Invitation_No._4_Sale_of_HRW_Wheat.docx

ANNOUNCEMENT SMAC 3 Date: 5/23/17 (Sale of Miscellaneous Agricultural Commodities) Invitation No. 4 – Hard Red Winter Wheat (HRW)

The Commodity Credit Corporation (CCC) invites offers to purchase Hard Red Winter (HRW) Wheat in-store for unrestricted use in accordance with the terms and conditions of Announcement SMAC 3, path provided below:

http://www.fsa.usda.gov/programs-and-services/commodity-operations/procurement-and-sales/sales/index

CCC-owned wheat inventory information may be obtained from CCC’s catalog listing, which is attached to this Invitation.

CCC-owned wheat will be sold and released in store at the primary code location listed in the catalog, using the factors shown on the warehouse receipt. The in-charge has been paid by the producer. Although CCC does not guarantee the quality of the wheat that will be loaded out, warehouse operators are obligated to deliver the warehouse receipt liability. CCC will not pay the load out charges.

The warehouse operator is obligated to load out of the advertised location, unless otherwise agreed upon by the buyer. Furthermore, the warehouse operator is responsible for any freight differential from a location other than the advertised location.

Prior to submitting a bid, interested parties are:

· Advised to check with the storing warehouse operator regarding applicable load out rates, scheduling, quality and location of the commodity, and

· Strongly urged to work with storing warehouse operator(s) to establish premium and discount schedules in case of quality or location discrepancies.

Any differences must be settled between the buyer and the storing warehouse operator.

Storage for the account of CCC will be through the date of contract. The date of contract will be the date the buyer was notified of their successful bid. The buyer is responsible for paying storage charges in accordance with the CCC Storage Agreement - Uniform Grain and Rice Storage Agreement (CCC-25), which is stated below.

PART II - GENERAL TERMS

A. Scope

1. Unless otherwise specified in this Agreement, the provisions of this Agreement apply to all CCC-interest grain as of the date of deposit or the date title is transferred to CCC, until such grain is loaded out or title is transferred from CCC to another party (transferee).

2. If CCC transfers title to CCC-owned grain in store, the storage and handling rates applicable to the transferee with respect to such grain shall not exceed CCC’s schedule of rates in effect at the time of title transfer until the earlier of:

a) 60 calendar days, or

b) The day the grain is loaded out of the warehouse by any party.

3. Notwithstanding 2 above, if CCC transfers title to CCC-owned grain in store, the storage and handling rates contained in the schedule of rates will apply to such grain until it is loaded out, provided the transferee, in writing, orders the grain loaded out for immediate shipment within 30 calendar days after the date title is transferred by CCC.

Purchaser must submit to CCC payment equal to 100% of contract value within five business days after the date of contract. If payment is not received within five business days of contract date, interest will accrue for the account of the buyer on the sixth business day and continue up to the date payment is received by CCC. It is not acceptable for a purchaser to withhold payment in favor of continuing to pay interest to CCC. Also, if payment is not received within five business days, CCC will consider it a contract violation and reserves the right to terminate the contract for default.

No offer on any one catalog lot number will be contingent upon the acceptance of another catalog lot number. Offers on partial lots are unacceptable. Lots must be bid on in full.

Offers and any modifications or withdrawals of offers must be received in the Kansas City Commodity Office (KCCO) by 12:00 p.m., central time (CT), May 31, 2017.

Successful offeror will be notified of acceptance by telephone by 12:00 p.m., CT, June 1, 2017.

SUBMISSION OF OFFERS

How to Submit Offers

(1) Offers, modifications, withdrawals, and cancellations shall be submitted by the following method.

Send by e-mail, which the Offer Form B will need to be scanned and e-mailed to: CMD.Merchandising@FSA.USDA.GOV. Place in the subject line “Offer under Announcement SMAC3, Inv. 4.”

Or by fax: 877-814-3546

(2) Attached Offer Form B must be completed and signed. Reproductions of the Offer Form are acceptable.

Where to Submit Offers

(1) Offers, modifications, withdrawals, and cancellations of offers shall be submitted to KCCO and must be received by the date and local time specified in this Invitation for receipt of offers.

By e-mail: CMD.Merchandising@FSA.USDA.GOV Or by fax: 877-814-3546

(2) The recorded date and time per incoming e-mail will serve as proof of receipt for KCCO and CCC, OFFERORS ARE RESPONSIBLE FOR THE TIMELY RECEIPT OF OFFERS AND AMENDED CHANGES. No offers, modifications, withdrawals, or cancellations will be accepted by telephone.

TRANSFER OF TITLE

The transfer of title to successful offeror will occur upon delivery and/or electronic transfer of warehouse receipts by CCC. The mailing and/or electronic transfer of the warehouse receipts will occur after receipt of payment and wire release notification is given to the buyer by CCC. If payment is received by check, the check must clear the bank before warehouse receipts will be mailed and/or electronic transferred.

FINANCIAL ARRANGEMENTS

Payment submitted by cashier’s check, bank check, or company check:

USDA/FSC/RMO

Mail Stop 8212 PO Box 419205 Kansas City, MO 64141 Payment submitted by Wire Transfer of funds:

Commodity Credit Corporation Account Number: 00004992 Special Instructions: BNF=/AC-4992 OBI=CCC! ABA#021030004 Federal Reserve Bank of New York 33 Liberty Street New York, NY 10045 On the beneficiary line, please reference: Contract Number

There is a Nebraska and Kansas receipt that are paper warehouse receipts. There are also Kansas warehouse receipts that are electronic warehouse receipts. So on the electronic warehouse receipts, upon an award, the offeror must be a registered user of the eGrain system. As a registered user, you are eligible to be a holder of Electronic Warehouse Receipts (EWR), which may require a minimum fee and signing an agreement with eGrain. Below is a link to the eGrain registration page: https://www.egrain.com/registration/registration.aspx

False Statements

Participation in this program is certification with full knowledge of the provision of 15 U.S.C. 714m(a), for making any statement knowing it to be false, for the purpose of influencing in any way the action of the United States Department of Agriculture.

Further information on this Announcement/Invitation may be obtained by contacting:

Kansas City Commodity Office Commodity Management Division Merchandising Branch Telephone: (816) 926-3816 E-mail: Martha.mitchell@kcc.usda.gov or Kenneth.knosp@kcc.usda.gov

Martha Mitchell CCC Contracting Officer Kansas City Commodity Office Attachments (Catalog and Offer Form)

OFFER FORM B

HARD RED WINTER (HRW) WHEAT

INVITATION NO. 4

In accordance with the HRW Wheat Invitation No. 4, dated May 23, 2017, the undersigned bids the following:

E-mail address:

Warehouse Code

Signature________________________________________ Date ____________________

Title __________________________________________

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