Ogilvy PR awarded $15.7M for CDC's cancer prevention campaigns over six years

Contract Overview

Contract Amount: $15,712,277 ($15.7M)

Contractor: Ogilvy Public Relations Worldwide LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2008-09-02

End Date: 2014-09-01

Contract Duration: 2,190 days

Daily Burn Rate: $7.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 6

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: CANCER PREVENTION&CONTROL STRATEGIC CAMPAIGN&COMM INITIATIVES

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329, UNITED STATES OF AMERICA

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15.7 million to OGILVY PUBLIC RELATIONS WORLDWIDE LLC for work described as: CANCER PREVENTION&CONTROL STRATEGIC CAMPAIGN&COMM INITIATIVES Key points: 1. Contract value represents a significant investment in public health communication. 2. Competition dynamics for this type of service can vary, impacting final pricing. 3. Performance period of six years suggests a long-term strategic initiative. 4. The award falls within the marketing and public relations sector for government services. 5. Geographic location of the contractor (Georgia) may influence local economic impact.

Value Assessment

Rating: fair

The contract value of $15.7 million over six years averages approximately $2.6 million annually. Benchmarking this against similar large-scale public health communication campaigns is challenging without more specific service details. However, the Cost Plus Award Fee (CPAF) structure suggests that contractor performance directly influences the final payment, potentially driving value if managed effectively. The raw dollar amount alone doesn't indicate value; it's the outcomes achieved that matter.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER', indicating it was competed among multiple offerors. The presence of 6 bidders suggests a reasonably competitive environment for this type of marketing and communication service. A competitive process generally allows for better price discovery and selection of the most advantageous offer for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by fostering a market-driven price for the services rendered.

Public Impact

The public benefits from increased awareness and education regarding cancer prevention strategies. Services delivered include strategic campaign development, communication initiatives, and public relations efforts. The geographic impact is national, aiming to reach diverse populations across the United States. Workforce implications may include employment opportunities within the contractor's organization and related communication fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee (CPAF) structure can lead to cost overruns if not closely monitored and managed.
Long performance periods require sustained oversight to ensure continued relevance and effectiveness of campaigns.
Measuring the direct impact of communication campaigns on cancer prevention rates can be complex.

Positive Signals

The competitive award process suggests a fair market approach to selecting the contractor.
The focus on cancer prevention aligns with critical public health priorities.
The award fee mechanism incentivizes contractor performance, potentially leading to higher quality outcomes.

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 for public awareness campaigns, health initiatives, and outreach programs. Comparable spending benchmarks would involve analyzing other large federal contracts for similar communication strategies across various agencies, which often run into millions of dollars for multi-year efforts.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This suggests the primary award was not targeted towards small businesses. There is no explicit information on subcontracting plans for small businesses within this data snippet, which could represent missed opportunities for small business engagement in supporting these large-scale campaigns.

Oversight & Accountability

Oversight for this contract would typically be managed by the Centers for Disease Control and Prevention (CDC) contracting officers and program managers. The Cost Plus Award Fee (CPAF) structure necessitates robust performance monitoring and evaluation to justify award fees. Transparency would be enhanced through regular reporting requirements from the contractor and potential reviews by the HHS Office of Inspector General.

Related Government Programs

National Health Observances Campaigns
Public Health Communication Strategies
Disease Prevention and Health Promotion Programs
Federal Marketing and Advertising Services

Risk Flags

Long contract duration may require significant adaptation to evolving communication landscapes.
Cost-plus award fee structure necessitates diligent oversight to control costs and ensure value.
Measuring the direct impact of communication campaigns on public health outcomes can be complex.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15.7 million to OGILVY PUBLIC RELATIONS WORLDWIDE LLC. CANCER PREVENTION&CONTROL STRATEGIC CAMPAIGN&COMM INITIATIVES

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 (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $15.7 million.

What is the period of performance?

Start: 2008-09-02. End: 2014-09-01.

What specific metrics were used to evaluate Ogilvy's performance and determine award fees?

The provided data does not detail the specific performance metrics used for award fee determination under this Cost Plus Award Fee (CPAF) contract. Typically, for public health campaigns, metrics could include reach and frequency of media placements, public engagement levels (e.g., website visits, social media interactions), message recall and comprehension in target audiences, and potentially, in the long term, shifts in reported health behaviors or awareness related to cancer prevention. The Centers for Disease Control and Prevention (CDC) would have established a Performance Work Statement (PWS) outlining these objectives and the criteria for assessing success, which would then inform the award fee decisions made by the Contracting Officer.

How does the $15.7 million contract value compare to other federal spending on similar public health communication initiatives?

The $15.7 million awarded to Ogilvy Public Relations Worldwide LLC over six years for cancer prevention campaigns represents a substantial, but not unprecedented, investment in federal public health communication. Large-scale national campaigns, particularly those addressing critical health issues like cancer, often require significant funding to achieve broad reach and impact. For context, other major federal health initiatives, such as anti-smoking campaigns (e.g., CDC's Tips From Former Smokers) or public health emergency preparedness communications, have historically commanded budgets in the tens to hundreds of millions of dollars over similar or longer timeframes. The average annual spend of approximately $2.6 million for this contract is consistent with significant, ongoing strategic communication efforts.

What are the potential risks associated with a six-year contract for public relations services?

A six-year performance period for public relations services presents several potential risks. Firstly, the public health landscape and communication strategies can evolve rapidly; a campaign designed today might become less effective or relevant over six years without significant adaptation. Secondly, maintaining consistent contractor performance and innovation over such a long duration can be challenging. There's a risk of complacency or a decline in the quality of services if oversight is not rigorous. Thirdly, the cost-plus award fee structure, while incentivizing performance, also carries the risk of cost growth if not tightly managed. Finally, political or agency priorities could shift, potentially impacting the relevance or funding of the campaign mid-contract, leading to inefficiencies or contract modifications.

What was the historical spending pattern for cancer prevention communication initiatives prior to this award?

The provided data snippet focuses on a single contract award and does not offer historical spending patterns for cancer prevention communication initiatives. To assess this, one would need to analyze broader federal budget allocations and contract databases for the Centers for Disease Control and Prevention (CDC) and potentially other agencies like the National Institutes of Health (NIH) or the Office of the Surgeon General over multiple fiscal years. Such an analysis would reveal trends in funding levels, the types of services procured (e.g., media buys, creative development, research), and the primary contractors involved in supporting cancer prevention outreach.

How does the 'Marketing Consulting Services' NAICS code (541613) typically fare in terms of competition within federal contracting?

The 'Marketing Consulting Services' NAICS code (541613) generally experiences moderate to high competition within federal contracting, especially for large-scale, high-value contracts like the one awarded to Ogilvy. Agencies often seek a wide range of expertise in strategic communications, advertising, public relations, and digital outreach, leading many firms to bid. However, for highly specialized or large-volume requirements, the pool of qualified and capable contractors might narrow. The fact that this Delivery Order had 6 bidders suggests a healthy level of competition for this specific requirement, indicating that the market has multiple capable firms willing to compete for federal marketing and consulting opportunities.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 2006N08350

Offers Received: 6

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: WPP PLC (UEI: 232931092)

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

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $26,150,180

Exercised Options: $15,712,277

Current Obligation: $15,712,277

Parent Contract

Parent Award PIID: HHSD200200720014I

IDV Type: IDC

Timeline