Intralot withdraws Maryland Lottery bill following a reassessment
Intralot‘s $260 million bid to supply the Maryland Lottery’s Central Monitoring and Control System was withdrawn, following a reassessment by the Maryland Lottery and Gaming Control Agency (MLGCA).
The contract, which includes terminal manufacturing, self-service machines, software development, and operational support for about 4,300 lottery retailers in Maryland, would run for 10 years with an option to extend for 5 years. Intralot proposed a term price of $260,393,946, initially making the company the recommended vendor.
The MLGCA reported that while the 3 bidders were initially assessed as compliant, the follow-up internal review revealed that Intralot’s submission didn’t fully meet the Request for Proposals (RFP) requirements and state procurement law.
John Martin, MLGCA Director, shared:
“As an independent agency, our review process is designed to ensure that proposals don’t advance without meeting all requirements. Upon determining that our initial assessment was incorrect, we have taken appropriate action to move forward with the procurement process in accordance with procurement law.”
Following this decision, Scientific Games, previously the 2nd bidder, has become the recommended vendor. However, MLGCA confirmed that the process is still ongoing and the final decision has yet to be made.
Intralot resisted the withdrawal, stating that the rejection was based on an alleged failure to meet the required subcontracting percentage for local subcontractors.
Intralot shared in a statement:
“This decision comes as a great surprise, especially considering that Intralot, Inc. had allocated a significantly higher percentage of the project to local subcontractors than the minimum required. Moreover, the company had provided the Commission with very detailed clarifications, and the Commission was fully aware of the identity and role of these subcontractors.
In fact, the Commission initially ruled that all participants in the bidding process complied with the requirements of the relevant RFP – something the Commission itself acknowledges.”
Intralot added that it considers legal action in response to the withdrawal, stating that it reserves all its legal rights and intends to pursue every legal remedy available to protect the interests of its shareholders.
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