DoD's $78.3M Recruit Advertising Contract Awarded to Wunderman Thompson LLC

Contract Overview

Contract Amount: $78,311,502 ($78.3M)

Contractor: Wunderman Thompson LLC

Awarding Agency: Department of Defense

Start Date: 2007-09-11

End Date: 2008-06-30

Contract Duration: 293 days

Daily Burn Rate: $267.3K/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: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $78.3 million to WUNDERMAN THOMPSON LLC for work described as: RECRUIT ADVERTISING; GWOT Key points: 1. Significant spending on recruitment advertising services for the Global War on Terrorism (GWOT). 2. Contract awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration of 293 days is relatively short for such a large expenditure. 4. The NAICS code 541820 indicates a focus on public relations agencies.

Value Assessment

Rating: fair

The contract value of $78.3M for a 293-day period is substantial. Benchmarking against similar large-scale advertising contracts is difficult without more specific service details, but the per-day cost is high.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the Time and Materials pricing structure might limit price certainty for the government.

Taxpayer Impact: Taxpayers funded a significant advertising campaign through this contract. The effectiveness of the recruitment efforts in relation to the cost will determine the ultimate taxpayer value.

Public Impact

Public funds were used for extensive recruitment advertising, potentially impacting military recruitment numbers. The contract's focus on GWOT suggests a direct link to ongoing military operations and personnel needs. Transparency in how the $78.3M was allocated for advertising services is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for a short duration.
Time and Materials pricing can lead to cost overruns.
Lack of specific performance metrics makes value assessment difficult.

Positive Signals

Awarded through full and open competition.
Contract supports critical military recruitment needs.

Sector Analysis

The advertising and public relations sector is competitive. Spending benchmarks for government recruitment advertising can vary widely based on campaign scope and duration. This contract represents a significant investment in talent acquisition.

Small Business Impact

The contract was awarded to a single entity, Wunderman Thompson LLC. There is no indication of small business participation or subcontracting in the provided data.

Oversight & Accountability

Oversight would focus on ensuring the advertising campaign effectively met recruitment goals within the allocated budget and that the Time and Materials pricing was managed diligently to prevent waste.

Related Government Programs

Public Relations Agencies
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

High cost for a short duration.
Potential for cost overruns due to T&M pricing.
Lack of performance metrics.
Limited visibility into specific advertising strategies and their effectiveness.
No indication of small business utilization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $78.3 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 $78.3 million.

What is the period of performance?

Start: 2007-09-11. End: 2008-06-30.

What was the specific return on investment for this $78.3M recruitment advertising campaign in terms of successful enlistments?

The provided data does not include metrics on the campaign's effectiveness or return on investment. To assess the value, one would need data on the number of recruits acquired directly attributable to this advertising effort and compare it to the cost per recruit against industry benchmarks.

What risks were associated with the Time and Materials pricing structure for this large contract?

The primary risk of Time and Materials (T&M) pricing is the potential for cost escalation, as the government pays for the actual time and materials used. This can lead to unpredictable expenditures and may incentivize less efficient work if not closely monitored and managed by the contracting officer.

How did the 'full and open competition' process ensure the best value was obtained for this significant expenditure?

Full and open competition theoretically allows any interested and qualified vendor to bid, fostering a competitive environment that should drive down prices and improve service quality. However, the effectiveness in achieving best value depends on the clarity of the solicitation, the evaluation criteria, and the government's ability to negotiate favorable terms, especially with T&M pricing.

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: $78,311,502

Exercised Options: $78,311,502

Current Obligation: $78,311,502

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS23F0265L

IDV Type: FSS

Timeline