The Arkansas Department of Parks, Heritage and Tourism has awarded four new advertising and marketing contracts to CJRW of Little Rock for $26 million a year, and CJRW is subcontracting with MMGY of Kansas City on the four contracts, a spokeswoman for the Department of Parks, Heritage and Tourism said Wednesday.
The contracts are for three years with the option for the contracts to be for up to seven years, department spokeswoman Shealyn Sowers said.
CJRW and MMGY will provide services for lead recreative, public relations, media buying and placement, and website, she said.
Sowers said the department's request for proposal (RFP) committee "split the advertising contract into four separate contracts to test the market, encourage competition, and get the best possible partners to work with our team to boldly market the Natural State.
"This approach allowed companies to bid only in their areas of expertise rather than in all categories," she said in a written statement.
"The RFP committee awarded the contract to CJRW with partner MMGY in all four categories because they were the best to deliver on our goals and had the most experience marketing outdoor experiences and presenting our state as an emerging leader in such," Sowers said.
On its website, MMGY Global describes itself as the world's leading integrated marketing company specializing in the travel, tourism and hospitality industries. MMGY Global is privately owned by EagleTree Capital, a leading New York-based, middle-market private equity firm.
Sowers said the department's RFP committee for the contracts included Department of Parks, Heritage and Tourism Secretary Shea Lewis, the department's Deputy Chief of Communications Leah Dipietro, and State Parks, Recreation and Travel Commission member Kalene Griffith, who is president and chief executive officer of Visit Bentonville.
In October, Gov. Sarah Huckabee Sanders announced the hiring of Dalaney Thomas, then an account manager at the CJRW advertising agency for Arkansas tourism and the Oaklawn Racing Casino Resort, as director of tourism at the Arkansas Department of Parks, Heritage and Tourism, starting Nov. 1. At that time, Sowers said Thomas would be excluded from the request for proposal process for the department's advertising and marketing contract that expires this fiscal year.
Asked about how much the subcontract is for the advertising and marketing contracts, Sowers said Wednesday that "MMGY is a subcontractor through CJRW, and we are not involved in their negotiated terms. Origin is owned by MMGY."
The request for proposals was for the Department of Parks, Heritage and Tourism to award a contract to at least one contractor that can successfully market and represent Arkansas through the Division of Tourism, the Division of Arkansas State Parks, and Keep Arkansas Beautiful, according to the request for proposals issued by the state Department of Transformation and Shared Services.
The firms that submitted proposals included the Insight Creative Group, Stone Ward Inc., GWL Advertising, 4Media Group Inc., Miles Partnership LLLP, Ghidotti, Ace One Media LLC, CJRW and World Media House, according to state records.
Lewis said Wednesday that CJRW's proposal included MMGY as a subcontractor.
Without asking any questions, the Legislative Council's Review Subcommittee late Tuesday afternoon reviewed four advertising and marketing contracts between CJRW and the state Department of Parks, Heritage and Tourism.
The four contracts are for a period from June 1, 2024-June 30, 2025, and they total $26 million after review based on Bureau of Legislative Research records. The bureau's records show the total projected cost of the contracts could be $182 million over a seven-year period.
Bureau records show all four contracts are to establish a contract for the Arkansas Department of Parks, Heritage and Tourism to successfully market, represent and increase public awareness of The Natural State, Arkansas Tourism, Arkansas State Parks and Keep Arkansas Beautiful brands and their respective missions.
"See also Attachment 4" of the contracts, according to Bureau of Legislative Research records. Attachment 4 includes information about CJRW's roles and responsibilities, MMGY's roles and responsibilities, and the Arkansas Department of Parks, Heritage and Tourism's responsibilities.
The four new contracts will replace the Department of Parks, Heritage and Tourism's expiring seven-year contract with CJRW for Arkansas Tourism and Arkansas State Parks for $23.9 million and the department's current contract with MHP for Keep Arkansas Beautiful for $600,000 in fiscal year 2024, whose previous contract was from fiscal year 2017-2023.
In addition, the department has an existing contract with MHP for the Division of Heritage for $850,000, which started in fiscal year 2022 and is in its third year, according to Sowers.
In April, CJRW and MHP/Team SI started operating under new marketing and advertising contracts with the state Department of Commerce, which is aiming for more efficiency in its marketing and advertising efforts.
The new contracts became effective April 1 and the initial term will be for 15 months from April 1-June 30, 2025, and can be renewed upon written, mutual agreement with the Arkansas Legislative Council's review in one-year increments or a portion thereof, through March 31, 2031, according to Department of Commerce spokesperson Clark Cogbill.
The initial 15-month contract value with MHP/Team SI is $1.5 million, he said in April. If all of the contract renewals are exercised, the total projected contract value for the seven-year period is $8.4 million.
The initial 15-month contract value with CJRW is $644,715, Cogbill said. If all of the contract renewals are exercised, the total projected contract value for the seven-year period is $3.6 million, he said. The Arkansas Legislative Council completed its review of these contracts in March.
