DHS Coast Guard awards $18.1M contract for marketing and advertising support to Lempugh Inc

Contract Overview

Contract Amount: $18,119,531 ($18.1M)

Contractor: Lempugh Inc

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-27

End Date: 2025-09-26

Contract Duration: 364 days

Daily Burn Rate: $49.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MARKETING AND ADVERTISING SUPPORT SERVICES FOR CGRC

Place of Performance

Location: LAUREL, PRINCE GEORGES County, MARYLAND, 20708

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18.1 million to LEMPUGH INC for work described as: MARKETING AND ADVERTISING SUPPORT SERVICES FOR CGRC Key points: 1. Contract awarded via BPA Call, indicating a pre-competed framework. 2. Firm Fixed Price contract type suggests predictable costs for the government. 3. Contract duration of 364 days aligns with typical annual support needs. 4. No small business set-aside, suggesting a focus on larger prime contractors. 5. The award represents a significant investment in CGRC's outreach efforts. 6. Geographic location of contractor in Maryland may influence local economic impact.

Value Assessment

Rating: good

The contract value of $18.1 million for marketing and advertising support appears reasonable given the scope of services for the U.S. Coast Guard's CGRC program. Benchmarking against similar large-scale federal advertising contracts suggests this falls within expected spending ranges for comprehensive support. The firm fixed-price structure helps mitigate cost overruns, providing a degree of cost certainty for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The use of a Blanket Purchase Agreement (BPA) Call suggests that the underlying contract was already competed, and this call leverages that existing competition. The specific number of bidders for this call is not provided, but the 'full and open' designation implies a robust competitive process.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by encouraging multiple vendors to offer their best terms and services to secure the contract.

Public Impact

The U.S. Coast Guard's CGRC program benefits from enhanced marketing and advertising, potentially improving public awareness and engagement. Services delivered include a range of marketing and advertising support, crucial for program outreach and communication. The primary geographic impact is likely within the United States, supporting national Coast Guard initiatives. Workforce implications may include jobs in the marketing and advertising sector, both at the contractor and potentially in related support industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the BPA is not re-competed effectively.
Ensuring the effectiveness and ROI of marketing spend requires robust performance metrics.
Dependence on a single contractor for critical advertising functions could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm Fixed Price contract type provides cost certainty.
BPA Call mechanism leverages pre-competed agreements for efficiency.
Contract supports a vital national security agency (Department of Homeland Security).

Sector Analysis

The marketing and advertising sector is a dynamic field with numerous providers, ranging from small specialized firms to large global agencies. Federal agencies like the Department of Homeland Security utilize these services to communicate critical information, recruit personnel, and promote various programs. Spending in this sector can vary widely depending on the scope and duration of campaigns. This contract, valued at $18.1 million, represents a significant engagement within the advertising agencies sub-sector (NAICS 541810), likely supporting a major program like CGRC.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no specific subcontracting requirements for small businesses were mandated. This suggests that the prime contractor, Lempugh Inc., is expected to fulfill the majority of the work. While this may limit direct opportunities for small businesses on this specific award, the overall federal contracting landscape still offers avenues for small business participation in other contracts or as subcontractors to larger firms.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Coast Guard contracting officers and program managers within the Department of Homeland Security. Performance monitoring will be crucial to ensure the effectiveness of the marketing and advertising services. Transparency is facilitated through public contract databases, though specific performance metrics and detailed spending breakdowns may not be publicly available. The Department of Homeland Security's Office of Inspector General may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

Department of Homeland Security Advertising Contracts
U.S. Coast Guard Support Services
Federal Marketing and Public Relations
CGRC Program Support
BPA Call Awards

Risk Flags

Potential for scope creep impacting firm fixed price.
Effectiveness of marketing spend requires careful monitoring.
Contractor performance risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.1 million to LEMPUGH INC. MARKETING AND ADVERTISING SUPPORT SERVICES FOR CGRC

Who is the contractor on this award?

The obligated recipient is LEMPUGH INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $18.1 million.

What is the period of performance?

Start: 2024-09-27. End: 2025-09-26.

What is the track record of Lempugh Inc. in performing federal contracts, particularly those involving marketing and advertising?

Information regarding Lempugh Inc.'s specific track record with federal contracts, especially in marketing and advertising, is not detailed in the provided data. A comprehensive review would require examining past performance evaluations, contract history, and any reported issues or successes on previous government awards. Federal procurement databases often contain past performance information that can shed light on a contractor's reliability, quality of work, and adherence to contract terms. Without this specific data, it's difficult to definitively assess their past performance beyond the fact that they were selected for this significant contract.

How does the $18.1 million value compare to similar marketing and advertising contracts awarded by the U.S. Coast Guard or DHS?

The $18.1 million value for this marketing and advertising support contract is substantial and suggests a comprehensive, long-term engagement. To benchmark effectively, one would compare this award to other large-scale contracts for similar services issued by the U.S. Coast Guard or the broader Department of Homeland Security. Federal procurement data reveals that agencies often award multi-million dollar contracts for advertising, public relations, and marketing campaigns, especially for major programs or national initiatives. This contract appears to be within the upper range for such services, indicating a significant need and scope for the CGRC program.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential underperformance by the contractor in delivering effective marketing strategies, failure to meet program objectives, and the possibility of cost overruns despite the firm fixed-price structure if scope creep occurs. Mitigation strategies likely involve robust performance monitoring by the U.S. Coast Guard, clearly defined deliverables and key performance indicators (KPIs) within the contract, and regular communication channels between the agency and Lempugh Inc. The firm fixed-price nature itself mitigates financial risk for the government, provided the scope remains controlled. Ensuring the contractor has adequate resources and expertise is also a pre-award risk assessment factor.

How effective is the CGRC program likely to be with this level of marketing and advertising support?

The effectiveness of the CGRC program is expected to be enhanced by this significant investment in marketing and advertising support. High-quality campaigns can improve public awareness, engagement, and understanding of the program's goals and benefits. The success will depend not only on the contractor's execution but also on the strategic alignment of the marketing efforts with the CGRC program's objectives. If the campaigns are well-targeted, creative, and effectively disseminated, they can lead to increased participation, better communication, and ultimately, a more successful program outcome.

What are the historical spending patterns for marketing and advertising support within the U.S. Coast Guard or DHS?

Historical spending patterns for marketing and advertising within the U.S. Coast Guard and DHS indicate a consistent need for these services, particularly for outreach, recruitment, and public information campaigns. Agencies within DHS, including the Coast Guard, regularly award contracts in the millions of dollars for advertising and related services. These expenditures often fluctuate based on specific program needs, recruitment drives, or public awareness initiatives. The $18.1 million awarded here aligns with the scale of major federal marketing efforts, suggesting that such significant investments are not uncommon for critical agency programs.

What is the significance of the contract being awarded via a BPA Call?

Awarding the contract via a BPA Call signifies that the underlying Blanket Purchase Agreement (BPA) was previously established through a competitive process. This means that the vendor pool and general terms were already vetted. A BPA Call is essentially a task order placed against that existing BPA. This method is often used for recurring needs or when an agency wants to streamline the procurement process for specific services. It can lead to faster award times and potentially better pricing due to the pre-negotiated terms of the BPA, while still allowing for competition among BPA holders if multiple were 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70Z02324QCGRC0007

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5950 SYMPHONY WOODS RD STE 500, COLUMBIA, MD, 21044

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $18,119,531

Exercised Options: $18,119,531

Current Obligation: $18,119,531

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70Z02323ACGRC0001

IDV Type: BPA

Timeline