1. Advertising Request for Proposals September 19, 2016 Recommendation to Award

2. Fiscal and Management Control Board 2 Draft for Discussion & Policy Purposes Only Advertising RFP: Original Goals Revenue Growth Improved Customer Experience Rapid Digital Build-out 6x expansion of digital panels (from current 90 to 640+) $25-$35 million in gross digital revenue projected by FY20

3. Fiscal and Management Control Board 3 Draft for Discussion & Policy Purposes Only Advertising RFP: Bidders Large national firm Intersection, LLC Outfront Media, Inc. Direct Media, Inc. Who they are Incumbent vendor (formerly Titan Outdoor); now a division of Alphabet National firm (formerly CBS Outdoor); large, publicly-traded company Regional firm; previously held MBTA business Sample clients CTA, NYC MTA (partial) LACMTA, WMATA, NYC MTA (partial) Providence, Baltimore, Charlotte

4. Fiscal and Management Control Board 4 Draft for Discussion & Policy Purposes Only Advertising RFP: Process: Best Value Procurement Five members from Marketing, Design and Construction, Finance, OPMI, and Real Estate Advisors: CPO, Director of Revenue, Industry Consultants Evaluation Committee & Advisors Initial Review of Proposals Clarifying Questions Best and Final Offer Scoring + Decision Proposals received and oral presentations completed in July. Committee elected to shortlist Outfront and Intersection based on their responses and reference checks. Committee sent two rounds of clarifying questions to respondents in August and September, including supplemental interview round. Committee finalized technical scoring on September 8. Completed Wednesday, September 14. Best and Final Offers (for financial proposal) were requested, and Respondents submitted by Tuesday, September 13. Financial review conducted under consistent assumptions around revenue.

5. Fiscal and Management Control Board 5 Draft for Discussion & Policy Purposes Only Advertising RFP: Outfront Media, Inc. Strong Financial Position $2.91 billion market capitalization; $1.5 billion in revenues in calendar year 2015 Successful digital installations in New York, Washington, and Los Angeles Partnerships with blue-chip technology providers and engineering support Strong Technical Expertise Strong Local Presence Already holds part of MBTA billboard contract and employs local sales staff

6. Fiscal and Management Control Board 6 Draft for Discussion & Policy Purposes Only Advertising RFP: A Transformational Contract for the MBTA According to a leading transit consultant, the MBTA is receiving one of the highest known advertising revenue shares of any peer US transit agency, while paying no capital costs to build a state-of-the-art digital display system of 700 screens. 63%70% FY16 Revenue Share New Contract Revenue Share

7. Fiscal and Management Control Board 7 Draft for Discussion & Policy Purposes Only Advertising RFP: Revenue Impact on Existing Inventory FY16FY17 Under Current Contract Under New Contract Under Current Contract Under New Contract Net Billings $31.1 million $32.6 million MBTA % Share 63%70%65%70% Net Revenue to MBTA $19.6 million $21.8 million$21.1 million$22.8 million Difference+10% (+$3.9 million)

8. Fiscal and Management Control Board 8 Draft for Discussion & Policy Purposes Only Advertising RFP: Projected Net Revenue to MBTA with New Contract: Projected 81% Total Growth Comparing FY16 with FY21

9. Fiscal and Management Control Board 9 Draft for Discussion & Policy Purposes Only Advertising RFP: Rollout Plan 1.Dedicated Project Manager on MBTA side Previous digital rollout efforts slowed by internal barriers Outfront’s proposal will fund two FTEs on the MBTA side to speed placement progress 2.AECOM serving as Implementation Consultant Knows MBTA system well; frequent partner with D&C Engineering support to ensure rapid placement 3.Proposed Approach to Panel Placement Begin to identify which sites go in which batches, and when Plan placement in rolling batches of 10-20 panels Identify locations and do site prep Complete placement of one batch, while concurrently scoping work for another batch

10. Fiscal and Management Control Board 10 Draft for Discussion & Policy Purposes Only Advertising RFP: Contract Terms Five-year initial term, with two five-year extensions at the MBTA’s discretion Revenue share of 70% to MBTA Commitment to place 700 new digital displays at Outfront’s expense, including two FTE headcount on MBTA side to facilitate Full integration with MBTA software and content management system Full audit access and detailed reporting requirements Full compliance with MBTA’s standard terms and conditions

11. Fiscal and Management Control Board 11 Draft for Discussion & Policy Purposes Only Advertising RFP: Staff Recommendation to the FMCB Award of a new Systemwide Advertising Concession; Contract No. FC686 in November 2016, with Outfront Media Inc. of New York, NY, for a duration of five years, with two subsequent five-year options to extend at the MBTA’s discretion.