United States Department of Agriculture 

Farm Service Agency 

Kansas City Commodity Office 

6501 Beacon Drive, Mail Stop 8698

Kansas City, Missouri 64133-4676 

www.fsa.usda.gov/daco/default.htm

Guide for Selling Agricultural Commodities to the Government 

 
Table of Contents

FORWARD ................................................................................................................................... 3 

Part 1 ORGANIZATION ........................................................................................................ 4 

1.A United States Department Of Agriculture (USDA)........................................................ 4 

1.B. Commodity Credit Corporation(CCC) ........................................................................... 4 

1.C. Farm Service Agency (FSA)........................................................................................... 4 

1.D. Kansas City Commodity Office (KCCO)....................................................................... 4 

1.E. Kansas City Finance Office (KCFO).............................................................................. 4 

Part 2 FOOD ASSISTANCE PROGRAMS .......................................................................... 5 

2.A. Commodities For Domestic Food Distribution Programs.............................................. 5 

2.B. Processed And Packaged Commodities For Export Programs....................................... 5 

2.C. Bulk Commodities For Export Programs ....................................................................... 6 

2.D. Quantities And Purchasing Frequency............................................................................ 6 

Part 3 THE ACQUISITION PROCESS ................................................................................ 7 

3.A. Qualifying As A Prospective Contractor........................................................................ 7 

3.B. Additional Information About The Procurement Process .............................................. 7 

3.C. Master Solicitation For Commodity Procurements (MSCP).......................................... 7 

3.D. USDA Commodity Requirements .................................................................................. 7 

3.E. Invitation For Bid (IFB).................................................................................................. 8 

3.F. Receipt Of Offers............................................................................................................ 8 

3.F.1 Domestic Offers...................................................................................................... 8 

3.F.2 Export Offers .......................................................................................................... 8 

3.G. Contract Acceptance Terms............................................................................................ 9 

3.H. Contract Terms And Conditions..................................................................................... 9 

3.I. Subcontracting Opportunities......................................................................................... 9 

3.J. General Contracting Information.................................................................................... 9 

Part 4 CHECKLIST FOR CONTRACTORS ..................................................................... 10 

Part 5 SMALL BUSINESS.................................................................................................... 12 

5.A. Socially And Economically Disadvantaged Concerns 8(a).......................................... 12 

5.B. Women-Owned Business Concerns.............................................................................. 13 

5.C. HubZone Small Businesses........................................................................................... 13 

5.D. Service-Disabled Veterans And Veteran-Owned Small Businesses ............................ 13 

Part 6 GLOSSARY OF COMMONLY USED TERMS..................................................... 14 

 
FORWARD 

The procurement policy of the Government is to stimulate competition among prospective 

contractors and to award contracts on a competitive basis according to the policies and

procedures set forth in the Federal Acquisition Regulation (FAR) and the Agriculture 

Acquisition Regulation (AGAR). The Government also strives to ensure that small, small 

disadvantaged, veteran-owned, service-disabled veteran-owned, HUBZone, and women-owned 

small businesses receive a fair and equitable share of the contracts awarded by the Government. 

This Guide for Selling Agricultural Commodities to the Government has been prepared to 

describe what the USDA’s, Farm Service Agency (FSA), Commodity Operations procures and 

how all prospective contractors can participate. The information contained in this booklet is 

designed to encourage participation in these programs and advise small business concerns of 

special opportunities available to them. 

The USDA prohibits discrimination in all its program and activities on the basis of race, color, 

national origin, age, disability, and where applicable, sex, marital status, familial status, parental 

status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all 

or part of an individual’s income is derived from any public assistance program (not all 

prohibited bases apply to all programs). Persons with disabilities who require alternative means 

for communication of program information (Braille, large print, audiotape, etc.) should contact 

USDA’s TARGET Center at (202) 720-2600 (voice or TDD). To file a compliant of 

discrimination, write to USDA, Director, Office of Civil Rights, 1400 Independence Avenue, 

SW., Washington, DC 20250-9410, or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). 

USDA is an equal opportunity provider and employer. 

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Part 1 ORGANIZATION

1.A United States Department Of Agriculture (USDA)

USDA programs help to alleviate poverty, hunger, and malnutrition throughout the nation 

and around the world. USDA strives to improve and maintain farm income and to 

develop and expand markets for U.S. agricultural products domestically and abroad. 

1.B. Commodity Credit Corporation(CCC)

CCC is a wholly owned Government corporation within USDA created to stabilize, 

support, and protect farm income and prices. CCC provides funding for farm programs 

and for the acquisition, storage, and disposal of agricultural commodities. CCC has no 

employees of its own. Storage of price support commodities, acquisition of commodities 

for domestic and export food distribution programs, and disposal activities for price 

supported commodities are carried out primarily by the personnel of the Farm Service 

Agency. U.S. agricultural commodities purchased through CCC help alleviate hunger on 

a global as well as domestic basis. 

1.C. Farm Service Agency (FSA)

FSA was established on November 8, 1995, by the Secretary of Agriculture. FSA is the 

USDA agency responsible for administering many CCC programs. FSA administers 

agricultural price and income support, production flexibility and conservation reserve, 

and agricultural conservation programs. In addition, FSA administers farm-related 

agricultural credit programs formerly administered by the Farmers Home Administration. 

1.D. Kansas City Commodity Office (KCCO)

KCCO has specific responsibility to acquire, handle, store, and dispose of commodities 

held by CCC. KCCO procures commodities through purchases under the Milk Price 

Support Program and from commercial stocks to fill requests from the Food and 

Nutrition Service (FNS), Foreign Agricultural Service, and the U.S. Agency for 

International Development (USAID). It also contracts for service to process and/or 

repackage commodities. It administers contracts awarded by the Agricultural Marketing 

Service for shipments of meats, poultry, fruits, and vegetables for domestic food 

distribution programs administered by the FNS. KCCO works closely with contractors 

and distributing agencies for storage and shipment of food for domestic and international 

feeding programs. 

1.E. Kansas City Finance Office (KCFO)

KCFO issues payments to producers, contractors and processors for the satisfactory 

delivery of commodities. 

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Part 2 FOOD ASSISTANCE PROGRAMS 

2.A. Commodities For Domestic Food Distribution Programs

FNS administers domestic food distribution programs. FNS provides guidance and 

coordinates its activities with state agencies which are responsible for distributing 

commodities within each state. KCCO coordinates with FNS to purchase and supply

commodities used in a variety of programs including the National School Lunch 

Program, the Summer Food Service Program, the Child and Adult Care Food Program, 

School Breakfast Program, Food Distribution on Indian Reservations as well as feeding 

programs for low income older Americans, pre- and post-partum women, and children. 

For more information concerning commodities for domestic food distribution programs

contact: 

Kansas City Commodity Office 

Dairy and Domestic Operations Division 

Mail Stop 8718 

P.O. Box 419205 

Kansas City, MO 64141-6205 

Phone: (816) 926-6124 

FAX: (816) 823-4195 

Domestic Feeding Program Commodity Requirements, which include commodity 

specification, packaging and marking requirements, are available at: 

http://www.fsa.usda.gov/daco/CommRequirements.htm. 

2.B. Processed And Packaged Commodities For Export Programs

KCCO procures and supplies commodities on behalf of USAID and USDA’s FAS for

overseas humanitarian and developmental use under Titles II and III of P.L. 480, Food 

for Progress, Section 416(b), and Global Food for Education Initiative. Cooperating 

sponsors include private voluntary organizations such as CARE and Catholic Relief 

Services as well as the United Nation’s World Food Program, which distributes many of 

the commodities overseas. 

For more information concerning commodities for export programs contact: 

Kansas City Commodity Office 

Export Operations Division 

Mail Stop 8738 

P.O. Box 419205 

Kansas City, MO 64141-6205 

Phone: (816) 926-6707 

FAX: (816) 926-6767 

Export Donation Program Commodity Requirements, which include commodity 

specification, packaging and marking requirements, are available at: 

http://www.fsa.usda.gov/daco/CommRequirements.htm. 

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2.C. Bulk Commodities For Export Programs

Bulk Commodities Division (BCD) markets and manages cotton, grain, oilseeds, rice, 

peanuts and sugar inventories which are owned by CCC. BCD regularly analyzes the 

location, condition, and quantity of these stocks. BCD administers agreements for 

storage under the Uniform Grain and Rice Storage Agreement (UGRSA), the Cotton 

Storage Agreement (CSA), Peanut Storage Agreement (PSA) and the Processed 

Commodities Storage Agreement (PCSA), as amended, for sugar. It assures compliance 

with UGRSA, CSA, Sugar Storage Agreement (SSA), PCSA, and program regulations. 

In accordance with program objectives and authorized directives, BCD determines and 

posts applicable county prices, acquires and sells exchanges or otherwise disposes of 

grain, oilseeds, sugar, peanuts, cotton and rice. BCD prepares and issues invitations for 

bid for purchases and sales of assigned commodities. It coordinates ocean freight 

bookings for bulk grain donation programs. 

For more information, contact: 

Kansas City Commodity Office 

Bulk Commodities Division 

Mail Stop 8748 

P.O. Box 419205 

Kansas City, MO 64141-6205 

Phone: (816) 926-6437 

FAX: (816) 823-1804 

Requirements for bulk commodities for Export Donation Programs, which also 

include and packaging and marking requirements, are available at: 

http://www.fsa.usda.gov/daco/CommRequirements.htm. 

2.D. Quantities And Purchasing Frequency

Commodity purchases are based on program needs and the availability of funds 

authorized by Congress. Export purchases are made monthly. Domestic purchases are 

made quarterly. Dairy cheese and infant formula purchases are once a year. In a typical 

year, approximately $2 billion are spent by USDA in support of both international and 

domestic food assistance programs. 

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Part 3 THE ACQUISITION PROCESS 

3.A. Qualifying As A Prospective Contractor

A prospective contractor shall be qualified prior to submitting offers in response to 

invitations for bid (IFB) or requests for proposals. An interested prospective contractor 

shall fully complete and provide all materials required by the qualification requirements. 

Applications may be submitted at any time. The qualification requirements are available 

at: http://www.fsa.usda.gov/daco/qualifications.htm. 

3.B. Additional Information About The Procurement Process

Procurement and related public information about the KCCO’s Master Solicitation for 

Commodity Procurements (MSCP), IFBs, USDA Commodity Requirements, and 

contract awards are available at: www.fsa.usda.gov/daco/default.htm. 

To subscribe to receive IFBs, contract awards, and other contract-related information, 

access the internet at: http://www.fsa.usda.gov/daco/subscribe.asp. Enter your e-mail 

address and select the appropriate mailing list. Indicate whether you want to receive one 

e-mail daily containing all releases or to receive an e-mail immediately whenever a 

release is posted. Procurement mailing lists are currently available for: 

• Bulk Commodities Information 

• Export Information 

• Dairy Information 

• Domestic Information 

Other lists provide subscribers information on other KCCO programs. 

3.C. Master Solicitation For Commodity Procurements (MSCP)

The MSCP is used for the solicitation of bids and award of contracts for various 

commodities under domestic and international food assistance programs administered by 

KCCO. KCCO will periodically issue IFBs requesting particular commodities being 

procured. Each IFB will contain a web link to the MSCP. 

Bidders are required to read the MSCP, IFB, and USDA Commodity Requirements to 

understand the solicitation, evaluation and award process for commodity acquisitions. 

The MSCP will be updated as necessary to incorporate changes in law, regulation, and 

acquisition policies and procedures. Bidders should not assume that a copy of the MSCP, 

once downloaded, will remain in effect indefinitely. The MSCP is subject to change. 

The effective date at the top of the MSCP document will govern which version of the 

MSCP is applicable to a particular IFB. The MSCP is available at: 

http://www.fsa.usda.gov/daco/CommRequirements.htm. 

3.D. USDA Commodity Requirements

USDA commodity requirements document provides a particular commodity group’s 

specifications, packaging, and marking requirements. All pertinent commodity 

requirements documents are provided to prospective bidders through the IFB issued by 

KCCO, and upon contract award, the commodity requirements document applicable to 

the commodity purchased is incorporated as part of the contract terms and conditions. 

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USDA commodity requirements for all commodity groups are available at: 

http://www.fsa.usda.gov/daco/CommRequirements.htm. 

3.E. Invitation For Bid (IFB)

KCCO issues IFBs to all qualified contractors inviting bids to sell commodities to USDA. 

Information contained in an IFB includes but is not limited to commodity group, 

quantities, shipping periods, due dates for submission of bids, and other information not 

contained in the MSCP or USDA Commodity Requirements. IFBs are available 

electronically through the internet. 

• Bulk Grain Invitations: ftp://165.221.16.16/public/grain/default.htm

• Dairy Invitations: ftp://165.221.16.16/public/dairy/default.htm

• Domestic Invitations: ftp://165.221.16.16/public/domestic/default.htm

• Export Invitations: ftp://165.221.16.16/public/export/default.htm

3.F. Receipt Of Offers

Bids are due in KCCO by the exact time and date specified in the IFB. After a 

prospective contractor becomes qualified, additional information will be provided 

explaining the applicable bid system: 

• Domestic Electronic Bid Entry System (DEBES) 

• Export Bid Entry System (EBES) 

• Long Term Contracting System (LTCS) 

• Facsimile for BCD 

3.F.1 Domestic Offers

Offers for domestic commodities (including commodities destined for Puerto 

Rico, Virgin Islands and Trust Territories) are submitted on a free on board

(f.o.b.) destination basis. The price offered by the supplier includes commodity, 

packaging, and transportation costs to the final destination. Each offer must 

include the method of transportation, i.e., rail or truck. Offers are evaluated for 

conformance to the terms of the IFB, MSCP, USDA commodity requirements, 

and lowest available price. 

3.F.2 Export Offers

The commodity bridgepoint offers product(s) free along side (f.a.s.), free on board 

(f.o.b.) for bulk shipments, plant, or intermodal bridgepoint to various U.S. 

destinations, coastal ranges, and ports. The f.a.s. offer price includes the cost of 

the commodity, inland freight to the port, and all applicable port charges. KCCO 

determines the available ocean service and applicable ocean freight rates during 

the time the solicitation is open and enters the basic background information into 

its computer files for analyzing bids and determining the lowest-landed cost. 

Prospective contractors shall use the most advantageous port or range of ports in 

order to offer their lowest-landed cost. However, prospective contractors are 

encouraged to make offers at various ranges, ports, and f.o.b. points. The 

contractor is liable for delivery as prescribed in the contract. 

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3.G. Contract Acceptance Terms

USDA will evaluate offers in response to a solicitation without discussions and will 

award a contract to the responsive, responsible offeror whose offer conforming to the 

solicitation will be most advantageous to the Government considering price and other

price-related factors, if applicable. 

3.H. Contract Terms And Conditions

The contract between the Government and the contractor will consist of: (1) the IFB; (2) 

the MSPC; (3) the USDA Commodity Requirements; and (4) the offer. Any 

inconsistencies in the contract can be resolved by giving precedence in the following 

order: 

1. The Invitation for Bids 

2. Solicitation provisions 

3. Contract clauses 

4. USDA Commodity Requirements 

5. TQSA Suppliers Guidelines 

6. Other documents, exhibits, and attachments 

3.I. Subcontracting Opportunities

Being a prime contractor to the government is only one strategy for pursuing contract 

opportunities. Small Business Concerns, (SBC) can also become subcontractors to 

government prime contractors. FAR Subpart 19.7 requires that all prime contracts over 

$500,000 awarded to large businesses have a subcontracting plan maximizing the use of 

small business subcontractors. An SBC may be awarded a subcontract. Small businesses 

can contact other entities, (large or small) to take advantage of potential subcontracting 

opportunities with KCCO qualified vendors. Refer to the lists of qualified vendors at: 

http://www.fsa.usda.gov/daco/qualifications.htm

Additional subcontracting resources are available at: http://web.sba.gov/subnet

3.J. General Contracting Information

KCCO generally uses sealed bid method (FAR Part 14) for the procurement of 

commodities. IFBs are available electronically on the FSA website and via an e-mail 

subscription.

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Part 4 CHECKLIST FOR CONTRACTORS 

Prospective contractors can ensure that their offers move through the acquisition process 

smoothly and successfully by following this checklist: 

Read Solicitation Documents Carefully

Offerors are expected to adhere to all instructions and specifications set forth in the 

IFB, MSCP, and USDA Commodity Requirements. The solicitation package will 

indicate where to obtain additional information. If in doubt about the meaning of 

any part of the solicitation package, contact the contracting officer identified in the 

IFB. 

Prepare Your Offer Accurately

An offer is a response to a solicitation that, if accepted, would bind the offeror to 

perform the resultant contract. Responses to IFBs are offers called “bids” or “sealed 

bids.” 

Include All Your Costs

Be sure to include all costs required to meet the terms and conditions of the contract, 

e.g., labor, overtime, packaging, markings, enrichments, transportation, inspection, 

etc. It is extremely important to consider these costs when preparing your offer. 

Submit Your Offer on Time

Offers shall be submitted as prescribed in the IFB. Your offer shall be received no 

later than the time set for bid opening. Otherwise, it will not be considered. 

Get It in Writing

Do not begin to work or provide any materials, equipment, or services based on an 

oral request unless you are provided a contract number and are certain that you are 

dealing with a contracting officer (CO) or a contracting officer representative 

(COR). Wait until you have received written notice, i.e., a properly executed 

contract document from the CO, before starting work or incurring any cost. 

Read Your Contract

Your contract explains your obligations and rights. It protects both you and the 

Government. 

Comply with the Terms of the Contract

The IFB, MSCP, and USDA Commodity Requirements precisely describe the 

properties or materials, quality, quantities delivery schedules as well as other 

specifications and requirements in which you shall comply. 

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Consult with the Contracting Officer or the Contracting Officer Representative

Make sure you are dealing with a CO or COR. Any questions arising related to your 

performance under the contract should be discussed with the CO or COR. 

Deliver on Schedule

Plan your production schedules to meet the shipment or delivery dates specified in 

the contract.

Know the Payment Procedures; Bill Accurately

Government regulations protecting you as a taxpayer require that you submit a bill 

that is accurate in all respects. Errors in billing may delay payments. Become

familiar with the provisions of the Prompt Payment Act (FAR Subpart 32.9). 

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Part 5 SMALL BUSINESS

It is the policy of the Government that a fair portion of the purchases and contracts for 

supplies and services will be set aside for: 

• Small business 

• Service-disabled veteran-owned small business 

• HUBZone small business 

• Small disadvantaged business 

Generally, a firm is considered small if it is independently owned and operated, is not 

dominant in the field of operations in which it is bidding, and can further qualify under 

the criteria set forth in the Small Business Administration’s (SBA) small business size 

standards regulation (13 CFR 121.601). These criteria include number of employees, 

annual receipts, affiliates, and other applicable factors. A small business concern which 

meets the criteria prescribed in the regulation may represent or self-certify that it is a 

small business for the particular contract involved. Small disadvantaged and HUBZone 

small businesses shall be certified by SBA. 

If yours is a small business concern, take advantage of the special opportunities that are 

provided for you to compete on contracts. A purchase which is restricted to small 

business bidders is identified as such in the IFB. Refer to FAR Part 19 for detailed 

information on the set-aside programs. 

Small firms owned and controlled by eligible disadvantaged individuals will be assisted 

in their efforts to become independently competitive. For more information on this 

program, visit the SBA’s website at: www.sba.gov. 

5.A. Socially And Economically Disadvantaged Concerns 8(a)

Section 8(a) of the Small Business Act, 15 U.S.C. 637(a), authorizes the SBA to enter 

into contracts with contracting agencies and then to subcontract the actual performance to 

certain small business concerns. Section 8(a) contracting procedures are covered under 

FAR Subpart 19.8. Whenever the SBA certifies that a small socially and economically 

disadvantaged business concern is competent to perform a particular contract that is being 

considered, the CO and SBA shall negotiate an agreement on all the terms and conditions 

of the contract including price. Then the SBA with the assistance of the CO, if necessary, 

negotiates placement of the subcontract with the eligible concern. During contract 

performance, the contracting agency directly administers the subcontract and makes 

payment directly to the 8(a) subcontractor. SBA’s criteria for participation in the 8(a)

program are described at 13 CFR 124.103, which states: 

“In order to be eligible to participate in the section 8(a) program, an applicant 

concern shall be one which is at least 51% owned by an individual(s) who is a 

citizen of the United States (specifically excluding a resident alien and who is 

determined to be socially and economically disadvantaged by SBA.)” 

To participate in the program, an individual shall be both socially and economically 

disadvantaged. By law socially disadvantaged individuals include Black Americans, 

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American Indians, Spanish Americans, Asian Americans, Eskimos and Aleutians. The 

economic disadvantage determination requires SBA to examine the applicant’s net worth 

and access to capital markets, etc. The SBA’s goal is to assist socially and economically 

disadvantaged people establish businesses and through the award of contracts, become

viable and competitive. The 8(a) business development website is available at: 

www.sba.gov/8abd/. 

5.B. Women-Owned Business Concerns

On May 18, 1979, Executive Order 12138 was signed and created a National Women’s 

Business Enterprise Policy. This policy prescribed arrangements for developing, 

coordinating, and implementing a national program for women owned business 

enterprises. More specifically, each department and agency within the Executive Branch 

was directed, within the constraints of statute authority and as otherwise permitted by

law, to take appropriate action to facilitate and strengthen women’s business enterprises 

and to ensure women’s full participation in the enterprise system. This policy is 

contained in FAR Subpart 19.9. The Women’s Business Center website is available at: 

www.onlinewbc.gov/. 

5.C. HubZone Small Businesses

The purpose of the program is to provide federal contracting opportunities for qualified 

small business concerns located in distressed communities in an effort to promote private 

sector investment and employment opportunities in these communities. Fostering the 

growth of federal contractors in these areas and ensuring that these contractors become

viable businesses for the long term will help to empower these areas while not adversely 

affecting recent efforts to streamline and improve the federal procurement process. After 

determining eligibility, the SBA lists qualified contractors on its website, which is 

available at: www.sba.gov/hubzone/. 

5.D. Service-Disabled Veterans And Veteran-Owned Small Businesses

A veteran-owned small business concern is a small business concern in which: (1) not 

less than 51% of which is owned by one or more veterans as defined at 38 U.S.C. 101(2), 

or in the case of any publicly owned business, not less than 51% of the stock of which is 

owned by one or more veterans; or (2) the management and daily business operations of 

which are controlled by one or more veterans. Information about these programs is 

available at: www.sba.gov/vets/. 

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Part 6 GLOSSARY OF COMMONLY USED TERMS 

Agriculture Acquisition Regulation (AGAR) is USDA’s supplement to the FAR. The

AGAR is available at: http://www.usda.gov/procurement/policy/agar.html. 

The Agricultural Marketing Service (AMS) is the USDA agency that facilitates the 

strategic marketing of agricultural products in domestic and international markets while 

ensuring fair trading practices and promoting a competitive and efficient marketplace. 

AMS constantly works to develop new marketing services to increase customer 

satisfaction. Additional information about AMS is available at: 

http://www.ams.usda.gov/. 

Contract is the document that includes various commitments that obligate the 

Government to an expenditure of appropriated funds. 

Contracting Officer (CO) is the designated individual within the contracting agency who 

has been formally appointed to plan, administer, and terminate a contract. 

Contracting Officer Representative (COR) is the designated individual, who is appointed 

by the CO, to assist in administering a contract. 

Contractor is a person, firm, corporation, or other legal entity obligated under the contract 

with the Government. 

Domestic Delivery Orders (D/O’s): 

• KCCO is responsible for contract administration, which includes issuing the 

Notice to Deliver (N/D) and providing commodity transportation support. 

Domestic Electronic Bid Entry System (DEBES) is the automated bid entry system for

commodities procured by the Dairy and Domestic Operations Division. Once a 

prospective contractor is qualified to submit offers on domestic and/or dairy 

commodities, it will receive a contractor identification number and access to DEBES. 

DEBES allows for bid entry, modification, withdrawals of bids, and price adjustment. 

Export Bid Entry System (EBES) is the automated bid entry system for commodities 

procured by the Export Operations Division. Once a prospective contractor is qualified 

to submit offers on foreign food aid, it will receive a contractor identification number and 

access to EBES. EBES allows for bid entry, modification, withdrawals of bids, and price 

adjustment. 

The Food and Nutrition Service (FNS) is the USDA agency that increases food security 

and reduces hunger in partnership with cooperating organizations by providing children 

and low-income people access to food, a healthy diet, and nutrition education in a manner 

that supports American agriculture and inspires public confidence. KCCO procures most 

of the dairy and dry packaged commodities used in FNS’s domestic food distribution 

 Page 14
programs. Additional information about FNS is available at: 

http://www.fns.usda.gov/fns/. 

The Foreign Agricultural Service (FAS) is the USDA agency that works to improve 

foreign market access for U.S. products. This agency operates programs designed to 

build new markets and improve the competitive position of U.S. agriculture in the global 

marketplace. Additional information is available at: http://www.fas.usda.gov/

Federal Acquisition Regulation (FAR) is the system established for the codification and 

publication of the uniform policies and procedures for acquisition by all executive 

agencies. The FAR is issued as Chapter 1 of CFR 48. The FAR is available at: 

www.arnet.gov/far. 

Long Term Contracting System (LTCS) is an automated system for long-term contracts 

such as cheese. The LTCS contains features that are unavailable within DEBES. 

Lowest-landed cost is the lowest combined cost of commodity and ocean freight to 

deliver a commodity to an overseas destination while adhering to cargo preference 

statutes and regulations. 

Most Advantageous to the Government is the offer that best complies in all respects with 

the IFB and has the lowest cost to the government when considering price and other 

related factors. 

Responsible Prospective Contractor is the contractor that has adequate financial resources 

or the ability to obtain such resources required during the performance of the contract, 

can comply with the required or proposed delivery or performance schedule, has 

satisfactory records of performance and a satisfactory record of integrity and business 

ethics, and is otherwise qualified and eligible to receive an award. 

Responsive Offeror is the offeror that complies in all material aspects of the IFB. It 

offers to provide goods or services needed in accordance with the specification and 

delivery schedules set forth in the IFB. It contains no restrictions or qualifications 

beyond those permitted in the solicitation. 

Total Quality Systems Audit (TQSA) is a review of the quality of the manufacturing 

process, rather than to the finished product characteristics. TQSA ensures that a supplier 

has the capability to produce, and provide the customer with, the desired product. TQSA 

also places the primary responsibility for product quality and contract compliance on the 

manufacturer and not the Government. The Invitation for Bid will specify if a product is 

subject to TQSA. 

United States Agency for International Development (USAID) is an independent agency 

that provides economic, development and humanitarian assistance around the world in 

support of the foreign policy goals of the United States. KCCO procures most of the food 

aid commodities used in USAID’s programs. 

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