DOT awards $131.7M for marketing services to StrataComm, LLC under full and open competition

Contract Overview

Contract Amount: $131,736,449 ($131.7M)

Contractor: Stratacomm, LLC

Awarding Agency: Department of Transportation

Start Date: 2024-09-30

End Date: 2029-03-04

Contract Duration: 1,616 days

Daily Burn Rate: $81.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: OBTAIN NATIONAL AND REGIONAL MARKETING AND COMMUNICATION SERVICES AS A TASK ORDER UNDER 693JJ924R000013.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $131.7 million to STRATACOMM, LLC for work described as: OBTAIN NATIONAL AND REGIONAL MARKETING AND COMMUNICATION SERVICES AS A TASK ORDER UNDER 693JJ924R000013. Key points: 1. The contract value represents a significant investment in national and regional marketing and communication efforts. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The contract duration of over 5 years indicates a long-term need for these services. 4. The task order structure implies it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The use of Time and Materials pricing requires careful monitoring to ensure cost control. 6. The National Highway Traffic Safety Administration (NHTSA) is the primary beneficiary of these services.

Value Assessment

Rating: good

The contract value of $131.7 million over approximately 5.3 years averages to about $24.8 million annually. Benchmarking this against similar large-scale federal marketing and communication contracts is challenging without more specific service details. However, the scale suggests a substantial requirement. The Time and Materials (T&M) pricing structure, while flexible, necessitates diligent oversight to prevent cost overruns and ensure value for money, as it can be less predictable than fixed-price contracts. The award to StrataComm, LLC under full and open competition implies a competitive process that should have yielded a reasonable price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the designation suggests a competitive environment. Full and open competition is generally expected to foster price discovery and encourage contractors to offer their best pricing and technical solutions to win the award. This approach aims to maximize value for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that is designed to secure the most advantageous pricing and terms for the government, potentially reducing overall expenditure compared to less competitive procurement methods.

Public Impact

The public benefits from enhanced national and regional marketing and communication campaigns related to traffic safety initiatives. Services delivered include advertising, public relations, and other communication strategies to inform and influence public behavior. The geographic impact is national, with potential for regional targeting based on specific campaign needs. The contract supports a workforce involved in marketing, advertising, public relations, and communication strategy development and execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) pricing structure can lead to cost uncertainty if not closely managed.
Lack of specific bidder count makes it difficult to fully assess the intensity of competition.
The long contract duration requires ongoing performance monitoring to ensure continued value and effectiveness.

Positive Signals

Awarded under full and open competition, suggesting a fair and competitive process.
The contract supports critical public safety initiatives through communication and marketing.
The task order is part of a larger IDIQ, potentially indicating established contract vehicles and processes.

Sector Analysis

The advertising and public relations industry (NAICS 541810) is a significant sector within the professional, scientific, and technical services industry. Federal agencies frequently contract for these services to conduct public awareness campaigns, disseminate information, and promote government initiatives. The total federal spending on advertising and related services can fluctuate annually but represents a consistent need for communication expertise. This contract fits within the broader landscape of federal marketing and communication efforts, supporting the Department of Transportation's mission.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, StrataComm, LLC, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Highway Traffic Safety Administration (NHTSA) contracting officers and program managers. The task order structure under an IDIQ typically involves defined reporting requirements and performance metrics. Transparency is facilitated through federal procurement databases like FPDS. Accountability measures will be tied to the performance standards outlined in the contract and the task order. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Marketing and Advertising Services
Public Awareness Campaigns
Department of Transportation Communications
National Highway Traffic Safety Administration Programs
Indefinite-Delivery/Indefinite-Quantity (IDIQ) Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Need for robust performance monitoring over the 5+ year contract duration.
Ensuring effective communication strategies reach target audiences.
Measuring the tangible impact of marketing campaigns on public safety outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $131.7 million to STRATACOMM, LLC. OBTAIN NATIONAL AND REGIONAL MARKETING AND COMMUNICATION SERVICES AS A TASK ORDER UNDER 693JJ924R000013.

Who is the contractor on this award?

The obligated recipient is STRATACOMM, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (National Highway Traffic Safety Administration).

What is the total obligated amount?

The obligated amount is $131.7 million.

What is the period of performance?

Start: 2024-09-30. End: 2029-03-04.

What is StrataComm, LLC's track record with federal contracts, particularly in marketing and communications?

StrataComm, LLC has a history of receiving federal contracts. While specific details on their past performance in marketing and communications require a deeper dive into contract databases, their selection for this significant task order suggests they have met the government's requirements in previous engagements or possess the necessary qualifications. Analyzing their past contract awards, performance reviews (if publicly available), and any past performance issues would provide a clearer picture of their reliability and expertise in delivering similar services. A review of their contract history would reveal the types of agencies they have served and the scope of work previously undertaken.

How does the $131.7 million contract value compare to similar federal marketing and communication contracts?

The $131.7 million contract value for national and regional marketing and communication services is substantial. Federal agencies regularly procure marketing and advertising services, but the scale of this award suggests a comprehensive, long-term campaign or a series of significant initiatives. Comparing it directly requires identifying contracts with similar scope, duration, and service offerings. However, it is indicative of a major federal effort in public outreach and safety messaging, likely placing it among the larger awards in this category. The annual average of approximately $24.8 million warrants comparison with other large-scale federal advertising buys.

What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract?

The primary risk with a Time and Materials (T&M) pricing structure is the potential for cost escalation if not managed rigorously. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and material costs incurred. This can lead to budget uncertainty and potentially higher overall costs if the scope of work expands or if labor hours are not efficiently utilized. For taxpayers, this means the final cost could exceed initial estimates. Effective oversight, detailed record-keeping, and clear definition of 'materials' and 'labor categories' are crucial to mitigate these risks and ensure fair pricing.

How effective are federal marketing and communication contracts in achieving their stated public safety goals?

The effectiveness of federal marketing and communication contracts in achieving public safety goals is multifaceted and depends heavily on campaign design, execution, target audience engagement, and the specific behavior being influenced. Contracts like this one for NHTSA aim to raise awareness, educate the public, and promote safer practices. Success is often measured through metrics such as changes in public knowledge, attitudes, reported behaviors, and ultimately, reductions in accidents or fatalities. While challenging to isolate the impact of a single campaign, well-executed, data-driven communication strategies have historically shown positive results in areas like seatbelt usage, drunk driving prevention, and distracted driving awareness.

What are the historical spending patterns for marketing and communication services by the Department of Transportation?

Historical spending patterns for marketing and communication services by the Department of Transportation (DOT) indicate a consistent need for these services to support its various agencies and initiatives, particularly those focused on public safety and infrastructure awareness. While specific annual figures fluctuate based on program priorities and campaign needs, DOT agencies like NHTSA regularly allocate significant funds to advertising and public relations. Analyzing past DOT spending on similar contracts would reveal trends in contract values, types of services procured, and the primary agencies utilizing these services, providing context for the current $131.7 million award.

What is the significance of this contract being a task order under an IDIQ contract?

This contract being a task order under an Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract signifies that it is one of potentially many orders placed against a pre-established contract vehicle. IDIQs are used by agencies to streamline the procurement of services that are expected to be needed over a period of time but where the exact quantity and timing are not known in advance. This approach allows for faster ordering and can provide pre-negotiated pricing and terms. For taxpayers, it can lead to efficiencies and potentially better pricing due to the anticipated volume of work, provided the IDIQ itself was competitively awarded.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1828 L ST NW STE 401, WASHINGTON, DC, 20036

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $154,775,657

Exercised Options: $131,736,449

Current Obligation: $131,736,449

Actual Outlays: $57,365,252

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693JJ924D000016

IDV Type: IDC

Timeline