DoD's $73.8M Public Relations Contract Awarded to Wunderman Thompson LLC in FY07
Contract Overview
Contract Amount: $73,809,924 ($73.8M)
Contractor: Wunderman Thompson LLC
Awarding Agency: Department of Defense
Start Date: 2006-09-28
End Date: 2007-09-27
Contract Duration: 364 days
Daily Burn Rate: $202.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: FY07 SERVICES;
Place of Performance
Location: ATLANTA, FULTON County, GEORGIA, 30326
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $73.8 million to WUNDERMAN THOMPSON LLC for work described as: FY07 SERVICES; Key points: 1. Contract awarded for public relations services to Wunderman Thompson LLC. 2. Significant spending of $73.8 million in FY07 for PR agencies. 3. Full and open competition was utilized for this award. 4. The contract duration was 364 days, ending in September 2007.
Value Assessment
Rating: fair
The contract value of $73.8 million for a one-year period appears high for public relations services. Benchmarking against similar contracts is difficult without more specific service details, but the per-unit cost is not readily calculable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the high award value warrants scrutiny to ensure competitive pricing was achieved.
Taxpayer Impact: Taxpayers funded $73.8 million for public relations services, with the effectiveness and value for money being key considerations.
Public Impact
Public relations services are crucial for government communication and image management. The large contract value indicates a significant investment in external PR expertise. Transparency in how these funds were utilized for public outreach is important.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value for a single year.
- Potential for cost overruns in time and materials contracts.
- Limited duration may indicate a specific campaign or need.
Positive Signals
- Awarded through full and open competition.
- Department of Defense contract suggests critical communication needs.
Sector Analysis
Public relations agencies fall under professional services, specifically advertising and public relations. Spending in this sector can vary widely based on agency needs, campaign scope, and duration. Benchmarks are difficult without specific service details.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors or if this contract was specifically set aside for small business participation. The prime contractor is a large entity.
Oversight & Accountability
Oversight would focus on the deliverables and effectiveness of the public relations campaign funded by this contract. Tracking performance metrics against the contract's objectives is essential for accountability.
Related Government Programs
- Public Relations Agencies
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- High contract value.
- Time and Materials pricing can lead to cost uncertainty.
- Lack of specific performance metrics in the provided data.
- Short contract duration might indicate a reactive or short-term need.
Tags
public-relations-agencies, department-of-defense, ga, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $73.8 million to WUNDERMAN THOMPSON LLC. FY07 SERVICES;
Who is the contractor on this award?
The obligated recipient is WUNDERMAN THOMPSON LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $73.8 million.
What is the period of performance?
Start: 2006-09-28. End: 2007-09-27.
What specific public relations activities were undertaken with the $73.8 million, and how did they align with DoD objectives?
The contract likely covered a broad range of public relations activities, including media outreach, strategic communication planning, content creation, and crisis communication support for the Department of the Navy. The alignment with DoD objectives would be detailed in the contract's statement of work, focusing on enhancing public perception, disseminating key information, and supporting military missions through effective communication strategies.
Given the time and materials (T&M) pricing structure, what controls were in place to manage costs and prevent overruns?
For T&M contracts, government oversight typically involves detailed review of contractor invoices, labor hour tracking, and material receipts. Establishing ceiling prices, requiring justification for labor rates, and closely monitoring the hours expended against the contract's scope are crucial. Regular progress meetings and performance reviews help ensure the work remains within budget and aligned with objectives.
How was the effectiveness of the public relations campaign measured to justify the significant expenditure?
Effectiveness is typically measured through a combination of metrics, such as media impressions, sentiment analysis, reach of public announcements, engagement rates on digital platforms, and feedback from target audiences. The contract would likely have defined Key Performance Indicators (KPIs) that the contractor was required to meet, with regular reporting to the government on progress towards these 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) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
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: $73,809,924
Exercised Options: $73,809,924
Current Obligation: $73,809,924
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS23F0265L
IDV Type: FSS
Timeline
Start Date: 2006-09-28
Current End Date: 2007-09-27
Potential End Date: 2007-09-27 00:00:00
Last Modified: 2014-10-01
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