DEPARTMENT: Aviation
DEPARTMENT HEAD: Frank Miller
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Advertising and Marketing Services for the San Antonio Airport System
SUMMARY:
This Ordinance authorizes a professional services agreement with Rocket Red, Ltd. for on-call advertising and marketing services for the Airline Incentive Program, Airport Concession Marketing Campaign, South Central Texas Gateway Advertising Program and other services as required for the San Antonio Airport System in an amount not to exceed $4,000,000.00. The contract term is three years with an option for renewal for two one-year periods.
BACKGROUND INFORMATION:
The San Antonio Airport System (SAAS) requires a firm to provide marketing and advertising services to promote three programs:
· Air Service Development Incentive Program: As part of the Incentive Program, the City offers marketing incentives to the airline initiating new non-stop service or entering the San Antonio market. As required by the Federal Aviation Administration (FAA), the firm assists the airline in developing a customized marketing plan. The marketing firm also provides design services and makes procurements not to exceed a specified dollar amount as detailed in the signed incentive agreement. The marketing plan specifically promotes San Antonio International Airport (SAT), the eligible airline's brand and the new route between San Antonio and the new destination.
· Airport Concession Marketing Campaign: The firm will support the concession program and facilities at the San Antonio International Airport. In accordance with their concession agreements, concession owners and operators at SAT fund a central marketing and promotional program for the purpose of increasing sales and promoting good customer service. These services are in accordance to the Airport Concessions Disadvantage Business Enterprises Program (ACDBE).
· South Central Texas Gateway Advertising Program: The firm will support an airport-initiative to raise awareness of international air service in communities throughout the South Central Texas region.
In addition, the selected firm will provide additional services, including advertising, graphic design, video photography, print production and installation projects for branding programs, reports, e-newsletters, websites and other projects.
Solicitation
In May 2014, the City released a Request for Proposals. The solicitation was advertised in the San Antonio Express-News, and TVSA as well as the website for the City of San Antonio, American Association of Airport Executives and Airports Council International. Seven proposals were received, but one was deemed non-responsive. An evaluation commission which included representatives from the City Manager's Office, Aviation Department, Convention and Visitor's Bureau, Airport Advisory Commission and a current concessionaire evaluated the proposals. The committee evaluated the proposals based on the published criteria, which included: experience, background and qualifications in providing advertising and marketing service, consideration of the proposed plan for advertising/marketing programs, creative process, and media capabilities, proposed hourly rates, and ACDBE program compliance. Two firms were selected for interviews. Rocket Red, Ltd. received 91.38 points, 17.57 points ahead of the second ranked firm.
The contract was designated a high profile contract and presented to the High Profile Contract Council Committee as a pre-solicitation item in February 2014 and as a post-solicitation item in October 2014. The Committee approved moving the item to the full City Council in November 2014.
Airport Concessions Disadvantage Business Enterprises Program
This solicitation was released under the Airport Concession Disadvantage Business Enterprise Program. The Federal Aviation Administration Airport Improvement Program, which provides grants to the San Antonio Airport System, requires that participating airports conform to the requirements of 49 Code of Federal Regulations (CFR) Part 23 Airport Concession Disadvantage Business Enterprise Program which prohibits the imposition of geographic location preference. Rocket Red has met or exceeded the ACDBE goal for this contract.
Rocket Red
Rocket Red is a women-owned advertising/marketing and digital interactive agency. Clients of the firm include Dallas Love Field, Dallas Executive Airport, Southwest Airlines and American Airlines. Other clients include the City of Dallas, Circuit of the Americas/Formula 1 US Grand Prix, Boeing, Whataburger, La Quinta and Aloft.
ISSUE:
Approval of the City Council is required for high-profile contracts.
ALTERNATIVES:
City Council could elect to not approve the awarding of the professional services agreement with Rocket Red, Ltd for marketing and advertising services for SAT. This action would delay the Department being able to provide these services to the airlines and concessions. The solicitation for this contract was conducted in accordance with City policies and the selected proposal is within budget.
FISCAL IMPACT:
This agreement shall have a value not to exceed $4,000,000.00. No funds are appropriated by this action. Expenditures for these services are subject to available funding and are authorized by individual project budgets at the time work is requested or project funds are appropriated through ordinance. The City will make no minimum guarantee pertaining to the volume of work which may be expected from the consultant.
RECOMMENDATION:
Staff recommends the authorization of a professional services agreement with Rocket Red, Ltd for marketing and advertising services for the San Antonio Airport System.