Pubdate: Fri, 24 Aug 2001
Source: Wall Street Journal (US)
Section: Pg B8
Copyright: 2001 Dow Jones & Company, Inc.
Contact:  http://www.wsj.com/
Details: http://www.mapinc.org/media/487

U.S. ANTIDRUG OFFICE WILL REBID AD CONTRACT

NEW YORK -- Questionable billing on a high-profile antidrug advertising 
campaign has the government searching for an agency to replace Ogilvy & 
Mather Worldwide, a unit of WPP Group PLC of London.

The White House Office of National Drug Control Policy intends to rebid its 
advertising contract with Ogilvy next month to restore confidence in the 
integrity of its public-health campaign. Recently, Rep. Bob Barr (R., Ga.) 
asked President Bush to fire Ogilvy amid a criminal investigation of 
questionable billing practices by the agency.

The antidrug office hasn't gone that far: Ogilvy hasn't been ruled out as a 
potential winner of the rebid. "We are resoliciting the contract to open it 
to fair competition," a spokeswoman for the antidrug office said.

An Ogilvy spokesman said the campaign was successful and cost-effective, 
and said the agency's estimate of the overbilling comes to less than 
$850,000. He cited Congressional pressure for prompting the antidrug office 
to rebid the contract.

The antidrug office spends several hundred million dollars a year to 
broadcast and place ads. Overbilling by Ogilvy surfaced during the past 
year, and was referred to the U.S. attorney for the Southern District of 
New York in June for potential criminal and civil violations.

Ogilvy won the five-year contract to handle media placement of the ads 
three years ago because it was the lowest bidder. But the contract includes 
an option for the government to cancel the deal with Ogilvy, which receives 
a guaranteed profit of $1.6 million a year.

The antidrug office recently met with nearly two dozen advertising 
consultants and executives at rival agencies to discuss the terms of its 
deal with Ogilvy. Among its findings was the fact that other shops might be 
willing to perform the same service at a lower cost.

Rep. Barr is continuing his push to have Ogilvy fired immediately.
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