HHS awarded $36.3M for advertising services to Elevation, Ltd. over 3 years

Contract Overview

Contract Amount: $36,302,652 ($36.3M)

Contractor: Elevation, Ltd.

Awarding Agency: Department of Health and Human Services

Start Date: 2014-08-19

End Date: 2017-08-17

Contract Duration: 1,094 days

Daily Burn Rate: $33.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $36.3 million to ELEVATION, LTD. for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS Key points: 1. Value for money appears fair given the duration and scope of advertising services. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a Time and Materials contract type potentially leading to cost overruns if not managed closely. 4. Performance context is limited without specific details on campaign success or reach. 5. Sector positioning places this contract within the broader advertising and marketing services for government agencies.

Value Assessment

Rating: fair

The contract value of $36.3 million over three years averages to approximately $12.1 million annually. Benchmarking this against similar large-scale federal advertising contracts is challenging without more specific service details. However, the Time and Materials pricing structure warrants close monitoring to ensure costs remain aligned with the value delivered and market rates for advertising services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally expected to drive better pricing and service offerings. The presence of two bidders, as indicated by the data, suggests a reasonable level of competition, though more bidders could potentially yield even more competitive outcomes.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it increases the likelihood of obtaining services at a competitive market price, preventing potential overpayment.

Public Impact

Beneficiaries include the Department of Health and Human Services and the public through awareness campaigns. Services delivered encompass advertising and marketing strategies to promote public health initiatives and government programs. Geographic impact is national, as federal advertising campaigns typically aim for broad reach. Workforce implications may include support for advertising agencies and related creative industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost escalation if not carefully managed.
Lack of specific performance metrics makes it difficult to assess the effectiveness of the advertising campaigns.
Limited competition with only two bidders could mean less aggressive pricing than a more crowded field.

Positive Signals

Awarded through full and open competition, ensuring a fair process.
Contract duration of three years allows for consistent campaign execution and relationship building.
The contractor, Elevation, Ltd., was selected, implying they met the government's requirements.

Sector Analysis

This contract falls within the professional services sector, specifically advertising and public relations. The federal government is a significant consumer of these services to communicate with citizens about health, safety, and other public interest matters. The market for federal advertising is competitive, with numerous agencies vying for government contracts. Benchmarking this spending against other federal agencies' advertising budgets would provide further context on its scale.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this data snippet, which could be an area for further investigation to understand the broader economic impact.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services' contracting officers and program managers. The Centers for Medicare and Medicaid Services (CMS) would likely be involved in monitoring performance and expenditures. Transparency is generally maintained through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Public Health Campaigns
Government Advertising Services
Health Communication Contracts
Marketing and Public Relations Services

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Lack of specific performance metrics makes effectiveness assessment difficult.
Limited number of bidders in a full and open competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $36.3 million to ELEVATION, LTD.. IGF::OT::IGF FOR OTHER FUNCTIONS

Who is the contractor on this award?

The obligated recipient is ELEVATION, LTD..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $36.3 million.

What is the period of performance?

Start: 2014-08-19. End: 2017-08-17.

What specific advertising services were provided under this contract?

The provided data indicates the contract was for 'Advertising Agencies' (NAICS code 541810) and awarded to ELEVATION, LTD. While the specific services are not detailed, this typically encompasses strategic planning, creative development (copywriting, graphic design, video production), media buying and placement across various channels (digital, print, broadcast), campaign management, and performance analysis. For the Department of Health and Human Services (HHS), these services would likely be geared towards promoting public health initiatives, disseminating information about healthcare programs like Medicare and Medicaid, and encouraging healthy behaviors among the population.

How does the $36.3 million contract value compare to similar federal advertising contracts?

Comparing the $36.3 million contract value requires context on the scope and duration. This contract spanned three years (2014-2017), averaging over $12 million annually. Federal advertising contracts can vary significantly. For instance, large-scale campaigns for national health observances or major program rollouts by agencies like HHS, CDC, or FDA can reach tens of millions of dollars over several years. Smaller, more targeted campaigns or those for less prominent initiatives would naturally be valued lower. Without knowing the specific objectives and reach of Elevation, Ltd.'s campaigns for HHS, a precise benchmark is difficult, but the value appears substantial, suggesting a significant scope of work.

What are the potential risks associated with the Time and Materials (T&M) contract type used here?

The Time and Materials (T&M) contract type, used in this award, carries inherent risks for the government. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fixed fee or percentage for profit. The primary risk is cost escalation; if the contractor's labor hours or material costs increase unexpectedly, the total contract cost can exceed initial estimates. This necessitates robust government oversight to ensure that the hours charged are reasonable and directly related to the work performed, and that material costs are fair. Without diligent monitoring, T&M contracts can become significantly more expensive than anticipated.

What was the track record of Elevation, Ltd. prior to or during this contract?

The provided data snippet does not include information on Elevation, Ltd.'s prior track record or performance during this specific contract period (2014-2017). To assess their track record, one would need to consult contract performance reports (if available), past performance databases, or reviews from previous government clients. Factors to consider would include their history of meeting deadlines, staying within budget, delivering quality services, and any past performance issues or commendations. Without this external data, an assessment of their specific track record remains incomplete based solely on the award details.

How effective were the advertising campaigns executed under this contract in achieving HHS's goals?

The provided data does not contain information regarding the effectiveness of the advertising campaigns executed under this contract. Assessing effectiveness would require access to campaign performance metrics, such as reach, engagement rates, message recall, changes in public behavior or awareness related to the promoted initiatives, and return on investment (ROI). These metrics are typically documented in post-campaign analysis reports submitted by the contractor and reviewed by the agency. Without such reports or publicly available evaluations of HHS's advertising efforts during the 2014-2017 period, the effectiveness cannot be determined from the award data alone.

What is the historical spending trend for advertising services by HHS or CMS?

The provided data only details a single contract award from 2014-2017. To understand historical spending trends for advertising services by HHS or CMS, a broader analysis of contract data over multiple fiscal years would be necessary. This would involve querying federal procurement databases (like FPDS or USASpending.gov) for all contracts awarded under relevant NAICS codes (e.g., 541810 for Advertising Agencies) to HHS and its sub-agencies like CMS. Analyzing this data would reveal patterns in annual spending, identify major contractors, and show fluctuations in demand for these services over time, potentially influenced by administration priorities or public health needs.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1027 33RD ST NW STE 260, WASHINGTON, DC, 20007

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $51,619,701

Exercised Options: $36,302,652

Current Obligation: $36,302,652

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS07F0406T

IDV Type: FSS

Timeline