DoD Awards $125M Advertising Contract to DDB Chicago Inc. for Full and Open Competition
Contract Overview
Contract Amount: $125,137,131 ($125.1M)
Contractor: DDB Chicago Inc.
Awarding Agency: Department of Defense
Start Date: 2024-03-01
End Date: 2026-01-31
Contract Duration: 701 days
Daily Burn Rate: $178.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: FY24 DATA & PERFORMANCE
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60601
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $125.1 million to DDB CHICAGO INC. for work described as: FY24 DATA & PERFORMANCE Key points: 1. Significant contract value of $125.1M awarded. 2. Full and open competition indicates a competitive bidding process. 3. Cost Plus Fixed Fee contract type may pose cost control risks. 4. Advertising Agencies sector sees substantial federal investment.
Value Assessment
Rating: good
The $125.1M contract value for advertising services appears reasonable given the duration and scope. Benchmarking against similar large-scale federal advertising contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust process for soliciting bids and ensuring fair pricing. This method typically leads to better price discovery and value for the government.
Taxpayer Impact: The competitive nature of the award is expected to yield cost efficiencies, ultimately benefiting taxpayers by securing advertising services at a market-driven price.
Public Impact
Taxpayers benefit from competitive bidding on a large advertising contract. Department of Defense receives professional advertising services to support its mission. Potential for innovative advertising campaigns to reach target audiences effectively.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Contract duration of 701 days requires ongoing performance monitoring.
Positive Signals
- Awarded via full and open competition.
- Significant contract value may attract strong vendor performance.
Sector Analysis
The Department of Defense's investment in advertising agencies falls within the broader professional services sector. Federal spending in this area supports public outreach, recruitment, and information dissemination efforts.
Small Business Impact
The contract was awarded through full and open competition, and there is no indication of specific small business set-asides or participation in this award. Further analysis would be needed to determine if small businesses were subcontractors.
Oversight & Accountability
The Department of the Army's award through full and open competition suggests adherence to procurement regulations. Ongoing oversight will be crucial to ensure performance and cost control under the Cost Plus Fixed Fee structure.
Related Government Programs
- Advertising Agencies
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for scope creep without strict management.
- Reliance on contractor's cost estimation accuracy.
- Need for strong government oversight to ensure value.
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 $125.1 million to DDB CHICAGO INC.. FY24 DATA & PERFORMANCE
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 $125.1 million.
What is the period of performance?
Start: 2024-03-01. End: 2026-01-31.
What specific advertising objectives does this contract aim to achieve for the Department of the Army?
This contract likely supports a range of Department of the Army objectives, such as recruitment campaigns, public awareness initiatives, public service announcements, and promoting specific programs or policies. The specific goals would be detailed in the contract's statement of work, outlining target audiences, messaging strategies, and desired outcomes for each campaign.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type in this context?
The primary risk with CPFF is that the contractor may have less incentive to control costs, as their fee is fixed regardless of the final project cost. This can lead to cost overruns if not managed diligently. The government must implement robust oversight to monitor expenditures and ensure the contractor is operating efficiently and ethically.
How will the effectiveness of the advertising campaigns be measured and evaluated?
Effectiveness will likely be measured through a combination of metrics defined in the contract's performance work statement. This could include reach and frequency of advertisements, engagement rates (e.g., website visits, inquiries), conversion rates (e.g., enlistments, application submissions), brand sentiment analysis, and return on investment (ROI) calculations for specific campaigns.
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 PLUS FIXED FEE (U)
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: $180,783,872
Exercised Options: $126,411,730
Current Obligation: $125,137,131
Actual Outlays: $4,529,877
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $40,403,877
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: 2024-03-01
Current End Date: 2026-01-31
Potential End Date: 2027-01-31 00:00:00
Last Modified: 2025-09-30
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