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<classification authority="sudocs">GA 1.13:GGD-00-203</classification>
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 <subject>Advertising</subject>
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<titleInfo>
 <title>Federal Advertising Contracts: Agencies Have Discretion in</title>
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<abstract>Pursuant to a congressional request, GAO reviewed federal advertising
contracts awarded to advertising firms, focusing on: (1) the discretion
that federal agencies have in determining a contract&apos;s scope of work and
the contractor requirements for awarding advertising contracts; (2)
whether contractor requirements in the solicitations for contracts were
consistent with the scope of work described in the solicitations for the
advertising contracts with first-time obligations in fiscal years 1998
and 1999 that were awarded to large advertising firms through full and
open competition; and (3) whether there was required documentation for
the sole-source justification and approval for the advertising contracts
with first-time obligations in fiscal years 1998 and 1999 that were
awarded through sole-source procedures.&lt;p/&gt;GAO noted that: (1) while federal legislation and regulations prescribe
various steps to be taken and factors to be considered in establishing
contract requirements and selecting contractors, agencies have broad
discretion in establishing the scope of work and requirements for
prospective contractors; (2) this discretion may affect which
contractors realistically can bid on a contract and win the award; (3)
for example, if an agency determines that an advertising campaign must
be conducted nationwide to effectively meet the agency&apos;s work needs or
mission, then advertising firms without that capability would
effectively be eliminated from competition; (4) acquisition reforms give
contracting officers additional discretion in source selection; (5) for
example, the Clinger-Cohen Act of 1996 gives contracting officers the
authority to eliminate offerors by narrowing the range of offerors
considered to be competitive if a contracting officer deems that there
are too many offerors to evaluate efficiently; (6) in addition,
contracting officers can consider factors beyond price in determining
which offeror presents the best value; (7) legislation and regulations
encourage contracting officers to use this discretion in order to
satisfy agency requirements with regard to cost, quality, and timeliness
of delivered product or service while continuing to conduct business
with integrity, fairness, and openness; (8) the solicitations for the
advertising contracts with first-time obligations in fiscal years 1998
and 1999 that were awarded to large advertising firms through full and
open competition contained general evaluation criteria for prospective
contractors, such as consideration of past performance; (9) in addition,
every solicitation had more specific contractor requirements; (10) these
included such requirements as that the contractor be a full-service
advertising firm or have nationwide capability; (11) these specific
contractor requirements seemed to be consistent with the scope of work
requirements outlined in the solicitations; (12) for the 12 sole-source
contracts that received first-time obligations during fiscal years 1998
or 1999, the justifications were prepared, as required, by the procuring
agencies; and (13) also, all sole-source procurements had the required
approval at the appropriate level within the agencies.</abstract>
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<identifier type="preferred citation">GAO/GGD-00-203</identifier>
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<note>Letter Report</note>
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<subject>
 <topic>Advertising</topic>
 <topic>Solicitation specifications</topic>
 <topic>Federal procurement</topic>
 <topic>Sole source procurement</topic>
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<relatedItem type="isReferencedBy">
 <titleInfo>
  <title>United States Public Law 106 (104th Congress)</title>
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 <identifier type="public law citation">Public Law 104-106</identifier>
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