Food Distribution Updates and Review Goals for USDA Foods - - PowerPoint PPT Presentation

Food Distribution Updates and Review

Presented by the New Jersey Department of Agriculture

• Manage

Entitlement Dollars for Maximum Use

• Track your

balances so Entitlement Funds are not wasted

Goals for USDA Foods Utilization

In This Training We Will Review

• 1. Commodity Acceptance Report
• 2. Commodity Selection Worksheet

Completion

• 3. Warehouse Allocation Worksheet
• 4. DOD Direct Delivery Produce Program
• 5. Commodity Diversion Calculator
• 6. USDA Foods Procurement
• 7. Effective Processed Commodity Usage
• 8. Foodservice Management Commodity

Crediting

• 9. LEA to LEA Vended Meal Contracts

Commodity Acceptance Report

• Comparison of Actual Usage to Amount Diverted on the

Commodity Selection Worksheet

• Available early August for the previous school year
• Can be used to determine the cents per meal USDA Foods

Credit that was received

Poor Use of Entitlement

Poor Use of Processed Commodities

Good Use of Processed Commodities

Good Use of Entitlement

Goals and Recommendations:

• GOAL: Use all or more than your

entitlement!!!

• Make a change to your diversions if

money was left on the table!

• Ask for more pounds if processed

commodity banks are low!!!!

• Consider the DOD Direct Delivery

Produce Program!!

Poor Use of Processed Commodities

HOW MUCH DOD PRODUCE COULD $22,030 BUY?

• 315 Cases of Individual Bags of Baby Carrots
• 280 Cases of Individual Bags of Sliced Apples
• 140 Cases of Lettuce/Carrots/Cabbage Salad Mix
• 70 Cases of Tomatoes (25#)
• 29 Cases of 113 Ct Oranges
• 22 Cases of Cucumbers (50#)

Poor Use of Entitlement

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HOW MUCH DOD PRODUCE COULD $49,140 BUY?

• 630 Cases of Individual Bags of Baby Carrots
• 560 Cases of Individual Bags of Sliced Apples
• 280 Cases of Lettuce/Carrots/Cabbage Salad Mix
• 140 Cases of Tomatoes (25#)
• 140 Cases of 113 Ct Oranges
• 22 Cases of Cucumbers (50#)
• 56 Cases of Clementines
• 42 Cases of Cucumbers (50#)
• 21 Cases of Seedless Watermelon (5 ct)
• 16 Cases of Diced Celery (20#)

HOW IS YOUR ENTITLEMENT AMOUNT DETERMINED?

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ENTITLEMENT

Entitlement = ADP x 180 School Days x $0.3125 Meal Rate

Ex: ADP: 1000 x 180 Days X $0.3125 Per Meal Rate = $56,250 Entitlement 2016-2017 CSW Form is based on your Average ADP from January 2015

• December 2015

Your school district entitlement is pre- populated at the top of the CSW form

HOW CAN YOU INCREASE YOUR ENTITLEMENT?

Increased Entitlement Dollars Increasing your ADP

What are Your Diversion Options?

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WAREHOUSE DOD DIRECT DELIVERY PRODUCE PROCESSED PRODUCTS

What Percent Should You Send to Warehouse and Processing?

• Need to determine what percent to send to warehouse

and what percent to send to processing

• Entitlement
• Warehouse %
• Processing %
• DOD Direct Delivery Produce is part of the Warehouse %

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Things to Consider When Making Decisions

Which Products Best Fit Your Menu Mix?

• Canned and Frozen Fruits and Vegetables, Cheese, Meats

Distributed through the Warehouse

• Fresh Fruits and Vegetables from the Warehouse or

Delivered Directly to Your School District

• Did You Use All Your Processing $$$ Last Year?
• Did You Run Out of Processing $$$ Last Year?

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CSW Form

• Entitlement
• Diversion Percentage

What Tools are Available to Make the Best Decisions?

• Warehouse Allocation

Worksheet

• Commodity Diversion

Calculator

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• Training Tool for the

Future Ordering Process

• Used to Determine

the Types & Amounts of Products Offered from the Warehouse

• Will Not Get Exactly

What You Requested

• Translates

Entitlement Dollars into Actual Products and Number of Cases

• Helpful Tool to

Decide the Percent to Divert to the Warehouse

• The Spreadsheet must

be Completed and Emailed to agnfood@ag.state.nj.us by the CSW form due date

• Mandatory to

Complete

Warehouse Allocation Worksheet

LOCATION OF WAREHOUSE ALLOCATION WORKSHEET

WAREHOUSE ALLOCATION WORKSHEET

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• Maximum Amount Allowed per Category
• Running Subtotal Shows Amount Already Spent
• Must Use All Dollars Diverted to the Warehouse
• Available to Spend Column should be Close to $0

Before Submitting

• Will Receive an Error Message if Group

Maximums are Exceeded or if More than the Dollars Diverted to the Warehouse are Spent

• Do not Submit with Error Messages or without

Spending All “Dollars Diverted to the Warehouse”

Helpful Hints:

New Warehouse Items for 2016-2017

• Tuna, Chunk Light, Canned
• Peanut Butter, Individual Portions
• High Protein Yogurt in Tubs, Plain or Yogurt
• High Protein Yogurt, 4 oz cups:
• Strawberry, Blueberry , Vanilla
• Dried Cranberries, Individual Portions
• Green, Red Pepper and Onion Blend, Frozen
• Crinkle Cut Sweet Potato Oven Fries

USDA Foods Preference Survey

• Survey Monkey Survey
• Listing of All USDA Foods available from

USDA

• Need to rank products that are most

desirable to you

• Will adjust Warehouse Allocation

Worksheet accordingly

• Survey will open the week of January 25th

and will close on February 5th

Direct Delivery of DOD Produce

WHAT IS DOD?

• DOD stands for the Department of Defense
• USDA Partners with DOD to Provide a Greater

Variety of Fresh Produce for Schools

• The Current DOD Vendor is Seashore Fruit and

Produce Company

DOD DIRECT DELIVERY PROGRAM

• 154 School Districts are currently participating
• School Districts determine the amount of

Entitlement to set aside for DOD produce

• School Districts have an account in the web based

FFAVORS system to select and order produce on a weekly basis

• No out of pocket expenses; funds are drawn down

from DOD Entitlement

• Produce is delivered weekly directly to the School

District.

• $150 minimum per delivery

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• Only one delivery site per school

district.

• DOD entitlement dollars are part of

your Warehouse Allocation Percentage selected on the CSW Worksheet.

• Will be charged a $2.00 per case

administrative fee if fees are reinstated

• Your effective ADP will be adjusted on

your monthly warehouse allocation

• Will need to receipt for product received
• Will not receive fresh produce as part of

the monthly warehouse allocation

POINTS TO CONSIDER

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DOD DIRECT DELIVERY PARTICIPANT TESTIMONIAL

DOD DIRECT DELIVERY

Benefits of DOD Direct Delivery

• Choice of over 70 different types of produce
• Direct delivery of produce on a weekly basis
• Opportunity to purchase locally grown product
• School District decides the amount of funds to spend
• n DOD fresh produce
• School District selects the products and amounts they

want to order weekly

• Excellent way to use entitlement dollars if entitlement

dollars were leftover last school year

• User friendly ordering system

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FFA FAVORS WEBSIT ITE FR FRESH-FRUITS-AND ND- VEGE GETAB ABLES-OR ORDER- REC ECEIPT-SYSTEM M (FF (FFAVORS)

http://www.fns.usda.gov/fdd/fresh

• fruits-and-vegetables-order-

receipt-system-ffavors

DOD DIRECT DELIVERY

How to Sign Up

• Complete application at the end of this training
• Turn in application at the Registration Desk
• Certifier, Submitter or Foodservice Director must be in

attendance at this conference and must sign the application. DOD Direct Delivery Program Acceptance

• Will be notified by February 3, 2016 if your application is

approved and will need to confirm interest in participation.

• Will receive a specialized Warehouse Allocation

Worksheet for completion that includes the DOD direct delivery produce

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APPLICATION FORM

Application for Direct Delivery of Department of Defense (DOD) Produce for the 2015-2016 School Year

• 1. I would like to receive DOD produce delivered directly to my school district instead of as

• 2. I understand that I will need to select the amount of my entitlement dollars to divert for

• 3. I understand that I will need to go into the USDA website (FFAVORS) to enter my

• 4. I understand that I can only receive my delivery at one site in my school district.

• 5. I understand that there is a $150 minimum per delivery. Yes___ No___
• 6. I understand that any dollars allocated for DOD produce must be spent or I will lose

• 7. I will notify the NJDA Food Distribution Unit within 24 hours of receiving the DOD

• rdered were not received. Yes___ No___
• 8. I will be charged a $2 administrative fee per case delivered. Yes___ No___

Where are we in the completion of the CSW?

• Entitlement was pre-populated in the form
• Chose a percent to divert to processing and

warehouse

• If 100% warehouse:
• Complete Memorandum of Understanding
• Complete & Email Warehouse Allocation

Worksheet

• Submit CSW Form via SNEARS
• If Diverting to Processing:
• Continue to Processing Portion of the Form

How to Spend Processing Dollars?

Total Amount to Spend was Already Decided (Dollars Diverted to Processing) Decide % to Divert for Each Raw Commodity Decide How Much to Send to Each Processor

Things to Consider when Choosing a Processor

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• Distribution – Does

Your Current Distributor Stock Specific Brands & Products

• Focus on Current

Commercial Products Being Used (Consider it like receiving a discount)

• Use Commodity

Diversion Calculator to Determine the Amount to Send To Each Raw Commodity & Processor

Things to Consider when Choosing a Processor:

Commodity Diversion Calculator

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Review of CSW Process

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• Need to Divert 100% of “Dollars Diverted to

Processing” to Raw Commodities

• Group Maximums
• Processor Selection:
• Choose Processor from “Processor List”

drop down list

• Hit Add Button to Add Processor
• Can Add More Than One Processor
• Total Dollars Allocated to the Raw Commodity

Must Match the Total Dollars Allocated to the Processor(s)

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CSW Form

• Processing
• CSW Reference Form
• CSW Form Instructions

Completion of CSW Process

• Complete Memorandum of Understanding if

Selected 100% Processing

• Submit Data to NJDA
• Complete Warehouse Allocation Spreadsheet and

Email to agnfood@ag.state.nj.us if any percentage was allocated to the warehouse

• Complete and mail the FSMC Authorization

Letter

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FSMC Authorization Letter

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 Available on Submission Confirmation Screen

• f CSW

FSMC Authorization Letter

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 Must Be Mailed to NJDA by the CSW Form Due Date  Must be Submitted by All RAs with a Foodservice Management Company  Must be Printed on School District Letterhead and Have Original Signatures

Commodity Selection Worksheet Completion

• Commodity

Selection Worksheet will Open on SNEARS:

• February 9,

2016

Tools to Prepare

• Commodity

Diversion Calculator

• Warehouse

Allocation Worksheet

Due Dates for CSW Forms

• CSW SHUT Down MARCH 18
• Lose Entitlement $$$ After

March 18th !!!! Due: March 4, 2016

Atlantic, Burlington, Cape May, Cumberland, Gloucester, Salem & Ocean

Due: March 11, 2016

Camden, Hunterdon, Mercer, Middlesex, Monmouth, Somerset, & Union

Due: March 18, 2016

Bergen, Essex, Hudson, Morris, Passaic, Sussex, & Warren

• Processor Allocation Sheets

Posted on SNEARS on April 1

• RAs Review Allocations
• Corrections Must Be Made by

April 8th by contacting NJDA

• No Changes Made After April 8th

RA Review of Processor Allocations

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Filling RA Banks & Carryover

• Processors Use Allocation Sheets to Load Schools’

Banks into K12 & Processor Link

• Banks Only Contain Amount Diverted for Current School

Year

• Leftover Balances From Previous Year are Not Carried

Over

• Remember --- Use It or Lose It!!!!

Distributors

• Will be Assigned the Same Distributor and

Pass Thru Method Used in the Past

• Contact the Processor to Make a Change or

to Setup a New Distributor and/or Pass Thru Method

• Must Confirm that a Distributor is Listed in

K12 & Processor Link

Procurement of USDA Foods

• Question: Does completion of the Commodity

Selection Worksheet (CSW) mean that a proper procurement was completed?

• Answer: No, the CSW does not replace the

requirement for School Districts to competitively procure processed foods.

PROCUREMENT QUESTION

• What is the Purpose of the Commodity Selection

Worksheet for Processed Products?

• Identifies the processors that are approved to

process commodities in New Jersey

• Notifies the NJ Department of Agriculture of the

amount of commodities to send to each processor so that commodity credits are available for specific School Districts

PURPOSE OF THE CSW

• The Commodity Selection Worksheet Does

Not:

• Specify the types and amounts of end

products that will be purchased

• Provide pricing for the processed end

products

• Provide pricing for distribution of the

processed end products

• Provide pricing for trucking services from the

Warehouse

WHAT IS MISSING FROM THE CSW FOR PROPER PROCUREMENT?

Importance of a Proper Procurement

The cost of products and services will be lower in price

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FIRST PROCUREMENT STEP: FORECASTING

A School District must plan and evaluate: –Food service operations –Food service needs

EVALUATE YOUR RESOURCES:

Determine Your Needs

• Review your Menu for Food Items Needed
• Count the number of times an item is served

– Per month - gives vendors an idea of monthly use – Total quantity over a period of time

• Multiply the number of times served by the

ADP

– Per month provides vendors usage information – Total estimated quantities provides information for bid evaluation purposes

Writing Specifications

• Specifications must be clear and should

include:

• Specific requirements of finished end products
• Nutritional contribution provided by the end product

and applicable labeling requirements

• Estimated quantities
• Remember: If the specifications are not clear,

the proposals may not meet the School District’s needs!

SECOND PROCUREMENT STEP: SPECIFICATIONS

Other Items to Include in Specifications

• Factors to consider:

– Grading – Weight – Quantity – Form of food -- fresh, frozen, canned – Cannot specify brand name, must be “brand name or equal”

Requirements Unique to USDA Foods

• Preferred value pass through method

Fee for Service NOI Rebates

• Distribution agreements and methods

Processor ships to the School District and bills the School District directly School District receives product from a distributor and is billed by either the processor or the distributor

• If USDA Foods are being received

from a distributor then the RA must procure product from the processor and also procure the services of a distributor and/or trucker

DISTRIBUTION

Procurement of Commercial Products and Processed End Products

• Consider Combining Processed End

Product Procurement with Commercial Product Procurement

• Are School Districts required to put out two solicitations?

1. Commercial distributors for commercial food products and 2. Processors for processed end products

• Answer: No, as per FD Policy Memo 119, procurement of

commercial products and processed end products can be on the same bid if certain conditions are met.

Conditions for Combining Procurement

• Services of a processor must have already been procured by a

commercial distributor in accordance with Federal procurement requirements

• The Processor must have an approved State Processing Agreement
• All end products sold must be approved by the State and substitution

and grading requirements must be met.

• Must specify how the School District will receive credit for the value
• f the donated foods contained in the end products
• The distributor will only sell product to eligible School Districts
• The distributor will notify the processor of sales so that the

processed commodity bank can be drawn down.

Procurement Methods

Informal Formal Micro-Purchases

< $3,500

Small Purchases

Federal Threshold = $150,000 State Threshold = $29,000 (With a QPA = $40,000)

Sealed Bids (IFBs), Competitive Proposals (RFPs) & Non-competitive Proposals

* Requires public

advertising

Requires price quotes from at least 3 bidders Distribute equitably among suppliers

MONITORING:

• Fee for Service and Direct Discount: School Districts

must ensure the contract price is the same as the price billed.

• NOI: School Districts must ensure that the

correct USDA Foods credit is applied on their invoices for each of their specific end products.

• Rebates: School Districts must ensure that a check

is received from the processor that includes the correct USDA Foods credit for each of their specific end products.

• Review your Balances Regularly in

K12 and Processor Link

• Make Sure You are Using Your

Commodity Dollars

• Make Sure You Do not Run Out of

Commodity Dollars

• Can Contact Manufacturer/Broker to

See New Products or for Suggestions for Utilizing Your Commodities

• 55% Draw Down by End of January
• Use It or Lose It!!!!!!

Tracking of Processed Commodity Balances

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Draw Down Chart SY 2016/2017

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SEPTEMBER 30th 10% 90% OCTOBER 30th 25% 75% NOVEMBER 30th 35% 65% DECEMBER 31st 45% 55% JANUARY 29th 55% 45%

First Draw-Down

FEBRUARY 29th 65% 35% MARCH 31ST 75% 25% APRIL 29th 85% 15% MAY 31ST 95% 5%

Second Draw-Down

THERE WILL BE NO CARRY OVER-USE IT OR LOST IT YTD USAGE REMAINING BALANCE

• All Pounds (dollars) Removed

During Drawdown Go into the State Bank

• Pounds/Dollars in the State

Bank Can be Used by any RA that is Low on Pounds(Dollars)

• State Bank Provides

Opportunity to Receive Additional Dollars Above Your Entitlement if You Manage your Commodities Wisely!!

• Send to Processing Only What

You Plan on Using!

State Bank

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Crediting for the Value of Commodities Received

• FSMC Operating Statement

LEA to LEA Vended Meal Contracts

• Must Report Value of Commodities Received
• n a Monthly Basis
• Use Total of Warehouse Commodities

Received from the Monthly Market Value Report on SNEARS

• Pull Report from K-12 and Processor Link for

Processed Commodities

• Pull Usage Report from FFAVORS if receiving

DOD Direct Produce

• Add Warehouse Total, DOD Direct Total and

Processed Commodities Total and Report the Grand Total on Your Financial Statement

FSMC Month Operating Statement Profit & Loss Statement

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• K12 Foodservice
• Processor Link
• FFAVORs
• Monthly Market Value Report

LEA to LEA Vended Meal Contracts

 Crediting for USDA Foods is mandatory for LEA to LEA Vended Meal Contracts beginning in the 2016-2017 school year  If the Vendor LEA received any USDA donated foods on behalf of the Recipient LEA during the preceding month, it will deduct the total market value of all such foods from the amount billed on the Recipient LEA’s monthly invoice.

How will this work?

 Similar to fixed meal rate contract  A “cents per meal USDA Foods credit” should be applied to the base lunch price for the market value of USDA Foods received  The lunch meal price in the base LEA to LEA contract should not include a USDA Foods credit.  Recommend Using the Commodity Acceptance Report to determine the “cents per meal USDA Foods credit”

Determining Cents Per Meal USDA Foods Credit

• Total Value Accepted: $78,820.65
• Divided by 180 Service Days or Actual Service Days
• Divided by ADP: 1219

$78,820.65/ 180 Service Days= $64.66 per Service Day $64.66/1219 ADP= .05 cents per meal USDA Foods credit

• Cents per meal USDA Foods Credit should be as close

as possible to the actual credit so credits or additional charges are minimal at the end of the school year

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How is this Fair to the Vendor and Recipient LEAs?

• Base Lunch Price ($2.55) Will Be Higher Than the

Current Lunch Price ($2.50)

• Applying the “cents per meal USDA Foods credit”

($0.05) lowers the Base Lunch Price ($2.55) to the Current or Actual Lunch Price ($2.50)

• Allows for proper tracking of USDA Foods credits
• Perform annual reconciliation at the end of the

year allowing for an additional credit to the Recipient LEA or additional charge from the Vendor LEA

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Tools Available:

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Sample Invoice for LEA to LEA Vended Meals

New Jersey Department of Agriculture Food Distribution

New Jersey Department of Agriculture, Division of Food and Nutrition, Food Distribution Programs CONTACT US

• Jennifer Zeligson, Manager, Food Distribution Programs
• Processing Supervisor: Jacqui Thomas (609) 633-9246
• Warehouse Supervisor: TBD(609) 984-2231
• Fiscal Services Supervisor: Kory Burtnett (609) 777-0537
• Billing/Invoice Questions: Melissa Korpusinski (609)984-2232
• Pick-up Date Changes, Allocation & Picking Ticket Questions
• Safeway Warehouse: Shelly Jones (609) 292-8685
• Port Newark Warehouse: Maria Keitt (609)633-3613

Main Phone Number 609-292-0337 Fax Number (609) 984-5367

Questions?

Brought to you by: New Jersey Department of Agriculture, Food Distribution Program