Transportation awards $41M for media communications support, continuing services for NHTSA

Contract Overview

Contract Amount: $40,550,491 ($40.6M)

Contractor: Charles Tombras Advertising, Inc.

Awarding Agency: Department of Transportation

Start Date: 2016-06-01

End Date: 2017-05-31

Contract Duration: 364 days

Daily Burn Rate: $111.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::CT::IGF TITLE: 2016 NATIONAL AND REGIONAL MEIDA COMMUNICATIONS SUPPORT SERVICES - BASE 4 DESCRIPTION: THIS PROCUREMENT SEEKS TO ISSUE A NEW TASK ORDER UNDER DTNH22-13-D-00280L TO CONTINUE THE BASE LEVEL-OF-EFFORT TO SUPPORT NHTSA COMMUNICATION SERVICES AND ACTIVITIES. THE ATTACHED STATEMENT OF WORK DETAILS THE ACTIVITIES TO BE CONDUCTED DURING THE PERIOD JUNE 01, 2016 THROUGH MAY 31, 2017. THIS TASK ORDER WILL BE INCREMENTALLY FUNDED BECAUSE OALL OF THE STATUTORILY-MANDATED MEDIA BUY FUNDING WILL NOT BE UNTIL FY 17. ESTIMATED BUDGET: $41,000,000.00 FY 16: $23,000,000.00 FY 17: $18,000,000.00 FUNCTIONAL AREA - ESTIMATED CEILING - $3,000,000.00 MISCELLANEOUS DIRECT COST - ESTIMATED CEILING - $3,710,000.00 STATUTORILY-MANDATED FUNDING - ESTIMATED CEILING - $36,000,000.00 DISCRETIONAL ADVERTISING - ESTIMATED CEILING - $0.00 OCCI IS REQUSTING THIS REQUISITION BE PROCESSED WITH AN EFFECTIVE DATE OF JUNE 1, 2016. THE CURRENT BASE LEVEL-OF-EFFORT EXPIRES ON MAY 31, 2016. SUPPORTING DOCUMENTS: 16-00144 SIGNED 4200 16-00144 STATEMENT OF WORK 16-00144 IGCE 16-00144 D&F CHECKLIST 16-00144 EVALUATION FACTORS

Place of Performance

Location: KNOXVILLE, KNOX County, TENNESSEE, 37919

State: Tennessee Government Spending

Plain-Language Summary

Department of Transportation obligated $40.6 million to CHARLES TOMBRAS ADVERTISING, INC. for work described as: IGF::CT::IGF TITLE: 2016 NATIONAL AND REGIONAL MEIDA COMMUNICATIONS SUPPORT SERVICES - BASE 4 DESCRIPTION: THIS PROCUREMENT SEEKS TO ISSUE A NEW TASK ORDER UNDER DTNH22-13-D-00280L TO CONTINUE THE BASE LEVEL-OF-EFFORT TO SUPPORT NHTSA COMMUNICATION SERVICES AND ACTIVITIES. T… Key points: 1. Contract value of $41 million for a one-year period indicates significant investment in national and regional media outreach. 2. The award is a delivery order under an existing contract, suggesting a continuation of established services rather than a new initiative. 3. Incremental funding across FY16 and FY17 is noted, with a portion tied to statutorily-mandated media buy funding. 4. The functional area and miscellaneous direct costs have estimated ceilings, implying potential for flexibility within the overall budget. 5. The contract type is Time and Materials, which can present cost control challenges if not closely monitored. 6. The primary contractor, Charles Tombras Advertising, Inc., is awarded this task order, indicating prior experience or a competitive win.

Value Assessment

Rating: fair

The total estimated value of $41 million for a one-year period for national and regional media communications support appears substantial. Benchmarking against similar large-scale advertising contracts for federal agencies would be necessary for a precise value-for-money assessment. The Time and Materials (T&M) contract type, while offering flexibility, can lead to higher costs if not managed diligently, especially when compared to fixed-price contracts. Without detailed cost breakdowns or comparisons to industry benchmarks for media buys and creative services, it's difficult to definitively assess if this represents excellent value.

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 likely had the opportunity to submit proposals. The data does not specify the number of bidders, but full and open competition generally fosters a more competitive environment, which can lead to better pricing and service offerings. As a delivery order under an existing contract (DTNH22-13-D-00280L), the initial competition for the parent contract is relevant, but this specific task order's competition level is key.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive prices and encourages a wider range of innovative solutions.

Public Impact

The primary beneficiary is the National Highway Traffic Safety Administration (NHTSA), which will receive continued support for its communication services and activities. Services delivered include national and regional media communications, crucial for public awareness campaigns related to traffic safety. The geographic impact is national, covering various regions for media outreach and campaign dissemination. Workforce implications are primarily for the contractor, Charles Tombras Advertising, Inc., and potentially subcontractors, though specific numbers are not provided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type carries inherent risks of cost overruns if not meticulously managed and monitored for labor hours and material costs.
The reliance on an existing contract vehicle (DTNH22-13-D-00280L) means the initial competition and terms were set previously; the current task order's specific value proposition needs separate scrutiny.
Lack of specific detail on the number of bidders for this task order makes it harder to fully assess the competitive pressure applied.
The incremental funding approach, while practical for budget timing, can sometimes obscure the total commitment and lead to scope creep if not managed carefully.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process that should yield competitive pricing.
The contract is a delivery order under an established IDIQ, implying the contractor has a proven track record with the agency or on the parent contract.
The clear definition of services and period of performance (June 1, 2016 - May 31, 2017) provides a defined scope for the work.
The estimated ceilings for functional areas and direct costs suggest some level of pre-defined budgetary controls within the task order.

Sector Analysis

This contract falls within the Advertising Agencies (NAICS 541810) sector, which is a critical component of the broader professional, scientific, and technical services industry. Federal spending in this sector supports a wide range of government communication needs, from public awareness campaigns to strategic messaging. The total estimated value of $41 million for this single task order is significant, reflecting the scale of national media campaigns. Comparable spending benchmarks would involve looking at other large federal agencies' media buys and integrated communications contracts, which often run into tens or hundreds of millions of dollars annually.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside for this particular delivery order. This suggests that the competition was open to all eligible large and small businesses. There is no explicit mention of subcontracting requirements for small businesses within this task order's description. Therefore, the direct impact on the small business ecosystem from this specific award appears minimal, though the prime contractor may engage small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation and the National Highway Traffic Safety Administration (NHTSA). As a delivery order under an existing contract, oversight may leverage existing mechanisms established for the parent contract (DTNH22-13-D-00280L). The Time and Materials nature of the contract necessitates close monitoring of labor hours and costs by the Contracting Officer's Representative (COR) to ensure compliance and prevent overspending. Transparency is facilitated through contract award databases, but detailed performance metrics and cost justifications are typically internal.

Related Government Programs

Federal Communications Contracts
Public Awareness Campaigns
Marketing and Advertising Services
National Highway Traffic Safety Administration Programs
Department of Transportation Contracts

Risk Flags

Time and Materials Contract Type Risk
Incremental Funding Uncertainty
Potential for Cost Overruns
Limited Detail on Bid Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $40.6 million to CHARLES TOMBRAS ADVERTISING, INC.. IGF::CT::IGF TITLE: 2016 NATIONAL AND REGIONAL MEIDA COMMUNICATIONS SUPPORT SERVICES - BASE 4 DESCRIPTION: THIS PROCUREMENT SEEKS TO ISSUE A NEW TASK ORDER UNDER DTNH22-13-D-00280L TO CONTINUE THE BASE LEVEL-OF-EFFORT TO SUPPORT NHTSA COMMUNICATION SERVICES AND ACTIVITIES. THE ATTACHED STATEMENT OF WORK DETAILS THE ACTIVITIES TO BE CONDUCTED DURING THE PERIOD JUNE 01, 2016 THROUGH MAY 31, 2017. THIS TASK ORDER WILL BE INCREMENTALLY FUNDED BECAUSE OALL OF THE STATUTORILY-MANDATED MEDIA BUY

Who is the contractor on this award?

The obligated recipient is CHARLES TOMBRAS ADVERTISING, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (National Highway Traffic Safety Administration).

What is the total obligated amount?

The obligated amount is $40.6 million.

What is the period of performance?

Start: 2016-06-01. End: 2017-05-31.

What is the historical spending pattern for media communications support services by NHTSA or the Department of Transportation?

Analyzing historical spending requires access to detailed contract databases over multiple fiscal years. However, the fact that this is a task order under an existing contract (DTNH22-13-D-00280L) suggests a continuity of need for these services. Federal agencies like NHTSA regularly procure advertising and communications support to fulfill their mandates, such as public safety campaigns. Spending can fluctuate based on specific initiatives, budget allocations, and the duration of contract vehicles. Without specific historical data for this contract vehicle or similar ones, it's difficult to establish a precise trend, but the $41 million figure for a one-year period indicates a substantial, ongoing requirement.

How does the $41 million estimated budget compare to similar federal advertising contracts?

The $41 million estimated budget for a one-year media communications support contract is significant, placing it in the upper tier of federal advertising procurements. Large federal agencies, particularly those with broad public outreach mandates like the Department of Defense, Health and Human Services, or Transportation, often award contracts in this range or higher for comprehensive media campaigns. For instance, major public health initiatives or national security awareness campaigns can command budgets exceeding $50-100 million annually. This contract's value is consistent with large-scale, national-level communication efforts required by an agency like NHTSA.

What are the specific risks associated with the Time and Materials (T&M) contract type for this service?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. This structure provides flexibility but requires rigorous oversight from the government to ensure that labor hours are reasonable and necessary, and that material costs are fair. Without strong government monitoring and defined ceiling prices for labor categories and materials, the total cost can exceed initial estimates. For media communications, this could manifest as extended project timelines or increased scope without a corresponding increase in the government's ability to control the final price.

What is the track record of Charles Tombras Advertising, Inc. with federal contracts, particularly with NHTSA?

Charles Tombras Advertising, Inc. has a history of receiving federal contracts. As the recipient of this delivery order under contract DTNH22-13-D-00280L, it indicates a prior relationship or successful bid for the parent contract. Federal procurement data typically shows award history, including agencies served, contract types, and values. A deeper dive into the Federal Procurement Data System (FPDS) or similar databases would reveal the extent and nature of their federal work. Their selection for this task order suggests they met the agency's requirements and potentially offered competitive terms, implying a degree of established performance or capability relevant to NHTSA's needs.

How does the incremental funding impact the overall value and risk of this contract?

Incremental funding means that the contract is funded in increments, typically tied to specific fiscal years or budget availability, rather than being fully funded upfront. For this $41 million contract, funding is split between FY16 ($23 million) and FY17 ($18 million), partly due to statutorily-mandated media buy funding timelines. The primary impact is on budget management and cash flow for both the government and the contractor. From a risk perspective, it ensures that funds are only obligated as they become available, reducing upfront financial exposure for the government. However, it also means the contract's continuation is subject to future appropriations, introducing a slight risk that funding might not be fully allocated if priorities shift, although this is less common for established programs.

What does the 'functional area' and 'miscellaneous direct cost' ceiling imply for contract flexibility?

The presence of estimated ceilings for 'functional area' (e.g., $3,000,000.00) and 'miscellaneous direct cost' (e.g., $3,710,000.00) within the overall $41 million budget suggests that NHTSA has allocated specific portions of the funding for distinct categories of services or expenses. These ceilings provide a degree of flexibility, allowing the contractor to utilize funds within these limits as needed to execute the SOW. However, they also act as internal controls, preventing overspending in these specific areas without modification. This structure allows for adaptation to evolving communication needs while maintaining budgetary discipline across key cost drivers.

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

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 630 CONCORD ST, KNOXVILLE, TN, 37919

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

Financial Breakdown

Contract Ceiling: $57,111,872

Exercised Options: $57,111,872

Current Obligation: $40,550,491

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTNH2213D00280

IDV Type: IDC

Timeline