HHS awarded $25.5M to Ogilvy PR for public relations services, spanning over 4 years

Contract Overview

Contract Amount: $25,521,003 ($25.5M)

Contractor: Ogilvy Public Relations Worldwide LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2010-09-30

End Date: 2014-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $17.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ARRA::YES::ARRA TAS::75 1701::TAS RECOVERY ARRA PUBLICITY CENTER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $25.5 million to OGILVY PUBLIC RELATIONS WORLDWIDE LLC for work described as: ARRA::YES::ARRA TAS::75 1701::TAS RECOVERY ARRA PUBLICITY CENTER Key points: 1. The contract's value of $25.5 million over four years suggests a significant investment in public relations, requiring careful scrutiny of deliverables and outcomes. 2. Ogilvy Public Relations Worldwide LLC, a large established firm, secured this contract, indicating a competitive landscape for major PR services. 3. The 'Time and Materials' contract type presents a potential risk for cost overruns if not managed with strict oversight. 4. This contract falls within the broader context of government communication and public outreach efforts, essential for disseminating information and managing public perception. 5. The services provided are categorized under Public Relations Agencies, a niche within the professional services sector. 6. The contract's duration of 1460 days (4 years) allows for sustained engagement but also necessitates long-term performance monitoring.

Value Assessment

Rating: fair

Benchmarking the value of public relations contracts can be challenging due to the intangible nature of services. However, a $25.5 million award over four years for a single agency suggests a substantial commitment. Without specific performance metrics or comparable contract data, it's difficult to definitively assess value for money. The 'Time and Materials' pricing structure, while common, requires diligent oversight to ensure costs remain aligned with the value delivered and do not escalate beyond reasonable expectations.

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. While the number of bidders is not explicitly stated in the provided data (only 'no': 3, which likely refers to modifications or options), a full and open competition generally fosters a more competitive environment, potentially leading to better pricing and service offerings for the government.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and thus potentially lower prices.

Public Impact

The primary beneficiaries are the various agencies and programs within the Department of Health and Human Services (HHS) that require public relations support to communicate their initiatives and services to the public. The services delivered include strategic communication, media relations, public affairs, and crisis communication, aimed at enhancing public understanding and engagement with health-related information. The geographic impact is national, as HHS operates across the United States, and its public relations efforts are intended to reach a broad audience. The contract supports a workforce within Ogilvy Public Relations Worldwide LLC and potentially its subcontractors, contributing to employment in the communications and public relations sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Time and Materials' contract type can lead to cost overruns if not closely monitored, as the government pays for actual labor hours and material costs incurred by the contractor.
The long duration of the contract (4 years) increases the risk of scope creep or a decline in service quality over time if performance is not consistently evaluated.
Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness and efficiency of the public relations services being rendered.

Positive Signals

The award to a well-established firm like Ogilvy Public Relations Worldwide LLC suggests a level of confidence in their capability to deliver complex PR services.
The 'Full and Open Competition' process indicates that the contract was awarded through a structured and transparent procurement method, aiming for the best value.
The contract's focus on public relations for a critical agency like HHS implies a commitment to transparent communication and public information dissemination.

Sector Analysis

The public relations industry is a significant component of the professional services sector, encompassing a wide range of activities from corporate communications to crisis management and government affairs. Government agencies, particularly those with broad public mandates like HHS, frequently engage PR firms to manage their public image, communicate policy changes, and disseminate vital information. Spending in this sector can vary widely based on agency needs, public health crises, and administration priorities. Comparable spending benchmarks would typically involve analyzing other large federal contracts for PR services awarded to major agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses ('sb': false). As a large contract awarded to a major PR firm, it is unlikely that small businesses would be primary awardees. However, Ogilvy Public Relations Worldwide LLC may engage small businesses as subcontractors for specialized services, which could provide some indirect opportunities within the small business ecosystem. Further analysis of subcontracting plans would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) contracting officers and program managers. They are responsible for monitoring performance, approving invoices, and ensuring compliance with contract terms. The 'Time and Materials' nature of the contract necessitates particularly rigorous oversight of labor hours and costs. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

HHS Public Health Communications
Federal Agency Public Relations Contracts
Government Communications Services
Public Information Campaigns

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Need for robust performance monitoring over a long contract duration.
Difficulty in quantifying the direct ROI of public relations services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $25.5 million to OGILVY PUBLIC RELATIONS WORLDWIDE LLC. ARRA::YES::ARRA TAS::75 1701::TAS RECOVERY ARRA PUBLICITY CENTER

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 Health and Human Services (Agency for Healthcare Research and Quality).

What is the total obligated amount?

The obligated amount is $25.5 million.

What is the period of performance?

Start: 2010-09-30. End: 2014-09-29.

What is the track record of Ogilvy Public Relations Worldwide LLC with federal government contracts, particularly with HHS?

Ogilvy Public Relations Worldwide LLC has a history of securing federal contracts, though specific details on their track record with HHS require deeper database analysis. Generally, large PR firms like Ogilvy are experienced in navigating federal procurement processes. Their past performance on similar government contracts would have been a key factor in the evaluation during the 'Full and Open Competition' for this HHS award. Assessing their past performance would involve reviewing contract completion reports, any past performance questionnaires submitted by previous government clients, and any documented instances of contract disputes or awards for outstanding performance. This information is crucial for understanding their reliability and effectiveness in delivering government-mandated public relations services.

How does the $25.5 million contract value compare to similar public relations contracts awarded by HHS or other large federal agencies?

Comparing the $25.5 million contract value requires accessing databases of federal procurement data to identify similar public relations contracts awarded by HHS and other large agencies over comparable timeframes. Public relations spending can fluctuate significantly based on agency needs, public health emergencies, and administration priorities. A contract of this magnitude over four years suggests a substantial and ongoing need for comprehensive PR support. Without direct comparative data, it's difficult to definitively state if this represents a high, low, or average investment. However, it indicates a significant allocation of resources towards strategic communication by HHS, likely reflecting the complexity and importance of its mission.

What are the primary risks associated with a 'Time and Materials' contract for public relations services, and how are they mitigated?

The primary risk with 'Time and Materials' (T&M) contracts, especially for services like public relations, is the potential for cost overruns. Since the contractor is reimbursed for actual labor hours and material costs, there's less incentive to control expenses compared to fixed-price contracts. This can lead to the government paying more than anticipated if the project scope expands or if contractor efficiency is low. Mitigation strategies include stringent oversight by the contracting officer's representative (COR) to monitor labor hours, verify the necessity of materials, and ensure efficient work practices. Clear task definitions, regular progress reviews, and establishing ceiling prices or labor hour limitations within the contract are also crucial for managing T&M risks.

What specific performance metrics or KPIs are likely used to evaluate the effectiveness of Ogilvy's public relations services for HHS?

While specific performance metrics (KPIs) are not detailed in the provided data, typical KPIs for public relations contracts with federal agencies often include media mentions (quantity and sentiment), reach and impressions of public communications, website traffic driven by campaigns, engagement rates on social media platforms, successful dissemination of key public health messages, and positive shifts in public perception or awareness regarding specific health issues. The effectiveness of crisis communication responses and the successful execution of strategic communication plans would also be critical evaluation points. The contract likely includes a Performance Work Statement (PWS) that outlines these measurable outcomes.

What is the historical spending trend for public relations services within HHS over the past 5-10 years?

Analyzing historical spending trends for public relations services within HHS requires accessing and aggregating procurement data over the specified period. Generally, spending in this area can be influenced by major public health initiatives, legislative changes requiring public awareness campaigns, and the overall communication strategies of the administration. Periods of significant public health concern, such as pandemics or major disease outbreaks, often correlate with increased spending on public relations to disseminate information and guidance. Conversely, periods of budget constraints or shifts in communication priorities might see reduced spending. A detailed analysis would involve tracking contract awards to PR firms and related service codes over time.

How does the geographic location of the contractor (District of Columbia) impact service delivery or cost for a national-level HHS contract?

The contractor's location in the District of Columbia (DC) is significant for a national-level HHS contract. DC is a major hub for federal agencies and lobbying firms, meaning Ogilvy PR is geographically proximate to HHS headquarters and key decision-makers, which can facilitate direct communication, in-person meetings, and rapid response. This proximity can reduce travel costs and time delays often associated with coordinating with agencies located elsewhere. However, the cost of doing business in DC, including higher labor rates and overhead, might be factored into their pricing. For a national campaign, the DC location is advantageous for strategic planning and agency liaison, while execution would likely involve a distributed team or leveraging national media and digital channels.

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

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vmly and R Enterprise (UEI: 218784436)

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $29,800,954

Exercised Options: $25,521,003

Current Obligation: $25,521,003

Parent Contract

Parent Award PIID: GS23F0060M

IDV Type: FSS

Timeline