AMS Commodity Procurement Program

Specialty Crops Procurement Division

Industry Meeting
Welcome and Introductions

David C. Jackson

Director, Specialty Crops Procurement Division

AMS Commodity Procurement Program
Key Questions

• Why?

• How is it going?

• What are your thoughts?
Modernization of the Future of 

Commodity Procurement Program

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 2023 – 2.3 billion pounds, $537.9 

million
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 2023 – 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 2023 – 616.2 m pounds, $958.8 m
Market Support Program

• Commodity Credit Corporation (CCC)

• Support American farmers in times of surplus 

for products not allowed under Section 32

• Fiscal Year 2023 – 95.6 m pounds, $49.4 m (rice 

industry)
Emergency Procurement Programs

• Disaster Assistance

• Distribute food during Presidentially declared disasters

• Replenish food used by food banks and schools during 

Presidentially declared disasters

• FY 2023 – None

• Emergency food need

• FY 2023 Ukraine Supplemental – 615.0 m pounds, $135.8 m

• FY 2023 Bill Emerson Humanitarian Trust – 168.4 m pounds, 

$49.8 m

• FY 2023 TEFAP/CSFP – 491.0 m pounds, $943.0 m
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
Dry Beans and Peas

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

2018 2019 2020 2021 2022 2023

Pounds Value
Fresh Fruit and Vegetables

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
Processed Fruit

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
Processed Vegetables

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

450,000,000

500,000,000

2018 2019 2020 2021 2022 2023

Pounds Value
Tree Nuts

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

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 2023

Pounds Value
How Accomplished?

Dedication of CPP employees to 

the support of American farmers 

and people who need food
How Accomplished?

•Partnerships

• AMS – SCP, LPP, 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 functionality fully developed

• Currently learning how to use it in 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 and 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)
Summary of 

Respondents

• 398 USDA domestic vendors 

notified 

o 104 (26%) vendor responses

(excluded, bulk products for further processing 

and International Commodity Procurement 

products )

• Total USDA Foods material codes 

537 

o 318 responses

57% Fruit/Vegetable/Tree Nuts

22% Livestock/Poultry/Fish vendors

21% Dairy/Grain/Oilseed vendors
Supplier Management

• Goal: Manage our suppliers more effectively, treating 

them like “partners” and removing requirements that 

negatively affect their success, while addressing nonconformance to contractual requirements

• Document the foundation for a supplier management 

program in FY 2024

• Explore removal of liquidated damages in FY 2025
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 

• 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
Specialty Crops Procurement 

Division Priorities

Christopher Edwards

Why? How is it going? What are your thoughts?
•Who we are

•What we do

•Impacts and benefits

Background
Discussion Topics 

• Build Partnerships 

• Ensure Timely Delivery 
Business Partnerships

•How are we doing ?

•What can we do better?

•How do our goals align with industry?
CCC Procurements

Kelli Dawkins

Why? How is it going? What are your thoughts?
0

3,500,000

7,000,000

10,500,000

14,000,000

17,500,000

21,000,000

Beans,

Garbanzo

Blueberries,

Wild

Collard

Greens,

Canned

Corn, CannedGreen Beans,

Canned

Hazelnuts Mixed

Vegetables,

Canned

Peas, Canned Potatoes,

Diced,

Canned

Spaghetti

Sauce,

Meatless,

Canned

Tomato,

Diced

Tomato,

Sauce

CCC: Specialty Crop Purchases--Pounds and Value

(October 1, 2023 through March 28, 2024)

Purchased Pounds Purchased Value
Objectives of CCC 

Procurement Approach

• Support American agriculture by encouraging the consumption of 

domestic foods.

• Feed hungry people through the purchase of commodities for 

distribution through TEFAP.

• Assist emergency food organizations.

• Mitigate shortfalls.
CCC Planning Process

Collaborating with economists, vendors and industry groups 

to identify a list of available products.

Partnering with FNS (Food Nutrition Service) to determine 

which products best align with program stakeholders.

Utilizing the IDIQ (Indefinite Delivery Indefinite Quantity) 

contract method to achieve purchasing objectives. 
Current Contracting Method

• Requires bids to each state to mitigate shortfalls.

• Pricing is evaluated to determine fair and reasonable.

• Guaranteed minimum equals 1 full truckload per awarded material.

• Target volume equals the awarded volume. 

• Maximum volume equals 20% over the Target Volume per material.

• Task orders issued every 1-3 months. 
Questions for Industry

• What is working well?

• Where can we improve?

• How would you recommend we mitigate shortfalls?
Section 32 Discussion
USDA Specialty Crop Section 32 Purchases (Approved Amounts)

$0

$100

$200

$300

$400

$500

$600

$700

$800

Fiscal Year 2020 Fiscal Year 2021 Fiscal Year 2022 Fiscal Year 2023 Fiscal Year 2024

Millions

Pending 

Requests
Section 32 Request Rationale

• Markets experiencing an oversupply situation 

• Not all requests have the same justification

• Demand-driven program
When submitting a request, please consider: 

• Any changes to the specification that may be necessary

• Approval request times vary

• Delivery dates 

• Time required to develop, issue and award a solicitation

• Late deliveries and product that does not meet arrive in good 

condition could reflect badly on your industry
Networking:

The Rail Bar & Bites

Crowne Plaza

Kansas City Downtown