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2017 National

Conference

D E N V E R , C O L O R A D O

A P R I L 2 3 - 2 6

W W W . C O M M O D I T Y F O O D S . O R G

It’s All in the Agreement!

“Nothing in life is to be feared. It is only to be understood.”

― Marie Curie

It’s All in the Agreement!

Mission:

• To discuss the various agreements involved in processing USDA Foods.

• Who are the players? – USDA, SDA, RA, Processors/Brokers and Distributors.

• ACDA Handbook: Processor Guidance for Further Processing of USDA Foods.

• Discussion of Proposed rule.

It’s All in the Agreement

Dawn Irvine Processing Specialist

Arizona Department of Education

What Agreements?

• NPA (National Processing Agreement)• Permanent agreement between USDA

and the Processor

• MPR’s (Monthly Performance Reports)

• SPA (State Participation Agreement)• Conveying State Specific Requirements

to Processors

It’s All in the Agreement

Lonnie Burt, MS, RD, CD-NHartford Public Schools

What Agreements?

• Agreement with State Agency

• RFP / Formal Bid Agreements with:

• Processors

• Distributors

• Vendors

What Should I Do Now?

• Communicate!!

• Know your menu

• Forecast

• Convey your needs to distributor, vendor, processors

It’s All in the Agreement

Jose Quinones, National School Business

Development, JTM

It’s All in the Agreement!

ACDA Handbook: Processor Guidance for

Further Processing of USDA Foods1. Overview

2. Roles & Responsibilities

3. Inventory Management

4. Value Pass Through Methods

5. Record Retention

6. Audit Requirement

7. Food Recalls

8. Acronyms

It’s All in the Agreement!

Want to process USDA Foods?

FNS requirement of a bond or letter of credit

Independent CPA audit requirement

RFP/Bid “Agreement” with RA

Distributor Agreements

It’s All in the Agreement!

Want to process USDA Foods?

Get to know your State DA

National Processing Agreement (NPA)

State Processing Agreement (SPA)

Monthly Performance Report (MPR)

Rules of processing/distribution in the state

Approved EPDS (End Product Data Schedule) and SEPDS

It’s All in the Agreement!

Bond or “letter of credit”

FNS requirement.

Protect the value of USDA Diverted for Processing prior of the first delivery of USDA Food raw material.

Food Inventory management – Excess Inventory.

It’s All in the Agreement!

RFP/Bid “Agreement with RA’s

Working on RFP/BidProcessor RespondIt’s awardedNow what? Communication ForecastingUSDA AllocationsDistributor Schedule

It’s All in the Agreement!

Distributor Agreements

Templates

Fee for Service Processor/Distributor Agreement

Net Off Invoice Processor/Distributor Agreement

Relationship with RA/Distributor

It’s All in the Agreement!

Thank you!

Jose R. Quinones

It’s All in the Agreement

Stephanie Ewing, RD, SNSGold Star Foods

Key Factors to Optimize USDA Foods

• Engage Distribution

• Ensure Distribution is Technologically Involved

• Manufacturer Commitment to Supply Chain

Entitlement Utilization

• Data Supports Increase Utilization of Entitlement

• Decreases Menu Costs

• Increases Flexibility for Menus

• Meets the needs of the District

www.facebook.com/commodityfoods.org

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