Overview
This section outlines the procedures and conditions for using advertising agencies through Basic Ordering Agreements (BOAs) to assist the government in large-scale or national media placements. It specifically addresses how agencies are compensated through media commissions and the limitations on the types of services they can provide.
Key Rules
- Authorized Use: Basic Ordering Agreements may be used with advertising agencies when a significant number of advertisements are being placed across multiple publications or national media.
- Compensation via Commissions: When using commission-paying media, services are often obtained at no cost to the government because the media outlet provides the agency a discount or commission not available to the government.
- Noncommission-Paying Media: If a media outlet does not offer commissions, the agreement must specify if the agency will work for free, if the government will pay a specific fee, or if the government will bypass the agency and place orders directly.
- Scope of Services: Agencies may provide counseling, media selection, copywriting, and layout services.
- Incidentals and Artwork: Agencies may furnish artwork, brochures, and incidentals (like postage and telephone calls), but the regulation specifically prohibits the use of these agreements for the actual printing of materials.
Practical Implications
- Contracting Officers can achieve significant cost savings by leveraging industry-standard commission structures, effectively obtaining professional agency services for the price of the media space alone.
- To ensure compliance, procurement officials must clearly distinguish between creative/placement services and printing services, as the latter must be procured through separate channels.