Marion Browning Food Distribution Coordinator An ... · 8/4/2017 Massachusetts Department of Elementary and Secondary Education 1 Massachusetts Department of Elementary and Secondary

8/4/2017

Massachusetts Department of Elementary and Secondary Education 1

Massachusetts Department of Elementary and Secondary Education

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Nuts and Bolts August 3, 2017 Marion Browning Food Distribution Coordinator

An Introduction to USDA Foods

8/4/2017


Non-Discrimination Statement


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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) 877-8339. 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: http://www.ascr.usda.gov/complaint_filing_cust.html, 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) 632-9992. 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. 20250-9410; (2) fax: (202) 690-7442; or (3) email: [email protected]. This institution is an equal opportunity provider.

ESE Food Distribution Staff

Belinda Wilson - Diversion [email protected] 781-338-6478

Ahmed Bilimoria – Brown Box [email protected] 781-338-6506

Rick Finnigan – DoD Fresh [email protected] 781-338-6486

Marion Browning [email protected] 781-338-6460

Mike Murphy [email protected] 781-338-6542 (Variety)

Donna Taylor [email protected] 781-338-6320 (TEFAP, CSFP)

Rob Leshin [email protected] 781-338-6479


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http://www.ocio.usda.gov/sites/default/files/docs/2012/Complain_combined_6_8_12.pdf

http://www.ascr.usda.gov/complaint_filing_cust.html

mailto:[email protected]








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Learning Objectives:

Maximize utilization of USDA Foods in school lunch menus.

Understand ordering processes for USDA Foods.

Identify resources on the Security Portal


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What is your attitude about USDA Foods?


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Most think we give food…


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…when we really give money


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to spend on food!

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But let’s talk about the food for a minute…

High Quality

American Grown

Dry, Frozen, Refrigerated, Fresh Produce

Menu driven – you tell us what is needed

You can control what and when it arrives at your

district

Only order what you will use

It is NOT free food!


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Now let’s talk about the money…


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…aka Entitlement

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What is Entitlement ?

A financial asset from USDA to supplement a School District’s Food Costs.

Only a true asset to district if utilized by district!!!!

Does not cover 100% of a District’s Total Food Costs.

A “bank account” or “gift card” that a District draws upon.


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Entitlement Formula

Reimbursable lunches served

x

USDA Foods Assistance Rate

=

Entitlement Value of Foods

USDA Food Assistance Rate SY 17-18 is .2325

No ala carte, breakfast, snacks, at risk dinners, etc. Can use food but not part of entitlement formula


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8/4/2017


Meal Counts Stay Same

School Year Number of

Reimbursable

Lunches

Varying USDA

Foods

Assistance Rate

Entitlement

Value

2014-2015 50,000 .2475 50,000 x .2475=

12,375

2015-2016 50,000 .2375 50,000 x .2375=

11,875

2016-2017 50,000 .23 50,000 x .23 =

11,500


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Meal Counts Increase School Year Number of

Reimbursable

Lunches

USDA Foods

Assistance Rate

Entitlement Value

2014-2015 45,000 .2475 45,000x .2475 =

11,137.50

2015-2016 50,000 .2375 50,000 x .2375 =

11,875

2016-2017 55,000 .23 55,000 x .23 =

12,560


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3 Options to Spend Entitlement

“Brown Box” aka “Monthly Offer Sheet”

Department of Defense (DoD) Fresh Program

Diversion or Processing (a discount on commercial purchases)

Bottom line: spread on what increases participation and Smiles


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Brown Box

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Massachusetts Breakdown of Purchases SY 2017-2018


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64%

15%

16%

5%

Brown Box 64%

Processing 15%

DOD Fresh 16%

5% left to spend

Total Estimated Entitlement: $28,910,870


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Brown Box

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Brown Box Analysis

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Associated Costs with USDA Foods


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January Jan/Feb March April & Adjustments during year

Quarterly April - January

Quarterly July - April

August - March August - June August - June August - June


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Brown Box

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Brown Box Products SY 17-18 Deleted Products – add to commercial bid:

100309 CARROTS CAN-6/10

100315 PEAS CAN-6/10

100327 TOMATO PASTE CAN-6/10

100362 BEANS REFRIED CAN-6/10

100373 BEANS GREAT NORTHERN CAN-6/10

100396 PEANUT BUTTER SMOOTH JAR-6/5 LB

100439 OIL VEGETABLE BTL-6/1 GAL

110425 SPINACH CHOPPED FRZ IQF CTN-20 LBS

110480 CARROTS DICED FRZ CTN- 30 LBS 110710

Peanut Butter Individual Portion, Smooth 100/1.1oz


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8/4/2017


Brown Box Products SY 17-18 New Products:

110851- 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.

110861- Diced butternut squash, 6/5 lb bags- IQF. ¾ inch dice pieces.

Product Changes: Will happen mid-year SY 17- 18 110846- Strawberries, Whole Unsweetened, Frozen

(IQF)- case size from a 30 pound container to 6/5 pound packages. (was 100253)

110860- IQF sliced strawberries- 6/5 lb- IQF sliced. Does not contain added sweetener. (was 100254)


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Brown Box Procurement

USDA procures product

Meets Buy American Requirement of NSLP Regs.

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? Massachusetts Department of Elementary and Secondary Education

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8/4/2017


Processing Program SY 17-18 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


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What is your capacity for storage????

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Processed Product at Distributors No processed product shipping in to state warehouses

effective July 1, 2017.

Award bid to distributor

Notify Distributor, Processor, Broker, & State who your distributor is!

Notify Distributor, Processor & Broker of your monthly orders What product Quantity needed EMAIL so it is in writing! Will help you later on!

Know Distributor codes – Distributor Order Guide?

Track usage in K12 or Processor Link Establish account! Update your contact info Update your distributor


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Processing Procurement USDA buys raw bulk product

(Diversion Survey)

District buys end product

(From Commercial Distributor(s))

State approves Processors & 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.


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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

Note: Diversion Survey includes who does which PTV


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Fee for Service through Distributor ( FFS)

Processor bills you the processing fee

(cost to make and ship product to distributor)

Distributor bills you for storage and delivery

(distributor mark up)

Applies to:

Beef

Pork

Small Bird Chicken with Goldkist

Cheese companies:

2 distribute/deliver product directly to you

Others are processor/distributor business decisions


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8/4/2017


Fee for Service through Distributor ( FFS)

Beef and Pork:

Not Substitutable Beef & Pork

Microbiological testing

Distributor carries 2 SKUs

Commercial

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

Company production plan & meeting minimums to ship

Distributor brings in specifically for you – so take it!!

Distributor concerns: stuck with product

if stuck, you pay higher price next year!


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Inventory Management at Processors

Tracking Your Diversion Pounds

K-12 Services http://www.k12foodservice.com/ Linda, 301-251-5515 Asian Solutions, Cains, ConAgra, ES Foods, Giorgio, Highliner, Jennie-O,

JTM, JM Smucker, Maid-Rite, Michael Foods, Tyson, UNO There is no charge for you to have an account

Processor Link https://www.processorlink.com/Default.aspx [email protected] 512-343-0400 Advance Pierre, Bongards, Cargill, Channel Fish, Giorgio, Goldkist/Pilgrims

Pride, Integrated Food, Land O’Lakes, Rich Products, S. A. Piazza, Schwan’s, Tasty Brands, Trident Seafoods Corp.

There is no charge for you to have an account

Broker/Company Nardone Bros, Original Pizza, Sal’s


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http://www.k12foodservice.com/

https://www.processorlink.com/Default.aspx


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Processing Program SY 17-18 Carry Over Policy

Use by 12/31 of next school year.

“You send it , now spend it!”.

“Use it or Lose it!”

Transfers

State must approve all transfers.

District can only transfer pounds in year first bought.


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DOD Fresh


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What are districts purchasing?


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Macintosh Apples from ME & MA

Zucchini and Yellow Squash from RI

Greens, Melons, Carrots, Broccoli from CA

Tomatoes, Peppers, Cabbage, Cucumbers, Watermelon from FL

Mushrooms from PA

Green Beans from OH

Pears, Apples, Onions from WA

Sweet Potatoes from NC

Onions & Potatoes from ID

DOD Fresh Produce Price Comparison

DoD Local Vendor Carrot snack bags $27.46 $29.33 Broccoli Florets 12# $22.75 $29.15 Red Peppers $1.39# $1.99# Cucumbers $19.19 $27.60 Strawberries Flat $20.14 $32.20 Note: DOD price includes Delivery No ESE Assessment Fee Applies


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8/4/2017


Procurement for USDA Foods

DOD Fresh

Department of Defense (DOD) procures vendor and manages contract

Vendor procures product including storage and transportation

Cost of “product” can be higher

Same delivery charge N. Adams to Provincetown

We notify when time to sign up

District orders in FFAVORS: 10/1/2017 to 4/30/2018


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DOD Fresh SY 17-18 – the next

5 year contract MA as its own state

$150 minimum per drop, not per order District orders $150 with 3 stops, pays $450 total

4.6% DOD Admin Fee is eliminated

Contract not awarded yet

Problems with delivery, quality, etc: Email David Lucht, Produce Specialist at DOD and copy Rick

Finnigan at ESE

Reporting Problems is not complaining!!!


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8/4/2017


Security Portal

USDA FOODS Orders Entitlement- Sponsor Entitlement Monthly offer sheet Entitlement Plan or What was already decided

last Spring Brown Box Survey Diversion Survey DOD Fresh Commit Form

Food Allocation Acceptance (Brown Box – Monthly Offer)

Delivery tools for Brown Box Products Order status Carrier Pick Up Report

Your spread sheet for carrier!?!?!?!? Export Monthly Offer Sheet

View Invoices (Assessment Fees)


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Security Portal

Document & Reference Library State contract Delivery rates Training

Diversion - Processor Packets Order form, nutritionals, Product Data Sheet –

pricing is indication, not bid!

Note: additional resources not on Sec Portal:

K-12 Services or Processor Link – tracking balances separate computer systems

Distributor’s ordering guide &/or on-line catalog – separate computer system

District Bid

DOD Fresh – FFAVORS, a separate computer system


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New Feature in Testing Now!


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Recall of Commercial Purchases & Processed Products through Distributors

Thank you!

&

Questions ? Massachusetts Department of Elementary and Secondary Education

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Documents

Marion Browning Food Distribution Coordinator An ... · 8/4/2017 Massachusetts Department of Elementary and Secondary Education 1 Massachusetts Department of Elementary and Secondary