NCUA Abruptly Postpones 'Rebranding' Project After Contracts Made Public
More than $500,000 is contracted out for a major rebranding project not publicly discussed by the NCUA. The project is now on hold.
The NCUA abruptly postponed a half-million-dollar “rebranding” project Thursday night, after contracts with public relations firms were made public.
The agency late last year agreed to spend more than a half million dollars on projects to “rebrand” the agency and increase the public visibility of agency officials, according to documents obtained through the Freedom of Information Act.
When CU Times asked the NCUA in March about contracts with public relations firms, agency officials said a Freedom of Information Act request would be required.
Redacted copies of the contracts were released on Wednesday and Thursday.
As news that the contract information was being made public Thursday night, the NCUA postponed the project, saying that the agency needed to spend more time addressing the coronavirus crisis.
The announcement did not provide details about the fate of three contracts signed by agency officials.
“Launched at the beginning of the year, this initiative’s purpose was to evaluate and modernize the signage and branding associated with the National Credit Union Share Insurance Fund and the agency’s communications, stakeholder engagement and employee recruitment functions,” the agency said.
Neither the 2019 nor 2020 NCUA budgets mention the initiative.
However, the 2020 budget, adopted in December, calls for one additional agency staff member intended to support the agency “through strategic outreach and engagement.”
The Contracts
The largest contract went to Edelman, a major public relations firm, for more than $490,000.
Two other contracts went to companies with close ties to Republican causes.
Agency officials approved an $8,800 contract with District Media Group, headed by Beverly Hallberg, who in late February appeared on Fox’s business network and accused the media of creating “mass hysteria” around the coronavirus.
They also signed a $12,000 contract with Kinkade Communications, an Arkansas company, operated by David Kinkade, who once served as communications director for Republican Asa Hutchinson’s gubernatorial committee.
One goal of the project was to “obtain an independent and unbiased assessment of the NCUA’s current brand strategy and brand identity, and to develop and implement a new and consistent brand strategy and brand identity going forward.”
The contract with Edelman was to last for six months.
Edelman is a global communications company with 6,000 employees stretched across 60 offices.
The Edelman contract included:
- An agency brand strategy and brand identity assessment and evaluation;
- A comparison to other financial regulators and other public and private entities;
- A new brand strategy;
- Details on how to best respond to stakeholders through the media; and
- Training on how to respond to media interviews and deliver testimony before Congress.
The contract with the District Media Group stated that through the company’s experience booking clients with media outlets, the company “will help Chairman Hood acquire earned media in order to educate viewers and boost recognition of current issues, initiatives and campaigns.”
The company also features media tips, including how to discuss the Equal Rights Amendment to the Constitution, which it said is “harmful” to women.
The third contract is with Kinkade Communications, an Arkansas company.
That contract called for the delivery of 15 “items” to the agency. Those “items” could include speech drafts, op-ed columns or other material.
David Kinkade served as communications director for Hutchinson’s gubernatorial bid, a speechwriter and public affairs specialist at the Department of Homeland Security during the George W. Bush administration, He also worked as a speechwriter for former Sen. Blanche Lincoln (D-Ark.).
Former Chairmen React
Former NCUA chairs said they had hired consultants for a variety of duties.
“To answer your question, yes, I did hire an outside PR firm to advise on crisis management and messaging during the economic crisis that occurred when I was chairman,” Debbie Matz, who served as chairwoman of the board from 2009 to 2016, said.
But Michael Fryzel, who served as board chairman in 2008 and 2009, said under his leadership, the board did not hire any outside public relations firms.
He said the agency did hire economist Jane Bryant Quinn to do radio and television spots touting credit unions.
“[The] NCUA has had an outside consulting budget for decades that the agency, under the direction of the chairman as the statutorily-designated official spokesperson of the agency, can allocate for means to help get the agency’s message out to the public, on Capitol Hill and to stakeholders,” Dennis Dollar, board chairman from 2001 to 2004, said.
He said while he was chairman, the agency hired consultants as outside training presenters at agency conferences and meetings.
“All chairs have used outside consultants in some shape, form or fashion to promote the agency and its mission,” he added.
CUNA Responds
CUNA President/CEO Jim Nussle criticized the NCUA for not having openly discussed the project as it was being developed.
“A project of this nature undertaken by a government agency funded by credit unions demand greater transparency and a better understanding of the costs and benefits,” he said.
He said that while the agency might have acted sooner to suspend the project in light of the coronavirus crisis, the NCUA made the right decision to now suspend it.
Nussle also said that if the agency decides to resume the effort, officials must be more transparent and include experts from within the credit union system.
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