DoD Awards $22M for OPT III Space Charges Media Placement to Young & Rubicam LLC
Contract Overview
Contract Amount: $22,000,000 ($22.0M)
Contractor: Young & Rubicam LLC
Awarding Agency: Department of Defense
Start Date: 2024-06-28
End Date: 2025-02-28
Contract Duration: 245 days
Daily Burn Rate: $89.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: OPT III SPACE CHARGES MEDIA PLACEMENT
Place of Performance
Location: NEW YORK, NEW YORK County, NEW YORK, 10019
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $22.0 million to YOUNG & RUBICAM LLC for work described as: OPT III SPACE CHARGES MEDIA PLACEMENT Key points: 1. Significant contract value of $22 million for media placement services. 2. Full and open competition indicates a potentially competitive bidding process. 3. Risk is moderate, given the fixed-price contract and defined duration. 4. Sector is advertising, a common area for government procurement.
Value Assessment
Rating: good
The contract value of $22 million for a 245-day period appears reasonable for large-scale media placement. Benchmarking against similar government advertising contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for advertising services, with the expectation of effective media placement to reach target audiences.
Public Impact
Ensures effective communication and outreach for Department of the Navy initiatives. Supports the advertising industry through government contracts. Potential for increased public awareness of defense-related programs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if media placement needs expand beyond initial requirements.
- Effectiveness of media placement is difficult to quantify without clear KPIs.
- Reliance on a single vendor for a significant portion of media buys.
Positive Signals
- Full and open competition can lead to cost savings.
- Fixed-price contract provides budget certainty.
- Clear start and end dates for the delivery order.
Sector Analysis
The advertising sector is characterized by dynamic media landscapes and evolving consumer behavior. Government spending in this area typically focuses on public awareness campaigns, recruitment, and information dissemination. Benchmarks vary widely based on campaign scope and target audience.
Small Business Impact
This contract does not appear to have specific set-asides for small businesses, as indicated by 'sb': false. The prime contractor is a large entity, suggesting subcontracts may be awarded to smaller firms, but this is not explicitly detailed.
Oversight & Accountability
Oversight will be crucial to ensure the media placement aligns with campaign objectives and delivers value for money. The Department of the Navy's contracting officers will monitor performance against the contract terms.
Related Government Programs
- Advertising Agencies
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns if media costs fluctuate unexpectedly.
- Difficulty in accurately measuring ROI for certain media placements.
- Dependence on the contractor's expertise for optimal media channel selection.
- Risk of outdated media strategies if not continuously adapted.
Tags
advertising-agencies, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.0 million to YOUNG & RUBICAM LLC. OPT III SPACE CHARGES MEDIA PLACEMENT
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 $22.0 million.
What is the period of performance?
Start: 2024-06-28. End: 2025-02-28.
What specific metrics will be used to measure the success and effectiveness of the media placement services?
The effectiveness of media placement is typically measured through key performance indicators (KPIs) such as reach, frequency, engagement rates, website traffic, lead generation, or conversion rates, depending on the campaign's objectives. Clear definition and tracking of these metrics are essential for evaluating the contractor's performance and ensuring taxpayer value.
How will the government ensure that the $22 million is spent efficiently and effectively across various media channels?
Efficiency and effectiveness are managed through detailed campaign planning, competitive media buying strategies, and ongoing performance monitoring. The contracting officer's representative (COR) will oversee the media plan, ensuring alignment with strategic goals and budget constraints. Regular reporting from Young & Rubicam LLC on media spend and performance will be critical for oversight.
What is the potential impact of this contract on future advertising agency procurements by the Department of Defense?
This contract's performance, particularly regarding cost-effectiveness and successful campaign execution, could influence future procurement strategies. A successful outcome might reinforce the use of full and open competition for similar services. Conversely, any significant issues could lead to revised requirements or different contracting approaches for future advertising needs.
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: $22,000,000
Exercised Options: $22,000,000
Current Obligation: $22,000,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0018921DZ024
IDV Type: IDC
Timeline
Start Date: 2024-06-28
Current End Date: 2025-02-28
Potential End Date: 2025-02-28 00:00:00
Last Modified: 2025-03-12
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