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TO:                   Superintendents of Schools, School Food Service Directors

FROM:             Susan A. Gendron, Commissioner

DATE:              May 17, 2006

RE:                   Child Nutrition: Food Distribution Program Warehouse Contract

The Child Nutrition, Food Distribution program warehouse contract for school year 2007 has been awarded. The warehouse contract is for the delivery and storage of USDA commodity products. School districts pay a storage and delivery fee per case of commodity products delivered to their district.

The successful bidder for the warehouse contract was PFG NorthCenter Foods. The warehouse contract term is from July 1, 2006 to June 30, 2007. PFG NorthCenter Foods has been the warehouse contractor for several years now; this should create a very smooth transition into the new school year. However, there is a substantial price increase. Beginning July 1, 2006 districts will be charged the following amounts for the delivery and storage of USDA commodities through PFG NorthCenter Foods.

Deliveries will be $2.97 per case.

Administration fees for specific processed items will be $4.54 per case.

Storage fees:

Questions about the warehouse contract should be directed to Harry Osgood, at 624-6846 or Walter Beesley, at 624-6875.