[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR5.504]

[Page 92]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 5_PUBLICIZING CONTRACT ACTIONS--Table of Contents
 
                     Subpart 5.5_Paid Advertisements
 
Sec.  5.504  Use of advertising agencies.

    (a) General. Basic ordering agreements may be placed with 
advertising agencies for assistance in producing and placing 
advertisements when a significant number will be placed in several 
publications and in national media. Services of advertising agencies 
include, but are not limited to, counseling as to selection of the media 
for placement of the advertisement, contacting the media in the interest 
of the Government, placing orders, selecting and ordering typography, 
copywriting, and preparing rough layouts.
    (b) Use of commission-paying media. The services of advertising 
agencies in placing advertising with media often can be obtained at no 
cost to the Government, over and above the space cost, as many media 
give advertising agencies a commission or discount on the space cost 
that is not given to the Government.
    (c) Use of noncommission-paying media. Some media do not grant 
advertising agencies a commission or discount, meaning the Government 
can obtain the same rate as the advertising agency. If the advertising 
agency agrees to place advertisements in noncommission-paying media as a 
no-cost service, the basic ordering agreement shall so provide. If the 
advertising agency will not agree to place advertisements at no cost, 
the agreement shall (1) provide that the Government may place orders 
directly with the media, or (2) specify an amount that the Government 
will pay if the agency places the orders.
    (d) Art work, supplies, and incidentals. The basic ordering 
agreement also may provide for the furnishing by the advertising agency 
of art work, supplies, and incidentals, including brochures and 
pamphlets, but not their printing. Incidentals may include telephone 
calls, telegrams, and postage incurred by the advertising agency on 
behalf of the Government.