BACKGROUNDER – OLG’S PROCUREMENT PROCESS FOR MODERNIZATION PLAN

OLG plans to engage regulated private-sector providers to expand lottery and gaming in Ontario. The process will begin with a multi-stage, competitive and transparent procurement process that includes a Request for Information (RFI) followed by a Request for Pre-Qualification (RFPQ) and a Request for Proposal (RFP).

Request for Information (RFI)

What is an RFI?

  • An RFI is used as a first step in planning a complex change to how we purchase goods and services.
  • The RFI is a commonly used information-gathering tool. There is no guarantee that any of the information gathered will be included in future planning.

What is the purpose of an RFI?

  • The RFI will enable OLG to gather valuable information from potential regulated providers.
  • The RFI will pose a number of questions about elements of our business that will allow operation by regulated private-sector providers.
  • The information gathered through the RFI will provide ideas to help inform decisions in the coming months.
  • OLG will collect valuable data from potential vendors to help:
    • determine the range of options;
    • clarify business requirements;
    • identify and assess project and procurement risks;
    • determine project costs and/or price structures;
    • and identify potential vendors.
  • The RFI will be posted on the MERX tendering system (www.merx.com), a national electronic tendering website, where any interested vendor may access them for a small fee.

What happens after an RFI?

  • When the RFI closes, we will review the information we receive. The information will help determine how to engage regulated private-sector providers.
  • The findings will help OLG launch a Request for Pre-Qualification and then a Request for Proposal (RFP). These next two stages are more formal.

Request for Pre-Qualification (RFPQ)

What is an RFPQ?

  • OLG will conduct a Request for Pre-Qualification (RFPQ) to determine the abilities of potential respondents.
  • Interested vendors will be asked to submit information on their financial and technical capabilities, including proof of experience with similar projects.
  • They must also have submitted an application for certification by the Alcohol and Gaming Commission of Ontario (AGCO).
  • The RFPQ process will allow OLG to create a list of companies eligible to receive the RFP documents.
  • The RFPQ will be posted on the MERX tendering system (www.merx.com), a national electronic tendering website, where any interested vendor may access them for a small fee.

Request for Proposal (RFP)

What is an RFP?

  • The RFP is an opportunity for pre-qualified vendors to bid on a specific product or service through a competitive and transparent procurement process.
  • The RFP will only be distributed to pre-qualified vendors.

What is the purpose of an RFP?

  • The RFP will identify the services within the new Gaming model and the new Lottery model that we want the private-sector vendors to bid on.
  • It will ask potential private-sector providers to make formal bids on an opportunity to operate specific aspects of our business.
  • Evaluation will be based on various criteria, not just price.
  • The RFP will not be public. It will only be released to pre-qualified vendors.

What happens after the RFP closes?

  • When the RFP process is complete, we will then select the vendors to become the regulated private sector providers for gaming and lottery.
  • By then, in 2013, OLG will be able to announce its transformed business structure (within the conduct and manage framework) as well as the new regulated private sector providers.

OLG is committed to ensuring that its modernization is the result of a process that is, and is seen to be, fair and transparent to all relevant stakeholders. Accordingly, OLG intends to structure the modernization process so that it includes various procedural safeguards such as the use of fairness monitors.

(Disponible en français)

For further information: OLG Media Relations, 1.888.946.6716, www.OLG.ca

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June 7, 2012

BACKGROUNDER – MODERNIZING LOTTERIES IN ONTARIO

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SUMMARY OF LOTTERY RFI