The U.S. Army has extended McCann Worldgroup's contract for recruitment advertising services through September 2017, nearly a year and a half past its original expiration date.
This development does not derail the Army's ongoing advertising review. In fact, the extension, known as a modification, ensures that Worldgroup will be on board to handle assignments during the agency evaluation process.
"The modification provides the means to deliver services due to additional funding provided by the Army as well as ensure there are no gaps in contract support," Army representative Daniel Elkins said. "It also allows additional time to ensure the new contract will meet mission requirements and provide the best value for the Army." The extension raises the contract ceiling to $377 million.
Worldgroup retained the business in 2011 following a hard-fought battle, and, last November, the Army said it was launching a new review and invited the incumbent to defend. At the time, the Army said media spending would be $184 million to $200 million per year. The Army's mandated request for information was issued in June 2014, and an industry forum for agency representatives was held last December in San Antonio, Texas, as an initial capabilities assessment. Since then, however, there's been little movement.
Now, the team leading the process is "finalizing the acquisition strategy and acquisition plan," Elkins said. "Following this, the acquisition team will re-engage with industry to discuss the planned solicitation, seek industry input on the solicitation, and discuss the government acquisition process. We anticipate additional industry re-engagement prior to the end of the calendar year."
Worlgroup has worked with the Army for a decade, and the business generates estimated revenue of $15 million to $20 million for the Interpublic Group agency.
The scope of work includes general advertising, public affairs and direct marketing. Roughly a dozen Worldgroup companies work on the business, including McCann Erickson, UM, MRM Worldwide, NAS Recruitment Communications, Momentum, Weber Shandwick and Casanova Pendrill.