DoD's $75M recruit advertising contract awarded to Wunderman Thompson LLC shows potential for cost efficiencies

Contract Overview

Contract Amount: $74,979,989 ($75.0M)

Contractor: Wunderman Thompson LLC

Awarding Agency: Department of Defense

Start Date: 2007-02-06

End Date: 2008-07-31

Contract Duration: 541 days

Daily Burn Rate: $138.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: RECRUIT ADVERTISING; (GWOT)

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30326

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $75.0 million to WUNDERMAN THOMPSON LLC for work described as: RECRUIT ADVERTISING; (GWOT) Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. The contract's duration of 541 days for $75M indicates a significant but potentially manageable annual spend. 3. The 'TIME AND MATERIALS' contract type introduces some cost variability risk. 4. Awarded to a single contractor, Wunderman Thompson LLC, for Public Relations Agencies services. 5. The contract falls under the 'RECRUIT ADVERTISING' category, crucial for military personnel acquisition. 6. Geographic focus on 'GEORGIA' may indicate specific recruitment needs or campaign targeting.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more granular data on the specific services rendered and market rates for recruitment advertising at the time. The Time and Materials pricing structure can lead to cost overruns if not managed closely. However, the total award amount of $75M over approximately 1.5 years suggests a substantial investment in recruitment efforts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that multiple vendors had the opportunity to bid. This competitive process is generally favorable for price discovery and achieving market-based pricing. The fact that only one award was made suggests Wunderman Thompson LLC was the most advantageous offer.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging vendors to offer their best value.

Public Impact

The primary beneficiaries are the Department of the Navy and the broader Department of Defense, aiming to attract and recruit new service members. Services delivered include advertising and public relations efforts to support recruitment campaigns. The geographic impact is noted as 'GEORGIA,' suggesting a focus on recruitment within that state. Workforce implications include potential support for military end strength goals and the advertising/marketing industry through the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to unpredictable costs if not closely monitored.
Lack of specific performance metrics makes it difficult to assess the effectiveness of the advertising spend.
Geographic limitation to Georgia might not capture broader recruitment needs.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract supports a critical government function: military recruitment.
The contractor, Wunderman Thompson LLC, is a known entity in the advertising space.

Sector Analysis

This contract falls within the professional services sector, specifically advertising and public relations. The market for recruitment advertising is competitive, with agencies specializing in reaching target demographics. Government contracts in this space often focus on broad outreach and specific demographic targeting, similar to large commercial campaigns but with public service objectives. Benchmarking against similar government recruitment campaigns would provide further context on value.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor is there explicit information on subcontracting plans. The award to Wunderman Thompson LLC, a large agency, suggests that small businesses may not have been primary awardees, though they could potentially participate as subcontractors if Wunderman Thompson engages them.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and the Department of the Navy's acquisition and program management teams. Transparency is generally provided through contract award databases, but detailed performance reporting and Inspector General oversight would depend on specific contract clauses and agency policies. The 'GA' (Georgia) designation might imply specific state-level oversight or reporting requirements.

Related Government Programs

Military Recruitment Advertising
Department of Defense Advertising Contracts
Public Relations Services for Government Agencies
GWOT Support Contracts

Risk Flags

Cost Overrun Risk (Time and Materials)
Performance Measurement Uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $75.0 million to WUNDERMAN THOMPSON LLC. RECRUIT ADVERTISING; (GWOT)

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 $75.0 million.

What is the period of performance?

Start: 2007-02-06. End: 2008-07-31.

What specific recruitment metrics were used to evaluate the success of Wunderman Thompson LLC's advertising campaigns under this contract?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) used to evaluate the success of the recruitment advertising campaigns. Typically, such contracts would define metrics like cost per lead, applicant conversion rates, or the number of qualified applicants generated. Without these details, it's difficult to quantitatively assess the effectiveness of the $75 million investment. Future analysis would require access to performance reports or contract modifications that detail these metrics and the contractor's achievement against them.

How does the $75 million award compare to historical or projected spending on military recruitment advertising by the Department of the Navy?

The $75 million award for a period of approximately 1.5 years (February 2007 to July 2008) represents a significant investment. To contextualize this, historical spending data for the Department of the Navy's recruitment advertising would be needed. For instance, comparing this to annual spending in preceding or subsequent years, or to similar large-scale campaigns for other branches of the military, would reveal if this was an outlier, a standard investment, or an increase/decrease in funding for recruitment efforts. The 'GWOT' designation suggests the context of global war on terror operations, which may have influenced recruitment needs and associated spending.

What was the competitive landscape like for this 'FULL AND OPEN COMPETITION' award, and how many bids were received?

The data indicates 'FULL AND OPEN COMPETITION' was utilized, which implies a broad solicitation process. However, the specific number of bids received is not provided. While the competition type suggests multiple potential bidders, the award notice only specifies one awardee, Wunderman Thompson LLC. A more thorough analysis would require knowing the number of proposals submitted to understand the true level of competition and whether the government received a wide range of options or if the field narrowed significantly.

What specific risks were identified or mitigated for this Time and Materials (T&M) contract, given its substantial value?

Time and Materials contracts inherently carry a risk of cost escalation if the level of effort or material usage is not well-defined or controlled. For a $75 million contract, the primary risk is that costs could exceed initial estimates without a clear ceiling or fixed price. Mitigation strategies would typically involve robust oversight, detailed tracking of labor hours and materials, defined ceiling prices in contract modifications, and regular performance reviews to ensure efficiency. The absence of specific risk flags in the provided data suggests these mitigation efforts were either standard practice or not explicitly documented in the award notice.

Can the 'RECRUIT ADVERTISING' services provided by Wunderman Thompson LLC be benchmarked against similar commercial advertising campaigns in terms of cost-effectiveness?

Benchmarking this contract against commercial campaigns is complex due to differing objectives and metrics. Commercial campaigns often focus on product sales or brand building, measured by ROI, market share, or direct sales figures. Military recruitment, while aiming for 'sales' (enlistments), has unique challenges like targeting specific demographics, meeting accession goals, and operating within government regulations. While Wunderman Thompson LLC is a commercial entity, the effectiveness of their government contract work would be measured against military accession targets and cost-per-acquisition metrics, which may differ from commercial KPIs.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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: $74,979,989

Exercised Options: $74,979,989

Current Obligation: $74,979,989

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS23F0265L

IDV Type: FSS

Timeline