Treasury's $31.7M Advertising Contract with True North Communications Inc. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $31,723,394 ($31.7M)
Contractor: True North Communications Inc
Awarding Agency: Department of the Treasury
Start Date: 2010-05-01
End Date: 2012-03-31
Contract Duration: 700 days
Daily Burn Rate: $45.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ADVERTISING AND MEDIA BUYING SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20503
Plain-Language Summary
Department of the Treasury obligated $31.7 million to TRUE NORTH COMMUNICATIONS INC for work described as: ADVERTISING AND MEDIA BUYING SERVICES Key points: 1. The contract value is $31.7 million, primarily for advertising and media buying services. 2. True North Communications Inc. was the awardee under a full and open competition. 3. The contract was awarded by the Bureau of the Fiscal Service, Department of the Treasury. 4. The contract duration was 700 days, with a firm fixed price. 5. No small business participation was reported for this contract.
Value Assessment
Rating: fair
The contract value of $31.7 million for advertising services over approximately two years appears within a reasonable range for large-scale media buying. Benchmarking against similar government-wide contracts for advertising services would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which generally promotes competitive pricing and allows for a broad range of potential contractors to bid. The use of a BPA (Blanket Purchase Agreement) suggests a streamlined procurement process for ongoing needs.
Taxpayer Impact: Full and open competition is intended to secure the best value for taxpayers by fostering a competitive environment that drives down costs and improves service quality.
Public Impact
Taxpayers benefit from competitive bidding processes that aim to secure cost-effective advertising and media buying services for government agencies. The contract supports federal agencies in reaching the public with important information and campaigns. Transparency in government contracting allows for public scrutiny of spending on services like advertising.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of reported small business participation.
- Contract duration of 700 days may limit flexibility for evolving advertising needs.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
Sector Analysis
The advertising and media buying sector is crucial for government communication. Spending benchmarks vary widely based on campaign scope and media channels. This contract's value is significant for a single award, suggesting a substantial scope of work.
Small Business Impact
This contract did not report any small business participation. This could indicate that the prime contractor did not subcontract to small businesses, or that the nature of the services did not lend itself to small business involvement.
Oversight & Accountability
The Department of the Treasury, through its Bureau of the Fiscal Service, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms would apply to ensure compliance and performance.
Related Government Programs
- Public Relations Agencies
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- No small business participation reported.
- Contract duration may be lengthy for dynamic advertising market.
- Specific performance metrics and outcomes not detailed in provided data.
- Potential for cost overruns if scope significantly expands beyond initial BPA.
Tags
public-relations-agencies, department-of-the-treasury, dc, bpa, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $31.7 million to TRUE NORTH COMMUNICATIONS INC. ADVERTISING AND MEDIA BUYING SERVICES
Who is the contractor on this award?
The obligated recipient is TRUE NORTH COMMUNICATIONS INC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).
What is the total obligated amount?
The obligated amount is $31.7 million.
What is the period of performance?
Start: 2010-05-01. End: 2012-03-31.
What was the specific scope of advertising and media buying services procured under this contract, and how did it align with the agency's communication goals?
The contract was for 'Advertising and Media Buying Services' (NAICS 541820). While the specific campaigns or objectives are not detailed, such services typically encompass strategy development, media planning and placement, creative execution, and performance tracking. The Bureau of the Fiscal Service likely utilized these services to disseminate public information, promote government initiatives, or manage public awareness campaigns relevant to their mission.
Given the firm fixed price structure, what mechanisms were in place to ensure the contractor delivered effective advertising outcomes and value for money?
A firm fixed price contract establishes a ceiling price for the work. Value for money is typically ensured through detailed performance work statements, clear deliverables, and potentially performance metrics or key performance indicators (KPIs) within the contract. The agency would monitor the contractor's adherence to these requirements and the quality of services provided to ensure the advertising efforts met objectives.
How does the reported lack of small business participation impact the government's broader goals for small business utilization in federal contracting?
The absence of reported small business participation is a missed opportunity to support small business growth and diversity within the federal contracting landscape. Agencies are generally encouraged to meet specific small business subcontracting goals. This contract's profile suggests either no subcontracting occurred or that small businesses were not engaged, which may warrant further inquiry if small business utilization is a key agency objective.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Advertising, Public Relations, and Related Services › Public Relations Agencies
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Interpublic Group of Companies Inc (UEI: 006985790)
Address: 150 E 42ND ST, NEW YORK, NY, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,723,394
Exercised Options: $31,723,394
Current Obligation: $31,723,394
Parent Contract
Parent Award PIID: TPDNDCBPA100001
IDV Type: BPA
Timeline
Start Date: 2010-05-01
Current End Date: 2012-03-31
Potential End Date: 2012-03-31 00:00:00
Last Modified: 2013-11-29
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