DoD's $10.3M Marketing Consulting Contract with EXHIBIT ARTS, LLC Raises Questions on Value and Competition
Contract Overview
Contract Amount: $10,306,736 ($10.3M)
Contractor: Exhibit Arts. LLC
Awarding Agency: Department of Defense
Start Date: 2007-05-25
End Date: 2011-06-30
Contract Duration: 1,497 days
Daily Burn Rate: $6.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: NCESGR ADVERTISING AND MARKETING SERVICES
Place of Performance
Location: WICHITA, SEDGWICK County, KANSAS, 67201
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $10.3 million to EXHIBIT ARTS. LLC for work described as: NCESGR ADVERTISING AND MARKETING SERVICES Key points: 1. Contract awarded for marketing consulting services, totaling over $10.3 million. 2. EXHIBIT ARTS, LLC secured the contract under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. 3. The contract duration was 1497 days, ending in June 2011. 4. Analysis needed to assess the value and effectiveness of marketing consulting services provided. 5. Small business participation is noted as false, indicating no direct benefit.
Value Assessment
Rating: questionable
The contract value of $10.3 million for marketing consulting services over nearly four years warrants scrutiny. Benchmarking against similar government or private sector contracts for marketing consulting is essential to determine if the pricing was competitive and delivered adequate value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition approach. This method can sometimes lead to higher prices and reduced innovation compared to unrestricted full and open competition.
Taxpayer Impact: The significant expenditure of taxpayer funds on this contract necessitates a thorough review to ensure it was cost-effective and achieved its intended marketing objectives.
Public Impact
Taxpayers funded over $10 million for marketing consulting services. The contract's limited competition structure may have impacted cost efficiency. Effectiveness of marketing strategies and their return on investment for the DoD is unclear. Lack of small business involvement in this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method
- Lack of small business participation
- Long contract duration without clear performance metrics
Positive Signals
- Contract awarded by Department of Defense
- Firm Fixed Price contract type
Sector Analysis
Marketing consulting services fall under professional services, often categorized within the broader IT or administrative support sectors. Benchmarking this contract's value against similar government procurements for marketing expertise is crucial for assessing its fiscal prudence.
Small Business Impact
The data indicates that small business participation was false (ss: false, sb: false). This suggests that small businesses were not involved in the performance of this contract, which could be a missed opportunity for economic development and diversity in contracting.
Oversight & Accountability
Oversight of this contract would involve monitoring the performance of EXHIBIT ARTS, LLC against defined objectives and ensuring compliance with contract terms. Regular reporting and performance reviews are key to accountability.
Related Government Programs
- Marketing Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential overpayment due to limited competition
- Lack of transparency in performance metrics
- Absence of small business participation
- Questionable value for money
- Expired contract, making current assessment difficult
Tags
marketing-consulting-services, department-of-defense, ks, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.3 million to EXHIBIT ARTS. LLC. NCESGR ADVERTISING AND MARKETING SERVICES
Who is the contractor on this award?
The obligated recipient is EXHIBIT ARTS. LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $10.3 million.
What is the period of performance?
Start: 2007-05-25. End: 2011-06-30.
What specific marketing objectives were established for this contract, and how was their achievement measured to justify the $10.3 million expenditure?
The provided data does not detail specific marketing objectives or performance metrics. A thorough review would require access to the contract's statement of work, performance reports, and any post-award evaluations to determine if the $10.3 million investment yielded measurable results and met the Department of Defense's strategic goals.
How did the 'exclusion of sources' in the competition process impact the final price and the range of marketing solutions considered?
Excluding sources, even within a framework of 'full and open competition,' inherently limits the pool of potential offerors. This restriction can reduce competitive pressure, potentially leading to higher prices than might be achieved in an unrestricted competition. It also narrows the diversity of approaches and innovations that could have been brought to bear on the marketing challenges.
Given the contract ended in 2011, what lessons were learned regarding the effectiveness and cost-efficiency of marketing consulting services procured under similar limited competition structures?
Lessons learned would likely focus on the trade-offs between specialized expertise gained through limited competition and the potential for cost savings and broader innovation in unrestricted environments. Evaluating the long-term impact of the marketing strategies implemented and comparing the cost per outcome against alternative procurement methods would provide valuable insights for future DoD marketing service acquisitions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Marketing Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W91LV206R0014
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 330 N ATHENIAN ST, WICHITA, KS, 04
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business
Financial Breakdown
Contract Ceiling: $11,647,184
Exercised Options: $10,306,736
Current Obligation: $10,306,736
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-05-25
Current End Date: 2011-06-30
Potential End Date: 2012-06-30 00:00:00
Last Modified: 2010-09-29
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