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counsel, and make recommendations concerning all aspects of
preparing petitioner’s direct mail fundraising and membership
solicitations, and to be responsible for implementing all of the
work required, either directly or through affiliates or other
suppliers, “subject to the approval of CLIENT [petitioner].” W&H
further agrees to maintain petitioner’s housefile and to perform
all follow-up correspondence.
The Contract further provides that all mailing campaign
materials prepared and recommended by W&H, including the proposed
numbers of letters to be mailed, would be subject to petitioner’s
approval “and no such material shall be mailed or made available
to the public without such approval.”
The Contract additionally provides that a bank or “caging
company” (described below) would be hired to act as cashier and
escrow agent for the funds generated under the Contract. The bank
or caging company would process receipts and disburse payments
under an agreement to be entered into by it, petitioner, and W&H.
The Contract requires W&H to promptly furnish to petitioner
copies of invoices received from suppliers of goods and services
used in fulfilling W&H’s obligations under the Contract. The
Contract also requires W&H to make reasonable efforts, where
market conditions and time permit, to obtain competitive bids or
rates for work subcontracted to suppliers. W&H affiliates would
be allowed to perform such subcontract work, subject to this
competitive bid and rate requirement. No markup was to be added
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