Government Contracting:

Contractor Promotional Advertising Costs Are Unallowable

NSIAD-90-52: Published: Apr 10, 1990. Publicly Released: Apr 13, 1990.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO reviewed: (1) Department of Defense (DOD) contractors' costs for advertising four weapon systems to increase public support; and (2) whether DOD contractors charged those advertising costs to their contracts.

GAO found that DOD contractors: (1) did not charge promotional advertising costs to government contracts; (2) properly charged advertising costs to corporate accounts and excluded those costs from any billing claim or proposal applicable to a government contract; (3) planned to spend approximately $2 million during 1989 advertising the four weapon systems; (4) planned to claim at least $1.4 million as deductible business expenses, in accordance with federal income tax regulations; and (5) had accounting systems in place that properly identified those expenses as unallowable.

Oct 12, 2017

Oct 11, 2017

Oct 10, 2017

Sep 29, 2017

Sep 28, 2017

Sep 27, 2017

Looking for more? Browse all our products here