HHS awards $3.37M contract for communications and outreach to Schatz Publishing Group

Contract Overview

Contract Amount: $3,369,328 ($3.4M)

Contractor: Schatz Publishing Group, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-03-30

End Date: 2027-03-29

Contract Duration: 1,094 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OTIP SEEKS SERVICES TO ADVANCE ITS COMMUNICATIONS, PUBLIC AWARENESS, AND OUTREACH ACTIVITIES, INCLUDING THE DESIGN OF NEW STRATEGIES, INCLUDING FORMATIVE RESEARCH, AUDIENCE SEGMENTATION AND TARGETING, SCALABILITY, DISSEMINATION, AND METRICS FOR EVALU

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.4 million to SCHATZ PUBLISHING GROUP, LLC for work described as: OTIP SEEKS SERVICES TO ADVANCE ITS COMMUNICATIONS, PUBLIC AWARENESS, AND OUTREACH ACTIVITIES, INCLUDING THE DESIGN OF NEW STRATEGIES, INCLUDING FORMATIVE RESEARCH, AUDIENCE SEGMENTATION AND TARGETING, SCALABILITY, DISSEMINATION, AND METRICS FOR EVALU Key points: 1. The contract focuses on enhancing public awareness and outreach through strategic communication, research, and audience segmentation. 2. Value is assessed based on the scope of services including strategy design, formative research, and performance metrics. 3. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 4. Risk indicators are moderate, primarily related to the successful execution of complex communication strategies. 5. Performance context involves advancing the Department of Health and Human Services' (HHS) communication goals. 6. Sector positioning is within the advertising and public relations services industry, supporting government outreach initiatives.

Value Assessment

Rating: good

The contract value of $3.37 million over approximately three years appears reasonable for comprehensive communication and public awareness services. Benchmarking against similar government contracts for strategic communications and advertising campaigns suggests this is within a typical range. The firm-fixed-price structure helps control costs, but the ultimate value will depend on the effectiveness and reach of the strategies developed and implemented by Schatz Publishing Group.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of three bids suggests a moderate level of competition. While full and open competition is generally preferred for ensuring fair pricing and access to a wide range of capabilities, the specific number of bidders can influence the intensity of price negotiation.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that can drive down costs and improve service quality.

Public Impact

The primary beneficiaries are the Department of Health and Human Services (HHS) and the public, who will receive enhanced information and awareness regarding HHS initiatives. Services delivered include the design of new communication strategies, formative research, audience segmentation, scalability planning, dissemination, and metrics for evaluation. The geographic impact is national, as HHS initiatives typically have broad public reach across the United States. Workforce implications may include the utilization of specialized communication and research professionals within Schatz Publishing Group and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Ensuring the effectiveness and measurable impact of communication strategies developed.
Managing the complexity of audience segmentation and targeted outreach across diverse populations.
Maintaining clear communication and alignment with HHS objectives throughout the contract period.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
Contract duration of approximately three years allows for sustained strategic development and implementation.

Sector Analysis

The advertising and public relations industry is a significant sector supporting government agencies in their efforts to inform and engage the public. This contract falls within the NAICS code 541810 (Advertising Agencies). Government spending in this area is crucial for disseminating public health information, policy updates, and program awareness. Comparable spending benchmarks would involve analyzing other federal contracts for similar communication and outreach services across various agencies.

Small Business Impact

The contract was awarded through full and open competition and does not indicate a specific small business set-aside. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is not detailed, though Schatz Publishing Group may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Office of the Assistant Secretary for Financial Resources within HHS, which awarded the contract. Accountability measures will be tied to the delivery of specified communication strategies and performance metrics outlined in the contract. Transparency is facilitated through the federal contract award process, and any specific Inspector General jurisdiction would depend on HHS's internal policies and the nature of any potential issues.

Related Government Programs

HHS Public Affairs Contracts
Government Communications Services
Federal Advertising and Marketing Contracts
Public Health Outreach Programs

Risk Flags

Potential for underperformance in achieving communication objectives.
Risk of strategies not effectively reaching or engaging target audiences.
Challenges in accurately measuring and reporting on campaign effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.4 million to SCHATZ PUBLISHING GROUP, LLC. OTIP SEEKS SERVICES TO ADVANCE ITS COMMUNICATIONS, PUBLIC AWARENESS, AND OUTREACH ACTIVITIES, INCLUDING THE DESIGN OF NEW STRATEGIES, INCLUDING FORMATIVE RESEARCH, AUDIENCE SEGMENTATION AND TARGETING, SCALABILITY, DISSEMINATION, AND METRICS FOR EVALU

Who is the contractor on this award?

The obligated recipient is SCHATZ PUBLISHING GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Financial Resources).

What is the total obligated amount?

The obligated amount is $3.4 million.

What is the period of performance?

Start: 2024-03-30. End: 2027-03-29.

What is Schatz Publishing Group's track record with federal communication contracts?

Information regarding Schatz Publishing Group's specific track record with federal communication contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any publicly available information on their previous government engagements. Understanding their experience with similar scope and scale of work, particularly for agencies like HHS, would be crucial for evaluating their capability to meet the objectives of this new contract. Their ability to successfully deliver on strategic communication, research, and outreach for federal clients would be a key indicator of future performance.

How does the $3.37 million value compare to similar government communication contracts?

The $3.37 million contract value for three years of comprehensive communication and public awareness services appears to be within a reasonable range for federal contracts of this nature. Similar contracts awarded by agencies like HHS, CDC, or other public-facing departments for strategic communications, public relations, and outreach campaigns often fall within the low to mid-single-digit millions, depending on the scope, duration, and specific deliverables. Factors such as the level of research required, the complexity of audience segmentation, and the extent of dissemination strategies can influence the overall cost. Without specific benchmarks for identical services, this value suggests a moderate investment for advancing critical government messaging and public engagement.

What are the primary risks associated with this contract?

The primary risks associated with this contract revolve around the effective execution and measurable impact of the communication strategies. This includes the risk of developing strategies that do not resonate with target audiences, leading to suboptimal public awareness or engagement. Another risk is the challenge in accurately segmenting and reaching diverse populations, potentially resulting in inefficient resource allocation. Furthermore, the success metrics defined within the contract must be robust and achievable, posing a risk if they are poorly defined or if the contractor fails to meet them. Finally, ensuring consistent alignment with HHS's evolving communication objectives and public health priorities throughout the contract's duration is critical.

How effective is the chosen competition level for ensuring value for taxpayers?

The chosen competition level, 'full and open,' is generally considered the most effective for ensuring value for taxpayers. This approach maximizes the pool of potential bidders, thereby increasing the likelihood of receiving competitive proposals that offer the best combination of price and quality. While only three bids were received in this instance, the 'full and open' framework still provides a strong foundation for price discovery and vendor selection. The firm-fixed-price contract type further enhances taxpayer value by establishing a clear cost ceiling, mitigating the risk of cost overruns. The ultimate value realization depends on the quality of services delivered and their impact on HHS's communication goals.

What is the historical spending pattern for similar communication services at HHS?

Historical spending patterns for similar communication services at HHS can vary significantly based on specific program needs, campaign scope, and agency priorities. While this specific contract is for $3.37 million over three years, HHS likely engages in numerous smaller and larger contracts for public affairs, advertising, and outreach activities annually. Analyzing past HHS budgets and contract awards for communication-related services would reveal trends in investment areas, preferred contracting mechanisms (e.g., IDIQs, task orders), and typical contract values. Understanding these patterns can provide context for the current award and highlight any shifts in strategic focus or spending levels for public engagement.

What are the potential performance challenges for Schatz Publishing Group?

Potential performance challenges for Schatz Publishing Group include the complexity of designing and implementing effective communication strategies that cater to diverse audiences and evolving public health landscapes. Accurately measuring the impact and ROI of communication efforts can also be challenging, requiring sophisticated metrics and analytical capabilities. Ensuring timely delivery of all contractual obligations, from research to dissemination and reporting, while maintaining high quality, presents another performance hurdle. Furthermore, adapting to potential shifts in HHS priorities or external communication environments requires agility and responsiveness from the contractor.

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

Solicitation ID: 75ACF124Q00025

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11950 W HIGHLAND AVE, BLACKWELL, OK, 74631

Business Categories: 8(a) Program Participant, Category Business, HUBZone Firm, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $3,369,328

Exercised Options: $3,369,328

Current Obligation: $3,369,328

Actual Outlays: $1,956,468

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS23F0137R

IDV Type: FSS

Timeline