REQUEST FOR PROPOSALS FOR

ELECTRONIC DATA PROCESSING AUDIT SERVICES

FOR THE NEBRASKA LOTTERY

SECTION 1: TERMS AND CONDITIONS

1.1 PURPOSE .......................................................................................................................... 1

1.2 DEFINITIONS ................................................................................................................... 2

1.3 BACKGROUND OF THE NEBRASKA LOTTERY ......................................................... 3

1.4 CONTACT PERSON AND ISSUING OFFICE ............................................................... 3

1.5 DATES RELEVANT TO AWARD..................................................................................... 4

1.6 ADDITIONAL INQUIRIES ............................................................................................... 4

SECTION 2: REQUIRED SERVICES

2.1 PURPOSE........................................................................................................................... 6

2.2 STATEMENT OF UNDERSTANDING / METHOD FOR PROVIDING SERVICES ...... 6

2.3 CONTRACTOR’S RESPONSIBILITIES .......................................................................... 6

2.4 ADMINISTRATIVE REQUIREMENTS ............................................................................ 6

2.5 DESCRIPTION OF THE OPERATING ENVIRONMENT .............................................. 7

2.6 SCOPE OF THE WORK TO BE PERFORMED ............................................................... 9

2.7 PROGRESS REPORTS..................................................................................................... 10

2.8 DELIVERABLES .............................................................................................................. 10

2.9 EXPERIENCE ................................................................................................................... 11

2.10 REFERENCES .................................................................................................................. 14

2.11 EXECUTIVE SUMMARY ................................................................................................ 14

SECTION 3: COMPENSATION

3.1 COMPENSATION PROPOSAL ...................................................................................... 16

3.2 INVOICING ..................................................................................................................... 16

SECTION 4: GENERAL PROVISIONS

4.1 CONTRACTOR/NEBRASKA LOTTERY RELATIONSHIP........................................... 17

4.2 GOVERNING LAW.......................................................................................................... 17

4.3 LOTTERY OBLIGATIONS .............................................................................................. 17

4.4 CONTRACTOR OBLIGATIONS .................................................................................... 18

4.5 REQUEST PROCEDURES ............................................................................................... 18

4.6 FINANCIAL SOUNDNESS............................................................................................. 20

4.7 DRUG FREE WORK PLACE POLICY............................................................................ 21

4.8 TRANSMITTAL LETTER ................................................................................................ 21

4.9 PROPOSAL CERTIFICATION........................................................................................ 22

4.10 COST PROPOSAL............................................................................................................ 22

4.11 COVENANT NOT TO SUE.............................................................................................. 22

4.12 NON-EXCLUSIVE RIGHTS ............................................................................................ 23

4.13 PROPERTY OF THE NEBRASKA LOTTERY................................................................. 23

4.14 SUBMISSION OF PROPOSAL ....................................................................................... 23

4.15 RIGHT TO ALTER, MODIFY OR AMEND THE RFP .................................................... 24

4.16 PERFORMANCE BOND.................................................................................................. 24

4.17 INSURANCE .................................................................................................................... 24

4.18 SUBMISSION OF DISCLOSURE DOCUMENTS.......................................................... 25

4.19 PROPOSALS SUBJECT TO OPEN RECORDS............................................................... 26

4.20 OPENING OF PROPOSALS ........................................................................................... 26

4.21 SELECTION FACTORS FOR THE AWARD................................................................... 26

4.22 EVALUATION COMMITTEE.......................................................................................... 28

4.23 EVALUATION PROCEDURE.......................................................................................... 28

4.24 CONTENT OF THE RFP ................................................................................................. 29

4.25 COST TO THE VENDOR ................................................................................................ 30

4.26 PROPOSALS VALID FOR 90 DAYS............................................................................... 30

4.27 WAIVER OF DEFICIENCIES AND REJECTION OF NON-COMPLIANCE................ 30

4.28 DISCRETIONARY REJECTION OF PROPOSAL........................................................... 30

4.29 CONTRACT PROVISIONS............................................................................................. 30

4.30 MINORITY AND FEMALE PARTICIPATION............................................................... 36

4.31 PROTEST PROCEDURE.................................................................................................. 37

4.32 CONTRACT CANCELLATION ...................................................................................... 37

4.33 NEWS RELEASE / DISCLOSURE PROHIBITION ........................................................ 39

4.34 HIRING PROHIBITION ................................................................................................... 39

4.35 MAINTAIN LOCAL OFFICE ......................................................................................... 39

APPENDIX "A" NEBRASKA LOTTERY PROPOSAL CERTIFICATION

APPENDIX "B" DRUG-FREE WORKPLACE POLICY

APPENDIX "C" COVENANT NOT TO SUE

APPENDIX "D" NON-DISCLOSURE AGREEMENT

NEBRASKA LOTTERY

REQUEST FOR PROPOSALS FOR

ELECTRONIC DATA PROCESSING AUDIT SERVICES

Section 1 outlines the RFP purpose, definitions, background, contact person, relevant dates, and discusses additional inquiries. Section 2 outlines the technical requirements of this RFP. Section 3 outlines the Compensation Proposal required. Section 4 outlines the RFP process and the general objectives, assumptions, expectations and requirements of the Nebraska Lottery and the Nebraska Department of Revenue.

SECTION 1: TERMS AND CONDITIONS

1.1 PURPOSE

1.1.1 The purpose for issuing this Request for Proposals (RFP) is to secure competitive bids from qualified Vendor(s) to provide the Nebraska Lottery with a comprehensive study and evaluation of all aspects of the Nebraska Lottery's electronic data processing system. This will include a study of the Nebraska Lottery's Internal Control Systems software and a study and evaluation of the electronic data processing systems and procedures of the Nebraska Lottery's Vendors, GTECH Corporation and INTRALOT USA that directly impact the Nebraska Lottery. The goal of these services is to help ensure the security and integrity of the operation of the Nebraska Lottery. This RFP will define the minimum electronic data processing aspects which must be addressed in the vendor's proposal.

1.1.2 Any contract awarded as a result of this request will commence on or soon after

May 1, 2006, and continue until the required services outlined in this RFP and the Contractor’s proposal have been completed by June 23, 2006.

1.1.3 The integrity of the Nebraska Lottery is essential. The Nebraska Lottery must maintain control over all of its functions and activities to ensure that they are performed to provide the greatest long-term benefit to the state of Nebraska, the greatest integrity to the Nebraska Lottery, and in a manner consistent with the dignity of the State of Nebraska. Contractors must perform their activities in such a way as to maintain the public's trust and confidence in the Nebraska Lottery and its operation. This RFP outlines the services that must be provided by Vendor(s) that are committed to maintaining the integrity and success of the Nebraska Lottery.

1.1.4 Prospective Vendor(s) are expected to provide the Nebraska Lottery with information and evidence which will make possible the evaluation of the information in expectation of awarding a contract in a manner which best serves the interests of the Nebraska Lottery. The Nebraska Lottery reserves the right to use any and all ideas presented in reply to this RFP.

1.1.5 The Nebraska Lottery reserves the right to award a contract based solely on what it considers to be the best response to the RFP, if a contract award appears to be in the Nebraska Lottery's best interests.

1.1.6 Nebraska Lottery encourages the greatest flexibility, creativity and participation in the response process by allowing Vendor(s) to propose their own electronic data processing audit plan.

1.1.7 Qualified Vendor(s) meeting the requirements and specifications contained in this RFP shall take into consideration all associated costs for the completion of the electronic data processing audit. Any additional cost incurred by the Contractor will not be the responsibility of the Nebraska Lottery.

1.1.8 The overall objective of this effort is to provide the Nebraska Lottery with an assessment of the electronic data processing system in place and how it impacts the integrity, security and fairness of Nebraska Lottery products, operations and gaming services. The ultimate objective of the Nebraska Lottery is to maintain the security and integrity of the lottery’s operations, and to maintain the public's trust and confidence in the Nebraska Lottery and its operation.

1.2 DEFINITIONS

For purposes of this Request for Proposals (RFP), the following terms shall be defined as described below:

1.2.1 Act shall mean the State Lottery Act, Neb. Rev. Stat. §9-801 et seq;

1.2.2 Contractor shall mean a Vendor who has been awarded a contract by the Nebraska Lottery as a result of a proposal submitted pursuant to this RFP, and shall also include the Contractor's agents and employees, any subcontractor and its employees or agents;

1.2.3 Department shall mean the Nebraska Department of Revenue;

1.2.4 Director shall mean the Director of the Nebraska Lottery;

1.2.5 GTECH shall mean GTECH Corporation;

1.2.6 Investigation Division shall mean the Investigative Services Division of the Nebraska Department of Revenue.

1.2.7 MUSL shall mean the Multi-State Lottery Association;

1.2.8 Nebraska Lottery shall mean the Lottery Division of the Department of Revenue, the Director and all employees of the Lottery Division, and employees of the Department assisting the Lottery Division in performing its obligations;

1.2.9 INTRALOT shall mean INTRALOT USA;

1.2.10 Vendor shall mean any person or entity that has submitted a proposal to the Nebraska Lottery pursuant to this RFP.

1.3 BACKGROUND OF THE NEBRASKA LOTTERY

The Nebraska Lottery started selling scratch games on September 11, 1993. On July 21, 1994, the Nebraska Lottery commenced on-line game sales. The Nebraska Lottery has over 1,250 retail stores which are contracted to market Nebraska Lottery scratch games, of which approximately 1,100 also sell on-line games. To date, the Nebraska Lottery has sold in excess of $900 million in lottery tickets and raised approximately $236 million to benefit the five designated funds.

The Nebraska Lottery’s instant-win (scratch) ticket vendor is GTECH and the on-line (lotto) ticket vendor is INTRALOT. On-line games include NEBRASKA PICK 5®, NEBRASKA PICK 3®, POWERBALL® and 2BY2®. POWERBALL® and 2BY2® are offered in conjunction with MUSL; NEBRASKA PICK 5® and NEBRASKA PICK 3® are offered only by the Nebraska Lottery.

The Nebraska Lottery's headquarters are located in the Department of Revenue within the State Office Building in Lincoln, Nebraska. The Nebraska Lottery has claim centers in Grand Island, Omaha, Norfolk, North Platte, and Scottsbluff and at Lottery headquarters in Lincoln.

An Electronic Data Processing Audit was previously conducted in the spring of 2000. The Nebraska Lottery utilizes the hardware and software identified in section 2 of this RFP. The internal audit function continues to conduct acceptance testing of the various gaming software. There are no anticipated major system changes between the date of issuance of this RFP and the scheduled date of the EDP audit.

1.4 CONTACT PERSON AND ISSUING OFFICE

1.4.1 This RFP is issued by the Nebraska Lottery.

1.4.2 The Nebraska Lottery is the sole point of contact with regard to all procurement and contractual matters relating to the services described in this RFP. The Nebraska Lottery is the only office authorized to clarify, modify, amend, alter or withdraw the specifications, terms and conditions of this RFP and any contract awarded as a result of this RFP. The Nebraska Lottery welcomes communications with all interested vendors and will assist prospective vendors in interpreting RFP specifications. All communications regarding this procurement must be addressed in writing to:

Dennis J. Nelson

301 Centennial Mall South

P.O. Box 98901

Lincoln, NE 68509-8901

(402) 471-6106

Fax (402) 471-6108

Requested information and answers to questions will be provided in writing to all vendors.

1.4.3 If a Vendor discovers any ambiguity, conflict, discrepancy, exclusionary specifications, omission or other error in this RFP, it shall immediately notify in writing the point of contact as indicated in section 1.4.2. If a Vendor fails to notify the point of contact of any known error, ambiguity, conflict, discrepancy, exclusionary specification or omission, the Vendor shall submit a response at its own risk and, if awarded a contract, the Contractor shall not be entitled to additional compensation, relief or time by reason of the error or its later correction.

1.5 DATES RELEVANT TO AWARD

The time schedule for the awarding and execution of a contract under this RFP is shown below. The Nebraska Lottery reserves the right to amend the schedule. If changes are made, all known potential Vendor(s) will be notified.

RFP Issued: January 10, 2006

Deadline for Written Questions: 4:00 P.M. C.T., February 10, 2006

Nebraska Lottery's Response to Questions Mailed or Faxed: February 17, 2006

Proposal Due: 10:00 A.M. C.T., March 3, 2006

Proposal Opening (not public): 1:30 P.M. C.T., March 3, 2006

Nebraska Lottery Evaluation Committee to Make Recommendations no later than: March 17, 2006

Selection of Contractor no later than: March 24, 2006

Contract Negotiations Begin no later than: March 24, 2006

Proposals Open to Public no later than: 9:00 A.M. C.T., March 27, 2006

Deadline to Sign Contract: April 27, 2006

Electronic Data Processing Audit commences no later than: May 1, 2006

Final Audit Report Delivered no later than: June 23, 2006

1.6 ADDITIONAL INQUIRIES

1.6.1 Written inquiries concerning this RFP must be received by the Nebraska Lottery prior to 4:00 p.m. C.T., February 10, 2006. All inquiries and answers will be included in the Department’s February 17, 2006 response. Questions may also be submitted by fax. Written inquiries received after 4:00 p.m., C.T., on February 10, 2006 will be considered late questions and will not be responded to. Written inquiries must be addressed to Dennis J. Nelson, Nebraska Lottery, 301 Centennial Mall South, P.O. Box 98901, Lincoln, NE 68509‑8901, FAX (402) 471-6108. Written inquiries received and answers which the Nebraska Lottery chooses to provide will be provided to all known prospective Vendor(s). Answers will be mailed or faxed by February 17, 2006. The specific Vendor(s) making the inquiries will not be identified. The Nebraska Lottery will be bound only by the written responses to questions concerning this RFP. At the Vendor's written request and expense, answers to questions may be sent by a service such as Federal Express.

1.6.2 This inquiry procedure provides the only means by which a Vendor may request information on the business, contractual, procedural and technical requirements of this procurement.

1.6.3 Vendor(s) are cautioned that an inquiry must be written in generic terms and must not contain cost data. The inclusion of cost data information in an inquiry may, at the discretion of the Lottery, result in the Vendor's disqualification.

1.6.4 Vendor(s) are to make no unsolicited contact with any Nebraska Lottery personnel or agency contractor regarding this RFP except with the designated contact person, Dennis J. Nelson, regarding the bidding process and through the conclusion of the evaluation period. Extraordinary requests for exceptions to this prohibition against contact with Nebraska Lottery personnel may be directed to the contact person identified in section 1.6.1 above. Failure to observe this restriction may, at the discretion of the Lottery, result in disqualification of the Vendor's proposal. This prohibition does not extend to contacts with Nebraska Lottery personnel within the normal course of Nebraska Lottery business and unrelated to this RFP.

SECTION 2: REQUIRED ELECTRONIC DATA PROCESSING

AUDIT SERVICES REQUIREMENTS

2.1 PURPOSE

The overriding goal of this RFP is to obtain an electronic data processing audit covering the Nebraska Lottery and its primary vendors GTECH and INTRALOT. This section of the RFP provides a description of the electronic data processing audit services required under this RFP. Vendors may propose that additional topics be included in this project if, in their judgment, their inclusion is necessary to the accomplishment of project objectives or would increase the value of the outcome of the project to the Nebraska Lottery.

2.2 STATEMENT OF UNDERSTANDING/METHOD FOR PROVIDING SERVICES

Each Vendor shall provide a written statement of its understanding of the services requested herein as well as a detailed written plan outlining how the Vendor proposes to provide the services required by this RFP. Each Vendor must provide a narrative which details its understanding of the project’s objective. Vendor’s proposals should demonstrate their experience, expertise of their personnel that will render the requested service, the vendor’s ability to logically plan and complete the electronic data processing audit, and ability to successfully deliver the preliminary and final reports. Vendors must provide information specifically addressing and describing the Vendor’s approach to providing each required service and deliverable listed, the manpower that will be devoted and required to fulfill each task, and the proposed schedule of time required to complete each task.

2.3 CONTRACTOR'S RESPONSIBILITIES

The contract, if any, awarded as a result of this RFP will require the contractor to provide the deliverables and consulting services which satisfy the current and future needs of the Nebraska Lottery as defined in this RFP and as otherwise set out in the Agreement. Delivery time of these services and the ensuing report is of the essence.

2.4 ADMINISTRATIVE REQUIREMENTS

2.4.1 The Contractor is to meet with the Director or his designee as often as needed during the course of the work to be performed. The purpose of the meetings will be to discuss project progress and resolve any problems detected.

2.4.2 The Nebraska Lottery reserves the right to determine whether the data and information accumulated under the provisions of this contract is confidential and therefore, should remain at the Nebraska Lottery premises. All decisions will be final and the contractor must abide by the Nebraska Lottery decision in these matters.

2.4.3 The Contractor and any member of his staff assigned to the project will refrain from discussing or otherwise providing information of any findings or related information with any person outside the Nebraska Lottery organization unless specifically authorized in writing, prior to such occurrence, by the Lottery Director. Should such actions occur without the prior written consent of the Nebraska Lottery Director, the performance bond will be forfeited and any and all possible legal actions may be taken against the Contractor and any staff members or other persons. Vendor must complete and sign a Nondisclosure Agreement (see Appendix "D") and include it as part of their response to this RFP.

2.5 DESCRIPTION OF THE OPERATING ENVIRONMENT

2.5.1 Nebraska Lottery Headquarters

301 Centennial Mall South, 2nd Floor

P.O. Box 98901

Lincoln, Nebraska 68509-8901

2.5.1.1 The Nebraska Lottery headquarters facility is located on the second floor of the Nebraska State Office Building. The functional areas which occupy this space are listed below:

2.5.1.1.1 Administration

2.5.1.1.2 Finance and Accounting

2.5.1.1.3 Computer Systems

2.5.1.1.4 Marketing

2.5.1.1.5 Internal Audit

2.5.1.1.6 Legal Counsel

2.5.1.1.7 Claims Center

2.5.2 The Nebraska Lottery Regional Claims Centers

2.5.2.1 Panhandle State Office Complex

4500 Avenue I

Scottsbluff, NE 69363-1500

2.5.2.2 Craft State Office Building

200 South Silber Street

North Platte, NE 69101-4200

2.5.2.3 TierOne Bank Building

Suite 460

1811 West Second Street

Grand Island, NE 68803-5469

2.5.2.4 304 North 5th Street

Suite "D"

Norfolk, NE 68701-4091

2.5.2.5 Nebraska State Office Building

1313 Farnam-on-the-Mall

Omaha, NE 68102-1871

2.5.3 GTECH

4700 Bair Avenue, Suite B

Lincoln, NE 68504

The facility houses the instant games operation and the administrative offices for the GTECH sales and service force.

2.5.3.1 GTECH Headquarters is at

55 Technology Way

West Greenwich, RI 02817

2.5.3.2 Major software packages used on the GTECH system include:

Package Developer

Instant Production System (NEIPS) GTECH

VISION GTECH

Internal Control System Elsym Consulting

2.5.3.3 The GTECH instant system consists of three (3) VAX 4090 systems, a Compaq DS10 system, a Compaq DS10E system and a Compaq DS20E system. All are located at GTECH in Lincoln.

2.5.3.4 The primary instant system is located at GTECH in Lincoln. The primary ICS system is located at Nebraska Lottery headquarters on a Compaq DS10 system while the back-up ICS system is at GTECH in Lincoln.

2.5.4 INTRALOT

1135 M Street, Suite 120

Lincoln, NE 68508

The facility houses the on-line games operation and the administrative offices for the INTRALOT sales and service force.

2.5.4.1 INTRALOT Headquarters is at

11360 Technology Circle

Duluth, GA 30068

2.5.4.2 Major software packages used on the INTRALOT system include:

Package Developer

LOTOS INTRALOT

Internal Control System Elsym Consulting

2.5.4.3 The INTRALOT network consists of two (2) Windows servers using Compaq DL580’s, a SAN utilizing HP Storage Works and two (2) Alpha servers using Compaq D525’s running Open VMS.

2.5.4.4 The primary on-line gaming system is located at INTRALOT in Lincoln and the backup system is located at INTRALOT in Duluth, Georgia. The primary ICS system is located at Nebraska Lottery headquarters on a Dell Poweredge 2650 while the back-up ICS system is at INTRALOT in Lincoln.

2.6 SCOPE OF WORK TO BE PERFORMED

2.6.1 The overall objective of this effort is to provide the Nebraska Lottery with an assessment of the electronic data processing system in place and how it impacts the integrity, security and fairness of Nebraska Lottery products, operations and gaming services. This specifically includes: security, operational procedures, interconnecting networks and their controls; data / file exchanges between the Nebraska Lottery and its primary vendors; and the security and controls for the Nebraska Lottery’s internal LAN.

2.6.2 At the minimum, the Vendor shall review the electronic data processing policies, procedures and practices associated with the following:

2.6.2.1 Organization and Administration Controls;

2.6.2.2 Security and Backup Procedure Controls;

2.6.2.3 Input/Output and File Controls;

2.6.2.4 Operation Controls;

2.6.2.5 Systems Controls; and

2.6.2.6 Application Controls.

The Contractor shall review the security of the aforementioned areas for the Nebraska Lottery and its Contractors GTECH and INTRALOT only as they relate to the Nebraska Lottery.

2.6.3 The information gathered throughout this examination and evaluation must be in sufficient detail to assess accurately the areas of exposure and their potential impact on the operating environment of the Nebraska Lottery. This assessment must identify for management those areas in the operation where improvement should be considered, and recommend strategies for correcting those deficiencies.

2.7 PROGRESS REPORTS

2.7.1 The Contractor shall submit two (2) copies of a confidential progress report to the Nebraska Lottery Director every Monday, beginning one week subsequent to commencement of services, unless more frequent reports are requested. Each progress report shall indicate the current status of the work being performed, interim findings, difficulties, or special problems (so remedies can be developed as soon as possible), and the estimated final completion date of the electronic data processing audit. The Nebraska Lottery may request periodic conferences with the Contractor.

2.7.2 Any electronic data or other security matters coming to the attention of the Contractor that, in the Contractor's judgment, may require immediate action to ensure Nebraska Lottery security shall immediately be brought to the attention of the Director and the matter shall be documented in the Contractor's next scheduled progress report.

2.7.3 All pages of both reports shall contain the word "confidential". The Nebraska Lottery reserves the right to use and reproduce all reports and data produced and to disseminate the same. The Contractor shall also provide a “soft” copy of the progress reports (Microsoft Word format preferred).

2.7.4 All progress reports shall be deemed confidential and may not be disclosed to anyone other than the Director or his designee.

2.8 DELIVERABLES

The Contractor shall be required to prepare and submit the following deliverables to the Director.

2.8.1 A formalized, detailed work plan and project schedule must be delivered to the Director prior to performing any services as a part of any contract pursuant to this RFP.

2.8.2 The Contractor shall provide progress reports as required in section 2.7.

2.8.3 The Contractor shall provide a confidential final report to the Director. The final report will contain an overall evaluation and summary of each aspect of electronic data processing in the Nebraska Lottery. The final report shall be a complete report of the electronic data processing study and provide specific recommendations regarding the Nebraska Lottery's electronic data processing systems.

2.8.4 The final report must contain a full description of the operating environment and must detail electronic data processing safeguards within each of the functional areas. This description will be utilized to establish a baseline for future electronic data processing audits.

2.8.5 The final report must also contain a sequentially numbered description of all vulnerabilities found and the recommended improvements, modifications or upgrades. The report must be structured so that findings relevant to each functional area will consist of a separate chapter within the report. This grouping of findings for each functional area will facilitate distribution of the findings to the proper work unit for correction without revealing all vulnerabilities to all parties.

2.8.6 Two (2) copies shall be delivered to the Director. All pages of the reports shall contain the word "confidential". The Nebraska Lottery reserves the right to use and reproduce all reports and data produced and to disseminate the same. The Contractor shall also provide a “soft” copy of the final report (Microsoft Word format preferred).

2.8.7 At the conclusion of the audit, the Contractor will conduct an in-depth technical briefing of its findings to the Nebraska Lottery. The Director and his designee(s) shall participate in this briefing. The briefing will consist of a point by point review of each of the Contractor's findings. All working papers including, but not limited to, flowcharts, questionnaires, and spreadsheets prepared by the Contractor while conducting the EDP audit must be available to the Nebraska Lottery for review and duplication at all times throughout the audit and during the technical briefing.

2.8.8 The final reports shall be delivered to the Director no later than June 23, 2006.

2.8.9 All reports required in the contract shall be confidential and shall only be disclosed to the Director or his designee. All reports must be labeled confidential and will be exempt from public disclosure.

2.9 EXPERIENCE

2.9.1 Vendors must have experience in performing electronic data processing audits and must provide detailed information, within proprietary limits, of such experience. The narrative should focus on electronic data processing audits, and must include the following:

2.9.1.1 The history of the Vendor's experience in performing electronic data processing audits.

2.9.1.2 Vendor must provide resumes or short biographies of all management, supervisory and key technical personnel planned to be involved in performing the services contemplated under this RFP. Vendor must specify what role the individual(s) will have in the planning, creation, production, procurement or other service provided in response to this RFP. The resumes must present the personnel in sufficient detail as to provide the Nebraska Lottery with evidence that the personnel involved can perform the work specified in the RFP. Vendor must specify what percentage of time each indicated person is available to perform the work if the Vendor is awarded the contract.

2.9.1.3 Specific experience and expertise by the Vendor and staff in performing electronic data processing audits.

2.9.2 Vendors must outline their experience in auditing electronic data processing issues including, but not limited to, user access, system security officer procedures, data retention and backup procedures, other data processing department procedures, any other relevant data processing security issues, computer security, as well as specific and general data processing knowledge and any other experience relevant to the services to be provided.

2.9.3 Vendor(s) must also specify the following:

2.9.3.1 Any experience by the vendor or their staff with governmental entities or instrumentalities.

2.9.3.2 List any current personnel with experience on Lottery accounts.

2.9.4 All Vendor(s) in their proposal must provide a brief history of their company, including, but not limited to:

2.9.4.1 The name and address of the business entity submitting the proposal;

2.9.4.2 The type of business entity (i.e. corporation, partnership);

2.9.4.3 Place of incorporation, if applicable;

2.9.4.4 Name and location of major offices and other facilities that relate to the Vendor's performance under the terms of this RFP;

2.9.4.5 Name, address, business and home telephone number of the Vendor's principal contact person regarding all contractual matters relating to this RFP;

2.9.4.6 Name and address of each lobbyist representing the Vendor in this state and all accounts and money managed by those lobbyists;

2.9.4.7 The Vendor's Federal Employer Identification Number and Nebraska tax identification / registration number (if any);

2.9.4.8 Full name (last, first, middle), address and date of birth for each partner, member, officer and director of the Vendor assigned to the Nebraska Lottery account, and also full name, address and date of birth for each person who owns ten percent (10%) or more of the stock or other interest in the Vendor;

2.9.4.9 A statement regarding the financial stability of the Vendor, including the ability of the Vendor to perform the functions required in this RFP and represented by the Vendor in its response;

2.9.4.10 The number of years in business;

2.9.4.11 The founding date of the organization;

2.9.4.12 Major clients;

2.9.4.13 Entity organization;

2.9.4.14 Trade affiliations; and

2.9.4.15 Any parent / subsidiary affiliation with other entities.

2.9.5 All Vendor(s) must provide an organizational chart of their company in general and also the Nebraska office that will be providing services on the Nebraska Lottery account, including all personnel located in that office. The chart must specifically highlight the names, positions and the geographic locations of persons who will work on the Nebraska Lottery account.

2.9.6 Vendors must provide the names and experience levels of the individuals who will participate in this audit, including their functions and responsibilities. Resumes of individuals who will directly participate in the audit must be provided. The Nebraska Lottery reserves the right to reject the services of any individual consultant.

2.9.7 Describe any staff functions that you consider unique to your company or which better prepare you to handle the Nebraska Lottery account.

2.9.8 Each Vendor must disclose any potential conflict of interest relative to performance of the requirements of this RFP. Any personal or business relationship between the Vendor, the principals or any affiliate or subcontractor, with any employee of the Department of Revenue, the Nebraska Lottery or its contractors must be disclosed. Failure to disclose any such relationship may, at the discretion of the Lottery, be cause for contract termination or disqualification of the proposal.

2.9.9 Each Vendor must list the details of any contributions to or independent expenditures by the Vendor, an officer of the Vendor, a separate segregated political fund established by the Vendor as provided in Neb. Rev. Stat. §49-1469, or by a person including any lobbyist acting on behalf of the Vendor, officer or fund for any candidate for the Nebraska offices of Governor, Lieutenant Governor, Secretary of State, Auditor of Public Accounts, State Treasurer, Attorney General, member of a board or commission with one or more election districts of more than one county, or member of the Legislature or contributions to or independent expenditures for any political party which has supported candidates for the above listed offices since March 17, 2003.

2.9.10 All Vendors must describe the security measures to be taken by them to ensure the safekeeping of confidential data.

2.10 REFERENCES

Vendors must provide the Nebraska Lottery with a client list of at least three (3) lotteries or companies for whom the Vendor has provided deliverables and services the same as or as similar as possible to those requested in this RFP. This client list must include only those companies with whom the Vendor has worked during the past five (5) years. Vendors must list all lotteries for which they have provided services and a description of the services provided. Vendors must provide the following information on all clients' names submitted:

2.10.1 Contact Name

2.10.2 Company Name

2.10.3 Address

2.10.4 Telephone Number

2.10.5 Years of Association with Client

2.10.6 Type of service(s) performed.

2.10.7 Dates when service(s) performed.

2.10.8 Value (approximate) of services provided.

The Nebraska Lottery reserves the right to contact any accounts listed in this section.

2.11 EXECUTIVE SUMMARY

The Vendor must provide a summary of the entire project being proposed. The intent of this requirement is to provide the Nebraska Lottery with a concise, but functional summary discussion of each phase of the Vendor(s) plan in order of progression. While the Nebraska Lottery expects the Vendor to provide full details in each of the sections in other areas of the RFP relating to their plan, this summary will provide a "map" for the Nebraska Lottery to use while reviewing the proposal.

SECTION 3: COMPENSATION

3.1 COMPENSATION PROPOSAL - see section 4.10

Each Proposal must include a precise statement of the Vendor's proposed compensation for undertaking and completing all phases of the electronic data processing audit services and deliverables requested and outlined in this RFP. The Nebraska Lottery shall compensate the Contractor by payment of a fixed fee. Vendor’s proposed compensation will serve as the Contractor's sole source of compensation for performing all services required by this RFP.

3.2 INVOICING

3.2.1 All invoices will be made on the Vendor's company invoice form and submitted after the work has been performed and after a satisfactory progress report has been forwarded to the Director of the Nebraska Lottery.

3.2.2 Invoices must be itemized and contain the following information: employee name, employee title, brief description of services performed, number of hours worked, dollar amount per hour, itemized totals. These items must be separately stated between the audit of the Lottery’s system, the on-line system and the instant system. Failure to submit an itemized breakdown as described herein with an invoice will be cause for delay in payment since invoices not including itemized breakdown sheets will be returned to the Contractor.

3.2.3 All invoices must be mailed to:

Mr. Dennis Nelson

Nebraska Lottery

301 Centennial Mall South

P.O. Box 98901

Lincoln, NE 68509-8901