DoD's Navy Awards $109M Advertising Contract to Wunderman Thompson LLC for Recruiting

Contract Overview

Contract Amount: $109,302,336 ($109.3M)

Contractor: Wunderman Thompson LLC

Awarding Agency: Department of Defense

Start Date: 2024-12-20

End Date: 2025-12-19

Contract Duration: 364 days

Daily Burn Rate: $300.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MARINE CORPS RECRUITING COMMAND ADVERTISING SERVICES

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30308

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $109.3 million to WUNDERMAN THOMPSON LLC for work described as: MARINE CORPS RECRUITING COMMAND ADVERTISING SERVICES Key points: 1. Significant contract value of $109.3M for advertising services. 2. Wunderman Thompson LLC is the sole awardee, indicating a specific capability or relationship. 3. The contract is for a 1-year period, suggesting a focused campaign or service need. 4. Full and open competition was utilized, implying a competitive bidding process. 5. This spending falls under the Department of Defense's broader marketing and outreach efforts.

Value Assessment

Rating: good

The contract value of $109.3M for a 1-year period for advertising services appears substantial. Benchmarking against similar large-scale advertising contracts would be necessary for a precise assessment, but the full and open competition suggests a market-driven price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest possible range of potential bidders. This method is designed to foster price discovery and ensure the government receives competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for advertising services to support Marine Corps recruiting efforts. The competitive nature of the award aims to ensure efficient use of these funds.

Public Impact

Impacts Marine Corps recruiting efforts through targeted advertising campaigns. Supports the agency's ability to attract and enlist new service members. The contract's success will be measured by its contribution to recruitment goals. Potential for broader public awareness of military service opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for scope creep in advertising services over the contract term.

Positive Signals

Awarded through full and open competition.
Clear contract duration of one year.
Contract type is Firm Fixed Price, providing cost certainty.

Sector Analysis

This contract falls within the professional services sector, specifically advertising and marketing. Government spending in this area supports agency outreach and public relations. The benchmark for similar contracts would depend on the scope and duration of services.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as it was awarded to Wunderman Thompson LLC. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

Oversight will likely be managed by the Department of the Navy, ensuring that Wunderman Thompson LLC meets the terms and objectives of the contract. Performance monitoring and adherence to the firm fixed price structure are key accountability measures.

Related Government Programs

Advertising Agencies
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

High contract value requires diligent oversight.
Dependence on a single contractor for critical recruiting functions.
Effectiveness of advertising campaigns can be difficult to quantify precisely.
Potential for market shifts impacting advertising strategy efficacy.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $109.3 million to WUNDERMAN THOMPSON LLC. MARINE CORPS RECRUITING COMMAND ADVERTISING 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 $109.3 million.

What is the period of performance?

Start: 2024-12-20. End: 2025-12-19.

What specific advertising strategies and channels will be employed under this contract to reach target recruit demographics effectively?

The contract likely details specific advertising strategies, including digital marketing, social media campaigns, traditional media placements, and potentially targeted outreach events. The effectiveness will be measured against key performance indicators related to lead generation, application rates, and ultimately, enlistment numbers for the Marine Corps.

How will the effectiveness of the advertising services be measured to ensure optimal return on investment for taxpayer funds?

Effectiveness will be measured through a combination of metrics, such as reach, engagement, conversion rates (e.g., website visits, information requests), and cost per acquisition of a recruit. The Department of the Navy will likely track these KPIs against established recruitment goals to assess the ROI.

Are there any provisions for performance-based incentives or penalties within this firm-fixed-price contract to ensure high-quality service delivery?

While the contract is firm-fixed-price, which generally caps the total cost, performance-based incentives or penalties are not explicitly detailed in the provided summary. Such clauses are typically negotiated and would be outlined in the full contract document to motivate contractor performance and address potential shortcomings.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Advertising, Public Relations, and Related Services › Advertising 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

Solicitation ID: M9549424R0001

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 505 N ANGIER AVE NE STE 5000, ATLANTA, GA, 30308

Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $166,734,127

Exercised Options: $166,734,127

Current Obligation: $109,302,336

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M9549425D0001

IDV Type: IDC

Timeline