The document discusses Nevada's Request for Proposal (RFP) process for procuring USDA Foods for the upcoming school year. Key points include: - The current contract expires June 30, 2016, requiring a new RFP under USDA rules. - An evaluation committee and industry advisory group have been formed to provide input and set criteria for the RFP. - A timeline is outlined for the RFP process culminating in new contracts being awarded to processors for School Year 2016-2017. - Guidance is provided around utilizing and requesting USDA Food entitlement amounts as well as an upcoming survey to determine Foods orders. - Best practices are shared around maximizing the value of USDA Foods through

1. Bernadette DeMars
Nevada Department of Agriculture
January 7, 2016
ProfessionalStandardsLearningCodeTopics:
1000Nutrition&2000Operations

2. RFP Process and Update
USDA Foods Update
Food Costing with USDA Foods
Q & A (not recorded)

3. Why are we doing a RFP this year?
Current Contract ends June 30, 2016
USDA Requirement-Competitive Procurement
Competitive Pricing for Sponsors

4. Select new processors based on highest score
Inventory Control at Processors & State
Warehouse
Streamline Product Line

5. NDA has formed two key groups for the RFP
Industry Advisory Group
Industry representatives assisting with specific product specifications
Provide input on product availability, current industry standards
RFP Evaluation Committee
The members in this group include school districts, RCCI’s, as well as non-
profit organizations whom all manage the school meal program
Provide input on the needs of program sponsors
Product Specifications, Nutrition requirements, packaging, etc

6. RFP Timeline
Discuss and determine products to be on RFP
RFP Evaluation Committee + NDA
Set specific criteria in the RFP
NDA
Review final RFP document
NDA + State Purchasing
Release the RFP to public
Evaluate RFP
Award contracts to Processors for SY 16-17!

7. 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!

8. USDA 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 list
Minimum Quantity must be met
Consider making purchases with other sponsors to
meet minimum quantity

10. USDA 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 Determined
RFP will be finalized and processors selected per the
evaluation committee

11. Rose Wolterbeek, SNS
Food costing basic
Food costing—USDA foods

12. Food Cost is an important part of Food Service Operations
Salaries/Benefits
42%
Food
39%
USDA Foods Value
6%
Supplies
10%
Other
3% Expenditures
Salaries/Benefits
Food
USDA Foods
Value
Supplies
Other

13. USDA Foods (Brown Box)
Entitlement + Shipping and Handling per case (out
of pocket $$)
Processed Foods
Entitlement + Processing Fee (out of pocket $$) +
Shipping and Handling (out of pocket $$)
DOD Fresh
ONLY entitlement—no out of pocket costs!

14. USDA Foods Bulk
1 case of frozen corn (draws down entitlement funds + $2.50
S/H)
Total cost=$2.50
Processed Foods- Approved list from State
1 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 Produce
1 case of apples (draws down entitlement funds)
Total cost=$0
**Note: funds must be diverted in advance!

15. 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 portions
1 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

16. 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 0.14
Banana-Fresh 10 1 10 8.01 0.80 5.39 0.15
Broccoli-Floret Iceless 3 4 12 22.32 1.86 28.8 0.06
Carrot-Baby Cut 5 4 20 18.35 0.92 12.9 0.07
Celery Stick-Fresh 5 4 20 24.41 1.22 12.2 0.10
Cucumber-Fresh 5 1 5 9.62 1.92 11.8 0.16
Lettuce-Romaine Chopped 2 6 12 19.45 1.62 31.3 0.05
Lettuce-Salad Mix Tossed 5 4 20 16.14 0.81 26.4 0.03
Lettuce-Shredded Fresh 5 1 5 4.00 0.80 31.3 0.03
Onion-Yellow Diced 5 1 5 6.15 1.23 12.6 0.10
Onion-Red Jumbo Fresh 10 1 10 10.65 1.07 5.7 0.19
Green Bell Pepper-Fresh 5 1 5 9.45 1.89 9.7 0.19

17. Milk .21
Breadsticks .14
Nuggets .62
Fresh Apple .24
Carrots .17
Potatoes .25
Total food
budget=$1.63

18. Milk .21
Breadsticks .14
Nuggets .37
(proc plus s/h)
Apple 0
(DOD entitlement .24)
Carrots .17
Potatoes .02
(USDA Foods)
Total food
budget=0.91

19. Milk .21
Muffin .14
Fresh grapes .24
Applesauce cup .28
Total food budget=
0.87

20. Milk .21
Muffin .14
Applesauce cup .02
(USDA Foods)
Total food budget
cost=0.37
Grapes 0
(DOD entitlement)

21. Milk .21
String Cheese
(w/USDA Foods) .31
Apple juice .14
Fresh apple .14
Total food cost=0.80
Add WGR
Grain!

22. Milk .21
String Cheese
(w/USDA Foods) .09
Apple juice .14
Fresh apple 0
Total food cost=0.44
Add WGR
Grain!

23. Example of savings on per plate cost with
sources of food: vendors & USDA foods
Maximize Entitlement-Check balances monthly
Should be 10-15% of Food Budget
Savings with Entitlement can help with:
Program enhancement, equipment
purchases, or to help the “bottom line”

24. 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 menu
The more lunch meals served, will result in
more entitlement in subsequent years!

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

26. http://nutrition.nv.gov
CNP2000
http://cnp2000.state.nv.us/
http://www.fns.usda.gov/fdd/schoolscn-usda-foods-programs

27. https://www.youtube.com/user/nevadaagriculture
UpcominginpersonNDAtraining!
ProcurementSpring2016