[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1486.303]

[Page 770-771]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1486_EMERGING MARKETS PROGRAM--Table of Contents
 
                      Subpart C_Program Operations
 
Sec. 1486.303  What specific contracting procedures must be adhered to?

    (a) The Recipient has full and sole responsibility for the legal 
sufficiency of all contracts it may enter into with one or more third 
parties in order to carry out an approved project and shall assume 
financial liability for any costs or claims resulting from suits, 
challenges, or other disputes based on contracts entered into by the 
Recipient. Neither CCC nor any other agency of the United States 
Government or any official or employee of CCC or the United States 
Government has any obligation or responsibility with respect to 
Recipient contracts with third parties.
    (b) Recipients are responsible for ensuring to the extent possible 
that the terms, conditions, and costs of contracts constitute the most 
economical and effective use of project funds.
    (c) All fees for professional and consulting services paid to third 
parties in any part with project funds must be covered by written 
contracts.
    (d) A Recipient shall:

[[Page 771]]

    (1) Ensure that all expenditures for goods and services in excess of 
$25 reimbursed by CCC are documented by a purchase order, invoice, or 
contract;
    (2) Ensure that no employee or officer participates in the selection 
or award of a contract in which such employee or officer, or the 
employee's or officer's family or partners has a financial interest or 
gains a financial benefit;
    (3) Conduct all contracting in an open manner. Individuals who 
develop or draft specifications, requirements, statements of work, 
invitations for bids, or requests for proposals for procurement of any 
goods or services shall be excluded from competition for such 
procurement;
    (4) Base each solicitation for professional or consulting services 
on a clear and accurate description of the requirements for the services 
to be procured;
    (5) Perform some form of fee, price, or cost analysis, such as a 
comparison of price quotations to market prices or other price indicia, 
to determine the reasonableness of the offered fees or prices; and
    (6) Document the decision-making process.