The U.S. Army extended its relationship with McCann Worldgroup almost a year and a half past its upcoming April 6 expiration date, Adweek reports.
This does not conclude the U.S. Army’s current review, launched nearly a year ago, which covers advertising, public affairs support and direct marketing. Rather the extension, which the Army refers to as a modification, is meant to ensure that the agency handles assignments during the review 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 told Adweek. “It also allows additional time to ensure the new contract will meet mission requirements and provide the best value for the Army.” He added that the extension “raises the contract ceiling to $377 million.”
McCann is a decade-long incumbent on the account, having previously defended the business in a review which concluded in 2011 against finalists FCB, Grey and Y&R. When the current review was launched last year, an army representative told Adweek that “overall marketing spending on the business is $184 million to $200 million annually.”