HHS awarded $73M for public education and outreach, with IPG DXTRA, INC. as the contractor

Contract Overview

Contract Amount: $72,997,926 ($73.0M)

Contractor: IPG Dxtra, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2016-07-29

End Date: 2017-08-31

Contract Duration: 398 days

Daily Burn Rate: $183.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

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

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $73.0 million to IPG DXTRA, INC. for work described as: HEALTH INSURANCE EXCHANGE PUBLIC EDUCATION AND OUTREACH CAMPAIGN COMPETITION AWARD IGF::OT::IGF Key points: 1. The contract value represents a significant investment in public awareness campaigns. 2. Competition dynamics for this contract are crucial for ensuring cost-effectiveness. 3. Performance metrics will be key to assessing the campaign's success and value. 4. The contract duration of over a year allows for sustained outreach efforts. 5. This award falls within the advertising and marketing services sector.

Value Assessment

Rating: fair

The contract value of approximately $73 million for a 13-month period suggests a substantial budget for public education. Benchmarking this against similar large-scale public health campaigns would be necessary for a definitive value assessment. Without specific deliverables or performance metrics, it is difficult to ascertain the precise value for money. The Time and Materials pricing structure could lead to cost overruns if not closely managed.

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 likely had the opportunity to submit proposals. This competitive process is generally expected to drive down prices and encourage innovation. The number of bidders and the evaluation criteria used would provide further insight into the strength of the competition.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it increases the likelihood of securing the best possible services at competitive prices.

Public Impact

The primary beneficiaries are the public, who will receive information about health insurance exchanges. The services delivered include advertising, public relations, and outreach activities. The geographic impact is national, aiming to reach citizens across the District of Columbia and potentially beyond. Workforce implications may include jobs in advertising, media, and public relations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure.
Effectiveness of outreach campaign is not yet quantifiable.
Scope creep could increase overall contract cost.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Contract duration allows for comprehensive campaign execution.
Focus on public education aligns with government outreach goals.

Sector Analysis

This contract falls within the advertising and marketing services sector, specifically focusing on public relations and media campaigns. The market for government advertising is substantial, with agencies frequently engaging contractors to disseminate information on public programs and initiatives. Comparable spending benchmarks would involve looking at other large federal campaigns for health, education, or social services.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. Therefore, the direct impact on small businesses is not evident from this award alone, though the prime contractor may engage subcontractors.

Oversight & Accountability

Oversight would typically be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Transparency is facilitated through contract award databases like FPDS. Accountability measures would be tied to the performance metrics and deliverables outlined in the contract statement of work. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse.

Related Government Programs

Affordable Care Act Outreach
Public Health Campaigns
Government Advertising Services

Risk Flags

Potential for cost overruns due to T&M pricing.
Effectiveness of public outreach is difficult to measure definitively.
Contract duration may be insufficient for long-term behavioral change.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $73.0 million to IPG DXTRA, INC.. HEALTH INSURANCE EXCHANGE PUBLIC EDUCATION AND OUTREACH CAMPAIGN COMPETITION AWARD IGF::OT::IGF

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 $73.0 million.

What is the period of performance?

Start: 2016-07-29. End: 2017-08-31.

What specific advertising and outreach strategies were employed under this contract?

The contract statement of work would detail the specific strategies, which likely included a mix of media buys (TV, radio, digital), public relations efforts, community outreach events, and social media engagement. The goal was to educate the public about health insurance exchanges, their benefits, and enrollment procedures. The effectiveness of these strategies would be measured against pre-defined metrics related to awareness, understanding, and enrollment.

How does the $73 million contract value compare to similar federal public education campaigns?

Comparing this $73 million contract to similar federal public education campaigns requires access to historical data on large-scale outreach initiatives. Campaigns related to major policy implementations, such as the Affordable Care Act itself or public health emergencies, often involve significant media spending. Without specific comparable contract data, it's challenging to definitively state if this award is high or low. However, the scale suggests a national reach and a comprehensive multi-channel approach.

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

Key performance indicators for such a campaign would typically include metrics like public awareness levels (measured through surveys), website traffic and engagement, call center volume, enrollment numbers attributed to the campaign, and media impressions. The contract would specify these KPIs and the targets the contractor must achieve. Regular reporting by the contractor would track progress against these indicators.

What is the track record of IPG DXTRA, INC. in executing large federal public outreach campaigns?

Assessing IPG DXTRA, INC.'s track record would involve reviewing their past performance on similar government contracts, particularly those involving public education and outreach. Information on their experience with federal agencies, the scale of previous campaigns, and client feedback or past performance evaluations would be crucial. A review of their portfolio and any publicly available performance data would provide insight into their capabilities and reliability for this type of work.

What is the risk associated with the Time and Materials (T&M) contract type for this campaign?

The primary risk associated with a Time and Materials (T&M) contract type for a large public education campaign is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours and costs, plus a fee. If project scope expands, timelines are extended, or labor hours are not efficiently managed, the total cost can exceed initial estimates. Robust oversight, clear task definitions, and diligent monitoring of labor hours are essential to mitigate this risk.

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: 1

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: $72,997,926

Exercised Options: $72,997,926

Current Obligation: $72,997,926

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201100029I

IDV Type: IDC

Timeline