DoD's $40M Option Period 1 for Space Charges & Media Placement Awarded to Campbell-Ewald

Contract Overview

Contract Amount: $40,000,000 ($40.0M)

Contractor: Campbell-Ewald Company

Awarding Agency: Department of Defense

Start Date: 2007-09-28

End Date: 2008-09-27

Contract Duration: 365 days

Daily Burn Rate: $109.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: 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 $40.0 million to CAMPBELL-EWALD COMPANY for work described as: OPTION PERIOD 1 - SPACE CHARGES & MEDIA PLACEMENT Key points: 1. The contract is for advertising services, specifically space charges and media placement. 2. Awarded to Campbell-Ewald Company, a single vendor for this option period. 3. The contract value is $40 million for a 365-day period. 4. This falls under the Advertising Agencies (NAICS 541810) sector.

Value Assessment

Rating: fair

The contract value of $40 million for one year of advertising services appears substantial. Benchmarking against similar large-scale media placement contracts would be necessary to determine if the pricing 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 details of the bidding and how price discovery was achieved are not provided.

Taxpayer Impact: The $40 million expenditure represents taxpayer funds allocated for advertising services, the effectiveness and necessity of which warrant scrutiny.

Public Impact

Taxpayers are funding a significant advertising contract for the Department of the Navy. The effectiveness of this media placement in achieving DoD's communication goals is a key public interest. Transparency in how this $40 million is spent and the return on investment are crucial for public accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics.
Potential for cost overruns if not managed tightly.
Effectiveness of media placement is difficult to quantify.

Positive Signals

Awarded through full and open competition.
Clear contract duration and value.
Specific service category identified.

Sector Analysis

The advertising and media placement sector is highly dynamic, with costs varying significantly based on media channels, reach, and campaign objectives. Benchmarking against industry standards for similar government campaigns is essential.

Small Business Impact

No specific information is provided regarding the involvement of small businesses in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

Oversight would focus on ensuring that the awarded funds are used efficiently and effectively for their intended purpose, with regular reporting on campaign performance and expenditures.

Related Government Programs

Advertising Agencies
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for inefficient spending if media strategy is not optimized.
Difficulty in directly attributing specific outcomes to media spend.
Reliance on a single vendor for this option period.
Lack of transparency on specific performance metrics and ROI.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.0 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 $40.0 million.

What is the period of performance?

Start: 2007-09-28. End: 2008-09-27.

What specific advertising goals does this $40 million contract aim to achieve for the Department of the Navy, and how will success be measured?

The contract's primary goal is likely to support the Navy's recruitment, public relations, or specific campaign objectives through strategic space charges and media placement. Success measurement would typically involve metrics like reach, frequency, engagement rates, brand awareness shifts, or lead generation, depending on the campaign's specific aims. Detailed performance metrics should be outlined in the contract's statement of work.

Given the full and open competition, what was the range of bids received, and how did Campbell-Ewald's proposal stand out to justify the $40 million award?

While awarded under full and open competition, the specific bid range is not detailed here. Campbell-Ewald's winning proposal likely demonstrated a superior understanding of the Navy's needs, a more effective media strategy, competitive pricing within the evaluated bids, and potentially a stronger past performance record. A thorough evaluation process would have weighed these factors to determine the best value.

How will the effectiveness of the media placement be tracked and reported to ensure taxpayer funds are being used judiciously?

Effectiveness tracking typically involves a combination of media monitoring, audience surveys, and campaign-specific analytics. The Department of the Navy would likely require regular reports from Campbell-Ewald detailing media placements, reach, frequency, and key performance indicators aligned with campaign objectives. Independent verification or audits might also be employed to ensure accountability and validate reported results.

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: 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, 48093

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $40,000,000

Exercised Options: $40,000,000

Current Obligation: $40,000,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0014006D0005

IDV Type: IDC

Timeline