kcpbs2_invitation_2.pdf

July 23, 2013 Invitation No. 2 under Announcement KCPBS2 1

UNITED STATES Farm Date Issued: July 23, 2013 DEPARTMENT OF Service AGRICULTURE Agency

ANNOUNCEMENT KCPBS2

Invitation No. 2

Purchase of Raw Cane Sugar

On June 18, 2013, the Commodity Credit Corporation (CCC) announced its intention to purchase sugar in exchange for Refined Sugar Re-export Program (RSRP) credits. CCC anticipates a Federal Register Notice on July 26, 2013, to coincide with this Invitation, for its intention to purchase raw cane sugar pledged as collateral for CCC loan and a same-day exchange for RSRP credits.

CCC initially intended to purchase an aggregate quantity of approximately 45,359 metric tons (MT) of raw cane sugar under this Invitation. However, due to government-wide budget cuts of 5.1 percent, known as sequestration, the intended quantity for this Invitation is reduced to approximately 43,046 MT.

CCC will consider offers from domestic raw cane sugar processors, subject to the terms and conditions of Announcement KCPBS2, to sell sugar to CCC.

To be eligible to sell sugar to CCC, offered sugar must be pledged as collateral for a CCC loan by the time the price offer is due (July 29). The quantity of sugar accepted by CCC will not exceed the sugar processor’s outstanding loan quantity. Processors must redeem the loan quantity offered and awarded the same day of contract award, by repaying the applicable loan quantity at principal plus interest. The quantity awarded by CCC will be applied to the processor’s earliest maturing loan(s).

CCC’s cost to purchase commodities may not equal or exceed the costs associated with CCC loan forfeitures. Any offers to sell sugar to CCC at a rate equal to or higher than CCC’s expected costs associated with loan forfeitures (offer cap) will be rejected and receive no additional consideration. State and regional offer caps for raw cane sugar are detailed below:

Raw Cane Sugar (basis 96 polarity) State Florida Hawaii Louisiana Texas

Offer Cap (MT)

$413.65735

$401.20735

$443.21593

$430.26604

July 23, 2013 Invitation No. 2 under Announcement KCPBS2 2

If the offer is accepted, the storing processor/warehouse operator agrees to deliver high quality, free-flowing sugar to CCC. CCC plans to dispose of any sugar purchased through this invitation by exchanging the sugar for RSRP credits. The storing warehouse operator also agrees that receiving charges are not applicable and any storage or load out charges will not exceed rates in the Sugar Storage Agreement (SSA).

Offers for the exchanges will be analyzed, on a bulk, instore basis, for each location in conjunction with corresponding offers to sell sugar to CCC. Quantity of offers can be reduced (but not increased) up until price offers are due. CCC reserves the right to award less than the quantity offered. Conditional offers will not be considered.

The quality of the CCC purchase of raw cane sugar will be based on the IntercontinentalExchange (ICE) number 16 quality standard for polarity at 96 degrees. Any sugar purchased by CCC will be exchanged, instore, basis the same quality as purchased. Sugar offeror can reduce the quantity of sugar delivered if the polarity is greater than 96 degrees. CCC does not warrant any contract disputes and will not be responsible for the quantity or quality of sugar delivered out of the storage facility nor for any storage or handling charges, including load out. The holders of RSRP credits will be encouraged to contact warehouse operators in advance of offering, to discuss the quality of sugar to be delivered, a delivery schedule, and to prearrange a schedule for premiums and discounts.

Please submit your offer on the attached Offer Form CCC-331A. Offers (quantity, polarity, offer price, and loadout) should be submitted basis MT. For the purposes of this invitation, the conversion factor for 1 MT equals 2,204.62262 pounds. The minimum acceptable quantity per offer is 5,000 MT.

QUANTITY OFFER DUE DATE: 1:30 p.m. (CT), July 25, 2013

NOTE: Submit CCC-331A, excluding catalog item no. and offer price (Blocks 3A and 3F).

Quantities can be reduced up until price offers are due.

On July 25, 2013, by 7:30 p.m. (CT), a catalog listing with all offered quantities will be available at:

http://www.fsa.usda.gov/FSA/webapp?area=home&subject=coop&topic=landing On July 25, 2013, by 7:30 p.m. (CT), an Invitation for the exchange of available raw cane sugar will be posted on this website.

PRICE OFFER DUE DATE: 1:30 p.m. (CT), July 29, 2013

NOTE: Complete CCC-331A in its entirety, including catalog item no. and offer price (Blocks 3A and 3F).

CCC will notify successful Offerors by: 1:30 p.m. (CT), July 30 2013 http://www.fsa.usda.gov/FSA/webapp?area=home&subject=coop&topic=landing�

July 23, 2013 Invitation No. 2 under Announcement KCPBS2 3

Storage Terms

Although this invitation is for bulk sugar, packaged stocks (totes, bags, etc.) may be offered by the Offeror to cover their storage obligation to CCC. Packaged stocks will be considered part of the Offeror’s commingled inventories and must be stored in CCC-approved space at all times.

Charges for handling, storing, or servicing of sugar will be as follows:

Storage charges for CCC-purchased sugar will be for the account of the successful offeror through the date of title transfer from processor to CCC (same day as contract award), and any storage payment beginning the date after title transfer will be set by the warehouse operator in accordance with the CCC SSA.

When CCC transfers title to its sugar instore, the handling, storage, and servicing rates applicable to the transferee with respect to such sugar shall not exceed CCC’s rates in effect at the time of title transfer until the earlier of:

60 days, or

Title of the sugar is transferred by the transferee to another party, or

The sugar is loaded out of storage structure by the transferee.

The CCC rate for storage is $0.08 per cwt per month for raw cane sugar. The CCC rate for load out is $0.18 per cwt.

Notwithstanding the above, if CCC transfers title to sugar instore, the CCC storage and handling rates will apply to such sugar until it is loaded out, provided the transferee orders, in writing, the sugar loaded out for immediate shipment, within 30 days after the date title has transferred as specified by CCC.

The successful Offeror shall at all times be responsible for maintaining the quantity and quality of sugar until the sugar is loaded out of the facility. Since CCC bases this purchase and exchange on 96 degrees polarity, any differences in quality or quantity will be settled between the raw cane sugar processor and transferee.

Amendments and Additions to Announcement KCPBS2

2. SUBMISSION OF OFFERS

B. Where to Submit Offers:

July 23, 2013 Invitation No. 2 under Announcement KCPBS2 4

By Mail: USDA-FSA-DACO-KCCO Beacon Facility – Mailstop 8698 P.O. Box 419205 Kansas City, MO 64141-6205

Hand delivered: Kansas City Commodity Office USDA-CCC-FSA – Mailstop 8698 6501 Beacon Drive Kansas City, MO 64133-4676

By Fax: 816-926-6795

3. ACCEPTANCE OF OFFERS

B. Acceptance is subject to the following: CCC will combine the sugar offers and exchange bids for ranking using the following formula:

Exchange ratio/standardized cost, where standardized cost = (offer/offer cap) x

413.36674 for raw cane sugar.

5. PROTECTING THE GOVERNMENT’S INTEREST WHEN SUBCONTRACTING

WITH CONTRACTORS DEBARRED, SUSPENDED, OR PROPOSED FOR

DEBARMENT

C. Subcontractors are excluded from this invitation.

6. COMMODITY SPECIFICATIONS

B. See the following table.

Sugar outside these maximum and minimum standards can be delivered if the premiums and discounts are accommodated per the #16 ICE contract (via monetary or delivered quantity adjustment).

RAW CANE SUGAR SPECIFICATIONS

https://www.theice.com/publicdocs/rulebooks/futures_us/29_Sugar_16.pdf 1/ 1/ ICE Sugar No. 16 Futures Contract hyperlink.

https://www.theice.com/publicdocs/rulebooks/futures_us/29_Sugar_16.pdf%20%20%201/�

July 23, 2013 Invitation No. 2 under Announcement KCPBS2 5

ITEM REQUIREMENT

Polarization - The qualities deliverable under this invitation shall be raw centrifugal cane sugar, based on 96 degrees average polarization outturn, Standard Quality Range, as stated below or otherwise as provided in Rules 29.12 and 29.13:

MAXIMUM MINIMUM

Moisture - Standard Quality Range Factor of Safety (High number indicates low quality)

Not exceeding 0.30 Percent

Ash Content - Maximum and minimum standard ash content is derived by multiplying (percent of non-sucrose solids by the factor listed below which corresponds to the raw sugar) final polarization of the cargo:

Up to and including 98.0° Over 98.0° up to and including 98.2° Over 98.2° up to and including 98.4° Over 98.4° up to and including 98.6° Over 98.6° up to and including 98.8° Over 98.8° up to but not including 99.0°

.25

.26

.27

.28

.29

.30

.17

.18

.19

.20

.21

.22

Grain Size Percent through 28 mesh Tyler (30 mesh U.S.) sieve.

(High number indicates low quality)

Between 45 and 22

Color-Affined Raw I.C.U.M.S.A. Color Units Method 4 (1978), Modified* (High number indicates low quality)

Between 800 and 1300

Color-Whole Raw I.C.U.M.S.A. Color Units Method 4 (1978) Modified*

Between 3000 and 5000

Dextran Not exceeding 250 M.A.U.

* See Sugar No. 16 Resolution No. 1.

July 23, 2013 Invitation No. 2 under Announcement KCPBS2 6

7. DELIVERY

B. The successful offeror must furnish the KC-227 (RAW SUGAR CERTIFICATION REPORT) http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/KC227.PDF to CCC at the Kansas City Commodity Office (KCCO), or a warehouse receipt acceptable to CCC made out in the name of CCC for the quantity, quality, and at the location called for in the contract.

C. The start storage date for CCC or transferee will commence on the day after title transfer from processor to CCC.

All other terms and conditions of Announcement KCPBS2 remain unchanged.

All offers must be signed and submitted on a CCC-331A Offer Form. In order to properly consider the offer, the following information must be in the offer:

- Announcement number, Invitation number

- Offeror’s complete name, address, phone number, contact name, and Employer Identification

Number (EIN)

- CCC Warehouse Code

- INSTORE, location (city and state)

- Sugar type

- Polarity

- Quantity expressed in MT

- Price per MT in U.S. dollars, maximum five decimal places (price offer only)

- Tonnage load out capability (MT per day)

Retain one copy of the submitted offer form for your use. Offers must be submitted in an envelope plainly marked:

“Do Not Open Until the Prescribed Time Per Announcement KCPBS2, Invitation No. 2.”

If overnight/express service is utilized, the above statement must be printed clearly on the outer express envelope, not the mailing label.

Additional blank copies of original offer form may be obtained from KCCO or duplication of attached offer form is permitted.

OFFERORS ARE RESPONSIBLE FOR THE TIMELY RECEIPT OF OFFERS AND

AMENDED OFFERS.

No offers, modifications, or withdrawals will be accepted by telephone. They will only be accepted by fax or mail.

http://forms.sc.egov.usda.gov/efcommon/eFileServices/eForms/KC227.PDF�

July 23, 2013 Invitation No. 2 under Announcement KCPBS2 7

Further information on this Invitation for Offers may be obtained by contacting:

Kansas City Commodity Office Domestic Procurement Division

Telephone (816) 926-2527 Email: William.Lang@kcc.usda.gov

William Lang CCC Contracting Officer

Attachment mailto:Martha.Mitchell@kcc.usda.gov�

This form is available electronically. Continuation Sheet on Page 2

CCC-331A (Sugar) U.S. DEPARTMENT OF AGRICULTURE (06-17-13) Farm Service Agency

OFFER FORM

1. ANNOUNCEMENT: KCPBS2

INVITATION NO.

If amended, Amendment No. ____

In accordance with Announcement KCPBS2, Invitation No. , Dated , the undersigned offers to sell the following quantities of sugar to Commodity Credit Corporation (CCC) and the information gathered is used to evaluate bids offered to CCC for the purchase of sugar.

2A. FIRM NAME

2B. ADDRESS

2C. CONTACT NAME

2D. TELEPHONE NO. (Include Area Code)

2E. FAX NO. (Include Area Code)

2F. EMAIL ADDRESS

2G. EMPLOYER IDENTIFICATION NUMBER (EIN)

3A.

CATALOG ITEM NO.

3B.

CCC WAREHOUSE

CODE

3C.

STORAGE LOCATION

(City and State)

3D.

SUGAR TYPE

(Raw = RC, Refined = RB, In-Process = IP)

3E.

OFFER QUANTITY

(Please include estimated Polarization at time of offer subject to testing at load out)

3F.

OFFER PRICE

(Dollars per applicable unit as specified in invitation, maximum five decimal places)

3G.

LOADOUT CAPABILITY

(per day)

Polarity (Degrees)

Metric Tons Pounds

$ Metric Tons

$ Metric Tons

$ Metric Tons

$ Metric Tons

$ Metric Tons

Metric Tons

4A. SIGNATURE OF OFFICER/EMPLOYEE RESPONSIBLE FOR THE OFFER 4B. NAME OF OFFICER/EMPLOYEE RESPONSIBLE FOR THE OFFER

4C. DATE SIGNED (MM-DD-YYYY)

NOTE: The following statement is made in accordance with the Privacy Act of 1974 (5 USC 552a - as amended). The authority for requesting the information identified on this form is 7 CFR Part 1402, 7 CFR Part 1435, and the Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.). The information will be used to evaluate offers submitted by an offeror to sell bulk sugar. The information collected on this form may be disclosed to other Federal, State, Local government agencies, Tribal agencies, and nongovernmental entities that have been authorized access to the information by statute or regulation and/or as described in applicable Routine Uses identified in the System of Records Notice for USDA/FSA-3, Consultants File. Providing the requested information is voluntary.

However, failure to furnish the requested information will result in a determination that the offer to sell bulk sugar cannot be accepted/processed.

The provisions of appropriate criminal and civil fraud, privacy, and other statutes may be applicable to the information provided. RETURN THIS COMPLETED FORM TO THE USDA-FSA-DACO-KCCO, Beacon Facility - MAILSTOP 8698, P.O. BOX 419205, KANSAS CITY, MO 64141-6205. As specified in the Paperwork Reduction Act (5 CFR 1320.3), the information collection for the Sugar Program, including the Feedstock Flexibility Program, authority does not require OMB approval, because FSA estimates that fewer than 10 participants will participate by selling their sugar to FSA.

The U.S. Department of Agriculture (USDA) prohibits discrimination against its customers, employees, and applicants for employment on the bases of race, color, national origin, age, disability, sex, gender identity, religion, reprisal, and where applicable, political beliefs, marital status, familial or parental status, sexual orientation, or all or part of an individual's income is derived from any public assistance program, or protected genetic information in employment or in any program or activity conducted or funded by the Department. (Not all prohibited bases will apply to all programs and/or employment activities.)

If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, found online at http://www.ascr.usda.gov/complaint_filing_cust.html, or at any USDA office, or call (866) 632-9992 to request the form. You may also write a letter containing all of the information requested in the form. Send your completed complaint form or letter to us by mail at U.S. Department of Agriculture, Director, Office of Adjudication, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410, by fax

(202) 690-7442 or e-mail at program.intake@usda.gov. Individuals who are deaf, hard of hearing, or have speech disabilities and wish to file either an EEO or program complaint, please contact USDA through the Federal Relay Service at (800) 877-8339 or (800) 845-6136 (in Spanish). Persons with disabilities, who wish to file a program complaint, please see information above on how to contact us by mail directly or by email. If you require alternative means of communication for program information (e.g., Braille, large print, audiotape, etc.) please contact USDA’s TARGET Center at (202) 720-2600 (voice and TDD).

http://www.ascr.usda.gov/complaint_filing_cust.html� mailto:program.intake@usda.gov�

CCC-331A (Sugar) (06-17-13) Page 2 of 2

(CONTINUATION SHEET)

1. ANNOUNCEMENT: KCPBS2

INVITATION NO.

If amended, Amendment No. ___

3A.

CATALOG ITEM NO.

3B.

CCC WAREHOUSE

CODE

3C.

STORAGE LOCATION

(City and State)

3D.

SUGAR TYPE

(Raw = RC, Refined = RB, In-Process = IP)

3E.

OFFER QUANTITY

(Please include estimated Polarization at time of offer subject to testing at load out)

3F.

OFFER PRICE

(Dollars per applicable unit as specified in invitation, maximum five decimal places)

3G.

LOADOUT CAPABILITY

(per day)

Metric Tons

$ Metric Tons

Metric Tons

$ Metric Tons

Metric Tons

$ Metric Tons

Metric Tons

$ Metric Tons

Metric Tons

$ Metric Tons

Metric Tons

$ Metric Tons

Instructions For CCC-331A (Sugar)

This form is used by participants offering to sell sugar to the Commodity Credit Corporation (CCC), and the information gathered is used to evaluate bids offered to CCC for the purchase of sugar.

Submit the original of this completed form to the USDA-FSA-DACO-KCCO, Beacon Facility – Mailstop 8698, P.O. Box 419205, Kansas City, MO 64141-6205.

Participants offering to sell sugar must complete Items 1 through 4C of this form.

Items 1 - 4C

Fld Name / Item No.

Instructions

Invitation No.

Please enter Invitation No. under Announcement KCPBS2. Acknowledge any amendment(s) by entering the Amendment No. In the block directly below, re-enter Invitation No. and date of Invitation.

2A Firm Name

Enter offering firm’s name.

2B Address

Enter address of offering firm.

2C Contact Name

Enter appropriate contact name.

2D Phone No.

Enter phone no. of offering firm (including area code).

2E FAX No.

Enter fax no. of offering firm (including area code).

2F Email Address

Enter email address of offering firm.

2G

EIN

Enter Employer Identification Number (EIN) of offering firm.

Fld Name / Item No.

Instructions

3A Catalog Item No.

Do not enter and submit with initial Quantity Offer. Enter Catalog Item No. and submit with Price Offer by Price Offer Due Date, as specified in the Invitation. If more space for offers is needed, please continue input on Continuation Sheet, page 2.

3B CCC Warehouse Code

Enter CCC Warehouse Code for sugar being offered.

3C Storage Location

Enter the storage location (city, state) of the sugar being offered.

3D Sugar Type

Enter the type of sugar being offered.

(Raw cane = RC, Refined Beet= RB, In-Process = IP)

3E Offer Quantity

Indicate the unit as specified in the invitation: metric tons or pounds. Enter the offer quantity based on the unit as specified in the invitation. Enter polarity (degrees) of the sugar being offered.

3F Offer Price

Enter offer price in dollars per unit as specified in invitation, maximum five decimal places, and submit by Price Offer Due Date, as specified in the Invitation.

3G Load out Capability

Enter the load out capability per day of your facility. Check whether capability is stated in metric tons or pounds.

4A Signature of Officer/ Employee Responsible for the Offer

Person signing as officer or employee responsible for the offer shall sign.

4B Name of Officer/ Employee Responsible for the Offer

Enter the printed name of the Officer/Employee responsible for the offer.

4C Date Signed

Enter the date (MM-DD-YYYY) that Offer Form is signed.

CCC-331A (Sugar) Instructions, page 2 of 2