Treasury's $29.8M Advertising Services Contract with True North Communications Inc. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $29,774,953 ($29.8M)
Contractor: True North Communications Inc
Awarding Agency: Department of the Treasury
Start Date: 2011-06-01
End Date: 2012-09-30
Contract Duration: 487 days
Daily Burn Rate: $61.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ADVERTISING SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20503
Plain-Language Summary
Department of the Treasury obligated $29.8 million to TRUE NORTH COMMUNICATIONS INC for work described as: ADVERTISING SERVICES Key points: 1. The contract value of $29.8 million for advertising services is significant. 2. True North Communications Inc. is the sole awardee for this contract. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The Public Relations Agencies (NAICS 541820) sector is characterized by diverse service offerings and varying contract values.
Value Assessment
Rating: fair
The contract value of $29.8 million is substantial for advertising services. Benchmarking against similar contracts would be necessary to assess if this represents a fair price, as pricing in this sector can vary widely based on scope and deliverables.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offering.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for advertising services, potentially leading to cost savings compared to non-competitive methods.
Public Impact
Government advertising campaigns aim to inform the public about services, regulations, or initiatives. Effective advertising can lead to increased public engagement and compliance with government programs. The use of a single vendor for a large contract raises questions about potential over-reliance or missed opportunities for broader market engagement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with a single awardee.
- Limited visibility into the specific deliverables and their effectiveness.
- Contract duration and value may warrant closer scrutiny for performance.
Positive Signals
- Awarded under full and open competition.
- Clear contract type (Firm Fixed Price) for cost certainty.
- Contract duration aligns with potential campaign needs.
Sector Analysis
The advertising and public relations sector is dynamic, with contract values varying greatly depending on the agency's needs and the scope of services. Benchmarks for similar government contracts in this sector are essential for evaluating cost-effectiveness.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or if this contract specifically targeted small business participation. Further analysis would be needed to determine the impact on small businesses.
Oversight & Accountability
The contract was awarded by the Bureau of the Fiscal Service within the Department of the Treasury. Oversight would typically involve contract performance monitoring and financial accountability measures to ensure services are delivered as specified and funds are used appropriately.
Related Government Programs
- Public Relations Agencies
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Significant contract value warrants detailed performance review.
- Sole awardee may limit future competitive options.
- Lack of explicit small business participation data.
- Effectiveness metrics and ROI analysis are crucial for validation.
Tags
public-relations-agencies, department-of-the-treasury, dc, bpa, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $29.8 million to TRUE NORTH COMMUNICATIONS INC. ADVERTISING SERVICES
Who is the contractor on this award?
The obligated recipient is TRUE NORTH COMMUNICATIONS INC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).
What is the total obligated amount?
The obligated amount is $29.8 million.
What is the period of performance?
Start: 2011-06-01. End: 2012-09-30.
What specific advertising services were procured under this contract, and how do they align with the Bureau of the Fiscal Service's mission?
The contract was for advertising services, categorized under Public Relations Agencies (NAICS 541820). Specific deliverables would likely include campaign strategy, creative development, media placement, and performance analysis. These services would align with the Bureau's mission by supporting public outreach for financial programs, debt management, or other government initiatives requiring public awareness and engagement.
Given the $29.8 million value, what was the competitive landscape like, and were there any concerns about True North Communications Inc.'s qualifications?
The contract was awarded under 'FULL AND OPEN COMPETITION,' suggesting multiple bids were received. While this indicates a competitive process, a deeper dive into the number of bidders and the evaluation criteria would reveal the intensity of competition. Concerns about qualifications are typically addressed during the source selection process; the award itself implies True North met the required standards.
How was the effectiveness of the advertising services measured, and what was the ultimate return on investment for taxpayer dollars?
Measuring effectiveness would depend on the specific goals of the advertising campaigns (e.g., increased participation in a program, improved public understanding). Key Performance Indicators (KPIs) should have been established in the contract. A thorough analysis of campaign metrics, public response, and achievement of objectives would be needed to determine the return on investment for taxpayer funds.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Advertising, Public Relations, and Related Services › Public Relations Agencies
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Interpublic Group of Companies Inc (UEI: 006985790)
Address: 150 E 42ND ST, NEW YORK, NY, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,774,953
Exercised Options: $29,774,953
Current Obligation: $29,774,953
Parent Contract
Parent Award PIID: TPDNDCBPA100001
IDV Type: BPA
Timeline
Start Date: 2011-06-01
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2014-08-28
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