Commerce Dept. spent $24M on a 2010 Census communications campaign by True North Communications

Contract Overview

Contract Amount: $24,004,996 ($24.0M)

Contractor: True North Communications Inc

Awarding Agency: Department of Commerce

Start Date: 2008-10-01

End Date: 2009-09-30

Contract Duration: 364 days

Daily Burn Rate: $65.9K/day

Number of Offers Received: 1

Pricing Type: FIXED PRICE AWARD FEE

Sector: Other

Official Description: PROGRAM MANAGEMENT (TO 11)/ 2010 COMMUNICATIONS CAMPAIGN

Place of Performance

Location: DISTRICT HEIGHTS, PRINCE GEORGE'S County, MARYLAND, 20747

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $24.0 million to TRUE NORTH COMMUNICATIONS INC for work described as: PROGRAM MANAGEMENT (TO 11)/ 2010 COMMUNICATIONS CAMPAIGN Key points: 1. The contract aimed to support the 2010 Census communications campaign. 2. Awarded in 2008, the contract duration was one year. 3. The contract type was Fixed Price Award Fee. 4. The contractor, True North Communications Inc., received the award. 5. The contract was awarded to a single vendor. 6. The total value of the contract was approximately $24 million.

Value Assessment

Rating: fair

The contract value of $24 million for a one-year communications campaign for the U.S. Census Bureau appears to be within a reasonable range for a large-scale federal initiative. Benchmarking against similar large-scale public awareness campaigns would be necessary for a more precise value-for-money assessment. The fixed-price award fee structure suggests an incentive for performance, but the specific metrics for the award fee are not detailed here.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances necessitate a rapid award. Without a competitive bidding process, it is difficult to ascertain if the government received the best possible pricing or if alternative solutions were considered.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the absence of competition may reduce price pressure on the contractor.

Public Impact

The primary beneficiaries of this contract were the U.S. Census Bureau and the public, through increased awareness of the 2010 Census. The services delivered involved a communications campaign, likely encompassing advertising, public relations, and outreach efforts. The geographic impact would have been nationwide, targeting all households in the United States. Workforce implications could include jobs in advertising, media, and communications, both within the contractor's organization and supporting industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and limited innovation.
The sole-source nature of the award prevents comparison with other potential vendors.
Performance metrics for the award fee component are not specified, making it hard to assess true value.
The specific deliverables and their effectiveness are not detailed in the provided data.

Positive Signals

The contract supported a critical national initiative, the 2010 Census, which is vital for representation and resource allocation.
The use of a communications campaign suggests a strategic approach to public engagement.
The fixed-price award fee structure, if well-defined, can incentivize contractor performance.
The contractor, True North Communications Inc., was selected, implying they met certain qualifications for the task.

Sector Analysis

The advertising and public relations sector is a significant market for government services. Federal agencies frequently contract for communications campaigns to inform the public about various programs and initiatives. The U.S. Census Bureau, in particular, relies heavily on public outreach to ensure accurate data collection. Spending in this sector can vary widely depending on the scale and duration of the campaigns. Comparable spending benchmarks would involve looking at other large federal public awareness initiatives.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. As a sole-source award, it is unlikely that subcontracting opportunities for small businesses were a primary consideration in the award process itself, though the prime contractor may have utilized small businesses in their execution of the campaign.

Oversight & Accountability

Oversight for this contract would have been managed by the U.S. Census Bureau. Accountability measures would be tied to the terms of the Fixed Price Award Fee contract, including the achievement of specific performance objectives that trigger award fees. Transparency is limited by the sole-source nature and the lack of detailed performance reporting in the provided data.

Related Government Programs

U.S. Census Bureau Operations
Federal Communications Campaigns
Government Advertising Contracts

Risk Flags

Sole-source award limits competition and price discovery.
Lack of detailed performance metrics hinders value assessment.
Potential for higher costs due to absence of competitive bidding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $24.0 million to TRUE NORTH COMMUNICATIONS INC. PROGRAM MANAGEMENT (TO 11)/ 2010 COMMUNICATIONS CAMPAIGN

Who is the contractor on this award?

The obligated recipient is TRUE NORTH COMMUNICATIONS INC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Census Bureau).

What is the total obligated amount?

The obligated amount is $24.0 million.

What is the period of performance?

Start: 2008-10-01. End: 2009-09-30.

What specific services did True North Communications Inc. provide under this contract?

The provided data indicates that True North Communications Inc. was contracted for a 'COMMUNICATIONS CAMPAIGN' to support the 'PROGRAM MANAGEMENT (TO 11)/ 2010 COMMUNICATIONS CAMPAIGN'. While the exact nature of the services is not detailed, it would typically encompass strategic planning, media buying, creative development (e.g., advertisements, public service announcements), public relations activities, and outreach efforts designed to inform the public about the importance and process of participating in the 2010 Census. This could include digital advertising, traditional media placements, community engagement events, and informational materials.

How does the $24 million cost compare to similar federal communications campaigns?

Directly comparing the $24 million cost to similar federal communications campaigns requires access to detailed spending data for comparable initiatives. However, for a nationwide campaign supporting a critical event like the decennial census, this figure is not inherently excessive. For context, other large federal campaigns, such as those for public health awareness (e.g., anti-smoking, vaccination drives) or national security initiatives, can also run into tens or hundreds of millions of dollars over their lifecycles. The effectiveness and efficiency of this specific campaign would depend on factors like reach, engagement rates, and ultimately, its contribution to census participation, which are not detailed in the provided data.

What were the risks associated with awarding this contract on a sole-source basis?

The primary risk associated with a sole-source award is the potential lack of robust price competition, which could lead to the government paying a higher price than if the contract had been competed. There's also a risk that the chosen contractor may not be the most innovative or best-suited vendor available, as alternatives were not formally evaluated. Furthermore, without a competitive process, it can be harder to benchmark performance and ensure the government is receiving optimal value. Transparency is also reduced, making it more challenging for oversight bodies and the public to scrutinize the procurement decision and its outcomes.

What does the 'Fixed Price Award Fee' contract type imply about performance expectations?

A 'Fixed Price Award Fee' (FPAF) contract combines elements of fixed-price and cost-plus-award-fee contracts. The 'Fixed Price' component means the contractor is obligated to perform the work for a predetermined price. The 'Award Fee' component allows the government to pay the contractor an additional amount, above the base fixed price, based on its subjective evaluation of the contractor's performance against pre-defined criteria. This structure incentivizes the contractor to exceed minimum performance standards to earn the award fee, while the government retains control over the amount of the award fee based on its assessment. The effectiveness hinges on clearly defined and measurable performance criteria.

What is the historical spending context for communications campaigns by the U.S. Census Bureau?

The U.S. Census Bureau has a long history of conducting decennial censuses, and each census requires significant investment in public outreach and communications to ensure participation. Historical spending on census communications campaigns has generally been substantial, reflecting the scale and importance of the undertaking. For instance, the 2000 Census also involved extensive advertising and outreach efforts. The $24 million allocated for the 2010 campaign should be viewed within this context of recurring, large-scale federal communication needs tied to constitutional mandates. Analyzing spending across multiple census cycles would reveal trends and potential efficiencies or cost escalations over time.

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

Contractor Details

Parent Company: THE Interpublic Group of Companies Inc (UEI: 006985790)

Address: 100 W 33RD ST, NEW YORK, NY, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,194,350

Exercised Options: $24,194,350

Current Obligation: $24,004,996

Parent Contract

Parent Award PIID: DOCYA132307CQ0004

IDV Type: IDC

Timeline