USDA Amends CCC Purchase Programs

KANSAS CITY - Jan 3/05 - SNS -- Two changes came into effect, affecting prices which the USDA's Commodity Credit Corporation (CCC) will pay under USDA PL-480 food aid and other purchases tenders.

The Kansas City Commodity Office will no longer apply an up to 10% price evaluation adjustment (PEA) for Small Disadvantaged Businesses (SDB) under full and open competition for authorized North American Industry Classification System (NAICS) Industry Subsectors.

The reauthorized Omnibus Appropriations Bill, H.R. 4818, effective December 8, 2004, did not reauthorize the SDB PEA for programs under the Small Business Act and the Small Business Investment Act of 1958.

The Kansas City Commodity Office will apply the HUBZone Price Evaluation Preference (PEP) as stated in the reauthorized Omnibus Appropriations Bill, H.R. 4818 SEC 153, effective December 8, 2004. The Bill states, in part:

The price evaluation preference for purchases of agricultural commodities by the Secretary of Agriculture for export operations through international food aid programs administered by the Farm Service Agency shall be 5% on the first portion of a contract to be awarded that is not greater than 20% of the total volume of each commodity being procured in a single invitation.