DOT awards $12.9M for vehicle safety communications, with StrataComm LLC securing the contract

Contract Overview

Contract Amount: $12,897,386 ($12.9M)

Contractor: Stratacomm, LLC

Awarding Agency: Department of Transportation

Start Date: 2023-09-27

End Date: 2026-09-28

Contract Duration: 1,097 days

Daily Burn Rate: $11.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TITLE: OBTAIN VEHICLE SAFETY COMMUNICATION SERVICES DESCRIPTION: THE CONTRACT PURPOSE IS TO ACQUIRE INTEGRATED COMMUNICATIONS, MEDIA PLANNING/BUYING, MARKETING, MARKET RESEARCH, ADVERTISING, PARTNERSHIP DEVELOPMENT AND EVENT PLANNING SERVICES TO

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 $12.9 million to STRATACOMM, LLC for work described as: TITLE: OBTAIN VEHICLE SAFETY COMMUNICATION SERVICES DESCRIPTION: THE CONTRACT PURPOSE IS TO ACQUIRE INTEGRATED COMMUNICATIONS, MEDIA PLANNING/BUYING, MARKETING, MARKET RESEARCH, ADVERTISING, PARTNERSHIP DEVELOPMENT AND EVENT PLANNING SERVICES TO Key points: 1. The contract focuses on integrated communications, media, marketing, and advertising services for vehicle safety. 2. Services include market research, partnership development, and event planning, indicating a broad scope. 3. The contract is structured as a Time and Materials award, which can pose cost control challenges. 4. With a duration of nearly three years, it represents a significant, ongoing investment in public safety messaging. 5. The award was made under full and open competition, suggesting a robust selection process. 6. The National Highway Traffic Safety Administration (NHTSA) is the primary agency overseeing this initiative.

Value Assessment

Rating: good

The total award of $12.9 million over approximately three years for comprehensive communication services appears reasonable given the scope. Benchmarking against similar large-scale public awareness campaigns for safety initiatives suggests this is within expected ranges. The Time and Materials (T&M) contract type, while offering flexibility, warrants close monitoring to ensure costs remain aligned with the value delivered and do not escalate beyond initial projections. Without specific cost breakdowns for individual services, a precise value-for-money assessment is challenging, but the overall investment aligns with the critical nature of vehicle safety.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bids suggests a competitive environment, though the exact number of bidders is relatively low for a contract of this magnitude. A higher number of bids typically leads to more competitive pricing and a wider range of innovative solutions. However, the fact that it was competed openly is a positive sign for price discovery and ensuring the government receives fair market value.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for public funds. Full and open competition increases the likelihood that the chosen contractor offers services at a reasonable price point, preventing potential overspending.

Public Impact

The public benefits from enhanced vehicle safety awareness campaigns, potentially reducing accidents and fatalities. Services delivered include advertising, media planning, market research, and event planning to disseminate safety information. The geographic impact is national, aiming to reach all vehicle operators and passengers across the United States. Workforce implications may include jobs in advertising, marketing, research, and event management, both within the contractor and potentially through subcontracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not closely managed and monitored.
A limited number of bidders (two) might indicate potential limitations in the market or a complex solicitation process.
The broad scope of services could lead to challenges in performance management and ensuring all objectives are met effectively.

Positive Signals

Awarded under full and open competition, ensuring a fair and transparent selection process.
The contract addresses a critical public safety need, aligning with the mission of NHTSA.
The selected contractor, StrataComm, LLC, will be responsible for implementing vital safety communication strategies.

Sector Analysis

The advertising and related services sector (NAICS 541810) is a dynamic industry encompassing a wide range of marketing and communication activities. Federal spending in this sector supports various government outreach and public information campaigns. This contract fits within the broader category of government communications and public affairs, aiming to influence public behavior and disseminate important information. Comparable spending benchmarks would typically be found in other large-scale public awareness campaigns managed by agencies like the Department of Health and Human Services or the Environmental Protection Agency.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. The solicitation details do not mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless StrataComm, LLC voluntarily includes small businesses in its subcontracting efforts. Further analysis of the subcontracting plan, if available, would be necessary to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract will primarily reside with the National Highway Traffic Safety Administration (NHTSA), a division of the Department of Transportation. As a Time and Materials contract, rigorous oversight of labor hours, rates, and direct costs will be crucial to ensure accountability and prevent cost escalation. Transparency will depend on the agency's reporting practices and the public availability of performance metrics. The Inspector General for the Department of Transportation would have jurisdiction over any potential fraud, waste, or abuse related to this award.

Related Government Programs

National Highway Traffic Safety Administration Public Awareness Campaigns
Department of Transportation Advertising and Marketing Services
Federal Public Health Communication Initiatives
Government Media Planning and Buying Contracts

Risk Flags

Time and Materials Contract Type
Limited Number of Bidders

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $12.9 million to STRATACOMM, LLC. TITLE: OBTAIN VEHICLE SAFETY COMMUNICATION SERVICES DESCRIPTION: THE CONTRACT PURPOSE IS TO ACQUIRE INTEGRATED COMMUNICATIONS, MEDIA PLANNING/BUYING, MARKETING, MARKET RESEARCH, ADVERTISING, PARTNERSHIP DEVELOPMENT AND EVENT PLANNING SERVICES TO

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 $12.9 million.

What is the period of performance?

Start: 2023-09-27. End: 2026-09-28.

What is StrataComm, LLC's track record with federal contracts, particularly in public safety communications?

A review of federal procurement data indicates that StrataComm, LLC has a history of securing contracts, though specific details on their past performance in large-scale public safety communication campaigns require deeper investigation. Analyzing past awards, contract values, and performance reviews would provide a clearer picture of their capabilities and reliability in executing similar initiatives. Understanding their experience with government agencies, especially NHTSA or other safety-focused bodies, is crucial for assessing their suitability for this significant award. Without specific performance metrics from prior contracts, it is difficult to definitively gauge their track record in this specialized area.

How does the $12.9 million award compare to similar vehicle safety communication contracts?

The $12.9 million award for integrated communication services over approximately three years appears to be within a reasonable range for a national-level public safety campaign. Large-scale campaigns addressing critical issues like vehicle safety often require substantial investment in media placement, creative development, market research, and outreach. Comparing this to other NHTSA campaigns or similar initiatives from agencies like the CDC or EPA for health-related awareness programs would provide a more precise benchmark. Factors such as the duration, scope of services, and target audience significantly influence cost, making direct comparisons challenging without detailed service breakdowns.

What are the primary risks associated with a Time and Materials (T&M) contract for communication services?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns, as the final price is not fixed and depends on the actual labor hours and material costs incurred. For communication services, this can be exacerbated by scope creep, inefficient task execution, or extended project timelines. Without strong oversight and clear task definitions, contractors may have less incentive to control costs. To mitigate these risks, the agency must diligently monitor labor rates, hours, and direct expenses, ensuring they are reasonable and directly related to the contract's objectives. Establishing clear ceilings and requiring detailed reporting are essential.

How effective are national communication campaigns in changing vehicle safety behaviors?

The effectiveness of national communication campaigns in changing vehicle safety behaviors is generally considered moderate to high, but it is highly dependent on several factors. These include the campaign's messaging clarity, reach, frequency, target audience engagement, and integration with other interventions (e.g., enforcement, policy changes). While campaigns can raise awareness and influence attitudes, translating this into sustained behavioral change often requires long-term effort and reinforcement. Data from past campaigns, such as those related to seatbelt use or impaired driving, show positive correlations with reduced incidents, but isolating the campaign's impact from other societal factors can be complex.

What has been the historical spending trend for vehicle safety communication services by NHTSA?

Analyzing historical spending trends for vehicle safety communication services by NHTSA reveals a consistent commitment to public awareness initiatives. While specific figures fluctuate annually based on campaign priorities and budget allocations, NHTSA has historically invested significant resources in educating the public about road safety. This includes funding for advertising, media outreach, research, and program development aimed at reducing traffic fatalities and injuries. The current $12.9 million award aligns with the agency's ongoing mandate and suggests a sustained level of investment in this critical area, reflecting the persistent need for effective safety messaging.

What is the potential impact of this contract on the advertising and marketing industry?

This contract represents a significant opportunity for StrataComm, LLC and potentially other firms within the advertising and marketing industry. It signals continued government investment in public awareness campaigns, particularly in critical areas like public safety. The scope of services required—encompassing media planning, buying, market research, and creative development—will likely necessitate a coordinated effort, potentially involving specialized subcontractors. Such awards can boost revenue and provide valuable experience for agencies, influencing their strategic focus and resource allocation within the broader industry landscape.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1828 L ST NW STE 401, WASHINGTON, DC, 20036

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

Financial Breakdown

Contract Ceiling: $12,897,386

Exercised Options: $12,897,386

Current Obligation: $12,897,386

Actual Outlays: $9,613,586

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAA20D008P

IDV Type: FSS

Timeline