8 TO PARTICIPATE IN LOTTERY REVIEW
Finalists to Be Named Next Month
OMD CAN BID WITH SIBLING SHOPS IN LOTTERY REVIEW
Calif. Commission Warns Omnicom Agencies of Antitrust Violations
11 AGENCIES TO BID ON CALIF. LOTTERY ACCOUNT
Proposals Due Dec. 15
CONTESTED CONTRACT CLAUSE CUT BY CALIF. LOTTERY
Issues Final RFP for $100 Million Worth of Advertising Work
CALIF. LOTTERY ISSUES 'PRE-RFP' FOR AD ACCOUNT
Agency Proceeding Cautiously Toward Next Round of Agency Search
A Lottery spokeswoman said of the eight agencies submitting bids, "nearly all of them had material problems." She said the Lottery decided not to cancel the RFP but instead to issue the amendment. "We didn't want the agencies to incur additional expenses," she said.
The amendment clarifies disclosure requirements, reinforces account billing requirements and sets up a new timetable, allowing the Lottery to identify finalists Jan. 27 instead of today. The contract is to go into effect this spring.
The lottery gave the eight shops four choices: withdraw from the review; retain its submitted disclosure documents; resubmit an entirely new proposal; or resubmit an amended proposal.
At issue is the disclosure of "official legal documents" identifying the name and number of board members and officers, including vacant seats on boards, of all the agencies. The Lottery noted that for corporations, this involves the submission of corporate documents certified to by the general counsel or secretary of the corporation.
"Please note again that all directors and officers of all companies including common parent companies in the submitting agency's chain of control must be disclosed," the amendment specified. "This disclosure requirement by its terms includes all officers, not just those denominated 'executive officers' as included in U.S. Securities and Exchange Commission filings." For emphasis, the commission underlined the word "all" twice when referring to "officers" of a corporation.
The Lottery advised that it would review not only available public information, but also "compare lists and documentation provided by submitting agencies sharing a common parent company."
Six of the participating agencies are owned by giant agency holding companies. Two others are independently owned.
The eight agencies vying for the account are: Grey Global Group's Grey Worldwide, Los Angeles, the incumbent; Omnicom Group's BBDO West, San Francisco and Los Angeles, and DDB Worldwide, Los Angeles, with sibling shops OMD and Alcone; Interpublic Group of Cos.' Dailey & Associates, West Hollywood, Calif.; Foote Cone & Belding, San Francisco, and McCann-Erickson, Los Angeles; and independents Ground Zero, Los Angeles, and Triple Play, a team consisting of Ruynon Saltzman & Einhorn, Sacramento, Horizon Media and WongDoody, Los Angeles.