USDA Foods. Any USDA Foods received (when the foods arrive at the SFA’s kitchen, SFA’s storage facility, or Vendor storage facility in either raw form or in processed end products) by the SFA and made available to the Vendor must accrue solely to the benefit of USDA Child Nutrition programs if applicable, and shall be fully utilized therein. The Vendor shall have records available to substantiate that the full value of all USDA Foods is used solely for the benefit of the SFA. The SFA shall retain title to all USDA Foods. USDA Foods allocated to the SFA will be delivered to and utilized by the Vendor equitably for lunches served to students at the SFA. Vendor Responsibility—the Vendor will conduct all activities relating to USDA Foods for which it is responsible in accordance with 7 CFR Parts 210, 220, 225, 226, and 250 as applicable. This will include but is not limited by the following; The Vendor must credit the SFA for the value of all USDA Foods received for use in the SFA’s meal service in the school year or fiscal year (including both entitlement and bonus foods), and including the value of USDA Foods contained in processed end products, in accordance with the contingencies in 7 CFR 250.51(a); The Vendor must credit the SFA for all discounts or rebates for USDA Foods purchases made on its behalf. All refunds received from processors must be retained by the nonprofit SFA account. The Vendor shall provide the method and frequency by which crediting will occur, and the means of documentation to be utilized to verify that the value of all USDA Foods has been credited; The Vendor shall use the USDA Foods values as posted on DPI’s USDA Foods website including the value of bonus USDA Foods; The Vendor shall be responsible for activities related to USDA Foods in accordance with 7 CFR 250.50(d), and must assure that such activities are performed in accordance with the applicable requirements in 7 CFR part 250; The Vendor will use all USDA Foods ground beef and ground pork products, and all processed end products, without substitution, in the SFA’s food service; The Vendor will use all other USDA Foods, or will use commercially purchased foods of the same generic identity, of U.S. origin, and of equal or better quality than the USDA Foods, in the SFA’s food service; The Vendor will not itself enter into the processing agreement with the processor required in subpart C of 7 CFR part 250; The Vendor will comply with the storage and inventory requirements for USDA Foods; The Vendor will ensure that its system of inventory management will not result in the SFA being charged for USDA Foods; The Vendor will maintain records to document its compliance with requirements relating to USDA Foods, in accordance with 7 CFR 250.54(b); The Vendor shall accept liability for any negligence on its part that results in any loss of, improper use of, or damage to USDA Foods; The Vendor shall accept and use USDA Foods in as large quantities as may be efficiently utilized in the SFA’s nonprofit food service, subject to approval of the SFA. The SFA shall consult with the Vendor in the selection of USDA Foods; however, the final determination as to the acceptance of USDA Foods must be made by the SFA; The Vendor shall account for all USDA Foods separately from purchased foods. The Vendor is required to maintain accurate and complete records with respect to the receipt, use/disposition, storage, and inventory of USDA Foods. Failure by the Vendor to maintain the required records under this agreement shall be considered prima facie evidence of improper distribution or loss of USDA Foods. Vendor shall order only those USDA Foods that can be incorporated into its meals. Attachment H (cont’d) USDA Foods Handling Charges The SFA’s monthly USDA Foods handling charges [including storage, delivery (if applicable), administration and processing fees (if applicable)] will be deducted by DPI from the SFA’s monthly Federal reimbursement. The Vendor is responsible for USDA Foods handling charges and must reimburse the SFA monthly for USDA Foods handling charges.
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