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K-12 School Foodservice Definitions
Distributor A commercial food company that purchases, receives, and/or stores commercial food products. Distributors sell, deliver, and bill the School Food Authority for goods and/or services provided. A distributor sells the products made by manufacturers. The USDA Department of Defense (DoD) Fresh Fruit and Vegetable Program (USDA DoD Fresh) Allows schools to use USDA Foods entitlement dollars to buy fresh produce. USDA DoD Fresh operates through a partnership between the USDA and the DoD Defense Logistics Agency (DLA), as well as the state distributing agencies in each participating state. Economic Price Adjustment 2 CFR, Section 200.318[k] The economic price adjustments must be tied to an appropriate standard or cost index. Relating the price adjustments in the contract, to an index, allows the SFA to ensure that increases under the contract are not without basis. For example, if fuel prices are increasing drastically, then an appropriate index – such as the Consumer Price Index – will reflect this change. The CPI index food away from home is preferred because the USDA uses this index for the National School Lunch Program yearly meal reimbursement values.
When districts use standardized indexes, vendors can bid on multi-year contracts that allow for inflation, and the district will be able to maintain a consistent level of service and food cost percentage from year to year. Include a fixed pricing period (6 months) and then subsequent extensions price increases may only be allowed based on the percentage of price increase for products that are at or below the consumer price increases for “All Urban Consumers” Database Series for the statistical area of “US City Average” from the category “Food Away from Home” as listed on the Bureau of Labor Statistics (BLS) web site. The Vendor may use the preceding six (6) months or may provide alternate documentation if BLS data is not available. Acceptability of alternate documentation is at the discretion of the district. If any price increases are allowed, include the price index, required documentation, and frequency. Electronic Procurement Software Cloud-based solutions provide tools that facilitate each stage of the e-procurement process. It enables digital sourcing, purchasing, spend management, risk mitigation, and other critical aspects of vendor management through a single interface and eliminates the need for large volume, printed solicitations and responses.
K-12 School Foodservice Definitions | 3
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