October 16, 2015 To: All Vendors of Record RE: Addendum #1 All vendors are to accept the information contained herein as the official response of IPTC. TO ALL BIDDERS OF RECORD AND TO WHOM IT MAY CONCERN: This Addendum is being issued prior to the due date for receiving proposals. This Addendum forms a part of the Contract Documents and modifies the original Request for Proposal (RFP) as noted below and shall be incorporated into the Contract Documents. All other provisions of the RFP released October 1, 2015 with the exception of changes below, shall remain unchanged. This Addendum is issued in accordance with the provisions of Section 3 of the Request for Proposal document. All Proposals shall be based upon work as modified by this Addendum. Acknowledged receipt of this Addendum on the Acknowledgement of Addendum Form is required. Failure to do so may result in disqualification of the Bidder. This addendum addresses questions concerning RFP 15-10-217 Transit Advertising. 1 1. Please define any opportunities in the new transit center that have been implemented as part of the design and/or provide blueprints, renderings etc so that we can analyze what opportunities may exist. Digital advertising: three exterior and one interior touch screen kiosks are being designed with digital advertising in mind. Additionally five interior displays (54 inches each) may be included in advertising program. The screens are networked with the kiosks for central administration. A total of 5 monitors will be grouped in 2 zones (3x1 and 2x1). The content management platform is not yet developed, so no advertising products or technical specifications are available at this time. Interior floor decals: the transit center is mostly glass and steel. IPTC feels the best opportunity for print may be floor decals. 2. Please provide a breakdown of shelter sales over the last five years. IPTC is gathering information to provide as an additional addendum. 3. Please provide a location list of the shelters and indicate whether the shelter ad panels are double sided and illuminated. No IPTC shelters offer illuminated ad space. 4. Are the shelters TAB audited? No 5. What is the percentage revenue share for the bus shelters and the bus advertising? Average range of shelter advertising is 5-10% 6. Please provide a breakdown of the minimum annual guarantee for the last five years and indicate if there is a separate guarantee for the shelters. A reconciliation file for information regarding total contractual guarantee will be posted separately. Shelters have no guarantee. 7. Please provide a breakdown of the bus ad sales for the last five years. Please see answers 2, 5 and 6. 8. Please provide the amount of the cost sharing structure for shelter maintenance for the last five years. If there has not been one please provide a breakdown of any payments Clearchannel has contributed to shelter maintenance over the last five years. Please see the cleaning agreement memo file. 2 9. Please provide a copy of the current rate card for the bus advertising and shelters. A separate report will be posted with rate card information. 10. Please provide a breakdown of annual added value opportunities provided by Clearchannel over the last five years. Please refer to reconciliation file. 11. Please remove the Evaluation Requirement for Indianapolis Specific experience and replace with Transit Advertising Experience IPTC will add transit advertising sales experience to the criteria for consideration. 12. Would you be interested in more shelters and/or benches at more stops if they can be built? Yes 13. Would benches be an alternative for non-shelter sport or for tough ROWs? Potentially, however, IPTC would strongly encourage bidders to include proposals that include the purchase and installation of ad benches. 14. How many stops are there in the downtown area? The IndyGo system has more than 4,000 stops around the city. The major stops on the “downtown loop” are 10. Please refer to the system map for additional detail. Bidders should note that 2 major stops will no longer be used for service once the downtown transit center opens and routes are changed to serve the center. IPTC expects to remove the shelters at that time. 15. How many current bus benches? None of IPTC’s current benches accept advertising. 16. Background-status of current bus bench company IPTC secured a contract through a competitive bidding process for shelters and other stop amenities in 2013 with Tolar. 17. Can your chosen vendor get an adjustment mechanism on rev share if bus count drops below a certain level? Yes. IPTC would expect to negotiate a contract addendum if the fleet changed dropped considerably. Bidders should assume a base of 130 vehicles in the advertising inventory. 3 18. What are non-revenue vehicles? How many are there? Where do they travel? How much are they on the road? IPTC operates a fleet of approximately 20 support vehicles for management, route maintenance and road supervisors. For the purposes of this proposal, bidders should include any experience or examples of non-city bus fleet advertising projects. 19. Does ClearChannel have any contracts in place currently that extend past the term of their agreement? Yes. IPTC expects the winning vendor to negotiate a takeover deal to execute the existing contracts. 20. Would you consider a term extension if provider installs a lot more shelters? IPTC may consider an amendment to the original contract if the term or scope of work changes. 21. Is the contract written as a “base rent” with a percentage override? There is a guaranteed minimum reflected in the reconciliation file. 22. Would you consider a co-investment from provider in exchange for a longer term contract with additional amenities? See answer to question 20. 23. What is the estimated implementation date for the Red Line Rapid Line? 2016? IPTC will learn the result of the federal Small Starts funding application in spring 2016. If the Small Starts grant application is successful in this funding cycle, IPTC is prepared to begin construction by 2017 and open Red Line rapid service in 2018. 24. Is IPTC looking for capital investment from the bidders for the digital opportunities mentioned in the RFP, or only management of advertising sales efforts? IPTC would entertain proposals for capital investment if the contract term is kept intact. 25. Are there suitable shelter sites that could be built immediately if funding was available? No. IPTC would want to develop a list of locations for investment. 26. Is advertising production profit part of the current 50/50 Rev Share agreement? No. 4 27. Can you elaborate on Fare Media, Audio/Visual Ad, and Special Event Advertising? Many transit agencies sell ads on bus passes (Fare media). Some transit systems also sell on-board audio and video ads. IPTC also feels that there is a market for sponsorship during large events in the city (Super Bowl, Indy 500, Final 4). Proposals should reflect creative opportunities to leverage IPTC service, fleet and facilities during large local events. 28. Does Clear Channel currently provide IndyGo with the current advertising contracts for each client currently advertising on the buses? If not, can they be obtained? IPTC does not currently receive copies of advertising agreements for Clear Channel clients. IPTC does review all creative before postings occur. IPTC is not interested necessarily in reviewing agreements for each advertiser. 29. How much is needed in the Certificate of Liability Insurance? Please see Section 3 attachment posted on RFP website. 30. Is there currently a DBE doing the installs on the buses? Current contract DBE participation will be posted in an additional attachment. 31. Anticipated increase in new bus shelters? IPTC expects to add fewer than 15 new locations per year. 32. Option for digital bus shelters? Currently, digital advertising is not allowed in the right of way by municipal code. 33. Do you have photos of the new converted electric buses that IndyGo is putting into operation soon to make sure they fit traditional media? Yes. 34. Can the awarded vendor work with the selected technology vendor installed touch screen kiosks, passive info screens, digital advertising on platforms so that our software can interact with all systems across the board? IPTC will work with the technology vendor to determine level of integration that will be possible within the scope of the contract with the tech vendor. 5 35. Can awarded vendor work with the App provider to build in advertising triggers based on smartphone location? There currently is no smartphone app. In the future, IPTC would expect that ads would indeed be served based on the user location; however, there is no guarantee this contract will cover the scope of the sale of such ads if an app is developed within the contract term. 36. In “Future Digital Assets” can buses and/or bus shelters accept lenticular ads? IPTC is open to new product types and will work with the selected vendor to determine viability of retrofitting. 37. Please provide a copy of the current agreement and any addendums between IPTC and the current advertising vendor. The current agreement and all addendums can be found as attachment 38. Please clarify the start date of the new agreement. IPTC will work with the awarded vendor to have a contract in place by January 1, 2016. 39. What is the turnaround time for advertising copy approval by IPTC? Usually within the same business day 40. Please confirm that there is no DBE goal/requirement, and is not included in the evaluation process. IPTC strongly encourages participation of DBE and other M/W/VBEs with all contracts. For this procurement, no DBE goal has been identified because the agreement is a revenue contract. 41. Are all large format advertisements, e.g. Fullwraps, Headliners, Kongs, King Kongs, Superkings, Ultra Superkings, and extensions permissible? What restrictions, if any, apply to these products? Currently, IPTC is not accepting advertising on its newest electric vehicles. Additionally, one series of bus in the fleet (1999 Nova bus) has a gray bumper that wraps around the entire vehicle and makes advertising difficult. Please see Nova schematic file attachment. 42. Please provide a details fleet inventory by vehicle type, size and manufacturer. Refer to fleet report attachment. 6 43. Please provide a list of what advertising contracts will be assumed by the new contractor. The list of contracts will be provided as a separate attachment. 44. Most agreements include transition language describing how existing contracts will transition from an existing vendor to a new vendor. This allows on-goaing service to any advertisers already in place and an uninterrupted revenue stream for both the incoming vendor and transit agency. Will IPTC consider adding language that permits exiting vendor to assign and transfer carry-over contracts to the new vendor, and permit the incoming vendor to pay the previous vendor a 15% commission of net advertising revenues for the affected contracts? Yes. IPTC will expect proposals to detail the vendor’s transition plan including buy out and commission. 45. Will IPTC extend the proposal due date by 30 days? IPTC will not accept any proposal after the deadline on November 2, 2015 at 2:00pm. 46. Please provide the technical specifications for the audio system currently in the buses. IPTC uses an automatic vehicle location system by Trapeze Group which controls the audio messages inside the bus. Currently, IPTC does not play advertisements on-board. Proposals that wish to contemplate interior audio ads should demonstrate the vendor’s experience working with the Trapeze Transit Master AVL suite, in particular the Annunciator Studio program. 47. Please provide the number of digital screens that will be available for advertising in the Downtown Transit Center when it opens. Please see answer to question 1. 48. Please provide the technical specifications of the Kiosks that will be in the Downtown Transit Center when it opens. IPTC is working with a technology vendor to implement a customization of the WINPIDS platform, an INFAX software product. Details and ad templates or opportunities to interface with outside digital ad inventory delivery systems have not been solidified. Also see answers to questions 1 and 34. 7 49. Please confirm that any new vendor will not be held responsible for any paint damage caused by the previous contractor. IPTC will conduct a hand-off audit to protect a new vendor from previous damage. 50. Please confirm the date for possible Select Vendors Interviews. Interviews for selected vendors are set for November 12, 2015. 51. What type of value added opportunities for the benefit of the agency have been provided by the current vendor? Billboard space allowance of $60,000 per year. 52. Can you please provide IPTC’s (IndyGo) plan for adding and removing from service the number and type of buses and shelters (including paratransit, bus rapid transit, or similar vehicles) in the existing fleet on an annual basis over the next 5 years? Please indicate the specific type of buses? If a local referendum is authorized for additional transit service, IPTC would expect nearly doubling the operational budget for extended evening and weekend service as well as improvements to frequency and general network structure. The majority of service improvements won’t require additional buses to deliver service. The current system offering is somewhat “peaked,” meaning service is reduced mid-day and operates with more vehicles during rush hours. The future plans focus on maintaining consistent frequencies (and thus vehicle counts on the road) for all-day service. 53. Is there a set schedule for cleaning the shelters which accommodate advertising and, if so, what is the frequency? Shelter cleaning is provided by contract for IPTC. The cleaning for all shelters is conducted frequently. 54. Is there a current cleaning contract for the shelters? If so, what are that length and annual financial terms of the agreement including any rate changes? The cleaning contract will be attached separately. 55. The RFP requests an “Annual minimum revenue for current shelter inventory.” The Revenue Proposal Form does not please provide a space for a separate annual minimum revenue for shelters. Can this minimum be combined with the minimum revenue guarantee for other transit products or does this need to be a separate response item? 8 Please provide a separate shelter guarantee. The Revenue Proposal Form may be amended to accommodate all revenue streams. 56. Are the contract options for years 4 and 5 solely IPTC’s right to exercise? The additional option years may be exercised by written agreement between IPTC and the contractor. 57. Is the vendor supplying both the software and the kiosks at the Transit Center or only one or the other? Is the system expandable and are there plans to deploy kiosks at any other current or future locations? The technology vendor for the DTC is supplying hardware and software. The system can be added onto, and if the Red Line is funded for construction, IPTC hopes to use the same platform to simplify administration and maintenance. 58. Can you please provide an estimated cost for the individual kiosks? The individual cost for the kiosks have not been determined. 59. Can you please provide the specifications for the kiosk unit? See answers to questions 1, 34 and 48. 60. Can advertising be affixed to the exterior of the kiosks in addition to the onscreen advertising platform? The kiosks are being designed to eventually be two-sided touch screens. However, due to budget limitations, the first deployment will be onesided touch screens. Back sides of the kiosks could be fitted with print ads in the interim. Please see the DTC signage plan attachment for drawings of kiosks. 61. Has IPTC completed any renditions of the stations to be constructed as part of the proposed Red Line project and, if so, can we please receive copies of the renditions? Renderings of the DTC are posted as attachments. 62. Has IPTC determined the number and locations for the Red Line stations and, if so, can you please provide the list of locations? 19 platforms will be constructed between downtown and Broad Ripple in phase one. Each of these platforms will be installed in the center of the street and will be served by Red Line vehicles traveling in both directions. For the segment south of downtown, each of the station areas 9 will be constructed on the curb with a dedicated platform in each direction. 8 station pairs for the south segment will net 16 total platforms. 63. Has IPTC completed the bid process for the WiFi system at the Downtown Transit Center? If so, is the annual expense for the system established and, if so, can you please provide the actual or estimated cost of establishing and operating that system on an annual basis? The WiFi system for the DTC has not been released for bid yet. IPTC will add the estimated cost once the solicitation has been developed. 64. Can IPTC please provide an estimate of the number of 1) Route maps; and 2) Tickets which IPTC printed and distributed for the current year- to-date and the actual number of 1) Route maps; and 2) Tickets which IPTC printed and distributed for each of the past three years? IPTC prints approximately 1 million individual route maps per year and sells an average of 40,000 passes per month. Refer to passes sold per month for detail. 65. Since the new Downtown Transit Center is targeted to be a LEED Certified building, can you please provide any restrictions which would limit the placement and type of advertising material which may be affixed to surfaces (windows, seating, walls, posts, etc.) on both the inside and outside of the main building or the bus bays and other structures due to the LEED certification? Any restrictions for the DTC advertising will be posted in a separate addendum. 66. Can you please provide the projected passenger traffic count projected to go pass through the new Downtown Transit Center on a daily basis and annually for each of the first five years after the facility is open? IPTC estimates approximately 3,000-5,000 unlinked trips per day. This is not individuals. Each time an individual boards a vehicle, he or she is counted. Transfers at the DTC from one bus to another would count as two unlinked trips. 67. What are the total number of seating area locations and seats to be constructed in the Downtown Transit Center at the time it is opened? Will there be any other seating areas outside of the main Transit Center Building? One main seating area will be constructed inside the center. Outside the center on the site, several seating areas will be developed. The site consists of 19 bus bays, a small park-like setting and an extensive 10 canopy system covering all waiting areas. Please refer to the floor plan, site plan and renderings in the attachments. 68. How many IPTC employees and contractor employees are projected to be located in the Downtown Transit Center? Total number is estimated at 20-25. 69. Are there any limitations or restrictions on the type of advertising media or materials which can be used on the interior of buses in the current fleet? As long as the ads meet the content guidelines and local ordinances, IPTC is willing to entertain proposals for various media types. 70. In the RFP on page 12, Section 2.2 Required Responses in the fourth bullet point entitled, “Technical Proposal,” it requests information on the “Warranty” – can you please explain what you are looking for regarding the “Warranty” since it is an item which is required to be addressed in the Response? The “warranty” will be removed from required responses in the RFP. 71. Once the new Transit Center is open and operational-will there be opportunities for Naming Rights, Station Dominations, Digital Boards, or simple static backlit dioramas? IPTC would like to see proposals that include vendors’ previous experience with these types of agreements; however, details of naming rights will be negotiated in the final contract. 72. With the Transit Center opening are there any planned service enhancements scheduled or budgeted? More routes, more frequency on current routes? No additional service will be added automatically with the DTC opening. However, rerouting will improve frequencies on key corridors in the downtown area. Also see answer to question 52. 11