Bidding & Proposals Policy

(Based on Report Dated 12/01/97)

1. Introduction

  1. Bidding falls into two categories, the award of concessions (i.e. beverage, merchandise, Pride Guide etc.) and the supply of equipment and services.
  2. As a community organization organizing an event perceived as being in public ownership it is vital that a competitive bid process take place and that this be seen to be fair and open. It is, therefore, important that we clarify the rules and procedures for the award of concessions and contracts. It is also important that we heighten public awareness of this process by advertising and involving the queer business community.

2. Equipment & Services

It is obvious that the majority of equipment supplied is in connection with the Celebration. It must be the case that wherever possible all equipment and services go out to competitive bid at regular intervals. There may be certain areas where competitive bid is impossible due to the unique nature of the service being provided. It should be the case that unless the Board decides otherwise that no contract should extend for more than a single Parade Cycle. The award of contracts for the supply of equipment and services should lie with the Board working within established budgets.

3. Concessions

3.1. General

  1. Concessions confer upon the recipient the right to commercially exploit a retail and/or publishing opportunity.
  2. Concessions currently “available” and the frequency with which I suggest these are renewed are as follows:
    • Magazine: 200
    • Pride Guide: Annually
    • Bar Operator: Annually going to Bi-annually
    • Beverage: Annually
    • Merchandise: Annually
  3. I think that it also makes sense for no one person or corporation to be awarded more than one concession. The reason for this, apart from the time-honored principle of not putting all of one’s eggs in one basket, is developing a policy of “participation”. We have, I would suggest, a duty and an interest in seeing that the butter is as evenly spread around the queer business community as possible.

4. Frequency of Bid

One view is that because of the nature of the event and the annual board elections that it is logical to review all concessions annually. In the main I think that this is a good principle provided that room for flexibility remains. Many business people will feel reluctant to commit themselves for one year only – most business plans take 3 years to reach fruition and it may well be that in terms of developing a service or product that in year one the operator may not budget to make any money at all. Certainly, there would have to be exceptional circumstances for a new bidder to be awarded more than a one year deal first time around.

5. The Bid Process & Timetable

  1. The bid process should, in each case, commence with the public advertising of that fact. The advertisement should appear in at least one suitable queer publication and elsewhere as required. The advertisement should be accompanied by a press release. Any advertisement should include:
    1. Title and nature of the concession giving brief information as appropriate.
    2. Date of the Event.
    3. Our address, telephone number, fax number and email address. Indication of asking price (if appropriate).
    4. Closing date for the receipt of completed bids.
    5. Our corporate logo.
    6. Statement that the advertisement is subject to contract and that we reserve the right to re-advertise or not, as we see fit, if the initial bid process fails to produce an acceptable bid.
  2. Upon receiving a request, bid information will be mailed to the applicant consisting of:
    1. Cover Letter
    2. Information for Bidders: This will consist of a brief history of the event and summarize the expectations of SFLGBTPCC.
    3. Bid Form: This will be a standardized form which the applicant will complete when making their bid.
    4. Certificate as to Non-Collusive Bidding: A certificate signed by the bidder certifying that they have not colluded with others (i.e. “fixed it”) when putting their bid together.
    5. Checklist: This will be a checklist for bidders to ensure that their bid is valid.
    6. Return Envelope: All bids need to be submitted to the offices of our attorneys.
    7. A draft set of documents for the Pride Guide, which may be adapted, appear in the appendix.
    8. It is important that the bid process be seen to be above board. Completed bids should be sent to an address other than ours to instill confidence in the bid process. Lawyers have a reputation for higher ethical standards and it makes sense for our attorneys to receive the completed bids on our behalf. After the closing date these will be collected by the Executive Director who will then open them in the presence of the CFO and a Board member. It will be the responsibility of the Executive Director to report to the Board Meeting next following the closing date on the contents of the bid(s) received.
    9. SFLGBTPCC must then apply criteria in awarding the concessions. I suggest that the criteria to be taken into account in order of importance be:
      1. Price
      2. Financial stability of the applicant.
      3. Ability of the applicant to fulfill the terms of the contract.
      4. Quality of expected service delivery.
      5. Previous record of dealings with SFLGBTPCC. Community profile – i.e. the extent to which the bidder has assisted and/or benefited the LGBT community.
      6. References. (It is to be noted that references should be requested but that greater reliance should be placed upon production of audited accounts and credit checks.)
      7. GGBA membership.
      8. All concessions must be awarded by the Board and the right to publicize the amount offered by all bidders reserved.
      9. Subject to existing contracts, all concessions should be awarded by October 31st in any year and require a minimum up front payment. For 1998, all contracts should be awarded by January 31st.

6. Lists

I would not advise exclusive bid lists. What I would advise is that there is a bid list for each concession, entry to which is free and without restriction, unless in the opinion of the Board entry to the bid list of any person and/or corporation would be in some way prejudicial to the interests of the organization.

7. Finance

I suggest that we have in mind the following price tags for next year’s concessions:

Concession Price ($)
Magazine 10,000
Pride Guide 5,000
Bar Operator 90,000
Beverages 10,000
Merchandise 5,000
Total 120,000

In effect, the above forecast will reduce our expenses by $45,000 and increase our income $45,000, thereby having a $90,000 net positive effect on the balance sheet.

8. Method

I think that the bid process is to be preferred to, say, auction where the attendees would probably all be far too mistrustful of each other to join in with enthusiasm. In the event that the bids received fall short of expectations, then a negotiated deal can be done with an interested party.

9. Merchandise

Merchandise is a special case.

In order to go out to competitive bid it is better to do so with a history of the concession and statistics proving that it has worked. This is not yet the case with merchandise. I would therefore recommend that for 1998 we seek a negotiated deal with merchandise and that this concession go out to competitive bid for 1999 onward.

10. Golden Gate Business Association (GGBA)

It behooves SFLGBT to be a member of the GGBA and to seek to engage the GGBA as a partner in its business affairs. A notice should be sent to the GGBA of business opportunities as they arise.

11. Interface with Fundraising & Sponsorship

The award of concessions does indeed raise funds for the organization but this relates to commercial activity and should not be confused with fundraising in its traditional sense. There is, however, a need for a strong interface as some areas of the organization’s service contracts may be linked to sponsorship. Also, it is the case that with beverage, deals are likely to be sponsorship led and so the competitive bid process should be subsidiary to the sponsorship process in relation to beverage.

12. Non-Discrimination

In all our dealings where the substance of a contract is worth more than $10,000, I think we are both entitled to and have a duty to inquire as to our prospective business partners whether they have non-discriminatory work policies.

13. Regulation and Review

While the Board will decide on the award of concessions, the bid process will be managed and regulated by the Executive Director. Review will occur on an annual basis.

San Francisco Pride Celebration Committee, Inc.

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