DoD's $14.2M advertising contract awarded to Wunderman Thompson LLC for MCRC services

Contract Overview

Contract Amount: $14,248,707 ($14.2M)

Contractor: Wunderman Thompson LLC

Awarding Agency: Department of Defense

Start Date: 2008-12-09

End Date: 2009-11-30

Contract Duration: 356 days

Daily Burn Rate: $40.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Other

Official Description: MCRC ADVERTISING SERVICES; OPTION ONE

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30328

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $14.2 million to WUNDERMAN THOMPSON LLC for work described as: MCRC ADVERTISING SERVICES; OPTION ONE Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract duration of 356 days indicates a focused, short-term need for advertising services. 3. Awarded as a 'Cost No Fee' type, which typically means the government reimburses allowable costs without an additional fee. 4. The contract was awarded by the Department of the Navy, a significant component of the Department of Defense. 5. The North American Industry Classification System (NAICS) code 541810 points to standard advertising agency services. 6. The contract was awarded in late 2008, potentially reflecting advertising needs during that period.

Value Assessment

Rating: fair

Benchmarking the value of this $14.2 million contract is challenging without more detailed service descriptions and performance metrics. The 'Cost No Fee' award type suggests that the government is primarily covering direct costs associated with the advertising services. Without knowing the specific deliverables and their market rates, it's difficult to definitively assess value for money. However, the fact that it was competed broadly implies some level of price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open nature of the competition suggests the Department of the Navy sought to leverage the broadest possible market for its advertising needs.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and innovative solutions, maximizing the return on public funds.

Public Impact

The primary beneficiary of this contract is the Department of Defense, specifically the Department of the Navy, for its advertising and marketing initiatives. The services delivered likely include advertising campaign development, media planning and buying, creative services, and market research. The geographic impact is likely national, given the nature of advertising campaigns, though specific target audiences may be regional or local. Workforce implications could include employment opportunities within the contractor's organization and potentially within advertising agencies that support Wunderman Thompson LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness and efficiency of the advertising services.
The 'Cost No Fee' structure requires careful monitoring of allowable costs to ensure no overspending.
Limited information on the specific objectives of the MCRC advertising services hinders a full understanding of the contract's strategic importance.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The contractor, Wunderman Thompson LLC, is a known entity in the advertising industry, suggesting a level of established capability.
The contract was awarded by a major federal agency (Department of Defense), implying adherence to stringent procurement standards.

Sector Analysis

The advertising industry is a dynamic sector encompassing a wide range of services from creative development to media placement. Federal agencies, including the Department of Defense, frequently engage advertising firms to communicate messages to various audiences, whether for recruitment, public awareness, or specific campaigns. The market size for federal advertising contracts is substantial, with agencies across the government utilizing these services. This contract fits within the broader category of professional services procurement, where agencies seek specialized expertise.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications mandated by small business set-aside provisions. The primary contractor, Wunderman Thompson LLC, would have had the discretion to engage subcontractors, but this was not driven by a small business goal within the contract itself. The impact on the small business ecosystem is therefore indirect, depending on the contractor's own subcontracting decisions.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be defined in the contract's terms and conditions, likely including reporting requirements and performance standards. Transparency is generally facilitated through the Federal Procurement Data System (FPDS), where contract awards are recorded. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Advertising and Public Affairs
Military Recruitment Advertising
Federal Agency Marketing and Communications Contracts
General Services Administration (GSA) Professional Services Schedules

Risk Flags

Lack of detailed performance metrics.
Limited information on competition specifics (number of bidders).
Contract type ('Cost No Fee') requires diligent cost oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.2 million to WUNDERMAN THOMPSON LLC. MCRC ADVERTISING SERVICES; OPTION ONE

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 $14.2 million.

What is the period of performance?

Start: 2008-12-09. End: 2009-11-30.

What were the specific objectives and target audiences for the MCRC advertising services under this contract?

The specific objectives and target audiences for the MCRC (likely Marine Corps Recruiting Command) advertising services under this contract are not detailed in the provided data. Typically, such contracts aim to support recruitment efforts, enhance public perception of the Marine Corps, or communicate specific messages to potential recruits, their families, and the general public. The strategies employed would likely involve a mix of digital, print, and broadcast media tailored to demographic profiles relevant to military service.

How does the 'Cost No Fee' (PT: COST NO FEE) contract type influence the government's oversight and the contractor's incentives?

The 'Cost No Fee' contract type means the government agrees to reimburse the contractor for all legitimate, allowable, and allocable costs incurred in performing the contract, but the contractor does not receive any additional profit or fee. This structure places a strong emphasis on the government's ability to meticulously audit and verify the costs submitted by the contractor. For the contractor, the incentive is to manage costs efficiently to ensure reimbursement, as there is no financial reward beyond covering their expenses. This can sometimes lead to less focus on innovation or exceeding performance expectations compared to contracts with profit margins.

What is the typical range for advertising agency contracts of this magnitude within the federal government?

Federal advertising agency contracts can vary significantly in value, from small, project-specific awards to large, multi-year Indefinite Delivery/Indefinite Quantity (IDIQ) contracts. A $14.2 million contract for a single period of performance (356 days) is a substantial award, suggesting a significant campaign or ongoing advertising need. Comparable contracts often involve comprehensive services including strategy, creative development, media buying, and performance analysis. Agencies like the Department of Defense, with broad public outreach and recruitment needs, are major spenders in this category.

What does the award date (SD: 2008-12-09) suggest about the context of this contract?

The award date of December 9, 2008, places this contract in the midst of a significant global economic downturn (the Great Recession). Federal agencies often adjust their spending and communication strategies during such periods. This contract might have been initiated to address specific needs arising from the economic climate, or it could represent a continuation of established advertising programs. The timing could also be relevant to military operations or recruitment challenges prevalent at that time.

How does the NAICS code 541810 (Advertising Agencies) define the scope of services expected under this contract?

The NAICS code 541810, 'Advertising Agencies,' defines the primary business activity for this contract. This classification typically encompasses establishments primarily engaged in creating advertising campaigns and placing such advertisements in periodicals, newspapers, radio and television stations, digital media, and other media outlets. Services often include account management, market research, media planning and buying, creative strategy, copywriting, graphic design, and production of advertising materials.

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 NO FEE (S)

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: $14,248,707

Exercised Options: $14,248,707

Current Obligation: $14,248,707

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M0026408D0001

IDV Type: IDC

Timeline