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2017 National
Conference
D E N V E R , C O L O R A D O
A P R I L 2 3 - 2 6
W W W . C O M M O D I T Y F O O D S . O R G
It’s All in the Agreement!
“Nothing in life is to be feared. It is only to be understood.”
― Marie Curie
It’s All in the Agreement!
Mission:
• To discuss the various agreements involved in processing USDA Foods.
• Who are the players? – USDA, SDA, RA, Processors/Brokers and Distributors.
• ACDA Handbook: Processor Guidance for Further Processing of USDA Foods.
• Discussion of Proposed rule.
It’s All in the Agreement
Dawn Irvine Processing Specialist
Arizona Department of Education
What Agreements?
• NPA (National Processing Agreement)• Permanent agreement between USDA
and the Processor
• MPR’s (Monthly Performance Reports)
• SPA (State Participation Agreement)• Conveying State Specific Requirements
to Processors
It’s All in the Agreement
Lonnie Burt, MS, RD, CD-NHartford Public Schools
What Agreements?
• Agreement with State Agency
• RFP / Formal Bid Agreements with:
• Processors
• Distributors
• Vendors
What Should I Do Now?
• Communicate!!
• Know your menu
• Forecast
• Convey your needs to distributor, vendor, processors
It’s All in the Agreement
Jose Quinones, National School Business
Development, JTM
It’s All in the Agreement!
ACDA Handbook: Processor Guidance for
Further Processing of USDA Foods1. Overview
2. Roles & Responsibilities
3. Inventory Management
4. Value Pass Through Methods
5. Record Retention
6. Audit Requirement
7. Food Recalls
8. Acronyms
It’s All in the Agreement!
Want to process USDA Foods?
FNS requirement of a bond or letter of credit
Independent CPA audit requirement
RFP/Bid “Agreement” with RA
Distributor Agreements
It’s All in the Agreement!
Want to process USDA Foods?
Get to know your State DA
National Processing Agreement (NPA)
State Processing Agreement (SPA)
Monthly Performance Report (MPR)
Rules of processing/distribution in the state
Approved EPDS (End Product Data Schedule) and SEPDS
It’s All in the Agreement!
Bond or “letter of credit”
FNS requirement.
Protect the value of USDA Diverted for Processing prior of the first delivery of USDA Food raw material.
Food Inventory management – Excess Inventory.
It’s All in the Agreement!
RFP/Bid “Agreement with RA’s
Working on RFP/BidProcessor RespondIt’s awardedNow what? Communication ForecastingUSDA AllocationsDistributor Schedule
It’s All in the Agreement!
Distributor Agreements
Templates
Fee for Service Processor/Distributor Agreement
Net Off Invoice Processor/Distributor Agreement
Relationship with RA/Distributor
It’s All in the Agreement!
Thank you!
Jose R. Quinones
It’s All in the Agreement
Stephanie Ewing, RD, SNSGold Star Foods
Key Factors to Optimize USDA Foods
• Engage Distribution
• Ensure Distribution is Technologically Involved
• Manufacturer Commitment to Supply Chain
Entitlement Utilization
• Data Supports Increase Utilization of Entitlement
• Decreases Menu Costs
• Increases Flexibility for Menus
• Meets the needs of the District
www.facebook.com/commodityfoods.org
