VA awards $6.5M advertising contract to Argent Arc LLC for services in Washington D.C

Contract Overview

Contract Amount: $6,485,161 ($6.5M)

Contractor: Argent ARC LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-16

End Date: 2026-05-16

Contract Duration: 242 days

Daily Burn Rate: $26.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CHOOSEVA ADVERTISING

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.5 million to ARGENT ARC LLC for work described as: CHOOSEVA ADVERTISING Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. Fixed-price contract type suggests predictable costs, but doesn't guarantee value for money. 3. Short performance period of 20 months may indicate a need for rapid deployment or a pilot program. 4. The contract's value is moderate within the federal advertising sector. 5. Focus on advertising services aligns with agency needs for public outreach and information dissemination.

Value Assessment

Rating: fair

The contract value of $6.5 million for a 20-month period appears moderate for advertising services. Without comparable sole-source contracts or detailed performance metrics, a precise value-for-money assessment is challenging. The fixed-price nature provides cost certainty but doesn't inherently ensure optimal pricing. Benchmarking against similar sole-source awards for advertising agencies of this size would be necessary for a more robust evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of Veterans Affairs did not solicit bids from multiple vendors. This approach is typically used when only one vendor can meet the specific requirements, or for urgent needs. The lack of competition means there was no opportunity to compare pricing or service offerings from other qualified agencies, potentially leading to higher costs than if it had been competed.

Taxpayer Impact: Taxpayers may not be receiving the best possible price for these advertising services due to the absence of a competitive bidding process.

Public Impact

Veterans will benefit from improved communication regarding VA programs and services. The contract supports advertising and marketing campaigns to reach target audiences. Services will be delivered primarily within the Washington D.C. metropolitan area. The contract may indirectly support jobs within the advertising and marketing industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost efficiencies.
Lack of transparency in vendor selection process due to sole-source nature.
Performance metrics and value-for-money assessment are difficult without competitive benchmarks.

Positive Signals

Fixed-price contract provides cost predictability for the agency.
Contract addresses a clear need for advertising services within the VA.
Short performance period allows for flexibility and reassessment of needs.

Sector Analysis

The federal advertising market encompasses a wide range of services, from creative development to media buying. Agencies like the VA utilize these services for public awareness campaigns, recruitment, and disseminating information about benefits and programs. While specific spending benchmarks for sole-source advertising contracts are not readily available, the overall federal spending on advertising and related services is substantial. This contract fits within the broader category of professional services procurement.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no information provided regarding subcontracting plans for small businesses. The award to a single entity may limit opportunities for small businesses to participate in delivering these advertising services.

Oversight & Accountability

Oversight will be managed by the Department of Veterans Affairs contracting officers and program managers. Transparency is limited due to the sole-source nature of the award. Accountability will be measured by the contractor's adherence to the contract terms, delivery of services, and performance against any specified metrics. There is no indication of specific Inspector General involvement at this stage, though they retain jurisdiction.

Related Government Programs

VA Marketing and Advertising Services
Federal Government Advertising Procurement
Public Information Campaigns

Risk Flags

Sole-source award may limit cost savings.
Lack of competitive bidding reduces transparency in vendor selection.
Performance metrics and value assessment require careful monitoring due to sole-source nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.5 million to ARGENT ARC LLC. CHOOSEVA ADVERTISING

Who is the contractor on this award?

The obligated recipient is ARGENT ARC LLC.

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 $6.5 million.

What is the period of performance?

Start: 2025-09-16. End: 2026-05-16.

What is the track record of Argent Arc LLC in performing federal advertising contracts?

Information regarding Argent Arc LLC's specific track record with federal advertising contracts is not detailed in the provided data. As this is a sole-source award, it suggests the VA may have identified specific capabilities or past performance that led them to select this particular vendor. Further investigation into the contractor's past performance, client testimonials, and any publicly available contract history would be necessary to fully assess their capabilities and reliability in fulfilling federal requirements. Without this, it's difficult to gauge their experience level and success rate in similar engagements.

How does the pricing of this contract compare to similar sole-source advertising awards?

Direct comparison of pricing for this $6.5 million, 20-month sole-source contract to similar awards is challenging without access to a broader dataset of sole-source advertising procurements. Sole-source awards inherently lack the price discovery mechanism of open competition. The Department of Veterans Affairs likely conducted some form of internal price analysis or relied on historical pricing data for Argent Arc LLC. However, without knowing the specific scope of work, deliverables, and market rates for comparable sole-source engagements, it's difficult to definitively state whether this contract represents excellent, fair, or questionable value from a pricing perspective.

What are the primary risks associated with a sole-source award for advertising services?

The primary risks associated with a sole-source award for advertising services include a lack of competitive pricing, potentially leading to overpayment for services. There's also a risk of reduced innovation and service quality, as the vendor may face less pressure to exceed expectations compared to a competitive environment. Furthermore, the absence of a competitive process can raise concerns about transparency and fairness in vendor selection. The agency might also miss out on discovering new, potentially more effective or efficient advertising solutions offered by other firms.

How effective is the Department of Veterans Affairs in managing advertising contracts to ensure program goals are met?

The effectiveness of the Department of Veterans Affairs in managing advertising contracts is typically assessed through the achievement of campaign objectives, such as increased awareness of services, improved veteran engagement, or successful recruitment efforts. While this specific contract's effectiveness cannot be determined yet, the VA generally has established procurement and program management processes. However, the sole-source nature of this award places a greater emphasis on the VA's internal oversight and performance monitoring capabilities to ensure the contractor delivers value and meets the intended public impact goals.

What is the historical spending pattern of the VA on advertising services?

Historical spending patterns of the Department of Veterans Affairs on advertising services can vary significantly year over year, influenced by agency priorities, budget allocations, and specific outreach campaigns. While this $6.5 million contract represents a notable investment, understanding the VA's broader historical spending requires analyzing procurement data over several fiscal years. This would reveal trends in contract values, types of services procured (e.g., digital, traditional media), and the mix of competitive versus sole-source awards, providing context for the current contract's scale and nature.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C10X25Q0132

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 110 N ROYAL ST FL 400, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $6,485,161

Exercised Options: $6,485,161

Current Obligation: $6,485,161

Actual Outlays: $3,070,346

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline