B-305368, Department of Education--Contract to Obtain Services of Armstrong Williams, September 30, 2005

B-305368 Sep 30, 2005 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights The Department of Education contracted to obtain commentary on the No Child Left Behind Act by Mr. Armstrong Williams, but took no steps to assure that its role in sponsoring that commentary was disclosed to the targeted audiences. This constituted covert propaganda in violation of the fiscal year 2004 publicity or propaganda prohibition found in the Consolidated Appropriations Act, 2004, Pub. L. No. 108-199, div. F, title VI, 624, 118 Stat. 3, 356 (Jan. 23, 2004). Because the Department of Education had no appropriations available to contract for covert propaganda in violation of the publicity or propaganda prohibitions found in Consolidated Appropriations Act, 2004, Pub. L. No. 108-199, div. F, title VI, 624, 118 Stat. 3, 356 (Jan. 23, 2004), the Department also violated the Antideficiency Act, 31 U.S.C. 1341. It must report these violations to the Congress and the President, and transmit a copy of that report to this Office. 31 U.S.C. 1351, as amended. View Decision B-305368, Department of Education--Contract to Obtain Services of Armstrong Williams, September 30, 2005 B-305368 September 30, 2005 The Honorable Frank R. Lautenberg The Honorable Edward M. Kennedy United States Senate Subject: Department of Education—Contract to Obtain Services of Armstrong Williams This responds to your letter of January 10, 2005, in which you asked that we consider the Department of Education's arrangements with Ketchum, Inc., and Mr. Armstrong Williams concerning the –No Child Left Behind— program. Your letter was prompted by some press reports about a Department of Education contract with Ketchum, Inc., and Ketchum subcontracts with the Graham Williams Group (GWG). Among other things, the press reports allege that pursuant to these arrangements, the Department paid Mr. Williams to promote the No Child Left Behind Act of 2001, Pub. L. No. 107'110, 115 Stat. 1425 (Jan. 8, 2002). You asked whether, in contracting for the services of Armstrong Williams, the Department violated the publicity or propaganda prohibition.[1] As explained below, we find that the Department contracted for Armstrong Williams to comment regularly on the No Child Left Behind Act without assuring that the Department's role was disclosed to the targeted audiences. This violated the publicity or propaganda prohibition for fiscal year 2004 because it amounted to covert propaganda. As a result of this violation, the Department also violated the Antideficiency Act, 31 U.S.C. sect. 1341. BACKGROUND Consistent with our usual practice, we requested factual information and the Department's legal justification for using appropriated funds to obtain the services provided by Mr. Williams and his company. Letter from Susan Poling, Managing Associate General Counsel, GAO, to Kent Talbert, Acting General Counsel, Department of Education, Jan. 28, 2005 (hereinafter, Poling Letter). The Department delayed its response to our request pending completion of work by the Inspector General (IG) on whether the Department's arrangements with Ketchum and GWG complied with the Federal Acquisition Regulation and other pertinent contract law. The IG issued his report on April 15, 2005. ED-OIG Report No. A19-F0007, April 15, 2005 (hereinafter, –ED-OIG Report—). The Department –accept[ed] the report as drafted and embrace[d] the recommendations— made in it. Letter from Margaret Spellings, Secretary, Department of Education, to John P. Higgins, Jr., Inspector General, Department of Education, Apr. 15, 2005. Subsequently, the Department's Acting General Counsel replied to our request. Letter from Kent Talbert, Acting General Counsel, Department of Education, to Susan Poling, Managing Associate General Counsel, GAO, May 18, 2005 (hereinafter, Talbert Letter). In determining the facts pertinent to this opinion, we relied upon the ED'OIG Report, the Acting General Counsel's reply, and the documents provided with them. The No Child Left Behind Act (NCLB Act) became law in January 2002. In order to disseminate information to the public about the NCLB Act, the Department decided to acquire media relations services. On May 14, 2003, the Department awarded Ketchum, Inc. (hereinafter, Ketchum) a 1-year –indefinite delivery, indefinite quantity— (IDIQ) contract, with three renewal options. ED-OIG Report at 8. Over time, the Department issued multiple task orders and work requests under the Ketchum contract. ED-OIG Report at 2. Two of those task orders were for the services of Armstrong Williams and his company, GWG. According to the IG report, Mr. Williams initially approached the Secretary of Education in March 2003 with an undated written proposal that the Graham Williams Group (GWG) do some work for the Department.[2] Id. at 5. Mr.