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USDA/FNS RIN: 0584-AD71 Publication ID: Spring 2005 
Title: ●Special Supplemental Nutrition Program for Women, Infants, and Children (WIC): WIC Vendor Cost Containment 
Abstract: This interim final rule amends the WIC regulations to implement the vendor cost containment provisions of the Child Nutrition and WIC Reauthorization Act of 2004 (Pub. L. 108-265). The rule seeks to assure that the WIC Program pays competitive prices to authorized retail food vendors by requiring State agencies to: (1) Establish a vendor peer group system or demonstrate to the Department that the State agency’s alternative cost containment system is as effective as a peer group system; (2) establish competitive price selection criteria for use in authorizing vendors and allowable reimbursement levels for each vendor peer group that ensure that a vendor’s prices remain competitive subsequent to authorization; (3) limit payments to vendors that derive more than 50 percent of their annual food sales revenue from WIC transactions, so that the program does not pay higher food costs if participants use their food instruments at these stores, rather than at other authorized vendors; (4) describe their vendor peer group system, competitive price selection criteria, and allowable reimbursement levels in the State Plan; and (5) comply with the vendor cost containment requirements of Public Law 108-265 by December 30, 2005. 
Agency: Department of Agriculture(USDA)  Priority: Other Significant 
RIN Status: First time published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: Undetermined  Unfunded Mandates: No 
CFR Citation: 7 CFR 246   
Legal Authority: 42 U.S.C. 1786   
Legal Deadline:  None
Timetable:
Action Date FR Cite
Interim Final Rule  08/00/2005    
Interim Final Rule Comment Period End  08/00/2006    
Final Action  02/00/2007    
Final Action Effective  03/00/2007    
Regulatory Flexibility Analysis Required: No  Government Levels Affected: Federal, Local, State, Tribal 
Small Entities Affected: Businesses, Governmental Jurisdictions  Federalism: No 
Included in the Regulatory Plan: No 
RIN Information URL: www.fns.usda.gov/wic  
Agency Contact:
Sharon Ackerman
Agency Regulatory Officer
Department of Agriculture
Food and Nutrition Service
Room 918, 3101 Park Center Drive,
Alexandria, VA 22302
Phone:703 305-2246
Email: sheri.ackerman@fns.usda.gov