T16SOL10021_AR_VR_RFP.pdf

CONFIDENTIAL

Smithsonian Institution

SI # T16SOL10021

Smithsonian Enterprises Media Virtual & Augmented Reality Partner

I. Background

A. About Smithsonian

The Smithsonian Institution is a non-profit trust instrumentality created by 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 nine research facilities.

In 2013, more than 26 million people from around the world visited the museums and the National Zoo. The total number of objects, works of art and specimens at the Smithsonian is estimated at nearly 137 million. The Smithsonian collections are the basis for research, exhibitions and public programs in the arts, history and culture, and the sciences. The Institution’s mission is the “increase and diffusion of knowledge.” See additional information - the Smithsonian’s Strategic Plan Executive Summary - attached as Exhibit A.

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

Additional information about the Smithsonian Institution is available at: www.si.edu

B. About Smithsonian Enterprises Smithsonian Enterprises (SE) is the media and business arm of the institution. Its businesses include the Institution’s retail, media, consumer products and education products divisions.

Reaching 100M+ with its media offerings, SE offers a range of products and services that help to generate funding for Smithsonian’s core mission, museums and research. All while remaining consistent with the Smithsonian mission, culture, governance, and status as a trust instrumentality of the United States and a tax-exempt organization. By providing products and services that reflect the mission of the museums and research centers, Smithsonian Enterprises plays a critical role in advancing the Institution’s mission: the increase and diffusion of knowledge.

C. About Smithsonian Media

Housed under Smithsonian Enterprises, the Smithsonian Media Group’s reach is extensive and global, connecting with more than 60 million users annually. Its extensive distribution system spans many platforms and outlets, among them Smithsonian magazine, Air & Space magazine, Smithsonian Books, the Smithsonian Channel, Smithsonian Live Events, and the wider Smithsonian Digital Network, including the Smithsonian Digital Studio and Smithsonian.com.

Additional information about the Smithsonian Media is available at:

• Smithsonian Magazine and website: www.smithsonian.com

• Air and Space Magazine: www.airspacemag.com http://www.si.edu/ http://www.smithsonian.com/ http://www.airspacemag.com/

D. About Augmented and Virtual Reality

The RFP focuses on two areas defined below – Augmented and Virtual Reality

1. Virtual reality (VR) is an artificial environment that is created with software and presented to the user in such a way that the user suspends belief and accepts it as a real environment.

On a computer, virtual reality is primarily experienced through two of the five senses: sight and sound.

2. Augmented reality (AR) is the integration of digital information with live video, images or the user's environment in real time. AR takes an existing image and blends new information into it. It might be online, mobile or experiential.

For the purposed of this RFP, the Smithsonian envisions the creation of compelling experiences that are either stand-alone AR or VR and / or both integrated together. Activities that engage consumers and allow opportunities for immersion in Smithsonian experiences, knowledge and collections. These experiences can be experiential, mobile, headsets or web based. They must have clear monetization opportunities.

E. About the Project

SE wishes to expand its media presence, and its access to over 200 affiliated museums, in the augmented and virtual reality space. Through this request for proposals (“RFP”) is soliciting multiple companies that specialize in the funding, development, production and exploitation of augmented reality (AR) and virtual reality (VR) experiences both in physical locations and through media and digital distribution channels. SE envisions awarding multiple contracts based on specific verticals of technology / experiential expertise in the AR / VR space.

A company should have a strong track record of funding and creating compelling consumer experiences around immersive AR / VR environments and productions. Productions may range from location-based projects with large audiences to one to one engagements on a headset. A company must have a track record of success in the area the specific area they pitch – for example, working with the top VR headset makers, creating entertainment AR experiences or producing work for in person experiences. Projects (the “Projects”) encompass the funding, development, production and exploitation of quality, innovative AR/VR offerings for location based entertainment and in home engagements that utilize or are inspired by Smithsonian intellectual property, collections, exhibitions, research, staff resources, and the themes of art, culture, history, and science; are infused with the characteristics and reputation of the Smithsonian brand; and demonstrate the Smithsonian mission for “the increase and diffusion of knowledge” (hereafter each individual offering shall be referred to as a “AR / VR Offering”).

The Smithsonian offers to the selected companies the proven appeal of both the Institution’s compelling content, as well as Smithsonian brand through an exclusive SE license. SE will work with the selected companies to identify and use best efforts to facilitate access to key Smithsonian collections, exhibitions, research, and staff resources (hereafter defined as “Smithsonian Content”) in connection with the Project. Smithsonian anticipates that Smithsonian Content will be the basis of and inspiration for the Projects. All uses of Smithsonian Content to be approved in advance by Smithsonian. The Smithsonian expects that the successful companies will also bring to the relationship an ability to develop, produce and exploit the AR/VR offerings created for the Projects. Further, the Smithsonian also expects that in turn the successful companies will capitalize on the appeal of the Smithsonian brand and the depth of Smithsonian resources to develop differentiated and superior AR/VR products with the broadest possible reach and high monetization value.

II. Scope of Work

A. The Smithsonian, through its Smithsonian Enterprises (SE) Media division, is seeking exclusive AR/VR content development and exploitation partners (hereafter defined as the “Companies”) to implement the Projects and, specifically, to fund, develop produce and exploit AR/VR Offering to consumers and key distribution partners. The business will encompass the Smithsonian and potentially its 200+ affiliate museums. SE is open to awarding multiple contracts based on specific verticals of expertise or projects. SE anticipates receiving a royalty on the revenue generated by the Projects subject to a contractual agreement with a term of 3 years (with option to renew for 3 additional years). The Smithsonian anticipates beginning development of the Projects by no later than Spring 2016.

B. The Smithsonian seeks Companies that can do the following in funding, developing, producing and exploiting the Projects:

1. Provide a deep understanding of the AR / VR industry, including business and creative trends, production methods, costs and competitive offerings

2. Show a strong track record of creating compelling consumer content and applying that experience in the AR / VR market. That includes development and production of content, securing funding for content and sales / distribution of AR / VR content to appropriate platforms and experiences.

3. Fund jointly approved and developed Smithsonian or an affiliate network or museum AR / VR Offering

4. Support the Smithsonian mission for “the increase and diffusion of knowledge” through the funding and creation of quality, innovative, and relevant AR / VR Offerings that offer unique audience experiences and seamlessly incorporate appropriate content consistent with the Smithsonian Brand.

3. Employ strong, creative development and production capabilities.

4. Create meaningful monetization opportunities for Smithsonian AR / VR Offering

5. Support marketing and promotion of the Projects via print, digital, social media, other emerging media channels or new distribution outlets, with corporate commitment and financial resources.

6. Establish a process that will:

a) Allow Smithsonian to perform a review to evaluate and approve the proposed elements of the Projects, including each AR / VR Offering’s creative, budget and monetization and distribution plan.

b) Allow Smithsonian to perform a review to evaluate and approve any marketing and / or use of brand, for compliance with the Smithsonian mission and brand identity.

c) Provide SE, on an annual basis, with the strategic plan for the Projects that reflects VR Offering’s budget, development, production, and execution.

7. Provide a positive, transparent, and responsive working relationship with

Smithsonian that enables the Projects to successfully operate during the course of the relationship.

C. The Smithsonian anticipates successful Companies will be responsible for executing all aspects of the Projects, subject to Smithsonian approval, including but not limited to the following:

1. Development of an overall AR / VR strategy and execution of that strategy upon approval by SE. This may involve but not be limited to:

a) Identification of consumer facing AR / VR opportunities with consumer platform targets, content opportunities and a distribution plan

b) Facilitation of contracts with any appropriate distribution partners

c) Develop, fund, produce and exploit AR / VR Offerings

d) Securing required partnerships, with SE approval, to execute against all requirements of the strategy.

2. Ensuring that the Projects and all related services and activities are conducted within the highest standards of quality, integrity, and ethics, and recognizing the Smithsonian’s status as a tax-exempt entity.

3. Administrative and back office functions, to include:

a. Statement of royalties due to SE concurrent with the royalty

b. Annual royalty forecasts and updates on a timeline to be agreed upon between

SE and the successful companies.

4. The Company will comply with any requirements that are necessary for the execution of the Projects.

D. Smithsonian contemplates providing the following support for the Projects:

1. Reasonable access to Smithsonian Content as appropriate for the purposes of developing AR / VR Offerings for the Projects.

2. Promotion, at Smithsonian’s discretion, through Smithsonian Enterprises website with possible access to other Smithsonian websites and other Smithsonian marketing channels to be agreed upon.

3. A non-exclusive license to use the Smithsonian logo for purposes of development, production, sales, promotion, operation and administration of Projects.

4. A non-exclusive license to use and reformat approved Smithsonian Content for the purpose of the development, packaging, sales, promotion, operation and administration of Projects.

5. Smithsonian staff to perform a review to evaluate and approve the proposed elements of the Project, including each AR / VR Offering, marketing and use of brand, for compliance with the Smithsonian mission and brand identity.

Depending on the level of support provided by the Smithsonian, for tax compliance purposes, there may need to be two separate agreements between the Smithsonian and the selected Companies: a license/representation agreement and a services agreement.

E. Exclusivity. Smithsonian anticipates that the contract with the selected Company will be exclusive to SE and will concern only the Projects detailed in this RFP. The Smithsonian may contract at any time with any other individuals or entities to establish, develop, and promote other types of Projects and programs that are not addressed by the RFP or outside of the Companies expertise or RFP bid.

F. Notable Contract Concepts. The Smithsonian anticipates entering into a contract(s) that will include certain “Notable Contract Concepts”, attached hereto in Exhibit B (Notable Contract Concepts) and incorporated by reference herein. Please read Exhibit B carefully, as it contains information essential to the conduct of the Project.

III. RFP Instructions and Conditions

A. General Instructions and Conditions

1. The purpose of this RFP is to provide interested parties with sufficient information to enable them to prepare and submit proposals for consideration by the Smithsonian. Your proposal should only address the services and requirements described herein.

2. Proposals prepared in response to this RFP shall comply with the instructions and proposal requirements contained in this document. Proposals that deviate from these instructions and requirements may be disqualified at the Smithsonian’s discretion.

3. The Smithsonian reserves the right to enter into negotiations with companies in the competitive range at its discretion and based upon the best interests of the Smithsonian.

4. The Smithsonian is not responsible for paying any proposal preparation costs or any other costs associated with a response to this request. This RFP does not obligate the Smithsonian to enter into any agreement, nor shall it be construed as authorization for companies to proceed with any work directly or indirectly related hereto.

5. All information and materials submitted in response to this RFP for consideration by the Smithsonian will become the Smithsonian’s property and will be returned only at the Smithsonian’s discretion.

6. This RFP contains non-public and proprietary business information regarding Smithsonian and its operations. This RFP is intended for use only by Companies that have executed a Non-Disclosure Agreement restricting the use and disclosure of the information contained herein. All information provided by Smithsonian is confidential and is subject to the provisions of the Non-Disclosure Agreement.

B. Pre-Submittal Requirements.

1. Companies interested in participating in this RFP are requested to provide notice of their intent to submit a proposal. Please submit written notification by email to the attention of Treffaney R. Lowe at lowetr@si.edu. This email notification should be received by 2:00 p.m. Eastern time on Friday, February 26, 2016.

2. Questions. All substantive and administrative questions about this RFP must be submitted in writing by email to the attention of Treffaney R. Lowe at lowetr@si.edu. Questions must be submitted by 2:00 P.M. Eastern time on Friday, February 26, 2016 in order to ensure a response. Questions having an impact on the RFP will be answered and issued to all interested companies via RFP amendment.

C. Submission Process.

1. This RFP is being issued to Companies interested in developing, packaging, promoting, selling, and operating the Project as described herein. Each Company must submit one (1) original of its proposal. In addition, one (1) digital copy on a USB drive must be submitted to the attention of Treffaney R. Lowe at lowetr@si.edu by the date and time specified below in C.3.

2. Proposals and proposal modifications shall be submitted in sealed envelopes or packages, with the subject matter of the RFP and the name and address of the Company clearly identified. Proposals and modifications sent via email, fax, or to any other address will not be considered.

3. All hard copies of the proposals and digital copies on USB drive must be sent to the person and address specified below via courier service (i.e. FedEx, UPS, DHL) or hand delivery and must be received no later than by 2:00 p.m. Eastern time on Friday, March 18, 2016 in order to be considered.

Proposals shall be sent to:

By U.S. Postal Service:

Treffaney R. Lowe Smithsonian Institution Office of Contracting

P.O. Box 37012, MRC 1200 Washington DC 20013-7012 or

By Commercial Carrier (Federal Express, USP, etc.)

Smithsonian Institution Office of Contracting ATTN: Treffaney Lowe 2011 Crystal Drive Suite 350 Arlington, VA 22202-3709 mailto:Treffaney

4. Smithsonian reserves the unconditional right to cancel this RFP or to terminate negotiations at any time without cost or liability to Smithsonian. Participation in this RFP or any resulting contract constitutes an affirmative waiver by Companies of any claim to proposal preparation costs. Interested Companies should note that this is not a solicitation for a federal contract and is therefore not governed by federal procurement procedures.

5. The Smithsonian reserves the right to reject any and all proposals received as a result of this request. Noncompliance with the instructions and conditions of this RFP may result in disqualification of your proposal. The Smithsonian may refuse to consider any proposal received after the exact date and time specified for receipt.

6. At Smithsonian’s option, Companies in the competitive range may be invited to meet with Smithsonian representatives in person or over the telephone in Washington D.C. to discuss their proposals and answer questions. Travel and per diem for any such meeting will be the responsibility of each Company.

7. Authorized Negotiators. Companies are hereby placed on notice that the only persons authorized to conduct discussions and/or make commitments on behalf of the Smithsonian regarding this RFP and all matters incident hereto are the Smithsonian Enterprises Contracting Official and his designated representatives from Smithsonian Enterprises.

D. Proposal Requirements. The Smithsonian’s requirements and expectations are set forth herein. All proposals must include the following:

Part 1: Technical Submission

1. A narrative describing your strategy and brand vision for the Project as well as how it will be differentiated from other brands that focus on VR programs, taking into account the requirements in the SOW above. Narrative shall also include:

a. How your Company is uniquely qualified to execute all aspects of the Project, with specific reference to your experience and successes in the AR / VR consumer space.

b. What VR platforms and technology you currently have relationships with or have launched content on. What AR / VR location based experiences you have launched. Also list other platforms or companies you do not have relationships with and how you plan to engage them and secure deals with for the Projects.

c. Please provide a strategy of how you intend to position the Projects for AR / VR distribution and execution opportunities.

d. Provide your proposed process for engaging the Smithsonian in the Projects including the product development process and required Smithsonian reviews and approvals.

e. A description of the in-house funding, development, production and sales capabilities your company is committing to support the Projects. For any capabilities or services that you would need to outsource for the Project, identify the capability/service and the vendor proposed for outsourcing.

f. The timeline that includes all key elements necessary to achieve an approved AR / VR Offering by no later than Spring 2015

g. A description of your proposed strategy for the Projects and what your targeted AR / VR content verticals would be with the Smithsonian

h. Provide samples of AR / VR content funded and produced by your company -either for consumer distribution or for location based experiences

i. A narrative addressing your plan for managing your relationship with the Smithsonian. Please include the process you would propose for creating compelling AR / VR content and providing SE with timely results and feedback.

j. Please identify the key personnel to be assigned to the operation of the Projects along with a description of each person’s role and their bios or resumes.

k. Based upon your review of the Smithsonian links provided to you or your own research, please provide a description of the types of access to SI Content and the support from SI that you would anticipate receiving based on the strategy for the Project that you are proposing.

l. Company must use its own Merchant Account ID for processing credit card payments

m. Company must follow standard PCI-DSS requirements. Company must provide proof of PCI compliance on demand.

n. Company must use PCI compliant applications and service providers.

o. Company contract and technical specification must be approved by the

Smithsonian OCIO TRB (technical review Board) before implementation

p. Please provide solutions for the Credit Card processing as Company will not be able to use the Smithsonian network or internet connection for that purpose

q. SE / Smithsonian will provide power (up to 20 amps) and a location based upon

Museum approval. Any additional power needs and a solution must be included in the bid

r. Company must be able to provide equipment Hardware physical specifications to museum for fire, safety and rules and regulations purposes

s. Company must adhere to Smithsonian museum rules and regulations when installing, de-installing, maintaining and servicing their equipment and software

t. Company must be responsible for the full installation of their system, their equipment and software

u. Company must be able to provide 7 days a week of support for their equipment and software

2. A narrative describing your company’s overall qualifications and experience, including the following:

a. A company profile

b. Locations of your company office(s)

c. Bios of the key company executives

d. An overview of your current business activities including:

i. The number of years your company has been in business

ii. The contracts (within the past 3 years) that your company has with

AR / VR platforms or projects. The number of years you have conducted business with each company and the projects that you have executed with them. Please also indicate where possible projects in development.

e. Your Company’s proposed organizational structure to be used to operate the Project, including subcontractors or outsourced resources, identification of proposed program managers, and/or the approach for filling key jobs if specific individuals are not currently available.

f. Your company’s policy on quality, service, and ethics and the procedures your company uses in the resolution of your client’s issues or complaints.

3. References. Three references from current major domestic and international AR

/ VR clients with whom you currently fund, develop, produce and exploit, and AR / VR Projects.

References should include contact name and title, address, phone number, and a brief description of the relationship. References provided should demonstrate performance relative to the subject matter of this RFP.

4. A statement from your company certifying that there is no material litigation, either pending or threatened, or any contractual or business relationship involving your company or any of its principals, shareholders, partners, officers, or employees which would prevent or limit your company from providing any services described in this RFP, or would hinder your company’s ability to achieve fully the stated objectives and an affirmative statement that your company is responsible and able to conduct business in the District of Columbia and throughout the United States. To be provided as a signed, certified document with your proposal.

5. Representations and Certifications. Please complete the Representations and Certifications form, attached hereto in Exhibit C, and sign and return with your proposal.

Part 2: Business, Financial, and Legal Submission

1. A clear and complete listing of all business and financial terms proposed including but not limited to:

a. Advance and/or minimum annual guarantee

b. Royalty rate or rates

c. Distribution channels and location based channels

d. Annual financial projections (with all assumptions indicated) for each year of the proposed term, including projected royalties to the Smithsonian.

2. Your Company’s most recent corporate financial statement and a copy of your Company’s Insurance Certificates evidencing the insurance coverage required in Exhibit B.

3. A sample of the type of contract typically used by your Company to provide services similar to those required for the Project.

4. Please provide an explanation of any exceptions or deviations your company will require with respect to the Notable Contract Concepts in Exhibit B, attached. Exceptions will not automatically cause a proposal to be deemed unacceptable. However, exceptions not providing obvious benefit to the Smithsonian Institution may result in rejection of a proposal as unacceptable.

IV. Evaluation Criteria. Subject to the discretion of the Smithsonian, any Company may be selected who is deemed responsible, whose proposal conforms to the requirements in all of the RFP documents, and is judged, based on the evaluation criteria below, to represent the best value to the Smithsonian.

The Smithsonian will not select a Company whose proposal is determined to be unacceptable to the Smithsonian.

Evaluation factors:

1. Proposed Project’s fit with the Institution’s brand, mission, and core values as well as demonstrated ability to effectively communicate the Smithsonian’s mission and core values.

2. Business, financial, and legal terms, including but not limited to annual financial projections for each year of the proposed term, including advance, minimum annual guarantee, royalty rate, and projected royalties to the Smithsonian.

3. Demonstrated ability to fund, develop, produce, exploit, operate, and administer differentiated, superior, innovative, and successful AR / VR products with the broadest possible audience reach across all leading domestic and international AR / VR platforms and location based companies.

4. Execution plan and timeline for implementation of Projects.

5. Past performance of your Company (e.g., compliance with contract requirements, quality of products/services provided, timeliness of performance, cost control, business relations). The Smithsonian may use past performance information obtained from sources other than the references identified by your Company.

All evaluation factors other than the financial, business, and legal terms factor, when combined, are more important than the Financial, business, and legal terms factor. The Smithsonian reserves the right in all cases to be the sole judge determining whether a company meets the evaluation criteria.

V. DEADLINES

Questions and Notification of Intent to Submit a Proposal Due: Questions and Notifications must be received at the email address lowetr@si.edu by 2:00 P.M. Eastern Time Friday, February 26, 2016.

Proposals Due: Proposals must be received via email and/or overnight courier at the email address lowetr@si.edu and at the address listed in Section C.3. of this RFP by 2:00 P.M. Eastern Time Friday, March 18, 2016 in order to be considered.

VI. ATTACHMENTS

Exhibit A: Executive Summary: Smithsonian Strategic Plan Exhibit B: Notable Contract Concepts Exhibit C: Representations and Certifications

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