Army awards $42.6M contract to DDB Chicago for advertising services, full and open competition
Contract Overview
Contract Amount: $42,589,792 ($42.6M)
Contractor: DDB Chicago Inc.
Awarding Agency: Department of Defense
Start Date: 2021-09-27
End Date: 2022-09-26
Contract Duration: 364 days
Daily Burn Rate: $117.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
Sector: Other
Official Description: UPFRONT MEDIA - ARMY
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60601
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $42.6 million to DDB CHICAGO INC. for work described as: UPFRONT MEDIA - ARMY Key points: 1. Contract value of $42.6M for a 1-year period. 2. Awarded via full and open competition, indicating market availability. 3. Advertising agencies sector, with potential for broad application. 4. No small business participation noted.
Value Assessment
Rating: fair
The contract's Cost No Fee (CNF) pricing structure makes direct cost comparison difficult. Benchmarking against similar advertising contracts is necessary to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, suggesting a robust price discovery process. The award to DDB Chicago Inc. implies they offered the best value under the contract terms.
Taxpayer Impact: Taxpayer funds are being used for advertising services, with the expectation of effective communication and outreach.
Public Impact
Public awareness campaigns and messaging. Support for Army recruitment and public relations efforts. Potential impact on brand perception and engagement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Cost No Fee pricing structure limits transparency.
Positive Signals
- Full and open competition ensures market access.
- Clear contract period and delivery order structure.
Sector Analysis
This contract falls within the Advertising Agencies sector (NAICS 541810). Spending in this sector supports government communication needs, with typical contract values varying widely based on scope and duration.
Small Business Impact
The contract does not indicate any small business participation. This suggests that larger, established firms were best positioned to compete for and fulfill this requirement.
Oversight & Accountability
The contract was awarded via full and open competition, which generally implies a degree of oversight in the solicitation and evaluation process. Further review of the award justification would be needed for detailed accountability assessment.
Related Government Programs
- Advertising Agencies
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of small business participation.
- Cost No Fee pricing structure.
- Potential for cost overruns without performance incentives.
- Difficulty in measuring direct ROI for advertising.
Tags
advertising-agencies, department-of-defense, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.6 million to DDB CHICAGO INC.. UPFRONT MEDIA - ARMY
Who is the contractor on this award?
The obligated recipient is DDB CHICAGO INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $42.6 million.
What is the period of performance?
Start: 2021-09-27. End: 2022-09-26.
What is the expected return on investment for this $42.6M advertising spend?
The return on investment (ROI) for this $42.6M advertising contract is not explicitly defined within the provided data. While the contract supports the Army's communication objectives, measuring the direct financial or strategic impact of advertising campaigns can be complex. Key performance indicators related to recruitment, public perception, or message dissemination would need to be established and tracked to assess ROI effectively.
What are the primary risks associated with this contract's Cost No Fee pricing?
The primary risk with a Cost No Fee (CNF) pricing structure is the potential for the contractor to incur costs that are not directly tied to delivering value or meeting performance objectives. Without a fee tied to performance, there's less incentive for the contractor to aggressively manage costs. This can lead to inflated expenses and potentially less efficient service delivery, making it harder for the government to ensure cost-effectiveness.
How effective is full and open competition in ensuring the best value for advertising services?
Full and open competition is generally effective in ensuring the best value for advertising services by allowing a wide range of qualified vendors to bid. This competition drives down prices and encourages innovation as companies strive to differentiate themselves. However, effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately assess the technical and cost proposals to select the truly best value offer.
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: W9124D16R0046
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 225 N MICHIGAN AVE FL 10, CHICAGO, IL, 60601
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $42,589,792
Exercised Options: $42,589,792
Current Obligation: $42,589,792
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $43,402,484
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9124D19D0001
IDV Type: IDC
Timeline
Start Date: 2021-09-27
Current End Date: 2022-09-26
Potential End Date: 2022-09-26 00:00:00
Last Modified: 2025-12-31
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