Subchapter II programs
Acquisitions
The importing country or private entity that enters into an agreement under subchapter II shall acquire the agricultural commodities to be financed under subchapter II.
Invitation for bid
No purchase of agricultural commodities from private stock or purchase of ocean transportation shall be financed under subchapter II 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 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.
Agents
Authority of Secretary or Commodity Credit Corporation
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.
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.
Avoidance of conflict of interest of contractors
Freight agents employed by the Secretary or the Commodity Credit Corporation under subchapter II shall not represent any foreign government during the period of their contract with the United States Government.
Reasonable fees and commissions
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.
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.
Limitations
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.
Subchapters III and III–A program
Acquisition
In general
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.
Certain commodities made available for nonemergency assistance
In the case of agricultural commodities made available for nonemergency assistance under subchapter III for least developed countries that meet the poverty and other eligibility criteria established by the International Bank for Reconstruction and Development for financing under the International Development Association, the Administrator may pay the transportation costs incurred in moving the agricultural commodities from designated points of entry or ports of entry abroad to storage and distribution sites and associated storage and distribution costs.
Freight procurement
Notwithstanding chapters 1 to 11 of title 40 and division C (except sections 3302, 3307(e), 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41 or other similar provisions of law relating to the making or performance of Federal Government contracts, ocean transportation under subchapters III and III–A 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.
Avoidance of conflict of interest
Freight agents employed by the Agency for International Development under subchapters III and III–A shall not represent any foreign government during the period of their contract with the United States Government.
Prepositioning
In general
Funds made available for fiscal years 2001 through 2023 to carry out subchapters III and III-A may be used by the Administrator to procure, transport, and store agricultural commodities for prepositioning within the United States and in foreign countries, except that for each of fiscal years 2001 through 2013 not more than $10,000,000 of such funds and for each of fiscal years 2014 through 2023 not more than $15,000,000 of such funds may be used to store agricultural commodities for prepositioning in foreign countries.
Additional prepositioning sites
The Administrator may establish additional sites for prepositioning in foreign countries or change the location of current sites for prepositioning in foreign countries after conducting, and based on the results of, assessments of need, the availability of appropriate technology for long-term storage, feasibility, and cost.
Nonemergency or multiyear agreements
Annual resource requests for ongoing nonemergency or ongoing multiyear agreements under subchapter III shall be finalized not later than October 1 of the fiscal year in which the agricultural commodities will be shipped under the agreement.
Timing of shipments
Deadline for agreements under subchapters II and III–A
Annual report regarding food aid programs and activities
Annual report
Not later than April 1 of each fiscal year, the Administrator and the Secretary shall jointly, or each separately, prepare and submit to the appropriate committees of Congress a report regarding each program and activity carried out under this chapter by the Administrator, the Secretary, or both, as applicable, during the prior fiscal year.
Contents
Rate of return described
July 10, 1954, ch. 469Pub. L. 89–808, § 2(E)80 Stat. 1537Pub. L. 90–436, § 882 Stat. 451Pub. L. 94–161, title II, § 21089 Stat. 854Pub. L. 101–508, title I, § 1204(b)(3)104 Stat. 1388–11Pub. L. 101–624, title XV, § 1512104 Stat. 3650Pub. L. 102–237, title III105 Stat. 1857Pub. L. 104–66, title I, § 1011(e)109 Stat. 709Pub. L. 104–127, title II, § 216110 Stat. 957Pub. L. 106–472, title III, § 310(b)114 Stat. 2076Pub. L. 107–171, title III116 Stat. 284Pub. L. 110–246, title III122 Stat. 1827Pub. L. 113–79, title III128 Stat. 776Pub. L. 115–334, title III132 Stat. 4605(, title IV, § 407, as added , , ; amended , , ; , , ; , , ; , , ; , §§ 319, 324, 325, 328, 329, 332, , , 1858; , , ; , , ; , , ; , §§ 3010, 3011, , ; , §§ 3017, 3018(a), , ; , §§ 3009, 3010, , , 777; , §§ 3111, 3112(a), , .)
Editorial Notes
References in Text
Pub. L. 99–198, title XI, § 111099 Stat. 1472oThe Food for Progress Act of 1985, referred to in subsec. (f)(2)(C)(iii), is , , , which is classified to section 1736 of this title.
Codification
40 U.S.C. 471Pub. L. 107–217, § 5(c)116 Stat. 1303Pub. L. 111–350, § 6(c)124 Stat. 3854In subsec. (c)(2), “chapters 1 to 11 of title 40 and division C (except sections 3302, 3307(e), 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41” substituted for “the Federal Property and Administrative Services Act of 1949 ( et seq.)” on authority of , , , which Act enacted Title 40, Public Buildings, Property, and Works, and , , , which Act enacted Title 41, Public Contracts.
Amendments
Pub. L. 115–334, § 31112018—Subsec. (c)(4)(A). , substituted “2023” for “2018” in two places.
Pub. L. 115–334, § 3112(a)Subsec. (f). , amended subsec. (f) generally. Prior to amendment, subsec. (f) related to annual report regarding each program and activity carried out under this chapter and annual report regarding the administration of food assistance programs under subchapter III to benefit foreign countries.
Pub. L. 113–79, § 3009(1)2014—Subsec. (c)(4)(A). , substituted “2018” for “2012” and “for each of fiscal years 2001 through 2013 not more than $10,000,000 of such funds and for each of fiscal years 2014 through 2018 not more than $15,000,000 of such funds” for “for each such fiscal year not more than $10,000,000 of such funds”.
Pub. L. 113–79, § 3009(2)Subsec. (c)(4)(B). , added subpar. (B) and struck out former subpar. (B). Prior to amendment, text read as follows:
Feasibility assessments“(i) .—The Administrator may carry out assessments for the establishment of not less than 2 sites to determine the feasibility of, and costs associated with, using the sites to store and handle agricultural commodities for prepositioning in foreign countries.
Establishment of sites“(ii) .—Based on the results of each assessment carried out under clause (i), the Administrator may establish additional sites for prepositioning in foreign countries.”
Pub. L. 113–79, § 3010(1)Subsec. (f)(1). , substituted “food aid” for “agricultural trade” in heading.
Pub. L. 113–79, § 3010(2)Subsec. (f)(1)(B)(ii). , inserted “and the total number of beneficiaries of the project and the activities carried out through such project” before semicolon at end.
Pub. L. 113–79, § 3010(3)(A)Subsec. (f)(1)(B)(iii). , inserted “, and the total number of beneficiaries in,” after “commodities made available to” in introductory provisions.
Pub. L. 113–79, § 3010(3)(B)Subsec. (f)(1)(B)(iii)(III). –(D), added subcl. (III).
Pub. L. 110–246, § 3017(1)2008—Subsec. (c)(4). , designated existing provisions as subpar. (A), inserted heading, substituted “2012” for “2007” and “$10,000,000” for “$2,000,000”, and added subpar. (B).
Pub. L. 110–246, § 3017(2)Subsec. (c)(5). , added par. (5).
Pub. L. 110–246, § 3018(a)Subsec. (f). , added subsec. (f) and struck out former subsec. (f) which directed President to prepare an annual report concerning programs and activities implemented under this chapter for the preceding fiscal year, described contents of report, and directed that it be submitted not later than Jan. 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.
Pub. L. 107–171, § 30112002—Subsec. (c)(1). , designated existing provisions as subpar. (A), inserted heading, and added subpar. (B).
Pub. L. 107–171, § 3010Subsec. (c)(4). , substituted “through 2007” for “and 2002”.
Pub. L. 106–4722000—Subsec. (c)(4). added par. (4).
Pub. L. 104–127, § 216(2)Pub. L. 104–661996—–(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 which struck out subsec. (b) and redesignated subsecs. (c) to (h) as (b) to (g), respectively. See 1995 Amendment note below.
Pub. L. 104–127, § 216(1)(A)Subsec. (a)(1). , inserted “or private entity that enters into an agreement under subchapter II of this chapter” after “importing country”.
Pub. L. 104–127, § 216(1)(B)Subsec. (a)(2). , inserted at end “Resulting contracts may contain such terms and conditions as the Secretary determines are necessary and appropriate.”
Pub. L. 104–127, § 216(2)Subsec. (b)(1)(A), (2)(A). , inserted “importer or” before “importing country”.
Pub. L. 104–127, § 216(3)(A)Subsec. (c)(2). , 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.”
Pub. L. 104–127, § 216(3)(B)40 U.S.C. 471Subsec. (c)(4). , 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 ( 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.”
Pub. L. 104–127, § 216(4)Subsec. (f)(2)(D). , added subpar. (D).
Pub. L. 104–127, § 216(5)Subsec. (g). , 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.”
Pub. L. 104–661995—Subsecs. (b) to (h). 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.
Pub. L. 102–237, § 3291991—Subsec. (b)(1). , struck out “or agricultural commodity donated” after “ocean transportation financed”.
Pub. L. 102–237, § 324Subsec. (c)(1)(A). , substituted “subchapter II of this chapter” for “this section”.
Pub. L. 102–237, § 325Subsec. (c)(1)(C). , struck out “other” before “foreign government”.
Pub. L. 102–237, § 319Subsec. (c)(2)(B), (3). , inserted “subchapter II of” before “this chapter”.
Pub. L. 102–237, § 328(a)Subsec. (c)(4). , inserted “provides or” after “in which such person” and substituted “of a person” for “if the person is”.
Pub. L. 102–237, § 328(b)Subsec. (d)(3). , struck out “other” before “foreign government”.
Pub. L. 102–237, § 33240 U.S.C. 471Subsec. (d)(4). , substituted “the Federal Property and Administrative Services Act of 1949 ( et seq.)” for “the Federal Property Act of 1949, as amended,”.
Pub. L. 101–6241990— 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.
Pub. L. 101–508Subsec. (c)(4). substituted “providing ocean transportation or” for “providing ocean”.
Pub. L. 94–1611975— 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.
Pub. L. 90–4361968— 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.
Statutory Notes and Related Subsidiaries
Effective Date of 2008 Amendment
Pub. L. 110–246section 4(b) of Pub. L. 110–246section 8701 of this titleAmendment by effective , see , set out as an Effective Date note under .
Effective Date of 1990 Amendments
Pub. L. 101–624section 1513 of Pub. L. 101–624section 1691 of this titleAmendment by effective , see , set out as a note under .
Pub. L. 101–508section 1301 of Pub. L. 101–508section 1994 of this titleAmendment by effective , see , set out as an Effective Date note under .
Effective Date
section 5 of Pub. L. 89–808section 1691 of this titleSection effective , see , set out as an Effective Date of 1966 Amendment note under .
Executive Documents
Preparation of Annual Report
section 1691 of this titleFor 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), , 56 F.R. 8256, set out as a note under .