RFP S-206 Lottery Marketing and Advertising~2.pdf

STATE OF ARKANSAS

DEPARTMENT OF TRANSFORMATION AND SHARED SERVICES

OFFICE OF STATE PROCUREMENT

501 Woodlane St., Ste. 220

Little Rock, Arkansas 72201-1023

REQUEST FOR PROPOSAL (MAP)

SOLICITATION DOCUMENT

SOLICITATION INFORMATION

Solicitation Number:

S0000000206 Solicitation Issued:

January 20, 2023

Description: Advertising, Marketing and Media Buying Services

Department: DFA – Office of Arkansas Lottery

SUBMISSION DEADLINE AND DELIVERY OF RESPONSE DOCUMENTS

Proposal Opening Date: February 17, 2022 Proposal Opening Time: 2:00 PM, Central Time

Proposal submissions for this Request for Proposal must be submitted through ARBuy, the State’s eProcurement system. It can be accessed at https://arbuy.arkansas.gov. Proposals received after the submission deadline may be rejected as untimely. See Section 1.2 for information regarding Live Proposal Openings.

TSS OFFICE OF STATE PROCUREMENT CONTACT INFORMATION

TSS OSP Buyer: Jessica Lowder Buyer’s Direct Phone Number: 501-683-2222

Email Address: Jessica.lowder@arkansas.gov TSS OSP’s Main Number: 501-324-9316

TSS OSP

Website:

https://www.transform.ar.gov/procurement/ https://arbuy.arkansas.gov/ https://www.transform.ar.gov/procurement/

SECTION 1 – GENERAL INFORMATION AND INSTRUCTIONS

• Do not provide responses to items in this section unless specifically and expressly required.

1.1 INTRODUCTION

This Request for Proposal (RFP) is issued by the TSS Office of State Procurement (TSS OSP) for the Arkansas Department of Finance & Administration – Office of Arkansas Lottery (OAL) to obtain pricing and a contract or contracts for comprehensive creative marketing, advertising and media buying services.

These services, used in collaboration with the OAL’s administrative and marketing teams, shall develop and implement impactful and innovative communication in assisting the OAL in achieving its mission.

The contract awarded will be made to the Prospective Contractor determined to have submitted the proposal that is the most advantageous to the State. Direct all questions, comments, or concerns you may have regarding this solicitation to the TSS Office of State Procurement, not the OAL.

1.2 LIVE PROPOSAL OPENING

Use the information below to view the proposal opening online.

Microsoft Teams meeting:

Join on your computer, mobile app or room device Click here to join the meeting: https://teams.microsoft.com/l/meetup-join/19%3ameeting_NmUzMmVlMjktZmUyMS00MzY0LWJkMjAtZTgzZDVlNWFlNWNj%40thread.v2/0?c ontext=%7b%22Tid%22%3a%225ec1d8f0-cb62-4000-b327- 8e63b0547048%22%2c%22Oid%22%3a%225109d33d-8262-4b72-afca-2ac6eaa484ce%22%7d Meeting ID: 284 604 625 476 Passcode: YdpVkM Download Teams | Join on the web Or call in (audio only) +1 501-244-3310,457499652# United States, Little Rock

Phone Conference ID: 457 499 652#

1.3 TYPE OF CONTRACT

A. As a result of this RFP, TSS OSP intends to award a contract to a single Contractor.

B. The anticipated starting date for any resulting contract is July 1, 2023, except that the actual contract start date may be adjusted unilaterally by the State for up to three (3) calendar months. By submitting a signed proposal in response to the RFP, the Prospective Contractor represents and warrants that it will honor its proposal as being held open as irrevocable for this period.

C. The initial term of a resulting contract will be for three (3) years. Upon mutual agreement by the Contractor and Department, the contract may be renewed by TSS OSP for up to two (2) additional one-year terms or portions thereof, not to exceed a total aggregate contract term of five (5) consecutive years.

1.4 SOLICITATION SCHEDULE

For informational purposes, TSS OSP is providing a Solicitation Schedule; however, dates listed and noted with an asterisk (*) are anticipated dates only and are subject to change at the discretion of the State. All times are listed in Central Time.

TABLE A: TENTATIVE SOLICITATION SCHEDULE DATES ARE PROVIDE FOR REFERENCE

ACTIVITY DATE

RFP Release to Prospective Contractors January 20, 2023

Bidders Conference Jan 26, 2023 @ 10 am https://teams.microsoft.com/l/meetup-join/19%3ameeting_NmUzMmVlMjktZmUyMS00MzY0LWJkMjAtZTgzZDVlNWFlNWNj%40thread.v2/0?context=%7b%22Tid%22%3a%225ec1d8f0-cb62-4000-b327-8e63b0547048%22%2c%22Oid%22%3a%225109d33d-8262-4b72-afca-2ac6eaa484ce%22%7d https://teams.microsoft.com/l/meetup-join/19%3ameeting_NmUzMmVlMjktZmUyMS00MzY0LWJkMjAtZTgzZDVlNWFlNWNj%40thread.v2/0?context=%7b%22Tid%22%3a%225ec1d8f0-cb62-4000-b327-8e63b0547048%22%2c%22Oid%22%3a%225109d33d-8262-4b72-afca-2ac6eaa484ce%22%7d https://teams.microsoft.com/l/meetup-join/19%3ameeting_NmUzMmVlMjktZmUyMS00MzY0LWJkMjAtZTgzZDVlNWFlNWNj%40thread.v2/0?context=%7b%22Tid%22%3a%225ec1d8f0-cb62-4000-b327-8e63b0547048%22%2c%22Oid%22%3a%225109d33d-8262-4b72-afca-2ac6eaa484ce%22%7d https://teams.microsoft.com/l/meetup-join/19%3ameeting_NmUzMmVlMjktZmUyMS00MzY0LWJkMjAtZTgzZDVlNWFlNWNj%40thread.v2/0?context=%7b%22Tid%22%3a%225ec1d8f0-cb62-4000-b327-8e63b0547048%22%2c%22Oid%22%3a%225109d33d-8262-4b72-afca-2ac6eaa484ce%22%7d

Deadline for Prospective Contractor Questions Jan 29, 2023

Answers to Questions Posted to ARBuy* Feb 3, 2023

Proposal Due Date Feb 17, 2023 @ 2 pm

Initial Proposal Evaluation* Feb 22, 2023

Interviews* Feb 28-March 1, 2023

Final Proposal Evaluation* March 1, 2023

Discussions Kick Off Meeting* March 6, 2023

Finalize Discussions* Mar 24, 2023

Post Anticipation to Award* March 27, 2023

Award Contract* July 1, 2023

1.5 BIDDERS CONFERENCE

A. TSS OSP will host a bidders’ conference to provide additional information and clarification regarding the RFP.

1. The conference will take place on the date and time listed in Section 1.4 Table A.

2. The conference is important for Prospective Contractors to understand the tasks a Prospective Contractor shall complete when submitting a proposal (“Submission Requirements”).

3. Prospective Contractors may attend the conference via Teams.

Microsoft Teams meeting Join on your computer, mobile app or room device Click here to join the meeting: https://teams.microsoft.com/l/meetup-join/19%3ameeting_MzY5ZjZmMmYtOWY4OS00N2Y5LWJlNGYtOGQ3ZjFlYTY4ZDFi%40thread .v2/0?context=%7b%22Tid%22%3a%225ec1d8f0-cb62-4000-b327- 8e63b0547048%22%2c%22Oid%22%3a%225109d33d-8262-4b72-afca-2ac6eaa484ce%22%7d Meeting ID: 240 448 653 922 Passcode: gqT34t Download Teams | Join on the web Or call in (audio only) +1 501-244-3310,434866865# United States, Little Rock Phone Conference ID: 658 533 144#

The bidders conference presentation will be posted to the Solicitation posting in ARBuy.

1.6 CLARIFICATION OF SOLICITATION

A. Submit any questions requesting clarification of information contained in this Solicitation via the

Solicitation posting in ARBuy by the date and time listed in Section 1.4 Table A.

1. For each question submitted, Prospective Contractor should reference the specific Solicitation item number to which the question refers.

2. Prospective Contractors’ written questions will be consolidated and responded to by the State as deemed appropriate. The State’s consolidated written response is anticipated to be posted to the Solicitation posting in ARBuy by the close of business on the date provided in Section 1.4, Table A. If Prospective Contractor questions are unclear or non-substantive in nature, the State may request clarification of a question(s) or decline to answer.

B. The Prospective Contractor should notify the TSS OSP buyer of any term, condition, etc., that precludes the Prospective Contractor from submitting a compliant, Responsive Proposal. Prospective Contractors should note that it is the responsibility of the Prospective Contractor to seek resolution of https://teams.microsoft.com/l/meetup-join/19%3ameeting_MzY5ZjZmMmYtOWY4OS00N2Y5LWJlNGYtOGQ3ZjFlYTY4ZDFi%40thread.v2/0?context=%7b%22Tid%22%3a%225ec1d8f0-cb62-4000-b327-8e63b0547048%22%2c%22Oid%22%3a%225109d33d-8262-4b72-afca-2ac6eaa484ce%22%7d https://teams.microsoft.com/l/meetup-join/19%3ameeting_MzY5ZjZmMmYtOWY4OS00N2Y5LWJlNGYtOGQ3ZjFlYTY4ZDFi%40thread.v2/0?context=%7b%22Tid%22%3a%225ec1d8f0-cb62-4000-b327-8e63b0547048%22%2c%22Oid%22%3a%225109d33d-8262-4b72-afca-2ac6eaa484ce%22%7d https://teams.microsoft.com/l/meetup-join/19%3ameeting_MzY5ZjZmMmYtOWY4OS00N2Y5LWJlNGYtOGQ3ZjFlYTY4ZDFi%40thread.v2/0?context=%7b%22Tid%22%3a%225ec1d8f0-cb62-4000-b327-8e63b0547048%22%2c%22Oid%22%3a%225109d33d-8262-4b72-afca-2ac6eaa484ce%22%7d https://teams.microsoft.com/l/meetup-join/19%3ameeting_MzY5ZjZmMmYtOWY4OS00N2Y5LWJlNGYtOGQ3ZjFlYTY4ZDFi%40thread.v2/0?context=%7b%22Tid%22%3a%225ec1d8f0-cb62-4000-b327-8e63b0547048%22%2c%22Oid%22%3a%225109d33d-8262-4b72-afca-2ac6eaa484ce%22%7d all such issues, including those relating to the terms and conditions of the contract, prior to the submission of a proposal.

C. Prospective Contractors may contact the TSS OSP buyer with non-substantive questions at any time prior to the proposal opening.

D. An oral statement by TSS OSP will not be part of any contract resulting from this Solicitation and may not reasonably be relied on by any Prospective Contractor as an aid to interpretation unless it is reduced to writing and expressly adopted by TSS OSP.

1.7 DEFINITION OF TERMS

A. Unless otherwise defined herein, all terms defined in Arkansas Procurement Law have the same meaning herein.

B. “ACCS” means the Arkansas Concurrent Challenge Scholarship and is one of the scholarship programs funded by the Arkansas Scholarship Lottery.

C. “AACS” means the Arkansas Academic Challenge Scholarship and is one of the scholarship programs funded by the Arkansas Scholarship Lottery.

D. “ADHE” means the Arkansas Department of Higher Education and is the State agency that administers the scholarships funded by the Arkansas Scholarship Lottery.

E. “Arkansas Lottery Legislative Oversight Committee” is a committee made up of 12 members from the Arkansas General Assembly whose duties consist of reviewing the Arkansas Scholarship Lottery’s financial reports, recommending scholarship amounts, and setting scholarship eligibility requirements.

F. “ASL” means the Arkansas Scholarship Lottery and is a lottery whose net proceeds from the Office of the Arkansas Lottery are used to provide scholarships to Arkansas residents to attend Arkansas colleges and universities.

G. “AWCS” means the Arkansas Workforce Challenge Scholarship and is one of the scholarship programs funded by the Arkansas Scholarship Lottery.

H. “DFA” means the Arkansas Department of Finance and administration and is the State agency that houses the Office of Arkansas Lottery.

I. “OAL” means the Office of the Arkansas Lottery and is the State agency that oversees lotteries in Arkansas.

J. “Prospective Contractor” means a responsible offeror who submits a proposal in response to this solicitation.

K. The terms “Request for Proposal,” “RFP,” and “Solicitation” are used synonymously in this document.

L. “Requirement” means something required.

M. “Responsive Proposal” means a proposal submitted in response to this solicitation that conforms in all material respects to this RFP.

N. “Shall” and “Must” mean the imperative and are used to identify requirements.

O. “Specification” means any technical or purchase description or other description of the physical or functional characteristics, or of the nature, of a commodity or service. “Specification” may include a description of any requirement for inspecting, testing, or preparing a commodity or service for delivery.

P. “State” means the State of Arkansas. When the term “State” is used herein to reference any obligation of the State under a contract that results from this solicitation, that obligation is limited to the Department using such a contract.

1.8 RESPONSE DOCUMENTS

A. All proposal responses must be submitted through ARBuy, the State’s eProcurement system. The system can be accessed at https://arbuy.arkansas.gov.

B. Technical Proposal Packet

1. Responses within the Information for Evaluation and Exceptions sections must not contain the Prospective Contractor’s name or any other identifiers, including without limitation names of staff members, projects, products, and addresses.

2. Prospective Contractors shall utilize the Technical Proposal Packet to submit their responses.

3. The following items are proposal Submission Requirements and must be submitted as part of a Prospective Contractor’s proposal response.

a. Signed Proposal Signature Page. Signature may be ink or digital. (See Technical Proposal Packet.)

b. Technical Proposal response to the Information for Evaluation section included in the Technical Proposal Packet. Proposal response must be in the English language.

c. Completed Pricing Response. Official Solicitation Price Sheet attached to solicitation posting in ARBuy. Pricing must be proposed in U.S. dollars and cents.

d. Recommended Options Form. The Recommended Options form included in the Technical Proposal Packet allows Prospective Contractors to identify any recommended options or optional service ideas that may benefit the State that were not included in the Requirements and the proposed solution.

e. Proposed Subcontractors Form. The utilization of any proposed subcontractor is subject to approval by the Department.

f. Exceptions Form.

g. Copy of Prospective Contractor’s Equal Opportunity Policy.

4. The following items, which must be submitted prior to a contract award to the Prospective Contractor, may also be included with the Prospective Contractor’s proposal:

a. EO 98-04: Contract and Grant Disclosure Form.

b. Voluntary Product Accessibility Template (VPAT), if applicable.

5. DO NOT include any other documents or ancillary information, such as a cover letter or promotional/marketing information.

C. Redacted Copy of the Technical Proposal Packet and Completed Pricing Response

1. One (1) redacted (marked “REDACTED”) copy of the Prospective Contractor’s proposal response (see Section 6 of the Solicitation Terms and Conditions referenced in Section 1.10.)

1.9 PRICING

A. The Contractor(s) shall not be reimbursed for fees of any unauthorized expenses, or any expenses not previously approved by the OAL.

B. Any fees associated with providing the services outlined in this RFP, including but not limited to travel expenses, conference attendance, media purchases, and marketing material must be included in the pricing as negotiated for any resultant contract.

https://arbuy.arkansas.gov/

1.10 ACCEPTANCE OF REQUIREMENTS

A. Unless a Prospective Contractor expressly and conspicuously identifies any exception or exceptions to any of the Requirements in the Requirements Section(s) of this RFP by listing them on the Exceptions Form (see Technical Proposal Packet), Prospective Contractor understands and agrees its submission of a proposal to represent that its proposal meets all such Requirements.

B. A Prospective Contractor’s proposal may be rejected if a Prospective Contractor takes exception to any Requirements in the Requirements Section(s) of this RFP.

1.11 ADDITIONAL TERMS AND CONDITIONS

A. This RFP incorporates all of the Solicitation Terms and Conditions located on the TSS OSP website found at transform.ar.gov.

1. Any special terms and conditions included in this solicitation shall override the Solicitation Terms and Conditions.

B. Unless a Prospective Contractor expressly and conspicuously identifies any exception or exceptions to any of the terms in the Services Contract (SRV-1) Fillable Form (found here) by listing them on the Exceptions Form (see Technical Proposal Packet), Prospective Contractor agrees and shall adhere to all terms if selected as the successful Contractor.

1. Items identified as non-negotiable may only be modified if the legal requirement is satisfied and approved by the State.

C. A Prospective Contractor’s proposal may be rejected if a Prospective Contractor takes exception to any terms or conditions in the documents listed in Sections 1.10.A and 1.10.B.

https://www.transform.ar.gov/wp-content/uploads/2021/12/MASTER-Solicitation-Terms-and-Conditions-11-29-21.pdf https://www.transform.ar.gov/wp-content/uploads/2021/08/Services-Contract-SRV-1-Fillable-Form-V.2.pdf

SECTION 2 – REQUIREMENTS

• Do not provide responses to items in this section unless specifically and expressly required.

2.1 CURRENT ENVIRONMENT

In November of 2008, the Arkansas General Assembly approved an amendment to the Arkansas Constitution that established a lottery within the State of Arkansas to fund scholarships for tuition to Arkansas colleges and universities through the Arkansas Department of Higher Education (ADHE).

The sale of ASL tickets began in 2009 and to date provides games to Arkansans such as Mega Millions, Powerball, Natural State Jackpot, and Arkansas LOTTO, as well as numerous instant ticket games. Since ASL sales began in 2009, the revenue has provided more than $1.1 billion in proceeds for scholarships and more than 675,000 college scholarships have been awarded to Arkansans. The lottery has awarded more than $4 billion in prizes to players and about $355 million in retailer commissions to ASL retailers.

In 2015, the Arkansas Legislature established the Office of the Arkansas Lottery within the Arkansas Department of Finance and Administration (DFA). The ASL generated $579,564,702 million in sales in FY2022, making it the second highest year for sales since inception. The OAL’s mission is to maximize proceeds to scholarships in a responsible way. OAL oversees the operation of a lottery whose net proceeds provide scholarships to Arkansas citizens for attending Arkansas’ colleges and universities through the Arkansas Academic Challenge Scholarship, the Arkansas Workforce Challenge Scholarship, and the Arkansas Concurrent Challenge Scholarship.

Historically, the spring season, the holiday season, and anytime during high jackpot spikes have been the key marketing times during the year.

2.2 OBJECTIVES AND GOALS

Threats to the ASL’s future business growth include an increasingly competitive gaming environment in Arkansas and its neighboring states, as well as potential future legislative changes that may affect the operation of the OAL. It is the OAL’s intention to work with the Prospective Contractor to achieve the following objectives:

A. To generate revenue from the sales of current and future ASL games by recruiting new players, increasing the frequency of less committed players, and protecting the play of regular players.

B. To expand awareness, comprehension, and engagement of existing and future ASL games and products, and the OAL’s mission among consumers and stakeholders.

C. To expand customer loyalty and trust in the ASL program.

D. To continue outreach to the OAL’s primary demographic target audience (all adults aged 18 and over) and its secondary demographic target audiences to include:

1. OAL and DFA staff

2. Arkansas Legislators

3. The Arkansas Lottery Legislative Oversight Committee

4. Former, current, and future scholarship recipients and their families

5. ADHE as well as Arkansas colleges and universities

6. Current, lapsed, and potential lottery retailers

7. Current, lapsed, and potential lottery players

8. Non-players

E. To develop and implement comprehensive advertising, marketing, and media buy services across all applicable communication channels.

F. To develop and/or expand the Arkansas Scholarship Lottery’s business, brand, and product portfolio.

2.3 PROSPECTIVE CONTRACTOR MINIMUM QUALIFICATIONS

A. The Prospective Contractor shall have a Certified Letter of Credit in the amount of $500,000 from a banking institution with locations within the United States or shall have had an annual United States gross income of $5 million or more during the most recent fiscal year. The Contractor shall have generated this gross income from providing marketing, advertising, media buying, and public relations services.

B. The Prospective Contractor shall have a minimum of five (5) active creative services, marketing, advertising, and/or media buying accounts, with at least two (2) accounts having annual billings exceeding $1 million.

C. The Prospective Contractor shall have experience in multi-channel marketing, advertising, strategic planning, creative concepting, copywriting, media planning and buying, social and digital media, and public relations.

2.4 GENERAL SERVICE REQUIREMENTS

A. The Contractor shall purchase all media, marketing, and creative advertising materials required to provided services outlined in this RFP.

B. As requested by the OAL, the Contractor shall attend planning and follow-up meetings at the OAL offices in Little Rock, Arkansas. These meetings are typically held during normal business hours which are Monday through Friday, 8:00 a.m. until 5:00 p.m. CST. Scheduled times for meetings will be at the OAL’s discretion.

C. The Contractor shall participate in conference calls as requested by the OAL and shall communicate with the OAL as needed. Daily communication is typically required for effective account management.

D. As standard practice, and/or per the OAL’s discretion or approval, the Contractor shall track the results of all comprehensive advertising, marketing, public or government relations campaigns implemented. The Contractor shall provide the OAL with the tracking results at the end of each campaign.

E. If requested, the Contractor shall analyze, propose, and/or conduct market research to gain consumer insights that will drive the strategic direction of the ASL.

F. The Contractor shall disclose any litigation or conflicts of interest to the OAL in writing within 15 days of occurrence.

2.5 CAMPAIGN MANAGEMENT SERVICES:

A. Contractor shall manage projects and track the status of required tasks to complete advertising campaigns as directed by the Lottery. Specific requirements must include, but are not limited to:

1. Developing a project schedule for each campaign

2. Leading a lessons learned session and providing a written assessment of completed campaign.

3. Providing an analytical assessment of each campaign.

2.6 CREATIVE ADVERTISING AND MARKETING CAMPAIGNS

A. Campaigns must include television, radio, outdoor, print, and digital media campaigns.

B. The Contractor shall develop effective and cutting-edge creative for television, radio, print, outdoor, direct and digital advertising, as well as merchandising items, and point of sale materials.

C. The Contractor shall create campaigns that correspond with ASL’s stated goals, mission, and vision.

Campaigns must work synergistically with other advertising communications and with the OAL’s approved Annual Advertising and Media Plan, or any future advertising plan that may be approved by the OAL.

D. Digital marketing campaigns must effectively communicate with target audiences through all digital consumer touch points.

E. The Contractor shall place media and shall audit and verify media is broadcasted and/or published according to the Annual Advertising and Media Plan approved by the OAL, or any future advertising and marketing plan that may be approved by the OAL.

2.7 SOCIAL MEDIA CAMPAIGNS AND MANAGEMENT

A. The Contractor shall work in collaboration with the OAL’s Advertising and Marketing Director to manage social media advertising, marketing, and communications.

B. The Contractor shall develop strategies such as content development, creative development, and community management and optimization with the goal of increasing engagement among targeted audiences, effectively communicating the ASL brand and news, and reinforcing ASL’s presence and initiatives in the social arena.

2.8 PUBLIC RELATIONS CAMPAIGNS

A. The Contractor shall assist with Public Relations efforts including stakeholder communications, experiential marketing, events, and/or promotions.

B. The Contractor shall develop and provide planning and creative assets for Public Relations marketing programs so they work synergistically with other communications, and with the OAL’s approved Annual Advertising and Media Plan, or any other advertising plan that may be approved by the OAL.

2.9 MEDIA BUYING SERVICES

A. Contractor shall have the ability to manage complex purchasing of media for all Lottery products across all media platforms. The Lottery currently utilizes the following media platforms: broadcast, cable, digital, social, radio, outdoor, and sponsorships.

B. Contractor shall collaborate with the Lottery when developing strategic media plans to ensure key objectives are met.

C. Contractor shall build partnerships with media outlets to deliver added value for every media buy.

D. Contractor shall develop an annual media buying plan.

E. Contractor shall provide designated staff for daily optimization of digital advertising buys in compliance with best practices.

F. Contractor shall illustrate innovative strategy and consistently recommend new products, tools, and strategies to the Lottery.

G. Contractor shall collaborate with multiple internal and external partners to maximize the value for the Lottery’s media buying investment.

H. Contractor shall provide transparent performance analytics, including a dashboard for key performance indicator (KPI) tracking, accessible 24/7, to allow the Lottery to evaluate digital campaign efficacy in real time.

I. Contractor shall provide appropriate technical support to work with the Lottery’s internal digital team to create effective digital campaign tracking, including but not limited to the Lottery’s Google Analytics.

J. Contractor shall produce a post-buy analysis with recommendations for future campaigns.

K. Contractor shall attend monthly virtual meetings with the Lottery team to review results and shape the future media buys.

L. Contractor shall purchase all media within timelines and budgets established by the OAL, and/or in a manner consistent with approved briefs and shall remain vigilant and responsive in preparing, negotiating, and implementing last minute incremental media plans especially when jackpots reach and/or exceed pre-determined thresholds.

M. Contractor shall have the staff to handle an annual media budget buying in the range of $4,000,000 to $6,000,000.

2.10 WEBSITE DESIGN & HOSTING

A. The Contractor shall provide hosting for the ASL’s website.

B. The Contractor shall provide creative input into ASL’s website design and its contents in a way that enhances the consumer’s experience with the ASL brand.

C. The Contractor shall manage the design of existing and newly created content for ASL’s website so that it works synergistically with all other marketing and advertising communications and with the OAL’s approved Annual Advertising and Media Plan, or any other advertising plan that may be approved by the OAL.

D. Upon request by the OAL, the Contractor shall provide website Search Engine Management (SEM) and Search Engine Optimizations (SEO) services.

E. The source code for the current website hosting will be provided to the new hosting vendor by the

OAL.

2.11 CREATIVE BRIEFS AND APPROVALS

A. Using consumer led strategies, the Contractor shall develop Creative Briefs for each new advertising initiative. The OAL will provide briefing documents that will outline the initiative’s objectives, deadlines, and any mandatory elements required by the OAL. The Contractor shall use the briefing documents provided by the OAL as a guide for creating the Creative Briefs.

B. When developing Creative Briefs, the Contractor shall plan creative development schedules that allow for developing and presenting integrated solutions, editing and revising selected options, obtaining the OAL’s final approval, and producing and distributing the finished product.

C. Unless otherwise directed by the OAL, the Contractor shall include the following information in the Creative Brief:

1. Campaign Summary

2. Timelines

3. Budget

4. Target Audience

5. Deliverables

6. Mandatory Elements

7. Other pertinent information each initiative may require

8. Approval Requirements

D. Unless waived by the OAL, the Contractor shall have the Creative Brief approved and signed by the OAL’s Marketing and Advertising Director, or his/her designee.

E. Unless waived by the OAL, all creative submitted by the Contractor shall be evaluated for approval based on its delivery against the approved Creative Brief.

F. Unless waived by the OAL, the Contractor shall produce and distribute all creative within the budgets and timelines submitted in the Creative Brief and approved by the OAL.

G. Under circumstances when the preparation of creative briefs is not advantageous to the OAL, such as for the purchase of last-minute incremental media plans when jackpots reach and/or exceed pre-determined thresholds, the OAL reserves the right to waive the creative brief development requirement.

2.12 CREATIVE APPROVALS

A. Unless waived by the OAL, the Contractor shall obtain written approval from the OAL prior to developing or producing any advertisement or promotional product.

B. The Contractor shall not deviate from approved scripts, storyboards, print layouts, creative briefs, or any element of a previously approved advertisement, promotional item, or other creative media of any campaign or initiative without prior, written approval from the OAL.

C. The Contractor shall incorporate all changes to any creative element of any initiative or campaign as requested by the OAL. However, the Contractor may submit for approval any alternative creative solutions deemed prudent by the Contractor.

D. Under circumstances when giving formal, written creative approvals is not advantageous to the OAL, such as for the purchase of last-minute incremental media plans when jackpots reach and/or exceed pre-determined thresholds, the OAL reserves the right to waive the formal, written creative approval requirement.

2.13 DEVELOPMENT AND PRODUCTION

A. The Contractor shall work in collaboration with the OAL’s Advertising and Marketing Director to develop, produce, and manage all advertising, marketing, and communications campaigns and initiatives.

B. The Contractor shall participate in strategy development to ensure the strategies are consumer driven and in accord with the OAL’s mission and vision.

C. The Contractor shall develop advertising and marketing creative that represents the ASL brand in a positive light and in a manner consistent with the brand identity and the OAL’s core mission and vision.

D. The Contractor shall produce developed creative within the budgets and timelines approved by the OAL using the most cost-efficient manner possible while still achieving the highest quality production standard.

E. The Contractor shall develop effective and cutting- edge creative for all advertising and marketing campaigns, merchandising items, and point of sale materials.

F. The Contractor shall assist the OAL in developing ASL game names, product logos, or other art that may be requested by the OAL.

2.14 ANNUAL CREATIVE ADVERTISING AND MARKETING PLAN

A. The Contractor shall submit a Creative Advertising and Marketing Plan to the OAL before July 1 of each fiscal year. Arkansas’ fiscal year is July 1 to June 30.

B. The OAL will provide the Contractor with an Annual Marketing Plan to be used as an aid in the creation of the Creative Advertising and Marketing Plan. The Contractor shall work in collaboration with the OAL when creating the Creative Advertising and Media Plan.

C. The Advertising and Marketing Plan must be categorized by each business initiative and must include at minimum the following information:

1. Innovative approaches to be used during the year

2. Strategies to be used during the year to achieve the OAL’s goals and objectives

3. Key Performance Indicators (KPI’s) for campaign performance evaluations

4. Proposed spending for media, production, talent, research, special events opportunities, promotional activities, and other expenses specified by the OAL

5. Definition of target audiences

6. Allocation amount categorized by media type and market

7. Gross Rating Point (GRP) objectives with reach, frequency, and efficiency analysis

8. Media Mix, Daypart Mix, and Unit Mix recommendations and rationale.

2.15 BRANDING

A. Contractor shall serve as the creative and strategic lead for all retail Lottery products to ensure marketing initiatives are aligned and designed to guarantee continuity and brand vision. Primary duties shall include, but are not limited to:

1. Building and evolving the Lottery’s refreshed brand.

2. Attracting new retail customers.

3. Engaging with current Lottery players.

4. New customer retention.

2.16 MASS MEDIA ADVERTISING SERVICES

A. Contractor shall provide expertise to the Lottery and develop the following initiatives:

1. Customer Engagement and Campaigns

2. Customer Relationship Management

3. Retail and Vending Strategy

4. Retail Merchandising

5. Sales Incentives

6. Retail Promotions

7. Sales Support

8. Estimates and Billings for Printing and Production

2.17 RETAIL ADVERTISING SERVICES

A. Contractor shall create advertising and marketing promotions and campaigns to be used at Lottery retailer locations. Specific requirements include, but are not limited to:

1. Drive loyalty for Lottery customers.

2. Provide knowledge of merchandising tools, retail trends, effective in-store placement, retail innovation and changes in consumer behaviors.

3. Develop an extensive understanding of all current and future brick-and mortar retail channels and customers. Examples of information include retail strategies, products, incentives, promotions, and communications.

2.18 SOCIAL MEDIA ADVERTISING SERVICES

A. Contractor shall have the ability to increase engagement on all social media platforms around Lottery products and brand. This must include social media strategy development, and maintenance for the Lottery’s social media channels. Specific requirements must include, but are not limited to:

1. Social Media Product Promotional Strategy.

2. Social Media Product Focused Content Planning.

3. Social Media Product Focused Consumer Trends.

2.19 PRODUCTION SERVICES:

A. Contractor shall provide production services capable of supporting all aspects of a given campaign, including but not limited to:

1. Print design

2. Point of Sale (POS),

3. Video

4. Radio

5. Direct marketing

6. Out of home

7. Digital

8. Other forms of production services necessary to support the Lottery’s marketing campaign(s)

2.20 CREATIVE DEVELOPMENT SERVICES

A. Contractor shall provide creative services such as concept development, copywriting, art direction, layout and design, video and image collection, graphic design, asset organization and management, and other creative services needed to support, develop, and track the Lottery’s brand and marketing campaign(s).

B. Specifically, Contractor shall assist with developing the following:

1. Television Advertising.

2. Radio Advertising.

3. Digital and Social Media Advertising.

4. Out of Home/Billboard Advertising.

5. Print Production and Delivery.

6. Point-of-Sale (POS) Design, Production, and Delivery.

2.21 ACCOUNT TEAM STAFFING

A. Contractor shall provide a full-time account team to support the Lottery account. The Contractor shall be required to provide a proposed staffing plan during the Discussions phase.

B. The State shall have the right to approve or reject proposed staff members prior to the finalization of the plan after Contract Award.

C. Contractor shall at minimum have two (2) full-time, in-house media buyers with buying experience in Arkansas media markets.

D. The Contractor shall provide at least one (1) dedicated staff member to manage the daily operations of the OAL Account and to act as a liaison between the OAL’s Advertising & Marketing Director and the successful Contractor of this solicitation.

E. In the event of a vacancy or upon request by the OAL, the Contractor shall replace any staff member assigned to the State’s account. The Contractor shall provide the OAL with a replacement having equal or higher qualifications and expertise than the staff member being replaced. The Contractor shall provide the replacement in such a way that does not disrupt the daily operations of the OAL.

OAL shall have the right to approve or reject proposed replacements.

F. It is preferred the Contractor have a working knowledge of the lottery industry to provide the OAL with informed recommendations and business decisions. To build and maintain the required knowledge or the lottery industry, the Contractor and/or their staff assigned to the OAL’s account, shall attend lottery and/or gaming conferences periodically throughout the contract term if requested by the OAL.

Lottery and/or gaming conferences are typically held at various locations throughout the United States.

2.22 BILLING AND INVOICING:

A. Contractor shall have the ability to notate the account code (i.e., product specific) on each invoiced line item as required by the Lottery.

B. The Contractor shall have the ability to summarize total amounts by account code on each invoice.

Contractor shall have the ability to provide back-up documentation (i.e., vendor invoices, receipts, etc.) for all subcontractor and vendor expenses.

C. Contractor shall have the ability to provide payment information to subcontractor and vendors to include payment date and check number (or similar).

D. Invoices must be accompanied by Lottery-signed Cost Estimates or Media Authorizations. Invoices must be submitted as one package and no later than the fifth of each month. The Lottery will provide training on account codes and invoicing procedures.

2.23 REPORTS

A. The Contractor shall compile reports in partnership with the OAL’s Director of Advertising and Marketing or his/her designee. The Contractor shall submit all reports to the OAL in a format and within the timeframes approved by the OAL.

B. Post Campaign Report

The Contractor shall submit a Post Campaign Report to the OAL in the quarter following the conclusion of a campaign phase, media flight, promotional event, website or social media initiative, or public relations project. The report must include the following information:

1. A recap of the initiative or media buy

2. Total expenditures

3. Performance against established KPI’s

4. Return on Investment

5. The overall effectiveness of each initiative

C. Status Reports The Contractor shall submit a Status Report to the OAL weekly. The report must include the following information:

1. A detailed status update of all current projects, production jobs and promotional events

2. Timelines for all initiatives, allowing no fewer than 3 days for the OAL approval at any stage

D. Media Flowcharts The Contractor shall monitor and maintain Media Flowcharts on an ongoing basis to determine and improve the Return on Investment and effectiveness of all media buys. The flowcharts must be submitted to the OAL as requested and must be current to include the following information:

1. Media type

2. Market Tiers

3. GRP Levels

4. Creative rotation

5. Costs for each campaign, summarized by campaign, month, quarter, and year

E. Approved Expenditure Reports

1. Approved Expenditure Reports will be utilized by the OAL to ensure all expenses are properly accounted for and budget plans remain aligned with marketing initiatives.

2. Upon request, the Contractor shall provide any supporting documentation that may be needed for verification of expenditures such as documents regarding staffing, production hours, or other information deemed appropriate by the OAL.

3. The Contractor shall submit Approved Expenditure Reports to the OAL the first week of each month and must include the following information from the previous month:

a. A summary of all approved and estimated expenditures to date

b. Available funding amount in the OAL budget

c. Amount of funding currently committed

d. Estimate of invoicing for approval and previously approved invoicing status

2.24 OWNERSHIP/END OF CONTRACT TRANSITION

A. Upon expiration or termination of this contract, the Contractor shall transfer property rights of all data and deliverables (intellectual and tangible) to the OAL and shall not hold ownership or an intellectual property claim to any data or deliverable associated with the OAL account including but not limited to the following:

1. Patents

2. Trademarks

3. Logos

4. Television, radio, and outdoor advertising and marketing products

5. Printed advertising and marketing products

6. Media Schedules

7. Digital products including websites and social media

8. Third party data, analytics and/or records

B. Upon expiration or termination of this contract, the Contractor shall transfer all data, deliverables, and products the Contractor has created, developed, produced, or managed while performing the services outlined in this contract to the OAL and shall not charge a fee to the OAL for this service.

C. The Contractor shall transfer all data and deliverables associated with the OAL account to the OAL within thirty (30) calendar days of the expiration or termination date of this contract and all data, deliverables, and products shall become the exclusive property of the OAL.

D. The Contractor shall not utilize any portion of the projects created, developed, produced, or managed including all deliverables and creative concepts without the prior, written consent of the Executive Director of the Office of the Arkansas Lottery.

E. If the successful Contractor is/are one other than the current service provider, upon execution of a contract with the OAL, the Contractor shall initiate and coordinate the transition of services from the current provider.

F. Should any subsequent contract for creative advertising, marketing and media buy services be awarded to a provider other than the awardee of this RFP, the then current Contractor shall, to the greatest extent possible and reasonable, cooperate with the OAL in initiating a smooth and orderly transition to the next contractor.

2.25 PERFORMANCE STANDARDS

A. State law requires that qualifying contracts for services include Performance Standards for measuring the overall quality of services that a Contractor shall provide.

B. The State may be open to negotiations of Performance Standards prior to contract award, prior to the commencement of services, or at times throughout the contract duration.

C. Performance Standards shall not be amended unless they are agreed to in writing and signed by the parties.

D. Failure to meet the minimum Performance Standards as specified will result in the assessment of damages.

E. In the event a Performance Standard is not met, the Contractor will have the opportunity to defend or respond to the insufficiency. The State has the right to waive damages if it determines there were extenuating factors beyond the control of the Contractor that hindered the performance of services. In these instances, the State has final determination of the performance acceptability.

F. Should any compensation be owed to the Department due to the assessment of damages, Contractor shall follow the direction of the Department regarding the required compensation process.

SECTION 3 – SELECTION

• Do not provide responses to items in this section.

3.1 SELECTION PROCESS

A. TSS OSP will review each Technical Proposal Packet to verify submission Requirements have been met. Technical Proposal Packets that do not meet submission Requirements will be rejected and will not be evaluated.

1. The State may conduct cost checks based on the cost submitted by each Prospective Contractor on the completed Pricing Response.

a. Prospective Contractors submitting Responsive Proposals with a proposed cost that falls twenty-five percent (25%) or more from the average submitted cost may be asked to justify their submitted cost.

b. Should TSS OSP request clarification and/or additional information regarding cost, Prospective Contractors shall provide clarification and/or additional information as specified by the request.

B. A Department-appointed Evaluation Committee will evaluate and score qualifying Technical Proposals. Evaluation will be based on Prospective Contractor’s response to the Information for Evaluation section included in the Technical Proposal Packet.

1. Members of the Evaluation Committee (Evaluators) will individually review and evaluate proposals and complete an Individual Score Worksheet for each proposal. Individual scoring for each Evaluation Criteria will be based on the following Scoring Description.

SCORE DESCRIPTION

The response provides metrics clearly establishing that the Prospective Contractor is reliable and capable of fully performing the required services.

The response provides metrics suggesting that the Prospective Contractor’s level of performance may be acceptable, but it does not clearly establish that the Prospective Contractor is reliable and capable of fully performing the required services.

The response provides metrics clearly establishing that the Prospective Contractor is unreliable and incapable of fully performing the required services.

2. After initial individual evaluations are complete, the Evaluators will meet to discuss their individual ratings. At the initial consensus meeting, each Evaluator will be afforded an opportunity to discuss his or her rating for each evaluation criteria.

3. After Evaluators have had an opportunity to discuss their individual scores with the committee, the individual Evaluators will be given the opportunity to change their initial individual scores, if they feel that is appropriate.

4. The final individual scores of the Evaluators will be recorded on the Pre-Interview Consensus Score Sheets and averaged to determine the group or consensus score and rank for each proposal.

5. Other agencies, consultants, and experts may also examine documents at the discretion of the Department.

C. Prospective Contractors submitting Responsive Proposals will be contacted by TSS OSP to schedule an interview.

1. Prospective Contractors shall attend the interview as scheduled by TSS OSP.

2. Evaluators will complete an Individual Score Worksheet for each interview. Evaluation will be based on Prospective Contractor’s responses to questions presented during the interview Individual scoring for each interview will be based on the Scoring Descriptions in 3.1.B.1.

3. During a final consensus meeting, after all interviews are complete, Evaluators will have the opportunity to discuss the interviews and change their individual interview scores on the Post- Interview Consensus Score Sheet, if they feel that is appropriate.

4. The final individual scores of the Evaluators will be recorded on the Post-Interview Consensus Score Sheets and averaged to determine the group or consensus score and rank for each proposal.

D. During the final consensus meeting, cost information will be provided to the Evaluators to allow them to determine if moving forward with the highest-ranking Prospective Contractor is the most advantageous to the State.

E. Should the State request clarification and/or additional information Prospective Contractors’ responses, Prospective Contractors shall provide clarification and/or additional information as specified by the State.

F. TSS OSP will submit responses and pricing received from the interviewed Perspective Contractors, along with the Evaluation Committee’s recommendation to the Department for review and approval to move into Discussions.

G. The State will move forward into Discussions with the highest-ranking Prospective Contractor based on the Grand Total Score for each proposal, unless the highest-ranking Prospective Contractor’s response is determined to not be the most advantageous proposal to the State.

3.2 EXPLANATION OF THE SUB-SECTIONS OF THE TECHNICAL PROPOSAL

A. Experience

1. The Experience sub-section included in the Technical Proposal Packet allows Prospective Contractors to differentiate themselves based on their experience, technical capability, and understanding of the State’s specific needs.

2. Prospective Contractors should identify expertise in the form of a claim and provide relevant experience to support each claim.

3. Prospective Contractors should use verifiable metrics (number of accounts, size of accounts, years of experience, customer satisfaction ratings) to support each claim.

B. Solution

1. The Solution sub-section included in the Technical Proposal Packet allows Prospective Contractors to differentiate themselves based on their proposed solution and/or approach to solve the State’s specific needs.

2. Prospective Contractors should provide a high-level overview of the Prospective Contractor’s proposed solution and/or approach to services using the Requirements outlined in the RFP.

3. Proposed solutions should be non-technical and include the Prospective Contractor’s recommendations for meeting the objectives and Requirements of the RFP.

4. Additional service options and recommendations above and beyond those included in proposed solution should be included in the Recommended Options Form.

C. Risk

1. The Risk sub-section included in the Technical Proposal Packet allows Prospective Contractors to identify and prioritize major risks that they reasonably foresee could potentially prevent or impair the Prospective Contractor’s delivery of the solution as offered in the proposal or to otherwise fail to meet the State’s desired outcome, specifications, and performance standards, and how they will mitigate, manage, and/or minimize each risk listed.

a. Prospective Contractors should include sources, causes, or actions that are both within and beyond the control of the Prospective Contractors that they reasonably foresee may cause cost increases, delays, amendments, or dissatisfaction to the State.

b. Risks should be described in simple, clear, and non-technical terms.

c. Prospective Contractor should explain how the Prospective Contractor will mitigate, manage, and/or minimize each risk listed.

i. The Documented Performance cell should include details such as how many times any identified risk was previously mitigated and the impact on the Prospective Contractor’s performance in terms of time, cost, and client satisfaction.

D. Interview

1. The Interview will allow Prospective Contractors to further demonstrate their experience in providing the services outlined in the RFP.

a. Each Prospective Contractor meeting the submission requirements will be contacted by TSS OSP to schedule an interview. Prospective Contractors shall attend the interview as scheduled by OSP.

b.