DoD's Navy Awards $36M Advertising Contract to Young & Rubicam LLC for FY23 Media Placement
Contract Overview
Contract Amount: $36,000,000 ($36.0M)
Contractor: Young & Rubicam LLC
Awarding Agency: Department of Defense
Start Date: 2023-03-29
End Date: 2023-11-30
Contract Duration: 246 days
Daily Burn Rate: $146.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SPACE CHARGES MEDIA PLACEMENT FY23 Q3 & Q4
Place of Performance
Location: NEW YORK, NEW YORK County, NEW YORK, 10019
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $36.0 million to YOUNG & RUBICAM LLC for work described as: SPACE CHARGES MEDIA PLACEMENT FY23 Q3 & Q4 Key points: 1. Significant contract value of $36 million for media placement services. 2. Young & Rubicam LLC, a major advertising agency, secured the award. 3. The contract falls under the Advertising Agencies NAICS code (541810). 4. Full and open competition was utilized, suggesting a robust price discovery process.
Value Assessment
Rating: good
The contract value of $36 million for media placement over 8 months appears reasonable given the scope. Benchmarking against similar large-scale media buys would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The competitive nature of this award suggests taxpayers are likely benefiting from efficient pricing for media placement services.
Public Impact
Public awareness campaigns and strategic messaging will be supported by these funds. The Department of the Navy's outreach efforts will be enhanced through this contract. Advertising services are crucial for communicating government initiatives and information to the public.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Positive Signals
- Full and open competition utilized
- Firm fixed price contract type
- Awarded to a well-established agency
Sector Analysis
This contract falls within the advertising and marketing services sector, which is essential for government communication. Spending in this area can fluctuate based on agency needs for public outreach and information dissemination.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the awardee is a large corporation. There is no direct indication of small business subcontracting opportunities within this specific award notice.
Oversight & Accountability
The contract was awarded through full and open competition, suggesting a standard procurement process. Further oversight would involve monitoring the delivery orders and performance against the contract requirements.
Related Government Programs
- Advertising Agencies
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns if media landscape shifts unexpectedly.
- Effectiveness measurement complexity for broad media campaigns.
- Dependence on agency's strategic execution for optimal results.
Tags
advertising-agencies, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.0 million to YOUNG & RUBICAM LLC. SPACE CHARGES MEDIA PLACEMENT FY23 Q3 & Q4
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 $36.0 million.
What is the period of performance?
Start: 2023-03-29. End: 2023-11-30.
What specific media channels and platforms will be utilized under this contract, and how will their effectiveness be measured?
The contract details likely specify the types of media channels (e.g., digital, broadcast, print) and platforms. Effectiveness is typically measured through key performance indicators (KPIs) such as reach, engagement, conversion rates, and return on ad spend (ROAS), which would be outlined in the performance work statement and monitored through regular reporting.
How does the pricing structure compare to industry benchmarks for similar media placement services, considering the duration and scope?
A comprehensive comparison would require access to detailed pricing data and industry benchmark reports for media buying agencies. Factors like agency fees, media markups, and volume discounts play a role. Given the competitive award, the pricing is presumed to be fair, but a detailed analysis against comparable contracts would be needed for definitive assessment.
What is the potential impact of this contract on the Navy's ability to effectively communicate critical information to its target audiences?
This contract is expected to significantly enhance the Navy's communication capabilities by leveraging the expertise of a professional advertising agency. Effective media placement can ensure critical information reaches intended audiences, fostering understanding, recruitment, and public support for naval initiatives.
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: $36,000,000
Exercised Options: $36,000,000
Current Obligation: $36,000,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0018921DZ024
IDV Type: IDC
Timeline
Start Date: 2023-03-29
Current End Date: 2023-11-30
Potential End Date: 2023-11-30 00:00:00
Last Modified: 2023-11-17
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