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B-184648 1 (1975-12-03)

handle is hein.gao/gaobadrcl0001 and id is 1 raw text is: DIGE-ST -NO CIRCULATION COMPTROLLER GENERAL OF THE UNITED STATES 88 WAHINGTON, D.C. ZO46 1l84648 £2 DEC 3 1975' The Honorable BenJamin S. Rosenthal Chairum, Cotraerce, Consumer and monetary Affairs Subcortittee 4.i: omittee on Government Operations fouse of Representatives Dear Mr.* Chairmn: We refer to your letter dated July 31, 1975, requesting our Office to examine and report on the award of contract Mo. 5-36307 to the Advertising Council, Inc. (Ad Council), by the United States Department of Co~erce (Commerce). This con- trac wa exeute onJanuary 17, 1975, and it had the stated purpose of enhancing public understanding of the Aican E~~coaLlc C yetem througzh Viadi-c--mr,-- -'... * f nfo at~~ ednta- tional and corimncations merials suitable for use in a national mltie public service cxmpaign. TheAd Council Is a nonprofit organization sponsored by the advertising industry. It coiiducts various public nervica advertising campai utilizing the volmteer services of the advertisig industry and donated time and space from the cox- municatione and nevus media. The contract van a cost:-no-fee, type, in view of the Ad Council's nonprofit nmature. The January 17, 1975, contract wes a letter contract. A letter contract is a written pre- mlfnary contractual instruzent which zuthorites irn.diate con- tbancemant of * * * perforrz nce f services, Federal Procur=ent Rcadationo (ErR) I 1L-3.103(a)1564 ed.)q The contract, as initially executed, only obligated the Government in the anount of $100,000. The contract also provided that when the contract vas definitized, the resulting contract would have a maximwt cost not in excess of $150,000.

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