DOD awards $9.95M contract for campaign support and creative services to DDB Chicago Inc
Contract Overview
Contract Amount: $9,949,854 ($9.9M)
Contractor: DDB Chicago Inc.
Awarding Agency: Department of Defense
Start Date: 2025-12-20
End Date: 2026-12-19
Contract Duration: 364 days
Daily Burn Rate: $27.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: THIS TASK ORDER PROVIDES CAMPAIGN SUPPORT TESTING, PRODUCT AND CAMPAIGN STRATEGY, CREATIVE DEVELOPMENT, CREATIVE PRODUCTION, AND OPTIMIZATION.
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60601
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $9.9 million to DDB CHICAGO INC. for work described as: THIS TASK ORDER PROVIDES CAMPAIGN SUPPORT TESTING, PRODUCT AND CAMPAIGN STRATEGY, CREATIVE DEVELOPMENT, CREATIVE PRODUCTION, AND OPTIMIZATION. Key points: 1. Contract focuses on comprehensive campaign support, strategy, and production. 2. DDB Chicago Inc. is a well-established advertising agency. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract spans two years, indicating a medium-term engagement.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar advertising contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that 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 and campaign support services, with the cost determined through a competitive process.
Public Impact
Public awareness campaigns may be developed or enhanced through this contract. Creative content and advertising strategies will be produced, potentially impacting public perception. The Department of Defense will leverage external expertise for its communication efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Lack of specific performance metrics makes outcome assessment challenging.
Positive Signals
- Full and open competition ensures a broad vendor pool.
- Experienced contractor selected for specialized services.
Sector Analysis
This contract falls within the advertising and marketing sector, specifically for agency services. Spending benchmarks for similar government advertising contracts vary widely based on scope and duration, but $9.95M for a two-year campaign support effort is a significant investment.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. The primary awardee is a large, established agency.
Oversight & Accountability
Oversight will be crucial to ensure the Cost Plus Fixed Fee structure does not lead to excessive costs and that deliverables meet the Department of Defense's strategic objectives.
Related Government Programs
- Advertising Agencies
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Lack of defined performance metrics.
- Potential for cost overruns.
- Limited insight into specific campaign objectives.
Tags
advertising-agencies, department-of-defense, il, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.9 million to DDB CHICAGO INC.. THIS TASK ORDER PROVIDES CAMPAIGN SUPPORT TESTING, PRODUCT AND CAMPAIGN STRATEGY, CREATIVE DEVELOPMENT, CREATIVE PRODUCTION, AND OPTIMIZATION.
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 $9.9 million.
What is the period of performance?
Start: 2025-12-20. End: 2026-12-19.
What specific metrics will be used to evaluate the success of the campaign support and creative production?
The contract details do not explicitly state the performance metrics for evaluating the success of the campaign support and creative production. Effective oversight would require defining clear, measurable objectives related to campaign reach, engagement, and impact on strategic goals. Without these, assessing the true value and effectiveness of the $9.95M investment becomes challenging.
How will the Cost Plus Fixed Fee structure be managed to mitigate potential cost overruns?
Managing a Cost Plus Fixed Fee contract requires robust oversight to control costs. The agency must closely monitor all direct and indirect costs incurred by DDB Chicago Inc. and ensure they align with the fixed fee. Regular audits and clear communication channels are essential to prevent scope creep and ensure that the final cost remains justified by the value delivered.
What is the anticipated impact of these campaign strategies on the Department of Defense's public image or recruitment efforts?
The anticipated impact on the Department of Defense's public image or recruitment efforts is not detailed in the provided data. The contract's focus on 'campaign support testing, product and campaign strategy, creative development, creative production, and optimization' suggests an intent to improve communication effectiveness. The success of this impact will depend on the quality of the creative output and the strategic alignment with DOD objectives.
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: W9124D25R17Z3
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: $13,038,465
Exercised Options: $13,038,465
Current Obligation: $9,949,854
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
Start Date: 2025-12-20
Current End Date: 2026-12-19
Potential End Date: 2026-12-19 00:00:00
Last Modified: 2025-12-19
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