Contract for Advertising of Bus Shelters and Free Standing Units

The London Borough of Hounslow (the “Council”) is seeking to award a contract for the provision of Advertising and Maintenance of Bus Shelters and Free Standing Units (including the maintenance of 109 bus shelters and 40 free standing units). The purpose of this document is to provide tendering organisations with some context relating to this contract, in order for the tendering organisation to provide a fully comprehensive “output” based solution in the form of a Business Plan and Finance Schedule (both of which should be bespoke to the Council and each of the listed headings).

Offers must be valid for 120 days.
The process is broken down into the following sections:

OJEU Wording:

The Council is seeking to appoint an experienced company with a great track record in generating advertising revenue specifically on bus shelters. The process the Council wishes to follow is to open up the opportunity to companies where your expertise is better placed in drawing up a business plan to submit as your 'Offer', which if accepted would form the basis of a contract between both parties. The proposed Terms and Conditions to be adopted are available on the London Tenders Portal.

The process to follow is outlined below;

Submission of a complete Business Plan covering an initial period of 10 years. Companies are asked to submit a Business Plan covering the Headings below (although this is not an exhaustive list):

1. An Executive Summary of company providing a summary of your experience, sample of clients and examples of successful contracts where income has been maximised to its full potential.

2. Maximisation of Income – the strategy the company will employ to maximise the potential income year on year for the initial 10 year period.

3. Key Assumptions for maximising income over the 10 year period.

4. Potential capital investment to maximise income generation

5. Your ‘Offer’ from the commencement of the contract to expiry. Include the split percentages between the Council and company, that you feel are feasible from day one of the contract and any guaranteed minimum income, i.e. guaranteed minimum profit share to the Council.

6. Provide clarity where you feel the maximise income potential will be achieved within the 10 year period without any investment or additional sites.

7. Digital advertising.

8. Maintenance regime of the Bus Shelter and advertising signs etc.

9. Your experience in submitting Planning applications, including any consultation with stakeholders.

10. Management information. What information do you consider relevant for this contract to be measured on a monthly or quarterly basis.

11. Performance. An annual meeting between parties where the company presents an over view of the year past and the year ahead, with forecasts and improvements to service (where applicable).

12. Remedies for poor performance. What you feel is appropriate and commercially acceptable.

13. Risk management

14. Exit strategy

15. Open Book Accounting. The Council expects the company will run the contract on an Open Book accounting basis. The company is expected to provide reports to the Council at least twice a year on the income and expenditure generated by the contract and to pay the Council an annual profit share no later than three months following the end of the contract year.

Evaluation criteria: Quality 20% and Offer (Price) 80%. Quality is scored out of a total of 10 for the business case as a whole. The Council will evaluate financial submissions based on the total guaranteed annual profit share over the initial 10 years of the contract. Interviews will be conducted and original scores can be adjusted accordingly. Companies are asked to present their business case to a panel of Council Officers. After the interviews a further moderation of scores will be conducted.

Note: If you fail to provide a response to any of the above, your ‘Offer’ may be deemed to be non-compliant. If an Offer is deemed to be non-compliant, the Offer will be rejected and excluded from further participation in this Procurement.

For further information relating to the requirements and submission please see the below presentation:

Please see the London Tenders Portal for access to the Presentation.