Oregon USDA Food Distribution Program & Procurement Advisory Council Thursday, January 10, 2013 Minutes Facilitator: Michelle Fleener Present: Gema Soto, Mike Vetter, Sharon Gibson, Robin Stromberg, Cindy Longway, Dawn Barberris, Vicky Brown, Carla Beutler, Christy Star, Gitta Grether- Sweeney, Debbie Webster, Lisa Vincent, Gara Schluter, Jennie Kolpak, John Waker, Clare Columbus, Beckie Wicks, Christi Harris, Marcie Christiansen, Dan Beardsley, Lynne Duda, Toni Silbernagel, Janet Beer, Pam Suyematsu, Janet Menashe, Dave Harvey, Milli Horton, Chris Facha, Heidi Dupuis, David Jones, Su Fennern Scribe: Michelle Lincoln Information/Decision Action Needed Competitive Procurement Requirements and USDA processing memo discussion USDA Processing Options: ODE will start working on options 2 and 3 for the 2014-15 SY. 1. Continue current method 2. ODE procuring for processing fee on processed products Q. If we stay with this bid will we still have variety? A. yes you would have multiple manufacturers. You would still have to divert enough for a truckload. You are on your own for figuring out delivery ( FSA, SYCO direct ship?) product would not come into ODE s warehouse ODE would take care of the procurement for you Would have a processing fee Need to have 3 price product prices and 3 shipping prices 3. ODE diverts product to processor, goes to warehouse, ODE distributes This would be a successful method for a limited scope of food products. For example if USDA cancels an order because there is not a manufacturer that can handle the volume, ODE could divert a load and bring it into our warehouse and then distribute it. Districts would still have a say in which processors we use, however, we would still need to get a quote. Goes to warehouse- would have cost of product plus ODE s $0.10 per lb. fee
Q. Why are we revisiting this issue? A. On Administrative Reviews ODE is finding many sponsors are not getting competitive bids. This can lead to Administrative Review issues and findings. We realize this is a very broad issue and that the smaller schools are having a bigger problem. Q. If we have ODE take care of the procurement now, will we have the option to opt out in the future? A. Yes Formal bid threshold has changed from $100k to $150k. You will now need a bid if cost is above $150k. The no bid, no quotes if under 5k rule does not apply to Federal funds. For example even if you buy something like a coffee maker, you will need to get 3 quotes. This is a nationwide issue. You can comingle the solicitations. Click here for a list of the pros and cons of each option. How does committee want ODE to proceed? (1) 4votes (2) 22 votes (3) 19 votes State pricing agreement update with Dave Reynolds from DAS Kitchen equipment bid-where are we at? There have been some delays. Currently the bid (first draft) is at the DOJ awaiting approval and we should have it back in a few days. Then management will review it. Once DAS receives it, we will not need any further approval. It will be on the street for 45 days with Q&A open so we can help small businesses to get in on the bid. Food bids Are they going out for bid? In the research phase. Line item bid Equitable Ordering Quantities (EOC) will have price breaks listed. Volume increases and price reductions Currently in negotiations with vendors. Can see published price list on ORPIN Website. Top 100 didn t work. If when looking through the list you see an item that you would like to add or eliminate, send an email to Su Fennern she will add this to the agenda for the next meeting. As a committee we will discuss these changes and make a decision. Su Fennern will then communicate to DAS any needed changes. Q. Does the ORPIN website list all the regulations? DAS will send out a notice to School Districts when it is ready. DAS will contact committee members when research phase is complete and they are ready to re-bid. DAS will email a list that shows which items have gone down in price. DAS will email Chris a copy of the regulations to post on the ODE website.
A. Yes, a list of these will also be posted on the ODE website Q. When the bid is formulated and it goes out, will we be able to see what is on the list? A. When it is returned from DOJ, if requested Dave can email a spec sheet of what is included in the bid. Chris will publish the price list on the ODE Website for comparison shopping. Q. How can small sponsors have a voice? A. Sponsors can notify Su Fennern or Chris Facha. They will notify DAS then DAS will notify the Vendors. If they cannot find an option DAS will then open it for bid. This will be handled on a case by case basis. ORCAP Membership dues may be lowering, we will know more before July 1, 2013. Charlie s delivery to Eastern Oregon Charlie s Produce has announced that they will be adding two additional eastern Oregon schools to their coverage area. We have requested additional schools and are waiting to hear back from them. USDA Foods complete survey results Click here to see the complete survey results Top foods wanted that did not make pre-order Beef Crumbles Turkey Taco Meat Full Fat Shredded Cheese Money used for other items already listed Tomato Paste Frozen Peaches Brown Box available for 2013-14 Pre-order period open February 4 th and closes on February 28 th. USDA Foods had a conference on the topic of Salsa FNS is working on a quality assurance plan for consistency. Entitlement projection Click here to see a breakdown of the Entitlement projection. NSLP Meal counts are down in Oregon and across the Nation. Q. In the past we were limited in spending, to 90% of our entitlement, will that stay the same? A. No, you will be able to use 100% of your entitlement funds. There is unassigned entitlement dollars. In December we will receive the final entitlement numbers. Unassigned entitlement goes towards your entitlement dollars. Service fee reduction
Because of ODE s diligence in conserving Food Distribution Funds we were able to reduce the service fees from $0.11 to $0.10 a lb. if ODE finds that we have funds left over at the end of the year, we will issue refund checks. DoD is incurring a per lb. service fee for 2013-2014 we will receive reports from them and will have to charge the same fee. If we are receiving more service fees, it means more revenue which in turn reduces fees for everything else. David called USDA about the peanut butter reimbursements. No new information about when rebates will be sent has been released, but it is in process. Cross year USDA Foods cost analysis Click here to see the Cross year USDA Food Cost Analysis spreadsheet. USDA Foods national recall notification system Sponsors can sign up to receive emails if/when foods have been recalled. Next order/distribution period Phase 1: February 13-17, 2013 Phase 2: February 19-20, 2013 For delivery in March. Chris will add a link on the ODE Website to the USDA national recall notification system and send an email to the Committee once completed. Satisfaction with Alpine/Tools for Schools All comments agree that the level of service is excellent! With emphasis on good communication and products being handled with care. Catfish discussion Some schools have received their shipments. The flavor is mild and it is lightly breaded with cornmeal. It did not overpower the school with a strong fishy scent when cooked and the children loved it! OSNA and USDA Foods Q. what would you like the training Chris and Lisa put together to be about? A. Diversion for next year, Financial TA, and Cost analysis for commodity value. Chris and Lisa Fisher will develop trainings. Future agenda and planning Kitchen equipment bid update Procurement process, options 2 and 3 update Items to balance truckloads- update with final results Training from DAS- simple navigation of the bid Next meeting date May 9th
Option #1 Continue Current Method Pros Works great for cheese and fish Small schools (-) Cons Flexible Not in compliance 85% of school attendance is under 2500 Votes: 4
Option #2 ODE Procuring for processing fee Pros Cost? Meeting requirements Easy to use Top # of items Small districts benefits Knowing price ahead Price ahead of time More options Cons.Cost? Delivery Taste Acceptance Top # of items Taste, quality, texture Not price only Cost? Might be higher Price better quality Not mandated Time savings Flexibility Votes: 22 Delivery of product to the small district is a real concern. Need to have 3 price product prices and 3 shipping prices. RFP for storage & delivery Check on current agreement with Alpine for adding delivery and storage for school district.
Regular delivery Pros Option #3 Diverts Product to processor Cons Internal distribution and storage Small district participation Limited amount of items something that become another product Meeting Requirements Cost? Easy to use Potential lose control of product-quality assurance. Flexibility District agree on products Past Experience Small District benefits Price ahead of time More options Not mandated Time savings Flexibility Votes: 19
USDA Foods Complete Survey Results Yes No 101 APPLESAUCE CAN-6/10 90 6 96 95% PASTA, SPAGHETTI, WHOLE GRAIN, DRY, 20 LB BAG 79 15 94 93% CHEESE BLEND AMER SKM YEL SLC LVS-6/5 LB 88 5 93 92% PASTA, MACRONI, WHOLE GRAIN, DRY, 20 LB 77 16 93 92% MIXED FRUIT CAN-6/10 80 12 92 91% APPLE SLICES CAN-6/10 50 41 91 90% CHICKEN FAJITA STRIPS CTN-30 LB 85 5 90 89% CHEESE MOZ LM PART SKM SHRD FRZ BOX-30LB 82 8 90 89% TOMATO SALSA CAN-6/10 72 18 90 89% PEACH FREESTONE DICED FRZ CUP-96/4.4 OZ 59 31 90 89% CHEESE CHED RDU FAT YEL SHRED BAG-6/5 LB 83 6 89 88% BEANS BLACK TURTLE CAN-6/10 69 20 89 88% CORN WHOLE KERNEL(LIQ) CAN-6/10 77 11 88 87% PORK HAM, COOKED, FZN, THIN SLICED 8/5 LB PKG 70 18 88 87% CHICKEN OVEN ROASTED FRZ 8 PC CTN-30 LB 67 21 88 87% CHICKEN DICED CTN-40 LB 60 28 88 87% APPLES GALA FRESH G CARTON-40 LB 54 34 88 87% BLUEBERRY CULTIVATED FRZ CTN-30 LB 76 11 87 86% PEACHES CLING SLICED CAN-6/10 67 20 87 86% BLUEBERRY WILD FRZ CTN-30 LB 54 33 87 86% BEEF LEAN PATTY FRZ CTN-40 LB 53 34 87 86% BEEF FINE GROUND FRZ CTN-40 LB 49 38 87 86% APRICOTS CAN-6/10 48 39 87 86% PEANUT BUTTER SMOOTH JAR-6/5 LB 65 21 86 85% BEANS GARBANZO CAN-6/10 56 30 86 85% DRIED RAISINS BOX-144/1.33 OZ 55 31 86 85% TOMATO DICED CAN-6/10 61 24 85 84% TURKEY BREAST SMKD DELI FRZ CTN-40 LB 57 28 85 84% BEANS REFRIED CAN-6/10 50 35 85 84% CHEESE BLEND AMER SKM WHT SLC LVS-6/5 LB 65 19 84 83% DRIED FRUIT MIX PKG-5/5 LB 52 32 84 83% SWEET POTATOES RANDOM CUT FRZ PKG-6/5 LB 61 22 83 82% TURKEY HAMS SMKD FRZ CTN-40 LB 42 41 83 82% TURKEY TACO FILLING CTN-30 LB 40 43 83 82% CHICKEN CUT-UP FRZ CTN-40 LB 37 46 83 82% PEACHES CLING DICED CAN-6/10 59 23 82 81% PORK BNLS LEG ROASTS - BULK CTN-60 LB 43 39 82 81% DRIED CHERRIES-4/4# CTN 50 31 81 80% BEEF SPP PATTY HOMESTYLE CKD CTN-40 LB 46 35 81 80% APPLES RED DELICIOUS FRESH CTN-40 LB 36 45 81 80% BEANS VEGETARIAN CAN-6/10 62 18 80 79% BEEF CRUMBLES W/SPP PKG-4/10 LB 35 45 80 79% PEACHES FREESTONE SLICES FRZ CTN-20 LB 39 40 79 78% TOMATO PASTE CAN-6/10 35 43 78 77% PORK HAM, COOKED, WATER-ADDED, FRZ-4/10 LB HAMS 32 46 78 77% CHEESE CHED YEL SHRED BAG-6/5 LB 35 42 77 76%
Federal Fiscal Year Meal Counts Program Year 2012 Meal Count Year Lunch Count Difference % change Jul-11 73,849 2010 49,784,905 Aug-11 131,668 2011 48,655,086 1,129,819 0.022694 Sep-11 5,237,920 2012 47,422,541 1,232,545 0.025332 Oct-11 5,528,773 Nov-11 4,790,423 Dec-11 3,425,957 Jan-12 5,286,879 Feb-12 5,509,367 Mar-12 4,222,616 Apr-12 5,551,045 May-12 6,100,142 Jun-12 1,903,921 47,762,560 Estimated Participation Decrease: Estimated 13-14 Meal Count 2% 955251.2 46,807,309 Estimated Rate: Estimated 13-14 Entitlement 0.2275 10648662.75 Estimated Carryover : Estimated Adjusted Entitlement 203425.89 10445236.86 DoD Amount:?
Cross year analysis Material # Dry SY 2013-14 Brown Box USDA Foods Pack Size Cs. Value Nov. 15 2011 for SY 2012-13 Cs Value Nov 15 2012 for SY 2013-14 Net Charge Increase (Decrease) Case cot w/fees (total includes the.10 cents per lb. service fee) Service fee per cs @.10 cents per lb. 100521 Apples Gala Fresh G Carton 40 LB 18.36 28.02 9.66 31.87 3.85 100208 Applesauce CAN-6/10 6/10 18.06 30.08 12.02 34.13 4.05 100209 Apricots CAN-6/10 6/10 31.01 25.92-5.09 29.97 4.05 100359 Beans Black Turtle 6/10 18.57 15.04-3.53 19.09 4.05 100360 Beans Garbanzo 6/10 19.29 15.94-3.35 19.99 4.05 100307 Beans Green 6/10 19.43 14.32-5.11 18.12 3.80 100362 Beans Refried 6/10 21.38 19.40-1.98 23.60 4.20 100364 Beans Vegetarian 6/10 18.37 15.64-2.73 19.69 4.05 100313 Corn Whole Kernel 6/10 18.48 16.50-1.98 20.48 3.98 100299 Dried Cherries 4/4 53.18 62.13 8.95 63.73 1.60 110161 Fruit Mix Dried 5/5 LB 89.76 52.73-37.03 55.23 2.50 100293 Dried Raisins Box 144/1.33 OZ 19.86 20.24 0.38 21.44 1.20 100212 Mixed Fruit 6/10 21.27 24.66 3.39 28.64 3.98 100919 Pasta, Macaroni, Whole Grain 20 LB 10.38 8.80-1.58 10.80 2.00 100427 Pasta, Spaghetti, Whole Grain 20 LB 11.39 8.62-2.77 10.62 2.00 100220 Peaches Diced 6/10 23.84 23.35-0.49 27.33 3.98 100219 Peaches Sliced 6/10 21.43 23.61 2.18 27.59 3.98 100224 Pears Slices 6/10 24.51 26.01 1.5 29.96 3.95 100396 Peanut Butter Smooth 6/5 JAR 48.27 32.18-16.09 35.18 3.00 101031 Rice Brn US#1 Long Parboiled 24/2 LB 15.82 13.53-2.29 16.03 2.50 100329 Tomato Diced 6/10 16.91 14.83-2.08 18.66 3.83 100330 Tomato Salsa 6/10 18.49 19.23 0.74 23.21 3.98 Frozen/Cooler 100158 Beef Fine Ground 40 LB 94.33 89.12-5.21 93.12 4.00 100162 Beef Lean Patty 40 LB 94.58 96.74 2.16 100.74 4.00 100130 Beef Patty Home-style 40 LB 96.13 102.44 6.31 106.44 4.00 100244 Blueberry Cultivated 30 LB 18.64 42.57 23.93 45.57 3.00 100243 Blueberry Wild 30 LB 27.29 27.29 0 30.29 3.00 100037 Cheese Blend Amer Skm Wht Slc 6/5 LB 53.80 57.90 4.1 60.90 3.00 100036 Cheese Blend Amer Skm Yel Slc 6/5 LB 53.77 57.22 3.45 60.22 3.00 100012 Cheese Ched Rud Fat Yel Shred 6/5 LB 59.94 65.06 5.12 68.06 3.00 100021 Cheese Moz SKM Shrd BOX 30 LB 58.24 64.83 6.59 67.83 3.00 100101 Chicken Diced 40 LB 86.62 94.58 7.96 98.58 4.00 100117 Chicken Fajita 30 LB 64.60 59.92-4.68 62.92 3.00 100241 Peach Cup 96/4.4 OZ 28.14 28.51 0.37 31.15 2.64 100358 Potato Rounds 6/5 LB 16.19 14.60-1.59 17.60 3.00 100184 Pork Ham Boneless Fully Cooked 4/10 LB 62.11 56.08-6.03 60.08 4.00 100187 Pork Ham, Cooked Thin Sliced 8/5 LB 80.88 69.74-11.14 73.74 4.00 100256 Strawberry Cup 96/4.5 OZ 34.00 35.29 1.29 37.99 2.70 100353 Sweet Potatoes Random Cut 6/5 LB 20.96 17.17-3.79 20.17 3.00 100121 Turkey Breast Deli 40 LB 117.35 81.04-36.31 85.04 4.00 100125 Turkey Roast 32-48 LB 84.05 79.60-4.45 83.60 4.00