California Lottery Delays Release of RFP

LOS ANGELES The California Lottery expects to issue a final request for proposal for its four-year, $100 million general market advertising account by the middle of next week, according to a letter posted today on the lottery’s Web site.

The lottery had posted a draft RFP to its Web site on Oct. 14 and asked agencies to provide feedback on the document prior to the release of the final RFP [Adweek Online, Oct. 14].

While the lottery anticipated issuing the RFP today, the three-page letter from Lottery contract services manager Shannon Gordon instead stated that the lottery had received “many constructive comments from interested agencies” and outlined what she described as “major changes that may impact the preparation of a response to the RFP.”

The majority of the changes address price sheet submissions and include clarifications about what agencies should include in the media efficiency and effectiveness strategy and plan. The letter notes that the lottery is also now requiring agencies to disclose any consultants used in preparing responses and state the other accounts that key personnel work on. Regarding contract terms and conditions, the letter states that the security agencies are required to provide in order to guarantee performance is flexible and will be reduced from $7 million to $2 million, and notes that a section will be added that will “require an external audit of the agency’s system of internal control over media placement and billing.”

When the lottery issues the RFP, it will begin its third review in more than two years. Grey Global Group’s Grey in Los Angeles is the incumbent. Previous review decisions, which included the selections of Omnicom’s DDB in Los Angeles and Interpublic Group’s Foote Cone & Belding in San Francisco and McCann-Erickson in Los Angeles, were overturned.