The U.S. Department of Agriculture (USDA) Agricultural Marketing Service (AMS) will host a conference call with interested parties to discuss the draft economic price adjustment language for future purchases of fresh fluid milk for distribution to various food nutrition assistance programs on Thursday, Jan. 31, 2019, at 12 p.m. ET. To join the call dial 888-844-9904 and enter access code 1693356.
AMS recently released the draft economic price adjustment (EPA) language, which will be used to adjust the per-gallon price for fluid milk from the solicitation month to the delivery month.
Offers shall be submitted as an F.O.B. destination price per unit (i.e. gallons) for the stated line item quantity. The final price paid will be the bid price adjusted by the EPA for the month in which the milk is delivered. The EPA accounts for the differences in the announced Base Skim Milk Price for Class I and Advanced Butterfat Pricing Factor applicable for the month in which the solicitation is announced from those applicable for the delivery month.
The EPA may be positive, negative or zero and adjusts for changes in raw milk cost. The EPA does not adjust for other input cost changes. AMS will report the EPA on or before the 28th of the month prior to delivery and issue the pricing change through a contract modification.
Offerors are urged to review all documents as they pertain to this program, including:
- Qualification Requirements for Prospective Contractors Selling Commodities to USDA, March 1, 2017.
- AMS Master Solicitation for Commodity Procurements (MSCP), April 12, 2017.
- Applicable commodity specifications and additional requirements identified in the subsequent solicitations.
These documents are available at https://www.ams.usda.gov/selling-food on the AMS website.
To be eligible to submit offers, potential contractors must meet the AMS vendor qualification requirements. Contact Andrea Lang at (202) 720-4237 or NewVendor@ams.usda.gov for more information about becoming a new vendor.
Vendors who meet the qualification requirements will be provided access to the Web-Based Supply Chain Management (WBSCM) system. Bids, modifications, withdrawals of bids and price adjustments submitted outside of this system will not be considered valid.
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