NEW SNAFU ERUPTS IN CALIF. LOTTERY AD REVIEW

RFP Disclosure Requirements to Be Amended

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SAN FRANCISCO (AdAge.com) -- The California Lottery is amending its request for proposals for its four-year, $100 million general marketing contract because nearly all eight participants
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in the pitch failed to meet disclosure requirements.

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.

New timetable
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.

Emphasizing 'all'
"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 contenders
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.

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