DoD's $156M advertising contract with Campbell-Ewald Company awarded under full and open competition

Contract Overview

Contract Amount: $15,589,760 ($15.6M)

Contractor: Campbell-Ewald Company

Awarding Agency: Department of Defense

Start Date: 2007-05-31

End Date: 2008-07-31

Contract Duration: 427 days

Daily Burn Rate: $36.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPTION PERIOD 1 - SPACE CHARGES & MEDIA PLACEMENT

Place of Performance

Location: WARREN, MACOMB County, MICHIGAN, 48089

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $15.6 million to CAMPBELL-EWALD COMPANY for work described as: OPTION PERIOD 1 - SPACE CHARGES & MEDIA PLACEMENT Key points: 1. The contract value represents a significant investment in advertising services for the Department of the Navy. 2. Full and open competition suggests a potentially competitive bidding process, which can lead to better pricing. 3. The contract duration and firm fixed-price nature indicate a defined scope and cost structure. 4. The specific services, space charges and media placement, are critical for public outreach and recruitment. 5. The award to Campbell-Ewald Company places them as a key contractor for DoD's advertising needs. 6. The contract's option period structure allows for flexibility in extending services based on performance and need.

Value Assessment

Rating: good

Benchmarking the value of this specific contract is challenging without more granular data on the scope of media placement and advertising campaigns. However, the firm fixed-price structure provides cost certainty. Comparing to other large-scale government advertising contracts would be necessary for a more precise value assessment. The $155.9 million awarded over its potential lifespan suggests a substantial investment, implying a need for extensive reach and impact.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that there were two bids received suggests a moderate level of competition for this significant advertising contract. While two bidders is better than one, a higher number of bidders could potentially drive prices down further and offer a wider range of innovative solutions.

Taxpayer Impact: The competitive nature of this award, even with two bidders, is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source or limited competition scenario. It ensures that the government is not overpaying due to a lack of market alternatives.

Public Impact

The Department of the Navy benefits from enhanced advertising capabilities to support its missions, including recruitment and public awareness campaigns. The public benefits from information disseminated through various media channels, potentially increasing awareness of naval services and opportunities. The contract supports jobs within the advertising industry, specifically at Campbell-Ewald Company and its subcontractors. The geographic impact is national, given the nature of media placement and advertising campaigns for a federal agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial media placement and space charges are not precisely defined.
Risk of underperformance if advertising campaigns do not meet recruitment or awareness goals.
Dependency on a single contractor for critical advertising functions could pose a risk if performance issues arise.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a robust selection process.
Option periods allow for performance-based adjustments and continued service if needed.

Sector Analysis

The advertising industry is a dynamic sector involving creative services, media buying, and campaign management. Government contracts for advertising are crucial for public outreach, recruitment, and public service announcements. This contract fits within the broader federal spending on public relations and advertising, which aims to inform and engage the public. Comparable spending benchmarks would involve analyzing other large federal advertising procurements across different agencies.

Small Business Impact

This contract does not indicate any specific small business set-aside. The prime contractor, Campbell-Ewald Company, is a large advertising firm. There is potential for subcontracting opportunities for small businesses within the advertising ecosystem, such as specialized media buying firms, creative agencies, or research companies, but this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Navy. Accountability measures would be tied to the performance metrics outlined in the contract and the firm fixed-price agreement. Transparency is generally maintained through contract award databases and public reporting, though specific campaign details may be sensitive.

Related Government Programs

Department of Defense Advertising Contracts
Navy Recruitment Advertising
Federal Media Buying Services
Government Public Relations Contracts

Risk Flags

Potential for cost overruns if not managed tightly.
Risk of underperformance in achieving campaign objectives.
Dependency on contractor's strategic execution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.6 million to CAMPBELL-EWALD COMPANY. OPTION PERIOD 1 - SPACE CHARGES & MEDIA PLACEMENT

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 $15.6 million.

What is the period of performance?

Start: 2007-05-31. End: 2008-07-31.

What was the specific breakdown of media placement and space charges within the $155.9 million contract value?

The provided data does not detail the specific breakdown of media placement and space charges within the $155.9 million contract value. This level of granularity would typically be found in the contract's statement of work or detailed pricing appendices. Such information is crucial for understanding how the funds were allocated across different media channels (e.g., television, radio, digital, print) and the associated costs for securing that advertising space. Without this breakdown, a precise analysis of cost-effectiveness for each media type is not possible.

How did Campbell-Ewald Company's bid compare to other potential bidders in terms of price and proposed approach?

The data indicates that two bids were received for this contract, awarded under full and open competition. While we know Campbell-Ewald Company was the awardee, the specific details of how their bid compared to the other bidder(s) in terms of price and proposed approach are not publicly available in this summary. Typically, agencies evaluate bids based on a combination of technical merit and price. A thorough comparison would involve assessing factors like the proposed media mix, creative strategy, reach and frequency projections, and overall cost. The award suggests Campbell-Ewald's proposal was deemed the most advantageous to the government.

What were the key performance indicators (KPIs) used to evaluate the success of advertising campaigns under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate the success of advertising campaigns under this contract. For advertising contracts, common KPIs often include metrics related to reach, frequency, engagement, lead generation (e.g., website visits, inquiries), and ultimately, recruitment numbers or public awareness levels achieved. The effectiveness of the contract would be measured against these predefined goals, likely reviewed during option period decisions or at contract completion.

What is the historical spending pattern for advertising services by the Department of the Navy, and how does this contract compare?

Historical spending data for advertising services by the Department of the Navy is not provided here. However, the $155.9 million awarded over the contract's potential duration (approximately 14 months for the initial period) indicates a substantial and ongoing investment in advertising. To compare, one would need to examine previous contracts for similar services, noting trends in contract values, competition levels, and contractor performance over time. This contract appears to be a significant procurement, suggesting a sustained need for comprehensive advertising support.

What is the track record of Campbell-Ewald Company with federal advertising contracts, particularly with the Department of Defense?

Campbell-Ewald Company has a history of working with the Department of Defense on advertising contracts. As a large, established advertising agency, they have likely managed numerous government procurements. While specific details of past performance on DoD contracts are not in this data snippet, their selection for this significant contract suggests a positive track record and proven capability in meeting the government's advertising needs. Further investigation into their contract history would reveal the scope and success of their previous engagements.

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: N0014005R0038

Offers Received: 2

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, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,589,760

Exercised Options: $15,589,760

Current Obligation: $15,589,760

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0014006D0005

IDV Type: IDC

Timeline