DoD's $19.8M Advertising Contract Awarded to Wunderman Thompson LLC

Contract Overview

Contract Amount: $19,816,108 ($19.8M)

Contractor: Wunderman Thompson LLC

Awarding Agency: Department of Defense

Start Date: 2008-08-27

End Date: 2008-12-31

Contract Duration: 126 days

Daily Burn Rate: $157.3K/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 $19.8 million to WUNDERMAN THOMPSON LLC for work described as: MCRC ADVERTISING SERVICES; BASE YEAR Key points: 1. Contract value: $19.8 million for base year advertising services. 2. Competition: Awarded under full and open competition. 3. Risk: Cost-plus fixed fee contract type may pose cost escalation risks. 4. Sector: Advertising services within the Department of Defense.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to higher costs compared to fixed-price contracts if not managed carefully. Benchmarking against similar advertising contracts is difficult without more detailed service scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the CPFF structure might not have fully optimized price discovery for all service components.

Taxpayer Impact: Taxpayer funds are used for advertising services, with potential for cost overruns due to the CPFF contract type.

Public Impact

Public funds are allocated for advertising campaigns by the Department of Defense. The contract supports marketing and outreach efforts for the Navy. Transparency in spending is maintained through the competitive award process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus fixed fee contract type
Limited visibility into specific service deliverables for benchmarking

Positive Signals

Awarded under full and open competition
Clear contract duration and base year value

Sector Analysis

This contract falls within the advertising and marketing sector, specifically for government agency outreach. Benchmarks for government advertising contracts vary widely based on scope and agency.

Small Business Impact

The data does not indicate if small businesses were involved as subcontractors or prime contractors in this award.

Oversight & Accountability

Oversight would typically involve monitoring contract performance, expenditures, and adherence to terms by the Department of the Navy contracting officers.

Related Government Programs

Advertising Agencies
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPFF structure
Lack of detailed performance metrics in summary data
Difficulty in benchmarking without granular service details
No indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.8 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 $19.8 million.

What is the period of performance?

Start: 2008-08-27. End: 2008-12-31.

What is the expected return on investment for this $19.8 million advertising spend?

The return on investment (ROI) for this advertising contract is not explicitly detailed in the provided data. Measuring ROI for government advertising campaigns can be complex, often involving metrics like public awareness, engagement, recruitment numbers, or policy understanding, rather than direct financial returns. A thorough assessment would require specific campaign objectives and post-campaign analysis.

What are the specific deliverables and performance metrics tied to the Cost Plus Fixed Fee structure?

The provided data does not detail the specific deliverables or performance metrics associated with this CPFF contract. Typically, CPFF contracts require detailed statements of work, milestones, and reporting requirements. The 'plus' portion covers allowable costs, while the 'fixed fee' is the contractor's profit, negotiated upfront. Effective oversight is crucial to manage costs and ensure value.

How does the pricing of this contract compare to industry standards for similar government advertising services?

Directly comparing the pricing is challenging without a detailed breakdown of services rendered under the $19.8 million contract. However, the use of a Cost Plus Fixed Fee structure, while common for complex or evolving scopes, can sometimes lead to higher overall costs compared to fixed-price contracts if cost controls are not stringent. Benchmarking would require access to similar contract scopes and pricing models.

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

Solicitation ID: M0026407R0009

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: $19,816,108

Exercised Options: $19,816,108

Current Obligation: $19,816,108

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M0026408D0001

IDV Type: IDC

Timeline