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Pennsylvania solicits best, final offer for lottery terminal services

In January, Wolf announced that the department had selected GTECH Corp., based in Providence, R.I., to enter into contract negotiations to provide the terminal-based lottery game services. The department immediately began negotiations on a five-year contract, with up to five, one-year extensions.

Recently, GTECH advised the department of a change in the equipment presented in its proposal. The department has suspended its contract negotiations with GTECH to supply terminal-based game services to the Pennsylvania Lottery.

"Because of the proposed equipment change, the department determined that it was in the best interest of the commonwealth and fair to the participants in the procurement process to solicit best and final offers from the companies that submitted proposals," said Wolf. "As with all procurements, we want to ensure that the commonwealth is getting the best service, at the best competitive price."

Wolf said a committee comprised of employees from the Department of Revenue, including the Lottery, began evaluating vendor proposals in July 2007. The committee evaluated the proposals based on experience in the lottery industry, innovation, minority participation, technical expertise and cost. The committee will review the best and final offers received from the vendors.

The PA Lottery seeks a vendor to provide the following services:

-- Replacing the communications network and terminals at all Lottery retail locations with state-of-the-art equipment;

-- Training retailers to use the new equipment; installing and maintaining the new system and terminals; managing the retailer call center and other retailer-support services; and

-- Supporting new game development and other marketing initiatives.

Scientific Games International Inc., based in Alpharetta, Ga., currently provides terminal-based lottery services to the Pennsylvania Lottery, but that contract will expire on Dec. 31.

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