Interior Dept. Spends $321.6M on Public Relations Consulting with Ogilvy Group
Contract Overview
Contract Amount: $321,565,617 ($321.6M)
Contractor: Ogilvy Group, LLC, the
Awarding Agency: Department of the Interior
Start Date: 2003-10-01
End Date: 2006-03-31
Contract Duration: 912 days
Daily Burn Rate: $352.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: CONSULTING SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20503
Plain-Language Summary
Department of the Interior obligated $321.6 million to OGILVY GROUP, LLC, THE for work described as: CONSULTING SERVICES Key points: 1. Significant contract value of over $321 million for public relations services. 2. Ogilvy Group, LLC, the sole awardee, raises questions about competition. 3. Contract duration of 912 days (over 2.5 years) indicates a long-term need. 4. The 'Public Relations Agencies' NAICS code (541820) places this in the professional services sector.
Value Assessment
Rating: questionable
The contract's total value is substantial. Without a per-unit cost or more detailed service breakdown, assessing value for money is difficult. The 'Cost Plus Fixed Fee' pricing structure can sometimes lead to higher costs if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Despite the award to a single entity, the contract was reportedly awarded under full and open competition. This suggests multiple bids may have been received, but Ogilvy Group was selected as the best value.
Taxpayer Impact: The significant expenditure represents a considerable use of taxpayer funds for public relations services. The effectiveness of these services in achieving agency goals would determine the ultimate taxpayer impact.
Public Impact
Public perception management and communication strategies are critical for government agencies. The large sum allocated could fund numerous public outreach programs or campaigns. Transparency in how these funds are utilized is essential for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value
- Long contract duration
- Cost Plus Fixed Fee pricing
Positive Signals
- Awarded under full and open competition
- Specific NAICS code indicates specialized service
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically public relations. Government spending in this area often focuses on communication, outreach, and strategic messaging to the public.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). This suggests the scale and nature of the services required were likely beyond the capacity of most small businesses in this sector.
Oversight & Accountability
The contract's duration and value warrant robust oversight to ensure services are delivered effectively and costs are managed appropriately. Regular performance reviews and audits would be crucial.
Related Government Programs
- Public Relations Agencies
- Department of the Interior Contracting
- Departmental Offices Programs
Risk Flags
- High dollar value
- Long contract duration
- Cost Plus Fixed Fee pricing structure
- Sole awardee despite 'full and open' competition claim
- Lack of specific performance metrics in provided data
Tags
public-relations-agencies, department-of-the-interior, dc, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $321.6 million to OGILVY GROUP, LLC, THE. CONSULTING SERVICES
Who is the contractor on this award?
The obligated recipient is OGILVY GROUP, LLC, THE.
Which agency awarded this contract?
Awarding agency: Department of the Interior (Departmental Offices).
What is the total obligated amount?
The obligated amount is $321.6 million.
What is the period of performance?
Start: 2003-10-01. End: 2006-03-31.
What specific public relations outcomes were achieved with this $321.6 million investment?
The effectiveness of this substantial investment hinges on measurable outcomes related to public perception, agency reputation, and the success of communication campaigns. Without detailed performance metrics and post-contract analysis, it's challenging to definitively state the value achieved. Future contracts should include clear KPIs to assess return on investment.
How was the 'Cost Plus Fixed Fee' structure managed to prevent cost overruns?
The 'Cost Plus Fixed Fee' (CPFF) structure requires diligent oversight to ensure the fixed fee remains appropriate and that the 'cost' portion is controlled. The Department of the Interior would need robust mechanisms for tracking allowable costs, negotiating the fee, and ensuring the contractor operates efficiently to prevent scope creep and unjustified expenses.
What was the rationale for a contract of this magnitude and duration for public relations?
A contract of this size and duration suggests a sustained, high-level need for strategic public relations support, potentially related to major departmental initiatives, ongoing public affairs, or crisis communication preparedness. The specific justification would likely involve the complexity and long-term nature of the agency's communication objectives and the specialized expertise required.
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
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: WPP PLC (UEI: 232931092)
Address: 309 WEST 49TH STREET, NEW YORK, NY, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $321,565,617
Exercised Options: $321,565,617
Current Obligation: $321,565,617
Timeline
Start Date: 2003-10-01
Current End Date: 2006-03-31
Potential End Date: 2006-03-31 00:00:00
Last Modified: 2012-06-27
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