HHS awards $9.87M contract for marketing consulting services to IPG DXTRA, INC

Contract Overview

Contract Amount: $9,869,429 ($9.9M)

Contractor: IPG Dxtra, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2023-09-01

End Date: 2026-08-31

Contract Duration: 1,095 days

Daily Burn Rate: $9.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARX COMMUNICATIONS & MEDIA

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10022

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $9.9 million to IPG DXTRA, INC. for work described as: ARX COMMUNICATIONS & MEDIA Key points: 1. Contract awarded for marketing consulting services, indicating a need for specialized expertise in public health communication. 2. The contract duration of 1095 days suggests a long-term strategy for ongoing marketing and communication efforts. 3. Awarded under a Blanket Purchase Agreement (BPA Call), implying a pre-negotiated framework for efficient procurement. 4. The firm-fixed-price contract type provides cost certainty for the government. 5. The contract is for services in New York, potentially targeting specific regional health initiatives. 6. The North American Industry Classification System (NAICS) code 541613 points to a focus on marketing management consulting.

Value Assessment

Rating: fair

The contract value of $9.87 million over three years for marketing consulting services appears within a reasonable range for large-scale federal campaigns. Benchmarking against similar marketing and advertising contracts awarded by HHS or other agencies for comparable services would provide a clearer picture of value for money. Without specific details on the scope of work and deliverables, a precise assessment of pricing efficiency is challenging. However, the firm-fixed-price structure offers predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under a Simplified Acquisition Procedure (SAP) via a BPA Call, suggesting that while some level of competition likely occurred, it may not have been a full and open solicitation. The number of offers received (4) indicates a moderate level of interest. This approach is often used for smaller value procurements or when existing agreements streamline the process, but it can limit the pool of potential bidders compared to broad solicitations.

Taxpayer Impact: A limited competition process may result in less aggressive pricing than a full and open competition, potentially leading to higher costs for taxpayers. However, the use of a BPA can also lead to administrative efficiencies.

Public Impact

The Centers for Disease Control and Prevention (CDC) is the primary beneficiary, utilizing these services to enhance public health messaging. Services delivered will focus on marketing and communication strategies to inform and engage the public on health-related issues. The geographic impact is centered in New York, suggesting a focus on state or local public health campaigns. The contract supports the federal government's ability to disseminate critical health information effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may restrict the range of innovative solutions available.
The specific deliverables and success metrics for the marketing services are not detailed, making performance assessment difficult.
Reliance on a single contractor for a significant period could lead to vendor lock-in.

Positive Signals

The firm-fixed-price contract provides budget certainty.
Awarding under a BPA Call suggests an existing relationship or framework that may expedite service delivery.
The contract duration indicates a commitment to sustained public health communication efforts.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically marketing consulting. The federal government frequently procures such services to support public awareness campaigns, health initiatives, and outreach programs. The market for marketing services is diverse, with many firms capable of providing specialized expertise. The value of this contract is moderate within the broader context of federal IT and professional services spending.

Small Business Impact

The data indicates that small business participation was not a specific set-aside requirement for this contract (ss: false, sb: false). There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for specialized tasks.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program officials within the Centers for Disease Control and Prevention (CDC). The firm-fixed-price nature of the contract provides a degree of financial oversight by establishing a ceiling cost. Transparency would be enhanced through regular reporting requirements and performance reviews. The Department of Health and Human Services' Office of Inspector General (OIG) would have jurisdiction for audits and investigations if any concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Public Health Campaigns
Health Communication Services
Marketing and Advertising Services
Federal Agency Outreach Programs

Risk Flags

Limited competition may impact price and innovation.
Scope definition and potential for change orders over a long duration.
Performance metrics and effectiveness measurement are not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $9.9 million to IPG DXTRA, INC.. ARX COMMUNICATIONS & MEDIA

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 $9.9 million.

What is the period of performance?

Start: 2023-09-01. End: 2026-08-31.

What is the track record of IPG DXTRA, INC. with federal contracts, particularly with HHS?

Information regarding the specific track record of IPG DXTRA, INC. with federal contracts, especially with the Department of Health and Human Services (HHS), is not provided in the given data. A comprehensive analysis would require accessing federal procurement databases like SAM.gov or FPDS to review past performance, contract values, and any reported issues or successes. Understanding their history with similar marketing and consulting services, and their performance on previous government contracts, is crucial for assessing their capability and reliability in fulfilling this current award.

How does the $9.87 million contract value compare to similar marketing consulting services procured by the CDC or HHS?

The $9.87 million contract value for marketing consulting services over three years is a significant award. To benchmark its value, one would need to compare it against historical data for similar services procured by the Centers for Disease Control and Prevention (CDC) or the broader Department of Health and Human Services (HHS). Factors such as the scope of services (e.g., digital marketing, public relations, campaign development), duration, and the number of bidders in comparable solicitations are essential for a meaningful comparison. Without this context, it's difficult to definitively state whether this represents excellent, fair, or questionable value for money.

What are the primary risks associated with this contract, given its limited competition and duration?

The primary risks associated with this contract stem from its limited competition and the firm-fixed-price structure over a 1095-day duration. Limited competition (4 bidders under SAP via BPA Call) could potentially lead to less competitive pricing and a narrower range of innovative solutions compared to a full and open competition. The firm-fixed-price nature, while providing cost certainty, can pose a risk if the scope of work is not precisely defined or if unforeseen challenges arise, potentially leading to contractor underperformance or requests for change orders. The long duration increases the risk of scope creep or the need for contract modifications if public health priorities shift.

How effective are marketing consulting services in achieving public health objectives for the CDC?

The effectiveness of marketing consulting services in achieving public health objectives for the CDC is highly dependent on the strategic planning, execution, and measurement of the campaigns. When well-executed, these services can significantly improve public awareness of health risks, promote preventative behaviors, disseminate critical health information during outbreaks, and encourage the uptake of health services. The CDC leverages such contracts to reach diverse populations with tailored messaging. Success is typically measured through metrics like campaign reach, engagement rates, shifts in public knowledge or attitudes, and ultimately, improvements in health outcomes, though direct attribution can be complex.

What is the historical spending trend for marketing consulting services by the Department of Health and Human Services?

Historical spending trends for marketing consulting services by the Department of Health and Human Services (HHS) would likely show a consistent need for these services, particularly for public health initiatives, health communication campaigns, and outreach programs. Spending can fluctuate based on emerging health crises, legislative priorities, and the specific needs of its various agencies like the CDC. Analyzing past years' data from sources like the Federal Procurement Data System (FPDS) would reveal the average contract values, the types of services most frequently procured, and the primary contractors. This trend analysis helps contextualize the current $9.87 million award.

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: 75D301-23-Q-76087

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: $9,878,324

Exercised Options: $9,869,429

Current Obligation: $9,869,429

Actual Outlays: $7,349,005

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSD2002015M88164B

IDV Type: BPA

Timeline