Cigarette Tax Stamps

Agency:	State of Vermont
State:	Vermont
Type of Government:	State & Local
Posted Date:	Jan 30, 2026
Due Date:	Feb 20, 2026
Original Source:	Please Login to View Page
Contact information:	Please Login to View Page
Bid Documents:	Please Login to View Page

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Department of Buildings and General Services

Office of Purchasing & Contracting

133 State Street, 5th Floor | Montpelier VT 05633-8000

802-828-2211 phone |802-828-2222 fax

http://bgs.vermont.gov/purchasing

Agency of Administration

SEALED BID

REQUEST FOR PROPOSAL

Cigarette Tax Stamps

ISSUE DATE

QUESTIONS DUE

RFP RESPONSES DUE BY

January 30, 2026

February 10, 2026 – 4:30 PM (EST)

February 20, 2026 – 4:30 PM (EST)

PLEASE BE ADVISED THAT ALL NOTIFICATIONS, RELEASES, AND ADDENDUMS ASSOCIATED

WITH THIS SOLICITATION WILL BE POSTED AT:

http://www.bgs.state.vt.us/pca/bids/bids.php

AND

https://vtbuys.suppliers.vermont.gov/page.aspx/en/usr/login?ReturnUrl=%2fpage.aspx%2fen%2fbuy%2f

homepage

THE STATE WILL MAKE NO ATTEMPT TO CONTACT INTERESTED PARTIES WITH UPDATED

INFORMATION. IT IS THE RESPONSIBILITY OF EACH BIDDER TO PERIODICALLY CHECK THE

ABOVE WEBPAGEFOR ANY AND ALL NOTIFICATIONS, RELEASES AND ADDENDUMS

ASSOCIATED WITH THIS SOLICITATION.

STATE CONTACT:

E-MAIL:

Stefanie Malmstein, State Commodity Procurement Administrator

SOV.ThePathForward@vermont.gov

1. OVERVIEW:

1.1. SCOPE AND BACKGROUND: Through this Request for Proposal (RFP) the Office of Purchasing &

Contracting, on behalf of the Tax Department (hereinafter the “State”) is seeking to establish contracts

with one or more companies that can provide Cigarette Tax Stamps.

1.2. CONTRACT PERIOD: Any contract(s) arising from this solicitation will be for a period of two years with

an option to renew for up to three additional twelve-month periods. The State anticipates the start date for

such contract(s) will be January 15, 2026.

1.3. SINGLE POINT OF CONTACT: All communications concerning this solicitation are to be addressed in

writing to the State Contact listed on the front page of this solicitation. Actual or attempted contact with

any other individual from the State concerning this solicitation is strictly prohibited and may result in

disqualification.

1.4. QUESTION AND ANSWER PERIOD: Any bidder requiring clarification of any section of this solicitation

or wishing to comment on any requirement of the solicitation must submit specific questions in writing no

later than the deadline for question indicated on the first page of this solicitation. Questions may be e-

mailed to the point of contact on the front page of this solicitation. Questions or comments not raised in

writing on or before the last day of the question period are thereafter waived. At the close of the question

period a copy of all questions or comments and the State's responses will be posted on the State’s web

site http://bgs.vermont.gov/purchasing/bids. Every effort will be made to post this information as soon as

possible after the question period ends, contingent on the number and complexity of the questions. All

information provided by vendors during this process will be public and bidders shall not provide

confidential information, except as described in 5.1 below.

1.5. CHANGES TO THIS SOLICITATION: Any modifications to this solicitation will be made in writing by the

State through the issuance of an Addendum to this solicitation and posted online at

http://www.bgs.state.vt.us/pca/bids/bids.php . Modifications from any other source are not to be

considered.

1.6. CONTRACT QUANTITY: Any quantities stated in the detailed requirements of this solicitation are

estimates only based on prior usage, and are annual quantities, unless otherwise stated. Actual

purchases may be higher or lower depending on the State’s needs.

2. DETAILED REQUIREMENTS:

2.1. QUANTITIES: Quantities under this contract equal a projected annual usage, additional stamps could

be needed. Approximately 40,000,000 packaged in one of the below methods.

2.1.1. Approximately 9,000,000 Heat Process Cigarette Stamps – 20 packs to be furnished in 15

across rolls of 30,000. Shipments are to be made upon request by purchase order.

Each stamp is to be the same design, size, shape and color (stamp – yellow, border – blue, and

text on roll number is black).

2.1.2. Approximately 5,000,000 Heat Process Cigarette Stamps – 25 packs to be furnished in a 10

across rolls of 30,000. One purchase order for the entire amount will be placed during the contract

period.

2.2. TYPE AND APPLICATION: All stamps furnished under these specifications must be genuine layer-

built decal stamps of approved quality, consisting of not less than five impressions including safety tint

lettering, and may be produced by the lithograph and/or intaglio process.

2.2.1. The stamps shall be for machine application which will be used to a receiving surface with

heat and must adhere satisfactorily to cellophane, paper, foil, metal, glass and all surfaces for

which these are intended.

2.3. SIZE, DESIGN AND COLORS: Each stamp is to be of the same design, size, shape and color

(stamp – yellow, border – blue, and text on roll number is black). Stamps should be overprinted with legible

code of not less than five alphanumeric characters.

2.4. PAPER: Stamps shall be made on unique, safety tinted; mill controlled colored paper furnished by the

contractor. The name of the manufacturer of paper stock is to be furnished with the bid.

Revised August 21, 2025

Page 2 of 24

2.4.1. The base paper acts only as a carrier for the stamp. It is temporary in nature and discarded after

the stamp is applied to the cigarette package. All paper must be processed with a special safety tint

reading with copy to be specified by the Vermont Department of Taxes, and must be so arranged and

printed that it cannot be photographed on the colored paper.

2.4.2. The safety tint lettering stamps must be so printed as to appear on the face of the stamp and

also appear on the paper between the stamps. The safety tint shall transfer with the machine-applied

stamps and the lettering extending beyond the edges of the stamp must also transfer with the stamp.

2.4.3. All spoiled sheets and seconds to be strictly accounted for and kept under lock and key and

destroyed in the presence of a duly authorized agent of the Vermont Department of Taxes or affidavit

rendered to that effect by the contractor.

2.5. LAYOUT AND PACKING: Stamps are to be furnished in rolls containing 30,000 stamps. Each roll is

to print ascending and descending numbers on the carrier paper on the same side as the stamps for

accounting purposes. Each roll is to be packed in a cardboard box, the box to be securely sealed and

labeled showing quantity, denomination, and roll number. Twenty-five boxes are to be packed in

corrugated containers, each carton to be securely sealed and labeled showing quantity, denomination, and

numbers of rolls contained therein. Packaging to be at no extra cost to the Department.

2.6. PROTECTION: All stamps and paper must contain proven protective features to guarantee against

illegal reproduction. Contractor shall submit a separate confidential detailed statement to the Vermont

Department of Taxes, explaining fully his system for the protection of the State against unlawful

reproduction and his method by which such reproduction can be detected by inspectors of the State. The

confidential statement shall not be made a part of the bid, but must be submitted to the Commissioner of

the Vermont Department of Taxes on or before the effective date of the contract.

2.7. PRODUCTION CONTROL: This contract must be accompanied by a full explanation of the

precautions which the manufacturer proposes to observe within their plant and organization to protect the

State of Vermont against unlawful production of the stamps. The explanation of precautions shall not be

made a part of the bid, but must be submitted to State contact listed on the front page, addressed to the

Commissioner of the Vermont Department of Taxes on or before the effective date of the contract. The

explanation of precautions must be a letter, which can include attachments, signed and dated by the

bidder, to be attached to the resulting contract.

2.7.1. Contractor must designate the means by which they propose to guard against the loss of

stamps both during the process of manufacture as well as during storage. A secure depository

approved by the State shall be installed or designated by the manufacturer for the drawings,

stamps, etc., when in use or in the case of stamps, while awaiting shipment.

2.7.2. All work under this contract including all coatings on paper for such stamps must be

performed wholly within the premises of the contractor. No part of this contract may be sublet or

performed in any other establishment. No assignment of this contract in whole or in part may be

made without the consent of the State. Contractor shall, if required, furnish evidence satisfactory to

the State that they possess the facilities, tools, machinery, equipment and resources necessary to

efficiently and promptly carry out the terms of the contract.

2.8. ACCOUNTING: Full and accurate account must be made to the State for all spoiled paper, stamps,

etc. Plates, designs, patterns, films, negatives, cylinders and the like will be used solely for this order and

subsequent orders, if any. Any such plates, designs, films, etc., when not in use for the manufacture of

these stamps must be locked in a safe or vault upon completion of this order or at the termination of this

contract, or if the State so desires, all such plates, designs, films, etc. will be sent to the Vermont

Department of Taxes for destroying.

2.8.1. Complete and accurate accounting of each and every stamp and all special paper used for

these stamps, and any other material in their production must be given to authorized representative

of the State upon demand at any time. Inspection of the plant and of all records and books of

account will be allowed by the contractor at any time upon demand of authorized representatives of

the State.

2.8.2. At all times the contractor will supervise closely the production of these stamps and will not

permit employees or any others to enter or leave the building or that part of the building where

Revised August 21, 2025

Page 3 of 24

stamps are being produced until first assured that all materials used in their production are properly

accounted for. Every precaution will be taken to make certain that these stamps are not

counterfeited or produced anywhere for any other purpose than the use of the State of Vermont.

All shipments must be made by bonded carrier, insured and prepaid, and contractor will be

responsible for safe and proper delivery.

2.9. STAMPS APPLYING MACHINES: Contractor must warrant that, during such period as the State shall

utilize contractor's stamps, they will, if necessary make available to authorized distributors by means of sale

or lease, at a reasonable rental fee, machines designed to apply contractor's stamps, and that said

machines and stamps will be designed and manufactured so as to assure proper adhesion and high speed

application of stamps.

2.9.1. In the event the contractor shall sell a machine to an authorized distributor, the contractor

and distributor shall enter into an agreement whereby they jointly guarantee to the Vermont

Department of Taxes, that the machine sold will continuously remain in the possession of the

Department of Taxes prior to the removal of the machine from the premises of the distributor.

2.9.2. Contractor must guarantee to furnish and install a sufficient number of stamp applying

machines, including related equipment such as power carton opener, carton closers and gluers,

throughout the State, when and where needed as determined by the Department of Taxes.

2.9.3. Machines must be so constructed that they mark the stamps as they are applied to the

packages of cigarettes, in a manner that identifies the stamps with the particular machine that

applied them. The method of marking the stamps must meet with the approval of the Department

of Taxes.

2.9.4. Contractor must guarantee that the stamps for machine application will apply in a satisfactory

manner and at a high rate of speed within the machines throughout the State.

2.9.5. During such period as the State shall utilize contractor's stamps for machine application,

contractor must agree to service and maintain his machines in a timely manner and also any

additional machines contractor may lease to distributors.

2.9.6. In the event the contractor shall sell a machine to an authorized distributor, contractor

agrees, during such period as the State shall utilize contractor's stamps, to make available to such

machine purchaser, at a reasonable charge, service for the repair and maintenance of the machine

in order to keep the machine in proper operating condition.

2.9.7. Contractor must guarantee that the tax stamps and the stamp applying machine, including

related equipment, that bidder proposed to furnish, and their sale and use will not infringe any

United States patent. Contractor must guarantee to defend, protect and hold harmless the State of

Vermont and all other persons, firms or concerns, using or applying the tax stamps and using the

stamp applying machines on its behalf, against all legal actions and from all damages, claims,

demands, expenses and attorney's fee, for actual or alleged infringement of any United States

patent or violate any antitrust laws, by reason of the purchase and use of the state stamps and use

of the stamp applying machines.

2.10. PAYMENT: Each partial shipment of stamps shall be invoiced separately. Payment of invoice will be

made according to customary State Procedure. Payment for stamps will be made for each individual

delivery as ordered and received by the Department of Taxes. Upon termination of the contract, the vendor

is to verify with the Tax Department the quantity of stamps yet to be delivered. The State reserves the right

to delay taking physical possession of these remaining stamps for up to 180 days following expiration.

2.11. PROOFS: Contractor shall submit three proofs showing design, color and size of stamps and shall

have the written approval of the Commissioner of Taxes before proceeding with manufacture of the

stamps.

2.12. INSPECTION: The contractor must maintain a rigid inspection for the elimination of imperfect sheets

of stamps and for other violations of these specifications the Tax Commissioner reserves the right to reject

any stamps which, upon receipt inspection, do not conform to the specifications or which are readily

transferable to cellophane, or not sufficiently adhesive or satisfactory in any other respect.

Revised August 21, 2025

Page 4 of 24

2.12.1. The manufacturer is to pay the return transportation of the rejected stamps and to replace

all such stamps at no expense to the State. The contractor shall give to the Tax Commissioner or

his authorized representative free access to his plant at all times during the period of manufacture

and/or storage and shall afford to such representative every facility for inspection of the work in

process.

2.13. OVER-RUN OR UNDER-RUN: The over-run or under-run shall not exceed 10%. All partial sheets of

stamps and/or any damaged or imperfect stamps will be destroyed in the presence of the fully authorized

representative of the Tax Commissioner. The Tax Commissioner reserves the right to authorize the

manufacturer to destroy these damaged or imperfect stamps and to evidence such destruction by affidavit.

2.14. INSURANCE: Each Shipment must be insured at its full manufactured value.

3. GENERAL REQUIREMENTS:

3.1. PRICING: Bidders must price the terms of this solicitation at their best pricing. Any and all costs that

Bidder wishes the State to consider must be submitted for consideration. If applicable, all equipment

pricing is to include F.O.B. delivery to the ordering facility. No request for extra delivery cost will be

honored. All equipment shall be delivered assembled, serviced, and ready for immediate use, unless

otherwise requested by the State. No charge for packing, shipping, or for any other purpose will be

allowed over and above the price quoted. Prices quoted for printing are to include printing, binding,

wrapping, and packaging.

3.1.1.Prices and/or rates shall remain firm for the initial term of the contract. The pricing policy submitted by

Bidder must (i) be clearly structured, accountable, and auditable and (ii) cover the full spectrum of

materials and/or services required.

3.1.2.Cooperative Agreements. Bidders that have been awarded similar contracts through a competitive

bidding process with another state and/or cooperative are welcome to submit the pricing in response

to this solicitation.

3.2. STATEMENT OF RIGHTS: The State shall have the authority to evaluate Responses and select the

Bidder(s) as may be determined to be in the best interest of the State and consistent with the goals and

performance requirements outlined in this solicitation. The State of Vermont reserves the right to obtain

clarification or additional information necessary to properly evaluate a proposal. Failure of bidder to

respond to a request for additional information or clarification could result in rejection of that bidder's

proposal. To secure a project that is deemed to be in the best interest of the State, the State reserves the

right to accept or reject any and all bids, in whole or in part, with or without cause, and to waive

technicalities in submissions. The State also reserves the right to make purchases outside of the awarded

contracts where it is deemed in the best interest of the State.

3.2.1.Best and Final Offer (BAFO). At any time after submission of Responses and prior to the final

selection of Bidder(s) for Contract negotiation or execution, the State may invite Bidder(s) to provide a

BAFO. The state reserves the right to request BAFOs from only those Bidders that meet the minimum

qualification requirements and/or have not been eliminated from consideration during the evaluation

process.

3.2.2.Presentation. An in-person or webinar presentation by the Bidder may be required by the State if it

will help the State’s evaluation process. The State will factor information presented during

presentations into the evaluation. Bidders will be responsible for all costs associated with providing

the presentation.

3.3. CONFLICTS OF INTEREST:

3.3.1.Organizational Conflict of Interest (OCOI): An OCOI arises when a bidder as a business entity has

interests (for example, customers, partners, contracts) that could undermine, or reasonably be

perceived to undermine, its faithful and unbiased performance of a contract with the State that may

result from this solicitation.

Revised August 21, 2025

Page 5 of 24

This page summarizes the opportunity, including an overview and a preview of the attached documents.

TITLE	QUESTIONS DUE	ANSWERS POSTED	DUE DATE	NO POSTING AFTER
Cigarette Tax Stamps	02/10/2026 04:30PM		02/20/2026 04:30PM

Cigarette Tax Stamps

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