FNS Documents & Resources

The purpose of this policy memorandum is to clarify a state distributing agency's (SDA) responsibilities regarding (1) the approval of end products for processing; and (2) monitoring of sales of such end products to school food authorities (SF A) in the National School Lunch Program (NSLP) by reviewing a processor's monthly performance report.

In accordance with 7 CFR 250.30(1), a processor may. in most cases, substitute Department of Agriculture (USDA) donated foods with commercially purchased foods of U.S. origin, and of equal or better quality in all USDA purchase specifications than the donated food. The substitution option permits processors to conduct their business efficiently and provide finished end products to school food authorities (SFAs) and other recipient agencies in a timely manner.

In this policy memorandum, we clarify that the SFA may, in some cases, include bids for procurement of end products in its solicitation for procurement of commercial food products from commercial distributors, rather than conduct two separate solicitations. 

The attached memorandum is Food Distribution Policy Memo FD-110, which clarifies requirements in crediting for, and use of, USDA donated foods in contracts with food service management companies, and provides guidance to ensure compliance with such requirements in the first and final years of such contracts.