REQUEST FOR PROPOSAL (RFP) 20231829 TRANSIT BUS ADVERTISING PROGRAM AND SERVICES
Response Due Date: October 4, 2024
FACILITATOR:
Perry Padron
Procurement and Contract Administrator
(502) 561-5135
3 SCOPE OF WORK & SERVICES
3.1 Background and History
As of July 1, 2024, it is estimated that TARC will be operating approximately 150 fixed route buses.
the 150 buses that will comprise TARC’s fixed-route fleet in 2025, approximately 144 will be full-sized 40-foot coaches and six will be 35-foot coaches.
On weekdays, depending on schedule changes and level of service, TARC operates approximately a
total of one hundred fourteen (114) coaches during peak and off-peak periods on fixed routes. These statistics are subject to change.
In the most recent fiscal year that ended June 30, 2023, TARC ridership totaled just over 5.5 million
trips.
3.2 Scope of Services
Goals and Objectives – Major objectives TARC wishes to achieve for the transit-advertising
program are as follows:
3.2.1. To maximize the advertising revenues paid to TARC. TARC seeks a sustainable
Contractor to grow the transit advertising program.
3.2.2. To assist TARC with advertising and promoting its programs and services. TARC
frequently uses both interior and exterior transit advertising to market various aspects of
its service and to provide information to passengers.
3.2.3. To properly maintain TARC’s fleet of vehicles with respect to advertising. Advertising
on TARC vehicles must be attractively presented and the use of ads must not create
safety hazards for passengers or TARC employees. The advertising must also not cause
damage to wash racks, painted surfaces or TARC equipment.
3.2.4. To minimize the impact of posting activities for TARC’s Maintenance personnel.
TARC’s Maintenance personnel are not responsible for posting signage.
3.2.5. To maximize opportunities for minorities, females, and Disadvantaged Business
Enterprises to participate in the performance of this contract. TARC is committed to an
affirmative action program that will employ minorities and women wherever employment
opportunities exist. Whenever subcontractor services are needed, TARC strongly
encourages that minority and female-owned businesses be given strong consideration by
the Contractor.
3.3. Financial Requirements
3.3.1. Revenue Share – Each proposal that is submitted to TARC for the transit advertising
RFP must contain a percentage of gross amounts from advertising received by the
contractor. The term “gross amounts from advertising” means the gross cash sums
actually received by the contractor as payment from advertisers excluding agency and
national or regional sales representative commissions not to exceed fifteen (15) percent,
art, production, installation fees, the amount of any and all sales, use, gross receipts, and
RFP 20231829 Transit Bus Advertising Program and Services similar taxes imposed on the contractor in respect to the business transacted under the contract, but excluding income and property taxes for the display of their advertisements.
No posting charges or any other miscellaneous fees may be charged to TARC for the
placement of exterior and interior signs.
3.3.2. Minimum Annual Guarantee – TARC will be guaranteed a minimum annual payment by
the contractor, regardless of the contractor’s gross revenues from its advertisers. The
guarantee will be renegotiated in the event that TARC’s fleet size and/or the amount of
authorized advertising space is reduced by fifteen (15) percent or more at any time during
the period of the contract.
3.3.3. Payments – Payments are to be made monthly or the guaranteed minimum may be
paid in an annual sum at the start of each contract year. If paid monthly, each month’s
payment is due no later than the 20th day of the following month. Also, at the end of each
quarter of the contract year, twenty-five (25) percent of the guaranteed annual minimum
must be paid by the Contractor by the 20th day of the following month.
The only authorized deductions from this amount are work stoppages lasting five days or
more. The procedure for lessening or cessation of payments during a work stoppage will
be negotiated with the successful proposer.
3.4. Service Requirements
3.4.1. Marketing and Promotion – TARC shall have the right to the exclusive use of ten (10)
percent of each type of fixed-route exterior advertising for a maximum of twenty-six (26)
weeks per year to market and promote TARC’s programs and services. TARC also will
have access to any additional space not sold on the open market. Sold space will preempt
TARC advertisements in those cases. TARC will collaborate with the Contractor so as not
to take away valuable revenue advertising space for potential advertising customers.
TARC’s use of 10% of exterior advertising space for self-promotion may be pre-empted
by paid advertisements only with the prior permission of the Director of Marketing.
With regard to interior ad space, TARC shall have the right to the exclusive use of a
minimum of six (6) interior cards in each TARC coach at all times. TARC shall also have
the right to use any unsold advertising space for the same purposes. In both cases, the
contractor shall install, maintain, and remove TARC’s advertising at no charge.
Contractor must provide print and production cost for TARC interior card space with their
proposal. Contactor will be responsible for removing outdated external and internal bus
ads within ten (10) days of expiration of contract or upon receiving request for removal.
TARC reserves the right to offer interior ad space to certain public, charitable, or
educational entities free of charge. Such clients are responsible for production costs for
their signs.
