DOT Awards $109.5M National Communications Contract to StrataComm, LLC for Advertising Agencies

Contract Overview

Contract Amount: $109,526,624 ($109.5M)

Contractor: Stratacomm, LLC

Awarding Agency: Department of Transportation

Start Date: 2023-05-16

End Date: 2025-08-15

Contract Duration: 822 days

Daily Burn Rate: $133.2K/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 05

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 $109.5 million to STRATACOMM, LLC for work described as: TITLE: OBTAIN NATIONAL COMMUNICATIONS, MARKETING, AND MEDIA SUPPORT - BASE LEVEL-OF-EFFORT 05 Key points: 1. Contract awarded to StrataComm, LLC for national communications, marketing, and media support. 2. The contract has a base level-of-effort of $109.5 million, with a duration of 822 days. 3. Competition was full and open after exclusion of sources, indicating a competitive bidding process. 4. The sector is Advertising Agencies (NAICS 541810), a common area for government outreach.

Value Assessment

Rating: good

The contract is Cost Plus Fixed Fee, which allows for flexibility but requires careful oversight to manage costs. The awarded amount of $109.5M for a nearly two-year period for national communications support appears reasonable given the scope.

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 suggests that while initial sources might have been considered, the final award was made through a competitive process, likely ensuring fair pricing.

Taxpayer Impact: Taxpayer funds are being used for national communications and marketing efforts by the National Highway Traffic Safety Administration, aiming to inform the public.

Public Impact

Public awareness campaigns on traffic safety will be supported by this contract. Marketing and media strategies will be developed to reach a national audience. The contract ensures the government has access to specialized communication expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in Cost Plus Fixed Fee contracts.
Effectiveness of marketing campaigns can be difficult to measure precisely.

Positive Signals

Full and open competition generally leads to better value.
Contract duration allows for sustained communication efforts.
Award to a single entity streamlines management.

Sector Analysis

The Advertising Agencies sector (NAICS 541810) is crucial for government agencies to disseminate information and conduct public outreach. Spending in this sector can vary widely based on campaign scope and duration.

Small Business Impact

The data does not indicate if small businesses were involved as subcontractors or if the prime contractor is a small business. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The Cost Plus Fixed Fee contract type necessitates robust oversight from the National Highway Traffic Safety Administration to ensure costs remain reasonable and deliverables meet objectives.

Related Government Programs

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

Risk Flags

Cost Plus Fixed Fee contracts require diligent oversight to control spending.
Measuring the direct impact of marketing campaigns on public behavior can be complex.
Potential for scope creep if not managed tightly.
Reliance on a single contractor for national communication strategy.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $109.5 million to STRATACOMM, LLC. TITLE: OBTAIN NATIONAL COMMUNICATIONS, MARKETING, AND MEDIA SUPPORT - BASE LEVEL-OF-EFFORT 05

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 $109.5 million.

What is the period of performance?

Start: 2023-05-16. End: 2025-08-15.

What is the expected return on investment for the public safety campaigns funded by this contract?

The return on investment for public safety campaigns is typically measured by reductions in accidents, injuries, and fatalities, alongside increased public adherence to safety guidelines. Quantifying this ROI directly from the contract value is challenging, as it depends on the effectiveness of the communication strategies and external behavioral factors. The agency will likely track key performance indicators related to campaign reach and public response.

What are the specific deliverables and performance metrics for StrataComm, LLC under this contract?

Specific deliverables would likely include strategic communication plans, media buys, creative content development (e.g., PSAs, digital ads), campaign performance reports, and market research analysis. Performance metrics would focus on campaign reach, engagement rates, message recall, and potentially, correlation with changes in public behavior or awareness related to traffic safety. The contract details should outline these requirements.

How will the agency ensure the fixed fee remains appropriate given the 'Cost Plus' nature of the contract?

The agency will ensure the fixed fee's appropriateness through rigorous negotiation based on market research, historical data, and the contractor's proposed labor rates and overhead. Ongoing oversight will monitor actual costs against the estimate to ensure the contractor is operating efficiently. Any significant deviations or scope changes would trigger a review and potential adjustment of the fee, subject to contract terms.

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: $110,441,544

Exercised Options: $109,526,624

Current Obligation: $109,526,624

Actual Outlays: $109,428,654

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