Three Companies Recommended For Printing, Strategic America For Advertising
DES MOINES, Iowa - The Board of the Iowa Lottery Authority approved contract proposals Thursday in two major areas of the lottery's business: the printing of instant-scratch tickets and advertising.
Evaluation teams of lottery employees spent several months preparing request for proposals documents in both areas and evaluating the responses received.
The Lottery received bids from four companies in response to its advertising RFP, three of which were for creative services and media services, one of which was for creative services only. The evaluation team recommended the proposal from Strategic America in West Des Moines in both areas.
The value of the advertising services contract in fiscal year 2011, the lottery's latest financial year, was about $81,000 in agency fees with purchases of $508,000 in creative materials. The value of the media services contract in FY 2011 was about $286,500 in agency fees with media placement of lottery advertising of about $4.3 million.
The Lottery received bids from three companies in response to its RFP for scratch-ticket printing. The evaluation team recommended proposals from all three companies, subject to successful completion of a background investigation by the Iowa Division of Criminal Investigation. The companies are: GTECH Printing Corp. in Lakeland, Fla.; Pollard Banknote Limited in Winnipeg, Canada; and Scientific Games International Inc. in Alpharetta, Ga.
Scratch-ticket sales in FY 2011 in Iowa totaled $176 million. There are at least 24 scratch games available for sale at any time in Iowa and the lottery introduces new games each month.
During its meeting Thursday, the Lottery Board accepted the evaluation teams' recommendations and directed the lottery to begin contract negotiations with the companies. The advertising contract would be for two years beginning July 1 with the possibility of four one-year extensions while the ticket-printing contract would be for two years beginning Jan. 1 with four one-year extensions possible.
The lottery's current contracts for media services and creative services, held by Strategic America and Integer Midwest in Des Moines respectively, began in 2007 and will expire June 30. Its current contracts for scratch-ticket printing, with Scientific Games and Pollard Banknote, began in 2008 and will expire Dec. 31.