Anti-Drug Ad Contract Goes to Agency Punished for Overcharging July 8, 2002
News Summary
Ogilvy & Mather, the New York advertising agency that was punished for overcharging the government for its work on an anti-drug campaign, has won a contract to run the advertising program for another year, the Associated Press reported July 3.Ogilvy & Mather won the $152 million contract to handle the White House Office of National Drug Control Policy's anti-drug campaign. The agency's proposal beat out four other bidders.
Earlier this year, Ogilvy & Mather agreed to pay a $1.8 million penalty to settle claims it overcharged the drug-policy office. A congressional report revealed that the advertising firm billed the government for millions of dollars of work it didn't perform.
Because the ad agency took steps to fix the problem, government officials decided not to ban the firm from getting future contracts.
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