DoD Awards $142M Advertising Contract to DDB Chicago for 1-Year Delivery Order
Contract Overview
Contract Amount: $141,974,257 ($142.0M)
Contractor: DDB Chicago Inc.
Awarding Agency: Department of Defense
Start Date: 2023-09-25
End Date: 2024-09-24
Contract Duration: 365 days
Daily Burn Rate: $389.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
Sector: Other
Official Description: UPFRONT MEDIA - ACTIVE
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60604
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $142.0 million to DDB CHICAGO INC. for work described as: UPFRONT MEDIA - ACTIVE Key points: 1. Significant contract value for advertising services. 2. Full and open competition indicates a competitive market. 3. Potential for cost savings through competitive bidding. 4. Focus on advertising agencies suggests marketing and outreach needs.
Value Assessment
Rating: good
The contract's total value is $141,974,256.58. Without specific per-unit cost data or benchmarks for similar advertising agency contracts, a precise value assessment is difficult. However, the large sum suggests substantial service delivery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. This method typically fosters price discovery and can lead to more competitive pricing.
Taxpayer Impact: The competitive nature of this award is likely to benefit taxpayers by ensuring fair market pricing for advertising services.
Public Impact
Taxpayers benefit from competitive bidding on a large advertising contract. The Department of Defense is investing in advertising, potentially for recruitment or public awareness campaigns. The contract duration of one year allows for flexibility and reassessment of needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in large advertising contracts.
- Measuring ROI for advertising campaigns can be challenging.
Positive Signals
- Full and open competition ensures market competitiveness.
- Clear contract award with defined start and end dates.
Sector Analysis
The advertising industry is dynamic, with agencies competing for large government contracts. This award falls within the professional, scientific, and technical services sector, specifically advertising. Benchmarks for similar large-scale government advertising contracts would provide further context.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The award process under full and open competition suggests a degree of oversight. However, ongoing monitoring of performance, deliverables, and adherence to budget will be crucial for accountability.
Related Government Programs
- Advertising Agencies
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of specific performance metrics.
- Potential for difficulty in measuring advertising ROI.
- Cost-plus nature requires strong oversight.
- No indication of small business participation.
Tags
advertising-agencies, department-of-defense, il, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $142.0 million to DDB CHICAGO INC.. UPFRONT MEDIA - ACTIVE
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 $142.0 million.
What is the period of performance?
Start: 2023-09-25. End: 2024-09-24.
What specific advertising services are included in this $142 million contract, and how do they align with the Department of Defense's strategic communication goals?
The contract details do not specify the exact advertising services. However, given the agency type (541810 - Advertising Agencies), it likely encompasses strategy development, media planning and buying, creative content production (e.g., digital ads, print, video), and campaign analysis. These services would typically support the DoD's objectives such as recruitment, public information, and maintaining public trust.
What are the key performance indicators (KPIs) for this contract, and how will the effectiveness of the advertising campaigns be measured to ensure taxpayer value?
Key performance indicators are not explicitly detailed in the provided data. Effective measurement would likely involve tracking metrics such as reach, engagement rates, conversion rates (e.g., enlistments), brand sentiment, and cost per acquisition. The DoD should establish clear KPIs and require regular reporting from DDB Chicago to assess campaign effectiveness and justify the significant expenditure.
Given the substantial value, what mechanisms are in place to ensure cost control and prevent potential overruns or inefficiencies throughout the contract's duration?
While awarded under full and open competition, which aids in initial price discovery, ongoing cost control is vital. Mechanisms should include detailed budget reviews, milestone-based payments tied to deliverables, regular performance reviews assessing efficiency, and clear change order processes. The contract type 'COST NO FEE' suggests the government bears the cost, making vigilant oversight paramount.
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: $141,974,257
Exercised Options: $141,974,257
Current Obligation: $141,974,257
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $99,533,010
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: 2023-09-25
Current End Date: 2024-09-24
Potential End Date: 2024-09-24 00:00:00
Last Modified: 2024-03-27
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