USDA Foods 101

1. USDA Foods 101 Food Distribution Program

2. Module Overview USDA Food Program Explanation USDA Food Types/Groups Commodity Processing Regular USDA Foods Department of Defense Food Programs TX-UNPS USDA Food Delivery, Receiving, Handling, Storing Summary

3. Content Overview • USDA Food Program Explanation • Definition • Purpose • Eligibility Calculation • Entitlement

4. USDA FDP: Definition USDA Foods* are foods purchased by the United States Department of Agriculture and donated to Contracting Entities (CEs)for use in their food service operation. *formerly known as commodities

5. USDA FDP: Purpose The purpose of USDA Foods is to support agriculture markets and to provide nutritious, USDA-purchased food to applicable CEs (e.g. public schools, private schools and residential child care institutions).

6. USDA FDP: Eligibility All CEs participating in the National School Lunch Program (NSLP) are eligible to receive USDA donated commodities through the Food Distribution Program (FDP).

7. USDA FDP: Entitlement Calculation Example total meals served $1000.00 X X commodity rate of assistance $0.24 cents = = $240.00 estimated entitlement NOTE: TDA posts the commodity rate of assistance on the FDP Message Board.

8. Content Overview • USDA Food Types/Groups • Entitlement Foods • Bonus Foods • Food Groups

9. USDA FDP: Food Types Entitlement Foods Bonus Foods NOTE: Bonus foods do not use entitlement dollars.

10. USDA FDP: Food Groups meat poultry fruit grain, oil, peanuts dairy vegetables

11. Content Overview • USDA Commodity Processing • Definition • Benefits Regular USDA Foods

12. USDA FDP: Commodity Processing Definition Commodity processing = USDA foods sent for further processing Commodity processing makes efficient use of donated foods by converting items into more convenient, ready-to-use forms. For example, strips nuggets fajita whole raw chicken Note: USDA Foods sent for further processing are determined by applicable procurement procedures.

13. USDA FDP: Commodity Processing Benefits makes the most efficient use of donated food converts donated foods into more convenient and usable forms increases lunch participation, which increases entitlement dollars results in products with a child nutrition (CN) label BENEFITS increases food safety decreases food service labor

14. USDA FDP: Regular USDA Foods Some USDA Foods are not sent for further processing, but are received by the CE to prepare on site. Example foods not sent for further processing include: • ground beef • cut-up chicken • breaded chicken • canned fruits and vegetables • flour

15. Content Overview • USDA/Department of Defense Food Programs • DoD Fresh Program • DoD Farm to School Program • DoD Farm to School Foods

16. USDA FDP: DoD Fresh Program USDA has a partnership with the U.S. Department of Defense (DoD) to purchase US-grownfresh fruit and vegetables for CEs participating in the National School Lunch Program (NSLP). This program allows participants to use a portion of their entitlement to purchase fresh produce from an assigned vendor. CEs orders the produce through the DoD automated system called FFAVORS.

17. USDA FDP: USDA/DoD Farm to School Program The USDA/DoD Farm to School Program allows participants to use a portion of their entitlement to request fresh, locally grown produce. Requests coincide with the regular delivery route schedule from a CE’scontracted warehouse. Produce is delivered from the farmer to the contracted warehouse, then to the CE. Requests are entered into the Texas Unified Nutrition Program System (TX-UNPS).

18. USDA FDP: DoD Farm to School Program Foods DoD Farm to School foods include TEXAS grown! oranges apples watermelon grapefruit red potatoes

19. Content Overview • TX-UNPS • Access • Terminology • FDP Module • Annual Survey • Farm to School Survey • Processing Survey • TX-UNPS Reports

20. USDA FDP: TX-UNPS TX-UNPS • Tracks USDA Food entitlement, requests, allocations, reports, and more • Provides online capability for requesting USDA Food deliveries from contracted warehouse Note: USDA Foods messages are posted on the FDP Message Board.

21. USDA FDP: TX-UNPS Access • To access TX-UNPS: • download FND Form 101 Certificate of Authority • fax to TDA User ID and password will be emailed separately within 5 days of receiving the completed form. DO NOT SHARE LOGIN or PASSWORD Note: TX-UNPS = Texas Unified Nutrition Program System

22. USDA FDP: TX-UNPS FDP Module Terminology Annual Survey list of regular USDA items that may be purchased by USDA CE contracting entity CE Delivery Order Form online process to request allocated USDA Food items for delivery from contracted warehouse annual questions to the CE regarding program participation for the program year CE Information Update Commodity Allocations USDA Foods requested by the CE and then allocated through TX-UNPS to the CE for delivery by the contracted warehouse

23. USDA FDP: TX-UNPS FDP Module Terminology Entitlement amount of funds available to the CE to spend on USDA Foods Farm to School Survey list of Texas-grown items available through the USDA/DoD Farm to School program; uses USDA entitlement FDP Food Distribution Program FDP Contract Packet an annual FDP contract that must be completed and submitted in TX-UNPS before a CE can participate in the FDP for the program year Processing Survey list of USDA bulk items for further processing; co-op members submit information to co-op coordinator for TX-UNPS data entry Submitted clicking a button in TX-UNPS to send information to TDA

24. USDA FDP: TX-UNPS FDP Module To access an FDP Module, click on the appropriate button on the TX-UNPS screen. Note: Some CE users with access to only the FDP module will bypass this screen.

25. USDA FDP: TX-UNPS Annual Survey In the Annual Survey, a CE enters a requested quantity for USDA Food items the CE wishes to receive should the items become available from USDA. SAMPLE Check here for special instructions from TDA. Insert requested quantity.

26. USDA FDP: TX-UNPS Annual Survey: Entitlement • Beginning entitlementminus • Commodity Processing Reserved (if any) minus • DoD fresh (if any)minus • Requests on other surveys (Annual and FtS Surveys) • = • Available • Entitlement SAMPLE Available Entitlement is uncommitted. Entitlement Used is equal to the value of requests spent on this survey. Entitlement Usedcannot be greater than Available Entitlement.

27. USDA FDP: TX-UNPS Farm to School Survey • A CE completes a Farm to School Survey if the CE is participating in the USDA/Department of Defense Farm to School (FTS) Program. • Available weeks display on the survey based on the CE’sassigned delivery route schedule. • For example: • if a CE is assigned a weekly route schedule, the CE can request FTS items on the survey for each available week. • if a CE is assigned a monthly route schedule, the available items will display monthly and the date will coincide with the monthly route schedule.

28. USDA FDP: TX-UNPS FTS Survey Read the special instructions. Delivery Week displays items availablefor each month.

29. USDA FDP: TX-UNPS FTS Survey The Requested Unit text box is active only for the week that coincides with the CE’s delivery route schedule. If Delivery Route is weekly, the Requested Unittext box is active for all weeks. If the delivery route is monthly, only one week per month is active.

30. USDA FDP: TX-UNPS FTS Survey: Entitlement Available Entitlement = uncommitted Entitlement Used = amount used on this survey. Entitlement Used cannot exceed Available Entitlement.

31. USDA FDP: TX-UNPS Processing Survey • A Processing Survey is completed by the CE’s co-op coordinator. • Exception: CEs that process on their own complete the processing survey.

32. USDA FDP: TX-UNPS Reports Weekly Commodity Bulletin • Includes CE and contracted warehouse contact Information • Entitlement Account Status • Weekly Allocation Data • Free and Private Storage Information • Bulletins are real time and are not saved in TX-UNPS. Note: To save a bulletin, export to Excel or PDF.

33. USDA FDP: TX-UNPS Reports Note: To save a statement, export to Excel or PDF. Statement of Commodities Allocated • Based on search criteria, the statement displays the search dates, CE name, program year, and program name • Displays a list of Entitlement and Bonus Foods allocated, description name, units allocated and the value • Exception:Processed commodities are valued at zero because the value is part of the processing reserved amount deducted at the beginning of the school year.

34. USDA FDP: TX-UNPS Reports Note: To save a statement, export to Excel or PDF. Statement of Commodities Shipped • Based on search criteria, displays the search dates, CE name, program year, and program name • Displays a list of Bonus and Entitlement food shipped. • Displays description, quantity and value. • Exceptions: • End Product code values are displayed as $0.00. • For audit purposes, processing value can be obtained from the Weekly Commodity Bulletin, Processing Used.

35. Content Overview • USDA Foods Delivery, Receiving, Handling, Storing • Delivery Fees • CE Delivery Order Form • Fuel Surcharge • 100-Mile Rule • Monthly Delivery • Accepting Delivery • Handling and Storage • Reminders

36. USDA FDP: Delivery Fees • CEs are charged TDA-approved delivery fees by the contracted warehouse. • Fees are updated annually each June 1 based on the Consumer Price Index (CPI). • CEs arrange delivery schedules with the warehouse prior to the start of the school year. • CEs request USDA Food for delivery via the TX-UNPS CE Delivery Order Form.

37. USDA FDP: CEDelivery Order Form This form is used to request USDA Food for delivery from a contracted warehouse. • Important Notes • Delivery Date=next available delivery date; order form must be completed 48 business hours prior to delivery date shown on form • CE may modify form as long as status of form = Open • CE may complete a form for afuturedelivery date Contracting Entities > DeliveryOrders-CE > Open Orders

38. USDA FDP: CEDelivery Order Form:Available & Surplus Column Available Current Allocation = product allocated to CE Available Surplus Inventory = extra inventory available to CEs on a first come, first serve basis

39. USDA FDP: CEDelivery Order Form: Entitlement Entitlement Section: must have available entitlement when requesting units in the surplus column

40. USDA FDP: Fuel Surcharge • Implemented in SY 2012 • All contractors may charge a fuel surcharge for delivery of USDA Foods. • The fuel surcharge appears as a separate line item on the invoice. • Fuel surcharges fluctuate based on fuel prices. TDA updates the TX-UNPS FDP Message Board with current fuel surcharge rates.

41. USDA FDP: 100-Mile Rule According to the RFP for commercial distribution, the 100-mile rule is applied using an ideal city in each of the seven geographic regions. These ideal cities are: Region 1: Dallas Region 2: Longview Region 3: Houston Region 4: San Antonio Region 5: McAllen Region 6: Lubbock Region 7: El Paso

42. USDA FDP: 100-Mile Rule CEs are categorized into two groups: 100 miles or less from an ideal city More than 100 miles from an ideal city

43. USDA FDP: Monthly Delivery First delivery within a month is based on the actual quantity of cases delivered to the CE. No minimum is required. Example: 10 • 10 cases of food delivered to a CE site x $3.00 + • delivery cost per case = $3.00 current rate • fuel surcharge added per current rate $30.00 plus fuel surcharge amount • total invoice to CE site

44. USDA FDP: Monthly Delivery Subsequent deliveries within the first month include the following rules: Less than 100 miles from an ideal city More than 100 miles from an ideal city • For a second delivery within a month from a contracted warehouse, the CE will be charged a minimum fee for 20 cases. • For a second delivery within a month from a contracted warehouse, the CE will be charged a minimum fee for 40 cases. • For more than 20 cases, the CE will be charged the actual cost. • For more than 40 cases, the CE will be charged the actual cost.

45. USDA FDP: Accepting Delivery • make sure the items delivered were ordered on the TX-UNPS CE Delivery Order Form Before signing receiving documents, the person who receives the shipment should: • count the cases received • check for damage • note shortages/damages on the bill of lading

46. USDA FDP: Handling and Storing USDA Foods • handling and storing USDA Foods properly • receiving and using USDA Foods before they expire Schools are expected to prevent loss by:

47. USDA FDP: Handling and Storing USDA Foods Storage is free for the first 45 days after a new allocation. Private storage fees begin on the 46th day after an allocation.

48. USDA FDP: Handling and Storing USDA Foods Contracted warehouses bid different rates for each storage category. The categories are: • dry • chilled • frozen

49. USDA FDP: Handling and Storing USDA Foods USDA regulations prohibit school inventories of donated food in excess of 6 months. USDA Foods stored longer than 6 months are listed as Long Term Storage on the Weekly Commodity Bulletins. Private storage rates double after 6 months.

50. USDA FDP: Reminders Be aware of the program years when navigating in TX-UNPS! • New program year opens in TX-UNPS January • An FDP Contract Packet must be submitted in TX-UNPS before a CE can access an Annual Survey.