Download pdf - TEXAS LOTTERY COMMISSION REQUEST FOR PROPOSALS FOR ... › ... › QA_Promo_Product_2018_Final_Full_Q… · would need to list that. Any cost that you know, you would need to list

TEXAS LOTTERY COMMISSION

REQUEST FOR PROPOSALS FOR

PROMOTIONAL PRODUCTS

#362-19-0001

RESPONSES TO PROPOSERS’

QUESTIONS

AND

RFP AMENDMENTS

October 10, 2018

2

REQUEST FOR PROPOSALS

FOR

PROMOTIONAL PRODUCTS

RESPONSES TO PROPOSERS’

QUESTIONS

Note to All Prospective Proposers:

The following responses include questions raised and answers provided during the pre-proposal

conference held on September 24, 2018, and questions submitted in writing by the RFP deadline.

In its answers to the following questions, the Texas Lottery has attempted to provide both

accurate and thorough responses. Some answers may clarify or modify the RFP, and every

Prospective Proposer is on notice of each answer’s content. Answers that modify the RFP are so

noted. Answers apply only to the facts as presented in each specific question.

Proposers shall review all sections of the RFP along with this document to ensure a complete

understanding of the requirements. Any exceptions to the RFP shall be noted in the proposal, as

required under Section 2.7 of the RFP.

Please note: Any questions regarding the HUB Subcontracting Plan (HSP) are in a separate

document that will be updated throughout the procurement process.

PRE-PROPOSAL CONFERENCE QUESTIONS AND RESPONSES – September 24, 2018

1. Are the samples blank random samples or do they all have to be embroidered or

imprinted with the Lottery’s logo?

RESPONSE: Section 4.5 points out all the samples that are to be included with a submitted Proposal. It’s everything that’s on the chart. For clarification, only one sample needs to be embroidered with the Texas Lottery logo. None of the other samples require a logo or design. If you need the logo you can contact Sonya at [email protected].

2. You have several logos, you will let us know which one to use?

RESPONSE: Yes. You can make your request through Sonya Bebley at [email protected].

3. Just to clarify, so when we’re submitting the proposal you’re getting blank samples

and then initially whoever is awarded the bid will get you actual spec samples with

the Lotto. So like the tumbler for instance.

RESPONSE: No. We will only ask the Successful Proposer to produce an item with a logo if we are ordering that specific item. The samples Proposers

3

provide are actually the specification samples that are in the RFP, and need to be submitted with the Proposal. The samples are the actual items that would be ordered under the contract, Proposers cannot provide a sample for a brand name and substitute with off- brand if awarded a contract. Only one (1) sample item needs to be embroidered. The rest of the samples submitted with a Proposal can be blank, or they can have any logo, as an example. But, all items must meet the specifications in the RFP.

4. You will get the other sections that are more specific about the items?

RESPONSE: Correct. Part 6, specifically Section 6.19 of the RFP, gives the specifications for each item.

5. Going back to financial institutions or bankers have a concern with the termination

at will or for cause. How often does that happen and what are the grounds in which

that has happened in the past?

RESPONSE: Not very often, but it is a standard provision in the Texas Lottery’s contracts. Some examples of where these provisions could be used are where the contract is no longer needed, a conflict of interest has arisen, a vendor becomes ineligible, etc.

6. Going back to the bond that is required, I am trying to see how that works for

promotional products. I know with constructions they have bonds but for promotional

products I am trying to see how?

RESPONSE: It’s a performance bond, and it’s not the same as a construction bond. It’s based on the performance. If for any reason you fail to perform or walk away from a job, then we can take that bond. That is why the bond must contain the language specified in Attachment F.

7. Have you had that in the past for promotional?

RESPONSE: We have never had to pull a bond for a Promotional Products Contract, nor have we cancelled a promotional contract either. By statute, all Texas Lottery contracts require a performance bond. If you have trouble getting a bond, we can point you to some sureties that have written similar bonds with similar dollar amount.

8. The second round of US tariffs to China are going to go into effect in January and

there’s several products that it will affect and it could be as much as a twenty- five

percent increase. Would you like for us to asterisk those products so you know?

RESPONSE: Please see Amendment Nos. 6, 7, 8 and 9.

4

9. The items that you have listed are these items that you’ve bought in the past before?

RESPONSE: Not all of them. Attachment H indicates promotional product order history. You’ll see the items that we ordered in the last two years, Fiscal Years 2017 and 2018.

10. Are new items stock items, they exist or are they custom items? RESPONSE: No items are essentially stock items. We like to change or mix-up promotional items that we give away. Attachment H will give you the items that we purchased in 2017-2018. This also gives the quantity of past items, and a list of new items that we have not ordered before.

11. Specs for the new items, the description, did you get them from catalogues, online,

or an extra product? RESPONSE: The specifications for each item are listed in RFP Section 6.19.

12. For instance, the windbreaker I see that 2018 will be the first year for that item. So

your description for the windbreaker, did you have that actual windbreaker or did you

get the specs online, from a catalog? The reason why I am asking there are lots of

windbreakers out there can be 100 percent and whatever. I am just trying to make

certain that we provide you exactly what you are asking for. RESPONSE: Specifications were obtained from multiple sources including online catalogs. Please refer to RFP Section 6.19 that lists the individual specifications for each item. In some instances, we listed a name brand description and the item should be equal or better than the brand specified. You really need to pay attention to the specifications and exactly how they are written.

13. Do you have items from last year or the previous year on hand that you can see, touch

and feel? Are there any spec samples from previous years? Do you have the acrylic

cup that was printed, do you keep anything? RESPONSE: Yes, we do have spec items that were obviously submitted with the vendors’ proposals, and used under the Contract. We are unsure how helpful these would be to a Proposer, as the items are different than those requested in this RFP. Proposers must submit a sample to be included with their Proposals of all the items listed in RFP Section 4.5, and each item must meet the specifications in RFP Section 6.19.

14. To make our life easy a lot of times ASI number or the actual manufacturer number

that those items came from are listed on those items. So just to see what quality of

things that you’ve done previously.

5

RESPONSE: What we have done in the past isn’t necessarily indicative of what we’re doing in the future. The specifications that we want on the items for the current RFP are listed in 6.19. We gave an associated brand for a requested item, where possible. TLC will not provide the past items. We do not believe they would be helpful because our requirements for this RFP have changed. Again, the TLC does not tend to order the same promotional products over and over. Also, we do not have standard items, because we’re trying to keep our products fresh.

15. I guess if you had something and you know you could ask the question is this quality

the one that you guys liked didn’t like, you know you could get feedback on that

item? RESPONSE: Promotional items shall meet the specifications of the RFP. If it meets the specifications in the RFP, then you are good. There could be multiple brands, or like items, that meet those specifications. If we’ve identified the brand, then we want that brand—or an item that’s equal to or better than the brand specified. In addition, please refer to Question No. 3.

16. So when you mention a specific item like the pop-up tent that you want from a

manufacturer that’s what you want? RESPONSE: It could be an off-brand, but we want an item that’s equal to or better than the specified brand.

17. On the description where it says it’s an equal or better item that’s what you’re

referring to which is fine until you come down to the custom items. I don’t expect a

physical sample but is there a, maybe a diagram, a picture or the logo that would be

used? Because when it comes to custom ornaments we have suppliers asking us for

more detail of those items? RESPONSE: Yes, the ornaments are custom. Every year, the design changes to keep them fresh. Please see Exhibit A.

18. On your shipping costs the eight percent, does that normally work or have there been

times where it’s ten percent or more? RESPONSE: The current vendors have been below eight percent.

19. On 6.20, the offered option, that does not have to include the pricing, is that right?

This is in addition to what you’re requiring.

RESPONSE: Please refer to Attachment J (page 102) of the RFP on the cost proposal for offered options. If you have any offered options to offer, then you would list your corresponding price here. If your price is “to be determined” because you’re not sure, or you have a range, but it’s “to be determined”, you

6

would need to list that. Any cost that you know, you would need to list. Our goal is that we know any cost upfront. Offered options are not evaluated by TLC. If a proposer is awarded a contract, and the TLC wants to take advantage of an offered option, then that is usually done during negotiations.

20. Will there be any additional products, other than listed here, that you will be

purchasing based on your past experience? Maybe something came up that was not

covered and how will pricing go with that. Is it list price because I know we don’t

have to put a discounted percentage, how does that work?

RESPONSE: We don’t anticipate purchasing additional items that are not on this list. If we do, the contract would be amended, or we could go through a separate procurement process.

WRITTEN QUESTIONS RECEIVED BY OCTOBER 2, 2018 @ 4 P.M.

21. What is the annual value of this program?

RESPONSE: The budget for fiscal year 2019 is $1,050,000. Please note the budget is subject to change each year of the contract.

22. Who is your incumbent supplier for this program How long have they managed it?

RESPONSE: Beehive Specialty from 9/25/2014 through 9/24/2018, and CFJ, Manufacturing, LP, 9/25/2014 through 9/24/2017.

23. How many companies have been invited to participate in the process? Has Texas

Lottery’s incumbent been invited to participate?

RESPONSE: The TLC does not invite specific vendors to participate in the process. The process is open to all vendors that can provide the goods and services. There is no prohibition for the incumbent.

24. How is sourcing currently managed for this program?

RESPONSE: TLC is responsible for all agency procurements.

25. In which areas of your current program are you facing challenges? Which processes

would you like to see continued?

RESPONSE: The TLC has not identified any challenges. All requested processes have been identified in the RFP.

26. How many selected supplier partners is the Texas Lottery anticipating partnering

with for this program?

7

RESPONSE: Please refer to RFP Section 1.1.3

27. Is there any existing program inventory? If so, what is its total value? How is

inventory currently managed? RESPONSE: Yes, TLC has existing promotional item inventory. The

approximate value is $1,362,000. TLC manages all promotional product inventory.

28. Can you please clarify any licensing requirements/agreements with Texas Lottery

that would be part of a future agreement with your selected supplier (s)?

RESPONSE: This is standard language in the RFP. If there are any licenses required by the Successful Proposer to do business under this contract, those licenses should be obtained by the Successful Proposer.

29. Will Texas Lottery mandate program spend through your selected suppliers?

RESPONSE: No, yearly spend is at the discretion of TLC.

30. Are there any integration requirements with Texas Lottery’s purchasing systems? If

so, what platform(s) and level(s) of integration required?

RESPONSE: No, there is no integration required.

31. How will Texas Lottery help market the new program to your end users?

RESPONSE: There is no program to market to end-users. The products are for the Texas Lottery’s use.

32. How will Texas Lottery’s decision-making process be operated? Key decision-

maker, committee, etc.? If a committee, please clarify in which departments are your

decision makers involved?

RESPONSE: If this question is in reference to the selection of the Successful Proposer, please refer to RFP Section 2.15 (particularly 2.15.5) of the RFP, and Attachment I, Scoring Matrix.

33. According to Attachment G, TLC Promotional Product Work Order Terms and

Conditions (Page 3), Under Packaging, Shipping and Delivery Requirements,

Section: Shipping: it states that “Texas Lottery will reimburse the Vendor actual

shipping charges.” What is the general procedure of reimbursement of shipping? Do

you need proof of charges from vendors? Also, sometimes, vendors include the

freight in the cost of the item when shipping from overseas. Do you want them to

8

leave off the freight coming to the US? If so, that would entail shipping

/import/taxes/etc. How do you want that calculated?

RESPONSE: Shipping shall not be included in the unit cost of an item. TLC will reimburse for actual shipping, and tariffs for overseas and inland freight/shipping and tariffs. Please refer to RFP Section 6.11.3, and Amendments Nos. 6, 7, 8, and 9.

34. If the order is smaller, the items may not need to come on a pallet. For the smaller

orders, are just standard boxes ok?

RESPONSE: Packaging will be discussed with TLC before a work order is executed.

35. How often are orders split shipped to the 9 locations? Or are most orders shipped to

one location?

RESPONSE: Most orders are delivered to the nine (9) locations.

36. On page 24 , Section 3.25, Can you please expand on what licenses and permits we

may need to have (besides the general ones in running a business)? Are there other

licenses we need to purchase specifically for TLC? If so, what are the costs and are

there any royalty fees?

RESPONSE: Please refer to Question No. 28.

37. Section 3.34, do you require evidence of insurance at the time of submitting the bid?

RESPONSE: No.

38. Do you have any information on who I would talk to or where to go for a performance

bond?

RESPONSE: The Successful Proposer shall provide a performance bond within fifteen (15) days of execution of the Contract. Upon request, TLC can provide the Successful Proposer with the names of sureties on similar dollar value bonds for its selection. Please refer to Question Nos. 6 and 7.

39. 3.52.6 to 3.52.8 We may use Fed Ex, UPS, etc. to deliver our orders to you. If there

is a natural disaster/acts of God out of our control or if the shipping company is late

to deliver, are we sill responsible to pay the liquidated damages?

RESPONSE: Please refer to RFP Section 3.42.

9

40. Is there a system in place currently to ensure that pre-production samples are

approved/no approved asap? If so, what is it?

RESPONSE: TLC has an internal process to review pre-production samples in a timely manner.

41. Can you please elaborate on section 3.15? Unanticipated tariffs in the next year may

significantly impact the cost of all products being imported in the US. Do you have

a suggestion on how to handle this with the products in the bid? I understand we

have the price adjustments. How many price adjustments does the vendor get? Also,

how do you handle price increases currently?

RESPONSE: Please refer to Amendment Nos. 6, 7, 8 and 9 for information on tariffs. Price adjustments are addressed in RFP Sections 3.15.1 through 3.15.6. Currently price increases are handled in accordance under the contract, which is separate from this RFP process.

42. Attachment L – What is the PMS color of the blue and gold in the logo?

RESPONSE: Pantone 280 PC (Blue) and Pantone 143 PC (Orange).

43. Attachment K – It is my understanding that the product will be delivered to these

locations. What is the timeframe where Texas Lottery knows that they received the

product from our company.

RESPONSE: TLC will receive notifications the next day or within two(2) Working Days.

44. What is a general order amount and how many orders do you place in a year?

RESPONSE: For examples, please refer to Attachment H, Promotional Product Procurement History, of the RFP.

45. If we are quoting a custom product, do we have to make a production sample of it

or can we provide an image with the specs for it?

RESPONSE: Please refer to RFP Section 4.5.1.

46. Please confirm on the cost sheet 6.19.4 (2) reusable bags that both imprint locations

will have either a 1 color, 2 color, 3 color or 4 color imprint in both locations?

RESPONSE: Please refer to RFP Section 6.19.4 (2). One imprint area per side and the imprints can be 1 color, 2 color, 3 color, or 4 color.

10

47. Do you know what the stitch count is to embroider the logo in Attachment L on hats

or bags? Do you have different imprints that you use for various orders?

RESPONSE: Please refer to RFP Section 6.5.4.The TLC will provide artwork/imprints in the work order to be used for the promotional product. The TLC uses different imprints for different orders. Each design will be in the Work Order. Contact Sonya Bebley at [email protected] for camera-ready art work.

48. In reference to 6.11.2, it is my understanding that we do not have to have a Hub

subcontracting plan in place if our vendor is the one shipping the product to Texas

Lottery. They will seek out the most economical plan for us. Is this accurate?

RESPONSE: All Proposers have to submit a HUB Subcontracting Plan with its Proposal. This is a pass/fail category on the scoring matrix. In addition, please refer to HSP Question No. 4, and RFP Section 6.11.

49. In section 6.11.3, Does this include our vendor's drop shipping fees to separate the

shipments or do we need to absorb these costs?

RESPONSE: Yes, please refer to RFP Section 6.11.3.

50. Can any company respond to this RFP if they see it on your website?

RESPONSE: Yes.

51. What were the annual dollar amounts of purchases each year of the previous

contract?


52. What was the annual dollar amount of purchases of both primary and secondary

awarded proposers?

RESPONSE: Approximate annual expenditures were:

FY15 - Beehive Specialty - $771,789.60 FY15- CFJ, Manufacturing - $311,385.72 FY16 - Beehive Specialty - $1,271,430.78 FY16- CFJ, Manufacturing - $12,128.67 FY17 - Beehive Specialty - $1,213,713.70 FY17-CFJ, Manufacturing - $12,920.80 FY18 - Beehive Specialty - $1,002,173.87

53. Was there a price increase during any year or did the pricing remain the same from

the original pricing quoted in 2015? If so, what percentage?

mailto:[email protected]

11

RESPONSE: During the initial term of the contract, a pricing adjustment was requested based on the producer price index (PPI) at the time.

54. Attachment H shows the history of items purchased but does not show the actual

month. Can you provide the month in which the purchases were made?

RESPONSE: TLC can purchase promotional items anytime of the year and does take into consideration the overseas holidays.

55. Can you provide all of the Texas Lottery logos that will be used to decorate items in

vector format, preferably in AI, EPS files?

RESPONSE: TLC will provide the Successful Proposer artwork/imprints to be used for each promotional product with the Work Order for the product. If you’re asking in response to the RFP, please contact Sonya at [email protected].

56. Can you provide pictures of the Holiday ornaments that have been ordered in the

past in both brass and acrylic? If a picture is not available can a diagram with the

actual shape or logo design be provided?

RESPONSE: Please see Exhibit A for photos of brass ornaments. To date, the TLC has not ordered an acrylic ornament. Please note the ornament design will change every year.

57. Section 3.15: On certain types of products there are 10% tariffs that are in effect

with potential increases to 25% on Jan. 1, 2019. Can you give an example of how

the formula works? Should we include the possible tariffs in the price since Texas

Lottery will most likely be ordering in January 2019?

RESPONSE: For more information regarding the tariffs, please see Amendment Nos. 6, 7, 8 and 9.

58. What determines when the Texas Lottery Commission will utilize the Primary or

Secondary vendor of the Contract when placing orders?

RESPONSE: There will not be designated primary and secondary vendors under the contracts resulting from the RFP. Many factors determine which vendors will receive Work Orders including, the annual budget, overall quality, and unit price of the promotional product.

59. What percentage (approximate) of orders are filled by the Primary and Secondary

vendors? 80/20, 70/30, 60/40, 50/50 other _______________.

12

RESPONSE: Please refer to Question Nos. 51 & 58.

60. Can you provide the description of items in which the orders were filled by the

Secondary vendor for the past 3 years?

RESPONSE: TLC ordered the following products from the secondary vendor over a 3-year period: Brass holiday ornaments, beach towels, scratch coins, fleece jackets and foldable reusable bags.

61. What is the name of company that previously was awarded the contract?


62. What are prices paid by the TLC for each item being reordered on the current bid?

RESPONSE: This information can be found on the Legislative Budget Board website at http://contracts.lbb.state.tx.us/Introduction.aspx or by submitting a request to the Texas Lottery at [email protected].

63. What are the qtys. per each previous purchase of the same items on the current bid,

and decoration requirements per request? example 2500, 5000... with 1 color, or 2

color imprint....

RESPONSE: Please refer to Question No. 14 and Attachment H for quantities. 64. What are the decoration descriptions and specs for each identical item being rebid -

example 1 color, 2 color?

RESPONSE: Please refer to RFP Section 6.19, and Attachment J, Cost Proposal.

65. What is the stitch count of the artwork to quote?


66. Please provide previous tabulations per company bid.

RESPONSE: This information can be requested via an open records request at the following email address: [email protected].

http://contracts.lbb.state.tx.us/Introduction.aspx



13

67. Please provide the evaluation scoring matrix pages of basis of award, of each

previous bidder on previous bid.

RESPONSE: This information can be requested via an open records request at the following email address: [email protected].

68. How many Successful Proposers does the Texas Lottery plan to award a contract

to? Section 1.1.3 states “multiple Successful Proposers” and section 4.5.7 states

“two Apparent Successful Proposers”.

RESPONSE: Please refer to Amendment No. 5.

69. Will the promotional items specified in the RFP be used to just give away to

customers, retailers, or both, or will they be used for customers as consolation

prizes when playing a game, because we can provide many different promotional

item types with much more innovation depending on the usage or application of

them.

RESPONSE: Please refer to Attachment H, Promotional Product Procurement History, of the RFP.

70. In order for us to be able to submit our bid submittal without having to type up

everything from the RFP, can you please send us a digital copy of the RFP in Word

file format?

RESPONSE: No, the RFP is posted on the TLC website in PDF format at https://www.txlottery.org/export/sites/lottery/index.html.

71. Can we just bid on items that we have an advantage on price and delivery?

RESPONSE: No. Proposers shall be able to provide (directly or through subcontracting) all of the promotional products identified in the RFP.

72. What is the name of the company that was the past provider/winner of the last

promotional item bid?



https://www.txlottery.org/export/sites/lottery/index.html

14

73. Do the products specified in the RFP need to be made in the USA or can they be

made in China?

RESPONSE: TLC does not specify where the products are to be made, only that they meet the specifications provided in RFP Section 6.19.

74. Page 75 – (17) – Acrylic Mug – Is the mug clear? Is it double walled

RESPONSE: Please refer to RFP Section 6.19.4 (17). The Successful Proposer will provide TLC with available colors.

75. If there is any duty charges after the contract is awarded, will the Texas Lottery pay

the difference?

RESPONSE: TLC will only reimburse for the contracted unit price, and shipping and tariff costs for the promotional product in an executed Work Order. Please refer to RFP Section 6.17 and Amendments No. 6, 7, 8 and 9.

76. Page 20-3.17-When you mention “expedited delivery” what is considered expedited

delivery? How many days is considered “expedited delivery”?

RESPONSE: Expedited delivery of Promotional Products is less than thirty (30), sixty (60), and ninety (90) days.

77. Page 20-3.17-When you say expedited 30, 60, 90, days, are you saying we will

quote delivery of 30 days, 60 days, and 90 days?

RESPONSE: Please refer to Question No. 76 and Attachment J (2).

78. Page 2- How many successful proposers will the Lottery choose?


79. Page 47-Can you please send an image(s) as well as the artwork files for each

promotional items, to us, in .eps file format?

RESPONSE: Please refer to Question No. 55. The EPS file for the artwork can be requested from [email protected].

15

80. So we have an ideal, and because they are so many variations with the promotional

items, with different price points, can you provide images/pictures of every single

promotional item specified/described in the RFP?

RESPONSE: TLC declines due to the volume of promotional products. Please refer to RFP Section 6.19.

81. There are many different locations and sizes that logos can be used on the

promotional items. Can you please provide mock up images of each of the

promotional items with the logos that will be used on them that will show were the

logo will be printed as well as the size of it, on them?

RESPONSE: The Successful Proposer will inform TLC of the allowable imprint area and size for the promotional product when processing each Work Order.

82. Section 2.5: Please clarify, the HSP documents are to be in separate binder/folder

and not included in the original response.

RESPONSE: Please refer to RFP Section 2.5. The HSP is not required to be in a separate binder/folder, but commonly is provided in a separate folder since fewer copies are required.

83. I have a few questions in regard to the Scratch Coin (2):

Is the desired color of the coin Silver?

The mfg. recommends that these could be Natural Aluminum and give the silver

look. There is no need for anodizing natural aluminum coins if silver is the

desired color. Is there a reason for anodizing?

The mfg. recommends these be packed out either 5,000 in a poly-lined box (no

charge) or 5 bags of 1,000 packed into the box.

Do you have a picture of the coin in full color?

RESPONSE: TLC has used the following colors: silver, gold, red, and blue. The TLC requires that the scratch coin be anodized. Please see Section 6.19.6 (2). Packaging can be discussed with TLC prior to the execution of the Work Order.

84. Section 2.7: Confirming bid is valid for 270 days

16

RESPONSE: Yes.

85. HUB question: Since we are a distributor of products, our factories will drop ship to

your locations and do all the packaging/shipping. That would mean that there is no

subcontract in place. BUT if TLC needs additional shipping quotes, as the

distributor, we are depending on our factory to find the other shipping quotes. This

would also mean that there is no subcontract in place.

RESPONSE: Shipping quotes will need to be provided prior to the executed Work Order. Proposers may not be directly subcontracting shipping; however, please note all Proposers need to submit a HUB Subcontracting Plan with its Proposal in accordance with RFP Section 5.2.1.

86. Section 6.11: Some of our vendors charge for certain ways of packaging items,

charge split shipments, will this charge be paid for my TLC? Also, overseas orders

may have various taxes/shipping, will these fees be paid by TLC or should it be

absorbed into the cost of the product?

RESPONSE: Please refer to Question No 33.

87. Section 6.11Some of our vendors who are overseas sometimes quote price

delivered to one location. Can we add a note stating that the price is delivered?

Will this affect our score if we do quote the item delivered?

RESPONSE: Please refer to Question No 33.

88. Section 6.13: What if our product gets caught at customs, or bad weather, or

something out of our control? Will we be penalized for that?

RESPONSE: Please refer to RFP Sections 6.13.2 and 3.42.

89. What are the current hub companies being used?

RESPONSE: Beehive Specialty, is an active HUB.

90. What was the % discount for reaching sales levels amounts offered by on

the previous award.

17

RESPONSE: The Texas Lottery does not understand the question. If you would like specific information about the previous contract, please submit an open records request to [email protected]. Please note that these products are not for sale or resale. They are intended to be prizes and giveaways to promote the Texas Lottery. Please refer to Attachment H to see how items were used in the past.

91. What were the total sales of purchases NOT INCLUDING FREIGHT each of the

previous years.


92. The bid specs say DO NOT INCLUDE FREIGHT in the quotes per units. If the

goods are shipping from China, should the prices being quoted to TLC be FOB

CHINA?

AND NOT include shipping costs (vessel to USA Port), duty, brokerage fees, transportation from Port to Port Warehouse, segregation, preparation for each shipment, inland shipping cost to final destination?

RESPONSE: Please refer to Question Nos. 33 and 49.


18

AMENDMENTS TO THE RFP

The following have been adopted by Amendment to the RFP, as permitted by Section 2.12 of the

RFP. The following sections have either been replaced in their entirety or new material has been

added.

Amendment No. 5

4.5.7 Following contract award, samples submitted by the two Apparent Successful Proposers

will not be returned. Samples submitted by all other Proposers may be returned, at the Proposer’s

request and expense.

Amendment No. 6

6.11.8 The Texas Lottery will reimburse the Successful Proposers actual tariff costs for each

order. No tariff costs shall be included for any product in the cost proposal.

19

PAGE 19

________________________________________________________________

Amendment No. 7

Attachment J

Cost Proposal

NOTE TO ALL PROSPECTIVE PROPOSERS: THE COST PROPOSAL MUST BE SUBMITTED IN

A SEPARATE SEALED ENVELOPE AS AN ATTACHMENT TO THE ORIGINAL PROPOSAL. ALL

PROPOSERS MUST COMPLETE THE COST PROPOSAL IN THE FORMAT PROVIDED FOR THE

SERVICES STATED IN THE RFP.

WITH THE EXCEPTION OF SHIPPING COSTS AND TARIFFS, ALL PROMOTIONAL

PRODUCT COST(S) MUST INCLUDE ALL DIRECT AND INDIRECT COSTS, INCLUDING

ALL EXPENSES WITH PROVIDING THE GOODS AND SERVICES REQUIRED UNDER

THIS RFP. COST SHALL INCLUDE, BUT NOT BE LIMITED TO, SALARIES, OVERHEAD,

GENERAL AND ADMINISTRATIVE EXPENSES AND PROFIT. NO SHIPPING OR

TARIFF COSTS SHALL BE INCLUDED IN THE COST FOR ANY PRODUCT IN THE

COST PROPOSAL. PLEASE REFER TO SECTION 6.11 REGARDING SHIPPING AND

TARIFFS COSTS. THE TEXAS LOTTERY WILL NOT REIMBURSE ANY TRAVEL

COSTS RELATED TO THESE SERVICES. COSTS SHALL BE BASED ON NINETY (90)

DAY DELIVERY FROM APPROVAL OF PRE-PRODUCTION SAMPLE

PROPOSERS ARE REQUESTED TO SUBMIT COSTS ON THE ATTACHED PAGES,

WHICH INCLUDE THE FOLLOWING. ALL SEVENTEEN (17) PAGES SHALL BE

COMPLETED AND RETURNED IN THE SEALED COST PROPOSAL.

Mandatory Price Sheet - 1 page

Imprinted Cost Sheet – 13 pages

Embroidered Cost Sheet - 3 pages

______________________________

(signature of person authorized to contractually bind the Proposer)

20

PAGE 101

________________________________________________________________

ATTACHMENT J

MANDATORY PRICE SHEET

1. Discounts – Cumulative Volume-Based Discount (Refer to Section 3.16)

Proposers shall submit a discount that would be extended to the Texas Lottery based on the

cumulative total invoiced paid amounts over the term, including renewals, of the contract using

the threshold levels below. Once the Texas Lottery meets a specified threshold, the discount

percentage will be applied to each of the following invoices. The percentage discount will be

adjusted when the next threshold is met.

Cumulative Volume Threshold Discount Percentage

$ 250,000 - $ 500,000 ________________%

$ 500,001 – $1,000,000 ________________%

$1,000,001 – $2,000,000 ________________%

$2,000,001 – $3,000,000 ________________%

$3,000,001 - $4,000,000 ________________%

2. Expedited Delivery Charges (Refer to Section 3.17)

The Texas Lottery reserves the right to request expedited delivery of promotional products of less

than 30 days, 60 days and 90 days from executed work order to final delivery. Proposers shall

submit a “not-to-exceed” percentage increase in promotional item cost for the following delivery

requirements. Final percentage increase cost will be negotiated between Texas Lottery and

Successful Proposers at time of request for expedited delivery. Shipping costs should not be

included in the percentage increase for the promotional item(s). Percentage increase should only

be based on promotional item cost and not include shipping costs. (Refer to Section 3.17)

Delivery of less than 30 days: ______________%

Delivery of 31 to 60 days: _________________%

Delivery of 61 to 90 days: _________________%

If Proposer fails to indicate a percentage increase, the Texas Lottery will not pay additional cost

for expedited delivery.

21

PAGE 102

________________________________________________________________

3. Offered Options (Refer to Section 6.19)

Proposers should describe offered options and the terms under which they are offered. Proposers

are not required to submit specifications and pricing for Offered Options. However, if any

options are offered, pricing shall be listed in this section.

_____________________________________

(printed name)

________________________________

(title)

_________________________________

(date)

Imprint Cost Sheet

Brand Name Not Designated - Brand/Product #: _________________________________________

6.19.4(2)

Reusable

Grocery Bag

Tw

o

Imp

rints

Tw

o

Imp

rints

Tw

o

Imp

rints

Tw

o

Imp

rints

Quantity Cost per Unit

1 color

logo

2 spot

color

logo

3 spot

color

logo

4 spot

color

logo

25,000 - 50,000

50,001 - 75,000

75,001 - 100,000

100,001 or more


6.19.4(3) Clear

Tote Bag

On

e

Imp

rint

On

e

Imp

rint

On

e

Imp

rint

On

e

Imp

rint


1 color

logo

2 spot

color

logo

3 spot

color

logo

4 spot

color

logo

300 - 2,500

2,501 - 5,000

5,001 - 10,000

75,001 - 100,000

Leed's ® Game Day Folding Chair (4 persons), model # 1070-81 Other Brand/Product #: ________________________

6.19.4(4) Game

Day Folding

Table

On

e

Imp

rint

Tw

o

Imp

rints

Th

ree

Imp

rints

On

e

Imp

rint

Tw

o

Imp

rints

Th

ree

Imp

rints

On

e

Imp

rint

Tw

o

Imp

rints

Th

ree

Imp

rints

On

e

Imp

rint

Tw

o

Imp

rints

Th

ree

Imp

rints


1 color

logo

1 color

logo

1 color

logo

2 spot

color

logo

2 spot

color

logo

2 spot

color

logo

3 spot

color

logo

3 spot

color

logo

3 spot

color

logo

4 spot

color

logo

4 spot

color

logo

4 spot

color

logo

300 - 2,500

2,501 - 5,000

5,001 - 10,000

Costs to include all associated cost in the price of each item, excluding shipping cost. 1

Imprint Cost Sheet

Leed's ® Pop Up Beach Tent, model # 1072-02 Other Brand/Product #: ________________________

6.19.4(6) Pop Up

Beach Tent

On

e

Imp

rint

Tw

o

Imp

rints

On

e

Imp

rint

Tw

o

Imp

rints

On

e

Imp

rint

Tw

o

Imp

rints

On

e

Imp

rint

Tw

o

Imp

rints


1 color

logo

1 color

logo

2 spot

color

logo

2 spot

color

logo

3 spot

color

logo

3 spot

color

logo

4 spot

color

logo

4 spot

color

logo

300 - 2,500

2,501 - 5,000

5,001 - 10,000

KOOZIE® Beverage Holder Other Brand/Product #: ________________________

6.19.4(7)

Beverage Holder

On

e

Imp

rint

Tw

o

Imp

rints

On

e

Imp

rint

Tw

o

Imp

rints

On

e

Imp

rint

Tw

o

Imp

rints

On

e

Imp

rint

Tw

o

Imp

rints


1 color

logo

1 color

logo

2 spot

color

logo

2 spot

color

logo

3 spot

color

logo

3 spot

color

logo

4 spot

color

logo

4 spot

color

logo

300 - 2,500

2,501 - 5,000

5,001 - 10,000

10,001 - 25,000

25,001 - 50,000


6.19.4(8) Zipper

Tote Bag

On

e

Imp

rints

On

e

Imp

rints

On

e

Imp

rints

On

e

Imp

rints


1 color

logo

2 spot

color

logo

3 spot

color

logo

4 spot

color

logo

300 - 2,500

2,501 - 5,000

5,001 - 10,000

25,001 - 50,000


Imprint Cost Sheet


6.19.4(9) Tool Kit

On

e

Imp

rint

On

e

Imp

rint


1 color

logo

2 spot

color

logo

300 - 2,500

2,501 - 5,000

5,001 - 10,000

10,001 - 25,000

25,001 - 50,000

50,001 - 75,000

75,001 - 100,000

Koozie ® Square Kooler Other Brand/Product #: ________________________

6.19.4(10) Cooler

Bag - Square

On

e

Imp

rint

On

e

Imp

rint

On

e

Imp

rint

On

e

Imp

rint


1 color

logo

2 spot

color

logo

3 spot

color

logo

4 spot

color

logo

2,501 - 5,000

5,001 - 10,000

10,001 - 25,000

25,001 - 50,000

50,001 - 75,000

75,001 - 100,000

100,001 or more


Imprint Cost Sheet


6.19.4(11) Roll Up

Picnic Blanket

On

e

Imp

rint

On

e

Imp

rint

On

e

Imp

rint

On

e

Imp

rint


1 color

logo

2 spot

color

logo

3 spot

color

logo

4 spot

color

logo

2,501 - 5,000

5,001 - 10,000

10,001 - 25,000

25,001 - 50,000

50,001 - 75,000

75,001 - 100,000


6.19.4(12) 4 in 1

Charging Cable

On

e

Imp

rint

Tw

o

Imp

rints


1 color

logo

1 color

logo

300 - 2,500

2,501 - 5,000

5,001 - 10,000

10,001 - 25,000

25,001 - 50,000

50,001 - 75,000

75,001 - 100,000

100,001 or more


Imprint Cost Sheet


6.19.4(13) Beach

Towel

On

e

Imp

rint

On

e

Imp

rint

On

e

Imp

rint

On

e

Imp

rint


1 color

logo

2 spot

color

logo

3 spot

color

logo

4 spot

color

logo

300 - 2,500

2,501 - 5,000

5,001 - 10,000

10,001 - 25,000


6.19.4(14)

Umbrella

On

e Im

prin

t

Ou

tsid

e

Tw

o Im

prin

ts

Ou

tsid

e

On

e Im

prin

t

Ou

tsid

e

Tw

o Im

prin

ts

Ou

tsid

e

On

e Im

prin

t

Ou

tsid

e

Tw

o Im

prin

ts

Ou

tsid

e

On

e Im

prin

t

Ou

tsid

e

Tw

o Im

prin

ts

Ou

tsid

e

On

e Im

prin

t

Ou

tsid

e

Tw

o Im

prin

ts

Ou

tsid

e

On

e Im

prin

t

Ou

tsid

eQuantity Cost per Unit

1 color

logo

1 color

logo

2 spot

color

logo

2 spot

color

logo

3 spot

color

logo

3 spot

color

logo

4 spot

color

logo

4 spot

color

logo

5 spot

color

logo

5 spot

color

logo

CMYK or

4 color

process

300 - 2,500

2,501 - 5,000

5,001 - 10,000

10,001 - 25,000


Imprint Cost Sheet

Alta BPA Free Tritan™ Sports Bottle 25 oz. Other Brand/Product #: ________________________

6.19.4(15) Sports

Water Bottle -

Aluminum

On

e Im

prin

t

On

e Im

prin

t

On

e Im

prin

t

On

e Im

prin

t


1 color

logo

2 spot

color

logo

3 spot

color

logo

4 spot

color

logo

300 - 2,500

2,501 - 5,000

5,001 - 10,000

10,001 - 25,000

25,001 - 50,000

50,001 - 75,000

75,001 - 100,000

100,001 or more

Steelys® Drinkware 11 oz Cooler Cup Other Brand/Product #: ________________________

6.19.4(16) 2 in 1

Can Cooler

Tumbler

On

e

Imp

rint

On

e

Imp

rint

On

e

Imp

rint

On

e

Imp

rint


1 color

logo

2 spot

color

logo

3 spot

color

logo

4 spot

color

logo

5,001 - 10,000

10,001 - 25,000

25,001 - 50,000

50,001 - 75,000


Imprint Cost Sheet


6.19.4(17) Acrylic

Mug

On

e

Imp

rint

On

e

Imp

rint

On

e

Imp

rint

On

e

Imp

rint


1 color

logo

2 spot

color

logo

3 spot

color

logo

4 spot

color

logo

5,001 - 10,000

10,001 - 25,000

25,001 - 50,000

50,001 - 75,000

75,001 - 100,000


6.19.5(1) Socks

Mu

ltiple

Imp

rints

Mu

ltiple

Imp

rints

Mu

ltiple

Imp

rints

Mu

ltiple

Imp

rints

Mu

ltiple

Imp

rints


1 color

logo

2 spot

color

logo

3 spot

color

logo

4 spot

color

logo

CMYK or

4 color

process

300 - 2,500

2,501 - 5,000

5,001 - 10,000

10,001 - 25,000

25,001 - 50,000

50,001 - 75,000

75,001 - 100,000

100,001 or more


Imprint Cost Sheet

Jerzees Adult Hooded Full-Zip Sweatshirt, Model No. 993M Other Brand/Product #: ________________________

6.19.5(3)

Sweatshirt -

Hooded and

Zippered M - XL

On

e Im

prin

t

Tw

o

Imp

rints


1 color

logo

1 color

logo

300 - 2,500

2,501 - 5,000

5,001 - 10,000

Jerzees Adult Hooded Full-Zip Sweatshirt, Model No. 993M Other Brand/Product #: ________________________

6.19.5(3)

Sweatshirt -

Hooded and

Zippered XXL

On

e Im

prin

t

Tw

o

Imp

rints


1 color

logo

1 color

logo

300 - 2,500

2,501 - 5,000

5,001 - 10,000


Imprint Cost Sheet

Gildan ® Heavyweight Cotton t-shirt, Model No. 5000 Other Brand/Product #: ________________________

6.19.5(4) Light

Colored Short

Sleeve T-Shirt:

M - XL

On

e Im

prin

t

Tw

o

Imp

rints

On

e Im

prin

t

Tw

o

Imp

rints

On

e Im

prin

t

Tw

o

Imp

rints

On

e Im

prin

t

Tw

o

Imp

rints


1 color

logo

1 color

logo

2 spot

color

logo

2 spot

color

logo

3 spot

color

logo

3 spot

color

logo

4 spot

color

logo

4 spot

color

logo

300 - 2,500

2,501 - 5,000

5,001 - 10,000

10,001 - 25,000

25,001 - 50,000

50,001 - 75,000

75,001 - 100,000

100,001 or more


6.19.5(4) Light

Colored Short

Sleeve T-Shirt:

XXL

On

e Im

prin

t

Tw

o

Imp

rints

On

e Im

prin

t

Tw

o

Imp

rints

On

e Im

prin

t

Tw

o

Imp

rints

On

e Im

prin

t

Tw

o

Imp

rints


1 color

logo

1 color

logo

2 spot

color

logo

2 spot

color

logo

3 spot

color

logo

3 spot

color

logo

4 spot

color

logo

4 spot

color

logo

300 - 2,500

2,501 - 5,000

5,001 - 10,000

10,001 - 25,000

25,001 - 50,000

50,001 - 75,000

75,001 - 100,000

100,001 or more


Imprint Cost Sheet


6.19.5(4) Dark

Colored Short

Sleeve T-Shirt:

M - XL

On

e Im

prin

t

Tw

o

Imp

rints

On

e Im

prin

t

Tw

o

Imp

rints

On

e Im

prin

t

Tw

o

Imp

rints

On

e Im

prin

t

Tw

o

Imp

rints


1 color

logo

1 color

logo

2 spot

color

logo

2 spot

color

logo

3 spot

color

logo

3 spot

color

logo

4 spot

color

logo

4 spot

color

logo

300 - 2,500

2,501 - 5,000

5,001 - 10,000

10,001 - 25,000

25,001 - 50,000

50,001 - 75,000

75,001 - 100,000

100,001 or more


6.19.5(4) Dark

Colored Short

Sleeve T-Shirt:

XXL

On

e Im

prin

t

Tw

o

Imp

rints

On

e Im

prin

t

Tw

o

Imp

rints

On

e Im

prin

t

Tw

o

Imp

rints

On

e Im

prin

t

Tw

o

Imp

rints


1 color

logo

1 color

logo

2 spot

color

logo

2 spot

color

logo

3 spot

color

logo

3 spot

color

logo

4 spot

color

logo

4 spot

color

logo

300 - 2,500

2,501 - 5,000

5,001 - 10,000

25,001 - 50,000

50,001 - 75,000

75,001 - 100,000

100,001 or more


Imprint Cost Sheet


6.19.6(1A) Brass

Holiday

Ornament with

CMYK Sleeve

On

e Im

prin

t


1 color

logo

300 - 2,500

2,501 - 5,000

5,001 - 10,000

10,001 - 25,000

25,001 - 50,000


6.19.6(1B) Acrylic

Holiday

Ornament with

polybag

On

e Im

prin

t


1 color

logo

300 - 2,500

2,501 - 5,000

5,001 - 10,000

10,001 - 25,000

25,001 - 50,000


Imprint Cost Sheet


6.19.6(1B) Acrylic

Holiday

Ornament with

plastic bag

On

e Im

prin

t


1 color

logo

300 - 2,500

2,501 - 5,000

5,001 - 10,000

10,001 - 25,000

25,001 - 50,000


6.19.6(1) Scratch

Key Chain

On

e

Imp

rint


1 color

logo

1 - 250,0000

251,001 - 500,000

500,001 - 1,000,000

1,000,001 - 2,000,000

2,000,001 - 3,000,000

3,000,001 - 4,000,000

4,000,001 - more


Imprint Cost Sheet


6.19.6(2) Scratch

Coin

Tw

o

Imp

rints

Quantity Cost per Unit Embossed

1 - 250,0000

251,001 - 500,000

500,001 - 1,000,000

1,000,001 - 2,000,000

2,000,001 - 3,000,000

3,000,001 - 4,000,000

4,000,001 - more


Embroidered Cost Sheet


6.19.4(1)

Weekender Bag

On

e Im

prin

t

Em

bro

ide

red

On

e Im

prin

t

Em

bro

ide

red


1 color

logo

2 spot

color

logo

300 - 2,500

2,501 - 5,000

5,001 - 10,000

Field Hudson & Co. ® Hudson 15" Computer Backpack Other Brand/Product #: ________________________

6.19.4(5)

Computer

Backpack

On

e Im

prin

t

Em

bro

ide

red

On

e Im

prin

t

Em

bro

ide

red


1 color

logo

2 spot

color

logo

300 - 2,500

2,501 - 5,000

5,001 - 10,000


6.19.4(8) Zipper

Tote Bag

On

e Im

prin

t

Em

bro

ide

red

On

e Im

prin

t

Em

bro

ide

red


1 color

logo

2 spot

color

logo

300 - 2,500

2,501 - 5,000

5,001 - 10,000

Cost to include all assoicated cost in the price of each item, excluding shipping cost. 1



6.19.4(11) Roll Up

Picnic Blanket

On

e Im

prin

t

Em

bro

ide

red

On

e Im

prin

t

Em

bro

ide

red


1 color

logo

2 spot

color

logo

300 - 2,500

2,501 - 5,000

5,001 - 10,000

10,001 - 25,000

25,001 - 50,000

50,001 - 75,000

75,001 - 100,000


6.19.5(2A)

Unconstructed

Baseball Cap

On

e Im

prin

t

Em

bro

ide

red

Tw

o Im

prin

ts

Em

bro

ide

red

On

e Im

prin

t

Em

bro

ide

red

Tw

o Im

prin

ts

Em

bro

ide

red


1 color

logo

1 color

logo

2 spot

color

logo

2 spot

color

logo

2,501 - 5,000

5,001 - 10,000

10,001 - 25,000

25,001 - 50,000

50,001 - 75,000

75,001 - 100,000




6.19.5(2B)

Constructed

Baseball Cap

On

e Im

prin

t

Em

bro

ide

red

Tw

o Im

prin

ts

Em

bro

ide

red

On

e Im

prin

t

Em

bro

ide

red

Tw

o Im

prin

ts

Em

bro

ide

red


1 color

logo

1 color

logo

2 spot

color

logo

2 spot

color

logo

2,501 - 5,000

5,001 - 10,000

10,001 - 25,000

25,001 - 50,000

50,001 - 75,000

75,001 - 100,000


6.19.5(2C)

Constructed

Military Baseball

Cap

On

e Im

prin

t

Em

bro

ide

red

Tw

o Im

prin

ts

Em

bro

ide

red

On

e Im

prin

t

Em

bro

ide

red

Tw

o Im

prin

ts

Em

bro

ide

red


1 color

logo

1 color

logo

2 spot

color

2 spot

color

2,501 - 5,000

5,001 - 10,000

10,001 - 25,000

25,001 - 50,000

50,001 - 75,000

75,001 - 100,000


Agency Representative:

Date:

pg. 1

Amendment No. 8

ATTACHMENT G

PROMOTIONAL PRODUCT

WORK ORDER NUMBER:

SECTION 1 - GENERAL INFORMATION

Vendor Name:

Contract Number:

SECTION 2 - SPECIFICATIONS

Product Name and Description:

Quantity:

Color:

Printing / Embroidery:

Artwork Description/PMS Colors:

Packaging: Product to be packaged _____ per box, _____ per pkg., etc.

SECTION 3 - WORKING PRODUCTION TIMELINE

Date Due:

Work Order Signed and Returned:

Pre-production Sample:

Product Delivery:

Actual Dates (Internal Use Only):



Product Delivery:

Any date changes to the working production timeline prior to final execution must be noted above by the

vendor and initialed.

* Date due denotes the latest acceptable day for that event. Earlier dates are acceptable.

Per Item Contracted Cost:

Total Product Cost (Per Item Cost x Quantity):

Estimated Shipping Cost (Insert Shipping Cost %):

Total Work Order Cost (Product + Shipping Cost):

Estimated Tariffs Cost (Insert Tariffs Cost %):

Total Work Order Cost (Product + Tariffs (if applicable) + Shipping Cost):

SECTION 5 - APPROVAL

Vendor Name Texas Lottery Commission

Authorized Signature


Date Date

SECTION 4 - PRODUCT COST

pg. 2

TEXAS LOTTERY COMMISSION

PROMOTIONAL PRODUCT

WORK ORDER

TERMS AND CONDITIONS

GENERAL ORDER INFORMATION

Overages: The Texas Lottery will only accept quantities specified in each work order. Acceptance and

payment for overages will be at sole discretion of the TLC.

Partial Orders: Partial orders will not be accepted without prior approval in writing from the Texas Lottery

Commission Promotions Department.

Artwork Provided to Vendor: Upon issuance of the initial work order.

ESTIMATED PRODUCTION TIMELINE

Note: The following information is intended to illustrate a typical production timeline to be

followed upon issuance of a Work Order, unless otherwise noted. Dates included in the Working

Production Timeline of the executed Work Order will be the final dates to be followed.

1. Upon receiving the written initial Work Order from the Texas Lottery, the vendor

shall review, sign in acknowledgement and return Work Order to the Texas Lottery

within seven (7) days.

2. Upon receiving the final executed Work Order from the Texas Lottery, the vendor

must provide the pre-production sample to the Texas Lottery within fourteen (14)

days or as specified in the final executed Work Order.

3. Upon approval of the pre-production sample by the Texas Lottery, the vendor must

deliver the promotional products within ninety (90) days or as specified in the final

executed Work Order.

4. Post Executed Changes – Any changes to the final Work Order must be in writing

and approved by the Texas Lottery.

PRE-PRODUCTION SAMPLE DELIVERY INFORMATION

The Vendor shall submit a pre-production (pre-pro) sample as specified in the Work Order for approval

prior to production of the order. The pre-pro sample must be approved to the satisfaction of the TLC prior

to production and continuance of the order. Acceptance of the pre-pro sample will be in writing by the TLC.

Pre-pro sample must be delivered to the following physical address:

Texas Lottery Commission

Attn: Promotions Department Representative

611 E. 6th Street

Austin, TX 78701

If there are any variations in the pre-pro sample to the original sample provided, the Vendor shall provide

a written explanation of the cause and list all variations to the Texas Lottery at the time of the initial work

order. The Texas Lottery may request a sample of the proposed product. The Texas Lottery, at its sole

discretion, may accept or reject the proposed product.

pg. 3

If the initial pre-pro sample is not acceptable and/or does not meet minimum specifications, a delivery of

2nd pre-pro and/or subsequent pre-pro samples shall be delivered within fourteen (14) days or as specified

in the written request for changes. Upon receipt of pre-pro sample, TLC will approve or disapprove.

At any time, if the pre-pro sample is deemed unacceptable by the TLC, the TLC reserves the right to cancel

the executed work order.

If a delay is foreseen in pre-production, production or delivery, the Vendor shall immediately notify the

TLC Promotions Department in writing with a viable solution.

MATERIALS AND WORKMANSHIP

Vendor shall follow the best commercial practices and use only materials and workmanship of the best

quality in providing the goods under this work order.

All products shall be free from loose threads, faulty stitching, color defects, excessive glue, etc. Product

shall be well finished and free of any defect which may affect functionality and/or appearance.

PACKAGING, SHIPPING AND DELIVERY REQUIREMENTS

All deliveries must comply with the packaging, shipping and delivery requirements set forth in the executed

work order and the RFP. Any exceptions will be considered an incident and as such the TLC may assess

liquidated damages as described in Section X.XX.X.

Packaging:

The vendor shall package product as specified in the executed work order.

Shipping:

The Texas Lottery will reimburse the Vendor actual shipping charges. All orders shall be shipped, packaged

and delivered F.O.B. destination using industry best practices.

The Vendor shall contact the Promotions Department at least five (5) days prior to shipping product to

confirm delivery address and relay shipping timeline. This timeline includes, but is not limited to, ship date,

delivery date, name of freight carrier and number of cases and/or pallets that are to be shipped. Refer to

Shipping Requirements regarding TLC standard rules and shipping procedures. See Attachment A for

shipping location(s), and quantities.

Shipping Requirements:

The following information outlines the standard shipping rules and regulations by which all vendors

shall abide when conducting business with the Texas Lottery Commission. It also specifies

packaging and shipping procedures required by the Texas Lottery.

A. Product shall be shipped on pallets unless prior written approval is granted by the Texas Lottery

Commission. All pallets shall be standard pallets (40 inches in width and 48 inches in length).

Pallets shall be stacked no higher than 48 inches (floor to top of pallet). Pallets shall not be

double stacked unless prior written approval is granted by the Texas Lottery. All pallets shall

be front loaded pallets and in good condition. The pallets shall be front loaded in the freight

truck, so that a manual pallet jack may unload the product.

B. Product shall be packed in cases appropriately so that slippage, creep and damage do not occur

during shipping. Product shall be packed in cases that do not exceed a maximum weight of 50

lb. each. If weight exceeds fifty pound maximum per box, the Vendor shall

pg. 4

notify TLC Promotions Department so other packaging options may be considered. Pallets

shall not weigh more than 2,500 lbs. All pallets must be shrink-wrapped so that cases do not

move around during shipping.

C. Vendor shall affix to the front of each case a label with the following information: Texas

Lottery Commission, Texas Lottery Commission product description, quantity per case, Texas

Lottery Commission purchase order number and product number.

D. Vendor shall affix a packing list to the lead case of the shipment for each delivery location.

This packing list will have the following information: Texas Lottery Commission purchase

order number, Texas Lottery Commission product description, quantity of product shipped to

that location and date shipped.

Prior to shipping the merchandise, Vendor shall notify the Promotions Department

([email protected]) of the Texas Lottery Commission by e-

mail as to quantity of items per box, total number of boxes, number of boxes per pallet, total number

of pallets, actual size and weight of one box, and estimated delivery dates for each location.

Delivery:

The Vendor shall provide the product no later than the agreed upon deadline identified in the

Production Timeline section of this work order. Failure to deliver promotional products by the

delivery date specified in the executed work order may result in the assessment of liquidated

damages, per Section X.XX.X of the contract.

TLC will not accept deliveries forty-five (45) days prior to Product Delivery Date, without prior written

approval.

ATTACHMENTS TO THE WORK ORDER

Attachment A – Shipping Locations

Attachment B – TLC Artwork


Agency Representative:

Date:

Amendment No. 9

ATTACHMENT M

PROMOTIONAL PRODUCT

CHANGE ORDER NUMBER:

POST EXECUTED WORK ORDER CHANGES

Product Name and Description:

Quantity:

Color:

Printing / Embroidery:

Artwork Description/PMS Colors:

Packaging: Product to be packaged _____ per box, _____ per pkg., etc.

WORKING PRODUCTION TIMELINE - REVISED

Date Due:

Work Order Signed & Returned:


Product Delivery:

Actual Dates (Internal Use Only):



Product Delivery:

Any date changes to the working production timeline prior to final execution must be noted above by the

vendor and initialed.

* Date due denotes the latest acceptable day for that event. Earlier dates are acceptable.

Per Item Contracted Cost:

Total Product Cost (Per Item Cost x Quantity):

Estimated Shipping Cost (Insert Shipping Cost %):

Estimated Tariffs Cost (Insert Tariffs Cost %):

Total Work Order Cost (Product + Tariffs (if applicable) + Shipping Cost):

ATTACHMENTS TO THE CHANGE ORDER (if applicable)

Attachment:

Attachment:

SECTION 5 - APPROVAL

Vendor Name Texas Lottery Commission



Date Date

PRODUCT COST – REVISED (if applicable)

Exhibit A