DoD Awards $111.5M Advertising Contract to DDB Chicago Inc. for Army Services
Contract Overview
Contract Amount: $111,551,323 ($111.6M)
Contractor: DDB Chicago Inc.
Awarding Agency: Department of Defense
Start Date: 2024-11-16
End Date: 2026-06-30
Contract Duration: 591 days
Daily Burn Rate: $188.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: MEDIA ODE- ACTIVE
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60604
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $111.6 million to DDB CHICAGO INC. for work described as: MEDIA ODE- ACTIVE Key points: 1. Significant contract value of $111.5 million awarded. 2. DDB Chicago Inc. is the sole awardee for this delivery order. 3. Contract duration spans 591 days, ending June 30, 2026. 4. The contract falls under the Advertising Agencies sector (NAICS 541810).
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar advertising contracts is difficult without more detailed scope information.
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, this is a delivery order, and the specifics of the competition for this particular order are not detailed.
Taxpayer Impact: Taxpayer funds are being used for advertising services. The effectiveness of the campaign and the value for money will determine the ultimate taxpayer impact.
Public Impact
Public funds allocated for advertising services for the Department of the Army. Potential for increased visibility and public engagement with Army initiatives. Contract performance will be monitored by the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Limited transparency on specific performance metrics and expected outcomes.
- Potential for scope creep given the nature of advertising campaigns.
Positive Signals
- Awarded under full and open competition.
- Experienced contractor likely to deliver quality services.
- Clear end date for contract performance.
Sector Analysis
The advertising sector is highly competitive and dynamic. This contract represents a significant investment in marketing and communication for the Department of the Army, aligning with typical government needs for public outreach and recruitment.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The Department of Defense is responsible for overseeing this contract. Standard oversight mechanisms for delivery orders and cost-plus contracts should be in place to ensure proper execution and financial accountability.
Related Government Programs
- Advertising Agencies
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for cost overruns.
- Lack of detailed performance metrics in provided data.
- No explicit mention of small business utilization.
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 $111.6 million to DDB CHICAGO INC.. MEDIA ODE- 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 $111.6 million.
What is the period of performance?
Start: 2024-11-16. End: 2026-06-30.
What specific advertising objectives does this contract aim to achieve for the Department of the Army, and how will success be measured?
The contract likely aims to support various Army initiatives, such as recruitment, public awareness campaigns, or specific program promotion. Success will be measured through key performance indicators (KPIs) related to campaign reach, engagement, message recall, and potentially conversion rates for recruitment. Detailed metrics should be outlined in the contract's statement of work and performance standards.
What are the primary risks associated with a Cost Plus Fixed Fee contract for advertising services, and how are they mitigated?
The primary risk is that the contractor may not be incentivized to control costs, potentially leading to expenditures exceeding initial estimates. Mitigation strategies include robust oversight, clear definition of allowable costs, regular performance reviews, and potentially incentive fee structures tied to cost savings or performance targets. The fixed fee component provides some cost certainty for the government.
How does the selection of DDB Chicago Inc. ensure effective and efficient use of taxpayer funds for Army advertising needs?
The selection process, presumably through full and open competition, suggests that DDB Chicago Inc. was chosen based on its qualifications, experience, and proposed approach. Assuming a competitive bid, their selection implies they offered the best value proposition. Effective use of funds will depend on their ability to deliver impactful campaigns within the agreed-upon cost structure and achieve the Army's communication goals.
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: $111,551,323
Exercised Options: $111,551,323
Current Obligation: $111,551,323
Actual Outlays: $25,103,077
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $111,570,010
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: 2024-11-16
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-09-18
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