UVA HIRES PUBLIC RELATIONS FIRM

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: MONDAY, February 3, 1992                   TAG: 9202030059
SECTION: VIRGINIA                    PAGE: A-4   EDITION: METRO 
SOURCE: Associated Press
DATELINE: CHARLOTTESVILLE                                LENGTH: Medium
UVA HIRES PUBLIC RELATIONS FIRM
The University of Virginia hired an internationally known public relations firm in the wake of federal drug raids on fraternity houses and questions about no-interest loans to athletes last year.
The school has paid Hill and Knowlton Inc. about $71,000 since May 15. In return, the New York-based firm has provided advice on organizing the university's communications network and responding to media, school officials told The Daily Progress of Charlottesville.
"We intended to make sure that we were presenting our information in a way that would be understood and that we weren't shooting ourselves in the foot on this stuff," said Leonard Sandridge, the school's chief financial officer.
"It was important that we respond and release information that would not inappropriately serve to the disadvantage of the university," he said.
In mid-May, the school decided to hire the Hill and Knowlton as it was about to announce a probe of no-interest loans to athletes and others by the Virginia Student Aid Foundation, school spokeswoman Louise Dudley said.
Hill and Knowlton was hired without competitive bidding or requests for proposals. The school invoked a state rule that allows officials to bypass the bidding requirement if there is an emergency, officials said.
Dudley said the planned announcement of the investigation was the emergency.
Dolly Prenzel, the school's purchasing director, approved the emergency allowing Hill and Knowlton to be hired without competitive bidding, Dudley said. Prenzel acted on a request from Sandridge, according to Dudley.
"This was a short-term agreement which was done at a time when we wanted information and advice of an immediate nature and under that condition it is appropriate for us to use the method that we did," Sandridge said.
The original six-month agreement was extended until Feb. 29, Dudley said. She said the company is being paid from interest income on unrestricted endowment funds.
Sandridge said Hill and Knowlton has only provided advice and has not spoken or acted on behalf of the university.
In the March 21 raids, federal, state and local officers descended on three fraternity houses and arrested 11 students on drug distribution charges. The three houses were seized by the government.
Virginia President John Casteen said universities customarily use public relations firms when they are in the national news consistently or are preparing a fund-raising campaign.
"The fact is that in a lot of areas we have sought outside advice because we're cutting back and we're determined to do more with less resources," Casteen said. He said it can be more efficient to use consultants than hire permanent staff to aid with conditions that may be temporary.
Hill and Knowlton represents such diverse clients as the Bank of Credit and Commerce International, or BCCI, and Kuwaiti interests during the Persian Gulf crisis.

by Bhavesh Jinadra by CNB