ERIC Number: ED353645
Record Type: Non-Journal
Publication Date: 1992-Oct
Reference Count: N/A
Food Assistance: School Milk Contract Bid-Rigging. Report to the Ranking Minority Member, Committee on Agriculture, House of Representatives.
General Accounting Office, Washington, DC. Resources, Community, and Economic Development Div.
In the late 1980s, the Department of Justice began a campaign of prosecuting dairy companies and individuals associated with these companies for colluding on contract bids to supply milk to schools and military installations. Data were derived from: (1) interviews with officials from the Departments of Defense, Agriculture, and Justice; (2) a review of laws, executive orders, and regulations; and (3) historical data on the dairy industry. Findings indicate that the extent to which the milk marketing and price support programs influence milk contract bid-rigging is unclear. Department of Justice officials said that marketing orders and price supports may foster improper collusion, and that the Capper-Volstead Act's exemption of cooperatives from antitrust statutes may complicate prosecution of bid-rigging cases. Recommendations are made to develop a formal, systematic process for sharing information on cooperatives' pricing; suspend or debar individuals and companies convicted of or indicted for bid-rigging; and provide awareness training to school procurement officials. Appendices contain comments from the Departments of Agriculture and Justice, and the General Accounting Office; and a list of major contributors to the report. (LMI)
Descriptors: Bids, Compliance (Legal), Contracts, Cooperatives, Elementary Secondary Education, Federal Government, Federal Programs, Federal Regulation, Legal Problems, Lunch Programs
U.S. General Accounting Office, P.O. Box 6015, Gaithersburg, MD 20877 (first copy, free; $2 each additional copy; quantity discounts).
Publication Type: Reports - Research
Education Level: N/A
Authoring Institution: General Accounting Office, Washington, DC. Resources, Community, and Economic Development Div.