Army Awards $10.7M Task Order for Creative, Development, and Production Services to DDB Chicago Inc

Contract Overview

Contract Amount: $10,734,075 ($10.7M)

Contractor: DDB Chicago Inc.

Awarding Agency: Department of Defense

Start Date: 2024-12-20

End Date: 2025-12-19

Contract Duration: 364 days

Daily Burn Rate: $29.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: ARMY AD CONTRACT - TASK ORDER FY25 CREATIVE, DEVELOPMENT, AND PRODUCTION (CD&P)

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60601

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $10.7 million to DDB CHICAGO INC. for work described as: ARMY AD CONTRACT - TASK ORDER FY25 CREATIVE, DEVELOPMENT, AND PRODUCTION (CD&P) Key points: 1. The contract focuses on advertising and marketing services, a common area for federal spending. 2. DDB Chicago Inc. is a known entity in the advertising industry. 3. The primary risk lies in ensuring the effectiveness and value of creative services procured. 4. Spending in the advertising sector can vary significantly based on campaign needs and agency scope.

Value Assessment

Rating: fair

The contract value of $10.7M for a one-year period appears within a reasonable range for comprehensive creative, development, and production services. Benchmarking against similar large-scale advertising contracts would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method allows multiple vendors to bid, theoretically leading to competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for advertising services, with the expectation of effective communication and outreach. The value for money will depend on the success of the campaigns executed under this contract.

Public Impact

Public perception of government advertising campaigns can be influenced by the quality and creativity of the work produced. Effective use of taxpayer funds in this area can enhance public understanding of government initiatives. The contract supports the Army's communication goals, potentially impacting public engagement with military recruitment and information.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in creative and development tasks.
Measuring the ROI of creative advertising can be challenging.
Ensuring consistent brand messaging across all deliverables.

Positive Signals

Awarded through full and open competition.
Clear contract duration of one year.
Focus on essential creative and production services.

Sector Analysis

This contract falls within the advertising and marketing sector, which supports various government agencies in their communication efforts. Benchmarks for this sector are highly variable, depending on the scope and scale of campaigns.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. The awardee, DDB Chicago Inc., is a large advertising firm, suggesting limited direct opportunities for small businesses as prime contractors on this specific task order.

Oversight & Accountability

Standard oversight mechanisms for task orders under larger contracts would apply. Ensuring clear performance metrics and regular reviews will be crucial for accountability and effective service delivery.

Related Government Programs

Advertising Agencies
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost-plus contract type can lead to cost uncertainty.
Measuring ROI for creative services is inherently difficult.
Potential for scope creep in development and production.
Reliance on a single vendor for a year of services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.7 million to DDB CHICAGO INC.. ARMY AD CONTRACT - TASK ORDER FY25 CREATIVE, DEVELOPMENT, AND PRODUCTION (CD&P)

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 $10.7 million.

What is the period of performance?

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

How will the effectiveness of the creative, development, and production services be measured to ensure value for taxpayer money?

Effectiveness will likely be measured through predefined Key Performance Indicators (KPIs) tied to campaign objectives, such as reach, engagement, lead generation, or brand awareness shifts. Regular performance reviews between the Army and DDB Chicago Inc. will assess progress against these KPIs, ensuring the services align with strategic communication goals and justify the investment.

What are the primary risks associated with procuring creative services through a cost-plus-fixed-fee contract, and how are they mitigated?

The primary risk with Cost Plus Fixed Fee (CPFF) is the potential for cost overruns if the contractor's costs exceed estimates, although the fixed fee provides a ceiling for profit. Mitigation involves robust cost tracking, detailed statements of work, and clear approval processes for expenditures. The government's oversight team must diligently monitor costs and contractor performance to prevent unnecessary expenses.

Given the full and open competition, how can the Army ensure this contract represents the best possible value compared to alternative procurement methods?

The full and open competition process itself is designed to solicit the best value by allowing multiple qualified vendors to compete. The Army should ensure the evaluation criteria weighted factors beyond just price, including technical approach, past performance, and understanding of requirements. Comparing the awarded price and proposed approach against market research and potential sole-source alternatives post-award can further validate the value.

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 PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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: $11,134,075

Exercised Options: $11,134,075

Current Obligation: $10,734,075

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $4,819,736

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9124D19D0001

IDV Type: IDC

Timeline