DoD's Navy awards $21M advertising contract to Wunderman Thompson LLC under full and open competition
Contract Overview
Contract Amount: $21,017,206 ($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. Significant contract value of $21 million for advertising services. 2. Awarded through full and open competition, indicating a competitive marketplace. 3. Potential risk associated with fixed-fee contracts if scope creep occurs. 4. Advertising sector spending is substantial, with this contract representing a portion of the DoD's outreach efforts.
Value Assessment
Rating: good
The contract value of $21 million for a base year of advertising services appears reasonable given the scope. Benchmarking against similar large-scale advertising campaigns for government agencies would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives best value.
Taxpayer Impact: Taxpayer funds are being used for advertising services, which is a necessary function for government outreach and communication. The competitive award process aims to ensure efficient use of these funds.
Public Impact
Public awareness campaigns and government messaging will be supported by these services. Taxpayer money is allocated for marketing and advertising efforts. The contract supports the Department of the Navy's communication objectives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns if not managed tightly.
- Contract duration is relatively short (less than a year), potentially leading to transition costs for follow-on work.
Positive Signals
- Awarded through full and open competition.
- Significant contract value indicates a substantial need for services.
Sector Analysis
The advertising sector is dynamic, with agencies competing for large government contracts. This award to Wunderman Thompson LLC reflects their capability in providing comprehensive advertising solutions. Government spending in this sector supports public information dissemination and agency branding.
Small Business Impact
This contract was awarded to a large business (Wunderman Thompson LLC) and does not appear to have specific set-asides for small businesses. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The award process under full and open competition suggests a degree of oversight. However, ongoing monitoring of performance and costs under the Cost Plus Fixed Fee structure is crucial for accountability.
Related Government Programs
- Advertising Agencies
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for scope creep.
- Lack of small business participation noted.
- Short contract duration.
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 $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 specific advertising objectives does this contract aim to achieve for the Department of the Navy?
This contract likely supports a range of objectives, including enhancing public awareness of naval initiatives, recruiting efforts, public relations campaigns, and communicating key messages to target audiences. The specific goals would be detailed in the contract's statement of work, guiding the agency's strategic approach to media placement, creative development, and campaign analysis.
What are the primary risks associated with a Cost Plus Fixed Fee contract for advertising services?
The main risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs, as their fee is fixed regardless of the actual expenses incurred. This can lead to potential cost overruns if the scope of work expands or if the contractor's efficiency is low. Robust oversight and clear definition of the fixed fee are essential to mitigate this risk.
How effectively does this contract leverage competition to ensure value for taxpayer money?
The contract's award under 'full and open competition' is a strong indicator of effective competition. This process allows multiple qualified vendors to submit proposals, driving down prices and encouraging innovation. The government's ability to select the best value offering from a competitive pool maximizes the efficient use of taxpayer funds for advertising services.
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, 30328
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $28,250,807
Exercised Options: $28,250,807
Current Obligation: $21,017,206
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M0026408D0001
IDV Type: IDC
Timeline
Start Date: 2008-02-27
Current End Date: 2008-12-31
Potential End Date: 2008-12-31 00:00:00
Last Modified: 2018-10-17
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