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Special Milk Program (SMP)

Overview

Federal Special Milk Program

The School Nutrition Special Milk Program (SMP) provides milk to students in pre-kindergarten through grade twelve that do not have access to other Federal child nutrition meal service programs (i.e. National School Lunch Program (NSLP) and School Breakfast Program (SBP)).
 
School Food Authorities (SFAs) are reimbursed for milk served to students in half-pint increments. There is no federal requirement to offer milk at no charge, rather pricing is based on the option selected by the school.
 
 
SMP POS Templates can be found under the SMP-only requirements section of this page.

Pricing Options

SFAs must choose one of the following pricing options:
 

Pricing (with Free Milk Option)

Counting and Claiming
For the SMP Pricing Program with Free Milk Option, milk is provided without charge to children eligible for free milk and are claimed in the free claiming category. Children who are not eligible for free milk pay the established price and are claimed in the paid claiming category. There is no reduced claiming category.
 
The point-of-service (POS) counting system must determine how many half-pint equivalents (8 fl oz) are served to students by benefit category without overt identification. SMP POS templates are posted under the SMP-only Requirements section.
Milk Pricing

Reimbursement provided to schools should be maximized in order to reduce the cost of milk to students. It is recommended to charge the difference between the anticipated per half-pint milk cost and the reimbursement rate. Consider adding on 2 cents to cover any milk price adjustments and administrative costs associated with SMP.

$____ (half-pint cost) + 2¢ – $____ (reimbursement) =
$____ (half-pint price) X 180 days =
$____ (annual charge)

Note: Documentation must be maintained to justify milk price adjustments and administrative costs greater than 2 cents

Program Materials (SY 2020-21)

*Do not distribute before July 1, 2020*

 
 

Public Release

 

All School Food Authorities (SFAs) are required to distribute the SMP Public Release before the start of the school year. SFAs should send this to the media, grassroots organizations, major employers contemplating or experiencing large layoffs, and local unemployment offices (as applicable). SFAs are not required to pay to have the Public Release published, but must maintain documentation of to whom the release was sent along with the specific materials distributed.

 
 

Application Materials

 

SMP Pricing Program with Free Milk Option Application materials must be distributed to all households and used to qualify students for free milk benefits. SFAs may also choose to use Direct Certification to find students that qualify for free milk.

 
 

Sharing Information and Disclosure Agreement

 
If the SFA exercises the option to waive or subsidize other district/school fees (e.g., registration, athletic fees, technology fees, etc.) based on a student’s free milk benefit status, the SFA must utilize the Sharing Information with Other Programs form. This form must be sent to all free benefit recipients, as determined through an application and Direct Certification.
 
SFAs are not allowed to have a blanket fee waiver. SFAs must allow households to limit consent to only those programs they wish to share information. Additional benefits outside of the milk benefit cannot be provided until a signed form is returned to the SFA allowing the information to be shared. For anyone receiving benefit information to approve students for non-milk benefits, a Disclosure Agreement form must be signed and on file at the SFA.

Pricing Program (without Free Milk Option)

Counting and Claiming
For the SMP Pricing Program, all children are charged the same price for milk. It is not provided without charge to children eligible for free milk. All milk is claimed in the paid category.
 
If a SFA charges for milk by half-pint equivalents (8 fl oz) on a daily basis, the point-of-service (POS) counting system must record individual student names for billing purposes. If a SFA collects milk fees on an annual, semester, or quarterly basis, the POS can record the total number of milks served rather than by individual student names. SMP POS templates are posted under the SMP-only Requirements section.
Milk Pricing

Reimbursement provided to schools should be maximized in order to reduce the cost of milk to students. It is recommended to charge the difference between the anticipated per half-pint milk cost and the reimbursement rate. Consider adding on 2 cents to cover any milk price adjustments and administrative costs associated with SMP.

$____ (half-pint cost) + 2¢ – $____ (reimbursement) =

$____ (half-pint price) X 180 days =

$____ (annual charge)

Note: Documentation must be maintained to justify milk price adjustments and administrative costs greater than 2 cents

Non-pricing Program

Counting and Claiming
For the SMP Non-pricing Program, all children are provided milk without charge, or milk is included in tuition, boarding fees, or paid by private donation or endowment. All milk is claimed in the paid category.
 
The SFA may record the total number of half-pint equivalents (8 fl oz) of milk served at the point of service (POS). There is no requirement to track milks served by individual student names. SMP POS templates are posted under the SMP-only Requirements section.

Allowable Milk Types

Pasteurized fluid milk meeting state and local standards, having vitamins A and D at levels specified by the Food and Drug Administration (FDA).
 
  • 1 year old: Unflavored whole milk must be served.
  • 2-5 years old (not yet in kindergarten): Unflavored low-fat (1%) or fat-free (skim) milk is permitted. Flavored milk is not permitted for children two through five years old in a preschool setting. Students enrolled in kindergarten that are five years old may follow the NSLP milk requirements, which allows for fat-free (skim) or low-fat (1%) flavored or unflavored milk.
  • 6 years old and older: Flavored or unflavored fat-free (skim) or low-fat (1%) milk is permitted
Milk sold to adults, as a la carte, or used in meal prep cannot be claimed for reimbursement.

SMP-only Requirements

For SFAs that participate only in the SMP, and none of the other USDA Child Nutrition Programs, please see the requirements below.

SMP-only Requirements

 

Civil Rights

 

Communications

  • Use the template SMP-Only Household Letter to communicate program information to households.
  • Note: The SMP-only Household Letter should be distributed by SFAs that participate in the NSLP and SBP that offer SMP to split session, half-day pre-kindergarten, or kindergarten students not found on a sibling's free and reduced meal application.
 

SMP-Only Contract

 

Counting and Claiming

Note: To determine the cost per half-pint of milk in SMP, divide the total dollar cost of all milk purchased during the claiming month by the number of half-pints of milk purchased. If milk is purchased in bulk, the number of half-pint equivalents must be calculated by multiplying the number of gallons purchased by 16. The cost figure should be carried over four decimal places, for example $0.2348.

carton of milk and bank

 

SMP-Only Contract and Claims

Note: Schools in NSLP and/or SBP that offer the SMP to half-day pre-kindergarten and kindergarten students not claimed in NSLP and/or SBP, must make updates to the School Meal Online Contract.

Reimbursement Rates

 

 

Point of Service

 
 
 

Financial Management

Financial records must be kept to document SMP revenue and expenditures. Funds must be utilized to provide milk at no cost or at a low cost to children. Allowable costs include milk, coolers to store milk, milk cooler repair, napkins, straws, and direct food service labor.
 

Pricing Milk

 

half-pint cost + $0.02-$0.05 (administrative costs) - reimbursement = half-pint price X 180 operating days = annual fee

Food Safety

 
 

Procurement

Read more about procurement requirements

 

Q: What procurement procedures do schools follow to secure milk contracts?

A: All SFAs must meet federal procurement (purchasing) requirements by documenting efforts to maximize open and free competition. Depending on the value of the purchase, the schools has several options.

Read about Micro Purchase Method (purchases costing less than $10,000)

 

This method is a non-competitive form of procurement where small-value procurements can be completed by the school quickly. The main requirement for this procurement method is the price must be reasonable and multiple purchases must be spread among similar vendors. This procurement method is ideal for small random/unexpected purchases, purchases that need to be made quickly due to outages, or for purchases for supplies that are purchased a few times a year.

 

Read about Small Purchase Method (purchases costing less than $250,000)

 

This method is a competitive form of procurement often called three bids and a buy where schools can quickly and competitively purchase and award contracts with a value of less than $250,000. This is the most common procurement method used. Schools can simply call, email, fax, or be in-person at the time of requesting the bid, provide the vendor/supplier enough information and product specifications to submit a bid (verbal or written), and the school will award the contract/purchase to the lowest bidders meeting all the requirements of the bid. The bidder must also be a responsible bidder; able and capable of providing the product or service being procured. Additional information and resources can be found on the 3 Bids and Buy website.

 

Read about Formal Procurement Method (purchases costing more than $250,000)

 

Additional information and resources for this procurement method can be found on the Formal Procurement Method webpage.

 

 

 

Record Retention:

Records need to be kept for all purchases regardless of the procurement method used, including micro-purchases. Examples of solicitation documents for milk bids, along with other milk procurement resources, can be found on the Milk and Dairy Procurement webpage.
 
 

Training Resources:

An online procurement training series is available and includes the following topics:
 
  • Introduction to Procurement
  • Micro Purchase Method
  • Small Purchase Method

Nutritional Quality:

All milk served and claimed in the SMP must be fat-free (skim) milk, low-fat (1%) milk, fat-free or low-fat lactose reduced milk, fat-free or low-fat lactose-free milk, fat-free or low-fat buttermilk, or fat-free or low-fat acidified milk.

Pasteurized fluid milk must be served. It may be unflavored, or flavored for children 6 years and older. Children 2-5 years old must be served unflavored milk. Children 1 year of age must be served unflavored whole milk. There is no requirement that a variety be offered.

 

 
 
 

Special Dietary Needs

See the Special Dietary Needs webpage for regulations and documentation requirements.

Contact

Gina Kulka, SNS
Nutrition Program Consultant
(608) 266-5770
Tanya Kirtz

Nutrition Program Consultant
(608) 266-2410
tanya.kirtz@dpi.wi.gov