DATE: April 13, 2018

RFP Addendum No. 1 TO ALL OFFERORS (15 Pages)

From: Erma A. Baker

Reference: RFP WM18-1686 Marketing and Multimedia Rights The following information incorporates notes from the 4.10.18 pre-proposal conference and questions from potential Offerors, and shall be incorporated into the RFP:

Proposals are due April 23, 2017 at 2:00 PM at the Procurement Office (see address below). Late proposals will not be accepted.

College of William and Mary (Use this address for US Mail delivery only. Allow for a 2 day internal delivery delay) Office of Procurement P. O. Box 8795 Williamsburg, 23187-8795

College of William and Mary (Use this address for hand delivery or Express Services only) Office of Procurement Facilities Management Building, Lower Level, Rear Entrance 115 Grigsby Drive Williamsburg, Virginia 23185

The following links are provided for informational purposes:

W&M Campus expanding Arts District https://www.wm.edu/news/stories/2017/exterior-designs-approved-for-wm-arts- buildings.php

2015 Campus Masterplan https://media.wm.edu/content/wm/financeadministration/2015_campus_master_plan.pdf

Williamsburg Virginia projects that may impact W&M http://www.vagazette.com/news/va-vg-broad-street-1014-story.html

Revision in original RFP Section XI. (page 12) Special Terms and Conditions cited as mandatory is corrected as follows:

Please check each box below confirming the offeror’s agreement with the following preferred conditions of award.

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The Following question & answers reflect those submitted by potential Offerors prior to the pre-proposal conference and questions poised during the conference:

No. Question Answer

1 Attachment J, Page 39 and Page 5 III. Bank of America: This is an affinity contract (Riverside Heath Services, Ferguson with the Alumni Association | Nationwide: Enterprises, , Bank of affinity contract with the Alumni Association | America and Nationwide: Please provide Colonial Williamsburg: $50K annual the terms of all current sponsorship commitment with additional incentives agreements (2017-18) including contract associated with the current MOU | Ferguson length, expiration date, cash investment Enterprises: Speaking opportunities, GIK, data level, trade/barter investment level, and metrics towards the Business Analytics expectation of renewal and other Program with the Raymond A Mason School of information you deem important as well Business, Career Networking with the Alumni as copies of all agreements. Association and Cohen Career Center | Riverside: $20K with Athletics, GIK for the Christopher Wren Association, program and speaking engagements with the Raymond A Mason Schoo l of Business

2 Attachment J, Page 39: What is the total See attached Sponsor Revenue Excel cash revenue resulting from each Spreadsheet sponsorship contract (excluding trade)? The RFP only states that typically over 75% of the $870,000 in revenue is trade. Can you be more exact? Please provide the break out for the campus wide sponsorships listed above in #1 as well.

3 Attachment J, Page 39: What is the total See attached Sponsor Revenue Excel trade revenue resulting from sponsorship Spreadsheet contracts? Please provide for the campus wise sponsorships listed above in #1 above as well.

4 What are the terms of all sponsorship All contracts with athletics are year to year agreements for the previous 2 years (2015- except for the following: 1st Advantage spring 16 and 2016-17) including contract length, 2020, All State spring 2020, Bayport Credit cash investment level, trade/barter Union spring 2019, Diamond Springs spring investment level, reason if did not renew 2022, Lumber Liquidators spring 2019,

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No. Question Answer and other information you deem University Sports Publications Fall 2019, Phillip important? Please provide for both the Richardson Spring 2021) Athletics sponsorships as well as the University Wide Sponsorships.

5 2017-18 forecast of all additional related See attached Sponsor Revenue Excel revenue (gross and net) that would be Spreadsheet included in a sponsorship and multi-media rights partnership as well as the terms and detail on all for the previous 2 years (2015- 16 and 2016-17). Typical revenue lines include:

6 a. Game Program Sales W&M does not sell game programs. b. Official Athletic Website Revenues None currently (those that will be included in partnership – i.e., subscriptions, auctions, etc.) c. Rights Fees (radio affiliates, None currently television, mobile audio/video content) d. Post-Season radio revenue billed to Currently no post season radio revenue. sponsors e. Other

7 Are there any other third parties that have Prime Consulting Services has authority to sell the opportunity to sell advertisements in the Alumni Magazine. advertising/sponsorship inventory?

8 Attachment J, Pages 39-14: The RFP states There are marketing benefits that W&M must that the Bank of America, Nike, Under provide as part of the contract. Other than Armour and Pepsi agreements are apparel expectations for the coaching staff and excluded categories. Are there any athletic the team, there is no commitment to provide marketing assets included in these Nike with any sponsorship materials. W&M agreements? If so, please provide a copy of does provide comp tickets to the vendor, but the agreement or at least the marketing that has been as a courtesy. assets.

a. Will the Offeror be expected Yes, in conjunction with our Marketing team to fulfill and manage the athletics marketing inventory?

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No. Question Answer b. Is any revenue allocated to If it is athletics inventory, it is likely that the Athletic Department? If so, revenue would be allocated to the Athletic what is the breakdown per Department. sponsor? c. Will this revenue be included Yes it should be included. in the partnership revenue? d. Please provide the contract Currently we have a water exclusion, however, language for each excluded that is up for negotiation. category that defines such category. For example does the Pepsi contract exclude, water, or coffee etc.

9 Please provide detail on all expenses directly tied to the sponsorship and multi- media area. Please provide all contracts/vendor agreements (radio, television, internet, etc.) where applicable. Please forward both 2016-17 actuals and 2017-18 forecasted expenses for all areas identified. Operational Expenses: 10 1. Signage Production (design, 5000 printing, installation) 2. Promotional Merchandise 23500 3. Official Game Day Program 36450 (print & design) 4. Print (schedule 17400 cards/posters, flip cards, calendars, etc) 5. Equipment Rental (signage 0 units, radio broadcast units) 6. All Other Expenses 34000 Media Expenses: 11 Radio Market Clearance (per each 25000 sport and coaches show). Please provide a copy (copies) of radio affiliate contracts related to game day and coaches show broadcasts 2. Line Transmission 4500 3. Engineering 2200 4. Digital/Internet/Streaming 105000

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No. Question Answer 5. Television Production - (sporting events and coaches shows) 6. Broadcast Talent/Crew 27000 7. Talent Travel (all air, hotel, 4000 meals, car rental, cabs, etc.) 8. Other 0 Coaches Fees/Endorsements: 12 1. Identify any Coaches Fees Currently no coaches fees are charged to the that are related to and charged to sponsorships. the current sponsorship and multi- media rights program.

13 2. Please identify all The only agreements we have are with Nike endorsement agreements that and UA for our coaching staff. Money provided current Head Coaches have under is only promotional dollars. contract with outside businesses. Please include the expiration date of these agreements and the fee paid to the respective coach by each entity.

Ticket/Suites: 14 Detail all expenses directly tied to See attached Sponsor Revenue Excel corporate sponsorship agreements that Spreadsheet are NOT included in the identified gross corporate sponsorship revenues. (i.e., if the value of the tickets included in an agreement is not deducted from the gross revenues, this number should be $0).

1. Tickets 15000 2. Suites - 3. Premium Parking - 4. Donations/Memberships 120 5. Other Tickets (i.e., - Conference Tournaments) 6. Other -

Travel and Entertainment: 1. Airlines/Train - 2. Car Rental -

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No. Question Answer 3. Hotel - 4. Entertainment/Sponsor 2000 Hospitality 5 Meals 150 6. Parking, Tolls, Mileage, Gas 3000 7. Cabs, Local Fares -

Administrative: 15 Please identify all expenses or information We had a full time position managing tied to the personnel currently assigned to Corporate Sponsorships. When that person the corporate sponsorship and multi-media retired, we did not rehire due to the pending rights program including any University RFP. We gave the responsibilities to Nate personnel expectations. Engelhardt - Athletics Business Manager to manage until the new partner was in place.

1. Personnel (including 1 - Nate Engelhardt: Athletics Business benefits): Please identify the Manager number of people assigned to the project as well as the titles and any compensation information if available. 2. Office Expenses - 3. Telephone 500 4. Computer 2000 5. Postage & Delivery 500 6. Office Supplies 100

OPERATIONAL:

Inventory: 16 Are any third party companies allowed to No sell signage on behalf of the University? If so, can you detail what inventory this company(s) controls? Does the University receive any revenue/rights fees from this relationship?

17 Is the cost of the identified promotional No merchandise tied directly to sponsor agreements? If so, does the sponsor agreement stipulate that the University is

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No. Question Answer responsible for the cost of promo merchandise production?

18 Are any third parties allowed to sell University Sports Publications (multi-year deal advertisements in the program (i.e. though fall 2020) University Sports Publications)? Who currently distributes the programs?

19 Who is the current flagship radio station The Tide Radio Network - Davis Media Contract and affiliates? What are the terms of this agreement? Can you provide a copy of the agreement?

20 Please provide a copy the SideArm Sports https://wm.cobblestone.software/public/ agreement and/or terms of the current agreement.

21 Please provide a copy of the Cox Cox Communications agreement referenced in Term: 2017 section IV on page 6. Scope: Televise and showcase the W&M football program on YurView Channels (YV) in the Hampton Roads, Fredericksburg, Fairfax County, Fredericksburg, Roanoke, and other Cox YurView markets as available. YR shall retain six minutes of commercial time within the Program for its own sales effort.

22 Please identify any expenses (i.e. tickets, Tickets and Parking - Suite revenue must be in parking, suites) that the University would addition at this current time. allow to be deducted from gross revenues.

23 How many staff members are designated One position - Nate Engelhardt (Athletics to the management of the sponsorship Business Manager) program (selling and implementation)? Please provide titles for all individuals.

Facilities:

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No. Question Answer 24 Does the University plan to build or Two new buildings will be a focus at this time: renovate any of its sports venues in the A Basketball practice facility and A Field near future? If so, please provide detail of Hockey building that will house locker rooms, the venues and the timeline to start or bathrooms, an office and a training room. We complete any respective project of this are also focused on updating our scoreboards nature. in the following venues: Baseball (scoreboard); Kaplan arena (New Center Hung); Football (scoreboard)

25 Do the current University athletic facilities - High School Football host any major events that do not include championships, Kaplan Arena - concerts and the Athletic Department's sport teams? high school graduations (i.e. High School Championships, Concerts, Commencements)

RFP Specific Information: 26 Section II, Paragraph 3, Page 4 (term): Term of contract is subject to negotiation. Given the investment necessary for a multi-media rights partner to appropriately and successfully launch a partnership with a university, an initial term longer than that detailed in the RFP would be financially and logistically advantageous to the University. May the prospective rights holders advance a proposal with longer initial and renewal terms, which is more in line with University Multi-Media Rights industry standards?

27 Section II, Paragraph 3, Page 4 (term): W&M may extend the renewal option for the Please clarity which party (Offeror, W&M, award contractor to consider. or both) has the option to exercise the two (2) additional five (5) year renewal periods referenced elsewhere in the RFP?

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No. Question Answer 28 Section III, Paragraph 3, Page 5 (current See answer to Question 1 partners): Was the $350,000 in sponsorship revenue referenced in this paragraph generated from the five (5) campus partners listed in this paragraph (i.e. Riverside Health Systems, Ferguson Enterprises, Colonial Williamsburg, Bank of America, and Nationwide Insurance), or from ALL campus partners (excluding Athletics)? If the former, please advise as to the total sponsorship revenue in 2017- 18 generated from ALL campus partners (excluding Athletics).

29 Section VII, Paragraph A, Page 8 (SWAM Encouraged if practicable for the solicitation, subcontracting and reporting): Please not required. advise whether subcontracting to minority and/or women-owned businesses is a requirement for acceptance of a proposal and/or award of a contract.

30 Section VIII, Paragraph B, Page 9 (award Responses should follow guidelines outlined in document): May the Offeror submit its the RFP, W&M will initiate contract own proposed form of contract?

31 Sections X, XI and XII, Pages 12-13 (terms Mandatory terms & conditions cannot be and conditions): May the Offeror submit altered. suggested changes and exceptions to the Changes to Special terms & conditions, and Section X Mandatory General Terms and Additional terms & conditions can be Conditions? To the Section XI Special negotiated. Terms and Conditions and Section XII Additional Terms and Conditions? To any other provisions included in the RFP?

32 Attachment C, (Contractor Data Sheet) W&M will allow Offerors to provide a range Page 16: Due to confidentiality with our rather than an exact dollar amount. properties is the “$ Volume/Year” a requirement as part of providing our References?

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No. Question Answer 33 Attachment D (SWAM Utilization Plan), Encouraged if practicable for the solicitation, Page 17: Is the Offeror required to be not required. certified by the Commonwealth of Virginia Department of Small Business and Supplier Diversity prior to submitted a proposal or only upon award of bid?

34 Attachment F (Financial Proposal), Pages Offeror should submit all three options 20-25: Please clarify if Offeror is required to submit all three (3) base financial models with its proposal, or if Offeror may submit only one (1) or two (2) of the base financial models.

35 Attachment F (Financial Proposal), Page Yes, this will be shared with Addendum 1. 21-25: Can you please provide Attachment F as a word document?

36 Attachment H (Campus Inventory), Section None planned at this time. 2, Page 35: Please advise if the University currently anticipates posting any RFPs for any new exclusive campus wide partners, and for which categories.

37 Attachment J (Campus Currently Athletics only gets a flat fee of Sponsorship/Advertising Restrictions), $60,000 from auxiliary services for our portion Pages 39-40: Pepsi appears to be a current of the Pepsi contract and very little product campus-wide partner and Athletics (coolers and water bottles) Department partner – please advise as to how much of the Pepsi revenue is allocated towards the Athletics Department.

38 Attachment K (RFP Submission Checklist), COI may be submitted upon award of contract. Page 41: Please clarify whether the Certificate of Insurance needs to be submitted with the Offeror’s proposal, or can be submitted following award

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No. Question Answer 39 Based upon our business model and the Termination for convenience is within the required investment to work on behalf of preferred T's & C's and may be negotiated. the College, we typically have a problem with the Termination for Convenience Clause being part of agreements. Will proposals that address our intent not to include this clause be accepted? (Having this clause included will impact our ability to make CAPEX and Guarantee commitments.)

40 Can you provide a list of all cash sponsors Attached (document with tabs Sponsorship and investment levels and the assets each Revenue F18) has?

41 Same for your trade sponsors? Attached (document with tabs Sponsorship Revenue F18)

42 You share cash and trade levels, can you See answers to Question s 10 & 11 break out your current expenses tied to those revenues? Staff/Labor Expense? Radio Expense? Printing Expense? Production Expense? Contract Fulfillment Expenses?

43 What are the roles of the staff currently W&M had a full time position managing selling and executing on behalf of your Corporate Sponsorships. When that person sponsors? retired, we did not rehire as we knew we were going through this process. W&M gave the responsibilities to Nate Engelhardt - Athletics Business Manager to manage until the partner was put in place.

44 Any new or enhanced assets currently New Coach Comm unit that is not wrapped. It planned or contemplated? will be on the sidelines at every home and away football game and most school obtain sponsorship for this item. A hospitality area at all home football games.

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No. Question Answer 45 The RFP references the right for the 1) All existing contracts (whether W&M / University to select campus-wide partners, VA / or VASCUPP will be followed and either in addition to or as replacement for contractual rights that need to be adhered to current partners. How this is intended to during these processes. In situations where work? W&M has existing contracts, such as pouring rights – this would most likely remain with W&M. 2) If that ever changes and the multimedia rights partner was involved in the renewal of an existing partner or category like pouring rights, W&M would have to be guaranteed to maintain at minimum the same level of revenue from the partner or category. 3) For potential new campus wide partners or categories, the multimedia rights partner is able to participate in the discussions/negotiations as it relates to campus & athletics sponsorship elements included as part of the overall agreement, subject to any W&M / VA / VASCUPP procurement restrictions. Current contract terms and renewal dates are posted on the Procurement Services website.

46 This also, seems to contemplate athletic The intent is that Athletics will be a partner assets being included in Campus-wide with campus, but that athletics inventory items partners. How is this intended to work? will be paid to athletics even if the sponsorship is split between Athletics Inventory and Campus Inventory.

47 Is there a possibility of having one rights No. Objective of the RFP is to support a holistic holder for athletics and another for approach to all campus assets. campus?

48 Can you please provide us access to some Photos high resolution athletics and campus photos to use in our proposal?

49 In addition to the sponsor agreements, can We do not have a specific inventory card, you share the current William & Mary attached is the document that shows what athletics inventory rate card? inventory we have available currently.

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No. Question Answer 50 Can you clarify which College athletic 4 people are involved in the process, only two department employees are actually selling are actively selling. Nate Engelhardt – Athletics the athletic inventory? What percent of Business Manager (majority), Bobby Dwyer – their time is devoted to sales? Senior Associate AD Development (minor role). 20% of Nate’s time is dedicated to selling and 5% of Bobby’s time.

51 Can you share any details/insights on the Cox contract attached. Plan to do 5 Football arrangement with Cox for games this year if possible with Conference broadcast/streaming of W&M athletic requirements. We are currently selling events? Number of events and inventory inventory, details included in the contract in available, etc.? Is Cox active in the market 4/5/6. selling this inventory as well? If so what is the break out of the available commercial/sponsor inventory?

52 Just want to confirm that the intent is for This would be open for negotiation. We would the College to continue to be responsible be open to the rights holder taking this on for the production of and expenses completely if it was more beneficial. associated with Collateral Material – including any programs, posters, etc.?

53 Just also to confirm the intent is for the At this time, we would continue to be College to continue to be responsible for responsible for this for at least the next Fiscal radio broadcast expenses, including talent year. However, we are up for negotiation if fees, clearance fee, etc.? If not and that having the rights holder manage would be expense is to be assumed by the new more beneficial. partner, please provide a breakdown of current fees and expenses.

Does the College retain all radio Davis Media Contract attached. Inventory inventory in the local market – if allotment for next year is currently being not – what is the breakout with negotiated. the affiliate? Does the College desire to have We would be open to expansion. the new partner expand radio coverage if possible beyond the current delivery area? 54 In general – please provide any insight on Salaries and benefits of the employee that will any other current College athletic be managing our rights. (cost up to the elements or activities (if any) and company managing our rights.) Travel for this associated expenses that are to be employee (10,000 depending on how much assumed by the new partner travel is required). Print materials (55,000).

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No. Question Answer Media Expenses – if we negotiate to have those taken on by the rights holder – including streaming, radio, tv (160,000) These numbers will be up for discussion and negotiation.

55 Please list any companies, stations or Davis Media, University Sports Publications, individuals that have contractual rights Cox. and are selling William & Mary assets University Sports Publications Co., Inc. and/or inventory in the local/regional Term: Through 2019 Season, and automatically marketplace. renewed unless terminated in writing before December 31st. Scope: W&M grants USP the right to solicit advertising and supply advertising for the official football program. USP is solely responsible for solicitation, billing and collection activities associated with the advertisements it places. Davis Media Term: July 2012- 2018, with five optional one year renewals. Scope: Davis Media should furnish all labor, materials, equipment, and supplies necessary to provide Radio Broadcasting Services – Flagship Station for the WMAD at the College of William & Mary. Radio broadcasts must be in compliance with NCAA and Colonial Athletic Association Bylaws. WMAD will provide announcers for all games and coaches’ shows. The announcers/color commentators are employees of the College and the flagship station will not be responsible for their acts or omissions. All games must be broadcast live. In the event that both a W&M football and basketball game are being played at the same time, W&M will provide direction as to which game should be broadcast See question# 21 for Cox data.

56 Season ticket holders by sport. See attached Sponsor Revenue Excel Spreadsheet 57 What percentage of alumni stay within the Based on current demographic data for W&M region? alumni for regional areas including DC, Virginia, and NC, it is 50%.

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No. Question Answer

58 Attach word file of attachment F Financial See Attached Financial Word file

59 Ranked attendance by sport (need to See attached Sponsor Revenue Excel bounce this off of our RFP to see if we Spreadsheet covered any of this)

Note: A signed acknowledgement of this addendum must be received either prior to the proposal due date and hour or attached to your proposal. Signature on this addendum does not substitute for your signature on the original proposal document. The original proposal document must be signed.

Sincerely,

Erma A. Baker Director of Procurement Services Procurement Services P.O. Box 8795 Williamsburg, Virginia 23187-8795 757/221-3952 [email protected]

Name of Firm

Signature/Title

Date

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