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.

The purpose of this study is to evaluate the effectiveness of state agencies current peer group systems, and to provide guidance to state agencies on how to evaluate and update their systems. Specifically, it uses empirical analysis to identify one or more effective models for establishing vendor peer groups that could apply to most state agencies.

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

This report describes how the Direction Card system works; the process undertaken by ODJFS and its EBT vendor to design, develop, and test the system; the implementation process and experiences; and the cost of system design, development, and implementation. Volume 2 of this report compares the ongoing administrative costs of system operations and system levels of benefit loss and diversion with those of on-line EBT systems and the Dayton pilot.