Marketing consulting services contract awarded to Schatz Publishing Group, LLC for $5.2M to inform the public

Contract Overview

Contract Amount: $5,211,462 ($5.2M)

Contractor: Schatz Publishing Group, LLC

Awarding Agency: Department of Labor

Start Date: 2024-09-30

End Date: 2027-02-10

Contract Duration: 863 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE WORK PERFORMED UNDER THIS VEHICLE SHALL INCLUDE EVALUATING CURRENT TOOLS, RESOURCES, AND METHODS FOR CONDUCTING OUTREACH AND EDUCATION; AND DEVELOPING, ASSEMBLING, AND DISTRIBUTING DIGITAL AND PHYSICAL MATERIALS THAT WILL INFORM THE PUBLIC ABOUT

Place of Performance

Location: BLACKWELL, KAY County, OKLAHOMA, 74631

State: Oklahoma Government Spending

Plain-Language Summary

Department of Labor obligated $5.2 million to SCHATZ PUBLISHING GROUP, LLC for work described as: THE WORK PERFORMED UNDER THIS VEHICLE SHALL INCLUDE EVALUATING CURRENT TOOLS, RESOURCES, AND METHODS FOR CONDUCTING OUTREACH AND EDUCATION; AND DEVELOPING, ASSEMBLING, AND DISTRIBUTING DIGITAL AND PHYSICAL MATERIALS THAT WILL INFORM THE PUBLIC ABOUT Key points: 1. The contract focuses on evaluating and developing public outreach and education materials. 2. Services include creating both digital and physical informational assets. 3. The contract duration spans over two years, indicating a sustained effort. 4. The firm fixed-price structure provides cost certainty for the government. 5. This award falls under marketing consulting services, a common government need. 6. The contract was awarded through full and open competition, suggesting a broad search for qualified vendors.

Value Assessment

Rating: good

The contract value of $5.2 million for a period of approximately 2.5 years for marketing consulting services appears reasonable. Benchmarking against similar contracts for public outreach and education campaigns suggests that this price point is within a typical range for comprehensive service delivery. The firm fixed-price contract type helps manage cost overruns, providing a degree of value assurance. Further analysis would require comparing the specific deliverables and scope against market rates for specialized marketing and communication services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors were likely solicited and allowed to bid. The presence of four bids suggests a healthy level of interest and a competitive process. This approach generally leads to better price discovery and ensures that the government selects the most capable and cost-effective solution available in the market.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and ensures that government funds are used efficiently by selecting the best value offer.

Public Impact

The public will benefit from enhanced information and education on topics covered by the Department of Labor's outreach initiatives. Services delivered include the development and distribution of digital and physical materials. The geographic impact is likely nationwide, aiming to reach a broad audience. Workforce implications may include opportunities for Schatz Publishing Group employees and potentially subcontractors in marketing, design, and communication fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'outreach and education' is not tightly managed.
Effectiveness of digital and physical materials in achieving desired public awareness requires ongoing measurement.
Reliance on a single contractor for a significant period could pose risks if performance issues arise.

Positive Signals

Awarded through full and open competition, indicating a competitive selection process.
Firm fixed-price contract provides cost certainty and limits financial risk.
Clear definition of work scope related to evaluating tools and developing materials.

Sector Analysis

The marketing consulting services sector is a vital component of government operations, supporting agencies in communicating with the public, stakeholders, and internal audiences. This contract, valued at $5.2 million, fits within the broader market for professional services, which includes advertising, public relations, and digital media development. Comparable spending benchmarks for similar outreach and education campaigns vary widely based on scope and duration, but this contract appears to be a significant investment in public information dissemination.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'ss: false' and 'sb: false'. The award to Schatz Publishing Group, LLC, a single entity, does not inherently preclude subcontracting opportunities for small businesses. However, without specific subcontracting plans detailed in the award, the direct impact on the small business ecosystem is uncertain. Future analysis could explore whether the prime contractor has a history of engaging small business subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Office of the Assistant Secretary for Administration and Management (OASAM) within the Department of Labor. Accountability measures are embedded in the firm fixed-price contract structure, requiring the contractor to deliver specified materials and services within budget. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics and internal oversight processes are not publicly disclosed.

Related Government Programs

Public Information Campaigns
Government Communications Services
Digital Media Development
Educational Material Production
Marketing and Advertising Services

Risk Flags

Potential for performance issues if contractor lacks specific expertise.
Risk of materials not resonating with target audiences.
Challenges in measuring the ROI of public outreach campaigns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $5.2 million to SCHATZ PUBLISHING GROUP, LLC. THE WORK PERFORMED UNDER THIS VEHICLE SHALL INCLUDE EVALUATING CURRENT TOOLS, RESOURCES, AND METHODS FOR CONDUCTING OUTREACH AND EDUCATION; AND DEVELOPING, ASSEMBLING, AND DISTRIBUTING DIGITAL AND PHYSICAL MATERIALS THAT WILL INFORM THE PUBLIC ABOUT

Who is the contractor on this award?

The obligated recipient is SCHATZ PUBLISHING GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $5.2 million.

What is the period of performance?

Start: 2024-09-30. End: 2027-02-10.

What is the track record of Schatz Publishing Group, LLC in performing similar federal contracts?

Information regarding Schatz Publishing Group, LLC's specific track record with federal contracts is not detailed in the provided data. To assess their performance history, a review of past federal awards, contract performance reports (e.g., CPARS), and any past performance issues would be necessary. Understanding their experience with similar scopes of work, such as public outreach, educational material development, and digital content creation for government agencies, is crucial for evaluating their capability to successfully execute this contract. Without this historical data, it is difficult to definitively gauge their reliability and past success in meeting government requirements.

How does the value of this contract compare to similar marketing consulting services for public outreach?

The contract value of $5.2 million for marketing consulting services, including the development of digital and physical materials for public outreach and education, appears to be within a reasonable range for a contract spanning approximately 2.5 years. However, a precise comparison requires detailed benchmarking against contracts with identical or highly similar scopes of work, deliverables, and target audiences. Factors such as the complexity of the subject matter, the required level of research, the extent of distribution channels, and the specific expertise needed can significantly influence pricing. While the firm fixed-price nature provides cost certainty, the ultimate value for money will depend on the effectiveness and reach of the materials produced.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks for this contract include potential scope creep, where the definition of 'outreach and education' might expand beyond the initial intent, leading to cost overruns or delays. Another risk is the effectiveness of the developed materials in achieving the desired public awareness and engagement, which can be difficult to measure. Performance issues from the contractor, Schatz Publishing Group, LLC, could also pose a risk. Mitigation strategies include the firm fixed-price contract type, which caps costs, and the requirement for clear deliverables. Effective project management, regular performance reviews, and well-defined success metrics by the Department of Labor are crucial for mitigating these risks and ensuring the contract's objectives are met.

How effective is the 'full and open competition' approach likely to be in ensuring optimal value for this specific contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring optimal value in federal contracting. For this marketing consulting services contract, it means that a wide range of qualified vendors were invited to bid, fostering a competitive environment. This competition is expected to drive down prices, encourage innovation, and ensure that the Department of Labor selects a contractor offering the best combination of technical capability and cost-effectiveness. The fact that four bids were received suggests sufficient market interest. The effectiveness is further enhanced by the firm fixed-price structure, which aligns contractor incentives with delivering value within the agreed-upon budget.

What are the historical spending patterns for marketing consulting services within the Department of Labor or similar agencies?

Historical spending patterns for marketing consulting services within the Department of Labor and similar agencies can vary significantly based on agency size, mission, and specific outreach needs. Agencies often procure these services for public awareness campaigns, educational initiatives, and stakeholder engagement. Spending can range from small, task-order-based contracts for specific projects to larger, multi-year vehicles for comprehensive communication strategies. Analyzing past budgets allocated to marketing, public relations, and communication services within the Department of Labor would provide context for the $5.2 million award. Benchmarking against agencies with similar public-facing missions, such as HHS or EPA, could also reveal trends in investment for such services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Marketing Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1605C1-24-Q-00107

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11950 W HIGHLAND AVE, BLACKWELL, OK, 74631

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $35,927,790

Exercised Options: $14,173,627

Current Obligation: $5,211,462

Actual Outlays: $1,090,071

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA24D0054

IDV Type: FSS

Timeline