®

Procurement Department

Date: January 24, 2017

REQUEST FOR PROPOSAL (RFP)

#SGC-0010-17CS

BID DESCRIPTION:Distributor of Tobacco for Retail Sale

BID DEADLINE:January 31, 2017 by 5pm EST

The Seneca Gaming Corporation Procurement Department is requesting bids for the above mentioned goods/service. All communications regarding this bid should be addressed to:

Seneca Gaming Corporation - Procurement Department

Attn: Charles Saxe

310 Fourth Street

Niagara Falls, NY 14303

RE: # SGC-0010-17CS

Telephone: (716) 501-2161

All questions should be submitted in writing and answers will be distributed to all bidders.

Proposals must be received by the Procurement Department on or before the date stated above by 5:00 pm EST. Proposals received after the deadline will not be considered. SGC recognizes e-mail as a sealed response in relation to this RFP.

I. Scope and Intent

Seneca Gaming Corporation (hereinafter referred to as SGC) is seeking a qualifiedvendor to provide cigarettes and cigars for our resale at our three properties and for a three (3) year contract.

II. Specifications

The enclosed details related to the goods and/or services in this RFP are based upon the operating department’s requirements.

  • SGC is seeking one distributor to provide all our cigarettes and cigars needs on a weekly basis and to deliver weekly to all three SGC casino properties.
  • Vendor must be an existing, qualified and experienced distributor of cigarettes and cigars for Native brands only.
  • Weekly orders to be placed and weekly (designated day) deliveries to be made to EACH of our three properties located in Niagara Falls, NY, Buffalo, NY and Salamanca, NY by the vendor.
  • Vendor must have the capability to have the needed stock on hand in meeting our weekly needs. Back orders not accepted.
  • On the rare occasion, must have the ability to make a rush order delivery.
  • Please complete and submit the attached spreadsheet price list which includes two (2) tabs, one for cigarettes and one for cigars and provide your quote by item which MUST INCLUDE all delivery cost in price. We are requesting that you guarantee your price for the three (3) year contract term, or, your best offer.
  • Vendor must have electronic capabilities to receive orders, submit pricing and invoice.
  • Vendor MUST become licensed with the Seneca Gaming Authority (SGA) and maintain the licensing throughout the entire contract term. In addition, vendor must have a Seneca Nation of Indians (SNI) import-export license.
  • Vendor must have and maintain proper insurance coverage throughout the term of the contract agreement as outlined in Section IV-B.
  • At any time during this RFP process, or, during the contract term, SGC reserves the right to tour your property(s).

III. Schedule of Events:

Request for Proposal issued1/24/17

Request for Proposal due1/31/17 by 5:00PM

IV. Vendor Requirements:

  1. Performance: Bidders must have the necessary experience, knowledge, abilities, skills, and resources to satisfactorily perform the terms, conditions and requirements of the RFP.Subcontracting of services is not permitted without advance, express written consent. Goods/services must be provided by the entity submitting proposal.
  2. Insurance: At all times during the Awarded Vendor(s) performance of any resulting Purchase Order, Agreement or Contract, unless otherwise waived by SGC, the Awarded Vendor shall obtain and keep in force insurance coverage of the types, and with the minimum coverage limits, as determined by SGC's Risk Management Department. All insurance must be provided by a licensed company with a minimum AM Best rating designated by SGC's Risk Management department. Awarded Vendor shall provide SGC with a certificate of insurance before commencing work under any purchase order, agreement or contract and SGC shall be named as an additional insured on Awarded Vendor’s General Liability and Automobile Liability policies, if applicable. SGC’s insurance requirements vary according to the nature of the contract and degree of risk, but normally include general liability, automobile liability, and workers’ compensation coverage. In addition, in appropriate cases, SGC may require professional liability/errors & omissions coverage and/or network security/privacy coverage. Awarded Vendor shall not insure the goods on SGC’s account unless the terms of the agreement or contract so require. For any questions regarding insurance, please contact SGC’s Risk Management Department at . Please reference the Request for Proposal (RFP) number and Bid Description. Failure to maintain requisite insurance will entitle SGC to immediately rescind and/or terminate any resultant business relationship and contract with Awarded Vendor.
  3. Failure to maintain requisite insurance will entitle SGC to immediately rescind and/or terminate any resultant business relationship and contract with Awarded Vendor.
  4. Vendor Registration: Awarded Vendor(s) agrees to submit a completed Vendor Registration Form and designated fees (inclusive of Seneca Nation of Indians Business License) as required by SGC’s regulator, the Seneca Gaming Authority (SGA). It is the Awarded Vendor(s) responsibility to fulfill the requirements, submit information and cooperate with any SGA investigation into its business functions, structures and principals when sales by said Awarded Vendor may reach or exceed Seventy Five Thousand Dollars ($75,000); and to maintain the registration/license through the duration of any purchase order or contract resulting from this RFP. Failure to do so will entitle SGC to immediately rescind and/or terminate any resultant contract or business relationship and may result in the suspension of payments to the Awarded Vendor.

The SGA mayalso, in an appropriate case, require the licensure of individual employees of the Awarded Vendor who perform certain services that are or may be closely associated with SGC’s casino operation. As SGA retains the discretion to make this type of determination on a case-by-case basis, SGC is unable at the RFP point in the bidding process to state definitively whether such licensure will be required in any particular case.

  1. Confidentiality: This document contains information (and Bidders may have access to) confidential information of the SGC and/or its affiliate. Bidders are authorized to use this information solely in connection with the preparation of a response to this RFP and fulfillment of any resulting purchase order or contract award. In submitting response(s) to this RFP, Bidder(s) agree and represent that the Bidder(s) will not directly or indirectly use the Confidential Information beyond the scope of the authority granted by SGC or disseminate, disclose or in any way reveal the Confidential Information or any part thereof, except upon the express written approval of SGC. SGC will keep all documents received from Bidders on a confidential basis, save to the extent disclosure is required to comply with requirements of SGC’s corporate Charter, as regards the approval of SGC’s Audit Committee, Board of Directors and Council of the Seneca Nation of Indians, if applicable.
  2. Disclosure of Potential Conflicts of Interest: If Bidder, or any director, officer, employee or owner of Bidder has a business or personal relationship with a director, officer or employee of the Seneca Gaming Corporation (or its affiliates) that may create a conflict of interest, or appearance of impropriety, for or relating to such director, officer or employee in connection with the entry into, or ongoing performance of, the transaction(s) or service(s) contemplated under this RFP, Bidder must disclose such conflict to the Corporation, in writing, to the extent Bidder has knowledge thereof.
  3. Kickback Covenant: SGC will not tolerate Kickbacks in any form. A “Kickback” shall be defined as any cash, fee, commission, credit, gift, gratuity, thing of value or compensation of any kind in exchange for favorable treatment in obtaining or retaining any purchase order or contract servicing SGC. Bidder agrees that its officers or employees have not and will not provide or attempt to provide, either directly or indirectly, any Kickback to any employees of SGC, the Seneca Nation of Indians (the “Nation”) or their respective officers, directors, employees or agents, nor to any citizens of the Nation.
  4. Conditions: Bidders shall question the conditions under which the goods and/or services will be used by SGC to guarantee the goods and/or services will be of sufficient quality and fit for the purposes of the bid specification. To proceed with the supply of goods and/or services shall mean acceptance of site conditions. Failure to comply with this clause shall in no way serve as the basis of any claims by the Bidder against SGC. No allowances will be made for failure to make proper site investigations or to completely understand the full nature of the requirements involved.
  5. Monetary threshold: At no time will the AwardedVendor’s aggregate fees, billings, requests for reimbursement and/or invoices (collectively, “Billings”) to SGC exceed two million nine hundred ninety-nine thousand nine hundred ninety-nine dollars ($2,999,999) (the “monetary threshold”) unless and until advance written authorization to exceed the monetary threshold is granted by the Council of the Seneca Nation of Indians. SGC will not be liable for Billings which exceed the monetary threshold unless the requisite approval of the Council of the Seneca Nation of Indians has been obtained,Awarded Vendor must notify SGC when aggregate Billings reach the level of two million five hundred thousand dollars ($2,500,000). For this purpose, the term “SGC” includes the Seneca Gaming Corporation and all subsidiaries.
  6. Intellectual Property Indemnification: AwardedVendor, at its own expense, will defend, indemnify and hold SGC harmless in any third party action brought against SGC to the extent that it is based on a claim that all or part of the goods or services supplied by Awarded Vendor and used as directed infringe any third party trademarks, copyrights, patents, or other intellectual property rights.
  7. Standard Service Agreement: AwardedVendor will be expected to sign SGC’s standard services agreement, subject to such changes as are necessary to reflect the terms of this RFP and AwardedVendor’s bid or proposal, and such further changes as the parties, acting reasonably, may agree.
  8. Directives and Minimum internal control standards: Awarded Vendor must comply with SGC’s reasonable directives as regards IT security and other matters. In addition, as contemplated in § 542.16 of NIGC Information Technology MICS, Awarded Vendor must comply with SGC’s internal control standards, including change control procedures and SGC hereby reserves the right to monitor and audit compliance with said internal control procedures, either directly or through an appointed representative such as an external auditor.

V. Bid Information:

  1. This RFP does not commit SGC to award a contract, to pay any costs incurred in the preparation of the RFP, nor to procure or contract for services or supplies.
  2. Alternate Proposals (if applicable) are accepted based on the following conditions: SGC will consider alternative proposals from Bidders provided they have submitted a response based on the original requirements. The alternative Proposal will be submitted separate and apart from the basic Proposal. It is assumed that the materials included in the alternate Proposal meet all of the qualifications of the original Proposal. Biddersmust apply in writing for SGC permission to use substitute materials or methods. In such circumstances, the Bidder must state the return on investment/benefit(s) in increased efficiency, longevity and or monetary value to be derived through use of substitute materials or methods.
  3. Proposal- Awarded Vendors should expect that their response to the RFP and any accompanying supporting materials(collectively, the “Proposal”) will be incorporated into any contract signed with Seneca Resorts and Casinos.
  4. Substitutes Any recommended substitutions should be attached separately. Products may require testing before acceptance. Bidder’s pricing must include the conversion calculations if your size, pack, weight, etc. is not the same as the specified product(s). Without requiring disclosure of confidential information, SGC solicitsBidders’ recommendation(s) for new products and/or services leading to lower costs.
  5. Bidders are advised that the actual items and quantities which may be required are subject to change based on the needs of the SGC departments or business units for which the goods and/services are destined.
  6. Tax Exempt Status: Seneca Gaming Corporationis a governmental instrumentality of the Seneca Nation of Indians and will provide a New York State tax exemption certificate issued in the name of the Seneca Nation of Indians, as applicable.
  7. Minority Bidders: SGC encourages Bidders to solicit Native American, minority or women-owned businesses and small disadvantaged businesses as potential product suppliers.If your company falls into any of these categories, please note as such on your proposal.
  8. Payment Terms: Please provide your most competitive pricing and any additional offers. SGC will compensate Awarded Vendors based on submitted invoices according to payment and cycle dates mutually agreed upon and stated in the contract. SGC standard payment terms are FOB destination, Net 45 days after delivery of goods and/or services and receipt of a correct invoice. Bidder is encouraged to indicate any additional early payment/ discount terms in its Proposal. It is the policy of SGC not to provide deposits unless significant discounts or special circumstances apply.
  9. Pricing:
  1. SGC Standard Terms and Conditions: Any purchase order or contract flowing from this RFP is subject to the terms and conditions hereof as well as to SGC Terms and Conditions which are available on the following website: Reference to, or inclusion of, the Bidder’s preprinted terms and conditions with Bidder’s Proposal will not be considered as exception to SGCTerms and Conditions.
  2. Audit/Performance Review: SGC must be permitted to conduct financial or inventory audit(s) with any or all of its Procurement, Financial and/or Internal Audit resources (or using a third party accounting/auditing firm )during or after the term of the contract with Awarded Vendor. Contract auditsmay also be performed periodically to evaluate performance against pre-determined metrics and focus on what can be improved.
  3. Include if interruption in their business would be critical to SGC. Business Continuity: For RFP’s involving strategic commodities/services, provide an overview of your disaster recovery/business continuity plan (the “Plan”). The Plan indicates how Bidder minimizesthe risk of interruption to Bidder’s ability to provide the goods and/or services contemplated in this RFP in the event of specified occurrence ; Bidder’s critical supplier strategy to ensure continuity of suppliers in such event; and Bidders process or criteria for prioritizing customer demands during a crisis.
  4. It is the policy of SGC that all Proposals are to be held unopened and confidential until after the closing date and time. At the bid opening,Proposals will be opened by the RFP contact and are reviewed by a compliance representative.
  5. SGC reserves the right to assess damages for the non-delivery of goods/services.
  6. SGC reserves the right to terminate or rescind any agreement, contract or purchase order if, in its opinion, there is a failure by the Awarded Vendor (s), at any time, to perform/supply adequately the stipulations of the Scope of Work, as stipulated in this RFP, the contract or purchase order, or if the goods or services supplied by the Awarded Vendor are, in the opinion of SGC of unacceptable quality.
  7. No Management Contract. Vendor understands and agrees that any contract awarded as a result of this RFP will not provide to Awarded Vendor any management authority over SGC’s gaming authorizations that would require review and approval by the National Indian Gaming Commission (“NIGC”). To the extent the NIGC or SGC’s regulatory authority, the Seneca Gaming Authority, determines that such contract does constitute a management contract requiring such review and approval, Awarded Vendor will cooperate with SGC in reviewing and modifying the contract to the extent necessary to eliminate such a characterization. Specifically, Awarded Vendor is prohibited from engaging in: (1) operating or managing any gaming activity; (2) hiring, terminating, or determining wages and benefits of any gaming facility employee; (3) establishing gaming facility policies and procedures; (4) instructing, directing, or supervising gaming facility employees; (5) binding SGC or its owner, the Seneca Nation of Indians, or acting as agent for the Company or the Seneca Nation of Indians; (6) planning, organizing, directing, coordinating or controlling any part of SGC’s gaming operations; (7) managing SGC’s gaming facilities or undertaking any action that could reasonably be construed as managing or operating SGC’s gaming Facilities; and (8) otherwise violating the purpose and intent of this clause.
  8. Bid Validity: Bidder’s bid submission shall remain valid a minimum of ninety (90) days from the bid closing date.

VI. Proposal Evaluation/Vendor Selection:

  1. Proposals will be evaluated to determine their completeness and compliance with the mandatory requirements and qualifications specified throughout this document. Failure to comply with one or more of these requirements may result in the proposal being judged non-responsive. SGC reserves the right to waive deviations it deems non-material and/or to reject any and all Proposals in its sole discretion.
  2. It is SGC’s intent to identify those providers: deemed best qualified based on experience and capabilities; that have demonstrated the ability to conform to the requirements defined herein; that can assist SGC in reaching ultimate patron and team member satisfaction; and that have the best quality product/service for the most competitive pricing. When applicable,a weighted evaluation table with different percentages for each factor will be used. Proposals will be evaluated using a scorecard on the following factors including, but not limited to: adherence to the scope of work, price, service, terms, quality, technology, incentives, history, completeness and overall responsiveness to this RFP.
  3. Those Bidders whose Proposals are judged most suitable will be considered high-ranking contenders for contract award and may be asked for additional information to verify financial stability, emergency response/business continuity plans, and other pertinent questions to validate the viability of the business relationship. Bidders at this point, may also be asked to interview with (or present to) the SGC commodity team or management dependent on goods/services.
  4. A final Bidder (occasionally Bidders) will be selected and will have the opportunity to discuss provisions of their Proposal with SGC. Should negotiations fail, SGC will return to the finalist list and initiate negotiations with one or more alternate Bidders.

VII. Bid Submittal Checklist: