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Competition Among Suppliers in the P.L. 480 Concessional Food Sales Program

ID-81-6 Published: Dec 19, 1980. Publicly Released: Jan 19, 1981.
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Highlights

Concerning government-financed grain sales under P.L. 83-480, GAO was asked to determine: (1) whether other firms and farmer cooperatives successfully competed against seven major grain firms for the sales since fiscal year (FY) 1969; (2) if the Department of Agriculture (USDA) has actively and effectively promoted competition by other suppliers; and (3) what changes in the legislation or management of the program might increase supplier competition and make the program more effective and efficient. In order to answer these questions, available sales statistics for FY 1969 through 1978 were analyzed, as well as bid data for FY 1978 and 1969.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Agriculture The Secretary of Agriculture should direct the General Sales Manager of USDA to take appropriate action to (1) develop standardized invitations for bids; and (2) limit the size of individual sales and seek to develop a more orderly sales distribution.
Closed
Please call 202/512-6100 for additional information.
Department of Agriculture The Secretary of Agriculture should direct the General Sales Manager of USDA to take appropriate action to (1) standardize performance bond requirements; (2) improve procedures to provide earlier payment to suppliers; (3) simplify bond requirements; and (4) standardize the letter-of-credit procedures.
Closed
Please call 202/512-6100 for additional information.

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Agricultural assistanceCredit salesFarm income stabilization programsFederal legislationForeign economic assistanceForeign financial assistanceGrain and grain productsInternational economic relationsProgram managementSales procedures