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

By THE STAR STAFF

The advertising agency Veintinueve de Febrero Inc. is poised to earn more than $5 million in just 90 days under a revised contract the Financial Oversight and Management Board for Puerto Rico approved earlier this week — but only after imposing strict conditions tied to procurement transparency and fiscal compliance.

In a letter sent electronically to Treasury Secretary Ángel Pantoja Rodríguez on Monday, the oversight board confirmed that the Treasury Department’s proposed renewal for advertising and marketing services — covering the Electronic Lottery, the Traditional Lottery, and broader agency communications — meets the requirements of Section 204(b)(2) of the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA). The board’s approval, however, is explicitly “Approved with Conditions.”

The revised contract, submitted Aug. 17, shortens the original one‑year proposal to a two‑month term running from Sept. 1 through Nov. 30 of this year. The Treasury Department reduced the maximum payable amount accordingly, landing at $5,074,000, all of which will be funded through a mix of General and Special Revenue Funds already budgeted for fiscal year (FY) 2027.

The oversight board forced the shortened term after raising concerns earlier this month about irregularities in the procurement process that produced the prior contract, Contract 2026‑000178. In its Aug. 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, as well as the secretary’s decision to bypass the Evaluation Committee’s recommendation and award the contract to a lower‑scoring bidder — Veintinueve de Febrero Inc. The agency provided no documentation explaining that decision.

Those issues prompted the oversight board to require a new competitive procurement process, one that must be conducted “well in advance” of the 90‑day term and in accordance with the Internal Manual P‑COM‑02, which is currently under board review. The Treasury Department must maintain a complete procurement record demonstrating that the eventual award promotes market competition and transparency. Any resulting contract must be submitted to the board for review before execution.

The board emphasized that its review is limited to fiscal‑plan alignment and market‑competition requirements under PROMESA. It did not conduct legal due diligence, background checks, or verification of compliance with federal or local procurement laws.

The Treasury Department certified that sufficient FY2027 budget exists to cover the $5 million contract, though the oversight board noted that if the agency overspends, it must identify savings elsewhere and submit a budget reprogramming request.

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.