News Flash: the Federal Government just realized that minority firms aren’t getting their fair shake on Government contracts. How about throwing this into the equation: since 2003, there has been a Federal requirement for 3% of all Government contracts to be set aside to Service Disabled Veteran Owned Businesses. Now I can assure you that if only 5% is going to minority firms- which includes Women Owned, African American Owned, Native American Owned, Asian Indian owned, 8A firms, HUBZone located firms- and Service Disabled Veteran Owned Business owned- the SDVOB participation is an infinitesimally smaller fraction.
It’s not just the agencies at fault here, it’s also the Federal buyers who also don’t seem to risk anything by non-compliance. We’ve only just begun a conversation with GSD+M who are in the process of defending the Air Force recruiting contract. Our only contact previously, was from a mid-level exec at Leo Burnett far into the process for the botched US Army recruiting award, which Leo lost to McCann. McCann has hired a “Diversity” exec, but all calls to his office are met with a standard line that we aren’t approaching them correctly, do not pass go, do not collect $200.
Here are some excerpts from the Ad Age article:
Advertising Age - GAO: Only 5% of Government Ad Business Goes to Minority Firms
The U.S. government is doing a poor job of awarding small and minority firms advertising and public relations contracts, according to a Government Accountability Office study.
The GAO found that on average the government devoted 5% of its $4.3 billion in ad-related expenditures to small or minority businesses.
The GAO found that on average the government devoted 5% of its $4.3 billion in ad-related expenditures to small or minority businesses.
The GAO report released yesterday examined contracts from 2001 through 2005. It found that on average the government devoted 5% of its $4.3 billion in ad-related expenditures to small or minority businesses, but that compliance varied considerably among government agencies.
Treasury, Defense
The Department of Defense used minority firms for advertising only 1.8% of the time and paid them on average nearly 84% less than non-minority firms. The Treasury Department used minority firms for advertising only 1.9% of the time and paid them on average nearly 47% less per contract than ad contracts with non-minority firms. (Government numbers usually include work preparing brochures, hiring photographers and public-relations efforts along with traditional advertising.)….
The Defense Department’s $2.7 billion in spending surpassed all the other agencies combined. Health and Human Services spent $494 million and the Treasury $188 million during the five years studied.
Senators speak out
The GAO report has angered some Democrats. In letters sent the day of the report’s release, Senate Majority Leader Harry Reid, D-Nevada; Senate Small Business and Entrepreneurship Chairman John Kerry, D-Mass.; Sen. Chuck Schumer, D-N.Y;. and Congressional Black Caucus Chair Rep. Carol Kilpatrick, D-Mich., urged the Defense and Treasury departments to do more.
“I am deeply concerned that the Departments of Defense and Treasury are denying minority advertising firms the opportunity to work with the federal government,” said Mr. Reid.
Mr. Kerry suggested the government’s record was inadequate. “This report shines a spotlight on the federal government’s failure to make equal opportunity a reality, not just rhetoric,” he said.
Ms. Kilpatrick said the lack of compliance is making a “mockery” of the contracting process. “Despite an [Clinton era] executive order, federal agencies are not providing minority business owners — who pay taxes, provide jobs, and help strengthen our economy — with equal opportunities in the federal contracting process. Failure to promote inclusion and fairness in contracting is not only an egregious disservice to America’s families, but it is also a mockery of the promise upon which our country was founded.”
Little mention has been made of the main reason for lack of minority participation: Bundling of contracts. We were recently contacted by the Veterans Administration, which now requires VA buyers to look first to SDVOBs then VOBs for outsourcing, about a video production contract.
The guaranteed buy has a maximum of $14,252,000.00 (later purportedly revised up to $27 million) and ” the minimum amount the Government must order for each location (Salt Lake City, UT; St. Louis, MO; Washington, D.C.) is $500.00 for the entire contract, including optional ordering periods” to provide video production services. Some of the sample projects in the RFP were perfect fits for us, and other SDVOB businesses. An example from the RFP:
Purpose and Scope of Videotape Product:
Purpose: To provide Production services for a 30 minute ‘PTSD Among Women Iraq Veterans’ videos.
The video format will be interviews with VA staff and patients with an on-camera professional narrator.
Which is fully within our- and many other SDVOBs reach.
Unless there are stringent rules about subcontracting, Primes contractors will find loopholes, set up shell firms or generally ignore Federal law requiring SDVOB and minority hiring requirements.
If you are interested in working with an SDVOB with HUBzone certification we can help you meet your hiring requirements- either by being your subcontractor, or by introducing you to other SDVOB and VOB businesses through our association with VOB108.org and NAVOBA.
If you would like to share you frustrations with us, please feel free to comment below.
Either television owners should be breathing a big sigh of relief, or they should be making funeral arrangements for their obsolete business model. In a quiet announcement, Google is backing out of the paid video service- either because they expect all video to be ad supported via their new pop-up ad technology, or that video will be supported by advertisers subsidies, much like it is over the air now. Here was the piece on Electronista that clued us into this news:
Electronista | Google quietly kills paid video service
Sidestepping a public announcement, Google has informed customers individually of its decision to stop its paid video services later this week. In its mass e-mail, the company has explained that “to improve all Google services,” download-to-own and download-to-rent videos purchased through Google Video will become unavailable as of August 15th. In addition to stopping new purchases, this will disable videos already bought in the past. To compensate Google is providing refunds, plus a $2 bonus to be spent at Google Checkout within the next 60 days.
The service never grabbed the public limelight, having been quickly dwarfed by the company’s own YouTube acquisition, and better-publicized competitors such as Amazon Unbox and the Apple iTunes Store. In its last days, clips sold through Google Video became limited to episodes of Charlie Rose. It is unclear whether the decision is directly related Google’s increasing involvement with Apple, which has Google co-founder Eric Schmidt on its board of directors, and has integrated YouTube into the iPhone and Apple TV.
No matter what, the delivery of television/video programs as we know it is in for a huge change. The Google/Apple connection on the iPhone and Apple TV may be foreboding for a new business alliance. Combine Googles ability to target advertising, with Apple ability to build an interface and payment system with the iTunes store- and you could have TV 2.0 coming to a plethora of digital devices soon.
The line was too long for our rushed lunch in Chicago to eat at Roti. But the place was so cool, we decided to stop in and take a look after the rush was over.
Very cool- looked like it was worth the wait, nice design, fascinating menu (which I picked up to bring home to Dayton) and so I thought I’d snap a few pictures for my mental library of things I like-
that’s when the owner rushed up and told me “No pictures” and gave me the third degree on why I might want to take pictures. Well, I was going to say something wonderful about his place, but now, I’d rather just share this story on how to make a really crappy first impression.
Roti was founded as a collaboration between friends with a vision to bring Mediterranean food to the casual restaurant marketplace, with an emphasis and focus on healthy alternatives, freshness and superior quality.
Since I wasn’t allowed to take pictures- I’ll have to share the ones from their site. Readily available- to everyone.
In a networked world you are not in control- your customers are, and good or bad, they tell everyone.
I don’t have time to sit and watch Steve Jobs introduce the new iMac and iLife while tethered to my high speed connection- but, man, this would be great to watchon my iPhone on the plane to Chicago tomorrow, so I bop on over to Apple’s site and there it is:
Apple - QuickTime - Apple Special Event - August 2007
Watch Apple CEO Steve Jobs unveil the all-new, redesigned iMac and demo new features in iLife 08, iWork 08, and .Mac. See the video-on-demand event right here, exclusively in QuickTime and MPEG-4.Voiceover users click here to listen to keynote address.
The problem- even with Quicktime Pro, I can’t save it to my desktop because they have it as streaming media… oops. Went to the iTunes store- and it’s not there either.
Either you fully embrace the idea of video anywhere anytime or you don’t.
Lesson to marketers: make your video, commercial, training film, industrial video available to anyone, to watch anytime if you want to get maximum bang for your marketing dollar.
I just spent the weekend in Jacksonville Florida working with leading brand thinker, futurist and copy writing goddess Sally Hogshead. I also spent some time working with a leading Jacksonville agency on planning their web 2.0 strategy. In our discussions of the future, one of the recurring themes was what what does an ad agency of the future look like? And what services will it provide.
Then I read my feed from educational/learning futurist D’Arcy Norman, and he’s asking the same questions: only about organizations centered around higher learning. Call it synchronicity, call it karma- just don’t ignore it. Here is what was on D’Arcy’s mind about membership in professional organizations:
On the changing role of the Organization - D’Arcy Norman dot net
We talked about the issues related to membership in the organization for some time. Each time we discussed it, we came back to a single conclusion - we don’t need an organization to provide infrastructure to allow us to connect with others anymore. We are fully able to make these connections on our own, as we have been doing anyway. The informal, direct connections made between individuals are much more valuable than organizationally-fostered ones, at least in my experience.
I really don’t think we need many of these organizations any more. It would be better to allocate the resources locally, while using these great “web 2.0″ tools and social networks to build connections. Maybe an occasional conference, more akin to Northern Voice than to these giant organizational conferences, in order to provide a venue for face-to-face interaction.
In an era of decentralization and individually generated and managed content, the role of the central organization should be changing. To what? I’m not sure. But it’s no longer necessary as a broker to connect individuals and groups.
Is the idea of an agency still relevant? Can teams of freelance talent give you better advice? Do we need physical offices to engage in the process of creating content in a digital world?
I’m not sure I have the answers anymore than D’Arcy is- but I do know that digital virtual tools can create connections more efficiently than ever before. And when you get to the heart of marketing- it’s all about making connections.
