United States Department of Agriculture

Agricultural Marketing Service

Federal Grain Inspection Service

Directive 9060.3 June 11, 2004

Distribution: FGIS, OSP, Industry Originating Office: FMD OD

The U.S. Department of Agriculture (USDA) prohibits discrimination in its programs on the basis of race, color, 

national origin, sex, religion, age, disability, political beliefs, and marital or familial status. (Not all prohibited 

bases apply to all programs.) Persons with disabilities who require alternate means for communication of program 

information (Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center at (202) 720-2600 (voice and 

TDD).

To file a complaint, write to the USDA, Office of Civil Rights, Room 326-W, 1400 Independence Avenue, SW, 

Washington, DC 20250-9410, or call (202) 720-5964 (voice and TDD). USDA is an equal employment opportunity 

employer.

APPLICATION AND AGREEMENT FOR CONTRACT SERVICE, FORM FGIS-4

Contents

APPLICATION AND AGREEMENT FOR CONTRACT SERVICE, FORM FGIS-4 ����������������1

1. PURPOSE����������������������������������������������������������������������������������������������������������������������������

2. REPLACEMENT HIGHLIGHTS��������������������������������������������������������������������������������������������

3. POLICY ��������������������������������������������������������������������������������������������������������������������������������

4. APPLICANT RESPONSIBILITY�������������������������������������������������������������������������������������������

5. FGIS RESPONSIBILITY�������������������������������������������������������������������������������������������������������

6. AMENDMENT OF CONTRACT �������������������������������������������������������������������������������������������

7. IMPLEMENTATION OF CONTRACT SERVICE ������������������������������������������������������������������

8. GENERAL INFORMATION���������������������������������������������������������������������������������������������������

9. DISTRIBUTION OF COMPLETED FORM ���������������������������������������������������������������������������

10. STOCKS OF FORM FGIS-4�����������������������������������������������������������������������������������������������

EXHIBIT 1���������������������������������������������������������������������������������������������������������������������������������5

EXHIBIT 2���������������������������������������������������������������������������������������������������������������������������������7
FGIS Directive 9060.3 June 11, 2004

Page 2

1. PURPOSE

This directive provides:

a. Applicants and official personnel of the Agricultural Marketing Service (AMS),

Federal Grain Inspection Service (FGIS), with information concerning contracting 

for official inspection and/or official weighing services performed by FGIS, under 

the United States Grain Standards Act, as amended (USGSA); and 

b. Instructions for completing Form FGIS-4, Application and Agreement for Contract 

Service

2. REPLACEMENT HIGHLIGHTS

This directive supersedes FGIS Instruction 9060.3, Application and Agreement for

Contract Service, Form FGIS-4, dated 7-15-98. The directive is being updated to delete

the 3- and 6-month contract options.

3. POLICY

The Administrator of AMS is authorized by the USGSA to charge and collect

reasonable fees for the inspection and weighing of grain and related services performed

by employees of FGIS. The FGIS fee schedule (7 CFR, Sections 800.71-73) provides 

for hourly rates for contract and non-contract inspection and weighing service. The 

contract service permits FGIS to stabilize the work force at a particular facility which 

reduces the cost of providing official services. These benefits are passed on to the 

applicant for service in the form of a lower hourly rate for contract service.

4. APPLICANT RESPONSIBILITY

Applicants must determine whether a contract service agreement would be 

advantageous for their facility, the duration of the service agreement, and the number 

of official personnel wanted under the contract. However, FGIS will determine the total 

number of official personnel needed to perform the requested official service and advise 

the applicant of the number required. The number of official personnel under contract 

and the number needed to perform the service may be different. The additional noncontract personnel that may be needed will be charged at the non-contract hourly rate.

When an applicant desires to sign a contract with FGIS, the applicant shall complete,

Form FGIS-4, Application and Agreement for Contract Service.
FGIS Directive 9060.3 June 11, 2004

Page 3

5. FGIS RESPONSIBILITY

When an applicant desires to sign a contract, FGIS will assist the applicant in 

determining if a contract service agreement is beneficial.

FGIS will inform the applicant that official personnel under contract may be utilized for

inspection and/or weighing service, and may be interchanged to provide the most

efficient use of personnel.

Each field office will maintain an accurate and up-to-date file of all contracts within its

assigned area

6. AMENDMENT OF CONTRACT

An applicant may amend the contract as to the number of official personnel under 

contract if it is mutually agreeable between the parties of the contract. Some applicants

may modernize their facility to increase efficiency and decrease the number of official 

personnel required. In most cases, a reduction in required official personnel due to 

facility modernization would be mutually agreeable and the contract may be amended. If

an applicant is reducing the number of contracted personnel to circumvent Section IV., 

B., 1., of the contract, the amendment to the contract will be denied.

7. IMPLEMENTATION OF CONTRACT SERVICE

The contracted service hours will be the facility’s normal 8-hour shifts and must be 

contracted for at least 5 consecutive days. Contract rates apply only to the hours and 

shifts specified in the contract (i.e., a 5-consecutive day, 8-hour contract would apply for 

8 hours work starting on the day specified in the contract and running for 5 consecutive 

days). All hours worked in excess of the contract will be at the non-contract rate. All 

services performed under a contract agreement during regular workdays will be charged 

the regular hourly contract rate. The term, “regular workday”, means the hours of 6 a.m. 

to 6 p.m., local time, any Monday, Tuesday, Wednesday, Thursday, or Friday that is not 

a holiday1

Hourly rates include the cost of travel and transportation to perform the service 

requested and, except as provided in the regulations, Section 800.71, Schedule A, the 

issuance of certificates.

 

1

Holiday shall mean the legal public holidays specified in paragraph (a) of Section 6103, Title 

5, of the United States Code (5 U.S.C. 6103 (a)) and any other day declared to be a holiday 

by Federal statute or Executive Order. Under Section 6103 and Executive Order No. 10357, 

as amended, if the specified legal public holiday falls on a Saturday, the preceding Friday 

shall be considered to be the holiday, or if the specified legal holiday falls on a Sunday, the 

following Monday shall be considered to be the holiday.
FGIS Directive 9060.3 June 11, 2004

Page 4

Service charges shall not be assessed under contract service for recognized Federal 

holidays when, upon request of the applicant, service is not performed. The applicant is 

required to make this request not later than 2 p.m. the preceding business day. Further, 

a charge shall not be assessed when service is not performed due to strikes, natural 

disasters, fires, bomb threat, or other situations not under the control of the applicant. 

In other words, if FGIS personnel are unable to be present at the facility to perform 

the service, then charges shall not be assessed. Further, service charges shall not be 

assessed under other situations if official personnel are temporarily reassigned.

8. GENERAL INFORMATION

A contract assures the applicant that FGIS will have the number of official personnel

available to provide service at the applicable contract hourly rate. The contract also

assures FGIS a constant work force and aids in determining the number of official

personnel needed in a field office.

In addition, for those facilities that have a scheduled annual shutdown period, the field

office manager, with sufficient advanced notice, may be able to work out a schedule

whereby official personnel can be scheduled for annual leave, required formal training, 

or reassignment during an elevator’s normal annual shutdown period. Utilization of

personnel in such a manner is beneficial to the grain industry and FGIS.

If an applicant does not elect to enter into a contract with FGIS, the applicant will be

charged the applicable non-contract hourly rate. 

Official services shall be performed, to the extent practicable, in the order in which they

are received. Precedence shall be given to requests for services required for export

grain

9. DISTRIBUTION OF COMPLETED FORM

a. The original will be retained in the authorizing field office.

b. One copy will be forwarded to the applicant signing the agreement.

c. One copy will be forwarded to the Office of the Director, Field Management Division

10. STOCKS OF FORM FGIS-4

Download the form from the AMS website or contact the Office of the Director, Support 

Staff, for copies of Form FGIS-4 (this form may be reproduced as needed).

Attachment 
FGIS Directive 9060.3 June 11, 2004

Page 5

EXHIBIT 1
FGIS Directive 9060.3 June 11, 2004

Page 6

EXHIBIT 1
FGIS Directive 9060.3 June 11, 2004

Page 7

EXHIBIT 2

INSTRUCTIONS FOR COMPLETING FORM FGIS-4,

APPLICATION AND AGREEMENT FOR CONTRACT SERVICE

Prepare the form with an original and three copies.

(1) Show name of applicant.

(2) Show the address where the service will be performed.

(3) Show the date that the agreement is to become effective (on or after the date of 

signature).

(4) Select the contract duration rate desired. Show the minimum number of

consecutive days a week agreed upon (5, 6, or 7). The contract must be for at 

least 5 days.

(5) Designate the first day of the consecutive days per week (i.e., Sunday, Monday, etc.).

(6) Show the number of official personnel under contract per shift. (If none are 

required for a shift, show 0.)

(7) Show the name of the firm making application.

(8) Show the signature of the person making application.

(9) Show the title of the person making application.

(10) Show the date of the applicant’s signature.

(11) Show the city and state of the authorizing field office.

(12) Show the signature of the authorized field office representative.

(13) Show the title of the authorized field office representative.

(14) Show the date of the authorized field office representative’s signature.

To renew an existing contract, complete and present to FGIS a new Form FGIS-4.

Amendments to the contract will be typed on plain paper. The amended item will be

stated (i.e., item II, C, 2 is amended to read: “4 official personnel for the second shift for 

8 hours per day”, effective (Date), and both parties will sign and attach the amendment 

to the contract