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| United States Department of Agriculture |
March 13, 1996 | |
| Farm and
Foreign Agricultural Services |
MAP-97006 | |
| Foreign Agricultural Services |
SUBJECT: TO: |
Contracting
Standards and Procedures MAP Participants |
| 1400 Independence Ave., SW Stop 1042 Washington. DC 20250-1042 |
ISSUE:
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At the
request of the USAEDC Rules Committee, FAS is providing
additional guidance with respect to contracting standards
and procedures. 7 CFR 1485.23(c)(2)(v) of the MAP final rule provides that "a participant shall perform some form of price or cost analysis such as a comparison of price quotations to market prices or other price indicia, to determine the reasonableness of the offered prices." |
| POLICY: | At a minimum, participants must adhere to the
requirements set forth in 7 CFR 1485.23(c). Participants
should also consider the following guidance when entering
into contracts for services or products that are
reimbursed in any part with CCC resources.
For contracts valued at less than $25,000 per annum, participants should ensure that the costs constitute an economical and effective use of MAP resources. Although not specifically required by regulations, FAS encourages participants to extend this policy to third party contracts. |
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| JAMES V. PARKER Deputy Administrator Commodity and Marketing Programs |
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