# Presentation: 269685

## Ordering Skills and Entitlement ManagementPeggy CantfilChief Operations  Food Distribution Division Food and Nutrition Service 

## Food and Nutrition ServiceFNS

- Food Distribution Division
- Purchase Planning
- Offers/Surveys and Foods Available List
- Review Delivery Orders
- Monitor funding and entitlements
- Manage orders and contract amendments
- Account for and reconcile funding
- Advocate for recipient agencies and States

## Entitlement & Order Timeline

_**January – **_**Enter Offerings for States in ECOS**
_**February **_ **– Enter *****Preliminary***** SY Entitlement**
***	******	******	******Preliminary***** Purchase Plan**
**Transmit State offerings and “dollar estimates”**
_**March  **_**–  Cheese & Turkey orders due for the SY**
_**May **_**– Most other orders are due**
_**June**_ – **Start buying**
_**July**_ – **Publish Rate in Federal Register **
_**August **_– **Move preliminary Prior SY Balances to new SY **
**Open Offerings again and new offerings**
_**November/Dec**_ **– Update current SY Entitlement **
**with final meals from prior year **

## January/February

*Preliminary* Information from Current SY
- AMS and FNS develop a *PLAN*
*FNS enters Offerings in ECOS*
*Transmit to State DAs*

*Estimated* Per Meal Rate

*Estimated* Meal Count

*Estimated* Cost per Lb.

## The Purchase Plan

- TOP SECRET

| National Average Percentage |  |
| --- | --- |
| Beef | 22% |
|  Tuna | 0.5% |
| Pork | 5% |
| Chicken | 13% |
| Eggs | 1% |
|  Turkey | 9% |
| F & V | 25% |
| Grains, Peanuts, Oils | 3% |
| Cheese | 22% |
| TOTAL | 100% |

## March  Cheese & Turkey product  orders are due because...

- A. USDA is difficult & controlling
- B. I am mean
- C....other

## Order Driven – No $ Planned 

- FSA will explain
**Order Driven – No $ Planned **
**USDA needs to know something!**
- Need to estimate $$$ AMS has to spend

**March **
**Preliminary Cheese orders due because...**

## MarchFine tune the Plan ESTIMATE AMS Product $$$  

- They are Guidelines only!!!
- 	based on the plan which is based on

- Estimates

- Estimates

- Estimates

## Preliminary cheese orders are NOT set in stoneOrders may change 60 days prior to delivery

**Turkey Product orders sorta are set in stone because...**

## USDA is FLEXIBLE

**Will bend over backward to try to meet needs and support markets nationally !**

## Ordering Flexibility Because...

** ****Menu driven commodities to meet district needs**
**So commodities move thru the system effectively...**
**USDA is flexible...Dollars are monitored NATIONALLY**
**Acknowledge regional preference, State preferences and local school district preferences**
** ****Don’t want entitlement $$$ lost to homeless commodities and waste time to find a home**
**Don’t want storage fees for commodities that sit ANYWHERE waiting for a taker**

## DOD Fresh	CAP

**$50 million dollars ****only**
- An alternative to USDA purchased commodity fresh, full trucks, thru State Distribution Systems
- Intended to provide Districts with access to high quality affordable fresh produce
**NOT required to accept – Do NOT offer to districts that don’t want it**
- Does NOT provide for 100% of needs – just enuff to ...
- Provides an **opportunity **for additional purchases with Schools' own 4/11 reimbursement funds
- Next year’s funds available for deliveries beginning September 1 - June 30.

## April / May 

**State submit food orders from District’s**
**FNS reviews **
**USDA starts buying **
**(with remaining FY funds)**

*Estimated* Per Meal Rate

*Estimated* Meal Count

*Estimated* Cost per Lb.

## 105% ?

- Please Order
- Of you commodity dollars...
- Why?....

- 105 %

## June/July 

- WE finally know something !!!
**Commodity Assistance Rate. **
**USDA really starts buying!!**
**(Meat and Poultry Aug/Sept delivery)**

*Estimated* Meals...

*Estimated* Cost per Lb...

## August 

- Add last year’s balances to current year’s “entitlement”
- Surveys are reopened
- Most should be at 98% of entitlement or 105%
- Buying for October deliveries
- Unpurchased orders can be changed

*Estimated* Meals

*Estimated *Cost per Lb.

## September

- 4 th quarter FY fund dwindling...
- A balancing act
- By September 30 must award contracts for
-     Meat & Poultry deliveries thru Nov 1-15

## October...

- We’re in the money!!!
- New Fiscal Year
- For Delivery
- Nov 15 – June 30 ?? !!

## November 

- Update *Prior *SY Final Entitlement
- Reconciliation

*BUT Estimated *Cost per Lb.
- (for orders for Dec – June)

- Finally know the level of commodity assistance for the current year!

## BEEF Prices

## Electronic Commodity Ordering System: Online Commodity Ordering, Entitlement Management &  Delivery Tracking

## Entitlement Monitoring

## Request Tracking

**12 Step Cycle**
- 1. $$ - Funds/Entitlement/Purchase Plan
- 2.  FNS Offers / Foods Available / State Surveys RA
- 3.  State DA submit Orders thru ECOS to PCIMS
- 4.  FNS review orders and funds
- 5.  FNS/AMS/FSA Create Invitations to Bid
- 6.  FSA/ AMS Issue Invitations to Bid
- 7.  Vendor Bid – USDA Analysis - Contract Award
- 8.  FSA Notice to Deliver - Forwarding Notice Issuance
- 9.  Vendor Produce/Graded-Certify/ Shipment Notice
- 10. Vendor delivers / BL / Receipting in ECOS
- 11. School district notified by warehouse/processor/State
- 12. Vendor invoice FSA – Payment in PCIMS

## Most Common Status Codes

- Open Orders = VP & VO
- Valid Pre Order – Group A
- Valid Order – Group B
- CI – Complete on Invitation – Anno/Inv #
- D X – Deleted ...when/how??
- CN – Complete Notice to Deliver Issued
- SH – Stands for Shipped but remember !

## Step 1“Show me the money !”

- Fund Sources
- CNP Entitlements
- Purchase Plan

## 2. Survey/Offering“May I take your order?”

## Step 3 States Create & Submit Orders

-  **Recipient Agency input:**
- Actual Data from ALL RA’s (ECOS/other)
- Truck loading and delivery date coordination
-  Split Direct Shipment Coordination

## Step 4FNS Review DataApril-JuneOrders in VP or VO status

- Funding considerations (40-60 % Rule)
- Capacity issues
- Split shipment matches
- Entitlement status
- Offer additional commodities

## Steps 5,  6  & 7 AMS will explainInvitations, Bids and AwardsJune – next AprilOrders in CI Status

## Step 7AMS & FSA award contractsFSA will talk aboutMeat and Poultry bought about 4-6 weeks prior to delivery

** **

## Steps 8FSA issues ELECTRONIC delivery notice !

**D/O Status Code = CN** (complete n/d’s)
**MENU the commodity...really!**
- Notice to Deliver – KC 269
- To vendor
- Forwarding Notice – KC 269 A
- To consignee - STATE

## Step 9Preparing to Deliver

- Vendor produces and/or packages
- 	(Rarely pulls from inventory)
- Commercial/USDA  label option
- USDA grades or check loads or audits or certifies shipments – lab analysis
- Notice of Shipment – 24 hour unloading appointment

## Step 10ReceiptingJuly-June

- Truck shows up at destination
- Receiving Org Updates in ***ECOS***
**Then D/O changes to SH “shipped”**
**status in ECOs – duh...**

## DO you receive direct deliveries?

- ...From a USDA vendor?
- Are you registered in ECOS?
- Get registered as a receiving organization.
- See you food coming & receive for it!

## Step 11“Come and Get it!”

- Various Receipt notifications possible:
- Warehouse notifies RA of receipt ASAP
- Whse notifies State DA, who notifies RA ASAP
- RA notifies DA of direct shipment receipt
- Processor notifies DA of receipt

## Step 12

- Vendor submits invoice to FSA
- Entered in PCIMS
- IF not received in ECOS
- Order goes to SH status
- When received in PCIMS duh...
- Prompt payment - $ spent

**12 Step Cycle**
- 1. $$ - Funds/Entitlement/Purchase Plan
- 2.  FNS Offers / Foods Available / State Surveys RA
- 3.  State DA submit Orders thru ECOS to PCIMS
- 4.  FNS review orders and funds  - **VP**
- 5.  FNS/AMS/FSA Create Invitations to Bid - **CI**
- 6.  FSA/ AMS Issue Invitations to Bid
- 7.  Vendor Bid – USDA Analysis - Contract Award
- 8.  FSA Notice to Deliver Email - **CN**
- 9.  Vendor Produce/Graded-Certify/ Shipment Notice
- 10. Vendor delivers / BL / Receipting in ECOS - **SH**
- 11. School district notified by warehouse/processor/State
- 12. Vendor invoice FSA – Payment in PCIMS or **SH**

## Final thoughts...

**Get involved and work closely with the State**
**Order 100% or more of your PAL**
- Anticipate **increases in meals served**
- Monitor entitlements but...**Don’t panic**!
- USDA offers and buys year round! !
- Remember it is a moving target ...