Consider Action to Approve a Resolution Authorizing an Agreement for Special Events Sponsorships Development, Sales and Activation Services Between the Town of Addison and Mile Zero, Inc., and Authorize the City Manager to Execute the Agreement.
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The Town of Addison conducts and hosts various special events, and seeks to maintain and grow revenues in our event sponsorship program through the solicitation, sales and activation of event sponsorship agreements. The current contract with LST Marketing, Inc. for sponsorship sales services will expire on September 30, 2019, and does not have any remaining renewal options.
On June 18, 2019, the Town of Addison posted Request for Proposal (RFP) #19-211 for Sponsorship Sales Services. The scope of services included in the RFP included a detailed analysis and valuation of available event assets, development and customization of sponsorship packages, solicitation and negotiation of cash sponsorship agreements, ongoing sponsor communication, onsite sponsor management during events, and associated reports and presentations. The RFP closed on July 16, 2019; 5 submittals were received.
Initial staff review and scoring of the proposals led to the selection of 3 agencies as finalists. The finalists were interviewed by a staff panel on July 26, 2019 and scored in five areas, including the ability to provide staff to manage onsite sponsor operations during major festivals and response to a questionnaire detailing the type and quantities of sponsorships obtained by the company, areas of expertise, sales and communication strategy, and past clients and projects.
| Vendor Name |
Fee & Commission Structure |
Qualifications & Experience |
Vendor Questionnaire |
Onsite Sponsor Management |
References |
Total Score |
| LST Marketing, Inc. |
16.06 |
25 |
10 |
15 |
7 |
73.06 |
| Mile Zero, Inc. |
18.71 |
27 |
20 |
15 |
15 |
98.71 |
| Sponsor Bureau |
20 |
15 |
15 |
7 |
10 |
67.00 |
The staff panel unanimously selected Mile Zero, Inc. as the recommended agency for bid award. The company is skilled and experienced in sponsorship sales, received high praise from festival organizers in several states, has demonstrated the ability to obtain high value sponsorships, and maintains relationships and communication that has led to regular sponsor contract renewals for its clients. The agreement with Mile Zero, Inc. would take effect on October 1, 2019 and run for two years through September 30, 2021. There are options for two two-year renewals.
Per the terms of the agreement, Mile Zero, Inc. would receive a monthly retainer of $4,166.66 for labor in the performance of the contracted services, a commission of 10% of sponsorship sales, and reimbursement of agreed upon travel expenses. For Fiscal Year 2020 with estimated total sponsorship sales of $371,000 this would result in payment of $98,500 to Mile Zero, Inc. This is $8,200 less than we would have paid to LST Marketing, Inc. under the terms of our current sponsorship sales contract, and is within the budgeted amount for Fiscal Year 2020. |