AGENDA ITEM NO.

Agenda Report
Attachments: Voting Requirements: 1. Contract Award Analysis Majority 2. D/M/WBE Details DATE: SUBJECT: November 13, 2012 Contract for the Marketing of DART's Station Naming Rights and Corporate Sponsorship Opportunities

RECOMMENDATION Approval of a resolution authorizing the President/Executive Director or his designee, subject to legal review, to award a five-year consulting/revenue-generating contract for the marketing of DART's station naming rights and corporate sponsorships to The Superlative Group for a total authorized amount not to exceed $99,483 for consulting services, plus 9.5% of new generated revenues. FINANCIAL CONSIDERATIONS . . Approval of this contract will generate new revenues for DART. This contract for Marketing of DART's Station Naming Rights and Corporate Sponsorship Opportunities is included in the Marketing and Communications Department's approved FY 2013 operating budget. Sufficient funding for this contract in the amount of $99,483 is included in both the Marketing and Communications Department's FY 2013 Operating Expense budget and the Operating Expense line item of the FY 2013 Twenty-Year Financial Plan.

BUSINESS PURPOSE . . . . Approval of this contract supports Board Strategic Priority V: Maximize Funding Resources. With this contract, DART seeks a consultant to review and evaluate DART's physical and intangible assets to identify their marketing potential and estimated value. Identified DART assets will be applied to the development of new revenue through the sale of naming rights and corporate sponsorships. The Contractor will develop a strategic marketing plan to identify and solicit potential customers, and will assist in negotiating and finalizing station naming and corporate sponsorship agreements.

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PROCUREMENT CONSIDERATIONS . . . . On July 7, 2012, a Request for Proposals (RFP) notification was sent to five firms. This will be an Indefinite Quantity/Indefinite Delivery services contract with a five-year base period and two, five-year options. By the closing date of August 10, 2012, three proposals were received. The Superlative Group was the highest ranked firm among the offerors. They possess the technical and financial capability to perform the contract. The pricing is determined to be fair and reasonable, and this firm is recommended for award. The contract award analysis is provided as Attachment 1.

D/M/WBE CONSIDERATIONS . . . The goal for this contract was established at 11% MWBE combination participation. The Superlative Group has committed to meet the goal. The M/WBE analysis and contractor's Equal Employment Opportunity (EEO-1) information are included in Attachment 2. The firm's actual EEO report is available upon request.

LEGAL CONSIDERATIONS . Section 452.055 of the Texas Transportation Code authorizes DART to contract for the provision of goods and services.

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Attachment 1
Dallas Area Rapid Transit Authority CONTRACT AWARD ANALYSIS (Request for Proposals) RFP NO. P-1022131 Contract Information A. Description: Station Naming Rights and Corporate Sponsorship B. Contractor: The Superlative Group C. Contract Number: C-1022131 D. Contract Amount: $99,483 + Generated revenue E. Contract Type: Revenue-generating F. Performance Period/Term of Contract: Five years G. Options Available: Two, five-year options H. Bond Requirement: None I. Liquidated Damages: None J. Funding Source: Local Solicitation Information A. Issue Date: July 7, 2012 B. Number of Firms Receiving the Solicitation: Five C. Date and Time for Proposal Receipt: August 10, 2012; 2:00 p.m. D. Proposals Received: Three--IMG Consulting, Inc.; Legends Sales and Marketing; and The Superlative Group E. Discussion of Proposal Evaluation Process: This was a negotiated procurement. A Source Evaluation Committee (SEC) was appointed to conduct proposal evaluations. Proposals were evaluated against the following criteria: Qualifications of the Firm Qualifications of Staff Work Plan Revenue Total 350 Maximum Points 200 Maximum Points 200 Maximum Points 250 Maximum Points 1000 Maximum Points

F. Discussion of Unacceptable Proposals: The SEC reviewed the information submitted and determined on September 6, 2012, that the proposal submitted by The Legends Sales and Marketing was unacceptable. The proposal did not contain enough information to clearly demonstrate to the SEC members that they can perform to the requirements outlined in Exhibit H, Statement of Work.

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Attachment 1

G. Proposal Scoring: Initial Scoring Average Technical Points ( 750 Max Points) 680 624 Proposed Price Phase 1 Est. % of Gross Revenue to DART Phase 2 85% 90.50% Est. % of Gross Revenue to DART 1st Option 85% 90.50% Est. % of Gross Revenue to DART 2nd Option 85% 90.50% Total Revenue Points Total Points

Firm

IMG Consulting Superlative Group Legends Sales and Marketing

$ 110,000 $ 124,950

235 250

915 874

Unacceptable; see paragraph F above

Clarifications were requested from IMG Consulting and The Superlative Group, which led to the each company conducting presentations. Both IMG Consulting and The Superlative Group were ultimately requested to submit Best and Final Offers (BAFO). Below are the results of the BAFOs. Best and Final Offers Average Technical Firm Points ( 750 Max Points) IMG Consulting Superlative Group 656 691

Proposed Price Phase 1

Est. % of Gross Revenue to DART Phase 2 86.5% 90.50%

Est. % of Gross Revenue to DART 1st Option 86.5% 90.50%

Est. % of Gross Revenue to DART 2nd Option 86.5% 90.50%

Total Revenue Points

Total Points

$99,000 $ 99,483

239 250

895 941

H. Negotiation Memorandum: Available for review in the contract file. I. Cost & Price Analysis: Prices were determined to be fair and reasonable based upon adequate competition from price proposals received and Best and Final Offers. As a result of negotiations, costs were lowered by $25,467 in consulting fees. J. Determination of Responsibility: Reference Check: Satisfactory Financial Responsibility Survey: Satisfactory Insurance Check: Yes Debarred/Suspended list: Not on the debarred/suspended list K. Protests Received: None L. Determinations Required: None Determination and Recommendation The Superlative Group is determined to be a responsible contractor that achieved the highest score considering technical and price factors. They have the capacity to perform this contract and are recommended for award.

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Attachment 2 Contract for Marketing of DART Station Naming Rights and Corporate Sponsorship Opportunities

MWBE Considerations The goal for this contract was established in 2012 at 11% MWBE combination participation. The Superlative Group has committed to meet the goal on all requirements of the contract utilizing the following certified MBE firm: MBE PARTICIPATION
VENDOR Legacy Resource Group LOCATION Dallas, TX ETHNICITY Black Male SERVICES Consulting Services AMOUNT $10,943 % 11.00%

TOTAL MBE PARTICIPATION(valuation phase):

$10,943

11.00%*

*NOTE: The goal for the assets review and valuation phase of the contract is based on the contract not to exceed amount of $99,483. The goal for the revenue generating phase of the contract will be based on the prime contractors generated fees and commission. If there are any changes to this amount, the original goal shall apply. The percentages and dollar amounts may remain level, increase or decrease depending on the circumstances. Summary of EEO-1 Report The Superlative Group is located in Cleveland, Ohio and employs 16 individuals. The following is an analysis of their EEO-1 report: NATIVE WHITE TOTAL Percentage AM. 0 9 11 68.75% 0 1 5 31.25% 0 10 16 100% 0% 62.50% 100%

ASIAN BLACK HISPANIC MALES FEMALES TOTAL PERCENTAGE 1 0 1 6.25% 0 4 4 25.00% 1 0 1 6.25%

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DRAFT
RESOLUTION

of the
DALLAS AREA RAPID TRANSIT BOARD
(Executive Committee)
Contract for Marketing of DART Station Naming Rights and Corporate Sponsorship
Opportunities

WHEREAS, DART seeks to enhance revenue opportunities by marketing its assets; and WHEREAS, selection and marketability of DART's tangible and intangible assets will open new revenues for DART; and WHEREAS, expertise to review and evaluate DART's physical and intangible assets and identify their marketing potential and estimated value will help DART achieve its revenue goals; and WHEREAS, funding for this contract is within current Budget and FY 20 13 Twenty-Year Financial Plan allocations; and WHEREAS, approval of this contract will generate new revenues for DART. NOW, THEREFORE, BE IT RESOLVED by the Dallas Area Rapid Transit Board of Directors that the President/Executive Director or his designee is authorized, subject to legal review, to award a five-year consulting/revenue-generating contract for marketing of DART's station naming rights and corporate sponsorships to The Superlative Group for a total authorized amount not to exceed $99,483 for conSUlting services, plus 9.50/0 of new generated revenues.

Prepared by: David Leininger Executive Vice President Chief Financial Officer Approved as to foml: Scott Carlson General Counsel

Approved by:

Contract for Station Naming Rights and Corporate Sponsorship