Treasury's $17.4M advertising contract with True North Communications Inc. awarded in 2006

Contract Overview

Contract Amount: $17,404,004 ($17.4M)

Contractor: True North Communications Inc

Awarding Agency: Department of the Treasury

Start Date: 2006-11-01

End Date: 2007-09-30

Contract Duration: 333 days

Daily Burn Rate: $52.3K/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 $17.4 million to TRUE NORTH COMMUNICATIONS INC for work described as: ADVERTISING SERVICES Key points: 1. Contract value represents a significant investment in advertising services for the Bureau of the Fiscal Service. 2. The contract was awarded as a competitive delivery order, suggesting a structured procurement process. 3. The duration of the contract (333 days) indicates a focused, short-term campaign or service period. 4. The firm fixed-price contract type provides cost certainty for the government. 5. The contract was awarded to a single vendor, True North Communications Inc. 6. The contract was not set aside for small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this specific $17.4 million advertising contract from 2006 is challenging without more granular data on the scope of services and campaign objectives. However, the total value suggests a substantial investment. Comparing it to similar large-scale federal advertising campaigns from that era would be necessary for a more precise value assessment. The firm fixed-price nature offers predictability, but the ultimate value depends on the effectiveness of the advertising delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' indicating that it was procured through a competitive process. While the specific details of the competition (e.g., number of bids received) are not provided in the abbreviated data, the designation implies that multiple vendors had the opportunity to bid. This competitive approach is generally expected to yield better pricing and service options for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by fostering price discovery and encouraging vendors to offer their best terms.

Public Impact

The primary beneficiaries of this contract are likely the citizens and businesses targeted by the advertising campaigns, which could relate to fiscal services, savings bonds, or other Treasury initiatives. The services delivered would encompass the creation, placement, and management of advertising across various media channels. The geographic impact would depend on the reach of the advertising campaigns, potentially national or targeted to specific regions. Workforce implications could include jobs within True North Communications Inc. and potentially within the Bureau of the Fiscal Service for contract oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the effectiveness and return on investment of the advertising spend.
The age of the contract (awarded in 2006) means current market rates and best practices may differ significantly.
Without knowing the specific objectives, it's hard to judge if the $17.4M was optimally allocated.

Positive Signals

Awarded through a competitive process, suggesting a fair evaluation of potential vendors.
Firm fixed-price contract provides budget certainty for the government.
The contract was awarded to a single, presumably capable, vendor for the duration.

Sector Analysis

The advertising and public relations sector is a dynamic industry focused on communication and outreach. Federal agencies frequently engage advertising firms to promote government programs, inform the public, and manage their brand. Spending in this sector can vary widely based on agency needs and campaign scope. This contract, valued at over $17 million, represents a significant engagement within the federal advertising market for the period it was active.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). This means that both large and small businesses were eligible to compete. The implications for the small business ecosystem are that opportunities for subcontracting may have existed, but there was no mandatory requirement for the prime contractor to engage small businesses. Further analysis would be needed to determine if any subcontracting occurred.

Oversight & Accountability

Oversight for this contract would have been managed by the Bureau of the Fiscal Service within the Department of the Treasury. As a delivery order under a larger contract vehicle, oversight would focus on ensuring adherence to the terms, conditions, and performance expectations outlined in the contract. Transparency is generally facilitated through contract award databases, though detailed performance reporting may be internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Advertising and Public Relations Services
Department of the Treasury Contracts
Bureau of the Fiscal Service Procurement
Government Marketing and Communications

Risk Flags

Contract awarded in 2006, potentially outdated performance and pricing context.
Limited data on specific deliverables and performance metrics.
No information on small business subcontracting utilization.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $17.4 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 $17.4 million.

What is the period of performance?

Start: 2006-11-01. End: 2007-09-30.

What were the specific advertising goals and target audiences for this $17.4 million contract?

The provided data does not specify the exact advertising goals or target audiences for this $17.4 million contract awarded to True North Communications Inc. by the Bureau of the Fiscal Service in 2006. Typically, federal advertising contracts aim to inform the public about government programs, encourage participation in initiatives (like savings bonds or tax compliance), or manage public perception of agency activities. Without access to the contract's statement of work or related documentation, determining the precise objectives and intended recipients of the advertising campaigns remains speculative. Further investigation into Treasury or Fiscal Service archives from that period would be necessary to uncover these details.

How did True North Communications Inc.'s pricing compare to other potential bidders or industry benchmarks at the time?

The abbreviated data indicates this was a 'COMPETITIVE DELIVERY ORDER' with a 'FIRM FIXED PRICE' type. While competition implies multiple bids were considered, the data does not provide specific pricing details or a comparison against other bidders or market benchmarks from 2006. A firm fixed price suggests the government agreed on a set cost for the defined services. To assess True North's pricing competitiveness, one would need access to the bid proposals, the government's cost analysis, and potentially industry reports on advertising service costs during that period. Without this, a direct comparison is not possible from the given information.

What was the track record of True North Communications Inc. with federal contracts prior to or during this engagement?

The provided data identifies True North Communications Inc. as the contractor but does not offer details on their prior or concurrent federal contract history. Assessing a contractor's track record typically involves reviewing past performance evaluations, contract completion history, and any documented issues or successes on previous government engagements. To evaluate True North's reliability and past performance, one would need to consult federal procurement databases (like FPDS or SAM.gov archives) for other contracts they held, look for past performance reviews, and investigate any reported disputes or awards.

Can the effectiveness of the advertising campaigns funded by this contract be measured?

Measuring the effectiveness of advertising campaigns funded by this $17.4 million contract is not possible with the provided data. Federal contracts often include requirements for performance metrics and reporting, such as campaign reach, engagement rates, public awareness shifts, or behavioral changes (e.g., increased savings bond purchases). However, this abbreviated data lacks any such performance indicators. To assess effectiveness, one would need to access post-campaign reports, surveys, or other evaluation data generated by the Bureau of the Fiscal Service or True North Communications Inc. during or after the contract period.

How does the $17.4 million spending on advertising services compare to historical or projected spending by the Bureau of the Fiscal Service in this category?

The provided data shows a single contract award of $17.4 million for advertising services to True North Communications Inc., active from November 2006 to September 2007. To compare this spending to historical or projected levels, one would need access to the Bureau of the Fiscal Service's broader budget and procurement history for advertising and public relations services over multiple fiscal years. Analyzing trends in their spending on similar services before and after this contract, as well as comparing it to the agency's overall budget allocation for communications, would provide context on whether this $17.4 million represented a typical, elevated, or reduced level of investment.

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

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: $17,404,004

Exercised Options: $17,404,004

Current Obligation: $17,404,004

Parent Contract

Parent Award PIID: GS23F0037K

IDV Type: FSS

Timeline