HHS awards $569M for national tobacco education campaign, highlighting advertising agency's role
Contract Overview
Contract Amount: $569,417,940 ($569.4M)
Contractor: True North Communications Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2017-04-06
End Date: 2023-04-09
Contract Duration: 2,194 days
Daily Burn Rate: $259.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CT::IGF CENTER FOR TOBACCO PRODUCT'S NATIONAL EDUCATION CAMPAIGN PROGRAM
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 $569.4 million to TRUE NORTH COMMUNICATIONS INC for work described as: IGF::CT::IGF CENTER FOR TOBACCO PRODUCT'S NATIONAL EDUCATION CAMPAIGN PROGRAM Key points: 1. Contract value represents significant investment in public health messaging. 2. Full and open competition suggests a robust bidding process. 3. Firm fixed-price contract type offers cost certainty for the government. 4. Long contract duration indicates a sustained effort in public health communication. 5. The contract is positioned within the health communication and advertising sector. 6. Potential for high impact on public health outcomes through targeted campaigns.
Value Assessment
Rating: good
The contract value of $569 million over approximately six years is substantial for a national public health campaign. Benchmarking against similar large-scale advertising contracts for public health initiatives would be necessary for a precise value-for-money assessment. However, the firm fixed-price nature provides cost predictability. The scale of the campaign suggests a significant investment in reaching a broad audience.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. With two bids received, the competition level appears moderate. While more bidders could potentially drive prices lower, two bids suggest that the market has at least some capacity and interest in undertaking such a large-scale public health campaign.
Taxpayer Impact: A competitive bidding process, even with two bidders, is generally favorable for taxpayers as it encourages vendors to offer their best pricing and terms to secure the contract.
Public Impact
The primary beneficiaries are the public, through increased awareness and education regarding tobacco products. Services delivered include the development and execution of a national education campaign. The geographic impact is national, aiming to reach diverse populations across the United States. Workforce implications include jobs in advertising, media, public health, and research.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep given the long duration and evolving public health landscape.
- Measuring the direct impact and ROI of a national education campaign can be challenging.
- Reliance on a single contractor for a significant period may limit innovation from other sources.
Positive Signals
- Firm fixed-price contract provides budget certainty.
- Full and open competition suggests a fair market approach.
- The contract addresses a critical public health issue.
- Long-term engagement allows for sustained messaging and impact.
Sector Analysis
This contract falls within the advertising and public relations sector, specifically focusing on public health campaigns. The market for large-scale government advertising contracts is competitive, with specialized agencies often bidding. The $569 million awarded represents a significant portion of federal spending on health communication initiatives, underscoring the importance placed on tobacco cessation and prevention efforts.
Small Business Impact
The contract was not set aside for small businesses, and there is no explicit information provided regarding subcontracting plans for small businesses. Given the scale and nature of the work, it is possible that the prime contractor may engage small businesses for specialized services, but this is not guaranteed by the contract terms as presented.
Oversight & Accountability
Oversight is likely managed by the Food and Drug Administration (FDA) within HHS. Accountability measures would be tied to performance metrics outlined in the contract, such as campaign reach, engagement, and reported public health outcomes. Transparency is generally maintained through contract award databases and public reporting requirements for federal spending.
Related Government Programs
- National Tobacco Prevention and Control Program
- CDC Health Communication Initiatives
- Public Health Service Act Programs
Risk Flags
- Long contract duration may pose risks of outdated strategies.
- Measuring direct behavioral impact of large campaigns can be complex.
Tags
health-and-human-services, food-and-drug-administration, advertising, public-health, national-campaign, firm-fixed-price, full-and-open-competition, definitive-contract, new-york, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $569.4 million to TRUE NORTH COMMUNICATIONS INC. IGF::CT::IGF CENTER FOR TOBACCO PRODUCT'S NATIONAL EDUCATION CAMPAIGN PROGRAM
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 $569.4 million.
What is the period of performance?
Start: 2017-04-06. End: 2023-04-09.
What is the track record of True North Communications Inc. in managing large-scale federal public health campaigns?
Information regarding True North Communications Inc.'s specific track record with large-scale federal public health campaigns is not detailed in the provided data. However, securing a $569 million contract from the Department of Health and Human Services (HHS) for the FDA's National Education Campaign Program suggests a demonstrated capability to handle significant government contracts. Further investigation into their past performance, client testimonials, and previous federal awards would be necessary to fully assess their expertise in this specialized area. Their ability to successfully execute a campaign of this magnitude over a six-year period would be a key indicator of their competence.
How does the $569 million contract value compare to similar federal investments in public health advertising?
The $569 million awarded to True North Communications Inc. for the FDA's National Education Campaign Program is a substantial figure, indicative of a significant federal investment in tobacco product's public health messaging. To benchmark this value, one would compare it to other large-scale federal health communication initiatives, such as campaigns by the CDC for HIV/AIDS prevention, anti-obesity efforts, or opioid crisis awareness. The duration of the contract (approximately six years) also influences the annual spending, which would need to be considered in comparisons. Without specific data on comparable contracts, it's difficult to definitively state if this represents high or low value, but the scale suggests a high priority for tobacco control.
What are the primary risks associated with a six-year firm fixed-price contract for a national health campaign?
A primary risk with a long-term, firm fixed-price contract for a national health campaign is the potential for the contractor to become complacent or for the campaign's messaging to become outdated, given the evolving nature of public health issues and communication strategies. The fixed-price nature, while offering cost certainty, could also disincentivize the contractor from innovating or adapting the campaign proactively if not managed with strong performance metrics and oversight. Furthermore, unforeseen changes in public health landscapes or scientific understanding could render aspects of the campaign less effective, but the fixed price might limit the government's ability to easily pivot without incurring additional costs or renegotiating terms. Ensuring robust performance metrics and regular reviews is crucial to mitigate these risks.
How effective are national education campaigns in changing public behavior regarding tobacco use?
National education campaigns have historically shown varying degrees of effectiveness in changing public behavior regarding tobacco use. Evidence suggests that well-designed, sustained campaigns, particularly those that combine mass media with community-level interventions, can contribute to reduced smoking rates and increased cessation attempts. The FDA's campaigns, for instance, aim to educate youth about the dangers of tobacco and vaping, and to encourage adult smokers to quit. The success of such campaigns is often measured through shifts in public knowledge, attitudes, and ultimately, self-reported behavior changes, alongside broader public health statistics on tobacco consumption. The long duration and significant funding of this contract suggest an expectation of measurable impact.
What is the historical spending pattern for the FDA's tobacco product education efforts?
The provided data focuses on a single, large contract awarded in 2017. To understand historical spending patterns for the FDA's tobacco product education efforts, one would need to examine spending across multiple fiscal years and potentially multiple contracts or task orders related to tobacco education. This would involve looking at budget allocations for the FDA's Center for Tobacco Products and tracking expenditures on public education campaigns over time. The $569 million awarded here represents a significant, multi-year investment, suggesting a sustained commitment to this area, but a comprehensive view would require analyzing a broader dataset of FDA's public health communication expenditures.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Advertising, Public Relations, and Related Services › Advertising Agencies
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FDA17SOL8766
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Interpublic Group of Companies Inc
Address: 100 W 33RD ST 5TH FLOOR, 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: $709,028,936
Exercised Options: $709,028,936
Current Obligation: $569,417,940
Actual Outlays: $70,814,166
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2017-04-06
Current End Date: 2023-04-09
Potential End Date: 2023-04-09 00:00:00
Last Modified: 2022-12-12
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