HHS Awards $83.7M for Advertising Services to IPG DXTRA, Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $83,731,922 ($83.7M)

Contractor: IPG Dxtra, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2013-04-12

End Date: 2014-07-31

Contract Duration: 475 days

Daily Burn Rate: $176.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

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 $83.7 million to IPG DXTRA, INC. for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS Key points: 1. Significant contract value of $83.7 million for advertising services. 2. IPG DXTRA, Inc. secured the contract through full and open competition. 3. The contract spans over a year, indicating ongoing service needs. 4. Potential for high impact on public health messaging and outreach.

Value Assessment

Rating: good

The contract value of $83.7 million appears reasonable for comprehensive advertising services over the contract period. Benchmarking against similar large-scale advertising contracts would provide further context on pricing efficiency.

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 soliciting bids and ensuring fair market pricing. This method typically leads to competitive pricing and a wider selection of qualified vendors.

Taxpayer Impact: The use of taxpayer funds for advertising services necessitates efficient spending to maximize the impact of public health campaigns and information dissemination.

Public Impact

Public health campaigns may be significantly influenced by the advertising strategies employed. Taxpayer funds are being utilized for marketing and communication efforts by a federal agency. The effectiveness of these advertising services will directly impact public awareness and engagement with health initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs.
Effectiveness of advertising campaigns is difficult to measure precisely.
Reliance on a single vendor for critical communication.

Positive Signals

Awarded through full and open competition.
Clear contract duration and delivery order structure.
Services provided by a specialized advertising agency.

Sector Analysis

The advertising industry is dynamic, with significant spending allocated to reach target audiences effectively. Benchmarks for government advertising contracts vary widely based on scope, duration, and specific media channels utilized.

Small Business Impact

The contract was awarded to IPG DXTRA, Inc., and there is no indication of small business participation in this specific award. Future contracts could explore opportunities for small business set-asides within advertising services.

Oversight & Accountability

Oversight would focus on ensuring the advertising campaigns meet their objectives, adhere to ethical standards, and are cost-effective. Performance metrics and regular reporting are crucial for accountability.

Related Government Programs

Advertising Agencies
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Difficulty in quantifying the direct impact of advertising on public health outcomes.
Lack of explicit small business participation.
Long-term contract duration may not adapt to rapidly changing public health needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $83.7 million to IPG DXTRA, INC.. IGF::OT::IGF FOR OTHER FUNCTIONS

Who is the contractor on this award?

The obligated recipient is IPG DXTRA, INC..

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 $83.7 million.

What is the period of performance?

Start: 2013-04-12. End: 2014-07-31.

What specific public health objectives are these advertising services intended to achieve, and how will their success be measured?

The advertising services are likely aimed at promoting public health initiatives, raising awareness about diseases, encouraging preventative behaviors, or disseminating critical health information. Success measurement would involve tracking campaign reach, engagement metrics, shifts in public knowledge or behavior, and potentially health outcome improvements where applicable. Clear KPIs tied to agency goals are essential.

How does the pricing structure (Time and Materials) compare to fixed-price contracts for similar advertising services, and what are the associated risks?

Time and Materials (T&M) contracts offer flexibility but can lead to higher costs if not managed closely, as they are based on actual labor hours and material costs. Fixed-price contracts provide cost certainty but may lack flexibility. For advertising, T&M can be suitable for evolving campaigns, but requires stringent oversight to prevent scope creep and ensure value for taxpayer money.

What is the anticipated return on investment (ROI) for this $83.7 million advertising expenditure in terms of public health outcomes?

Calculating a direct ROI for public health advertising is complex, as outcomes like disease prevention or improved health behaviors are long-term and influenced by many factors. The ROI would be assessed by comparing the cost against metrics like increased screening rates, vaccination uptake, reduced incidence of specific health issues, or improved public understanding of health guidelines. The agency's evaluation framework is key.

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

Solicitation ID: RFPCMS20110012

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Interpublic Group of Companies Inc

Address: 919 3RD AVE FL 15, NEW YORK, NY, 10022

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $83,731,922

Exercised Options: $83,731,922

Current Obligation: $83,731,922

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201100029I

IDV Type: IDC

Timeline