Marine Corps Recruiting Command Advertising Services contract awarded to Wunderman Thompson LLC for over $40.5 million

Contract Overview

Contract Amount: $40,552,681 ($40.6M)

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: $107.9K/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 $40.6 million to WUNDERMAN THOMPSON LLC for work described as: MARINE CORPS RECRUITING COMMAND ADVERTISING SERVICES Key points: 1. The contract value of over $40.5 million represents a significant investment in advertising services for the Marine Corps. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The duration of the contract was 376 days, indicating a relatively short-term engagement for this service. 4. The contract type 'COST NO FEE' suggests that the contractor is reimbursed for allowable costs without an additional fee. 5. The North American Industry Classification System (NAICS) code 541810 points to the advertising agencies sector. 6. The contract was awarded by the Department of the Navy, a component of the Department of Defense.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more granular data on the services provided and their effectiveness. The 'COST NO FEE' contract type can sometimes lead to less price discipline compared to fixed-price contracts. However, the absence of a fee might indicate a focus on cost recovery for the contractor. Further analysis would require comparing the cost per deliverable or campaign against industry standards for similar government advertising efforts.

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. This suggests a competitive environment where multiple advertising agencies likely vied for the contract. The number of bidders is not specified, but the open competition generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of proposals and can lead to more competitive pricing, ensuring that taxpayer funds are used efficiently.

Public Impact

The primary beneficiaries of this contract are the United States Marine Corps, who receive advertising and recruiting support. The services delivered include advertising campaigns aimed at recruiting new personnel into the Marine Corps. The geographic impact is national, as the Marine Corps recruits across the United States. Workforce implications include support for the advertising industry through the contractor and potential indirect impacts on media outlets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST NO FEE' contract type can sometimes lead to less incentive for cost control by the contractor.
Limited duration of 376 days might suggest a need for frequent re-competition or contract modifications.
Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness of the advertising spend.
The raw dollar amount, while significant, needs to be contextualized with the scope and reach of the recruiting campaigns.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
The contract is managed by the Department of the Navy, a reputable agency within the Department of Defense.
The contractor, Wunderman Thompson LLC, is a known entity in the advertising industry.

Sector Analysis

The advertising industry is a dynamic sector encompassing a wide range of services from creative development to media buying. Government contracts for advertising are crucial for public outreach, recruitment, and public service announcements. This contract fits within the broader category of professional services, specifically marketing and advertising. Comparable spending benchmarks would involve looking at other large-scale government recruitment campaigns or major corporate advertising budgets.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus was on full and open competition. There is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether Wunderman Thompson LLC engages small businesses as subcontractors, which is not detailed here.

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 tied to the contract's performance clauses and deliverables. Transparency is generally facilitated by the Federal Procurement Data System (FPDS), where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Advertising Contracts
Marine Corps Recruiting Initiatives
Federal Advertising Services
Government Marketing Campaigns

Risk Flags

Cost-Reimbursement Contract Type
Limited Contract Duration
Lack of Specific Performance Metrics
Potential for Cost Overruns with Cost-Plus Contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.6 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 $40.6 million.

What is the period of performance?

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

What specific advertising services were included under this contract?

The provided data does not detail the specific advertising services rendered under this contract. Typically, advertising agency contracts encompass a broad spectrum of activities including market research, campaign strategy development, creative concepting and execution (e.g., digital ads, print, video), media planning and buying, public relations, and performance tracking. For the Marine Corps Recruiting Command, these services would be tailored to attract and enlist qualified candidates, likely involving digital marketing, social media engagement, traditional media placements, and potentially event sponsorships or outreach programs.

How does the $40.5 million contract value compare to previous or subsequent advertising contracts for the Marine Corps?

Without access to historical or future contract data for the Marine Corps Recruiting Command's advertising services, a direct comparison of the $40.5 million value is not possible. However, government recruiting and public affairs advertising can represent substantial investments. The value of this contract should be assessed in the context of the Marine Corps' overall recruiting goals, target demographics, and the prevailing costs of advertising media and services during the contract period (2012-2013). Larger recruiting efforts or shifts in media strategy could lead to significant variations in contract values over time.

What were the key performance indicators (KPIs) for this contract, and how was performance measured?

The provided data does not specify the Key Performance Indicators (KPIs) or performance measurement criteria for this contract. Typically, advertising contracts for recruiting would include metrics related to campaign reach, engagement rates, lead generation (e.g., inquiries from potential recruits), cost per lead, and ultimately, the number of qualified applicants or enlistments attributed to the campaigns. Performance would likely be assessed through regular reporting by the contractor and periodic reviews by the contracting officer's representative (COR) or technical point of contact.

What is the significance of the 'COST NO FEE' (Cost-Reimbursement, No Fee) contract type in terms of contractor incentives and government oversight?

The 'COST NO FEE' contract type means the contractor is reimbursed for all allowable costs incurred in performing the contract, but receives no additional profit or fee. This type of contract is generally used when the scope of work is not well-defined or when there is significant uncertainty, making it difficult to establish a fixed price. For the government, it shifts the risk of cost overruns to the agency. For the contractor, the primary incentive is cost recovery rather than profit maximization, which can sometimes lead to less stringent cost control. Government oversight is crucial to ensure that all costs claimed are reasonable, allocable, and allowable.

What is the typical duration for advertising services contracts with the Department of Defense, and how does this contract's duration compare?

The duration of advertising services contracts with the Department of Defense can vary significantly based on the specific needs and strategic objectives. Contracts can range from short-term project-based efforts to multi-year strategic partnerships. This contract, with a duration of 376 days (approximately one year), is relatively short for a comprehensive advertising services agreement. Many large-scale government advertising campaigns are structured with longer base periods and option years to ensure continuity and leverage established relationships, or they might be re-competed annually or biennially.

How does the NAICS code 541810 (Advertising Agencies) inform our understanding of the services provided and the market landscape?

The North American Industry Classification System (NAICS) code 541810 specifically identifies 'Advertising Agencies.' This classification confirms that the contract was awarded to a firm whose primary business is creating, planning, and placing advertising. This includes services such as developing advertising campaigns, writing and designing advertisements, media planning and buying across various channels (digital, print, broadcast), and market research related to advertising effectiveness. Understanding this NAICS code helps contextualize the contract within the broader professional services sector and the specific market of advertising and marketing firms that serve government clients.

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: $41,052,681

Exercised Options: $41,052,681

Current Obligation: $40,552,681

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M0026408D0001

IDV Type: IDC

Timeline