HHS awarded $39.5M for public education and outreach, with IPG Dxtra Inc. as the primary contractor

Contract Overview

Contract Amount: $39,464,274 ($39.5M)

Contractor: IPG Dxtra, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2015-07-01

End Date: 2016-07-29

Contract Duration: 394 days

Daily Burn Rate: $100.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF HEALTH INSURANCE EXCHANGE PUBLIC EDUCATION AND OUTREACH

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $39.5 million to IPG DXTRA, INC. for work described as: IGF::OT::IGF HEALTH INSURANCE EXCHANGE PUBLIC EDUCATION AND OUTREACH Key points: 1. The contract value represents a significant investment in public health communication. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and performance history. 4. Performance context is provided by comparing this award to similar public outreach initiatives. 5. The contract positions the agency within the broader health information dissemination sector.

Value Assessment

Rating: fair

The total award of $39.5 million over approximately one year for advertising and outreach services appears to be within a reasonable range for large-scale public health campaigns. However, without specific deliverables and performance metrics, a precise value-for-money assessment is challenging. Benchmarking against similar federal contracts for public education campaigns would provide a clearer picture of cost-effectiveness. The time-and-materials pricing structure, while flexible, can sometimes lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of three bids suggests a moderate level of competition. While full and open competition is generally preferred for ensuring fair pricing and access to a wide range of capabilities, the specific number of bidders can influence the intensity of that competition and its impact on price discovery.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially leading to cost savings for the government.

Public Impact

The primary beneficiaries are the public, who receive information on health insurance exchange programs. Services delivered include advertising, public relations, and outreach campaigns. The geographic impact is national, aiming to reach a broad audience across the United States. Workforce implications are primarily related to the contractor's staff executing the campaign, with potential indirect impacts on public health awareness and engagement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in time-and-materials contracts if not closely monitored.
Ensuring consistent messaging and brand integrity across diverse outreach channels.
Measuring the actual impact and effectiveness of public education campaigns can be difficult.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Contract aims to address a critical public need for health insurance information.
Contractor has experience in advertising and public relations, relevant to the scope.

Sector Analysis

This contract falls within the advertising and public relations sector, specifically serving the government's need for health information dissemination. The market for government public health campaigns is substantial, often involving large agencies and significant budgets to reach national audiences. Comparable spending benchmarks would involve looking at other large-scale federal or state-level public awareness initiatives, such as those for public health crises, open enrollment periods, or social welfare programs.

Small Business Impact

There is no indication that this contract included specific small business set-asides. Given the large contract value and the nature of the services (large-scale advertising and outreach), it is likely that the prime contractor, IPG DXTRA, Inc., is a large business. Subcontracting opportunities for small businesses may exist within specific components of the campaign, such as media placement, creative services, or regional outreach, but this is not explicitly detailed in the award information.

Oversight & Accountability

Oversight for this contract would typically reside with the Centers for Medicare and Medicaid Services (CMS), a division of HHS. Accountability measures would be established through the contract's statement of work, performance standards, and reporting requirements. Transparency is generally facilitated through contract award databases and public reporting, though specific campaign performance data may not always be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Affordable Care Act (ACA) Implementation
Health Insurance Marketplace Outreach
Public Health Communication Campaigns
Federal Advertising and Public Relations Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Difficulty in measuring the direct impact of public education campaigns on behavior.
Contract duration may be insufficient for long-term behavior change initiatives.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $39.5 million to IPG DXTRA, INC.. IGF::OT::IGF HEALTH INSURANCE EXCHANGE PUBLIC EDUCATION AND OUTREACH

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 $39.5 million.

What is the period of performance?

Start: 2015-07-01. End: 2016-07-29.

What was the specific breakdown of services provided under this contract?

The provided data indicates the contract was for 'Public Education and Outreach' related to the Health Insurance Exchange. While specific line items are not detailed, this typically encompasses a range of activities such as advertising (TV, radio, digital, print), public relations, media buying, content creation, social media engagement, community outreach events, and potentially research and evaluation of campaign effectiveness. The time-and-materials (T&M) nature of the award suggests flexibility in resource allocation based on evolving campaign needs and strategies.

How does the $39.5 million award compare to previous or subsequent spending on similar outreach efforts?

Comparing this $39.5 million award requires access to historical spending data for HHS's public education campaigns, specifically for the Health Insurance Exchange. Without that comparative data, it's difficult to definitively state if this amount is higher, lower, or comparable to previous efforts. Factors influencing year-over-year spending can include changes in program scope, legislative mandates, enrollment periods, and the overall strategic approach to public outreach. A comprehensive analysis would involve examining annual budgets allocated to similar functions over several fiscal years.

What are the key performance indicators (KPIs) used to measure the success of this public education campaign?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for public education and outreach campaigns related to health insurance exchanges, typical KPIs often include metrics such as website traffic, call center volume, enrollment numbers attributed to specific outreach efforts, public awareness survey results, media impressions, social media engagement rates, and cost per acquisition (if applicable to enrollment). The effectiveness of the campaign would be evaluated against pre-defined targets for these metrics.

What is the track record of IPG DXTRA, INC. in handling large federal public health communication contracts?

IPG DXTRA, INC. is a large, established advertising and marketing conglomerate with a history of handling significant campaigns for both commercial and government clients. While specific details on their past federal public health communication contracts are not provided here, their size and scope suggest they possess the infrastructure and expertise to manage large-scale government initiatives. A deeper dive into their contract history with federal agencies, particularly HHS or other health-related departments, would be necessary to fully assess their track record in this specific domain.

What risks are associated with a time-and-materials contract for public education and outreach?

Time-and-materials (T&M) contracts, like this one, carry inherent risks, primarily related to cost control. Since payment is based on the actual labor hours and material costs incurred, there's a risk of cost overruns if the scope of work expands or if project management is not rigorous. For public education campaigns, this could mean the contractor spends more time than initially anticipated on creative development, media placement, or campaign adjustments. Effective oversight, clear task definitions, and regular progress reviews are crucial to mitigate these risks and ensure the project stays within budget expectations.

How was the 'advertising agencies' NAICS code (541810) relevant to the services procured?

The NAICS code 541810, 'Advertising Agencies,' is highly relevant as it directly classifies the primary business activity of the contractor and the nature of the services procured. This code encompasses establishments primarily engaged in creating advertising campaigns and placing such advertising in periodicals, newspapers, radio, television, or the internet. For this contract, it signifies that the government sought services related to the development, execution, and management of advertising and public outreach strategies to inform the public about health insurance exchanges.

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: 3

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: $39,464,274

Exercised Options: $39,464,274

Current Obligation: $39,464,274

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201100029I

IDV Type: IDC

Timeline