REQUEST FOR PROPOSAL FOR ADVERTISING SERVICES DOR17001/Advertising Issued July ...

58 Pages·2016·0.51 MB·English

REQUEST FOR PROPOSAL FOR

ADVERTISING SERVICES

DOR17001/Advertising

Issued July 26, 2016
Table of Contents

GLOSSARY 4

I. OVERVIEW AND GOALS 6
A. Overview
1. Purpose 6
2. Standards 6
3. Minimum Qualifications 7
4. Contract Term 7
B. Goals 8

II. ADMINISTRATIVE 9
A. Issuing Office 9
B. Invitation to Submit Proposals 9
C. Purpose 9
D. Scope 10
E. Schedule of Activities and Timeline 10
F. Inquiries 10
G. Pre-Proposal Conference 11
H. Modification or Withdrawal of Proposals 11
I. Proposal Submission 11
J. Addendum or Supplement to Request for Proposal 12
K. Oral presentation/Site Visits 12
L. Acceptance of RFP Terms 12
M. Protested Solicitations and Awards 13
N. Confidential/Proprietary Information 13
O. RFP Response Material Ownership 14
P. Proposal Prices 14
Q. Selection of Proposal – Notice 14
R. Award of Contract 14
S. Standard Contract 14
T. Acceptance of Proposal Content 15
U. RFP Cancellation 15
V. State Ownership of Contract Products/Services 15
W. Incurring Costs 15
X. Non Discrimination 15
Y. Rejection of Proposals 15
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Z. Parent Company 15
AA. Press Contacts/News Releases 15
BB. Certification of Independent Price Determination 16
CC. Public Disclosure of Proposal Information 16
DD. Subcontractors and Consultants 16
EE. Conflicts of Interest 17
FF. Gifts/Gratuities 17
GG. Required Information for Investigations 18
HH. Litigation 19
II. Bonding 19

III. BACKGROUND IN THE COLORADO LOTTERY 20
A. History 20
B. Business, Administration and Marketing Plans 20
C. Retail Network 21
D. Game Products 21
1. Scratch 20
2. Jackpot Games 22
a. Lotto 24
b. Cash 5 24
c. Powerball 25
d. Mega Millions 25
e. Pick 3 26
f. Lucky for Life 26
g. Other Games 26
E. Sales and Proceeds History 27
F. Public Opinion 27
G. Lottery Players 28
H. Lottery Website 30
I. Marketing 30

IV. STATEMENT OF WORK 34
A. Advertising Services 34
B. Public Relation Services 36
C. Procurement of Goods and/or Services 36
D. Additional Contractor Responsibilities 40
E. Compensation 42

V. OFFEROR RESPONSE 45
A. Purpose of Offeror Response Section 45
B. Proposal Submission Requirements 45
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C. Compliance with RFP Requirements 46
D. Identifying Information 46
E. Offeror Employee and Owner Qualifications 46
F. Experience of the Offeror 47
G. Strategic and Service Capabilities 51
H. Business Problem Solutions 52
I. Case Study and Samples of Work 53
J. Site visit/Presentation 54
K. Basic Compensation (Monthly Fee) 54

VI. PROPOSAL EVALUATION 56
A. Overview 56
B. Evaluation Process 56
C. Basis for Award 57

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GLOSSARY

The Lottery anticipates those responding to this RFP may be individuals,
companies or corporations proposing the services individually or in conjunction
with others and/or contractors and/or subcontractors. Therefore, the use of the
terms “you,” “your,” “Contractor” and “Offeror” in the following sections may be
read in individual or collective terms, refer to a company and/or its principals, and
in all cases refer to the entity responding to the RFP.

Apparent Successful Offeror means the Offeror that has been selected, based
upon the evaluation of all responsible proposals, to be the primary Contractor,
but for whom financial and security investigations have not yet been completed.

Award means acceptance of a proposal and may include the presentation of a
proposed written contract.

BEST (Building Excellent Schools Today) means the program established in
2008 with the signing of C.R.S.22-43.7, BEST provides an annual amount of
funding in the form of competitive grants to school districts, charter schools,
institute charter schools, boards of cooperative educational services, and the
Colorado School for the Deaf and the Blind. BEST funds can be used for the
construction of new schools as well as general construction and renovation of
existing school facility systems and structures

Colorado Division of Parks and Outdoor Recreation means Colorado Parks
and Wildlife who manages the state parks system and the wildlife of the State of
Colorado.

Contractor means the Offeror who is awarded the Contract resulting from this
RFP. The term Contractor shall apply to the Successful Offeror after the
Contract has been awarded.

Department means Colorado Department of Revenue

GOCO means Great Outdoors Colorado Trust Fund

Jackpot Games / On-line Games means Lottery games purchased on the
Lottery system terminals at retail stores that involve matching numbers
generated by random drawing. Current jackpot games offered in Colorado are
Lotto, Cash5, Match Play, MegaMillions, Powerball, Pick 3, and Lucky for Life.

Lottery Contract Manager means individual Lottery staff member assigned to
manage the awarded contract and vendor performance.

Mark up means invoiced cost of goods and/or services added as a percentage to
actual net cost.
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Offeror means an entity submitting a proposal as a result of this RFP that is
responsive to RFP requirements.

PSA means Public Service Announcement.

Retailer means a sales agent for Lottery products.

State of Colorado may also mean “Department”, “Department of Revenue”, or
“Lottery”

Subcontractor means one not in the employment of the Contractor performing
services stated in this RFP under separate contract(s) with the Contractor.
Subcontractors have no contractual relationship with the State of Colorado.

Successful Offeror means the Apparent Successful Offeror who, having passed
the financial and security investigations, is offered the contract expected to result
from this RFP.

Retail Business Analysts (RBAs) means personnel who handle inventory
management, placement of point-of-sale items, merchandising, Scratch ticket
displays, retail training/education, new business recruitment and promotions.

Return on Investment (ROI) means a number which is usually expressed as a
percentage and is typically used for personal financial decisions, to compare a
company's profitability or to compare the efficiency of different investments. The
return on investment formula is: ROI = (Net Profit / Cost of Investment) x 100.

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I. OVERVIEW AND GOALS

A. Overview
1. Purpose

a. The Colorado Lottery (“Lottery”), a division of the Department of
Revenue (“Department”, “State”, “DOR”), is seeking competitive
proposals from qualified companies to select a full-service advertising
agency to work collaboratively as a partner in producing successful
advertising services to market all Lottery products. Contractor
responsibilities may include, but are not limited to:

• Strategic advertising and promotional planning
• Advertising and promotional creative planning
• Advertising and promotional creative production and execution
• Media planning and execution
• Assist in marketing planning
• Shared responsibility for cost control
• Promotional and events planning and execution
• Public relations counsel and execution
• Evaluation and recommendation of promotions and
sponsorships
• Research
• Procurement of goods and services

b. The Contractor’s primary responsibility is to develop and implement
marketing programs following direction provided by the Lottery. Public
relations assistance in support of overall marketing objectives is also
expected on an as-needed/limited basis. The Lottery traditionally
includes the Contractor in all phases of marketing planning and idea
generation in order to provide the Contractor with as much information
as possible and to benefit from the Contractor’s experience, creativity,
and knowledge. In addition to account managers, staff members
whose expertise is in creative development, media, promotion, and
research regularly participate in planning sessions.

2. Standards

a. The Lottery is an agency of the State of Colorado. As such, all
advertising efforts must be conducted in a manner commensurate
with the dignity of the State of Colorado and in the general welfare of
the people.

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b. The Lottery expects the Contractor to share its own high standards
for effectiveness, efficiency and quality of work, and its dedication to
the mission of the Lottery. To that end, the Contractor will work with
the Lottery to maintain the high degree of integrity and public trust that
Colorado citizens expect from the Lottery.

3. Minimum Qualifications

a. The Contractor shall have experience, within the past two years,
providing services similar in size and scope to this SOW (Statement of
Work). It is within the State’s sole discretion whether the Offeror’s
experience meets this and other qualifications.

b. The Contractor must have the resources available to satisfy the
requirements as set forth in this RFP and as proposed by the
Contractor.

c. Because of the extensive and direct communication, which is
critical to project success, it is essential that the Contractor have a
Colorado presence. The Contractor will have a Colorado office within
30 days of the contract commencement date, to include all resources
necessary to perform the services as identified in this RFP.

d. The Contractor must have capitalized billables of $5 million or more
average per year for the last three years.

4. Contract Term

a. Currently, the Lottery has a contract with Cactus Marketing
Communications for advertising services. The contract expires June
30, 2017.

b. One contract will be awarded for these products and services as a
result of this RFP. The initial contract period will commence on or
about July 1, 2017 and continue through June 30, 2020. The State, at
its sole discretion, may renew the contract for two (2) additional one-
year periods. Renewals are subject to the approval of the Lottery
Director and the Department. Such renewals will continue under the
same terms, conditions, and prices.

c. The contract will include language that requires the Contractor to
acknowledge and agree that the State does not grant the Contractor
exclusive rights to advertising services. In the event the State decides
that the acquisition of said products and services from another
Contractor is in the State’s best interest, the State reserves the right to
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contract and purchase said products and services and said action does
not infringe upon, nor terminate, the contract resulting from this RFP.

B. Goals
The Lottery expects to take advantage of cost savings and efficiencies that a new
solicitation may be able to identify. Specific goals include:

• Effective and creative programs
• Value-added opportunities
• Cost effectiveness and efficiencies
• Identification of additional means and methods not currently utilized by the
Lottery to increase ticket sales
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II. ADMINISTRATIVE

A. ISSUING OFFICE: This RFP is issued by the State of Colorado
acting by and through the Colorado Department of Revenue (“State”,
“Department”, “DOR”, “Lottery”). The Department Purchasing Agent is to
be the sole point of contact concerning this RFP. All official
communication must be done through the Department Purchasing Agent
at [email protected].

B. INVITATION TO SUBMIT PROPOSALS: The State no longer
“contacts” prospective Offerors about its solicitations. Rather, notices are
posted on the VSS (Colorado Vendor Self Service: (Colorado VSS )
system. Offerors who have an interest may submit a proposal in
accordance with terms of this RFP. Because of
the limited competition expected from VSS vendors on this solicitation, the
procuring agency intends to use both VSS and additional methods of
vendor notification and may make the specifications available to non-
registered vendors through additional means. However, quotes, bids, or
offers submitted by non-registered VSS vendors will not be opened or
considered (except as necessary to determine registration status) unless,
after examination of quotes, bids, or offers submitted by VSS registered
vendors, it is determined that there is not adequate competition among
VSS registered vendors. If adequate competition (as defined in Colorado
Procurement Rule R-24-103-101-01) exists among registered vendors,
quotes, bids, or offers from non-registered vendors will not be considered.
A vendor is considered registered if its registration is received in VSS prior
to the solicitation opening date and time.

C.R.S. Section 24-103-211 sets a Service-Disabled Veteran Owned Small
Business (SDVOSB) goal of at least 3% of all contracts by dollar value be
awarded to SDVOSBs who must be incorporated or organized in Colorado
or they must maintain a place of business or have an office in Colorado
and must be officially registered and verified as a SDVOSB by the Center
for Veteran Enterprise within the U.S. Department of Veterans Affairs.
See www.vip.vetbiz.gov. By responding to this solicitation, the successful
Offeror certifies that it shall comply with the provisions of C.R.S. Section
24-103-211. Only SDVOSBs that meet minimum specifications can be
considered for the percentage preference. SDVOSBs must submit
documentation of SDVOSB certification issued through the U.S.
Department of Veterans Affairs in their response to the solicitation.

C. PURPOSE: This RFP provides prospective Offerors with sufficient
information to enable them to prepare and submit proposals for
consideration by the State to satisfy the need for expert assistance in the
completion of the goals of this RFP.

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