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File #: 2017-0718   
Type: Contract Status: Agenda Ready
File created: 10/16/2017 In control: Executive Management Committee
On agenda: 1/25/2018 Final action:
Title: AUTHORIZE the Chief Executive Officer to: A. AWARD Contract No. PS41099B - License to Sell and Display Advertising on Metro Bus System to OUTFRONT Media Group, LLC for 10 years, generating an aggregate minimum guarantee of $262,250,000 revenue for Metro, subject to resolution of protest(s), if any; B. AWARD Contract No. PS41099R - License to Sell and Display Advertising on Metro Rail System to Intersection Parent, Inc. for 10 years, generating an aggregate minimum guarantee of $42,902,200 revenue for Metro, subject to resolution of protest(s), if any; and C. AMEND the FY18 Budget to add three (3) Full Time Employees (FTEs) to support implementation of digital advertising and the new revenue contracts; FTEs will be funded by revenues generated from No. PS41099B and No. PS41099R.
Sponsors: Board of Directors - Regular Board Meeting
Attachments: 1. Attachment A - Procurement Summary, 2. Attachment B - Financial Summary, 3. Attachment C - DEOD Summary, 4. Presentation
Meeting_Body
REGULAR BOARD MEETING
JANUARY 25, 2018

Subject
SUBJECT: METRO SYSTEM ADVERTISING (LICENSE TO
SELL AND DISPLAY ADVERTISING ON BUS AND
RAIL)

Action
ACTION: APPROVE ADVERTISING CONTRACT AWARDS

Heading
RECOMMENDATION

Title
AUTHORIZE the Chief Executive Officer to:

A. AWARD Contract No. PS41099B - License to Sell and Display Advertising on Metro Bus System to OUTFRONT Media Group, LLC for 10 years, generating an aggregate minimum guarantee of $262,250,000 revenue for Metro, subject to resolution of protest(s), if any;

B. AWARD Contract No. PS41099R - License to Sell and Display Advertising on Metro Rail System to Intersection Parent, Inc. for 10 years, generating an aggregate minimum guarantee of $42,902,200 revenue for Metro, subject to resolution of protest(s), if any; and

C. AMEND the FY18 Budget to add three (3) Full Time Employees (FTEs) to support implementation of digital advertising and the new revenue contracts; FTEs will be funded by revenues generated from No. PS41099B and No. PS41099R.


Issue
ISSUE
Metro's current system advertising contract (License To Sell and Display Advertising on Metro Bus and Rail System) expired December 31, 2017. The contract has been extended to allow time to finalize the approval and contract execution process. The procurement for new revenue-generating contracts began in April 2017 with a public Request for Proposals (RFP) process.

The agency's expanded advertising policy coupled with recent innovations in advertising allow for leveraging technology to enhance the customer experience. Staff is recommending the award of two separate contracts - one for bus advertising to a firm with extensive experience, longevity and solid performance, and one for rail advertising to a firm that offers innovative digital technology to enhance the customer experience through new amenities for Metro customers and the communities Metro serves.

Discussion
DISCUSSION

Background
Metro has an advertising policy as ...

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