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BUY AMERICAN ACT

Today’s Moderator

Toni Vega Aiken

Senior Manager, Professional Development

School Nutrition Association

Questions & Answers

• 75 minutes

• Q&A at the conclusion

• Type your questions into the “Question” box at any time during the webinar

• Questions will be addressed during the webinar and at the end as time allows

• Complete Evaluation and Quiz

• Print CEU at the end of the quiz.

• The link is provided at the end of this webinar and emailed to you.

Earning CEUs

Key Area 2 (2000) Operations

Key Topic (2400) Purchasing

Subtopic (2430) Purchase food, supplies, and

equipment through vendors, meeting school district specifications in compliance with Federal, State, and local procurement regulations and availability of USDA Foods

SNA CEUs & Professional Standards

Handouts • Locate the Handout panel on your control panel. • Click on the name of the handout to download.

• Copy of today’s presentation • Compliance with Enforcement of the Buy American

Provision in the National School Lunch Program

LEARNING OBJECTIVES At the conclusion of today’s webinar, participants should be able to:

•Discover the history of Buy American in NSLP

• Identify tips to source U.S. grown and produced foods

•Describe the current regulations and policy regarding Buy American

•Apply suggested language and district practices to ensure procurement of American products.

Today’s Speaker

Peggy Cantfil Branch Chief

FNS, Food Distribution Child Nutrition Operations Branch

Kirk Farquharson Lead Program Specialist

FNS, Southeast Region, School Nutrition Programs Branch

BUY AMERICAN

HISTORY & RELEVANCE

Presented by: Peggy Cantfil, Chief Child Nutrition Operations Branch USDA Food Distribution Division

Food and Nutrition Service

National School Lunch Act 1946 Preamble

“as a matter of national security, and to safeguard the health and well being of the nations children, and to expand the market with nutritious agricultural commodities, the school lunch program is established…”

"In the long view, no nation is any healthier than its children, nor more prosperous than its farmers.”

Nutrition assistance programs in the U.S. are rooted in domestic agriculture to feed people

& are supported by the U.S. agriculture sector & manufacturers

Foreign product imports are increasing more and more (1990 – 2011)

• Vegetable product imports increased from 4% to 21%

• Fruit and nut imports increased from 25% to 38%

• Fish & seafood increased from 50% to 93%

• Overall total food imports consumed in 2011 was 18%

The 2000s … U.S. Agriculture Crisis!

• Decrease production of horticultural products

• Increase competition from imported products

• Labor shortage

• Real estate claiming farmland

• Increased taxing of farmland

The importance of buying food grown and processed in the U.S.A.

1. Future jobs & food supply

4. Labor standards & wages

5. Safe & fair working conditions

5. American investment & sustainability

6. Guaranteed quality of goods

7. Food Safety

8. Environmental impact

9. Retain production acreage and capacity

U.S. Fruits need support. The competition is stiff.

• Tropical fruit competition: mandarin oranges, mangos, pineapple, etc. only grown and processed in Asia and South American

• Dried fruit products from the Mediterranean & South America

• Processed peaches from Asia and the Mediterranean

• Concentrated apple juice from Asia and orange juice from South America

• Fresh fruit from Southern Hemisphere in the winter

• Fruit orchards competing with higher value tree nuts &vineyards for real estate

U.S. Canned Peach Import Trends 2006 - 2016

2,369

4,118 4,217

3,099 3,1023,340

2,618

3,859

4,539

5,229

5,684

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1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16

Thousands of Cases

• Typically trees will start bearing fruit after 3 years

• Reach full production and maturity at 5 to 7 years

• Trees are vulnerable to disease and natural disasters

• Farmers replace trees after about 20 years

Fruit trees are a long term investment

Poll Question • A fruit tree will reach full production and maturity at _______

TIPS TO SOURCE AMERICAN

FRUIT PRODUCTS

AMS Market News

• https://www.ams.usda.gov/market-news

AMS Market News

• https://www.ams.usda.gov/market-news

http://www.fns.usda.gov/fdd/food-purchase-resources

Food Purchase Information USDA Foods Vendors supply American! AMS USDA foods vendor contact info

USDA Foods Purchased in Dollars by State

U.S. fruits are plentiful – ALL YEAR! in many forms: fresh, frozen, dried, canned and fruit cups

• Specifications impact availability

• Procurement timing and contract commitments impact availability

• U.S. fruit producers must buy packing mediums (pear concentrate, peach pulp and/or white grape juice) well advance of the harvest and pack for the WHOLE year

• To pack U.S. fruit in 100% juice, juice must be procured from foreign sources as

little fruit is grown solely for juice in the U.S. (except oranges)

• U.S. fruit packed in 100% juice is a challenge & costly for U.S. producers

Fruit Packed in juice & extra light syrup

Domestic product buying tips • American brand names and company products

are not necessarily produced in the U.S.

• Read labels carefully - find the country of origin: U.S. and “other countries”

• Be aware that “USDA approved” or “california-style” does NOT mean American grown

• Domestic fruit packed in juice must be sourced prior to harvest in early Spring for the whole crop year

• Be aware of Processed/Packed in the U.S. versus Grown/Produced

U.S. Orange Juice Production and Imports

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1400

1600

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

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Imports

U.S. Apple Juice & Cider Production and Imports

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

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U.S. Apple Juice & Cider Production and Imports

• Over 81% of the apple juice concentrate in the U.S. was imported in 2014

• The concentrate arrives in tankards, is reconstituted, blended and bottled/packed in the U.S.

Your purchases and USDA FOOD Program is important to ALL of American Ag!

• With increasing pressure from imports, everyone’s purchase impact becomes greater

• Many farmers are facing greatest hardships in history

• Many producers are facing smallest profit margins in history

• Our support is key to their survival and the future of U.S. agriculture

• Let’s keep a variety of fruits and vegetables in production nationwide in America

• Agriculture employs more than 24 million American workers (17% of the total U.S. work force)

American Agriculture IS Worth the Investment.

Poll Question • What percent of apple juice consumed in the U.S. was imported in 2014 from Asia?

• Specifications and timing will impact availability of US canned fruit packed in juice.

• U.S. grown fruit packed in juice are costly because

BUY AMERICAN

COMPLIANCE What does Compliance Look Like?

Presented by: Kirk Farquharson, Lead Program Specialist, USDA FNS

Buy American provision requirements

Section 104(d) of the William F. Goodling Child

Nutrition Reauthorization Act of 1998 (Public Law 105-336) added a provision, Section 12(n) to the NSLA (42 USC 1760(n)), requiring school food authorities to purchase, to the maximum extent practicable, domestic commodity or product.

Limited exceptions

• The product is not produced or manufactured in the U.S. in sufficient and reasonable available quantities of a satisfactory quality; or

• Competitive bids reveal the costs of a U.S. product are significantly higher than the non-domestic product.

SP-24-2016: Compliance with and Enforcement of the Buy American Provision in the National School Lunch Program

Alternatives to Exceptions

• Is there a domestic product that could be easily substituted even if the non-domestic product is less expensive or not available (e.g. substitute domestic pears for non-domestic apples)?

• Am I soliciting bids for this product at the best time of year?

• If I contracted earlier or later in the season, would prices and/or availability change?

SFA Compliance with Buy American

• Include the Buy American provision in: o solicitations,

o contracts,

o product specifications,

Poll Question

• Are SFAs required to include a Buy American provision in all of their solicitations or contracts?

• Does Buy American mean I cannot buy non-domestic agricultural products?

• Processed or prepackaged products must have 51% or more domestic content and must be produced in the US.

SFAs Monitoring Compliance with Buy American

o Review of labels upon delivery

o Review of delivery invoices/receipts

o Inspection of storage facilities, etc.

AMS Market News

• https://www.ams.usda.gov/market-news

AMS Market News

• https://www.ams.usda.gov/market-news

How to Address Contract Compliance

• Incorporate in solicitation and contract requirements the vendor contact the SFA when a domestic product is not available.

• Return non-domestic product when delivered without SFA approval.

• Require the vendor to provide an attestation statement the product contains more than 51% domestic content and is processed in the U.S.

Statement of Compliance Example

For example:

“We require that suppliers attest/certify the percentage of U.S. content in products supplied to under this contract. If a supplier is unable or unwilling to make such certification, the supplier’s offer will be non-responsive and will considered."

Statement of Compliance Example

Certification Statement:

"We certify that our “Name of Product(s)” have at least XX % U.S. content, and is processed or manufactured in the U.S."

State Agency A

• Current Contract language: • Bidders must comply with the Buy American provision (7 CFR part 310.21). The term

‘domestic commodity or product’ means an agricultural commodity that is produced in the United States and a food product that is processed in the United States substantially using agricultural commodities that are produced in the United States. The term “substantially” is defined by USDA as meaning that over 51 percent of the final processed product consist of agricultural commodities that were grown domestically.

State Agency A

• Updated provision:

• The USDA ,Food and Nutrition Service encourages specifications using Federal funds to require 100% domestically grown and processed products. The exceptions to the Buy American requirements that State DOE may consider are: • The product is not produced or manufactured in the U.S. in sufficient and are reasonably

available in quantities of a satisfactory quality.

• Competitive research and bids reveal the costs of a U.S. product are significantly higher than the non-domestic product.

State Agency A

School District A

• Buy a large quantity of locally grown/produced items – Local defined as a 400 mile radius from the District

• Using this statement in solicitations:

• The language used by this District is quoted from the Child Nutrition Act, regulations and guidance.

The contract management and enforcement of compliance requirements helps this district ensure all agricultural products are domestic except those that are inherently not available – e.g. bananas, pineapple, etc.

School District A

State Agency B

http://adecm.arkansas.gov/ViewApprovedMemo.aspx?Id=1922

http://adecm.arkansas.gov/Attachments/CNU-16-039--Buy_American_Justification_Form.pdf

State Agency C

https://dpi.wi.gov/school-nutrition/procurement/buy-american

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