May a State submit APDs and related documents electronically or do they have to send hard copies?
FNS encourages states to submit all APDs and related documents electronically.  A scanned copy of the signed transmittal letter, signed by a State official authorized to commit State resources, should accompany all documents.  Also States should remember to submit the electronic copy to the State Systems Branch Chief as well as the cognizant Regional Administrator.

Are Planning APDs optional?
No.  If a State agency wishes to use Federal funding for WIC or Federal financial participation (FFP) for FSP for their planning activities, a Planning APD has to be submitted and approved by FNS. WIC requires a Planning APD be submitted for each project.  FSP requires a Planning APD be submitted when the total project cost is > $5M.

If FNS takes longer to review a document than the 60 days allotted, does this mean the project is automatically approved?
FNS regulations at 7 SFR 277.18 allow for provisional approval of Food Stamp Program projects after 60 days only if the State agency has received no communications from FNS during the 60 days regarding the projects.  WIC does not allow for provisional approval at any time.  If a State agency is nearing end of the 60 days timeframe, which begins when FNS receives the APD or related documents, and has not heard from FNS, the State agency should contact the State Systems Branch immediately.

What is a "waiver of depreciation"? When is this applicable?
A waiver of depreciation is a written request to change the method of accounting and claiming for the cost of equipment.  The Federal cost circulars require that individual items of equipment which cost more than $100,000 per item, must be charged over the useful life of the equipment.  (Useful life is as proscribed by the Internal Revenue Service.  Workstations have a useful life of three years, while mainframes are normally charged over a period of 7 years)  The written request asks for agency permission to charge the entire cost of the equipment acquisition at the time of acquisition (more commonly known as “expensing”).  Unless agency permission is received, the equipment cost must be based on depreciation over the life of the equipment.  This may be advantageous to the State agency due to limited funding or a limited life of the funds available for the acquisition.  FNS evaluates a request for waiver of depreciation based upon the following criteria:
- Documentation from the State agency justifies that expensing costs in the period acquired will be more cost beneficial to the Federal government than depreciating the costs;
- Sufficient funds exist within the current year Federal appropriation to allow expensing of costs within the period of acquisition;
- Approval of the waiver of depreciation will be consistent among the Federal funding agencies (although different funding constraints may apply).

Are all components of an APD, indicated in FNS Handbook 901, required?
The list of components of an APD as listed in Handbook 901 is all encompassing - a list of all possible information that may be included.  The State Systems Branch encourages the State agencies to work with them to customize the list as much as possible.  For example, requests for hardware replacement may not require a significant functional requirements discussion but may require a capacity study.

May FNS require more documentation than defined in FNS Handbook 901, such as quarterly or monthly status reports?
Yes. FNS Handbook 901 states that FNS has the discretion to request more or less documentation on a case-by-case basis.  Depending upon the risks associated with a project, FNS may request additional reporting beyond the required APDU Annual and As Needed.

What is required to approve sole source procurements?
FNS mandates the use of competitive, free and open procurements.  FNS also recognizes that instances may occur where a noncompetitive procurement (solicitation of a proposal from only one source) is unavoidable.  In these rare cases, the State agency has to meet at least one of the following four criteria as set forth in 7 CFR 3016.36:
- The item is available only from a single source.
- Public emergency when the urgency for the requirement will not permit a delay incident to competitive procurement.
- After soliciting several sources, competition is determined inadequate.
- FNS authorizes noncompetitive procurement.

May State agencies give preference to contractors that are based in their State?
No.  Geographic preference is disallowed in accordance with regulations 7 CFR 3016.60(c).

Last modified: 08/28/2007

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