DOT awards $40.1M for communications support to StrataComm, LLC, extending existing services
Contract Overview
Contract Amount: $40,131,052 ($40.1M)
Contractor: Stratacomm, LLC
Awarding Agency: Department of Transportation
Start Date: 2020-05-29
End Date: 2024-10-17
Contract Duration: 1,602 days
Daily Burn Rate: $25.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: TITLE: NATIONAL COMMUNICATIONS, MARKETING, AND MEDIA SUPPORT - BASE 2 LEVEL-OF-EFFORT ACTION: ISSUE A TASK ORDER UNDER 693JJ919D000003 TO CONTINUE BASE LEVEL-OF-EFFORT SUPPORT FOR NHTSAS BEHAVIORAL COMMUNICATIONS PROGRAM DESCRIPTION: THIS PRO
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005
Plain-Language Summary
Department of Transportation obligated $40.1 million to STRATACOMM, LLC for work described as: TITLE: NATIONAL COMMUNICATIONS, MARKETING, AND MEDIA SUPPORT - BASE 2 LEVEL-OF-EFFORT ACTION: ISSUE A TASK ORDER UNDER 693JJ919D000003 TO CONTINUE BASE LEVEL-OF-EFFORT SUPPORT FOR NHTSAS BEHAVIORAL COMMUNICATIONS PROGRAM DESCRIPTION: THIS PRO Key points: 1. The contract represents a significant investment in behavioral communications, aiming to influence public safety. 2. StrataComm, LLC, has been awarded a substantial task order, indicating a reliance on their established capabilities. 3. The contract's duration of over four years suggests a long-term need for these specialized services. 4. The 'Level-of-Effort' structure implies a focus on continuous support rather than specific deliverables. 5. The 'Advertising Agencies' industry code points to a focus on marketing and public outreach campaigns. 6. The contract is a delivery order under a larger IDIQ, suggesting it's part of a broader procurement strategy.
Value Assessment
Rating: fair
The total award of $40.1 million over approximately four years for communications and marketing support appears to be within a reasonable range for federal contracts of this nature. However, without specific benchmarks for 'behavioral communications programs' or detailed cost breakdowns, a precise value-for-money assessment is challenging. The cost-plus-fixed-fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can lead to cost overruns if not managed carefully. Comparing this to similar contracts for large-scale public awareness campaigns would provide a clearer picture of its cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which is an unusual designation. Typically, 'full and open' implies broad competition, while 'exclusion of sources' suggests specific entities were considered or preferred. This specific wording might indicate a competitive process that was limited in scope or followed a specific pre-qualification process. Further clarification on the 'exclusion of sources' is needed to fully understand the competitive landscape and its impact on price discovery.
Taxpayer Impact: The limited competition, as suggested by the contract's award method, may have resulted in less downward pressure on pricing than a truly open competition. Taxpayers may have paid a premium due to the restricted bidding pool.
Public Impact
The primary beneficiary is the National Highway Traffic Safety Administration (NHTSA), which will receive ongoing support for its behavioral communications programs. The services delivered will likely include strategy development, content creation, media planning, and campaign execution aimed at promoting safe driving behaviors. The geographic impact is national, as NHTSA's initiatives are intended to reach all segments of the US population. Workforce implications include the potential for employment within StrataComm, LLC, and its subcontractors, in fields such as marketing, communications, and public relations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'limited' competition designation raises concerns about whether the government secured the best possible pricing and innovative solutions.
- The Cost Plus Fixed Fee (CPFF) contract type can incentivize contractors to incur more costs, potentially leading to higher overall expenditures if not rigorously overseen.
- The lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness and efficiency of the services rendered.
- The 'exclusion of sources' clause requires further investigation to ensure fairness and prevent potential favoritism in the procurement process.
Positive Signals
- The contract's long duration (over 4 years) suggests a stable and reliable partnership, potentially leading to efficiencies through established processes.
- The award to a single contractor for a significant sum indicates a recognized expertise in communications and marketing support for NHTSA's specific needs.
- The task order is issued under a base IDIQ contract, implying that the initial award underwent a competitive process, establishing a baseline for future task orders.
- The focus on 'behavioral communications' suggests a strategic effort to address critical public safety issues through targeted outreach.
Sector Analysis
The federal advertising and public relations market is substantial, with agencies frequently contracting for services to inform the public, promote initiatives, and manage communications. This contract falls within the broader professional services sector, specifically focusing on advertising agencies (NAICS code 541810). Comparable spending benchmarks would involve analyzing other large-scale federal public awareness campaigns, such as those related to health, safety, or national defense. The market is characterized by a mix of large, established firms and smaller, specialized agencies.
Small Business Impact
The provided data indicates that small business participation (ss: false, sb: false) was not a primary focus for this specific task order. There is no indication of a small business set-aside. This suggests that the prime contractor, StrataComm, LLC, is likely not a small business, and subcontracting opportunities for small businesses are not explicitly detailed in this summary. Further analysis of the prime contract and subcontracting plans 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 (NHTSA). As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures and ensure costs are reasonable and allocable. Transparency would be enhanced through regular reporting requirements from the contractor and potential reviews by the DOT Inspector General. The effectiveness of the behavioral communications program itself would likely be assessed through performance metrics and campaign evaluation reports.
Related Government Programs
- Federal Public Awareness Campaigns
- Government Marketing and Advertising Services
- NHTSA Behavioral Safety Programs
- Department of Transportation Communications Contracts
- IDIQ Contract Task Orders
Risk Flags
- Limited Competition Concerns
- Potential for Cost Overruns (CPFF)
- Lack of Specific Performance Metrics
- Ambiguity in Award Method ('Exclusion of Sources')
Tags
transportation, nhtsa, communications, marketing, professional-services, cost-plus-fixed-fee, limited-competition, delivery-order, strata-comm-llc, district-of-columbia, behavioral-communications
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $40.1 million to STRATACOMM, LLC. TITLE: NATIONAL COMMUNICATIONS, MARKETING, AND MEDIA SUPPORT - BASE 2 LEVEL-OF-EFFORT ACTION: ISSUE A TASK ORDER UNDER 693JJ919D000003 TO CONTINUE BASE LEVEL-OF-EFFORT SUPPORT FOR NHTSAS BEHAVIORAL COMMUNICATIONS PROGRAM DESCRIPTION: THIS PRO
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 $40.1 million.
What is the period of performance?
Start: 2020-05-29. End: 2024-10-17.
What is the track record of StrataComm, LLC in performing similar federal contracts, particularly with NHTSA or other transportation-related agencies?
Assessing StrataComm, LLC's track record requires a review of their past performance on federal contracts. This would involve examining contract databases like the Federal Procurement Data System (FPDS) or the Contract Data Requirements List (CDRL) for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. Specifically, looking for prior work with NHTSA on behavioral communications or similar public outreach initiatives would be highly relevant. A strong performance history, characterized by meeting deadlines, staying within budget, and delivering quality services, would indicate a lower risk for this current contract. Conversely, a history of performance issues would raise concerns about StrataComm's ability to successfully execute this $40.1 million award.
How does the pricing structure (Cost Plus Fixed Fee) compare to industry standards for similar communications and marketing support services?
The Cost Plus Fixed Fee (CPFF) pricing structure is common in federal contracting, especially for services where the scope may evolve or is difficult to define precisely upfront, such as research or complex program support. For communications and marketing, CPFF allows the government to reimburse the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. While this offers flexibility, it carries a risk of cost escalation if not managed tightly. Industry benchmarks for CPFF in this sector would typically involve comparing the fixed fee percentage to the total estimated cost. A fee significantly above the typical 10-15% range might warrant scrutiny. Furthermore, comparing the overall estimated cost against similar large-scale public awareness campaigns managed by other federal agencies or even large non-profits could reveal if StrataComm's proposed costs are competitive.
What are the specific performance metrics and Key Performance Indicators (KPIs) used to evaluate the success of NHTSA's behavioral communications programs under this contract?
The provided data does not detail the specific performance metrics or Key Performance Indicators (KPIs) for this contract. However, for NHTSA's behavioral communications programs, typical KPIs would likely focus on campaign reach, message recall, public engagement (e.g., website visits, social media interaction), and ultimately, measurable changes in public behavior related to traffic safety (e.g., reduction in speeding, seatbelt usage rates, impaired driving incidents). The success of the contract is intrinsically linked to the effectiveness of these campaigns. A thorough evaluation would require access to the contract's Statement of Work (SOW) and any associated performance work statements (PWS) which outline these metrics. Without them, assessing the program's effectiveness and the contractor's value is speculative.
What is the historical spending pattern for NHTSA's behavioral communications programs, and how does this $40.1 million award fit within that trend?
To understand the historical spending pattern, one would need to analyze NHTSA's budget allocations and contract awards for communications and marketing support over several preceding fiscal years. This involves querying federal procurement databases for similar contracts awarded to NHTSA or for its behavioral programs. The $40.1 million award represents a significant, multi-year investment. If historical spending has been consistently in the tens of millions annually for such programs, this award aligns with established trends. However, if this represents a substantial increase, it might indicate a new strategic focus, an expansion of existing efforts, or potentially a less competitive procurement environment for this specific task order. Understanding this context is crucial for assessing the appropriateness of the current award amount.
What is the significance of the 'Full and Open Competition After Exclusion of Sources' award method, and what does it imply about the competitive landscape?
The award method 'Full and Open Competition After Exclusion of Sources' is somewhat contradictory and requires careful interpretation. 'Full and Open Competition' typically means all responsible sources are permitted to submit offers. However, the phrase 'After Exclusion of Sources' suggests that certain potential sources were deliberately excluded from consideration prior to the competition. This could occur for various reasons, such as specific technical requirements, prior performance issues with certain vendors, or a pre-qualification process. The implication for the competitive landscape is that it was likely narrower than a standard 'full and open' competition. This limited pool of bidders might reduce the downward pressure on pricing and potentially limit the range of innovative solutions considered, impacting the overall value achieved for taxpayer dollars.
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
Solicitation ID: 693JJ920R000014
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: $44,325,902
Exercised Options: $44,325,902
Current Obligation: $40,131,052
Actual Outlays: $40,131,052
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
Start Date: 2020-05-29
Current End Date: 2024-10-17
Potential End Date: 2024-10-17 00:00:00
Last Modified: 2024-10-18
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