USDA Foods in Schools. Overview

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1 USDA Foods in Schools Shenique Bridges Program Analyst, Child Nutrition Operations Branch November 28-29, 2018 Overview USDA Foods Program Background USDA Foods Entitlement USDA Foods Available List and Ordering Options USDA Foods Processing Program USDA Foods Program Resources 1

2 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 2

3 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. 3

4 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 FDPIR 4% TEFAP 12% CSFP 7% FY18 Available Funds For Food Purchases Program USDA Foods CNP $1,926,755,000 TEFAP $287,500,000 NSLP 77% CSFP $183,247,000 FDPIR $104,976,000 TOTAL $2,502,478,000 4

5 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 Administrative Benefit: No competitive bid needed for USDA DoD or Direct Delivered (brown box) items All items meet Buy American provision Variety of Options: 170+ direct delivery processed products USDA DoD Fresh fruits and vegetables Nutritional Benefit: USDA formulates products lower in sodium, fat, and added sugar 5

6 USDA Foods Agency Roles FNS AMS DoD Food and Nutrition Service Food Distribution Division Administration of USDA Foods Program & Processing Program, Foods Available List, Order Fulfillment, Customer Service Agricultural Marketing Service Commodity Procurement Specifications, Procurement, Contract Administration, Vendor Performance & Payment Department of Defense Defense Logistics Agency Procurement, Contract Administration, Vendor Performance & Payment 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) 6

7 7 CFR Part CFR Part 250 is the overarching regulation for all USDA Foods programs: USDA Foods Policy Memos and Instructions 7

8 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 $$ 8

9 What Drives School Purchases? BUDGET REVENUE PROCUREMENT MENU PARTICIPATION TRAINING LABOR USDA Foods Available List and Ordering Options 9

10 USDA Foods Ordering Options Direct Delivery Bulk for Processing USDA DoD Fresh Fruit and Vegetable Program USDA Foods Available List 10

11 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 11

12 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: 12

13 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. 13

14 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? USDA STATE SCHOOL DISTRICT 14

15 Ordering Decisions: USDA Role USDA Determine which foods will be available to States Ordering Decisions: State Role State Determine which USDA Foods will be offered to SFAs 15

16 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 School District Decisions based on menu needs, storage, distribution fees, district size 16

17 USDA Foods FY17 School Purchases Eggs 1% Total Dollars Fish 1% Total Pounds Eggs 1% Fish 1% Fruit/Veg 36% Dairy 18% Poultry 20% Fruit/Veg * 49% Dairy 12% Poultry 20% Nuts/Seeds Grains 1% 1% Beef/Pork 22% Nuts/Seeds 1% Beef/Pork 12% Grains 4% USDA Foods Processing Program 17

18 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) 18

19 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 19

20 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 20

21 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 21

22 USDA Foods Processing State Distributing Agency Recipient Agency USDA Processor USDA Foods Processing State Distributing Agency Recipient Agency USDA Processor 22

23 USDA Foods Processing State Distributing Agency Recipient Agency USDA Processor USDA Foods Processing State Distributing Agency Recipient Agency USDA Processor 23

24 USDA Foods Processing State Distributing Agency Recipient Agency USDA Processor USDA Foods Processing State Distributing Agency Recipient Agency USDA Processor 24

25 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 25

26 USDA Foods Resources USDA Foods Processing Resources Monthly Performance Report (MPR) EPDS/SEPDS Templates Distributor Agreement 26

27 USDA DoD Fresh Program Resources USDA DoD Fresh Fruit & Vegetable Program website: USDA DoD Fresh Fruit & Vegetable Program: The Basics for Schools webinar: USDA and DLA Partnering for a Healthy Future video: Webinars and Training Resources 27

28 8 Questions? USDA is an equal opportunity provider, employer, and lender. 28

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