Pricing Clarification for Request for Proposals for Advertising and Marketing Services

Notification has been provided to vendors bidding on Nebraska Department of Revenue, Lottery Division, Request for Proposals for Advertising and Marketing Services, issued on December 8, 2014 (RFP). This notification is to clarify any potential ambiguities of Part VI: Pricing, as contained in the above mentioned RFP, and to notify vendors that the Nebraska Lottery requires a new cost proposal from each vendor, which proposal must incorporate and adhere to these clarifications.

Vendors may only propose a single, fixed percentage bid of the Nebraska Lottery’s total annual advertising budget (the percentage bid) as the sole source of compensation for performing all services as required by the RFP. The Nebraska Lottery’s advertising budget is 3.5% of net sales (net sales were approximately $157 million in the most previous fiscal year). A vendor may not propose a variable percentage. The single, fixed percentage bid proposed by the vendor must account for all four years of the contract and account for as many as three one-year renewal options, if any (for a potential duration of up to seven years).

It is expected that a cost proposal provided pursuant to Part VI of the RFP will adhere to the following format;

“[Agency Name] proposes a bid of [insert number] % of the Nebraska’s Lottery’s total annual advertising budget as [Agency Name’s] sole source of compensation for performing all services required by the terms of the Nebraska Department of Revenue, Lottery Division, Request for Proposals for Advertising and Marketing Services, issued on December 8, 2014.”

The Nebraska Lottery does not recommend that a vendor provide any additional information regarding compensation or payment to the vendor beyond the language quoted above. Any limitations, requests for expense reimbursement, additional proposed forms of compensation, the inclusion of a variable percentage bid, or other provisos that modify or supplement the proposed percentage bid will result in the Vendor’s automatic disqualification. The cost proposal must be signed by a person authorized to bind the vendor, must be dated, and must recite that the cost proposal is being provided pursuant to the Nebraska Lottery’s RFP clarification of April 28, 2015.

Each Vendor must submit one cost proposal in a sealed envelope. The envelope must be clearly marked “Cost Proposal.” The cost proposal, whether mailed or hand delivered, must arrive at the Nebraska Lottery, 1800 ‘O’ Street, Suite 101, Lincoln, Nebraska, 68508, no later than 5:00 p.m. CT, on Tuesday, May 5, 2015. Late arriving cost proposals will result in the vendor being automatically disqualified. Vendors may not rely on a previously submitted cost proposal. Any vendor who does not submit a timely cost proposal in response to this clarification will be automatically disqualified. Cost proposals provided pursuant to this clarification will be the only cost proposals evaluated. Previously submitted cost proposals will not be considered.

Questions, if any, regarding this clarification must be sent to Jill Marshall, RFP Coordinator, in writing via mail or at jill.marshall@nebraska.gov and must be received no later than 12:00 p.m. CT on Thursday, April 30, 2015. On or before 12:00 p.m. CT on Friday, May 1, 2015, the Nebraska Lottery will distribute written responses via email to all questions received in this manner. Those written responses will be forwarded to all Phase II vendors who have previously provided notification under RFP Part I(B)(2), page 4.

The Nebraska Lottery also wishes to provide the following supplemental information:

Current experiential marketing efforts average at least 10-15 events per month. The RFP does not limit the number of experiential marketing events and the Lottery does not expect a limit to be put on the number of times the contracting agency will assist. See RFP Part III(G), page 24, and RFP Part III(J), page 25.
While the Nebraska Lottery doesn’t anticipate requiring more than 10 landing pages per year, the RFP does not limit the number of landing pages the contracting agency must assist with or develop. See RFP Part III(H)(1), page 24.

This clarification is issued pursuant to RFP, Part I(B)(2), page 4.

Published on 04/28/2015