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November 28-29, 2018

Shenique Bridges

Program Analyst, Child Nutrition Operations Branch

USDA Foods in

Schools

Overview

•USDA Foods Program Background

•USDA Foods Entitlement

•USDA Foods Available List and Ordering Options

•USDA Foods Processing Program

•USDA Foods Program Resources

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USDA Foods Program Background

National School Lunch Act 1946 Preamble

“…as a matter of national security, and to

safeguard the health and well being of the

nations children, and to expand the market

with nutritious agricultural commodities,

the school lunch program is established…”

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USDA Dual Mission

•To support American

agriculture

•To improve the health and

well-being of the population

What are USDA Foods?

Foods that are purchased by USDA from

American farmers, dairymen, ranchers, and

fishermen to support nutrition assistance

programs and American agriculture.

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Food Distribution Programs

• Child Nutrition Programs• National School Lunch Program (NSLP)• Child and Adult Care Food Program (CACFP)• Summer Food Service Program (SFSP)

• Household Feeding• The Emergency Food Assistance Program (TEFAP)• Commodity Supplemental Food Program (CSFP)• Food Distribution Program on Indian Reservations (FDPIR)

• Other• Disaster Feeding (DF)

USDA Foods: FY18 Funding

NSLP

77%

TEFAP

12%

CSFP

7%

FDPIR

4%

Program USDA Foods

CNP $1,926,755,000

TEFAP $287,500,000

CSFP $183,247,000

FDPIR $104,976,000

TOTAL $2,502,478,000

FY18 Available Funds

For Food Purchases

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USDA Foods for Schools

Schools receive two types of support from

USDA:

• Cash reimbursement for meals served

• Entitlement funding (a.k.a. USDA Foods)

Entitlement funding makes up about 15-20% of

the food served in the school meal program

Benefits of USDA Foods

Financial Benefit:• $0.335/lunch claimed

• EVERY lunch counts

• Competitive purchasing

combining nationwide volumes

Variety of Options:• 170+ direct delivery

• 5000+ processed products

• USDA DoD Fresh fruits and

vegetables

Administrative Benefit:• No competitive bid needed for

USDA DoD or Direct Delivered

(brown box) items

• All items meet Buy American

provision

Nutritional Benefit:• USDA formulates products

lower in sodium, fat, and

added sugar

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USDA Foods Agency Roles

FNS

Food and Nutrition Service

Food Distribution DivisionAdministration of USDA Foods Program & Processing

Program, Foods Available List, Order Fulfillment,

Customer Service

Agricultural Marketing Service

Commodity ProcurementSpecifications, Procurement, Contract Administration,

Vendor Performance & Payment

Department of Defense

Defense Logistics AgencyProcurement, Contract Administration, Vendor

Performance & Payment

AMS

DoD

USDA Foods: Program Regulations

•Federal regulations specify the details and

requirements necessary to implement and to

enforce legislation enacted by Congress

•For USDA Foods in CN Programs, refer to these

regulations: • Title 7 Code of Federal Regulations, Part 250 (7 CFR Part 250)

• Title 7 Code of Federal Regulations, Part 235 (7 CFR Part 235)

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7 CFR Part 250

7 CFR Part 250 is the overarching regulation for all USDA Foods

programs: https://www.fns.usda.gov/fdd/regulations

USDA Foods Policy Memos and Instructions

https://www.fns.usda.gov/fdd/policy

https://www.fns.usda.gov/fdd/instructions-handbooks

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USDA Foods Entitlement

USDA Foods Entitlement

Effective Rate (Annual Federal Register Per Meal Rate plus 12% dollars)

X

Prior Year Lunches Served

+/-

Prior Year Balance

=

Total Entitlement $$

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What Drives School Purchases?

MENU

PROCUREMENT

TRAINING

LABOR

PARTICIPATION

REVENUE

BUDGET

USDA Foods Available List and Ordering Options

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USDA Foods Ordering Options

Direct Delivery Bulk for Processing

USDA DoD Fresh Fruit and Vegetable Program

USDA Foods Available List

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USDA Foods Available

200+ food items

• Vegetables/Beans (low-sodium or no salt added)

• Fresh, frozen, canned, dry

• Fruits (no added sugar or extra light syrup)

• Fresh, frozen, canned, dry, 100% juice

• Whole Grain/whole grain-rich items

• Rice, oats, pasta, flour, tortillas, pancakes

• Meat/fish*

• Fresh, frozen, and canned beef, pork, chicken, turkey, fish

• Other protein items*

• Eggs, nuts/seeds, yogurt, cheese

*Specifications emphasize lower sodium and fat profiles

Benefits of USDA Foods

Healthy choices- fruits, vegetables, whole grains, lean meats and cheese, nuts/seeds, oils

Options provide flexibility to schools

100% American grown/processed/packaged

Stringent food safety, quality, nutrition standards

School districts select items they want from available options using entitlement dollars

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USDA Foods Product Information

• All USDA Foods products have a specification

defining the parameters for the product to be

supplied, which may include:

• Nutrient Limits (e.g. fat, sodium, sugar)

• Allergen Exclusions (e.g. no gluten, no soy,

no peanuts)

USDA Food Specifications

On the AMS website: https://www.ams.usda.gov/selling-food/product-specs

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USDA Foods Product Info Sheets

• Provide a summary of

product information

from the specifications

and from potential

USDA Foods vendors

• Only available for direct

delivery products

New Products SY18-19

• Mixed Berry Cups, Frozen, 96/4 oz.

• Mixed Vegetables, 4-Way Blend, Frozen, 30 lb.

• Chicken Drumstick, 2.0 MMA, Frozen, 4/10 lb.

• Chicken Fillet, Cooked, 2.0 MMA, Frozen, 30 lb.

• Egg Patty, Cooked, 1.0 MMA, Frozen, 25 lb. case

• 100% White Whole Wheat Flour, 8/5 lb., 25 lb., 50 lb.

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Product Changes SY18-19

• Raisins, Unsweetened, 24/15 oz.

• Mushrooms, Diced, IQF, 12/2.5 lb.

• Turkey Deli Breast, Smoked, Sliced, 8/5 lb.

• Turkey Deli Ham, Smoked, Sliced, 8/5 lb.

How are ordering decisions made?

USDAUSDA

STATESTATE

SCHOOL DISTRICTSCHOOL DISTRICT

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Ordering Decisions: USDA Role

USDAUSDA

Determine which foods will be available to StatesDetermine which foods

will be available to States

Ordering Decisions: State Role

StateState

Determine which USDA Foods will be offered to SFAs

Determine which USDA Foods will be offered to SFAs

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USDA Foods Ordering Decisions

• SFA Ordering History

• Product Demand

• Nutrition Advisory Groups

• USDA Foods Surveys

• State SNA involvement

• USDA Minimum Order Quantities

Ordering Decisions: District Role

SchoolDistrictSchoolDistrict

Decisions based on menu needs, storage, distribution

fees, district size

Decisions based on menu needs, storage, distribution

fees, district size

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USDA Foods FY17 School Purchases

Eggs

1%

Fish

1%

Dairy

18%

Poultry

20%

Beef/Pork

22%

Grains

1%

Nuts/Seeds

1%

Fruit/Veg

36%

Total Dollars

Eggs 1% Fish 1%

Dairy 12%

Poultry

20%

Beef/Pork

12%

Grains 4%Nuts/Seeds

1%

Fruit/Veg

* 49%

Total Pounds

USDA Foods Processing Program

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USDA Foods Processing

•Bulk USDA Foods -> Processor -> Finished End

Products

•State Distributing Agencies contract with

commercial food processors to convert raw bulk

USDA Foods into ready-to-use end products

Types of Processing Agreements

• National Processing Agreements (NPA)

• State Participation Agreement (SPA)

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Processing Responsibilities

• USDA

• State Distributing Agency

• Recipient Agency

• Distributor

• Processor

USDA Responsibilities

• Approve• National Processing Agreement(s) (NPA)

• End Product Data Schedule(s) (EPDS)

• Summary End Product Data Schedule(s) (SEPDS)

• Set bond level for processors

• Maintain updated list of national approved processors

• Monitor national Monthly Performance Report (MPR) inventories

• Work with SDAs and Processors for deliveries of bulk based on states’ orders

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State Distributing (SDA) Responsibilities

• Determine Value Pass Through (VPT) options for approval

• Sign State Participation Agreement(s) (SPA)• Approve and sign SEPDS

• Communicate processor approvals to Recipient Agencies (RA)

• Monitor inventory levels – 6 months

• Monthly Performance Report (MPR) reconciliation

• Provide training and guidance to RAs

Recipient Agency (RA) Responsibilities

• Forecast • - Determine quantity of processed products needed for

SY

• Request USDA Foods• - Either through WBSCM or state system

• Follow proper procurement procedures

• Monitor inventory balances – 6 months• - Processor

• - Distributor

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Distributor Responsibilities

• Respond to RA solicitations

• Store and deliver products per contracts

• Maintain tracking system for finished products

received, stored, and delivered

• Report sales to third-party monitoring systems

or processor’s inventory system

Processor Responsibilities

• Submit NPA agreements to USDA• Submit EPDS to USDA for approval• Submit updated information to USDA when needed• Secure bonds

• Submit SPAs to states

• Respond to state and RA solicitations

• Produce products

• Ship products to RA

• Provide Monthly Performance Reports to states and USDA

• Maintain tracking system for USDA Foods

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USDA Foods Processing

USDA

Processor

USDA

Processor

State

Distributing

Agency

Recipient

Agency

USDA Foods Processing

State

Distributing

Agency

USDA

Processor

USDA

Processor

Recipient

Agency

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USDA Foods Processing

USDA

Processor

USDA

Processor

State

Distributing

Agency

Recipient

Agency

USDA Foods Processing

USDA

Processor

USDA

Processor

State

Distributing

Agency

Recipient

Agency

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USDA Foods Processing

USDA

Processor

USDA

Processor

State

Distributing

Agency

Recipient

Agency

USDA Foods Processing

USDA

Processor

USDA

Processor

State

Distributing

Agency

State

Distributing

Agency

Recipient

Agency

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USDA Foods Processing Program

•96 National Processors

•40 bulk USDA Foods material codes

•5,000+ end products approved

•$400-$600 million in inventory

Why do schools choose processing?

• Menu continuity

• Product familiarity

• Reduced training and labor

• Help solve production challenges

• Help meet food safety needs

• Maximize entitlement

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USDA Foods Resources

USDA Foods Processing Resources

www.commodityfoods.org•Monthly Performance Report (MPR)

•EPDS/SEPDS Templates

•Distributor Agreement

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USDA DoD Fresh Program Resources

USDA DoD Fresh Fruit & Vegetable Program website:• https://www.fns.usda.gov/fdd/dod-fresh-fruit-and-

vegetable-program

USDA DoD Fresh Fruit & Vegetable Program: The Basics for Schools webinar:

• https://www.fns.usda.gov/fdd/usda-dod-fresh-fruit-and-vegetable-program-basics-schools

USDA and DLA Partnering for a Healthy Future video:• https://youtu.be/FsV949uEJpo

Webinars and Training Resources

http://www.fns.usda.gov/fdd/webinars-and-training

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USDA is an equal opportunity provider, employer, and lender.

Questions?