DoD Awards $31M Contract to DDB Chicago for Army Contact Center Operations

Contract Overview

Contract Amount: $31,069,998 ($31.1M)

Contractor: DDB Chicago Inc.

Awarding Agency: Department of Defense

Start Date: 2025-07-01

End Date: 2026-06-30

Contract Duration: 364 days

Daily Burn Rate: $85.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDES CORE OPERATIONS, GOARMY CONTACT CENTER (GACC)/LEAD OPS AND SERVICE CONTRACT REPORTING

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60604

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $31.1 million to DDB CHICAGO INC. for work described as: PROVIDES CORE OPERATIONS, GOARMY CONTACT CENTER (GACC)/LEAD OPS AND SERVICE CONTRACT REPORTING Key points: 1. Contract value of $31.1M for core operations and contact center services. 2. Awarded via full and open competition, indicating a competitive market. 3. Potential risk associated with reliance on a single vendor for critical functions. 4. Services fall under advertising and related professional services sector.

Value Assessment

Rating: good

The contract value of $31.1M for a 364-day period appears reasonable given the scope of providing core operations and contact center services for the Army. Benchmarking against similar large-scale contact center support contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive award process is expected to yield fair pricing, maximizing the value of taxpayer funds allocated for these essential Army operations.

Public Impact

Ensures continuity of essential Army contact center operations and service reporting. Supports communication channels for Army personnel and potentially the public. Impacts the efficiency and effectiveness of Army administrative and support functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Vendor lock-in potential if performance is consistently good.
Dependence on a single vendor for critical communication infrastructure.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract type controls cost.
Clear performance period with defined end date.

Sector Analysis

This contract falls within the advertising and related professional services sector, specifically for operational support. Spending benchmarks in this area vary widely based on the complexity and scale of services required.

Small Business Impact

The contract was awarded via full and open competition, and there is no indication of specific set-asides for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm fixed price structure provides a degree of cost control, and performance will be monitored against contract requirements.

Related Government Programs

Advertising Agencies
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for vendor lock-in.
Reliance on a single vendor for critical communication.
Scope of 'core operations' is not fully defined.
No explicit mention of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.1 million to DDB CHICAGO INC.. PROVIDES CORE OPERATIONS, GOARMY CONTACT CENTER (GACC)/LEAD OPS AND SERVICE CONTRACT REPORTING

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 $31.1 million.

What is the period of performance?

Start: 2025-07-01. End: 2026-06-30.

What is the specific scope of 'core operations' and 'lead ops' to fully assess value?

The term 'core operations' and 'lead ops' is broad. A detailed understanding of the specific functions, technologies, and personnel involved in the GoArmy Contact Center (GACC) is crucial. This includes call volume, types of inquiries handled, reporting requirements, and any associated IT infrastructure management to accurately benchmark the $31.1M against industry standards for similar government or commercial contact center operations.

What are the key performance indicators (KPIs) for this contract and how will they be measured?

Key Performance Indicators (KPIs) are essential for measuring the effectiveness of the GACC operations. These likely include metrics such as average call handling time, first call resolution rate, customer satisfaction scores, and adherence to service level agreements. Robust measurement and reporting of these KPIs will be critical for ensuring the contractor meets its obligations and for assessing the overall value and impact of the services provided to the Department of the Army.

Are there any contingency plans or transition strategies in place if DDB Chicago's performance falters?

Given the critical nature of contact center operations, contingency plans and transition strategies are vital. The government should have protocols for addressing underperformance, including potential corrective actions or termination clauses. Furthermore, a plan for transitioning services to another vendor or in-house team, should the need arise, would mitigate disruption and ensure continuity of essential Army communication functions.

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: W9124D25R187U

Pricing Type: FIRM FIXED PRICE (J)

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: $31,069,998

Exercised Options: $31,069,998

Current Obligation: $31,069,998

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