HHS FDA Awards $42M for Tobacco Point-of-Sale Education Campaign to True North Communications

Contract Overview

Contract Amount: $41,986,078 ($42.0M)

Contractor: True North Communications Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2013-08-29

End Date: 2020-04-30

Contract Duration: 2,436 days

Daily Burn Rate: $17.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::CT::IGF CTP NATIONAL PUBLIC EDUCATION SUPPORT SERVICES TASK ORDER #3: EDUCATION CAMPAIGN AT TOBACCO POINT OF SALE

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 $42.0 million to TRUE NORTH COMMUNICATIONS INC for work described as: IGF::CT::IGF CTP NATIONAL PUBLIC EDUCATION SUPPORT SERVICES TASK ORDER #3: EDUCATION CAMPAIGN AT TOBACCO POINT OF SALE Key points: 1. Significant contract value of $41.9M for a national public education campaign. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Contract duration spans over 6 years, indicating a long-term public health initiative. 4. Focus on advertising agencies (NAICS 541810) highlights the role of marketing in public health.

Value Assessment

Rating: fair

The contract value of $41.9M for a 6-year campaign is substantial. Benchmarking against similar large-scale public health advertising campaigns would be necessary to fully assess value, but the duration and scope suggest a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can lead to more competitive pricing. The specific pricing mechanisms (Time and Materials) and the number of offers received would further inform the price discovery assessment.

Taxpayer Impact: The use of taxpayer funds for a national public education campaign aims to improve public health outcomes, potentially reducing long-term healthcare costs associated with tobacco use.

Public Impact

National scope of the education campaign targets a broad audience across the US. Focus on tobacco point-of-sale aims to influence consumer behavior at a critical decision point. Long contract duration suggests a sustained effort to combat tobacco use. Potential impact on public health outcomes related to smoking and tobacco consumption.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
Long contract duration may not adapt well to evolving public health strategies or market dynamics.
Effectiveness of advertising campaigns can be difficult to measure definitively.

Positive Signals

Full and open competition suggests a robust and fair procurement process.
Focus on a critical public health issue like tobacco use.
National reach of the campaign.

Sector Analysis

The advertising and public relations sector (NAICS 541810) is crucial for disseminating public health messages. A $42M contract for a national campaign represents a significant investment within this sector, likely benchmarked against other large federal advertising initiatives.

Small Business Impact

The contract was awarded to True North Communications Inc. and there is no indication that small businesses were specifically involved as subcontractors or partners in this award. Further analysis would be needed to determine any small business participation.

Oversight & Accountability

The Food and Drug Administration (FDA) is responsible for overseeing this contract. Standard government oversight mechanisms for contract performance, financial management, and adherence to campaign objectives would be in place.

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 contract.
Risk of campaign becoming outdated over a long contract duration.
Difficulty in definitively measuring the ROI of public health advertising.
Lack of explicit mention of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $42.0 million to TRUE NORTH COMMUNICATIONS INC. IGF::CT::IGF CTP NATIONAL PUBLIC EDUCATION SUPPORT SERVICES TASK ORDER #3: EDUCATION CAMPAIGN AT TOBACCO POINT OF SALE

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 $42.0 million.

What is the period of performance?

Start: 2013-08-29. End: 2020-04-30.

What specific metrics were used to define the success of the education campaign, and how were these measured throughout the contract period?

The success of the education campaign would ideally be measured through a combination of metrics such as changes in public awareness, attitudes towards tobacco use, reported behavioral intentions, and ultimately, reductions in smoking rates or tobacco product sales in targeted demographics. Pre- and post-campaign surveys, focus groups, and analysis of sales data could be employed. Regular reporting by the contractor and independent evaluations by the agency would be crucial for tracking progress and making necessary adjustments.

Given the Time and Materials contract type, what controls were in place to manage costs and prevent scope creep over the 6-year duration?

With a Time and Materials (T&M) contract, robust oversight is critical. Controls would typically include detailed labor hour tracking, pre-approved hourly rates, strict limitations on material purchases, and a defined ceiling amount that cannot be exceeded without modification. Regular reviews of contractor expenditures, milestone tracking, and clear communication channels between the agency and the contractor are essential to manage costs and prevent unauthorized expansion of the project's scope.

How did the FDA ensure the advertising campaign remained relevant and effective given the evolving landscape of public health messaging and media consumption over a 6-year period?

Maintaining relevance over a 6-year period requires adaptive strategies. The FDA likely incorporated mechanisms for periodic review and potential modification of campaign messaging and channels based on emerging research, public health trends, and shifts in media consumption. This could involve phased approaches, pilot testing of new strategies, and flexibility in the contract to allow for adjustments to reach target audiences effectively through various platforms, including digital and social media.

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: $41,986,078

Exercised Options: $41,986,078

Current Obligation: $41,986,078

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSF223201210039I

IDV Type: IDC

Timeline