[Congressional Record Volume 151, Number 123 (Wednesday, September 28, 2005)]
[Senate]
[Pages S10583-S10584]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        U.S. GRAIN STANDARDS ACT

  Mr. CHAMBLISS. Mr. President, I am pleased that the Senate passed 
S.1752, a bill to reauthorize the U.S. Grain Standards Act. I 
understand that the House of Representatives is scheduled to consider 
this legislation today and look forward to its swift approval, as the 
act expires September 30, 2005.
  This reauthorization bill is identical to the administration's 
requested language provided to the committee earlier this year, a 
simple 10-year extension of current law.
  The Agriculture, Nutrition, and Forestry Committee held a hearing to 
review the U.S. Grain Standards Act on May 25, 2005. Testimony provided 
on behalf of the National Grain and Feed Association and the North 
American Export Grain Association highlighted industry's desire to be 
cost-competitive and remain viable for bulk exports of U.S. grains and 
oilseeds in the future. Specifically, these organizations proposed the 
U.S. Department of Agriculture's, USDA, utilization of third-party 
entities to provide inspection and weighing activities at export 
facilities with 100-percent USDA oversight using USDA-approved 
standards and procedures. Support for this proposal in the hearing was 
provided by the American Farm Bureau Federation, American Soybean 
Association, National Association of Wheat Growers, National Corn 
Growers Association, National Grain Sorghum Producers, and the American 
Association of Grain Inspection and Weighing Agencies. Testimony 
provided by USDA stated that the ``proposal of the industry establishes 
a framework for changing the delivery of services without compromising 
the integrity of the official system.''
  During the hearing, the Committee also learned of workforce 
challenges currently facing the U.S. Department of Agriculture's Grain 
Inspection, Packers and Stockyards Administration, GIPSA. The majority 
of official grain inspectors will be eligible for retirement over the 
next several years. Testimony presented explained that transitioning 
the delivery of services through attrition would minimize the impact on 
Federal employees.
  Since the hearing, I have extensively reviewed legislative proposals 
and discussed the issue of improved competitiveness with various 
Senators, organizations, and USDA. Chairman Bob Goodlatte of the House 
Agriculture Committee and I wrote to USDA to determine if they had 
existing authority to use private entities at export port locations for 
grain inspection and weighing services, and if they did, how they would 
implement this authority.
  Accompanying this statement is a copy of the letter we received from 
USDA responding to our questions. The letter clearly states that the 
U.S. Grain Standards Act ``currently authorizes the Secretary of 
Agriculture to contract with private persons or entities for the 
performance of inspection and weighing services at export port 
locations.'' The letter further explains that GIPSA considers the use 
of this authority as an option to address future attrition within the 
Agency and to address expanded service demand. I fully expect USDA to 
use this authority in a manner that improves competitiveness of the 
U.S. grain industry, that maintains the integrity of the Federal grain 
inspection system, and that provides benefits to employees who may be 
impacted.
  The committee greatly appreciates the work provided by GIPSA, and we 
are pleased to extend the authorization of current law for 10 years.
  I ask unanimous consent that the letter to which I referred be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:


                                 The Secretary of Agriculture,

                               Washington, DC, September 21, 2005.
     Hon. Saxby Chambliss,
     Chairman, Committee on Agriculture, Nutrition, and Forestry, 
         U.S. Senate, Washington, DC.
       Dear Mr. Chairman: This is in response to your letter of 
     this date, also signed by Bob Goodlatte, Chairman of the U.S. 
     House of Representatives Committee on Agriculture, posing two 
     questions regarding legislation which is currently pending 
     before the Congress. The legislation would reauthorize, for 
     an additional period of years, the United States Grain 
     Standards Act, 7 U.S.C. Sec. Sec. 71 et seq. (Act), which is 
     presently scheduled to expire on September 30, 2005. Your 
     questions and our responses are as follows:
       1. Would existing authority under the U.S. Grain Standards 
     Act allow USDA to use private entities at export port 
     locations for grain inspection and weighing services?
       Response. The Act currently authorizes the Secretary of 
     Agriculture to contract with private persons or entities for 
     the performance of inspection and weighing services at export 
     port locations. See 7 U.S.C. Sec. Sec. 79(e)(I), 84(a)(3).
       2. If so, how would USDA implement this authority?
       Response. The Act currently authorizes the Secretary to 
     contract with a person to provide export grain inspection and 
     weighing services at export port locations. The Grain 
     Inspection, Packers and Stockyards Administration (GIPSA) has 
     reserved this authority to supplement the current Federal 
     workforce if the workload demand exceeded the capability of 
     current staffing. GIPSA has also considered use of this 
     authority as one of several options to address future 
     attrition within the Agency and to address expanded service 
     demand as several delegated States have decided or are 
     considering to cancel their Delegation of Authority with 
     GIPSA.
       In accordance with federal contracting requirements, GIPSA 
     would contract with a person(s) (defined as any individual, 
     partnership, corporation, association, or other business 
     entity) to provide inspection and weighing services to the 
     export grain industry. The person(s) awarded the contract 
     would adhere to all applicable provisions of the Act to 
     ensure the integrity of the official inspection system during 
     the delivery of services to the export grain industry. The 
     person(s) would charge a fee directly to the export grain 
     customer to cover the cost of service delivery and the cost 
     of GIPSA supervision. Contract terms would require 
     reimbursement to GIPSA for the cost of supervising the 
     contractor's delivery of official inspection and weighing 
     services.
       GIPSA would comply with OMB Circular No. A-76 for any 
     contracting activity that may replace or displace federal 
     employees. The Circular would not apply if the contract for 
     outsourcing services intends to fill workforce gaps, not 
     affect Federal employees, or supplement rather than replace 
     the federal workforce. The A-76 process typically takes two 
     years and involves an initial cost-benefits analysis, an open 
     competitive process, and an implementation period.
       I hope that the explanations provided above are fully 
     responsive to the questions

[[Page S10584]]

     you have asked. A similar letter is being sent to Chairman 
     Goodlatte.
           Sincerely,
                                                     Mike Johanns,
     Secretary.

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