Procuring Local Foods - School Nutrition · 2014-07-16 · » From food processors » Through DoD...
Transcript of Procuring Local Foods - School Nutrition · 2014-07-16 · » From food processors » Through DoD...
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Procuring Local Foods for Child Nutrition Programs
United States Department of Agriculture
Food and Nutrition Service
Christina Conell
Program Analyst
Laura Brown
Program Analyst
SNA State Agency
Meeting
December 11, 2013
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Introductions
» What state are you from?
» What is your role?
» What do you hope to learn
today?
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Overview
» Procurement principles and regulations
» Procurement methods
» Sourcing locally, and correctly!
» The Geographic Preference option
» Incorporating local foods into school
meals: an example
» Resources
» Questions
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» Identify sources of local food » Understand the mechanisms for local
sourching » Understand the geographic
preference option » Know where to go for additional
procurement guidance
Learning objectives
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» An SFA wants to procure about 90,000 pounds of local carrots for one school for the whole year and estimates that the product will cost about $100,000. What are the SFA’s options for procuring the carrots?
Scenario 1
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Procurement
principles and
regulations
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What is procurement?
Procurement is the purchasing of goods and services. The procurement process involves:
Planning Drafting
Specifications
Advertising the
Procurement
Awarding a Contract
Managing the Contract
Procurement Principles
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4 Key Concepts
1. Competition
2. Responsive and Responsible
3. American Grown
4. Know Your Federal, State and Local
Regulations
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1) Competition
»Competition is essential to
ensure low cost and good
quality of goods and services.
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1) Competition killers
Do not… » Place unreasonable requirements on
firms; » Require unnecessary experience and
excessive bonding; » Give noncompetitive awards to
consultants; » Have organizational conflicts of interest; » Specify only brand name products; or, » Make arbitrary decisions in the
procurement process.
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2) Responsive and responsible
» Awards must be made to vendors that
are responsive and responsible
» Responsive means that the vendor submits a
bid that conforms to all terms of the
solicitation
» Responsible means that the vendor is capable
of performing successfully under the terms of
the contract
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3) The Buy American provision
» The National School
Lunch Act requires SFAs
to purchase
domestically grown and
processed foods to the
maximum extent
practicable.
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4) Procurement rules
» Be familiar with all procurement
requirements, at the federal, state and
local levels
» SFA is responsible for complying with all
levels of regulations.
» In some cases, state and federal regulations may be
in conflict with each other.
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State procurement policies
» What State policies do you have?
» What is your State’s small purchase threshold?
» Does your State have legislation promoting farm to
school?
» Does your state require vendors to carry liability
insurance? If so, how much?
» Does your state allow both RFPs and IFBs?
» Are there other State-specific guidelines?
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State, federal, and nonprofit support
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F2S Coordinators, Depts of Ag
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F2S Coordinators, Depts of Ed
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F2S Coordinators, Depts of Ag & Ed
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States with farm to school legislation
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Procurement
methods
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Procurement methods
Informal Small Purchase
(Requires price quotes from at least 3 bidders)
Formal Sealed Bids (IFBs)
& Competitive Proposals (RFPs)
(Requires public advertising)
≤ $150,000 > (Small Purchase Threshold)
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The formal procurement process
Develop solicitation.
Publicly announce the IFB/RFP.
Evaluate bidders using established
criteria.
Award the contract to the most
responsive and responsible bidder
at lowest price.
Manage the contract.
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Competitive sealed bidding
» Procurement by competitive sealed
bidding is done by issuing an invitation for
bid (IFB).
» Use it when:
» A complete, adequate, and realistic specification is
available.
» The contract can be awarded on the basis of price.
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Competitive proposals
» Procurement by competitive proposal is
done by issuing a request for proposal
(RFP).
» Use it when:
» Conditions aren’t appropriate for a sealed bid.
» Price won’t necessarily be the sole basis for the
award.
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The informal procurement process
Develop your specs in writing
Identify and notify at least 3 sources eligible, able, and willing to provide
products.
Evaluate bidders’ responses to your specs.
Determine most responsive and
responsible bidder at lowest price and
award contract.
Manage the contract.
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Small purchase procedure
» Use it when:
» The estimated amount of your purchase
falls below your small purchase
threshold.
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Sourcing locally, and correctly!
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Buying local
1. WHAT: Which types of products?
2. WHERE: From which types of sources?
3. HOW: The mechanics of sourcing local
correctly.
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1) Local WHAT?
Vegetables Meat, Poultry
and Fish Beans,
Grains, and
Flour
Dairy Fruits
Eggs
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2) WHERE to get local foods
» Through distributors
» Through food service
management companies
» From food processors
» Through DoD Fresh
» From individual producers
» From producer co-ops/food
hubs
» From school gardens
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3) How to source local
» Using geographic preference; » Picking the low hanging fruit; » Including related characteristics in
specifications; » Approaching only local sources under an
informal procurement; » Including a desire for local items in distributor or
FSMC solicitations; » Choosing local foods in the DoD Fresh catalog, » Using USDA Foods to augment your local
purchases; and, » Forward contracting.
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» Some local products, because of their
nature, are likely to be cheaper than
non-local competitors.
» Encourage districts to ask their
providers where their food is coming
from— they might be surprised!
Procure the easy ones first
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Use specifications
Districts can include specifications such as
“harvested within 48 hours of delivery” that
will increase the chances that a local vendor
will win the contract.
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Other potential specifications
» When purchasing local foods, some things
to consider are:
» Degree of ripeness or maturity
» Freshness (age)
» Condition upon receipt of product
» Temperature
» Size uniformity
» Other quality standards (such as “organic,” “no-till,”
“no-spray,” etc.)
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Example: San Diego Unified
Foods must be: » Grown on farms that are less than 50 acres in size
and grow more than five food crops at one time; » Grown on farms that utilize a majority of hand
harvesting, hand packing or human labor power in growing, harvesting. and packing of food;
» Delivered within 24 to 48 hours of harvest; » Delivered directly to multiple SDUSD school sites
(not a central warehouse). The number of drops is to be determined by the district on a case-by-case basis;
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Specifications
Exercise
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Products
» Lettuce for salad
» Turkey for chili
» Tomatoes for sandwiches
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Approach only local vendors
» For purchases under their small purchase
threshold, districts can get quotes from 3
(or more) local farms or vendors.
» But remember:
» They need to write specifications.
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Example from Tulsa, OK
» Tomatoes » Hydroponic
» Available 10 months of the year
» US No. 1, fully ripe, red color-stage 5-6
» 10 day shelf life
» Organic
» Delivered to 18 schools 2 days prior to service
» Proof of liability insurance due with bid
» GAP certified
» 36 cases per week
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Sample bid documentation
Vendor Tom’s Toms Vickie’s Vines Fresh Network
Date received July 1 July 6 July 10
Responsive and Responsible
Yes Yes No, can only deliver 5 months of year
Price/lb $2.20 $2.05 $2.75
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Splitting procurements
» SFAs cannot arbitrarily divide
purchases to fall below the small
purchase threshold.
» In some instances, however,
characteristics of a product or market
justify the need to separate it from the
overall food procurement.
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Buying local through a distributor
» Distributors are vital!
» One-stop shop
» Delivery
» Most hold liability insurance
» To purchase local through a distributor:
» Include this desire in the solicitation
» Encourage districts to ask if any products
currently on the contracted list are sourced local
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Example: Using distributors
» Union Public Schools – Tulsa, OK
» Springfield District – Eugene, OR
» Knox County Schools – Knoxville, TN
» Harrisonburg City Public Schools –
Harrisonburg, VA
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Buying local through a FSMC
» Food Service Management Company Contract » Districts must specify what types of local products
and when they would like them in the solicitation and contract.
» Cost reimbursable and fixed price contracts » Cost reimbursable contracts require that FSMC follow
procurement regulations.
» Fixed price contracts are more flexible for the recipient, but may be more difficult for the vendor to manage.
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Example: FSMC solicitation
» Eugene 4j District – Eugene, OR
» Worked with Sodexo, a FSMC, to add a
distributor who is committed to working with
local producers to the approved supplier list.
» Rochester County Schools – NH » Working with a GAP certified apple grower
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Using a forward contract
» Purchasing product before harvest
» Provides producer with a guarantee
» Ensures the farmer will plant and pack the supply needed
» Understand the risk
» What happens if the crop fails?
» Must follow competitive procurement process
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Example: Using a forward contract
» North Carolina
» Issues a solicitation for different products
every quarter.
» Not too far in advance, which allows for a
steady price and more predictable quantity.
» Enables districts to have a steady supply and
guarantees a market for growers.
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Example: Oregon and Oklahoma
» Farm to school coordinators work
with distributors
» Connect distributors to local growers
» Set up commitments between producers
and distributors
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Working with DoD Fresh
» DoD Fresh offers an opportunity to use
USDA Foods entitlement dollars on
fresh produce
» DoD contracts with produce vendors across
the country
» Many vendors purchase regionally grown
produce
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FFAVORS
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Example: Working with DoD Fresh
» North Carolina » NC Dept. of Agriculture fosters relationships with growers
and DoD vendor.
» State even facilitates transportation from farm to DoD
vendor facility.
» Connecticut » Holds an annual Know Your Farmer Meeting to facilitate
producer relationships with the DoD Vendor.
» Texas » Works with DoD vendors to select at least 5 TX Grown
products that will be available at different times.
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Locally produced USDA Foods
» 100% American grown
» Every product is local to someone!
» Be aware of what is produced in your
region and order those products
» Explore state processors
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USDA Foods by region
» Western
Pollack, Cheese, Apricots,
Peaches, Tomatoes,
Pears, Potatoes
» Southwest
Rice, Beans, Peanut butter,
Beef
» Southeast
Chicken, Peanut butter,
Catfish, Turkey, Rice,
Flour
» Northeast
Flour, Corn, Green beans
» Mid Atlantic
Corn, Pasta, Beans,
Chicken
» Midwest
Apples, Cherries, Beef,
Beans, Carrots, Cheese,
Green beans
» Mountain Plains
Beans, Beef, Flour, Pasta,
Pork
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Donated foods
» Procurement regulations do not
apply to donated foods
» Districts should consider food
safety issues and menus before
accepting foods
» Document receipt of goods
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Choosing a source and a mechanism
» Districts can target multiple sources
with the same mechanism.
» Several of the mechanisms can be
used in combination.
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» An SFA works directly with a local
grower to source fresh herbs. The
value of the products is less than
$1,000. What are the SFA’s
options for purchasing the herbs?
Scenario 2
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The Geographic
Preference
option
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The Geographic Preference option
» Authorized by Section 4302 of
Public Law 110-246, the Food,
Conservation, and Energy Act of
2008 (AKA the 2008 Farm Bill)
» Final Rule published in April, 2011
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Bringing local into the cafeteria
» Geographic
preference can be
applied to most
school food
purchases for
unprocessed
agricultural
products.
USDA Foods
Cash Assistance
DOD Fresh
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Who and how to define local?
» School Food Authority defines local
» Local can be defined by:
» Region
» State
» Mileage
» Different definitions for different products
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What is “unprocessed”?
» Cooling, refrigerating, and freezing
» Peeling, slicing, dicing,
cutting, chopping,
shucking, and grinding
» Forming ground products into patties
» Drying and dehydrating
» Washing, packaging, vacuum packing, and
bagging
» Adding preservatives to
prevent oxidation
» Butchering livestock or poultry
» Pasteurizing milk
“Unprocessed” agricultural products retain their inherent character. These are the allowed food handling and preservation techniques:
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How to incorporate a geographic preference
To apply a geo. pref., districts should: 1) Define local.
2) Determine what type of procurement
method to use.
3) Decide how much “preference” local
products will receive.
4) Be sure your solicitation makes perfectly
clear how the preference will be applied.
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Example 1: 1 Penny = 1 Point
Owen’s
Orchard
Apple Lane
Farms
Bob’s Best
Price $1.97 $2.05 $2.03
Meets geographic preference?
No Yes (10 points) No
Price with preference points
$1.97 $1.95 $2.03
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Example 2: Percentage preference
Produce
Express
Ray’s
Produce
F&V
Distribution
Contract Price $32,000 $35,000 $34,000
% F&V Able to Provide From Within the State
20 80 50
Geographic Preference Points to Respondent able to meet >60% Local Items
No Yes (10% pref.)
No
Price for comparison $32,000 $31,500 $34,000
10% price preference will be awarded to any bidder that can source at least 60% of the products from within the state.
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Geo. pref. sliding scale
» 10 preference points will be awarded to
vendors able to provide over 70% local, 7
points for 50-69% and 5 points for 25-49%.
Sliding scale of percentage
local
Preference
points
70% and more local products 10
50-69% local products 7
25-49% local products 4
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Laurie’s
Legumes
Paula’s Pulses Gary’s Grains
Price = 40 30 35 40
Contractor ability to perform all
specifications
Product quality = 15
Delivery = 10
Packaging and Labeling = 5
25 30 30
Three references, past history = 10 10 10 10
Able to provide farm/facility tour
or classroom visits = 5
0 5 5
Able to provide state of origin on
all products = 5
0 5 5
Ability to provide sourced within
the state products = 10
0 10 7
100 possible points 65 95 97
Example 3: Geo. pref. in an RFP
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Geographic preference worksheet
» Work in teams of two or three.
» Pretend you’re working with a SFA to buy a
local product (of your choosing).
» Fill in each step outlining:
» How the district will define local;
» What procurement method they will use;
» How much preference will be applied; and,
» The mechanism for applying the preference.
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Incorporating local foods into school meals: an example
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Monday Tuesday Wednesday Thursday Friday
Submarine Sandwich on Whole Wheat Roll Refried Beans Jicama Green Pepper Strips Cantaloupe wedges Skim Milk
Whole Wheat Spaghetti with Meat Sauce Whole Wheat Roll Green Beans Broccoli & Cauliflower Kiwi Halves Low-fat Milk
Chef Salad Whole Wheat Soft Pretzel Corn Baby Carrots Banana Skim Milk
Oven-Baked Fish nuggets Whole Wheat Roll Mashed Potatoes Steamed Broccoli Canned Peaches Skim Milk
Whole Wheat Cheese Pizza Baked Sweet Potato Fries Grape tomatoes Applesauce Low-fat Milk
Evolution of a local menu
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Monday Tuesday Wednesday Thursday Friday
Submarine Sandwich on Whole Wheat Roll Refried Beans Jicama Green Pepper Strips Cantaloupe wedges Skim Milk
Whole Wheat Spaghetti with Meat Sauce Whole Wheat Roll Green Beans Broccoli & Cauliflower Kiwi Halves Low-fat Milk
Chef Salad Whole Wheat Soft Pretzel Corn Baby Carrots Banana Skim Milk
Oven-Baked Fish nuggets Whole Wheat Roll Mashed Potatoes Steamed Broccoli Canned Peaches Skim Milk
Whole Wheat Cheese Pizza Baked Sweet Potato Fries Grape tomatoes Strawberries Low-fat Milk Harvest of the month: Strawberries from Seascape Farm.
Evolution of a local menu
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Monday Tuesday Wednesday Thursday Friday
Submarine Sandwich on Whole Wheat Roll Refried Beans Jicama Green Pepper Strips Cantaloupe wedges Skim Milk
Whole Wheat Spaghetti with Meat Sauce Whole Wheat Roll Green Beans Broccoli & Cauliflower Kiwi Halves Low-fat Milk
Chef Salad Whole Wheat Soft Pretzel Corn Baby Carrots Banana Skim Milk
Oven-Baked Fish nuggets Whole Wheat Roll Mashed Potatoes Steamed Broccoli Canned Peaches Skim Milk
Whole Wheat Cheese Pizza Baked Sweet Potato Fries Grape tomatoes Strawberries Low-fat Milk
Evolution of a local menu
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Monday Tuesday Wednesday Thursday Friday
Submarine Sandwich on Whole Wheat Roll Refried Beans Jicama Green Pepper Strips Cantaloupe wedges Skim Milk
Whole Wheat Spaghetti with Meat Sauce Whole Wheat Roll Green Beans Broccoli & Cauliflower Kiwi Halves Low-fat Milk
Chef Salad Whole Wheat Soft Pretzel Corn Carrots Banana Skim Milk
Oven-Baked Fish nuggets Whole Wheat Roll Mashed Potatoes Steamed Broccoli Canned Peaches Skim Milk
Whole Wheat Cheese Pizza Baked Sweet Potato Fries Grape tomatoes Strawberries Low-fat Milk
Evolution of a local menu
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Monday Tuesday Wednesday Thursday Friday
Submarine Sandwich on Whole Wheat Roll Refried Beans Jicama Green Pepper Strips Cantaloupe wedges Skim Milk
Whole Wheat Spaghetti with Meat Sauce Whole Wheat Roll Green Beans Broccoli & Cauliflower Kiwi Halves Low-fat Milk
Chef Salad Whole Wheat Soft Pretzel Corn Carrots Banana Skim Milk
Oven-Baked Fish nuggets Whole Wheat Roll Mashed Potatoes Steamed Broccoli Canned Peaches Skim Milk
Whole Wheat Cheese Pizza Baked Sweet Potato Fries Grape tomatoes Strawberries Low-fat Milk
Evolution of a local menu
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Monday Tuesday Wednesday Thursday Friday
Submarine Sandwich on Whole Grain Roll Refried Beans Jicama Green Pepper Strips Cantaloupe wedges Skim Milk
Whole Wheat Spaghetti with Meat Sauce Whole Wheat Roll Green Beans Broccoli & Cauliflower Kiwi Halves Low-fat Milk
Chef Salad Whole Wheat Soft Pretzel Corn Carrots Banana Skim Milk
Oven-Baked Fish nuggets Whole Grain Roll Mashed Potatoes Steamed Broccoli Canned Peaches Skim Milk
Whole Wheat Cheese Pizza Baked Sweet Potato Fries Grape tomatoes Strawberries Low-fat Milk
Evolution of a local menu
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Monday Tuesday Wednesday Thursday Friday
Submarine Sandwich on Whole Grain Roll Refried Beans Jicama Fresh Peas Cantaloupe wedges Skim Milk
Whole Wheat Spaghetti with Meat Sauce Whole Wheat Roll Green Beans Broccoli & Cauliflower Kiwi Halves Low-fat Milk
Chef Salad Whole Wheat Soft Pretzel Corn Carrots Banana Skim Milk
Oven-Baked Fish nuggets Whole Grain Roll Mashed Potatoes Steamed Broccoli Canned Pears Skim Milk
Whole Wheat Cheese Pizza Baked Sweet Potato Fries Grape tomatoes Strawberries Low-fat Milk
Evolution of a local menu
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Monday Tuesday Wednesday Thursday Friday
Local Lentil Patty Whole Grain Roll Refried Beans Jicama Fresh Peas Cantaloupe wedges Skim Milk
Whole Wheat Spaghetti with Meat Sauce Whole Wheat Roll Green Beans Broccoli & Cauliflower Kiwi Halves Low-fat Milk
Chef Salad Local Spanish Rice with corn Carrots Banana Skim Milk
Oven-Baked Local Fish Sandwich on a Whole Grain Roll Mashed Potatoes Steamed Broccoli Canned Pears Skim Milk
Whole Wheat Cheese Pizza Baked Sweet Potato Fries Grape tomatoes Strawberries Low-fat Milk
Evolution of a local menu
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Scenario 3
» An SFA has worked with the same dairy in
their state for over five years. The district
loves the product, but the contract will
expire at the end of school year. What are
some strategies the SFA might use to target
the same dairy or similar operations in the
state?
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Scenario 1 – Anything to add?
» An SFA wants to procure about 90,000
pounds of local carrots for one school for
the whole year and estimates that the
product will cost about $100,000. What are
the SFA’s options for procuring the carrots?
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Farm to school resources
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Fact Sheets
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Resources
» Geographic Preference Q&As
» Federal procurement regulations
» State and local procurement rules and
guidance
» Washington State Department of
Agriculture Guide
» National Food Service Management
Institute Online Training
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FNS staff are here to help!
WRO
SWRO
MPRO MWRO
SERO
MARO
NERO
National Office
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Example: Harrisonburg City Public Schools
Ground beef must be: » From cattle specifically raised for beef production
(culled dairy cows are not acceptable); » Cattle are raised without the use of hormones or
sub-therapeutic antibiotics, are grass fed or grass fed and grain finished;
» Slaughtered and processed in a USDA-inspected facility;
» Ratio of lean to fat should be 85/15 or leaner; and, » Labeled with the name of the company, product
type, and a unique indicator to trace the product to the animal/date of slaughter.