Digital marketing services contract awarded to Alexander & Tom, Inc. for $10.59 million over five years

Contract Overview

Contract Amount: $10,591,600 ($10.6M)

Contractor: Alexander & TOM, Inc.

Awarding Agency: Export-Import Bank of the United States

Start Date: 2019-09-30

End Date: 2024-09-29

Contract Duration: 1,826 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DIGITAL MARKETING SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20571

State: District of Columbia Government Spending

Plain-Language Summary

Export-Import Bank of the United States obligated $10.6 million to ALEXANDER & TOM, INC. for work described as: DIGITAL MARKETING SERVICES Key points: 1. Contract value appears reasonable for a five-year digital marketing engagement. 2. Full and open competition suggests a competitive bidding process. 3. Firm fixed-price contract type mitigates cost overrun risks. 4. Contract duration of five years allows for sustained marketing efforts. 5. Performance period spans from late 2019 to late 2024. 6. Small business participation was not a stated requirement.

Value Assessment

Rating: good

The contract value of approximately $10.59 million over five years, averaging around $2.1 million annually, is within a reasonable range for comprehensive digital marketing services for a federal agency. Benchmarking against similar federal contracts for digital marketing and advertising services indicates that this price point is competitive, especially considering the scope likely includes strategy, content creation, media buying, and analytics. The firm fixed-price structure provides cost certainty for the agency, reducing the risk of unexpected budget increases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, which is beneficial for price discovery and ensuring the government receives the best value. The agency likely issued a solicitation that clearly defined the requirements, allowing multiple vendors to propose their solutions.

Taxpayer Impact: Full and open competition typically leads to more favorable pricing for taxpayers by encouraging multiple vendors to offer competitive bids, driving down costs and improving service quality.

Public Impact

The Export-Import Bank of the United States benefits from enhanced digital outreach and communication capabilities. Services delivered likely include website management, social media engagement, content marketing, and digital advertising campaigns. The geographic impact is primarily focused on the District of Columbia, where the agency is headquartered. Workforce implications may involve the utilization of specialized digital marketing professionals within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or KPIs in the provided data makes it difficult to assess effectiveness.
Limited insight into the specific deliverables and their impact on the agency's mission.
No information on contractor past performance or track record with similar federal contracts.

Positive Signals

Firm fixed-price contract provides budget predictability.
Full and open competition suggests a robust selection process.
Long-term contract (5 years) allows for continuity and strategic development of marketing initiatives.

Sector Analysis

This contract falls within the broader digital marketing and advertising services sector, which is a significant component of the professional services market for the federal government. Agencies increasingly rely on digital channels to communicate with stakeholders, promote programs, and disseminate information. Spending in this sector is driven by the need for sophisticated online presence management, targeted outreach, and data-driven campaign optimization. Comparable spending benchmarks would typically be found within IT and professional services categories, with digital marketing being a specialized subset.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and there is no indication of small business subcontracting requirements (ss: false). This suggests that the competition was open to all business sizes, and the prime contractor is likely a larger entity. The absence of small business set-asides means that opportunities for small businesses to directly participate in this specific contract are limited, though they might be involved as subcontractors if the prime contractor chooses to engage them.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Export-Import Bank of the United States. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services within the agreed budget. Transparency is generally facilitated through contract award databases and public reporting, although detailed performance reviews are often internal. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Federal Agency Digital Marketing Services
Government Public Relations and Communications
IT Professional Services
Advertising and Public Relations Services

Risk Flags

Lack of detailed performance metrics
Limited information on contractor past performance
No specific small business subcontracting requirements noted

Frequently Asked Questions

What is this federal contract paying for?

Export-Import Bank of the United States awarded $10.6 million to ALEXANDER & TOM, INC.. DIGITAL MARKETING SERVICES

Who is the contractor on this award?

The obligated recipient is ALEXANDER & TOM, INC..

Which agency awarded this contract?

Awarding agency: Export-Import Bank of the United States (Export-Import Bank of the United States).

What is the total obligated amount?

The obligated amount is $10.6 million.

What is the period of performance?

Start: 2019-09-30. End: 2024-09-29.

What specific digital marketing strategies and tactics were employed under this contract?

The provided data does not detail the specific strategies and tactics used. However, typical digital marketing services under such contracts include search engine optimization (SEO), search engine marketing (SEM), social media marketing, content marketing (blog posts, videos, infographics), email marketing, display advertising, and analytics and reporting. The Export-Import Bank likely leveraged these channels to enhance its online presence, engage with international businesses, promote trade finance opportunities, and communicate its mission and impact to a global audience. A comprehensive review of the contract's statement of work (SOW) and performance reports would be necessary to ascertain the precise methodologies employed.

How does the annual cost of this contract compare to industry benchmarks for similar federal digital marketing services?

The contract's annual cost averages approximately $2.1 million ($10.59 million / 5 years). This figure appears competitive when benchmarked against federal contracts for comprehensive digital marketing and advertising services. Federal agencies often require a broad spectrum of services, including strategy development, content creation, media buying across various platforms, social media management, SEO/SEM, and detailed performance analytics. While specific service inclusions vary, this annual spend is consistent with agencies seeking robust, multi-channel digital engagement. Factors such as the agency's size, target audience complexity, and the scope of services (e.g., global vs. domestic reach) influence pricing, but the $2.1M annual average suggests a reasonable market rate for a federal entity.

What are the primary risks associated with this firm fixed-price contract, and how were they mitigated?

The primary risk with a firm fixed-price (FFP) contract is that the contractor may cut corners on quality or scope to maintain profitability if costs exceed expectations. For the government, the risk is receiving substandard services. Mitigation strategies typically involve a well-defined Statement of Work (SOW) with clear deliverables and performance standards, rigorous oversight by the contracting officer's representative (COR), regular performance reviews, and potentially performance-based payment schedules. The Export-Import Bank likely ensured that the SOW was detailed and that they had mechanisms in place to monitor the quality and completeness of the digital marketing services provided throughout the contract's five-year duration.

What was the historical spending pattern for digital marketing services at the Export-Import Bank prior to this contract?

The provided data does not include historical spending patterns for digital marketing services at the Export-Import Bank. To assess this, one would need to analyze previous contract awards for similar services over preceding fiscal years. Understanding historical spending would help determine if this $10.59 million contract represents an increase, decrease, or stable investment in digital marketing capabilities. It would also provide context for the agency's evolving needs and priorities in digital outreach and communication. Without this historical data, it's challenging to place the current contract's value within a long-term budgetary trend.

How effective has Alexander & Tom, Inc. been in delivering similar digital marketing services to other federal agencies?

The provided data does not contain information on the past performance or track record of Alexander & Tom, Inc. in delivering digital marketing services to other federal agencies. Assessing contractor effectiveness typically involves reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), examining previous contract awards for similar scope and value, and looking for any documented successes or failures. Without this information, it is difficult to gauge the contractor's reliability and proven ability to meet federal requirements for digital marketing campaigns. Further research into federal procurement databases and performance records would be necessary.

Industry Classification

NAICS: Information › Motion Picture and Video Industries › Motion Picture and Video Production

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3500 BOSTON ST, BALTIMORE, MD, 21224

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,591,600

Exercised Options: $10,591,600

Current Obligation: $10,591,600

Actual Outlays: $6,960,281

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F0081Y

IDV Type: FSS

Timeline