Multi-State Lottery Association

ITB Powerball Television Show Studio and Production

Issued: September 16, 2014 - Proposals Due: October 20, 2014

INVITATION TO BID
POWERBALL DRAWING TELEVISION STUDIO and PRODUCTION

Issued September 16, 2014

The Multi-State Lottery Association (MUSL) is seeking a qualified Bidder or Bidders to provide a Television Studio and Production Services for the Powerball Drawings.

MUSL will accept joint bids from two or more bidding partners with combined or separated cost proposals. Joint bids must include Letters of Intent, Bidder Certifications and Covenants Not to Sue signed by each bidding partner.

Interested Biddersmay submit proposals by mail, carrier, or in person on or before October 20, 2014to:

Wayne Dolezal

Director of Business & Legal Affairs

MULTI-STATE LOTTERY ASSOCIATION

4400 NW Urbandale Drive

Urbandale, Iowa 50322-7919

Telephone: 515-453-1412

Fax: 515-453-1420

Contents

Section 1 – General and Legal Informationand Requirements...... 3

Section 2 –Goalsand Substantive Requirements of the ITB...... 8

Section 3– Expected Proposal Details...... 15

Section 4 – Bidder Details...... 16

Section 5 – Cost and Fee Details...... 17

Appendix A – Bidder Certification...... 18

Appendix B – Covenant not to sue...... 19

SECTION 1

GENERALAND LEGAL

INFORMATIONand REQUIREMENTS

1.1About MUSL

The Multi-State Lottery Association (MUSL), is a non-profit association owned and operated by 36U.S. lotteries (including the District of Columbia and the U.S. Virgin Islands) selling such games as Powerball, and having contractual agreements with the remaining existing 10 U.S. lotteries that sell Powerball and other lottery games. As used in this Invitation to Bid (ITB)“Member Lotteries” are lottery members of MUSL and “Contracted Lotteries” are those lotteries which are not Member Lotteries but which contract with MUSL to participate in the Powerball game. All Member and Contracted Lotteries participating in the Powerball lottery game shall be referred to as “Participating Lotteries”.

1.2Obligations and Responsibilities; Costs of Proposal

THE ISSUANCE OF THIS DOCUMENT CREATES NO OBLIGATIONS OR RESPONSIBILITIES WHATSOEVER FOR MUSL OR ANY LOTTERY. Obligations and responsibilities will be determined only after executed written agreements. This document and the issuance of this document do not obligate MUSL or any Lottery to enter into an agreement. Bidders to this document are wholly responsible for all costs in submitting a proposalto this document. Bidders shall hold MUSL and its Participating Lotteries harmless for any failure, negligent or otherwise, to provide the Bidder with pertinent information as intended by this ITB.

1.3Advisory of Confidentiality, Proprietary, Trade Secret, Etc.

Bidder shall clearly and specifically indicate each page or section that the Bidder considers confidential, proprietary, or a trade secret. The release of such confidentiality, proprietary, or trade secret information shall be determined by federal and the various state and jurisdictional laws of each lottery viewing the materials. No enhanced obligations are created by this ITB. A statement that an entire proposal is confidential, proprietary or a trade secret will not be accepted.

1.4Ownership of Materials; Intellectual Property; Indemnification

MUSL shall own all tangible materials submitted in response to this ITB. MUSL reserves the right to use any and all information in any response to draft a future ITB, if any. The Bidder will retain ownership, to the extent that such ownership exists under U.S. laws, of its intellectual property associated with the Bidder’s presentation of its products and services.

Bidders must provide in their proposal citations for patents, copyrights and trademarks offered in the Proposal. Bidder shall indemnify and hold harmless MUSL and its Participating Lotteries, their jurisdictions, departments, divisions, agencies, sections, commissions, members, agents, officers, officials and employees(the “Indemnified Parties”) against all claims related to the products and services to be provided as specified in the Proposal.

1.5Contact, Questions, Modifications of ITB

The Bidders are requested to limit questions and contacts to email or other written communications. All questions and all responses from MUSL will be provided in writing to all Bidders expressing an interest in this ITB. Email questions are preferred. MUSL may modify this ITB through a Response to Questions document, but ONLY when it is expressly stated that the ITB is being modified. All Bidders who receive copies of the ITB from MUSL and who have a continuing interest will receive copies of the written questions received and the written answers provided by MUSL without identifying the source of the questions. The questions and answers will not modify the ITB unless MUSL specifically states that a modification is being made.

MUSL reserves the right to contact Bidders after the submission of proposals for the purpose of clarifying information or representations made in a proposal to ensure mutual understanding and to request clarification of the information or representations in a proposal before completing the initial evaluation.

Initial Questions are due on or beforeSeptember 29, 2014.

All written questions and other inquiries regarding this ITB shall be directed to:

Wayne Dolezal

Director of Business & Legal Affairs

MULTI-STATE LOTTERY ASSOCIATION

Telephone: 515-453-1412

Email:

1.6Live Presentation

Proposalswill be reviewed and evaluated by an Evaluation Committee to determinewhetherthe Bidderhas agreed to and can comply with the key requirements in this ITB. The Evaluation Committee may determine which Bidders, if any, will be invited to make an oral presentation of their proposals to them at a time and a site to be determined. The oral presentation should be made by individuals who will work on the account if the Bidder is awarded the contract.

The purpose of the presentation will be to assist in learning about the proposals and to permit the Evaluation Committee to ask questions of the bidders.

All Bidder costs, including but not limited to travel, lodging, meals, materials, etc., related to the presentations are the responsibility of the Bidder. No presentation fees will be paid by MUSL or the Lotteries.

1.7Evaluation of Proposals

MUSL may not award any contractsas a result of this ITB. If a contract is awarded, MUSL will award the contract to the Bidder which submits the best overall proposal in MUSL’s sole discretion. The Evaluation process shall be as determined by MUSL.

Factors to be considered by the Evaluation Committee include the following (order below may not be indicative of actual weights given):

oInnovativeness of concept;

oPractical applicability of concept;

oBidder capabilities;

oBidder experience;

oPersonnel;

oPlans and timelines; and

oPrice.

1.8Awards, Rejections, Cancellation, Waiver for Non-Compliance

MUSL reserves the right to reject any or all questions, proposals, replies, and responses to this ITB. MUSL reserves the right to waive any minor irregularity by a bidder in the best interests of MUSL for the purpose of continuing the process or of awarding a contract. MUSL reserves the right to cancel this ITB at any time.

1.9Negotiation

MUSL reserves the right to negotiate for changed terms submitted in a Proposal, including modifications to proposed deliverables and Biddercompensation.

1.10Contract Terms

Terms of an eventual contract are to be negotiated, but anticipated contract terms covering insurance, bonding and intellectual property requirements are available upon request.

1.11Background Checks

Bidder and all control persons of Bidder and independent contractors must submit to and must pass a background check to provide product and services to MUSL and the lotteries. Contracts cannot be awarded to persons found guilty of a felony, a misdemeanor involving moral turpitude or any gambling law violation. Bidder shall be responsible for the costs of any background checks.

1.12Sources of Information used in Addition to the Proposals

MUSL reserves the right to contact individual Bidders after the submission of information for the purpose of clarifying a proposalto ensure mutual understanding; such clarification shall be done in writing (including email) or confirmed in writing (including email). A biddermay not modify or amend their proposals if contacted by MUSL for this reason.

MUSL reserves the right to obtain, from any and all sources, information concerning a Bidder or a Bidder’s product which MUSL deems pertinent to this ITB and to consider such information in evaluating the Bidder’s proposal. Any information obtained may be used in evaluating the proposals. Information obtained from outside sources that has a significant impact on the evaluation of theBidder’s Proposal may be reviewed with the Bidder for accuracy if that is deemed necessary by MUSL.

1.13Proposals Valid for 365 Days

Proposals must be valid for 365 days after the final submission date.

1.14Submission of Proposal

Bidders must submit the proposals via email, download link, or by delivery of an electronic memory device. Electronic submissions must be readable using Microsoft Windows and Office standard programs (Word, Excel, PowerPoint, Publisher), as a PDF file, or as a standard media file (JPG, GIF, PNG, WMV, MP4, MPG, MOV, MP3). Bidders may also submit one printed proposal by verified delivery, though not required, to assure timely deliver. Bidders may also submit one copy of printed or constructed material as may be necessary to demonstrate their proposal.

Each proposal must also be accompanied by a signed copy of: (1)APPENDIX A - Bidder’sCertification, certifying authority for the Bidder and acknowledging an understanding the terms of the ITB, and (2)APPENDIX B - Covenant Not to Sue.

Your complete response to this ITBmust be received by MUSLon or beforeOctober 20, 2014.

Proposals will be opened in the presence of at least two MUSL executives but will not be opened in public so that confidential material may be ascertained.

1.15Dates Relevant to this ITB

All dates are subject to change by MUSL.

September 16, 2014ITBavailable to potential Bidders

September 29, 2014Bidders’ initial questions are due

October 1, 2014MUSL responses to Bidder’s questions due

October 6, 2014Bidders’ follow-up questions due

October 8, 2014MUSL second responses due

October 20, 2014Proposals due

October 20,2014Proposal opening; Evaluation Comm.Review Begins

October 27, 2014Invitation for Presentation by finalist bidders

November 3-7, 2014Bidder Presentations (if required)

November 12, 2014Evaluation Committee recommendation

November 14, 2014Contractor Selection by Powerball Group

November 14, 2014Contract Negotiations Begin

January 3, 2015 First Powerball Drawing under the Awarded Contract

SECTION 2

GOALSAND SUBSTANTIVE REQUIREMENTS OF THE ITB

2.1Goals

2.1.1MUSL is inviting interested parties to submit proposals for studio and production of the Powerball lottery game drawings. The Powerball drawings occur bi-weekly at 10:59pm ET on Wednesday and Saturday evenings. All costs for providing and updating the Powerball lottery game studio and production services must be included within the proposed cost (see Section 5).

The anticipated contract term will be one (1) year with four (4) one-year renewals at MUSL’s option.

2.1.2GENERAL NEEDS

The selected bidder shall produce MUSL’s live High Definition, widescreen POWERBALL drawing shows and shall provide the necessary facilities, equipment, personnel, technical expertise and creative advice necessary for that purpose, all under the direction and control of MUSL.

Unless it is specifically excluded in this document, the production facility will be expected to provide all materials, labor, technical expertise, equipment and communications services necessary to produce the show and uplink it live to satellite.

2.2PRODUCTION

MUSL reserves the right to change the below described drawing description, procedures or format at any time.

2.2.1The Selected Bidder shall provide production facilities including a drawing studio for the Multi-State Lottery Association drawings which are held on Wednesday and Saturday nights at 10:59 p.m. Eastern Time.

2.2.2Every Wednesday and Saturday beginning at 9:15 p.m. Eastern Time, MUSL representatives will arrive at the studio, remove the drawing equipment from a secure vault, set up the drawing equipment on the set, perform tests and rehearsals and conduct a live drawing at 10:59 p.m. Eastern Time. The drawing shall be 56 seconds in duration.

2.2.3The Selected Bidder will provide a production team consisting of all personnel required for a live broadcast and uplink of the Powerball draw show.

2.2.4The Selected Bidder shall provide the facilities, equipment, and production staff necessary and capable of producing a live television show of superior quality. The show now requires three HD cameras and instant on screen character generation as the numbers are drawn. The Selected Bidder is an independent contractor; however, MUSL reserves the right to reject any of Selected Bidder's personnel if MUSL determines that such person's job skills or criminal history does not meet MUSL standards.

2.2.5The Selected Bidders shall provide a redundant uplink path,one feed for HD and another feed for a standard analog signal, that may be required for some of our TV stations throughout the nation.

2.2.6The drawing show must be broadcast three times, live at 10:59 pm. Eastern with immediate re-feeds at 11:00 and 11:01 p.m. Eastern Time.

2.2.7MUSL representatives will perform tests on the drawing equipment before securing it into the studio vault and will leave the studio at approximately 11:15 p.m. Eastern Time. The selected production facility shall keep the studio and personnel available for production past 11:15 p.m. if necessary due to technical problems. This has occurred no more than five times in the past 350 draws.

2.2.8The drawing show will include animation, music and graphics as required by MUSLincluding the display of numbers drawn entered by a Selected Bidder employee. Animation and music shall be provided by MUSL.

2.2.9The Selected Bidder shall provide facilities and necessary equipment (such as tables, chairs and lighting) for four MUSL staff persons who will be performing work on the studio set from approximately 9:30 p.m. Eastern Time until 11:15 p.m. Eastern Time on Wednesdays and Saturdays. The Selected Bidder must provide three (3) high speed Internet connections (2 lines minimum 50MB download and 10MB upload; 1 line minimum 10MB download and 5MB upload), preferably from a minimum of two (2) separate vendors. Selected Bidder shall arrange and pay for the installation of the internet connectionsand the Selected Bidder shall pay for the internet service.

2.2.10MUSL will also need to have access to the facility on a periodic basis for machine maintenance or other draw related issues.

2.2.11The Selected Bidder shall provide the Host’s wardrobe,and a dressing and makeup area for the show's host. The Selected Bidder shall provide a capable makeup person as a part of their technical staff.

2.2.12Selected Bidder will provide on-going assistance and creative advice throughout the term for the design and content of the Show, including host interaction with the draw machines and cameras, edits and shot suggestion.

2.2.13The Selected Bidder shall provide assistance in providing access to news media and the public, as necessary. To date, such access has been on an occasional basis.

2.2.14The Selected Bidder shall provide a studio facility which can be secured during the live broadcast.

2.2.15The Selected Biddershall maintain a copy of each Powerball® drawing Show produced and upload a high quality copy of each Show to drawing officials designated by MUSL in agreed upon common formats after each draw to an SFTP location provided by the MUSL, From time to time, MUSL may request additional copies of the Show in other formats, which Selected Bidder will provide if the format’s production is within Selected Bidder’ technical ability to provide.

2.2.16The Selected Bidder shall provide all post production, including editing, if required.

2.2.17MUSL shall have complete and total approval authority of all or any part of the broadcast, production and transmission plans and shall have the expressed right to modify, change, or delete all or any part of the plans.

2.2.18MUSL retains full ownership of all rights associated with the drawing. All material produced under the contract shall be the sole property of MUSL. Work performed and services provided by the Selected Bidder shall be deemed to be "work for hire" and MUSL shall have the right to reproduce or use any products derived from the Selected Bidder's work under the contract without payment of any royalties, fees, etc.

2.2.19The selected Bidder shall produce, as a part of the cost of this Contract, a minimum of three (3) pre-recorded “drawing postponed” videos per year with the host. This recording is run during scheduled draw airing time when technical difficulties require postponement.

2.2.20MUSL shall provide a minimum of eight (8) security cameras, and Selected Bidder shall assist MUSL in the installation of security cameras and audio equipment in the studio and the vault areas at the direction of the MUSL. This is done for the purpose of visual and audio communication between staff at the studio and at the central office. The Selected Bidder shall provide the telecommunications service (as referenced in 2.2.7) necessary for live transmission from the security cameras and audio equipment to MUSL’s headquarters in Urbandale Iowa and additional lottery headquarters as directed by MUSL.

2.2.21From time to time during the Term, MUSL may conduct drawings off-site on non-bidder property. All costs associated with such remote drawings shall be paid for by MUSL. The Successful bidder will be required to provide production personnel at the remote drawing location as required by the MUSL; costs for such personnel including reasonable travel expenses will be paid for by the MUSL.

Notwithstanding the foregoing, Selected Bidder shall be prepared to conduct the drawings from the normal studio facilities during times of remote drawings off-site and shall also incorporate standard graphic and transmission elements into remote drawing uplinks at no additional charge to the MUSL. Selected Bidder shall not be required to provide a remote truck and camerawork for remote drawings except as separately agreed to and for a fee to be mutually determined at that time.

2.2.22All Powerball drawings are 56 seconds in length. The Selected Bidder is responsible for compression and transmission of all drawings. A pre-production, production and post-production time of approximately two-and-one-half hours is typical for each drawing to accommodate set-up, rehearsals, production, compression and transmission of each drawing. However, Bidder staff will be expected to stay until released by the Lottery’s Draw Manager.

2.2.23The Selected Bidder shall provide a Video Engineer, who must be certified in broadcast repair, for emergency repairs and regularly scheduled monthly maintenance throughout the term of the Contract, including any renewals.