HHS FDA Awards $115M for Youth Tobacco Use Reduction Campaigns to True North Communications

Contract Overview

Contract Amount: $115,191,123 ($115.2M)

Contractor: True North Communications Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2012-12-20

End Date: 2015-04-18

Contract Duration: 849 days

Daily Burn Rate: $135.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF NATIONAL PUBLIC EDUCATION SUPPORT SERVICES TASK ORDER 2: CAMPAIGNS TO REDUCE TOBACCO USE AMONG YOUTH AGED 12-17

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 $115.2 million to TRUE NORTH COMMUNICATIONS INC for work described as: IGF::OT::IGF NATIONAL PUBLIC EDUCATION SUPPORT SERVICES TASK ORDER 2: CAMPAIGNS TO REDUCE TOBACCO USE AMONG YOUTH AGED 12-17 Key points: 1. Significant contract value for a public health campaign. 2. Competition was full and open, indicating market engagement. 3. Risk is moderate, focusing on campaign effectiveness and reach. 4. Sector is advertising and public health, with potential for broad impact.

Value Assessment

Rating: good

The contract value of $115M over approximately 2.3 years is substantial for a public health advertising campaign. Benchmarking against similar large-scale public health initiatives would be necessary for a precise pricing assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust process for selecting the most capable vendor. This method generally promotes competitive pricing and ensures access to a wide range of advertising expertise.

Taxpayer Impact: Taxpayer funds are being used for a campaign aimed at reducing youth tobacco use, a public health priority. The effectiveness of the campaign will determine the ultimate return on investment.

Public Impact

Aims to impact a vulnerable demographic (youth aged 12-17) regarding tobacco use. Campaign messaging and reach are critical for achieving public health goals. Success could lead to long-term healthcare cost savings. Potential for significant media and public engagement.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Effectiveness measurement of public health campaigns can be challenging.
Ensuring sustained engagement with the target demographic.

Positive Signals

Addresses a critical public health issue.
Utilizes a competitive procurement process.
Significant investment in a potentially high-impact area.

Sector Analysis

This contract falls within the advertising and marketing services sector, specifically applied to public health initiatives. Spending benchmarks for large-scale, multi-year public health campaigns can vary widely based on scope and media channels.

Small Business Impact

The data indicates this was a large contract awarded to a single entity, True North Communications Inc. There is no explicit information provided regarding small business participation or subcontracting opportunities within this award.

Oversight & Accountability

Oversight would typically involve the Department of Health and Human Services and the Food and Drug Administration monitoring campaign progress, expenditures, and effectiveness. Accountability rests on achieving the stated public health objectives within budget.

Related Government Programs

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

Risk Flags

Contract type (T&M) may lead to cost overruns.
Measuring direct impact of advertising on behavior is complex.
Ensuring sustained engagement with youth audience.
Potential for campaign fatigue or message dilution over time.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $115.2 million to TRUE NORTH COMMUNICATIONS INC. IGF::OT::IGF NATIONAL PUBLIC EDUCATION SUPPORT SERVICES TASK ORDER 2: CAMPAIGNS TO REDUCE TOBACCO USE AMONG YOUTH AGED 12-17

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 $115.2 million.

What is the period of performance?

Start: 2012-12-20. End: 2015-04-18.

What specific metrics are used to measure the success of the tobacco use reduction campaigns?

Success metrics likely include reductions in reported tobacco use among the target demographic (12-17 year olds), changes in attitudes towards tobacco, increased awareness of cessation resources, and potentially shifts in social norms. The FDA would establish specific KPIs, possibly tracking campaign reach, engagement rates, and pre/post campaign surveys.

What are the primary risks associated with a large-scale public health advertising campaign of this nature?

Key risks include campaign ineffectiveness due to poor messaging or targeting, insufficient reach to impact the desired demographic, potential for public backlash or misinterpretation of campaign content, and challenges in attributing behavioral changes solely to the campaign. Budget overruns or scope creep are also potential risks.

How does the 'Time and Materials' contract type impact cost control and value for taxpayer money?

Time and Materials (T&M) contracts can pose a risk to cost control as they are not fixed-price. While offering flexibility, they rely heavily on accurate labor hour estimates and efficient work execution. Robust oversight is crucial to ensure fair pricing and prevent potential cost escalation compared to fixed-price or cost-plus contracts.

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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

Address: 100 W 33RD ST, 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: $115,191,123

Exercised Options: $115,191,123

Current Obligation: $115,191,123

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSF223201210039I

IDV Type: IDC

Timeline