DoD Awards $89.1M Task Order for Local Marketing and Operational Infrastructure to DDB Chicago
Contract Overview
Contract Amount: $89,109,864 ($89.1M)
Contractor: DDB Chicago Inc.
Awarding Agency: Department of Defense
Start Date: 2024-11-16
End Date: 2025-11-15
Contract Duration: 364 days
Daily Burn Rate: $244.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: FY25 LOCAL MARKETING, SOCIAL & EARNED MEDIA, AND OPERATIONAL INFRASTRUCTURE TASK ORDER.
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60601
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $89.1 million to DDB CHICAGO INC. for work described as: FY25 LOCAL MARKETING, SOCIAL & EARNED MEDIA, AND OPERATIONAL INFRASTRUCTURE TASK ORDER. Key points: 1. Significant award for marketing and operational support services. 2. Competition was full and open, indicating a competitive bidding process. 3. Potential risk associated with cost-plus fixed-fee contract type. 4. Spending aligns with advertising agency sector benchmarks.
Value Assessment
Rating: good
The contract is a Cost Plus Fixed Fee type, which can lead to higher costs if not managed closely. The award amount is substantial for a one-year task order.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically yields competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for essential marketing and operational support, with the expectation of value derived from competitive bidding.
Public Impact
Supports Department of the Army's marketing and communication efforts. Task order duration is one year, with potential for follow-on work. DDB Chicago, a well-established agency, will perform the work.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Potential for scope creep in marketing and operational tasks.
Positive Signals
- Full and open competition ensures market-based pricing.
- Experienced contractor selected for critical support functions.
Sector Analysis
The advertising agencies sector (NAICS 541810) encompasses firms that create and place advertising. Spending in this sector is driven by agency needs for campaigns, media buys, and creative development. This award falls within typical contract values for large-scale marketing initiatives.
Small Business Impact
This contract was awarded to DDB Chicago Inc., a large business. There is no indication of small business participation in this specific task order.
Oversight & Accountability
The Department of Defense's oversight mechanisms will be crucial in managing the Cost Plus Fixed Fee contract to ensure cost efficiency and prevent overspending.
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.
- Lack of small business participation.
- One-year duration may limit long-term impact.
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 $89.1 million to DDB CHICAGO INC.. FY25 LOCAL MARKETING, SOCIAL & EARNED MEDIA, AND OPERATIONAL INFRASTRUCTURE TASK ORDER.
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 $89.1 million.
What is the period of performance?
Start: 2024-11-16. End: 2025-11-15.
What is the expected return on investment for this marketing and operational infrastructure spending?
The return on investment (ROI) for this task order is not explicitly defined in the provided data. However, the spending is intended to support the Department of the Army's objectives through enhanced marketing, social media presence, and operational efficiency. Measuring ROI would require tracking key performance indicators related to campaign effectiveness, public engagement, and operational improvements over the contract period.
What are the primary risks associated with the Cost Plus Fixed Fee contract type in this context?
The primary risks with a Cost Plus Fixed Fee (CPFF) contract are that the government may pay more than necessary if the contractor's costs are higher than anticipated, and there's less incentive for the contractor to control costs aggressively compared to fixed-price contracts. For marketing and operational infrastructure, this could lead to budget overruns if project scopes are not tightly managed or if unforeseen expenses arise.
How effectively will this contract enhance the Department of the Army's operational infrastructure and public outreach?
The effectiveness of this contract hinges on the execution by DDB Chicago and the clarity of the Army's objectives. The award aims to improve local marketing, social media engagement, and operational infrastructure. Success will be measured by the contractor's ability to deliver impactful campaigns, manage digital presence, and streamline operations, ultimately contributing to the Army's mission and public perception.
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: W9124D24R0083
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: $91,711,384
Exercised Options: $91,711,384
Current Obligation: $89,109,864
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $88,864,368
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: 2025-11-15
Potential End Date: 2025-11-15 00:00:00
Last Modified: 2026-01-15
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