VIRGIN ISLANDS HOUSING FINANCE AUTHORITYREQUEST FOR BOARD ACTION

1. SUBJECT: Request for the Virgin Islands Housing Finance Authority (VIHFA) to enter intonegotiations and execute a contract with The Strategy Group VI to provide public relations andmarketing communication services across a wide variety of platforms to further amplify the VIHFACDBG-DR initiatives with hits administration for US Department of Housing and Urban Development.

2. REQUESTOR’S NA

3. SIGNATURE

4. JUSTIFICATION: This request is made in accordance with the VIHFA’s Procurement Policy, Section15 which requires Board approval for any contracts over $50,000.

5. PERMJTS REQUIRED/STATUS: None.

6. COST TO THE AUTHORITY: Not to Exceed $2, 1,03,522

7. NON-FINANCIAL IMPACT ON THE AUTHORITY, ITS BOARD, ETC.: Approval of this actionwilt provide communication support, program outreach, strategic communication and media services ofboth the CDBG-DR (a) Homeowner Rehabilitation and Reconstruction Program and (b) RentalRehabilitation and Reconstruction Program.

8. COMPLIANCE REQUIREMENTS: Title 29 Ch. 16 Sec. 940 (b)(4) of the V.1. Code allows theVIHFA “to enter into contracts and execute all instruments necessary or advisable in the exercise of thepowers hereby conferred”.

9. POLICY AND/OR REGULATORY CITATION(S): The VIHFA Procurement Policy adopted May20, 2019.

10. BUDGET AUTHORITY: Not to Exceed S2,103,522.00

11. ESTINIATED COMYLETION DATE: The initial term of the contract is three (3) years with anoption to renew for an additional two (2) year term.

12. EXECUTIVE DIRECTOR’S RECOMMENDATiON: APPROVEThe Strategy Group will be the Authority’s Public Relations and Marketing Communication firm underthe CDBG-DR housing programs. The Strategy Group is needed to provide marketing communicationsupport, program outreach, strategic communication and media services.

13. ACTION TAKEN: APPROVED: — DISAPPROVED: — SUSPENDED:

___

TABLED:

COMI4ENTS: The Authority requests your favorable approval on this request to further facilitate thecontinual operations of the CDBD-DR program as Federal Notice 6109-N-02 requires states and localgovernments to analyze disaster risks through the use of data and meaningful community engagement;Grantees are also encouraged to seek and respond to public comment in the administration of the CDBG-DRfunds, especially for any amendment; thus, a firm to handle the efficient management and accuratedissemination and assist the Authority with the public transparency of information regarding the CDBG-DR andCDBG-MIT program.

DATE OF ACTION:

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VIRGIN ISLANDS HOUSING FINANCE AUTHORITYCommunity Development Block Grant — Disaster Recovery

3438 Kronprindsens Cede’ GERS Complex P Floor suite 4St. Thomas U. S. Virgin islands 008024447

Telephone (340) 777-4432 ‘Fax (340) 775-7913

MEMORANDUM

TO: Daryl GriffithExecutive Director

FROM: Keva MullerCommittee Chairperson

DATE: July 16, 2020

SUBJECT: Evaluation/Selection; Public Relations & Marketing ServicesRFP-004-2020-DR-STT/STX

The Virgin Islands Housing Finance Authority (VIHFA) issued RFP.004-2019-DR-STT/STX seeking aqualified and licensed firm or individuals (“Respondents”) to provide a Public Relations and

Marketing Communication services in connection with its administration of U.S. Department of

Housing and Urban Development (“HUD”) Community Development Block Grant - DisasterRecovery. The RFP-004-2020-DR-STT/STX was issued pursuant to the VIHFA’s ProcurementPolicy, Competitive Proposals, Section B, Form of Solicitation.

Background:

The following four (4) entities submitted proposals:

• Emergent Methods

• Posey Marketing & Associates

• The Strategy Group VI

• NT Media Productions

The Bid Evaluation Committee (BEC) was comprised of the following five (5) participants: RochelleBenjamin, CDBG-DR Economic Revitalization Senior Manager; Shakema Jacobs, CDBG-DRCompliance & Monitoring Specialist; Condon John, VIHFA Public Relations Officer; Leslie Maduro

Dickenson, CDBG-DR Senior Policy Manager; and Keva Muller, CDBG-DR Communications

Manager. The BEC convened on Wednesday, May 20, 2020 to interview respondents and thenagain on Thursday, May 21, 2020 to review the submitted proposals.

tz&1&.46&SSc. Thomas Office: 3202 Demarara PlazaS Suite 200’ Si. Thomas, USVI 0080245447 Tclcplione: (340) 777-4432

Si. Croix Office: I 00 Lagoon Complex Suiie 4. Frederiksieci, VI 00840-3912 Telephone: (340) 772-4432

Evaluation MemorandumPublic Relations & Marketing Sen’icesMoy2.1, 2020Poor 12

Evaluation Methodology:

Section 17.0 “Selection Process”, RFP-004-2020-DR-STT/STX, provided for the followingevaluation factors and scoring:

Evaluation Factors Total Points

TechnicalTechnical Qualifications and Experience 25

Public Relations & Marketing Communications25Capabilities

Approach and Methodology 20

Interview/Presentation 10Pricin!

Cost Proposal 20

Total: 100

The Technical Criteria assessment included a review of the respondent’s documentation todetermine whether the company is duly organized, validly existing, qualified and licensed toconduct business. Qualifications and Experience were evaluated based on the respondent’scredentials, work history and references. The Approach and Methodology were evaluated basedon the respondent’s responses to the outlined scope of work and overall management ofprojected deliverables, schedule delivery and overall impression.

Evaluation Review:Each SEC participant independently evaluated each proposal based on the technical criteria andresponsiveness to the RFP. The maximum obtainable points for each bidder was 70 points forthe technical criteria and 20 points for the cost submitted by the top bidders. A third criteria witha value of 10 maximum points was added to include an interview/presentation by the four (4)respondents and a questions and answer session. The scores from each SEC participant wereinputted and the total points were divided by 5 to obtain an overall average.’ The final technicalscores of the four (4) submitted proposers were as follows:

l The Evaluator’s Sheet will illustrate decimal point values. Scores were rounded to the nearest whole number.

B. EXECUTIVE SUMMARYSUMMARY OF TSG QuALIFIcATIONsThe Strategy Group (TSG) is exactly what the Virgin Islands Housing Finance Authority (VIHFA) islooking for; a qualified and licensed firm to provide communications support, program outreach,strategic communications and media services to the general public. We are a highly capable teamof Virgin Islanders with a pulse of the people. Our experience includes developing strategies,conducting stakeholder research, organizing community engagement events, knocking on doors,leveraging relationships, and mobilizing community leaders. We also have a thoroughunderstanding of all the COBG-OR projects through our more than 15 months of portfoliomanagement support to the Office of Disaster Recovery (ODR).

Our Public Relations and Marketing Communications (PR&M) Team, underthe creative leadershipof Brad Nugent, is 100% locally based. We can hit the ground running and commence theseservices within 48 hours of issuance of a contract and operate at full capacity within seven (7)days. This start time far exceeds what is outlined in the request for proposal, 7 and 15 day5,respectively.

The RFP was clear in defining the minimum qualifications for all respondents. Lt is our summationthat our team meets the qualifications outlined in the RFP. Collectively, between the key TSGpersonnel and our extended team, we bring more than a century of PR&M experience.Recognizing that PR&M extends way beyond traditional pamphlets and newsletters, TSG’s teamincludes one of the territory’s leading videographers and audio/video/digital campaign entitiesand is also complemented with Spanish and Creole translators and American Sign Languageinterpreters who will be called upon as needed.

We are always focused on getting the right message out to the right people at the right timeusing the right medium.

UNDERSTANDING OF THE SCOPE OF WORKPublic Relations is a unique and imaginative approach to maintaining a favorable public image.VIHFA’s stated mission is to “increase access to housing and community developmentopportunities by developing innovative programs and projects.” The details of the scope of workclearly set forth V(HFA’s understanding that it is an imperative that the agency needs to establishand maintain an intimate relationship with its constituents through the four tasks outlined —

general communications support services, program outreach support, strategic communicationssupport and internet/social media/digital marketing.

Of equal importance, HUD has emphasized that grantees of CDBG-DR funding seek to developinnovative community engagement strategies. To accomplish this, TSG and VIHFA’s integratedteam will work collaboratively to craft a comprehensive strategy that will exceed HUD’srequirements. It will provide an unprecedented opportunity for key stakeholders, which includea diverse array of resident groups and program beneficiaries, to have an active role in communityoutreach. This strategy is detailed in our Approach and Methodology Section M.d.

hi. LITIGATION STATEMENTThe Strategy Group VI, LLC confirms that we have not filed any bankruptcy or insolvencyproceedings in the last year, nor have we received any such proceedings from our clients. Weconfirm we have no pending Securities Exchange Commission investigations, nor any open,

strategroupvI.cum 6

pendinL unresolved litigations involving a customer mailer in which we are the plaintiff ordefendant.

iv. ABILITY TO MEET OVERALL REQUIREMENTS AND TIMEFRAMESTSG, as the prime contractor, confirms that we can meet all VIHFA requirements as set forth inthe RFP We have the tools and processes to continue to scale resources as needed with skilledstaff and a cadre of on-call subject matter experts (SMEs).

Our ability to meet requirements and timeframes is complemented by incorporating anexperienced project manager from our business solutions division who will ensure that alldeliverables are presented within the agreed upon timeframes.

v. BUSINESS LICENSE CONFIRMATIONTSG confirms that it has an active business license in the LJSVI for The Strategy Group VI, LLC Acopy of the business license has been provided in Section F.

Vi. CONFIRMATION OF NO SUBSTANDARD WORK W.THIN FIvE YEARSTSG confirms that we have no record of any substandard work within the past five years.

vU. RESPONSIBILITY ACKNOWLEDGEMENTT5G confirms our complete respon5ibility for the entire contract, including payment of allapplicable charges resulting from the contract should it be awarded. We understand thatmanaging this engagement requires continuity of business operations and that subcontractorsmust be managed effectively and paid on time. We are prepared to assume the responsibility ofcosts related to maintaining and executing the lifecycle of contracts.

We acknowledge that it is imperative to conserve recovery funds for the delivery of projects andprograms. Therefore, we will continue to adopt efficiencies to manage costs. In summary, we willbe the very best stewards of the government’s dollars.

viii. FINANCIAL RESOURCES

TSG confirms that we have the financial resources to perform the work requested in the RFP. TSGhas zero debt and a record of accomplishments based on true partnership with our clients. As afuture good-faith partner with VIHFA and as a growing local company, we would anticipate timelypayments from the agency to ensure sustainable continuity of services.

ix. WRITTEN AGREEMENT WITH SUBCONTRACTORSTSG maintains a network of partners under subcontractor agreements. Additionally, TSG hasentered into teaming agreements (TAs) with each partner noted in this proposal. Copies of thesigned TAs can be provided to VIHFA upon request. Each of the subcontractors proposed on thisproject has submitted a statement affirming that they have read and understood the RFP and finalversion of the proposal submitted by 15G. Those statements can be provided to VIHFA uponrequest.

x. FINANCIAL CAPACITY STATEMENT

TSG will be executing this contract as the Prime. TSG is a financially stable company and cansupport the execution of this project. We have provided our financial statements, which includea balance sheet and income statement for 2019 and Qi 2020 in Appendix D.

stntnYvoupvIssln 7

xi. STATEMENT OF NO CRIMINAL CONVICTIONS, ACTIVE INVESTIGATIONS OR PROSECUTIONSTSG confirms that our firm, officers, directors, and management personnel have no criminalconvictions in the past 10 years, nor are we involved in active investigations. We also confirm thatour teaming partners and their officers, directors, and management personnel have no criminalconvictions in the past 10 years. Our proposed team has been fully vetted and carefully selectedfor their qualifications, experience, and ability to deliver the requested scope in accordance withall territorial and federal laws and regulations.

xü - STATEMENT OF CIVIL LAWSUITS WITHIN THE PAST FIVE YEARSTSG is not currently a party to, nor has it ever been a party to any claim, controversy, legal dispute,litigation, bankruptcy, planned office closures, Impending merger or other legal matter where thebasis of the claim involves the same or similar services as to those referenced in this Request forProposal. We confirm that we have no active litigation and are not a party to any lawsuit withclaims exceeding $iooK.

Xiii. OTHER RELEVANT INFORMATIONOur prior experience with VIHFA and other agencies and departments within the Government ofthe Virgin Islands reveals that having service providers that “just check the boxes” is not enough.Inherent in the TSG philosophy is to always seize an opportunity to raise the bar and to think“value add.”

GIven the high complexity of the scope of work and the integrated nature of the deliverablesunder specific HUD guidelines, project management discipline is integral to the overall success ofthe project. To this end, it is our intention to include an experienced project manager on theengagement team to ensure timely and organized delivery of all tasks.

Connecting with the community is paramount to the success of any PR&M initiative. Throughoutthe RFP, it is evident that VIHFA recognizes the importance of building relationships in thecommunity. TSG understands that objective and, to that end, we have included an event planningcomponent in our proposal.

stntegygrcupvlsum a

Evaluation MemorandumPublic Relations & Marketing ServicesMay 21, 2020Paqe 13

Technical EvaluationPoints

Ranking RespondentEarned

2 Emergent Methods 564 NT Media ProductIons 433 Posey Marketing & Associates 541 The Strategy Group VI 67

The BEC interviewed the four (4) Respondent’s on Wednesday, May 20, 2020 and evaluated theirpresentation based on evaluation factors represented on the evaluation methodology form(technical qualifications and experience; public relations and marketing communicationscapabilities; and approach and methodology). In addition, the respondents were interviewed ontheir integrated marketing communications methods, knowledge of industry best practices,ability to generate media interest development of key messages for programs and crisiscommunication planning.

The maximum points available on the Cost component was 20 points. The lowest bidder receiveda total of 20 points with the remaining points allocated based on this formula: CS = (LCP/PC2O)+ 5. Thus, the maximum points the five (5) respondents could receive was 100 points (based onboth the technical, interview, and pricing components). The final cost and technical scores of thetop five submitted proposers are as follows:

Cost and Technical EvaluationTechnical Interview Cost Total

Ranking Respondent Points Points Points PointsEarned Earned Earned Earned

2 Emergent Methods 56 8 10 743 NT Media Productions - 43 7 20 704 Posey Marketing & Associates 54 5 4 631 The Strategy Group VI 67 9 15 91

Selection and Recommendation:

The BEC reconvened on Thursday, May 21, 2020 to review and discuss the additional costproposal information submitted. The committee had previously requested that the respondentssubmit an absolute figure for the total cost of their proposals over the course of three (3) years.

Evaluation MemorandumPublic Relations & Morketing ServicesMay 21, 2020P a g e 14

NT Media Productions came in at the lowest cost and the Strategy Group second lowest. NTMedia’s presentation was rooted in radio and guerrilla advertising featuring jingles and billboardsituated in high trafficked areas which was considered insufficient for the full-scale publicrelations campaign required for the disaster recovery programs The Strategy Group provided adetailed strategic communication, public relations and marketing plan in their proposal. Bothcompanies are locally owned and operated.

A reference check was conducted, and the Strategy Group received outstandingrecommendations for their public relations and marketing support, work and service from formerclients. In addition, when we interviewed Emergent Methods, we found that although they wereknowledgeable about disaster recovery efforts their presentation seems to include elements ofwhat Home, LLP is currently doing. Mentions of housing recovery programs and how to marketthose were highlighted. The BEC felt that the company did not have much situational knowledgeof the impact the hurricanes had on the territory to effectively execute a campaign targeted tothe Territory’s residents. We were somewhat concerned that they would undertake this projectlike their other projects and implement programs rather communication strategies. Emergentalso came in on the high end in overall co5t. lsstly Po5ey, Marketing & Associates rated lowestfor the cost evaluation with the highest bid of all four. Posey, with the current and directexperience working with VIHFA delivered a mediocre presentation that lacked details on a planof action and communication strategy. Posey knows a great deal about the CDSG-DR grant;however, her presentation simply did not reflect that.

Cost Analysis:

Evaluation of the Cost Proposal compared The Strategy Group’s proposed cast to the costestimate prepared by CDBG-DR Financial Analyst Celia Francis. The cost estimate was establishedby compiling data relating to average salaries for public relations professionals as reflected onthe websites PayScale, Glassdoor and Neuvoo. Averages for media services over the course of ayear were estimated based on media buys procured locally in the past. Cost estimates for officespace was based on the market rates for commercial spaces in the Territory. The cost estimatedeveloped for this Marketing Communications and Public Relations RFP came in at $1.1 millionfurS years. The Strategy Group’s proposal is $2.1 million for three years. NT Media was the lowestresponsive bidder with a $1.5 million proposal. The Strategy Group would rate second lowestbidder with a $2.1 million proposal. Emergent Methods and Posey Marketing & Associatesresponded with totals of $3.2 million and $8.2 million, respectively.

Based upon the Technical, Interview and Cost Evaluation evaluations for the four (4) submittedproposals, the SEC hereby recommends that The Strategy Group VI be selected for the PublicRelations and Marketing Communications Services for VIHFA’s CDBG-DR program.

The BEC determined that The Strategy Group’s proposed cost was reasonable in comparison tothe cost estimate of $1.1 million provided by the financial analyst because TSG came in second

Evaluation MemorandumPublic Relations & Marketing ServicesMay 21, 2020Page (5

lowest in cost, the estimated cost of media services was inaccurate and underestimated (asfurther explained below), and TSG’s proposal provided a full scope of public relations andmarketing communications services that was verified and highly recommended by current andformer clients.

VIHFA’s cDst estimate underestimated the costs for media services over a three-year period,including production costs and market rates for radio, television and print advertisements.Additionally, the cost estimate reflected rates for 3 -12 months when it should have beenupwards of two and a half to three year’s worth of advertising buys and promotional andproduction costs.

Consequently, a three-year contract for $2 million is cost reasonable.

Enclosures

Bid Evaluation Committee Signatures:

By signing this memo, I certify I have read and agree with its contents in full.

Rochelle Benjamin

_______________________________

Date:

_______

Shakema Jacobs

_______________________________

Date:

_______

Condon John

_______________________________

Date:

_______

Leslie Maduro Dickenson_______________________________ Date:

_______

Keva ft Muller_______________________________ Date: May 28. 2020

Legal Counsel

Evaluation MemorandumPublic Relations & Marketing ServicesMay 21, 2020Page /6

Denise Rhymer

_______________________________

Date:

Executive Approval

Daryl Griffith:

Approved:

___________________________

•f_v

Disapproved:

rJU Date:

Date:

‘/oen

Evaluation MemorandumPublic Relations & Marketing ServIcesMay21, 2020I’ ‘ IS

compared to the other two companies’ proposals—and provided a lull scope of public relationsand marketing communications services that was verified by current and former clients. TSGdidn’t have an expense for office space, however, the company outlined its plans to saturate themedia which absorbed a lot of the costs. With this and knowledge of a costly media market, athree-year $2 million proposal is not likely unreasonable.

Enclosures

Bid Lualuatlon Committee Signatures:

Shakema Jacobs

Condon John

____________

Date: .28

Date: May 28, 2020

Date:-

Leslie Maduro DickensoP”4-t4F!111’ c4_,J4jnh14

Keva D. MulIeç, —fc;ua_ I”lL?_eaak

• Date: z%

Date: May 28. 2020

Legal Counsel

Denise RhymerDate: (isJo

Executive ADprovai

Rochelle Benjamin

I have read and agree with its contents in full.

(-I

Daryl Griffith:

Evaluation MemorandumPublic Relations & Mafketlng ServicesMay21, 2020Page 16

Approved:

______________________

Date: 7

Disapproved:Date: