Why+Pittsburgh+Opera+May+Be+Honoring+Corbett

= PA Lottery terminates contract with Brunner, stays with MARC = = MARC CEO Michele Fabrizi is the Chair of the Board for the Pittsburgh Opera = =By Patty Tascarella= =Published by the Pittsburgh Business Times= =4/18/12= = = = = = = =The Pennsylvania Lottery account is staying with [|MARC USA] for one more year.= =[|Brunner Inc.’s]five-year contract has been terminated, the Pennsylvania Department of Revenue, which oversees the Lottery, confirmed.= =“I’m extremely disappointed: One day, you’re told you have a $185 million contract for five years and a short time later you’re notified that you do not,” Brunner CEO [|Michael Brunner] said. “We had countless decisions made based on that. Obviously, there were hiring decisions – we’ve had people move to Pittsburgh, we have recruiters’ fees. We’re disappointed and a bit stunned.”= =Brunner said he was informed of the revenue department's decision last Thursday. His agency was supposed to take over the account April 16 after a month of transitioning the account from MARC. The account is valued at $37 million annually. MARC has handled the account since 2002.= =MARC CEO [|Michele Fabrizi] issued the following statement: “MARC USA is thrilled to continue our work with the Pennsylvania Lottery to benefit older Pennsylvanians. We look forward to helping the Lottery to achieve the kind of record-breaking results it has enjoyed since our partnership began in 2002.”= =Lottery spokeswoman [|Allison Roberts] said the decision announced in early April by the governor’s office to explore procuring a private manager for the Pennsylvania Lottery prompted the revenue department to extend MARC’s existing contract for one year “in lieu of rebidding immediately” while allowing for continuity through the exploratory process.= =The state officially announced last month that Brunner Inc. had been awarded a five-year contract. MARC is Pittsburgh's largest advertising agency as ranked by 2010 revenue; Brunner is second. They, along with Tierney, Philadelphia, competed to win the account last fall.= =“The department believes it’s in the best interest of the Commonwealth to extend the lottery advertising services contract with [|MARC USA] **[|MARC USA]** Latest from The Business Journals [|MARC USA hires Boston execs][|Pa. Lottery account leaves Pittsburgh advertising community in dismay][|Brunner experiences long odds of winning lottery] [|Follow this company] ,” Roberts said. “Brunner will be fairly compensated in accordance with the contract terms for work performed for the lottery between March 19 and April 12, 2012.”= =MARC had filed an appeal in January over aspects of the RFP project.= =“The department maintains that MARC USA’s lawsuit and subsequent protest challenging the procurement process are without merit,” Roberts said. “Subsequent review of the procurement, which involves many steps and various Commonwealth agencies, did uncover a few potential issues regarding procedure.”= =She would not identify those issues.= =“For this reason, the Department of Revenue, having consulted with the Department of General Services and Office of General Counsel, that it’s in the best interest of the Commonwealth to terminate the advertising services contract with Brunner,” Roberts said. “Brunner complied with the requirements of the procurement process and was determined, in accordance with the requirements of the RFP, to possess the capabilities to fully perform the contract requirements and to have the integrity and reliability to assure good faith performance of the contract.”= =Brunner could not say how many hires were due to the Lottery. The agency had new work from other clients that prompted staffing. It also sprung for new technology, travel costs, and other expenses. He could not say how much money it had tied up with the Lottery account.= =“I can’t even go there right now, I’m dealing with too many issues at hand that need to be addressed,” he said. “There is no undo button for this. We are clearly collateral damage in this situation, trying to make the most of it. It was such a surprise. We’ll address it, deal with it and move on. The staff was resilient. I’m proud of them."= = = =News= =home=