Commerce Dept Awards $56.4M for Advertising Services to Young & Rubicam LLC

Contract Overview

Contract Amount: $56,393,182 ($56.4M)

Contractor: Young & Rubicam LLC

Awarding Agency: Department of Commerce

Start Date: 2018-12-21

End Date: 2021-12-31

Contract Duration: 1,106 days

Daily Burn Rate: $51.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AWARD OF 2020 ICC OR 17 ESO MEDIA IGF::OT::IGF

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $56.4 million to YOUNG & RUBICAM LLC for work described as: AWARD OF 2020 ICC OR 17 ESO MEDIA IGF::OT::IGF Key points: 1. Contract awarded to Young & Rubicam LLC for advertising services. 2. The contract value is $56.4 million over its duration. 3. Competition type was 'Full and Open', suggesting broad market access. 4. The sector is Advertising Agencies, a common area for government procurement.

Value Assessment

Rating: fair

The contract value of $56.4 million is substantial for advertising services. Benchmarking against similar contracts is difficult without more specific service details, but the price appears within a reasonable range for a multi-year, comprehensive advertising campaign.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that 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: Taxpayer funds are being used for advertising services, which is a standard government function. The competitive award process aims to ensure efficient use of these funds.

Public Impact

Public awareness campaigns may be supported by these advertising services. Government messaging and public service announcements could be disseminated. The contract supports the U.S. Census Bureau's outreach efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific service details makes detailed value assessment challenging.
Potential for scope creep in a large, multi-year contract.
Performance metrics are not detailed in the provided data.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type can control costs.
Long duration suggests a strategic, ongoing need.

Sector Analysis

The advertising agency sector is characterized by creative services, media buying, and campaign management. Government spending in this area supports public outreach, information dissemination, and brand building for federal agencies. Benchmarks vary widely based on campaign scope and duration.

Small Business Impact

The data indicates this contract was not awarded to a small business. There is no information provided on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The contract was awarded by the Department of Commerce to the U.S. Census Bureau. Standard procurement oversight processes would apply, including review of the bidding process and contract performance.

Related Government Programs

Advertising Agencies
Department of Commerce Contracting
U.S. Census Bureau Programs

Risk Flags

Lack of detailed service scope.
No indication of small business subcontracting.
Limited insight into specific performance metrics.
Potential for cost overruns if scope is not tightly managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $56.4 million to YOUNG & RUBICAM LLC. AWARD OF 2020 ICC OR 17 ESO MEDIA 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 $56.4 million.

What is the period of performance?

Start: 2018-12-21. End: 2021-12-31.

What specific advertising services are included in this $56.4 million award, and how do they align with the Census Bureau's mission objectives?

The provided data lacks specifics on the exact services rendered under this contract. However, given it's for the Census Bureau, services likely include public awareness campaigns, media planning and buying, creative development, and digital advertising to encourage participation in census activities and disseminate related information. The alignment would be assessed by reviewing the campaign's effectiveness in reaching target demographics and achieving participation goals.

What were the key evaluation criteria used in the full and open competition, and how did they balance price against technical merit?

The provided data does not detail the evaluation criteria for this specific award. Typically, in full and open competitions for services, agencies evaluate factors such as technical approach, past performance, management capability, and price. The balance between price and non-price factors is crucial for ensuring the government receives the best value, not just the lowest cost.

How will the effectiveness of the advertising campaigns funded by this contract be measured and reported to ensure accountability for taxpayer funds?

Contract effectiveness is usually measured through key performance indicators (KPIs) defined in the contract, such as reach, engagement, conversion rates (e.g., census participation), and return on investment. The Census Bureau would likely track these metrics and report on campaign performance to ensure accountability and justify the expenditure of taxpayer funds.

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: $58,801,726

Exercised Options: $57,585,093

Current Obligation: $56,393,182

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