DOT's FHWA Awards $7.6M BPA to Schatz Strategy Group for Advertising Services via Full and Open Competition

Contract Overview

Contract Amount: $7,659,492 ($7.7M)

Contractor: Schatz Publishing Group, LLC

Awarding Agency: Department of Transportation

Start Date: 2020-09-30

End Date: 2026-09-30

Contract Duration: 2,191 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FIRM FIXED PRICE WITH TIME&MATERIALS OTHER DIRECT COSTS BLANKET PURCHASE AGREEMENT ORDER # 693JJ320F000509 IS ESTABLISHED BETWEEN THE FEDERAL HIGHWAY ADMINISTRATION (FHWA) AND SCHATZ STRATEGY GROUP (SCHATZ). THIS BLANKET PURCHASE AGREEMENT

Place of Performance

Location: BLACKWELL, KAY County, OKLAHOMA, 74631

State: Oklahoma Government Spending

Plain-Language Summary

Department of Transportation obligated $7.7 million to SCHATZ PUBLISHING GROUP, LLC for work described as: FIRM FIXED PRICE WITH TIME&MATERIALS OTHER DIRECT COSTS BLANKET PURCHASE AGREEMENT ORDER # 693JJ320F000509 IS ESTABLISHED BETWEEN THE FEDERAL HIGHWAY ADMINISTRATION (FHWA) AND SCHATZ STRATEGY GROUP (SCHATZ). THIS BLANKET PURCHASE AGREEMENT Key points: 1. The contract is a Firm Fixed Price with Time & Materials and Other Direct Costs Blanket Purchase Agreement. 2. Awarded to Schatz Strategy Group, LLC, this BPA has a total value of $7,659,491.67. 3. Competition was full and open, indicating a competitive bidding process. 4. The contract duration is 2191 days, ending September 30, 2026.

Value Assessment

Rating: good

The contract uses a Firm Fixed Price structure for the base agreement, which is generally favorable for cost control. However, the inclusion of Time & Materials and Other Direct Costs components introduces variability and requires careful monitoring to ensure pricing remains competitive against market rates for similar advertising and public relations services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method typically leads to better price discovery and ensures the government receives competitive pricing. The use of a Blanket Purchase Agreement (BPA) with call orders allows for flexibility while maintaining a competitive framework.

Taxpayer Impact: The full and open competition process is expected to yield fair market value, minimizing unnecessary taxpayer expenditure for advertising and related services.

Public Impact

Public awareness campaigns and advertising efforts managed under this BPA will directly impact public perception and engagement with FHWA initiatives. The services procured could range from public service announcements to strategic communication plans, influencing public behavior and understanding of transportation issues. Transparency in how these funds are utilized for advertising is crucial for public trust and accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time & Materials component.
Need for robust oversight to ensure quality and effectiveness of advertising services.
Reliance on a single BPA holder for potentially diverse advertising needs.

Positive Signals

Full and open competition ensures competitive pricing.
BPA structure allows for efficient procurement of recurring services.
Long-term contract provides stability for planning and execution.

Sector Analysis

The advertising and public relations sector is characterized by diverse service offerings and varying pricing models. Benchmarking against similar government contracts for advertising agencies and communication firms is essential to validate the overall cost-effectiveness of this BPA, especially considering its significant value and duration.

Small Business Impact

While this BPA was awarded through full and open competition, there is no explicit indication of small business participation or set-asides within the provided data. Further analysis would be needed to determine if small businesses were involved as prime contractors or subcontractors.

Oversight & Accountability

The Federal Highway Administration (FHWA) is responsible for overseeing this Blanket Purchase Agreement. Robust oversight mechanisms, including performance monitoring and regular reviews of expenditures, are critical to ensure the effective and efficient use of taxpayer funds and the achievement of program objectives.

Related Government Programs

Advertising Agencies
Department of Transportation Contracting
Federal Highway Administration Programs

Risk Flags

Potential for cost creep due to Time & Materials component.
Need for detailed tracking and justification of 'Other Direct Costs'.
Risk of service quality degradation if performance is not closely monitored.
Long contract duration may not reflect current market needs or pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $7.7 million to SCHATZ PUBLISHING GROUP, LLC. FIRM FIXED PRICE WITH TIME&MATERIALS OTHER DIRECT COSTS BLANKET PURCHASE AGREEMENT ORDER # 693JJ320F000509 IS ESTABLISHED BETWEEN THE FEDERAL HIGHWAY ADMINISTRATION (FHWA) AND SCHATZ STRATEGY GROUP (SCHATZ). THIS BLANKET PURCHASE AGREEMENT

Who is the contractor on this award?

The obligated recipient is SCHATZ PUBLISHING GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $7.7 million.

What is the period of performance?

Start: 2020-09-30. End: 2026-09-30.

How does the pricing structure, particularly the Time & Materials component, compare to industry benchmarks for similar advertising and public relations services?

The Firm Fixed Price with Time & Materials and Other Direct Costs structure presents a mixed pricing assessment. While the FFP component provides a baseline cost certainty, the T&M element introduces variability. A thorough benchmark analysis against industry standards for advertising agencies and communication firms is necessary to determine if the T&M rates and associated costs are competitive and reflect fair market value for the services rendered.

What are the specific performance metrics and oversight procedures in place to mitigate risks associated with the Time & Materials component and ensure effective service delivery?

Effective risk mitigation for the T&M component relies on clearly defined performance standards, detailed task orders, and rigorous oversight. The FHWA must implement robust monitoring of labor hours, direct costs, and deliverables against established metrics. Regular performance reviews, audits, and clear communication channels with Schatz Strategy Group are essential to ensure accountability and prevent cost creep or service deficiencies.

To what extent does the full and open competition process guarantee optimal value for taxpayer money, considering the long duration and significant value of this BPA?

Full and open competition is a strong indicator of potential value, as it allows multiple vendors to compete, driving down prices. However, for a long-duration BPA, ongoing market surveillance and periodic re-evaluation of pricing are crucial. While the initial competition likely secured favorable terms, ensuring sustained value requires proactive contract management to adapt to market changes and prevent potential price escalation over the contract's lifespan.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Advertising, Public Relations, and Related Services › Advertising Agencies

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: 8(a) Program Participant, Category Business, HUBZone Firm, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $7,700,429

Exercised Options: $7,659,492

Current Obligation: $7,659,492

Actual Outlays: $6,560,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 693JJ320A000027

IDV Type: BPA

Timeline