Army Begins Review

Young & Rubicam will not defend the U.S. Army’s $114 million advertising contract. It will instead compete for the U.S. Air Force’s $55 million account, sources said.
The Army’s search consultant, Jones-Lundin Associates in Chicago, has invited qualified shops with at least $350 million in billings to apply. Sources said the list includes The Martin Agency, Richmond, Va.; Arnold Communications, Boston; Campbell-Ewald, Warren, Mich.; DDB and Leo Burnett, both Chicago; and McCann-Erickson and Saatchi & Saatchi, both New York. Requests for proposals will be issued at the end of April.
Y&R, which held the account since 1987, was asked to participate but declined, said Maj. Ward Wood, the Army’s ad program manager.
Sources said the New York shop withdrew after failing to convince the Army that its plans to launch a review and switch to a performance-based contract, in which agencies are rewarded for ad campaigns that in-crease enrollment, were premature. Y&R’s contract expires July 31, but there is a one-year option to renew. The shop declined comment.
Y&R executives were stung by reports that implied the agency was to blame for shortfalls in enlistment, despite the boom in the economy, which typically reduces military enrollment, sources said. The Army wanted 74,000 new recruits last year, but missed the mark by 6,300, said Wood.
The U.S. Air Force is also expected to issue requests for proposals next month. Bozell Kamstra in Dallas handles the account and has been invited to reapply.
–with Andrew McMains