F14SOL10026_NMAAHC_Direct_Mail_and_E_Marketing_Services_RFP.docx

SMITHSONIAN INSTITUTION

NATIONAL MUSEUM OF AFRICAN AMERICAN HISTORY AND CULTURE

REQUEST FOR PROPOSAL

F14SOL10026

A. Solicitation/Contract Form

The Smithsonian Institution is a non-profit trust instrumentality created by an act of Congress of the United States in 1846. The Smithsonian is the world’s largest museum and research complex consisting of 19 museums and galleries, the National Zoological Park and 9 research facilities. In 2013, more than 14 million people from around the world visited the museums and the National Zoo; there were over 140 million unique visits to www.smithsonian.org. The total number of objects, works of art, and specimens at the Smithsonian Institution is estimated at more than 136 million. The Smithsonian collections are the basis for research, exhibitions and public programs in the arts, history, culture and science. The Smithsonian’s mission is the “increase and diffusion of knowledge.”

The Smithsonian’s statement of values and code of ethics require that the Smithsonian’s revenue generating activities support the Smithsonian mission and protect the Smithsonian’s reputation, integrity, and independence. All revenue generating activities must also be consistent with the Smithsonian’s status as a trust instrumentality of the United States and tax exempt organization.

The National Museum of African American History and Culture (NMAAHC) is the national museum for the study and exposition of African American history and culture under the Smithsonian Institution. The primary purposes are to acquire, maintain, and preserve objects which document the social, cultural, political, military, technological and scientific developments of African Americans; to conduct scholarly research designed to make significant contributions to the body of knowledge in the fields of African American history, art, and culture; to publish findings for both scholarly and general audiences; and to interpret the historical cultural developments through public exhibitions and programs.

The National Museum of African American History and Culture will be located at 14th Street NW and Constitution Ave NW on the National Mall in Washington, DC. The expected opening is planned for late 2015 to summer 2016. To take advantage of membership program growth opportunities that will present themselves in the months and years ahead, the NMAAHC seeks the services of a direct mail agency consulting firm to design a five-year membership program, develop a membership strategy, perform an audit of current benchmark membership practices, and once approved by the development staff at NMAAHC, to implement that program on October 01, 2014 which is the first day of fiscal year 2015.

B. Supplies or Services/Prices

B.1. Type of Contract

B.1.1. The Smithsonian seeks proposals from firms qualified for provide direct mail marketing and E-marketing consultation to membership organizations operating as museums (hereinafter referred to as the “Offerors”). The selected Contractor shall provide direct mail marketing and E-marketing services in accordance with the requirements of Section C and as otherwise set forth in this contract and any amendments and attachments hereto. The Contractor shall furnish all supervision, labor, materials, equipment and facilities necessary to perform these services for the NMAAHC (aka “NMAAHC” or “the museum”), and the Smithsonian Institution (aka “Smithsonian” or “the Institution”).

B.1.2. This contract awarded on a firm fixed price basis.

B.2. Prices/Costs*

The Contractor shall perform all work effort in accordance with the requirements of this contract and any amendments and attachments hereto for the firm-fixed price below. This firm-fixed price shall include, but not be limited to, all direct labor, materials, and other direct costs (i.e. communication, reproduction, etc.) as well as all indirect costs (overhead and G&A expenses), travel and per diem, communication, delivery, subcontractor costs, commissions, and any other profit and expenses for which the Contractor expects payment.

TOTAL FIRM FIXED PRICE/COST:

Express in Words and Figures

* Please also see business proposal requirements in Section L for additional cost breakdown requirements.

B.3. Travel and Per Diem

B.3.1. Contractor’s firm fixed price shall include all necessary and reasonable transportation costs and travel allowances (per diem) of personnel authorized to undertake out-of-town, overnight travel under this contract, if applicable. Travel and per diem rates subsumed in the firm fixed price shall not exceed the rates established in the Federal Travel Regulations that covers Washington, DC. Contractor shall comply with the travel expenses requirements outlined in FAR 31.205-46 when calculating travel cost component of the firm fixed price fee. Such travel and per diem costs WILL NOT be reimbursed separately.

B.3.2. No profit, mark up, or fee shall be included on travel and per diem expenses included in the firm fixed price.

C. Description/Specifications

C.1. Introduction.

C.1.1. The NMAAHC seeks a full-service direct mail and E-marketing agency for its national Charter Membership program which is a key component of the museum’s continuing capital campaign fundraising efforts. We are seeking particular expertise in new member acquisition, retention of current members, and development of increased donations from the current member file, ideas for sustainability and growth potential, management of direct mail package printing and mailing, strategy and management of acquisition direct mail lists, E-marketing services, management of the acknowledgement and benefits fulfillment program, and use of analysis of member giving behavior to increase individual gift amounts. Services will be conducted for the period beginning October 1, 2014, and continue to September 30, 2015, with four, one-year options to renew services to be done on a year-by-year basis for a total contract length of five years.

C.1.2. The NMAAHC was established under the Smithsonian Institution by an act of Congress in 2003. The Smithsonian Institution is considered a 501-C-3 organization (TIN 53-0206027) by the Internal Revenue Service and is an instrumentality of the U.S. government.

C.1.3. The NMAAHC national membership program was launched in late August 2009 and has become the third largest membership program at the Smithsonian Institution, in terms of revenue, with the pan-institutional Friends of the Smithsonian program (formerly known as Contributing Membership) being the largest in terms of both revenue and members followed by the National Museum of the American Indian’s membership program. As of May 20, 2014 we have 34,120 active members, 30,626 lapsed members and 3,882 donors in all 50 states and a few foreign countries. A few of the individual museums within the Institution have their own membership programs, but they are all of smaller size and limited scope.

C.1.4. The total construction goal for the NMAAHC is $500 million of which $250 million will be appropriated by the federal government and $250 million which must be raised from non-government resources, i.e. public resources such as individuals, corporations, or foundations. As of May 2014, we still need to raise $90 million to reach our $250 million goal.

C.2. Project Overview

C.2.1 Description of Membership Program

NMAAHC membership program was launched in August 2009 and provides valuable revenue for the Museum and also serves to garner grassroots support from individuals across the United States. The offer of member benefits at various levels of dollar support is an added enticement for a person to consider becoming a Charter Member.

C.2.2. Currently, the membership fundraising program consists of the following programs:

C.2.2.1. Direct mail

· Included in house appeal mailings total is a semiannual membership newsletter.

C.2.2.2. E-marketing and E-commerce

• The Membership department contracts with Convio/Blackbaud for software services for E-marketing endeavors such as:

· Monthly E-renewals messages to coincide with mailed in-home delivery of paper renewal notices.

· Email subscriber conversion with periodic fundraising emails sent to all subscribers

· Periodic emails called “Our American Story” about a person or event from African American history. (about five to six sent annually)

· Special email blasts on special events or public programs.

· E-newsletters to subscribers

· Email address acquisition

C.2.2.3. E-marketing contractor created the NMAAHC’s online membership site at www.go.si.edu/aahcmembership to provide online functionality to accept membership registrations, renewal gifts, gift memberships, and straight gift donations.

C.2.2.4. Acknowledgment and benefit fulfillment

· Beginning level is $25, a member card is sent

· At $40 level also a 8” x 11” certificate of appreciation is included.

· At $100 also the CD, Every Tone a Testimony is sent.

· At $250 also the softcover book, Let Your Motto Be Resistance is sent.

· At $1000 also the book The Scurlock Studio and Black Washington is sent. These members are also invited to an exhibition VIP reception.

C.2.2.6. Since the launch of the membership program in August 2009, it has generated revenue as follows:

Contractor will provide services required to run the membership program for the NMAAHC in the areas of copy creation, package art design, letter and mail shop services for printing and mailing direct mail packages for the acquisition, house appeal, renewal, and acknowledgment and benefits fulfillment programs; list marketing services for acquisition packages; and E-marketing endeavors. Contractor may also be asked to create mailings such as event invitations, newsletters, or public programs calendar on an ad hoc basis.

C.2.3. Contractors providing services to the Membership Program

C.2.3.1. The NMAAHC has established a contract to run the direct mail and E-marketing programs of the membership program. Separate contracts have been established with Sheads and Associates for caging/lockbox and data entry services; Interactive Systems, Inc., for membership database services; and Blackbaud/Convio for E-marketing/E-commerce software.

C.2.3.2. In relation to the $1.5 billion capital campaign launched by the Smithsonian Institution’s Office of Advancement, the institution is working to create and launch a centralized database for the entire Institution as one does not currently exist. When the database is ready, all Smithsonian units, including membership programs, will migrate to it on a schedule to be created. However, it is anticipated that the NMAAHC will not be migrating to the new central database until after the museum opens.

C.2.4. Schedule of Mailings

C.2.4.1. On the FTP site (see FTP site access instructions in Section J, below) there is a copy of National Museum of African American History and Culture’s FY 2013 Direct Mail and E-marketing Plan, which details the monthly mailings with quantities scheduled and E-marketing initiatives for the fiscal year. Mailings follow a standard member development and fundraising protocol of acquisition, renewals and special appeals.

C.2.4.2. Current fulfillment packages for new members vary on the dollar level at which the new member joins. All acknowledgment mailings include a new join thank-you acknowledgement letter with perforated reply form at the bottom should the member wish to make an additional gift. The member card is attached to the upper right hand corner of letter and a Courtesy Reply Envelope (CRE) is enclosed. At the $40 level, an 8” x 11” certificate of appreciation is enclosed. At $100, a two disc CD is sent, at $250 the soft cover book Let your Motto be Resistance. At $1000, the soft cover book The Scurlock Studio and Black Washington. The acknowledgment copy printed on the acknowledgment letter does vary depending on the membership support level and the tax-deductible information varies depending on the level of support.

C.2.5. Messaging

C.2.5.1. The NMAAHC is in a capital campaign mode to raise funds for architectural design, construction and installation of the inaugural exhibitions. The total construction cost is $500 million of which the federal government will provided $250 million through Congressional appropriations with the other half to be raised from non-governmental resources such as the general public, corporations and foundations in a true public-private partnership. The projected museum opening date range is late 2015 to summer 2016. The museum will be in a capital campaign mode until our $250 million goal is reached. Once this is achieved, the focus will very likely be for raising funds for program needs and endowment.

C.2.5.2. Messaging used in direct mail and E-marketing should create excitement about the museum and provide information to prospective new members and current members of what the museum is about and what they will see and experience when they visit the museum on the National Mall. An important concept of messaging is that the NMAAHC is not just for African Americans, but for all Americans. The NMAAHC invites anyone, regardless of race, to become a Charter Member.

C.2.5.3. The NMAAHC’s estimated opening timeframe in Washington, D.C. is late 2015 to summer 2016 on a five-acre site adjacent to the Washington Monument on the National Mall at 14th Street NW and Constitution Avenue NW. The National Mall is home to the world’s largest collection of museums under the Smithsonian Institution and at the center of one of the most public spaces in the nation. The Museum was established by Congressional legislation in 2003 as the 19th museum of the Smithsonian Institution and is the only national museum devoted exclusively to African American life, art, history and culture. The Museum represents a national initiative of profound cultural importance – one that will impact the nation for generations to come.

C.2.5.4. The NMAAHC, under the direction of its founding director, Lonnie G. Bunch, will bridge a major gap in the American story by creating exhibitions and programs focusing on a wide arc of our nation’s history. It also will celebrate African American creativity and cultural expression in the visual, performing and literary arts, as well as African American contributions in sports, commerce, the military and more. The Museum will help all visitors see how central the African American experience has been to our nation, using this history and culture as a lens into what it means to be an American.

C.2.4.5. The museum has stated it will not shy away from dealing with or discussing the negative aspects of African American history which may be upsetting to some in the telling of the full African American Experience.

C.2.4.6. The Museum does exist today with temporary gallery space located on level two at the National Museum American History. Exhibitions do change on a periodic basis. The museum’s public program department does present program and events at various Smithsonian venues. Through our website, www.nmaahc.si.edu, we do present information about the NMAAHC to the general public. In addition, the Museum has an active membership program with over 58,000 cumulative members (as of Nov 14, 2013) representing every state in the nation, and several countries around the world.

C.2.4.7. The Museum will be housed in an approximately 390,000 square-foot, technologically state-of-the-art “green” building where three to four million people will visit annually to explore African American history and culture. Millions more will be able to visit virtually via the museum’s website and through collaborative partnerships around the country. The Museum design features an iconic, bronze “corona,” or crown enclosing the circumference of the building. This and other large-scale architectural design elements have been chosen to evoke the faith, hope and resiliency of the African American spirit. The building will be designed to achieve Leadership in Energy and Environmental Design (LEED) Gold certification.

C.2.4.8. The Museum broke ground on February 22, 2012 and construction work is progressing as we approach our estimated grand opening late 2015 to summer 2016..

C.2.5. Renewals

C.2.5.1. The monthly renewal notice program is an extremely important revenue generator for NMAAHC. The monthly renewal notice program currently operates on a rolling, 12 month, five notice renewal series. This program was launched in March 2012 under a separate contract with a different agency from the direct mail agency responsible for the acquisition and appeal programs. It is imperative that the contractor have demonstrated strong expertise in managing a rolling 12 month renewal notice program for a national museum membership program and understand how a monthly renewal notice program is vital for a membership direct mail fundraising program. It is anticipated that the renewal program will become a significant source of unrestricted revenue for the museum. As of May 2014, the renewal program is currently generating 25.7% of the yearly gross revenue with anticipation that this percentage will increase as we move into the future with the percentage increasing to around 65% of total revenue.

C.2.5.2. National Museum of African American History and Culture membership dues are below most other national museum programs, which range from $50 - $175. This is mainly due to the fact that admission is free at all Smithsonian museums, thus free admission cannot be used as an enticement to join. In addition, blockbuster traveling exhibitions are generally not exhibited at Smithsonian museums, and therefore cannot be used as an enticement to become a member.

C.2.5.3. For member demographic information: 52.5% of cumulative (active and lapsed) members are at the $25 level of support, 21.5% at $40, 5.36% at $100, 15.2% at $250 and 1.47% are at the $1000 level or above.

C.2.5.4. Copy for renewal notices must include an upgrade message. The ask string on renewal notice reply forms is created using the original join amount and highlight higher membership levels of support. Information for all five levels of support, $25, $40, $100, $250, $1000, and benefits at those levels is included in all renewal notices.

C2.5.5. Currently, the NMAAHC mails five renewal notices on an advanced mailing schedule at the postal nonprofit rate. The renewal notice schedule is as follows:

1st notice – 60 days prior to expire month 2nd notice – 30 days prior to expire month 3rd notice – in month of expire 4th notice – 30 days after expire month 5th notice – 60 days after expire month If a member responds to a notice in time, then the follow up notice is not mailed.

C.2.5.6. Currently longtime lapsed members have been included in special reinstatement mailings as part of the renewal program. We have not included these longtime expired members as segments in an acquisition mailing. In some cases, we have included these lapsed members as their own segment in appeal mailings. The renewal rate is currently at 38.34% on average. The average gift in renewals is $67.57 as of May 20, 2014.

C.2.5.7. Contractor will create the renewal notice paper components and manage the inventory for the monthly renewal notice mailings.

C.2.5.8. For renewing NMAAHC members who upgrade from their current level to a higher next level of support, the NMAAHC covers the cost of the CD at the $100 level of support, Motto book at the $250 level, and the Scurlock book at the $1000 level.

C.2.6. Acquisitions

The direct mail acquisition program is the major source of acquiring new Charter Members. For FY 2012, the museum’s acquisition program mailed 1,930,159 acquisition direct mail packets. And in FY 2013, the museum is projected to mail about 3,330,000 acquisition packages to people living throughout the USA. Each mailing comprises of a control package and may include up to two test packages using a variety of lists from organizations across the USA recommended by the direct mail list marketing company. The average response percent is 0.477% for recent acquisition mailings.

C.2.6.1. The NMAAHC covers the cost of the CD $100 level of support, Motto book $250 level, and the Scurlock book $1000 level, and the shipping costs to the fulfillment mail house to replenish inventory as needed.

C2.6.2. In obtaining new Charter Members we do not solely strive just for a high number of responses but rather for a high number of new members who may be receptive to other forms of support of the NMAAHC and who may demonstrate a strong life time value as donors. As such, we limit the use of front-end enticement premiums in acquisition packages.

C.2.7. House Appeals

The House Appeal (aka “second gift ask”) program consists of an average of eight distinctly different packages that are mailed to the member file periodically throughout the year. These “second gift requests” encourage members to give an additional gift above and beyond their annual membership dues to help us reach our $250 million construction goal. Segments are carefully selected from the member file and the dollar-ask string on the reply form will vary based on the member’s individual giving history. See attachment, Direct Mail Mailing Yearly Schedule for information regarding the number of special appeals scheduled for FY 2013, and to see the number of units mailed in each campaign. Segmentation varies with each house appeal. In some instances, we may include lapsed members beyond 24 months with this segment coded with a renewal source code. In most cases, members in the renewal window are omitted from house appeal mailings. Segmentation is usually based on prior gift ranges. The average gift in appeals varies depending on the specific appeal message and purpose. However, the overall average gift for house appeals mailed in FY 2014 is $62.78.

C.2.7.1. Members who are in the renewal window are generally suppressed from appeal selects in order to protect renewal income. However, in certain cases a renewal segment may be incorporated into an appeal mailing for those members in the renewal window and if the house appeal is considered an important mailing containing information where we feel all members should receive. Consideration for the inclusion of a renewal segment in a house appeal will be done on a case-by-case basis.

C.2.7.2. Copy content varies for each appeal mailing and is focused typically on asking members to help us reach our $250 million goal. First draft letter copy is submitted to the membership program manager for initial review with edits sent back to agency’s writer for creation of next version. Once a version is approved by the membership manager, the membership manager submits copy to a review group consisting of the development director, public affairs director, deputy museum director and museum director. The signature of the museum director is used for all direct mail fundraising letters. Typical components in each package are: a carrier, letter, reply device, CRE, and an occasional brochure/buck slip.

C.2.8 Metrics

C.2.8.1. The contractor will provide the NMAAHC with list marketing services for the acquisition mailing program. Be advised, the NMAHC does not currently have a list rental agreement in place so our list is currently not available for rent. The Contractor will be responsible for securing all lists for acquisition through a list broker. The museum does exchange and rent lists for acquisition mailings. The Contractor submits to the membership manager all acquisition mailing list plans for review and approval prior to ordering.

C.2.9. The NMAAHC Member File

C.2.9.1. The museum wants to grow the number of members as we approach our grand opening. However, growth of the member file will be tied to the amount of funds allocated for the membership program by senior museum management.

C2.9.2. The primary method to acquire new members for this expansive project will be acquisition mailings supplemented by E-mail address acquisition which will be increased in carefully allocated measures to accrue members from sources designed to ensure the longest term member retention. With escalating volume planned each year to accommodate this growth, considerable attention must be paid to list history, list research, selects and average gifts to maximize performance and retention.

C.2.9.3. Consideration must be given to new member attrition during the growth period, with strategic action taken to stem any downward trends. The growth of the member file will lay the foundation for increasing donor capacity for both higher-level giving and for bequests. Therefore, strategies for increasing the number of members brought in at higher levels, as well as for increasing average gifts, are critical.

C.2.9.4. As of May 20, 2014, the museum has approximately 64,746 cumulative charter members (34,120 active, 30,626 lapsed) and 3,882 donors. Of this number, 22.25% are local to the Washington, D.C., metropolitan area (DC/MD/Northern VA). The remaining 77.75% of our members are spread across the United States. The top ten states listed by states with the highest members are: Maryland, New York, California, Virginia, District of Columbia, Florida, Illinois, Texas, Pennsylvania, Georgia.

C.2.9.5. The NMAAHC does not actively solicit for new members who live outside the USA so it can be assumed that non-USA members have joined either after a visit to the Smithsonian Institution or from accessing the Smithsonian or NMAAHC Websites. As our primary means of prospecting for new members is by direct mail and E-marketing, we have higher numbers of members in the more populous states. As we use lists available in the direct mail industry, our members are not solely African American.

C.2.10. Package Copy

C.2.10.1 As the NMAAHC is in a capital campaign mode to raise funds for construction, the main focus of messaging will be the need to meet our $250 million goal if we are to open on schedule. Further, the museum receives only a portion of its revenues from the federal government, with the remaining funds accrued from unrestricted funds donated by individuals, corporations, and foundations to support traveling exhibitions, public programs, launch new exhibitions, etc. The exclusiveness of becoming an NMAAHC Charter Member is also heavily featured in acquisition copy. The Charter Member designation will end about one year after the museum open date.

C.2.10.2. While many museums focus package copy on the newest block-buster exhibition and the opportunity for new members to enter the museum without paying for admission, copy for the NMAAHC acquisition package does not follow this paradigm as block-buster exhibitions do not happen frequently and admission is free at all Smithsonian museums with the exception of Cooper-Hewitt, National Design Museum in New York City.

C.2.11. Description of any special house appeal project or program

C.2.11.1 Late 2013 was the last year the commemorative hard plastic card package was mailed as it was interfering with the monthly renewal notice program and adding confusion in members’ minds that a gift made in response to this mailing was a renewal gift. At all times, the income generated by the renewal program must be protected.

C.2.12. Special Membership Programs

C.2.12.1. High Dollar Member Program The museum does not currently have a high dollar member program apart from the $1000 Director’s Circle level of membership. In renewal notice copy we do include an upgrade message encouraging current members to upgrade to a higher level of support when they renew. Member benefits depend on level of membership. Our $1000 Director’s Circle members are invited to most major exhibition opening receptions and other high level museum events free of charge. We currently have 503 active $1000 members as of May 20, 2014.

C.2.13. E-marketing

C.2.13.1. Due to limitations of the current NMAAHC website and limited staff in the museum’s web department, Contractor will advise and provide services to the membership program for E-marketing endeavors such as maintenance of current membership webpages, creation of new webpages as needed for fundraising purposes, creation and updating of all online acknowledgement and email confirmation messages, email address acquisition, E-renewal message format and copy, semiannual e-newsletter, push/pull testing for house E-appeals, acquisition of email addresses using the Convio software system for which the Smithsonian has created a contract with. Suggest other areas to increase communication with members and the Museum to build loyalty.

C.2.14. Acknowledgment and fulfillment of Member Benefits

C.2.14.1. Contractor will be responsible for providing all acknowledgment and benefits fulfillment services for the membership acknowledgment program. This includes acknowledgment letter copy creation, all printing and mailing of weekly acknowledgment letters, selection and segmentation of member records, periodic updates of acknowledgment letters and components, inventory management of tangible benefits such as CDs, and books, and reorder of paper components, art design and copy creation for acknowledgment components used in program. The contractor will work with the database service provider regarding the weekly acknowledgment files.

C.3. Scope of Work:

C.3.1. Contractor shall provide all requirements stipulated herein for services related to overall program strategy, creative design, copy creation, printing and mailing, and analysis. Contractor will provide services and manage all package production and mailing services, as follows below.

C.3.2. Program Strategy – Contractor will review history of museum’s direct mail membership program and, in concert with membership program manager, develop strategies that are designed to produce gross revenue that meets or exceeds budget for FY 2013 and each fiscal year thereafter, with an emphasis in realizing cost saving opportunities that maximize net revenues without undue risk to cash flow or member retention. Among the opportunities included in the strategic goals should be the following: an increase in the numbers of members acquired; an increase in the numbers of members upgrading to higher member levels; an increase in the retention of newly acquired members; an increase in the number of members giving to appeals; an increase in the amount given by members on file; an increase in the percentage response performance of all lists, but particularly outside lists in acquisition; an increase in research of new list opportunities for acquisition, among other strategies available in fundraising; and branding and differentiation of the NMAAHC program from the central Smithsonian Institution through package design and message. Contractor will aid the museum in moving quickly to protect the program financially during any international, national, or local disaster or disruption of mail, by suggesting and organizing immediate solutions to communicate with members the continuing need for support.

C.3.3. Creative Design – In collaboration with the membership program manager, Contractor will provide creative direction for the direct mail membership program, supplying writers for all letters and graphic designers for all package art mailed in acquisition, appeals, renewals, and acknowledgment components. Contractor will work with the membership manager to ensure message and mission conform to museum’s fundraising initiatives, and Smithsonian Institution mandates regarding the use of the Smithsonian sunburst and logo lock up, Smithsonian brand or the NMAAHC graphic identity. The NMAAHC graphic identity will be used where appropriate. Design and production of all packages may not exceed mutually agreed budgets. Control packages have been established for the acquisition and renewals programs, but testing of packages may be performed with an eye to enhancing retention and revenue and overall long term performance.

C.3.3.1. In all strategies, Contractor will collaborate in assessing short and long term goals, as well as cumulative effect of, strategies as related to member acceptance, and National Museum of African American History and Culture staffing and technologies support. It is expected that all industry-wide standards of fundraising ethics will be followed as set forth in guidelines stipulated for membership by the Association of Fundraising Professionals, the American Association of Museums, and the Direct Marketing Association. Validation of involvement in these associations is important to the management of this program.

C.3.4. Quality Controls – All elements of direct mail packages must be at a premier standard of excellence, including: writing; graphic design; paper quality; factual; accuracy, use of grammar, spelling, printing of text; photo and image reproduction; researching image rights and captions, and insertion-order of all agreed package elements. Letter and package content must be thoroughly researched and must represent the NMAAHC with honor and distinction.

C.3.4.1. Adherence to the Smithsonian Institution’s established logo lockup guidelines is required for all package elements (see complete review of these guidelines at www.logo.si.edu). Direction for possible omission of the Smithsonian sunburst and logo lock up will come from NMAAHC membership program manager on a case by case basis.

C.3.4.2. It cannot be stressed enough that copy for all direct mail and E-marketing endeavors are thoroughly checked for accuracy of facts, spelling, and grammar. Proofreading by contractor of all copy and components is a MUST! Any typographical errors, misspellings or inaccurate information negatively affects the reputation of the NMAAHC and the Smithsonian in the minds of its members and the general public.

C.3.5. Analysis – Contractor will supply periodic summary memos and spreadsheets of performance of all mailing campaigns, providing date mailed, percentage response, gross and net revenue, number of units mailed, average gift, number of responses and package cost information, to give perspective in member response and revenues earned. Analysis of list performance, and further significantly detailed segmentation performance measurements will be submitted (or as agreed to by NMAAHC and Contractor), along with a narrative observing performance and making recommendations for subsequent audience selection and segmentation. Additionally, Contractor will supply complete analytical campaign and overall program narratives on a quarterly basis, participate in regularly scheduled conference calls and on-site meetings to discuss strategy, review direct mail and E-marketing results, review contractor performance and budgets quarterly. During that period, C.3.5.1. Contractor will supply comprehensive overviews of the NMAAHC direct mail program and progress towards goals and objectives, presenting consulting recommendations during on-site meetings. Working with the membership manager, Contractor will avail itself of the membership database for direct mail campaign results.

C.3.6. Data – For data select requests for mailing and analysis, Contractor will work closely with the membership manager for data requests for all direct mail packages. The museum has established a contract with a database service provider for data processing and programming for the membership program. Contractor will research and identify all data segments needed for each campaign, providing comprehensive schedules quarterly, observing the timing windows necessary for accurate execution and review of all data provided. The contractor will be responsible for securing all external lists for acquisition. The NMAAHC will facilitate the process to requests lists from internal Smithsonian sources for inclusion in acquisition mailings. Contractor will provide merge/purge services for data used for all acquisition mailings. Contractor will be responsible for developing the source code creation and data segmentation requests. All data select requests must be approved by the membership program manager before contractor submits data select to NMAAHC’s database service provider.

C.3.7. Data Deliverables - The following deliverables are required for each campaign: Data request (includes detailed segmentation strategy); source codes in prescribed format (codes, descriptions and mail quantities); and mail history. Separate data formats exist for each campaign: (renewal, acquisition, appeals). Note that data for campaign results in provided as raw data to the Contractor, consisting of: source code; code segment description; quantity mailed; number responding; percentage responding; total revenue; average gift; actual cost; unit costs; cost per dollar raised; and net income.

C.3.7.1. While comprehensive audience segmentation with codes and panels and versions is proprietary, every attempt has been made to give the scope of complexity for bidding purposes. Although strategy and segmentation are continually flexible, based on external conditions, economic forces and Contractor experience, most campaigns for NMAAHC are complex, with versioning based on audience recency and giving history.

C.3.8. Package production and mailing services – Contractor will provide services for the art design, printing and mailing for all direct mail packages, by reviewing and approving Authorizations to Proceed (ATP) forms and all package production and review steps.

C.3.8.1. Contractor will provide advice and strategy for direct mail packages as follows: graphic design, copy writing, target audience segmentation, use of images in public domain, research of correct image captions and rights of use, source-coding (in conformance with previously established formulas for the NMAAHC membership database), database record select requests, and direct mail schedules.

C.3.8.2. Additionally, Contractor supplies camera-ready art, ensuring that art files for all direct mail programs arrive on time at print mail shop.

C.3.8.3. Contractor will conform to the Direct Marketing Association’s (DMA) and the Association of Fundraising Professionals’ guidelines regarding use of the DMA pander file and deceased files in merge/purge and acquisition without cost to the NMAAHC. Contractor will supply complete schedules for all campaigns at least 60 days in advance of mailing.

C.3.8.4. The Federal government requires that any costs higher than $3,000 must be bid to a minimum of three different vendors and copies of all estimates retained, regardless of Contractor ownership of facilities. This is a requirement for all campaigns. The Contractor will make these bids and invoices available to the NMAAHC on request, generally bi-annually. Contractor will submit, on request, all copies of estimates received and invoices contracted for on the program’s behalf, with justifications for any choices higher than lowest bid.

C.8.5. Determinations for any cost savings available through gang-printing or co-mingling must conform to the NMAAHC campaign mail date deadlines to ensure all mailings are managed as scheduled monthly. Revenue cash flow is committed to the NMAAHC’s Office of Planning, Management and Budget, and must be adhered to. Due to the frequency and scope of our mailings, delays in mail dates that are not agreed to are unacceptable.

C.3.9. Preparation of Annual Budget – Contractor will participate with the NMAAHC Membership manager or designated staff person in preparing a comprehensive budget for the member development program, including all estimate costs for direct mail packages and E-marketing initiatives for each mailing inclusive of all programs – Acquisition, Special Appeals, Renewals, back end acknowledgment program – through the fiscal year, which spans October 1 through September 30. This includes the requirement to submit a complete annual direct mail plan spreadsheet, including all dates for the year, mail quantities, gross revenue, projected response rates in percentages and numbers of responders, average gifts, total single package unit costs, total costs for the campaign (not including Contractor retainer), and net revenue and return on investment for each mailing. Summary projections for numbers of new members and donors/supporters, as well as numbers of members renewed, and summary totals for all figures above are necessary. The typical discussion and preparation time-frame for the creation of the NMAAHC membership program budget for submission to museum’s Administration department begins in mid-April and ends in late May of each year. The final budget for the next fiscal year is submitted in June. This budget is used definitively for all costs associated with direct mail production and consulting for the following fiscal year.

C.3.10. Assessing Costs – Contractor shall submit a proposed budget by due date specified by the NMAAHC. Costs will include estimates for all campaign elements creative and production work including postage and list rental. The contractor shall contract and submit invoices in its own name for the required copywriting, art and layout design when authorized by the Contract Officer’s Representative for National Museum of African American History and Culture Membership program. The contractor will be responsible for including costs related to printing, mailing, and postage.

C.3.11. Involvement with other service providers to the Membership Program.

C.3.11.1. Frequent regular involvement

ii. E-marketing - contractor subcontracts for these services

iii. Printing and lettershop mail house for front end direct mail packages - contractor subcontracts for these services

C.3.11.2. Limited involvement with NMAAHC Contractors

i. Membership data base – direct contract with the NMAAHC has been established

a. Work limited to creation of select requests for house appeal and acknowledgment file pulls which are submitted to NMAAHC for review and approval.

b. Discuss with NMAAHC any programming needs for any new programs.

C.3.11.3. No or very limited involvement

i. Caging

a. Agency may need to apprise the NMAAHC of any direct mail reply form that needs special handling by the caging company such as member surveys or other such interactive response device.

C.3.12. Proposal Cost Provision Requirement (Sample Packet)

C.3.12.1. For consideration of this proposal, Contractor must supply pricing based on National Museum of African American History and Culture samples provided (on the FTP site, with instructions on access to be fond din Section J, below) for one acquisition mailing, one renewal series monthly mailing, and one typical special appeal mailing to the house file. Contractor must use the RFP Pricing Response form attached (see form on the FTP site, with instructions on access to be found in Section J, below) and supply all costs in total form as noted for each line item listed, as well as a bottom line total cost estimate, including costs per thousand and per unit piece mailed. Estimates should include all costs incurred, including:

C.3.12.2. Please note the complexity of versions as described earlier in the Acquisition and Appeals sections of this document. For example, once costs have been separately aggregated for each line item above, one complete total for the entire campaign should also be shown, as noted on the sample attached. Monthly retainers are to be delineated as a separate line item in this section of costs, as shown.

C.3.12.3. Additionally, a narrative description of costs should include potential tests (use one or two examples of any package element change) for three expected acquisition and two renewal tests. Test costs should include the re-creation of art for the controls in acquisition and renewals should a test win, and roll-out or adoption of a new winning package is determined. Package testing is an established part of accepted strategy for performance improvement in the NMAAHC’s goals. In the proposal, Contractor will narrate testing methodologies and give examples of historical strategies that have generated higher client revenues within a museum or membership environment, and the opportunities and experience that the Contractor would bring to the table to the NMAAHC. It is important to keep in mind the museum’s constraints outlined throughout this RFP.

C.3.12.4. Note that the African American History and Culture Membership program absorbs the costs of the house file select request used in house appeals, renewals, and lapsed reinstatement in acquisition.

C.3.12.5. Registering with State in order to do Fundraising As the NMAAHC is an entity of the Smithsonian Institution and the Smithsonian Institution is an instrumentality of the United States federal government, the Smithsonian NMAAHC is not required to register with state agencies regarding fundraising.

C.3.12.6. The Smithsonian Institution taxpayer identification number is 53-0206027. This is the ID number used by all units of the Smithsonian Institution.

C.3.12.7. To summarize: for this proposal, supply estimates for an acquisition mailing; one appeal mailing; and one renewal month (all five notices – see estimated average quantities on samples) of mailing remembering that print costs for certain programs are done several times within a year to maximize cost efficiencies. A reminder: proposals will not be reviewed without the costs supplied on the RFP Pricing form. That form can be found on the FTP site referenced in Section J, below.

C.13 Additional Response Information

C.13.1. Contractor will include a full and complete company history, a complete and thorough listing of all current and past clients, a narrative describing how your agency might aid the NMAAHC Membership program in growth, higher revenues and member retention, cost savings, a description of and a selected sample of analytical reports and their normal distribution schedules to clients, a listing of your agency’s unique…