Massachusetts Department of Elementary and Secondary Education
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2 USDA Foods in Massachusetts SY SNA of MA USDA Foods Show 2/1/2017 Marion Browning Food Distribution Coordinator
3 Non-Discrimination Statement In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, sex, disability, age, or reprisal or retaliation for prior civil rights activity in any program or activity conducted or funded by USDA. Persons with disabilities who require alternative means of communication for program information (e.g. Braille, large print, audiotape, American Sign Language, etc.), should contact the Agency (State or local) where they applied for benefits. Individuals who are deaf, hard of hearing or have speech disabilities may contact USDA through the Federal Relay Service at (800) Additionally, program information may be made available in languages other than English. To file a program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, (AD-3027) found online at: and at any USDA office, or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) Submit your completed form or letter to USDA by: (1) mail: U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, SW Washington, D.C ; (2) fax: (202) ; or (3) program.intake@usda.gov. 3 This institution is an equal opportunity provider.
4 Thank you SNA of Massachusetts! 4
5 Thank you USDA Foods Advisory Committee! 5
6 Thank you Processing Enhancement Taskforce! 6
7 Thank you Food Distribution Staff! 7
8 ESE Food Distribution Staff Belinda Wilson - Diversion bwilson@doe.mass.edu Ahmed Bilimoria Brown Box abilimoria@doe.mass.edu Rick Finnigan DoD Fresh rfinnigan@doe.mass.edu Marion Browning mbrowning@doe.mass.edu Mike Murphy mjmurphy@doe.mass.edu (Variety) Donna Taylor dtaylor@doe.mass.edu Rob Leshin rleshin@doe.mass.edu (TEFAP, CSFP) 8
9 Highlights of SY Today s Topics Entitlement Resources to know your value Options for using entitlement DOD Fresh Contract status Parameters SY Brown Box New Web page on Security Portal must be completed New products/deleted products Processing Why commercial distribution no more state warehouse Bids vs. Processor Packets Pass Through Value ( PTV) Fee for Service through Distributor Net Off Invoice 9
10 Webinars on USDA Foods SY Food Ordering Entitlement, Brown Box Survey and Department of Defense (DOD) Fresh Produce What's it all about? Tuesday, February 7, 2017: 2:30pm 4pm Tuesday, February 21, 2017: 9am 10:30am Wednesday, March 1, 2017: 9:30am 11am. Understanding Important Changes to the Processing Program for SY Wednesday, February 8, 2017: 2:30pm 4pm Thursday, February 23, 2017: 9am 10:30am Thursday, March 2, 2017: 9:30am 11am 10
11 Highlights of SY New Contracts for Storage & Transportation GoodFellas Trucking Region 3/ A&D Cold Storage New rates higher across board storage & transportation Rates hold for 3 years same as prior years contracts Complaint resolution Improved when we are notified! An to carrier with copy to Ahmed Bilimoria Ticket number, product & quantity not delivered District s contract if not using state contract: Sound business practice to have terms in writing Carrier s responsibility if Federal asset is not delivered that they signed for on your behalf 11
12 Security Portal Resource Order Status 12
13 Date Left Warehouse 13
14 Highlights of SY Brown Box Products New Products in SY well received: Pulled pork Pepper/onion blend Cheddar Cheese: No longer available from USDA Was not included on SY Brown Box Survey Survey drove products ordered & amount ordered Extras are limited Ahmed now checks total entitlement usage before providing additional brown box products 14
15 Highlights of SY DOD Fresh Last year of 5 year contract AT Siravo services: CT, RI, NH, ME & MA Current contract expires May 2017 Use entitlement committed or swept 4/30/17 Delivery day or date change First contact AT Siravo for clarification They set schedule for all 5 states If can not work out, then contact Janice at DOD Copy Rick Finnigan on your Items off catalog: Buy American requirement Must meet demand of 5 states! Must be with in price range allowed in contract AT Siravo and David Lucht of DOD are here today Visit them on the exhibit floor! 15
16 Highlights of SY Processing Program Product availability: Goldkist & Asian Solutions Due to recall April 2016 & Waco, TX plant closing Slowly coming back on-line with products Makes perfect sense to not sweep carry over 12/31/17 Makes perfect sense to allow transfers of SY pounds during SY Once in SY 17-18, can not transfer pounds to another company different price per pound in each year Net Off Invoice (NOI Pilots) Schwan s, ConAgra, & Cains Going very well!!! Districts knowledge of Processing growing! Thank you Processing Enhancement Taskforce! 16
17 FOOD SAFETY AMBASSADOR PROGRAM Nuts and Bolts of School Nutrition Programs John Stalker Institute at Framingham State University October 2016
18 REQUEST FOR MATERIALS If you need food safety materials for an upcoming event, please contact us anytime at Susan Isberg Investigator Thomas Collaro Senior Investigator USDA/FSIS/OIEA/CID USDA/FSIS/OIEA/CID Northeast Region Waltham, MA
19 January Jan/Feb March April & Adjustments during year Quarterly April - January Quarterly July - April August August - June August - June August - June
20 SY Food Ordering Entitlement DOD Fresh Brown Box Processing 20
21 What is Entitlement? An asset from USDA to supplement a School District s Food Costs. A bank account or gift card that a District draws upon. Does not cover 100% of a District s Total Food Costs. 21
22 Entitlement Formula Reimbursable lunches served x USDA Foods Assistance Rate = Entitlement Value of Foods USDA Food Assistance Rate SY is.23 Established July of each year No ala carte, breakfast, snacks, at risk dinners, etc. Can use food but not part of entitlement formula 22
23 Where do I find my Entitlement? Security Portal! Sponsor Entitlement Summary Monthly Offer Sheet Summary posted at top of offer sheet Surveys for SY ordering Estimated Entitlement provided 23
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25 Where to Spend Entitlement Brown Box aka Monthly Offer Department of Defense (DoD) Fresh Program Estimated Diversion or Processing Bottom line: spread on what increase participation and Smiles 25
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28 SY food ordering decisions: 1) How much commit to DOD 2) Will I process or not? 1) Storage capacity, equipment, staff skills, student preference 1) If yes: 1) Menu high volume items & end products to use in multiple ways 1) Processor Packets on Security Portal including calculator 2) Commercial bid includes USDA Foods items & volume anticipated 3) Save & Submit Diversion Survey on Security Portal 4) Verify and track usage: K-12 or Processor Link 5) Notify Processor of chosen distributor 6) Buy off Commercial Bid directly from distributor 3) Brown Box Survey 28
29 Forecasting = Planning! Integrate and Plan All Sources Commercial food purchases USDA Foods Processors Direct Ship (brown box) DoD Other Farm to School Local grants 29
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31 DOD Fresh SY Department of Defense (DOD) procures vendor, not DESE nor USDA AT Siravo vendor in RI Staff are here today! DOD manages contract David Lucht, Produce Specialist wants to hear from you! Visit him at the show today! Vendor procures product including storage and transportation Cost of product can be higher Same delivery charge N. Adams to Provincetown Fresh Produce only American Grown 31 Current contract expires May 2016 Very valid reason to sweep 4/30/2107!
32 DOD Fresh SY SY continue same parameters: $15,000 Entitlement Commit up to 20% Delivery to 1 location Because we do not know who the new vendor is!!! Weekly deliveries Must receipt delivered order New feature 4/1/2017: orders not receipted Actual Sign for DOD is separate from entering amount on Brown Box Survey Brown Box Survey amount is for budgeting only! An is sent to only those who qualify once Actual Entitlement is known ( After July). 32
33 DOD Fresh SY What we do know about next 5 year contract: MA as its own state $225 minimum per drop, not per order District orders $225 with 3 stops, pays $675 total Posting Mid February on DOD site Know of Potential vendor? Contact info to Marion Browning 33
34 Brown Box Products Brown Box: USDA procures product State procures storage State or District procures transportation District pays delivery cost State contract District contract what is in writing to protect district from loss of Federal asset? - Other provisions/requirements? 34
35 Brown Box Products SY New Products: Pollock fish stick, 8/5 lb or 4/10 lb bags- deep skin Pollock block cut in a way to remove dark fat line gives a white, flaky interior. Whole grain-rich breading. IQF frozen Diced butternut squash, 6/5 lb bags- IQF. ¾ inch dice pieces. Product Changes: Strawberries, Whole Unsweetened, Frozen (IQF)- case size from a 30 pound container to 6/5 pound packages. (was ) IQF sliced strawberries- 6/5 lb- IQF sliced. Does not contain added sweetener. (was ) 35
36 Brown Box Products SY Deleted Products add to commercial bid: CARROTS CAN-6/ PEAS CAN-6/ TOMATO PASTE CAN-6/ BEANS REFRIED CAN-6/ BEANS GREAT NORTHERN CAN-6/ PEANUT BUTTER SMOOTH JAR-6/5 LB OIL VEGETABLE BTL-6/1 GAL SPINACH CHOPPED FRZ IQF CTN-20 LBS CARROTS DICED FRZ CTN- 30 LBS Peanut Butter Individual Portion, Smooth 100/1.1oz 36
37 Brown Box Survey New web page! User Friendly! Products listed by food category (all poultry together) In testing now. Not Posted yet! Posting week of 2/20/17 Survey due: Monday, March 20, 2017 Found in Compliance Packet Food Distribution orders based on your surveys be mindful of what you order! 37
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42 EEEn Entering DOD value here is not signing up. It is just for your budgeting purposes 42
43 Processing Program SY Why Change distribution system? District s Inventory control Weekly delivery from Commercial Distributor District s responsibility to bid for Processed Products Add products to your Commercial Bid Potential for better pricing District is buying commercial product already Cheese, Peanut Butter & Oil already through distributors 43
44 What is your capacity for storage???? 44
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46 Processing Program SY Processing Procurement USDA buys raw bulk product (Diversion Survey) District buys end product (From Commercial Distributor(s) State approves Processors and Products selling in MA (Processor Packets) State does not procure nor bid any end products. Processor packets are an indication of highest pricing, not a bid. 46
47 Processing Program SY Processing Procurement Storage and Transportation State contracted warehouse & transportation No longer! Now procure from Distributor Separate charge? Include in Distributor Mark up as part of case price? Include products on Commercial bid Tells distributor what you will buy Companies will not send product to the state warehouse, product sent to your distributor(s) of choice. No More SPL tickets on the Security Portal as you will be ordering product directly from distributor. 47
48 Security Portal Resource Processed Prod Receipts & Supp Orders 48
49 49
50 Pass Thru Values (PTV) or how do you not get charged for the raw bulk product USDA already paid for??? (receive Donated Food Value) Net Off Invoice Fee for Service through Distributor Rebate Note: Diversion Survey includes who does which PTV 50
51 Rebate: District pays full commercial price & submits for rebate Time consuming Late submissions Tracking check Pounds do not draw down until check sent Still available for secondary distributor 51
52 Net Off Invoice (NOI): Rebate without the wait! District procures commercial bid price from distributor Designate primary distributor & purchase from primary Distributor Invoice includes: Commercial Price Credit for Donated Food Value District pays Net Price After sale to district, distributor submits to company for value of Donated Foods (ie rebate) 52
53 Net Off Invoice (NOI): Available in SY16-17 for Oil & 2 cheese companies: Cains, Schwan s and ConAgra SY available for: Most Cheese Companies Chicken, Turkey, Eggs, Fish, Peanut Butter & Oil Not available for Beef & Pork 53
54 Fee-for-Service Beef and Pork and 1 or 2 cheese companies Represents processor s cost of ingredients and other costs incurred in the conversion of the donated food into the end product (Processing Fee) Need to know who bills for what???????: Company for product /Distributor for delivery Company bills for product & delivery Distributor bills for product & delivery Inventory reduction occurs upon billing RA or DA
55 Fee for Service through Distributor ( FFS) Not Substitutable! Microbiological testing Distributor carries 2 SKUs Commercial Beef & Pork: Commodity Can t sell to other markets! Monthly Shipments to Distributor and District Company bills Processing Fee, Distributor bills delivery Still need to complete order forms in May/June Helps company plan production & meeting minimums to ship Distributor brings in specifically for you so take it!! Distributor concerns getting stuck with product, if stuck, 55
56 Processing Program SY Let s look at Processor Packets! 56
57 Processing Program SY Tracking Pounds No matter the Pass thru Value When you buy, distributor reports sale to company. Company reports monthly to state. District needs to verify invoices: You buy 10 cases, distributor reports sale of 5 cases your pounds are not drawn down. You buy 10 cases, distributor reports sale of 15 cases pounds are overdrawn! Distributor gets Donated Food Value for 15 cases. District A buys 10 cases, distributor reports as sale to District B. District buys product with 5 pounds of donated food, distributor reports sale of different product with 10 pounds of donated food. K-12 Services & Processor Link include Sales Verification State will also ask periodically for verification 57
58 Inventory Management at Processors Tracking Your Diversion Pounds K-12 Services Linda, Asian Solutions, Bongards, Cains, ConAgra, ES Foods, Giorgio, Highliner, Jennie-O, JTM, Maid-Rite, Michael Foods, Tyson, Processor Link Advance Pierre, Cargill, Goldkist/Pilgrims Pride, Integrated Food, Land O Lakes,, Rich Products, Schwan s, Tasty Brands, Broker/Company Channel Fish, Nardone Bros, Original Pizza, Preferred Meals, S.A.Piazza, Sal s Find out about your pounds before placing a commercial order! Use your pounds before buying commercially. Check on your Diverted pounds usage before diverting again! 58
59 Processing Program SY Carry Over Policy Use by 12/31 of next school year. You send it, now spend it!. Use it or Lose it!. Goldkist & Asian Solutions exceptions. Transfers State must approve all transfers. Can only transfer pounds in year first bought. 59
60 SY food ordering decisions: 1) How much commit to DOD 2) Will I process or not? 1) Storage capacity, equipment, staff skills, student preference 1) If yes: 1) Menu high volume items & end products to use in multiple ways 1) Processor Packets on Security Portal including calculator 2) Commercial bid includes USDA Foods items & volume anticipated 3) Save & Submit Diversion Survey on Security Portal 4) Verify and track usage: K-12 or Processor Link 5) Notify Processor of chosen distributor 6) Buy off Commercial Bid directly from distributor 3) Brown Box Survey 60
61 Questions & Thank you 61
62 Webinars on USDA Foods SY Food Ordering Entitlement, Brown Box Survey and Department of Defense (DOD) Fresh Produce What's it all about? Tuesday, February 7, 2017: 2:30pm 4pm Tuesday, February 21, 2017: 9am 10:30am Wednesday, March 1, 2017: 9:30am 11am. Understanding Important Changes to the Processing Program for SY Wednesday, February 8, 2017: 2:30pm 4pm Thursday, February 23, 2017: 9am 10:30am Thursday, March 2, 2017: 9:30am 11am 62
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