Marine Corps Recruiting Command awarded $20.3M for advertising services to Wunderman Thompson LLC

Contract Overview

Contract Amount: $20,292,785 ($20.3M)

Contractor: Wunderman Thompson LLC

Awarding Agency: Department of Defense

Start Date: 2012-12-20

End Date: 2013-12-31

Contract Duration: 376 days

Daily Burn Rate: $54.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Other

Official Description: MARINE CORPS RECRUITING COMMAND ADVERTISING SERVICES

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.3 million to WUNDERMAN THOMPSON LLC for work described as: MARINE CORPS RECRUITING COMMAND ADVERTISING SERVICES Key points: 1. The contract value represents a significant investment in reaching potential recruits. 2. Full and open competition suggests a potentially competitive bidding process. 3. The contract duration of over a year indicates a need for sustained advertising efforts. 4. The 'COST NO FEE' contract type is unusual and warrants further investigation into its implications for performance and cost control. 5. The award to a single vendor suggests a focus on specialized advertising expertise. 6. The contract falls under the broad category of advertising agencies, a common service procurement for federal agencies.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed service scope and performance metrics. The 'COST NO FEE' (CNF) contract type, while uncommon for advertising services, implies that the contractor's profit is built into the cost of goods and services, rather than being a separate line item. This can sometimes lead to less direct cost control compared to other contract types. Comparing it to similar advertising contracts would require analyzing the specific deliverables and the market rates for those services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this method generally promotes a competitive environment, which can lead to better pricing and service offerings for the government. The open nature of the competition suggests that the Marine Corps sought the best value proposition available in the market.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and a wider range of innovative advertising solutions due to the open competition.

Public Impact

Potential recruits are the primary beneficiaries, reached through targeted advertising campaigns. The services delivered include advertising strategy, creative development, media planning, and placement. The geographic impact is national, aiming to reach individuals across the United States. The contract supports the Marine Corps' mission to maintain its recruiting strength, indirectly impacting the overall defense posture.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST NO FEE' contract type requires careful monitoring to ensure cost efficiency and prevent potential overruns.
Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness of the advertising spend.
The duration of the contract without clear break clauses could limit flexibility if campaign needs change.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contract is with a single vendor, potentially indicating a strong, specialized capability for the Marine Corps' needs.
The contract supports a critical government function: military recruitment.

Sector Analysis

The advertising industry is a significant sector supporting various government functions, including public outreach and recruitment. Federal spending on advertising agencies, classified under NAICS code 541810, encompasses a wide range of services from creative development to media buying. This contract represents a portion of the Department of Defense's broader marketing and communication efforts. Comparable spending benchmarks would typically involve analyzing other large-scale recruitment or public awareness campaigns across federal agencies.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside requirement for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by this award. The primary contractor, Wunderman Thompson LLC, would determine any subcontracting opportunities based on their own business practices and the scope of work.

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 performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Advertising and Public Relations
Military Recruitment Services
Federal Marketing and Communications Contracts

Risk Flags

Unusual contract type ('COST NO FEE') requires further scrutiny for cost control and performance implications.
Lack of specific performance metrics in summary data hinders effectiveness assessment.
Need to verify contractor's past performance on similar federal contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.3 million to WUNDERMAN THOMPSON LLC. MARINE CORPS RECRUITING COMMAND ADVERTISING SERVICES

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 $20.3 million.

What is the period of performance?

Start: 2012-12-20. End: 2013-12-31.

What is the specific nature and justification for the 'COST NO FEE' (CNF) contract type used for this advertising services award?

The 'COST NO FEE' (CNF) contract type is highly unusual for advertising services and typically implies that the contractor's profit is incorporated into the cost of the goods and services provided, rather than being a separate fee. This structure can sometimes be used in specific circumstances where direct cost-plus-fee arrangements are not feasible or desired. For advertising, it might suggest a model where the agency absorbs certain upfront costs and recoups them through the overall service price, with their profit margin embedded. The justification for using CNF would likely stem from the specific nature of the services, the perceived risks, or the desire for a simplified payment structure. However, it can also complicate performance-based oversight and cost control, as the profit element is not explicitly delineated. Further clarification from the Department of the Navy would be needed to understand the precise rationale and implications of this contract type for the Marine Corps' advertising campaign.

How does the awarded amount of $20.3 million compare to historical spending on similar advertising services by the Marine Corps or other military branches?

Comparing the $20.3 million award to historical spending requires access to detailed historical contract data for advertising services across the Marine Corps and other branches. Without specific historical figures, it's difficult to provide a direct comparison. However, large-scale advertising campaigns for recruitment or public awareness are typically multi-million dollar endeavors. The Marine Corps, like other branches, invests significantly in reaching potential recruits. This $20.3 million figure suggests a substantial, potentially multi-year campaign. To establish a benchmark, one would need to analyze average annual spending on advertising by the Marine Corps over the past 5-10 years, identify comparable contracts awarded to other military branches for similar recruitment objectives, and consider any inflationary or market-driven cost increases over time. The 'COST NO FEE' structure also adds a layer of complexity to direct cost comparisons.

What were the key performance indicators (KPIs) or success metrics outlined in the contract to measure the effectiveness of Wunderman Thompson LLC's advertising services?

The provided data does not specify the key performance indicators (KPIs) or success metrics for this contract. Typically, advertising contracts include clauses that define how performance will be measured. For a recruiting command, these metrics could include metrics such as reach, frequency, engagement rates, website traffic driven by campaigns, lead generation (e.g., information requests), and ultimately, the number of qualified leads or enlistments attributed to the advertising efforts. The 'COST NO FEE' contract type might influence how these KPIs are structured, potentially focusing more on overall campaign delivery rather than granular cost-per-action metrics. Without the full contract details, it is impossible to ascertain the specific measures used to evaluate Wunderman Thompson's effectiveness and ensure value for taxpayer money.

What is the track record of Wunderman Thompson LLC in performing federal advertising contracts, particularly those for military or large-scale recruitment efforts?

Wunderman Thompson LLC, as a large advertising agency, likely has a significant track record in both commercial and potentially government advertising. To assess their performance specifically on federal contracts, particularly for military recruitment, a review of their past federal award history would be necessary. This would involve searching federal procurement databases for previous contracts awarded to Wunderman Thompson or its predecessor entities. Key aspects to examine would include the types of services rendered (e.g., creative, media buying, strategic planning), the agencies they've served, contract values, performance ratings (if available), and any instances of contract disputes or terminations. Experience with large-scale, mission-critical campaigns like military recruitment is a strong indicator of capability, but specific details would require deeper data analysis.

Given the 'FULL AND OPEN COMPETITION' award type, how many bids were received, and what does this suggest about the level of competition for this specific advertising service requirement?

The data indicates 'FULL AND OPEN COMPETITION' but does not specify the number of bids received. This award type signifies that the Marine Corps solicited proposals from all interested and qualified sources. A high number of bids generally suggests robust competition, which can lead to more favorable pricing and innovative solutions for the government. Conversely, a low number of bids might indicate a niche market, high barriers to entry for potential bidders, or perhaps that the solicitation was highly specific. Without the exact number of proposals submitted, it's difficult to definitively assess the intensity of the competition. However, the 'full and open' designation itself implies an effort to maximize competitive opportunities, which is generally beneficial for taxpayer value.

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: Vmly and R Enterprise (UEI: 218784436)

Address: 3630 PEACHTREE RD NE STE 1200, ATLANTA, GA, 90

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,292,785

Exercised Options: $20,292,785

Current Obligation: $20,292,785

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M0026408D0001

IDV Type: IDC

Timeline