bonus_turkey_procinfo

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					                                                    State of Wisconsin
                                              Department of Public Instruction
                                                   Elizabeth Burmaster, State Superintendent


        DATE:              June, 2009

        TO:                All School Food Authorities Participating in the Commodity Program

        FROM:              Lynne Slack and Laura Sime
                           Commodity Team

        SUBJECT:           Bonus Turkey

        USDA has purchased bulk bonus turkey breast meat to be further processed into several
        finished end products. The three processors who will be receiving bulk turkey are House of
        Raeford, JTM and Culinary Standards. Wisconsin’s allocation of bonus turkey at House of
        Raeford will be processed into turkey deli breast (C305) and some bulk turkey allocated to the
        direct diversion schools that have contracted with House of Raeford.

        For the turkey deli breast (C305) ONLY, schools do not need to order this product directly from
        House of Raeford. This product will be offered on a fair share basis through the commodity
        internet order system. In addition, invoicing will be handled directly through the commodity
        system school lunch claim offset method.

        Any additional bonus turkey deli breast (C305) ordered and received will be in addition to
        entitlement turkey deli breast (C305) previously ordered on 2009-10 school year annual order.

        Because this is a bonus commodity, it is available to all school food authorities, regardless of
        which processing program they participate. Prior to ordering, no bulk pound commitment is
        necessary; all of the bulk pounds required for each school’ s orders will come out of a National
        turkey account for each processor. Finished products will be sold on a first come, first serve
        basis until the inventory at each processor is depleted. Therefore, ordering of the finished end
        products need to happen quickly.

        USDA had provided states with procurement guidance regarding the bonus turkey. This
        guidance states:

        “We will not require States or school districts to go through a competitive process to take
        advantage of the finished end products that contain “bonus” turkey produced by House of
        Raeford, Culinary Standards, or JTM Foods. As long as you agree on price with the processor,
        you are free to purchase the finished product.

        However, if 2 or more processors are making like products, a competitive procurement would be
        in order.”

        There are two similar items (sliced turkey breast and gravy and turkey breast filling with
        vegetables) available from both JTM and Culinary Standards. Therefore, procurement is
        required for schools prior to ordering these two products. However, the $100,000 threshold rule



    Mailing Address: P.O. Box 7841, Madison, WI 53707-7841  Street Address: 125 South Webster Street, Madison, WI 53703
Telephone: (608) 266-3390  Toll Free: (800) 441-4563  FAX: (608) 267-1052  TDD: (608) 267-2427  Internet Address: dpi.wi.gov
is applicable. If a school’s total turkey purchase is less than $100,000, the school is only
required to conduct informal procurement.

Informal procurement in this case means that the school must contact JTM and Culinary
Standards to obtain pricing for the like products. When you are evaluating the pricing, please
make sure you are comparing the same pricing structure (processing costs only or is it an
inclusive price, which includes all costs the school is responsible for) for both items. In addition,
case sizes vary from processor to processor. Therefore, you should determine a serving size
price to use for your evaluation.

Schools should contact processors direct for any questions, pricing, to place an order, etc.
Schools will be responsible for payment of invoices to processor(s) and/or distributor(s) on any
turkey products ordered. Please keep in mind that both processors may have minimum ship
requirements.

Enclosed is the product listing for JTM and Culinary Standards. The contact information is
included on this document.

Please note: The turkey taco filling listed on the Culinary Standards information is not available
to schools.