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

Proposed downtown L.A. streetcar gets big boost

Supporters say ridership on the 3.8-mile service could reach 6,000 people per day.

Wabtec completes majority ownership of Faively Transport

The combination creates one of the world's largest public rail equipment companies, with revenues of about $4.2 billion and a presence in all key transit and freight rail markets worldwide.

Bombardier plant hosts royal visit from HRH The Duke of Cambridge

During his visit, His Royal Highness was given a site tour and inspected the company's assembly of Elizabeth line trains, where he met manufacturing, welding and painting apprentices.

Mich. State railway management certificate program updates offerings

The updated program treats the railway as a system, covering freight supply chain integration and efficient/value-added transportation of passengers.

WMATA proposes cutting late night rail service

Additionally, the earliest trains on Sunday would start at 8 a.m., while the start times for trains on weekdays and Saturdays would remain at 5 a.m. and 8 a.m., respectively.

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