Bush Administration Spent more than $1.6 Billion on Media Contracts

February 15, 2006 9:33 AM |

According to a new report released on Monday, the Bush administration spent more than $1.6 billion on media contracts in the past two and a half years. The report, prepared by the federal Government Accountability Office (GAO), was commissioned by House Democrats after it was revealed last year that the Bush administration hired public relations firms to produce “covert propaganda” in the form of video news releases and paid commentators promoting Bush administration policies on television. Among the report’s findings:

  • Over two and a half years, the Bush Administration spent more than $1.6 billion in taxpayer dollars on 343 contracts with public relations firms, advertising agencies, media organizations, and individual members of the media.
  • The Administration spent $1.4 billion on 137 contracts with advertising agencies, $197 million on 54 contracts with public relations firms, $15 million on 131 contracts with media organizations, and almost $100,000 on eight contracts with individual members of the media.
  • $50 million worth of media spending, on 76 contracts, was not awarded through the competitive bidding process.
  • The six biggest recipients of these contracting dollars were Leo Burnett USA Inc. ($536 million), Campbell-Ewald Company ($194 million), GSD&M ($179 million), J. Walter Thompson Company ($148 million), Frankel & Company ($133 million), and Ketchum Inc ($78 million). Together, these six companies received more than $1.2 billion in media contracts.
  • The Department of Defense spent the most on these media contracts, with contracts worth $1.1 billion. The Department of Health and Human Services spent more than $300 million on these contracts, the Department of Treasury spent $152 million, and the Department of Homeland Security spent $24 million during this period.

It is also worth noting that while the GAO data is instructive, it is also incomplete. The GAO relied entirely on self-reported data and as such, only surveyed seven of the 15 cabinet-level departments and did not survey independent agencies.

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