Ogilvy PR awarded $40.4M DHS contract for marketing and advertising services

Contract Overview

Contract Amount: $40,380,086 ($40.4M)

Contractor: Ogilvy Public Relations Worldwide LLC

Awarding Agency: Department of Homeland Security

Start Date: 2018-09-30

End Date: 2021-09-29

Contract Duration: 1,095 days

Daily Burn Rate: $36.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: MARKETING AND ADVERTISING

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $40.4 million to OGILVY PUBLIC RELATIONS WORLDWIDE LLC for work described as: MARKETING AND ADVERTISING Key points: 1. Contract value represents a significant investment in public relations and advertising. 2. Full and open competition suggests a potentially competitive bidding process. 3. Contract duration of three years indicates a medium-term need for these services. 4. The contract falls within the broader marketing and advertising sector. 5. Performance is managed by U.S. Customs and Border Protection, a major component of DHS. 6. The use of Time and Materials pricing may introduce cost variability.

Value Assessment

Rating: fair

The contract value of $40.4 million over three years for marketing and advertising services appears within a reasonable range for a federal agency of this size and scope. Benchmarking against similar large-scale public relations and advertising contracts awarded by federal agencies would provide a clearer picture of value for money. The Time and Materials pricing structure, while flexible, can sometimes lead to higher costs if not closely managed, warranting scrutiny of the final expenditure against the initial estimates.

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 bids. This approach generally fosters a competitive environment, which can lead to better pricing and service quality. The number of bidders is not specified, but the open competition suggests that multiple firms likely vied for this opportunity, allowing the agency to select the most advantageous offer.

Taxpayer Impact: Taxpayers benefit from the potential for cost savings and improved service delivery due to a competitive bidding process, which aims to secure the best value.

Public Impact

The primary beneficiary is the Department of Homeland Security, specifically U.S. Customs and Border Protection, which receives essential marketing and advertising support. Services delivered include public relations and advertising campaigns aimed at informing the public, stakeholders, and potentially deterring illicit activities. The geographic impact is national, supporting the operations and public outreach of a federal agency with nationwide responsibilities. Workforce implications may include support for internal communications and external campaign execution, potentially involving agency personnel and contractor staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure.
Effectiveness of advertising campaigns can be difficult to measure objectively.
Scope creep could increase the overall cost beyond the initial $40.4 million.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive process.
Contract duration provides stability for ongoing marketing and advertising needs.
Ogilvy PR is a well-established firm with a track record in public relations.

Sector Analysis

This contract falls within the broader marketing and advertising services sector, specifically focusing on public relations. The federal government is a significant consumer of these services for public outreach, information dissemination, and campaign management. Comparable spending benchmarks for federal PR and advertising contracts can vary widely based on agency size, mission complexity, and campaign scope. This $40.4 million award is substantial, reflecting the critical communication needs of a large agency like CBP.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major firm, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specified in the contract terms or pursued by the prime contractor. The focus on a large, established firm may limit direct participation of small businesses in this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by contracting officers and program managers within U.S. Customs and Border Protection. Accountability measures would be tied to performance metrics outlined in the contract's statement of work. Transparency is generally maintained through federal contract databases like FPDS, where basic award information is publicly available. The Inspector General for the Department of Homeland Security may also have jurisdiction for audits and investigations if concerns arise.

Related Government Programs

Federal Marketing and Advertising Services
Public Relations Contracts
Department of Homeland Security Contracts
U.S. Customs and Border Protection Procurement
Information Dissemination Services

Risk Flags

Potential for cost overruns due to T&M pricing.
Difficulty in measuring campaign effectiveness.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $40.4 million to OGILVY PUBLIC RELATIONS WORLDWIDE LLC. MARKETING AND ADVERTISING

Who is the contractor on this award?

The obligated recipient is OGILVY PUBLIC RELATIONS WORLDWIDE LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $40.4 million.

What is the period of performance?

Start: 2018-09-30. End: 2021-09-29.

What is the track record of Ogilvy Public Relations Worldwide LLC with federal contracts?

Ogilvy Public Relations Worldwide LLC has a history of securing federal contracts, primarily within the marketing, advertising, and public relations domains. While this specific $40.4 million contract with DHS is substantial, the firm has likely been involved in various government engagements over the years. Analyzing past performance on similar federal contracts would reveal their ability to meet deadlines, manage budgets, and deliver on stated objectives. Federal procurement data can provide insights into the types of agencies they have served, the value of those contracts, and any performance ratings or disputes. A review of their federal award history would help assess their experience and reliability as a government contractor.

How does the $40.4 million contract value compare to similar federal marketing and advertising contracts?

The $40.4 million contract value for marketing and advertising services over three years is a significant award, placing it among larger federal procurements in this category. To benchmark effectively, one would compare it to contracts of similar scope and duration awarded by agencies with comparable communication needs, such as other large components within DHS, the Department of Defense, or major civilian agencies. The average value of federal public relations contracts can vary widely, but awards in the tens of millions are typically for comprehensive, multi-year campaigns or agency-wide support. Without specific comparable contract data, it's difficult to definitively state if this represents excellent or questionable value, but it signifies a substantial investment.

What are the primary risks associated with a Time and Materials (T&M) contract for public relations services?

The primary risk associated with a Time and Materials (T&M) contract for public relations services is the potential for cost escalation. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can lead to budget uncertainty and potentially higher overall costs if the scope of work expands, if labor hours are not efficiently managed, or if material costs increase unexpectedly. Effective oversight, detailed tracking of hours and expenses, and clear definition of tasks are crucial to mitigate these risks and ensure the contract remains within budget and delivers value.

How effective are federal marketing and advertising campaigns in achieving their stated objectives?

The effectiveness of federal marketing and advertising campaigns in achieving their stated objectives can be highly variable and is often challenging to measure definitively. Success depends on numerous factors, including the clarity of campaign goals, the target audience's receptiveness, the creativity and reach of the messaging, and the overall strategic alignment with agency missions. While some campaigns may demonstrably influence public opinion, behavior, or awareness (e.g., public health initiatives, recruitment drives), others may have less tangible or measurable outcomes. Robust evaluation metrics, pre- and post-campaign analysis, and independent assessments are necessary to gauge effectiveness, but often the impact is indirect or long-term.

What has been the historical spending trend for marketing and advertising services by U.S. Customs and Border Protection?

Analyzing historical spending trends for marketing and advertising services by U.S. Customs and Border Protection (CBP) would require accessing detailed federal procurement databases over several fiscal years. This would reveal patterns in contract awards, average contract values, and the types of services procured. Understanding this history can help contextualize the current $40.4 million award. For instance, if CBP's spending in this area has been consistently high, this award might represent a continuation of established needs. Conversely, a significant increase in spending could indicate a new strategic focus or an expansion of communication requirements.

What are the implications of awarding a large PR contract through full and open competition?

Awarding a large public relations contract through full and open competition has several implications. Firstly, it signals the agency's commitment to maximizing competition, which theoretically should lead to better pricing and a wider range of innovative solutions from potential bidders. Secondly, it allows the agency to select from a broad pool of qualified contractors, potentially including both large, established firms and smaller, specialized companies if they meet the requirements. The process requires significant administrative effort to manage solicitations, evaluate proposals, and ensure fairness. For taxpayers, it offers a greater assurance that the contract was awarded based on merit and competitive advantage, rather than preferential treatment.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70B06C18Q00000208

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1111 19TH ST NW 10TH FL, WASHINGTON, DC, 20036

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

Financial Breakdown

Contract Ceiling: $52,537,086

Exercised Options: $40,380,086

Current Obligation: $40,380,086

Actual Outlays: $-248

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS23F0060M

IDV Type: FSS

Timeline