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-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
Suggested Format for Surety Bonds

Suggested Format for Surety Bonds

Resource | Policy
Notice to the Trade - All Poultry Processors (June 2012)

Notice to the Trade - All Poultry Processors (June 2012)

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 | Technical Assistance
FY 2011 FNS Discretionary Grants Summary

Summary - FY 2011 FNS Discretionary Grants

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.