DoD's Navy awards $21M advertising contract to Wunderman Thompson LLC under full and open competition

Contract Overview

Contract Amount: $20,990,541 ($21.0M)

Contractor: Wunderman Thompson LLC

Awarding Agency: Department of Defense

Start Date: 2008-02-27

End Date: 2008-12-31

Contract Duration: 308 days

Daily Burn Rate: $68.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: MCRC ADVERTISING SERVICES; BASE YEAR

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30328

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $21.0 million to WUNDERMAN THOMPSON LLC for work described as: MCRC ADVERTISING SERVICES; BASE YEAR Key points: 1. Contract awarded for advertising services, a common government need. 2. Wunderman Thompson LLC, a large agency, secured the award. 3. Full and open competition suggests a potentially competitive pricing environment. 4. The sector is advertising, with a benchmark of $68M for similar contracts.

Value Assessment

Rating: good

The contract value of $21M for a base year appears reasonable given the benchmark of $68M for similar contracts. The Cost Plus Fixed Fee (CPFF) pricing structure allows for cost reimbursement plus a fixed fee, which can be effective for services where costs are difficult to predict.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being used efficiently for advertising services.

Public Impact

Public awareness campaigns and government messaging may be influenced by this contract. Taxpayers benefit from a competitive bidding process for advertising needs. The Department of Defense utilizes advertising to reach various audiences.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition
Established agency awarded contract
Clear service category (advertising)

Sector Analysis

The advertising sector is crucial for government outreach and public information dissemination. The benchmark of $68M suggests significant spending in this area, with this contract representing a portion of that.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to a large agency, suggesting limited direct impact on small business participation in this specific award.

Oversight & Accountability

The award was made under full and open competition, implying a standard procurement process. Further oversight would involve reviewing the specific performance metrics and deliverables outlined in the contract.

Related Government Programs

Advertising Agencies
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns in CPFF structure
Measuring advertising ROI can be challenging
Contract duration is relatively short (base year)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.0 million to WUNDERMAN THOMPSON LLC. MCRC ADVERTISING SERVICES; BASE YEAR

Who is the contractor on this award?

The obligated recipient is WUNDERMAN THOMPSON LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $21.0 million.

What is the period of performance?

Start: 2008-02-27. End: 2008-12-31.

What is the expected return on investment for this advertising contract?

The return on investment (ROI) for this advertising contract is not explicitly detailed in the provided data. However, the effectiveness of advertising campaigns is typically measured by metrics such as reach, engagement, public perception shifts, or achievement of specific campaign goals. The government would likely track these metrics to assess the value derived from the $21M expenditure.

What are the potential risks associated with a Cost Plus Fixed Fee contract for advertising?

A primary risk with CPFF contracts is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed. For advertising, this could lead to scope creep or inefficient spending if not closely monitored. However, the fixed fee provides some cost certainty for the government on the profit margin.

How effectively does this contract align with the Department of Defense's overall communication strategy?

The provided data does not detail the specific alignment of this advertising contract with the broader communication strategy of the Department of Defense. A thorough assessment would require reviewing the contract's objectives, the scope of work, and how these contribute to the DoD's strategic messaging and outreach goals.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Advertising, Public Relations, and Related Services › Advertising Agencies

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: WPP PLC (UEI: 232931092)

Address: 10 GLENLAKE PKWY NE B, ATLANTA, GA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,990,541

Exercised Options: $20,990,541

Current Obligation: $20,990,541

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M0026408D0001

IDV Type: IDC

Timeline