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. ”

Create a social media strategy, launch your campaign, and track the results in our Social Media Marketing Boot Camp starting February 16. The online event and workshop will feature speakers including The Onion‘s Baratunde Thurston (left), Facebook’s Morin Oluwole, and bitly’s Tim Devane. Register now.