§1736a. Administrative provisions

(a) Subchapter II programs

(1) Acquisitions

The importing country or private entity that enters into an agreement under subchapter II of this chapter shall acquire the agricultural commodities to be financed under subchapter II of this chapter.

(2) Invitation for bid

No purchase of agricultural commodities from private stock or purchase of ocean transportation shall be financed under subchapter II of this chapter unless such purchases are made on the basis of an invitation for bid that is publicly advertised in the United States, and on the basis of bid offerings that shall conform to such invitation and be received and publicly opened in the United States. All awards in the purchase of commodities or ocean transportation financed under subchapter II of this chapter shall be consistent with open, competitive, and responsive bid procedures, as determined appropriate by the Secretary. Resulting contracts may contain such terms and conditions as the Secretary determines are necessary and appropriate.

(b) Agents

(1) Authority of Secretary or Commodity Credit Corporation

(A) General rule

Except as provided in subparagraph (B), if it is determined appropriate, the Secretary or the Commodity Credit Corporation may serve as the purchasing or shipping agent, or both, for the importer or importing country in arranging the purchase or shipping of commodities financed under subchapter II of this chapter.

(B) Exception

Notwithstanding subparagraph (A), the Secretary or the Commodity Credit Corporation may award, under a competitive bidding process, contracts for establishing freight agents who shall act on behalf of the Secretary or the Corporation to handle the shipping of commodities financed under this chapter.

(C) Avoidance of conflict of interest of contractors

Freight agents employed by the Secretary or the Commodity Credit Corporation under subchapter II of this chapter shall not represent any foreign government during the period of their contract with the United States Government.

(2) Reasonable fees and commissions

(A) Fees

Notwithstanding any other provision of law, the Secretary or the Commodity Credit Corporation may enter into an agreement with the importer or importing country that contains the terms and conditions that will govern the provision of purchasing or shipping agent services by the Secretary or the Corporation, including the establishment of fees for such services. Any such fees shall be fair and reasonable in relation to the services performed and shall be available as reimbursement for costs incurred in providing such services.

(B) Prohibition on commissions

Commissions, fees, or other payments to any selling agent or to any agent of a purchaser shall be prohibited in the purchase of agricultural commodities that are financed under subchapter II of this chapter.

(3) Limitations

No commission, fees, or other payments to an agent, broker, consultant, or other representative of the importer or importing country for ocean transportation brokerage services in connection with the carriage of commodities provided under subchapter II of this chapter may-

(A) be paid in excess of an amount determined appropriate by the Secretary; and

(B) be shared by such person with the importer or importing country or any agent thereof.

(4) Avoidance of conflict of interest

A person may not be an agent, broker, consultant, or other representative of the United States Government, an importer, or an importing country in connection with agricultural commodities provided under this chapter during a fiscal year in which such person provides or acts as an agent, broker, consultant, or other representative of a person engaged in providing ocean transportation or transportation-related services for such commodities. For the purpose of this paragraph, the term "transportation-related services" means lightening, stevedoring, bagging, or inland transportation to the destination point.

(c) Subchapters III and III–A program

(1) Acquisition

The Administrator shall transfer, arrange for the transportation, and take other steps necessary to make available agricultural commodities to be provided under subchapter III and subchapter III–A of this chapter.

(2) Freight procurement

Notwithstanding the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.) or other similar provisions of law relating to the making or performance of Federal Government contracts, ocean transportation under subchapters III and III–A of this chapter may be procured on the basis of full and open competitive procedures. Resulting contracts may contain such terms and conditions as the Administrator determines are necessary and appropriate.

(3) Avoidance of conflict of interest

Freight agents employed by the Agency for International Development under subchapters III and III–A of this chapter shall not represent any foreign government during the period of their contract with the United States Government.

(d) Timing of shipments

In determining the timing of the shipment of agricultural commodities to be provided under this chapter, the Secretary or the Administrator, as appropriate, shall consider-

(1) the time of harvest of any competing commodities in the recipient country; and

(2) such other concerns determined to be appropriate.

(e) Deadline for agreements under subchapters II and III–A of this chapter

An agreement under subchapters II and III–A of this chapter shall, to the extent practicable, be entered into not later than-

(1) November 30 of the first fiscal year in which agricultural commodities are to be shipped under the agreement; or

(2) 60 days after the date of enactment of the annual Rural Development, Agriculture, and Related Agencies Appropriations Act for the first fiscal year in which agricultural commodities are to be shipped under the agreement,

whichever is later.

(f) Annual reports

(1) In general

The President shall prepare an annual report concerning the programs and activities implemented under this chapter for the preceding fiscal year.

(2) Contents

Each report shall include-

(A) the countries and organizations receiving food and other assistance provided to each country and organization under this chapter;

(B) a general description of the projects or activities implemented under this chapter, including local currency funded activities;

(C) a statement of the amount of agricultural commodities made available to each country pursuant to section 1431(b) of this title and the Food for Progress Act of 1985 [7 U.S.C. 1736o]; and

(D) an assessment of the progress towards achieving food security in each country receiving food assistance from the United States Government, with special emphasis on the nutritional status of the poorest populations in each country.

(3) Submission

The President shall submit such report not later than January 15 of each year to the Committee on Agriculture and the Committee on Foreign Affairs of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.

(July 10, 1954, ch. 469, title IV, §407, as added Pub. L. 89–808, §2(E), Nov. 11, 1966, 80 Stat. 1537 ; amended Pub. L. 90–436, §8, July 29, 1968, 82 Stat. 451 ; Pub. L. 94–161, title II, §210, Dec. 20, 1975, 89 Stat. 854 ; Pub. L. 101–508, title I, §1204(b)(3), Nov. 5, 1990, 104 Stat. 1388–11 ; Pub. L. 101–624, title XV, §1512, Nov. 28, 1990, 104 Stat. 3650 ; Pub. L. 102–237, title III, §§319, 324, 325, 328, 329, 332, Dec. 13, 1991, 105 Stat. 1857 , 1858; Pub. L. 104–66, title I, §1011(e), Dec. 21, 1995, 109 Stat. 709 ; Pub. L. 104–127, title II, §216, Apr. 4, 1996, 110 Stat. 957 .)

References in Text

The Federal Property and Administrative Services Act of 1949, referred to in subsec. (c)(2), is act June 30, 1949, ch. 288, 63 Stat. 377 , as amended. Provisions of the Act relating to procurement procedures are classified generally to subchapter IV (§251 et seq.) of chapter 4 of Title 41, Public Contracts. For complete classification of this Act to the Code, see Short Title note set out under section 471 of Title 40, Public Buildings, Property, and Works, and Tables.

The Food for Progress Act of 1985, referred to in subsec. (f)(2)(C), is Pub. L. 99–198, title XI, §1110, Dec. 23, 1985, 99 Stat. 1472 , as amended, which is classified to section 1736o of this title.

Amendments

1996-Pub. L. 104–127, §216(2)–(5), which directed amendment of subsecs. (c), (d), (g), and (h), respectively, of this section, was executed to subsecs. (b), (c), (f), and (g), respectively, of this section, to reflect the probable intent of Congress and the intervening amendment by Pub. L. 104–66 which struck out subsec. (b) and redesignated subsecs. (c) to (h) as (b) to (g), respectively. See 1995 Amendment note below.

Subsec. (a)(1). Pub. L. 104–127, §216(1)(A), inserted "or private entity that enters into an agreement under subchapter II of this chapter" after "importing country".

Subsec. (a)(2). Pub. L. 104–127, §216(1)(B), inserted at end "Resulting contracts may contain such terms and conditions as the Secretary determines are necessary and appropriate."

Subsec. (b)(1)(A), (2)(A). Pub. L. 104–127, §216(2), inserted "importer or" before "importing country".

Subsec. (c)(2). Pub. L. 104–127, §216(3)(A), added par. (2) and struck out heading and text of former par. (2). Text read as follows: "No purchase of agricultural commodities from private stocks or purchase of ocean transportation services by the United States Government shall be financed under subchapters III and III–A of this chapter unless such purchases are made on the basis of full and open competition utilizing such procedures as are determined necessary and appropriate by the Administrator."

Subsec. (c)(4). Pub. L. 104–127, §216(3)(B), struck out heading and text of par. (4). Text read as follows: "Notwithstanding any provision of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.) or other similar provisions relating to the making or performance of Federal Government contracts, the Administrator may procure ocean transportation services under this chapter under such full and open competitive procedures as the Administrator determines are necessary and appropriate."

Subsec. (f)(2)(D). Pub. L. 104–127, §216(4), added subpar. (D).

Subsec. (g). Pub. L. 104–127, §216(5), struck out heading and text of subsec. (g). Text read as follows: "On World Food Day, October 16 of each year, the President shall submit to the appropriate committees of Congress a report, prepared with the assistance of the Secretary and the Administrator, assessing progress towards food security in each country receiving United States Government food assistance. Special emphasis should be given in such report to the nutritional status of the poorest populations in such countries."

1995-Subsecs. (b) to (h). Pub. L. 104–66 redesignated subsecs. (c) to (h) as (b) to (g), respectively, and struck out former subsec. (b) which required reporting of agricultural commodity or ocean transportation supplier fees.

1991-Subsec. (b)(1). Pub. L. 102–237, §329, struck out "or agricultural commodity donated" after "ocean transportation financed".

Subsec. (c)(1)(A). Pub. L. 102–237, §324, substituted "subchapter II of this chapter" for "this section".

Subsec. (c)(1)(C). Pub. L. 102–237, §325, struck out "other" before "foreign government".

Subsec. (c)(2)(B), (3). Pub. L. 102–237, §319, inserted "subchapter II of" before "this chapter".

Subsec. (c)(4). Pub. L. 102–237, §328(a), inserted "provides or" after "in which such person" and substituted "of a person" for "if the person is".

Subsec. (d)(3). Pub. L. 102–237, §328(b), struck out "other" before "foreign government".

Subsec. (d)(4). Pub. L. 102–237, §332, substituted "the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.)" for "the Federal Property Act of 1949, as amended,".

1990-Pub. L. 101–624 amended section generally, substituting present provisions for provisions which established an Advisory Committee to survey the general policies relating to the administration of this chapter, including implementation of self-help provisions, uses to be made of foreign currencies, amount of currencies to be reserved in sales agreements for loans to private industry, rates of exchange, interest rates, and terms under which dollar credit sales are made.

Subsec. (c)(4). Pub. L. 101–508 substituted "providing ocean transportation or" for "providing ocean".

1975-Pub. L. 94–161 inserted ", or their designees (who shall be members of such committees or, in the case of members from the executive branch, who shall have been confirmed by the Senate)" in first sentence.

1968-Pub. L. 90–436 struck out provisions that the vice chairman and one ranking minority member of the specified House committees and the next ranking majority member and one ranking minority member of the specified Senate committees be members of the Advisory Committee, and inserted provisions requiring the Advisory Committee to meet not less than four times during each calendar year and setting forth the order of precedence at such meetings.

Change of Name

Committee on Foreign Affairs of House of Representatives treated as referring to Committee on International Relations of House of Representatives by section 1(a) of Pub. L. 104–14, set out as a note preceding section 21 of Title 2, The Congress.

Effective Date of 1990 Amendments

Amendment by Pub. L. 101–624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101–624, set out as a note under section 1691 of this title.

Amendment by Pub. L. 101–508 effective Nov. 29, 1990, see section 1301 of Pub. L. 101–508, set out as a note under section 511r of this title.

Effective Date

Section effective Jan. 1, 1967, see section 5 of Pub. L. 89–808, set out as an Effective Date of 1966 Amendment note under section 1691 of this title.

Delegation of Functions

Functions of President under subsec. (h) [now (g)] of this section delegated to Administrator of the Agency for International Development by section 4(c) of Ex. Ord. No. 12752, Feb. 25, 1991, 56 F.R. 8256, set out as a note under section 1691 of this title.

Preparation of Annual Report

For provisions requiring Food Assistance Policy Council to prepare annual report pursuant to subsec. (g)(1) [now (f)(1)] of this section, see Ex. Ord. No. 12752, §3(c), Feb. 25, 1991, 56 F.R. 8256, set out as a note under section 1691 of this title.

Section Referred to in Other Sections

This section is referred to in section 1431 of this title.