DoD's $74.8M Advertising Contract Awarded to Wunderman Thompson LLC
Contract Overview
Contract Amount: $74,865,456 ($74.9M)
Contractor: Wunderman Thompson LLC
Awarding Agency: Department of Defense
Start Date: 2009-11-24
End Date: 2010-11-30
Contract Duration: 371 days
Daily Burn Rate: $201.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: MCRC ADVERTISING ODC
Place of Performance
Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $74.9 million to WUNDERMAN THOMPSON LLC for work described as: MCRC ADVERTISING ODC Key points: 1. Contract value of $74.8M for advertising services. 2. Awarded to Wunderman Thompson LLC. 3. Competition type: Full and Open. 4. Sector: Advertising Agencies (NAICS 541810).
Value Assessment
Rating: fair
The contract is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. The awarded amount of $74.8M for a one-year duration needs to be benchmarked against similar large-scale advertising campaigns to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the Cost Plus Fixed Fee structure requires diligent oversight to ensure costs remain reasonable.
Taxpayer Impact: Taxpayer funds are utilized for advertising services, with the efficiency of spending dependent on effective campaign execution and cost control.
Public Impact
Public funds are being used for advertising campaigns, potentially influencing public perception. The contract supports a large advertising agency, contributing to the marketing and communications sector. Transparency in how the funds are spent and the effectiveness of the advertising is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure can incentivize higher spending.
- Lack of specific performance metrics in provided data.
- Potential for scope creep in advertising campaigns.
Positive Signals
- Full and open competition ensures a broad range of potential bidders.
- Award to an established agency may indicate capability.
Sector Analysis
This contract falls within the Advertising Agencies sector (NAICS 541810). Spending in this sector can vary widely based on agency size, campaign scope, and media channels used. Benchmarking requires comparison with other government or large corporate advertising contracts.
Small Business Impact
The data indicates this contract was not awarded to a small business. There is no information on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The Cost Plus Fixed Fee contract type necessitates strong government oversight to monitor costs, ensure efficient resource allocation, and verify that the services provided align with the contract's objectives.
Related Government Programs
- Advertising Agencies
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee structure can lead to cost overruns.
- Potential for insufficient oversight on contractor spending.
- Lack of clear performance metrics in the provided data.
- No indication of small business participation.
Tags
advertising-agencies, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $74.9 million to WUNDERMAN THOMPSON LLC. MCRC ADVERTISING ODC
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 $74.9 million.
What is the period of performance?
Start: 2009-11-24. End: 2010-11-30.
How does the $74.8M cost compare to similar-sized advertising campaigns for government agencies or large corporations?
Benchmarking this $74.8M contract requires detailed comparison with similar government or large corporate advertising campaigns. Factors like campaign duration, scope (e.g., national vs. regional), media mix, and specific objectives (e.g., recruitment, public awareness) are critical. Without this context, it's difficult to definitively assess if the cost represents good value for money.
What are the specific performance metrics and deliverables tied to this Cost Plus Fixed Fee contract to mitigate risk?
The effectiveness of a Cost Plus Fixed Fee contract hinges on clearly defined performance metrics and deliverables. For this advertising contract, metrics could include campaign reach, engagement rates, message recall, or specific action conversions. Robust oversight is needed to ensure the agency meets these targets and that the fixed fee accurately reflects the value delivered, mitigating risks of cost overruns and underperformance.
How will the effectiveness of the advertising campaigns funded by this contract be measured and reported?
Measuring advertising effectiveness is crucial for justifying public expenditure. This involves tracking key performance indicators (KPIs) relevant to the campaign's goals, such as brand awareness lift, website traffic, lead generation, or public opinion shifts. Regular reporting by the contractor and independent evaluation by the agency are essential to determine the return on investment and inform future spending decisions.
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: $74,865,456
Exercised Options: $74,865,456
Current Obligation: $74,865,456
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M0026408D0001
IDV Type: IDC
Timeline
Start Date: 2009-11-24
Current End Date: 2010-11-30
Potential End Date: 2010-11-30 00:00:00
Last Modified: 2010-12-03
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