HHS awards $66.5M for NCIRD Communications Support to IPG DXTRA, Inc

Contract Overview

Contract Amount: $66,522,629 ($66.5M)

Contractor: IPG Dxtra, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2020-09-28

End Date: 2026-03-27

Contract Duration: 2,006 days

Daily Burn Rate: $33.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NCIRD COMMUNICATIONS SUPPORT

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $66.5 million to IPG DXTRA, INC. for work described as: NCIRD COMMUNICATIONS SUPPORT Key points: 1. Contract value represents a significant investment in public health communication. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Performance period extends over several years, indicating a long-term need. 4. Marketing consulting services are crucial for disseminating public health information. 5. The contract's firm-fixed-price structure aims to control costs. 6. Geographic focus on Georgia may indicate specific regional public health initiatives.

Value Assessment

Rating: good

The contract value of $66.5 million for communications support appears reasonable given the multi-year duration and the critical nature of public health messaging. Benchmarking against similar large-scale marketing and communications contracts within federal agencies would provide further context. The firm-fixed-price (FFP) award type suggests that cost control was a primary consideration, and the contractor bears the risk of cost overruns. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the FFP structure is generally favorable for predictable budgeting.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under SAP (Simplified Acquisition Procedures), indicating a competitive process. While the exact number of bidders is not specified, the 'COMPETED UNDER SAP' designation suggests that multiple offers were solicited and evaluated. This approach is designed to ensure fair pricing and access to a range of qualified vendors. The use of SAP implies that the acquisition was likely below certain dollar thresholds, allowing for streamlined competition.

Taxpayer Impact: The competitive nature of this award, even under SAP, is beneficial for taxpayers as it likely resulted in a more favorable price compared to a sole-source or limited competition scenario. It ensures that public funds are used efficiently by leveraging market forces.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from enhanced communication capabilities. The public benefits from improved dissemination of public health information and campaigns. The contract supports the National Center for Immunization and Respiratory Diseases (NCIRD) in its mission. Workforce implications include potential support roles for communication specialists and subject matter experts. Geographic impact is noted as Georgia, suggesting a focus on state-level public health initiatives or a specific operational base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if project requirements are not clearly defined and managed.
Reliance on a single contractor for critical communications could pose a risk if performance falters.
Ensuring the contractor's messaging aligns with evolving public health guidance requires ongoing oversight.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Multi-year award indicates a stable, long-term partnership for consistent communication efforts.
Competition under SAP suggests a robust process for selecting a qualified vendor.

Sector Analysis

This contract falls within the Marketing Consulting Services sector, a critical component of public health outreach and education. The market for these services is diverse, ranging from small specialized firms to large integrated agencies. Federal spending in this area often supports public awareness campaigns, disease prevention initiatives, and health promotion. The value of this contract, approximately $66.5 million over its period, places it as a significant award within the federal government's marketing and communications procurement landscape, likely supporting large-scale national or regional public health efforts.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While this contract is a BPA Call, the primary award was competed under SAP. Analysis of subcontracting plans would be necessary to determine if small businesses are involved in fulfilling parts of this contract. Without this information, the direct impact on the small business ecosystem is unclear, though larger contracts often have subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside with the Centers for Disease Control and Prevention (CDC) contracting officer and program officials. The firm-fixed-price nature of the award shifts cost risk to the contractor, but performance monitoring remains crucial. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

CDC Public Health Communication Services
HHS Marketing and Advertising Contracts
Federal Health Information Dissemination Programs
National Health Observances Support

Risk Flags

Potential for performance issues impacting public health messaging.
Risk of scope creep without diligent contract management.
Ensuring continued alignment with evolving public health guidance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $66.5 million to IPG DXTRA, INC.. NCIRD COMMUNICATIONS SUPPORT

Who is the contractor on this award?

The obligated recipient is IPG DXTRA, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $66.5 million.

What is the period of performance?

Start: 2020-09-28. End: 2026-03-27.

What is the track record of IPG DXTRA, Inc. with federal government contracts, particularly within the Department of Health and Human Services?

IPG DXTRA, Inc. has a history of receiving federal contracts, including those with agencies under the Department of Health and Human Services. Analyzing their past performance on similar communications or marketing contracts would reveal their reliability, ability to meet deadlines, and quality of deliverables. A review of contract databases would show the types of services they have provided, their award values, and any reported performance issues or successes. Understanding their prior experience is key to assessing their capability to successfully execute this $66.5 million NCIRD Communications Support contract, ensuring taxpayer funds are managed effectively and public health messaging is delivered as intended.

How does the awarded amount of $66.5 million compare to similar federal contracts for communications support services?

The $66.5 million award for NCIRD Communications Support is a substantial figure, indicative of a large-scale, multi-year effort. To benchmark its value, one would compare it to other federal contracts for marketing, public relations, and communications support, particularly those awarded by agencies like the CDC, HHS, or other public health entities. Factors such as contract duration, scope of work (e.g., campaign development, media buying, digital outreach, crisis communication), and the specific services required influence pricing. If similar multi-year contracts for comparable services have been awarded in the range of tens of millions, this award appears consistent with market rates for significant federal communication needs. Conversely, if comparable contracts are significantly lower, it might warrant further investigation into the specifics of this award's scope or pricing structure.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks for this contract include potential misalignment of messaging with evolving public health guidance, contractor performance issues leading to delayed or ineffective communication campaigns, and budget overruns if the firm-fixed-price structure is not adequately managed. Mitigation strategies typically involve robust government oversight, clear performance work statements (PWS), regular progress reviews, and defined key performance indicators (KPIs). The CDC program office would be responsible for monitoring contractor adherence to the PWS and ensuring the quality and accuracy of all communications. The firm-fixed-price nature itself mitigates financial risk for the government, as the contractor is responsible for cost overruns, provided the scope of work remains unchanged.

How effective has the CDC been in leveraging communications support contracts to achieve public health objectives in the past?

The effectiveness of CDC's use of communications support contracts can be assessed by examining the outcomes of past public health campaigns managed under similar agreements. This involves looking at metrics such as public awareness levels, behavioral changes attributed to campaigns (e.g., vaccination rates, adherence to health guidelines), and the reach of disseminated information. Analyzing the CDC's historical spending in this category and correlating it with documented public health improvements or crisis response successes would provide insight. While specific data on the effectiveness of every contract is not always publicly detailed, the continued reliance on such contracts suggests a perceived value in supporting the CDC's mission to protect public health through strategic communication.

What are the historical spending patterns for marketing and communications support services by the CDC or HHS?

Historical spending patterns for marketing and communications support by the CDC and HHS reveal a consistent and significant investment in these services. Agencies like the CDC regularly procure services for public health campaigns, disease prevention outreach, and health education initiatives. Annual spending can fluctuate based on emerging health threats, legislative priorities, and specific campaign needs. Examining aggregated data over several fiscal years would show trends in contract values, types of services procured (e.g., advertising, digital media, public relations), and the primary contractors. This historical context helps in evaluating whether the current $66.5 million award is an outlier or part of a sustained pattern of investment in critical public health communications.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Marketing Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 75D301-20-Q-71331

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 909 3RD AVE FL 7, NEW YORK, NY, 10022

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $71,868,061

Exercised Options: $66,522,629

Current Obligation: $66,522,629

Actual Outlays: $56,317,675

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: HHSD2002015M88164B

IDV Type: BPA

Timeline