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Purchasing Produce from DoD Vendors


Nutrition Services Division Management Bulletin

Purpose: Policy, Beneficial Information

Date: May 2014

Number: FDP-01-2014

To: Food Distribution Program Recipient Agencies

Attention: Food Service Directors

Reference: U.S. Department of Agriculture Food and Nutrition Service Policy Memorandum SP 25-2014 and FD 133-2014 http://www.fns.usda.gov/fdd/policy
Title 7, Code of Federal Regulations, sections 3016.36 and 3019.40–3019.48. [Note: Effective October 1, 2015, Title 2, Code of Federal Regulations, sections 200.317–200.326 superseded Title 7, Code of Federal Regulations, sections 3016.36 and 3019.40–3019.48.]

Subject: Clarification on the Use of National School Lunch Program or Fresh Fruit and Vegetable Program Funds for the Procurement of Produce from U.S. Department of Defense Program Vendors


This Management Bulletin (MB) clarifies how school food authorities (SFA) may use National School Lunch Program (NSLP) reimbursement funds or Fresh Fruit and Vegetable Program (FFVP) grant funds to purchase fresh fruits and vegetables from U.S. Department of Defense Fresh Fruit and Vegetable Program (DoD Fresh) vendors.

Background

SFAs participating in DoD Fresh order produce use either the State Distribution Center’s allocation process or the DoD’s Fresh Fruit and Vegetable Ordering Receipt System (FFAVORS).

SFAs that use FFAVORS are allowed to allocate some or all of their U.S. Department of Agriculture (USDA) Foods entitlement, funded under Section 6 of the National School Lunch Act, to purchase produce from DoD Fresh. Some SFAs use NSLP funds from the nonprofit food service account, also known as the Cafeteria Fund, (this includes federal Section 4 and 11 reimbursement funds) or funds provided through the FFVP (Section 19 funds) to purchase additional produce directly from DoD Fresh vendors using FFAVORS.

Policy

SFAs should be aware that all direct purchases using NSLP or FFVP funds, including those procured informally, are subject to the federal procurement regulations governing the NSLP or FFVP (Title 7, Code of Federal Regulations, sections 3016.36 and 3019.40–3019.48). [Note: Effective October 1, 2015, Title 2, Code of Federal Regulations, sections 200.317–200.326 superseded Title 7, Code of Federal Regulations, sections 3016.36 and 3019.40–3019.48.]

Specifically:

  • SFAs must competitively contract with individual vendors to purchase products using NSLP or FFVP funds, even if the same vendors already provide the SFA with products through DoD Fresh using Section 6 funds. SFAs are required to conduct either an informal or formal procurement, depending on whether the estimated value of the purchase is above or below the most restrictive applicable small purchase threshold (federal, state, or local).

  • In conducting the procurement, it is permissible for SFAs to include vendors that provide services through DoD Fresh when soliciting bids. If the SFA evaluates all bids and determines that the DoD Fresh vendor’s bid is the winning submission, the SFA must directly contract with the DoD Fresh vendor as they would with any other commercial procurement.

Note: Beginning in School Year 2014–15, SFAs are prohibited from placing orders through DoD’s FFAVORS for any purchases, either formally or informally, using NSLP or FFVP funds.

If you have any questions regarding this MB, please contact Amy Bell, Child Nutrition Consultant, Food Distribution Program, by phone at 916-322-5051 or by e-mail at abell@cde.ca.gov.

Questions:   Nutrition Services Division | 800-952-5609
Last Reviewed: Tuesday, May 7, 2019
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