The U.S. Army has extended its current contract with McCann Worldgroup for another full year, a decision that follows the agency network's protest against the Army after it was eliminated from the ongoing competitive review.
McCann, which has worked with the Army since 2005, would have wrapped up its contract next month.
According to a government document released on Monday, McCann has been "awarded a $524,100,000 modification" to its contract, with a new "estimated completion date of Sept. 28, 2018."
Last month, McCann filed a formal Government Accountability Office pre-award bid protest after being eliminated from the agency review for the U.S. Army's business. The protest charges that McCann's elimination from the review was "an arbitrary and capricious decision," citing reasons such as the contracting officer's "failure to read McCann-Erickson's entire proposal."
In a GAO protest, a government agency—the Army in this case—cannot award the business until the protest is ruled on, which must occur within 100 days.
The decision on the GAO protest will be made next month. If it's denied, the agency can take the matter to the Court of Federal Claims. One McCann executive said the agency intends to take the matter to court if the protest doesn't produce results.
"The Mission and Installation Contracting Command office at Fort Knox, Ky., is in the process of executing a modification of the existing Army advertising contract for one year to ensure there are no gaps in contract support while the requirement is being re-competed for a follow-on contract," says Daniel P. Elkins, deputy director of the Office of Public and Congressional Affairs, Mission and Installation Contracting Command, the U.S. Army. "The extension is valued at approximately $500 million and extends the ordering period."
McCann Worldgroup, which includes Weber Shandwick and UM, reaps an estimated $30 to $40 million in annual revenue from the account. The Army last extended its contract with McCann Worldgroup in November 2015 for another 18 months.
McCann referred calls to the client. Representatives from the Army were not immediately available to comment about the current contract renewal.