Under previous interpretation of 2 CFR 200.325, FNS communicated that “subcontracts exceeding the Simplified Acquisition Threshold” not only applied to subcontracts related to construction or facility improvement contracts, but also applied to food service management companies as the contracts they have with school food authorities were considered to be subcontracts and, therefore, fell under the scope of the bonding requirements in 2 CFR 200.325
FNS is aware that school food authorities and program operators may be operating NSLP, SBP, and other child nutrition programs, in a way that includes offering reimbursable meals and non-program foods (a la carte sales, catering, adult meals, etc.) using foods from popular franchise restaurants through a franchise agreement.
FNS has received many questions related to implementation of 2 CFR Part 200 and understands that changes to financial and procurement systems are costly and require time to develop and implement. Therefore, FNS will work with state agencies during this transition period and will seek to answer questions and provide guidance as needed.
This memorandum responds to a number of recent questions and requests to provide clarifying guidance to state agencies and child nutrition program operators, including the National School Lunch Program, School Breakfast Program, Child and Adult Care Food Program, and Summer Food Service Program, regarding the expectation and enforcement of ethical conduct by their employees engaged in procurement of program goods and service.
This memorandum clarifies how school food authorities may use funds provided under Sections 4 and 11 or 19 of the National School Lunch Act to purchase fresh fruits and vegetables from DoD Fresh Fruit and Vegetable Program vendors.
In an effort to simplify procurement requirements for SFSP sponsors, this memorandum links existing procurement and contract thresholds referenced in the program regulations to the federal small purchase threshold currently set at $150,000.
This memo clarifies the small purchase threshold applicable to procurements under FNS programs.
The purpose of this memorandum is to emphasize the importance of the state agency and school food authority oversight and monitoring of contracts with food service management companies and to provide guidance for these activities.
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.
The purpose of this memorandum is to provide Q&As on the application of the geographic preference option in procurement of unprocessed locally grown or locally raised agricultural products.