LAX

LAJOntal'io

City of Los Angeles

Antonio R. Villam lgosaMayor

Board of AirportCommissionel's

Micllael A. LawsonPresident

Valeria C. VelascoVice PresJderit

Joseph A. AredasHobert D. BeyerBoyd HightAnn M. HollisterFern" ndo M. Torres-Gil

Gi na Marie LindseyExecutlvs Director

Los AngelesWorld Airports

January 22, 2013

The Honorable City Councilof the City of Los Angeles

City Hall, Room 395Los Angeles, CA 90012

Subject: Council File 13-0082

Transmitted herewith for your consideration is Resolution No. 25017, in which the Boardof Airport Commissioners, at their meeting of January 14, 2013 approved. ResolutionNo. 25017 authorizes a three (3)-year Contract each with Ii] The Phelps Group; Iii]AdEase, lnc.; and [iii] Nothing Films, Inc. for public education communication; for mediabuying services; and for video production services, respectively the for Los Angel.esInternational Airport Modernization Public Education Communication Services Program.

There is no fiscal impact to the City's General Fund as a result of this action.

Very truly yours,

Sandra J. Miller, SecretaryBOARD OF AIRPORT COMMISSIONERS

Enclosure - Agreement

cc: Trade, Commerce and Tourism CommitteeCouncil member LaBonge, E-fileCouncil member Rosendahl, E-fileCouncilmember Buscaino, E-file

CAO (Airport Analyst), E-fileCLA (Airport Analyst), E-fileCity Clerk's Office, Ene. (one original and one copy)

1 World Way Los Angeles Califolilia 90045-5803 Mail P.O.Box 92~16 Los ilngeles C,lliforn'" 90009-2216 Tejephoue 310 G46 5252 tnreruet WWW.l8Wil.oOro

Los Angeles Wurld AirportsBOARD FILE NO. DA-4786

DA-4787; DA-4788

RESOLUTION NO. 25017

LAX

WHEREAS, on recommendation of Management, there was presented for approval, Award ofa three (3)-year Contracts to implement Los Angeles International Airport (LAX)Modernization Program Public Education Communication Services to: The Phelps Group forPublic Education and Communication Services, for an amount not to exceed $1,625,000; toAdEase, Inc. for Media Buying Services in support of LAX Modernization CommunicationServices, for an amount not to exceed $1,550,000; and to Nothing Films, Inc. for VideoProduction Services in support of LAX Modernization Communication Services, for anamount not to exceed $690,000, for a total program amount of $3,865,000; and

lAjOntario WHEREAS, LAX Modernization Public Education Communication Services is a multi-year,Van Nuys coordinated effort to educate, inform, and engage many diverse audiences about the LAXCity ofLos Angeles Modernization projects, including the Bradley West Project, and future critical infrastructure

. . . and facility upgrade projects at LAX. Its general purpose is to address the Board of AirportAntonio R. vltlaraigosa C .., d d . t t hensi t . f thMayor ornrrussroners expresse esire 0 crea e a com pre ensive program 0 In orm eBoard of Airport community, the traveling public in the terminals, the regional business and industry market,Commissioners and the larger aviation world about the extensive modernization effort at LAX; and

Michael A. LawsonPresident WHEREAS, in response to the Board's request to investigate ways to better inform the public

about Bradley West and other modernization projects at LAX, staff determined the need todevelop comprehensive public education/outreach services. We studied similar programs atother airports and then sought input as to how these services could best be structured byreleasing a Draft Request for Proposals (RFP) for comment on City of Los Angeles BusinessAssistance Virtual Network (LABAVN), and received many' ideas and suggestions; and

Valeria C. VelascoVice President

Joseph A. AredasRobert D. BeyerBoyd HightAnn M. HollisterFernando M. Torres-Gil

WHEREAS, Procurement Services Division (PSD) posted the final RFP on LABAVN onG ina Marie LindseyExeculiveDirector August 1,2012, with a due date of September 19, 2012. The RFP requested responses to

three (3) proposal Elements, as follows:

Element I: LAX Modernization Public Education Communication ServicesElement II: Media Buying Services in support of the LAX Modernization Public Education

Communication ServicesElement III: Video Production Services in Support of the LAX Modernization Public

Education Communication Services; and

WHEREAS, on October 1, 2012, Los Angeles World Airports (LAWA) received twenty (20)responses to the RFP_ As outlined in LAWA's Proposal Evaluation Policy and the RFP, theevaluation panel determined to interview only the top firms for each Element, and sodeveloped a short list for interviews using the evaluation criteria established in the RFP. Asshown below, the criteria and points were the same for each Element, with the exception ofItem number 5:

Item I Evaluation Criteria Points IIQualifications, references, experience and depth of the PrimeProposer and Proposer Team

15

1 25

2 Demonstrated understanding of program goals, project scope anddeliverables

1 World Way P.O. Box 92216 Los Angeles California 90009-2216 Telephone 310 646 5252 Facsimile 3106460523 Internet www.lawa.arg

Resolution No. 25017 -2-

3 Demonstrated understandinq of Los Anqeles/LAX environment 154 Program approach and creativity of proposed strategy 25

Element I: Hourly rates for proposed team members

5 Element II: Commission % of Net Billing and other costs and fees20Element 111:Hourly rates and overall production costs of sample

audio spots and videos________________________ To'-t_al_: I 100; and

WHEREAS, LAWA received six (6) responses to Element I of the RFP as follows inalphabetical order:

Cook + SchmidEverfield ConsultingRogers I Finn PartnersThe Phelps GroupTrailer ParkWest Coast Public Affairs; and

WHEREAS, PSD reviewed the proposers' Administrative Documents and determined thatTrailer Park did not perform good faith effort outreach; therefore it was deemed non-responsive. The evaluation panel developed a short list for interviews using the evaluationcriteria established in the RFP, as shown above, and determined to interview the top three (3)firms for Element I. The panel conducted oral interviews on November 15, 2012 with thosefirms and ranked the proposers as follows:

1. The Phelps Group2. Rogers I Finn Partners3. West Coast Public Affairs; and

WHEREAS, subsequent to interviews, West Coast Public Affairs submitted a request toLAWA to withdraw their proposal; and

WHEREAS, the panel recommends award of contract to The Phelps Group as the bestqualified firm for Element I. Phelps clearly demonstrated experience managing similarmultiple-year public education communication services, developing comprehensive strategicplans to drive awareness, conducting marketing research, and implementing marketing plans.Their "All Communications, One Voice" and the team approach as described in their proposaland interview especially appealed to the panel. Phelps wiil be responsible for delivering andexecuting an LAX Modernization StrategiC Communication Plan. The scope of this contractincludes, but is not limited to:

• Develop & Implement Public Education/Communication Serviceso Develop and manage a StrategiC Communication Plan (including benchmarks and

timeline)o Provide messaging and creative concepts for multiple-language audiencesa Conduct brand research and determine strategieso Measure impacts and results of these Communication Services

• Implement a Multimedia Public Outreach Programo Develop and implement a formal public outreach plan and multimedia strategyo Identify methods to increase awareness of LAX Modernization Program and brand

associationo Provide creative content for use in brochures, newsletters, construction signage,

messaging, etc. for public education/outreacho Create and populate a virtual library of content

Resolution No. 25017 -3-

• Conduct Public Opinion Researcho Analyze current researcho Conduct consumer acceptance testingo Provide ongoing analysis to determine impact of LAWA initiatives

• Develop Media Targetingo Develop media list and editorial calendar research and development for various

audiences:

External:• Los Angeles Communities• Elected officials• Social media networks• TravellTourism industry• Airport and aviation organizations• Local, national and international media

Internal:• LAWA employees and extended staff• LAX stakeholders• Traveling Public and LAX users

o Develop content and graphic and layout design for identified collateral materialso Collaborate and coordinate efforts of Element II & III contractors for creative content

and deliverables with respect to media buys and video productiono Monitor, track, and document media coverage and report on progress

• Develop web functionality and social media strategiesa Work with LAWA staff to develop a strategy to promote LAX social media, to include

partnering with robust L.A.-·focused social media to deliver creative content andmessaging

In addition, Phelps will coordinate with the Terminal Media Operator to promote LAX mobilephone applications and will provide additional strategic consulting as needed; and

AdEase, Inc.Bloom AdsGP GenerateMayaPraxisSensisThe Phelps Group; and

WHEREAS, LAWA received seven (7) responses to Element II of the RFP as follows inalphabetical order:

WHEREAS, PSD reviewed the proposers' Administrative Documents and deemed GPGenerate non-responsive. The evaluation panel developed a short list for interviews usingthe evaluation criteria established in the RFP, as shown above, and determined to interviewthe top two (2) firms for Element II. The panel conducted oral interviews on November 15,2012 with those firms and ranked the proposers as follows:

1. AdEase, Inc.2. Bloom Ads; and

Resolution No. 25017 -4-

WHEREAS, the panel recommends award of contract to Ad Ease, Inc. as the best qualifiedfirm for Element II. AdEase has extensive relevant experience researching, creating andimplementing media buying strategies. In addition, their use of cooperative advertising anddelivery of "added value" (e.g. bonus media spots based on paid placement) will benefitLAWA AdEase is a certified Disadvantaged Business Enterprise, Small BusinessEnterprise, and MinoritylWomen-Owned Business Enterprise; and

WHEREAS, AdEase will be responsible for developing and implementing a Media BuyStrategy to support the LAX. Modernization Public Education Communication Services,producing media buy schedules, executing and tracking buys, and providing related reportsand analyses. The scope of this contract includes, but is not limited to:

• Define target audiences to align communication objectives• Work with LAWA staff and Phelps to create a comprehensive media strategy to

incorporate exposure across traditional, social, and emerging media platforms• Perform analysis to identify specific media platform, projected reach, and identify

opportunities to educate and increase project awareness/brand recognition• Identify most effective media platforms, traditional and non-traditional• Recommend media services to reflect the objectives of the communication message

and appropriately support creative content• Negotiate added value for all media placements• Track and verify all media buys to confirm budget agreements• Prepare monthly recaps that provide key performance indicators by medium; and

WHEREAS, LAWA received seven (7) responses to Element III of the RFP as follows inalphabetical order:

AJILBeekeeper ProductionsCreative CapitalHenninger Media ServicesNothing FilmsShowreelThe Phelps Group; and

WHEREAS, PSD reviewed the proposers' Administrative Documents and found bothCreative Capital and Henninger Media Services non-responsive. The evaluation paneldeveloped a short list for interviews for Element III using the evaluation criteria established inthe RFP as shown above, conducted oral interviews on November 15, 2012 with the three (3)top firms, and ranked the proposers as follows:

1. Nothing Films, Inc.2. Showreellnternational3.. The Phelps Group; and

• Schedule and participate in conceptual planning meetings with Element I and ElementII contractors, and LAWA staff

WHEREAS, the panel recommends award of contract for Element III to Nothing Films, Inc.due to their experience conceptualizing and producing high quality video projects fortelevision, websites and social media advertising. Nothing will work with Phelps and LAWAstaff to identify, conceptualize and produce video and audio content to support the LAXModernization Program, and with AdEase to distribute content; and

WHEREAS, the scope of this contract includes, but is not limited to:

Resolution No. 25017 -5-

• Provide production bids to include pre-production, production and post-production forfull-service video and audio projects to document subjects, events and milestonesrelated to LAX Modernization

• Write and shoot complete audio spots and videos that meet goals and objectives• Provide experienced production crew, production equipment, hard drive array and any

other equipment, hardware or software necessary to accomplish all work pre- throughpost-prod uction

• Provide bids for re-edits of completed LAX Modernization video and audio projects• Provide professional video editing, including use of professional-level software and

hardware• Provide graphics and titling• Provide professional voiceover, if needed, for each audio spot and video/webisode; and

WHEREAS, the total program cost is not to exceed $3,865,000. Funding for Fiscal Year2012-2013 is available in LAWA Operating Budget. Funding for subsequent years will berequested as part of the annual budget process; and

WHEREAS, this action, as a continuing administrative activity, is exempt from therequirements of the California Environmental Quality Act (CEQA) pursuant to Article IISection 2(f) of the Los Angeles City CEQA Guidelines; and

WHEREAS, this action is statutorily exempt from the provisions of the Living Wage/ServiceContractor Worker Retention Ordinances; and

WHEREAS, PSD has reviewed this action (File No. 10033254) and established a 20%combined Minority Business Enterprise (MBE)lWomen Business Enterprise (WBE) level ofparticipation for Element I of the project. Phelps proposes 16% combined MBEIWBE levelsof participation. PSD confirms that based on documents submitted, Phelps has made a goodfaith effort to outreach to MBElWBE/Other Business Enterprise subcontractors. PSDreviewed Elements II and III, and no specific MBEIWBE levels of participation were set forthose Elements, as no subcontracting opportunities were identified; and

WHEREAS, Phelps, Ad Ease, and Nothing have been assigned Business Tax RegistrationCertificates Nos. 553090-0001-2; 2446895-0002-8; and 2631082-0001-5, respectively; and

WHEREAS, Phelps, Ad Ease, and Nothing will comply with the provisions of the AffirmativeAction Program; and

WHEREAS, Phelps, Ad Ease, and Nothing will comply with the provisions of the ChildSupport Obligations Ordinance; and

WHEREAS, Phelps, Ad Ease, and Nothing must have approved insurance documents, in theterms and amounts required, on file with LAWA prior to issuance of a Notice to Proceed; and

WHEREAS, Phelps, Ad Ease, and Nothing have submitted Contractor ResponsibilityProgram Questionnaires and Pledges of Compliance, and will comply with the provisions ofsaid program; and

WHEREAS, Phelps, Ad Ease, and Nothing must be determined by Public Works - Office ofContract Compliance to be in compliance with the provisions of the Equal Benefits OrdinancePrior to execution of the contract; and

WHEREAS, Phelps, Ad Ease, and Nothing will be required to comply with the provisions ofthe First Source Hiring Program for all non-trade LAX jobs; and

Resolution No. 25017 -6-

WHEREAS, Phelps, Ad Ease, and Nothing have submitted Bidder Contribution City EthicsCommission Forms 55, and will comply with its provisions; and

WHEREAS, actions taken on this item by the Board of Airport Commissioners will becomefinal pursuant to the provisions of Los Angeles City Charter Section 245;

NOW, THEREFORE, BE IT RESOLVED that the Board of Airport Commissioners determinedthat this action is exempt from the California Environmental Quality Act requirements;adopted the Staff Report; found that the work can be performed more economically orfeasibly by an independent contractor than by City employees; approved Award of three {3}-year Contracts to: The Phelps Group for LAX Modernization Public Education andCommunication Services, for an amount not to exceed $1,625,000, to AdEase, Inc. for MediaBuying Services in support of LAX Modernization Communication Services, for an amountnot to exceed $1,550,000, and to Nothing Films, Inc. for Video Production Services in supportof LAX Modernization Communication Services, for an amount not to exceed $690,000; andauthorized the Executive Director to execute the Contracts with The Phelps Group, AdEase,Inc. and Nothing Films, Inc. upon approval as to form by the City Attorney.

000

I hereby certify that this Resolution No. 25017is true and correct, as adopted by the Board ofAirport Commissioners at its Special Meetingheld on Monday, January 14, 2013.

*(fJ/~Sandra J. Miller - SecretaryBOARD OF AIRPORT COMMISSIONERS