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LCD-77-448 1 (1977-09-19)

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                         DrCUMENT PES   /

03391- P 2 E3827    a 71 es±nlr20

(Advertiking Expenditures in Black-Owned Media]. LCD-77-48;
B-144618. September 19, 1977. 3 pp. + 10 enclosures (37 pp.).

Peport to Rep. William L. Clay; by Werner Grosshans (for Fred J.
Shafer, Director, Logistics and Communicatioiis Div.).

issue Area: Federal Procurement of Goods and Services (1900).
Contact: Logistics and Communications Div.
Budget Function: Miscellaneous: Financial Management and
    Information Systems (1002).
Organizaticn Ccncerned: Department of Depfense; Department of
    Transportation; Department of the Treasury; Postal Service;
    Department of Housing dnd Urban Development.
C-ngressional Relevance: Rep. William L. Clay.
Authority: HUD Handbook 2210.15. DOT Order 4000.7.

         A review of. five Federal agencies provided data on
radio, television, newspaper, and magazine advertising services
purchased fzcm ouiside sources and the amount of advertising
spent in black-owned enterprises. The agencies reviewed were
Defense, Housing and Urban Development, Postal Service,
TLansp'rtation, and Treasury. Findings/Conclusions: The data
provided by the agencies on expenditures in black-owned media
enterprises were not audited for accuracy. 1otal advertising
costs for the agencies were taken from a 1975 General Accounting
Office report. A precise relationship cannot be made between
black-ovned and tctal procurements because the total procurement
figures are for earlier years. Three of the agencies (Housing
and Urban Development, Transportation, and Treasury) appear to
have policies of giving special attention to minority
enterprises. The Department of Transportation's applicable
regulation states that this extra consideration may be extended
if, as a result, there is some increased cost to Department
programs. The approach of Defense and Postal Service is to make
advertising procurements based cn cost effectiveness without
regard to enterprise ownership. (3W)