HHS awards $10M+ for marketing consulting, with 2 bidders competing for the firm-fixed-price contract

Contract Overview

Contract Amount: $10,003,238 ($10.0M)

Contractor: Catmedia Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2020-09-11

End Date: 2023-12-31

Contract Duration: 1,206 days

Daily Burn Rate: $8.3K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARX COMMUNICATION & MEDIA

Place of Performance

Location: TUCKER, DEKALB County, GEORGIA, 30084

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.0 million to CATMEDIA INC for work described as: ARX COMMUNICATION & MEDIA Key points: 1. Value for money appears fair given the competitive bidding process and firm-fixed-price structure. 2. Competition dynamics show a moderate level of engagement with two bidders. 3. Risk indicators are low due to the firm-fixed-price contract type and established performance period. 4. Performance context suggests a need for ongoing marketing support for public health initiatives. 5. Sector positioning places this contract within the broader federal marketing and public relations services.

Value Assessment

Rating: fair

The contract value of over $10 million for marketing consulting services over approximately three years warrants careful review. While the firm-fixed-price structure provides cost certainty, the specific deliverables and their impact on public health campaigns are key to assessing true value. Benchmarking against similar federal marketing contracts would provide a clearer picture of whether the pricing is competitive for the scope of services rendered. Without detailed performance metrics, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under SAP (Small Acquisition Program), indicating a competitive process. Two bidders participated, suggesting a reasonable level of competition for this type of service. The presence of multiple bidders generally aids in price discovery and can lead to more favorable pricing for the government. However, the specific details of the solicitation and evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: A competitive process, even with two bidders, helps ensure taxpayer funds are used efficiently by driving down costs compared to a sole-source award.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from enhanced marketing and communication capabilities. Services delivered likely include strategic planning, campaign development, media outreach, and content creation to support public health initiatives. Geographic impact is national, as CDC campaigns aim to reach the entire U.S. population. Workforce implications may involve supporting federal employees and potentially engaging external marketing professionals or agencies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not clearly defined in the SOW.
Ensuring alignment with evolving public health messaging and strategies.
Measuring the ROI of marketing campaigns can be complex.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Competitive bidding process likely secured a reasonable price.
Longer performance period allows for sustained campaign efforts.

Sector Analysis

This contract falls within the professional services sector, specifically marketing and public relations. The federal government is a significant consumer of these services to communicate public health information, manage public perception, and execute outreach campaigns. Comparable spending benchmarks for federal marketing and advertising contracts can vary widely based on scope, but this award appears to be a substantial investment in strategic communication for a critical agency like the CDC.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, large businesses were eligible to compete. There is no explicit information on subcontracting plans for small businesses within this data, which could represent missed opportunities for the small business ecosystem to participate in federal contracting.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the CDC. Performance reviews, regular reporting requirements, and adherence to the Statement of Work (SOW) are key accountability measures. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Marketing and Advertising Services
Public Health Communication Campaigns
Centers for Disease Control and Prevention Operations
Professional Services Contracts

Risk Flags

Potential for undefined scope impacting value for money.
Measuring marketing campaign effectiveness can be challenging.
Contractor performance history needs thorough review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.0 million to CATMEDIA INC. ARX COMMUNICATION & MEDIA

Who is the contractor on this award?

The obligated recipient is CATMEDIA 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 $10.0 million.

What is the period of performance?

Start: 2020-09-11. End: 2023-12-31.

What is the track record of CATMEDIA INC with federal contracts, particularly with the Department of Health and Human Services?

CATMEDIA INC has a history of federal contracting, with this award representing a significant portion of their federal work. Analyzing their past performance on similar contracts, especially those with HHS or the CDC, would reveal their ability to meet deadlines, manage budgets, and deliver quality services. A review of their contract history might show a pattern of successful engagements or identify areas where performance has been less satisfactory. Understanding their experience with firm-fixed-price contracts and marketing consulting is crucial for assessing their reliability on this specific award.

How does the awarded amount of approximately $10 million compare to similar marketing consulting contracts awarded by federal agencies?

Comparing this $10 million award to similar federal marketing consulting contracts requires access to a broader dataset of government procurements. However, for a contract spanning over three years (from September 2020 to December 2023), this amount suggests a significant scope of work. Federal marketing contracts can range from tens of thousands for specific campaign elements to millions for large-scale, multi-year public awareness initiatives. Given the agency (CDC) and the nature of public health communication, this level of funding is plausible for comprehensive strategic marketing efforts, but a direct benchmark against contracts with identical deliverables and durations would be necessary for a precise value assessment.

What are the primary risks associated with a firm-fixed-price contract for marketing consulting services?

The primary risks with a firm-fixed-price contract for marketing consulting revolve around defining the scope of work precisely. If the Statement of Work (SOW) is ambiguous, the contractor may struggle to deliver the intended outcomes, or the government may not receive the full value expected. Conversely, the contractor bears the risk of cost overruns if their estimates are inaccurate. For marketing, measuring the return on investment (ROI) and attributing success solely to the contractor's efforts can be challenging, introducing a performance risk. Ensuring clear deliverables, measurable objectives, and robust performance metrics are critical to mitigating these risks.

How effective has CATMEDIA INC been in delivering marketing services for federal agencies based on past performance?

Assessing the effectiveness of CATMEDIA INC requires a detailed review of their past performance on federal contracts. This would involve examining contract close-out data, any performance evaluations or ratings available in federal procurement databases, and potentially looking for any contract disputes or terminations. Without specific performance data linked to this contractor, it's difficult to provide a definitive assessment. However, agencies typically award follow-on contracts or significant awards like this one based on a positive assessment of past performance, suggesting a level of satisfaction with their service delivery.

What is the historical spending trend for marketing consulting services by the Department of Health and Human Services?

Historical spending on marketing consulting services by the Department of Health and Human Services (HHS) has likely fluctuated based on public health priorities, campaign needs, and budget allocations. Over the years, HHS agencies, particularly the CDC, have consistently required marketing and communication support for initiatives ranging from disease prevention and health promotion to public awareness campaigns. Analyzing HHS's spending data over the past 5-10 years would reveal trends in the volume and value of contracts awarded for these services. This specific $10M+ award suggests a significant investment in marketing during its performance period, potentially reflecting a heightened need for public health messaging.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Marketing Consulting Services

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 75D301-20-Q-71762

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3776 LAVISTA RD STE 200, TUCKER, GA, 30084

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

Financial Breakdown

Contract Ceiling: $12,488,723

Exercised Options: $10,506,273

Current Obligation: $10,003,238

Actual Outlays: $7,690,154

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSD2002015M88156B

IDV Type: BPA

Timeline