VA Awards $6.36M for Donated Media Campaign Development to Advertising Council Inc

Contract Overview

Contract Amount: $6,358,176 ($6.4M)

Contractor: THE Advertising Council Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-28

End Date: 2026-09-27

Contract Duration: 1,095 days

Daily Burn Rate: $5.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE OBJECTIVE OF THIS REQUIREMENT IS TO CONTINUE DEVELOPMENT, IMPLEMENTATION, AND ASSESSMENT OF NEW ASSETS FOR A LARGE-SCALE, FULLY INTEGRATED, DONATED MEDIA PUBLIC SERVICE CAMPAIGN THAT SUPPORTS SPP.

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10017

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.4 million to THE ADVERTISING COUNCIL INC for work described as: THE OBJECTIVE OF THIS REQUIREMENT IS TO CONTINUE DEVELOPMENT, IMPLEMENTATION, AND ASSESSMENT OF NEW ASSETS FOR A LARGE-SCALE, FULLY INTEGRATED, DONATED MEDIA PUBLIC SERVICE CAMPAIGN THAT SUPPORTS SPP. Key points: 1. Significant investment in public service campaign development. 2. Sole-source award to Advertising Council Inc. raises competition concerns. 3. Long-term contract (3 years) for ongoing asset creation and assessment. 4. Focus on donated media suggests potential for cost-effective reach.

Value Assessment

Rating: fair

The contract value of $6.36 million over three years for advertising services appears high, especially given the 'donated media' aspect. Benchmarking against similar public service campaign development contracts is difficult without more detail on the scope and deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to a higher cost than if multiple vendors had competed for the work.

Taxpayer Impact: The use of taxpayer funds for a sole-source contract warrants scrutiny to ensure value for money, particularly as the campaign aims to support SPP.

Public Impact

Public service campaigns can raise awareness and promote important causes. The effectiveness of donated media relies heavily on strategic placement and audience engagement. Transparency in sole-source awards is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value for donated media focus

Positive Signals

Supports a public service campaign
Long-term development and assessment

Sector Analysis

Advertising agencies in the IT sector (NAICS 541810) provide a range of marketing and advertising services. Spending in this sector can vary widely based on campaign scope and media channels used.

Small Business Impact

The contract was awarded to The Advertising Council Inc., a non-profit organization. There is no indication of small business participation in this sole-source award.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight to ensure the funds are used effectively and that the campaign objectives are met. Accountability for campaign performance will be key.

Related Government Programs

Advertising Agencies
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award limits competition and price discovery.
High contract value may not reflect the 'donated media' aspect.
Lack of clear performance metrics could hinder accountability.
Potential for cost overruns without competitive pressure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.4 million to THE ADVERTISING COUNCIL INC. THE OBJECTIVE OF THIS REQUIREMENT IS TO CONTINUE DEVELOPMENT, IMPLEMENTATION, AND ASSESSMENT OF NEW ASSETS FOR A LARGE-SCALE, FULLY INTEGRATED, DONATED MEDIA PUBLIC SERVICE CAMPAIGN THAT SUPPORTS SPP.

Who is the contractor on this award?

The obligated recipient is THE ADVERTISING COUNCIL INC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $6.4 million.

What is the period of performance?

Start: 2023-09-28. End: 2026-09-27.

What specific metrics will be used to assess the success and value of the donated media campaign?

The success of the campaign will likely be measured by reach, engagement, and the achievement of specific public service objectives related to SPP. Key performance indicators should be clearly defined in the contract to ensure accountability and demonstrate the return on investment for the taxpayer funds allocated.

What is the justification for awarding this contract on a sole-source basis, and what due diligence was performed?

The justification for a sole-source award typically involves unique capabilities or circumstances. For this contract, the VA would need to demonstrate why The Advertising Council Inc. is the only entity capable of fulfilling the requirement, and that competitive bidding was not feasible or advantageous.

How will the effectiveness of the 'donated media' be tracked and maximized to ensure efficient use of funds?

Effectiveness will be tracked through media monitoring, audience analytics, and campaign performance reports. Maximizing donated media involves strategic partnerships with media outlets and a data-driven approach to placement and content to ensure the widest and most impactful reach for the campaign's message.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Advertising, Public Relations, and Related Services › Advertising Agencies

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C10X23Q0321

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 815 2ND AVE, NEW YORK, NY, 10017

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,358,176

Exercised Options: $6,358,176

Current Obligation: $6,358,176

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline