[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR250.24]

[Page 468-469]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 250_DONATION OF FOODS FOR USE IN THE UNITED STATES, ITS 
 
                 Subpart B_General Operating Provisions
 
Sec. 250.24  Distributing agency performance standards.

    This section establishes basic performance standards which must be 
followed by distributing agencies responsible for intrastate 
distribution of donated commodities and products. The seven standards 
address the level of service that shall be provided to recipient 
agencies. The basic standards include the following:
    (a) Program management and evaluation. Distributing agencies shall 
conduct reviews in accordance with Sec. 250.19. Distributing agencies 
shall also assess the adequacy of the service provided to recipient 
agencies.
    (b) Information dissemination. Distributing agencies shall provide 
recipient agencies with all information needed for informed 
participation in the program. Distributing agencies shall provide 
program information relative to:
    (1) Current program regulations,
    (2) Summaries of commodity specifications upon request (Sec. 
250.13(j)) and commodity fact sheets,
    (3) Results of any test evaluations and surveys,
    (4) Recipes, and
    (5) Written procedures for ordering commodities, handling 
commodities which are stale, spoiled, out-of-condition or not in 
compliance with specifications (including procedures for replacement by 
the Department under

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Sec. 250.13(g)), submitting complaints and other written policy which 
affects program operations.
    (c) Fiscal responsibility. Distributing agencies shall maintain a 
financial management system which ensures fiscal integrity and 
accountability for all funds and includes a recordkeeping system which 
conforms to generally accepted accounting practices. Distributing 
agencies shall submit information relative to distribution charges to 
FNS in accordance with Sec. 250.15(a).
    (d) Ordering and allocation. Distributing agencies shall ensure that 
donated food is provided on an equitable basis and, to the extent 
practicable, in the types and forms most usable by recipient agencies. 
Distributing agencies shall be responsible for:
    (1) Obtaining and utilizing commodity acceptability information in 
accordance with Sec. 250.13(k);
    (2) Providing recipient agencies with information regarding 
commodity availability;
    (3) Providing recipient agencies with information regarding 
commodity assistance levels;
    (4) Ordering and allocating donated food based on participation data 
for those programs which serve meals;
    (5) Ensuring the availability of commodities, to the extent 
possible, in quantities requested and at times specified by recipient 
agencies;
    (6) Permitting recipient agencies to refuse all or a portion of a 
commodity prior to delivery to the distributing agency if time permits;
    (7) Permitting recipient agencies to change orders for Group B 
(grain, dairy, peanut and oil products) and unlimited bonus commodities 
prior to submission of an order to the Department;
    (8) Providing recipient agencies with ordering options and commodity 
values (Sec. 250.13(a)(5));
    (9) Offering schools participating in the National School Lunch 
Program the per meal value of donated food in accordance with Sec. 
250.48(c); and
    (10) Consider the preparation and storage capabilities of recipient 
agencies when ordering donated food, including capabilities of such 
agencies to handle commodity product forms, quantity, packaging and 
quantities.
    (e) Warehousing and distribution. Distributing agencies shall use a 
warehousing and distribution system that is efficient, cost effective 
and responsive to needs of recipient agencies in accordance with Sec. 
250.14(a). In addition, distributing agencies shall:
    (1) Work with recipient agencies capable of receiving direct 
shipments to order donated food directly into their warehouses;
    (2) Solicit information and recommendations regarding the individual 
delivery needs of recipient agencies;
    (3) Maintain distribution schedules which are equitable and 
reliable, recognize hours of operation, holidays and vacations and other 
special needs of recipient agencies;
    (4) And make donated food available at least monthly to all 
recipient agencies except those that have agreed to less frequent 
deliveries (Sec. 250.13(a)(6)); however, the distributing agency shall 
not be held liable for delays in deliveries of donated food when such 
delays are due to late deliveries of donated food to the distributing 
agency by the Department.
    (f) Disposition of damaged or out-of-condition commodities. 
Distributing agencies shall establish a system for handling recipient 
agency complaints, notifying the Department of any commodity losses in 
accordance with Sec. 250.13(f) and arranging for the replacement of 
lost commodities in accordance with Sec. 250.13(g).
    (g) Processing. Distributing agencies shall administer an acceptable 
processing program in accordance with Sec. 250.30. In addition, 
distributing agencies shall inform recipient agencies annually of 
processing options available to them in facilitating participation in 
State or National processing contracts. Prior to entering into a 
processing contract, distributing agencies shall test end products. The 
end product testing may be delegated to the purchasing recipient agency 
provided that test results are reviewed by the distributing agency. 
Distributing agencies shall monitor the acceptability of processed end 
products as required in Sec. 250.30(b)(1).

[54 FR 42477, Oct. 17, 1989, as amended at 62 FR 53731, Oct. 16, 1997; 
64 FR 72902, Dec. 29, 1999]

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