AICP Spotted
Give Us Thirty Seconds, We'll Give You The Industry
September 11, 2013
In This Issue
BUSINESS AFFAIRS
CHRYSLER PRODUCTION COMPANY ROSTER & BIDDING GUIDELINES
COMMUNITY AFFAIRS
AICP NATIONAL BOARD ELECTIONS
AICP SHOW & AICP NEXT AWARDS IN SAN FRANCISCO TO SEND OFF THE FIREFLIES
AICP LAUNCHES NEW GREEN GUIDELINES
AICP DIGITAL TO HOST TOWN HALLS ON BOTH COASTS
AICP WELCOMES NEW PARTNER PROSIGHT SPECIALTY INSURANCE
MEMBER MEETINGS IN NEW YORK & L.A.
LABORING
NEW IATSE AGREEMENT GOES INTO EFFECT OCTOBER 1ST
AICP LABOR ROUNDTABLE IN NY: SEPTEMBER 17TH
LETTER OF THE LAW
UNPAID INTERNS: ARE THEY REALLY ENTITLED TO BE PAID?
LEGISLATIVE UPDATE
AICP MAKES PRESENCE FELT AT FLORIDA FILM & ENTERTAINMENT CONFERENCE
MEMBER SERVICES
WELCOME NEW MEMBERS
SPOTTED SPONSOR

THE NoMAD HOTEL
HAPPENINGS
September 12th, 2013 - Digital Town Hall

September 18th, 2013 - AICP Show  Gallery Exhibition And Reception & AICP Next Awards in San Francisco

September 26th, 2013 - AICP Show in Austin

September 19th, 2013 - Annual Members Meeting - West

October 15th, 2013 - Oktoberfest @ Highline Stages

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BUSINESS AFFAIRS
CHRYSLER PRODUCTION COMPANY ROSTER & BIDDING GUIDELINES

AICP has received many calls and notes from members regarding an email sent by Anthony Vozza, Head of Chrysler Broadcast TV Productions/Procurement, which states that Chrysler has implemented a set of "pre-negotiated" guidelines for production companies to follow in order to work with Chrysler on broadcast TV productions. Furthermore, it states that Chrysler will not accept bids from companies that have not agreed to these terms, thus creating their "roster". Mr. Vozza also states that these guidelines are non-negotiable and will go into effect October 1, 2013.

We have seen other marketers attempt to create "preferred vendors" lists in the past; however this is the first time that a marketer has expressly stated that by joining this roster, it will not be obligated to treat any production company’s response as confidential, thus allowing their agencies and consultants to identify which companies will offer their services for these terms.

While the cover letter to the invitation to join this roster states that all of these terms reflect terms "commonly applied to Chrysler’s and many other large advertisers’ projects in the U.S. market", we believe this to be a gross overstatement and in fact, counter to how most productions operate. Some of these terms are:

  • Limitation on mark-up (25%) for all jobs with mark-up dropping to 23% for longer jobs (4 days or greater).
  • Limitation on mark-up inclusive of service-company fees for non-U.S. productions.
  • Crew fringes to be handled cost-plus with a 15% handling fee.
  • Travel below the line with a 15% handling fee.
  •  Mandatory use of Chrysler/APR vendor for transcoding footage.
  • Chrysler may designate any line cost-plus at any time.
  • All cost plus items are “cost-plus not to exceed”.

See full set of terms here.

Furthermore, Chrysler states:

  • There is no guarantee of work by joining the roster;
  • The roster is not exclusive; any production company can be added to the roster by accepting the guidelines; and
  • Chrysler may amend the guidelines at any time.

Over the years AICP has sent members numerous bulletins regarding the precedent setting dangers of individual issues, such as, putting items below the line, and "cost-plus not to exceed". These bulletins can be found here:

Cost Below the Line Overview

Above The Line Arguments

Pension & Welfare

Client Bid Specifications

Cost Plus Not to Exceed

We have seen many "programs" in the past, but make no mistake: this is a very public and aggressive attempt by Chrysler to establish a package of the lowest levels of production terms in a "non-negotiable" format, and its cost consultant, APR, to memorialize items that they have attempted to put into many of their client's guidelines and thus change the way the industry operates.

If you are asked to adhere to guidelines and participate in this or any roster program that will adversely affect your business, you should scrutinize this request closely as an important precedent-setting business decision for you, and a seminal moment for the business. As a reminder, this is an invitation for you to join this roster and thus accept this form of doing business. The decision to do so is yours.

An owner's summit to discuss this issue has been scheduled for September 19th. This meeting is for owners and senior management of AICP General Member Companies only. Attendees at this meeting should have decision-making powers within their company. For more information, please email kristinw@aicp.com.


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