Lottery Technology Enterprises, the firm that won the bidding for the District's lucrative daily numbers contract only to see the selection rescinded, has resubmitted virtually the same proposal in the reopened bidding, one of the firm's officials said yesterday.
But Marion (Duke) Greene, president of IBS Digit Corp., the only other company to file a new bid, said his proposal has been revamped significantly and now includes as investors 15 "successful, self-made black businessmen and women" in an effort to persuade the D.C. Lottery Board that it is a broad-based minority-controlled enterprise.
The third firm that originally bid on the contract, Columbia Gaming Services Inc., did not submit a bid by Wednesday's deadline. One of its principals, Control Data Corp., lost a last-minute court battle to have the deadline extended.
Lottery board officials began studying the two proposals yesterday and hope to make a selection by mid-June after extensive analysis of, among other things, how much each firm will charge to operate the game and the extent of the minority participation in each company. The board has said it will give equal weight on a 100-point scale to the cost and minority-participation considerations.
A source said that Lottery Technology's bid calls for the company to receive just under 4 percent for the first $2 million in lottery revenues each week, compared with IBS Digit's bid of more than 5 percent. Both firms will have a final chance to improve on their bids before the selection is made.
The lottery board has estimated that more than $100 million will be wagered in the game during the first year; a 4 percent bid would mean the contract would be worth $4 million. The game, now expected to begin in October, will be identical to the three-digit game currently played in Maryland.
The lottery board in March selected Lottery Technology as the firm to run the game, but after a court fight, the board reluctantly agreed to a request by Mayor Marion Barry to reject all three bids it had received and solicit new ones. Barry and others complained that Lottery Technology did not meet the city's requirement for substantial minority involvement.
As in its first bid, Lottery Technology is a group that includes Gaming Systems Corp., a Providence, R.I., computer firm, and four minority-controlled firms from the District that would perform various functions in operating the lottery, according to Robert Stern, Gaming Systems' board chairman.
Stern said that Lottery Technology's second proposal is "substantially unchanged," but that it does include contracts to show specific amounts of money that the minority partners and subcontractors will be paid. Lottery Technology's earlier bid lacked such contracts, prompting charges that it was a black front for the white ownership of Gaming Systems.
Stern said that about 72 percent of the revenue generated by the contract would go to minorities and that, as before, 60 percent of any profits would accrue to the minority partners.
In its earlier bid, IBS was part of D.C. Data Co., which also included a division of General Instrument Corp. IBS at that time was structured so that Greene and William B. Fitzgerald, president of Independence Federal Savings and Loan Association and a confidant of Barry's, controlled all but 15 percent of the firm.
In the newest proposal, Greene said, he and Fitzgerald control 52 percent and have sold the remainder to the 15 black investors. He said that General Instrument would "have a role" in the operation but that it "has no equity at all."
The new investors include Cecile D. Barker, board chairman of OAO Corp., a Greenbelt computer firm; Cleveland L. Dennard, president of Atlanta University and former president of Washington Technical Institute, one of the predecessor institutions to the University of the District of Columbia; Jeanus B. Parks, a Howard University law professor, and Malcolm Beech, part-owner of the Foxtrappe social club. The investors have each contributed $2,000 or $5,000 toward the start-up of the firm, a source said.