title
Contract Award to Vector Media Holding, Corp for Exclusive Advertising Rights
end
|
DESCRIPTION: To award a contract to establish exclusive advertising rights |
AGENDA NO: Click or tap here to enter text. |
|
ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
recommendation
To authorize the Chief Executive Officer to execute a contract for Exclusive Advertisement Rights awarded to Vector Media Holding, Corp. for a five (5) year term, with a three-year base and with two one-year options to renew. The awarding of this contract will generate revenue for the agency.
end
ISSUE/BACKGROUND:
body
The New Orleans Regional Transit Authority (RTA) first entered into an agreement for exclusive right to sell advertising on all RTA shelters with Laurel New Orleans, LLC in April 2008 with an initial term of five years, upon completion of an open solicitation process. In November 2011 the RTA, upon completion of an open Request for Qualifications (RFQ) process, entered into an agreement for the exclusive right to market advertising space on RTA buses and streetcars with Laurel New Orleans, LLC, for an initial term of five years. In 2018 upon completion of an open RFQ process Laurel was awarded the contract for Exclusive Rights to Advertise on RTA buses, streetcars, and ferries. Vector Media Holding, Corp. purchased Laurel in May 2019. Vector assumed the previous contract which was executed from January 2018 through December 2022. The contract extension covered the period between January 1, 2023, through August 31, 2023, and thereafter would continue a month-to-month basis, see attachments.
A new contract solicitation was initiated, and a Request for Proposal (RFP) was issued on May 5, 2025, for the acquisition of a vendor and new contract. Staff evaluated all elements of the bid per requirements prescribed by the RTA, Louisiana Public Bid Law, and the Federal Transit Administration.
Staff evaluated all cost components submitted by the vendors and determined the price to be fair and reasonable; and a technical evaluation was conducted Thursday, July 31, 2025, at 10:00 am. The technical evaluation resulted in scoring in favor of Vector Media.
end
DISCUSSION:
The vendor will market and sell RTA-owned advertising space and maintain business continuity for the operation, advertising shelter maintenance, and support of the RTA’s Transit Advertising program under the management and as directed by the RTA Marketing Department.
FINANCIAL IMPACT:
This action will generate operating revenue for RTA. Under the contract, the Advertising Contractor must pay a Minimum Annual Guarantee (MAG) to RTA, remitted monthly at 1/12 of the MAG, plus 60% of gross advertising revenue above the MAG paid at year-end after reconciliation. This is an increase in revenue up from RTA’s previous contract revenue share of 52%.
Historic advertising billings were $2,759,687 gross/ $1,435,037 net (2022), $2,148,339 gross/ $1,117,136 net (2023), and $2,171,817 gross/ $1,112,345 net (2024) and are provided for context; the actual MAG and revenue share will be established through the award and negotiated terms. The dip in revenue from year 2022 to year 2023 is due to the limitation of advertising allowed on the bus fleet at that time. No advertising was allowed on the newer purple bus fleet. In 2024, the RTA established a practice allowing ads to be placed on the new purple bus fleet and further allowing 20% of the new bus fleet and 35% of the older white bus fleet to be utilized by the vendor to place full bus wraps.
Revenues will be recognized in the Operating Budget. No local expenditure is required for advertising operations contemplated here; the Contractor bears routine costs for advertising-shelter cleaning, maintenance/repairs, and illumination, with limited, pre-approved reimbursement only when performing repairs on non-advertising RTA shelters (which may be offset against fees due).
NEXT STEPS:
Upon approval, a contract will be drafted and executed for Exclusive Advertisement Rights to Vector Media Holdings, Corp, establishing a five-year agreement with a three-year base and with two one-year options to renew. The contract will be implemented following the Board’s approval.
ATTACHMENTS:
1. Resolution Exclusive Advertisement Rights
2. Vector Media Proposal
3. Procurement Summary - RFP 2025-017
4. Public Notice/ RFP – 2025-017
5. Addendum 1 – RFP- 2025-017
6. Executed Contract 2008 – Laurel Communications
7. Executed Contract 2018 – Laurel Communications
8. Contract Extension Letter 2022
9. Amendment to Extend Maintenance – Super Bowl 2024
Prepared By: Angele Young Boutte
Title: Marketing Director
Reviewed By: Kelder Summers
Title: Chief External Affairs Officer
Reviewed By: Gizelle Banks
Title: Chief Financial Officer
9/8/2025
Lona Edwards Hankins Date
Chief Executive Officer