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Commercial Distribution

Overview

School Food Authorities (SFAs) receiving USDA Foods through the National School Lunch Program (NSLP) may choose a commercial distributor to deliver their USDA Foods.
Unlike State contracted delivery, SFAs conduct their own procurement and contract with commercial distributors, and SFAs negotiate storage and delivery fees, delivery times, and quantities.
SFAs may opt to have USDA Direct Delivery (Brown Box) products delivered by the State contracted distributor, but all Direct Diversion and Cheese Rebate end products must be delivered by a SFA contracted commercial distributor.
 

Commercial Distribution Agreement Between DPI and SFA

Read this to understand the requirements of opting for commercial distribution. The 2026-27 Agreement between DPI and SFA will be posted in the USDA Foods Ordering System in January 2026. SFAs will accept the terms of the Agreement between January and March 2026.
 

Procuring a Commercial Distributor

School Year 2026-27

Any SFA opting to utilize a commercial distributor for SY 2026-27 to deliver their USDA Foods should begin the procurement process in the fall of 2025, with a goal to award or renew contracts before the Annual Order Survey in mid-February 2026. Any final changes can be made until March 31, 2026. 
 

Procurement Resources

Commercial Distribution of USDA Foods

DPI does not pre- approve commercial distributors. All interested SFAs must follow federal, state, and local procurement regulations and contract with a commercial distributor selected by the SFA. The template below is for the SFA and the contracted distributor to complete and keep on record. Do NOT send to DPI. 

Combining Other Food Service Procurement with USDA Foods Delivery

  • Refer to DPI Procurement Templates webpage for:
    • Prime Vendor (Commercial Distributor)
    • Direct Diversion (USDA Foods Processing)

Resources For Commercial Distributors Only