The purpose of this policy memorandum is to clarify the options available to state distributing agencies or recipient agencies in assigning value to USDA donated foods for audit purposes.
This memorandum provides general guidance on the various procurement groups FNS has identified, how to use each group in a way that complies with federal procurement standards, and supersedes SP 35-2012, Procuring Services of Purchasing Cooperatives, Group Purchasing Organizations, Group Buying Organizations, etc., dated June 12, 2012.
Under previous interpretation of 2 CFR 200.325, FNS communicated that “subcontracts exceeding the Simplified Acquisition Threshold” not only applied to subcontracts related to construction or facility improvement contracts, but also applied to food service management companies as the contracts they have with school food authorities were considered to be subcontracts and, therefore, fell under the scope of the bonding requirements in 2 CFR 200.325
This memorandum responds to a number of recent questions and requests to provide clarifying guidance to state agencies and child nutrition program operators, including the National School Lunch Program, School Breakfast Program, Child and Adult Care Food Program, and Summer Food Service Program, regarding the expectation and enforcement of ethical conduct by their employees engaged in procurement of program goods and service.
This memorandum clarifies how school food authorities may use funds provided under Sections 4 and 11 or 19 of the National School Lunch Act to purchase fresh fruits and vegetables from DoD Fresh Fruit and Vegetable Program vendors.
In an effort to simplify procurement requirements for SFSP sponsors, this memorandum links existing procurement and contract thresholds referenced in the program regulations to the federal small purchase threshold currently set at $150,000.