MASSACHUSETTS OFFICE OF TRAVEL TOURISM

Document Sample
MASSACHUSETTS OFFICE OF TRAVEL  TOURISM Powered By Docstoc
					             EXECUTIVE OFFICE OF HOUSING AND ECONOMIC
          DEVELOPMENT/MASSACHUSETTS OFFICE OF TRAVEL &
       TOURISM/MASSACHUSETTS OFFICE OF BUSINESS DEVELOPMENT

                          REQUEST FOR RESPONSE

               RFR-2008-EOHED FY08 -01 JANUARY 16, 2008


PURCHASING DEPARTMENT:                      EXECUTIVE OFFICE OF HOUSING AND
                                            ECONOMIC DEVELOPMENT/MASS. OFFICE OF
                                            TRAVEL AND TOURISM/MASS.OFFICE OF
                                            BUSINESS DEVELOPMENT

ADDRESS:                                    1 ASHBURTON PLACE,ROOM 2101
                                            BOSTON, MA 02108

TELEPHONE:                                  617-788-3610

FAX:                                        617-788-3605

E-MAIL ADDRESS:                             GEORGE.A.RAMIREZ@STATE.MA.US



RFR FILE NAME/TITLE:                        GAMING FINANCIAL RESEARCH SERVICES

RFR NUMBER:                                 2008-EOHED -01

CONTACT PERSON:                             GEORGE RAMIREZ
CATEGORY:                                   PROFESSIONAL SERVICES


1.     DESCRIPTION OF PROPOSED PROCUREMENT

Background

Governor Deval Patrick filed proposed legislation in October 2007 that seeks to expand
gaming in Massachusetts through the development of up to three integrated destination
resort casinos. The goal is to develop a best in class statute that permits the newly
created Massachusetts Gaming Authority to conduct, with the assistance of financial
advisors engaged by the Authority, a competitive auction process that maximizes capital
investment, maximizes job creation and maximizes long-term economic development
impact for Massachusetts of any resort casino. To this end, EOHED has been given the
authority to take the lead in this initiative by composing this RFP and funding it. We
anticipate the Governor’s legislative proposal will benefit Business Development and
Tourism here in Massachusetts.

Initial financial, job creation and revenue analysis was done internally, based on review
of existing materials and similar resort developments in other jurisdictions, but we
believe that it is appropriate, at this juncture of policy and legislative deliberations, to
obtain a more robust and comprehensive financial analysis by an independent third-party
firm with specific expertise on the gaming industry. Among the goals of this engagement
is to permit Governor Patrick, the Secretary of EOHED, and their advisors, to 1) respond
with greater specificity to questions from legislators on the initiative and financial and
jobs creation projections, 2) evaluate any proposed amendments to the resort casinos
legislation, 3) determine recommended modifications, if any, to the proposed legislation
in order to maximize the economic development and revenue impact to the
Commonwealth of Massachusetts.

The firm retained would work in close consultation with the Executive Office of Housing
and Economic Development. It is anticipated that the work would be completed within
60-90 days of firm selection and project commencement.

All Bidders must execute and submit The Commonwealth Terms and Conditions, which is
non-negotiable and related documentation. If selected, the bidder must also execute the
Standard Contract Form.

All documents which must be submitted with a bidder’s response are posted under the
Forms and Terms tab of this solicitation on the Comm-PASS website. All documents
ultimately negotiated and incorporated into the contract will be referenced on the Standard
Contract Form prior to execution by the parties. Execution of a contract with the selected
vendor is subject to negotiations relative to the scope of service, special contract provisions
and compensation.

This RFR has been distributed electronically using the Comm-PASS system and can be
accessed at http://www.comm-pass.com. It is the sole responsibility of every bidder to
check Comm-PASS for any additions or changes to this RFR. We recommend that you
check the “last change” field on the summary page of RFRs prior to submitting a proposal.
Modification of the language of the RFR will disqualify the bid. If accessing this RFR
electronically, refer to the Forms & Terms tab and Specifications tab of this solicitation for
all documents and instructions necessary to submit a response to this solicitation.

2.     ACQUISITION METHOD:

Outright Purchase of Services
3.  IDENTIFY WHETHER SINGLE OR MULTIPLE CONTRACTORS ARE
REQUIRED FOR CONTRACT:

Single contractor will be awarded under this RFR for the specified services in section 1.
EOHED intends to make one award for what is specified in Section 1 of this RFR.


4.   IDENTIFY WHETHER SINGLE OR MULTIPLE DEPARTMENTS WILL
BE ABLE TO USE THIS CONTRACT:

This is a single department contract only.


5.     EXPECTED DURATION OF CONTRACTS:


Contract duration:                           February 22, 2008 – June 30, 2008

Option to renew beyond first-year            1-year options to renew, if required: subject
                                             to the evaluation of the contract performance
                                             and appropriation.

Total Anticipated Duration:                  February 22, 2008 – June 30, 2008 and if
                                             option to renew until June 30, 2009, if
                                             required


6.     AFFIRMATIVE ACTION PROGRAM PLAN

Massachusetts Executive Order 390 established a policy to promote the award of State
Contracts in a manner that develops and strengthens Minority and/or Women Business
Enterprises (M/WBEs). As a result, M/WBEs are strongly encouraged to submit bid
responses to this RFR, either as prime vendors, joint venture partners or subcontractors.
All Bidders, regardless of their certification status, are required to submit a completed
AMP Plan Form as part of their response for evaluation. It is required that Affirmative
Market Program participation accounts for no less than 10% of the total points in the
evaluation. Higher evaluation points may be awarded to AMP Plans that show more
commitments for use of certified vendors in the primary industry directly related to the
scope of the RFR, subcontracting expenditures and partnerships for the purpose of
contracting with the Commonwealth.

The PMT requires bidders to make a significant commitment to partner with certified
Minority- and Women-Owned Businesses in order to be awarded a contract. A
SOMWBA-certified Bidder may not list itself as being an Affirmative Market Program
Partner to its own company. In addition, a narrative statement can be included to
supplement the AMP Plan Form providing further details of the AMP commitments. The
submission of this narrative statement does not replace the requirement of the AMP Plan
Form. Bidders must submit one form for each M/WBE AMP Relationship. Please note
that no bidder will be awarded a contract unless and until they agree to commit to
at least one (1) of following three (3) AMP Components selected by the PMT:

   1. Subcontracting: If Bidder commits to Subcontracting in their AMP plan, then
      they must commit to subcontract a specific dollar amount, or a minimum
      percentage of dollars earned through an awarded contract, with a SOMWBA-
      certified company or a company that has applied for certification. Although
      this is only one of several options to meet the requirements for participation in
      the Affirmative Market Program, Bidder’s submission of subcontracting
      commitments may be weighted most heavily. The PMT will set timelines for
      progress reviews (either quarterly or semi-annually) for the purpose of
      compliance and tracking of submitted commitments. Please note that all
      subcontracting partnerships require inclusion of that contract between the
      Bidder and the M/WBE subcontractor in the Bidder’s bid package.

   2. Growth & Development: If a Bidder commits to Growth and Development in
      their AMP plan, then they must submit a plan for education, training,
      mentoring, resource sharing, joint activities, and assistance that would increase
      industry capacity and the pool of qualified SOMWBA certified companies.

   3. Ancillary Uses of Certified M/WBE Firm(s): If a Bidder commits to
      Ancillary Uses of certified M/WBE Firm(s) (or companies that have applied
      for certification) in their AMP plan, then they must include dollar or
      percentage expenditure commitments for use of these firm(s) with or without
      the use of written commitments between the Bidder and the M/WBE Firm(s).
      A description of the ancillary uses of certified M/WBEs, if any, must be
      included on the AMP Plan Form.

If applicable, Bidders are encouraged to include additional information for the
following components on their AMP Plan form:

      Past Performance: Bidders must include information on past expenditures
       with SOMWBA certified M/WBEs of the previous two (2) years.

      Other Creative Initiatives with SOMWBA certified companies: Bidders
       must include any additional AMP Partnership initiatives that further support
       their AMP Plan in a narrative format. If a Bidder commits to Other Creative
       Initiatives in their AMP plan, then they are encouraged to commit to at least
       one certified MBE and at least one certified WBE in the submission of their
       plans. In addition, Bidders can outline their own Diversity programs available
       to SOMWBA vendors.

Once an AMP Plan is submitted, negotiated and approved, the PMT will then monitor
the contractor’s performance.
Resources available to assist Prime Bidders in finding potential M/WBE partners
can be found at: http://www.mass.gov/Aosd/docs/mwbe/AMP Resources and
Guidance.doc


7.       SCOPE OF SERVICES: Proposal

We are seeking an independent research firm with extensive experience in economic
impact and financial analysis related to resort casino operations and the New England
gaming market. We are seeking a firm with a reputation for integrity, intellectual rigor
and independence in its financial analysis and positive references available from both
public sector and private sector clients.

The firm will have the burden of putting together a report with comprehensive and
comprehensible analysis that includes answers to a variety of questions that interested
parties may have in connection with the Governor’s proposed resort casinos initiative.
Illustrative examples of questions and the type of financial analysis to be done includes
the following:

        review and assessment of all of the financial projections used by the Patrick
         Administration in advancing the resort casinos proposal, including:

         o the anticipated size of the Massachusetts gaming market, both presently and in
           the future in light of anticipated expansions at Foxwoods and Mohegan Sun
           and possible expansion of gaming establishments in other New England
           states;

         o the anticipated tax rate that will maximize revenues and result in the high
           level of capital investment necessary to attract quality, top-tier operators to
           Massachusetts to develop resort casinos able to compete and succeed against
           existing New England gaming alternatives;

         o the gross gaming revenues projections (and anticipated revenues from each
           slot machine) from three resort casinos in Massachusetts (including
           confirmation of whether three is the ideal number for economic development
           and overall revenue impact);

         o the anticipated costs for a best in class regulatory and enforcement structure as
           proposed in the legislation, when measured against other jurisdictions;

         o anticipated short-term and long-term impact on the Massachusetts Lottery;

         o anticipated initial license fees amounts to be derived from a competitive
           auction process as outlined in the proposed legislation;
    o the amounts of other expected revenue streams to local and state government
      in Massachusetts (including income, sales, corporate excise, property, meals
      and hotels taxes) that will result from the proposed resort casinos
      development;

    o net job creation projections – both temporary and permanent – in connection
      with resort casinos in three regions in Massachusetts;

    o analysis of average salary levels for each specific type of resort casino
      employment position in Massachusetts and anticipated payroll for proposed
      resort casinos by region;

    o potential impact on existing entertainment, leisure and hospitality sectors,
      with a particular focus on conventions, meetings and tourism;

    o potential impact and anticipated substitution effect on existing Massachusetts
      businesses, such as dining and retail;

    o recommendations to maximize the quality and variety of retail and
      entertainment attractions not related to gaming in new resort casinos; and

    o anticipated public health, public safety and regional impact costs in
      connection with the proposed resort casinos initiative and evaluation of the
      relevant mitigation funds as proposed in the legislation.

   anticipated time line, post-enactment of legislation 1) to form the Massachusetts
    Gaming Authority, 2) to conduct a competitive auction process and award three
    licenses, 3) to construct the resort casinos and 4) for resort casinos to be at an
    operational level that will result in anticipated revenue streams to the
    Commonwealth;

   analysis of existing external third-party analysis of the Administration’s financial
    and jobs creation projections; and

   analysis of how the prospect of any potential tribal casino pursuant to IGRA
    should be factored into financial and policy analysis of expanded gaming in
    Massachusetts.

The specific report and work product to be developed is intended to:

   assist with analyzing policy goals;

   assist with explaining policy goals to third parties;

   assist with determining effective benchmarks and how other existing domestic
    and international gaming jurisdictions have addressed similar issues;
        assist with analysis in developing specific steps and policies that will result in
         optimum outcomes or produce results consistent with the economic development
         plan announced by the Governor, including the location, type, number and
         minimum size of resort casinos and the tax rate and regulatory system that will
         advance stated policy goals; and

        assist with other advisory services as may be needed in connection with
         legislative and public deliberations of the proposed resort casinos initiative.

This type of engagement will demand a significant effort, including an on-site presence
when needed. In addition, since this engagement is primarily intended to serve in an
advisory role to assist in dealing with various issues that arise as the resort casinos
legislation progresses, the nature of these advisory services may be unpredictable and
somewhat fluid.

To be clear, this engagement is not intended to replace the sophisticated analysis by
financial consultants to be retained by the newly Massachusetts Gaming Authority, after
the proposed legislation is passed, of all the conditions the Authority will use when
reviewing license applications and the weighting that certain factors will be given before
they open the auction to bids. That full analysis is beyond the scope of this more limited
engagement, although we will be seeking assurance that we have the correct and most
flexible regulatory structure in place in the proposed legislation to structure a professional
and credible competitive auction process that will create the type of resort casinos that
will maximize value and result in meaningful, long-term economic development
opportunity for the Commonwealth.


8.       COMPENSATION
Compensation will be on a cost reimbursement basis. Contractor will submit an invoice
accompanied by relevant documentation that supports the successful completion of
services.

Invoices will be paid monthly, after the completion of the month and receipts are
submitted and reviewed, along with the monthly program status report. Agency will be
required to produce detailed receipts of all expenses. EOHED will have 45 days after
receipt of the invoice to process payment.


9.       CONTRACTOR ELIGIBILITY CRITERIA


        Vendors will be considered eligible if they possess the following minimum
         qualifications:
         Have been continuously operating as a corporate entity for a minimum of 36
          months preceding the date of submission.

         The successful bidder will have the ability to successfully conduct quantitative
          and qualitative research and have experience in the area outlined to perform the
          services outlined in Section 1.

         Five years of experience in conducting gaming research projects

         At least three (3) client references for the types of research services solicited.

         Documentation of gaming research services provided to other clients in the past
          two years. EOHED anticipates the examples will address the research areas
          required in Section 1 and services described in section 7, but bidders may submit
          supplementary information describing other forms of primary research conducted
          for similar services.

         Disclose any current services clients for similar Gaming related research services
          to be performed. EOHED/DBT reserves the right to exclude any agencies with
          clients, that, in the judgment of EOHED/DBT, constitute a conflict of interest.
          Agree not to add any Gaming related clients without prior written approval of
          EOHED/DBT, through June 30, 2008 or when the EOHED/DBT contract is
          terminated, whichever comes first.

         Are capable of completing the services (as described in section 7 within the time-
          frame outlined above.)


10.       ELEMENTS OF PROPOSAL

Vendors wishing to respond to this RFR must submit the following elements as part of
the initial proposal. Material submitted must follow this organizational structure and
all parts must be completed to be considered a valid response to this RFR.

Part 1
Company information:
    general overview
    years in business
    number of full- and part-time employees and consultants/contract employees by
       functional area
    list of current Gaming or other research related clients, indicating each client’s
       tenure with the agency
    contact person for this RFR, including the contact information (e.g., phone, email,
       and fax)
Part 2
Proposed research team: names, credentials, length of employment, and work status
(permanent vs. contract employee). Clearly identify the person who will have primary
responsibility for managing EOHED/DBT ’s projects and the person who will be the
primary day-to-day contact with the EOHED team.

Part 3
Response to eligibility requirements as detailed in Section 8.

Part 4
A proposal defining how the vendor intends to complete project for all the services
outlined. The proposal will include budget for the proposed project and provide the
firm’s fee schedule for staff likely to be involved in consulting time/research services as
outlined in Section 7.

Part 5
Executed contract documents 1 through 7, detailed in Section 13 below.

11.      EVALUATION CRITERIA AND SELECTION PROCESS

Proposals will be evaluated based upon bidders’ responsiveness to this RFR in terms of
compliance with all eligibility requirements as detailed in Section 8; demonstrated ability
to perform all required services as detailed in Section 7 relevant experience of performing
Gaming research by the agency and subcontractors, if any; demonstrated results; agency
and account team credentials; proposed compensation; and overall quality of the
submission. Any response, regardless of the submission formats specified, that fails to
meet a mandatory specification of this RFR may be found non-responsive without further
evaluation unless EOHED/DBT , in its discretion, determines that the non-compliance is
insubstantial, can be corrected or that an alternative proposed by the bidder is acceptable.
Proposals will be evaluated by a review panel approved by the Secretary of EOHED and
this review panel will determine eligibility and select agencies to be evaluated.


The numbered Scope of Services in section 7 will each be weighted to reflect the
importance that the evaluation committee places on each scope.
The panel will submit a recommendation to the Secretary of EOHED Who will make
the final selection of the agency. EOHED reserves the right to reject any and all
proposals if it is deemed in the best interests of the Commonwealth.
12.        GENERAL ADMINISTRATIVE AND SUBMISSION INFORMATION:


Questions: Written Questions via the Bidder's Forum:

Prospective Bidders may submit questions regarding this solicitation.

All Bidders' questions regarding the solicitation must be submitted within the timeframe
of and only through the publicly accessible electronic Bidder's Forum found on Comm-
PASS at www.comm-pass.com.


The RFR Procurement Calendar of this RFR will indicate the Online Question Start and
End dates of the Forum.

To access the Ask a Question functionality during the Online Question period:

      1.   Navigate to www.comm-pass.com
      2.   Select the Forums tab from the main navigation bar
      3.   Select the "Search for Forums" option
      4.   Enter the Solicitation Document Number (2008-EOHED-01) in the "Referenced
          Solicitation Number" field
      5.   Select the "Search" button
      6.   The system will return a results link at the top of the "Search for a Bidder's
          Forum" page
      7.   Select the result link
      8.   Select the View icon (eyeglasses) for the related Solicitation from the list of
          records returned
      9.   If the Online Question period is open, the Ask a Question link will be offered
      10. Select the link to ask at least one question

     Alternate Mediums Not Acknowledged: Please note that any questions that are
      submitted to the PMT via any other medium, including those that are sent via mail,
      fax, email or voicemail, will neither be accepted nor will the PMT provide a
      response.

     Review Existing Questions: In an effort to reduce the possibility of redundant or
      duplicate questions, the PMT asks that prospective Bidders review all questions that
      may have been previously submitted in order to determine whether or not your
      specific question may have already been asked.

     All Questions and Answers Are Visible to the Public: Therefore, all content must
      be suitable for public view. As such, please do not include any information in your
      questions, which you would not want to be visible to the public, including
      information about your company, other companies or information that could be
      considered inflammatory, incorrect, collusory, etc. The VRSPMT reserves the right
   to edit or delete any submitted questions that raise any of these issues or that are not
   in the best interest of the Commonwealth or this solicitation.



EOHED reserves the right to consolidate similar questions under one answer.
Please note that all requests/questions must be submitted via the Bidder's Forum. Only
written response(s) posted on Comm-PASS by the PMT will be considered as binding on
the Commonwealth.

Online Bid Submission is Required
It is required that Bidders responding to this RFR submit their responses online via the
SmartBid Comm-PASS system by the Close Date and Time, as registered by the Comm-
PASS system time clock. For additional information contact the Comm-PASS help line at
1-888-MA-STATE.

Online Response Submittal
Bidders responding online via Comm-PASS are responsible for complying with all
substantive and material bid requirements.

However, online Bidders eliminate the need to produce and submit:
       Paper originals (except those paper originals of forms that must be submitted if
notified of contract award);
       Multiple paper copies;
       Binder clips;
       Plastic media associated with electronic files, e.g., CD-ROMs, floppy disks; and,

By submitting an online bid, Subscribers must acknowledge and accept electronically all
conditions and requirements associated with files attached to the Solicitation’s Forms &
Terms page. This electronic signature is acceptable pursuant to MGL c.110G, § 1 et. seq.,
the Massachusetts Uniform Electronic Transaction Act (UETA).

Vendor agrees to submit any and all forms requiring a wet-ink signature in a paper format if
notified of contract award.

All interested Bidders, including online Bidders, may download and access all forms, terms,
specifications, and file attachments at any time once the Solicitation is posted. However,
online Bidders cannot upload files or submit bids via Comm-PASS until the Amendment
Deadline passes. A link for Response Submission will appear after the Amendment
deadline has passed. This does not delay or prevent any Bidder, online or otherwise, from
beginning the bid response drafting process at any time after the RFR Release date.

All directions for using the online response tool are provided within the Comm-PASS online
response pages. Bidders who require further technical assistance using the online response
tools in Comm-PASS may refer to:
 the Comm-PASS Resource Center at www.mass.gov/osd for documents and guides;
 the Comm-PASS Helpdesk at comm-pass@osd.state.ma.us; or,
              The Comm-PASS Helpline at 1-888-MA-STATE.

Responses must be submitted by 5 PM Eastern Standard Time, February 1, 2008.

Selection Timetable: Contractor will be selected on or about February 15, 2008.

RFR Schedule

RFR posted and available on Comm-PASS                January 16, 2008

Deadline for questions                               Start date: January 16, 2008
                                                     End date: February 1, 2008

Proposals due                                        5 PM Eastern Standard Time,
                                                     February 1, 2008

Agency selected                                      February 15, 2008

Start date for contract                              February 22, 2008

Schedule is subject to change; bidders will be notified of any changes.


13.    RFR ATTACHMENTS:

All forms that are referenced below can be found in the “Forms and Terms” tab of this solicitation on
Comm-PASS at http//www.comm-pass.com

1.     Commonwealth Terms and Conditions

2.     Standard Contract Form

3.     Contractor Authorized Signature Verification Form

4.     Certificate of Owner for U.S. Tax Withholding (W-9))

5.     Authorization for Electronic Payments

6.     Business Reference Form

7.     Affirmative Market Program Plan