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.
In response to several requests and to assist state agencies and school food authorities in their compliance efforts, we are providing the following prototype contract language requiring the return of purchase incentives to SFAs.
This memorandum is intended to provide clarification of what is allowable, for contracts executed both prior to and after publication of the final rule.
The purpose of this memorandum is to highlight the key provisions of the final rule and emphasize the responsibilities state agencies have in ensuring compliance with these provisions and with contract enforcement and oversight.