Management is an important aspect for the PA Lottery. Project Management is paramount in all aspects of delivering the systems and products provided for in this RFP on time and on budget. This section is intended to provide criteria that will be used to evaluate the Project Management Practices for delivery of the solutions.

The Offeror must identify an on-site technical project manager exclusively dedicated to this implementation.

The Offeror must propose a project team structure (to include both Offeror and Lottery Staff), process and tools that facilitate Lottery oversight of the implementation.

The Offeror must provide regular reporting in Microsoft Project format, walkthroughs and project status meetings as required by




☐ Not Supported


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Status Comments

the Lottery.

The Offeror must provide a secure website to access project records to enable Lottery staff to monitor project management tasks, schedules and issues. This requirement begins within thirty (30) days of the signing of the Contract and continues throughout the Contract.

As the potential vendor describe how you will provide at a minimum the following services:

Project Plan / Charter Project Scope Project Schedule Project Governance Requirements Analysis & Traceability Gap Analysis TCI & ROI Status Reporting Issues Management Risk Management Change Management Resource Management Financial Management Quality Assurance & Control Testing Communications, Change & Training Knowledge Transfer

1.6 Account Management Audit and Certification Reports


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Status Comments

Services Please provide to the lottery a list of governance certifications and or audit reports that demonstrate the Offeror’s best practice standards compliance. The Lottery reserves the right to request copies of these reports annually for review. A sample of relevant certification and or audit reports may include:

World Lottery Associate Security Controls Standard:2012

MUSL Rule #2 ISO 27001:2013 Information Security

Management SSAE 16 Type I & II ISO 9001 Quality Management

NOTE: the list above shall be updated, over time, to include and encompass the most up to date certifications and auditing reports and standards as exist in the industry. The Successful Offeror shall ensure that it will abide by the most up to date certifications and auditing reports over the term of the contract resulting from this RFP.



☐ Not Supported



ServicesBusiness Recovery Plan

The Offeror must submit a standard business recovery plan that identifies areas of severe risk and recommends solutions for the management of the instant ticket lifecycle from ticket design and printing to timely distribution to the retailer

Critical Bill Phillips ☐ Out of the box



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Status Comments

for sale. This plan should address how the Offeror will manage the lottery’s risk and exposure to loss of revenue in the event of a disaster.

☐ Not Supported


2. Instant Ticket Marketing Services


Status Comments

2.1 Instant Ticket Marketing Services

Product Plan

The proposal MUST include a sample of the Offeror’s recommended annual instant product plan developed for the PA Lottery.

The sample recommended product plan will be for the first twelve (12) months of the contract.

The plan should present the recommended strategy for instant game products in Pennsylvania including but not limited to:

Offeror support Consumer research testing Rationale that supports these

recommendations Game launch schedule Twelve-month, rolling product line plan Prize structures/payouts

Critical Kara Sparks ☐ Out of the box



☐ Not Supported


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Status Comments

Print quantities Price point and product mix Recommendations on each price point’s

positioning in relation to other price points

Recommendations on positioning in relation to Fast Play games

Sales data and trend analyses Analysis of potential licensed properties Second Chance offers, Second chance games Revenue projections with overall prize

liability percentage2.2 Instant Ticket

Marketing Services

Marketing Plan

A proposal covering the first 12 months must include a copy of the Offeror’s marketing plan that should address the recommended strategy for marketing instant games in Pennsylvania including but not limited to:

Consumer & retailer marketing signage Retailer incentive programs and

promotions Interactive marketing

Proposed ticket production quantities (move to Product Plan)

Consumer promotions Sponsorships Event marketing Responsible gaming Retail merchandising makeover

Critical Connie Bloss ☐ Out of the box



☐ Not Supported


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Status Comments

program Merchandising of instant tickets at

retail to maximize sales Second-chance drawings (move from

Product Plan) Winner initiatives Beneficiary initiatives Marketing best practices

Response MUST include a sample.


Industry Analysis

The proposal must include a sample of the Offeror’s recommended semi-annual state-of the-industry analysis document. The analysis should consider global and regional industry trends, applicable trends for the Pennsylvania market and provide a comparison of each showing any potential gaps that may affect the PA Lottery.

Provide a sample of the Offeror’s recommended semi-annual situational analysis of the instant game market in Pennsylvania, including but not limited to:

player profile regional profile business types vending trends




☐ Not Supported


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Status Comments

second chance offers second chance games opportunities sales potential


Product Research & Development

The Offeror must describe any and all research vehicles used in support of the Lottery’s Instant ticket marketing initiatives, not limited to:

game launches game performance game development Describe a plan for conducting and

presenting research findings, including format and frequency of presentations.

Response MUST include a sample.

Critical Cal Heath ☐ Out of the box



☐ Not Supported



Telemarketing, Ticket Ordering and Inventory Monitoring System

The Proposal MUST include a description of a complete telemarketing and ticket ordering service for including telemarketing process management, telemarketing employee management along with software and systems to support the function.

Please provide a description of how you will implement this service considering but not

Critical Jen Towsen ☐ Out of the box



☐ Not Supported


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Status Comments

limited to the following topics: Retail orders Call schedules Coordination of distribution

schedules/calendar Order processing Managing service issues Real-time monitoring of warehouse

inventory Tracking and confirmation of pack

deliveries Perform quality assurance of

telemarketing staff customer calls Handle customer complaints Reporting Requirements Predictive Ordering

NOTES: Telemarketing sales and ordering

functions will be under the direct supervision of the PA Lottery in a co-located facility.


Inventory Management Integration

At a minimum, the proposed telemarketing system MUST have the flexibility or ability for Interfacing with other lottery central systems and integrate seamlessly with the inventory management function.

Critical Jen Towsen ☐ Out of the box



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Status Comments

☐ Not Supported



District Sales Representative (DSR) Transactions

Proposals must describe how the system will include the following:

support retailer inventory management transactions and messages for DSRs.

Capabilities must exist for transferring shipments, packs, or tickets to the DSR’s inventory for tracking purposes.

The DSR may issue packs to retailers, return packs or transfer packs to/from another DSR.

Additionally, the System must allow for inventory to be transferred and returned to the lottery via the DSR at any time deemed necessary.

The offeror must describe an efficient way for DSRs to report service issues. Please indicate

Critical Victoria Holman

☐ Out of the box



☐ Not Supported


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Status Comments

minimum and/or maximum time frames for responding to service calls?


Reports

Provide a listing of all reports and their frequency that are available from the systems proposed in response to this RFP.

Describe how these reports will be made available to the Lottery Central System.

Include samples of each.

Critical Cal Heath ☐ Out of the box



☐ Not Supported



Instant Ticket Inventory Transition Plan

The successful Offeror will have the responsibility to manage the orderly transfer of responsibilities from the current contractor to the successful Offeror. The response to this RFP requires the presentation of a strategic plan to accomplish this transfer in a seamless and smooth way to manage the transition of services and inventory.




☐ Not Supported


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3. Instant Game Design and Printing


Status Comments

3.1 Instant Game Design and

PrintingInstant Game Planning Process

The proposal MUST include a complete description and timeline of the instant ticket planning process for an instant scratch-off game, from the development stage to the “available in the warehouse for distribution” stage. A timeline should be provided for a new game launch, as well as a re-order. The timelines should note key milestones within the development process, such as ticket art, prize structure, draft working papers, audit, review and execution. The timeline for a new game launch must include the time necessary to pack the initial allocations of tickets for delivery to retailers. Multiple timelines should be provided to address any variations beyond the standard game, including but not limited to licensed properties, playstyles (e.g. bingo or crossword), paper stock, or specialty inks.

NOTE:The instant games planning process plays a vital role in the success of the PA Lottery’s instant ticket sales. With an aggressive game launch




☐ Not Supported


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Status Comments

schedule that currently includes 60-70 new game launches per year and 7 (seven) price points, the PA Lottery works with the Offeror on a continual basis to quickly monitor the relative success of each game. Games may be re-ordered at the discretion of the PA Lottery. Sales from re-ordered games account for a significant portion of the PA Lottery’s total instant sales; therefore, quick turnarounds and flexible print schedules are imperative in the planning and production process to ensure that sufficient ticket inventory remains available with no lapses in sales for any game.


PrintingProduct Development and Game Design

The Offeror will work under the direction of the PA Lottery and play a significant role in its product development program by providing insight and recommendations regarding games and implementation schedules.

The proposal MUST include a complete description of their recommended product development support services associated with the design and




☐ Not Supported


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Status Comments

introduction of an instant lottery game Including a detailed description of the Offeror’s recommended process and significant support personnel to be dedicated partially or exclusively to the PA Lottery for management consultation relating to game design.


PrintingInstant Game Staffing

Identify and provide resumes, job descriptions, as well as the percentage of time expected to be dedicated to the PA Lottery for personnel that will be available for game planning, and design purposes. Include additional individuals that will be needed only occasionally to meet the requirements of the PA Lottery.




☐ Not Supported



PrintingDevelopment of Printing and Production Schedule

Offerors must provide weekly formal updates of all game development work-back schedules, production and printing schedules, including but not limited to




☐ Not Supported

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Status Comments

working paper development and execution dates, print dates and delivery dates to the Pennsylvania warehouse throughout the term of the Contract.

Provide a sample update report.

Offerors must provide continuous updates to key development personnel of the PA Lottery.



PrintingGame Design

The proposal must provide a detailed description of no more than fifteen (15) proposed instant PA Lottery games. These games should include:

1 sample for each price point ($1, $2, $3, $5, $10, $20, $30)

Two seasonal games Bingo Crossword Extended Play ($3) – not bingo or

crossword A game with a 2nd chance drawing

tied to it Licensed property




☐ Not Supported


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Status Comments

Variables to consider include:

prize structure overall game design, the number of tickets recommended

to run the game, the recommended price point for

the game, the rationale used in suggesting

each of the games, and

Note

After Contract award, the PA Lottery reserves the right to determine the games, ticket quantities, price points and prize structure of any game to be introduced, at its sole option. The Offeror must agree not to release copies or replicas of the games designed by or for the PA Lottery prior to the introduction of the game


PrintingTicket Catalogs

Provide one (1) copy of a ticket catalog containing representative samples of tickets from past available games produced over the last three years.

The Offeror’s submitted proposals must include at least one binder of the actual




☐ Not Supported

☐ Supported in

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Status Comments

physical printed tickets. This printed sample catalog will be in addition to any stated page limitation in this RFP.

next release


PrintingWorking Papers

Proposals must include a description of the content of the working papers the Offeror will supply to the Lottery to meet standard industry best practice.

Also, for review, proposals must provide a complete sample set of working papers for the following games:

Standard game Crossword Game Bingo Game Game with a second-chance drawing

The four complete sample sets of working papers will be in addition to any stated page limitation in this RFP.




☐ Not Supported



PrintingTicket Numbering

Provide a description of the processes used for ticket numbering considering the following:




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Status Comments

Pack Numbering

Each ticket pack and all tickets within that pack shall bear a unique pack number.

Each ticket must bear a unique number.

The PA Lottery’s instant tickets are currently printed with the following configuration:

Front of Ticket – A three (3)- digit ticket number (NTS), and a twelve (12)-digit PIN number, are printed on the front of the ticket.

Back of Ticket- A four (4)-digit game identifier, with a seven (7)-digit sequential pack number, a three (3)-digit check sum and a three (3)-digit NTS number (ranging from 000 to 299, or other ending number, as specified by working papers for the game) are printed on the back of each ticket in a human -readable format. This human – readable game – pack- NTS number is printed in an area separate from the bar-code configuration.

Describe in detail the method to be used in numbering the tickets, and provide and explanation of how it is ensured that no duplicate or void pack numbers or ticket numbers will be handled.

☐ Not Supported


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Status Comments

Validation Numbering

The PA Lottery requires a unique validation number and a twelve (12)-digit PIN. The validation number must be generated by algorithms and must not aid in the identification of a winner, expect by the use of a game-specific algorithm. The location of the validation and PIN number will be determined by the PA Lottery. The validation and PIN number must be covered by protective coating and rub- off material.

Describe in detail the proposed system for assigning validation numbers to all tickets.

Ticket Validation – Bar Code

Describe your ticket validation bar code methodology.

UPC Code – Retailer

Describe your process considering the following:

The PA Lottery requires that a UPC (Universal Product Code) bar code be printed to NAICS Standard on the back of all instant tickets.

The PA Lottery will work closely with the successful Offeror to define the location and specific requirements for the UPC bar code placement.

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Status Comments

UPC Code – Retailer Inventory Control

Describe your process considering the following:

Describe in detail how the PA Lottery could assist retailers to manage inventories of instant games at the ticket level using retail UPC scanning technology.


PrintingTicket Printing

The offeror should provide a complete description of its printing capabilities outlining but not limited to the following:

Front & Back Side minimum distinct display colors with

capability of full bleed minimum overprint colors colors consistency UV coating (or improved coating)

over the entire front surface of the ticket to provide a glossy finish

inks which will not smear from sweat

Game Data Printing and Inks game data and ink security and

quality ticket play symbols accompanied

by captions to prevent alterations




☐ Not Supported


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Status Comments

Available Fonts Describe all fonts currently

available for use in ticket production

Disclose any limitations in regard to the capability of imaging a variety of words, letters, numbers, characters, or unique symbols

Limitations must be fully and clearly specified in the proposal.


PrintingVariable Number of Tickets per Pack per Game (pack size)

The offeror’s proposal should describe their capabilities to provide variable quantities of tickets per pack, per game. (Example: variable pack sizes)




☐ Not Supported



PrintingQuality Specifications

Proposal must address how the offeror will manage ticket quality specifications to ensure the acquisition of instant game products that are marketable and of high



☐ Would require

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Status Comments

quality and durability. Please consider the following but not limited to:

card stock ticket dimensions environmentally friendly products UPC and bar codes success rate

readability inks and coatings Perforations lottery industry printing trade

tolerances and practices Images on the tickets (symbols,

captions, retailer codes, validation codes, inventory control data and UPC and bar codes) are sharp and clearly defined

customization

☐ Not Supported


4. Storage and Distribution of Instant Tickets


Status Comments

4.1 Storage and Distribution of Instant Tickets

Inventory Management

Proposal must provide a detailed plan to ensure that an adequate supply of tickets is always available for distribution, including third-party games, if any, chosen by the PA Lottery.

Critical Kara Sparks / Cal Heath

☐ Out of the box



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Status Comments

The proposal must include a complete description of the real-time inventory control, management, forecasting and reporting system proposed.

At a minimum, the proposed system must be capable of:

Providing sales history and analysis of all instant games introduced during the past two years including, but not be limited to, the net impact that each instant ticket game has had on total PA Lottery sales and gross profits,

Providing inventory control and management though the entire life cycle of each game,

Producing reports tracking inventory from the warehouse through any status available in the system in summary and on a detailed basis,

Producing status reports on an as-needed basis from the real-time records used to track ticket packs,

Tracking the return of unsold packs of tickets (full or partial) at every available status point,

Instant ticket sales forecasting:o Short-term (90 days)

forecasting by game and by retailer

o Initial game launch allocation quantities by retailer, taking

☐ Not Supported


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Status Comments

game style, sales history and price point into account,

o Estimated retailer re-orders points considering tickets presented for validation and delivery time,

o Monitoring sales of slow-selling games and recommending replacement with another product, and

o Sales analysis considering regional and/or seasonality factors of game styles and price points.

Instant ticket statistical sales modeling that projects prospective sales considering the following characteristics:

o Instant ticket game styles and price points,

o Retailer experience with similar games' sales,

o Seasons'/ holidays' influence, and

o PA Lottery and retailer promotions and advertising flights planned.

Identify properties that we can use to associate with sales volume based on game descriptions including the following;

o Price point,

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Status Comments

o Prize pool,o Probability of winning,o Ticket size and appearance,o Game play format,o Instant Game Ticket Design,o Instant Game Prize Tier

Allocation, ando Historic sales of similar games.o Please provide a list of all

reporting capabilities


Distribution Facility & Warehousing

The proposal MUST demonstrate capabilities to:

be responsible for the storage of tickets from the time they are delivered to the PA Lottery distribution facility until they are distributed to retailers or the PA Lottery's district offices. Facilities, organization and procedures must be designed to ensure the security and integrity of the games.

The Distribution Facility will be co-located with the PA Lottery headquarters near Harrisburg, PA.

The Offeror will sublease 45, 000 sq. Ft. secure warehouse space and 5. 000 sq. ft. of office space within the PA Lottery facility.

The office space is to be designed and built out at the expense of the




☐ Not Supported


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Status Comments

successful Offeror. The size of the warehouse facility may

be adjusted to accommodate future increases in sales and the resultant additional games and ticket volumes as necessary.

All procedures and controls must be approved by the PA Lottery.

The warehouse must be located within the PA Lottery facilities near Harrisburg, PA. A co-location lease arrangement will be executed with the successful Offeror.

The warehouse must include a minimum of 10, 000 square feet of secured space for use by the PA Lottery for storage of “online” ticket stock and supplies.

All utility costs will be in addition to rental costs,

Snow removal and all exterior maintenance costs are included in the rental costs.

Interior walls have been constructed to provide a secure separation from the space occupied by the PA Lottery.

Construction of office space within the office area will be at the cost of the successful Offeror.

The cost of office furniture and equipment required by the Offeror including telecommunications, LANS, janitorial service and other normal items of such nature will be at the expense of the successful Offeror.

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Status Comments

Utility service will be installed and metered separately with the exception of any common areas.

Separate restroom will be provided in the space dedicated to the Offeror operations. Parking will be included in the stated costs however, assigned parking is not contemplated.

Exterior services such as snow removal. grounds maintenance, building repairs; etc., would be covered by the landlord.

Ceiling height of the warehouse area will be 28 feet to accommodate 4 levels of skidded materials (the floor and three tiers).

The Proposal must address the requirements set forth above and must include:

A description of the security controls, including the access control system (s) and procedures,

Security equipment and procedures, Intrusion detection and monitoring

equipment and procedures, and Fire prevention and detection, and flood

detection.

NOTE:Lease costs will be adjusted annually to reflect changes in the cost of real estate taxes. The Offeror will not bear any expenses for Lottery staff assigned to work within the offeror’s

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Status Comments

assigned area.4.3 Storage and

Distribution of Instant Tickets

Warehouse Staffing

The personnel used in the warehousing operation must be separated and independent from any printing operation.

Submit a warehouse-staffing plan, including the resume of the prospective warehouse manager.




☐ Not Supported



Ticket Order Fulfillment

Proposals should consider that the Lottery will require that:

The Offeror will be responsible for the picking and packing 100% of ticket orders and other materials as required by the PA Lottery, including tickets manufactured by other Offerors. The PA Lottery anticipates purchasing no more than 10% of the total number of instant games and similar PA Lottery gaming products from other Offerors on an annual basis.

Orders may be originated from the Telemarketing System, and any future system that may be developed to ensure retailers receive sufficient tickets and

Critical Christy Hile ☐ Out of the box



☐ Not Supported


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Status Comments

materials to achieve maximum sales. The procedures to be used cannot compromise security, integrity, efficiency or accuracy.


Picking Process

The Proposal must contain a detailed plan for the picking, processing and packaging of instant packs for delivery to retailers. It should address all aspects of the operation including:

Staffing and organization, Physical layout of packaging area

including space requirements, Packaging staff training, Production standards, Anticipated hours of operation

necessary to achieve next-day delivery during the week, on week-ends and during holiday periods,

Picking and packaging procedures, physical controls, system controls, and employee/supervisor over-ride capability for miss-scanned packs or barcode “read” failures, and

shipping containers and packaging materials.




☐ Not Supported



Instant Ticket Distribution

The proposal must document how the Offeror



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Status Comments

will:

delivering instant tickets to retailers and the PA Lottery offices.

Deliveries must be accomplished the next day to all areas of Pennsylvania where possible, but no later than two business days after the order is requested.

If a subcontractor is proposed, such subcontractor must be identified and its full capabilities disclosed in the proposal.

Process should provide retailers with information to track the status of shipments that are in transit.

Full order tracking of all shipments must be the beginning of the next normal PA Lottery business day.

Tracking information must be provided in a format acceptable for publication on the PA Lottery retailer website.

Signed receipt or other acceptable proof-of-delivery must be provided to the PA Lottery in the same format publication on the retailer website.

Describe the potential of a fully integrated tracking system for in transit tickets from warehouse to retailer delivery.


☐ Not Supported


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Instant Ticket Collection and Return Process

The PA Lottery would like the Offeror to provide sample best practice program taking into consideration a solution for chain of custody of tickets that can be deployed for the lottery. This program should manage the return of tickets, whether full or partial packs, from the retailer to the distribution center to complete the game audit and ticket destruction process.

Critical Matt Greenstreet

☐ Out of the box



☐ Not Supported



Shipping Additional Materials

The Offeror will be required to include additional materials in routine shipments of instant tickets to be delivered to Retailers, at no additional cost to the PA Lottery. Such items may include:

o Flyerso Face cardso announcementso newsletterso game brochureso such as POS that falls outside the size

limitso on-line game supplies or ticket stocko play slipso other materials as designated to fit into

the Offeror's standard shipping




☐ Not Supported


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Status Comments

container(s)4.9 Storage and

Distribution of Instant Tickets

Ensure Secure Distribution/Distribution Subcontractors

The proposal must ensure that the distribution of instant tickets is accomplished in a secure, effective, and efficient manner that presents a positive, professional image of the PA Lottery, the delivery company and the delivery person.

The Offeror may subcontract with another company or companies to provide these services, but any and all such subcontractors must be identified and are subject to the same rules, provisions and requirements of this RFP and to the approval of the PA Lottery.




☐ Not Supported



Ticket Distribution and Ticket Lifecycle Security

Proposals must demonstrate but is not limited to the following capabilities:

The Offeror must present a detailed description of their security procedures in reference to the chain of custody for the full lifecycle of the ticket. This should describe how




☐ Not Supported


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Status Comments

they handle the security of the ticket from the time it is created through the time it is cashed or destroyed. It should also demonstrate evidence that the printing systems and data of the tickets shall not be accessible to those involved in the warehousing activities and vice versa.

A distribution plan that provides an overview of the methods and carriers by which packaged tickets are to be transported from the production plant to the warehouse. In addition, the plan should include the same type outline from the warehouse to the area offices and retailers. The plan should also show expected turnaround times the retailer can expect to get tickets when they place an order.

A detailed description of the control system in place to account for packs of instant tickets from the time they arrive at the warehouse to the time they arrive at the retailer.

A detailed description of the dimensions for the secure space for anticipated use by the Lottery in the warehouse, including segregated space for Lottery point-of-sale and

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Status Comments

premium items, supplies, and other items that are intended for delivery to Retailers and other marketing events over the course of 6 months.

A detailed description of the warehousing space, which shall contain, at a minimum, a loading bay or ramp to receive delivery of tickets from tractor trailer trucks, backup electrical generation capability, fire protection, and security. Identify the environmental control systems to allow storage of instant tickets for up to twenty-four (24) months with no degradation in instant ticket quality.

5. Instant Ticket Security


Status Comments

5.1 Instant Ticket Security Instant Ticket Printing and

Production Game Specifications

It is the PA Lottery’s intent to receive Proposals for the printing of instant game tickets using “state of the art” production techniques, including the services necessary to design and produce secure, high quality instant tickets.




☐ Not Supported

☐ Supported in

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Please submit a proposal that details the best practice you will utilize in the production of tickets throughout the Instant Ticket Lifecycle.

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5.2 Instant Ticket Security Operations and Ticket Production

Security

The proposal shall provide detailed security plan for the production of instant game tickets and may include but is not limited to:

o Plant securityo Game ticket construction securityo Anti-counterfeiting and validation

securityo Redemption securityo Game design security

Ticket destruction security.

Critical Bill Phillips / Christy Hile

☐ Out of the box



☐ Not Supported


5.3 Instant Ticket Security Instant Ticket Security Incident

Reporting

The Offeror should provide a detailed security reporting process for monitoring and reporting security incidents to the lottery


☐ Out of the box



☐ Not Supported


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Status Comments

5.4 Instant Ticket Security Instant Ticket Security Controls

Neither winning tickets nor non-winning tickets shall be recognizable by the human eye from any characteristics of the tickets other than by the play symbols concealed by the rub off material. Please document the industry best practice Instant Ticket Security Controls that you will utilize.


☐ Out of the box



☐ Not Supported


5.5 Instant Ticket Security Ticket Reconstruction

The Offeror must describe in the proposal its industry best practice process for implementing Ticket Reconstructions between the Lottery and printing location.


☐ Out of the box



☐ Not Supported


5.6 Instant Ticket Security Security Testing

The Offeror must describe the Instant Ticket Security Testing processes it will utilize.


☐ Out of the box



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Status Comments

Descriptions of the processes should include Dry and Wet testing methods and descriptions of the techniques than will be utilized.

☐ Not Supported


5.7 Instant Ticket Security Printing Plant and Pre – Delivery

Warehouse Security

The Offeror must describe the security control environment for their printing plant locations, and controls used for pre-delivery warehousing.


☐ Out of the box



☐ Not Supported



Employee Security Program

The success Offeror must establish a program to ensure that all those involved in the design, production, distribution or sale of the instant PA Lottery tickets are precluded from ascertaining or being knowledgeable of the location of winning tickets.

The proposal must outline the procedures that will be implemented to address this requirement.




☐ Not Supported


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Status Comments

5.9 Instant Ticket Security Ticket Quality Testing

The Offeror must describe its Instant Ticket Quality Testing process it will utilize.

Descriptions of Quality Testing of instant tickets should consider the following possible testing methods

DRY TESTING: please give techniques and descriptions that you utilize

WET TESTING: please give techniques and descriptions that you utilize


☐ Out of the box



☐ Not Supported


5.10 Instant Ticket Security Game Production and Prize

Guarantees

The proposal shall describe the methods and procedures to guarantee:

That each game is printed in conformity with all game specifications included in the Working papers

That each game is printed in conformity with the prize structure included in the Working Papers so that prizes will constitute no more than the percentage of revenue stated, and larger prizes are all present in delivered tickets within




☐ Not Supported


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Status Comments

stated tolerances

All winning and nonwinning tickets are distributed throughout the entire population of the game according to industry standards and best practices in order to ensure randomness and prize structure integrity.

It is required that complete production records be available at any time during production of games under any contract entered into by the PA Lottery.

Describe these records and the manner in which they may be audited. Submit sample production forms to be used.

Also described in detail any CPA audit performed on each game and provide a copy of a report from a game produced in the past 6 months.

A certification and audit of the prize structure by an independent CPA firm is required.

Describe what independent test or audits which the randomizer programs, computer tapes and production procedures are subjected to in order to ensure randomness and prize structure integrity.

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Status Comments

Also, describe computer programs, operations security, and data storage and transportation security.

5.11 Instant Ticket Security Winner’s File and Inventory File

The proposal must describe the secure procedure for submitting to the lottery a computer file containing all prizes for the game, including grand prize entry tickets and annuity type prizes, if any. The offeror must also provide an Inventory file compatible with the gaming system accountability program. Format and specifics to be determined by the lottery.




☐ Not Supported


5.12 Instant Ticket Security Secure Instant Ticket Transportation

The proposal should document how secure transportation throughout the supply chain of Instant Tickets will be managed from the printing/manufacturing facility to the PA Lottery distribution facility and retailer locations. The proposal should also describe how the offeror will manage tickets returned and the destruction of tickets.




☐ Not Supported


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6. Instant Ticket Game Closure


Status Comments

6.1 Instant Game Closures Returned Tickets

The Offeror should document how it will manage the return ticket process. The process may consider but not be limited to:

the return undeliverable, unaccepted shipments, including games purchased from other Offerors, to the PA Lottery in the original shipping containers or as returned from the delivery company




☐ Not Supported


6.2 Instant Game Closures Game Close Audit

The proposal should provide process for game audit and closure which may consider but is not limited to:

procedures and specifications ensuring security control and audit specifications are maintained when an instant game is closed

The game closure procedure to be used in the closing of an instant game

the method and timing of informing retailers of a game closure and the collection of unused tickets

the procedure to be used to balance game tickets held in storage and by




☐ Not Supported


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Status Comments

retailers specifications for audit checks of instant

ticket stock A list of any parties authorized to close a

game and/or destroy tickets6.3 Instant Game

Closures Instant Ticket Destruction

The proposal should provide process for instant ticket destruction which may consider but is not limited to:

the process for the secure disposal of undistributed and/or returned tickets in the PA Lottery system in an environmentally responsible manner

a full description of ticket destruction procedures, including security measures to be employed during transport to disposal site




☐ Not Supported


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7. Retailer and Employee Training


Status Comments

7.1 Retailer & Employee Training

Retailer & Employee Training

The proposal should include retailer and PA Lottery employee training on the various aspects of handling the instant game process, as appropriate, including industry best practices.

Training may be provided in conjunction with the on-line gaming system contractor.

The proposal shall demonstrate how Offeror will be responsible for assisting in the developing and updating of training materials for new retailers in the skills necessary to merchandise, sell and properly account for instant tickets, including but not limited to settlement of sold tickets, end-of-game settlements, reporting lost or stolen tickets, end-of-day functions at retailer locations and theft prevention by both store employees and customers.

Provide a sample of a standard retailer training

Critical Victoria Holman

☐ Out of the box



☐ Not Supported


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Status Comments

manual.


Retailer Security Training

The proposal should include a description of typical best practice for retailer security training. This training might include but is not limited to the following:

training to ensure retailers conform to the security specifications applicable to the receipt, storage and sale of instant tickets

procedures provided to the retailers to validate the integrity of packages of instant tickets on receipt and to confirm that they have received a particular shipment of tickets

retailer procedures regarding prize claim payout, ticket validation, instant ticket handling and storage, reporting of security issues and the handling of lost and stolen tickets

the process in which training materials will be developed for retailers to enable them to meet the security specifications for handling instant tickets, including inventory, product storage, video surveillance, management of funds received for ticket purchases, and

Critical Jen Towsen /Bill Phillips /Christy Hile

☐ Out of the box



☐ Not Supported


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Status Comments

payment of winners if authorized retailer procedures regarding prize claim

payout, ticket validation, instant ticket handling and storage, reporting of security issues and the handling of lost and stolen tickets


Supplemental Professional Training Support

During the term of the contract the Offeror will coordinate and provide additional support for PA Lottery staff training conferences and seminars by providing additional training professionals at an annual cost not to exceed $100,000 as approved by the PA Lottery. Training will be conducted on topics selected by the PA Lottery and at the times and locations determined by the PA Lottery.

Critical Matt Greenstreet

☐ Out of the box



☐ Not Supported


7.4Corporate Partners Development Program

Collaborate with PA Lottery corporate sales staff in providing a comprehensive sales merchandising and marketing seminar as needed. Seminar costs should include food, lodging and event logistics. Annual cost not to exceed $100,000.

Critical Scott Smith ☐ Out of the box



☐ Not Supported

☐ Supported in

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Status Comments

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8. Dispensing Equipment & Systems Support


Status Comments

8.1 Dispensing Equipment &

Systems Support

Instant Ticket Dispensers & Signage

The Offeror should respond with a solution to meet the criteria below:

During the course of the contract, the PA Lottery will require the purchase of instant ticket dispensing devices for use at retailer locations.

The PA Lottery will provide specifications on an as needed basis and request the Offeror to negotiate the best price available and procure all such items as may be required from time to time for the normal conduct of business at retailer locations.

The Offeror must agree to provide basic and custom design dispensers, to distribute the required number of full packs of instant tickets using the best




☐ Not Supported


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Status Comments

marketing and sales approached. Costs of dispensers and at-retail

peripherals acquired under this paragraph will be passed from the Offeror directly to the PA Lottery with no mark-up.

8.2 Dispensing Equipment &

Systems Support

Instant Ticket Management System Software Programming Support Requirement

The offeror must provide over all software and project management governance for the integration and development of code with the online systems as it relates to enhancing the Instant Ticket product delivery.




☐ Not Supported


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9. Optional ServicesID Category Requirement Significance Business Owner Status Comments


ServicesOffered & Invited Options

A feature or item not identified in the RFP but that may be identified by the Offeror and included in the proposal. However, the PA Lottery makes no commitment to any quantity or timing for acquisition. The PA Lottery expects separate pricing for Offered Options, even though that pricing may be “No Charge.” The Offeror is not obligated to include Offered Options in the proposal.

Invited options have also been included in the RFP (at: references). Invited options are items or services requested by the Lottery with pricing not to be scored. Invited options will be exercised solely at the option of the PA Lottery. It is expected that the Offeror will make such item or service available to the PA Lottery, unless separately negotiated after selection of the successful Offeror.

Invited Option

Aaron Drew ☐ Out of the box



☐ Not Supported


9.2 Additional Invited Options

for Future Additional Marketing Services

Invited Option

Daniel Coyne ☐ Out of the box

☐ Configurable

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ID Category Requirement Significance Business Owner Status Comments

Growth Provide information on other services or products, over and above those that are specifically required in this RFP. Explain why and how such service(s) or product(s) would benefit the PA Lottery.

setting


☐ Not Supported


9.3 Additional Invited Options

for Future Growth

Product Innovation Roadmap

The Offeror should provide its five (5) year product roadmap outlining to the lottery its plans for development and delivery of innovative state of the art products and list and describe all offered additional capabilities that they currently can provide.

Invited Option

Kara Sparks ☐ Out of the box



☐ Not Supported


9.4 Additional Invited

Options for Future Growth

Retailer Centric Devices

As an INVITED OPTION, this section should also include all innovations to assist the retailers in validation of tickets, theft avoidance devices such as bar code readers to assist with end-of-day or end-of-shift accounting and placing unsold tickets into a “Not available for sale” status over night or during non-store hours. Tickets placed in this

Invited option Jen Towsen / Matt

Greenstreet

☐ Out of the box



☐ Not Supported

☐ Supported in

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ID Category Requirement Significance Business Owner Status Comments

status will again become “available forsale” as soon as the retailer signs on to the system the next business day.

As an INVITED OPTION, the Offeror may propose technologies and/or methods that would provide accounting for instant ticket sales on a real-time basis. Other information as may be required to accommodate the desire of the PA Lottery to offer retailers the ability to activate individual tickets as they me sold at retail is also desirable.

next release

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exhibit a pa lottery rfp business requirements … web view... sample of the offeror’s recommended...

Documents