Transportation awards $53.8M for national communications, marketing, and media support to StrataComm, LLC

Contract Overview

Contract Amount: $53,832,136 ($53.8M)

Contractor: Stratacomm, LLC

Awarding Agency: Department of Transportation

Start Date: 2019-03-07

End Date: 2024-09-25

Contract Duration: 2,029 days

Daily Burn Rate: $26.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TITLE: OBTAIN NATIONAL COMMUNICATIONS, MARKETING, AND MEDIA SUPPORT - BASE LEVEL-OF-EFFORT 01 DESCRIPTION: ISSUE A TASK ORDER UNDER SOLICITATION 693JJ918R000015 STATEMENT OF WORK: SEE SUPPORTING DOCUMENTS ESTIMATED BUDGET $2,000,000.00 PERIOD OF PERFORMANCE: FROM DATE OF AWARD THROUGH MAY 31, 2019

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $53.8 million to STRATACOMM, LLC for work described as: TITLE: OBTAIN NATIONAL COMMUNICATIONS, MARKETING, AND MEDIA SUPPORT - BASE LEVEL-OF-EFFORT 01 DESCRIPTION: ISSUE A TASK ORDER UNDER SOLICITATION 693JJ918R000015 STATEMENT OF WORK: SEE SUPPORTING DOCUMENTS ESTIMATED BUDGET $2,000,000.00 PERIOD OF PERFORMANCE: FROM DATE OF … Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract's estimated budget of $2M appears significantly lower than the final award amount, warranting further investigation into cost escalation. 3. Performance period spans over five years, indicating a long-term need for these services. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 5. The National Highway Traffic Safety Administration (NHTSA) is the primary agency, focusing on public safety campaigns. 6. The contractor, StrataComm, LLC, is receiving a substantial award, highlighting their role in federal communications.

Value Assessment

Rating: questionable

The final award of $53.8M is substantially higher than the initial estimated budget of $2M. This significant difference requires scrutiny to understand the drivers of cost escalation. Benchmarking against similar large-scale, multi-year communications contracts awarded by other federal agencies would be necessary to assess if the pricing is competitive. Without more detailed cost breakdowns and performance metrics, it is difficult to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' While this indicates an initial intent for broad competition, the 'after exclusion of sources' clause suggests that certain potential bidders may have been excluded prior to the main solicitation. Further details on the reasons for exclusion are needed to fully understand the competitive landscape. The number of bidders and the specific evaluation criteria used would provide more insight into the effectiveness of the competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve service quality. However, the exclusion of sources warrants a closer look to ensure no potentially cost-effective providers were unfairly barred.

Public Impact

The public benefits from national campaigns related to transportation safety, potentially reducing accidents and fatalities. Services delivered include communications, marketing, and media support, likely encompassing advertising, public relations, and digital outreach. The geographic impact is national, aiming to reach citizens across the United States. The contract supports federal agency outreach and public awareness initiatives, contributing to the government's communication objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Significant cost increase from estimated budget to award amount requires detailed justification.
Cost Plus Fixed Fee contract type carries inherent risks of cost overruns if not rigorously managed.
The 'exclusion of sources' clause in the competition type needs clarification to ensure fair market access.
Long performance period (over 5 years) increases exposure to potential scope creep or changing requirements.

Positive Signals

Awarded through full and open competition, indicating a structured procurement process.
Contract supports critical public safety messaging for the National Highway Traffic Safety Administration.
The contractor, StrataComm, LLC, has secured a significant federal contract, suggesting capability in this domain.

Sector Analysis

This contract falls within the Advertising Agencies (NAICS 541810) sector, which is a critical component of the broader professional, scientific, and technical services industry. Federal spending in this sector supports government outreach, public awareness campaigns, and marketing efforts. The total federal spending on advertising agencies can fluctuate based on agency priorities and public information needs. This specific contract's value of $53.8M is substantial for a single award within this category, suggesting a large-scale, long-term initiative.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. This suggests that the primary award was likely made to a large business or that subcontracting opportunities for small businesses are not explicitly mandated or highlighted in the provided summary. Further review of the contract's subcontracting plan would be necessary to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Transportation and the National Highway Traffic Safety Administration. Mechanisms likely include regular performance reviews, financial audits, and adherence to the terms of the Cost Plus Fixed Fee agreement. Transparency would be facilitated through contract award databases and potentially public reporting on campaign effectiveness. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Communications Commission (FCC) Regulations
General Services Administration (GSA) Schedules
Department of Health and Human Services Public Health Campaigns
Department of Defense Public Affairs Contracts

Risk Flags

Significant cost variance from estimate to award
Potential for cost overruns due to CPFF structure
Ambiguity in 'exclusion of sources' clause
Long performance period increases risk exposure

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $53.8 million to STRATACOMM, LLC. TITLE: OBTAIN NATIONAL COMMUNICATIONS, MARKETING, AND MEDIA SUPPORT - BASE LEVEL-OF-EFFORT 01 DESCRIPTION: ISSUE A TASK ORDER UNDER SOLICITATION 693JJ918R000015 STATEMENT OF WORK: SEE SUPPORTING DOCUMENTS ESTIMATED BUDGET $2,000,000.00 PERIOD OF PERFORMANCE: FROM DATE OF AWARD THROUGH MAY 31, 2019

Who is the contractor on this award?

The obligated recipient is STRATACOMM, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (National Highway Traffic Safety Administration).

What is the total obligated amount?

The obligated amount is $53.8 million.

What is the period of performance?

Start: 2019-03-07. End: 2024-09-25.

What were the specific reasons for the significant increase from the estimated budget of $2,000,000.00 to the final award amount of $53,832,136.09?

The substantial difference between the estimated budget and the final award amount suggests a significant evolution in the scope, duration, or nature of the services required. Potential reasons for this escalation could include an extended period of performance beyond the initial estimate, the addition of unforeseen tasks or deliverables, changes in market rates for media buys and creative services, or a more comprehensive approach to national communications and marketing than initially conceived. The Cost Plus Fixed Fee (CPFF) contract type allows for costs to be reimbursed up to a certain limit, plus a fixed fee, which can accommodate fluctuating direct costs. A detailed review of contract modifications, task orders issued under the base contract, and justification documents would be necessary to pinpoint the exact drivers of this cost increase and assess its reasonableness.

How did the 'exclusion of sources' in the 'Full and Open Competition after Exclusion of Sources' impact the final award and pricing?

The 'Full and Open Competition after Exclusion of Sources' indicates that while the solicitation was intended to be open, certain potential offerors were excluded prior to the main competition phase. The specific reasons for these exclusions are critical to understanding the competitive landscape. If legitimate justifications existed (e.g., lack of capability, past performance issues), then the competition among the remaining eligible sources could still yield a fair price. However, if sources were excluded without adequate justification, it could limit competition, potentially leading to higher prices or less innovative solutions for the government. Without knowing who was excluded and why, it's difficult to definitively assess the impact on taxpayer value.

What is the track record of StrataComm, LLC in delivering similar large-scale federal communications and marketing contracts?

Assessing StrataComm, LLC's track record is crucial for understanding their capability to manage a contract of this magnitude and duration. Information on their past performance on similar federal contracts, particularly those involving national scope, complex media buys, and public safety messaging, would provide insight into their reliability, efficiency, and ability to meet performance expectations. Reviewing past contract awards, performance evaluations (if publicly available), and any history of contract disputes or challenges would offer a more complete picture. A strong track record suggests a lower risk of performance issues and potentially better value for the government.

How does the Cost Plus Fixed Fee (CPFF) structure influence the risk and potential for cost overruns in this contract?

The Cost Plus Fixed Fee (CPFF) contract structure reimburses the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the exact costs cannot be easily predicted at the outset, such as in research and development or complex service contracts. While it allows for flexibility, it also shifts some of the cost risk to the government. If the contractor's costs exceed projections, the government still pays the allowable costs. The fixed fee provides the contractor with an incentive to control costs to some extent, as their profit is not directly tied to the total cost. However, rigorous oversight, detailed cost tracking, and clear definition of allowable costs are essential to mitigate the risk of significant cost overruns and ensure value for taxpayers.

What are the key performance indicators (KPIs) used to measure the success of the national communications, marketing, and media support provided under this contract?

Effective measurement of success for a contract of this nature relies on clearly defined Key Performance Indicators (KPIs). For national communications, marketing, and media support, relevant KPIs could include reach and frequency of media placements, audience engagement metrics (e.g., website traffic, social media interactions), message recall or comprehension in target demographics, and ultimately, the impact on public behavior or awareness related to transportation safety. The National Highway Traffic Safety Administration (NHTSA) would likely establish these KPIs in the Statement of Work (SOW) and monitor them throughout the contract's performance period. Regular reporting on these KPIs would be essential for assessing the contractor's performance and the overall effectiveness of the campaigns.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1200 G ST NW STE 350, WASHINGTON, DC, 20005

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $57,065,386

Exercised Options: $57,065,386

Current Obligation: $53,832,136

Actual Outlays: $36,150,971

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 693JJ919D000003

IDV Type: IDC

Timeline