PUBLIC LAW 101-147—NOV. 10, 1989 103 STAT. 901 account factors deemed appropriate to further proper, efficient, and effective administration of the program, such as— "(A) local agency staffing needs; "(B) density of population; "(C) number of individuals served; and "(D) availability of administrative support from other sources. "(7) The State agency may provide in advance to any local agency any amounts for nutrition services and administration deemed nec- essary for successful commencement or significant expansion of program operations during a reasonable period following approval of— "(A) a new local gigency; "(B) a new cost containment measure; or "(C) a significant change in an existing cost containment measure. "(8)(A) No State may receive its allocation under this subsection unless on or before August 30, 1989 (or a subsequent date estab- lished by the Secretary for any State) such State has— "(i) examined the feasibility of implementing cost contain- ment measures with respect to procurement of infant formula, and, where practicable, other foods necessary to carry out the program under this section; and "(ii) initiated action to implement such measures unless the State demonstrates, to the satisfaction of the Secretary, that such measures would not lower costs or would interfere with the delivery of formula or foods to participants in the program. "(B)(i) Except as provided in subparagraphs (C), (D), and (E)(iii), in carrying out subparagraph (A), any State that provides for the purchase of foods under the program at retail grocery stores shall, with respect to the procurement of infant formula, use— "(I) a competitive bidding system; or "(II) any other cost containment measure that jdelds savings equal to or greater than savings generated by a competitive bidding system when such savings are determined by comparing the amounts of savings that would be provided over the full term of contracts offered in response to a single invitation to submit both competitive bids and bids for other cost contain- ment systems for the sale of infsint formula, "(ii) In determining whether a cost containment measure other than competitive bidding yields equal or greater savings, the State, in accordance with regulations issued by the Secretary, may take into account other cost factors (in addition to rebate levels and procedures for adjusting rebate levels when wholesale price levels rise), such as— "(I) the number of infants who would not be expected to receive the contract brand of infant formula under a competi- tive bidding system; "(II) the number of cans of infant formula for which no rebate would be provided under another rebate system; and "(III) differences in administrative costs relating to the im- plementation of the various cost containment systems (such as costs of converting a computer system for the purpose of operat- ing a cost containment system and costs of preparing partici- pants for conversion to a new or alternate cost containment system). "(C) In the case of any State that has a contract in effect on the Contracts, date of the enactment of the Child Nutrition and WIC Reauthoriza-
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