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Sponsor and Provider Permanent Agreement

Nutrition Services Division Management Bulletin
Purpose: Policy, Action Required
To: Child and Adult Care Food Program
Day Care Home Sponsors
Number: NSD-CACFP-01-2013
Attention: Authorized Representatives and Program Contacts Date: August 2013
Subject: Sponsor and Provider Permanent Agreement
Reference: Title 7, Code of Federal Regulations, Section 226.18(b)
Supersedes: Management Bulletin 05-209 Sponsor and Provider Permanent Agreement

This Management Bulletin (MB) provides the following:

  • Updated sample Child and Adult Care Food Program (CACFP) day care home (DCH) Sponsor and Provider Permanent Agreement (Agreement)
  • Clarification of allowable sponsor modifications to the Agreement
  • Clarification on the use of Agreement Addendums
  • Procedure to obtain approval of Agreement modifications
  • Actions that DCH sponsors are required to take by March 1, 2014

The Child Nutrition and Women, Infants and Children Reauthorization Act of 2004 required DCH sponsors to have Agreements with their providers by July 1, 2005. To disseminate this information, the Nutrition Services Division (NSD) issued MB 05-209 (April 2005) regarding the Agreement, which included details pertaining to the Agreement between DCH sponsors and their providers, and it also included a sample Agreement.

The NSD issued an updated sample Agreement in August 2010 via MB USDA-CACFP-05-2010, entitled “Record Retention Requirements for Day Care Home Providers.” The updated sample Agreement incorporated record retention requirements that were in effect as of October 2010.

Sample Agreement Updated August 2013

The NSD recently revised the October 2010 sample Agreement. The new August 2013 Agreement is available in the “Download Forms” section of the Child Nutrition Information and Payment System (CNIPS) CACFP module. Please ensure that your agency is using the most current version. 

The August 2013 sample Agreement contains the following updates since its last release:

  • Sponsors are required to vary the timing of unannounced visits (This policy is outlined in MB USDA-CACFP-10-2011 on the California Department of Education Varied Timing of Unannounced CACFP Reviews Web page at
  • Sponsors are required to ensure providers certify that they are not currently on the     U.S. Department of Agriculture’s National Disqualified List.
  • In addition to adhering to the California Department of Social Services’ licensing regulations, providers must also comply with Trustline Registry established requirements, military license regulations, or tribal authority policies, if applicable.
  • Sponsors have more flexibility in how a provider submits reimbursement claim data to their sponsor.
  • Sponsors agree to give providers at least 14 days written notice, instead of 30 days, to end the Agreement for convenience.
Sponsor Modifications to Agreement

Sponsors that choose to modify and use the Agreement must have written pre-approval from their assigned NSD DCH Program Specialist. Modifications cannot eliminate any of the sample Agreement requirements, but can clarify topics and include additional requirements. Proposed additional requirements cannot conflict with any CACFP regulations and policies or create a barrier to provider participation.

Agreement Addendum

A sponsor may amend an existing Agreement by creating an Addendum, instead of replacing the entire existing Agreement. The use of an Addendum is recommended when there are changes to regulations, policies, or procedures. An Addendum is considered part of the Agreement. Sponsors can use an Addendum only after obtaining written pre-approval from their assigned NSD DCH Program Specialist.

Procedure to Request Modifications to Sample Agreement or Create an Addendum

To receive written approval of a proposed modified Agreement or Addendum, sponsors must submit a request for approval by e-mail to their assigned NSD DCH Program Specialist. The e-mail message must include the proposed modified Agreement or Addendum, or both, as an attachment. Please allow the NSD DCH Program Specialist 30 calendar days to review and approve agency request(s).

Sponsor Action Required by March 1, 2014 

Beginning March 1, 2014, all sponsors must have one of the following with each of their providers:

  1. A new signed Agreement using the August 2013 sample Agreement
  2. A preapproved modified version of the August 2013 sample Agreement
  3. A preapproved Addendum to the October 2010 Agreement

If you have any questions regarding this MB, please contact the NSD DCH Program Specialist assigned to your agency. You can also contact Laurie Pennings, CACFP Manager, by phone at 916-324-7133 or by e-mail at

Questions:   Nutrition Services Division | 800-952-5609
Last Reviewed: Monday, October 13, 2014

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