Rail

Chicago approves ad contract, DBE program

Posted on December 10, 2009

Chicago Transit Authority's (CTA) board approved a five-year contract with Titan Outdoor LLC, for the sale and placement of print and digital advertisements throughout the agency's properties. Under the terms of the print agreement, CTA is guaranteed a minimum of $80 million or 62.5 percent to 63.5 percent of net advertising receipts, whichever is greater, from print advertising over the next five years.

For digital advertising, CTA is guaranteed a minimum of $3.3 million for all five years of the base contract. Under the agreement, Titan must recoup all costs associated with the purchase and installation of the digital displays - through revenue generated from digital ads - before CTA begins receiving its share of guaranteed revenue from this portion of the contract. Currently, there are 92 digital displays at 17 rail stations, 25 king size digital displays on buses, one urban panel and one turnstile display at the 47th Street Red Line station.

Additionally, the contract contains five one-year renewal options for both print and digital advertising. In the event all five-year options are exercised for print advertising, the agency would be guaranteed a minimum total of $105 million or 65 percent of net advertising receipts, whichever is greater. For digital advertising, the additional five-year options for would provide a minimum of $7.6 million. If, however, revenues from digital advertising exceed the minimum guarantee, CTA would receive 55 percent of all revenues for the duration of the contract.

CTA's board also approved a new Disadvantaged Business Enterprise (DBE) program, which sets a 25 percent annual DBE agency goal in 2010 for contracts funded out of CTA's operating budget. An amendment to the Metropolitan Transit Authority Act in 2008 requires the CTA to establish a DBE program for non-federally funded contracts effective Jan. 18, 2010.

To determine what program requirements would work best, the CTA conducted a study of past operating contract expenditures and the current number of DBE firms. As a result of this study, the CTA established narrowly tailored goals for DBE participation on a contract-by-contract basis. The 25 percent annual goal is also based on historical purchasing data, subcontracting opportunities, and the availability of DBE firms for the industry and services being provided in a specific contract.

CTA has made a number of changes to its DBE program over the last few months in an effort to increase participation.

 

View comments or post a comment on this story. (0 Comments)

More News

Sound Transit adding 5 more Brookville Equipment Corp. LRVs

The new cars will begin arriving in the third quarter of 2020 and complete delivery by the first quarter of 2021.

San Francisco rolls out first of new Siemens light rail vehicles

The trains for SFMTA include features informed by public input including a new seating configuration, new interior color schemes, and new exterior design.

STV lands 2 NY consulting contracts

Contracted by the Westchester County Department of Public Works and Transportation to develop specifications for the procurement of hybrid-electric articulated buses and was tasked by the County of Rockland Department of Public Transportation to provide technical support for its Transport of Rockland bus procurements.

Metra breaks ground on 136-year-old bridge replacement

The bridge is situated over the Fox River along the Milwaukee District West Lake in Elgin, Ill.

Japanese rail line apologizes for train leaving early

In the statement, the company noted that it hadn't actually received any complaints regarding the incident.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close