DoD's $38M Space & Media Placement Contract Awarded to Campbell-Ewald Company
Contract Overview
Contract Amount: $38,000,000 ($38.0M)
Contractor: Campbell-Ewald Company
Awarding Agency: Department of Defense
Start Date: 2008-09-30
End Date: 2009-11-19
Contract Duration: 415 days
Daily Burn Rate: $91.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: OPTION PERIOD 3 - SPACE CHARGES & MEDIA PLACEMENT
Place of Performance
Location: MILLINGTON, SHELBY County, TENNESSEE, 38054
Plain-Language Summary
Department of Defense obligated $38.0 million to CAMPBELL-EWALD COMPANY for work described as: OPTION PERIOD 3 - SPACE CHARGES & MEDIA PLACEMENT Key points: 1. Significant contract value of $38 million for advertising services. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. Potential risk related to the effectiveness and ROI of media placement. 4. The advertising sector is highly dynamic, requiring continuous evaluation of strategies.
Value Assessment
Rating: fair
The contract value of $38 million for advertising services is substantial. Benchmarking against similar large-scale media placement contracts is difficult without specific deliverables, but the price appears within a reasonable range for comprehensive campaigns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors vie for the contract.
Taxpayer Impact: Taxpayer funds are being used for advertising services, the value of which depends on the effectiveness of the campaigns in achieving the Department of Defense's objectives.
Public Impact
Public funds allocated for advertising campaigns by a major government agency. Potential impact on public perception and awareness of DoD initiatives. Contractor selection based on competitive bidding aims for efficient use of taxpayer money.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Effectiveness of media placement and campaign ROI.
- Potential for cost overruns if scope changes.
- Vendor lock-in if performance is satisfactory but alternatives are not explored.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides cost certainty.
- Contract duration allows for sustained campaign efforts.
Sector Analysis
The advertising agencies sector involves creative services and media buying. Government contracts in this sector often focus on public outreach, recruitment, or specific campaign messaging. Benchmarks are difficult due to the bespoke nature of campaigns.
Small Business Impact
The contract was awarded to Campbell-Ewald Company, a large business. There is no indication of small business participation in this specific award, which could be an area for future consideration.
Oversight & Accountability
Oversight would focus on the performance metrics of the advertising campaigns, ensuring they meet the objectives set by the Department of the Navy and that funds are used efficiently.
Related Government Programs
- Advertising Agencies
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Effectiveness of media placement strategy.
- Potential for scope creep and cost escalation.
- Measuring ROI on advertising spend.
- Ensuring target audience reach and engagement.
Tags
advertising-agencies, department-of-defense, tn, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.0 million to CAMPBELL-EWALD COMPANY. OPTION PERIOD 3 - 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 $38.0 million.
What is the period of performance?
Start: 2008-09-30. End: 2009-11-19.
What specific metrics will be used to evaluate the success of the media placement and advertising campaigns funded by this contract?
Success metrics would likely include reach, frequency, engagement rates, cost per acquisition (if applicable), brand sentiment shifts, and alignment with specific campaign goals such as recruitment or public awareness. The Department of the Navy should have clearly defined KPIs in the contract.
How does the $38 million expenditure compare to typical advertising budgets for similar government outreach initiatives?
Comparing this $38 million figure requires understanding the scope and duration of the campaigns. Large-scale national or international campaigns for major agencies can easily reach these figures. It's crucial to assess if the budget is commensurate with the intended reach and objectives.
What is the potential risk of the chosen media channels not effectively reaching the target audience for the Department of the Navy's messaging?
The risk lies in the dynamic nature of media consumption. If the agency relies on outdated channel strategies or fails to adapt to audience shifts, the message may not resonate. Thorough market research and agile media planning are essential to mitigate this risk.
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: $38,000,000
Exercised Options: $38,000,000
Current Obligation: $38,000,000
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0014006D0005
IDV Type: IDC
Timeline
Start Date: 2008-09-30
Current End Date: 2009-11-19
Potential End Date: 2009-11-19 00:00:00
Last Modified: 2009-03-24
More Contracts from Campbell-Ewald Company
- Option Period 1 - Space Charges & Media Placement — $40.0M (Department of Defense)
- Option Period 2 - Advertising Services — $33.8M (Department of Defense)
- Option Period 2 - Space Charges & Media Placement — $31.4M (Department of Defense)
- Option Period 3 - Space Charges & Media Placement — $30.0M (Department of Defense)
- Option Period 3 - Basic Advertising — $24.7M (Department of Defense)
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