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.
The purpose of this memorandum is to update the definition of what is considered “unprocessed” for the purposes of applying the optional geographic preference for procurement in the child nutrition programs.
Please be aware that the procurement questions from July 22, 2009 have been revised. This new set of procurement questions supersedes the previous set, as a change has been made to the second Q&A under “Local Purchasing."
This memorandum updates and revises memoranda SP30-2008: Applying Geographic Preferences in Procurements for the Child Nutrition Programs, SP08-2009: Procurement Questions, and SP28-2009: Procurement Questions, regarding school food authorities’ and other institutions’ application of a geographic preference in procurements for the child nutrition programs.
Today’s unpredictable economy has made it important to consider accounting for the fluctuating costs of goods and services that are beyond the control of either the school food authority or the vendor.
Recently, we have received numerous concerns regarding the improper application of the new procurement rule, Procurement Requirements for the National School Lunch, School Breakfast and Special Milk Program, which was published in the Federal Register on Oct. 31, 2007 and became effective on Nov. 30, 2007.