The purpose of this memorandum is to address recent inquiries on the application of the geographic preference option in the procurement of unprocessed locally grown or raised agricultural products.
FD-119 provides clarification for the option to combine the solicitation of procurement of end products and commercial food products. Some school food authorities may solicit bids for procurement of end products in their solicitation for procurement of commercial food products from commercial distributors, rather than conducting two separate solicitations.
Following the Jan. 26, 2012, issuance of the final rule titled Nutrition Standards in the National School Lunch and School Breakfast Programs, several questions have been raised regarding its effect on current contracts between school food authorities and food service management companies.
In this policy memorandum, we clarify that the SFA may, in some cases, include bids for procurement of end products in its solicitation for procurement of commercial food products from commercial distributors, rather than conduct two separate solicitations.
Regarding awarding contracts, state agencies are advised to carefully review school district to ensure they are in compliance with federal regulations and take appropriate actions.
Recently, we have been asked 1) whether an equipment manufacturer would violate Department regulation 7 CFR Part 3016.60(b) if the equipment manufacturer writes the bid specifications for a school food authority (SFA) when that manufacturer does not directly sell its products to the SFA, but uses dealers or distributors instead and 2), would a food service management company (FSMC) violate §3016.60(b), if the FSMC drafted a provision to amend an existing SFA-FSMC contract
As you know, in August 2000, the procurement requirements for the child nutrition programs were moved from Department regulation 7 CFR Part 3015 to 7 CFR Parts 3016 and 3019. Attached are a number of questions and answers we have received concerning how these requirements changed the procedures for procurements paid with State Administrative Expense Funds.