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.
Offering School Food Authorities the Required Value and Variety of USDA Foods, and Efficient and Cost-Effective Distribution
The purpose of this policy memorandum is to provide direction and guidance to State Distributing Agencies (SDAs) in order to ensure compliance with legislative and regulatory requirements, and to make certain that all school food authorities (SFAs) receive their planned assistance level and maximize their use of USDA Foods to meet the nutrition standards in the National School Lunch Program (NSLP).
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. This policy memorandum also clarifies the requirements, and the parties responsible for ensuring compliance with requirements, in exercising such option.