DOT awards $60.4M to STRATACOMM for NHTSA communication services under full and open competition

Contract Overview

Contract Amount: $60,389,265 ($60.4M)

Contractor: Stratacomm, LLC

Awarding Agency: Department of Transportation

Start Date: 2022-05-10

End Date: 2023-10-09

Contract Duration: 517 days

Daily Burn Rate: $116.8K/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 $60.4 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. STRATACOMM, LLC secured a significant contract for project management and communication services for NHTSA. 2. The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process. 3. The Cost Plus Award Fee (CPAF) structure incentivizes performance but requires careful oversight to manage costs. 4. The sector is advertising and public relations, supporting critical government communication initiatives.

Value Assessment

Rating: good

The contract value of $60.4M for a 17-month period appears substantial for specialized communication services. Benchmarking against similar government contracts for project management and communication support would be necessary for a precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests an initial exclusion of some sources, followed by a broader competitive process. The pricing discovery mechanism is influenced by the CPAF structure, which links award fees to performance metrics.

Taxpayer Impact: Taxpayer funds are being used for essential communication services to support NHTSA's mission. The competitive award process aims to ensure value for money, while the CPAF structure requires monitoring to control costs effectively.

Public Impact

Enhances NHTSA's ability to plan, implement, and evaluate communication campaigns. Supports public safety initiatives through effective messaging and outreach. Ensures accountability in government communication efforts. Provides expert project management for complex communication projects. Contributes to informed public discourse on traffic safety.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with CPAF structure if not closely managed.
Reliance on a single contractor for critical communication functions.
Effectiveness of 'exclusion of sources' followed by open competition needs scrutiny.

Positive Signals

Awarded through a competitive process.
Provides specialized expertise for NHTSA's communication needs.
Focuses on measurable communication results and evaluation.

Sector Analysis

The advertising and public relations sector (NAICS 541810) supports government agencies in disseminating information and managing public perception. Spending in this sector can vary widely based on agency needs for campaigns, outreach, and strategic communication.

Small Business Impact

The data indicates this contract was awarded to STRATACOMM, LLC. There is no explicit information provided regarding small business participation or subcontracting goals within this specific delivery order.

Oversight & Accountability

The Cost Plus Award Fee (CPAF) contract type necessitates robust oversight from NHTSA to ensure STRATACOMM, LLC meets performance objectives and manages costs effectively. Regular performance reviews and audits are crucial for accountability.

Related Government Programs

Advertising Agencies
Department of Transportation Contracting
National Highway Traffic Safety Administration Programs

Risk Flags

Potential for cost creep due to CPAF structure.
Lack of transparency on initial source exclusion.
Contract duration and value require sustained oversight.
Performance metrics for award fee need clear definition and monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $60.4 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 $60.4 million.

What is the period of performance?

Start: 2022-05-10. End: 2023-10-09.

How does the CPAF structure ensure cost-effectiveness compared to other contract types for similar communication services?

The CPAF structure aims to incentivize contractor performance by linking a portion of the fee to achieving specific performance targets. While it can drive better outcomes, it requires diligent government oversight to prevent cost inflation. Compared to fixed-price contracts, CPAF offers more flexibility for evolving requirements but potentially higher costs if performance targets are easily met or poorly defined. It balances cost control with quality assurance.

What are the specific risks associated with 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' in this context?

This award method suggests an initial limitation on potential bidders, which could inadvertently reduce the pool of qualified contractors or raise questions about fairness. While it ultimately led to an open competition, the initial exclusion might have prevented some capable small businesses or new entrants from participating from the outset. Transparency in the justification for exclusion is key to mitigating perceived risks.

How will the effectiveness of STRATACOMM's communication services be measured and evaluated by NHTSA?

The contract's CPAF structure implies that effectiveness will be measured against predefined performance metrics and objectives related to communication planning, implementation, and results evaluation. NHTSA will likely track key performance indicators (KPIs) such as campaign reach, public engagement, message clarity, and achievement of communication goals. Regular reporting and performance reviews will be critical for assessing the contractor's success.

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: 693JJ922R000017

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: $60,389,265

Exercised Options: $60,389,265

Current Obligation: $60,389,265

Actual Outlays: $60,389,265

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