SpendQueryBeta

FAR and DFARS › FAR Part 5: Publicizing Contract Actions › Subpart 5.5

FAR 5.504 Use of advertising agencies.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section explains how agencies can use basic ordering agreements with advertising agencies to produce and place advertisements, especially when many ads will run in several publications and national media. It also addresses how commissions or discounts from media affect cost to the Government and what the agreement must say when media do not pay commissions. It matters because it sets the ground rules for getting advertising services at no extra cost or at a specified rate.

Applies to: Government contracting officers and advertising agencies under basic ordering agreements

What it requires

  • If the advertising agency agrees to place advertisements in noncommission-paying media as a no-cost service, the basic ordering agreement shall so provide.
  • If the advertising agency will not agree to place advertisements at no cost, the agreement shall provide that the Government may place orders directly with the media or specify an amount the Government will pay if the agency places the orders.

Key terms: basic ordering agreements · advertising agencies · commission · discount · noncommission-paying media

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) General. Basic ordering agreements may be placed with advertising agencies for assistance in producing and placing advertisements when a significant number will be placed in several publications and in national media. Services of advertising agencies include, but are not limited to, counseling as to selection of the media for placement of the advertisement, contacting the media in the interest of the Government, placing orders, selecting and ordering typography, copywriting, and preparing rough layouts.

(b) Use of commission-paying media. The services of advertising agencies in placing advertising with media often can be obtained at no cost to the Government, over and above the space cost, as many media give advertising agencies a commission or discount on the space cost that is not given to the Government.

(c) Use of noncommission-paying media. Some media do not grant advertising agencies a commission or discount, meaning the Government can obtain the same rate as the advertising agency. If the advertising agency agrees to place advertisements in noncommission-paying media as a no-cost service, the basic ordering agreement shall so provide. If the advertising agency will not agree to place advertisements at no cost, the agreement shall—

(1) Provide that the Government may place orders directly with the media; or

(2) Specify an amount that the Government will pay if the agency places the orders.

(d) Art work, supplies, and incidentals. The basic ordering agreement also may provide for the furnishing by the advertising agency of art work, supplies, and incidentals, including brochures and pamphlets, but not their printing. Incidentals may include telephone calls, and postage incurred by the advertising agency on behalf of the Government.

← 5.503 Procedures. · 5.601 Governmentwide database of contracts. →

Rule changes for FAR Part 5

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 5.504 Use of advertising agencies · SpendQuery