HHS awards $115M for public education campaign, with youth focus, to True North Communications

Contract Overview

Contract Amount: $115,128,170 ($115.1M)

Contractor: True North Communications Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2014-07-22

End Date: 2016-12-30

Contract Duration: 892 days

Daily Burn Rate: $129.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF EXTENSION OF FULL AND OPEN PUBLIC EDUCATION CAMPAIGN - GENERAL MARKET YOUTH

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 $115.1 million to TRUE NORTH COMMUNICATIONS INC for work described as: IGF::OT::IGF EXTENSION OF FULL AND OPEN PUBLIC EDUCATION CAMPAIGN - GENERAL MARKET YOUTH Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract's duration of 892 days indicates a medium-term public health initiative. 3. Focus on youth public education suggests targeted outreach and potential for significant social impact. 4. The use of Time and Materials pricing may require close monitoring to control costs. 5. Awarded to a single vendor, True North Communications, highlighting the importance of their specialized capabilities. 6. The contract value of over $115 million signifies a substantial investment in public health messaging.

Value Assessment

Rating: fair

The contract value of $115,128,170.09 for advertising services appears substantial. Benchmarking against similar public health campaigns is difficult without more specific details on the scope of services and target audience reach. The Time and Materials (T&M) pricing structure, while flexible, can sometimes lead to cost overruns if not managed diligently. Without comparable contract data or a detailed cost breakdown, assessing the precise value-for-money is challenging, but the scale suggests a significant undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. The presence of a single award suggests that True North Communications was selected as the most advantageous offer based on the evaluation criteria. The level of competition, while initially broad, resulted in a single prime contractor, which is typical for specialized advertising campaigns.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. However, the ultimate cost-effectiveness depends on the execution and management of the contract.

Public Impact

The primary beneficiaries are the youth targeted by the public education campaign, who will receive information on important health or social issues. The services delivered include advertising and marketing strategies designed to effectively reach and engage the target demographic. The geographic impact is likely national, given the scale of the campaign and the federal agency involved, aiming for broad reach across the United States. Workforce implications may include employment opportunities within True North Communications and potentially subcontractors involved in campaign execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing structure.
Ensuring the campaign effectively reaches and resonates with the intended youth demographic requires careful monitoring.
Measuring the true impact and effectiveness of a public education campaign can be challenging.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The significant investment indicates a high priority placed on the public education initiative.
The focus on youth suggests a strategic effort to address specific public health needs within a key demographic.

Sector Analysis

This contract falls within the advertising and marketing services sector, specifically for public relations and outreach. The North American Industry Classification System (NAICS) code 541810, Advertising Agencies, confirms this. The federal government is a significant purchaser of these services to disseminate information, promote public health initiatives, and engage citizens. The $115 million award is substantial and reflects the scale of federal public awareness campaigns, often comparable to large-scale commercial advertising budgets.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct set-aside obligations for small businesses. However, True North Communications, as the prime contractor, may engage small businesses as subcontractors to fulfill certain aspects of the campaign, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Food and Drug Administration (FDA), a division of HHS. Mechanisms likely include contract officer representatives (CORs) monitoring performance, regular reporting requirements from the contractor, and adherence to the terms of the Time and Materials contract. Transparency is generally maintained through federal contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Public Health Campaigns
Health Communication
Advertising Services
Youth Outreach Programs
Federal Marketing Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Effectiveness of reaching and influencing the target youth demographic.
Measuring the long-term impact of public education campaigns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $115.1 million to TRUE NORTH COMMUNICATIONS INC. IGF::OT::IGF EXTENSION OF FULL AND OPEN PUBLIC EDUCATION CAMPAIGN - GENERAL MARKET YOUTH

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 $115.1 million.

What is the period of performance?

Start: 2014-07-22. End: 2016-12-30.

What specific public health issues or messages was this campaign intended to address?

The provided data does not specify the exact public health issues or messages the campaign was designed to address. However, the contract designation 'IGF EXTENSION OF FULL AND OPEN PUBLIC EDUCATION CAMPAIGN - GENERAL MARKET YOUTH' suggests a broad focus on educating the general youth population. Such campaigns often cover topics like disease prevention, healthy lifestyle choices, substance abuse awareness, mental health, or other critical public health concerns relevant to adolescents and young adults. Further investigation into HHS or FDA public records from the 2014-2016 period would be necessary to identify the precise subject matter.

How does the $115 million contract value compare to other federal advertising contracts for similar public education initiatives?

The $115 million contract value is substantial and indicates a significant federal investment in public education. Comparing it directly to other federal advertising contracts requires access to a comprehensive database of similar procurements, including their scope, duration, and target audience. However, large-scale public health campaigns, particularly those with national reach and targeting specific demographics like youth, often command budgets in the tens to hundreds of millions of dollars. This contract appears to be within the upper range for such initiatives, reflecting the importance and scale of the intended outreach.

What were the key performance indicators (KPIs) used to evaluate the success of this campaign?

The provided contract data does not detail the specific Key Performance Indicators (KPIs) established for this campaign. Typically, for public education campaigns, KPIs would focus on reach (e.g., number of impressions, website visits, social media engagement), message recall, changes in knowledge or attitudes among the target audience, and potentially behavioral outcomes if measurable within the contract period. The FDA, as the awarding agency, would have defined these metrics in the contract's statement of work to assess the effectiveness of True North Communications' efforts.

What is the track record of True North Communications in executing large-scale federal public health campaigns?

Information regarding True North Communications' specific track record in executing large-scale federal public health campaigns is not detailed in the provided data. While the award of this $115 million contract suggests they were deemed capable by the FDA, a comprehensive assessment would require reviewing their past performance on similar government contracts, client testimonials, and any available performance evaluations. Their ability to successfully manage complex media buys, creative development, and targeted outreach for a youth demographic would be critical factors.

What risks were identified during the procurement process, and how were they mitigated?

The provided data does not explicitly list risks identified during the procurement process for this contract. However, common risks associated with large advertising contracts include cost overruns (especially with Time and Materials), failure to reach the target audience effectively, reputational damage from poorly conceived messaging, and contractor performance issues. Given the 'full and open competition' award, it can be inferred that the FDA assessed proposals based on factors like technical approach, past performance, and price, aiming to mitigate these risks by selecting the most qualified and cost-effective offeror.

How has federal spending on advertising and public education campaigns evolved since this contract was awarded?

Federal spending on advertising and public education campaigns has generally continued, adapting to new media landscapes and evolving public health priorities. Since the 2014-2016 period of this contract, there has been an increased emphasis on digital and social media outreach, data analytics for targeted messaging, and rapid response campaigns, particularly evident during public health emergencies like the COVID-19 pandemic. Budgets for these initiatives fluctuate based on agency priorities, congressional appropriations, and national needs, but the fundamental role of federal agencies in public communication remains consistent.

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: 1

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: $115,128,170

Exercised Options: $115,128,170

Current Obligation: $115,128,170

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSF223201210039I

IDV Type: IDC

Timeline