starting in calendar year 2018 and the remaining $11.25 million will be available starting in calendar year 2021. This gives the Lottery the flexibility to select the products and services essential to meet future needs. Include equipment rental pricing option Upon request, IGT will provide – monthly rental pricing for additional retailer equipment with a cap on the markup charged to the Lottery. The rental pricing the Lottery alternatives to its existing equipment acquisition model. Consolidate storage, maintenance, and miscellaneous technology costs into a fixed monthly fee - IGT will receive a fixed fee of approximately $2.6 million per month for equipment maintenance and storage services for all existing and future equipment. Currently, the equipment maintenance and storage fees total approximately $24 million per year, but they are projected to more than double within two years and continue to increase in future years as the Lottery’s retailer network and sales grow. Compared with the current Contract’s terms, this fixed fee compensation rate will save an estimated $150 million on equipment maintenance and storage throughout the Contract term. In addition, this monthly fixed fee will cover various other costs, including retailer communication fees, software and application support, system environments, and the 2nd Chance System. This fixed rate model provides cost-savings and simplifies invoicing calculations and review. Increase availability of dual telecommunication network functionality - IGT will provide all retailer telecommunication including dual communication methods, for up to 1,000 retailers designated by the Lottery. Dual communication will help to avoid the risk of degraded communications with Lottery retailers by ensuring redundant alternative telecommunication connections (i.e., satellite and cellular). This change will result in an estimated savings of $1 million throughout the Contract term. Provide additional software support services - IGT will provide an additional 11,680 software support services hours per year, for a total of 24,000 hours annually. The increased availability of software support services will allow the Lottery to make enhancements and add new games and promotions to the gaming system/Player Direct Architecture without additional cost. This change will result in an estimated savings of $10 million throughout the Contract term. Provide additional gaming system environments IGT will provide up to four – non-production gaming system environments in addition to the primary environment currently used for processing sales. The new testing environments will provide greater ability for the Lottery to improve existing player and retailer services.
starting in calendar year 2018 and the remaining $11.25 million will be available starting in calendar year 2021. This gives the Lottery the flexibility to select the products and services essential to meet future needs. Include equipment rental pricing option – Upon request, IGT will provide monthly rental pricing for additional retailer equipment with a cap on the markup charged to the Lottery. The rental pricing the Lottery alternatives to its existing equipment acquisition model. Consolidate storage, maintenance, and miscellaneous technology costs into a fixed monthly fee - IGT will receive a fixed fee of approximately $2.6 million per month for equipment maintenance and storage services for all existing and future equipment. Currently, the equipment maintenance and storage fees total approximately $24 million per year, but they are projected to more than double within two years and continue to increase in future years as the Lottery’s retailer network and sales grow. Compared with the current Contract’s terms, this fixed fee compensation rate will save an estimated $150 million on equipment maintenance and storage throughout the Contract term. In addition, this monthly fixed fee will cover various other costs, including retailer communication fees, software and application support, system environments, and the 2nd Chance System. This fixed rate model provides cost-savings and simplifies invoicing calculations and review. Increase availability of dual telecommunication network functionality - IGT will provide all retailer telecommunication including dual communication methods, for up to 1,000 retailers designated by the Lottery. Dual communication will help to avoid the risk of degraded communications with Lottery retailers by ensuring redundant alternative telecommunication connections (i.e., satellite and cellular). This change will result in an estimated savings of $1 million throughout the Contract term. Provide additional software support services - IGT will provide an additional 11,680 software support services hours per year, for a total of 24,000 hours annually. The increased availability of software support services will allow the Lottery to make enhancements and add new games and promotions to the gaming system/Player Direct Architecture without additional cost. This change will result in an estimated savings of $10 million throughout the Contract term. Provide additional gaming system environments – IGT will provide up to four non-production gaming system environments in addition to the primary environment currently used for processing sales. The new testing environments will provide greater ability for the Lottery to improve existing player and retailer services.
Issue%20Memo%208d%20092817.docx