Treasury's $71M advertising contract with True North Communications Inc. awarded competitively

Contract Overview

Contract Amount: $70,962,171 ($71.0M)

Contractor: True North Communications Inc

Awarding Agency: Department of the Treasury

Start Date: 2007-10-01

End Date: 2009-09-30

Contract Duration: 730 days

Daily Burn Rate: $97.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ADVERTISING SERVICES FOR NATIONAL CAMPAIGN

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 $71.0 million to TRUE NORTH COMMUNICATIONS INC for work described as: ADVERTISING SERVICES FOR NATIONAL CAMPAIGN Key points: 1. The contract value of $71 million over two years suggests a significant investment in national advertising campaigns. 2. Awarded competitively, this indicates potential for good price discovery and value for taxpayer dollars. 3. The firm fixed-price contract type helps manage cost certainty for the government. 4. The duration of 730 days allows for sustained campaign efforts. 5. The contract was awarded to a single vendor, True North Communications Inc. 6. The Bureau of the Fiscal Service is the specific agency overseeing this contract.

Value Assessment

Rating: good

The total contract value of approximately $71 million over two years for advertising services is substantial. Benchmarking this against similar large-scale national advertising campaigns would be necessary for a precise value-for-money assessment. However, the competitive award suggests that the pricing was likely vetted against market rates. The firm fixed-price structure provides cost predictability, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a competitive process, as indicated by 'COMPETITIVE DELIVERY ORDER'. The specific number of bidders is not provided in the data, but a competitive award generally implies multiple interested parties vying for the contract. This level of competition is expected to drive down prices and ensure the government receives services at a reasonable cost.

Taxpayer Impact: A competitive award means taxpayers benefit from potentially lower prices due to vendor competition and a wider selection of qualified providers.

Public Impact

The primary beneficiaries are the citizens reached by the national advertising campaigns, likely aimed at public awareness or service utilization. The services delivered are advertising and marketing communications for national campaigns. The geographic impact is national, covering the entire United States. Workforce implications could include jobs in advertising, media buying, and campaign management, both within the contractor and potentially supporting industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess campaign effectiveness.
The total contract value is high, raising questions about whether smaller, more specialized firms were adequately considered or able to compete.

Positive Signals

The contract was awarded competitively, suggesting a robust selection process.
The firm fixed-price contract type offers cost certainty and reduces the risk of cost overruns for the government.
The contract duration allows for sustained and potentially more impactful campaign execution.

Sector Analysis

This contract falls within the advertising and marketing services sector, a critical component of government outreach and public information dissemination. The market for national advertising is large and diverse, encompassing various media channels. This contract represents a significant portion of spending within this specific service category for the Bureau of the Fiscal Service, likely supporting major public awareness or financial literacy initiatives.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting requirements. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, large national contracts often have subcontracting opportunities, which could potentially benefit small businesses if included in the contract terms.

Oversight & Accountability

Oversight for this contract would typically be managed by the Bureau of the Fiscal Service, with potential involvement from the Department of the Treasury's Inspector General. Accountability measures would be tied to the contract's performance clauses and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed campaign performance data may not always be publicly available.

Related Government Programs

Government-wide Advertising and Marketing Contracts
Public Awareness Campaigns
Financial Literacy Programs
Bureau of the Fiscal Service Initiatives

Risk Flags

High Contract Value
Lack of Specific Performance Metrics
Limited Publicly Available Detail on Campaign Objectives

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $71.0 million to TRUE NORTH COMMUNICATIONS INC. ADVERTISING SERVICES FOR NATIONAL CAMPAIGN

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 $71.0 million.

What is the period of performance?

Start: 2007-10-01. End: 2009-09-30.

What specific national campaigns were funded by this $71 million contract, and what were their objectives?

The provided data does not specify the exact national campaigns funded by this contract. However, given the awarding agency is the Bureau of the Fiscal Service within the Department of the Treasury, the campaigns likely focused on areas such as promoting U.S. Savings Bonds, educating the public about TreasuryDirect.gov, encouraging participation in government savings programs, or disseminating information related to fiscal responsibility and national debt. Without access to the detailed statement of work or campaign reports, the specific objectives and outcomes remain undisclosed in this dataset.

How does the $71 million contract value compare to historical federal spending on similar national advertising services?

Comparing the $71 million contract value to historical federal spending requires a broader analysis of similar contracts awarded by various agencies over time. The Bureau of the Fiscal Service's advertising needs might fluctuate based on specific program initiatives or legislative mandates. To establish a benchmark, one would need to aggregate data on advertising contracts of similar scope (national reach, multi-year duration) awarded by agencies like the Department of Health and Human Services, Department of Defense, or others that conduct large public outreach campaigns. This contract's value appears substantial, suggesting a significant, potentially multi-faceted, national campaign effort.

What were the key performance indicators (KPIs) for this contract, and did True North Communications Inc. meet them?

The provided data does not include specific Key Performance Indicators (KPIs) or performance assessment reports for this contract. Typically, advertising contracts would include metrics related to campaign reach, engagement rates, message recall, website traffic driven, or specific action conversions (e.g., sign-ups for a service). True North Communications Inc.'s performance against these unstated KPIs would be documented in contract performance reviews conducted by the Bureau of the Fiscal Service. Without access to these internal assessments, it is impossible to determine if the contractor met its performance obligations.

What is the track record of True North Communications Inc. in handling large federal advertising contracts?

The provided data indicates that True North Communications Inc. was awarded this $71 million contract. To assess their track record, one would need to examine their history of federal contract awards, including their performance on previous contracts, any past performance issues or awards, and their experience with government agencies. This specific contract, awarded in 2007 and ending in 2009, represents a significant engagement. Further research into federal procurement databases and contractor performance systems would be necessary to provide a comprehensive overview of their broader track record.

Were there any significant risks identified during the procurement or performance phases of this contract?

The provided data does not explicitly list any identified risks associated with this contract. However, common risks in large federal advertising contracts include potential cost overruns (mitigated here by firm fixed-price), contractor performance failures, challenges in reaching target audiences effectively, or shifts in public perception that could impact campaign success. The competitive nature of the award suggests that risks related to vendor selection and pricing were addressed during procurement. Ongoing performance monitoring by the Bureau of the Fiscal Service would be the primary mechanism for identifying and mitigating risks during the contract's execution.

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: $70,962,171

Exercised Options: $70,962,171

Current Obligation: $70,962,171

Parent Contract

Parent Award PIID: GS23F0037K

IDV Type: FSS

Timeline