Resource | Policy Memos | FD-145
Cancellation of Policy Memoranda FD-009, FD-025, FD-130, FD-102, FD-030, FD-038, FD-048, FD-103, and FD-108

In order to update and streamline policy guidance for the USDA Foods Processing Program, FNS is cancelling Policy Memoranda FD-009, FD-025, FD-130, FD-102, FD-030, FD-038, FD-048, FD-103, and FD-108. The guidance provided by these memoranda is outdated and has been superseded by the Final Rule: Revisions and Clarifications in Requirements for the Processing of Donated Foods(Final Processing Rule), which was published on May 1st, 2018.

Resource | Policy Memos | FD-137
Alternative Value Pass-Through System Pilot Project under the Department of Defense Fresh (DoD Fresh) Program

The revised policy memo requires supplemental reporting from processors and requires State verification of credits provided by the processor to the SFA. Processors wishing to continue participation in the pilot will have to sign the attached revised NPA amendment to extend their
participation in the pilot.

Resource | Policy Memos | FD-136
Cancellation of Policy Memorandum FD-085, Nonfat Dry Milk Processing

Policy Memorandum FD-085, Nonfat Dry Milk Processing (dated March 27, 2009) is cancelled.  

Resource | Policy Memos | FD-134
Minimum Inventory Protection Requirements for Processors Participating in the National Processing Program

FNS is committed to rigorous oversight and controls over USDA Foods processing to ensure that State agencies and school food authorities (SF As) receive the full benefit of the USDA Foods entitled to them, consistent with 7 CFR Part 250. As such, the National Processing Agreement requires that participating processors must furnish to USDA inventory protection in the form of a surety bond, an irrevocable letter of credit, or an escrow account in order to guarantee that the processor will account for, return, or pay for all of the USDA Foods received or carried forward, either as physical or book inventory. The purpose of this memorandum is to inform processors of minimum inventory protection requirements effective beginning in School Year 2014-2015.

Resource | Policy Memos | FD-133
School Food Authorities Purchasing Produce from Department of Defense Vendors using Section 4 and 11 FFVP Funds

This memorandum clarifies how School Food Authorities (SFAs) may use funds provided under Sections 4 and 11 or 19 of the National School Lunch Act (NSLA), 42 U.S.C. 1751, to purchase fresh fruits and vegetables from DoD Fresh Fruit and Vegetable Program (DoD Fresh) vendors.

Resource | Policy Memos | FD-127
Approval of End Products and Monitoring of End Product Sales

The purpose of this policy memorandum is to clarify a State distributing agency's (SDA) responsibilities regarding (1) the approval of end products for processing; and(2)monitoring of sales of such end products to school food authorities (SF A) in the National School Lunch Program (NSLP) by reviewing a processor's monthly performance report. Further guidance in monitoring a processor's USDA Food inventory is included in Policy Memoranda FD-064 and FD-122. These two memoranda relate specifically to reducing a processor's excessive inventory and tracking negative inventories.

Resource | Policy Memos | FD-129
USDA Foods Bone-in-Chicken Products

USDA Food and Nutrition Service policy memo SP 26-2013, "Extending Flexibility in the Meat/Meat Alternate and Grains Maximums for School Year 2013-14" extends the flexibility regarding Meat/meat Alternate (M/MA) maximums for SY 2013-13, allowing State agencies to assess compliance based on the minimum daily and weekly serving requirements only.  

Resource | Policy Memos | FD-049
Substitution and Valuation of USDA Cheese

In November 2005, the Food and Nutrition Service (FNS) issued Policy Memorandum FD-049 to assist school food authorities (SFAs) in providing healthier options and a wider variety of cheese products for students. The policy memorandum permits processors to substitute cheese donated by the Department of Agriculture (i.e., USDA cheese) with other varieties of cheese produced for the commercial market. The policy memorandum also allows processors to commingle USDA cheese varieties eligible for substitution into a single book inventory for each State agency, and establishes a single value for all such varieties, based on the 33-month average price for cheese from the Chicago Mercantile Exchange. 

Resource | Policy Memos | FD-122
Substitution of Donated Foods in Advance of Purchase and Negative Inventories

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. Substitution of donated foods usually occurs after USDA purchase and delivery of the donated food to the processor, or after USDA purchase but before actual receipt of the donated food shipment In either case, the processor may sell commercial products or finished end products to any of its customers, while passing through the value of the donated food to SFAs. 

Resource | Policy Memos | FD-119
Soliciting Bids from Commercial Distributors for End Products

The procurement of goods and services in the National School Lunch Program (NSLP) must be conducted in a manner that ensures free and open competition, in accordance with Federal regulations under 7 CFR Part 3016 or 7 CFR Part 3019, as applicable, and must also comply with procurement requirements in 7 CFR 210.21. This is true for procurement of both commercial food products and end products produced through the further processing of USDA donated foods (hereinafter referred to as "end products"). In most cases, school food authorities (SFAs) solicit bids for procurement of commercial food products from commercial distributors and, in a separate solicitation, solicit bids for procurement of end products from processors, even when identical food products are sold commercially through distributors. 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. This policy memorandum also clarifies the requirements, and the parties responsible for ensuring compliance with requirements, in exercising such option. Although the memorandum focuses on SFA procurements in NSLP, it is also applicable to procurements conducted by recipient agencies in other child nutrition programs.