Resource | Policy Memos | FD-104
Signature Block Removal from Summary End Product Data Schedules

The purpose of this policy memorandum is to clarify state distributing agency (SDA) requirements related to approval of end product data schedules (EPDS) and summary end product data schedules (SEPDS) and provide an explanation for the removal of signature blocks from the SEPDS A and B templates.

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-008
Establishing Processor Inventory Weight for Random Weight Commodities

Issue: USDA purchases a number of commodities such as cheddar cheese, mozzarella cheese, and turkeys in random weight units. These items can be identified in the Food Distribution Commodity file by the absence of numbers under the heading "average gross pack weight.” or with a “1.00” under the heading "net pack weight."

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. 

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
Substitution of USDA Beef and Pork

In this policy memorandum, the USDA's Food and Nutrition Service (FNS), in coordination with the Agricultural Marketing Service (AMS), is conducting a demonstration project in which processors operating an approved Processor Control Certification Program (PCCP) plan are permitted to submit a substitution plan that, if approved, would provide for substitution of USDA beef and pork with commercial beef and pork of U.S. origin, and of equal or better quality in all USDA purchase specifications that the USDA beef and pork.

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.