5.503 Procedures
Source: FAR 5.503 on acquisition.gov
FAR 5.503 requires contracting officers to maximize small business participation, use proper forms, ensure commercial rates, and retain proof of advertising for all paid advertisements.
Overview
FAR 5.503 outlines the procedures for placing, documenting, and paying for paid advertisements by the federal government. It details how contracting officers should place orders, the required forms, acceptable payment rates, documentation requirements, and payment processes. The regulation emphasizes maximizing opportunities for small and disadvantaged businesses and ensuring proper documentation and retention of advertising proofs for audit purposes.
Key Rules
- Order Placement and Small Business Participation
- Orders for paid advertisements can be placed directly with media or through agencies, and contracting officers must maximize opportunities for small and disadvantaged businesses.
- Solicitation and Award Forms
- Use SF 1449 for paper solicitations and awards unless using electronic commerce or purchase cards for micropurchases.
- Payment Rates
- Payment for advertisements must not exceed commercial rates charged to private individuals, including standard discounts.
- Proof of Advertising
- Invoices must be accompanied by a copy of the advertisement or an affidavit of publication, which must be retained until accounts are settled by the GAO.
- Payment Procedures
- Contracting officers must attach written authority to the invoice and process payment according to agency procedures.
Responsibilities
- Contracting Officers: Ensure small business participation, use correct forms, verify rates, collect and retain proof, and process payments with proper documentation.
- Contractors: Provide required proof of advertising with invoices.
- Agencies: Retain documentation for audit and follow payment procedures.
Practical Implications
This section ensures transparency, fairness, and accountability in government advertising purchases. It impacts daily contracting by requiring strict documentation, adherence to commercial pricing, and support for small businesses. Common pitfalls include missing documentation, overpayment, or failure to maximize small business participation.
(a) General.
(1) Orders for paid advertisements may be placed directly with the media or through an advertising agency. Contracting officers shall give small, small disadvantaged, women-owned, veteran-owned, HUBZone, and service-disabled veteran-owned small business concerns maximum opportunity to participate in these acquisitions.
(2) The contracting officer shall use the https://www.gsa.gov/forms-library/solicitationcontractorder-commercial-items" target="_blank">SF 1449 for paper solicitations. The https://www.gsa.gov/forms-library/solicitationcontractorder-commercial-items" target="_blank">SF 1449 shall be used to make awards or place orders unless the award/order is made by using electronic commerce or by using the Governmentwide commercial purchase card for micropurchases.
(b) Rates. Advertisements may be paid for at rates not over the commercial rates charged private individuals, with the usual discounts (44 U.S.C. 3703).
(c) Proof of advertising. Every invoice for advertising shall be accompanied by a copy of the advertisement or an affidavit of publication furnished by the publisher, radio or television station, or advertising agency concerned (44 U.S.C. 3703). Paying offices shall retain the proof of advertising until the Government Accountability Office settles the paying office’s account.
(d) Payment. Upon receipt of an invoice supported by proof of advertising, the contracting officer shall attach a copy of the written authority (see 5.502(a)) and submit the invoice for payment under agency procedures.