The call for tender was published on Tuesday in the Official Gazette

Brazil: LOTERJ opens instant and sports betting tender in Rio de Janeiro

The public tender will have a “Lowest Global Price” modality and will be held at the LOTERJ headquarters on July 5, starting at 2:00 p.m.
Reading time 2:41 min
Rio de Janeiro's Lottery (LOTERJ) officially announced that the tender will be for the provision of services for five years, and the contract's estimated value will be more than R$ 260 million (US$ 49,5 million).

According to the basis of the call for tender, the interested parties must submit the documentation in two envelopes: envelope "A", which contains Qualification Documentation and Technical Qualification, and envelope "B" with the Economic Proposal.

The call for tender was published this past Tuesday, May 18, in Rio de Janeiro's Official Gazette, where the posting for the hiring of the company appears, exclusively in favor of LOTERJ, "to provide services for the creation of lottery products, comprised of games and events involving draws and betting records, distribution, and marketing prognosis of lottery products, instant lottery, fixed-odds sports betting games, whether physical or virtual, within Rio de Janeiro's scope, in addition to the preparation, proposal, orientation, and execution of advertising campaigns related to the games developed and marketed under contract.”

The public tender will have a “Lowest Global Price” modality and will be held at the LOTERJ headquarters on July 5, starting at 2:00 p.m.

The term of the agreement will be 60 months, and the estimated value will be R $ 260,510,000 (about US$ 49.5 million at the current exchange rate).

According to the announcement, the tender includes the development of a technological platform, the development of control applications, payments, and electronic commerce of lotteries (software) through physical and/or multimedia means, and it will be defined by LOTERJ "through its President", who will be able to define the use of the technological platform contracted by the Municipality.

The tender also establishes the applicable system for the execution of the "global price contract, the contractor being responsible for managing the subcontracting as deemed necessary, without prejudice to its responsibility before LOTERJ and before consumers." The annual financial goals cannot be offset by the surplus obtained in previous years. At the end of the contract, the minimum collection must be R $60,660,000 (US$ 11.5 million) for calculation purposes, to reach the financial goal in favor of LOTERJ.

The estimated minimum contract value of R $ 260,510,000, based on the calculation of the application of the percentage established in Net Win.

One of the requirements to participate in the process is that in any consortium made up of foreign and Brazilian companies, the leading company must always be the one in the national capital. Moreover, each member of the consortium must individually accredit the qualification requirements by submitting the required documentation.

Economic and financial qualification

The bidder must accredit a minimum share capital or equity equal to or greater than R $ 26,051,000 (US$ 5 million), corresponding to 10% of the minimum estimated value of the contract.

Technical qualification

For the purposes of technical qualification, participants must present proof of suitability for carrying out permanent and compatible activities for each type of service that makes up the objective of the tender. Testing will be done by means of a certificate provided by legal entities of public and private law.

The announcement informs that the bidder will need to follow the information that the Reference Term in Annex III contains under the topic "Technical Qualification Conditions".

According to the deadline, the participating company of the consortium must present at least one certificate of technical capacity that accredits:

- Software service provision as services - SaaS;

- Provision of implementation, maintenance, and remote support services;

- Service provision in the form of Software as Services through the use of Datacenter with redundancy.

In addition to the requirements, the bidder must submit a registration list with 3,000 points of sale in the State of Rio de Janeiro with the name of the person responsible for the point of sale and his/her qualification, address, telephone number, and email. Furthermore, the bidder must also submit the ISO 27001 Certificate and international references for information security management, as well as being a member of the World Lottery Association - WLA, since the WLA proposes a management structure and disseminates the best practices in the sector, including guidance about Responsible Gaming.

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