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Changing Receipt of USDA Foods


Nutrition Services Division Management Bulletin
Purpose: Policy

To: Food Distribution Program Recipient Agencies

Number: NSD-FDP-02-2013

Attention: Food Service Director
Business Official

Date: October 2013

Subject: Changing Receipt of U.S. Department of Agriculture Foods

This Management Bulletin notifies Food Distribution Program (FDP) recipient agencies of a policy update to ensure that all schools have adequate time to notify the FDP of their intent to change the way they order and receive U.S. Department of Agriculture (USDA) Foods for the following school year.

The California Department of Education (CDE) would like your USDA Foods distribution business and asks that you consider choosing the state for receiving your donated food. Unlike commercial entities, CDE employees are public servants committed to keeping costs low and the level of customer service high.

Effective October 1, 2013, if an agency would like to change the way they annually receive USDA Foods, the agency must send a letter of intent to the FDP at any time prior to December 15 in order for the change to take effect in the following school year. The FDP will consider letters of intent submitted after the deadline on a case-by-case basis.

The letter of intent must include agency name, address, phone number, vendor number, and contact name. Agencies do not need to notify the FDP if they are not changing the way they receive USDA Foods. Please forward agency letters of intent by fax or e-mail to:

North State Cooperative Agencies
Geovanna Toliver-Bean
Phone: 916-322-4014
Fax: 916-327-4004
E-mail: gtoliverbean@cde.ca.gov

South State Cooperative Agencies
Felisha Zuniga
Phone: 916-445-0404
Fax: 916-327-4004
E-mail: fzuniga@cde.ca.gov

State Distribution Center/Advance Order Agencies
Amy Bell
Phone: 916-322-5051
Fax: 916-327-4004
E-mail: abell@cde.ca.gov

Private Cooperative and Direct Ship Agencies
Marina Soto
Phone: 916-324-0577 
Fax: 916-327-4004
E-mail: msoto@cde.ca.gov

To view the current fees, please refer to Management Bulletin NSD-FDP-03-2011 located on the FDP Fee Reduction for Agencies Receiving USDA Foods Web page at http://www.cde.ca.gov/ls/nu/fd/mbnsdfdp032011.asp. Please contact Private Cooperatives (Co‑op) directly regarding their fees.

The FDP is committed to providing agencies with excellent customer service and is happy to offer additional information to help agencies make their decision. The FDP has prepared the attached guide to Food Distribution Program Avenues for Receiving USDA Foods, which compares services among the State Distribution Centers, State Co-ops, and Private Co-ops.

If you have any questions or would like further assistance, please contact the appropriate FDP staff member listed above.

Attachment

FDP Avenues for Receiving USDA Foods at http://www.cde.ca.gov/ls/nu/fd/documents/mbnsdfdp022013att.doc


AVENUES FOR RECEIVING USDA FOODS

Characteristic

State Distribution Center (SDC) Agencies

State Cooperative (Co-op) Members

Private Cooperative (Direct Ship) Members

Organization

Agencies receiving USDA Foods through an SDC are part of the Allocation and Advance Order System. Agencies control expenditure of their entitlement. Agencies are responsible for management of their USDA Foods.

Member agencies may operate independently or as part of a collective group. There is no Lead District. State representatives oversee the program. Members control expenditure of their entitlement and are responsible for management of their USDA Foods. There is no minimum average daily participation (ADP) required.

One member agency assumes the responsibility as the Lead District. Co‑op members assign their USDA Foods entitlement and responsibility for related management activities to the Lead District. The combined Co‑op member’s ADP must be a minimum of 50,000 to qualify as a Direct Shipment agency.

Ordering

Agencies order non‑processed USDA Foods based on the quantity available at the SDC at least five times a year. Annually, before each new school year, agencies have the opportunity to order USDA Foods for processing through the Advance Order. Agency Advance Orders to processors are combined with State and Private Co‑op orders in order to make up full truckloads.

Member agencies submit a completed Order Form (pre‑planner) prior to the beginning of the school year. USDA Foods for direct shipment to a processor are designated when USDA Foods are ordered. USDA Foods allocations are based on the agency’s “fair share” of the state total.

The Lead District is responsible for ordering and allocating entitlement to member districts. Orders for USDA Foods are submitted as surveys are released from USDA. USDA Foods for direct shipment to a processor are designated when USDA Foods are ordered. USDA Foods allocations are based on the Co‑op’s “fair share” of the state total.

Receiving, Storage, and Distribution

Shipments of USDA Foods are designated for delivery to the SDC or processor. Delivery dates for warehoused USDA Foods are indicated on the Allocation. All USDA Foods inventory is maintained in the agency’s name. Extended storage is available at the SDC.

Shipments of USDA Foods are designated for delivery to the SDC or processor. Deliveries are scheduled by the SDC with the individual member agency. Co‑op member orders to processors are combined with the Advance Order and Private Co‑op orders. Extended storage and frequent deliveries are available. All inventory and entitlement is maintained in the member agency’s name.

Shipments of USDA Foods are delivered to a designated warehouse, distributor, or processor. Orders have a quarter load minimum and must be combined with other orders to equal a full truckload. Delivery to individual member agencies and extended storage is arranged with the distributor. All USDA Foods inventory and entitlement is maintained in the Lead Agency’s name until allocated to the member agency.

Charges

Agencies requesting shipment of raw USDA Foods for direct shipment to a processor are charged $0.80 per case equivalent. Service, shipping and handling charges are $2.60 per case for USDA Foods and for finished product from a processor delivered through the SDC. A discount is offered for agencies picking up their USDA Foods from the SDC. Extended storage fees at the SDC vary, depending on the type of storage required.

Agencies requesting shipment of raw USDA Foods for direct shipment to a processor are charged $0.80 per case equivalent. Service, shipping and handling charges are $2.60 per case for USDA Foods and for finished product from a processor delivered through the SDC. A discount is offered for agencies picking up their USDA Foods from the SDC. Extended storage fees at the SDC vary, depending on the type of storage required.

The state charges the Co‑op an administrative fee of $0.80 per case for direct shipment of USDA Foods to commercial distributors and/or processors. Distributors may charge additional fees for services, shipping and handling, and storage of USDA Foods. Please contact the Private Co‑ops directly regarding their fees.

Department of Defense Fresh Fruit & Vegetable Program (DOD)

Agencies use a portion of their entitlement to order selected seasonal DOD produce through the allocation process. Agencies receive DOD as part of their regular allocation. Agencies are charged $2.60 for each case of produce delivered through the SDC.

South State Co‑op members use a portion of their entitlement to order and receive seasonally selected DOD produce and are charged $2.60 for each case of produce delivered through the SDC. North State Co‑op members use a portion of their entitlement to order and receive domestically grown produce directly from the DOD as needed and a $0.10 administrative fee is assessed by the state for each case of produce delivered.

Private Co‑ops and direct ship agencies use a portion of their entitlement to order domestically grown fresh fruits and vegetables directly from the DOD as needed. A private distributor delivers DOD produce to each agency. The state charges the Co‑op an administrative fee of $0.10 for each case of produce delivered. Please contact the Private Co‑ops directly regarding their fees.

USDA Food Losses and Transfers

Agencies are responsible for management of their USDA Foods. USDA Foods losses at a processor must be reported to the state and may require USDA approval. USDA Foods transfers between recipient agencies are allowed without prior state approval; however, transfers involving a processor require state agency approval.

Individual members are responsible for management of their USDA Foods. USDA Foods losses at a processor must be reported to the state and may require USDA approval. USDA Foods transfers between recipient agencies are allowed without prior state approval; however, transfers involving a processor require state agency approval.

Individual members are responsible for management of their USDA Foods. USDA Foods losses at a processor must be reported to the state and may require USDA approval. USDA Foods transfers between recipient agencies are allowed without prior state approval; however, transfers involving a processor require state agency approval.

Questions:   Nutrition Services Division | 800-952-5609
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