(Trinidad Guardian) Majority state-owned Telecommunications Services of T&T (TSTT) is set to award a multi-million dollar advertising contract to Ross Advertising Ltd, the advertising agency of People’s Partnership, owned by Ernie Ross. But concern has been expressed about how Ross, who’s never handled an advertising contract for TSTT or in telecommunications before, was able to make the cut in six months after he by-passed tendering when the contract was first announced in November 2010.
This time, though, Ross passed the grade after the contract was re-structured and re-tendered last month. Lonsdale—who worked for TSTT for 20 years—was dropped as it didn’t meet the new evaluation criteria. The Sunday Guardian learnt that a TSTT team has just completed evaluations for the new tender last week and four companies were shortlisted—Ross Advertising Ltd, Valdez and Torry, McCann Erickson and CMB. Of the shortlisted four, the Sunday Guardian was informed that Ross is in the running to secure the Media Purchasing and Management Services, the most lucrative, from the telecommunications company.
Proposes six per cent commission
Ross was able to triumph because he proposed a six per cent commission as opposed to 15 per cent of the other agencies. The contract, once approved by TSTT’s board, should be awarded next week. This wasn’t the case six months ago. Last November, TSTT put out Tender Notices for Advertising and Marketing services. After an exhaustive one-month evaluation, which demanded that companies prove they have the infrastructure and resources to support an account of this magnitude, three companies were selected: two TSTT stalwarts McCann Erickson and Lonsdale and newcomer, CMB.
The Sunday Guardian understands the evaluation committee’s decision was subsequently forwarded to the TSTT board. However, unlike the two or three year contracts of the past, the board agreed to the agencies being offered six-month contracts. The “why” and “on what merit” questions lie with the TSTT board chaired by former commissioner of police, Everald Snaggs and include vice-chairman Ravi Ratiram, Brent Dumas, Randy Ramtahal and Cleveland Thomas. Ramtahal is Head of the Tenders Committee.
Breaking up the contract
A decision was taken to re-tender for the almost $50 million contract and the terms of the Request for Proposal’s (RFP) were changed. “This big account, the biggest in the local advertising world, is back up for tender again, after only several months instead of the stipulated three years. And this time, Ernie is bidding for it,” a source explained.
“But how can Ernie bid for this account when his agency is so small? This is not a short-term political hype campaign for the UNC but rather a day-to-day intense multiple product, multiple brand, multiple media client in a highly competitive environment. So, how come his is bidding even as larger agencies have refrained? “Simple, TSTT has changed the terms of the tender, they have broken the account up into smaller parts,” the source explained. Instead of only offering “Full Advertising Agency Services,” as has been the traditional, the RFP was divided into three options—Full Advertising Agency Services, Media Purchasing and Management Services and Advertising, Promotions and Marketing Services. In addition, some of the requirements in the Gate Criteria of the first RFP—such as companies having Advertising Agencies Association (AAA) status were dropped.
“Our requirements include, but are not limited to Advertising and Promotions (A&P) Strategy; A&P executions on TV, print, radio, direct mail, video/film, still photography, digital, Out-of-Home, Point of Sale media/materials; media planning/buyer; event management; access to industry information and market research locally, regionally and internationally; conduct/facilitate market research and media monitoring,” was stated in TSTT’s RFP. “There was no way Ernie, with a staff of 12 people, which was the minimum requirement in the contract, could have handled such a big contract. When the contract was broken up, ‘he was able to get a piece of the pie,’” the Sunday Guardian was told.
Industry sources have expressed surprise at the re-tendering, telling the Sunday Guardian that it’s not normal industry practice, especially for a company as big as TSTT. Further, they’ve also expressed doubt that Ernie’s small outfit can handle the demands of a state contract coupled with his workload which include clients such as the Housing Development Corporation and MovieTowne. TSTT sources have explained that breaking up a contract like that presented a challenge as TSTT has many facets and many brands—the bmobile brand, the blink brand and TSTT.
The TSTT board
Chairman: Former commissioner of police, Everald Snaggs
Vice-chairman: Ravi Ratiram
Other members: Brent Dumas, Randy Ramtahal and Cleveland Thomas.
Ramtahal is Head of the Tenders Committee.
Ross: I tendered like others
Contacted for comment, Ross told the Sunday Guardian that: “I have no comment to make. I tendered like all other agencies on the account. We pitched like every other company on a legitimate right.” Despite his small outfit, Ross recently secured another lucrative advertising contract—that of state carrier, Caribbean Airlines (CAL). He was selected in January.
Despite securing CAL’s contract, the Sunday Guardian learnt that one objection raised about Ernie’s selection was that Ross had no experience in branding. Further, his contract was supplemented by the retention of a consultant, Russell Price. The Sunday Guardian understands that Price is contracted as one of CAL’s strategic thinkers. Ross handled the People’s Partnership elections campaign in the run-up to general election in May 2010.
He was credited with contracting US political strategist Bernard Campbell in pursuit of a more aggressive political campaign and for writing all feature addresses of the UNC political leader, now Prime Minister, Kamla Persad-Bissessar. Subsequently, his agency took full responsibility for the misinterpretation of promise of $3,000 for Senior Citizens Grant, an issue which the Opposition took the Partnership to task. A $3,000 pension was subsequently approved by Parliament for people 65 and over. Ross is also Guyana’s Honorary Counsel to Trinidad.
Salandy confirms re-tendering
Camille Salandy, Head of Public Relations & External Affairs at TSTT confirmed that a re-tendering was conducted. “The company did, in May of this year, re-issue another public invitation to tender after submissions from a previously conducted tender in 2010 did not fully satisfy one of the company’s primary objectives which was to derive cost savings in its advertising spend. As a result of the first tender, the company, as per its right, decided to only award a six-month interim contract, while it set about to restructure the way the contract should be awarded so as to maximise the opportunity for cost savings,” she told the Sunday Guardian.
Questioned whether the company has broken up the advertising contract into smaller accounts, she responded: “The current six-month contract is not broken up, but the structure of the new tender which will be awarded once the process is complete, is done in such a way as to give the company the latitude to consider bids from any agency either whole or in part for any portion of the account, as they choose to bid. “With the economic pressures being faced by all, TSTT must seek, as with any other organisation, to find means to lower its operating costs. With the new structure of the tender this will give the company more options for adding efficiency and minimising spending,” she said.
