The Fine Print On GSD&M’s Air Force Win

Everyone is talking about GSD&M landing the renewal of the Air Force contract, which is good for the shop considering they’ve been doing nothing, but pro bono work. Good for GSD&M. Sort of… The original Air Force contract was $350 million over seven years, or $50 million per year. The new contract is estimated at $372 million over TEN years, or around $37 million per year. How is it that GSD&M can turn gold into straw? By winning, they’ve also kind of lost with a longer contract with less in estimated annual billings.

Don’t you kind of feel bad for Idea City? Especially with that name, you might think they’d be able to get a clue. Staffers who still remain at GSD&M, Agency Spy loves you. We’re wishing you the best in face of a your executive leadership. Gotta wonder whether Mark Taylor is starting to feel like he bit off more than he can chew.

From the press release:

“U.S. Air Force Selects GSD&M Idea City for 10-Year
Advertising Contract

~ $372 million estimated award value will fuel
marketing for Air Force recruiting ~

AUSTIN, Texas — April 3, 2008 — After a hard-fought competition and nearly a year since beginning the
process of vying to extend their seven-year relationship, GSD&M Idea City has been selected by the
Air Force for an unprecedented 10-year contract to handle national advertising, media and event marketing
duties for their recruiting efforts. The estimated value of the contract is $372 million.

The agency began competing in June 2007 for the contract after government contracting rules mandated a
re-competition for the business. The agency’s original seven-year contract with the Air Force was valued at
$350 million. ”

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