Pubdate: Fri,  5 Jul 2002
Source: Associated Press (Wire)
Copyright: 2002 Associated Press
Author: Matt Kelley, Associated Press

NAVY HIRES AGENCY FOR ANTI-DRUG ADS

WASHINGTON - An advertising agency criticized for overcharging the 
government for ineffective anti-drug ads has won a $152 million contract to 
run the ad program for at least another year.

New York-based Ogilvy & Mather was awarded the contract Wednesday, beating 
out four other bidders, the Navy said in a statement. The Navy handles 
contracting functions for the White House Office of National Drug Control 
Policy.

Ogilvy & Mather agreed to pay a $1.8 million penalty this year to settle 
charges it overcharged the drug policy office. Congressional investigators 
found last year that Ogilvy & Mather billed the government for millions of 
dollars of work it did not perform.

The advertising firm took steps to fix the problem and was not banned from 
getting future contracts, said Tom Riley, a spokesman for the drug policy 
office. Riley said Navy contract officials decided on their own that Ogilvy 
& Mather's past problems were not enough to keep it from getting the new 
contract.

No one was available to speak with a reporter at Ogilvy & Mather's New York 
offices Wednesday evening, said a security guard who answered the telephone 
there. A message left with the firm's Washington office on Wednesday was 
not immediately returned.

Ogilvy & Mather initially landed the anti-drug contract in 1998 in a deal 
that would have been worth nearly $700 million if it had been renewed for 
all of the contract's five years.

The drug policy office chose last year not to renew the Ogilvy & Mather 
contract for its final year, 2002.

The latest contract, which also includes four one-year extension options, 
would be worth $762 million over the full five years.

John P. Walters, director of the drug policy office, has repeatedly 
criticized the ad campaign, saying teen-agers were ignoring the ads. In 
May, he said the office would cancel the campaign if it was not effective.

A survey released in May also found no evidence the ads were discouraging 
drug use.

Instead, the survey charted an increase in drug use among some teen-agers 
who saw the television ads. But it noted that further analysis was 
necessary before the ads could be directly tied to the increase. The survey 
was conducted by the private research firm Westat and the University of 
Pennsylvania.

Riley said the ads will be refocused to be more hard-hitting and all will 
be tested before they run. An example of the new tone is a series of ads 
that link drug use to money for terrorists.

The portion of the ad campaign that seeks to help parents keep their 
children from using drugs has been successful, Riley said.

"We want to keep emphasizing the parts that are working," Riley said.

On the Net:

Office of National Drug Control Policy: http://www.whitehousedrugpolicy.gov
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