Overview
FAR 5.503 establishes the administrative requirements and operational workflows for procuring paid advertisements, emphasizing small business participation, standardized documentation, and price controls.
Key Rules
- Placement & Socio-economic Goals: Orders may be placed directly with media outlets or through agencies, but Contracting Officers (COs) must provide maximum opportunity to all categories of small businesses (including SDB, WOSB, VOSB, HUBZone, and SDVOSB).
- Mandatory Forms: The SF 1449 must be used for paper-based solicitations and awards, except when using electronic commerce or the Governmentwide commercial purchase card for micro-purchases.
- Rate Limits: Under 44 U.S.C. 3703, the government cannot be charged more than the commercial rates offered to private individuals and must receive all standard discounts.
- Proof of Performance: Invoices must be accompanied by a "tear sheet" (copy of the ad) or an affidavit of publication/broadcast from the media provider.
- Payment Documentation: To process payment, the CO must attach the original written authority (required by FAR 5.502) to the invoice and proof of advertising.
Practical Implications
- Contracting Officers must verify that the government is receiving "most favored customer" pricing by ensuring rates do not exceed standard commercial individual rates.
- Administrative compliance is high; payment will be delayed or denied if the CO fails to provide both the physical proof of the advertisement and the specific written authorization required for the expenditure.