Army awards $86.4M contract to DDB Chicago for advertising services under full and open competition
Contract Overview
Contract Amount: $86,360,358 ($86.4M)
Contractor: DDB Chicago Inc.
Awarding Agency: Department of Defense
Start Date: 2022-03-01
End Date: 2023-02-28
Contract Duration: 364 days
Daily Burn Rate: $237.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
Sector: Other
Official Description: NATIONAL MEDIA - ARMY
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60601
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $86.4 million to DDB CHICAGO INC. for work described as: NATIONAL MEDIA - ARMY Key points: 1. Significant contract value for advertising services. 2. DDB Chicago Inc. is the sole awardee. 3. Contract falls under full and open competition. 4. Advertising Agencies sector spending benchmark analysis needed.
Value Assessment
Rating: fair
The contract type is Cost No Fee, which can sometimes lead to less price discipline. Benchmarking against similar advertising contracts is crucial to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the 'Cost No Fee' structure warrants scrutiny to ensure efficient use of funds.
Taxpayer Impact: Taxpayer funds are being used for advertising services, with the efficiency dependent on the effectiveness of the campaign and the pricing negotiated.
Public Impact
Public funds allocated for national media advertising campaigns. Potential for increased brand awareness and public engagement for the Army. Contract performance will be monitored for effectiveness and adherence to budget.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost No Fee contract type
- Lack of specific performance metrics in provided data
Positive Signals
- Full and open competition
- Established vendor with potential for quality services
Sector Analysis
This contract falls within the Advertising Agencies sector. Spending in this sector can vary widely based on agency needs and campaign scope. Benchmarking against similar government advertising contracts is recommended.
Small Business Impact
The provided data does not indicate any specific set-asides for small businesses. Further investigation would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
Oversight will be critical to ensure the 'Cost No Fee' structure does not lead to inflated costs and that the advertising services deliver the intended public impact.
Related Government Programs
- Advertising Agencies
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to 'Cost No Fee' structure.
- Lack of detailed performance metrics in the provided data.
- Need for benchmarking against similar advertising contracts.
- Limited insight into small business participation.
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 $86.4 million to DDB CHICAGO INC.. NATIONAL 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 $86.4 million.
What is the period of performance?
Start: 2022-03-01. End: 2023-02-28.
What specific advertising services are included in this $86.4M contract, and how do they align with the Army's strategic communication goals?
The contract is for advertising agencies services. While the exact services are not detailed, they likely encompass media planning, creative development, and campaign execution across various platforms to support the Army's recruitment, public relations, and information dissemination objectives. Alignment with strategic goals would require reviewing the statement of work and performance metrics.
Given the 'Cost No Fee' structure, what mechanisms are in place to control costs and ensure the government receives fair value for the advertising services rendered?
The 'Cost No Fee' structure typically means the contractor is reimbursed for allowable costs but does not receive a fee. Oversight should focus on rigorous auditing of claimed costs to ensure they are reasonable, allocable, and allowable according to contract terms. Performance metrics and deliverables are key to ensuring value is achieved, even without a direct profit motive tied to cost efficiency.
How will the effectiveness of the advertising campaigns funded by this contract be measured and reported to ensure accountability for taxpayer funds?
Effectiveness measurement should be tied to pre-defined Key Performance Indicators (KPIs) outlined in the contract's Statement of Work. These could include metrics like reach, engagement, brand recall, lead generation (for recruitment), or public sentiment shifts. Regular reporting by the contractor and independent analysis by the Army contracting officer's representative are essential for accountability.
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: $87,406,995
Exercised Options: $87,406,995
Current Obligation: $86,360,358
Actual Outlays: $983,015
Subaward Activity
Number of Subawards: 11
Total Subaward Amount: $91,103,839
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: 2022-03-01
Current End Date: 2023-02-28
Potential End Date: 2023-02-28 00:00:00
Last Modified: 2025-07-28
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