HHS awards $24.7M for Public Relations Agencies, raising concerns about competition and value
Contract Overview
Contract Amount: $24,692,838 ($24.7M)
Contractor: Levick Strategic Communications, L.L.C.
Awarding Agency: Department of Health and Human Services
Start Date: 2005-09-29
End Date: 2009-09-29
Contract Duration: 1,461 days
Daily Burn Rate: $16.9K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 6
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: OTHER PROFESSIONAL SERVICES
Place of Performance
Location: BOYDS, MONTGOMERY County, MARYLAND, 20841
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $24.7 million to LEVICK STRATEGIC COMMUNICATIONS, L.L.C. for work described as: OTHER PROFESSIONAL SERVICES Key points: 1. Spending on public relations services reached $24.7 million over four years. 2. The contract was awarded competitively, but the specific method is unclear. 3. Potential risks include cost overruns and the effectiveness of PR services. 4. The sector is characterized by specialized agencies and variable pricing.
Value Assessment
Rating: questionable
The Time and Materials contract type can lead to cost overruns if not closely monitored. Without a fixed price, it's difficult to assess value for money compared to similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was awarded via a competitive delivery order, suggesting multiple bids were considered. However, the specific pricing mechanisms and the impact of the Time and Materials structure on price discovery warrant further scrutiny.
Taxpayer Impact: Taxpayer funds were used for public relations services, with the ultimate value and efficiency of these services being a key concern for accountability.
Public Impact
Public funds allocated to strategic communications and public relations. Potential for taxpayer money to be spent on services with unclear ROI. Government reliance on external PR firms for messaging and outreach.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type
- Lack of clear performance metrics
- Potential for scope creep
Positive Signals
- Competitive award process
- Experienced contractor
Sector Analysis
The public relations sector is diverse, with agencies offering a wide range of services. Benchmarking spending is challenging due to the bespoke nature of PR campaigns and varying agency fee structures.
Small Business Impact
This contract does not appear to have specific provisions for small business participation, indicating a potential gap in supporting smaller, specialized firms within this service area.
Oversight & Accountability
Oversight of Time and Materials contracts is crucial to ensure costs remain within reasonable bounds and that services delivered align with stated objectives. Regular performance reviews are essential.
Related Government Programs
- Public Relations Agencies
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- Lack of detailed performance metrics
- Potential for cost overruns due to T&M contract
- Limited transparency on specific services rendered
- Unclear return on investment for PR services
Tags
public-relations-agencies, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $24.7 million to LEVICK STRATEGIC COMMUNICATIONS, L.L.C.. OTHER PROFESSIONAL SERVICES
Who is the contractor on this award?
The obligated recipient is LEVICK STRATEGIC COMMUNICATIONS, L.L.C..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).
What is the total obligated amount?
The obligated amount is $24.7 million.
What is the period of performance?
Start: 2005-09-29. End: 2009-09-29.
What specific deliverables and outcomes were expected from Levick Strategic Communications, and how was their performance measured against these expectations?
The contract details do not explicitly outline specific deliverables or performance metrics. A thorough review would require access to internal performance reports and task orders to assess if the agency met defined objectives and provided tangible value for the funds expended.
How did the Time and Materials contract structure influence the final cost, and were there mechanisms in place to control potential cost overruns?
The Time and Materials (T&M) structure inherently allows costs to fluctuate based on labor hours and material expenses. Without clear cost ceilings or detailed task order budgets, there's a heightened risk of cost escalation. Effective oversight would involve rigorous monitoring of hours and materials to ensure efficiency and prevent unnecessary spending.
What was the strategic rationale for awarding a significant contract for public relations services, and how did it align with the Assistant Secretary for Administration's mission?
The strategic rationale likely involved a need for specialized communication expertise to manage public perception, disseminate information, or handle crisis communications for the Department of Health and Human Services. Aligning with the mission would depend on the specific objectives of the PR campaigns undertaken and their contribution to the agency's overall goals.
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) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 6
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1900 M ST NW 4 FL, WASHINGTON, DC, 20036
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Subchapter S Corporation
Financial Breakdown
Contract Ceiling: $24,692,838
Exercised Options: $24,692,838
Current Obligation: $24,692,838
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS23F0316P
IDV Type: FSS
Timeline
Start Date: 2005-09-29
Current End Date: 2009-09-29
Potential End Date: 2009-09-29 00:00:00
Last Modified: 2021-11-25
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