Nutrition Assistance Program Report Series 

Office of Analysis, Nutrition and Evaluation 

Special Nutrition Programs Report No. FDD-04-PVP 

An Evaluation of the Prime 

Vendor Pilot 

of the 

Food Distribution Program on Indian Reservations

United States Food and 

Department of Nutrition 

Agriculture Service 

April 2004
 

An Evaluation of the Prime 

Vendor Pilot 

of the 

Food Distribution Program on Indian Reservations

Author: 

Sheku G. Kamara, Ph.D. 

Office of Analysis, Nutrition and Evaluation 

USDA, Food and Nutrition Service 

3101 Park Center Drive, Room 1014 

Alexandria, VA 22302-1500 

This study was conducted in-house by Food and Nutrition Service staff. 

This report is available on the Food and Nutrition website: http://www.fns.usda.gov/oane.

Suggested Citation: 

Kamara, Sheku G. “An Evaluation of the Prime Vendor Pilot of the Food Distribution 

Program on Indian Reservations,” Nutrition Assistance Program Report Series, No. FDD-04-

PVP, U.S. Department of Agriculture, Food and Nutrition Service, Alexandria, VA: 2004. 

United States Food and 

Department of Nutrition 

Agriculture Service

April 2004

Special Nutrition Programs

Report No. FDD-04-PVP
ACKNOWLEDGMENTS

This evaluation is the outcome of the efforts of many people within the United States 

Department of Agriculture (USDA) and the Indian Tribal Organizations (ITOs) participating 

in the Food Distribution Program on Indian Reservations (FDPIR). The bulk of data 

analyzed in this report was garnered from two surveys conducted with Food Distribution 

Directors of the 23 ITOs of the Midwest Region covering Michigan, Minnesota and 

Wisconsin. Thanks to all the Food Directors and their staff for taking time off their busy 

schedules to provide detailed responses to the surveys. 

At USDA, the evaluation was initiated with a preliminary meeting and phone conference of 

agencies involved in the nationwide implementation of FDPIR and the Prime Vendor Pilot. 

These agencies included the Food and Nutrition Service (FNS), the Agricultural Marketing 

Service (AMS), the Farm Service Agency (FSA), and the Contractor for the Pilot, the 

Defense Supply Center in Philadelphia (DSCP) of the Department of Defense (DoD). The 

meetings were organized by Dave Seger, Coordinator of FDPIR at the Food Distribution 

Division (FDD) within FNS. Participants from FNS included Dave Seger, FDD; Joseph 

Templin, FDPIR Program Coordinator, FNS Midwest Region (MWRO); Jay Hirschman, 

Director of Special Nutrition Staff at the Office of Analysis, Nutrition and Evaluation 

(OANE); John Endahl, Chief of the Special Nutrition Evaluation Branch (OANE); and the 

author, Sheku G. Kamara (OANE). AMS was represented by Nancy Hubbell, and FSA by 

Connie Stewart, Donna Ryles (Kansas City Office), and Rachel Hight (Kansas City Office). 

DSCP was represented by Gina Vasquez and Gail Labrosciano. This group provided 

invaluable initial input, and many continued to provide helpful assistance through the rest of 

the evaluation process. Thanks to all of them for their support. 

Deserving special acknowledgment are Dave Seger and Joe Templin. As the FNS staff 

chiefly responsible for FDPIR in the Midwest Region and the pilot demonstration, they 

played exceptional roles in the evaluation. Dave provided material on the legislation and 

administration of FDPIR, and on the background and implementation of the Pilot. He also 

coordinated with all agencies and ensured the retrieval of data from USDA databases and 

other arcane sources. Joe on the other hand provided prompt administrative and logistical 

support in the Pilot region. He expended great effort in explaining the importance of the 

evaluation to ITO directors and the need for credible data, and ensured that completed 

surveys were promptly returned. Both Dave and Joe also provided contextual explanations 

on the intuitiveness of some of the data, as well as interpretations of some of the findings. 

Thanks to Phil Cohen, Branch Chief at the Food Distribution Division, for his assistance in 

reviewing the report and providing useful comments. 

John Endahl, the Evaluation Branch Chief, provided both conceptual and material input in 

the questionnaire design, data analysis, and draft review. His contribution is acknowledged.
i

EXECUTIVE SUMMARY

The Prime Vendor Pilot was conducted as part of U.S. Department of Agriculture’s Business 

Process Re-engineering efforts to improve the administration and operation of the Food 

Distribution Program on Indian Reservations (FDPIR). Under this pilot, USDA partnered 

with the Department of Defense, which had an existing contract with commercial vendors 

and distributors. Reinhart Foods was selected as the prime vendor and was responsible for 

accepting food orders directly from 23 Indian Tribal Organizations (ITOs) in the Midwest 

Region, procuring pre-approved food products, storing and delivering the foods to the ITOs. 

The evaluation compared results from the first year of the prime vendor pilot (July 2001 – 

June 2002) with the traditional FDPIR commodity distribution system that operated in the 

previous year (July 2000 – June 2001). 

Pilot Objectives: Objectives of the pilot included: (1) improving the commodity distribution 

system for FDPIR by improving program operations and administrative efficiency while 

improving product acceptability and procurement flexibility; and (2) reducing Federal staff 

resources in the food ordering and delivery process for FDPIR. 

Findings: Key findings from the first year of the pilot include: 

Program Operation and Administrative Efficiency

 The number of households served by FDPIR in the 23 ITOs increased slightly (2.4%) 

although the actual number of participants decreased by less than one percent as 

household size declined by over three percent. 

 ITOs expressed greater overall satisfaction and reported great improvements in program 

operation, product quality, commodity pack size, variety and labeling. 

 Nearly all ITOs (96%) rated FNS’ operation and administration of FDPIR as good to 

excellent during the first year of the pilot compared to only 70% during the previous 

year. 

Food Ordering and Delivery

 On average, the frequency of food ordering increased from once every 1-2 months to 

once a week. 

 Food deliveries increased from an average of 8 times per year before the pilot to 15 

times per year under the pilot. 

 Under the pilot, all orders were delivered within 3 days to 2 weeks depending on the 

time the order was placed relative to the regularly scheduled delivery date, compared to 

over 1 month prior to the pilot; the convenience of ordering at any time was reported as 

the best feature of the Pilot. 

 Food delivered increased from 26 cases per participant to 27 cases. 
ii

 ITOs expressed far more satisfaction with food ordering (65% vs. 9%) and food delivery 

(91% vs. 4%). 

Warehousing and Inventory Management

 Average monthly inventory increased during the pilot from 1,419 cases per ITO to 

1,704 cases per ITO (20%). This was directly related to the delivery cycle and when the 

inventory was taken. 

 Storage problems declined and self-ratings for inventory management improved without 

any increase in staffing. 

Cost to USDA Agencies

 The cost of food distributed to the pilot ITOs, adjusted for inflation, remained relatively 

stable, increasing from $3.4 million to $3.5 million (2.2%). 

 After inflation adjustment, the total costs for food, management of the ordering system, 

transportation, handling, storage, and administration, increased from $3.85 million to 

$5.22 million (35.6%). 

 The mean cost per case of food delivered to ITOs, adjusted for inflation, increased from 

$16.57 per case to $21.88 per case (32%). 

Costs to ITOs

 ITO staffing costs increased by 1 percent. 

 Warehouse space increased by 19 percent and warehouse cost by 35 percent. 

 Deliveries increased by 95 percent and cases delivered by 3 percent. 
iii

TABLE OF CONTENTS

Page

EXECUTIVE SUMMARY ................................................................... i 

SUMMARY ..................................................................................... 1 

CHAPTER 1. INTRODUCTION ......................................................... 8 

The Food Distribution Program on Indian Reservations ............... 8 

Beneficiary Eligibility ............................................... 8 

Income Eligibility Standards ........................................ 9 

The Food Package .................................................... 10 

Program Administration and Client Participation ................ 11 

CHAPTER 2. THE PRIME VENDOR PILOT ......................................... 12 

Background .................................................................. 12 

Conditions of FDPIR Prior to the Pilot (2000-2001) .................. 12 

Problems with the Current FDPIR System ........................ 13 

The Prime Vendor Pilot ................................................... 13 

Goals of the Pilot .................................................... 14 

Participating ITOs ................................................... 16 

Commodities Provided to ITOs in FY 2000 ........................... 17 

The Food Ordering Process Under the Pilot ........................... 17 

CHAPTER 3. EVALUATION ............................................................ 19 

Methodology ............................................................. 19 

Administrative Records Review .................................. 19 

Pre-Test/Post Test Surveys ......................................... 20 

Analysis .................................................................... 21 

CHAPTER 4. RESULTS ................................................................... 23 

Introduction .................................................................. 23 
iv

Process Evaluation: Administrative Records Review ................. 23 

Participants and Households ........................................ 24 

Food Delivery During FY 2000-2001 .............................. 24 

Food Delivery During the First Year of the Pilot 

 (FY 2001-2002) .............................................. 26 

Operational and Food Costs .......................................... 29 

Operational and Food Costs for FY 2000-2001 ................... 29 

Operational and Food Costs During the Pilot (FY 2001-2002) .. 31 

Pre-Post Comparisons of Total Expenditure by Category ....... 33 

Cost Comparison: Mean Expenditure Per Participant ............ 34 

Bonus Commodity Delivered Before and During the Pilot ...... 35 

Staff-Participant Ratio ................................................ 35 

 

Comparisons of Pre and Post Response Patterns (T-test) ............... 37 

Hypothesis and Assumptions ........................................ 37 

Differences in Pre and Post Response Patterns .................... 37 

Program Operation and Administrative Efficiency ............... 39 

Food Ordering and Available Choices .............................. 40 

Food Delivery .......................................................... 40 

Warehousing and Inventory Management ......................... 40 

Operational and Staffing Costs ...................................... 40 

General Response Trend .............................................. 41 

Administrative Interview ............................................. 43 

Summary ...................................................................... 43 

Program Operation and Administrative Efficiency ................ 44 

Food Ordering/Procurement Flexibility and Greater Choice .... 44 

Food Delivery ......................................................... 45 

Warehousing and Inventory Management ......................... 45 

Cost Comparison ........................................................ 46 

REFERENCES .................................................................................... 47 

APPENDIX: PRE/POST COMPARISONS OF DIFFERENCES WITHIN 

GROUPS (CHI-SQUARE ANALYSIS) ....................................... 48 

Program Operation and Administrative Efficiency .................... 48 

Food Ordering and Available Choices ................................. 65 

Food Delivery ............................................................. 71 

Warehousing and Inventory Management ............................ 79 

Operational and Staffing Costs .......................................... 93 

 
1

SUMMARY

INTRODUCTION

The Prime Vendor Pilot (PVP) of the Food Distribution Program on Indian Reservations 

(FDPIR) was implemented by the Food and Nutrition Service (FNS) to pilot test commodity 

distribution operations through a prime vendor system. The Pilot was recommended by the 

Business Process Re-engineering (BPR) team to improve the administration and operation of 

FDPIR. Problems with FDPIR included long advance ordering time; late delivery; low 

customer satisfaction with product quality, packaging, and labeling; and low cost efficiency. 

Through PVP, USDA established a partnership with the Department of Defense’s (DoD) 

Defense Supply Center in Philadelphia (DSCP) and became a party to an existing DoD 

contract with commercial wholesalers/distributors. Reinhart Foods was selected as the prime 

vendor out of efficiency and expediency, because of its existing contract with DoD to supply 

food items to military bases in the FNS Midwest Region. The contract was expanded to 

include PVP in the States of Minnesota, Wisconsin, and Michigan. The PVP covered the 23 

Indian Tribal Organizations of the Midwest Region. The first year of PVP was July 1, 2001 

– June 30, 2002. Under the PVP agreement, Reinhart specifically did the following: 

1. Accepted food orders directly from ITOs, and scheduled more frequent and regular 

delivery dates; 

2. Procured food products pre-approved by FNS from the open market; 

3. Stored the food and delivered it to ITOs which could place orders as late as three days 

in advance of their scheduled delivery dates, rather than 60-90 days as before; and 

4. Billed DoD for food procured and services rendered, and DoD billed USDA. 

THE EVALUATION

The evaluation of the first year of PVP was conducted using two methods: 

• Two surveys were conducted and data compared statistically on food distribution 

conditions and service satisfaction levels before the Pilot (pre: July 2000–June 2001) 

and during the Pilot (post: July 2001–June 2002). ITO food directors responded to 

questionnaires that covered five areas: (1) the operation and administration of FDPIR, 

(2) food procurement and ordering flexibility, (3) food delivery, (4) warehousing, and 

(5) cost reduction. 

• Additional analysis was conducted using data collected from records and databases of 

three USDA agencies involved with FDPIR: FNS, the Agricultural Marketing Service 
2

(AMS), and the Farm Service Agency (FSA). These data covered the numbers and 

types of participants, quantities and costs of foods distributed, and administrative 

costs borne by USDA agencies. 

FINDINGS

PROGRAM OPERATION AND ADMINISTRATIVE EFFICIENCY

Participants and Households Served 

• Households served by FDPIR in the 23 ITOs of the Midwest Region increased from 

3,601 to 3,688 (2.4%). However, the actual number of participants decreased from 

8,842 (FY 2000-01) to 8,767 (FY 2001-02) as household size declined by over three 

percents. 

Program Improvement

• From the survey responses, ITOs reported great improvements in program operation 

and administration under PVP. 

• Prior to PVP, ITOs were dissatisfied with products and product availability, and 

suggested more administrative and operational changes. 

• During the first year of PVP, ITOs reported significant improvements in product 

quality, variety, labels, and labeling, over the year prior. 

• ITOs expressed greater overall satisfaction during PVP than the year before. 

• There was no significant difference in satisfaction with packaging. 

Satisfaction with Food Products

• Although no new products were introduced under PVP, the range of products 

available at any given time increased due to the reliability of the contractor. Thus, 

more ITOs reported greater satisfaction with product variety during PVP (61%) than 

the year before (30%). 

 

• More ITOs reported high acceptability for food labels during PVP (35%) than the 

USDA labels the year before (9%). 

• More ITOs reported high satisfaction with commodity pack size during PVP (48%) 

than the prior year (22%). 
3

• Far more ITOs reported high satisfaction with product quality during PVP (61%) than 

the year before (4%); under PVP no ITO reported less than moderate satisfaction with 

product quality compared to nearly half (48%) the year before. 

• Far more ITOs reported high satisfaction with labeling during PVP (52%) than the 

year before (4%); under PVP only 9% of ITOs reported less than moderate 

satisfaction with labeling compared to 74% the year before. 

• Far more ITOs reported high satisfaction with the products they received as a whole 

during PVP (65%) than the year before (9%); under PVP only 4% of ITOs reported 

less than moderate satisfaction with products as a whole compared to 39% the year 

before. 

Rating for FNS’ Operation and Administration of FDPIR

• Nearly all ITOs (96%) rated FNS’ operation and administration of FDPIR as good to 

excellent compared to 70% the year before. 

FOOD ORDERING

Improvement in Ordering

• The convenience of ordering at any time was acclaimed as one of the best features of 

PVP. 

• On average, ordering frequency increased from once every 1-2 months to once a 

week under PVP. 

• Smallest single order reduced from 86 cases on average before PVP to 75 under PVP. 

• Initial ordering problems reported early in the Pilot implementation disappeared when 

the prime vendor enlisted and utilized more back-up providers. 

Satisfaction with Food Ordering

• More ITOs expressed high satisfaction with food ordering during PVP (65%) than the 

prior year (9%). 

• No ITO reported dissatisfaction under PVP compared to 26% during the prior year. 

Cases of Commodities Distributed During the Year

• More cases of food were distributed during PVP (235,378) than the year prior 

(228,521) – an increase of three percent. 
4

FOOD DELIVERY

• The number of deliveries increased from an average of 8 per year before PVP to 15 

per year during PVP. 

• Far more ITOs (91%) expressed high satisfaction with timeliness of delivery during 

PVP than the year before (4%). 

• Prior to PVP, 80 percent of the orders took one month or longer to deliver. During 

PVP, all food orders were delivered between 3 days and two weeks, depending on the 

date the order was placed relative to the regularly scheduled delivery date. 

• The mean number of cases of food distributed to each participant in the year prior to 

PVP was 26, ranging from 16.5 in Sokaogan Chippewa to 34.1 in Mille Lacs (see 

Figure 1). 

Fig. ES-1. The Relationship Between Size of ITO and Cases Distributed 

Per Participant During FY 2000-2001 (Pre-Pilot)

Bay Mills Keweenaw Bay Sault St. Marie

Bois Forte

Pokagon

Sokaogan

Stockbridge

White Earth

Lac Courte Oreilles

St. Croix

Mille Lacs

Red Cliff

Fond Du Lac

Bad River

Ho Chunk

Leech Lake

Menominee

Oneida

Red Lake

Lac Du Flambeau

Little River

Little Traverse Bay

Grand Portage

0

5

10

15

20

25

30

35

40

45

0 200 400 600 800 1,000 1,200 1,400

Participants Per ITO

Cases Per Participant

• During the first year of PVP, the mean number of cases of food distributed to each 

participant was 27, with a narrower dispersion ranging from 18.7 cases per person in 

St. Croix Reservation to 32.5 in Leech Lake (see Figure ES-2). Thus PVP ensured a 

more uniform distribution of food benefits to participants. 
5

Fig. ES-2. The Relationship Between Size of ITO and Cases Distributed Per 

Participant During FY 2001-2002 (Pilot)

Sault St. Marie

Bay Mills Keweenaw Bay

Bois Forte

Pokagon

Sokaogan

Stockbridge

White Earth

Lac Courte Oreilles

St. Croix

Mille Lacs Red Cliff

Fond Du Lac

Bad River

Ho Chunk

Leech Lake

Menominee

Oneida Red Lake

Lac Du Flambeau

Little River

Little Traverse Bay

Grand Portage

0

5

10

15

20

25

30

35

40

45

0 200 400 600 800 1,000 1,200 1,400

Participants Per ITO

Cases Per Participant

WAREHOUSING AND INVENTORY MANAGEMENT

• During PVP, fewer ITOs (22%) reported storage problems than the prior year (35%). 

• Average monthly inventory was 1,419 cases per ITO before PVP and 1,704 cases per 

ITO during PVP – 20% increase. However, under the Pilot: (1) a full variety of all 

approved food packages was available; (2) participants took on average more of the 

food they were eligible to receive; and (3) there was a greater variety of bonus 

commodities. The increase in cases and inventory was directly related to the delivery 

cycle and when the inventory was taken. 

• All ITOs rated their inventory management operations between good and excellent 

during PVP compared to 78% the year before. 

• There was practically no difference in warehouse staffing, increasing from 9.1 to 9.2 

employees per ITO. 
6

COST ANALYSIS

Costs to USDA Agencies

• Distributed food costs, adjusted for annual inflation, increased from $3,444,178 

during the year before PVP to $3,519,914 (or 2.2%) during PVP. (PVP costs are 

costs for food actually distributed to participants recorded in the SNPIIS1 database). 

• Total costs for food, management of the delivery system, transportation, handling, 

storage, and administration, adjusted for annual inflation, were $3,849,469 during the 

year before PVP and $5,220,915 during PVP - a 35.6% increase. 

• The mean cost, adjusted for inflation, per case of food delivered to ITOs to be 

distributed to participants was $16.57 per case during the year before the Pilot and 

$21.88 per case during PVP. This represents a 32.1% increase. 

• Bonus commodities delivered to the ITOs were valued at $162,000 in the pre-Pilot 

year, and $620,652 during the first year of the Pilot – nearly four times more. This 

resulted in more distribution costs to the Prime Vendor, which increased the overall 

expenditure of PVP. 

• Total monthly expenditure under PVP was low in July 2001 (the start up month) and 

in December 2001 (see Figure ES-3). The low December participation is explained 

as due to tribal gaming per capita payments, which made some households incomeineligible for that month. 

Costs to ITOs

• Costs to ITOs were collected from the surveys based on self-reports by ITOs without 

requiring documentation. These reported costs are therefore subject to cautious 

interpretation. 

• In general, except for total deliveries, all the cost variables analyzed statistically 

showed no significant differences between the years prior and during PVP. 

• The number of deliveries increased by 95%, and cases delivered by 3%. The mean 

duration between order and delivery was shortened from 51 days to 1-2 weeks. This 

could have been further shortened had ITOs chosen to order 3 days in advance of 

their schedule deliveries as was originally planned. 

• Warehousing staffing at ITOs did not change appreciably between the two years 

(1.1% increase), but total warehouse staff time increased over four times during PVP, 

although this difference was not statistically significant due to the large variance. 

 

1

 Special Nutrition Program Integrated Information system. SNPIIS uses FNS administrative data. 
7

• Warehouse space increased by 19% and warehousing cost by 35%. 

Fig. ES-3. Monthly Expenditure for the Prime Vendor Pilot

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Jul01Aug01Sep01Oct01Nov01Dec01Jan02Feb02Mar02Apr02May02Jun02

Months

Dollars

Monthly Expenditure

Mean

General

In the event the program goes nationwide, there would be significant savings at the Federal 

level in terms of staff at AMS, FSA, and FNS, warehousing costs, delivery charges, and 

computer food ordering support. 
8

CHAPTER 1 

INTRODUCTION 

THE FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS (FDPIR)

The Food Distribution Program on Indian Reservations (FDPIR) is a commodity distribution 

and assistance program mandated by Public Law2

 in order to improve the diets of needy 

persons in households on or near Indian reservations. Specifically, FDPIR was authorized by 

Section 4(b) of the Food Stamp Act of 1977 [7 U.S.C. 2013 (b)] and Section 4(a) of the Food 

and Consumer Protection Act of 1973 [7 U.S.C. 612 (c) Note]. Since its inception in 1977, 

FDPIR has been administered by the Food and Nutrition Service (FNS) of the United States 

Department of Agriculture (USDA). The program is authorized to provide assistance in the 

forms of project grants, and sale, exchange, or donation of property and goods. 

FNS administers FDPIR through a network of regional, field, and satellite offices. In some 

instances, such as North Carolina, the State Agency has some administrative function. FNS 

works with the Agricultural Marketing Service (AMS) and the Farm Service Agency (FSA) 

to procure commodities, process orders, store food, and arrange food shipments to Indian 

Tribal Organizations (ITOs) and State Distributing Agencies (SDAs), who in turn distribute 

the food to low-income households within their jurisdictions or service areas. State Agencies 

that administer FDPIR are eligible to receive Federal cash assistance (administrative funds) 

for operational expenses. ITOs serve as their own State Agency for the administration of the 

program. All Midwest ITOs have direct agreements with FNS. 

Beneficiary Eligibility

To be eligible for participation, a household must be living on an Indian reservation, or be an 

Indian household living in a designated area near an Indian reservation or in Indian country 

or an approved FNS service area in Oklahoma. The determination of what constitutes a 

household is based on the classic definition of a group of individuals that customarily 

purchases and prepares meals together. The household must be certified by local authorities 

 

2

 Agricultural Act of 1949, Section 416 as amended; Section 32, Public Law 74-320 as amended; Food and 

Agriculture Act of 1963, Section 709 as amended; Agriculture and Consumer Protection Act of 1973, Section 

4(a) as amended; Food Stamp Act of 1977, Section 4 as amended; Section 1336, Public Law 97-98 as amended; 

Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Public Law 104-193. 
9

as having inadequate income and resources. Upper limits of allowable income vary with 

household size, and household resource limits are set by FNS. FDPIR serves as an 

alternative to the Food Stamp Program for residents of Indian reservations or qualifying 

tribal members who reside in the FDPIR service area. Eligibility to receive a commodity 

package under FDPIR requires that a household must meet income guidelines and residential 

requirements. Households may not participate in FDPIR and the Food Stamp Program in the 

same month. Individuals living in urban areas outside of a reservation or an ITO cannot 

participate in FDPIR, unless the urban area is within a reservation boundary, or has been 

specifically approved by FNS as an area near a reservation, or as an FNS service area in 

Oklahoma. 

Income Eligibility Standards

The income criteria established by Federal legislation for determining FDPIR eligibility are 

the same as the Food Stamp Program net monthly income limits plus the standard deduction 

used in determining eligibility. FDPIR differs from the Food Stamp Program in eligibility 

requirements in that once a household is determined income eligible, the amount of food it 

receives is based solely on the number of members it contains, regardless of its level of 

income. The computation of income eligibility for each household for FDPIR is based on the 

sum of the Food Stamp Program net monthly income limits and the Food Stamp standard 

deduction amounts used for the contiguous United States. Table 1 shows the income limits 

by household size effective October 1, 2002, along with the corresponding Federal poverty 

threshold levels and the proportion of the income limit as a percentage of the poverty 

threshold. 

 Table 1. Net Income Standards for the Food Distribution Program on

 Indian Reservations (Effective October 1, 2002)

 Monthly Annual Poverty Income Limit

Household Income Equivalent Threshold as Percent of 

Size Limit ($) ($) (2002)* Poverty Level

1 873 10,476 9,183 114

2 1,129 13,548 11,756 115

3 1,386 16,632 14,348 116

4 1,643 19,716 18,392 107

5 1,912 22,944 21,744 106

6 2,190 26,280 24,576 107

7 2,447 29,364 28,001 105

8 2,703 32,436 30,907 105

 * Source: U.S. Census Bureau, U.S. Department of Commerce (2003). Poverty in the United States, 2002.

 (Prepared by Bernadette D.Proctor & Joseph Dalaker).
10

As shown on Table 1, the monthly income limit for the FDPIR, based on household size, is 

only slightly above the Federal Poverty Threshold. It ranges from 114.08 percent of the 

Federal Poverty Level for a single-person household to 115.92 percent for a three-person 

household. It then declines from 107.20 percent for a four-person household down to 104.95 

percent for an eight-person household. 

Four types of deductions are allowed for FDPIR participants in the computation of income 

eligibility for the household. These deductions are outlined in 7 CFR 253.6(f) as follows: 

1. Dependent Care Deduction: The current maximum allowable dependent care 

deduction is $200 for dependent children under 2 years of age, and $175 for all 

other dependents. 

2. Earned Income Deduction: A household with earned income is allowed a 

deduction of 20% of the earned income. 

3. Medicare Part B Medical Insurance Premium Deduction: A household that incurs 

the cost of Medicare Part B medical insurance premium is allowed a deduction for 

the monthly cost of the premium. 

4. Child Support Deduction: A household that incurs the cost of legally required 

child support payments to or for a non-household member is allowed a deduction 

for the amount of monthly child support paid. 

The Food Package

The intent of FDPIR is to help low income residents of ITOs to maintain a nutritionally 

balanced diet. The selection of eligible households is the responsibility of ITOs and State 

Agencies guided by the income and household criteria. Households determined to be eligible 

to participate in FDPIR receive a commodity package from the program every month through 

the ITO or State Agency. In administering FDPIR, USDA has identified a comprehensive 

list of over 70 commodities in major food groups.3 These food groups include: 

(1) beef, meat, poultry and fish products; 

(2) fruits and vegetables; 

(3) macaroni, pasta, rice, cereals, and other grains; 

(4) cheese, egg mix, and milk; 

(5) flour, cornmeal, bakery mix, and crackers; 

(6) beans and potatoes; 

(7) juices, dried fruits, peanuts and peanut butter; and 

(8) corn syrup, vegetable oil, and shortening. 

 

3

 Food and Nutrition Service, United States Department of Agriculture (2001). Commodity Fact Sheet. 

Alexandria, VA. 
11

USDA purchases the commodities for distribution to ITOs and State Agencies. ITOs and 

State Agencies place orders to USDA, selecting from the available list and based on the 

selections of their constituent households. In some ITOs, participants can choose fresh 

produce instead of canned fruits and vegetables. Once orders from ITOs are received and 

processed by USDA, commodities are shipped by USDA from regional warehouses to the 

ITOs and State Agencies, which in turn store and distribute them to participating households. 

Through FDPIR, ITOs and State Agencies also provide nutrition education to participants in 

the forms of fact sheets and booklets, as well as advice for making the most nutritious use of 

commodity foods. Nutrition education services vary considerably among ITOs. Whereas 

some report no such budget allocation, some ITOs allocate up to 5% of administrative funds 

to nutrition education.4

 

Program Administration and Client Participation

In administering the program, FNS provides to ITOs and States up to 75 percent of allowable 

administrative costs (outlined in Part 277 of the Food Stamp Program Regulations) actually 

incurred for the operation of FDPIR. ITOs provide a match of 25 percent, which may be 

substituted by the value of services provided by volunteers, the periodic value for the use of 

Tribal warehouses financed by Department of Housing and Urban Development (HUD) 

under Public Law 93-383, or funds provided to ITOs under Section 104 of the Indian SelfDetermination and Education Assistance Act of 1975 – Public Law 93-638. The 

overwhelming majority of local FDPIR programs are administered by ITOs under direct 

agreements with FNS, but a few operate under the supervision of an agency of a State 

government. 

Since it started in 1977, FDPIR has grown considerably, with a slight reduction in 

participants in recent years. In 1989, the program served 138,000 clients in 44,962 

households with 105 participating agencies. In Fiscal 2001, a total of 113,248 individuals 

participated in the program – a decrease of 17.9 percent in the last 12 years. 

 

4

 Shanklin et al. (1992). Nutrition Education Needs and Services Among American Indians Participating in a 

Federal Food Assistance Program. Journal of Nutrition Education, 24(6), 298-305. 
12

CHAPTER 2 

THE PRIME VENDOR PILOT

 

BACKGROUND

A Business Process Reengineering (BPR) team developed recommendations for improving 

the administration and operation of the Food Distribution Program in Indian Reservations 

(FDPIR).5

 FDPIR is the most labor-intensive food distribution program. Changes in FDPIR 

also affect the Emergency Food Assistance Program (TEFAP) and the Commodity 

Supplemental Food Program (CSFP). For example, changes in procedures for multi-food 

shipments to recipient agencies from the contract warehouse in Carthage, Missouri, would 

affect most Indian Tribal Organizations (ITO) participating in the FDPIR, as well as the few 

agencies receiving multi-food shipments in the CSFP. 

From the recommendations of the BPR study team, the Senior Oversight Committee of 

USDA (SOC), comprised of senior managers from the Food and Nutrition Service (FNS), the 

Agricultural Marketing Service (AMS), and the Farm Service Agency (FSA), made the 

decision to implement the option of conducting a pilot project in which USDA becomes a 

party to the existing contract which another Federal agency, the Department of Defense 

(DoD), has with commercial wholesalers and distributors. This authorized project, selected 

from one of three alternatives reviewed by the BPR team, was implemented as the Prime 

Vendor Pilot Project. The first year of the Pilot was from July 1, 2001 to June 30, 2002. 

CONDITIONS OF FDPIR PRIOR TO THE PILOT (2000-2001)

The key characteristics of the conditions of FDPIR prior to the implementation of the Prime 

Vendor Pilot were: 

1. Recipient agencies (ITO’s) ordered food items 2 months in advance, and could 

order only once a month. They selected from food items already in inventory at the 

warehouse or in transit. 

 

5

 Food and Nutrition Service, United States Department of Agriculture (2001) Trailblazers for New-Trition: 

FDPIR 2000 Final Report. Alexandria, VA: FNS/USDA. 
13

2. Deliveries were made from two USDA warehouses. (The Farm Service Agency 

(FSA) of USDA divided the country into service zones, and each service zone was 

served by a single warehouse.) 

3. The procurement of commodities with commercial labels for the FDPIR program 

was established in 1996 as a pilot project and has now been expanded to include 20 

commodities. 

Problems with the Current FDPIR System

The BPR Trailblazers report summarized the problems of the FDPIR system as follows: 

1. The Federal procurement system reacted too slowly to demand. 

2. Delivery was frequently late; USDA could not purchase large quantities on time; 

there were contracting problems; program planning for multi-shipments was poor; 

food reaches the central warehouse in Carthage, MO or Visalia, CA on time, but 

was shipped out to Recipient Agencies (RA’s) late. 

3. Federal procurement and distribution procedures are labor-intensive, inefficient, 

and involve many offices with duplicate functions; products were sometimes reordered or substituted, and when inventory was insufficient to fill orders, meager 

products were shared. 

4. The tri-Agency (FNS, AMS, FSA) Processed Commodity Inventory Management 

System (PCIMS), the database that records and monitors participation, inventory 

management, and financial transactions for FDPIR, is inflexible, inefficient, and 

high maintenance. This database tracks the number of people participating in the 

program by ITO, the amount of food ordered by ITOs, and the number of cases 

delivered to ITOs. 

5. There is low customer satisfaction due to product problems – pack size, product 

acceptability, packaging defects, etc. USDA labeling has negative connotations 

with the stigma of charity, deficiency, and poor quality. 

6. There are long delays in introducing new products, often over a year. 

THE PRIME VENDOR PILOT

The Prime Vendor Pilot (PVP) established a partnership between USDA and DoD through 

the Defense Supply Center in Philadelphia (DSCP), to pilot test food distribution operations 

as part of FDPIR through a prime vendor. The participants included the 23 ITOs of the 

Midwest Region, covering Minnesota, Wisconsin, and Michigan. Through the PVP 

agreement, USDA becomes a party to an existing DoD contract between DSCP and 
14

commercial wholesalers/distributors. This is similar to another existing but different contract 

under which DSCP supplies fresh produce to FDPIR. In this FNS/DoD partnership, the first 

year of operation of PVP was July 1, 2001 – June 30, 2002. Reinhart was selected as the 

Prime Vendor for the Pilot out of efficiency and expediency. DoD already had an existing 

contract with Reinhart Foods to supply fruits and vegetables to FDPIR in that area of the 

country. As such, DoD expanded the contract with Reinhart Foods to cover the vending 

services for the Pilot. 

Under the Prime Vendor Pilot project, the Prime Vendor, Reinhart: 

1. Accepted food orders directly from the ITOs: ITOs could order food items and 

receive them as early as three days before the agreed upon delivery date, as 

opposed to waiting for up to 60-90 days after the delivery date as in the year prior 

to the Prime Vendor Pilot (PVP). Under the PVP system, ITOs could order as 

frequently as they wanted rather than once a month as before; 

2. Procured food products pre-approved by FNS. In short, through this agreement, 

USDA bought food directly from the wholesalers/distributors without any 

middleman; 

3. Stored and delivered the foods to all ITOs in the Midwest Region; and 

4. Billed DoD for food procured and services rendered, and DoD billed USDA. 

Under PVP and during the first year of implementation, no new products were introduced. 

Goals of the Pilot

The following goals and objectives were identified for the Pilot: 

1. To improve food delivery service to ITOs that are receiving multi-food shipments in 

the FNS Midwest Region through a prime vendor system. 

Objectives: The objectives of this goal were to: 

A. Improve program operation and administrative efficiency by striving to: 

i. Èffect timely delivery by providing FDPIR commodities to recipient 

agencies (RAs) at the right time and in the right quantities. 

 

ii. Improve inventory management to just-in-time inventory by reducing 

inventory level and cost of inventory management (warehousing, staff, 

etc.). 

iii. Reduce/eliminate warehousing problems. 
15

B. Improve product acceptability and procurement flexibility. Under this 

objective the Pilot will: 

i. Provide all products for the approved established USDA food packages. 

ii. Create greater procurement flexibility by providing ordering and delivery 

options. 

iii. Introduce new products quickly (Note: no new products were 

introduced). 

iv. Improve product acceptability. 

2. To improve ordering and delivery service to ITOs receiving multi-food deliveries in 

the Midwest Region. 

Objectives: The objectives of this goal were to: 

A. To reduce Federal involvement in the food ordering and delivery process. 

i. While FNS would have no appreciable change in the Federal work force, 

the work load for food orders would be transferred from FNS 

Headquarters, AMS, and FSA, to program management. 

ii. To reduce the resources devoted to the processing of food orders. Before 

the Pilot, processing of food orders was undertaken collectively by the 

Regional Offices, FNS Headquarters, AMS, and FSA. 

B. To reduce procurement staff resources in terms of both the number of staff 

and time involved in procurement activities. 

i. At the Regional Office, the workload would shift from food ordering 

management to monitoring activities. Regional Office staff will be less 

involved with the paperwork of food ordering since the ITOs will be 

ordering directly from the Prime Vendor. 

C. To reduce delivery resources both in terms of full time equivalent staff (FTE) 

involved in delivery activities and the time involved in delivery activities. 

i. A reduction in labor would be expected at FSA and AMS if actual staff 

time involved could be determined. 

ii. The implementation of reliable delivery schedules will help ITOs to 

better plan staff resources. 
16

Participating ITOs

All 23 ITO’s of the States of Michigan, Minnesota and Wisconsin participated in the Prime 

Vendor Pilot. The ITOs are listed by State below: 

Michigan (6): Sault St. Marie Tribe, Keweenaw Bay, Bay Mills, Pokagon Potawatomi, 

Little Traverse Bay Bands of Odawa Indians, and Little River Band of 

Odawa Indians. 

Minnesota (7): Leech Lake Band of Ojibwe, Fond du Lac Reservation, Grand Portage, 

White Earth, Bois Forte Reservation, Mille Lacs Band of Ojibwe, and Red 

Lake Chippewa. 

Wisconsin (10): Red Cliff Band of Lake Superior Indians, Ho Chunk Nation, StockbridgeMunsee, Sokaogan Chippewa, Lac Courte Oreilles, St. Croix Reservation, 

Menominee Tribe, Lac du Flambeau, Bad River Band of Lake Superior 

Ojibwe, and Oneida Tribe. 

Three training sessions were conducted for food distribution staff of the participating ITOs 

on the following dates at the respective locations: 

1. April 30, 2001: Fond du Lac Reservation, Cloquet (near Duluth), MN. 

2. May 1, 2001: Oneida Reservation, Oneida (near Green Bay), WI. 

3. May 2, 2001: Little Traverse Bay, Petoskey (near Traverse City), MI. 

The training at each of the three sites was conducted by a team of staff from the Defense 

Supply Center in Philadelphia (DSCP) of the Department of Defense (DoD), the Prime 

Vendor Reinhart Foods, and the FNS staff at the Midwest Regional Office. The training 

included detailed presentations and discussions on the procedures of the proposed food 

ordering system, the logistics of warehousing, and the scheduling of delivery by Reinhart 

Foods. 

The ITOs were familiarized with ordering procedures and informed about technical 

assistance provided by Reinhart Foods in the form of a “Help Desk” telephone line for any 

ITO experiencing trouble with the food ordering system. DoD staff explained the availability 

of a “hot line” for use by ITOs to report any problems they may encounter with the Prime 

Vendor or with food items. Staff from FNS’s Office of Analysis, Nutrition and Evaluation 

(OANE), responsible for the evaluation of the Pilot, made a presentation at the training 

session in Cloquet, MN on the surveys that were planned to be conducted with the ITOs, 

stressing the need for survey responses and the importance of the accuracy of responses to 

the interviews. 
17

COMMODITIES PROVIDED TO ITO’S IN FY 2000

Table 2 shows the list of 78 commodities provided in FY 2000, the year prior to the 

implementation of the Prime Vendor Pilot. 

Table 2. List of Commodities Provided to ITOs in FY 2000 

Almond, RSTD 

Apple Juice 

Applesauce 

Apricot halves 

Bakery mix 

Bakery mix lowfat 

Kidney beans 2# 

Lima beans 2# 

Pinto beans 2# 

Green beans cnd. 

Great northern 2# 

Refried beans 2# 

Vegetarian beans 

Canned beef 

Ground beef 

Beef stew 

Ground bison 

#Butter prints 

Carrots 

Corn flakes 18 

Cereal corn 18 

Cereal corn 12 

Cereal oat RTE 

Cereal rice 13 oz. 

Cereal rice 15 oz. 

Cereal FLK 12 

Cheese, loaf 

Cheese, sliced 

Canned chicken 

Frozen chicken 

Cream style corn 

Whole kernel corn 

Cornmeal 

Crackers 

Cranberry apple Juice 

Potato flakes 

Egg mix 

Evaporated milk 24 

Evaporated milk 48 

Farina 

Flour 5# 

Fruit cocktail 

Grape juice 

Grapefruit juice 

Nonfat dry milk 

Lunchmeat 

Mac & cheese 

Mixed vegetables 

Rolled oats 

Vegetable oil 

Orange juice 

Pasta elbow 

Pasta spaghetti 

Peaches, CND 

Pears, CND 

Peas 

Pineapple juice 

Pineapple, CND 

Peanut butter 18 

Peanut butter 2# 

Roasted peanuts 

Potatoes, sliced 

Prunes 

Egg noodles 

Pumpkin 

Raisins 

Rice 

Shortening 

Tomato soup 

Vegetable soup 

Spaghetti sauce 

Spinach 

Sweet potatoes 

Corn syrup 

Tomato juice 

Tomato sauce 

Tomatoes 

Tuna

THE FOOD ORDERING PROCESS UNDER THE PILOT

Prior to the Pilot, ITOs submitted food orders through FNS, with the ordering process tracked 

through the Processed Commodity Inventory Management System (PCIMS). Under PCIMS 

(FY 2000), all multi-food orders were placed through FNS using established procedures, and 

processed by five separate entities: FNS, FSA, AMS, the Midwest Regional Office, and the 

Carthage, MO Warehouse. Under the Pilot, ITOs placed orders and received food directly 

from Reinhart. The ordering was seamlessly streamlined. ITOs could order as late as 3 days 

prior to the scheduled delivery date rather than having to order two months in advance of 

delivery. The FDPIR food package includes some foods for which there were no commercial 

substitutes. These are: (1) Low-fat bakery mix, (2) Canned beef and chicken, (3) Low-fat 

macaroni and cheese, and (4) Egg mix. For these foods, FNS provided Reinhart with the 

names, addresses and telephone numbers of the vendors, and Reinhart contacted them 

directly to purchase the products. During the planning phase of the Pilot, ITOs were 

concerned that bonus commodity (such as bison) might not be available after the Pilot was 
18 

implemented because the Prime Vendor might not take delivery of them. (Bonus 

commodities are excess foods that are distributed to a requesting ITO, which do not 

constitute part of the official commodity allocation for the respective ITO). However, during 

the fist year of implementation of the Pilot, Reinhart Foods, the Prime Vendor, took delivery 

and distributed bonus commodities just as well as during the preceding year. 
19 

CHAPTER 3 

EVALUATION 

METHODOLOGY

The evaluation component of the Prime Vendor Pilot (PVP) was developed ex post facto to 

the Pilot planning, after the pilot region and beneficiary ITOs had already been selected, and 

about two months before the start of pilot food delivery. At that time the Department of 

Defense (DoD), the partner to the Pilot, had scheduled three training sessions for 

participating ITOs. Evaluation staff used the opportunity to attend one of the training 

sessions at Duluth, MN. A presentation was made on the evaluation as a whole, and in 

particular the pre and post surveys. The roles of the ITOs as key participants and 

respondents to the survey were discussed. A sample questionnaire was reviewed and the 

prompt cooperation of ITOs was solicited. 

Since the Pilot was authorized to be implemented in the entire FNS Midwest Region and 

only in that Region, the opportunity to apply a rigorous and robust experimental design with 

randomization of Pilot and comparison ITOs was precluded by the constraint of including all 

ITOs in the region and providing the service uniformly to all of them as project participants. 

Otherwise, applying a randomized design would have captured spatial variations in terms of 

differences between comparison and Pilot ITOs, as well as temporal differences between the 

two groups. The next possible option was to collect data from one of the regions that did not 

receive the service and compare it against the Pilot region. However, FNS regions are 

disparate entities with different participant characteristics. Any data collected on ITOs or 

participants of another region could not be compared with the characteristics of ITOs of the 

pilot region. Failing the opportunity of randomization or the availability of a reasonably 

comparable region, FNS/OANE selected a pre-post comparison supplemented by 

administrative records data. Thus, the evaluation was designed with those two key 

components. 

Administrative Records Review

Although FDPIR is administered by FNS, two other USDA agencies, AMS and FSA, share 

some responsibility in commodity purchase, warehousing, and delivery. A review of 

administrative records maintained by these three agencies on FDPIR, in particular records of 
20 

the Food Distribution Division of FNS, provided the background information on the 

operation and administration of FDPIR, and the background and operation of the Pilot. In 

addition, information was extracted from databases shared or used individually by the three 

USDA agencies for food procurement, delivery, and warehousing. Data were collected on 

costs incurred by all three participating agencies. The following data systems were utilized: 

1. Automated Inventory System (AIS) – This database is used by ITOs to track food 

deliveries and inventory. From it, the ITO monthly inventory reports are generated. 

AIS is a mobile data system, and the data feeds into the Special Nutrition Program 

Integrated Information System (SNPIIS). 

2. Processed Commodity Inventory Management System (PCIMS) – This is a tri-agency 

database operated by FNS, AMS, and FSA. It tracks food orders submitted by ITOs 

and commodity deliveries to ITOs. It is a historical commodity-tracking database, 

from which data were extracted on food orders and deliveries for the pre-pilot 

implementation period (July 2000-June 2001). 

3. Special Nutrition Program Integrated Information System (SNPIIS) – This database is 

operated by FNS to track food product distribution, with data submitted by the ITOs 

and entered by the regions. From SNPIIS data were extracted on participation 

(people participating in the FDPIR), food inventory, program financing, and the 

amount of food distributed. 

Pre-Test/Post Test Surveys

The evaluation compared results of a pre-survey with a post-survey supplemented by records 

data. The pre-survey was conducted by a mail questionnaire interview of ITO directors 

based on a retrospective recall of FDPIR food delivery conditions, experiences of ITO 

Directors, and their satisfaction with FDPIR during the year before the Pilot (July 1, 2000 – 

June 30, 2001). The identical post–survey was conducted with the same respondents after 

the first year of the Pilot to measure food delivery conditions under the Pilot (with 

DSCP/Reinhart), and to determine the experiences and satisfaction levels of ITO Directors 

with the Prime Vendor Pilot during the first year of the demonstration (July 1, 2001 – June 

30, 2002). 

Questionnaire: The questionnaire used for both pre- and post-surveys contained 59 

questions arranged in five areas: (a) FDPIR program operation and administration – 19 

questions, (b) food ordering and procurement – 8 questions, (c) the food delivery process– 10 

questions, (d) warehousing and inventory management – 10 questions, and (e) cost reduction 

– 12 questions. The survey questions and response frequencies are presented in tables and 

graphs in the appendix. 

Respondents: All 23 ITOs that participated in the Pilot were surveyed. As mentioned 

earlier, six of the ITOs were located in Michigan, seven in Minnesota, and ten in Wisconsin. 

The respondents were the Directors of the food distribution programs in the ITOs. 
21 

Surveys: The original intent of the study was to conduct the pre-survey interviews in JulyAugust 2002. However, as soon as the pre-survey was ready to be implemented, the Office 

of Management and Budget (OMB) required the submission of a clearance package 

consisting of data collection/survey instruments, estimates of burden for responding agencies 

and the Federal Government (FNS, AMS, FSA, and the Kansas City warehouse), and 

justifications for the study, in compliance with the Paperwork Reduction Act of 1996. The 

process also required that the estimates be announced in the Federal Register for solicitation 

of comments from the public at large. A minimum of 90 days is usually required to complete 

the entire process. 

The OMB package was submitted in August and clearance was not received until January 

2002. Thus, due to the late involvement of the evaluation team in the Pilot and the delay in 

the OMB clearance, the pre-survey could only be finally conducted in January-February 

2002. A special effort was made to impress upon respondents to recall conditions and 

experiences that occurred during the previous year (July 1, 2000 – June 30, 2001). The postsurvey was conducted soon after the end of the first year of the Pilot in July/August of 2002. 

Both surveys had 100% response rates. 

ANALYSIS

Data collected from administrative records and databases provided by FNS, AMS, and FSA 

were analyzed using cross-tabulation, with comparisons of the trends for the years before and 

during the Pilot implementation. These data include information on the participating ITOs, 

the amount and type of commodities ordered and received, and expenditures for 

commodities, transportation, handling, storage, program administration and staffing. Based 

on the Consumer Price Index (CPI), expenditure data for the year before the Pilot was 

adjusted for annual inflation by a figure of 0.0357. Costs were compared for the two periods 

for food, miscellaneous expenses (transportation, handling, and warehousing), and program 

administration. In most cases, the percentage change of the Pilot year over the year before 

the Pilot was calculated. The benefits received by individual participants in terms of food 

quantity and costs were computed and compared for the pre-Pilot and Pilot years 

respectively. 

The data for both surveys were analyzed statistically using two methods. The first method 

analyzed differences between the years prior to and during the Pilot by subjecting survey 

responses to a paired test of means to see if, and to what extent, there were differences 

between the Pilot and the previous year. To do this, the null hypothesis was applied and 

tested. The null hypothesis is a statistical postulation of whether, and sometimes in which 

direction, a sample mean differs from a population mean or another sample mean. It usually 

requires a statistical test to prove or refute it, and the test must specify a high level of 

probability that the occurrence of the event (difference) is not due to chance. The hypothesis 

is accepted if the results of the statistical test affirm the postulation (of no difference), and 

rejected if the postulation is refuted by the statistical test. The paired means t-test was 

particularly suitable for this study because the same ITOs and respondents were surveyed in 

both surveys. 
22 

The paired samples t-test was applied to compare the means of identical variables from the 

pre and post questionnaires grouped into five areas: FDPIR program operation and 

administration, food ordering, food delivery, warehousing, and costs. A probability level of 

95% was specified and selected as the confidence limit. The results of the t-tests are 

presented in the next chapter. 

The second statistical method used to analyze the survey data was the application of the chisquare technique to determine differences within groups for each of the two survey periods. 

Most of the variables on the questionnaires were at least ordinal level. Responses to these 

variables were recoded into dichotomous categories comprised of: (1) ITOs that expressed no 

or low approval ratings, and (2) ITOs that expressed average to high satisfaction. The intent 

was to see if there was any statistically significant difference in the internal structure of 

responses of ITOs between the two periods. In other words, were the responses to some 

variables clustered around the low end of the scale versus the high end for the pre and post 

conditions? The chi-square results and significance levels are presented in tables along with 

histograms of the frequency distributions in the appendix. 

Data analysis was conducted using SPSS Software Package, Version 10.0 for Windows. 
23 

CHAPTER 4 

RESULTS 

INTRODUCTION

This chapter presents the analysis of both the administrative and questionnaire data, and the 

results of the evaluation. The first section of the chapter shows the process evaluation, with 

cross-tabulations and comparisons of the administrative data collected mostly from FNS 

records and USDA databases. Comparisons are made for the year prior to the Pilot (FY 

2000-2001) and the first year of the Pilot (FY 2001-2002). The data include participants 

served, households, the quantity of food delivered to each ITO, food costs, administrative 

and operational costs, and staffing levels. The second section of the chapter presents a 

detailed statistical comparison of the two surveys, with statistical tests of differences (paired 

t-test) between the years prior to and during the Pilot. 

The results shown in this chapter are supplemented by another analysis, the chi-square

technique, which assesses within group differences in survey response patterns. The results 

of the chi square analysis and graphical depictions of frequencies of survey responses are 

presented in the appendix. 

PROCESS EVALUATION: ADMINISTRATIVE RECORDS REVIEW

The process evaluation section reviews administrative records data and evaluates the 

operation and performance of the Pilot through the first year of implementation against the 

conditions of the Food Distribution Program on Indian Reservations (FDPIR) during the year 

prior to the Pilot in ITOs of the Midwest region. Data were collected for both years from 

USDA agencies and the Prime Vendor on the quantity and costs of food delivered, 

participants and households served, program administration and operation, transportation, 

handling, and storage costs, and staffing levels. In some instances, data on program 

administration, operational and staffing costs, and other expenditures incurred by USDA 

agencies were not available for the year prior to the Pilot. For the first year of the Pilot, all of 

the expense figures were available, broken down into monthly lump payments made to the 

Prime Vendor, covering the costs of food as well as delivery, storage, and administration. 

Comparisons are presented for available data. 
24 

Participants and Households

The average monthly number of participants served in the 23 Midwest ITOs during the year 

prior to the implementation of the Pilot was 8,842 in 3,601 certified households (see Table 

3). The mean household size was 2.46 participants per household. During the first year of 

the Pilot, there were only minor population changes: participants declined slightly by nearly 

one percent; households increased by over two percent; and the household size declined by 

over three percent. 

 Table 3. Participants and Households Served

FY 2000-01 FY 2001-02

Category (Pre-Pilot) (Pilot) % Change

Participants 8,842 8,767 -0.85

Households 3,601 3,688 2.42

Participants/Household 2.455 2.377 -3.18

Food Delivery During FY 2000-2001

Food delivery to the ITOs during FY 2000-2001 was done by USDA. Data on Table 4 show 

the number of cases delivered to each ITO, the number of participants per ITO, and the mean 

number of cases received by each participant during the year before the Pilot. The total cases 

delivered to the 23 Midwest ITOs was 228,521, ranging from 605 in Grand Portage to 34,184 

in Sault St. Marie Tribe of Chippewa Indians, with a mean of 9,936 per ITO. The total 

number of participants was 8,842 clients, ranging from 33 to 1,145, with a mean of 384 per 

ITO. The overall mean number of cases distributed to each participant for the entire region 

was 25.9, ranging from 16.5 in Sokaogan Chippewa to 34.3 in Mille Lacs Band of Ojibwe.6

Figure 1 shows a scatter plot that depicts the relationship between the size of the ITO and the 

number of cases distributed to each participant during the year July 1, 2000 – June 30, 2001. 

A correlation coefficient was computed, and statistically, there appears to be a moderate 

linear association between the size of the ITO and the benefits participants received during 

FY 2000-2001 in terms of cases per year (rij = 0.352). This means that the smallest ITOs 

(Sokaogan, Grand Portage, Little River, Stockbridge-Munsee, Little Traverse Bay, Lac du 

Flambeau etc.) generally ordered and received the fewest cases per participant per year, 

whereas the largest ITOs (Sault St. Marie, White Earth, etc.) received the largest quantity of 

food in terms of cases per participant. A few small ITOs are among the group that received 

that largest number of cases. These are Mille Lacs, St. Croix Reservation, and Bay Mills. 

 

6

 The numbers of cases vary because ITOs order different types and varying quantities of food. 
25 

Table 4. Number of Cases Delivered to ITOs, Participants, and Cases Delivered

 Per Participant During FY 2000-01 (Pre-Pilot)

 Cases/

ITO Cases Participants Participant

1 Sault St. Marie Tribe of Chippewa Indians 34,184 1,145 29.9

2 Keweenaw Bay Indian Community 13,025 453 28.8

3 Bay Mills 5,019 169 29.7

4 Pokagon Band of Potawatomi Indians 4,381 188 23.3

5 Little Traverse Bay Bands 2,164 107 20.2

6 Little River Band of Ottawa Indians 1,054 52 20.3

7 Leech Lake Band of Ojibwe 17,683 620 28.5

8 Fond du Lac Reservation 7,589 340 22.3

9 Grand Portage 605 33 18.3

10 White Earth 31,707 976 32.5

11 Bois Forte Reservation 3,755 176 21.3

12 Mille Lacs Band of Ojibwe 5,185 152 34.1

13 Red Lake 11,109 458 24.3

14 Red Cliff Band of Lake Superior Indians 6,550 254 25.8

15 Ho Chunk Nation 12,232 450 27.2

16 Stockbridge-Munsee Community 1,785 88 20.3

17 Sokaogon Chippewa Community 1,731 105 16.5

18 Lac Courte Oreilles Tribe 19,230 935 20.6

19 St. Croix Reservation 4,355 141 30.9

20 Menominee 17,743 731 24.3

21 Lac du Flambeau 4,906 267 18.4

22 Bad River Band of Lake Superior Ojibwe 8,204 343 23.9

23 Oneida Tribe of Wisconsin 14,325 659 21.7

Total 228,521 8,842 25.9

Mean 9,936 384.4 25.9

The correlation coefficient (r) of cases per participant and ITO size is 0.352.

Note: Bonus bison distributed was 35,352 pounds, costing $106,000. Bonus almonds distributed 

cost $56,000.
26 

Fig. 1. The Relationship Between Size of ITO and Cases Distributed 

Per Participant During FY 2000-2001 Pre-Pilot)

Bay Mills Keweenaw Bay Sault St. Marie

Bois Forte

Pokagon

Sokaogan

Stockbridge

White Earth

Lac Courte Oreilles

St. Croix

Mille Lacs

Red Cliff

Fond Du Lac

Bad River

Ho Chunk

Leech Lake

Menominee

Oneida

Red Lake

Lac Du Flambeau

Little River

Little Traverse Bay

Grand Portage

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

0 200 400 600 800 1,000 1,200 1,400

Participants Per ITO

Cases Per Participant

Mean = 25.9; s.d. = 4.91; rij =0 .352. 

Food Delivery During the First Year of the Pilot (FY 2001-2002)

Food delivery, transportation, storage and handling, and administration during the Pilot (FY 

2001-2002) were all undertaken by the Prime Vendor, Reinhart Foods. Data on Table 5 and 

Figure 2 show that a total of 235,378 cases of food were delivered to the 23 ITOs of the 

Midwest Region during the period July 2001- June 2002 – the first year of the Pilot. The 

distribution ranged from less than 2,000 cases per year received by small ITOs (Grand 

Portage, Sokaogan Chippewa Community, and Stockbridge-Munsee Community) to over 

27,000 cases per year received by the large ITOs (White Earth and Sault St. Marie). The 

mean number of cases delivered by Reinhart Foods to each ITO during the year was 10,234, 

and the mean number of cases distributed to each participant during the year was 26.9. 

Using data on Figure 5, a correlation coefficient was computed relating the number of cases 

per participant with the size of the ITO, and the result showed that there was practically no 

correlation between the two (rij = 0.012). This implies a more even distribution of food 

benefits under the Pilot across ITOs of different sizes. 
27 

Table 5. Number of Cases Delivered to ITOs, Participants, and Cases Delivered 

 Per Participant During FY 2001-02 (Pilot)

 Cases/

ITO Cases Participants Participant

1 Sault St. Marie Tribe of Chippewa Indians 28,409 1,021 27.8

2 Keweenaw Bay Indian Community 11,493 477 24.1

3 Bay Mills 3,886 163 23.8

4 Pokagon Band of Potawatomi Indians 4,109 190 21.6

5 Little Traverse Bay Bands 3,583 116 30.9

6 Little River Band of Ottawa Indians 3,171 116 27.3

7 Leech Lake Band of Ojibwe 21,221 652 32.5

8 Fond du Lac Reservation 8,416 317 26.5

9 Grand Portage 1,636 56 29.2

10 White Earth 27,386 1,010 27.1

11 Bois Forte Reservation 4,727 158 29.9

12 Mille Lacs Band of Ojibwe 4,306 148 29.1

13 Red Lake 7,974 287 27.8

14 Red Cliff Band of Lake Superior Indians 6,708 243 27.6

15 Ho Chunk Nation 16,514 610 27.1

16 Stockbridge-Munsee Community 1,897 70 27.1

17 Sokaogon Chippewa Community 1,860 70 26.6

18 Lac Courte Oreilles Tribe 22,712 924 24.6

19 St. Croix Reservation 2,528 135 18.7

20 Menominee 20,806 851 24.4

21 Lac du Flambeau 7,173 283 25.3

22 Bad River Band of Lake Superior Ojibwe 9,315 317 29.4

23 Oneida Tribe 15,548 553 28.1

Total 235,378 8,767 26.9

Mean 10,234 381 26.9

The Correlation coefficient (r) of cases per participant and ITO size is 0.012. 

Note: Bonus commodities distributed cost $620,652.
28 

Fig. 2. The Relationship Between Size of ITO and Cases Distributed Per 

 Participant During FY 2001-2002 (Pilot) 

Sault St. Marie

Bay Mills Keweenaw Bay

Bois Forte

Pokagon

Sokaogan

Stockbridge

White Earth

Lac Courte Oreilles

St. Croix

Mille Lacs Red Cliff

Fond Du Lac

Bad River

Ho Chunk

Leech Lake

Menominee

Oneida

Red Lake

Lac Du Flambeau

Little River

Little Traverse Bay

Grand Portage

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

0 200 400 600 800 1,000 1,200 1,400

Participants Per ITO

Cases Per Participant

Mean = 26.9; s.d. = 3.04; rij = 0 .012. 

Changes between the prior year (USDA) and the first year of PVP (Reinhart) in participants 

served and mean cases distributed to each participant are shown on Table 6. The total number 

of cases delivered increased by 3%. As shown earlier, participants declined by one percent, 

and on average, each participant received one case more under PVP than the year before. 

 Table 6. Change in Food Delivered and Participants

FY 2000-01 (Pre) FY 2001-02 (PVP) % Change

Total Cases 228,521 235,378 3.0

Participants 8,842 8,767 -0.9

Mean Cases Delivered to Each Participant 25.9 26.9 3.9

It can be noticed from a comparison of Figures 1 and 2 that the gap between ITOs in terms of 

cases of food received by each participant was narrowed considerably during PVP. This 

means that there was more even food distribution under the Pilot than the year before. 
29 

Operational and Food Costs

A cost comparison was initially proposed with the assumptions that: (1) for each USDA 

agency, cost estimates would be provided for staff who would have been displaced or reassigned due to PVP regardless of whether or not they were retained or re-assigned; and (2) 

estimates for the cost of the warehouse space in Carthage which USDA used prior to the Pilot 

to store food before distribution to the ITOs, would also be provided, regardless of whether 

or not the space was re-assigned or re-allocated.7 

Whereas many of the other costs were available, unfortunately, neither staff cost savings nor 

savings due to warehouse space re-allocation could be provided by the agencies. Further, all 

staff in all agencies involved in FDPIR and food distribution to the pilot ITOs before PVP 

and all the warehouse space used by USDA for storing food before distribution to the pilot 

ITOs were retained en bloc. As such, no costs were saved in these two areas during the first 

year of PVP. Consequently, a cost-savings analysis was not possible. 

The rationale given by the USDA agencies for this lack of reductions was that since the Pilot 

was tested only in one region, staff and warehouse space reductions did not form a large 

enough critical mass that would require staff re-assignments or warehouse space reallocations, particularly since its duration was uncertain. Further, the Carthage warehouse 

served a larger area than the Pilot region. However, should the Pilot be extended to more 

regions or the whole nation, then cumulative reductions of staff time and warehouse space 

could result in significant savings by the prime vendor approach over the current FDPIR 

system. 

Based on the above scenario, the cost analysis provided here is a comparison of available 

expense figures on operational and food costs for the pre-Pilot year (FY 2000-2001) and the 

first year of PVP (FY 2001-2002). Data for the year prior to PVP are broken down into 

separate components of food, distribution and administrative expenses. On the other hand, 

data for the first year of PVP are reported in monthly lump payments made to the contractor 

covering food and administrative costs without being separated into different components. 

Operational and Food Costs for FY 2000-2001

Administrative Costs

As noted earlier, all three USDA agencies involved in FDPIR (FNS, AMS, and FSA) 

handled some aspects of food distribution during July 2000-June 2001. They incurred some 

costs separately and some database management (PCIMS) and computer support costs 

jointly. FNS costs, including headquarters, the Regional Office, and the Carthage Warehouse 

expenses, were not available for the year before the Pilot. The rest of the costs incurred by 

the other agencies for the Midwest Region, for food ordering, delivery, database management 

and computer services amounted to $54,120 – approximately 11 percent of FDPIR charges. 

 

7

 The Carthage warehouse serves a large area that includes the Midwest Region. The Midwest ITO’s represent 

11% of FDPIR costs. 
30 

Food Costs for 2000-01

Table 7 shows food costs by cases delivered prior to the Pilot. A total of 228,521 cases of 

food were delivered, with each ITO receiving an average of 9,936 cases. The total food cost 

adjusted for annual inflation was $3,793,417, which averaged to $163,931 per ITO. In terms 

of benefits, each participant received 26 cases of food on average costing $429.02 per person 

per year in FY 2001 dollars. The cost per case adjusted for inflation was $16.57. 

 Table 7. Cases and Cost of Commodity Delivered to ITOs for

 Distribution to Participants During FY 2000-01 (Pre-Pilot)

ITO Cases Cost

1 Sault St. Marie Tribe of Chippewa Indians 34,184 486,194.71

2 Keweenaw Bay Indian Community 13,025 184,770.40

3 Bay Mills 5,019 67,357.83

4 Pokagon Band of Potawatomi Indians 4,381 63,421.21

5 Little Traverse Bay Bands 2,164 33,248.84

6 Little River Band of Ottawa Indians 1,054 14,800.04

7 Leech Lake Band of Ojibwe 17,683 262,337.57

8 Fond du Lac Reservation 7,589 135,819.69

9 Grand Portage 605 8,001.90

10 White Earth 31,707 427,877.98

11 Bois Forte Reservation 3,755 53,427.85

12 Mille Lacs Band of Ojibwe 5,185 68,206.85

13 Red Lake 11,109 178,719.17

14 Red Cliff Band of Lake Superior Indians 6,550 94,501.11

15 Ho Chunk Nation 12,232 167,469.11

16 Stockbridge-Munsee Community 1,785 27,822.35

17 Sokaogon Chippewa Community 1,731 24,120.69

18 Lac Courte Oreilles Tribe 19,230 276,394.45

19 St. Croix Reservation 4,355 58,290.56

20 Menominee 17,743 273,873.03

21 Lac du Flambeau 4,906 75,882.24

22 Bad River Band of Lake Superior Ojibwe 8,204 123,390.94

23 Oneida Tribe of Wisconsin 14,325 219,530.15

Total Food Costs 228,521 3,325,459

Other Costs - Transptn, Handling, Storage. 337,201

Total Costs for Food, Transptn, Handling, etc. 3,662,660

Total Cost in 2001 dollars (*.0357). 3,793,417

Mean Per ITO 9,936 163,931

Total Participants 8,842 -

Mean Per Participant 25.9 429.02
31 

Operational and Food Costs During the Pilot (FY 2001-2002)

During the first year of PVP, $5,216,185 was spent on food procurement, food ordering, 

transportation and delivery (see Table 8). By far the lowest expenditure was in July 2001, 

the first month, when set-up and logistical arrangements were still in progress. The highest 

monthly expenditure was in January 2002 - over 50% more than average. Expenditure in 

December 2001 was sharply lower than the preceding and following months. In general, 

expenditures seemed high during Winter and much lower during Summer. 

Table 8: Monthly Expenditure for Food, Transportation, Handling,

 Warehousing, and Delivery During FY 2001-02 (Pilot)

Year Month Amount

2001 July $96,589

August $429,893

September $412,582

October $474,672

November $599,383

December $399,572

2002 January $679,837

February $504,822

March $395,592

April $372,799

May $410,193

June $420,647

Total $5,216,185

Mean $434,682

Fig. 3. Monthly Expenditure for the Prime Vendor Pilot

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May02Jun-02

Months

Dollars

Monthly Expenditure

Mean
32 

The decrease in monthly food delivery and participation during December is explained as 

due to tribal gaming per capita payments, which decreased participation because many 

households became income ineligible for that period. 

The total food delivery to all 23 ITOs during PVP was 235,378 cases (see Table 9). The 

adjusted total costs for food, transportation, storage, and handling were $5,160,965. On 

average, each ITO received 10,234 cases costing $224,390, and each participant received 27 

cases costing $588.68. The cost per case for food delivered was $21.88. 

 Table 9. Cases and Cost of Commodity Delivered to ITOs for 

 Distribution to Participants During FY 2001-02 (Pilot)

ITO Cases Cost

1 Sault St. Marie Tribe of Chippewa Indians 28,409 520,466

2 Keweenaw Bay Indian Community 11,493 249,945

3 Bay Mills 3,886 124,602

4 Pokagon Band of Potawatomi Indians 4,109 77,351

5 Little Traverse Bay Bands 3,583 92,386

6 Little River Band of Ottawa Indians 3,171 108,257

7 Leech Lake Band of Ojibwe 21,221 454,285

8 Fond du Lac Reservation 8,416 171,904

9 Grand Portage 1,636 34,123

10 White Earth 27,386 564,067

11 Bois Forte Reservation 4,727 100,067

12 Mille Lacs Band of Ojibwe 4,306 60,493

13 Red Lake 7,974 200,711

14 Red Cliff Band of Lake Superior Indians 6,708 150,903

15 Ho Chunk Nation 16,514 419,678

16 Stockbridge-Munsee Community 1,897 89,540

17 Sokaogon Chippewa Community 1,860 52,551

18 Lac Courte Oreilles Tribe 22,712 452,355

19 St. Croix Reservation 2,528 53,284

20 Menominee 20,806 443,894

21 Lac du Flambeau 7,173 138,928

22 Bad River Band of Lake Superior Ojibwe 9,315 233,592

23 Oneida Tribe of Wisconsin 15,548 422,805

Total for food, transptn, storage, handling, etc. 235,378 5,216,185

Less Milk Adjustment* 55,220

Adjusted Total for foood and other costs 5,160,965

Mean Per ITO 10,234 224,390

Total Participants 8,767 -

Mean Dollars and Cases Per Participant 26.9 588.68

* Actual milk cost was $1.15/lb instead of $2.12/lb. Milk cost adjustment for 2,372 cases was 

 $55,220. (Note: one case = 24 pounds).
33 

Pre-Post Comparison of Total Expenditure By Category 

During the pre-Pilot year, the adjusted total cost for food, transportation, handling (in/out) 

and storage (for the two months minimum for most delivered commodity) for the 23 ITOs 

was $3,793,417 (see Table 10). Adjusted administration cost before PVP was $56,052. 

Thus, the adjusted total expense before the Pilot for food, distribution and administration was 

$3,849,469. During the first year of the Pilot, the total adjusted expenditure for food, 

distribution and administration was $5,220,915. This included distribution costs for the 

increased bonus commodity during PVP. Food cost alone during the first year of PVP, 

$3,519,914, represented only 2.2 % increase over the prior year’s adjusted food costs. 

Table 10. Comparison of Expenditure on Food, Distribution and Program 

Administration Costs Before and During the Pilot 

 FY 2000-01 (Pre-Pilot) FY 2001-02 Difference betCategory USDA (Pilot) ween Pre (adj.)

 Dollars Adj. Dollars* DSCP/Reinhart and Pilot

Food and Distribution Costs

 Value of Food Distributed $3,325,459 $3,444,178 $3,519,914*** $75,736

 Transportation $215,775 $223,478 - -

 Handling (in/out) $61,783 $63,989 - -

 Storage (two months)# $59,643 $61,772 - -

Total $3,662,660 $3,793,417 $5,160,965 ## $1,367,548

Program admin. (11%)** $54,120 $56,052 $59,950 $3,898

Total Costs $3,716,780 $3,849,469 $5,220,915 $1,371,446

 * Includes one year annual inflation adjustment factor of 0.0357 to Pre-Pilot (FY 2000-01) dollars.

 ** Excludes FNS administrative costs for FY 2000-2001 as well as corresponding reductions under PVP.

*** Represents the food value in SNPIIS adjusted for milk cost.

 # Two months storage Represents the minimum storage time.

 ## Represents the total paid to the prime vendor adjusted for milk cost; includes marginal cost increase for

 the distribution of increased bonus commodity.

Comparing food and distribution expenditures (transportation, handling and storage), the cost 

increase of the Pilot over the year prior was $1,367,548 or 35.6 percent. Under the Pilot, 

FNS still incurred administrative costs of $59,950. Thus, the overall total expenditure on 

food, distribution and administration was $3,849,469 for the pre-Pilot year and $5,220,915 

for the first year of the Pilot, resulting in a total cost difference of $1,371,446 or 35.6 percent. 

During the planning stage, it was estimated that the Pilot cost increase would be 40 percent 

over the pre-Pilot costs. In this analysis, the excess cost due to the Pilot has been estimated 

to be 35.6 percent, which is 4.4 percent less than the original estimate. 
34 

One explanation for the high food prices experienced by DSCP and Reinhart Foods during 

PVP was that, as a commercial distributor that typically services institutional food service 

establishments, Reinhart carries food in number 10 cans (about one gallon) and meats by the 

case weighing 35 to 40 pounds. It does not carry small consumer/household package sizes, 

such as 15 ounce-cans and one-pound quantity of ground beef. For the Prime Vendor Pilot, 

Reinhart Foods had to purchase household size cases to fill orders for ITOs. Such small 

quantities purchased specifically for ITOs (usually a pallet or two at a time), did not generate 

enough purchasing power to obtain lower wholesale or discounted prices. 

Normally, under FDPIR, USDA purchases whole truckloads of a single food item directly 

from the canners, manufacturers, or producers to supply the ITOs. This was the procedure 

during the year prior to the Pilot. On the contrary, during the first year of PVP, Reinhart 

Foods had to purchase small quantities directly from even local supermarkets and store 

chains. In fact, Reinhart purchased food from the distributor that services IGA Supermarkets 

in the Midwest area. Another reason for the higher prices experienced by Reinhart was that 

the contractor, the Defense Supply Center in Philadelphia (DSCP) bills FNS monthly for 

food items purchased during the month at the actual Prime Vendor case price plus a DSCP 

surcharge of 5.6 percent. This surcharge includes personnel costs for receiving and 

processing food orders, acquisition, vendor invoicing, customer assistance, and logistic 

support. The addition of the surcharge increased the cost as well. 

At the start of the Pilot, Reinhart had no historical data for the ordering patterns of ITOs for 

prior years. Reinhart was furnished with the list of the items on the USDA food package and 

data on the number of cases of food products delivered to the ITOs during the prior year (FY 

2000-2001). Reinhart had to go out in the open market and commercially acquire over 50 of 

the food items in household size packages that it had never carried in its inventory before. In 

purchasing these new products, it estimated the number of pallets of food that would be 

needed to fill orders for a month. In some instances, orders were placed for more product 

than the supplying company had on hand, and it took a while for the supplier to determine the 

amount of inventory needed to ensure that no orders were shorted. Thus when the Pilot was 

first initiated, there were shortages in the Prime Vendor’s orders, which were later replaced. 

Under the FDPIR ordering system (before PVP), orders were placed two months before the 

expected delivery date. If some food items ordered by an ITO were not in stock or inventory 

was not enough to fill all the ITO’s orders, the regional coordinator would call the ITO and 

tell it to place another order for a substitute item, or to reduce the number of cases ordered 

for the items that are in limited supply. The ITO would oblige accordingly. In reality, prior 

to the Pilot, ITOs did not get what they originally ordered, but adjustments were made to the 

orders so that they appeared to get all that they requested. On the other hand under the Pilot, 

once the ordering process was regularized, ITOs got what they wanted and very swiftly. 

Cost Comparison: Mean Expenditure Per Participant

Table 11 presents a comparative summary of the mean expenditures per participant served 

for different cost components for the pre-Pilot and Pilot years, with pre-Pilot figures adjusted 
35 

for annual inflation. The adjusted dollar value of the food delivered increased by 2.2 percent. 

Since participants declined by nearly one percent, the benefit increase in dollars of food 

value per participant was from $390 to $401 or three percent. When transportation, handling, 

and storage costs were added, the total cost increase was 36 percent. Finally, when 

administrative costs were added, the total cost difference for all expenditures in each year 

remained about the same at 35.6 percent. It must be noted that if all FNS administrative 

costs for FY 2000-2001 were available, the total cost difference would have been much less. 

 Table 11. A comparison of Mean Expenditures Per Capita Participant

 FY 2000-2001 (Pre-Pilot) FY 2001-2002 (Pilot) 

Cost Category Adjusted $/capita $/capita Difference 

 Dollars Dollars* Part. Dollars** Part. in dollars

Cost of Food Distributed 3,325,459 3,444,178 390 3,519,914 401 75,736

Mean Food Costs Per ITO 144,585 149,747 - 153,040 - 3,293

Cost of Food, Transportation, 

 Handling and Storage 3,662,660 3,793,417 429 5,160,965 589 1,367,548

Mean Cost Per ITO 159,246 164,931 - 224,390 - 59,459

Total Cost Including Admin. 3,716,780 3,849,469 435 5,220,915 596 1,371,446

Mean Cost Per ITO 161,599 167,368 - 226,996 - 59,628

Note: Total participants were 8,842 for FY 2000-2001 and 8,767 for FY 2001-2002.

* Adjusted for inflation (*.0357)

** Adjusted for milk cost; includes marginal cost increase for the distribution of increased bonus commodity.

Bonus Commodity Delivered Before and During the Pilot

During the pre-Pilot year, $56,000 of almonds and $106,000 of bison were delivered to the 

23 ITOs. During the Pilot, a variety of bonus commodities were delivered to the 23 ITOs 

costing $620,652. Thus, with $162,000 of bonus commodity distributed in the pre-Pilot year, 

the increase (by value) in bonus commodities delivered during the first Pilot year over the 

previous year was 283% - nearly three times more. It is also worth noting that the increase in 

bonus commodity distributed resulted in more distribution costs to the Prime Vendor. 

Staff-Participant Ratio

The number of participants varied considerably by ITO from less that 100 in some ITOs to 

over 1,000 in others in both years (see Table 12). The number of staff per ITO ranged from 1 

to 16 before and 4 to 18 during the Pilot. Before PVP, total participants and staff were 8,842 

and 221 respectively, with a participant-staff ratio of 40. Mean participant and staff figures 

were 384.4 and 9.6 per ITO respectively. During the Pilot, participation declined by 75 

people to 8,767 but total staff increased to 236, resulting in a participant-staff ratio of 37.1. 
36 

Average participants per ITO declined to 381.2, but average staff per ITO increased from 9.6 

to 10.3 (6.8%). This means that there were fewer participants per staff during the Pilot. 

 Table 12. Staff - Participant Ratio in Midwest ITO's Before and During the Pilot

 FY 2000-01 FY 2001-02 Pecent Change Over

 (Pre-Pilot) (Pilot) Pre-Pilot

ITO Partici- Part./ Partici- Part./ Partici- Participant/

 pants Staff Staff ratio pants Staff Staff ratio pants Staff Staff ratio

Red Cliff Band 254 10 25.4 243 11 22.1 -4.3 10.0 -13.0

Ho Chunk Nation 450 12 37.5 610 15 40.7 35.6 25.0 8.4

Stochbridge-Munsee 88 10 8.8 70 10 7.0 -20.5 0.0 -20.5

Bay Mills 169 12 14.1 163 12 13.6 -3.6 0.0 -3.6

Leech Lake 620 12 51.7 652 13 50.2 5.2 8.3 -2.9

Fond du Lac 340 10 34.0 317 11 28.8 -6.8 10.0 -15.2

Pokagon Potawatomi 188 8 23.5 190 8 23.8 1.1 0.0 1.1

Grand Portage 33 9 3.7 56 8 7.0 69.7 -11.1 90.9

Lac Courte Oreilles 935 15 62.3 924 15 61.6 -1.2 0.0 -1.2

St. Croix 141 7 20.1 135 8 16.9 -4.3 14.3 -16.2

Menominee 731 16 45.7 851 4 212.8 16.4 -75.0 365.7

Keweenaw Bay 453 11 41.2 477 10 47.7 5.3 -9.1 15.8

Lac du Flambeau 267 5 53.4 283 5 56.6 6.0 0.0 6.0

White Earth 976 11 88.7 1,010 11 91.8 3.5 0.0 3.5

Little River Band 52 6 8.7 116 9 12.9 123.1 50.0 48.7

Sokaogan 105 1 105.0 70 5 14.0 -33.3 400.0 -86.7

Bois Forte 176 11 16.0 158 12 13.2 -10.2 9.1 -17.7

Bad River Band 343 13 26.4 317 18 17.6 -7.6 38.5 -33.3

Mille Lacs 152 6 25.3 148 8 18.5 -2.6 33.3 -27.0

Oneida 659 7 94.1 553 8 69.1 -16.1 14.3 -26.6

Little Traverse Bay 107 9 11.9 116 8 14.5 8.4 -11.1 22.0

Red Lake Band 458 14 32.7 287 17 16.9 -37.3 21.4 -48.4

Sault Ste. Marie 1,145 6 190.8 1,021 10 102.1 -10.8 66.7 -46.5

Total 8,842 221 40.0 8,767 236 37.1 -0.8 6.8 -7.7

Mean 384.4 9.6 40.0 381.2 10.3 37.1 -0.8 6.8 -7.7

Note: Participant counts were collected from FNS databases, and staff FTEs were collected from the pre/post ITO surveys. 
37 

COMPARISONS OF PRE AND POST RESPONSE PATTERNS (T-TEST)

The object of PVP was to streamline food delivery and improve it to just-in-time delivery, 

reduce costs, and ultimately increase the satisfaction of recipient ITOs with FDPIR. The 

questionnaire was therefore arranged to capture variations in these different areas. Most of 

the variables were ordinal such that the responses from the two surveys were amenable to 

statistical testing of differences in response patterns between the two survey periods. In 

short, were ITOs more satisfied with the new system as implemented under the Prime 

Vendor contract with respect to the questionnaire’s five evaluated areas of administration, 

ordering, delivery, warehousing, and cost? 

Hypothesis and Assumptions

The key assumption on which the hypothesis hinges is that all other factors that are not 

included in the package of services provided in the Pilot remain equal between the pre and 

post measurement periods. These factors would relate to FDPIR administration, ordering, 

delivery, warehousing, cost influences (pricing, inflation, etc.), and the food management and 

distribution conditions within the ITOs. Based on this, the null hypothesis (or alternate) was 

applied to the analysis: 

Ho: μpre = μpost, 

or H1: μpost > μpre

A simple test of means was applied using the paired t-test technique at 95% confidence limits 

(i.e. P<0.05). The tests were applied to 15 variables relating to the operation and 

administration of the FDPIR program, seven variables on food ordering and product choice, 

six variables on food delivery operations, nine variables on warehousing and inventory 

management, and eleven variables on cost reduction. 

Differences in Pre and Post Response Patterns

This section presents the statistical analysis of differences in the responses of ITO Directors 

in the pre/post surveys. In the design of the surveys, both questionnaires were structured 

identically to allow for comparisons of responses through statistical analysis to see if there 

are any significant differences in perceptions and satisfaction levels before (July 2000-June 

2001) and during (July 2001-June 2002) the Prime Vendor Pilot. A t-test was performed for 

each variable pair, and results were tabulated according to the major areas of the 

questionnaire. Summaries of the mean responses, differences, t-values, and levels of 

significance are shown on Table 13. 
38 

 Table 13. Statistical Tests for Differences Between Means of Pre and Post Surveys (T-test)

 Means Diff.

VARIABLE (QUESTION) T1 T2 T2-T1 SD SE T P

FDPIR OPERATION AND ADMINISTRATION

Q2: How much product variety was there? 2.04 2.52 0.48 1.08 0.23 2.12 0.05

Q3 How acceptable were USDA labelled products? 2.57 3.04 0.47 0.95 0.20 2.42 0.02

Q4: How satisfied were you with commodity pack size? 3.13 3.39 0.26 0.62 0.13 2.02 0.06

Q5: How satisfied were you with actual packaging? 3.00 3.13 0.13 0.97 0.20 0.65 0.53

Q6: How satisfied were you with product quality? 2.43 3.61 1.17 1.03 0.21 5.47 0.00

Q7: How satisfied were you with the labelling? 2.13 3.35 1.22 1.41 0.29 4.13 0.00

Q8: What products were you most satisfied with (#)? 3.91 5.19 1.28 2.44 0.51 2.30 0.03

Q9: What products were you most dissatisfied with (#)? 3.30 2.96 -0.35 2.44 0.51 -0.68 0.50

Q10: How much training was provided (total areas)? 4.04 3.87 -0.17 1.27 0.26 -0.66 0.52

Q11: Number of activities satisfied with? 3.83 4.00 0.17 0.72 0.15 1.16 0.26

Q13: How many times products were not available? 2.90 2.40 -0.50 0.37 0.08 -0.57 0.58

Q14: How do rate FNS' administration of FDPIR? 2.87 3.35 0.48 0.90 0.19 2.56 0.02

Q15: How efficient was FNS' administration of FDPIR? 2.96 3.39 0.43 0.84 0.18 2.47 0.02

Q16: What's the quality of service by FNS staff? 3.13 3.48 0.35 0.65 0.13 2.58 0.02

Q17: What's the overall effectiveness of FDPIR? 2.83 3.35 0.52 1.12 0.23 2.23 0.04

FOOD ORDERING

Q20: What was the smallest single order? 85.80 75.30 -10.50 1.97 0.41 -0.95 0.35

Q21: How frequently did you place orders? 3.83 4.35 0.52 1.12 0.23 2.23 0.04

Q22: How many multi-food orders did you place? 7.43 14.40 6.97 12.61 2.63 2.41 0.03

Q24: How many times did you re-order products? 5.40 7.50 2.10 0.73 0.15 3.14 0.01

Q25: How much paperwork was there (#)? 3.57 3.52 -0.05 1.36 0.28 -0.15 0.88

Q26: What foods did you order and not receive (#)? 1.20 2.74 1.54 2.70 0.56 2.31 0.03

Q27: What changes will improve multi-food ordering (#)? 1.87 1.17 -0.70 0.82 0.17 -4.06 0.00

FOOD DELIVERY

Q29: How many deliveries (trips) during the year? 8.13 15.09 6.96 0.99 0.21 -2.95 0.00

Q31: How long between order and delivery (weeks)? 7.30 2.00 -5.30 4.11 0.86 -6.16 0.00

Q33: How many FTE handled delivery functions? 9.61 10.26 0.65 3.24 0.68 0.97 0.35

Q35: How efficient were USDA delivery operations? 2.78 3.30 0.52 1.73 0.36 1.45 0.16

Q36: How do you rate delivery operations? 2.74 3.39 0.65 1.80 0.38 1.74 0.10

Q37: What changes will improve food delivery? 1.52 0.65 -0.87 1.32 0.28 -3.15 0.01

WAREHOUSING/INVENTORY MANAGEMENT

Q38: How many cases did you order? 13700 14740 1040 2402.2 502.40 2.07 0.05

Q39: What's the average monthly inventory? 1419 1704 285 1348.9 281.26 0.33 0.75

Q41: Did ITO have storage problems (#)? 1.65 1.78 0.13 0.46 0.10 1.37 0.19
39 

 Table 13. Statistical Tests for Differences Between Means (cont'd.)

 Means Diff. 

Variable - Question T1 T2 T2-T1 SD SE T P

WAREHOUSING/INVENTORY MNGMT (contd.) 

Q43: How many weekly warehouse hours? 44.20 238.40 194.20 645.80 134.59 1.44 0.16

Q44: How many times inventory was insufficient? 0.09 1.78 1.69 4.20 0.88 1.93 0.07

Q45: How do you rate your inventory management? 2.87 3.48 0.61 0.99 0.21 2.95 0.01

Q46: Was there any spoilage (# of foods)? 1.30 1.35 0.05 0.77 0.18 0.27 0.79

Q47: What changes will improve inventory mngmt? 2.09 1.65 -0.44 1.88 0.39 -1.11 0.28

COST REDUCTION

Food Ordering Costs

Q48: How many staff (FTE) handled food ordering? 1.78 2.1 0.32 1.81 0.38 0.85 0.41

Q49: How many hours/month/staff on ordering? 6.00 6.3 0.30 4.95 1.03 -0.29 0.78

Q50: How many hours/month for entire ordering? 6.70 7.7 1.00 5.43 1.14 0.88 0.39

Q51: Were there any other procurement costs ($)? 1.65 1.91 0.26 0.62 0.13 2.02 0.06

Warehousing Costs 

Q52: What's your warehouse storage capacity (SF)? 2863 2813 -50 3027 631.13 -0.08 0.94

Q53: What's the total warehouse cost? 14564 19612 5048 33666 7163.0 0.71 0.81

Q54: Were there any other warehouse costs ($)? 1.43 1.57 0.14 1.31 0.27 0.52 0.60

Delivery Costs

Q55: How many deliveries did your ITO receive? 8.13 15.09 6.96 10.12 2.11 3.30 0.00

Q56: How many hours/month/delivery staff? 3.61 3.50 -0.11 1.63 0.34 -0.32 0.14

Q57: Were there other delivery costs ($)? 1.83 1.91 0.08 1.35 0.28 0.31 0.76

Q58: What's the total value of spoilage ($)? 95.22 71.48 -23.74 218.36 45.53 -0.52 0.60

T = Statistical test of differences between means for Pre-Pilot (T1) and Pilot (T2). 

P = Level of significance. 

Program Operation and Administrative Efficiency 

Items probed on the operation and administration of FDPIR included questions on the 

satisfaction of ITOs with the variety in the food package, the USDA label and labeling, 

commodity pack size and packaging, staff training, product availability, service quality, 

ratings for FNS staff, and program effectiveness (see Table 13). Of the fifteen variables 

tested, nine showed statistically significant differences between the two periods, all in the 

direction of improvement. ITOs expressed more satisfaction with product variety, product 

quality, and labeling during the Pilot than the year before. They expressed dissatisfaction 

with the USDA label the year before the Pilot, and were more satisfied with the labeling 

during the Pilot. In addition, they were more satisfied with more products as well. ITOs 

reported higher ratings for the administration, efficiency and effectiveness of the FDPIR, and 
40 

for service quality by FNS staff. The difference in satisfaction with commodity pack size 

was marginally higher during the Pilot. There were no differences between the two periods 

with regards to dissatisfaction with products or product availability, and available training. 

Food Ordering and Available Choices

All but two of the seven variables tested on food-ordering showed significant differences 

between the two surveys (see Table 13). The two variables that did not change were the 

smallest order and the volume of paperwork. The variables which showed differences were 

ordering frequency, multi-food orders, re-ordering of unavailable/undelivered products, 

foods ordered and not received, and suggested changes to ordering. Ordering frequency and 

multi-food orders increased during the Pilot in accordance with the intended objectives. 

However, ITOs reported significantly more problems with ordering and not receiving foods, 

and they had to re-order more times during the Pilot. But then, they had far fewer 

suggestions for changes to multi-food ordering during the Pilot than the year before. 

Food Delivery

Food delivery showed significant differences in three key areas between the two periods (see 

Table 13). Consistent with the Pilot’s objectives, the time between order and delivery was 

reduced considerably; deliveries to ITOs per year increased significantly; the right quantities 

were delivered more times; and ITOs had fewer suggestions for changes to food delivery 

operations. However, they shared more delivery truckloads during the Pilot than before. 

There were no major differences in delivery staff FTE, self-rating for delivery operations, 

and ratings of USDA’s delivery the year before versus Reinhart’s during the Pilot. 

 

Warehousing and Inventory Management

Of the nine warehousing and inventory variables tested, only two were significantly 

different: cases ordered and the ITO’s self-rating for inventory management (see Table 13). 

Among the notable insignificant variables were warehouse FTE, weekly warehouse hours, 

insufficient inventory, and spoilage. It is worth noting further that the magnitude of the 

difference between pre and post in terms of weekly warehouse hours appears huge – almost 

four times increase - yet it was insignificant. The reason is that there was a wide variation 

(large variance and standard error) in the difference between pre and post. 

Operational and Staffing Costs

Costs borne by ITOs for the administration of FDPIR and distribution of food packages to 

clients were grouped into food ordering, warehousing, and delivery functions (Table 13). 

These variables included questions on staff FTE, monthly hours, warehouse capacity and 

cost, number and costs of deliveries, and value of spoilage. All were insignificant except the 
41 

increase in the number of deliveries and the reduction in time between order and delivery. 

The increase in deliveries was also consistent with the Pilot’s goals. Since this was a pilot, 

FNS did not experience any change in staffing or warehousing costs. 

Table 14 shows the percentage difference in procurement, warehousing and delivery 

variables before and during the Pilot. Procurement staff increased by 18 percent, although as 

mentioned earlier, this difference is not significant statistically. Warehouse staff increased 

by one percent and delivery staff by 7.3 percent. Warehouse space and user-cost increased 

by 19 percent and 35 percent respectively. Total warehouse time increased by four fold. 

The duration between order and delivery declined dramatically from 51 days to 12 days, and 

deliveries increased by 95%. Both these findings were consistent with the Pilot goals. 

 Table 14. Summary of Comparative Costs and Staffing

Function/Activity Pre Post % Difference

Procurement

Personnel (FTE) 1.78 2.10 18.0

Time (hours/staff/month) 6.00 6.30 5.0

Total hours/month 6.70 7.70 14.9

Monthly inventory 1,419 1,704 20.1

Warehousing 

Personnel (FTE) 9.10 9.20 1.1

Time (total hrs/week) 44.20 238.40 439.4

Total hours/month 176.80 953.60 439.4

Space (sq. ft) 2,863 3,405 18.9

Cost ($) 14,564 19,612 34.7

Mean Cost ($/sq.ft) 5.09 5.76 13.2

Delivery

Personnel (FTE) 9.60 10.30 7.3

Time (hrs/month/staff) 3.60 3.50 -2.8

Total hours/month 34.60 36.10 4.3

Deliveries 8.10 15.80 95.1

Duration: order to delivery (days) 51.00 12.00 -76.5

General Response Trend

Figure 4 shows a visual comparison of the trends in responses grouped by the five sections of 

the questionnaire. For most questions, a higher mean during the Pilot implies higher 

satisfaction or a more desirable outcome. For a few questions, a higher post survey mean 

signifies the opposite. In general, most of the means were higher for the post survey period. 
42 

Fig. 4. Mean Scores of Survey Responses

0.01.02.03.04.05.06.0

23456789

1

0

1

1

1

2

1

3

1

4

1

5

1

6

1

7

1

8

1

92021222324252627282930313233343536373839404142434445464748495051

Survey Questions

Score

A = Program operation and administrative efficiency (Q2-Q19). B = Procurement, Ordering, and Product Choice (Q20-Q27). C = Food Delivery (Q28-Q37). D = Warehousing and Inventory Management (Q38-Q46). E = Staffing and Costs (Q47-Q58) 
43 

Administrative Interview

An administrative interview was conducted in March 2002 with ITO Food Directors on the 

overall performance of PVP. With the exception of a few items not in stock, the results show 

an overwhelming approval for the conduct and performance of PVP (see Table 15). 

 Table 15. Administrative Interview on Overall Satisfaction with PVP (March 2002)

 Delivery Items Not in Stock Damages/ Corrective Overall PVP

ITO Condition Item Cases Mispicks Action Rating

1 Sault St. Marie Perfect 0 0 0 0 Perfect

2 Keweenaw Bay Great Refried beans 10 0 Next delivery Good

3 Bay Mills Good 0 0 0 0 Good

4 Pokagon Good 0 0 0 0 Good

5 Little Traverse Band

6 Little River Band Perfect 0 0 0 0 Perfect

7 Leech Lake Good Sliced cheese 50 0 Redelivered Good

8 Fond Du Lac Perfect 0 0 0 0 Perfect

9 Grand Portage

10 White Earth Perfect 0 0 0 0 Perfect

11 Boi Forte

12 Mille Lacs Good 0 0 0 0 Good

13 Red Lake Good Rice 2 0 Next delivery Good

14 Red Cliff Good Refried beans 5 0 Next delivery Good

15 Ho Chunk Nation

16 Stockbridge-Munsee Perfect 0 0 0 0 Perfect

17 Sokaogon

18 Lac Courte Oreilles Perfect 0 0 0 0 Perfect

19 St. Croix

20 Menominee Good Peanuts 2 0 0 Good

21 Lac Du Flambeau Perfect 0 0 0 0 Perfect

22 Bad River Good Refried beans 7 0 Next delivery Good

23 Oneida Perfect 0 0 0 0 Perfect

SUMMARY

The implementation of the Prime Vendor Pilot occurred according to plan and schedule. The 

contractor, DoD’s Defense Supply Center of Philadelphia (DSCP), and the prime vendor 

Reinhart fulfilled their contract in terms of delivering the products to the ITOs throughout the 

year. In the first year of the Pilot, participants reduced by almost one percent (from 8,842 to 

8,767) but households increased by 2.4% (from 3,601 to 3,688). In real FY 2001 dollars, 

expenditure on food increased by 2.2 percent and average dollar value of food to participants 

increased from $390 to $401 (3.1%). Reported staffing increased by about 7% and the 

participant-staff ratio declined by nearly 8%. This means that there was more staff time per 

participant during the Pilot than the year before, which partly explains the high 

administrative costs. 
44 

As to the effectiveness of the commodity distribution service provided by the Prime Vendor, 

and the relative satisfaction of the consumers compared to the year before the Pilot, the 

conclusions of the evaluation are summarized below based on the goals and objectives of the 

Pilot. 

The findings of the evaluation indicate that the first goal of improving food delivery was 

highly met by the services provided under the Prime Vendor Pilot in comparison to the year 

before. ITOs reported significant improvements in the overall food delivery, as well as in 

specific areas of the delivery process such as program operation and administration, 

timeliness of delivery, inventory management, and product quality. 

Program Operation and Administrative Efficiency

During the year before the Pilot, there was dissatisfaction with more products (Q9), more 

training was reported (Q10), products were unavailable more times (Q13), more 

administrative changes were suggested (Q18), and more operational changes were suggested 

(Q19). During the Pilot, there was significant improvement in program operation and the 

administration of FDPIR. Ratings for consumer satisfaction with product quality, variety, 

labels, labeling, number of products ITOs were satisfied with, and overall ratings for the 

operation and efficiency of FDPIR were statistically significantly higher during the Pilot than 

the year before. The only key variable for which there was no statistically significant 

difference in satisfaction between the two periods was packaging. 

Product Variety. Under the Pilot, the range of products available at any given time increased 

due to the reliability of the Contractor. So although no new products were introduced, the 

satisfaction level of ITOs with the product availability and the variety in the food packages 

was significantly higher during the first year of the Pilot. 

Procurement Flexibility. The Pilot greatly improved ordering and delivery flexibility. The 

reduction in turn around time between ordering and delivery, and the ability of ITOs to place 

orders practically at any time was highly acclaimed as the best feature of the Pilot. 

New Products. No new products were introduced during the Pilot. 

Product Acceptability. ITOs expressed significantly higher acceptability for the food label, 

and higher satisfaction for product quality and labeling during the Pilot than the year before. 

Food Ordering/Procurement Flexibility and Greater Choice

Before the Pilot, the smallest single order was larger (Q20), and more changes were 

suggested to the multi-food ordering system (Q27). During the Pilot, ITOs ordered, on 

average, smaller quantities and more frequently. They placed more multi-food orders and 

expressed fewer problems with the ordering process. Initial problems were reported early on 

in the process, but much improvement was achieved as the Prime Vendor enlisted and 
45 

utilized more back-up providers. In addition, two products – lunch meat and canned beef – 

were only available during a limited time through USDA vendors, which resulted in 

accessibility problems earlier on in the process. 

Food Delivery

Before the Pilot, the right quantities were delivered more times (Q30), length of time 

between order and delivery was longer (Q31), more loads were shared (Q34), and more 

changes were suggested to improve food delivery (Q37). The objectives of timely delivery 

were met by the reported considerable decrease in the time between order and delivery, the 

reported significant increase in the delivery of the right quantities of food, and the significant 

increase in the number of total deliveries made during the year of the Pilot in comparison to 

the previous year. At the start of the Pilot, there were some reported delivery problems 

which phased out early and did not have any impact on responses. Once the Pilot was up and 

running, delivery time was shortened considerably to the original objective of a few days. 

Warehousing and Inventory Management

Before the Pilot, more storage problems were reported (Q41). During the Pilot, both 

warehouse space and warehouse cost tended to reduce slightly, and both spoilage and storage 

problems did not increase significantly. ITOs reported that they ordered more cases during 

PVP, but actual figures show that fewer cases were delivered under PVP than the year 

before. This apparent discrepancy is attributed to variations in pack size during the two years 

even though the unit ordered remained similar. For example, in one instance, fruit was 

delivered in a pack size of 24 units per case versus packs of 12 per case in another. So that 

100 cases of the same fruit in one instance (100 x 24) was equal to 200 cases in the other 

(200 x 12). 

One important observation was that, although the mean warehouse cost appeared to increase 

by 34.7 percent between the pre-Pilot and Pilot years, the difference was not statistically 

significant. Also, the average of the reported weekly warehouse hours of ITOs increased 

four times (from 44 hours to 238 hours) during the year of the Pilot. However, the 

distribution of this variable for the post period was highly skewed, with a maximum of 2,404 

for the post period compared to 170 for the year before the Pilot. This resulted in a large 

standard error of the difference with a small t-value. Consequently, the difference was 

statistically insignificant. 

Inventory management improved as a whole during the first year of he Pilot, based on the 

significantly higher self-rating of ITOs for inventory management for the first year of the 

Pilot. There was a significant increase in the number of cases ordered, as well as a slight, 

non-significant, increase in monthly inventory. These in essence, meant that “just-in-time 

inventory” was not attained, but supply was replenished at all times. As noted before, 

although participants declined, households increased, which might partly explain the increase 

in food order. 
46 

Cost Comparison

During the year before the Pilot, a few more procurement costs were reported (Q51). 

Staffing costs for staff of FNS, AMS, FSA, Kansas City warehouse and MWRO were not 

available for analysis. However, there were no staff reductions or deployments at any of the 

five USDA agencies as a result of the Pilot. Further, none of the central warehouse space at 

Kansas City/Carthage was given up or transferred to other uses after the implementation of 

the Pilot. As a result, the cost savings model proposed earlier for this study could not be 

estimated. 

Costs analyzed here were those reported by the ITOs in the pre and post surveys on food 

ordering, warehousing and delivery, staffing, and cases ordered. As reported costs, the 

figures are subject to cautious interpretation. As a general note, with the exception of total 

deliveries, all the cost variables analyzed using the paired means test technique showed no 

statistically significant differences between pre and post (see Table 13). 

Staff Resources: Staff FTE and total time for both procurement and delivery functions, and 

paperwork showed no statistically significant differences between the two periods. 

Procurement Costs: Average procurement staff FTE increased by about 18 percent, total 

hours per month by 14.9 percent, and inventory by 20 percent during the first year of the 

Pilot in comparison to the preceding year (see Table 14). 

Warehousing Costs: Warehousing personnel practically did not change between pre and post 

(1.1 percent increase), but total warehouse staff time increased over four times during the 

first year of the Pilot over the preceding year. Warehouse space increased by 19 percent and 

warehousing cost by 35 percent (see Table 14). 

Delivery FTE: Delivery personnel FTE increased by 7 percent and total hours per month by 

only 4 percent during the first year of the Pilot (see Table 14). The number of deliveries 

increased by 95 percent, and cases delivered by 3 percent. The mean duration between order 

and delivery was shortened from 51 days to about 12 days. 

It is noteworthy that staffing figures appeared to be overstated in both surveys. It appears 

that programs may have responded in staff hours dedicated to responsibilities without 

allocating 40 hours per person per week. Also, respondents may have included the total 

number of people who have worked with the program during the year. A review of 

administrative budgets and on-site visits by the Coordinator of the program for the region 

showed that the programs did not have as much staff as they listed. Since this exaggeration 

applied to both surveys, it would have only affected the magnitude of reported staffing 

without much impact on the relative comparisons of staffing between the two periods. 

Finally, it is also noteworthy that bonus commodity distributed increased nearly four times 

by dollar value. This means that the Prime Vendor, Reinhart incurred additional costs for the 

distribution of bonus commodity, which partly contributes to the overall costs of the Pilot. 
47 

REFERENCES 

Food and Nutrition Service, United States Department of Agriculture (1998). The Food 

Distribution Program on Indian Reservations (FNS Handbook 501). Alexandria, VA: 

FNS/USDA. 

Food and Nutrition Service, United States Department of Agriculture (1990). Evaluation of 

the Food Distribution Program on Indian Reservations, Volume 1: Final Report. 

Alexandria, VA: Office of Analysis and Evaluation, FNS/USDA. 

Food and Nutrition Service, United States Department of Agriculture (2001). Commodity 

Fact Sheet. Alexandria, VA: FNS/USDA. 

Food and Nutrition Service, United States Department of Agriculture (2001). Program Fact 

Sheet. Alexandria, VA: FNS/USDA. 

Food and Nutrition Service, United States Department of Agriculture (2001). Trailblazers 

for New-Trition: FDPIR 2000 Final Repprt. Alexandria, VA: FNS/USDA. 

Shanklin, D.S., C.L. Usher, and J.B. Wildfire (1992). Nutrition Education Needs and 

Services Among American Indians Participating in a Federal Food Assistance 

Program. Journal of Nutrition Education, 24(6), 298-305. 

 

SPSS Inc. (2002). SPSS Software Package, Version 10.0 for WIndows, Chicago, IL. 

United States Census Bureau, United States Department of Commerce (2003). Poverty in the 

United States, 2002, by Bernadette D. Proctor and Joseph Dalaker. 

United States Department of Agriculture, Food and Nutrition Service (1990). Evaluation of 

the Food Distribution Program on Indian Reservations (FDPIR), Volume 1, by 

Charles L. Usher, David S. Shanklin, and Judith B. Wildfire, Research Triangle 

Institute. 

United States Government Printing Office, National Archives and Records Administration 

(2001). “Food and Nutrition Service, Department of Agriculture: Agency 

Information Collection Activities: Proposed Collection; Comment Request – 

Evaluation of the Prime Vendor Pilot Project.” Federal Register, Vol. 66, No. 106, 

June 1. 
48 

APPENDIX 

COMPARISONS OF DIFFERENCES WITHIN GROUPS FOR PRE AND POST 

(CHI-SQUARE ANALYSIS)

Most of the questions on the two surveys were closed-ended with four-point response 

categories on an ordinal scale. The scale was “none”, “little/slight”, “some/moderate”, and 

“a lot/very/high”. In this analysis, these responses were collapsed into dichotomous 

categories of low and high, with “none” and “little/slight” constituting “low” and “some/ 

moderate” and “a lot/very/high” constituting “high”. The data were analyzed using Chisquare technique. The questions were worded specific to the respective survey year, either 

prior to or during PVP. The precise wording of the questions, the chi-square results and 

probability limits, and histograms of the raw distributions are shown below. 

1. PROGRAM OPERATION AND ADMINISTRATIVE EFFICIENCY

Q2: How much product variety was there within the USDA established FDPIR food 

packages?

Pre: More ITOs tended to report some or a lot of product variety than those that reported 

little or no variety. However, the difference between the two was not significant 

(X2

=3.52, P=0.06). 

Post: Many more ITOs reported higher product variety. The difference between ITOs that 

reported little or no product variety and those that reported some or a lot of product 

variety was highly significant (X2=15.70, P=0.00). 

Variety Pre PVP

None 1 0 

Little 4 2

Some 11 7

A lot 7 14

Mean 2.0 2.5

1

0

4

2

11

7 7

14

0

2

4

6

8

10

12

14

No. of ITO's

None Little Some A lot

Variety

 Fig. Q2. Product Variety

Pre

PVP
49 

Q3: How acceptable were USDA labeled products?

Pre: The difference between ITOs that reported slight or no label acceptability and those 

that reported moderate or high acceptability was not significant (X2

=1.09, P=0.30). 

Post: Significantly more ITOs thought the non-USDA label acceptability was moderate to 

high (X2

=5.26, P=0.02). The number reporting high satisfaction increased 

considerably.

Acceptability Pre PVP

None 3 1 

Slight 6 5

Moderate 12 9

High 2 8

Mean 2.6 3.0

3

1

6

5

12

9

2

8

0

2

4

6

8

10

12

No. of ITO's

None Slight Moderate High

Acceptability

Fig. Q3. Label Acceptability

Pre

PVP

Q4: How satisfied were you with commodity pack size?

Pre: Significantly more ITOs were moderately or highly satisfied with commodity pack 

size (X2

=15.70, P=0.00). 

Post: Significantly more ITOs were moderately or highly satisfied with commodity pack 

size (X2

=19.17, P=0.00). ITOs reporting high satisfaction increased moderately. 

Satisfaction Pre PVP

None 0 0 

Slight 2 1

Moderate 16 11

High 5 11

Mean 3.1 3.4

0 0

2

1

16

11

5

11

0

2

4

6

8

10

12

14

16

No. of ITO's

None Slight Moderate High

Satisfaction

Fig. Q4. Satisfaction with Pack Size

Pre

PVP
50 

Q5: How satisfied were you with the actual packaging?

Pre: Significantly more ITOs were moderately or highly satisfied with the actual 

packaging (X2

=9.78, P=0.00). 

Post: Significantly more ITOs were moderately or highly satisfied with the actual 

packaging (X2

=15.70, P=0.00). There was not much difference in this trend. 

Satisfaction Pre PVP

None 0 1 

Slight 4 1

Moderate 15 15

High 4 6

Mean 3.0 3.1

0 1

4

1

15 15

4

6

0

2

4

6

8

10

12

14

16

No. of ITO's

None Slight Moderate High

Satisfaction

Fig. Q5. Satisfaction with Packaging

Pre

PVP

Q6: How satisfied were you with product quality?

Pre: There was no perceptive difference between ITOs in terms of product quality. In 

other words, just as many ITOs thought less of product quality as those which thought 

more of it (X2=0.04, P=0.84). 

Post: All ITOs thought product quality was moderate or high. 

Satisfaction Pre PVP

None 2 0 

Slight 9 0

Moderate 11 9

High 1 14

Mean 2.4 3.6

2

0

9

0

11

9

1

14

0

2

4

6

8

10

12

14

No. of ITO's

None Slight Moderate High

Satisfaction

Fig. Q6. Satisfaction with Product Quality

Pre

PVP
51 

Q7: How satisfied were you with labelling?

Pre: Only a few ITOs expressed satisfaction with labeling. However, the difference 

between ITOs that expressed dissatisfaction (slight or no satisfaction) with labeling 

and those that had moderate to high satisfaction was not significant (X2=0.39, 

P=0.53). 

Post: More ITOs reported higher satisfaction with labeling during the first year of PVP 

(X2

=19.17, P=0.00). 

Satisfaction Pre PVP

None 7 1 

Slight 6 1

Moderate 9 9

High 1 12

Mean 2.1 3.4

7

1

6

1

9 9

1

12

0

2

4

6

8

10

12

No. of ITO's

None Slight Moderate High

Satisfaction

Fig. Q7. Satisfaction with Labeling

Pre

PVP

Q8: Taking into consideration product quality, packaging, and labeling, what products 

were you most satisfied with?

Pre: Although satisfaction was reasonably high with all product groups, ITOs slightly 

favored dairy products, beef/meat products, fruits/vegetables, and juices. Bakery mix 

and cereals were favored less. The mean number of food groups satisfied with was 

3.9. 

Post: During the Pilot, by ITOs were by far more satisfied with all food groups except 

bakery mix and dairy products than the year before the Pilot. The highest satisfaction 

level was with fruits and vegetables, followed by beef, meat, fish, and chicken. The 

mean number of food groups satisfied with was 5.2. 
52 

Food Groups Pre PVP Mean: Pre = 3.9; Post = 5.2

Juices 10 14 Multiple response categories.

Bakery mix 8 4

Cereals 9 14

Fruits, vegetables, beans, nuts 11 19

Dairy products 12 10

Beef, meat, fish, chicken 11 16

10

14

8

4

9

14

11

19

12

10

11

16

0

2

4

6

8

10

12

14

16

18

20

No. of ITO's

Juices Bakery mix Cereals Fruits,

vegetables,

beans, nuts

Dairy products Beef, meat,

fish, chicken

Food Products

Fig. Q8. Food Products Most Satisfied With

Pre

PVP

Q9: Taking into consideration product quality, packaging, and labeling, what products 

were you most dissatisfied with?

Pre: ITOs expressed slightly more dissatisfaction with products during the year before 

than during the Pilot. They were most dissatisfied with cereals followed by beef, 

chicken and meat products, and least dissatisfied with dairy products and juices. The 

mean number of food groups dissatisfied with was 3.3. 

Post: Dissatisfaction with cereals and dairy products declined, but there was a slight 

increase in dissatisfaction with fruits and vegetables. The mean number of food 

groups dissatisfied with was 3.0. 
53 

Food Groups Pre PVP Mean: Pre = 3.3; Post = 3.0

Juices 5 4 Multiple response categories.

Cereals 17 14

Fruits, vegetables, beans, nuts 9 11

Dairy products 4 0

Beef, meat, fish, chicken 12 11

Other 11 5

5 4

17

14

9

11

4

0

12

11 11

5

0

2

4

6

8

10

12

14

16

18

No. of ITO's

Juices Cereals Fruits,

vegetables,

beans, nuts

Dairy products Beef, meat,

fish, chicken

Other

Food Products

Fig. Q9. Food Products Most Dissatisfied With

Pre

PVP

Q10: How much training was provided to your staff in the following areas? [List: (1) food 

handling, (2) information for clients’ use, (3) warehousing procedures, (4) handling 

fresh produce, and (5) other.] 

• Most ITOs received training in four or five areas in both periods. 

Training Areas Pre PVP

0 02

3 22

4 18 12

5 37

Mean 4.0 3.9

 

0

2 2 2

18

12

3

7

0

2

4

6

8

10

12

14

16

18

No. of ITO's

0345

Areas of Training

Fig. Q10. Areas in Which Trianing was Received

Pre

PVP
54 

Q10a: How much training was provided in food handling?

• Most ITOs in both periods reported receiving between average and considerable 

training in food handling. 

• Training was offered through workshops at regional and national conferences. 

Training Pre PVP

Little 6 7

Average 10 8

Considerable 6 7

High 1 1

6

7

10

8

6

7

1 1

0

2

4

6

8

10

No. of ITO's

Little Average Considerable High

Training

Fig. Q10a. Training in Food Handling

Pre

PVP

Q10b: How much training was provided in client information?

• There was a significant improvement in training in client information at the post 

period. 

Training Pre PVP

Little 4 2

Average 11 3

Considerable 6 11

High 2 7

4

2

11

3

6

11

2

7

0

2

4

6

8

10

12

No. of ITO's

Little Average Considerable High

Training

 Fig. Q10b. Training in Client Information

Pre

PVP
55 

Q10c: How much training was provided in warehouse procedures?

• Training in warehouse procedures was about the same in both periods. 

Training Pre PVP

Little 6 6

Average 8 8

Considerable 7 5

High 2 4 6 6

8 8

7

5

2

4

0

2

4

6

8

No. of ITO's

Little Average Considerable High

Training

 Fig. Q10c. Training in Warehousing

Pre

PVP

Q10d: How much training was provided in fresh produce handling?

• There was considerable increase in ITOs reporting high training in fresh produce 

handling during the Pilot. 

Training Pre PVP

Little 7 4

Average 5 4

Considerable 7 5

High 4 10 7

4

5

4

7

5

4

10

0

2

4

6

8

10

No. of ITO's

Little Average Considerable High

Training

 Fig. Q10d. Training in Fresh Produce Handling

Pre

PVP
56 

Q10e: How much training was provided in other areas?

• ITOs reported little training in other areas. 

Training Pre PVP

Little 20 16

Average 2 1

Considerable 1 2

High 0 4

20

16

2 1 1

2

0

4

0

2

4

6

8

10

12

14

16

18

20

No. of ITO's

Little Average Considerable High

Training

 Fig. Q10e. Training in Fresh Produce Handling

Pre

PVP

Q11: How satisfied were you with the following activities? [List: (1) food ordering, (2) 

timeliness of delivery, (3) warehouse activities, (4) the products as a whole, and (5) 

other activities.] 

• Most ITOs reported being satisfied with 3-4 activities in both periods. 

Activities Pre PVP

0 10

 1-2 0 0

 3-4 22 21

5 02

Mean 3.8 4.0

1 0 0 0

22 21

0

2

0

2

4

6

8

10

12

14

16

18

20

22

No. of ITO's

0 1-2 3-4 5

Activities

Fig. Q11. Number of Activities Satisfied With

Pre

PVP
57 

Q11a: How satisfied were you with the food ordering process?

Pre: Nearly three out of every five (57%) ITOs expressed slight or no satisfaction with the 

food ordering process. 

Post: Nearly all ITOs (96%) reported moderate to high satisfaction with food ordering. 

Thus, satisfaction with food ordering improved greatly. 

Satisfaction Pre PVP

None 6 0

Slight 7 1

Moderate 8 7

High 2 15

6

0

7

1

8

7

2

15

0

2

4

6

8

10

12

14

16

No. of ITO's

None Slight Moderate High

Satisfaction

Fig. Q11a. Satisfaction with Food Ordering

Pre

PVP

Q11b: How satisfied were you with timeliness of delivery?

• ITOs reported a great improvement in timeliness of delivery during the Pilot. 

Satisfaction Pre PVP

None 4 0

Slight 10 1

Moderate 8 1

High 1 21

4

0

10

1

8

1 1

21

0

2

4

6

8

10

12

14

16

18

20

22

No. of ITO's

None Slight Moderate High

Satisfaction

Fig. Q11b. Satisfaction with Timeliness of Delivery

Pre

PVP
58 

Q11c: How satisfied were you with warehousing activities?

• Satisfaction with warehousing activities improved moderately. In particular, high 

level satisfaction increased from about 10% to 40 percent. 

Satisfaction Pre PVP

None 2 2

Slight 3 1

Moderate 16 11

High 2 9

2 2

3

1

16

11

2

9

0

2

4

6

8

10

12

14

16

No. of ITO's

None Slight Moderate High

Satisfaction

Fig. Q11c. Satisfaction with Warehousing

Pre

PVP

Q11d: How satisfied were you with the products as a whole?

• Satisfaction with products as a whole improved considerably during the Pilot. 

Satisfaction Pre PVP

None 1 0

Slight 8 0

Moderate 12 8

High 2 15

1 0

8

0

12

8

2

15

0

2

4

6

8

10

12

14

16

No. of ITO's

None Slight Moderate High

Satisfaction

Fig. Q11d. Satisfaction with the Products as a Whole

Pre

PVP
59 

Q11e: How satisfied were you with other activities?

• All ITOs did not answer this question at the pre-survey. At the post survey, only two 

ITOs provided a response. 

Satisfaction Pre PVP

DK/NA 23 21

None 0 0

Slight 0 1

Moderate 0 1

High 0 0

23

21

0 0 0

1

0 1 0 0

0

2

4

6

8

10

12

14

16

18

20

22

24

No. of ITO's

DK/NA None Slight Moderate High

Satisfaction

Fig. Q11e. Satisfaction with Other Activities

Pre

PVP

Q12: Were any products not available for delivery?

Pre: Most ITOs thought there were times when products were not available for delivery 

(X2

=12.57, P=0.00). 

Post: Most respondents thought there were times when products were not available for 

delivery (X2=15.70, P=0.00). There was no difference in this trend. 

Products Unavailable Pre PVP

No 3 2

Yes 20 21

3 2

20

21

0

2

4

6

8

10

12

14

16

18

20

22

No. of ITO's

No Yes

Fig. Q12. Any Products Not Available

Pre

PVP
60 

Q13: How many times in the year were specific products not available?

Pre: Significantly more respondents thought products were not available two or more 

times than those who thought they were unavailable only one time (X2

=19.17, 

P=0.00). 

Post: Significantly more respondents thought products were not available two or more 

times than those who thought they were not available only one time (X2=15.70, 

P=0.00). 

No. of Times Pre PVP

0 12

 1-2 10 11

 3-6 9 10

 7+ 3 0

Minimum 1 2

Maximum 9 3

Mean 2.9 2.4

1

2

10

11

9

10

3

0

0

2

4

6

8

10

12

No. of ITO's

0 1-2 3-6 7+

Fig. Q13. Times When Some Products Not Available

Pre

PVP

Q14: How do you rate FNS’ operation and administration of the food program?

Pre: Significantly more respondents rated FNS’ administration of FDPIR high (X2=5.26, 

P=0.02). 

Post: Significantly more respondents rated FNS’ administration of FDPIR high (X2=19.17, 

P=0.00). Post rating was higher than the pre rating. 

FNS Rating Pre PVP

Below average 1 0

Fair/average 6 1

Good 11 13

Excellent 5 9

Mean 3.2 3.4

1

0

6

1

11

13

5

9

0

2

4

6

8

10

12

14

No. of ITO's

Below average Fair/average Good Excellent

Rating

Fig. Q14. FNS Rating

Pre

PVP
61 

Q15: What did you think about the efficiency of FNS’ administration of the program?

Pre: Significantly more ITOs reported that FNS’ administration of FDPIR ranged from 

efficient to highly efficient (X2

=9.78, P=0.00). 

Post: All ITOs reported that FNS’ administration of FDPIR, with respect to PVP, ranged 

from efficient to highly efficient. 

Efficiency Pre PVP

Not 1 0

Average 3 0

Efficient 15 14

Highly Efficient 4 9

Mean 3.0 3.4

1 0

3

0

15 14

4

9

0

2

4

6

8

10

12

14

16

No. of ITO's

Not Average Efficient Highly

Efficient

Efficiency

Fig. Q15. Efficiency of Administration of FDPIR

Pre

PVP

Q16: What did you think about the quality of service provided by FNS staff?

Pre: More ITOs reported high quality of service (X2=9.78, P=0.00). 

Post: All ITOs reported good to excellent quality of service. 

Quality Pre PVP

Not good 0 0

Average 4 0

Good 12 12

Excellent 7 11

Mean 3.1 3.5

0 0

4

0

12 12

7

11

0

2

4

6

8

10

12

No. of ITO's

Not good Average Good Excellent

Quality

Fig. Q16. Quality of Service 

Pre

PVP
62 

Q17: What did you think about the overall effectiveness of the program operation?

Pre: Significantly more ITOs reported that FDPIR was effective (X2

=7.35, P=0.01). 

Post: Significantly more ITOs reported that FDPIR was highly effective (X2=15.70, 

P=0.00). 

Effectiveness Pre PVP

Not 1 1

Average 4 1

Effective 16 10

Highly Effective 2 11

Mean 2.8 3.4

1 1

4

1

16

10

2

11

0

2

4

6

8

10

12

14

16

No. of ITO's

Not Average Effective Highly

Effective

Effectiveness

Fig. Q17. Overall Effectiveness of FDPIR Program

Pre

PVP

Q18: What administrative changes would you like to see implemented as part of the Prime 

Vendor Pilot Program to help your ITO run the FDPIR program more effectively and 

efficiently? [List: (1) none, (2) more staff, (3) more staff training, (4) more product 

variety/greater choice, (5) less paperwork, and (6) other]. [Number of changes]. 

Pre: More ITOs reported more (2 or more) changes than those that reported one or no 

change (X2=12.57, P=0.00). 

Post: Fewer ITOs reported more (2 or more) changes than those that reported one or no 

change (X2

=0.04, P=0.84). 

No. of Changes Pre PVP

0 34

1 58

2 12 9

3 22

5 10

Maximum 5 3

Mean 1.7 1.4

Multiple response categories

3

4

5

8

12

9

2 2

1

0

0

2

4

6

8

10

12

No. of ITO's

01235

No. of Changes

Fig. Q18. Suggested Administrative Changes

Pre

PVP
63 

Q18a: What administrative changes would you like to see implemented as part of the Prime 

Vendor Pilot Program to help your ITO run the FDPIR program more effectively and 

efficiently? [List: (1) none, (2) more staff, (3) more staff training, (4) more product 

variety/greater choice, (5) less paperwork, and (6) other]. [Areas of change]. 

Pre: Most ITOs suggested more product variety/greater choice (78.3%) and more staff 

training (34.8%). 

Post: Most ITOs suggested more product variety/greater choice (65.2%), more staff 

training (26.1%) and more staff (21.7%). 

Area of Change Pre PVP Multiple response categories

No change suggested 3 4

more staff 3 5

More staff training 8 6

more product variety/choice 18 15

Less paperwork 4 3

Other 2 3

3

4

3

5

8

6

18

15

4

3 2

3

0

2

4

6

8

10

12

14

16

18

No. of ITO's

No change

suggested

more staff More staff

training

more product

variety/choice

Less

paperwork

Other

Area of Change

Fig. Q18a. Areas of Suggested Administrative Changes

Pre

PVP

Q19: What operational changes would you like to see implemented as part of the Prime 

Vendor Pilot Program to help your ITO run the FDPIR program more effectively and 

efficiently? [List: (1) none, (2) more ordering flexibility, (3) more timely delivery, 

(4) more warehouse space, (5) less product substitution, and (6) other]. [Number of 

changes]. 

Pre: Fewer ITOs reported more (2 or more) changes than those that reported one or no 

change (X2

=9.78, P=0.00). A majority of ITOs (57%) suggested only one change. 
64 

Post: Fewer ITOs reported more (2 +) changes than those that reported one or no change 

(X2

=9.78, P=0.00). A majority of ITOs (52%) suggested only one change. The 

number of ITOs reporting no change was higher during the Pilot than the year before. 

No. of Changes Pre PVP

0 47

1 13 12

2 54

5 10

Maximum 3 2

Minimum 1.1 0.9

Multiple response categories 4

7

13 12

5 4

1

0

0

2

4

6

8

10

12

14

No. of ITO's

0125

No. of Changes

Fig. Q19. Suggested Operational Changes

Pre

PVP

Q19a: What operational changes would you like to see implemented as part of the Prime 

Vendor Pilot Program to help your ITO run the FDPIR program more effectively and 

efficiently? [List: (1) none, (2) more ordering flexibility, (3) more timely delivery, (4) 

more warehouse space, (5) less product substitution, and (6) other]. [Areas of 

change]. 

• The two key suggested changes in both surveys were more ordering flexibility and 

less product substitution. More ITOs suggested no change under PVP than prior. 

Area of Change Pre PVP Multiple response categories

No change suggested 4 7

More ordering flexibility 8 7

More timely delivery 3 1

More warehouse space 5 4

Less product substitution 8 6

Other 1 2

4

7

8

7

3

1

5

4

8

6

1

2

0

2

4

6

8

No. of ITO's

No change

suggested

More

ordering

flexibility

More timely

delivery

More

warehouse

space

Less product

substitution

Other

Area of Change

Fig. Q19a. Areas of Suggested Operational Changes

Pre

PVP
65 

2. FOOD ORDERING AND AVAILABLE CHOICES

Q20: What was the smallest single order of food products you placed?

• Less than 25% of ITOs ordered 50 cases or less as the smallest order before the Pilot 

compared to 35% during the Pilot. 

• Half of ITOs ordered more than 100 cases as the smallest order in both surveys. 

Cases Pre PVP

 1-10 2 4

 11-25 2 3

 26-50 1 1

 51-100 6 4

 101+ 12 11

Mean 85.8 75.3

2

4

2

3

1 1

6

4

12

11

0

2

4

6

8

10

12

No. of ITO's

 1-10 11-25 26-50 51-100 101+

Cases

Fig. Q20. Smallest Single Order

Pre

PVP

Q21: How frequently did you place orders?

Pre: Before the Pilot, most orders were placed every month or every three months. 

Post: During the Pilot, the overwhelming majority of orders were placed once a month. 

Frequency Pre PVP

Once/yr 0 0

Every 6 mos. 0 0

Every 3 mos. 8 1

Every month 13 17

Every week 0 1

Other 2 4

Mean 1 mo. 1 wk.

0 0 0 0

8

1

13

17

0 1

2

4

0

2

4

6

8

10

12

14

16

18

No. of ITO's

Once/yr Every 6

mos.

Every 3

mos.

Every

month

Every

week

Other

Frequency

Fig. Q21. Ordering Frequency

Pre

PVP
66 

Q22: How many multi-food orders did you place to USDA (pre)/Reinharts (PVP)?

Pre: Over 39% of ITOs submitted 4-6 multi-food orders, 14% 7-12, and 30% 11-12. Only 

one (4%) submitted 13. 

Post: Only one ITO (4%) submitted 4-6 multi-food orders, 17% submitted 7-10, and 26% 

11-12. About 26% submitted 13 or more, with the highest being as many as 60. 

Orders Pre/USDA PVP/Rnhts

01 2

 1-3 1 3

 4-6 9 1

 7-10 4 5

 11-12 7 6

 13+ 1 6

Maximum 13 60

Mean 7.4 14.4

1

2

1

3

9

1

4

5

7

6

1

6

0

2

4

6

8

10

No. of ITO's

0 1-3 4-6 7-10 11-12 13+

Number of Orders

Fig Q22. Multi-Food Orders

Pre/USDA

PVP/Rnhts

Q24: How many times did you have to re-order products during the year because they were 

not available for shipment when requested? 

Pre: There was no significant difference between ITOs did not re-order or re-ordered only 

once and those that re-ordered 2 or more times (X2=0.04, P=0.84). 

Post: All ITOs re-ordered 2 or more times. [Logistical problems relating to food ordering 

and delivery by Reinhart, including sourcing difficulties, were reported earlier during 

the set-up phase of the project, but reportedly solved as the project implementation 

progressed.] 

Re-orders Pre PVP

None 2 0

1-5 times 9 3

6-10 times 12 19

11 + times 0 1

Mean 5.4 7.5

2

0

9

3

12

19

0 1

0

2

4

6

8

10

12

14

16

18

20

No. of ITO's

None 1-5 times 6-10 times 11 + times

Times 

Fig. Q24. Times Products Were Re-ordered

Pre

PVP
67 

Q25: How much paperwork was there (orders, receiving, inventory, forms etc.)?

• During both pre and post, most ITOs (91%) reported three or four paperwork 

activities. 

• Only one ITO in each case reported no paperwork activity. Also, only one ITO each 

reported two paperwork activities. In general, paperwork for the FNS regional office 

was reported to reduce greatly. 

Paperwork Pre PVP

None 1 1

1 00

2 11

3 45

4 17 16

Mean 3.6 3.5

1 1

0 0 1 1

4

5

17

16

0

2

4

6

8

10

12

14

16

18

No. of ITO's

None 1 2 3 4

Paperwork

Fig. Q25. Amount of Paperwork

Pre

PVP

Q25a: How much paperwork was there for food orders?

• About 57% and 48% of ITOs reported three paperwork activities for both surveys. 

• Paperwork burden reduced during the Pilot. 

Paperwork Pre PVP

None 2 2

1 12

2 36

3 13 11

4 42

2 2

1

2 3

6

13

11

4

2

0

2

4

6

8

10

12

14

No. of ITO's

None 1 2 3 4

Paperwork

Fig. Q25a. Paperwork for Food Orders

Pre

PVP
68 

Q25b: How much paperwork was there for receiving documents?

• The trend for paperwork for receiving documents was similar in both periods, with a 

slight decline in burden during the Pilot. 

Paperwork Pre PVP

None 2 2

1 13

2 66

3 9 11

4 52

2 2

1

3

6 6

9

11

5

2

0

2

4

6

8

10

12

No. of ITO's

None 1 2 3 4

Paperwork

Fig. Q25b. Paperwork for Receiving Documents

Pre

PVP

Q25c: How much paperwork was there for inventory records?

• The trend for paperwork for inventory records was similar in both periods, with a 

slight decline in burden during the Pilot. 

Paperwork Pre PVP

None 1 1

1 45

2 64

3 11 12

4 11

1 1

4

5

6

4

11

12

1 1

0

2

4

6

8

10

12

No. of ITO's

None 1 2 3 4

Paperwork

Fig. Q25c. Paperwork for Inventory Records

Pre

PVP
69 

Q25d: How much paperwork was there for FNS I-152 reporting?

• About 70% of ITOs reported three paperwork activities for FNS I-152 reporting in 

both surveys. About equal proportions (22% and 17% respectively) reported having 

no such activity in the two surveys. 

Paperwork Pre PVP

None 5 4

1 00

2 11

3 16 16

4 12

5 4

0 0 1 1

16 16

1 2

0

2

4

6

8

10

12

14

16

No. of ITO's

None 1 2 3 4

Paperwork

Fig. Q25d. Paperwork for FNS I-152 Reporting

Pre

PVP

Q26: What foods did you order that you did not receive?

Pre: The largest category was beef and meat products with 35% reporting this problem. In 

general, over half of ITOs reported no such problem. 

Post: The problem with beef/meat products increased to 48% during the Pilot. By far the 

major problem was with fruits/vegetables, with 70% of ITOs reporting this problem. 

Food Products Pre PVP Mean: Pre = 1.2; Post = 2.7

None 13 3 Multiple response categories.

Beef, meat, fish, chicken 8 11

Fruits, vegetables, beans, nuts 5 16

Dairy products 6 1

Other 6 12

13

3

8

11

5

16

6

1

6

12

0

2

4

6

8

10

12

14

16

No. of ITO's

None Beef, meat,

fish, chicken

Fruits,

vegetables,

beans, nuts

Dairy products Other

Food Products

Fig. Q26. Food Products Ordered and Not Received

Pre

PVP
70 

Q27: What changes do you think would make the existing multi-food ordering/procurement 

system run more smoothly? [List: (1) none, (2) more flexibility in ordering, (3) less 

paperwork, (4) more staff/staff training, (5) more product variety/greater choice, (5) 

less product substitution, and (7) other]. [Number of changes]. 

Pre: More ITOs suggested one or more change than those that suggested none (X2

=5.26, 

P=0.02). Most suggested two or three. 

Post: There was no significant difference between ITOs that reported more changes or 

fewer changes (X2

=2.13, P=0.14). Most suggested none, one or two. 

Changes Pre PVP

0 36

1 39

2 12 6

3 42

4 10

Mean 1.9 1.2

Multiple response categories

3

6

3

9

12

6

4

2

1

0

0

2

4

6

8

10

12

No. of ITO's

01234

No. of Changes

Fig. Q27. Suggested Changes to Food Ordering

Pre

PVP

Q27a: What changes do you think would make the existing multi-food ordering/procurement 

system run more smoothly? [List: (1) none, (2) more flexibility in ordering, (3) less 

paperwork, (4) more staff/staff training, (5) more product variety/greater choice, (5) 

less product substitution, and (7) other]. [Areas of change]. 

Pre: The major suggested changes to multi-food ordering raised during the year before the 

Pilot were more product variety/greater choice (82.6%) more ordering flexibility 

(47.8), and less production substitution (30.4%). 

Post: The major suggestions made during the first year of PVP to improve multi-food 

ordering were still improved product variety/greater choice (which is a function of the 

USDA food package and not the Pilot) and product substitution. More ITOs reported 

no change. Ordering flexibility, which was a major concern during the year prior to 

the Pilot was no longer an issue during the fist year of PVP. 
71 

Area of Change Pre PVP Multiple response categories.

No change 3 6

More ordering flexibility 11 1

Less paperwork 2 1

More staff/staff training 4 2

More prod. variety/choice 19 15

Less product substitution 7 6

Other 0 2

3

6

11

1 2 1

4

2

19

15

7

6

0

2

0

2

4

6

8

10

12

14

16

18

20

No. of ITO's

No change More ordering

flexibility

Less paperwork More staff/staff

training

More prod.

variety/choice

Less product

substitution

Other

Fig. Q27a. Areas of Suggested Food Ordering and Procurement Changes

Pre

PVP

3. FOOD DELIVERY

Q28: Were food orders delivered to the ITO during the appropriate shipment period?

Pre: Nearly all but one ITO reported that deliveries were not received at the appropriate 

shipment period (X2

=19.17, P=0.00). 

Post: The trend was exactly the same as the year before (X2=19.17, P=0.00). 

Pre PVP

No 22 22

Yes 1 1

22 22

1 1

0

2

4

6

8

10

12

14

16

18

20

22

No. of ITO's

No Yes

Fig. Q28. Were Food Orders Delivered at the Appropriate 

Period?

Pre

PVP
72 

Q29: How many deliveries (trips) did you receive during the year?

• There were significantly more deliveries during the first Pilot year than the year 

before; the means were 8.1 and 15.1 a year per ITO for the pre and post periods 

respectively. 

Deliveries Pre PVP

 1-3 0 1

 4-6 9 2

 7-12 6 6

12 3 6

13+ 5 8

Mean 8.1 15.1

0

1

9

2

6 6

3

6

5

8

0

2

4

6

8

10

No. of ITO's

 1-3 4-6 7-12 12 13+

Trips

Fig. Q29. Deliveries Received During the Year

Pre

PVP

Q30: Were the right quantities of food delivered?

Pre: More ITOs reported that the right quantities were delivered (X2=7.35, P=0.01). 

Post: There was no significant difference between ITOs that answered “yes” and “no” to 

this question (X2=0.04.17, P=0.84). 

Deliveries Pre PVP

No 5 11

Yes 18 12

5

11

18

12

0

2

4

6

8

10

12

14

16

18

No. of ITO's

No Yes

Trips

Fig. Q30. Were the Right Quantities Delivered?

Pre

PVP
73 

Q31: How long did it take, on average, between when you placed an order and when the 

food was delivered?

Pre: Most ITOs (78%) reported delivery time of 1 to 2 months, with 35% reporting 3 or 

more months. 

Post: Over one third (35%) of ITOs reported the length of time between order and delivery 

to be between two days and one week, and 65% between one and two weeks. 

Deliveries Pre PVP

2 days-1 wk 0 8

1-2 weeks 5 15

I month 4 0

2 months 6 0

3 months 7 0

Other 1 0

Mean 7-8 wks 1-2 wks.

0

8

5

15

4

0

6

0

7

0

1

0

0

2

4

6

8

10

12

14

16

No. of ITO's

2 days-1

wk

1-2 weeks I month 2 months 3 months Other

Time

Fig. Q31. Duration Between Order and Delivery

Pre

PVP

Q32: Were there limitations in accepting deliveries?

• A majority (61% and 78% respectively) had no delivery limitations in both surveys. 

• The trend is a general decline in limitations. 

Limitations Pre PVP

No 14 18

Yes 9 5

14

18

9

5

0

2

4

6

8

10

12

14

16

18

No. of ITO's

No Yes

Fig. Q32. Limitations in Receiving Deliveries

Pre

PVP
74 

Q33: How many staff (FTE) handled the following delivery functions? [List: (1) offloading trucks, (2) placing food in warehouse, (3) processing inventory records, (4) 

pulling orders, and (5) preparation of FNS I-152.] 

• Delivery staff FTE ranged from 1 to 16 before the Pilot and 4 to 18 during the Pilot; 

the means were 9.6 and 10.3 respectively. 

• There is not much difference in the trend. 

Delivery FTE Pre PVP

 1-5 2 3

 6-10 11 10

 11-15 9 8

16+ 1 2

Minimum 1 4

Maximum 16 18

Mean 9.6 10.3

2

3

11

10

9

8

1

2

0

2

4

6

8

10

12

No. of ITO's

 1-5 6-10 11-15 16+

FTE

Fig. Q33. Total Delivery FTE

Pre

PVP

Q33a: How many staff (FTE) handled offloading trucks?

• Offloading staff FTE is mostly between one and four in both periods, with means of 

2.7 and 2.5 per ITO respectively. 

Offloading FTE Pre PVP

0 10

 1-2 10 13

 3-4 10 9

 5-6 1 0

7+ 1 1

Mean 2.7 2.5

1

0

10

13

10

9

1

0

1 1

0

2

4

6

8

10

12

14

No. of ITO's

0 1-2 3-4 5-6 7+

FTE

Fig. Q33a. Offloading FTE

Pre

PVP
75 

Q33b: How many staff (FTE) handled stacking food in warehouse?

• Staff FTE for stacking food in the warehouse was also between one and four with a 

slight increase during PVP; the means were 2.2 and 2.7 respectively. 

FTE Pre PVP

0 10

 1-2 13 11

 3-4 9 10

 5-6 0 2

7+ 0 0

Mean 2.2 2.7

1

0

13

11

9

10

0

2

0 0

0

2

4

6

8

10

12

14

No. of ITO's

0 1-2 3-4 5-6 7+

FTE

Fig. Q33b. FTE for Stacking Warehouse

Pre

PVP

Q33c: How many staff (FTE) handled inventory processing?

• Staff FTE for inventory processing was between one and three during the year before 

PVP, and mostly between one and two during PVP; the means were respectively 1.6 

and 1.7. 

FTE Pre PVP

0 10

1 10 11

2 9 11

3 30

4 00

5 01

Mean 1.6 1.7

1

0

10

11

9

11

3

0 0 0 0

1

0

2

4

6

8

10

12

No. of ITO's

012345

FTE

Fig. Q33c. FTE for Inventory Processing

Pre

PVP
76 

Q33d: How many staff (FTE) handled pulling orders?

• Most ITOs reported between one and three staff FTEs for pulling orders; the means 

were 1.8 and 2.1 respectively – a slight increase during PVP. 

• During the year before PVP, 48% of ITOs reported only one staff FTE for this 

activity. During the pilot, up to 44% reported two staff FTEs for this activity. 

 

FTE Pre PVP

0 10

1 11 6

2 4 10

3 56

4 21

5 00

Mean 1.8 2.1

1

0

11

6

4

10

5

6

2

1

0 0

0

2

4

6

8

10

12

No. of ITO's

012345

FTE

Fig. Q33d. FTE for Pulling Orders

Pre

PVP

Q33e: How many staff (FTE) handled preparing FNS I-152?

• Most ITOs (74% and 70% respectively) reported one staff FTE and 17% each 

reported two staff FTEs for this activity; the means were 1.1 and 1.3 respectively. 

 

FTE Pre PVP

0 21

1 17 16

2 44

3 02

4 00

5 00

Mean 1.1 1.3

2 1

17 16

4 4

0

2

0 0 0 0

0

2

4

6

8

10

12

14

16

18

No. of ITO's

012345

FTE

Fig. Q33e. FTE for Preparing FNS I-152

Pre

PVP
77 

Q34: Were any loads that were delivered shared between your ITO and another ITO?

Pre: About 87% of ITOs shared at least a load with another ITO. This was a significant 

difference (X2

=12.57, P=0.00).

Post: Less than half split at least a load. The difference between those who shared and 

those who didn’t was not significant (X2

=0.04, P=0.84). Load sharing before the 

Pilot was the responsibility of the ITO. Split shipping during the Pilot was the 

responsibility of the Prime Vendor. So during the Pilot, the burden was removed 

from the ITO to the vendor. Splits were created to reduce overhead. 

Any Load Shared Pre PVP

No 3 12

Yes 20 11

3

12

20

11

0

2

4

6

8

10

12

14

16

18

20

No. of ITO's

No Yes

Fig. Q34. Did ITO share Any Load With Another 

ITO?

Pre

PVP

Q35: What did you think about the efficiency of USDA delivery operations? 

Pre: Equal proportions of ITOs rated USDA’s delivery as average or below and above 

average. The difference between these two was not significant (X2

=0.39, P=0.53).

Post: Nearly all ITOs (96%) thought USDA delivery operations were between efficient and 

highly efficient. 

Efficiency Pre PVP

Not 3 1

Average 8 0

Efficient 11 12

Highly Efficient 1 10

Mean 2.8 3.3

3

1

8

0

11

12

1

10

0

2

4

6

8

10

12

No. of ITO's

Not Average Efficient Highly Efficient

Efficiency

Fig. Q35. Efficiency of Delivery Operations

Pre

PVP
78 

Q36: How do you rate USDA’s/Reinharts delivery operations?

Pre: The proportions that this item below average or fair and good to excellent were equal. 

The difference between the two opinions was not significant (X2

=0.39, P=0.53).

Post: Nearly all ITOs (96%) rated food delivery between good and excellent, while only 

one rated it lower. The difference between the two opinions was highly significant 

(X2

=0.19.17, P=0.00).

FNS Rating Pre/USDA PVP/Rnhts

Below average 4 1

Fair/average 7 0

Good 11 10

Excellent 1 12

Mean 2.7 3.4 4

1

7

0

11 10

1

12

0

2

4

6

8

10

12

No. of ITO's

Below

average

Fair/average Good Excellent

Rating

Fig. Q36. Rating for Food Delivery Operations

Pre/USDA

PVP/Rnht

s

Q37: What changes will make USDA delivery functions run more smoothly in the future? 

[List: (1) none, (2) more delivery flexibility, (3) less paperwork, (4) more staff/ 

training, (5) more trucks/frequent delivery, and (6) other.] [Number of changes.] 

Pre: Most ITOs (78%) suggested some improvements in food delivery. There was a 

significant difference between those suggested something and those who did not 

(X2=7.35, P=0.01).

Post: A majority of ITOs suggested no improvements. The difference between those that 

did and those that did not suggest anything was not significant (X2

=2.13, P=0.14).

No. of Changes Pre PVP

0 5 15

1 54

2 10 2

3 21

Maximum 4 4

Mean 1.5 0.7

Multiple response categories

5

15

5 4

10

2 2 1

0

2

4

6

8

10

12

14

16

No. of ITO's

0123

No. of Changes

Fig. Q37. Suggested Changes to Improve Food Delivery

Pre

PVP
79 

Q37a: What changes will make USDA delivery functions run more smoothly in the future? 

[List: (1) none, (2) more flexibility in delivery, (3) less paperwork, (4) more staff/staff 

training, (5) more trucks/frequent delivery, and (6) other.] [Area of change.] 

• At the pre survey, suggested food delivery changes were delivery flexibility and more 

trucks. During the Pilot, most ITOs suggested no change. 

Area of Change Pre PVP Multiple response categories

No change 5 15

More delivery flexibility 14 5

Less paperwork 6 1

More staff/training 2 5

More trucks/frequent delivery 11 2

Other 0 2

5

15

14

5

6

1

2

5

11

2

0

2

0

2

4

6

8

10

12

14

16

No. of ITO's

No change More delivery

flexibility

Less paperwork More staff/training More trucks/frequent

delivery

Other

Area of Change

Fig. Q37a. Areas of Suggested Food Delivery Changes

Pre

PVP

4. WAREHOUSING AND INVENTORY MANAGEMENT

Q38: How many cases of commodity did you order during the year?

• The maximum number of cases ordered in both the year before and during the first 

year of the Pilot were over 20,000; the mean numbers of cases were 13,700 and 

14,700 respectively. 

• During the year prior to the Pilot, four ITOs ordered 1,000 or less, while during the 

first year of the Pilot, all ITOs ordered more than 1,000 cases. 
80 

Cases Pre PVP

1-1,000 4 0

1,001-2,500 3 4

2,501-5,000 5 4

5,001-10,000 2 6

10,001-20,000 4 3

20,000+ 5 6

Mean 13,700 14,740

4

0

3

4

5

4

2

6

4

3

5

6

0

2

4

6

No. of ITO's

1-1,000 1,001-

2,500

2,501-

5,000

5,001-

10,000

10,001-

20,000

20,000+

Cases

Fig. Q38. Cases Ordered During the Year

Pre

PVP

Q39: What was your average monthly inventory (cases)?

• Average monthly inventory was mostly within 2,000 cases at both periods. 

Cases Pre PVP

N/A 8 4

1-500 3 6

501-1,000 2 5

1,001-2,000 6 4

2,001-5,000 2 2

5,001+ 2 2

Minimum 10 300

Maximum 5,000 7,209

Mean 1,419 1,704

8

4

3

6

2

5

6

4

2 2 2 2

0

2

4

6

8

No. of ITO's

N/A 1-500 501-1,000 1,001-

2,000

2,001-

5,000

5,001+

Cases

Fig. Q39. Average Monthly Inventory

Pre

PVP

Q40: Did your ITO have a warehouse? 

• All ITOs reported having a warehouse at both periods. 
81 

Q41: Did your ITO have any storage problems?

Pre: About 65% ITOs reported having storage problems as against 35% that did not. This 

difference was not significant (X2

=2.13, P=0.14). 

Post: Storage problems decreased during the Pilot, with the difference between those that 

had problems and those that didn’t being significant (X2

=7.35, P=0.01).

Problems Pre PVP

No 15 18

Yes 8 5

15

18

8

5

0

2

4

6

8

10

12

14

16

18

No. of ITO's

No Yes

Fig. Q41. Did ITO Have Any Storage Problem?

Pre

PVP

Q41a: Did your ITO have any storage problems? [Type of Storage Problems]. 

• Only five ITOs (22%) reported storage problems in each survey. The problems 

involved space and coolers respectively. 

Problems Pre Post

None 18 18

Space 4 1

Coolers 1 3

Other 0 1

18 18

4

1 1

3

0

1

0

2

4

6

8

10

12

14

16

18

No. of ITO's

None Space Coolers Other

Fig. Q41a. Storage Problems

Pre

Post
82 

Q42: How many warehouse staff (FTE) did you have?

• Most ITOs had between 6 and 15 warehouse staff FTE, with about equal distributions 

and similar means (9.1 and 9.2 respectively) in both periods. 

• There was generally no change either in magnitude or trend in warehouse staff 

between the pre and post survey periods. 

Staff FTE Pre Post

0 01

 1-5 2 3

 6-10 14 12

 11-15 6 6

 16+ 1 1

Minimum 1 0

Maximum 16 17

Mean 9.1 9.2

0

1

2

3

14

12

6 6

1 1

0

2

4

6

8

10

12

14

No. of ITO's

0 1-5 6-10 11-15 16+

FTE

Fig. Q42. Total Warehouse Staff 

Pre

Post

Q42a: How many staff (FTE) did you have for Offloading Trucks?

• Most ITOs had between 2 and 3 offloading staff in both periods. 

• There were fewer offloading staff during the Pilot; the means were 2.4 and 2.1 FTE 

respectively. 

Offloading FTE Pre Post

0 11

1 34

2 10 10

3 57

4 31

5 10

Maximum 5 4

Mean 2.4 2.1 1 1

3

4

10 10

5

7

3

1 1

0

0

2

4

6

8

10

No. of ITO's

012345

FTE

Fig. Q42a. Offloading Staff

Pre

Post
83 

Q42b: How many staff (FTE) did you have for Placing Food in Warehouse?

• Most ITOs had between 1 and 4 staff FTE for placing food in warehouse in both 

periods. The means were 2.2 and 1.9 respectively. 

FTE Pre Post

0 11

1 64

2 87

3 4 10

4 40

5 01

Maximum 4 5

Mean 2.2 1.9

1 1

6

4

8

7

4

10

4

0 0

1

0

2

4

6

8

10

No. of ITO's

012345

FTE

Fig. Q42b. Staff for Stacking Food in Warehouse

Pre

Post

Q42c: How many staff (FTE) did you have for Processing Inventory Records?

• A majority of ITOs had between 1 and 2 staff FTE for inventory processing and 

records for both periods. The means were 1.5 and 1.6 respectively. 

FTE Pre Post

0 11

1 13 11

2 6 10

3 30

4 00

5 01

Maximum 3 5

Mean 1.5 1.6

1 1

13

11

6

10

3

0 0 0 0

1

0

2

4

6

8

10

12

14

No. of ITO's

012345

FTE

Fig. Q42c. Staff for Processing Inventory Records

Pre

Post
84 

Q42d: How many staff (FTE) did you have for Pulling Orders?

• Staff FTE for pulling orders was between 1 and 3 in both periods. The means were 

1.9 and 2.0 respectively. 

FTE Pre Post

0 11

1 96

2 6 10

3 55

4 21

Maximum 4 4

Mean 1.9 2.0

1 1

9

6 6

10

5 5

2

1

0

2

4

6

8

10

No. of ITO's

01234

FTE

Fig. Q42d. Staff for Pulling Orders

Pre

Post

Q42e: How many staff (FTE) did you have for Preparing FNS I-152?

• A majority of ITOs had only one staff FTE for preparing FNS I-152 in both periods. 

The means were 1.1 and 1.2. 

I-152 Staff Pre Post

0 12

1 18 15

2 45

3 01

Maximum 2 3

Mean 1.1 1.2

1

2

18

15

4

5

0

1

0

2

4

6

8

10

12

14

16

18

No. of ITO's

0123

FTE

Fig. Q42e. Staff for Preparing FNS I-152

Pre

Post
85 

Q43: How much time (hours/week) was spent by staff on warehouse tasks?

• There was a significant difference between pre and post in terms of the number of 

hours ITOs spent on warehouse tasks. The means were 44.2 and 238.4 respectively. 

• This huge difference between the two periods in weekly warehouse hours appears to 

be the result of two things: (1) the increase in the frequency of ordering, and (2) large 

increases in the reported hours of two ITOs. 

Hours/week Pre Post

 1-10 5 3

 11-20 3 3

 21-40 5 9

 41-60 6 3

60+ 4 5

Minimum 4 3

Maximum 170 2,404

Mean 44.2 238.4

5

3 3 3

5

9

6

3

4

5

0

2

4

6

8

10

No. of ITO's

 1-10 11-20 21-40 41-60 60+

Hours Per Week

Fig. Q43. Total Time Spent on Warehouse Tasks

Pre

Post

Q43a: How much time (hours/week) was spent by staff on Food Ordering tasks?

• Time spent per week on food ordering tasks was almost exclusively less than 10 

hours per ITO for both the year prior and during the Pilot. The means were 7.9 and 

5.5 hours a week respectively. 

Hours/week Pre Post

0 12

 1-10 19 19

 11-20 1 0

 21-40 1 1

41+ 1 1

Maximum 72 52

Mean 7.9 5.5

1

2

19 19

1 0 1 1 1 1

0

2

4

6

8

10

12

14

16

18

20

No. of ITO's

0 1-10 11-20 21-40 41+

Hours Per Week

Fig. Q43a. Time Spent on Food Ordering Tasks

Pre

Post
86 

Q43b: How much time (hours/week) was spent by staff on Food Delivery and receiving 

tasks?

• Time spent per week on food delivery and receiving was mostly less than 10 hours 

per ITO for most ITOs. The averages were 7.8 and 35.9 hours a week respectively In 

the post period, two ITOs had large increases. 

Hours/week Pre Post

0 12

 1-10 16 15

 11-20 3 2

 21-40 3 2

41+ 0 2

Maximum 25 576

Mean 7.8 35.9

1

2

16 15

3 2 3

2

0

2

0

2

4

6

8

10

12

14

16

No. of ITO's

0 1-10 11-20 21-40 41+

Hours Per Week

Fig. Q43b. Time Spent on Food Delivery and Receiving Tasks

Pre

Post

Q43c: How much time (hours/week) was spent by staff on Food Inventory tasks?

• Time spent per week on food inventory was mostly less than 10 hours per ITO for 

most ITOs. In the post period, two ITOs had considerable increases. 

• The averages were 4.6 and 26.3 hours a week respectively. 

Hours/week Pre Post

0 32

 1-10 18 16

 11-20 2 2

 21-40 0 1

41+ 0 2

Maximum 20 416

Mean 4.6 26.3

3 2

18

16

2 2

0

1 0

2

0

2

4

6

8

10

12

14

16

18

No. of ITO's

0 1-10 11-20 21-40 41+

Hours Per Week

Fig. Q43c. Time Spent on Food Inventory Tasks

Pre

Post
87 

Q43d: How much time (hours/week) was spent by staff on Food Preparation and 

Distribution to clients?

• Food preparation and distribution hours nearly tripled, increasing from a mean of 21.3 

per week in the pre survey to 57 per week during the Pilot. 

 

Hours/week Pre Post

0 32

 1-10 8 6

 11-20 5 4

 21-40 5 9

41+ 2 2

Maximum 120 840

Mean 21.3 57.0 3

2

8

6

5

4

5

9

2 2

0

2

4

6

8

10

No. of ITO's

0 1-10 11-20 21-40 41+

Hours Per Week

Fig. Q43d. Time Spent on Food Preparation and Distribution 

Tasks

Pre

Post

Q43e: How much time (hours/week) was spent by staff on Preparing FNS I-152? 

• Time for preparing FNS I-152 also increased five times, from a mean of 1.5 hours per 

week to 7.9 hours per week. 

Hours/week Pre Post

0 67

 1-10 17 13

 11-20 0 1

 21-40 0 1

41+ 0 1

Maximum 4 104

Mean 1.5 7.9 6

7

17

13

0

1

0

1

0

1

0

2

4

6

8

10

12

14

16

18

No. of ITO's

0 1-10 11-20 21-40 41+

Hours Per Week

Fig. Q43e. Time Spent on Preparing I-152 Tasks

Pre

Post
88 

Q43f: How much time (hours/week) was spent by staff on Other Tasks?

• Generally, very little time was spent on other tasks. 

Hours/week Pre Post

0 21 18

 1-10 1 2

 11-20 1 1

 21-40 0 1

41+ 0 1

Maximum 20 416

Mean 0.9 20.5

21

18

1 2

1 1 0 1 0 1

0

2

4

6

8

10

12

14

16

18

20

22

No. of ITO's

0 1-10 11-20 21-40 41+

Hours Per Week

Fig. Q43f. Time Spent on Other Tasks

Pre

Post

Q44: How many times was inventory Insufficient to fill orders?

Pre: Two ITOs reported insufficient inventory one or two times during the year. 

Post: During the Pilot, six ITOs reported insufficient inventory one or two times, two 

reported three or four times, one five times, and one twenty times. A review of 

September 2002 I-152 reports showed beginning and ending inventory for all 23 ITOs 

for nearly all of the food package at each program, except for fresh produce which 

ITOs are discouraged to have a roll-over of due to short shelf life. 

No. of Times Pre Post

0 21 13

 1-2 2 6

 3-4 0 2

5 01

20 0 1

Maximum 1 20

Mean 0.1 1.8

21

13

2

6

0

2

0 1 0 1

0

2

4

6

8

10

12

14

16

18

20

22

No. of ITO's

0 1-2 3-4 5 20

Times

Fig. Q44. Times Inventory Was insufficient to Fill Orders

Pre

Post
89 

Q45: How do you rate your inventory management operations?

Pre: All but 5 ITOs rated their inventory management as good or excellent. The 

difference between the high and low raters was significant (X2

=9.78, P=0.10).

Post: All ITOs rated their inventory management operations as good or excellent, with 

about equal proportions.

Rating Pre Post

Below average 1 0

Fair/average 4 0

Good 14 12

Excellent 4 11

Mean 2.9 3.5

 

1 0

4

0

14

12

4

11

0

2

4

6

8

10

12

14

No. of ITO's

Below

average

Fair/average Good Excellent

Rating

Fig. Q45. Self Rating for Inventory Management

Pre

Post

Q46: Was there any spoilage or loss of donated commodities?

Pre: Just over half (52%) of ITOs reported spoilage or loss and the other half did not. The 

difference between the two groups was not significant (X2=0.04, P=0.84).

Post: More ITOs (65%) reported experiencing spoilage or loss and the rest did not. The 

difference between the two groups was not significant (X2

=2.13, P=0.14).

Spoilage/Loss Pre Post

No 11 8

Yes 12 15

 

11

8

12

15

0

2

4

6

8

10

12

14

16

No. of ITO's

No Yes

Fig. Q46. Commodity Spoilage or Loss

Pre

Post
90 

Q46a: Was there any spoilage or loss of donated commodities? [Number of times]. 

• There was no difference in the overall trend in commodity spoilage or loss. 

Times Pre Post

0 11 8

1 69

2 34

3 11

4 + 2 1

Maximum 2 2

Mean 1.3 1.4

11

8

6

9

3

4

1 1

2

1

0

2

4

6

8

10

12

No. of ITO's

0 1 2 3 4 +

Times

Fig. Q46a. Times of Commodity Spoilage or Loss

Pre

Post

Q46b: Was there any spoilage or loss of donated commodities? [First reported spoilage or 

loss]. 

• The first reported spoilage was mostly in the form of moldy or poor quality food, 

damaged cans, and packaging/shipping problems. 

First Loss Pre Post

None 16 8

Damaged cans 3 5

Moldy/poor quality 2 3

Packaging/ shipping 2 7

 

 

16

8

3

5

2

3

2

7

0

2

4

6

8

10

12

14

16

No. of ITO's

None Damaged cans Moldy/poor

quality

Packaging/

shipping

Loss

Fig. Q46b. First Reported Loss

Pre

Post
91 

Q46c: Was there any spoilage or loss of donated commodities? [Second reported spoilage or 

loss]. 

• Only few ITOs (four in pre and six in post) reported a second loss relating to open 

packages, and handling/shipping problems. The trend was the same for both periods. 

Second Loss Pre Post

None 19 17

Handling 1 2

Open package 1 2

shipping 2 2

 

 

19

17

1

2

1

2 2 2

0

2

4

6

8

10

12

14

16

18

20

No. of ITO's

None Handling Open package shipping

Loss

Fig. Q46c. Second Reported Loss

Pre

Post

Q46d: Was there any spoilage or loss of donated commodities? [First reported damaged 

food]. 

• Foods that were damaged were mostly canned goods, cereals, milk products, and 

potatoes/produce. 

• Seven in the pre survey and only two in the post survey reported such loss. 

First Food Pre Post

None 16 21

cans 1 1

Cereals 3 0

milk prods. 2 0

prod./potato 1 1

 

 

16

21

1 1

3

0

2

0 1 1

0

2

4

6

8

10

12

14

16

18

20

22

No. of ITO's

None cans Cereals milk prods. prod./potato

Food

Fig. Q46d. First Reported Damaged Food

Pre

Post
92 

Q46e: Was there any spoilage or loss of donated commodities? [Second reported damaged 

food]. 

• Very three ITOs in the pre survey and one in the post survey reported a second 

damaged food, involving beef, cheese, and flour. 

Second Food Pre Post

None 20 22

beef 1 0

cheese 1 0

flour 1 1

 

 

20

22

1 0 1 0 1 1

0

2

4

6

8

10

12

14

16

18

20

22

No. of ITO's

None beef cheese flour

Food

Fig. Q46e. Second Reported Damaged Food

Pre

Post

Q47: What changes do you think will make inventory management operations run more 

smoothly?

Pre: Just over half (52%) of ITOs made suggestions on improving inventory management 

operations and the other half made no suggestions. The difference between the two 

groups was not significant (X2=0.04, P=0.84).

Post: All but one ITO suggested improving inventory management. The difference between 

the two groups was significant (X2=5.26, P=0.02). ITOs stated that “knowing when 

deliveries are going to show up” was an immense advantage of the Pilot, i.e. a 

scheduled delivery date versus the 15 days shipping period before the Pilot. 

Changes Pre Post

None 11 1

Reliable delivery 5 16

More inventory 3 2

Less inventory 2 3

Other 2 3

 

11

1

5

16

3 2 2 3 2 3

0

2

4

6

8

10

12

14

16

No. of ITO's

None Reliable

delivery

More

inventory

Less

inventory

Other

Food

Fig. Q47. Suggested Changes to Inventory Management

Pre

Post
93 

5. OPERATIONAL AND STAFFING COSTS

5a. Procurement Costs

Q48: How many staff FTE handled the ordering component? 

• Food ordering was handled by one or two staff FTE in most ITOs in both of the years 

before and during the Pilot. 

 

FTE Pre Post

0 10

1 98

2 88

3 43

4 13

Minimum 0 1

Maximum 4 4

Mean 1.8 2.1

1

0

9

8 8 8

4

3

1

3

0

2

4

6

8

10

No. of ITO's

01234

FTE

Fig. Q48. Staff Who Handled Food Ordering

Pre

Post

Q49: On average, how much time (hours/month) was spent by each staff on ordering tasks?

• In most ITOs in both periods, staff spent less than ten hours a month each on 

procurement tasks. 

Hours/staff/mo. Pre Post

0 46

 1-10 16 13

 11-20 1 2

21+ 2 2

Maximum 21+ 21+

Mean 6 6.3

4

6

16

13

1

2 2 2

0

2

4

6

8

10

12

14

16

No. of ITO's

0 1-10 11-20 21+

Hours/staff/month

Fig. Q49. Hours Spent by Each Ordering Staff Per Month

Pre

Post
94 

Q50: How many hours (per month) did the entire ordering process take?

• Most ITOs reported spending less than 10 hours a month on the entire procurement 

process. 

• The trend was the same for both years. 

Total Hrs./mo. Pre Post

0 10

 1-10 15 16

 11-20 4 5

21+ 3 2

Minimum 0 3

Maximum 23 21

Mean 6.7 7.7

1 0

15

16

4

5

3

2

0

2

4

6

8

10

12

14

16

No. of ITO's

0 1-10 11-20 21+

Hours/month

Fig. Q50. Hours Spent on Ordering Process Per Month

Pre

Post

Q51: Were there any other procurement costs?

• Most ITOs reported no other procurement costs. 

Other Proc. Costs Pre Post

No 19 21

Yes 4 2

 19

21

4

2

0

2

4

6

8

10

12

14

16

18

20

22

No. of ITO's

No Yes

Fig. Q51. Other Procurement Costs

Pre

Post
95 

5b. Warehousing Costs

Q52: What was your warehouse storage capacity (sq. ft.)?

Pre: Over 78% of ITOs had warehouses, of which 84% had a capacity of 500 to 6,000 

square feet. Maximum space was 8,575 square feet and the mean was 2,863. 

Post: About 83% of ITOs had warehouses, of which 90% had a capacity of 500 to 6,000 

square feet. Maximum space declined to 6,800 square feet, but the mean increased to 

3,405 square feet. 

 The decrease in maximum space and increase in the mean during the first year of the 

Pilot imply that the frequent ordering opportunity provided by the Pilot obviated the 

need for very large warehouses, but necessitated slight increases in smaller ones. 

Sq. Feet Pre Post

0 54

 1-500 1 1

501-2000 4 4

2001-4000 6 7

4001-6000 6 6

6000+ 2 1

Maximum 8,575 6800

Mean 2,863 3,405

5

4

1 1

4 4

6

7

6 6

2

1

0

2

4

6

8

No. of ITO's

0 1-500 501-2000 2001-

4000

4001-

6000

6000+

Square Feet

Fig. Q52. Warehouse Capacity

Pre

Post

Q53: What was the total warehousing cost for the year?

• Half of ITOs reported no warehouse costs. The other half reported costs mostly 

between $5,000 and $30,000 a year. 

Cost/yr.

(x $1,000) Pre Post

0 11 12

< 5 2 1

 5-10 3 4

 10-20 2 1

 20-30 3 3

 30-100 1 1

100+ 1 0

Maximum 127,102 100,000

Mean 14,564 19,612

11

12

2

1

3

4

2

1

3 3

1 1 1

0 0

2

4

6

8

10

12

No. of ITO's

0 < 5 5-10 10-20 20-30 30-100 100+

Thousands of Dollars

Fig. Q53. Total Annual Warehouse Cost

Pre

Post
96 

Q54: Were there any other warehouse costs?

• Very few ITOs (13% and 22% respectively) reported having other warehouse costs. 

Other Costs Pre Post

No 20 18

Yes 3 5

 

 

20

18

3

5

0

2

4

6

8

10

12

14

16

18

20

No. of ITO's

No Yes

Hours/staff/month

Fig. Q54. Hours Spent by Each Procurement Staff 

Per Month

Pre

Post

5c. Delivery Costs

Q55: How many deliveries did your ITO receive?

• Deliveries ranged up to 24 at the pre and up to 60 at the post periods, with means of 

8.1 and 15.8 respectively. In essence, there were twice as many deliveries during the 

Pilot as the year before. 

Deliveries Pre Post

0 41

 1-6 7 3

 7-12 8 11

 13-24 4 5

 25-36 0 2

36+ 0 1

Minimum 0 3

Maximum 24 60

Mean 8.1 15.8

4

1

7

3

8

11

4

5

0

2

0

1

0

2

4

6

8

10

12

No. of ITO's

0 1-6 7-12 13-24 25-36 36+

Number of Deliveries

Fig. Q55. Total Deliveries During the Year

Pre

Post
97 

Q56: On average how many hours a month did each delivery staff spend on delivery tasks?

• Hours spent on delivery tasks by most ITOs were between 1 and 6 per staff per 

month. Although the maximum for the post period was higher, the means were 

almost equal. 

 

Hours Pre Post

0 20

 1-2 4 9

 3-4 9 9

 5-6 8 4

7+ 0 1

Minimum 0 1

Maximum 6 12

Mean 3.6 3.5 2

0

4

9 9 9

8

4

0

1

0

2

4

6

8

10

No. of ITO's

0 1-2 3-4 5-6 7+

Hours/staff/month

Fig. Q56. Hours Spent by Each Delivery Staff Per Month

Pre

Post

Q57: Were there any other delivery costs? 

• Very few ITOs (one at pre and two at post) reported other delivery costs. 

Other Costs Pre Post

No 22 21

Yes 1 2

 

 

22 21

1

2

0

2

4

6

8

10

12

14

16

18

20

22

No. of ITO's

No Yes

Fig. Q57. Any Other Delivery Costs?

Pre

Post
98 

Q58: What would you estimate the total value ($) of spoilage during the year?

• A majority of ITOs (61% and 52% respectively) reported no loss. The mean spoilage 

values were $95.20 and $74.70 respectively for the year prior to and during PVP. 

Value of

Spoilage ($) Pre Post

0 14 12

< 100 3 6

100-250 4 2

251-500 1 3

501-1,000 1 0

Maximum 800 500

Mean 95.20 74.70

14

12

3

6

4

2

1

3

1

0

0

2

4

6

8

10

12

14

No. of ITO's

0 < 100 100-250 251-500 501-1,000

Thousands of Dollars

Fig. Q58. Total Value of Spoilage

Pre

Post

Q59a: Please provide any other comments about food distribution in Indian reservations 

during the year. [Negative Comments]. 

Pre: About 44% of ITOs commented negatively on delivery time, poor variety/small 

quantity, dislike for USDA labels, and poor packaging. 

Post: Only 3 ITOs (13%) reported negative comments regarding poor variety and poor 

packaging. There were no negative comments on ordering/delivery time. 

Negative Comments Pre Post Note: (1) Number of participating ITO's is 23.

None 13 20 (2) Multiple response categories.

Poor variety/ small quantity 5 2

Long order/ delivery time 8 0

Dislike USDA labels 3 0

Poor packaging 2 1

Other 1 0

13

20

5

2

8

0

3

0

2

1 1 0

0

2

4

6

8

10

12

14

16

18

20

No. of ITO's

None Poor variety/

small quantity

Long order/

delivery time

Dislike USDA

labels

Poor

packaging

Other

Fig. Q59a. General Negative Comments

Pre

Post
99 

Q59b: Please provide any other comments about food distribution in Indian reservations 

during the year. [Positive Comments]. 

Pre: Nearly three-quarters (74%) of ITOs had no positive comment on the food 

distribution program during the year prior to the Pilot. The few comments made were 

about the good variety/right quantity and delivery/distribution. 

Post: Over half (53%) of ITOs expressed positive comments compared to 26% the year 

before the Pilot. About of the positive comments (48%) were about improvements in 

delivery/order/distribution; About one-third (30%) liked non-USDA labels; onequarter (26%) praised the good variety/right quantity; and one-fifth (22%) 

complimented the fine packaging. 

Positive Comments Pre Post Note: (1) Number of participating ITO's is 23.

None 17 11 (2) Multiple response categories.

Good variety/ right quantity 2 6

Delivery/order/ distribution 1 11

Like non-USDA labels 0 7

Fine packaging 0 5

Other 3 2

17

11

2

6

1

11

0

7

0

5

3

2

0

2

4

6

8

10

12

14

16

18

No. of ITO's

None Good variety/

right quantity

Delivery/order/

distribution

Like non-USDA

labels

Fine packaging Other

Fig. Q59b. General Positive Comments

Pre

Post