California Lottery to Rebid Media Account

LOS ANGELES — The California Lottery today announced that it is still unable to name a final winner in the review for the five-year, $125 million ad account and is asking shops to submit new bids relating to media costs.

Foote, Cone & Belding in San Francisco appeared to have won the account in July following a review that included the incumbent, Grey, as well as DDB and McCann-Erickson, all in Los Angeles.

However, DDB filed a protest over media costs submitted by FCB and its partner in the pitch, Initiative Media North America in Los Angeles.

A letter sent today from Lottery director Joan Wilson to the finalists states that the lottery is granting DDB’s protest. It said that “procedures for the award of the contract were not followed by more than one finalist” and that “more than one of the four finalists arrived at cost per point by inserting elements and/or steps not used by other finalists,” which prevented the lottery from drawing accurate price comparisons.

The lottery is expected to issue an amendment to the RFP regarding new price/cost proposals.