Ad firm set to earn $5 million in 2 months under fiscal board-approved Treasury contract

**Puerto Rico Treasury to Pay $5 million to Advertising Firm Under Oversight Board‑Approved Contract**

The Financial Oversight and Management Board for Puerto Rico (the “Fiscal Board”) approved a revised contract with advertising agency Veintinueve de Febrero Inc. that will pay the firm more than $5 million over a 90‑day period. The approval, issued earlier this week, came with strict conditions aimed at ensuring procurement transparency and fiscal compliance.

### Contract Details

* **Scope of Services** – The contract covers advertising and marketing for the Electronic Lottery, the Traditional Lottery, and broader communications for the Treasury Department.
* **Term** – The new agreement runs from September 1 to November 30 of the current fiscal year (FY 2027).
* **Value** – The maximum payable amount is $5,074,000, to be funded from General and Special Revenue Funds already budgeted for FY 2027.

The Fiscal Board’s approval was issued in an electronic letter to Treasury Secretary Ángel Pantoja Rodríguez on Monday. The Board noted that the contract meets the requirements of Section 204(b)(2) of the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA) but added that it is “Approved with Conditions.”

### Conditions Imposed by the Fiscal Board

1. **Competitive Procurement Process** – The Board required a new competitive procurement process that must be conducted well in advance of the 90‑day term and in accordance with the Treasury’s Internal Manual P‑COM‑02, which is currently under review.
2. **Documentation and Transparency** – The Treasury Department must maintain a complete procurement record demonstrating that the award promotes market competition and transparency. Any resulting contract must be submitted to the Board for review before execution.
3. **Budget Oversight** – The Treasury Department certified that sufficient FY 2027 budget exists to cover the contract. If the agency overspends, it must identify savings elsewhere and submit a budget reprogramming request.
4. **Future Observations** – The Board reserved the right to issue additional observations if new information emerges and reiterated that any material changes to the contract must be submitted for review prior to execution.

### Background and Prior Concerns

The Board’s conditions stem from concerns raised earlier in August about irregularities in the procurement process that produced the prior contract, Contract 2026‑000178. In an August 7 letter, the Board questioned:

* Amendments the Treasury Department made to its internal procurement manual on the same day the request for qualifications was issued.
* The Secretary’s decision to bypass the Evaluation Committee’s recommendation and award the contract to Veintinueve de Febrero Inc., a lower‑scoring bidder, without providing documentation to explain the decision.

These issues prompted the Board to require a new competitive procurement process and to shorten the term of the new contract.

### Scope of the Board’s Review

The Fiscal Board’s review was limited to fiscal‑plan alignment and market‑competition requirements under PROMESA. The Board did not conduct legal due diligence, background checks, or verification of compliance with federal or local procurement laws.

The Treasury Department’s contract renewal, submitted on August 17, reflects the Board’s conditions and the agency’s commitment to meeting the fiscal and procurement standards set by PROMESA.

Article and image source: sanjuandailystar.com