Authorized by the 2014 Farm Bill, the USDA Pilot Project for Procurement of Unprocessed Fruits and Vegetables was designed to provide states with additional flexibility in the procurement of unprocessed fruits and vegetables. Participating states and school food authorities can purchase approved items with existing USDA Foods National School Lunch Program entitlement funds from any USDA Pilot-authorized vendor in support of the school meal standards.

This report assesses that pilot and includes a qualitative evaluation of the vendor and ITO experiences and an assessment of pilot costs.

This report provides improper payment estimates for fiscal year 2011 using a methodology for “aging” the 2005 bookend study. The methodology yields nationally representative estimates of the number of vendors that over- and undercharged and the amount of over- and undercharges across all WIC vendors.

In 1991 and 1998, FNS conducted national studies of WIC vendors to determine the extent of vendor violation of program rules. After the 1998 study, FNS issued regulations to correct vendor practices. The 2005 study replicates the 1998 study to determine whether the regulations were effective, and to measure the frequency of vendor violations and the degree to which vendors charge accurate prices for WIC transactions.

The Prime Vendor Pilot was conducted as part of USDA's Business Process Re-engineering efforts to improve the administration and operation of the Food Distribution Program on Indian Reservations. Under this pilot, USDA partnered with the Department of Defense, which had an existing contract with commercial vendors and distributors.

This report fulfills the request from Congress in the House Appropriations Committee Report (HR 107-116), which accompanied the Agriculture Appropriations Act for fiscal year 2002.