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2014 NAFDPIR Conference USDA Food and Nutrition Service

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Presentation on theme: "2014 NAFDPIR Conference USDA Food and Nutrition Service"— Presentation transcript:

1 2014 NAFDPIR Conference USDA Food and Nutrition Service
General Session June 9, 2014

2 FDPIR overview & Priorities
Laura Castro Director, Food Distribution Division

3 Recent Developments Implementation of final rule established parity between SNAP and FDPIR eligibility requirements Changes in SNAP Benefit Level from ARRA Sunset Impact: Participation National and Local Inventories Funding [Dana to cover rule in detail during policy update.] The FDPIR: Income Deductions & Resource Eligibility Final Rule was published final on August 27, 2013 with an effective date of September 26, This rule established more parity between FDPIR and SNAP by revising income deductions and removing the resource test. On November 1, 2013, the American Recovery and Reinvestment Act of 2009 (ARRA) temporary increase in SNAP benefits expired. This resulted in SNAP benefit amounts being reduced. For example, the maximum SNAP benefit for a one-person household was reduced from $200 to $189. These recent policy changes to both programs likely contributed to the increase in FDPIR participation this fiscal year.

4 Participation in FDPIR
Currently serving an average of 83,000 individuals per month nationally. As of February 2014, FDPIR is serving an average of 83,000 individuals a month. To date, this is a 10 percent increase from FY 2013 when FDPIR served approximately 75,600 individuals on an average monthly basis. FY 2014 Individuals Participating in FDPIR: Oct ,634   Nov ,602   Dec ,293 Jan ,192   Feb ,569 Preliminary Data: March 2014 – 84,684 individuals April 2014 – 84,658 individuals

5 National and Local Inventories
Participation increases put strain on food availability/variety Procurement schedule – generally 3 months in advance of delivery Increase in food costs – due to inclement weather Commitment to meet full food package The recent, higher than expected increase in FDPIR participation this fiscal year (FY) has driven a higher demand for FDPIR foods, resulting in lower inventory levels. As USDA Foods are generally procured 3 months in advance of delivery for use in FDPIR and other FNS nutrition assistance programs, the significant participation increases have resulted in a temporary shortfall on some available food selections. During the next few months, while the full variety of foods available in FDPIR may be somewhat lower than normal, FNS is committed to ensuring that all programs can offer a full food package. In some instances, less popular items may need to be offered until purchasing inventories can be adjusted to meet the higher levels of participation FDPIR has recently experienced. Food Distribution Division has been holding monthly conference calls for all FDPIR Program Directors to provide an overview of and outlook on Federal FDPIR food inventories. Touch on Food Costs due to weather patterns/drought. [Janice has slide to cover in more detail.]

6 Fiscal Year (FY) 2014 –2015 Funding
$104.0 million appropriated in FY 2014 Exploring ways to increase program funding for FY 2014 food purchases President’s FY 2015 Budget Request includes $ million for FDPIR, a significant portion of which is to support increased participation $ million was provided to FDPIR for Fiscal Year (FY) 2014, including $ million in administrative funds. Based on the food costs and participation trends, we are exploring ways to increase program funding for FY 2014 food purchases. Additionally, the President's FY 2015 Budget Request includes $ million for FDPIR, a $15 million increase over the enacted FY 2014 funding level. Of that amount, about $10 million is to fund projected participation increases.

7 FY 2014 Food Distribution Program Nutrition Education (FDPNE) Awards
New Application Submission Process 20 Indian Tribal Organizations (ITOs) received awards Amounts awarded range from $5,210 to $135,017 Project Summaries: Since FY 2008, FDPIR programs have had the opportunity to apply directly for almost $1 million in FDPIR nutrition education grants, as authorized and appropriated by Congress, to support culturally relevant nutrition education projects that align with the principles of the Dietary Guidelines for Americans. This is separate from the $250,000 in FDPIR administrative funds for additional nutrition education efforts that FNS also provides FDPIR programs. This year we introduced a new application process through, which overall, went well. In April of this year, twenty (20) awards were made to ITOs ranging from just over $5,000 to $135,000 in grant funding. *Four of the awardees are located in areas designated as part of USDA Secretary Vilsack’s StrikeForce for Rural Growth and Opportunity Initiative. (Alaska Native Tribal Health Consortium, Mississippi Choctaw, MS; Spirit Lake, ND; Zuni Tribe of the Zuni Indian Reservation, NM.) The StrikeForce initiative is part of USDA’s commitment to improve economies and create opportunities in rural communities that need it the most. *One of the awardees, Choctaw Nation of Oklahoma, is a designated Promise Zone. The Promise Zone Initiative is part of the President’s plan to revitalize communities across the country by creating jobs, increasing economic activity, improving educational opportunities, and assisting local leaders in navigating federal program resources. Visit the website address shown on the slide to look at the names of all twenty the organizations funded and summaries of project activities they will implement.

8 FY 2014 Food Distribution Program Nutrition Education (FDPNE) Awards
Examples of Activities Funded Food demonstrations for participants Nutrition, cooking, and food preservation classes for participants Community gardens Cookbooks and calendars Examples of activities funded this year.

9 Nutrition Education Tools Purchased for ITOs
All ITOs received resources to help them provide more nutrition information to participants How Much Fat? Test Tubes (Parts I, II and III) Two Nutrition DVDs to show to participants Poster to Display for Participant Viewing Tip Sheet *Shipped to ITOs November, 2013 *FDD at HQ coordinated/implemented the initiative *FNS regional office staff provided  feedback regarding nutrition education resource needs. *Items selected to serve dual purposes. Items may be displayed or shown with very little staff intervention, or may be used as part of nutrition education sessions and food demonstrations.     *Test tubes are filled with ‘pretend’  fat that displays the amount of fat in 10 different foods. *DVDs focus on recommendations and the Dietary Guidelines for Americans. They may be shown while participants wait for services or used as the basis for nutrition education sessions. * The poster provides  guidance and physical activity tips. *The Tip Sheet offers more suggestions for using the products. 

10 FDPIR Food Package Review
Welcomed new group members FY 2014 Work Plan Frozen pork chop pilot Shell eggs pilot Seneca Nation Spaghetti in 1 lb. boxes Product review & sampling No salt added canned corn and tomatoes DoD customer service feedback The group welcomed NAFDPIR newly elected officers. FY 2014 Work Plan: A draft work plan was introduced to guide workgroup activities for FY The work plan is updated after each meeting to reflect the significant work being done and track deadlines and meeting milestones. Pork chop pilot: FNS made a one-time, pilot purchase of frozen pork chops, which were made available to ITOs for distribution in September 2013 on a fair share basis. Results of the NAFDPIR pork chop pilot survey were highly favorable. Current budget constraints prevent FNS from pursuing additional pork chop purchases. Future orders will be considered dependent on available funding. Shell Eggs Pilot: DoD began modification of fresh produce contracts to include the option to provide shell eggs with produce deliveries on a pilot basis over a limited service area. The New York contract, which includes Seneca Nation, was the first to be modified. The pilot with Seneca Nation may occur as early as this Fall 2014. Spaghetti: The FDPIR guide rates were updated to reflect the new 1 lb. box of spaghetti that was added to the food package. The corresponding fact sheet was also updated. Product Sampling: There were opportunities to sample no salt added corn, tomatoes, reduced sodium ham and reduced sodium cheese. The work group agreed to offer no salt added corn and tomatoes to streamline distribution across FD programs and enhance availability of these popular products. DoD: DoD received customer service feedback from FDPIR programs. Based on the 50 survey responses received from FDPIR programs, DoD completed follow-up calls and onsite visits to address program concerns.

11 What’s New in FDPIR Materials?
FDPIR Program Brochure Next: Banners, Posters, Nutrition Education Brochure, Audio Blogs FNS staff and members of the NAFDPIR Marketing sub-committee have been working together to develop FDPIR related materials that are culturally relevant while reflecting a positive image of the program. Last month, we finalized the FDPIR Program Brochure, which incorporates photos taken at FDPIR program sites in New Mexico and Washington State. We are currently working with our Print Vendor to mail each ITO packets of these brochures. [300 brochures will arrive at the hotel . We will have sample brochures available.] This year, we would like to continue with the project and produce some addition products such as banners and posters. We are also considering doing another brochure focused on nutrition and FDPIR USDA Foods as well as public service announcements, also known as audio blogs.

12 Upcoming Consultation Sessions
FNS Quarterly Consultation Schedule August 20, 2014 from 3 p.m. – 4:30 p.m. Eastern November 19, 2014 from 3 p.m. – 4:30 p.m. Eastern For further information: Dana to cover FB provisions in his policy update.

13 Priorities through FY 2015 Ensure sufficient resources to meet increased participation and full food package benefit levels Collaborate closely with Food Package Review Work Group Share FDPIR Study Final Draft Report with NAFDPIR, receive Final Report Continue regional vendor pilot

14 Policy Updates Dana Rasmussen Chief, Policy Branch
Food Distribution Division Thanks Laura, and thanks for having us here today.

15 Funding for FDPIR FY 2014 Appropriation
Provides $104 million in total appropriated funds $998,000 separately appropriated for FDPIR Nutrition Education (FDPNE) Competitive Grants FY 2015 President’s Budget Request $ million requested Increase of $ million from FY 2014 Includes $10 million to support increases in participation Additional $5 million to expand purchases of regionally preferred and locally grown foods, under 2008 Farm Bill Dana to cite 2008 FB provision, which the $5M would fund.

16 Agricultural Act of 2014 (P.L. 113-79), the 2014 “Farm Bill”
Signed into law on February 7, 2014 Reauthorizes FDPIR through 2018 Provisions impacting Tribes and FDPIR Provisions related to FDPIR Section 4004(a): Traditional and Locally-Grown Food Fund Section 4004(b)(6): Traditional and Local Foods Demonstration Project Additional Provisions Section 4004(b)(1-5): Feasibility Study and Report for Indian Tribes Section 4033: Service of Traditional Foods in Public Facilities

17 FDPIR Final Rule: Income Deductions & Resource Eligibility
Published final on August 27, 2013 with an effective date of September 26, 2013 Financial Eligibility Elimination of resource test Expanded medical expense deduction New regional shelter/utility expense deduction Breakout Sessions at NAFDPIR Conference This month, an updated FDPIR Online Certification Training Program will go live on the FNS website. The updates reflect the changes made to the certification process as a result of the final rule. As an incentive to completing the updated training, we also updated the certificate of completion to include a signature from our FD Division Director, Laura Castro. Regional Offices will be sending around an with more information. Breakout sessions: Tuesday, June 10 at 10:30 a.m. Wednesday, June 11, 3 p.m.

18 Recent Policy Memoranda
FD-132: Questions & Answers Related to the FDPIR Income Deductions & Resource Eligibility Final Rule Covers common questions related to the final rule FD-135: Revised Policy on Certification Periods for Zero Income Households Allows for a minimum of 3-month certification periods for zero income households verified to be stable This year, we released two Policy Memos. FD-132 covers the new FDPIR rule and discusses common questions we have received regarding the new provisions. FD-135L Revises our policy on the length of certification periods for zero income households. Households reporting zero income but with circumstances that are verified to be stable and not likely to change soon should be assigned certification periods consistent with their circumstances, but generally no less than 3 months. Households reporting zero income with unstable circumstances, e.g., households who could receive income soon, must be assigned one- or two-month certification periods.

19 The Study of FDPIR Objectives Study Progress
Obtain updated data on participant characteristics Explore trends in participation Examine distribution models Learn about food package relative to participants’ diets Study Progress Data collection update Final report as early as Winter 2014 As of this month, June 2014,  we have received Tribal Council approval from 18 out of the 23 Tribes that agreed to participate in the study. The research team has completed case record reviews for 14 ITOs; conducted 128 participant surveys; and completed 4 out of 17 site visits.  Tribes working closely with the research team have reported very positive experiences overall with the research process and staff.  We would like to thank all the Program Directors and their staff from the ITOs participating in this study for your time and expertise in assisting our research team. We are very appreciative of your participation and we recognize that we could not do this without your support and assistance. Thank you! [Will share draft and final report w/NAFDPIR.] A final report will be delivered to FNS as early as Winter 2014.

20 Operations & SYSYEMS Updates
Janice Fitzgerald Chief, Household Operations Branch Food Distribution Division

21 TOPICS Food Purchasing & 2014 Updates Purchasing Schedule Food Costs
Replenishment Orders Vendor Pilot Operations Call Review procurement schedules and provide purchasing update for July thru Sept orders Cost comparisons between 2013 to 2014 Overview of how orders are determined (based on trends). Very challenging given fluctuation in participation Provide update Successful – should these continue and if so what information should be provided

22 FOOD PURCHASING Yearly Quarterly Monthly
All Household Programs follow same purchasing schedule Yearly – IDIQ’s – fruits & veggies – processed once/year – i.e. corn, diced tomatoes, green beans, peas, peaches, pears Quarterly – apple products, juice, tomato & spaghetti sauce, canned meats & stew majority of Group B (crackers, rice, pasta products, oils, cereals) Monthly – frozen chicken, ground beef, cheese

23 Purchasing Schedule Yearly Purchases Quarterly Purchases Monthly
IDIQ – deliveries October, 2014 thru September, 2015 Quarterly Purchases October thru December Deliveries Purchase in July Monthly October Deliveries Purchase in August IDIQ - determine demand in March, 2014 Oct thru Dec deliveries have been awarded. January thru September deliveries will be awarded in …..

24 Food Purchased IDIQ (Yearly) Quarterly Monthly Apricots
Remaining Fruits & Vegetables Cheese Mixed Fruit Juices Ground Beef Peaches Apple & Dried Fruit Products Chicken (Split Breast & Canned) Pears Beans Turkey Green Beans Soups Whole Kernel Corn Livestock Peas FSA Products (Grains, Peanuts, Oils, and Dairy) Diced Tomatoes Carrots Vegetable Mix Sliced White Potatoes Cream Corn Sweet Potatoes IDIQ’s - product harvested & packed once a year Quarterly as implies purchased 4 times/year generally/as a rule Jan April July Oct Vegetables for example Hominy Spinach Dehy’s Spaghetti Sauce Working on new purchasing schedules/contracts that may help with funding and product availability.

25 Food Costs Material 2013 Cost/Truck 2014 Cost/Truck Percent Increase
Frozen Ground Beef $91,000 $114,00 14% Beef Roasts $141,000 $175,000 25% Chicken Split Breasts $56,000 $64,000 15% Whole Bagged $40,000 0% Turkey Roasts $95,000 $113,000 19% Egg Mix $113,500 $133,000 18%

26 Replenishment Orders Inventory orders are based on ordering trends from previous months Generally use a 3 month average from the 3 previous months of multi-food orders Adjustments made based on increased participation and product availability Review orders for 3 month period and when necessary 6 months Account for increased participation and shortages… Determine replenishments at least 4 months in advance of delivery … June reviewing orders to start July purchases for October thru December deliveries

27 Vendor Pilot Continuing with the 4 Oklahoma sites Chickasaw Pawnee
Ponca Sac & Fox

28 Operations Call Monthly call to review inventories
Updates on product availability Inventory status of Americold, Nampa & Paris Brothers

29 Web-Based Supply Chain Management System (WBSCM)
Two system outages are planned  6:00 PM July 3rd until 6:00 AM July 7th – hardware upgrade 6:00 PM July 31st until 6:00 AM August 5th – software upgrade Business operations and delivery schedules will be adjusted Minimal impact to food deliveries or inventory during the outages Two long system outages are planned.  Testing underway to determine if the schedule is solid. 6:00 PM July 3rd until 6:00 AM July 7th – hardware upgrade 6:00 PM July 31st until 6:00 AM August 5th – software upgrade Business operations and delivery schedules will be adjusted to ensure no impact to food deliveries or inventory during the outages

30 Fresh Fruit and Vegetable Order Receipt System (FFAVORs)
No impact to ITO ordering from FFAVORS software release June 14th New Local Procurement State identifier in the catalog Vendor will identify States supplying product in their catalog This will be phased in by vendor through contract modifications- not all vendors will provide this information July 1

31 Electronic Commodity Ordering System (ECOS)
The ECOS application will be shut down mid-September 2014 Organizations should access ECOS and obtain order information if they need to retain historical information

32 Questions?

33 Thank You!

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