DoD's $20M FY22 Media Placement Contract Awarded to MullenLowe US Inc
Contract Overview
Contract Amount: $20,082,161 ($20.1M)
Contractor: Mullenlowe US Inc
Awarding Agency: Department of Defense
Start Date: 2022-05-20
End Date: 2023-05-19
Contract Duration: 364 days
Daily Burn Rate: $55.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FY 22 DPAC MEDIA PLACEMENT
Place of Performance
Location: BOSTON, SUFFOLK County, MASSACHUSETTS, 02109
Plain-Language Summary
Department of Defense obligated $20.1 million to MULLENLOWE US INC for work described as: FY 22 DPAC MEDIA PLACEMENT Key points: 1. Significant contract value of $20.08 million for advertising services. 2. MullenLowe US Inc. secured the award, indicating potential market concentration. 3. Risk of limited competition if similar contracts are consistently awarded to a few large agencies. 4. Spending falls within the advertising sector, crucial for public outreach and recruitment.
Value Assessment
Rating: good
The contract's firm fixed price structure suggests predictable costs. Benchmarking against similar large-scale media placement contracts would provide further insight into its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which generally promotes competitive pricing. However, the specific award to MullenLowe US Inc. warrants monitoring for future trends.
Taxpayer Impact: Taxpayer funds are utilized for advertising services, with the aim of effective public outreach and information dissemination by the Department of Defense.
Public Impact
Public awareness campaigns and recruitment efforts by the DoD are directly supported by this contract. The effectiveness of the advertising campaigns will influence public perception and engagement with defense initiatives. Transparency in media spending ensures accountability for taxpayer dollars.
Waste & Efficiency Indicators
Waste Risk Score: 55 / 10
Warning Flags
- Potential for vendor lock-in if this agency consistently wins large DoD contracts.
- Lack of small business participation noted.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls under advertising agencies, a sector vital for government communication. Benchmarks for similar large-scale media buys by federal agencies would be useful for comparison.
Small Business Impact
The data indicates that small businesses were not directly involved in this specific contract award. Future solicitations could explore opportunities for small business participation in subcontracting roles.
Oversight & Accountability
The firm fixed price contract and full and open competition suggest a degree of oversight. However, ongoing monitoring of campaign performance and cost-effectiveness is essential for accountability.
Related Government Programs
- Advertising Agencies
- Department of Defense Contracting
- Defense Human Resources Activity Programs
Risk Flags
- Lack of small business participation.
- Potential for vendor lock-in.
- Need for clear ROI metrics.
- Dependence on a single large agency.
Tags
advertising-agencies, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.1 million to MULLENLOWE US INC. FY 22 DPAC MEDIA PLACEMENT
Who is the contractor on this award?
The obligated recipient is MULLENLOWE US INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Human Resources Activity).
What is the total obligated amount?
The obligated amount is $20.1 million.
What is the period of performance?
Start: 2022-05-20. End: 2023-05-19.
What is the expected return on investment for these media placements in terms of recruitment or public engagement?
The return on investment (ROI) for media placements is typically measured by metrics such as reach, engagement rates, lead generation (e.g., recruitment inquiries), and ultimately, conversion rates (e.g., enlistments). While the contract value is $20.08 million, the specific ROI will depend on the effectiveness of the advertising campaigns executed by MullenLowe US Inc. and the DoD's ability to track and attribute outcomes to these efforts.
What are the risks associated with awarding a large media contract to a single vendor like MullenLowe US Inc.?
Awarding a large contract to a single vendor can lead to reduced competition in future procurements, potentially increasing costs and limiting innovation. There's also a risk of vendor complacency or over-reliance, where the vendor may not feel the same pressure to perform at peak efficiency. Furthermore, if the vendor faces financial or operational issues, it could disrupt critical government communication efforts.
How does this spending compare to other federal agencies for similar advertising services?
Comparing this $20.08 million contract to similar advertising services across federal agencies requires access to a broader dataset of government contracts. However, for a large agency like the Department of Defense, significant investment in media placement for recruitment and public affairs is typical. Benchmarking against contracts from agencies like the General Services Administration or other departments with large public outreach needs would provide a more precise comparison.
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
Solicitation ID: H9821018R0004
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Interpublic Group of Companies Inc
Address: 40 BROAD ST 10 FL, BOSTON, MA, 02109
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,082,161
Exercised Options: $20,082,161
Current Obligation: $20,082,161
Actual Outlays: $1,904,504
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: H9821019D0001
IDV Type: IDC
Timeline
Start Date: 2022-05-20
Current End Date: 2023-05-19
Potential End Date: 2023-05-19 00:00:00
Last Modified: 2025-04-11
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