Opportunities for Greater Cost Effectiveness in Public Law 480, Title I Food Purchases
NSIAD-84-69
Published: Apr 19, 1984. Publicly Released: Apr 19, 1984.
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Highlights
GAO discussed opportunities to improve the effectiveness of subsidized food purchases by recipient, developing countries under the Public Law 480, title I program.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator, Foreign Agricultural Service, to: (1) work for earlier signings of title I annual agreements and a wider spread of procurements over the year; (2) establish a required minimum amount of time between the issuance of invitations for bids and bid openings and the first delivery dates; (3) reemphasize the requirement of the title I regulations that buyers select the lowest responsive bids and that the Foreign Agricultural Service require and document the justification for any exceptions; and (4) eliminate close or overlapping title I and title II, P.L. 480 purchases. |
Closed – Implemented
Documents obtained from USDA indicate that, in FY 1984, it: (1) spread procurements out better; (2) established and adhered to minimum bid and shipping leadtimes; (3) clarified procedures requiring awards to lowest bidders; and (4) eliminated most of the overlap of title I and title II procurements.
|
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator, Foreign Agricultural Service, to require that recipients finance any additional premiums for individualized or nonstandard specifications unless a definite need has been established and justified. |
Closed – Implemented
USDA provided documents on its new procedures requiring justifications for premium specifications.
|
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator, Foreign Agricultural Service, to more carefully monitor import statistics and emphasize the legislative requirements to take reasonable precautions to safeguard the usual U.S. markets and to take steps to ensure the United States a fair share of any increase in commercial purchases in countries which have rising imports. |
Closed – Implemented
USDA reported that it is monitoring imports of countries more closely and reemphasizing UMR/fair share provisions during title I negotiations. It also cited two countries where U.S. exports increased mainly due to availability of credit guarantees and blended credits.
|
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator, Agricultural Stabilization and Conservation Service, to strengthen the export market price-gathering function of the Kansas City Commodity Office for wheat flour and spring wheat. |
Closed – Implemented
USDA reported that it is working to strengthen the price-gathering functions of the Kansas City Commodity Office.
|
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator, Foreign Agricultural Service, to: (1) disapprove any title I bid price that exceeds the export market price as determined by the Stabilization Service for the comparable commodity specification and shipping mode; and (2) develop a system for evaluating title I rice prices that uses the broadest practical range of information sources. |
Closed – Implemented
USDA reported that it is continuing its efforts to expand its information sources, especially for rice prices, to document more clearly the specific basis for price approvals, and expects to rely more heavily on the Kansas City Office's price-gathering functions once they are strengthened.
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Topics
Agricultural policiesCommodity marketingCommodity salesCost effectiveness analysisExport regulationForeign trade policiesInternational food programsProcurement practicesSubsidiesGrain and grain products