Statement of Work for
Cigarette Tax Stamp Vendor
ISSUING OFFICE:
COMMONWEALTH OF PENNSYLVANIA
DEPARTMENT OF GENERAL SERVICES
INVITATION FOR BID NUMBER:
6100064552
DATE OF ISSUANCE
01/05/2026
10:00 AM EST
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1. CONTRACT SCOPE/OVERVIEW:
The Commonwealth of Pennsylvania (CoPA), Department of Revenue (DOR),
requires the manufacturing and supply of secure, high-quality cigarette tax stamps
that comply with all state requirements and ensure the Commonwealth’s proper
tracking of tobacco product sales within the Commonwealth.
This Statement of Work (SOW) establishes the basis and requirements for the
manufacturing and supply of secure, high-quality cigarette tax stamps. The selected
vendor will be required to provide a written, signed Certification of Eligibility
(Attachment 1 – Certification of Eligibility Requirements) to certify its ability to comply
with and fully satisfy all requirements of this solicitation.
The contract awarded will be comprised of this SOW, all attachments, and the
Commonwealth Terms and Conditions, which collectively govern the contractual
relationship between the parties.
Department of General Services will be issuing a pre bid conference on 01-14-2026
at 2:00 pm EST via Microsoft Teams. All interested parties should contact Dan Covell
via email at dcovell@pa.state to RSVP by close of business on 01-12-2026. The
purpose of this conference is to provide opportunity for clarification of the IFB.
Bidders should forward all questions before the pre-bid conference. Bidders may
also ask questions at the conference. In view of the limited facilities available for the
conference, Bidders should limit their representation to two individuals per Bidder.
The pre-bid conference is for information only. Any answers furnished during the
conference will not be official until they have been verified, in writing, by the Issuing
Office. Failure to attend the pre-bid conference shall disqualify a Bidder from
consideration for the contract to be awarded from this IFB, and its bid will be
returned unopened.
A. BACKGROUND
DOR currently utilizes cigarette tax stamps as part of its revenue collection and
enforcement framework to ensure compliance with state tobacco tax laws. These
tax stamps serve as both a visual indicator of tax payment and a deterrent
against illicit trade in untaxed tobacco products.
The DOR is seeking to procure secure, high-quality tax stamps incorporating
multiple overt and covert security features to prevent counterfeiting. These
stamps are used by licensed Cigarette Stamping Agents (“CSAs”) to affix to
cigarette packs before distribution and sale within the state. DOR has requested
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to have two options named in this Invitation for Bid (IFB). Option 1, referenced as
Direct Shipment, is the production and direct shipment of stamps to Harrisburg,
PA, FOB Destination. Option 2, referenced as Additional Services, requires the
vendor to produce, warehouse and ship stamps directly to both CSA locations
collect and to Harrisburg, PA, FOB Destination. Additional information can be
found under section B. Scope of Work, Additional Services. For evaluation
purposes, the cost for Option 2 will be added to the Cost for Option 1 to
determine the overall cost if DOR opts to proceed with Option 2. If DOR selects
Option 1, only the costs submitted for Option 1 will be evaluated.
The Pennsylvania DOR seeks to ensure a seamless transition from its current
contracted solution to avoid disruption in the required supply of tax stamps. The
continuation of the CoPA program is essential for maintaining compliance,
preventing tax evasion, and securing tobacco tax revenues, which contribute
significantly to CoPA’s funding and public health initiatives.
B. SCOPE OF WORK
OPTION 1- Direct Shipment
DOR seeks a vendor who shall manufacture cigarette tax stamps incorporating
the required security features (e.g., holograms, microprinting, color-shifting inks,
etc.). The qualified vendor shall comply with all requirements in the SOW and
with the CoPA Terms and Conditions contained in Invitation for Bid 6100064552
and meet all attached specifications. All bidders are required to provide pricing
for Option 1.
o General specifications for all Tax Stamps are located in Attachment 2
All cigarette tax stamps shall be shipped directly to the Department of General
Services (DGS) Warehouse located in Harrisburg, Pennsylvania. Delivery shall
be made on an FOB Destination basis. The Contractor shall be responsible for all
freight charges, as well as the risk of loss or damage, until the shipment is
received and accepted by the DGS Warehouse in Harrisburg, Pennsylvania.
o Refer to Attachment 2 – Specifications for All Tax Stamps.
o Refer to Attachment 3 – Item 11 for PA State specifications.
o Refer to Attachment 4 – Item 9 for Philadelphia specifications.
OPTION 2- Additional Services
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DOR is also seeking pricing with respect to the shipping logistics and
warehousing methods of the tax stamps as described below. If these additional
services are selected, all stamps will be directly shipped to both CSAs and the
DGS Warehouse. Stamps shipped directly to CSAs will be shipped collect.
Stamps shipped to the DGS Warehouse in Harrisburg, PA, will be shipped FOB
Destination. All bidders are required to provide pricing for Option 2.
Eligible bidders are required to submit pricing for all items listed under both the
Direct Shipment and Additional Services tabs within Attachment 5 – Cigarette Tax
Stamp 2026 Cost Submittal Sheet. The additional service charge will be in
addition to the cost of the stamp production found on Tab 2, Option 1 – Direct
Shipment (Rolls & Sheets).
o Fulfillment Services- The Storage, Packing and Shipping of Tax Stamp
Material to DGS Warehouse & Cigarette Stamping Agents.
The selected vendor shall maintain requisite inventory of cigarette tax stamps
and deliver the cigarette tax stamps directly to qualified CSAs & DGS Warehouse
in accordance with the Eligibility Requirements as outlined in Attachment 1.
Pricing for the additional services must include the following costs –
1. The physical storage of the stickers.
2. The picking, packing and cartoning of the tax stamps for shipment from the
vendor’s warehouse.
3. Preparing and creating the shipping label.
4. Any costs incurred by the vendor for printing cigarette tax stamps in
advance of shipment shall be borne solely by the vendor. The vendor shall
not invoice DOR for such tax stamps until the corresponding shipment has
been delivered and accepted by the CSA’s.
5. Stamps shipped to CSA's will be shipped collect and stamps shipped to
DGS Warehouse will be FOB Destination.
6. The cost of furnishing the reporting required by DOR
o Refer to Attachment 2 – Specifications for All Tax Stamps.
o Refer to Attachment 3 – Item 11 for PA State specifications.
o Refer to Attachment 4 – Item 10 for Philadelphia specifications.
A. DIRECT SHIPMENT OF TAX STAMPS TO CSAs & DGS WAREHOUSE:
The DOR is requesting vendors provide optionality in shipping including a
process for shipping tax stamps directly to its licensed CSAs. Vendors who
offer this service if selected by DOR will receive an electronic file of orders
daily and shall ship the tax stamps within one business day of receiving the
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order. The electronic file will contain a shipping account number the vendor
shall utilize for shipping label/payment purposes.
Stamps shipped to CSAs will be shipped collect and stamps shipped to DGS
Warehouse located in Harrisburg, PA will be FOB Destination.
Vendor shall allow DOR to purchase tax stamps outside of the direct
shipment process. DOR shall issue written order requests to the vendor for
the type and quantity of rolls/sheets of tax stamps needed no later than 6
(six) weeks prior to the approximate delivery date when direct to CSA is not
utilized. The vendor shall be responsible for the safe and proper delivery of
tax stamps as specified.
B. FILE TRANSFER SPECIFICATIONS FOR DIRECT TO CSA SHIPMENT
OPTION:
DOR uses GENTAX (“PATH”) integrated tax software and GlobalScape as a
secure file transfer application. The vendor shall be able to integrate with
PATH and GlobalScape for DOR to be able to securely transmit and receive
orders, provide electronic reporting, and to conduct other business related to
this contract.
The vendor shall be able to receive and transmit files electronically to
facilitate the communication of new, confirmed, and shipped orders. In
addition, if exceptions occur during order processing, a file shall be provided
to DOR documenting what exceptions occurred. If no orders exist, a blank
order file will be produced which shall be confirmed by the vendor. File
specifications are found in Attachment 6- Cigarette Files and Fields.
The vendor shall meet the following requirements for GlobalScape secure
file transfer:
• Vendor shall be able to send and receive files via a GlobalScape
secure FTP connection.
• Vendor shall have an FTP client capable of using SFTP with SSH key
authentication.
• Vendor shall have the ability to encrypt and decrypt files using the
OpenPGP standard.
• Vendor shall be able to accept multiple files per day.
• Vendor shall be able to provide a response file for each file sent
containing key information related to each purchase order(s).
• Vendor shall transmit tracking information back to DOR.
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This is the opportunity summary page. It provides an overview of this opportunity and a preview of the attached documentation.