Treasury's $20M Advertising Contract Awarded to True North Communications Inc
Contract Overview
Contract Amount: $20,016,173 ($20.0M)
Contractor: True North Communications Inc
Awarding Agency: Department of the Treasury
Start Date: 2005-11-01
End Date: 2007-03-31
Contract Duration: 515 days
Daily Burn Rate: $38.9K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ADVERTISING SERVICES
Place of Performance
Location: NEW YORK, NEW YORK County, NEW YORK, 10001
State: New York Government Spending
Plain-Language Summary
Department of the Treasury obligated $20.0 million to TRUE NORTH COMMUNICATIONS INC for work described as: ADVERTISING SERVICES Key points: 1. The contract value is $20,016,173.32. 2. Awarded to True North Communications Inc. 3. The contract falls under the Advertising Services sector. 4. It was awarded via a competitive delivery order.
Value Assessment
Rating: fair
The contract value of $20M over 17 months suggests a significant investment in advertising services. Benchmarking against similar government advertising contracts would be necessary to fully assess pricing reasonableness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This contract was awarded through a competitive delivery order, indicating that multiple vendors likely had an opportunity to bid. This method generally promotes price discovery and competition.
Taxpayer Impact: Taxpayer funds are being used for advertising services, the effectiveness and necessity of which should be continually evaluated to ensure value for money.
Public Impact
Public funds are allocated to advertising, requiring transparency in campaign goals and outcomes. The contract duration of 515 days suggests a sustained advertising effort. The specific advertising services procured are not detailed, impacting public understanding of the spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detail on specific advertising services procured.
- Potential for scope creep or inefficient spending without clear performance metrics.
Positive Signals
- Awarded through a competitive process.
- Contract has a defined start and end date.
Sector Analysis
The advertising services sector involves agencies procuring marketing and promotional activities. Government spending in this area can vary widely based on agency needs and public outreach campaigns.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors in this award.
Oversight & Accountability
Oversight would involve monitoring the performance of True North Communications Inc. against contract deliverables and ensuring adherence to advertising regulations and best practices.
Related Government Programs
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Lack of performance metrics.
- Limited detail on service scope.
- Potential for inefficient spending without clear objectives.
Tags
department-of-the-treasury, ny, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $20.0 million to TRUE NORTH COMMUNICATIONS INC. ADVERTISING SERVICES
Who is the contractor on this award?
The obligated recipient is TRUE NORTH COMMUNICATIONS INC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).
What is the total obligated amount?
The obligated amount is $20.0 million.
What is the period of performance?
Start: 2005-11-01. End: 2007-03-31.
What were the specific objectives and target audiences for this $20M advertising campaign?
The specific objectives and target audiences for this $20M advertising campaign are not detailed in the provided data. Understanding these elements is crucial for evaluating the strategic intent behind the spending and assessing whether the chosen advertising services align with the Bureau of the Fiscal Service's mission and communication goals.
How was the effectiveness of the advertising services measured and what were the key performance indicators?
The provided data does not specify how the effectiveness of the advertising services was measured or what key performance indicators (KPIs) were established. Without this information, it is difficult to determine if the $20M investment yielded a positive return or achieved its intended communication outcomes for the Department of the Treasury.
Were there any performance issues or contract modifications during the 515-day period?
The provided data does not contain information regarding performance issues or contract modifications during the 515-day period of this contract. Further investigation into contract performance reports and modification logs would be necessary to ascertain if any adjustments were made or if the contractor met all obligations.
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Interpublic Group of Companies Inc (UEI: 006985790)
Address: 150 E 42ND ST, NEW YORK, NY, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $20,016,173
Exercised Options: $20,016,173
Current Obligation: $20,016,173
Parent Contract
Parent Award PIID: GS23F0037K
IDV Type: FSS
Timeline
Start Date: 2005-11-01
Current End Date: 2007-03-31
Potential End Date: 2007-03-31 00:00:00
Last Modified: 2013-11-29
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