This memorandum provides guidance to state distributing agencies and recipient agencies on the use of market basket analysis in procuring processed end products for USDA Foods in Schools and commercial goods for the National School Lunch Program, School Breakfast Program, Summer Food Service Program, and Child and Adult Care Food Program.
Regarding awarding contracts, state agencies are advised to carefully review school district to ensure they are in compliance with federal regulations and take appropriate actions.
Recently, we have been asked 1) whether an equipment manufacturer would violate Department regulation 7 CFR Part 3016.60(b) if the equipment manufacturer writes the bid specifications for a school food authority (SFA) when that manufacturer does not directly sell its products to the SFA, but uses dealers or distributors instead and 2), would a food service management company (FSMC) violate §3016.60(b), if the FSMC drafted a provision to amend an existing SFA-FSMC contract
In accordance with the Child Nutrition and WIC Reauthorization Act of 2004, the housing allowance for military personnel living in privatized housing will be permanently excluded from income when determining household eligibility for free and reduced price meals or free milk in all of the child nutrition programs.
As you know, in August 2000, the procurement requirements for the child nutrition programs were moved from Department regulation 7 CFR Part 3015 to 7 CFR Parts 3016 and 3019. Attached are a number of questions and answers we have received concerning how these requirements changed the procedures for procurements paid with State Administrative Expense Funds.