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 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 and in a modified form of such sales system previously approved by FNS.
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.
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.
This memorandum is to clarify the appropriate actions a processor must take when errors are discovered on monthly performance reports.
This memo, which addresses commodity book inventory reduction at further processors. has been superseded by the July 16, 2021 memo, FD-40: Inventory Drawdown in USDA Foods Processing (Revised).
Uniform policy to ensure that recipient agencies receive full credit for commodities provided to the processor.
This memorandum establishes the procedure for accounting for rework in the further processing of donated foods.
This memorandum establishes the policy and procedures to compensate offshore destinations for the marine shipping costs associated with further processed end products. Offshore destinations are defined as those state agencies that are not located in the 48 contiguous United States.