Page:United States Statutes at Large Volume 106 Part 4.djvu/630

 106 STAT. 3366 PUBLIC LAW 102-512—OCT. 24, 1992 for a constant net price for infant formula products for the full term of the contracts and provide for rebates or discounts for all units of infant formula sold through the program that are produced by the manufacturer awarded the contract and that are for a type of formula product covered under the contract. The contracts shall cover all types of infant formula products normally covered under cost containment contracts entered into by State agencies. "(vii) The Secretary shall also develop procedures for— "(I) rejecting all bids for any joint contract and announcing a resolicitation of infant formula bids where necessary; "(11) permitting a State agency that has authorized the Secretary to undertake bid solicitation on its behalf under this subparagraph to decline to enter into the joint contract to be negotiated and awarded pursuant to the solicitation if the agency promptly determines after the bids are opened that participation would not be in the best interest of its program; and "(III) assuring infant formula manufacturers submitting a bid under this subparagraph that a contract awarded pursuant to the bid will cover State agencies serving no fewer than a number of infants to be specified in the bid solicitation, "(viii) The bid solicitation and selection process on behalf of the State agencies shall be conducted in accordance with any procedures the Secretary deems necessary for the effective and efficient administration of the bid solicitation and selection process and consistent with the requirements of this subparagraph. The procedures established by the Secretary shall ensure that— "(I) the bid solicitation and selection process is conducted in a manner providing full and open competition; and "(II) the bid solicitation and selection process is free of any real or apparent conflict of interest.". "(H) In soliciting bids for contracts for infant formula for the program authorized by this section, the Secretary shall solicit bids from infant formula manufacturers under procedures in which bids for rebates or discounts are solicited for milk-based and soy-based infant formula, separately, except where the Secretary determines that such solicitation procedures are not in the best interest of the program. "(I) To reduce the costs of any supplemental foods, the Secretary— "(i) shall promote, but not require, the joint purchase of infant formula among State agencies electing not to participate under the procedures set forth in subparagraph (G); "(ii) shall encourage and promote (but not require) the purchase of supplemental foods other than infant formula under cost containment procedures; "(iii) shall inform State agencies of the benefits of cost containment and provide assistance and technical advice at State agency request regarding the State agency's use of cost containment procedures; "(iv) shall encourage (but not require) the joint purchase of supplemental foods other than infant formula under procedures specified in subparagraph (B), if the Secretary determines that>— "(I) the anticipated savings are expected to be significant;

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