DHS FEMA awards $13.4M contract to Wunderman Thompson LLC for Public Relations Agencies services

Contract Overview

Contract Amount: $13,442,178 ($13.4M)

Contractor: Wunderman Thompson LLC

Awarding Agency: Department of Homeland Security

Start Date: 2003-09-30

End Date: 2011-11-17

Contract Duration: 2,970 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: NOT REPORTED

Sector: Other

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20242

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $13.4 million to WUNDERMAN THOMPSON LLC for work described as: Key points: 1. The contract value of $13.4 million over its duration indicates a significant investment in public relations. 2. Wunderman Thompson LLC, a single awardee, suggests a focused relationship or specialized capability. 3. The duration of the contract (2970 days) raises questions about long-term strategy and potential for reassessment. 4. Public Relations Agencies (NAICS 541820) is a broad category, and the specific services are key to understanding value.

Value Assessment

Rating: fair

The award amount of $13.4M over nearly 8 years suggests a substantial but not excessive annual spend for PR services. Benchmarking against similar large-scale government PR contracts would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is generally positive for price discovery. However, the single awardee (BPA) implies a specific mechanism was used, and the details of that BPA's competition are crucial.

Taxpayer Impact: With full and open competition, taxpayers should benefit from competitive pricing. The long duration, however, could lead to suboptimal pricing if market conditions change significantly.

Public Impact

Public perception and communication strategies for FEMA are critical, especially during emergencies. The agency's ability to effectively communicate with the public can impact disaster response and recovery. This contract supports essential government functions related to public information and outreach.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (2970 days) may not reflect current market needs or allow for competitive re-evaluation.
Lack of specific details on the BPA's competition and task orders limits transparency.
No reported small business participation raises concerns about equitable opportunity.

Positive Signals

Awarded under full and open competition, indicating a structured procurement process.
The contract supports a critical agency (FEMA) with essential public relations functions.

Sector Analysis

The Public Relations Agencies sector (NAICS 541820) encompasses a wide range of services. Government spending in this area is often tied to public awareness campaigns, crisis communication, and strategic outreach, with benchmarks varying widely based on scope and duration.

Small Business Impact

The data indicates no reported small business participation in this contract. This is a concern as it suggests missed opportunities to support small businesses and potentially leverage specialized capabilities they may offer.

Oversight & Accountability

The use of a BPA (Blanket Purchase Agreement) suggests a pre-competed framework. Oversight would involve monitoring task orders issued against this BPA to ensure fair pricing and adherence to the original scope.

Related Government Programs

Public Relations Agencies
Department of Homeland Security Contracting
Federal Emergency Management Agency Programs

Risk Flags

Long contract duration (2970 days).
No reported small business participation.
Limited transparency on BPA task order specifics.
Potential for price misalignment over the contract term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $13.4 million to WUNDERMAN THOMPSON LLC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is WUNDERMAN THOMPSON LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $13.4 million.

What is the period of performance?

Start: 2003-09-30. End: 2011-11-17.

What specific public relations services were procured under this contract, and how do they align with FEMA's strategic communication goals?

The provided data lacks specifics on the exact services rendered under this contract. Understanding the scope, such as crisis communication support, media relations, public awareness campaigns, or digital engagement, is crucial. Aligning these services with FEMA's mission, particularly its role in disaster management and public safety, would clarify the strategic value and necessity of this significant expenditure.

Given the 2970-day duration, what mechanisms were in place to ensure the pricing remained competitive and reflective of evolving market conditions?

A contract duration of nearly eight years presents a significant risk of price escalation or misalignment with current market rates. While awarded under full and open competition, the lack of specific details on the BPA and subsequent task orders makes it difficult to assess if periodic price reviews or adjustments were incorporated. Without such mechanisms, the government may be overpaying towards the end of the contract term.

How effectively did the full and open competition process for this BPA translate into optimal value and risk mitigation for FEMA?

While 'full and open competition' is a positive indicator, its effectiveness hinges on the specifics of the BPA's initial competition and the subsequent task order awards. It suggests a structured approach to selecting a vendor. However, the long duration and lack of reported small business participation raise questions about whether this process truly yielded the best value and mitigated risks associated with long-term service contracts, or if it simply established a long-standing relationship.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: NOT REPORTED (NO)

Evaluated Preference: NONE

Contractor Details

Parent Company: WPP PLC (UEI: 232931092)

Address: 10 GLENLAKE PKWY NE B, ATLANTA, GA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $51,073,625

Exercised Options: $51,073,625

Current Obligation: $13,442,178

Parent Contract

Parent Award PIID: EMW2003BP0438

IDV Type: BPA

Timeline