DEFINITIONS.

SEC. 203. DEFINITIONS.Section 17(b) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(b)) is amended by striking paragraph (17) and inserting the following new paragraphs: “(17) ‘Competitive bidding’ means a procurement process under which the Secretary or a State agency selects a single source (a single infant formula manufacturer) offering the low-est price, as determined by the submission of sealed bids, for a product for which bids are sought for use in the program authorized by this section. “(18) ‘Rebate’ means the amount of money refunded under cost containment procedures to any State agency from the manufacturer or other supplier of the particular food product as the result of the purchase of the supplemental food with a voucher or other purchase instrument by a participant in each such agency’s program established under this section. 106 STAT. 3365 “(19) ‘Discount’ means, with respect to a State agency that provides program foods to participants without the use of retail grocery stores (such as a State that provides for the home delivery or direct distribution of supplemental food), the amount of the price reduction or other price concession provided to any State agency by the manufacturer or other supplier of the particular food product as the result of the purchase of program food by each such State agency, or its representative, from the supplier. “(20) ‘Net price’ means the difference between the manufacturer’s wholesale price for infant formula and the rebate level or the discount offered or provided by the manufacturer under a cost containment contract entered into with the pertinent State agency.”.