PART 250—DONATION OF FOODS FOR USE IN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS AND AREAS UNDER ITS JURISDICTION Authority: 5 U.S.C. 301; 7 U.S.C. 612c, 612c note, 1431, 1431b, 1431e, 1431 note, 1446a-1, 1859, 2014, 2025; 15 U.S.C. 713c; 22 U.S.C. 1922; 42 U.S.C. 1751, 1755, 1758, 1760, 1761, 1762a, 1766, 3030a, 5179, 5180. Source: 53 FR 20426, June 3, 1988, unless otherwise noted. Subpart A—General Purpose and Administration Source: 81 FR 23100, Apr. 19, 2016, unless otherwise noted. § 250.1 Purpose and use of donated foods. (a) Purpose. (1) Authorizing donated food assistance in specific programs ( e.g., (2) Authorizing the removal of surplus foods from the market or the support of food prices ( i.e., (b) Use of donated foods. e.g., e.g., (1) Sold or exchanged, or otherwise disposed of, unless approved by FNS, or specifically permitted elsewhere in this part or in other Federal regulations ( e.g., (2) Used to require recipients to make any payments or perform any services in exchange for their receipt, unless approved by FNS, or specifically permitted elsewhere in this part or in other Federal regulations; or (3) Used to solicit voluntary contributions in connection with their receipt, except for donated foods provided in the Nutrition Services Incentive Program (NSIP). (c) Legislative sanctions. § 250.2 Definitions. 2 CFR part 200 ACL Administering agency Adult care institution Backhauling Bonus foods CACFP Carrier Charitable institutions Child care institution Child nutrition program Commingling Commodity offer value Commodity school Consignee e.g., Contract value of the donated foods CSFP Department DHHS Disaster Disaster organization Distributing agency e.g., e.g., Distribution charge Distributor Donated foods Elderly nutrition project Eligible persons (1) Economic status; (2) Eligibility for a specific food assistance program; or (3) Eligibility as survivors of a disaster or a situation of distress. End product End product data schedule Entitlement Entitlement foods FDPIR Federal acceptance service (1) The applicable grading branches of the Department's Agricultural Marketing Service (AMS); (2) The Department's Federal Grain Inspection Service; and (3) The National Marine Fisheries Service of the U.S. Department of Commerce. Fiscal year FNS Food recall Food service management company Household (1) An individual living alone; (2) An individual living with others, but customarily purchasing food and preparing meals for home consumption separate and apart from the others; (3) A group of individuals living together who customarily purchase and prepare meals in common for home consumption; and (4) Other individuals or groups of individuals, as provided in FNS regulations specific to particular food assistance programs. Household programs In-kind replacement In-State processing agreement In-State processor Multi-food shipment Multi-State processor National per-meal value National processing agreement Nonprofit organization Nonprofit school food service NSIP NSLP Out-of-condition donated foods Performance supply and surety bond Processing (1) Convert donated foods into an end product; (2) Repackage donated foods; or (3) Use donated foods in the preparation of meals. Processor Recipient agencies Recipients Recipient agency processing agreement Reimbursable meals Replacement value SAE funds SBP School food authority School year Section 4(a) Section 6 Section 14 Section 27 Section 32 Section 311 Section 416 Section 709 Service institution SFSP Similar replacement e.g., Single inventory management Situation of distress SNAP Split shipment State State Participation Agreement State Unit on Aging (1) The State agency that has been approved by DHHS to administer NSIP; or (2) The Indian Tribal Organization that has been approved by DHHS to administer NSIP. Storage facility Subdistributing agency Substitution (1) The replacement of donated foods with like quantities of domestically produced commercial foods of the same generic identity and of equal or better quality. (2) A processor can substitute commercial product for donated food, as described in paragraph (1) of this definition, without restrictions under full substitution. The processor must return to the contracting agency, in finished end products, the same number of pounds of donated food that the processor originally received for processing under full substitution. This is the 100-percent yield requirement. (3) A processor can substitute commercial product for donated foods, as described in paragraph (1) of this definition, with some restrictions under limited substitution. Restrictions include, but are not limited to, the prohibition against substituting for backhauled poultry product. FNS may also prohibit substitution of certain types of the same generic food. (For example, FNS may decide to permit substitution for bulk chicken but not for canned chicken.) Summer camp TEFAP USDA Foods USDA implementing regulations Vendor [81 FR 23100, Apr. 19, 2016, as amended at 83 FR 18926, May 1, 2018] § 250.3 Administration at the Federal level. (a) Food and Nutrition Service. (b) Audits or inspections. (c) Suspension or termination. e.g., § 250.4 Administration at the State level. (a) Distributing agency. Federal-State Agreement, (b) Subdistributing agency. (c) Recipient agencies. e.g., (1) Ensure compliance with the applicable requirements in this part, with other Federal regulations referenced in this part, and with the distributing agency's written agreement with FNS; (2) Ensure compliance with all requirements relating to food safety and food recalls; (3) Establish the duration of the agreement. The duration of the agreement may be established as permanent, but may be amended at the initiation of distributing agencies; (4) Permit termination of the agreement by the distributing agency for failure of the recipient agency (or subdistributing agency, as applicable) to comply with its provisions or applicable requirements, upon written notification to the applicable party; and (5) Permit termination of the agreement by either party, upon written notification to the other party, at least 60 days prior to the effective date of termination. (d) Procurement of services of commercial enterprises. § 250.5 Civil rights. Distributing agencies, subdistributing agencies and recipient agencies must comply with the Department's nondiscrimination regulations (7 CFR parts 15, 15a, and 15b) and the FNS civil rights instructions to ensure that in the operation of the program no person is discriminated against on protected bases as such bases apply to each program. Subpart B—Delivery, Distribution, and Control of Donated Foods Source: 81 FR 23104, Apr. 19, 2016, unless otherwise noted. § 250.10 Availability and ordering of donated foods. (a) Ordering donated foods. (b) Provision of information on donated foods. (1) The types and quantities of donated foods that they may order; (2) Donated food specifications and nutritional value; and (3) Procedures for the disposition of donated foods that are out-of-condition or that are subject to a food recall. (c) Normal food expenditures. § 250.11 Delivery and receipt of donated food shipments. (a) Delivery. (b) Receipt of shipments. (c) Replacement of donated foods. (1) Approve payment by the vendor to the distributing or recipient agency, as appropriate, for the value of the donated foods at time of delivery (or at another value determined by FNS); or (2) Credit the distributing agency's entitlement, as feasible. (d) Payment of costs relating to shipments. e.g., (e) Transfer of title. [81 FR 23100, Apr. 19, 2016, as amended at 83 FR 18927, May 1, 2018] § 250.12 Storage and inventory management at the distributing agency level. (a) Safe storage and control. (b) Inventory management. (c) Inventory limitations. (1) For TEFAP, NSLP and other child nutrition programs, inventories of each category of donated food may not exceed an amount needed for a six-month period, based on an average amount of donated foods utilized in that period; and (2) For CSFP and FDPIR, inventories of each category of donated food in the food package may not exceed an amount needed for a three-month period, based on an average amount of donated food that the distributing agency can reasonably utilize in that period to meet CSFP caseload or FDPIR average participation. (d) Inventory protection. (1) Subdistributing agencies; (2) Recipient agencies in household programs that have an agreement with the distributing agency or subdistributing agency to store and distribute foods (except those recipient agencies which maintain inventories with a value of donated foods that do not exceed a defined threshold, as determined in FNS policy); and (3) Commercial storage facilities under contract with the distributing agency or with an agency identified in paragraph (d)(1) or (2) of this section. (e) Transfer of donated foods. (f) Commercial storage facilities or carriers. (1) Assure storage, management, and transportation of donated foods in a manner that properly safeguards them against theft, spoilage, damage, or other loss, in accordance with the requirements in this part; (2) Assure compliance with all Federal, State, or local requirements relative to food safety and health, including required health inspections, and procedures for responding to a food recall; (3) Assure storage of donated foods in a manner that distinguishes them from other foods, and assure separate inventory recordkeeping of donated foods; (4) Assure distribution of donated foods to eligible recipient agencies in a timely manner, in optimal condition, and in amounts for which such recipient agencies are eligible; (5) Include the amount of insurance coverage obtained to protect the value of donated foods; (6) Permit the performance of on-site reviews of the storage facility by the distributing agency, the Comptroller General, the Department of Agriculture, or any of its duly authorized representatives, in order to determine compliance with requirements in this part; (7) Establish the duration of the contract, and provide for extension or renewal of the contract only upon fulfillment of all contract provisions; (8) Provide for expeditious termination of the contract by the distributing agency for noncompliance with its provisions; and (9) Provide for termination of the contract by either party for other cause, after written notification of such intent at least 60 days prior to the effective date of such action. § 250.13 Efficient and cost-effective distribution of donated foods. (a) Direct shipments. (1) Shipments of donated foods directly from USDA vendors to recipient agencies, including two or more recipient agencies acting as a collective unit (such as a school co-op), or to the commercial storage facilities of such agencies; (2) Shipments of donated foods directly from USDA vendors to processors for processing of donated foods and sale of end products to recipient agencies, in accordance with subpart C of this part; and (3) The use of split shipments, as defined in § 250.2, in arranging for delivery of donated foods to recipient agencies that cannot accept a full truckload. (b) Distributing agency storage and distribution charge. (2) The distributing agency must utilize State Administrative Expense (SAE) funds in child nutrition programs, as available, to meet the costs of storing and distributing donated foods for school food authorities or other recipient agencies in child nutrition programs, and administrative costs related to such activities, in accordance with 7 CFR part 235. If SAE funds, or any other Federal or State funds received for such purpose, are insufficient to fully meet the distributing agency's costs of storing and distributing donated foods, and related administrative costs ( e.g., (c) FNS approval of amount of State distributing agency distribution charge to school food authorities and other recipient agencies in child nutrition programs. e.g., (d) FNS review authority. § 250.14 Storage and inventory management at the recipient agency level. (a) Safe storage and control. (b) Inventory management—household programs. (c) Inventory management—child nutrition programs and charitable institutions. i.e., (d) Transfer of donated foods to another recipient agency. e.g., e.g., (e) Commercial storage facilities. § 250.15 Out-of-condition donated foods, food recalls, and complaints. (a) Out-of-condition donated foods at the distributing agency level. e.g., (b) Out-of-condition donated foods at the recipient agency level. (c) Food recalls. (d) Complaints relating to donated foods. § 250.16 Claims and restitution for donated food losses. (a) Distributing agency responsibilities. (b) FNS claim actions. § 250.17 Use of funds obtained incidental to donated food distribution. (a) Distribution charge. (b) Processing and food service management company contracts. e.g., (c) Claims and other sources. (1) The salvage of out-of-condition donated foods. (2) The sale of donated food containers, pallets, or packing materials. (3) Payments by processors for failure to meet processing yields or other cause. (d) Prohibitions. (e) Buy American. (1) Agricultural commodities that are produced in the United States; or (2) Food products that are processed in the United States substantially using agricultural commodities that are produced in the United States. § 250.18 Reporting requirements. (a) Inventory and distribution of donated foods. Monthly Distribution of Donated Foods to Family Units. Inventory Management Register. (b) Processor performance. (c) Disasters and situations of distress. Report of Commodity Distribution for Disaster Relief, (d) Other information. [81 FR 23100, Apr. 19, 2016, as amended at 83 FR 18927, May 1, 2018] § 250.19 Recordkeeping requirements. (a) Required records. (b) Retention of records. [81 FR 23100, Apr. 19, 2016, as amended at 83 FR 18927, May 1, 2018] § 250.20 Audit requirements. (a) Requirements for distributing and recipient agencies. (b) Requirements for processors. (1) Annually, if it receives, on average, more than $5,000,000 in donated foods for processing per year; (2) Every two years, if it receives, on average, between $1,000,000 and $5,000,000 in donated foods for processing per year; or (3) Every three years, if it receives, on average, less than $1,000,000 in donated foods for processing per year. (c) Post-audit actions required of processors. (d) Failure to meet audit requirements. § 250.21 Distributing agency reviews. (a) Scope of review requirements. (b) On-site reviews. (1) Charitable institutions, whenever the distributing agency identifies actual or probable deficiencies in the use of donated foods by such institutions, through audits, investigations, complaints, or any other information; (2) Storage facilities at the distributing agency level (including commercial storage facilities under contract with the distributing or subdistributing agency), on an annual basis; and (3) Subdistributing and recipient agencies in CSFP, TEFAP, and FDPIR, in accordance with 7 CFR parts 247, 251, and 253, respectively. (c) Identification and correction of deficiencies. § 250.22 Distributing agency performance standards. (a) Performance standards. (1) Provide recipient agencies with information on donated food availability, assistance levels, values, product specifications, and processing options, as requested; (2) Implement a request-driven ordering system, in accordance with § 250.10(a), and, for child nutrition programs, § 250.58(a); (3) Offer school food authorities in NSLP, at a minimum, the commodity offer value of donated foods, in accordance with § 250.58; (4) Provide for the storage, distribution, and control of donated foods in accordance with all Federal, State, or local requirements relating to food safety and health; (5) Provide for the distribution of donated foods in the most efficient and cost-effective manner, including, to the extent practical, direct shipments from vendors to recipient agencies or processors, and the use of split shipments; (6) Use SAE funds, or other Federal or State funds, as available, in paying State storage and distribution costs for child nutrition programs, and impose a distribution charge on recipient agencies in child nutrition programs only to the extent that such funds are insufficient to meet applicable costs; (7) Provide for the processing of donated foods, at the request of school food authorities, in accordance with subpart C of this part, including the testing of end products with school food authorities, and the solicitation of acceptability input, when procuring end products on behalf of school food authorities or otherwise limiting the procurement of end products; and (8) Provide recipient agencies information regarding the preferred method for submission of donated foods complaints to the distributing agency and act expeditiously to resolve submitted complaints. (b) Corrective action plan. (c) Termination or suspension. Subpart C—Processing of Donated Foods Source: 83 FR 18927, May 1, 2018, unless otherwise noted. § 250.30 Processing of donated foods into end products. (a) Purpose of processing donated foods. (b) Agreement requirement. (c) National Processing Agreement. (d) State Participation Agreement. (1) The nutritional contribution provided by end products; (2) The marketability or acceptability of end products; (3) The means by which end products will be distributed; (4) Price competitiveness of end products and processing yields of donated foods; (5) Any applicable labeling requirements; and (6) The processor's record of ethics and integrity, and capacity to meet regulatory requirements. (e) In-State Processing Agreement. (1) The nutritional contribution provided by end products; (2) The marketability or acceptability of end products; (3) The means by which end products will be distributed; (4) Price competitiveness of end products and processing yields of donated foods; (5) Any applicable labeling requirements; and (6) The processor's record of ethics and integrity, and capacity to meet regulatory requirements. (f) Recipient Agency Processing Agreement. (1) The nutritional contribution provided by end products; (2) The marketability or acceptability of end products; (3) The means by which end products will be distributed; (4) Price competitiveness of end products and processing yields of donated foods; (5) Any applicable labeling requirements; and (6) The processor's record of ethics and integrity, and capacity to meet regulatory requirements. (g) Ensuring acceptability of end products. (h) Prohibition against subcontracting. i.e., (i) Agreements between processors and distributors. i.e., (j) Duration of agreements. § 250.31 Procurement requirements. (a) Applicability of Federal procurement requirements. (b) Required information in procurement documents. (1) The price to be charged for the end product or other processing service; (2) The method of end product sales that will be utilized and assurance that crediting for donated foods will be performed in accordance with the applicable requirements for such method of sales in § 250.36; (3) The value of the donated food in the end products; and (4) The location for the delivery of the end products. § 250.32 Protection of donated food value. (a) Performance bond or irrevocable letter of credit. (b) Calling in the performance bond or letter of credit. § 250.33 Ensuring processing yields of donated foods. (a) End product data schedules. (1) A description of the end product; (2) The types and quantities of donated foods included; (3) The types and quantities of other ingredients included; (4) The quantity of end product produced; and (5) The processing yield of donated food, which may be expressed as the quantity (pounds or cases) of donated food needed to produce a specific quantity of end product or as the percentage of raw donated food versus the quantity returned in the finished end product. (b) Processing yields of donated foods. (1) Under 100 percent yield, the processor must ensure that 100 percent of the raw donated food is returned in the finished end product. The processor must replace any processing loss of donated food with commercially purchased food of the same generic identity, of U.S. origin, and equal or better in all USDA procurement specifications than the donated food. The processor must demonstrate such replacement by reporting reductions in donated food inventories on performance reports by the amount of donated food contained in the finished end product rather than the amount that went into production. The Department may approve an exception if a processor experiences a significant manufacturing loss. (2) Under guaranteed yield, the processor must ensure that a specific quantity of end product ( i.e., i.e., (3) Under standard yield, the processor must ensure that a specific quantity of end product ( i.e., (c) Compensation for loss of donated foods. (1) Replace the lost donated food or commercial substitute with commercially purchased food of the same generic identity, of U.S. origin, and equal or better in all USDA procurement specifications than the donated food; or (2) Return end products that are wholesome but do not meet required specifications to production for processing into the requisite quantity of end products that meet the required specifications (commonly called rework products); or (3) If the purchase of replacement foods or the reprocessing of products that do not meet the required specifications is not feasible, the processor may, with FNS, distributing agency, or recipient agency approval, dependent on which entity maintains the agreement with the processor, pay the distributing or recipient agency, as appropriate, for the replacement value of the donated food or commercial substitute. (d) Credit for sale of by-products. (e) Labeling requirements. § 250.34 Substitution of donated foods. (a) Substitution of commercially purchased foods for donated foods. (b) Prohibition against substitution and other requirements for backhauled donated foods. (c) Grading requirements. (d) Waiver of grading requirements. e.g., (1) That even with ample notification time, the processor cannot secure the services of a grader; (2) The cost of the grader's service in relation to the value of donated beef, pork or poultry being processed would be excessive; or (3) The distributing or recipient agency's urgent need for the product leaves insufficient time to secure the services of a grader. (e) Use of substituted donated foods. § 250.35 Storage, food safety, quality control, and inventory management. (a) Storage and quality control. (b) Food safety requirements. (c) Commingling of donated foods and commercially purchased foods. e.g., (d) Limitation on donated food inventories. e.g., (e) Reconciliation of excess donated food inventories. (f) Disposition of donated food inventories upon agreement termination. (1) Return the donated foods, or commercially purchased foods that meet the substitution requirements in § 250.34, to the distributing or recipient agency, as appropriate; or (2) Transfer the donated foods, or commercially purchased foods that meet the substitution requirements in § 250.34, to another distributing or recipient agency with which it has a processing agreement; or (3) If returning or transferring the donated foods, or commercially purchased foods that meet the substitution requirements in § 250.34, is not feasible, the processor may, with FNS approval, pay the distributing or recipient agency, as appropriate, for the donated foods, at the contract value or replacement value of the donated foods, whichever is higher. § 250.36 End product sales and crediting for the value of donated foods. (a) Methods of end product sales. (b) Refund or rebate. (c) Direct discount. (d) Indirect discount. (e) Fee-for-service. (i) Direct shipment and invoicing from the processor to the recipient agency; (ii) Fee-for-service through a distributor, where the processor ships multiple pallets of product to a distributor with a breakout of who owns what products; and (iii) What is commonly known as Modified Fee-for-service, when the recipient agency has an authorized agent bill them for the total case price. (2) The processor must identify any charge for delivery of end products separately from the fee-for-service on its invoice. If the processor provides end products sold under fee-for-service to a distributor for delivery to the distributing or recipient agency, the processor must identify the distributor's delivery charge separately from the fee-for-service on its invoice to the appropriate agency or may permit the distributor to bill the agency separately for the delivery of end products. The processor must require that the distributor notify it of such sales, at least on a monthly basis, through automated sales reports, email, or other electronic or written submission. When the recipient agency procures storage and distribution of processed end products separately from the processing of donated foods, the recipient agency may provide the distributor written approval to act as the recipient agency's authorized agent for the total case price ( i.e., (f) Approved alternative method. (g) Donated food value used in crediting. (h) Ensuring sale and delivery of end products to eligible recipient agencies. (1) The quantities of approved end products that each recipient agency is eligible to receive; or (2) The quantity of donated food allocated to each recipient agency and the raw donated food (pounds or cases) needed per case of each approved end product. § 250.37 Reports, records, and reviews of processor performance. (a) Performance reports. (1) A list of all recipient agencies purchasing end products; (2) The quantity of donated foods in inventory at the beginning of the reporting period; (3) The quantity of donated foods received; (4) The quantity of donated foods transferred to the processor from another entity, or transferred by the processor to another entity; (5) The quantity of donated foods losses; (6) The quantity of end products delivered to each eligible recipient agency; (7) The quantity of donated foods remaining at the end of the reporting period; (8) A certification statement that sufficient donated foods are in inventory or on order to account for the quantities needed for production of end products; (9) Grading certificates, as applicable; and (10) Other supporting documentation, as required by the distributing agency or recipient agency. (b) Reporting reductions in donated food inventories. (c) Summary performance report. (1) The total donated food inventory by State and the national total at the beginning of the reporting period; (2) The total quantity of donated food received by State, with year-to-date totals, and the national total of donated food received; (3) The total quantity of donated food reduced from inventory by State, with year-to-date totals, and the national total of donated foods reduced from inventory; and (4) The total quantity of donated foods remaining in inventory by State, and the national total, at the end of the reporting period. (d) Recordkeeping requirements for processors. (1) End product data schedules and summary end product data schedules, as applicable; (2) Receipt of donated foods shipments; (3) Production, sale, and delivery of end products, including sales through distributors; (4) All agreements with distributors; (5) Remittance of refunds, invoices, or other records that assure crediting for donated foods in end products and for sale of byproducts; (6) Documentation of Federal or State inspection of processing facilities, as appropriate, and of the maintenance of an effective quality control system; (7) Documentation of substitution of commercial foods for donated foods, including grading certificates, as applicable; (8) Waivers of grading requirements, as applicable; and (9) Required reports. (e) Recordkeeping requirements for the distributing agency. (1) In-State Processing Agreements and State Participation Agreements; (2) End product data schedules or summary end product data schedules, as applicable; (3) Performance reports; (4) Grading certificates, as applicable; (5) Documentation that supports information on the performance report, as required by the distributing agency ( e.g., (6) Copies of audits of in-State processors and documentation of the correction of any deficiencies identified in such audits; (7) The receipt of end products, as applicable; and (8) Procurement documents, as applicable. (f) Recordkeeping requirements for the recipient agency. (1) The receipt of end products purchased from processors or distributors; (2) Crediting for the value of donated foods contained in end products; (3) Recipient Agency Processing Agreements, as applicable, and, in accordance with such agreements, other records included in paragraph (e) of this section, if not retained by the distributing agency; and (4) Procurement documents, as applicable. (g) Review requirements for the distributing agency. (1) Receives donated food shipments; (2) Delivers end products to eligible recipient agencies, in the types and quantities for which they are eligible; (3) Meets the required processing yields for donated foods; and (4) Accurately reports donated food inventory activity and maintains inventories within approved levels. § 250.38 Provisions of agreements. (a) National Processing Agreement. (b) Required provisions for State Participation Agreement. (1) Contact information for all appropriate parties to the agreement; (2) The effective dates of the agreement; (3) A list of recipient agencies eligible to receive end products; (4) Summary end product data schedules, with end products that may be sold in the State; (5) Assurance that the processor will not substitute or commingle backhauled donated foods and will provide end products processed from such donated foods only to the distributing or recipient agency from which the foods were received; (6) Any applicable labeling requirements; (7) Other processing requirements implemented by the distributing agency, such as the specific method(s) of end product sales permitted; (8) A statement that the agreement may be terminated by either party upon 30 days' written notice; (9) A statement that the agreement may be terminated immediately if the processor has not complied with its terms and conditions; and (10) A statement requiring the processor to enter into an agreement with any and all distributors delivering processed end products to recipient agencies that ensures adequate data sharing, reporting, and crediting of donated foods, in accordance with § 250.30(i). (c) Required provisions of the In-State Processing Agreement. (1) Contact information for all appropriate parties to the agreement; (2) The effective dates of the agreement; (3) A list of recipient agencies eligible to receive end products, as applicable; (4) In the event that subcontracting is allowed, the specific activities that will be performed under subcontracts; (5) Assurance that the processor will provide a performance bond or irrevocable letter of credit to protect the value of donated foods it is expected to maintain in inventory, in accordance with § 250.32; (6) End product data schedules for all end products, with all required information, in accordance with § 250.33(a); (7) Assurance that the processor will meet processing yields for donated foods, in accordance with § 250.33; (8) Assurance that the processor will compensate the distributing or recipient agency, as appropriate, for any loss of donated foods, in accordance with § 250.33(c); (9) Any applicable labeling requirements; (10) Assurance that the processor will meet requirements for the substitution of commercially purchased foods for donated foods, including grading requirements, in accordance with § 250.34; (11) Assurance that the processor will not substitute or commingle backhauled donated foods and will provide end products processed from such donated foods only to the recipient agency from which the foods were received, as applicable; (12) Assurance that the processor will provide for the safe and effective storage of donated foods, meet inspection requirements, and maintain an effective quality control system at its processing facilities; (13) Assurance that the processor will report donated food inventory activity and maintain inventories within approved levels; (14) Assurance that the processor will return, transfer, or pay for, donated food inventories remaining upon termination of the agreement, in accordance with § 250.35(f); (15) The specific method(s) of end product sales permitted, in accordance with § 250.36; (16) Assurance that the processor will credit recipient agencies for the value of all donated foods, in accordance with § 250.36; (17) Assurance that the processor will submit performance reports and meet other reporting and recordkeeping requirements, in accordance with § 250.37; (18) Assurance that the processor will obtain independent CPA audits and will correct any deficiencies identified in such audits, in accordance with § 250.20; (19) A statement that the distributing agency, subdistributing agency, or recipient agency, the Comptroller General, the Department of Agriculture, or their duly authorized representatives, may perform on-site reviews of the processor's operation to ensure that all activities relating to donated foods are performed in accordance with the requirements in 7 CFR part 250; (20) A statement that the agreement may be terminated by either party upon 30 days' written notice; (21) A statement that the agreement may be terminated immediately if the processor has not complied with its terms and conditions; (22) A statement that extensions or renewals of the agreement, if applicable, are contingent upon the fulfillment of all agreement provisions; and (23) A statement requiring the processor to enter into an agreement with any and all distributors delivering processed end products to recipient agencies that ensures adequate data sharing, reporting, and crediting of donated foods, in accordance with § 250.30(i). (d) Required provisions for Recipient Agency Processing Agreement. e.g., e.g., (e) Noncompliance with processing requirements. § 250.39 Miscellaneous provisions. (a) Waiver of processing requirements. (b) Processing activity guidance. (1) Contract approval; (2) Monitoring and review of processing activities; (3) Recordkeeping and reporting requirements; (4) Inventory controls; and (5) Refund applications. (c) Guidance or information. Subpart D—Donated Foods in Contracts With Food Service Management Companies Source: 73 FR 46185, Aug. 8, 2008, unless otherwise noted. § 250.50 Contract requirements and procurement. (a) Contract requirements. (b) Types of contracts. (c) Procurement requirements. (d) Activities relating to donated foods. (1) Preparing and serving meals; (2) Ordering or selection of donated foods, in coordination with the recipient agency, and in accordance with § 250.58(a); (3) Storage and inventory management of donated foods, in accordance with § 250.52; and (4) Payment of processing fees or submittal of refund requests to a processor on behalf of the recipient agency, or remittance of refunds for the value of donated foods in processed end products to the recipient agency, in accordance with the requirements in subpart C of this part. [73 FR 46185, Aug. 8, 2008, as amended at 81 FR 23111, Apr. 19, 2016] § 250.51 Crediting for, and use of, donated foods. (a) Crediting for donated foods. (1) Procure processed end products on behalf of the recipient agency; or (2) Act as an intermediary in passing the donated food value in processed end products on to the recipient agency. (b) Method and frequency of crediting. (c) Donated food values required in crediting. (d) Use of donated foods. [73 FR 46185, Aug. 8, 2008, as amended at 81 FR 23111, Apr. 19, 2016] § 250.52 Storage and inventory management of donated foods. (a) General requirements. (b) Storage and inventory with commercially purchased foods. i.e., (c) Disposition of donated foods and credit reconciliation upon termination of the contract. [81 FR 23111, Apr. 19, 2016] § 250.53 Contract provisions. (a) Required contract provisions in fixed-price contracts. (1) A statement that the food service management company must credit the recipient agency for the value of all donated foods received for use in the recipient agency's meal service in the school year or fiscal year (including both entitlement and bonus foods), and including the value of donated foods contained in processed end products, in accordance with the contingencies in § 250.51(a); (2) The method and frequency by which crediting will occur, and the means of documentation to be utilized to verify that the value of all donated foods has been credited; (3) The method of determining the donated food values to be used in crediting, in accordance with § 250.51(c), or the actual donated food values; (4) Any activities relating to donated foods that the food service management company will be responsible for, in accordance with § 250.50(d), and assurance that such activities will be performed in accordance with the applicable requirements in 7 CFR part 250; (5) A statement that the food service management company will use all donated beef and pork products, and all processed end products, in the recipient agency's food service; (6) A statement that the food service management company will use all other donated foods, or will use commercially purchased foods of the same generic identity, of U.S. origin, and of equal of better quality than the donated foods, in the recipient agency's food service; (7) Assurance that the procurement of processed end products on behalf of the recipient agency, as applicable, will ensure compliance with the requirements in subpart C of 7 CFR part 250 and with the provisions of distributing or recipient agency processing agreements, and will ensure crediting of the recipient agency for the value of donated foods contained in such end products at the processing agreement value; (8) Assurance that the food service management company will not itself enter into the processing agreement with the processor required in subpart C of 7 CFR part 250; (9) Assurance that the food service management company will comply with the storage and inventory requirements for donated foods; (10) A statement that the distributing agency, subdistributing agency, or recipient agency, the Comptroller General, the Department of Agriculture, or their duly authorized representatives, may perform onsite reviews of the food service management company's food service operation, including the review of records, to ensure compliance with requirements for the management and use of donated foods; (11) A statement that the food service management company will maintain records to document its compliance with requirements relating to donated foods, in accordance with § 250.54(b); and (12) A statement that extensions or renewals of the contract, if applicable, are contingent upon the fulfillment of all contract provisions relating to donated foods. (b) Required contract provisions in cost-reimbursable contracts. [73 FR 46185, Aug. 8, 2008, as amended at 81 FR 23111, Apr. 19, 2016] § 250.54 Recordkeeping and reviews. (a) Recordkeeping requirements for the recipient agency. (1) The donated foods and processed end products received and provided to the food service management company for use in the recipient agency's food service; (2) Documentation that the food service management company has credited it for the value of all donated foods received for use in the recipient agency's food service in the school or fiscal year, including, in accordance with the requirements in § 250.51(a), the value of donated foods contained in processed end products; and (3) The actual donated food values used in crediting. (b) Recordkeeping requirements for the food service management company. (1) The donated foods and processed end products received from, or on behalf of, the recipient agency, for use in the recipient agency's food service; (2) Documentation that it has credited the recipient agency for the value of all donated foods received for use in the recipient agency's food service in the school or fiscal year, including, in accordance with the requirements in § 250.51(a), the value of donated foods contained in processed end products; and (3) Documentation of its procurement of processed end products on behalf of the recipient agency, as applicable. (c) Review requirements for the recipient agency. (d) Departmental reviews of food service management companies. Subpart E—National School Lunch Program (NSLP) and Other Child Nutrition Programs Source: 73 FR 46185, Aug. 8, 2008, unless otherwise noted. § 250.56 Provision of donated foods in NSLP. (a) Distribution of donated foods in NSLP. (b) Types of donated foods distributed. (c) National per-meal value of donated foods. Federal Register (d) Donated food values used to credit distributing agency entitlement levels. (e) Cash in lieu of donated foods. § 250.57 Commodity schools. (a) Categorization of commodity schools. (b) Value of donated foods for commodity schools. § 250.58 Ordering donated foods and their provision to school food authorities. (a) Ordering and distribution of donated foods. (b) Value of donated foods offered to school food authorities. (c) Receipt of less donated foods than the commodity offer value. (1) The distributing agency, in consultation with the school food authority, determines that the school food authority cannot efficiently utilize the commodity offer value of donated foods; or (2) The school food authority does not order, or select, donated foods equal to the commodity offer value that can be cost-effectively distributed to it. (d) Receipt of more donated foods than the commodity offer value. (e) Donated food value in crediting. [73 FR 46185, Aug. 8, 2008, as amended at 81 FR 23111, Apr. 19, 2016] § 250.59 Storage, control, and use of donated foods. (a) Storage and inventory management. (b) Use of donated foods in the nonprofit school food service. (1) School breakfasts or other meals served in child nutrition programs; (2) A la carte foods sold to schoolchildren; (3) Meals served to adults directly involved in the operation and administration of the nonprofit school food service, and to other school staff; and (4) Training in nutrition, health, food service, or general home economics instruction for students. (c) Use of donated foods outside of the nonprofit school food service. e.g., e.g., e.g., (d) Use of donated foods in a contract with a food service management company. (e) School food authorities acting as a collective unit. e.g., [81 FR 23111, Apr. 19, 2016] § 250.60 Child and Adult Care Food Program (CACFP). (a) Distribution of donated foods in CACFP. (b) Types and quantities of donated foods distributed. Federal Register (c) Cash in lieu of donated foods. (d) Use of donated foods in a contract with a food service management company. (e) Applicability of other requirements in this subpart to CACFP. [73 FR 46185, Aug. 8, 2008. Redesignated and amended at 81 FR 23112, Apr. 19, 2016] § 250.61 Summer Food Service Program (SFSP). (a) Distribution of donated foods in SFSP. (b) Types and quantities of donated foods distributed. (c) Distribution of donated foods to service institutions in SFSP. (d) Use of donated foods in a contract with a food service management company. (e) Applicability of other requirements in this subpart to SFSP. [73 FR 46185, Aug. 8, 2008. Redesignated and amended at 81 FR 23112, Apr. 19, 2016] Subpart F—Household Programs Source: 81 FR 23112, Apr. 19, 2016, unless otherwise noted. § 250.63 Commodity Supplemental Food Program (CSFP). (a) Distribution of donated foods in CSFP. i.e., i.e., (b) Types of donated foods distributed. § 250.64 The Emergency Food Assistance Program (TEFAP). (a) Distribution of donated foods in TEFAP. i.e., (b) Types of donated foods distributed. § 250.65 Food Distribution Program on Indian Reservations (FDPIR). (a) Distribution of donated foods in FDPIR. i.e., (b) Types of donated foods distributed. § 250.66 [Reserved] Subpart G—Additional Provisions § 250.67 Charitable institutions. (a) Distribution to charitable institutions. (1) Schools, summer camps, service institutions, and child and adult care institutions that participate in child nutrition programs or as commodity schools; and (2) Adult correctional institutions that do not conduct rehabilitation programs for a majority of inmates. (b) Types of charitable institutions. (1) Hospitals or retirement homes; (2) Emergency shelters, soup kitchens, or emergency kitchens; (3) Elderly nutrition projects or adult day care centers; (4) Schools, summer camps, service institutions, and child care institutions that do not participate in child nutrition programs; and (5) Adult correctional institutions that conduct rehabilitation programs for a majority of inmates. (c) Determining service to predominantly needy persons. (1) Socioeconomic data of the area in which the organization is located, or of the clientele served by the organization; (2) Data from other public or private social service agencies, or from State advisory boards, such as those established in accordance with 7 CFR 251.4(h)(4); or (3) Other similar data. (d) Types and quantities of donated foods distributed. (e) Contracts with food service management companies. [73 FR 46184, Aug. 8, 2008] § 250.68 Nutrition Services Incentive Program (NSIP). (a) Distribution of donated foods in NSIP. (b) Types and quantities of donated foods distributed. (c) Role of distributing agency. (d) Donated food values used in crediting a State Unit on Aging's NSIP grant. (e) Coordination between FNS and ACL. [81 FR 23113, Apr. 19, 2016] § 250.69 Disasters. (a) Use of USDA Foods to provide congregate meals. (1) Notification of congregate meals activity to FNS. (2) Selection of disaster organizations for disaster congregate meal service by the distributing agency. (i) A description of the disaster situation; (ii) The number of people requiring assistance; (iii) The period of time for which USDA Foods are requested; (iv) The quantity and types of USDA Foods needed; and (v) The name, number, and location of sites where USDA Foods are to be used, to the extent that such information is known. (3) Eligibility of emergency relief workers for congregate meals. (b) Use of USDA Foods for distribution to households. (1) FNS approval of disaster household distribution. (i) A description of the disaster situation; (ii) The number of people requiring assistance; (iii) The period of time for which USDA Foods are requested; (iv) The quantity and types of USDA Foods needed; (v) The name, number, and location of sites where USDA Foods are to be used, to the extent that such information is known; (vi) An explanation as to why household distribution is needed; and (vii) The method(s) of distribution available. (2) Selection of a disaster organization for disaster household distribution of USDA Foods. (c) Limitation on impacts to other programs. (d) Reporting and recordkeeping requirements. (1) The number, names, and locations of sites where USDA Foods are used in congregate meals or household distribution as these sites are established. (2) The types and amounts of USDA Foods from distributing or recipient agency storage facilities used in disaster assistance, utilizing form FNS-292A, Report of Commodity Distribution for Disaster Relief, (3) If the distributing agency is operating disaster household distribution per 250.69(b), the distributing agency must submit a biweekly report to FNS, utilizing the format requested by FNS, for the approved disaster period. This report must be submitted electronically biweekly as long as the disaster household distribution continues operation. Biweekly reports must include: (i) The weekly distribution start and end dates; (ii) The total number of individual household members receiving assistance at all locations; (iii) Material identification codes for USDA Foods distributed; (iv) the USDA Foods description of the foods distributed; and (v) the total units of each food distributed. (e) Replacement of USDA Foods. Report of Commodity Distribution for Disaster Relief, i.e., (f) Reimbursement of transportation costs. [89 FR 87247, Oct. 31, 2024] § 250.70 Situations of distress. (a) Use of USDA Foods to provide congregate meals. (1) Notification of congregate meals activity to FNS. e.g., e.g., (2) Selection of disaster organizations for disaster congregate meal service by the distributing agency. (i) A description of the situation of distress; (ii) The number of people requiring assistance; (iii) The period of time for which USDA Foods are requested; (iv) The quantity and types of USDA Foods needed; and (v) The name, number, and location of sites where USDA Foods are to be used, to the extent that such information is known. (3) Eligibility of emergency relief workers for congregate meals. (b) Use of USDA Foods for distribution to households. (1) A description of the situation of distress; (2) The number of people requiring assistance; (3) The period of time for which USDA Foods are requested; (4) The quantity and types of USDA Foods needed; (5) The name, number, and location of sites where USDA Foods are to be used, to the extent that such information is known; (6) An explanation as to why household distribution is needed; and (7) The method(s) of distribution available. (c) Limitation on impacts to other programs. (d) Reporting and recordkeeping requirements. (1) The number, names, and locations of sites where USDA Foods are used in congregate meals or household distribution as these sites are established. (2) The distributing agency must also report the types and amounts of USDA Foods from distributing or recipient agency storage facilities used in the situation of distress, utilizing form FNS-292A, Report of Commodity Distribution for Disaster Relief, (3) If the distributing agency is operating disaster household distribution per 250.70(b), the distributing agency must submit a biweekly report to FNS, utilizing the format requested by FNS, for the approved disaster period. This report must be submitted electronically biweekly as long as the disaster household distribution continues operation. Biweekly reports must include: (i) The weekly distribution start and end dates; (ii) The total number of individual household members receiving assistance at all locations; (iii) Material identification codes for USDA Foods distributed; (iv) The USDA Foods description of the foods distributed; and (v) The total units of each food distributed. (e) Replacement of USDA Foods. Report of Commodity Distribution for Disaster Relief, i.e., (f) Reimbursement of transportation costs. [89 FR 87248, Oct. 31, 2024] § 250.71 OMB control numbers. Unless as otherwise specified in the table in this section, the information collection reporting and recordkeeping requirements in 7 CFR part 250 are accounted for in OMB control number 0584-0293. CFR Cite OMB Control No. § 250.4(a) 0584-0067 § 250.19(a) 0584-0067, 0584-0293 §§ 250.69(f) and (g) and 250.70(f) and (g) 0584-0067, 0584-0293 [81 FR 23114, Apr. 19, 2016]