DoD's $26.8M media placement contract awarded to Young & Rubicam LLC for FY23

Contract Overview

Contract Amount: $26,800,000 ($26.8M)

Contractor: Young & Rubicam LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-27

End Date: 2023-06-30

Contract Duration: 276 days

Daily Burn Rate: $97.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPT I SPACE CHARGES MEDIA PLACEMENT DIGITAL MEDIA FY23 Q2 Q3

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10019

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $26.8 million to YOUNG & RUBICAM LLC for work described as: OPT I SPACE CHARGES MEDIA PLACEMENT DIGITAL MEDIA FY23 Q2 Q3 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, common for ongoing service needs. 3. Fixed-price contract type aims to control costs for the government. 4. The duration of 276 days indicates a focused campaign or service period. 5. The North American Industry Classification System (NAICS) code 541810 points to advertising agency services. 6. The contract was awarded by the Department of the Navy, a component of the DoD. 7. The primary service area is New York, as indicated by the vendor's location.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the scope of services and the overall IDIQ contract terms. However, the firm fixed-price structure provides some cost certainty. Comparing the per-day cost of approximately $97,101 ($26.8M / 276 days) to similar large-scale media placement contracts would be necessary for a more definitive value assessment. The absence of detailed performance metrics in the provided data limits a thorough value-for-money analysis.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust competitive environment, which typically leads to better price discovery and potentially more favorable terms for the government. The number of bidders is not specified, but the designation implies a fair opportunity for multiple companies to compete for this delivery order.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a market where the most competitive pricing and innovative solutions are likely to emerge, ensuring that government funds are used efficiently.

Public Impact

The Department of Defense, specifically the Department of the Navy, benefits from this contract by securing advertising and media placement services. The services delivered are likely related to public affairs, recruitment, or public information campaigns for the Navy. The geographic impact is centered around the vendor's location in New York, but the media placement itself could be national or targeted. Workforce implications are primarily for the contractor, Young & Rubicam LLC, and potentially subcontractors involved in media execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness and true value delivered.
The total contract value is significant, requiring diligent oversight to ensure funds are used appropriately.
Without details on the campaign's objectives, it's hard to gauge if the spending aligns with strategic goals.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm fixed-price contract type helps manage cost overruns.
The contractor, Young & Rubicam LLC, is likely an established entity in the advertising industry.

Sector Analysis

This contract falls within the advertising and marketing services sector, specifically media buying and placement. The federal government is a significant consumer of these services for various purposes, including recruitment, public awareness campaigns, and information dissemination. The market for advertising agencies is competitive, with large firms often holding significant government contracts. Benchmarking this contract's value would require comparing it against other large federal advertising buys or private sector campaigns of similar scale and scope.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Young & Rubicam LLC is likely a large business. There is no information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem through this specific contract appears minimal, unless the prime contractor voluntarily engages small businesses for specialized services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Navy. As a delivery order under an IDIQ, the overarching IDIQ contract likely has established oversight mechanisms. Transparency is generally provided through contract databases like FPDS. Accountability would be tied to the performance against the terms and conditions of the delivery order and the fixed-price agreement. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

DoD Advertising and Public Relations Services
General Services Administration (GSA) Advertising and Marketing Support Services (AMS)

Risk Flags

Potential for cost overruns if market prices fluctuate significantly.
Risk of contractor prioritizing profit over optimal campaign performance under fixed-price terms.
Lack of detailed performance metrics in the award data hinders effectiveness assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.8 million to YOUNG & RUBICAM LLC. OPT I SPACE CHARGES MEDIA PLACEMENT DIGITAL MEDIA FY23 Q2 Q3

Who is the contractor on this award?

The obligated recipient is YOUNG & RUBICAM LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $26.8 million.

What is the period of performance?

Start: 2022-09-27. End: 2023-06-30.

What specific advertising campaigns or objectives does this $26.8M contract support for the Department of the Navy?

The provided data does not specify the exact campaigns or objectives this $26.8 million contract supports. Typically, such contracts for the Department of the Navy could fund a range of activities, including recruitment advertising to attract new service members, public awareness campaigns to inform the public about naval initiatives or readiness, or internal communication efforts. The duration of 276 days suggests a focused period for these activities. Without access to the detailed statement of work or task orders issued under this delivery order, the precise nature of the media placement and its strategic goals remain undisclosed in this dataset.

How does the $97,101 daily cost compare to industry benchmarks for similar federal media placement contracts?

The calculated daily cost of approximately $97,101 ($26.8M / 276 days) serves as a starting point for comparison. However, a true benchmark requires detailed context. Factors such as the media channels used (digital, broadcast, print), target audience demographics, geographic reach, and the specific services included (creative development, media buying, analytics) significantly influence costs. For large-scale federal campaigns, this daily rate might be within a reasonable range, especially if it includes comprehensive media buying and strategic planning. However, without comparative data on similar DoD or other agency media buys of comparable scope and duration, it's difficult to definitively state whether this represents excellent, fair, or concerning value. Further analysis would involve examining contracts with similar NAICS codes and award values.

What is the track record of Young & Rubicam LLC in handling large federal advertising contracts?

Young & Rubicam LLC (Y&R) has a long history in the advertising industry and has likely handled numerous large-scale campaigns, including potentially for government clients. While this specific dataset doesn't detail their past federal performance, major advertising agencies often secure significant government contracts through competitive processes. Their ability to win this $26.8 million delivery order suggests they possess the necessary qualifications, experience, and capacity to manage such a requirement. A deeper dive into federal procurement databases would reveal the extent and nature of their previous federal awards, including performance history and any reported issues, to fully assess their track record.

What are the potential risks associated with a firm fixed-price contract for media placement services?

While firm fixed-price (FFP) contracts are designed to provide cost certainty for the government, they can introduce risks for the contractor. For media placement, potential risks include unforeseen increases in media costs, changes in market dynamics affecting ad prices, or challenges in achieving desired reach or engagement metrics within the fixed budget. If the contractor underestimates costs or faces unexpected market shifts, they might incur losses. Conversely, for the government, the risk is that the contractor may cut corners on service quality or strategic insights to protect their profit margin under the FFP structure, although robust performance standards and oversight can mitigate this.

How does the $26.8M spending in FY23 Q2/Q3 compare to historical federal spending on advertising and media placement?

This $26.8 million contract represents a specific outlay for media placement services during FY23 Q2 and Q3. To assess its historical context, one would need to analyze aggregate federal spending data for advertising and media placement across previous fiscal years. This includes examining trends in overall agency spending, the types of services procured (e.g., recruitment vs. public information), and the primary contractors involved. Without this broader historical data, it's difficult to determine if this particular contract signifies an increase, decrease, or stable level of federal investment in these services. Such analysis would typically involve reviewing reports from agencies like the GSA or defense-specific procurement data.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Advertising, Public Relations, and Related Services › Advertising Agencies

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0018920RZ020

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: WPP PLC

Address: 3 COLUMBUS CIR, NEW YORK, NY, 10019

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

Financial Breakdown

Contract Ceiling: $26,800,000

Exercised Options: $26,800,000

Current Obligation: $26,800,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0018921DZ024

IDV Type: IDC

Timeline