DoD's $57.4M Advertising Contract with Wunderman Thompson LLC Awarded via Full and Open Competition
Contract Overview
Contract Amount: $57,405,527 ($57.4M)
Contractor: Wunderman Thompson LLC
Awarding Agency: Department of Defense
Start Date: 2015-01-30
End Date: 2016-01-29
Contract Duration: 364 days
Daily Burn Rate: $157.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF ADVERTISING AND MARKETING SERVICES
Place of Performance
Location: ATLANTA, FULTON County, GEORGIA, 30326
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $57.4 million to WUNDERMAN THOMPSON LLC for work described as: IGF::OT::IGF ADVERTISING AND MARKETING SERVICES Key points: 1. Significant contract value of $57.4 million for advertising and marketing services. 2. Competition was full and open, suggesting a competitive bidding process. 3. Contract awarded to Wunderman Thompson LLC, a known entity in the marketing space. 4. Sector is advertising and marketing, crucial for public outreach and branding.
Value Assessment
Rating: good
The contract value of $57.4 million is substantial for advertising services. Benchmarking against similar large-scale government advertising contracts would be necessary for a precise pricing assessment, but the full and open competition suggests a reasonable price discovery mechanism.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Taxpayer funds are utilized for advertising and marketing services, aiming to enhance public awareness and communication for the Department of Defense.
Public Impact
Public funds are being used for advertising campaigns, impacting taxpayer dollars. The contract supports a major federal agency's communication and outreach efforts. Effectiveness of the advertising campaigns will determine the ultimate value for public perception and agency goals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in advertising services.
- Measuring ROI of advertising campaigns can be challenging.
Positive Signals
- Full and open competition promotes fair pricing.
- Contract awarded to a specialized marketing firm.
Sector Analysis
The advertising and marketing sector is vital for government agencies to communicate their missions and engage the public. Spending benchmarks in this sector vary widely based on campaign scope and objectives, but $57.4 million represents a significant investment.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
Oversight would focus on the performance metrics of the advertising campaigns and adherence to the contract's terms and conditions. Regular reporting and review by the Department of the Navy are expected.
Related Government Programs
- Advertising Agencies
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns in CPFF contracts.
- Measuring the ROI of advertising can be difficult.
- Dependence on a single contractor for a large scope of work.
Tags
advertising-agencies, department-of-defense, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.4 million to WUNDERMAN THOMPSON LLC. IGF::OT::IGF ADVERTISING AND MARKETING SERVICES
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 $57.4 million.
What is the period of performance?
Start: 2015-01-30. End: 2016-01-29.
What specific advertising and marketing objectives does this contract aim to achieve for the Department of the Navy?
This contract likely supports various objectives such as recruitment, public awareness campaigns for specific naval initiatives, brand building, and communicating the Navy's role and impact. The specific goals would be detailed in the contract's statement of work, outlining deliverables and expected outcomes for the advertising efforts.
How will the effectiveness of Wunderman Thompson's advertising campaigns be measured and evaluated?
Effectiveness is typically measured through key performance indicators (KPIs) defined in the contract. These could include metrics like campaign reach, engagement rates, website traffic, lead generation, public sentiment analysis, and ultimately, the achievement of specific communication goals set by the Department of the Navy.
What is the potential for cost overruns given the Cost Plus Fixed Fee (CPFF) contract type?
While CPFF contracts provide flexibility, they also carry a risk of cost overruns if not managed diligently. The fixed fee provides an incentive for the contractor to control costs, but the government bears the risk of increased direct costs. Robust oversight and clear scope definition are crucial to mitigate this risk.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Advertising, Public Relations, and Related Services › Advertising Agencies
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: M0026414R0020
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: WPP PLC
Address: 3630 PEACHTREE RD NE STE 1200, ATLANTA, GA, 30326
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $57,405,527
Exercised Options: $57,405,527
Current Obligation: $57,405,527
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M0026415D0008
IDV Type: IDC
Timeline
Start Date: 2015-01-30
Current End Date: 2016-01-29
Potential End Date: 2016-01-29 00:00:00
Last Modified: 2025-08-29
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