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. - --- MAP posted-by: Beth