Commerce Dept Awards $66.3M Order to Young & Rubicam for Advertising Services
Contract Overview
Contract Amount: $66,322,678 ($66.3M)
Contractor: Young & Rubicam LLC
Awarding Agency: Department of Commerce
Start Date: 2018-11-21
End Date: 2020-12-31
Contract Duration: 771 days
Daily Burn Rate: $86.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: AWARD OF ORDER 012 UNDER 2020 ICC IGF::OT::IGF
Place of Performance
Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $66.3 million to YOUNG & RUBICAM LLC for work described as: AWARD OF ORDER 012 UNDER 2020 ICC IGF::OT::IGF Key points: 1. Significant contract value of $66.3 million for advertising services. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract spans over two years, suggesting a substantial project duration. 4. The North American Industry Classification System (NAICS) code 541810 confirms the focus on advertising agencies.
Value Assessment
Rating: fair
The contract value of $66.3 million is substantial for advertising services. Benchmarking against similar large-scale advertising contracts would be necessary to fully assess pricing fairness, but the firm fixed-price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offering.
Taxpayer Impact: The firm fixed-price contract aims to control costs, but the overall taxpayer impact depends on the effectiveness and efficiency of the advertising services provided.
Public Impact
Public awareness campaigns and government messaging may be impacted by these advertising services. The contract supports the U.S. Census Bureau's outreach and communication efforts. Economic activity within the advertising sector is stimulated by this award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in a long-term advertising contract.
- Measuring the return on investment for advertising services can be challenging.
Positive Signals
- Full and open competition suggests a fair market approach.
- Firm fixed-price contract provides cost predictability.
Sector Analysis
The advertising industry is dynamic, with significant spending on campaigns across various sectors. This contract falls within the general advertising services sector, with a substantial value indicating a large-scale initiative by the Census Bureau.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or partners in this award. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The award process under full and open competition suggests a degree of oversight. However, ongoing monitoring of performance and expenditures is crucial to ensure accountability and value for taxpayer money.
Related Government Programs
- Advertising Agencies
- Department of Commerce Contracting
- U.S. Census Bureau Programs
Risk Flags
- Contract duration of over two years.
- Large contract value requires diligent oversight.
- Potential for scope creep in advertising services.
- Measuring ROI for advertising can be complex.
Tags
advertising-agencies, department-of-commerce, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $66.3 million to YOUNG & RUBICAM LLC. AWARD OF ORDER 012 UNDER 2020 ICC IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is YOUNG & RUBICAM LLC.
Which agency awarded this contract?
Awarding agency: Department of Commerce (U.S. Census Bureau).
What is the total obligated amount?
The obligated amount is $66.3 million.
What is the period of performance?
Start: 2018-11-21. End: 2020-12-31.
What specific advertising objectives does this contract aim to achieve for the U.S. Census Bureau, and how will success be measured?
The contract likely supports the Census Bureau's mission to provide essential data to the nation. Specific objectives could include increasing public awareness of data collection, promoting participation in surveys, or disseminating statistical findings. Success metrics might involve campaign reach, engagement rates, website traffic, or survey response rates, depending on the campaign's goals.
Given the firm fixed-price structure, what mechanisms are in place to prevent cost overruns if unforeseen challenges arise during the contract period?
While a firm fixed-price contract aims to cap costs, mechanisms to manage unforeseen challenges typically involve strict change order procedures. Any deviation from the original scope would require formal modification, potentially with renegotiated pricing if justified and approved. Robust project management and clear communication channels are essential to identify and address issues proactively before they escalate.
How does the U.S. Census Bureau ensure the effectiveness and efficiency of the advertising services provided by Young & Rubicam LLC to justify the $66.3 million investment?
The Census Bureau likely employs performance metrics and regular reviews to assess the effectiveness of the advertising campaigns. This could include tracking key performance indicators (KPIs) related to campaign reach, engagement, and impact on Census participation or data dissemination. Regular reporting from the contractor and periodic evaluations by the agency are standard practices to ensure accountability and optimize campaign performance.
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
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: WPP PLC
Address: 3 COLUMBUS CIR, NEW YORK, NY, 10019
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $73,085,600
Exercised Options: $73,085,600
Current Obligation: $66,322,678
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DOCYA132316CQ0003
IDV Type: IDC
Timeline
Start Date: 2018-11-21
Current End Date: 2020-12-31
Potential End Date: 2020-12-31 00:00:00
Last Modified: 2022-09-26
More Contracts from Young & Rubicam LLC
- Award of or 015 Under 2020 ICC Igf::ot::igf — $404.5M (Department of Commerce)
- Award of 2020 ICC or 17 ESO Media Igf::ot::igf — $56.4M (Department of Commerce)
- Space Charges Media Placement FY23 Q3 & Q4 — $36.0M (Department of Defense)
- OPT II Space Charges Media Placement Digital Media Placement FY24 Q3 Q4 — $35.0M (Department of Defense)
- Award of Order 13 Igf::ot::igf — $31.7M (Department of Commerce)
Other Department of Commerce Contracts
- THE Purpose of This Contract IS to Develop the Ground System That Will Support Noaa S Next Generation Geostationary Satellite Series, Goes-R. This NEW Series of Spacecraft, SET to Begin Launching in 2015, IS Expected to Double the Clarity of Today S Satellite Imagery and Provide AT Least 20 Times More Atmospheric Observations From Space. the Contractor IS to Design, Develop, Test and Implement the Goes-R Ground System. the Ground System Will Capture Data From the Goes-R Satellites, and Process and Distribute the Information to Operational Users — $1.8B (L3harris Technologies, Inc.)
- Engineering Services and Development Leading to the Delivery of the Jpss Common Ground System Instrument and Support — $1.6B (Raytheon Company)
- Enterprise Solutions Framework (ESF) for Multi-Tiered Acquisition Framework for Systems Engineering and Integration - Program Tier Work Order 003 - 2020 Census Technical Integrator — $1.5B (T-Rex Solutions LLC)
- THE Goal of the Decennial Response Integration System (dris) Contract IS to Obtain a Practical Solution to Providing Respondent Assistance and Data Capture for the 2010 Census — $930.7M (Lockheed Martin Services, LLC)
- 2020 Census Questionnaire Assistance (2020 CQA) — $918.3M (Maximus Federal Services, Inc.)