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Report No: Meeting Date
15-049a
June14, 2017
Alameda-ContraCostaTransit District
STAFF
RE PO RT
TO:
ACTransit Board of Directors
FROM:
Michael A. Hursh, General Manager
SUBJECT
Transit Advertising ServicesAward
ACTION ITEM RECOMMENDED ACTION(s)
Consider authorizing the General Manager to enter into a contract with Lamar Transit, LLCto generate revenue by managing the sale of transit advertising on District assets. BACKGROUND/RATIONALE
The District entered into a contract with Titan 360 effective August 1, 2009 through June 30, 2014, for the purpose of generating revenues from the sale of transit advertising. The District elected to exercise three of the five one-year options available on its contract with Titan360 knowIntersection) extendingthe current contract untiIJune 30, 2017 The District issued a Requestfor Proposal (RFP17-1396) for Transit Advertising Services on
February28, 2017,solicitingproposalsfrom a total of 164 vendors.Of this total, 106 Disadvantaged Business Enterprise (DBE) firms were contacted, six of which were local. The
solicitationwas also publishedon the District'swebsite. A total of three responsivebid proposals was received. The table below indicates the criteria used to evaluate proposals PROPOSAL EVALUATION CRITERIA and WEIGHT
Evaluation Criteria
Weight
Responsiveness to RFP
Pass/Fai I
RevenueCompensation
40%
Qualification of the Firm and Staffing
30%
Work Plan/Project Understanding
15%
Value Added Features
10%
SmalILocaIBusiness Preference Points
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5%
Report No. 15-049a Page2 of 3
The evaluation panel consisted of two District staff members, and two outside evaluators: one from Valley Transportation Authority and one from Capitol Corridor. After thorough review of proposals,the panel evaluated and scored the proposals to determine the best value for the District. The panel's rankings are shown in the table below: PROPOSAL EVALUATION WEIGHTED SCORES
Evaluation Criteria
Total Possible Points = 400 Direct Media
Intersection
121.5
156.5
66
90
25.5
36
Value Added Features
11
15
SmalILocaIBusinessPreferencePoints
0
0
235.0
315.2
RevenueCompensation Qualification of the Firm and Staffing
Work Plan/Project Understanding
TOTAL WEIGHTED SCORES
The panelfound that Lamar demonstrated a superior ability to provide the best value over the life of the contract. Therefore, staff recommends award of a five-year contract with one five-
year option to Lamar Transit, LLC,to generate revenue by managingthe sale of transit advertising. BUDGETARY/FISCAL IMPACT The minimum five-year value of this contract is $5,800,000. This value allows the District to continue receiving advertising revenues to help offset operating costs, plus provides in-kind s.ervices to accommodateACTransitself-promotion at no cost for the District. In-kind services include production and installation of transit advertising on District vehicles,and a variety of media trade options such as broadcast, billboard, print, and digital advertising. A five-year option with a minimum contract value of $6,050,000 can be exercised by the District at its sole discretion, for a ten-year minimum contract value of $11,850,000. The District retains control and finalapprovalof alladvertising copy in accordance with Board Policy 451. ADVANTAGES/DISADVANTAGES
There is no known disadvantage to entering into this contract. Should the Board decide not to
approvethe contractaward,the Districtwould forfeit a pre-payment of $1,000,000 for the minimum annualguaranteed revenue in FiscaIYear 2018. ALTERNATIVES ANALYSIS
The District could choose not to award a contract, resulting in a loss of all advertising revenues untila new RFPis issued and a new contract awarded. Staff does not recommend this option.
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Report No. 15-049a Page3 of 3 !BlQ&KEt.AVANT BOAR0 ACTION/P01.ICiES
Staff Report 15-049: Solicitation for Advertising on District Vehicles
Approved by:
MichaeIA. Hursh,GeneraIManager
Reviewedby:
DeniseStandridge,GeneralCounsel Claudia Allen, Chief FinancialOfficer Sharon Dennis, Acting Director of Procurement and Materials Michele Joseph, Director of Marketing & Communications
Preparedby:
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