COMMODITY PROCUREMENT PROGRAM
Looking Ahead

Dave Tuckwiller

Deputy Administrator

AMS Commodity Procurement Program
First: Why and What
Mission

• Agricultural Marketing Service: create 

marketing opportunities for American farmers

• Commodity Procurement Program: create 

marketing opportunities by purchasing food from 

American farmers and donating it to the hungry 

around the world 
International Nutrition and Food Aid 

Programs

• Foreign Agricultural Service (FAS)

o Food For Progress (FFPr)

o McGovern-Dole Food For Education (FFE)

• U.S. Agency for International Development 

(USAID)

o Title II Food For Peace (FFP)

• Fiscal Year 2022 – 4.4 billion pounds, $1.1 billion
Domestic Nutrition Assistance 

Programs (Food and Nutrition Service)

• Child Nutrition Programs

o National School Lunch Program 

o Child and Adult Care Food Program

o Summer Food Service Program

• Nutrition Services Incentive Program

• Commodity Supplemental Food Program

• Food Distribution Program on Indian Reservations

• The Emergency Food Assistance Program

• Fiscal Year 2022 – 1.7 billion pounds, $2.3 billion
Market Support Program

• Section 32 of the Act of 1935

• Support American farmers in times of surplus

• Industry request

• Market analysis

• Secretary approval

• Fiscal Year 2022 – 318.1 m pounds, $548.4 m
Emergency Procurement Programs

• Disaster Assistance

• Distribute food during Presidentially declared disasters

• Replenish food used by food banks and schools during 

Presidentially declared disasters

• FY 2022 – 65.4 million pounds, $77.8 million

• Emergency food need

• FY 2022 – 1.4 billion pounds, $826 million

• FY 2021 – 555.5 million pounds, $659.7 million

• FY 2020 – 315.4 million pounds, $377.4 million
Emergency Procurement Programs

• Market Support

• Farmers to Families Food Box Program

• FY 2021 – 2.0 billion pounds (est), $1.9 billion

• FY 2020 – 2.7 billion pounds (est), $4.0 billion 

• Trade Mitigation

• FY 2019 – 1.1 billion pounds, $1.2 billion

• FY 2020 – 1.0 billion pounds, $1.3 billion
Cooperative Agreements

• Local Food Purchase Assistance Program (LFPA)

• $900 million

• Agreements with state and tribal governments

• Purchase from local producers

• Target underserved producers

• Target distribution to underserved communities

• Local Food for Schools Program (LFS)

• $200 million

• Agreements with state governments

• Purchase from small, local producers

• Target underserved producers

• Distribution to schools
Second: Recent History
Dairy Products

0

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

2018 2019 2020 2021 2022 2023

Pounds Value
Fish & Seafood Products

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

2018 2019 2020 2021 2022 2023

Pounds Value
Grain and Oilseed Products

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

2018 2019 2020 2021 2022 2023

Pounds Value
Livestock Products

0

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

800,000,000

900,000,000

1,000,000,000

2018 2019 2020 2021 2022 2023

Pounds Value
Poultry Products

0

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

800,000,000

2018 2019 2020 2021 2022 2023

Pounds Value
AMS CPP Procurements

0

2,000,000,000

4,000,000,000

6,000,000,000

8,000,000,000

10,000,000,000

12,000,000,000

14,000,000,000

16,000,000,000

2018 2019 2020 2021 2022

Pounds Value
How Accomplished?

Dedication of CPP employees to 

the support of American farmers 

and people who need food
How Accomplished?

•Partnerships

• AMS – LPP, SCP, FGIS, Dairy

• FNS, FAS, USAID

• Industry representatives

• Suppliers
How Accomplished?

• System Innovation

• Automated invoicing

• Implemented Electronic Data Interchange

• Integrated with USDA financial system

• Added reporting capabilities

• Supported new contracting methods
How Accomplished?

• Contracting Innovation

• Contracted for unknown products delivered to 

unknown destinations

• Relaxed supplier approval requirements

• Longer-term contracting with price adjustments

• Forecasted and purchased without orders

• Contracted for transportation through GSA
How Accomplished?

•Requirements Innovation

•Modified oversight requirements

•Modified specifications

•Purchased commercial items
Third: Looking Ahead
Current Model vs. Desired Model

• Current Model (predominant)

1. Orders placed through FNS with 

material, quantity, delivery period, 

destination

2. AMS attempts to purchase orders 

through an invitation for bid 

solicitation

3. Approved suppliers offer firm-fixed 

pricing for each line item

4. AMS awards based on lowest cost

• Desired Model

1. FNS/AMS forecasts expected customer 

demand for up to 5 years

2. AMS solicits proposals for longer-term 

periods

3. Approved suppliers submit proposals, 

using adjustable pricing models

4. AMS awards long-term contracts based 

on best value to the government

5. Orders placed through FNS against 

contracted volumes
Forecasting

• Goal: Utilize forecasting to award long-term contracts 

and reverse the current “order then procure” model to 

“procure then order”, more effectively aligning supply 

and demand

• WBSCM tool fully developed

• Currently planning proofs of concept for fiscal year 2024

• Plan to expand use in fiscal year 2025 and beyond
Long-Term Contracting

• Goal: Lock in supplier capacity so production can be planned, 

while meeting customer expectations more effectively

• Effort to document business and technical requirements to 

enable more efficient long-term contracting and continued use 

of LTC and other methods when needed in FY 2024

• Develop system functionality and begin working with suppliers 

to determine contract structure in FY 2025

• Begin transition to long-term contracts in FY 2026
Transportation Management

• Goal: Manage transportation to allow FOB origin purchasing, 

which may lead to more supplier participation, enable long- term contracts, and result in more timely delivery

• Use GSA transportation contracts as needed to address 

challenges and document business requirements for system 

changes in FY 2024

• Document technical requirements in FY 2025

• Develop system functionality in FY 2026 for use beyond
Distribution Centers

• Goal: Use the commercial “hub spoke” distribution 

model to enable less-than truckloads and reduce or 

eliminate multi-stops

• Data collection and material master reconfiguration in 

FY 2024 – 2026

• Document business and system requirements and 

develop functionality for inventory management – FY 

2024 - 2026
Supplier Management

• Goal: Manage our suppliers more effectively, treating them 

like “partners” and removing requirements that negatively 

affect their success, while addressing non-conformance to 

contractual requirements

• Reduced documentation needed to determine financial 

responsibility and working on recommendations from RFI 

responses

• Explore the removal of liquidated damages in FY 2024, 

replacing with a supplier management program
Specifications/Quality Assurance

• Goal: Reduce or eliminate requirements that provide 

no real value or have been made irrelevant by 

improvements in commercial practices

• Already made some changes – truck seals, USDA 

checkloading, grading vs. auditing 

• Working on recommendations from RFI responses, 

reviewing other requirements
Closing

• We learned from the “opportunities” over the few years

• We have a plan to attain our desired procurement 

model – it will take time

• We look forward to working with you and we need your 

input as we walk through the next few years