Skip to main content
California Department of Education Logo

Fee Reduction for Agencies Receiving USDA Foods

Nutrition Services Division Management Bulletin
Purpose: Policy, Beneficial Information

To: Food Distribution Program Recipient Agencies

Number: NSD-FDP-03-2011

Attention: Food Service Directors, School Business Officials

Date: September 2011

Subject: Fee Reduction for Agencies Receiving U.S. Department of Agriculture Foods

Effective October 1, 2011, the California Department of Education’s (CDE) Food Distribution Program (FDP) will decrease its shipping and handling fees by 20 percent for food shipped through the State Distribution Centers (SDC) and administrative fees for U.S. Department of Agriculture (USDA) Foods ordered for direct shipment. Please see the chart below for the new rates.

Warehouse Agency
Fee Type New Rate
USDA Foods delivered by SDCs $2.60
USDA Foods picked up by agencies $2.20
USDA Foods sent to processors (administrative fee) $0.80
Department of Defense (DOD) produce delivered $2.60
State Cooperative (Co-op) Member
Fee Type New Rate
USDA Foods delivered by SDCs $2.60
USDA Foods sent to processors $0.80
DOD produce delivered (South State Co-op) $2.60
DOD produce administrative fee (North State Co-op) $0.10
Direct Ship (DS) and Private Co-Ops
Fee Type New Rate
USDA Foods sent to processors/distributors $0.80
USDA Foods delivered to DS/processors by SDCs $2.60
USDA Foods picked up by DS/processors at SDCs $2.20
DOD produce (administrative fee) $0.10

The CDE is aware of the budgetary challenges facing many of your food service programs, so we strive to assess fees no greater than those required to sustain the program on a statewide level. Over the past few years, the CDE’s FDP has implemented technologies such as the Child Nutrition Information and Payment System, Invetrak, and an automated bar-coding system, which have helped streamline ordering, billing, and the management and tracking of inventory. This has increased our overall operational efficiency and effectiveness which allows us to pass along the benefits to districts and recipient agencies.

Please share this information with your district/agency management and business officials as appropriate. If you have any questions, please contact Sherry Tam, Child Nutrition Consultant, by phone at 916-324-9875 or by e-mail at

Questions:   Nutrition Services Division | 800-952-5609
Last Reviewed: Wednesday, February 15, 2017
Recently Posted in Nutrition

  • DCH Meal Benefit Form for Providers (DOC) (added 06-Mar-2017)
    Day care home provider application for Tier I reimbursement and/or claiming meals served to children living in the provider's household.
  • Prior Approval for CACFP Allowable Costs (added 27-Feb-2017)
    Management Bulletin CACFP-03-2017: Prior Approval for Child and Adult Care Food Program Allowable Costs.
  • CNIPS Training Registration (added 14-Feb-2017)
    Information about CDE-sponsored courses, training locations, and registrations are available on the CNIPS Training Registration Web page. This Web page is accessed from the CNIPS Home Page by selecting the Training Registration link.
  • Food Service Management Company Rebids 2017-18 (added 14-Feb-2017)
    School Food Authorities required to rebid Food Service Management Company contracts for School Year 2017-18.
  • Two-cent Differential Reimbursement for New SFAs (added 30-Jan-2017)
    MB SNP-04-2017, USDA Policy Memo SP 30-2014: Determining Eligibility for Two-cent Differential Reimbursement and SP 23-2005: Eligibility for Severe Need Rates for the School Breakfast Program.