Overview
FAR Subpart 5.5 prescribes the policies and procedures for the procurement of paid advertisements in newspapers, magazines, trade journals, and broadcast media (radio and television). It establishes specific authorization requirements, payment procedures, and guidelines for utilizing advertising agencies to ensure the government receives commercial rates and promotes small business participation.
Key Rules
- Newspaper Authorization: Written authorization from the agency head (or a delegated official) is mandatory before placing any paid advertisement in a newspaper.
- Other Media Authorization: Advance written authorization is generally not required for media other than newspapers (e.g., radio, TV, or magazines) unless specifically required by an agency head.
- Rate Limits: The government cannot be charged more than the commercial rate offered to private individuals for the same space or airtime, including all applicable discounts.
- Mandatory Documentation: Every invoice for advertising must be accompanied by proof of the advertisement, such as a "tearsheet" (the actual page), an affidavit of publication from the publisher, or a statement from the broadcaster.
- Standard Forms: Contracting officers must use the SF 1449 (Solicitation/Contract/Order for Commercial Products and Commercial Services) for paper solicitations and orders, unless using electronic commerce or the Governmentwide commercial purchase card for micro-purchases.
- Small Business Participation: Contracting officers are required to provide maximum opportunity for small, disadvantaged, women-owned, veteran-owned, and HUBZone businesses to participate in advertising acquisitions.
Responsibilities
- Agency Head: Responsible for approving the use of newspaper advertisements (though this authority is frequently delegated).
- Contracting Officer (CO):
- Obtaining written authorization prior to newspaper placement.
- Ensuring small business concerns are considered.
- Selecting the appropriate solicitation method (SF 1449 or electronic).
- Verifying that rates do not exceed commercial standards.
- Attaching written authority to invoices and submitting them for payment.
- Paying Office: Responsible for retaining the proof of advertising until the Government Accountability Office (GAO) settles the account.
- Advertising Agencies (when used): Providing services such as media selection, copywriting, typography, and rough layouts; they may also provide artwork and incidentals.
Practical Implications
- Administrative Friction for Print: The requirement for written authorization specifically for newspapers (rooted in 44 U.S.C. 3702) creates a higher administrative burden for print news compared to digital or broadcast media. COs must plan further ahead for print campaigns to ensure the paperwork trail is established before the ad runs.
- Cost Efficiency via Agencies: Utilizing advertising agencies can be highly cost-effective for the government. Since many media outlets offer agencies a commission (discount) not available to the government directly, the government can often receive professional agency services (layout, copywriting) "at no cost" by paying the standard media space rate.
- Audit Readiness: The "Proof of Advertising" requirement is a common point of failure in audits. If a CO or Program Manager loses the copy of the ad or the affidavit from the station, the invoice cannot be legally paid, leading to vendor disputes.
- Exclusion of Printing: It is important to note that while an advertising agency can provide "artwork and incidentals," they are generally prohibited from providing the actual printing services under these agreements, as government printing is strictly regulated by other parts of the FAR and the Government Publishing Office (GPO).