Page:United States Statutes at Large Volume 101 Part 3.djvu/438

 101 STAT. 1736 State and local governments.

State and local governments. State and local governments.

Contracts.

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Regulations.

Contracts.

(5) before the expiration of the 90-day period beginning on the (j^te of the enactment of this Act, establish procedures for the replacement of commodities received by recipient agencies that are stale, spoiled, out of condition, or not in compliance with the specifications developed under subsection (a)(1), including a requirement that the appropriate State distribution agency be notified promptly of the receipt of commodities that are stale, spoiled, out of condition, or not in compliance with the specifications developed under subsection (a)(1); (6) monitor the condition of commodities designated for donation to recipient agencies that are being stored by or for the Secretary to ensure that high quality is maintained; (7) establish a value for donated commodities and products to be used by State agencies in the allocation or charging of commodities against entitlements; and (8) require that each State distribution agency shall receive donated commodities not more than 90 days after such commodities are ordered by such agency, unless such agency specifies a longer delivery period. (c) QUALIFICATIONS FOR PURCHASE OF COMMODITIES.— (1) OFFERS FOR EQUAL OR LESS POUNDAGE.—Subject to compli-

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PUBLIC LAW 100-237—JAN. 8, 1988

ance by the Secretary with surplus removal responsibilities under other provisions of law, the Secretary may not refuse any offer in response to an invitation to bid with respect to a contract for the purchase of entitlement commodities (provided in standard order sizes) solely on the basis that such offer provides less than the total amount of poundage for a destination specified in such invitation. (2) OTHER QUALIFICATIONS.—The Secretary may not enter into a contract for the purchase of entitlement commodities unless the Secretary considers the previous history and current patterns of the bidding party with respect to compliance with applicable meat inspection laws and with other appropriate standards relating to the wholesomeness of food for human consumption. (d) DuTiES OF STATE DISTRIBUTION AGENCIES.—Before the expiration of the 270-day period beginning on the date of the enactment of this Act, the Secretary shall by regulation require each State distribution agency to— (1) evaluate its warehousing and distribution systems for donated commodities; (2) implement the most cost-effective and efficient system for providing warehousing and distribution services to recipient agencies; (3) use commercial facilities for providing warehousing and distribution services to recipient agencies unless the State applies to the Secretary for approval to use other facilities, showing that other facilities are more cost effective and efficient; (4) consider the preparation and storage capabilities of recipient agencies when ordering donated commodities, including capabilities of such agencies to handle commodity product forms, quality, packaging, and quantities; and (5) in the case of any such agency that enters into a contract with respect to processing of agricultural commodities and their products for recipient agencies—

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