DoD's Navy Awards $19.6M for Advertising Services to Campbell-Ewald Company
Contract Overview
Contract Amount: $19,644,063 ($19.6M)
Contractor: Campbell-Ewald Company
Awarding Agency: Department of Defense
Start Date: 2011-09-14
End Date: 2012-09-13
Contract Duration: 365 days
Daily Burn Rate: $53.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: OPTION PERIOD 2 - SPACE CHARGES, MEDIA
Place of Performance
Location: PORTSMOUTH, PORTSMOUTH (CITY) County, VIRGINIA, 23709
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $19.6 million to CAMPBELL-EWALD COMPANY for work described as: OPTION PERIOD 2 - SPACE CHARGES, MEDIA Key points: 1. The contract is for advertising services, a common government expenditure. 2. Campbell-Ewald Company is a known entity in the advertising sector. 3. The contract value is significant, warranting scrutiny for value and effectiveness. 4. The sector is advertising, with many potential providers. 5. Potential risks include overspending and ineffective campaign execution.
Value Assessment
Rating: fair
The contract value of $19.6M for one year of service appears high for advertising agencies. Benchmarking against similar contracts for media buys and creative services is needed to assess if this price is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing mechanisms and the impact of the chosen firm fixed price contract on price discovery are not detailed.
Taxpayer Impact: Taxpayer funds are being used for advertising services. The effectiveness of these services in achieving agency goals will determine the ultimate value for taxpayers.
Public Impact
Public funds are allocated for advertising, raising questions about necessity and efficiency. The effectiveness of the advertising campaign will impact public perception and agency outreach. Transparency in how these funds are utilized is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value for a single year.
- Lack of detailed performance metrics.
- Potential for scope creep.
Positive Signals
- Awarded through full and open competition.
- Established contractor with industry experience.
Sector Analysis
The advertising sector is dynamic, with numerous agencies capable of providing services. Government spending in this area typically focuses on public awareness campaigns, recruitment, and information dissemination. Benchmarks vary widely based on campaign scope and media channels.
Small Business Impact
While the contract was awarded through full and open competition, there is no specific indication of small business participation or subcontracting goals. This contract may not directly benefit small businesses unless they are part of the prime contractor's supply chain.
Oversight & Accountability
Oversight would typically involve monitoring campaign performance, adherence to budget, and contractor deliverables. The effectiveness of oversight depends on clear performance metrics and regular reporting from the contractor.
Related Government Programs
- Advertising Agencies
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- High annual cost.
- Lack of specific performance metrics.
- Potential for uncompetitive pricing despite competition.
- Limited visibility into small business utilization.
Tags
advertising-agencies, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.6 million to CAMPBELL-EWALD COMPANY. OPTION PERIOD 2 - SPACE CHARGES, MEDIA
Who is the contractor on this award?
The obligated recipient is CAMPBELL-EWALD COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $19.6 million.
What is the period of performance?
Start: 2011-09-14. End: 2012-09-13.
What specific advertising objectives does this contract aim to achieve, and how will success be measured?
The contract likely aims to support Department of the Navy initiatives, such as recruitment, public awareness, or specific campaign messaging. Success measurement would ideally involve quantifiable metrics like reach, engagement, conversion rates, or shifts in public opinion, tied directly to the stated objectives. Without clear objectives and metrics, assessing value is difficult.
What is the risk of the $19.6M being an inefficient use of taxpayer funds given the advertising market?
The risk of inefficiency exists if the pricing is not competitive or if the campaign fails to achieve its objectives. Full and open competition mitigates some pricing risk, but the firm fixed price could lead to the contractor maximizing profit over optimal value. Without detailed cost breakdowns and performance data, it's hard to definitively assess efficiency.
How effective is the chosen advertising strategy likely to be in reaching the target audience and achieving campaign goals?
Effectiveness depends heavily on the contractor's strategic approach, creative execution, and media placement. Campbell-Ewald's experience suggests a capacity for effective campaigns. However, the specific strategy, target audience, and chosen media channels are critical factors not detailed here. Success hinges on aligning the strategy with measurable campaign goals.
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: N0018908RZ039
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Interpublic Group of Companies Inc (UEI: 006985790)
Address: 30400 VAN DYKE AVE, WARREN, MI, 10
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $19,742,007
Exercised Options: $19,742,007
Current Obligation: $19,644,063
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0018909DZ040
IDV Type: IDC
Timeline
Start Date: 2011-09-14
Current End Date: 2012-09-13
Potential End Date: 2012-09-13 00:00:00
Last Modified: 2013-10-24
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