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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: Thursday, January 14, 2016

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