HHS Awards $287M Contract to True North Communications for National Education Campaign

Contract Overview

Contract Amount: $287,074,928 ($287.1M)

Contractor: True North Communications Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2021-09-20

End Date: 2025-03-31

Contract Duration: 1,288 days

Daily Burn Rate: $222.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: CTP NATIONAL EDUCATION CAMPAIGN PROGRAM TO1

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10001

State: New York Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $287.1 million to TRUE NORTH COMMUNICATIONS INC for work described as: CTP NATIONAL EDUCATION CAMPAIGN PROGRAM TO1 Key points: 1. Significant investment in public health communication. 2. Competition method appears robust, potentially driving value. 3. Contract duration extends over several years, requiring ongoing oversight. 4. Focus on advertising agencies highlights a specific service sector.

Value Assessment

Rating: good

The contract value of $287 million over approximately 4 years suggests a substantial program. Benchmarking against similar large-scale national campaigns would be necessary for a precise value assessment, but the scale indicates significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is a positive indicator for price discovery and achieving fair market value. This method allows all qualified vendors to bid, fostering a competitive environment.

Taxpayer Impact: Taxpayer funds are being used for a national education campaign, aiming for broad public benefit. The competitive award process suggests an effort to maximize the impact of these funds.

Public Impact

Public health awareness campaigns can lead to improved health outcomes. Effective communication strategies can influence public behavior and policy. Campaigns may target specific demographics or broad populations. Long-term engagement is crucial for sustained impact.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep over the contract duration.
Measuring campaign effectiveness can be challenging.
Reliance on a single vendor for a large campaign.

Positive Signals

Awarded through full and open competition.
Clear objective for a national education campaign.
Long-term contract allows for sustained effort.

Sector Analysis

The contract falls under the Advertising Agencies sector (NAICS 541810). Spending in this sector for government campaigns is common, particularly for public health initiatives. Benchmarks would compare this award to other large federal advertising contracts.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or subcontracted.

Oversight & Accountability

The long duration of the contract necessitates robust oversight from the Department of Health and Human Services to ensure performance, manage costs, and verify that campaign objectives are met effectively.

Related Government Programs

Advertising Agencies
Department of Health and Human Services Contracting
Food and Drug Administration Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Difficulty in definitively measuring campaign ROI.
Long contract duration increases risk of vendor performance issues.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $287.1 million to TRUE NORTH COMMUNICATIONS INC. CTP NATIONAL EDUCATION CAMPAIGN PROGRAM TO1

Who is the contractor on this award?

The obligated recipient is TRUE NORTH COMMUNICATIONS INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $287.1 million.

What is the period of performance?

Start: 2021-09-20. End: 2025-03-31.

What specific metrics will be used to measure the success and impact of this national education campaign?

Measuring the success of a national education campaign requires a multi-faceted approach. Key metrics could include reach and frequency of messaging, changes in public awareness or knowledge about the targeted health issue, shifts in reported behaviors, and ultimately, improvements in relevant health outcomes. Pre- and post-campaign surveys, media monitoring, and analysis of public health data would be essential components.

How will the government ensure the 'Time and Materials' pricing structure remains cost-effective throughout the contract's duration?

To ensure cost-effectiveness with a Time and Materials (T&M) contract, the government must implement strong oversight. This includes detailed monitoring of labor hours and rates, scrutinizing material costs, establishing clear task orders with defined objectives, and setting not-to-exceed limits. Regular performance reviews and comparison of actual costs against benchmarks for similar services are crucial to prevent cost overruns.

What is the anticipated return on investment for this $287 million campaign in terms of public health benefits?

Quantifying the precise return on investment (ROI) for a public health campaign is complex, as benefits are often long-term and indirect. However, the investment is justified by potential improvements in population health, reduced healthcare costs associated with preventable conditions, and enhanced public well-being. The campaign's success in achieving its specific educational objectives will be a primary indicator of its value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Advertising, Public Relations, and Related Services › Advertising Agencies

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: (RFTOP) NO. 1244185

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 100 W 33RD ST 5TH FLOOR, NEW YORK, NY, 10001

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

Financial Breakdown

Contract Ceiling: $287,074,928

Exercised Options: $287,074,928

Current Obligation: $287,074,928

Actual Outlays: $287,074,928

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75F40121D00016

IDV Type: IDC

Timeline