Microsoft Word - Chapter 6 Rewrite (Final Draft of 20 March).docx

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Chapter 6

COMMERCIAL SPONSORSHIP AND ADVERTISING

Ref: (a) DoD Instruction 1015.10 of 06 Jul 09

(b) OPNAVINST 5380.1B

(d) DoD Instruction 5120.4 16 June 1997

(e) DoD 7000.14-R, Department of Defense Financial

Management Regulation of February 2011

(f) DoD Instruction 1344.07 of 30 March 2006

(g) SECNAVINST 1740.2E

(h) CNO WASHINGTON DC 032305Z May 06 (NAVDMIN 128/06)

(i) DoD Instruction 1015.15 of 31

October 2007

(j) SECNAVINST 11011.47B

(k) DoD Instruction 5410.19 of 13 Nov 01

(l) SECNAVINST 5720.44B

601. Commercial Sponsorship

a. Commercial sponsorship is a contractually based

arrangement in which various types of sponsor recognition is

provided in exchange for financial or in-kind consideration.

Within the Department of Defense (DoD), only MWR activities can

enter into and conduct commercial sponsorships. Commercial

sponsorships can take a number of different forms but they

generally consist of providing Navy MWR with financial

assistance through funding, goods, equipment and services, or

any combination thereof, by an individual, agency, association,

company, corporation or other non-Federal entity (NFE) for a

specific limited period of time in exchange for public

recognition, promotional tie-ins and advertising opportunities

of commensurate value. Through a commercial sponsorship

program, MWR activities are able to offer additional, unbudgeted

events or enhancements to previously scheduled MWR events that

otherwise would not be possible. Reference (a) sets forth DoD

policy for the military MWR Commercial Sponsorship Program.

b. Commercial sponsorship agreements may not include

provisions that allow sponsors to directly solicit, conduct or

negotiate sales or engaging in discussions regarding any terms

or conditions regarding the purchase of products or services at

MWR events and facilities. Such direct sales activity may not

be included in a commercial sponsorship agreement. Any

arrangement that authorizes the sale of items must be set out in

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a concession contract even if the concession contractor is also

a sponsor.

c. Commercial sponsorship agreements are not the proper

contractual vehicle for providing access to or use of Navy

installations or facilities and sponsorship agreements may not

contain provisions related to such use or access. Further, they

may not contain clauses which obligate the Navy to provide

logistic support to the sponsor (other than access, use and

logistic support directly related to the act of performing

sponsorship activity). Real estate access and use licenses are

the proper tools for granting non-federal entities access and

use of Navy installations and facilities.

d. Commercial sponsorship does not include volunteer work

or activities, or outright donations where no volunteer or donor

recognition or acknowledgment is expected or required (see

reference (b)).

e. Commercial sponsorship does not include or refer to

those products and services considered to be gifts considered

and processed by the Navy per reference (c) or those items

considered to be premiums, coupons or limited samples through an

authorized MWR marketing campaign.

602. Authority to Conduct Commercial Sponsorship

a. Only Navy military MWR may enter into a commercial

sponsorship agreement, accept commercial sponsor benefits or

otherwise perform commercial sponsorship activity unless a

specific exception or waiver is granted per reference (a),

enclosure (11). Commercial sponsorships may be either

unsolicited or solicited and all sponsorship solicitations shall

be made by the region or installation MWR director or a

designated MWR sponsorship coordinator. All aspects of the

commercial sponsorship program shall be administered and

conducted by the MWR activity’s designated commercial

sponsorship coordinator except where the MWR director has

appointed others to solicit sponsorships on behalf of the MWR

program.

b. Commercial sponsorships may not be solicited, accepted

or performed in any way on government property by any official

command or activity, civilian MWR activities, private

organizations and non-federal entities to include, but not

limited to, Navy Ball Committees, special interest clubs or

associations, the Navy League, USO, etc. Commercial sponsorship

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is not authorized for fundraising events or other events hosted

by or for any of the above referenced entities while operating

on Navy installations or property. Navy MWR may not partner,

sell, lease, franchise or otherwise authorize others to perform

any aspect of commercial sponsorship not authorized by this

instruction.

c. Limited sponsor recognition in the following

circumstances does not constitute commercial sponsorship and is

permissible:

(1) Contracted Entertainment. Frequently, entertainment

acts that are booked either by MWR or others to appear on an

installation are financially supported by sponsors and have pre-

existing contractual obligations that require the act to

recognize their sponsors whenever and wherever they perform.

The existence of these pre-existing and outside sponsor

agreements serve to reduce the cost of booking the act and can

benefit the MWR program. Sponsor recognition in these

situations does not constitute a prohibited performance of

commercial sponsorship by non-MWR entities and is permissible

when it: (1) is passive in nature (limited to signage or print

only and does not include sponsor-manned booths or personal or

verbal interaction with those in attendance); (2) does not

violate any existing Navy MWR or Navy Exchange (NEX) agreements;

and, (3) is limited to the event venue.

(2) Sponsor Recognition During Authorized Use of Navy

Facilities. Non-federal entities (to include private

organizations), frequently use Navy facilities for private

events for their members. Examples include such things as local

Chambers of Commerce use of MWR facilities for meetings or the

Navy League’s use of golf facilities for private golf outings.

Navy MWR can financially benefit from these transactions.

Sponsor recognition in these situations does not constitute a

prohibited performance of commercial sponsorship by non-MWR

entities and is permissible when: (1) the event is intended for

the members of the NFE or private organization and is not open

for general attendance by authorized MWR patrons; and (2) all

sponsorship recognition is passive in nature (limited to

signage, print or podium recognition only) and is aimed only at

event attendees and is limited to the event venue. It is both

possible and permissible for the NFE or private organization to

have individual members who are also authorized patrons of MWR.

Their attendance at the event is considered to be as members of

the NFE or private organization and has no effect on this rule.

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(3) Public Affairs. Per reference (d), the naming of MWR

sponsors as part of news broadcasts, newspaper articles, press

releases and other public announcements regarding an event is

not considered commercial sponsorship and is authorized.

Commercial sponsors of Armed Forces Professional Entertainment

program events and MWR events may be mentioned routinely with

other pertinent facts in news stories and announcements in DoD

newspapers and other news releases. Further, Armed Forces Radio

and Television Service (AFRTS) outlets may mention the name of a

commercial sponsor, along with other pertinent facts, in news

stories and local announcements concerning sponsored MWR events

and programs. Names of commercial products or companies while

identifying prizes in MWR sponsored contests may also be

mentioned in news stories.

603. General Requirements

a. Obligations and entitlements of the sponsor and the

MWR activity shall be incorporated into a written agreement for

a period not to exceed one year. Agreements may contain up to

four option periods but the options may not exceed a total of

four years.

b. The level of sponsorship benefit (promotional and

advertising value) provided to the sponsor by MWR shall be

commensurate with the amount of financial benefit (either cash

or in-kind) provided by the sponsor.

c. It is recommended that commercial sponsorship

opportunities be coordinated with the NEX store manager at the

installation where the sponsored event is being held to ensure

such agreements do not violate existing contracts or other

agreements between the NEX and its vendors.

d. Frequently, sponsors are also vendors or suppliers to

MWR. No special concessions or favored treatment may be

provided to such sponsors except as expressly provided for in

the sponsorship agreement. Conversely, vendors and suppliers

that elect not to enter into commercial sponsorship agreements

will not be treated with disfavor or suffer any form of

reprisal.

e. An appropriate disclaimer is required in all forms of

printed promotional and advertising material of the sponsor and

any form of public recognition provided by MWR. The following

disclaimer is approved for use:

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“The Department of the Navy does not endorse

any company, sponsor or their products or

services.”

f. The obligations and entitlements of the sponsor and

MWR shall be clearly stated in the body of the agreement with

sufficient detail to adequately and clearly identify the

parties’ mutual obligations.

g. The sponsor shall certify in writing that its

sponsorship costs will not be charged to any part of the Federal

government.

h. Agreements involving television and radio broadcast

rights to MWR events, and any broadcasted pre- or post-event

publicity related thereto, may be authorized only after

coordination with and following the approval of the command’s

Public Affairs Officer (PAO).

i. All commercial sponsorship agreements shall be reviewed

for legal sufficiency and compliance with this instruction and

its references prior to its signature by an Office of the

General Counsel (OGC) attorney or a Judge Advocate General (JAG)

attorney. A written record of the existence of the legal review

must be maintained.

j. Authority to sign commercial sponsorship agreements is

granted to region commanders (REGCOMs), regional N-9 managers,

regional MWR directors and installation commanding officers

(ICOs). Signature authority may be delegated in writing to

installation level MWR directors, but no further. REGCOMs/ICOs

may designate commercial sponsorship coordinators. All

commercial sponsorship coordinators and their assistants must be

formally appointed in writing by the region or installation MWR

director before they can solicit or negotiate commercial

sponsorship agreements. Irrespective of who signs a commercial

sponsorship agreement, the MWR director is ultimately

responsible for compliance with this instruction and for

ensuring that all provisions of the agreement are carried out.

604. Off-Base Financial Institutions (Banks and Credit Unions).

Per reference (e), Volume 5, paragraph 340404, off-base

financial institutions are not permitted to directly compete

with financial services offered by on-base banks or credit

unions. However, as authorized by reference (a), enclosure

(11), paragraph 1b(13), off-base financial institutions may

serve as commercial sponsors for MWR events as long as

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promotions are limited to product lines and services not offered

by either on-base bank or credit union where the MWR event is

being held. All promotional materials of the financial

institution sponsor to be distributed under the agreement must

be specifically identified and approved in the agreement before

any of the materials may be displayed or distributed.

605. Sponsorship Agreements with Personal Financial, Insurance

and Securities Providers. References (f) and (g) strictly

control the sales solicitation by insurance companies and

financial service providers aboard military installations. The

providers of these services, however, may enter into MWR

commercial sponsorship agreements provided the sponsor does not

advertise any products or services that are offered by on-base

financial institutions and that the commercial sponsorship

agreement specifically lists all promotional activity that the

sponsor will undertake and expressly states that no other

sponsorship activity will take place beyond that which is

identified in the agreement. Personal financial, insurance and

securities sponsors may not obtain personal contact information

from attendees at MWR events without the knowledge and written

consent of the attendee.

606. OCONUS Commercial Sponsorships. All commercial

sponsorship activity must comply with any applicable Status of

Forces Agreement, treaty and local laws, including any

requirements regarding the solicitation of U.S. and non-U.S.

companies. OCONUS sponsorship agreements with other than U.S.

manufacturers and dealers of vehicles are authorized; however,

any publicity, display or sponsor recognition may not be for a

period greater than 10 days.

607. Alcoholic Beverage Producers and Distributors.

Sponsorship by producers and distributors of alcoholic beverages

shall not be solicited. However, an unsolicited sponsorship

offer may be considered. Any sponsorship agreement reached

shall not be directed predominately or exclusively at the

military, and a responsible use campaign and Surgeon General

Warning shall be provided as part of any sponsorship agreement.

Alcoholic beverage sampling is prohibited. In order to avoid

the appearance of preferential treatment (see section 603(d)),

it is recommended that alcohol vendor contracts be awarded prior

to entering into a commercial sponsorship agreement with an

alcoholic beverage producer or distributor.

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608. Prohibited Types of Sponsorship Agreements. Commercial

sponsorship agreements that promote any of the following

products, services or entities are prohibited:

a. Tobacco.

b. Predatory loans including automobile title pawn, tax

refund and pay day loans as well as rent-to-own furniture as

described in reference (h). Questions regarding whether a

proposed sponsorship agreement would violate this provision

should be referred to an OGC or JAG attorney.

c. Parties identified on the Excluded Parties List System

(www.epls.gov) and barred from receiving Federal contracts,

certain subcontracts, and certain Federal financial and

nonfinancial assistance and benefits.

d. Locations identified as off-limits to military

personnel or any other entity that would reflect poorly or

determined to be inconsistent with the values of DoD, DoN, the

installation or Navy MWR.

e. Religious, fraternal or political organizations. Any

religious, ideological or partisan political party or movement

desiring to promote a particular denomination, religious or

political position, party or agenda.

609. Authorized Types of Sponsorship Benefits. The following

are examples of the types of sponsorship benefits that can be

offered to sponsors:

a. Signage or banners (quantity, size, design, location

and duration of display should be specifically addressed in the

agreement).

b. Posters for use in advance of performances or events.

c. Seasonal signage (e.g. outfield billboards).

d. The right to have the sponsor’s logo or name on

publicity materials, programs, tickets, etc. The commercial

sponsorship agreement may authorize the sponsor to distribute

printed programs at the performance or event. These programs

may credit the commercial sponsor or its products or services.

The sponsor may not sell space in such programs to other

sponsors (a prohibited sub-sponsorship) but MWR may enter into

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sponsorship agreements with additional sponsors in which they

are given promotional consideration in the printed program.

e. Credits in news releases and radio announcements.

f. Verbal acknowledgment. If the acknowledgement is done

verbally more than once at an event or the event is of moderate

duration (such as a concert) there must also be a verbal

disclaimer. If the event is a lengthy event (such as an air

show) the disclaimer should be read once every two hours at a

minimum.

g. Event tie-in with in-store product displays in

cooperation with the NEX, Commissary, or MWR retail operations.

h. Product sampling (giveaway samples). Samples of a

sponsor’s products (except samples of alcoholic beverages and

tobacco products).

i. Title recognition for individual act or segment of a

show. The title of an individual act or segment in a show or

event may identify the commercial sponsor, its products, or a

service, as long as the title does not contain any reference to

any part of DoD. For example, “Smith Bowling Corporation

Presents John Doe and His Bowling Tricks” is permissible.

However, the following are NOT PERMISSIBLE: “The Navy and Smith

Bowling Corporation presents…” or “The Smith Bowling Corporation

as the Official Navy Sponsor presents….”

j. Title naming rights for event. A sponsor is not

entitled to have a Navy event named after the sponsor. It is

not permissible to have “The Smith Bowling Corporation Air

Show.” However, it is permissible to have “NAS Flyover Air Show

presented in part by Smith Bowling Corporation” or “NAS Flyover

Air Show is sponsored by Lowland Corporation.”

k. Miscellaneous advertising such as donated place mats,

napkins, scorecards, and other similar items of nominal value

that identify the commercial sponsor’s name, products, or

services. Disclaimers are not required.

l. Sponsorship of an individual youth or adult athletic

team. Through an appropriate sponsorship agreement, a sponsor’s

name or logo may be displayed on T-shirts, hats, uniforms, etc.

MWR must ensure that equipment and uniforms for all teams are of

equal quantity and quality for all teams, regardless of whether

or not all teams have sponsors or who the sponsor is. A

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disclaimer must be either posted at the competition site or read

to the audience at least once during any sporting event where

such uniforms are worn.

m. Product displays are a permitted benefit that can be

offered to a sponsor during an event or for the length of a

particular program (such as a softball season). Appropriate

disclaimers must be placed in proximity to the display.

n. Chalets or tents may be provided as a sponsor benefit

under commercial sponsorship agreements only if the use of such

chalets or tents is dedicated for the SOLE use of the purchasing

commercial sponsor. The Navy cannot bargain for or accept any

access to the sponsor’s chalet or tent (or any of the

accompanying benefits) under the commercial sponsorship

agreement. Any invitations or arrangements for Navy employees

or officials to visit a sponsor’s chalet or tent and accept any

benefits of attendance should be reviewed and coordinated by the

employee’s or official’s command Ethics Advisor. All of the

sponsorship agreement.

o. Premium parking, seating or tickets to the event for

which sponsorship is being provided may be included as a benefit

to the sponsor. If these benefits are provided to a sponsor,

the sponsorship agreement should provide that the sponsor will

not sell or give them away to the public. Due to the military

nature of the event, such an occurrence could create the

erroneous impression that Navy MWR benefits are being sold or

given away to the public.

609. Unauthorized Types of Sponsorship Benefits. Commercial

sponsorships are just one of the many business agreements and

contracts that MWR enters into on a recurring basis with

vendors, suppliers and corporations. These are arm’s length

business transactions freely entered into by the sponsors in

which the sponsor receives a bargained for benefit. Commercial

sponsors are not making gifts to the Navy. Accordingly, NAF

resources (including any funds or in-kind benefits received

under a commercial sponsorship agreement) may not be used to

fund or host ‘sponsor appreciation’ tents, areas or chalets at

events. Sponsors may be personally and publicly thanked for

their sponsorship support of MWR (and the event); their

willingness to enter into a sponsorship agreement in which they

receive valuable advertising and promotional benefits does not

warrant the expenditure of valuable NAF resources to host

receptions for them. It is permissible, however, to expend NAF

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resources in support of reasonable efforts to secure these

valuable business agreements. For example if MWR wanted to host

an informational marketing meeting or program for the purpose of

informing potential sponsors of future sponsorship

opportunities, NAF resources could be used to provide normal and

reasonable refreshments during such a meeting or program.

610. Solicitation of Sponsorship Agreements. In order to

achieve the greatest financial return to the MWR program, there

must be adequate competition between sponsors for the right to

have their products and services promoted to MWR patrons.

Instead of direct one-on-one contact with potential sponsors,

MWR directors (with assistance and guidance from NAF contracting

specialists) should develop formal solicitation procedures in

order to reach a larger number of potential commercial sponsors.

a. Solicited commercial sponsorship shall be based on

principles of full and open competition similar to those that

guide NAF contracting. Announcements of solicitations may be

placed in appropriate publications or web sites to reach the

maximum number of potential sponsors (e.g., FedBizOpps.Gov

(www.fbo.gov) or may be mailed directly to potential sponsors.

When direct mailing is used, care should be given to ensure the

mailing list contains all local merchants of a similar type so

as not to create any preferential treatment by denying the

opportunity to compete for a commercial sponsorship. Assistance

can be obtained from regional OGC attorneys and NAF warranted

contracting officers. Officials who exercise contracting

authority, however, shall not also solicit for commercial

sponsorship. This is to prevent the appearance of undue

influence that award of NAF contracts are linked to entering

into commercial sponsorship agreements.

b. Sponsors shall be solicited competitively from an

adequate number of known U.S. sources and generally will be

limited to firms and organizations involved with consumer

products and services.

611. Unsolicited Sponsorship. This type of sponsorship shall be

treated the same as solicited commercial sponsorship, except that

it is wholly and entirely initiated by the prospective sponsor

without prior knowledge of the needs of the MWR program. After

an appropriate inquiry from a prospective sponsor, the MWR

sponsorship coordinator may inform the sponsor of the MWR

program’s needs and opportunities that may interest the would-be

sponsor. Typically, following initial discussions concerning

sponsorship opportunities, the unsolicited sponsor provides a

letter or memorandum of intent to the MWR activity that will be

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used in preparing a sponsorship agreement. Otherwise,

unsolicited sponsorship is subject to the same guidance provided

for solicited sponsorship.

612. Use of Commercial Sponsorship Proceeds. All funds,

products and services secured through MWR commercial sponsorship

constitute NAF resources and may only be used in support of the

MWR program. Commercial sponsorship funds and support received

explicitly for Warfighter and Family Services (WFS), when

executed as a Category A MWR program, may be executed as NAF in

support of the WFS program. Funds received as a result of

commercial sponsorship may not be used to make up for shortages

of command APF funding or to fund things that are properly

funded by command mission funds.

613. Recordkeeping and Annual Reports. MWR activities shall

maintain records to capture both the number and dollar value of

all commercial sponsorship agreements entered into. Records

shall include the sponsor’s name, address, type of business, as

well as the type and amount of consideration received by MWR

from the sponsor. All commercial sponsorship agreements with

alcoholic beverage producers, distributors or retailers must be

clearly identified. This information will be collected annually

from the regions and used by CNIC to provide required reports on

the Navy’s MWR commercial sponsorship program. Format for

reporting this information is as follows:

COMMERCIAL SPONSORSHIP ANNUAL REPORT FOR FY ( )

[NAME OF REPORTING INSTALLATION OR REGION]

NAME, ADDRESS

TYPE OF

BUSINESS OF

SPONSOR

CASH

VALUE OF

IN-KIND

CONSIDERATION

DESCRIPTION

OF IN-KIND

CONSIDERATION

DISPOSITION

OF CASH AND

IN-KIND

TOTAL VALUE

SPONSORSHIP

614. Advertising and Sponsorship Distinguished

a. Commercial sponsorship and advertising are closely

related concepts and, in general terms, sponsorship is a form of

marketing. For purposes of this instruction, the term

advertising is limited to the purchase or sale of advertising

space in a printed publication. All other forms of promotional

benefit will be considered commercial sponsorship benefits and

will be sold to commercial sponsors under commercial sponsorship

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agreements and provided in accordance with the provisions

governing commercial sponsorships.

615. Advertising of MWR Program and Events. Reference (a),

enclosure (11), sets forth advertising policy for MWR programs.

Navy MWR must communicate its presence and availability of

services offered to as many potential MWR patrons as possible.

MWR may purchase advertising to promote its events and programs,

where authorized in Armed Forces newspapers and civilian

enterprise (CE) publications produced primarily for distribution

on a military reservation or to authorized MWR patrons.

Advertising communications shall be directed primarily at

authorized patrons for the event or service being promoted.

a. Information in MWR advertising typically includes

information about sales of goods and services, including brand

names and item prices for other than alcoholic beverages,

including bar prices. Entertainment and social event

advertising may specify names of feature acts, films, or

talents, hours of operation, admission prices or cover charges,

prizes to be awarded and name of commercial sponsors, if any.

b. Armed Forces installation newspapers and Armed Forces

Radio and Television Service may carry unpaid non-commercial

news stories, announcements, and listings of services offered by

MWR to command or activity personnel. Names of MWR commercial

sponsors and brand name of prizes to be awarded may also be

reported.

c. MWR may produce or prepare media for local dissemination

directly to authorized patrons. In cases where a publication is

identified with a particular MWR activity or program (e.g.

bowling center) and produced with either APF or NAF, it cannot

contain commercial source product, and in the case of food,

beverage and entertainment facilities, bar prices or other

material that implies government endorsement of a specific

commercial product or service. All media produced at the

expense of a Category C activity will be mailed at the MWR

activity’s NAF expense. A bulk mail permit is recommended.

Reference (i), enclosure (4), Table E4T1, provides further

guidance and instruction.

d. Authority for distributing CE publications through

official channels is limited to those newspapers and other

publications authorized in reference (l). However, MWR

newsletters or similar publications that contain commercial

advertising, which are voluntarily initiated by a CE publisher

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at no cost to the government or the NAFI can be made available

to patrons if the following conditions are met:

(1) Navy MWR program and event information is released

to the CE publisher after coordination with the PAO.

(2) A CE publisher prints the publication and provides

copies at no cost to MWR.

(3) There is no contractual relationship that either

requires or gives exclusive rights to the CE publisher to

provide such a publication or that requires the Navy to furnish

the information.

(4) The CE publisher delivers the publication to the

MWR offices or facility involved, where it can be casually

picked up by interested patrons.

(5) The CE publication contains a prominently displayed

disclaimer indicating that the Navy does not endorse any

services or products advertised in the publication.

(6) Other CE publishers desiring to provide the same

service are given the same opportunity.

e. MWR may include a publication that carries commercial

advertising as an authorized insert in the base newspaper,

subject to review by the installation’s PAO. MWR must not

solicit or sell this advertising. The PAO must include

provisions for such a publication in the formal letter of

solicitation to private publishers for production of CE

newspapers on base.

(1) Voluntarily initiated media prepared by suppliers

and other non-DoD sources that are primarily advertising devices

are not authorized for distribution through official channels.

(2) When such media are placed in locations on DoD

installations for personal pick up, they must contain a

disclaimer to the effect that they do not express or imply

endorsement by the Navy or the Federal government, and they are

neither paid for nor sponsored by them. A disclaimer is not

required for items provided as premiums.

f. MWR may purchase, prepare and produce premiums for

distribution to authorized patrons. A premium is merchandise

offered as a bonus or as an incentive to advertise an MWR

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product, service, program or event. Examples of premiums

include ballpoint pens, plastic rulers, etc., with an intrinsic

unit value of less than $10 retail.

(1) MWR may also accept premiums, whose minimal

intrinsic unit value is less than $10 retail, voluntarily

initiated and prepared by suppliers. Tobacco and alcohol

premiums shall not be accepted for distribution.

(2) MWR may not solicit funds from suppliers or other

non-Federal entities to offset the cost of premiums. Neither

may MWR request suppliers or sources to prepare or provide

special premiums at their expense unless provided for under a

commercial sponsorship agreement or other written agreement.

g. MWR may use point of sale displays and promotional

material, such as reduced price and special offer coupons, and

may participate in national and local coupon redemption programs

available to the public or to the military community. The MWR

program manager should evaluate participation in national or

local coupon redemption programs on a case-by-case basis.

h. MWR may contribute articles and stories for publication

as unpaid information items in base newspapers, Plan of the Day,

and other media that may or may not be intended primarily for

distribution on a military installation to publicize MWR events

and other activities and programs of general interest to

authorized patrons. Coordination with the installation PAO and

supporting legal counsel is required when such items are

released to other than internal media.

i. MWR may use NAF to advertise MWR events in appropriate

civilian (off-base) media when events are open to the public.

Such events will be infrequent, not weekly or monthly, and will

not directly compete with similar events offered in the local

civilian community. The advertisement of resale merchandise or

the sale of State tax-free tobacco products and beverages during

these events, except for on-premise consumption, is prohibited.

616. Sale of Print Advertising by MWR. MWR may sell commercial

advertising opportunities in print media produced for or

prepared by MWR with NAF funding. The sale of commercial

advertising opportunities in any form other than printed

publications will be considered commercial sponsorship, will be

executed under a commercial sponsorship agreement and will

comply with provisions governing commercial sponsorship. For

the sale of print advertising, the following limitations apply:

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a. The advertising will not contain as a condition the

exclusion of any other product, service or advertisement, or the

granting of any additional benefit to a supplier.

b. Publication of paid advertising to MWR is bound by the

same standards of propriety that apply to CE newspapers

discussed in reference (d).

c. Advertising must include a disclaimer that it does not

constitute an official endorsement. Due to the unique nature of

electronic billboards, printed copies of the disclaimer are to

be available should they be required.

d. Acceptance of paid commercial advertising is

prohibited on AFRTS, local commander’s channels, or any APF

funded electronic media.

e. REGCOMs/ICOs shall decide the acceptability of

advertising and must consider public perceptions, impact on the

local economy, and the effect on local CE newspapers. This

decision authority may be delegated in writing to the regional

or installation N9 level.

f. Advertising in the installation’s MWR, NAF-funded

media is based on reaching bona fide users per established

patronage policies.

g. The media are not distributed off the military

installation.

h. The sale of print advertising must be accomplished

under a written contract and reviewed by a regional OGC

attorney.

i. Local accounting records are to be maintained to

support advertising income and expenses.

j. Advertising purchased by suppliers or other non-DoD

sources in media not prepared or produced by MWR that relate to

MWR program activities must include a disclaimer similar to that

described earlier in this chapter.

617. Civilian Enterprise Newspapers, Installation Guides, and

QOL Guidebooks

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a. Reference (d) contains DoD policy for CE newspapers

and installation guidebooks. CE newspapers and installation

guidebooks fall under the domain of the PAO and are intended to

serve as a means to disseminate unofficial information about the

local command and surrounding community.

b. CE newspapers and other similar PAO media are not

intended to serve as a revenue generator for Navy MWR or other

NAFIs.

c. MWR is not authorized to administer official

newspapers, CE newspapers or installation APF-funded guidebook

contracts (see reference (d), paragraph 6.2.3). However, MWR

may produce NAF-funded unofficial guidebooks. Such guidebooks

should contain information on local MWR programs, services and

event and related FFR programs and services. The MWR guidebook

may contain a brief history of the base and a listing of

important phone numbers. It should not contain a detailed

history of the base, tenant commands or a base-wide phone

directory.

d. Reference (a), enclosure (12), authorizes military MWR

activities to sell advertising to civilian businesses for

inclusion in MWR media, to defray development, printing,

distribution and overhead costs associated with the product.

MWR should not compete for the same advertisers as those of the

local CE newspaper or installation guidebook.

618. Commercial Billboards. Construction or display of

commercial billboards or similar signs promoting private,

commercial or political interests on Navy-controlled property is

prohibited (see reference (k), par. 9c(9)).

619. MWR’s Role in Community Relations Events Community relations

(COMREL) events such as public visitations (open houses), air shows,

festivals or concerts open to the general public are public affairs

events. The Navy Chief of Information (CHINFO) and public affairs

officer are responsible for executing COMREL events in compliance with

the provisions of references (l) and (m). MWR does not fund or manage

COMREL events. MWR’s role, if any, is limited to executing the MWR

mission at the event by providing the food, beverage, and entertainment

portions of the event.

a. MWR NAFs may be used for all expenses that directly

support the execution of the MWR mission at the COMREL event but

may not be used to pay for expenses that are properly funded by

APF, nor may they be used to augment a shortfall in APF funding.

6-17

Enclosure (1)

The following expenses are examples of expenses properly funded

with NAF:

(1) Civilian performers or entertainment acts (as

compared to military performers such as the Blue Angels or the

Navy Band);

(2) Static displays of vintage aircraft or equipment

when the purpose of the display is for predominantly

entertainment purposes. Displays of equipment that is

predominantly for educational, historic, patriotic or public

affairs purposes must be funded with APF. Consult your regional

OGC attorney for assistance with this determination;

(3) Bleacher or chair rental, provided the rental cost

is recovered from appropriate patron charges for the service;

(4) Inclement weather insurance but only for MWR

portion of the event;

(5) Payment to volunteer organizations (e.g., Spouse’s

Club) for labor provided in support of concession operations

(volunteer organization members are not volunteers to MWR and as

such are not subject to the volunteer restrictions or

protections);

(6) Cost of producing souvenir programs and posters

sold to event attendees and any poster that contains commercial

sponsors’ names or logos;

(7) Food, beverage and novelty concession expenses;

(8) Commercially contracted professional announcers may

be used and paid with NAF when the event includes entertainment

acts since the announcer is considered a performer. When NAF

funded professional announcers are contracted for they may also

announce military acts and provide public address support to the

COMREL event. Government employees performing this duty will

not be compensated with NAF. When there is no need for a NAF

funded professional announcer, all public affairs announcements

regarding the COMREL aspects of the event are the responsibility

of PAO and are properly an APF expense.

(9) Advertizing, marketing and publicity expenses for

the COMREL event, excluding any cost normally associated with

public affairs' efforts, to inform the local public about the

event. This promotion is necessary in order to enhance the

value of commercial sponsorships and to support MWR vending

6-18

Enclosure (1)

operations. Accordingly, the MWR marketing should emphasize the

MWR provided portions of the event. Advertising may be purchased

or procured with in-kind sponsorship for the event

620. Use of NAF in Connection with COMREL Events. NAF

resources, including any funds or in-kind support received under

a commercial sponsorship agreement may not be used for the

following items:

a. To provide free VIP seating or food and beverage for

military, state or local officials, or other dignitaries

Portable toilets for general public use.

b. Portable toilet facilities may be provided as part of

a chalet/tent made available for the private use of a commercial

sponsor under a commercial sponsorship agreement. They may also

be included as a benefit provided entertainers in an

entertainment contract. They must be placed within the spaces

provided for the chalets or venue and not accessible by the

general public.

c. NAF may not be used to pay the costs of socials,

hospitality tents, chalets or parties for VIPs, commanding

officers, military members or civilian employees.

d. Base operating support (BOS) costs including

maintenance, grounds preparation (including ‘foreign object

damage’ control, vehicle fuel costs, security and crowd control

or other non-recreational costs associated with a COMREL event;

e. Any costs associated with military static displays

such as transportation, fuel, security, and lodging or rental

car costs for military personnel; and

f. Any cost that are properly paid with APF as either a

public affairs cost or BOS cost.

621. Charging Attendees for Access, Products and Services

a. No charges or fees will be imposed on the general

public for admission or parking.

b. Attendees will not be charged for taking pictures of

themselves in or near DoD aircraft or equipment including flight

suits, helmets or other military uniforms or paraphernalia.

6-19

Enclosure (1)

c. Charges for shuttle service offered between remote

parking facilities to the primary COMREL event area are

permitted but may not exceed an amount necessary to recover all

associated expenses of providing the service.

d. Donation buckets may not be passed around the crowd or

placed in fixed locations to have members of the visiting public

make donations to support the COMREL event.

e. If souvenir open house programs are sold under the

auspices of MWR, then a official complimentary schedule of

events produced with APF must be available upon request.

f. Given the objectives of COMREL activities, , such as

air shows, owner/operators of vintage aircraft whose planes are

displayed on board the installation may not charge admission to

enter the aircraft. Donations for tours of the aircraft or

donations to the sponsoring organization may be accepted.

g. Charging for premium seating is permitted when it is

offered on a first-come basis. Only a relatively small portion

of the overall available seating may be sold as premium seating;

the vast majority of seating must be available at no cost to

attendees.

h. The renting of chalets by MWR is authorized. Chalets

may be rented separately or included as part of a sponsorship

agreement.

i. Only MWR can rent chalets. Chalet renters (which may

include commercial sponsors) may restrict who they allow as

guests into their chalet. However, a chalet renter may not sell

the rights to their chalet to a third party nor may they charge

admission to the chalet. They may be permitted to charge for

food, beverages or souvenirs that are furnished by the

commercial sponsor but not for anything which is supplied by MWR

or an MWR contractor as part of the rental agreement or other

commercial sponsorship agreement.

j. Signs used to identify chalets should not be any larger

than necessary to identify the chalet to its occupants.

k. Chalets may be located on the flight-line, but not at

the center of the flight-line.

622. Insurance in Connection with COMREL Events

6-20

Enclosure (1)

a. MWR NAFs shall not be used to purchase personal injury

liability or property damage insurance if the COMREL event is

conducted in CONUS, Alaska, Hawaii, or any territory covered by

the Federal Tort Claims Act (FTCA).

b. Overseas commands must consult with regional OGC and

JAG attorneys to determine if there are any local requirements

for insurance that covers personal property damage, real estate,

or personal injury liability. MWR NAFs may not be used to pay

for any locally required and procured insurance.

c. A COMREL activity consisting of "fly-bys" is not an MWR

NAF function; it is an APF event. Mishaps arising from an APF

event are covered by the Federal Tort Claims Act and any

resulting liability settlements or judgments are paid with APF,

not NAF.

d. Contractors who provide entertainment acts/equipment

must have liability insurance when they perform aboard a naval

installation. Coverage must be in amounts acceptable to the

contracting officer. Acts that involve potentially higher level

of risk such as air show performers must have at least $500,000

per person, $1,000,000 per occurrence, and $100,000 property

damage Comprehensive General Liability insurance. The

appropriate installation or regional MWR organization and the

U.S. Navy must be identified on all policies as named insured

parties.