The purpose of this policy memorandum is to clarify requirements in the sale of processed end products through a commercial distributor under an "indirect discount" or "hybrid" sales system, in accordance with 7 CFR 250.30(e)(1)(ii), and in a modified form of such sales system previously approved by the Food and Nutrition Service (FNS), in accordance with 7 CFR 250.30(e)(1)(iii).
On July 1, 2006, FNS implemented Policy Memorandum FD-061: Inbound Cheese to Further Processors, in order to alleviate the administrative burden on processors and state distributing agencies (SDAs) in continually reallocating pounds to individual recipient agencies (RAs) based on the variation between the published target truck weight and the actual pounds delivered by the USDA vendor. This policy memorandum revises the original FD-061.
Guidance in Crediting for, and Use of Donated Foods in Contracts with Food Service Management Companies
The purpose of this policy memorandum is to provide guidance in ensuring compliance with requirements in Subpart D of 7 CFR Part 250 with respect to crediting for, and use of donated foods in contracts with food service management companies (FSMCs).
Beginning in 2000, the USDA began conducting a demonstration project, known as the National Master Processing Agreements, under which USDA Food and Nutrition Service arranges for national processing of federally donated foods.