Advertising and Related Services

November 21, 2022 Dear Supplier: Enclosed you will find RFP # KL-23-011 for the acquisition of the following Advertising and Related Services on behalf of the Kentucky Lottery Corporation (KLC): 1. Creative Development and Production Services 2. Media Planning and Buying Services OFFERORS ARE INVITED TO SUBMIT PROPOSALS ON ANY OR ALL OF THE CATEGORIES OF SERVICES. To assist you in the completion of the Proposal package the following information is provided as a summary of what is required to have your response considered valid: 1. The deadline to respond to this RFP is 01/06/2023 at 10:00 A.M. ET. Faxed or emailed Proposals are not acceptable. 2. Your Proposal must contain original signatures. Signature stamps are not acceptable. 3. Your Proposal must follow the enclosed RFP format. Substitutes are not acceptable. 4. All questions regarding this RFP must be addressed only to the Buyer identified in the Proposal packet. 5. Any and all discounts for which the KLC may be entitled should

be identified in your response. 6. In signing the RFP form, you affirm to the KLC your authority to make an offer on behalf of your organization. 7. Refer to Part VIII for a summary of all of the Proposal completion requirements. The KLC encourages competition in all of its procurements and welcomes suggestions on ways to improve our procurement process. Any suggestions should be addressed to my attention. Thank you for your interest in the Kentucky Lottery Corporation. Respectfully, Darrell E. Wilson Darrell E. Wilson, CPPB, CPM Director of Purchasing KENTUCKY LOTTERY CORPORATION REQUEST FOR PROPOSALS (RFP) Solicitation No.: KL-23-011 Date Issued: November 21, 2022 Goods or Services: 1. Creative Development and Production Services 2. Media Planning and Buying Services OFFERORS ARE INVITED TO SUBMIT PROPOSALS ON ANY OR ALL OF THE CATEGORIES OF SERVICES. Name of Buyer: Linda Sanders, Buyer I Area Code: 502 Telephone No.: 560-1769 PROPOSAL DUE DATE: January 6, 2023 TIME: 10:00 AM ET E-Mail Address: linda.sanders@kylottery.com ISSUER: KENTUCKY LOTTERY CORPORATION 1011 WEST MAIN STREET LOUISVILLE KY 40202-2623 ATTENTION: PURCHASING DEPARTMENT WEBSITE: kylottery.com http://www.kylottery.com/ KL-23-011 1 TABLE OF CONTENTS 1 PART I INTRODUCTION ................................................................................................ 3 1.1 PURPOSE .................................................................................................................... 3 1.2 ISSUING OFFICE & BUYER .................................................................................... 3 1.3 SUMMARY OF KEY DATES AND DEADLINES .................................................. 3 2 PART II - SOLICITATION INSTRUCTIONS AND GENERAL CONDITIONS ......... 4 3 PART III - SPECIAL CONDITIONS ................................................................................. 4 3.1 CONTRACT TERMS ................................................................................................. 4 3.2 DURATION OF PROPOSAL ..................................................................................... 4 3.3 SUBCONTRACTING ................................................................................................. 4 3.4 CONTRACTORS NAME OR LOGO ....................................................................... 4 3.5 TITLE TO, AND USE OF, INTELLECTUAL PROPERTY RIGHTS ...................... 4 3.6 LEGISLATIVE AUTHORITY ................................................................................... 5 3.7 NEWS RELEASE ....................................................................................................... 5 4 PART IV - QUALIFICATIONS AND OBLIGATIONS OF OFFERORS ...................... 5 4.1 EXPERIENCE AND REFERENCES ......................................................................... 5 4.2 SIZE OF OPERATIONS ............................................................................................. 6 4.3 LOCATION REQUIREMENTS ................................................................................. 7 4.4 FINANCIAL SOUNDNESS ....................................................................................... 7 4.5 ACCOUNTING RECORDS ....................................................................................... 7 4.6 INDEMNIFICATION ................................................................................................. 7 4.7 INSURANCE .............................................................................................................. 8 4.8 PERFORMANCE BOND ........................................................................................... 8 4.9 EQUAL EMPLOYMENT OPPORTUNITY .............................................................. 9 4.10 EQUAL BUSINESS OPPORTUNITY PROGRAM .................................................. 9 4.11 KLC BUSINESS CODE OF CONDUCT ................................................................... 9 4.12 QUALIFICATION TO DO BUSINESS IN KENTUCKY ....................................... 10 4.13 PRODUCT PURCHASE AND PRIZE RESTRICTIONS ........................................ 10 4.14 PROHIBITION AGAINST ILLEGAL CAMPAIGN CONTRIBUTIONS .............. 10 4.15 BACKGROUND INVESTIGATION ....................................................................... 10 4.16 SECURITY INFORMATION UPDATES ................................................................ 11 4.17 PENDING LITIGATIONS ........................................................................................ 12 4.18 BUSINESS CONTINUITY ....................................................................................... 12 4.19 SUPPLIER PROFILE ................................................................................................ 12 4.20 REGISTRATION WITH THE SECRETARY OF STATE BY A FOREIGN ENTITY ..................................................................................................................... 12 5 PART V - EVALUATION OF PROPOSALS................................................................... 13 5.1 EVALUATION COMMITTEE................................................................................. 13 5.2 EVALUATION CRITERIA ...................................................................................... 13 5.3 RECIPROCAL PREFERENCE for KENTUCKY RESIDENT BIDDERS & PREFERENCE FOR QUALIFIED BIDDERS ......................................................... 15 KL-23-011 2 5.4 INITIAL PASS/FAIL REVIEW ................................................................................ 17 5.5 INITIAL EVALUATION .......................................................................................... 17 5.6 ORAL PRESENTATIONS ....................................................................................... 18 5.7 FINAL TECHNICAL EVALUATION ..................................................................... 18 5.8 PRICE EVALUATION ............................................................................................. 18 5.9 COMBINED SCORING ........................................................................................... 18 5.10 DISCUSSIONS.......................................................................................................... 18 5.11 RECOMMENDATION FOR AWARD .................................................................... 18 5.12 CONTRACT NEGOTIATIONS ............................................................................... 19 5.13 AWARD OF CONTRACT........................................................................................ 19 5.14 NOTICE OF AWARD .............................................................................................. 19 6 PART VI - SCOPE OF WORK .......................................................................................... 19 6.1 BACKGROUND ....................................................................................................... 19 6.2 OBJECTIVE .............................................................................................................. 23 6.3 ADVERTISING STANDARDS ............................................................................... 24 6.4 STATEMENT OF WORK ........................................................................................ 24 6.5 MINIMUM SPECIFIC REQUIREMENTS .............................................................. 24 6.6 ORAL PRESENTATION REQUIREMENTS .......................................................... 38 6.7 LIQUIDATED DAMAGES ...................................................................................... 38 6.8 COMPLIANCE/EXCEPTIONS ................................................................................ 38 7 PART VII - PRICING ......................................................................................................... 38 7.1 PRICING SCHEDULE ............................................................................................. 38 8 PART VIII - SUBMISSION REQUIREMENTS ............................................................. 39 8.1 MANDATORY SUBMISSIONS .............................................................................. 39 9 PART IX - COMPLETION REQUIREMENTS .............................................................. 41 9.1 PROPOSAL CERTIFICATIONS ............................................................................. 41 9.2 OFFEROR CONTACT INFORMATION ................................................................ 41 9.3 DELIVERY OF PROPOSALS TO THE KLC ......................................................... 41 ATTACHMENTS A - SOLICITATION INSTRUCTIONS B - GENERAL CONDITIONS C - SUPPLIER PROFILE D AFFIDAVIT CLAIMING RESIDENT BIDDER STATUS E AFFIDAVIT CLAIMING QUALIFIED BIDDER STATUS EXHIBITS A EQUAL OPPORTUNITY FORM B BRAND GUIDELINES C KENTUCKY LOTTERY CONSUMER SEGMENTATION D NASPL ADVERTISING GUIDELINES E PRICING SCHEDULE F KLCS TRAVEL & EXPENSE POLICY KL-23-011 3 1 PART I INTRODUCTION 1.1 PURPOSE The purpose of this Request for Proposals (hereafter RFP or Solicitation) is for the Kentucky Lottery Corporation (KLC) to enter into one or more contracts for the following Advertising and Related Services as specified in Part VI (Scope of Work): 1. Creative Development and Production Services 2. Media Planning and Buying Services Any contract(s) resulting from this Solicitation shall be considered a Major Lottery Specific Procurement pursuant to KRS 154A.010 (4). (Hereafter, any reference to Successful Offeror shall include Successful Offerors in the event more than one contract(s) is awarded.) 1.2 ISSUING OFFICE & BUYER This Solicitation is issued by the KENTUCKY LOTTERY CORPORATION, 1011 West Main Street, Louisville, Kentucky 40202-2623, and Attention to the Purchasing Department. Our Website is located at kylottery.com. The Buyer and point of contact for all questions or requests for additional information is: Linda Sanders, Telephone Number: 502.560.1769 EMAIL: linda.sanders@kylottery.com OFFERORS SHALL NOT CONTACT ANY KLC EMPLOYEE, OFFICER, OR DIRECTOR OTHER THAN THE BUYER REGARDING THIS SOLICITATION UNTIL AFTER THE AWARD OF A CONTRACT. ANY SUCH UNAUTHORIZED CONTACT MAY RESULT IN OFFEROR BEING DISQUALIFIED FROM FURTHER CONSIDERATION. 1.3 SUMMARY OF KEY DATES AND DEADLINES 11/21/22 - Solicitation issue date 12/02/22 - Deadline for receipt of questions is at 2 P.M. ET. (Emailed questions will be accepted) 12/16/22 - Issuance of emailed responses to questions (Addendum) (Offerors not receiving notification of an Addendum by the third business day following the date of issuance of the Addendum should contact the Buyer identified above) 01/06/23 - Deadline for receipt of Proposals is 10:00 AM ET. (FAXED OR EMAILED PROPOSALS WILL NOT BE ACCEPTED) 01/30/23 - 02/10/23 Oral Presentation, if invited (Presenters and site to be determined by the KLC) The KLC reserves the right to change any of the dates or times. If any changes are made to the original Solicitation, the changes will be posted on the KLC website. Offerors shall be responsible for monitoring the website for changes throughout this Solicitation process, unless otherwise requested by the Offeror. mailto:linda.sanders@kylottery.com KL-23-011 4 2 PART II - SOLICITATION INSTRUCTIONS AND GENERAL CONDITIONS This Solicitation is issued pursuant to Section III.C. of the KLCs Procurement Procedures. All Offerors must abide by the KLCs Solicitation Instructions and General Conditions dated July, 2013, which are incorporated by reference and are attached as Attachments A & B. Offerors should note the date on the documents to determine whether revisions have been made since the Offeror last responded to a Solicitation. 3 PART III - SPECIAL CONDITIONS 3.1 CONTRACT TERMS The initial term of any contract(s) resulting from this Solicitation shall begin on the date set forth in the contract(s) and continue for a period of three (3) years. The contract(s) may be renewed, at the option of the KLC, on an annual basis for four (4) additional years upon terms and conditions mutually agreeable to the parties, for a total contract period not to exceed seven (7) years. The KLC reserves the right to negotiate different contract terms, provided the total contract period does not exceed the maximum number of years set forth above. 3.2 DURATION OF PROPOSAL Unless otherwise agreed, all Proposals shall be binding for one-hundred and eighty (180) calendar days from the Proposal due date. 3.3 SUBCONTRACTING Subcontractors may be used in providing the good or services pursuant to this Solicitation; however, all subcontractors must be approved in advance by the KLC. Any contractor intending to use subcontractors shall identify each subcontractor or freelance contractor and provide a detailed description of the work to be performed in its Statement of Work. If the KLC approves use of subcontractors, the subcontractors shall also be subject to the terms and conditions of this Solicitation and any subsequent contract. 3.4 CONTRACTORS NAME OR LOGO No Contractor or Subcontractors shall place the contractors name, address, or logo on any printed goods which the contractor produces for the KLC, without the prior written consent of the KLC. 3.5 TITLE TO, AND USE OF, INTELLECTUAL PROPERTY RIGHTS A. To the extent that the Successful Offeror utilizes or relies upon the intellectual property rights of a third party in fulfilling its obligations under the contract, the Successful Offeror will provide the KLC with whatever assurance the KLC deems necessary that the use of such third-party intellectual property rights is permissible.