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IMMEDIATE RELEASE

Release No: 311-00
June 06, 2000

NAVY SEEKS INCENTIVE BASED ADVERTISING CONTRACT

The Navy announced today that it is conducting a request for proposal (RFP) for an incentive-based advertising contract in support of Navy recruiting.

The Navy is seeking such an advertising arrangement because a 1999 Defense Department study conducted by Carter Eskew and Mike Murphy recommended that each service change its present fixed cost-plus advertising contract to an incentive-based contract. This move allows the government to reward a contractor's success. The recommendation was made to ensure that taxpayers received the greatest value for their investment in military recruiting while making the terms beneficial to the contractor.

The Navy credits its current advertising programs for playing a big part in Navy's continued success in reaching recruiting accession goals for the past 20 consecutive months (Sept. 1998 - May 2000). The Navy views an open bidding process for an incentive-based contract as the most fair and cost-effective way to achieve the Service's advertising goals.

This new kind of advertising contract is one of numerous initiatives the Navy has instituted to meet the goal of bringing in 57,370 new recruits in fiscal 2000. The Navy's recent recruiting successes have been attributable to initiatives which include increasing the recruiter force to 5,000, assigning more junior sailors to recruiting duty, adding 140 new recruiting stations, and launching an enhanced hometown recruiting program for junior fleet sailors called the Bluejacket Hometown Area Recruiting Program. Additionally, the Navy has raised the Navy College Fund maximum to $50,000 for new recruits, increased accessions of prior-service sailors, created a new mini-compact disc direct mail featuring National Basketball Association star and Navy veteran David Robinson, and placed a new emphasis on Internet recruiting.

For further information on the RFP, please contact Navy Cmdr. Steve Lowry, Navy Recruiting Public Affairs at (901) 874-9048.