DoD's $28M media placement contract awarded to Young & Rubicam LLC for advertising services

Contract Overview

Contract Amount: $28,000,000 ($28.0M)

Contractor: Young & Rubicam LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-12

End Date: 2023-02-28

Contract Duration: 169 days

Daily Burn Rate: $165.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPT I SPACE CHARGES MEDIA PLACEMENT DIGITAL MEDIA FY22 Q4 THROUGH FY23 Q2

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10019

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $28.0 million to YOUNG & RUBICAM LLC for work described as: OPT I SPACE CHARGES MEDIA PLACEMENT DIGITAL MEDIA FY22 Q4 THROUGH FY23 Q2 Key points: 1. Contract value appears reasonable for a large-scale media placement effort. 2. Full and open competition suggests a healthy market for advertising agencies. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Short performance period may indicate a need for agile campaign execution. 5. Contractor has experience in media placement and advertising services. 6. Geographic location of the contractor is New York.

Value Assessment

Rating: good

The contract value of $28 million for media placement and digital advertising services over approximately 5 months appears to be within a reasonable range for a Department of Defense campaign. Benchmarking against similar large-scale media buys for government entities would provide further context, but the scope suggests a significant advertising effort. The firm fixed-price structure helps control costs, and the award to an established agency like Young & Rubicam indicates a focus on proven capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple advertising agencies were likely solicited and had the opportunity to bid. This competitive process is expected to drive favorable pricing and service quality. The specific number of bidders is not provided, but the designation suggests a robust bidding environment.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring that the government receives competitive pricing and the best value for its advertising spend.

Public Impact

The Department of Defense benefits from enhanced recruitment and public awareness campaigns. Services delivered include strategic media placement and digital advertising. The primary geographic impact is national, reaching potential recruits and the general public. Workforce implications are indirect, potentially boosting employment within the advertising and media industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, suggesting a fair and competitive process.
Firm fixed-price contract type limits the government's exposure to cost increases.
Contractor is a well-established advertising agency with significant experience.
Contract value is substantial, indicating a significant investment in advertising.

Sector Analysis

The advertising and media sector is highly competitive, with numerous agencies vying for government contracts. This contract falls within the advertising agencies sub-sector, specifically focusing on media placement and digital advertising. The $28 million value positions it as a significant, though not unprecedented, award within this space. Comparable spending benchmarks would involve analyzing other large federal media buys, particularly those from defense or large civilian agencies.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature of the services and the size of the award, it is likely that larger, established agencies were the primary focus. Further analysis would be needed to determine if any small business participation was mandated or occurred voluntarily.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the Department of the Navy's procurement oversight bodies. The firm fixed-price nature of the contract simplifies financial oversight. Transparency is generally maintained through contract award databases, though specific campaign details and performance metrics may not be publicly disclosed.

Related Government Programs

Department of Defense Advertising and Public Affairs
Federal Agency Media Buying
Digital Marketing Services Contracts

Risk Flags

Potential for campaign ineffectiveness if not strategically executed.
Limited visibility into specific performance metrics and ROI without further data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.0 million to YOUNG & RUBICAM LLC. OPT I SPACE CHARGES MEDIA PLACEMENT DIGITAL MEDIA FY22 Q4 THROUGH FY23 Q2

Who is the contractor on this award?

The obligated recipient is YOUNG & RUBICAM 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 $28.0 million.

What is the period of performance?

Start: 2022-09-12. End: 2023-02-28.

What is the track record of Young & Rubicam LLC with federal contracts, particularly in media placement?

Young & Rubicam LLC, a well-established advertising agency, has a history of working with government entities. While specific details on all past federal contracts are not immediately available in this data snippet, their selection for a $28 million Department of Defense contract suggests a proven ability to handle large-scale government advertising campaigns. Their experience likely encompasses media strategy, planning, and execution across various channels, including digital. Further investigation into their contract history with the government, including performance reviews and past awards, would provide a more comprehensive understanding of their track record.

How does the $28 million contract value compare to similar federal media placement contracts?

The $28 million contract value for media placement and digital advertising over approximately five months is substantial. To benchmark this effectively, one would need to compare it against similar contracts awarded by the Department of Defense or other large federal agencies for comparable services and durations. For instance, large-scale recruitment campaigns or public awareness initiatives often involve significant media spends. Without access to a broader database of federal advertising contracts, it's difficult to definitively state if this represents a high, low, or average value. However, the firm fixed-price nature suggests the government aimed to cap its expenditure at this amount.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential ineffectiveness of the advertising campaign in achieving its objectives (e.g., recruitment, public awareness), and potential for inefficient media spending if not strategically managed. The firm fixed-price contract type mitigates financial risks for the government by capping the total cost. The selection of an experienced contractor like Young & Rubicam also helps mitigate performance risks. However, the success of the campaign ultimately depends on the strategic execution by the contractor and the clarity of the government's objectives.

What specific services are included under this 'media placement' contract?

Under this contract, 'media placement' and 'digital media' services likely encompass a broad range of activities critical to executing an advertising campaign. This typically includes strategic planning of where and when advertisements will be shown (media planning), the actual purchasing of advertising space and time across various platforms (media buying), and the management of digital advertising efforts. Digital media could involve search engine marketing, social media advertising, display ads, video ads, and programmatic advertising. The goal is to reach specific target audiences effectively and efficiently within the allocated budget.

What is the historical spending pattern for similar advertising services within the Department of the Navy?

Analyzing historical spending patterns for similar advertising services within the Department of the Navy would require access to historical contract data. This contract, valued at $28 million over roughly five months, suggests a significant, potentially campaign-specific investment. Historical data might reveal whether the Navy typically awards large, consolidated contracts like this or prefers smaller, more frequent awards for different media channels or campaigns. Understanding past spending levels, the types of services procured, and the contractors frequently used would provide context for the current award's significance and potential trends in Navy advertising procurement.

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: N0018920RZ020

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: WPP PLC

Address: 3 COLUMBUS CIR, NEW YORK, NY, 10019

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,000,000

Exercised Options: $28,000,000

Current Obligation: $28,000,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0018921DZ024

IDV Type: IDC

Timeline