City of Dallas Aviation System Advertising Program. Request for Proposal Process February 25, 2013
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2 City of Dallas Aviation System Advertising Program Request for Proposal Process February 25, 2013
3 Purpose To Review the Procurement Schedule and Process Methodology To Review the Details of the Request for Proposal (RFP) for Advertising Services Next Steps
4 Background Goal: Make Love Field, Dallas Executive Airport, and Dallas Vertiport the finest mid-size airport system in the nation Some of the efforts to achieve this goal include investing over $1 billion in new terminal and runway improvements Provide highest quality and best value advertising program to the traveling public Generating more Airport revenues Providing small and minority businesses opportunities 3
5 Background The Advertising Request for Proposal process will be conducted in the same manner as the food and beverage and retail procurements Multiple Pre-Proposal meetings Blasts from BDPS databases, TXDot DBE database, known advertising firms Multiple Packages Multiple Committees to evaluate criteria Same scoring criteria format 4
6 Background The Advertising locations have been unbundled to entice multiple proposals from both nationally recognized firms and local small business entities Package 1 Interior Terminal at Dallas Love Field and Dallas Executive Airport Package 2 Exterior Package at Dallas Love Field and Dallas Executive Airport Package 3 Parking Garage at Dallas Love Field Package 4 Roadways and adjacent medians of Dallas Love field and Dallas Executive Package 5 Exterior areas of Dallas Heliport property 5
7 Background Economics have been designed to encourage multiple proposals by emphasizing percentage concession fees, rather than Minimum Annual guarantees(mag) Only Package 1 will require first year minimum MAG of $750,000, minimum percentage of 50% and minimum capital of $300,000 All other packages will require minimum of 50% concession fee with subsequent years MAGs based on prior year percentage payments 6
8 Evaluation Criteria Economics/ Financial Return to City 30% Quality of Advertising Program 20% Experience and Capability 10% Financial Strength 15% Operations Plan 10% ACDBE Program 15% 7
9 Evaluation Criteria Economics/Financial return Proposals scored based on highest percentage of gross revenue share receiving maximum points Minimum Annual Guarantee (MAG) will be part of group 1 consideration Proposals awarded percentage of maximum points based on percentage difference between their financial offers and the high proposers All sales projections verified to be within normal range for advertising plan and projected passengers 8
10 Evaluation Criteria Quality of advertising program Quality of marketing plan Reasonableness of management plan Reasonableness of quality and quantity of display Clarity of advertising plan 9
11 Evaluation Criteria Experience and Capability Demonstrated Experience of three consecutive years in advertising sales in airports or similar facilities. Proven advertising sales track record with national, regional and local clients. Quality of the financial submittals Quality of the references 10
12 Evaluation Criteria Financial strength to deliver advertising plan and meet concession fee requirements Demonstrated financial reserves Quality of financial documentation, including audited statements Quality of financial references 11
13 Evaluation Criteria Operations Plan Experience of proposed management, sales, and operations staff Quality of inspecting, cleaning, and maintenance of fixtures and displays 12
14 Evaluation Criteria ACDBE Program ACDBE program plan proposed Proposers historical utilization of DBEs/ACDBEs Meaningfulness of the DBE/ACDBE participation and roles Acknowledgment of 49CAFR Part 23 requirements to meet goal or perform Good Faith Efforts to meet goal 13
15 Evaluation process and criteria 14
16 Evaluation process and criteria Three separate evaluation processes will be used for the advertising concession Financial Capability & Economics will be scored by formulas developed by Office of Financial Services Operational Plans, Brands, & Experience will be evaluated by staff committee ACDBE will be evaluated by Office of Business Development and Procurement Services using the City s BID process and scoring No single group or individual will score all portions of any proposal Formulas will be used wherever possible to maintain an objective evaluation 15
17 Evaluation process and criteria Quality of advertising program, Experience, and Operational Plan, evaluated by staff committees Mid management level, diverse 16
18 Evaluation process and criteria Financial capability evaluated by following formulas Investment Capacity Ratio deduction of points for lack of plan, documentation, and cash investment (4pts max) Ratio of capital on hand as a factor of monthly operating expense (3pts max) History of profitability points given for years of demonstrated profitability (3pts max) History of no canceled or forfeited surety(2pts) 17
19 Evaluation process and criteria ACDBE evaluated by ACDBE Plan or Policy submitted by the Proposer (2 total allowable points) Proposer s Historical Utilization of DBEs/ACDBEs in previous contracts (4 total allowable points) Meaningful roles and participation of ACDBE/DBE firms in the operation, structure of management/ownership, joint ventures and or secured contracts for goods and/or services, both existing and proposed (7 total allowable points) Acknowledgement of 49 CFR Part 23 Requirements (2 total allowable points) 18
20 Locations 19
21 Interior Locations First 26 Specified Approved Fixture Locations Love Field 6 two-sided digital pedestal fixtures 1 single sided digital pedestal fixtures 4 digital baggage claim wall units 14 Wall units (digital or static) 1 interactive visitor s center (IVC)/Phone Board monitors in 9 Flight Information Display banks Allowing proposers to propose additional locations, but must be approved prior to installation and cannot conflict or compete with art locations Dallas Executive Locations to be proposed 20
22 21
23 Interior Dallas Executive 22
24 Interior Love Field Three locations specified exclusively for Dallas Businesses Emphasis on Southern Dallas businesses Lower rent rates allowed Excluded from percentage rent Will allow advertising firms to ensure cost recovery Allows pricing flexibility for advertising firms to ensure locations can be sold Anticipated to be lighted Kiosks 23
25 24 24
26 Exterior Locations Potential locations, based on sales potential, could include: Cedar Springs Road from Mockingbird to the terminal Perimeter fence lines Sky Bridge from the garage to the terminal Cell phone lot Exterior jet bridges Airfield areas Exterior building areas of the Air Operations Area Executive Land adjacent to Highway 67; currently one bill board location Executive Terminal Building Interior 25
27 Exterior Package Location Example 26
28 Dallas Executive Airport Terminal Building Landside Exterior Terminal Building Airside Exterior Exterior Bill Board Location 27
29 Exhibit D 4 Dallas Executive Airport Terminal Location Bill Board Location 28
30 Garage Love Field Proposers can evaluate potential locations to propose based on sales potential, could include: Exterior garage walls facing Cedar Springs for banners or wraps Garage elevator doors Columns/steps 29
31 Parking Garage Exterior Location Examples Parking Garage Sliding Door Wrap Parking Garage Elevator Door Wrap 30
32 Dallas Vertiport 31
33 General terms 32
34 General terms Plan called for various contract terms to be negotiated Cancellation for convenience/compensation terms Providing for proper transition terms at end of contract Final ad content to be approved by City Evaluation of performance to include peer airport and vendor comparison to be added to other criteria Airport to retain right to display Dallas promotional material such as Dallas Convention and Visitors Bureau 33
35 Next Steps Issue the Request for Proposals Conduct outreach activities and vendor recruitment Conduct Preproposal conferences Receive Proposals - March March- April March April
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