Arnold Communications will not have to face incumbent Young & Rubicam should it advance in the pitch for the U.S. Army's $114 million advertising account.
Y&R will not defend the Army contract, but will instead compete for the U.S. Air Force's $55 million account, sources said.
Meanwhile, the Army's management consultant firm Jones-Lundin, Chicago, has invited qualified shops with a minimum of $350 million in billings to apply.
The list so far includes Arnold Communications, Boston; DDB Needham, Chicago; Leo Burnett, Chicago; McCann-Erickson, New York; The Martin Agency, Richmond, Va.; and Saatchi & Saatchi, New York, according to sources. A formal request for proposals will be issued at the end of April.
Arnold will likely pursue the account using staff and resources from both its Boston and Washington, D.C., offices.
Y&R, which held the account since 1987, was also asked to participate but declined, said Major Ward Wood, the Army's advertising program manager. The New York shop officially backed out two weeks ago after failing to convince the Army that its plans to launch a review and switch to a
performance-based contract--rewarding agencies for campaigns that increase enrollment--was ill-timed, sources said. Y&R executives declined comment.
The Army wanted 74,000 new recruits last year, but missed the mark by 6,300. Y&R's current contract expires July 31, but there was a one-year option to renew.
David Beals, a senior partner with Jones-Lundin, said the Army is seeking a full-service agency capable of handling an integrated marketing campaign that will include TV and print ads, media buys, public relations and Internet marketing.
In light of the complexity of the assignment, agencies can also partner with other shops, Beals said.
The Air Force is expected to issue requests for proposals next month. K