USDA FoodsBernadette DeMarsNevada Department of AgricultureJanuary 7, 2016

Professional Standards Learning Code Topics:1000 Nutrition & 2000 Operations

Today’s Agenda

RFP Process and Update

USDA Foods Update

Food Costing with USDA Foods

Q & A (not recorded)

Request for Proposal-RFPWhy are we doing a RFP this year?

Current Contract ends June 30, 2016

USDA Requirement-Competitive Procurement

Competitive Pricing for Sponsors

Benefits for doing a RFP Process

Select new processors based on highest score

Inventory Control at Processors & State Warehouse

Streamline Product Line

RFP UpdateNDA has formed two key groups for the RFP

Industry Advisory GroupIndustry representatives assisting with specific product specificationsProvide input on product availability, current industry standards RFP Evaluation CommitteeThe members in this group include school districts, RCCI’s, as well as non-profit organizations whom all manage the school meal programProvide input on the needs of program sponsors

Product Specifications, Nutrition requirements, packaging, etc

RFP – The Process

RFP TimelineDiscuss and determine products to be on RFP

RFP Evaluation Committee + NDA Set specific criteria in the RFP

NDAReview final RFP document

NDA + State PurchasingRelease the RFP to publicEvaluate RFPAward contracts to Processors for SY 16-17!

Entitlement Update

Time to surrender or request more entitlement

If your agency has used 70% or under, NDA is requesting a plan from sponsors on how their entitlement will be utilized

Entitlement can be used for: USDA foods (Brown Box)Processed-end products DoD Fresh

If you have questions about how to better utilize your remaining entitlement reach out to NDA!

Sponsors that have utilized 80% or more of their entitlement and would like to request more, please submit the NDA entitlement form by January 11th!

Foods Available for SY 2016-2017USDA released the foods available for next school year in draft format.

NDA has shared the list with numbered memo NSLP 2016-24/RCCI 2016-18 (12/22/2015)The final foods available list will be shared once USDA releases the listMinimum Quantity must be metConsider making purchases with other sponsors to meet minimum quantity

USDA Foods Available List

Surveys for SY 2016-2017USDA Foods Survey will be posted this month

Sponsors will be given 2 weeks to complete and submit.Survey will be set up so that it subtracts entitlement.Sponsors must take what they commit to on the survey.

Processed Food Surveys—To Be DeterminedRFP will be finalized and processors selected per the evaluation committee

Switching gears to food costing…

Rose Wolterbeek, SNS

Food costing basic

Food costing—USDA foods

Food Costing with USDA FoodsFood Cost is an important part of Food Service Operations

Salaries/Benefits42%

Food39%

USDA Foods Value6%

Supplies10%

Other3% Expenditures

Salaries/Benefits

Food

USDA Foods Value

Supplies

Other

Entitlement vs Out of Pocket Costs

USDA Foods (Brown Box)Entitlement + Shipping and Handling per case (out of pocket $$)

Processed FoodsEntitlement + Processing Fee (out of pocket $$) + Shipping and Handling (out of pocket $$)

DOD FreshONLY entitlement—no out of pocket costs!

Food Purchase options-USDA FoodsUSDA Foods Bulk

1 case of frozen corn (draws down entitlement funds + $2.50 S/H) Total cost=$2.50

Processed Foods- Approved list from State1 case of mozzarella string cheese (draws down entitlement + $13.34 processing +$2.50 S/H)Total cost=$15.84; draws down entitlement funds

DOD Fresh Produce1 case of apples (draws down entitlement funds)Total cost=$0**Note: funds must be diverted in advance!

Food Costing with USDA Foods

Total Cost divided by number of servings=cost per serving

Example 1: Itemized portions 1 case of apples with 168 apples per case:Cost of $22.66 divided by 168 servings=$0.134 per serving

Example 2: Bulk portions1 case of green beans (canned)Case cost $31.06 per case divided by 6 cans per case= $5.18 per can; divided by 19.75 servings per can (1/2 cup portion) equals $0.26 per serving

Source: Food Buying Guide Section 2 page 7

What is your Per Plate Costs?

Product Description

Pack Size

(lbs or count)

Pack Qty

Total Case Size (lbs)

Cost per Case

Cost per LB or count

Servings Yielded per LB (based on USDA Cost per Serv.

Apple-Red Delicious 163 1 163 22.66 0.14 1 0.14Banana-Fresh 10 1 10 8.01 0.80 5.39 0.15Broccoli-Floret Iceless 3 4 12 22.32 1.86 28.8 0.06Carrot-Baby Cut 5 4 20 18.35 0.92 12.9 0.07Celery Stick-Fresh 5 4 20 24.41 1.22 12.2 0.10Cucumber-Fresh 5 1 5 9.62 1.92 11.8 0.16Lettuce-Romaine Chopped 2 6 12 19.45 1.62 31.3 0.05Lettuce-Salad Mix Tossed 5 4 20 16.14 0.81 26.4 0.03Lettuce-Shredded Fresh 5 1 5 4.00 0.80 31.3 0.03Onion-Yellow Diced 5 1 5 6.15 1.23 12.6 0.10Onion-Red Jumbo Fresh 10 1 10 10.65 1.07 5.7 0.19Green Bell Pepper-Fresh 5 1 5 9.45 1.89 9.7 0.19

Sample Food Cost of meal with commercial purchase: Milk .21

Breadsticks .14

Nuggets .62Fresh

Apple .24Carrots .17

Potatoes .25Total food

budget=$1.63

Sample Food Cost of meal w/ USDA Foods pricing:

Milk .21Breadsticks .14

Nuggets .37 (proc plus s/h)

Apple 0 (DOD

entitlement .24)Carrots .17

Potatoes .02(USDA Foods)Total food

budget=0.91

Sample Food Cost of meal with commercial purchase:

Milk .21Muffin .14

Fresh grapes .24Applesauce

cup .28Total food

budget= 0.87

Sample Food Cost of meal w/ USDA Foods pricing:

Milk .21Muffin .14

Applesauce cup .02

(USDA Foods)Total food

budget cost=0.37Grapes 0

(DOD entitlement)

Sample Food Cost of meal w/ commercial purchases:

Milk .21String Cheese

(w/USDA Foods) .31Apple juice .14Fresh apple .14

Total food cost=0.80

Add WGR Grain!

Sample Food Cost of meal w/ USDA Foods pricing:

Milk .21String Cheese

(w/USDA Foods) .09Apple juice .14Fresh apple 0Total food cost=0.44

Add WGR Grain!

Why use Entitlement?Example of savings on per plate cost with sources of food: vendors & USDA foods Maximize Entitlement-Check balances monthlyShould be 10-15% of Food BudgetSavings with Entitlement can help with:

Program enhancement, equipment purchases, or to help the “bottom line”

Why use Entitlement?

Lowers average food cost using USDA Foods as compared to market foods, which can fluctuate Advance “purchasing protection” with survey completions for following school year’s menuThe more lunch meals served, will result in more entitlement in subsequent years!

Why use Entitlement?

Product Specifications Fact Sheets readily available on USDA Website for Menu planning and to determine Yield with Food Buying GuideBest Practice to use full entitlement for NSLP programs

Resources:

Nevada Department of Agriculture Food and Nutrition Division

http://nutrition.nv.gov

CNP 2000http://cnp2000.state.nv.us/

United States Department of Agriculturehttp://www.fns.usda.gov/fdd/schoolscn-usda-foods-programs

Webinar archive:https://www.youtube.com/user/nevadaagriculture

Professional Standards Learning Code Topics:1000 Nutrition: 1100 Menu Planning/1170 USDA Foods

2000 Operations: 2400 Purchasing/Procurement

Upcoming in person NDA training!Procurement Spring 2016

Comments or Questions?