ALEXANDRIA, Va.–NCUA said it is temporarily postponing a half-million-dollar plan to rebrand and modernize the share insurance signage and other agency branding in order to focus resources on its response to the COVID-19 pandemic.
The announcement followed an exclusive report here by CUToday.info that NCUA had signed a contract for $490,122.66 with the communications firm Edelman to provide it with communications/branding guidance.
Also following the CUToday.info report, CUNA issued a statement expressing concerns over the need for greater transparency and a better public understanding of the costs and benefits of the services for which the agency had contracted.
CUToday.info had obtained a copy of the contract signed with the firm through a Freedom of Information Act request.
As a result of the postponement of the contract, NCUA said it will pay Edelman $235,449.59 for Edelman’s services and the deliverables it has received to date. An agency spokesperson declined to provide details around the specific deliverables received by NCUA.
Not a Termination
The spokesperson told CUToday.info the decision is not a termination or a modification of the contract. The spokesperson also declined comment on whether the decision was the result of the CUToday.info report on the contract. Instead, the spokesperson said the contract, like all government contracts, provides the option of both postponing the agreement or obtaining additional services. In a statement, NCUA said it plans to resume the work at a later date.
According to a statement from NCUA, NCUA had selected Edelman to lead an effort 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.”
In the contract reviewed by CUToday.info, considerable portions of which were redacted, it states Edelman was being retained to conduct an agency brand strategy and brand identity assessment and evaluation; an agency brand strategy and brand identity assessment and evaluation comparison to other federal financial regulators and similar public and private sector entities, a new brand strategy and brand identity, tactical communications content, a review of content prepared by NCUA, and training for media interviews and congressional testimony.
CUNA Responds
“We are concerned about reports that the NCUA began a very significant branding project prior to the onset of COVID-19, apparently alongside a similar effort at FDIC to enhance consumer perception and understanding of federal deposit insurance,” said CUNA CEO Jim Nussle in response to the NCUA announcement. “A project of this nature undertaken by a government agency funded by credit unions demands greater transparency and a better public understanding of the costs and benefits.
“While the agency might have acted sooner to suspend this project considering the COVID-19 pandemic, we appreciate that NCUA has suspended the effort. All hands should be on deck to help credit unions stay in a position to serve their members. This is not the right time for this type of project.
“If NCUA resumes this effort in the future, it is critical that the agency shed more light on its plan, its costs, and the scope of its outside relationship with the public relations firm,” Nussle continued. “NCUA should also take every effort to include experts within the credit union system that have a deep understanding of consumers’ perception towards credit unions, their understanding of how credit union deposits are insured, and how best to reach them with a message that improves both.”