DOT's $44.9M contract for NHTSA communications services awarded to STRATACOMM, LLC

Contract Overview

Contract Amount: $44,938,271 ($44.9M)

Contractor: Stratacomm, LLC

Awarding Agency: Department of Transportation

Start Date: 2021-05-11

End Date: 2022-09-30

Contract Duration: 507 days

Daily Burn Rate: $88.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: THIS TASK ORDER PROVIDES NHTSA WITH TIMELY, EFFICIENT, AND EXPERT PROJECT MANAGEMENT KNOWLEDGE AND SKILLS TO EXECUTE A RANGE OF COMMUNICATION SERVICES TO PLAN, IMPLEMENT, PURCHASE, EVALUATE, AND DOCUMENT COMMUNICATIONS RESULTS.

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 $44.9 million to STRATACOMM, LLC for work described as: THIS TASK ORDER PROVIDES NHTSA WITH TIMELY, EFFICIENT, AND EXPERT PROJECT MANAGEMENT KNOWLEDGE AND SKILLS TO EXECUTE A RANGE OF COMMUNICATION SERVICES TO PLAN, IMPLEMENT, PURCHASE, EVALUATE, AND DOCUMENT COMMUNICATIONS RESULTS. Key points: 1. Contract provides project management and communication expertise for NHTSA. 2. Services include planning, implementation, purchasing, evaluation, and documentation of communication results. 3. STRATACOMM, LLC, is the sole awardee for this delivery order. 4. The contract type is Cost Plus Award Fee, indicating performance-based incentives. 5. This task order falls under advertising agency services (NAICS 541810). 6. The contract duration is 507 days, spanning from May 2021 to September 2022. 7. Awarded under full and open competition after exclusion of sources.

Value Assessment

Rating: fair

The contract value of $44.9 million for a 507-day period suggests a significant investment in communication services. Benchmarking this against similar contracts for project management and communication support within federal agencies is crucial. Without specific performance metrics or detailed cost breakdowns, it's challenging to definitively assess value for money. The Cost Plus Award Fee structure implies that STRATACOMM, LLC could earn additional fees based on performance, which can incentivize good work but also requires robust oversight to ensure costs remain reasonable.

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.' This indicates that while the competition was open, specific sources may have been excluded based on predefined criteria. The number of bidders is not specified, but the 'full and open' designation generally suggests a competitive process. The effectiveness of this competition in driving down costs and ensuring the best value for the government depends on the number of responsive bids received and the evaluation criteria used.

Taxpayer Impact: A competitive award process, even with exclusions, is generally favorable for taxpayers as it aims to secure the best possible services at a reasonable price. However, the specifics of the exclusion criteria could impact the breadth of competition.

Public Impact

The primary beneficiary is the National Highway Traffic Safety Administration (NHTSA), which receives expert support for its communication initiatives. Services delivered include strategic planning, execution, and evaluation of communication campaigns. The geographic impact is national, as NHTSA's mission is to save lives and reduce injuries on U.S. roadways. Workforce implications include the potential for STRATACOMM, LLC to utilize its own staff and potentially engage subcontractors, impacting employment in the communications and project management sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to gauge the effectiveness of the communication services.
The 'Cost Plus Award Fee' structure requires diligent oversight to ensure costs are controlled and award fees are justified.
The 'exclusion of sources' in the competition warrants further investigation to understand its potential impact on market reach and price discovery.

Positive Signals

Awarded under full and open competition, suggesting a structured procurement process.
The contract aims to provide timely and efficient project management and communication expertise.
The focus on evaluating and documenting communication results indicates a commitment to measuring impact.

Sector Analysis

The advertising and public relations industry is a significant sector within the federal contracting landscape. Agencies like NHTSA rely on these services to disseminate critical information, promote safety initiatives, and manage public perception. This contract fits within the broader category of professional services, specifically focusing on communication strategy and execution. Comparable spending benchmarks would involve looking at other federal contracts for similar communication support services, considering factors like agency size, scope of work, and contract duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary contractor, STRATACOMM, LLC, is responsible for its own staffing and resource allocation. The impact on the broader small business ecosystem would depend on whether STRATACOMM, LLC chooses to subcontract any portion of this work to small businesses, which is not specified in the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the National Highway Traffic Safety Administration (NHTSA) and the Department of Transportation (DOT). The Cost Plus Award Fee (CPAF) structure necessitates robust performance monitoring to ensure that award fees are earned based on demonstrated results. Transparency is facilitated through contract award databases, but detailed performance reports and cost justifications may not be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Communications Services
Project Management Support Services
Public Awareness Campaigns
Government Advertising Contracts
Transportation Safety Initiatives

Risk Flags

Potential for reduced competition due to 'exclusion of sources'.
Need for robust oversight of CPAF structure to ensure value for money.
Lack of publicly available performance metrics makes independent assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $44.9 million to STRATACOMM, LLC. THIS TASK ORDER PROVIDES NHTSA WITH TIMELY, EFFICIENT, AND EXPERT PROJECT MANAGEMENT KNOWLEDGE AND SKILLS TO EXECUTE A RANGE OF COMMUNICATION SERVICES TO PLAN, IMPLEMENT, PURCHASE, EVALUATE, AND DOCUMENT COMMUNICATIONS RESULTS.

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 $44.9 million.

What is the period of performance?

Start: 2021-05-11. End: 2022-09-30.

What is STRATACOMM, LLC's track record with federal contracts, particularly within the Department of Transportation?

STRATACOMM, LLC has a history of federal contracting, including work with the Department of Transportation. Analyzing their past performance on similar contracts, including their ability to meet deadlines, manage budgets, and deliver quality services, is essential. Past awards and performance evaluations, if available, would provide insight into their reliability and expertise. Understanding their experience with Cost Plus Award Fee contracts specifically would also be beneficial, as it requires a different management approach compared to fixed-price contracts. Their overall federal contracting portfolio can indicate their capacity and specialization.

How does the $44.9 million cost compare to similar communication services contracts awarded by federal agencies?

The $44.9 million cost for 507 days of communication services represents a substantial investment. To benchmark this value, one would compare it to contracts for similar scope and duration awarded by other federal agencies, such as the Department of Health and Human Services or the Environmental Protection Agency, for project management and communication support. Factors like the complexity of the campaigns, the level of expertise required, and the specific deliverables would influence cost. Without detailed breakdowns of labor categories, overhead, and profit margins, a precise value-for-money assessment is difficult, but the amount suggests a significant undertaking.

What are the key performance indicators (KPIs) used to evaluate STRATACOMM, LLC's performance under this Cost Plus Award Fee contract?

Under a Cost Plus Award Fee (CPAF) contract, Key Performance Indicators (KPIs) are critical for determining the award fee. While not explicitly detailed in the provided data, typical KPIs for communication services contracts include metrics related to campaign reach (e.g., impressions, viewership), engagement (e.g., website visits, social media interactions), message recall, public awareness shifts, and achievement of specific communication objectives set by NHTSA. The contract likely outlines a performance plan with specific targets and evaluation criteria against which STRATACOMM, LLC's performance is measured to justify any award fees paid beyond the cost reimbursement.

What is the potential impact of 'exclusion of sources' on the overall competitiveness and cost-effectiveness of this contract?

The phrase 'full and open competition after exclusion of sources' implies that while the competition was broadly open, certain potential offerors were intentionally excluded based on specific criteria outlined in the solicitation. This exclusion could limit the number of bidders, potentially reducing the intensity of competition. If the excluded sources were highly capable or competitive, their absence might lead to higher prices or less innovative solutions. Conversely, if the exclusions were based on ensuring only highly qualified or specialized vendors participated, it could lead to better-qualified awardees. The specific rationale for exclusion is key to understanding its impact on cost-effectiveness.

How does this contract align with NHTSA's broader strategic goals for public safety and communication?

This contract directly supports NHTSA's mission to save lives and prevent injuries by providing essential project management and communication expertise. The services procured are designed to enhance NHTSA's ability to plan, execute, and evaluate communication campaigns aimed at influencing public behavior related to traffic safety. Whether it's promoting seatbelt use, discouraging impaired driving, or raising awareness about new safety technologies, effective communication is paramount. This contract ensures NHTSA has the specialized skills to maximize the impact and efficiency of its outreach efforts, aligning with its strategic objectives for improving road safety across the nation.

What is the historical spending trend for similar communication services at NHTSA or the Department of Transportation?

Analyzing historical spending on similar communication services at NHTSA and the broader Department of Transportation provides context for the $44.9 million award. If NHTSA has previously awarded large contracts for communication support, comparing the value, duration, and scope of those contracts can reveal trends in spending. Significant increases or decreases in spending could indicate shifts in program priorities, changes in contracting strategies, or evolving needs for communication support. Understanding this historical context helps assess whether the current contract represents a typical investment or a notable deviation.

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: 693JJ921R000026

Pricing Type: COST PLUS AWARD FEE (R)

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: $46,100,853

Exercised Options: $46,100,853

Current Obligation: $44,938,271

Actual Outlays: $44,938,271

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