The previous version of this memorandum contained incorrect references to state agencies throughout. FNS is correcting this memorandum to remove the incorrect references and so that it more clearly and accurately reflects the federal regulations. This memorandum notifies state agencies and child nutrition program operators of the changes made by OMB to the federal informal procurement method, micro-purchases and the micro-purchase threshold.
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.