HHS awards $30.5M for Advertising Agencies services to Porter Novelli Public Services Inc

Contract Overview

Contract Amount: $30,524,098 ($30.5M)

Contractor: Porter Novelli Public Services Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2012-09-05

End Date: 2016-06-30

Contract Duration: 1,394 days

Daily Burn Rate: $21.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $30.5 million to PORTER NOVELLI PUBLIC SERVICES INC. for work described as: IGF::OT::IGF Key points: 1. Total contract value of $30.5M over 4 years. 2. Porter Novelli Public Services Inc. is the sole awardee. 3. Contract type is Time and Materials. 4. Services fall under Advertising Agencies (NAICS 541810).

Value Assessment

Rating: fair

The contract's Time and Materials pricing structure can lead to cost overruns if not closely monitored. Benchmarking against similar advertising contracts is difficult without detailed service breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific awardee and the nature of the services provided warrant scrutiny to ensure fair pricing.

Taxpayer Impact: Taxpayer funds are utilized for advertising services, necessitating efficient and effective use of resources to maximize public benefit.

Public Impact

Public funds are being spent on advertising services, requiring transparency in how these funds are utilized. The effectiveness of the advertising campaigns funded by this contract will impact public perception and engagement with HHS programs. Ensuring fair competition and value for money is crucial for public trust in government spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns with Time and Materials pricing.
  • Lack of specific performance metrics makes value assessment difficult.

Positive Signals

  • Awarded under full and open competition.
  • Clear contract duration and award amount.

Sector Analysis

The Advertising Agencies sector (NAICS 541810) encompasses firms that create and place advertising. Government spending in this sector supports public awareness campaigns and outreach efforts.

Small Business Impact

No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

Oversight of this contract should focus on performance metrics and cost controls to ensure taxpayer funds are used effectively. Regular reviews of deliverables and expenditures are essential.

Related Government Programs

  • Advertising Agencies
  • Department of Health and Human Services Contracting
  • Centers for Medicare and Medicaid Services Programs

Risk Flags

  • Potential for cost creep due to Time and Materials pricing.
  • Lack of detailed service breakdown hinders value assessment.
  • Effectiveness metrics not explicitly stated.
  • Limited insight into small business participation.

Tags

advertising-agencies, department-of-health-and-human-services, dc, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $30.5 million to PORTER NOVELLI PUBLIC SERVICES INC.. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is PORTER NOVELLI PUBLIC SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $30.5 million.

What is the period of performance?

Start: 2012-09-05. End: 2016-06-30.

What specific advertising services were procured, and how do they align with HHS's strategic communication goals?

The contract details do not specify the exact advertising services procured. To assess value, a breakdown of services such as media buying, creative development, market research, and campaign management is needed. Alignment with HHS goals would require reviewing the campaign objectives and expected outcomes.

What mechanisms are in place to mitigate the risks associated with Time and Materials pricing for advertising services?

Mitigation strategies for Time and Materials contracts typically include establishing clear labor categories with pre-negotiated rates, setting not-to-exceed limits for specific tasks or the overall contract, and implementing rigorous oversight to track hours and expenses. Regular reporting and performance reviews are also critical.

How will the effectiveness of the advertising campaigns be measured to ensure a return on the $30.5M investment?

Effectiveness measurement should involve defining key performance indicators (KPIs) upfront, such as reach, engagement, message recall, or behavioral change, depending on campaign objectives. Post-campaign analysis and reporting against these KPIs will determine the return on investment and inform future spending.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesAdvertising, Public Relations, and Related ServicesAdvertising 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: RFPCMS20110012

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Omnicom Group Inc. (UEI: 147857429)

Address: 1909 K ST NW STE 400, WASHINGTON, DC, 20006

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

Financial Breakdown

Contract Ceiling: $30,524,098

Exercised Options: $30,524,098

Current Obligation: $30,524,098

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201100028I

IDV Type: IDC

Timeline

Start Date: 2012-09-05

Current End Date: 2016-06-30

Potential End Date: 2016-06-30 00:00:00

Last Modified: 2018-01-05

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