Army awards $29.8M for marketing and advertising, with DDB Chicago Inc. securing the task order

Contract Overview

Contract Amount: $29,794,386 ($29.8M)

Contractor: DDB Chicago Inc.

Awarding Agency: Department of Defense

Start Date: 2019-08-21

End Date: 2020-03-31

Contract Duration: 223 days

Daily Burn Rate: $133.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Other

Official Description: US ARMY MARKETING AND ADVERTISING PROGRAM TASK ORDER. RFTO 19- 980 MEDIA

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60601

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $29.8 million to DDB CHICAGO INC. for work described as: US ARMY MARKETING AND ADVERTISING PROGRAM TASK ORDER. RFTO 19- 980 MEDIA Key points: 1. Value for money assessed against industry benchmarks for advertising services. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators are low given the nature of advertising services and established contractor. 4. Performance context is a single task order within a larger marketing program. 5. Sector positioning within the advertising industry, a mature and competitive market.

Value Assessment

Rating: good

The contract value of $29.8 million for advertising services appears reasonable when benchmarked against typical agency retainers and campaign costs. While specific performance metrics are not detailed here, the pricing structure (Cost No Fee) suggests a focus on managing costs effectively. Comparison to similar government-wide advertising contracts would provide further insight into value, but the amount is within expected ranges for a significant marketing program.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that can lead to better pricing and service quality.

Public Impact

The primary beneficiaries are the Department of the Army, receiving marketing and advertising support. Services delivered include media planning, buying, and creative development for Army campaigns. Geographic impact is national, supporting Army recruitment and public relations efforts across the US. Workforce implications include support for the advertising industry and agency personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, suggesting a fair and accessible process.
Contractor has a track record, implied by being awarded a task order.
Task order structure allows for defined scope and duration, aiding management.
Clear agency and program focus (Army Marketing and Advertising).

Sector Analysis

The advertising industry is a large and dynamic sector, with government contracts representing a segment of overall spending. This contract falls under the 'Advertising Agencies' North American Industry Classification System (NAICS) code 541810. Spending in this sector by the federal government is consistent with the need for public outreach, recruitment, and public relations across various agencies. Benchmarks for similar government advertising contracts would typically range from a few million to tens of millions of dollars depending on scope.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through this award. The primary contractor, DDB Chicago Inc., is a large agency, and their subcontracting practices would be determined by their internal policies and the specific needs of the campaign, rather than a set-aside requirement.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting office responsible for the marketing and advertising program. Accountability measures would be tied to the delivery of services as outlined in the task order and performance work statement. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

US Army Marketing and Advertising Program
Department of Defense Advertising Contracts
Federal Advertising and Public Relations Services

Risk Flags

Potential for scope creep if campaign objectives are not clearly defined.
Risk of ineffective creative execution impacting campaign goals.
Need for diligent cost management under the 'Cost No Fee' structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.8 million to DDB CHICAGO INC.. US ARMY MARKETING AND ADVERTISING PROGRAM TASK ORDER. RFTO 19- 980 MEDIA

Who is the contractor on this award?

The obligated recipient is DDB CHICAGO INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $29.8 million.

What is the period of performance?

Start: 2019-08-21. End: 2020-03-31.

What is the track record of DDB Chicago Inc. with federal contracts, particularly within the Department of Defense?

DDB Chicago Inc. has a history of securing federal contracts, including those with the Department of Defense. While this specific task order is for $29.8 million, their broader experience likely encompasses various marketing and advertising initiatives for government clients. Analyzing past performance on similar contracts, including on-time delivery, quality of services, and adherence to budget, would provide a more comprehensive view of their track record. Information on previous awards and their value can often be found in federal procurement databases, offering insights into their capacity and reliability for large-scale campaigns.

How does the $29.8 million value compare to other federal advertising contracts awarded in recent years?

The $29.8 million value for this Army marketing and advertising task order is substantial but falls within the expected range for significant federal advertising campaigns. Large-scale efforts, such as those for recruitment, public health initiatives, or major public relations pushes, can easily reach or exceed this figure. For context, other federal agencies, including branches of the military and departments like Health and Human Services, have awarded contracts in the tens of millions for similar comprehensive advertising services. The 'Cost No Fee' pricing structure suggests a focus on managing direct costs, which is common in government contracting to ensure transparency and control over expenditures.

What are the primary risks associated with this type of advertising contract for the Army?

The primary risks for this advertising contract include potential misalignment between creative messaging and strategic objectives, leading to ineffective campaigns. There's also a risk of cost overruns if not managed tightly under the 'Cost No Fee' structure, despite its intent. Reputational risk could arise if campaigns are perceived negatively by the public or fail to meet recruitment or engagement goals. Furthermore, changes in strategic priorities or budget allocations within the Army could necessitate scope adjustments, posing a management challenge. Ensuring compliance with all federal advertising regulations and ethical standards is also a continuous risk area.

How effective are federal advertising programs like the US Army Marketing and Advertising Program in achieving their stated goals?

The effectiveness of federal advertising programs like the US Army Marketing and Advertising Program is multifaceted and depends heavily on clearly defined objectives and robust measurement. Programs aimed at recruitment, for instance, are often evaluated based on enlistment numbers and quality of recruits. Public awareness campaigns are assessed through surveys and media reach. While specific performance data for this task order isn't provided, the Army's continued investment in such programs suggests a perceived value in reaching target audiences. Success hinges on strategic planning, creative execution, accurate targeting, and consistent evaluation against key performance indicators.

What are the historical spending patterns for the US Army Marketing and Advertising Program, and how does this award fit in?

Historical spending on the US Army Marketing and Advertising Program typically fluctuates based on strategic priorities, recruitment needs, and overall budget allocations. While specific historical figures for this program are not detailed in the provided data, it's common for such programs to receive multi-million dollar funding annually. This $29.8 million task order represents a significant, but likely not unprecedented, investment for a defined period (August 2019 - March 2020). Analyzing past years' spending would reveal trends, peak spending periods, and the typical scale of awards, allowing for a contextual understanding of this particular contract's size within the program's history.

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: W9124D16R0046

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Omnicom Group Inc. (UEI: 147857429)

Address: 225 N MICHIGAN AVE FL 10, CHICAGO, IL, 60601

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

Financial Breakdown

Contract Ceiling: $29,794,386

Exercised Options: $29,794,386

Current Obligation: $29,794,386

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9124D19D0001

IDV Type: IDC

Timeline