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Agency Dirty Laundry

I noted, with some curiousity, the stories surrounding Howard Merrell & Partners decision to decline the NC Lottery contract that it won just days before. Agencies aren't in the business of putting hundreds or more hours into a major new business pitch, only to win and then decline the business.

But it turns out that they apparently didn't clear a detail with Interpublic Group of Cos., their holding company, before pitching. Interpublic wasn't up for posting a $1MM bond to guarantee vendor payments, which effectively quashed the deal. HM&P, which to put not too fine a point on it, was pissed, aired the intercompany squabble to the media. Interpublic struck back, with one observer translating their response:

Nyah, nyah, nyah: You're a non-strategic asset. So shut up.

Or something like that.

Questions:

  1. Anybody think Interpublic is going to have more to say about this to HM&P? Will they be half as polite as in their public statements to date?
  2. Isn't this the kind of not-so-minor detail that should be settled before pitching the business? I've been involved in responses to state RFPs, and performance bonds or other guarantees are not unusual.

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