CDC Spends $373.9M on National Tobacco Education Campaign via Plowshare Group

Contract Overview

Contract Amount: $373,880,938 ($373.9M)

Contractor: Plowshare Group, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2020-09-30

End Date: 2026-03-30

Contract Duration: 2,007 days

Daily Burn Rate: $186.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: CDC NATIONAL TOBACCO EDUCATION CAMPAIGN

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $373.9 million to PLOWSHARE GROUP, INC for work described as: CDC NATIONAL TOBACCO EDUCATION CAMPAIGN Key points: 1. The contract awarded to Plowshare Group, Inc. for $373.9 million focuses on advertising services. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract duration is substantial, spanning from 2020 to 2026, indicating a long-term initiative. 4. The sector is advertising, a key area for public health messaging. 5. The contract type is Time and Materials, which can pose cost control challenges.

Value Assessment

Rating: fair

The total award amount of $373.9 million for a 6-year campaign is significant. Benchmarking against similar large-scale public health advertising campaigns is difficult without more granular data on deliverables and scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Time and Materials pricing structure requires careful monitoring to ensure cost-effectiveness.

Taxpayer Impact: Taxpayer funds are being used for a large-scale public health initiative aimed at tobacco education. The effectiveness of the campaign in achieving its public health goals will ultimately determine the value for taxpayers.

Public Impact

Public health awareness campaigns are crucial for behavior change and disease prevention. Significant government investment in tobacco cessation and prevention programs can yield long-term healthcare savings. The campaign's reach and impact on smoking rates will be a key measure of success.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not managed strictly.
Long contract duration may not adapt well to evolving public health strategies or media landscapes.
Effectiveness metrics for public health campaigns can be challenging to isolate and measure definitively.

Positive Signals

Full and open competition suggests a potentially competitive price was secured.
The campaign addresses a significant public health issue with substantial funding.
The long duration allows for sustained messaging and impact.

Sector Analysis

The advertising sector is vital for disseminating public health messages. Government spending in this area, particularly for large campaigns like tobacco education, is benchmarked against the overall federal advertising spend and the specific objectives of the campaign.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The primary contractor, Plowshare Group, Inc., is not identified as a small business in this context.

Oversight & Accountability

The Centers for Disease Control and Prevention (CDC) is responsible for overseeing this contract. Robust oversight is necessary, especially given the Time and Materials contract type, to ensure funds are used efficiently and effectively towards campaign goals.

Related Government Programs

Advertising Agencies
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Potential for cost overruns due to Time and Materials contract.
Difficulty in definitively measuring campaign effectiveness and ROI.
Long contract duration may limit adaptability to changing public health landscapes.
Lack of specific small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $373.9 million to PLOWSHARE GROUP, INC. CDC NATIONAL TOBACCO EDUCATION CAMPAIGN

Who is the contractor on this award?

The obligated recipient is PLOWSHARE GROUP, INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $373.9 million.

What is the period of performance?

Start: 2020-09-30. End: 2026-03-30.

What specific metrics are used to evaluate the effectiveness of the National Tobacco Education Campaign in reducing tobacco use?

The effectiveness of the campaign is likely evaluated through a combination of metrics, including changes in public awareness of tobacco risks, shifts in attitudes towards smoking, reported quit attempts, and ultimately, reductions in adult and youth smoking prevalence rates. Data from surveys, focus groups, and public health statistics are typically analyzed to assess campaign impact over its duration.

How does the Time and Materials contract structure mitigate risks associated with potential cost overruns for this large-scale campaign?

While Time and Materials contracts offer flexibility, they inherently carry a higher risk of cost overruns compared to fixed-price contracts. Mitigation relies heavily on stringent oversight, detailed tracking of labor hours and material costs, clear scope definition, and regular performance reviews by the contracting agency to ensure the contractor's efforts align with budget expectations and campaign objectives.

What is the anticipated return on investment for taxpayers, considering the $373.9 million expenditure on tobacco education?

The return on investment for taxpayers is measured not just in direct campaign costs but in long-term healthcare savings and improved public health outcomes. Reducing tobacco use can lead to significant decreases in smoking-related illnesses, thereby lowering healthcare expenditures for conditions like cancer, heart disease, and respiratory illnesses. Quantifying this ROI involves complex economic modeling.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75D301-20-Q-71588

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Publicis Groupe S.A.

Address: 1 DOCK ST STE 209, STAMFORD, CT, 06902

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

Financial Breakdown

Contract Ceiling: $497,824,293

Exercised Options: $497,817,341

Current Obligation: $373,880,938

Actual Outlays: $275,495,583

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F0158L

IDV Type: FSS

Timeline