Treasury's $57.2M Advertising Services Contract with True North Communications Inc. Awarded via Competitive Delivery Order

Contract Overview

Contract Amount: $57,215,773 ($57.2M)

Contractor: True North Communications Inc

Awarding Agency: Department of the Treasury

Start Date: 2008-10-01

End Date: 2010-09-30

Contract Duration: 729 days

Daily Burn Rate: $78.5K/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 $57.2 million to TRUE NORTH COMMUNICATIONS INC for work described as: ADVERTISING SERVICES Key points: 1. The contract value is $57.2 million over two years. 2. True North Communications Inc. is the sole awardee. 3. The contract was awarded competitively, suggesting potential for good value. 4. The sector is Advertising Services, a common area for government spending.

Value Assessment

Rating: good

The contract's fixed-price structure provides cost certainty. Benchmarking against similar advertising contracts would be necessary for a precise value assessment, but the competitive award suggests a reasonable price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded as a competitive delivery order, indicating multiple vendors likely participated. This method generally promotes price discovery and competition, leading to potentially better pricing for the government.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the advertising services procured.

Public Impact

Government advertising campaigns aim to inform the public on important initiatives and services. Effective advertising can increase public awareness and participation in government programs. The use of a private firm for advertising services is standard practice.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in advertising services.
Performance metrics and evaluation clarity are crucial.

Positive Signals

Competitive award process.
Firm fixed-price contract type.

Sector Analysis

Advertising services are crucial for government outreach and public information campaigns. Spending in this sector can vary significantly based on agency needs and public awareness goals. Benchmarks are difficult without specific campaign details.

Small Business Impact

The data does not indicate if small businesses were involved as subcontractors or if the prime contractor is a small business. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The competitive delivery order process implies a degree of oversight in the selection and award. Ongoing monitoring of contract performance and deliverables by the Bureau of the Fiscal Service is expected.

Related Government Programs

Department of the Treasury Contracting
Bureau of the Fiscal Service Programs

Risk Flags

Lack of detailed performance metrics.
No information on specific campaign outcomes.
Potential for contractor performance issues not captured.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $57.2 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 $57.2 million.

What is the period of performance?

Start: 2008-10-01. End: 2010-09-30.

What specific advertising campaigns were undertaken, and what were their measurable outcomes?

The specific advertising campaigns are not detailed in the provided data. To assess value, an analysis of the campaign objectives, target audiences, media mix, and key performance indicators (KPIs) such as reach, engagement, and conversion rates would be necessary. Without this, it's difficult to definitively link the $57.2 million expenditure to tangible public benefits or policy achievements.

How was the performance of True North Communications Inc. evaluated throughout the contract period?

The provided data does not include details on performance evaluations. Effective oversight would involve regular reviews of deliverables, adherence to timelines, budget management, and overall campaign effectiveness against pre-defined metrics. The contracting officer's representative (COR) would typically be responsible for this monitoring to ensure the government receives the contracted services satisfactorily.

Were there any challenges or disputes encountered during the execution of this contract?

Information regarding contract challenges or disputes is not available in the provided dataset. A comprehensive risk assessment would typically investigate any past performance issues, claims, or litigation associated with the contractor. The absence of such flags in this summary suggests a relatively smooth execution, but further due diligence might be warranted for high-value contracts.

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: $57,215,773

Exercised Options: $57,215,773

Current Obligation: $57,215,773

Parent Contract

Parent Award PIID: GS23F0037K

IDV Type: FSS

Timeline