Food price services for school procurement

              I
for
chool Food
United States Department of .Agriculture
Food and Nutrition Service
FNS- 181
Depository
PROPERTY OF THE
LIBRARY
OCT 2 5 19 78
University of Nort h Ca ro lina
at Greensboro
Food Price Services for
School Food Procurement
Prepared By:
Food Distribution Division
Food and Nutrition Service
U.S. Department of Agriculture
The following person had major
responsibility for this publication :
Jerome M. Stein
FDD, FNS, USDA
The Food Distribution Division ac­knowledges
the assistance of James
E. Britton of the Child Care and
Summer Program Division, as well as
the assistance received from the
Nutrition and Technical Services Di­vision,
and the Information Division
of the Food and Nutrition Service;
resources from the Food, Safety and
Quality Service, and the Agriculture
Marketing Service, U.S. Department
of Agriculture, in preparing this
publication.
Programs of the U.S. Department of
Agriculture are available to all
eligible persons regardless of race,
color, creed, or national origin.
October 1978
CONTENTS
Introduction
Using Price Source Information and Procurement References
Spec ifi cations
Food Price Information:
Government
Private
References on Food Procurement and School Food Services
Key Words and Terms Used in Food Procurement
Page
l
3
7
ll
12
22
37
47
..
INTRODUCTION
This publication provides the person who buys food information about sources
of food prices. It is atool to help the school food service director and
~ purchasing agent keep up with the food market in order to buy quality food
and keep food costs reasonable.
The listings are accurate as of the publication date, but are subject to
change over time. USDA would like comments and suggestions from school food
service directors and purchasing agents who use this guide. We would like to
know if these price sources are useful in food buying operations for school
systems. Please let us know which guides you selected and how you used them.
Were you able to reduce costs for any foods? Were you able to buy better
quality foods? Are there other price sources that should be added to the
list? Should some of these sources be deleted? Please send your remarks to
the address listed below for your State.
1
New England Regional Office
Food and Nutrition Service
U.S. Department of Agriculture
34 Third Avenue
Burlington, MA 02154
Mid-Atlantic Regional Office
Food and Nutrition Service
U.S. Department of Agriculture
ONe Vahlsing Center
Robbinsville, NJ 08691
Southeast Regional Office
Food and Nutrition Service
U.S. Department of Agriculture
1100 Spring Street, N.W.
Atlanta, GA 30309
Midwest Regional Office
Food and Nutrition Service
U.S. Department of Agriculture
536 South Clark Street
Chicago, IL 60605
Mountain Plains Regional Office
Food and Nutrition Service
U.S. Department of Agriculture
2420 West 26th Avenue, Room 430-D
Denver, CO 80211
Southwest · Regional Office
Food and Nutrition Service
U.S. Department of Agriculture
1100 Commerce Street, Room 5-D-22
Dallas, TX 75202
Western Regional Office
Food and Nutrition Service
U.S. Department of Agriculture
550 Kearny Street, Room 400
San Francisco, CA 94108
2
Connecticut, Maine, Massachusetts,
New Hampshire, Rhode Island, Vermont
Delaware, District of Columbia,
~~aryland, New Jersey, New York,
Pennsylvania, Virginia, West Virgin­ia,
Puerto Rico, Virgin Islands
Alabama, Florida, Georgia, Kentucky,
Mississippi, North Carolina, South
Carolina, Tennessee
Illinois, Indiana, Michigan,
Minnesota, Ohio, Wisconsin
Colorado, Iowa, Kansas, Missouri,
Montana, Nebraska, North Dakota,
South Dakota, Utah, Wyoming
Arkansas, Louisiana, New Mexico~
Oklahoma, Texas
Alaska, American Samoa, Arizona,
California, Guam, Hawaii, Idaho,
Nevada, Oregon, Trust Territories,
Washington
USING PRICE SOURCE INFORMATION AND PROCUREMENT REFERENCES
Some of the food price sources and
references listed in this book may
be applicable in your school systems
and some will not. If you want to
reduce the cost of your school food
service, it may be worthwhile to
review the materials to determine
if they can be useful to you. Sam­ple
copies may be available from
the publishers.
Information on prices of foods can
be used as a way to become know­ledgeable
about the food market.
Knowledge of the food market, inclu­ding
prices, enables the food buyer
to negotiate more effectively with
the contractors that supply foods
for schools.
Knowledge of food requirements and
specifications is necessary for
making decisions about food buying.
By learning to speak the language
of 11 USDA Specifications 11 with ven­dors
and brokers, you will not be
confused by quotations and sales
talk about products. For example,
if the food broker does not have
green beans that meet your specifi­cations
for U.S. Grade A, he or she
may try to sell you U.S. Grade B or
even U.S. Standard beans. Although
U.S. Grade B beans are higher in
quality (in color and tenderness),
they are usually more expensive.
However, some U.S. Standard beans
may be seedy and fibrous.
Working with menus planned at least
30 days in advance makes it possible
for you to estimate food require­ments
and be in a position to order
large quantities of a food and take
3
advantage of volume discounts.
The following are ways to use the
wholesale and retail price informa­tion
that is available through
sources listed in this book:
1. Compile and maintain a record of
food prices for use in menu pre­paration.
Be sure to include
alternate foods that are similar
in nutritional value as well as
cost. Use these prices to esti­mate
cost of a meal and assure
that menus are within budget
restrictions.
2. Develop a price control system.
One way to do this is to:
a. Determine the 15 or 20 foods
that are 11 most often used .. in
your food service. Keep a
careful watch on their prices.
Find ways to keep down cost
of 11 most often used 11 foods.
b. Establish a price control list
and flag top prices that you \
will pay for foods. Do not
buy foods that are above the
flagged price. Be prepared
to change to an alternate
food of similar nutritional
value at a lower cost.
3. Use wholesale FOB-origin prices
as a base and develop a system
for determining whether prices
offered by a vendor are reason­able.
For example, use the FOB­carlot
or truckload (40,000 lbs.)
price as a base and add on esti­mated
costs ·for services such as
transportation, storage, cost of
financing, and delivery of food to
schools. By adding in the various
factors, a realistic cost can be
determined for a food at the local
level.
Here is an example of the way to get
a 11 ball park 11 cost per case of a
truckload (about 1,400 cases of 6
#10 cans) of green beans purchased
from a canner in the Midwest and de­livered
to the east coast. In the
example, the cost of green beans is
from the Pacific Fruit Grower. The
other estimates were obtained by
telephoning a trucking firm, a ware­house,
and a delivery service.
Cost per Case
A. Cost of U.S. Grade B green beans, FOB Midwest canner...... $6.60
B. Shipping cost for truckload to a central warehouse in
Philadelphia (based on weight and volume per case)......... .85
C. Loading 11 in and out 11 of central warehouse and
storage for 30 days........................................ . 17
D. An additional month of storage at warehouse................ .15
E. Financing cost for broker for money tied up in purchase:
F.
G.
1% for 1st month........................................ . 075
1% for 2nd month........ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 075
Distribution from warehouse to schools .................... .
Total estimated cost .................................... ..
Reasonable profit markup (about 2%) ....................... .
Total estimatedcharge by broker ........................ .
.30
$8.22
. 17
$8.39
This $8.39 per case is a reasonable estimate of the charge a vendor might
make for each case of 6 #10 cans delivered to a school.
If a school food service director and the purchasing agent decide to make
a truckload purchase and deal directly with a canner, several of the charges
can be eliminated, depending on available storage.
4
Save per truckload
Eliminate Item Save per case ( 1 ,400 cases)
c $0.17 $238.00
D . 15 210.00
G . 17 238.00
Estimated savings $0.49 $686.00
If bills are paid promptly, the financing cost (item E) could be eliminated~
giving an additional savings.
Total Estimated Savings
0.15
$0.64
Once you have worked out a procedure
for determining cost of services re­lated
to buying a food, it is rela­tively
simple to add on a current
base (wholesale, FOB) price. For
example, most meat prices are avail­able
daily from the 11 Yellow Sheet. 11
Determine your base price, add on
cost of services, and a reasonable
markup (about 2%), and you are in
a good barqaining position to rlis­cuss
meat prices with your vendor.
As you proceed to negotiate con­tracts
with canners, truckers, and
warehouse operators, build in assur­ances
that the product you buy will
arrive in suitable condition. A
product graded U.S. Grade A can be
damaged in transit and arrive with
cans so badly dented that they are
unusable. A frozen food shipped at
below zero temperature can arrive
spoiled in a truck that has lost
refrigeration.
4. Develop food cost information to
use in comparing relative costs
of school food service when con-
5
$210.00
$896.00
sidering a switch from onsite pre­paration
to a catered food ser­vice.
5. Develop food cost information to
use in discussing a cooperative
buying operation with school food
service representatives in neigh­boring
school systems. Find
ways to take advantage of quanti­ty
buying.
6. Develop cost information to use
in considering whether there is
a cost advantage in direct buy­ing
in large amounts at the ter­minal
markets closest to your
school system. Factors to be
considered would include whether
the additional storage and trans­portation
costs eliminated the
possible savings of direct buying.
7. Investigate the possibility of
contracting directly with a can­ner
or freezer for large quanti­ties
of locally produced foods.
11 The Directory of Canning, Freez­ing,
Preserving Industries 11 lists
canners and freezers and tells what
foods they pack. Some of these pro­ducers
sell only through food brok­ers.
Through personal inquiries you
will learn who will sell to you and
at what prices. Don't be afraid to
use the telephone!
Canners and freezers are familiar
with USDA specifications. Be know­ledgeable
about the USDA specifica­tions
and where to find them and
how to use them in buying food.
Balancing the needs of a school food
service against its costs is a con­tinuing
challenge to the concerned
school food service manager.
6
With food costs high, good manage­ment
in the procurement of foods
is essential to keep operational
costs reasonable. The efficient
manager who recognizes that there is
a cost attached to every service
provided by a vendor will plan care­fully
and anticipate needs so that
services such as unnecessary deli­veries
can be eliminated. An
efficient operation combined with
knowledgeable food purchasing can
provide a significant savings in the
cost of operating a school food
service.
SPECIFICATIONS
Specifications are merely a list of
particulars precisely identifying
the product characteristics desired.
These particulars should describe
the product in such a clear manner
as to be mutually understandable to
and measurable by both buyer and
seller. Depending on the food pro­duct,
components of a specification
can include:
1. Name of the Item (Nomenclature)
-- Use an official Standard of
Identity when available.
2. Quality or Official Grade-- This
should be an official classifica­tion
of quality (grade) as deter­mined
by Federal or Federally
licensed State graders. The USDA
grades many commonly used foods.
Seafood is an exception and is
graded by the National Marine
Fisheries Service of the U.S. De­partment
of Commerce. Brand
name or a "same as sample" desig­nation
may alternatively be used
to describe quality.
3. Class, Kind, Style, or Variety
-- Any one or combination of
these could be used depending on
the product. Class may refer to
sex of an animal (i.e., in cattle
class refers to heifer, steer,
bull, or cow.) Kind may refer
to such foods as flour (i.e.,
all-purpose, whole grain, soft­white,
etc.) Variety as seen
in fruits and vegetables such as
in apples (Delicious, Jonathan,
Winesap, etc.) and green peppers
(California Wonder, etc.). Style
generally refers to how a pro-duct
is processed (i.e., canned
7
green beans may be cut ; whole, or
french style.)
4. The Size of the Product -- This
may be expressed in terms of
weight (18-to 20-lb. turkeys),
number per container (oranges,
lOO's means 100 per box), can
sizes (#303, #2-l/2, #10), or
count (frankfurters, 8 per pound).
Note: Weight indication should be
appropriately expressed as net,
gross, drained, dry weight, or
tare weight.
5. Origin -- Where the product
was produced.
6. Packaging Unit -- Crate, carton,
box, bag, barrel, or case. Some­times
a description of the pack­aging
unit should include the
material it is made from (wood,
cardboard, paper) . The minimum
or maximum weight and the dimen­sions
of the package may be used
as appropriate. In some cases,
the specification will in'dicate
if it is new or used .
7. Special Instructions --For ex­ample,
on processed canned foods,
this year's pack may be required.
For frozen foods, the products
must be delivered at 0° For be­low.
The product may require
special labelling, palletizing,
strapping, or packaging protec ­tion.
Also special instructions
may refer to some condition sti­pulations,
as explained below.
Condition Standards
Condition standards are important,
especially for perishable products.
There is a difference between quali~
ty, as determined by grade~ and con­dition.
Condition generally relates
to external factors (time, tempera.
ture, moisture, handling, etc.) that
affect acceptability after the pro~
duct has been inspected. Purchasers
should understand the difference and
place appropriate constraints on
acceptable conditions. ·
Standards of Identity
Standards of Identity are official
descriptions of processed food pro­ducts.
The standards specify and
limit the ingredients used in the
product as well as describe how the
product is fabricated and provides
a physical description of the pro­duct.
The U.S. Department of Agri­culture
(USDA) is responsible for
minimum meat and poultry content
standards while the Food and Drug
Administration (FDA) is responsible
for all other Standards of Identity.
Note that USDA refers to standards
while FDA calls them Standards of
Identity.
While identifying a product in writ­ten
specifications use the applica­ble
nomenclature of the appropriate
Standard of Identity. Check the
Standard of Identity to determine
if the standards described are suf­ficient
to meet your needs. For ex­ample,
_the standard for beef frank­furters
insures the product is made
from beef and does not include vari­ety
meats, extenders, or other non­meat
additives other than spices,
8
seasonings~ and authorized preserva­tives.
This frankfurter must con­tain
n6 more thari 30% fat and have
no more than 10% water added. In
addition, it must be prepared under
sanitary conditions and be under
Federal inspection. As such, the
product described is of relatively
high quality and as long as it is
labeled from a federally inspected
plant, there is assurance that the
product is adequate to most needs.
You can order Standards of Identity
from the Superintendent of Documents,
U.S. Government Printing Office,
Washington, D.C . 20402. The follow­ing
tells you what to order for stan­dards
on different foods.
1. USDA- Meat and Poultry Products
Code of Federal Regulations -
Volume 9
Animals and Animal Products , Re­vised
12/21/76
Part 319 - Meat
Part 381-155 Poultry
Request entire Volume 9 and look
up the above parts for applicable
information. This document is
revised annually with the newest
volume being available just after
the first of the new year.
Cost: $4.50
2. Food and Drug Administration -
Standards of Identity for all
foods otner tnan Meats and
Poultry.
Code of Federal Regulations (CFR)
21 Food and Drug
Parts 100-199, Revised 4/l/77
Cost: $4.75
PREPARING SPECIFICATIONS
In preparing a specification, con­sider
whether it is:
l. Enforceable. The specification
should enable the buyer to em­ploy
a practical acceptance pro­cedure
to ensure all terms of the
specifications are met. Speci­fics
in the specification should
be designed to be easily moni­tored.
2. Tailored to meet menu require­ments.
Don't use a costlier pro­duct
when a less costly product
will serve as well or better.
3. Complete. Always include a con­dition
statement as part of the
specification. Condition refers
to environmental considerations
affecting the product, including
temperature, humidity, maturity of
fresh produce, damaged packaging,
mechanically damaged product, de­cay/
spoilage/insect infestation
when not included in official Fed­eral
or State grades or specifica­tions.
4. Written in understandable langu­age.
The information should be
clea~ and simple but sufficiently
prec1se so that you and the ven­dor
have an absolute meeting of
the minds.
9
5. Commerically available. This al­lows
you to obtain the largest
number of competitive offerings.
6. Superfluous to your need, thus
raising your costs. Restrictions on
packaging, grades, sizing, and
the adoption of special consider­ations
that increase the costs
without providing corresponding
benefits in terms of value or ac­ceptability
should be avoided.
Implementing the above criteria re­quires
a combination of knowledge
gained from resource publications,
use of ventor experience, and the
overall experience of those who make
the procurement decisions.
Application of the above criteria
will vary according to the size of
procurement and the ability to im­plement
effective acceptance and
rejection procedures.
Pre-prepared or published specifica­tions
and buying tips should be
viewed as examples that may or may
not be applicable to your situation.
If they fit each of the criteria you
require, use them. If not, tailor
them to better fit your need.
A determination should be made of
identifying the 10-20 most used food
items. Those foods will generally
account for two-thirds or more (gen­erally
65-75%) of your total food
dollar. By focusing in on the de­velopment
of specifications on these
foods and tailoring them to meet all
the criteria set forth above, you
will have gone a long way toward
improving your procurement activity.
An excellent setting for tailoring
specifications and getting uniformi­ty
is at workshops.
Well-written specifications lower
food cost while poorly written or
nonexistent ones raise it. Using
specifications also keeps every­thing
on a comparable basis, assures
that you are getting what you want,
and represents a meeting of the
minds between the buyer and the
seller.
FEDERAL SPECIFICATIONS
In developing your specifications,
you may want to consider specifica­tions
developed by the Federal
Government. Although they may re­quire
tailoring to fit your parti­cular
needs, Federal specifications
do have the following attributes:
(1) they are widely used and known;
(2) they adequately describe the
product so that the buyer and seller
will know what is to be delivered;
and (3) they allow for an acceptance
procedure through the USDA Commodity
Division to assure compliance with
the specifications in the purchase
order. The biggest drawback is
that they may not fit y0ur need
precisely.
Purchasers of food should get acquain­ted
with Federal specifications for
the foods Federal agencies procure.
Foods having a Federal specification
are listed in the 11 Federal Supply Ca­talog11
(FSC) Group 89, Subsistence.
The specifications themselves can be
obtained from the Deputy Administra­tor
for Commodity Services, Food
Safety and Quality Service (FSQS),
USDA, Washington, D.C. 20250.
The Office of the Deputy Administra­tor
for Commodity Services or the
Director of Information, FSQS, USDA,
can also provide information about
the various commodity acceptance and
grading services available, including
a fact sheet (FSQS-8, June 1978) on
food acceptance services. In addi­tion,
these offices can supply local
food service operators with the name,
address, and telephone number of the
appropriate local FSQS office. There
are separate inspection and grading
offices for dairy products, fresh
fruits and vegetables, processed
fruits and vegetables, meat and meat
products, poultry and eggs, and grain
products. Supervisors in the local
offices can be helpful in procure­ment
workshops by exp.laining how
their acceptance service operates and
how these services can be utilized.
10
FOOD PRICE INFORMATION
The following list shows sources of
information on food prices that may
be useful in your school food service.
This list is divided into 11 Government 11
and 11 Private 11 sources. The name of
the price source and address of the
organization is given. The cost of
the service is shown as are geogra~
phical areas covered and types of
foods priced. The list also gives
bases for the prices, such as quota­tions
from processor, distributor,
wholesaler~ jobber, or retailer;
quantities of carlot/trucklot, joblot
(under 25 cases); or transportation
free on board (FOB) at the source or
delivered.
This list does not include two
primary sources of information about
the food market that should be famil­iar
tools to every food buyer. These
are local newspapers with weekly ads
for food and retail ptite~ in l6tal
grocery stores and published supplier
price lists. Newspapers also provide
timely information about plentiful
foods and general trends of food
prices.
These price sources are tools for
quantity food purchasing. The food
price source information is not a
substitute for obtaining price and
supply information from local vendors
and other locally based institutional
buyers. Purchasing agents should
keep lines of communications open
with other food purchasing agents in
the community.
At the end of this section, the price
sources are indexed for specific foods.
*Any omission of a price source in
unintentional. Please notify the
appropriate regional office listed
in the introduction of additional
sources not included.
11
,
GOVERNMENT PRICE SOURCE
Name of Publication:
Ava i1 a b 1 e From :
Published:
Cost:
Geographical Area:
Types of Food Priced:
Prices Based On:
Useful for School System:
(Size)
Applicable for Formula Purchasing:
Information Provided:
12
BEAN MARKET NEWS
California Dept . of Food and
Agriculture
Bureau of Market News
2321 West Washington Street
Stockton , CA 95203
Phone: (208) 466-0881
and
Market News Branch
Agricultural Marketing Service, USDA
Livestock, Poultry, Grain, and Seed
Division
721 - 19th Street, Room 373
Denver, CO 80202
Phone: (303) 837-4161
Weekly
Free
Midwest and Western U.S.
Beans, lentils and peas - dried
FOB Warehouse
Carlot/Trucklot
Medium
Large
Yes
Two different newsletters are pub­lished.
The Rocky Mountain edition
is published in Colorado, the Stock ­ton
edition in California. Both
give market reports and prices for a
wide variety of dry beans and peas.
The Stockton news gives detailed
information about the California
market.
Name of Publication:
Available from:
Published:
Cost:
Geographical Area:
Types of Food Priced:
Prices Based on:
Useful for School System:
{Size)
Applicable for Formula Purchasing:
Information Provided:
, 3
DAIRY MARKET NEWS
Agricultural Marketing Service
Federal State Market News Service
801 West Badger Road
Madison, WI 53713
Phone: AC 608-252-5254
Weekly, mailed on Friday
Free
Nationwide-Eastern
Central
Western
Butter
Cheese-Cheddar, American
Nonfat milk, fluid milk (base
price change announced monthly)
FOB Carlot/Trucklot
Large
Yes
Publication provides an advanced
notice each month for the fresh
fluid milk base price for Class I
milk. It provides a method for
showing monthly price changes over­time.
Cheese prices are for large
wholesale units, i.e. blocks,
loaves (America) wheels, etc.
Prices for butter and cheese are
primarily for processors and traders.
This publication is most useful for
pricing fresh whole fluid milk.
Name of Publication:
Available From:
Published:
Cost:
Geographical Area:
Types of Food Priced:
Prices Based On:
Useful for School System:
(Size)
Applicable for Formula Purchasing:
Information Provided:
14
ESTIMATED RETAIL FOOD PRICES BY CITY
Bureau of Labor Statistics
U. S. Department of Labor
Washington, DC 20212
Phone (202) 523-1532
Monthly
Free
Nationwide
Cereals and Bakery Products
Meats, Poultry, Fish
Prepared and Partially Prepared
Foods
Dairy Products
Fresh Fruits and Vegetables
Processed Fruits and Vegetables
Eggs
Fats and Oils
Sugars and Sweets
Nonalcoholic Beverage
Retail grocery stores
Small
Medium
Large
No
This leaflet shows estimated retail
prices for 94 foods in each of 24
cities in the United States.
Name of Publication:
Available From:
Published:
Cost:
Geographical Area:
Types of Food Priced:
Prices Based On:
Useful for School System:
(Size)
Applicable for Formula Purchasing:
Information Provided:
15
FISHERY MARKET NEWS SERVICE
National Marine Fisheries Service
U.S. Department of Commerce
Washington, DC 20235
Weekly
3 weekly reports
1 report weekly - $15/per year
3 reports weekly - $35/per year
For fish markets in:
Massachusetts
New York
Louisiana
Ca 1 iforni a
Fish
Other Seafoods
Washington
Maryland
Virginia
Illinois
FOB Wholesaler
Jobbers per 1,000 lbs.
Small
Medium
Large
Yes
Current information on prices,
market conditions, production, im­ports,
exports, cold storage
holdings, and market receipts of
fishery products in major fish
trading centers of the United States.
Name of Publication:
Available From:
Published:
Cost:
Geographical Area:
Types of Food Priced:
Prices Based On:
Useful for School System:
Applicable for Formula Purchasing:
Information Provided:
FOOD MARKETING ALERT
Information Division
Agricultural Marketing Service
U.S. Department of Agriculture
Washington, DC 20250
Monthly, with periodic Food
Marketing Alert "Specials"
Free
Nationwide
Meat
Poultry and Eggs
Milk and Dairy Products
Fruits and Vegetables
Grains and Legumes
Estimated livestock and crop pre­dictions
from USDA's Economics,
Statistics, and Cooperativs Service.
Market news reports and other data
collected by the Agricultural
Marketing Service.
Small
Medium
Large
No
The monthly issuance gives expected
supplies of foods within above cate­gories
for the coming month; tells
whether expected to be plentiful,
adequate, or light. Compares current
supplies (in percentages) to supplies
for same month a year ago, and to
average supplies for the same month
of the last 3 years.
16
•
•
Name of Publication:
Available From:
Published:
Cost :
Geographical Area:
Types of Food Priced:
Prices Based On:
Useful for School System:
(Size)
Applicable for Formula Purchasing:
Information Provided:
17
The special issues give additional
price and supply background on food
commodities that are so abundant that
producers may have difficulty
marketing them. The price and supply
information is better adapted to
menu and procurement planning than
as an indicator of current price.
FOOD SAFETY AND QUALITY SERVICE FOOD
PURCHASES
Food Safety and Quality Service
U.S. Department of Agriculture
Washington, DC 20250
Weekly
Free
Poultry - Ready to Cook and Frozen
Vegetables - Canned and Frozen
Fruits - Canned and Frozen
Dairy Products
Meats (including ground beef)
FOB Processors Shipping Points or
Elestinations
Carlot/Truckload
Medium
Large
No
Summary information on USDA current
and cumulative purchases. Shows
prices paid and names and locations
of firms from which purchases were
made.
Name of Publication:
Available From:
Published:
Cost:
Geographical Area:
Types of Food Priced:
Prices Based On:
Useful for School System:
(Size)
Applicable for Formula Purchasing:
Information Provided:
18
MARKET NEWS (LIVESTOCK, MEAT, AND WOOL)
Agricultural Marketing Service
U.S. Department of Agriculture
Washington, DC 20250
Weekly
Free
Nationwide
Beef
Pork
Lamb
Veal
FOB Processor
Carlot/Trucklot
Small
Medium
Large
Yes
Price trends and slaughter demands of
meat and livestock. Gives current
wholesale prices of primal cuts of
red meats. Subscriber should watch
for specialized information in each
issue, i.e., comparison of yields
for retail cuts, sales value, and
difference of retail value between
yield grades. For small schools the
price lists and price trends may be
useful for menu planning.
•
Name of Publication:
Available From:
Published:
Cost:
Geographical Area:
Types of Food Priced:
Prices Based On:
Useful for School System:
(Size)
19
MARKET NEWS SERVICE ON FRUITS,
VEGETABLES~ ORNAMENTALS, AND SPECIALTY
CROPS (Market Bulletin No. 61)
Agricultural Marketing Service
U.S. Department of Agriculture
Washington, DC 20250
Daily - Monday through Friday, except
holidays
Free
Nationwide in the following 22
terminals. Write to U.S. Department
of Agriculture for address of terminal
closest to you. Reports are published
for the following cities:
Atlanta, GA
Baltimore, MD
Boston, MA
Buffalo, NY
Cincinnati, OH
Columbia, SC
Dallas, TX
Denver, CO
Detroit, MI
Houston, TX
Kansas City, MO
Los Angeles, CA
Louisville, KY
Miami, FL
Minneapolis, MN
New Orleans, LA
New York, NY
Philadelphia, PA
Pittsburg, PA
St. Louis, MO
San Antonio, TX
San Francisco, CA
Fresh Fruits, Vegetables, and Nuts
FOB Terminal
Wholesale/less than Carload/Truckload
Small
Medium
Large
Applicable for Formula Purchasing: Yes
Information Provided:
Name of Publication:
Available From:
Published:
Cost:
Geographical Area:
Types of Food Priced:
Priced Based On:
Useful for School System:
(Size)
Applicable for Formula Purchasing:
Information Provided:
Shows source of shipments of fresh
fruits and vegetables reaching the
markets. Also gives prices, quality,
and varieties of fresh fruits and
vegetables.
POULTRY MARKET NEWS - 11 EGG REPORT 11
AND 11 POULTRY REPORT 11
Agricultural Marketing Service
U.S. Department of Agriculture
Washington, DC 20250
Daily - Monday through Friday, except
holidays
Free
Nationwide
Poultry
Eggs
FOB Various Levels of Trade
Carlot/Trucklot
Less than carlot
Small
Medium
Large
Yes
Daily prices on eggs and poultry.
Also price and demand trends for
poultry and eggs. For small schools
the price lists and price trends may
be useful for menu planning.
20
•
Name of Publication:
Available From:
Published:
Cost:
Geographical Area:
Types of Food Priced:
Prices Based On:
Useful for School System:
(Size)
Applicable for Formula Purchasing:
21
WHOLESALE PRICES AND PRICE INDEXES
U.S. Department of Labor
Bureau of Labor Statistics
Superintendent of Documents
US Government Printing Office
Washington, DC 20402
Monthly
Subscription Price
$16 a year domestic (includes one
supplement)
$4 additional foreign
Single copy $1 .80
Supplement $2.70
Nationwide
Fruits and Vegetables - Fresh, Frozen,
Canned, Dried
Grains and Grain Products
Eggs - Fresh and Processed
Fluid Milk and Dairy Products
Meats, Poultry, and Fish - Fresh and
Processed
Sugar
Fats and Oils
Jams, Jellies, and Preserves
Condiments
Charged by wholesalers at their place
of business
Small
Medium
Large
No
Information Provided:
PRIVATE PRICE SOURCE
Name of Publication:
Available From:
Published:
Cost:
Geographical Area:
Types of Food Priced:
Prices Based On:
Useful for School System:
(Size)
Applicable for Formula Purchasing:
Prices are not necessarily related to
grades or quality, but to supply and
demand.
Information is 2 months behind. You
will get November prices in January,
January prices in March, etc.
Table 6 - First 6 1/2 pages provide
wholesale prices, along with a price
i~dex for the current month and each of
the 2 preceding months. This provides
a short-term price trend. Prices at
wholesale are generally reflected and
retail from 2 weeks to 2 months after
they are established.
DAILY MARKET AND NEWS SERVICE
(
11 The Yellow Sheet 11
)
The National Provisioner
15 West Huron Street
Chicago, IL 60610
5 days weekly
$160.00 (by mail) yearly
Nationwide
Fresh and Frozen
Beef Lamb
Pork Veal
FOB Distributor
Carlot
Large
Yes
22
Information Provided:
Name of Publication:
Available From:
Published:
Cost:
Geographical Area:
Types of Food Priced:
Prices Based On:
Useful for School System:
(Size)
Applicable for Formula Purchasing:
Information Provided:
23
Current meat price information.
Available for larger schools in a
position to purchase in carlot
quantities. (See 11 Green Sheet 11 for
food prices of quantities less than
carlots.)
FOOD PRODUCTION MANAGEMENT
Food Production Management
2619 Maryland Avenue
Baltimore, MD 21218
Phone (301) 467-3338
Monthly
$8.00 per year
Nationwide
Fruits, canned
Vegetables, canned
FOB Processor
Carlot/Trucklot
Small
Medium
Large
Yes
A publication of the canning, glass
packing and frozen food industry.
Indicates supply of packed foods and
prices per case of canned foods.
Name of Publication:
Available From:
Published:
Cost:
Geographical Area:
Types of Food Priced:
Prices Based On:
Useful for School System:
(Size)
Applicable for Formula Purchasing:
Information Provided:
HOTEL - RESTAURANT - INSTITUTIONAL
MEAT SERVICE REPORT C'The Green Sheet")
National Provisioner, Inc .
15 West Huron Street
Chicago, IL 60610
Phone (312) 944-3380
Weekly
$58.50 yearly
17.50 quarterly
1 .25 each for back issues
Nationwide
Fresh
All Red Meats (Beef, Pork, Lamb, Veal)
Miscellaneous and Speciality Products
(Ground Beef, Liver, Corned Beef,
Dried Beef)
Processed products
(Frankfurter, Canned Ham, Bacon)
FOB Term ina 1
Small
Medium
Large
24
Yes
Provides a practical price series
related to USDA Institutional Meat
Purchase Specifications (IMPS) for
products normally used by schools on
a delivered basis. A widely used
pricing instrument in the institutional
meat trade, especially for the less
than carlot or trucklot purchasing.
Provides a weekly view of market con­ditions
and short-term market trends
as well as current events affecting
the institutional meat trade.
"'·
Name of Publication:
Available From:
Published:
Cost:
Geographical Area:
Types of Food Prices:
Price Based On:
Useful for School System:
(Size)
Applicable for Formula Purchasing:
Information Provided:
25
JOURNAL OF COMMERCE AND COMMERCIAL
Twin Coast Newspaper, Inc.
110 Wa 11 Street
New York, NY 10005
Daily, except on Saturdays, Sundays,
and Holidays
Subscription for l year $80
6 mos. $46
Nationwide
Dairy Products
Poultry - Fresh and Frozen
Dried Beans and Peas
She 11 ed Nuts
Oils and Fats
Spices
Meats - Fresh and Frozen
Potatoes - Fresh and Processed
FOB Origin
Medium
Large
Yes
Contain articles related to commodity
and food prices. Good sources of
information related to food supply and
price trends. Applicable ''-spot
commodities .. feature, quotes prices on
a daily schedule for specific foods
on different days of the week.
Name of Publication:
Available From:
Published:
Cost:
Geographical Area:
Types of Food Priced:
Prices Based on:
Useful for School System:
(Size)
Applicable for Formula Purchasing:
Information Provided:
THE MEAT SHEET
Meat Sheet, Inc.
643 South Route 83
Elmhurst, IL 60126
Phone (312) 274-4545
5 days weekly
$250 (by mail) yearly
Nationwide
Fresh and Frozen
Beef, Pork
Lamb, Veal
FOB - Trucklot/Carlot
Large
Yes
This publication provides trade prices
on a packer-to-packer level as well as
prices to large carlot buyers including
meat brokers, chain stores, and large ·
distributors. Useful for price trends
and purchases of carlot quantities
of meat.
26
Name of Publication:
Available From:
Published:
Cost:
Geographical Area:
Types of Food Priced:
Prices Based On:
Useful for School System:
(Size)
Applicable for Formula Purchasing:
NATIONAL PRICE DIGEST ( 11 The Biddle
Report 11
)
Biddle Purchasing Co.
225 Broadway
New York, NY 10008
Phone: (202) 964-0500
Biddle Purchasing Co.
10 So. Riverside Plaza
Chicago, IL 60606
Phone (312) 782-3030
Biddle Purchasing Co.
260 California Street
San Francisco, CA 94111
Phone: ( 415) 362-7373
Monthly
Ask your State School Food Service
Director to write Biddle Company
about cost of service. Cost may
vary. Negotiate cost on consolidated
bases.
Nationwide
Fruits and Vegetables - Canned,
Frozen, Dried
Seafood - Canned, Frozen, Dried
Dairy products Canned, Dried
Cheese Fats and Oils
Cereals Seasonings
Pastas Flavorings
Juices Condiments
Jams and Jellies Nuts
FOB Distributor
Joblot (under 25 cases)
Small
Medium
Large
Yes
27
Information Provided:
Name of Publication:
Available From:
Published:
Cost:
Geographical Area:
Types of Food Priced:
Prices Based On:
Useful for School System:
(Size)
Applicable for Formula Purchasing:
Information Provided:
Biddle is a vendor but they also make
price list available. Prices are
representative of those that can be
expected from a vendor. Bulletin
provides prices for a wide assortment
of products by grade, style or pack,
and size. Gives shipping weights and
canning season for a number of
seasonally packed products. Large
grocery wholesalers and large users
of grocery products utilize this
report.
THE NATIONAL PROVISIONER
The National Provisioner
15 W. Huron Street
Chicago, IL 60610
Phone: (312) 944-3380
Weekly
$9 per year
Nationwide
Fresh and frozen
Beef Lamb
Pork Veal Fats and Margarine
FOB Midwest Processor
Carlot - price per pound
Medium
Large
Yes
Meat and meat industry related articles
of interest plus the daily price in­formation
on meat for the previous
week. Provides wholesale prices for
primal cuts of meat. Not as appli­cable
for formula purchasing as the
28 11 Green Sheet. ..
Name of Publication:
Available From:
Published:
Cost:
Geographical Area:
Types of Food Priced:
Prices Based On:
Useful for School System:
(Size) /
Applicable for Formula Purchasing:
Information Provided:
•
PACIFIC FRUIT NEWS
Pacific Fruit News
P.O. Box 6266
330 South Third Street
San Jose~ CA 95150
Phone: (408) 293-3329
Weekly
$10 per year
Pacific Coast
Fruits and Vegetables - Canned and dried
Nuts
FOB Processor
Carlot/Trucklot/Joblot (under 25 cases)
Small
Medium
Large
Yes
Pacific coast prices of fruits and
vegetables. Also includes a production
forecast for processed fruits and
vegetables. More geographically
limited, but a more widely used price
source by most elements of the food
trade. A large number of canned
fruits and vegetables are processed
on the west coast .
29
Name of Publication:
Available From:
Published:
Cost:
Geographical Area:
Types of Food Priced:
Prices Based On:
Useful for School System:
(Size)
Applicable for Formula Purchasing:
Information Provided:
30
PRODUCERs• PRICE -- CURRENT
(The 11 Drner Barry Report 11 )
Urner Barry Publications, Inc.
P.O. Box 389
Toms River, NJ 08753
Phone: 201 240-5330
Daily, except Saturdays, Sundays,
and holidays
First Class
$125 daily/year
$82 one day/week
Second Class
$87 daily/year
$78 one day/week
Nationwide (N.E . . area used as a
basing point)
Beef and Pork
Dairy Products
Fresh Fruits and Vegetables
Ready-to-cook poultry
Cheese
Eggs - fresh, frozen, dried
Fats and Oils
Nuts and dried beans and peas
Processor wholesale values
Carlot/Trucklot
Medium
Large
Yes
Prices on a great variety of foods
that would be used by schools. Widely
used pricing source throughout the
food industry. Especially useful for
poultry, eggs, and dairy products.
Most medium and small schools would
find the Urner-Barry Restaurant Buyers
Guide more appropriate.
,•
Name of Publication:
Available From:
Published:
Cost :
Geographical Area:
Prices Based On:
Types of Food Priced:
Information Provided:
31
RESTAURANT BUYERS GUIDE
Urner Barry Publications. Inc .
P.O. Box 389
Toms River, NJ 08753
Phone -- 201 240-5330
212 349-0240
Weekly - Every Friday
$45
New York, New Jersey, Pennsylvania,
and Connecticut.
Also a west coast publication.
Delivery and prompt payment -- ship­ment
outside normal delivery may
require extra freight charges.
Beef)
Lamb)
Veal) Based on IMPS.
Pork) (See definition) ·
Shell Eggs Chicken
Liquid Eggs Fresh Vegetables \
Butter Fresh Fruit
Cheese Frozen Vegetables
Turkey Frozen Fruit
· All types of poultry
A widely used price report on perish­able
food prices for restaurants,
hotels, schools, and other institu­tions.
The report is based on sales
or prices by purveyors to institutions
in the Northeast area and the west
coast. Meat purveyors may charge extra
for aging, cryovacing (type of pack­aging),
individual packaging, pinning,
and freezing.
Name of Publication:
Available From:
Published:
Cost:
Geographical Atea:
Types of Food Priced:
Prices Based On:
Useful for School System:
(Size)
Applicable for Formula Purchasing:
Information Provided:
32
REPORT ON FOOD MARKETS
American Institute of Food
Distributors. Inc.
P.O. Box 523
Fairlawn, NJ 07410
Phone: 201 791-5570
Weekly
$125/per year for Institute Newsletter
$15/per year for associates
Nationwide
Fruits and Vegetables - Canned,
frozen, dried
Fish, Canned and Frozen
Milk, Canned
Meats, Canned
Poultry
Eggs
Butter
Cheese
FOB Processor
Carlot/Trucklot
Medium
Large
Yes
Rice
Gives current processor prices and
includes general information about
the food market. One of the most
widely used pricing and supply
sources of the food industry.
Name of Publication:
Available from:
Published:
Cost:
33
WALL STREET JOURNAL
Refer to: "Cash Prices" and Future
Prices''
Wall Street Journal
11501 Columbia Pike
Silver Spring, MD 20907
Phone: (301} 622-2900
512 Shatto place
Los Angeles, CA 90020
22 Coitlandt Street
New York, NY 10007
200 Burnett Road
Chicopee, MA 01021
1325 Lakeside Avenue
Cleveland, OH 41414
1233 Regal Row
Dallas, TX 75247
915 Hemlock
Highland, IL 62249
2301 Presidents Drive
Orlando, FL 32809
1701 Page Mill Road
Palo Alto, CA 94304
6900 Jurupa Avenue
Riverside, CA 92506
P.O. Box 300
Prinston, NJ 08540
Daily
Newstand Price:
25¢/per day
$65/per year
Subscription Price:
$45/per year
$23.40/per
6 months
Geographical Area:
Types of Food Priced:
Prices Based On:
Useful for School System:
(Size)
Applicable for Formula Purchasing:
Information Provided:
New York and Midwest
Potatoes
Flour
Coffee
Cocoa
Sugar
Orange Juice
Pork (Hams, Loins, Bellies)
Eggs
Beef (including Carcass)
Vegetable Oils
Broilers
Grain
FOB Processor, Distributor Carlot
Small
Medium
Large
No
Future price section indicates cur­rent
prices and anticipates future .
prices. Cash price section indicates
current and past prices. Cash price
section provides yesterday's price
along with the price a year earlier
at a designated market. The narra­tive
section on the commodity page
provides an insight to current
trends and their relationships to
price changes. This indicates what
price a school lunch manager may be
paying 2 weeks to 2 months hence.
The school lunch manager can make
menu adjustments depending on prices
and supply.
34
A List of Foods Showing Sources
of Price Information
In the following list, the numbers at
the right identify price sources
according to the "Index to Price
Sources" at the bottom of this page.
For example, information about prices
of beef is given in Government Sources
numbers 3,5,6, and 9 and in Private
Sources numbers 10,12,13,15,17,18,19,
and 20.
FOODS
Beef- Canned, fresh, frozen, dehydrated ,,,,
Cereals- Breakfast type .............•......
Cheese - (including cheese foods and spreads)
Condiments - Catsup, chile sauce, mustard,
etc. . ..................................... .
Dairy products ............................. .
Dried Beans and Peas ....................... .
Eggs- Fresh, dried, frozen ................ .
Fats- Vegetable shortening, oils, lard .... .
Fruits- Canned, fresh, frozen, dehydrated ..
Grains- Bulgar, cornmeal, oats, rice, etc ..
Juices- Canned, fresh, frozen, dehydrated ..
Lamb .....•............•...•.......... , ... , ..
Margarine and Butter ....................... .
Miscellaneous - Cake mixes, cocoa, gelatin,
etc. . ..................................... .
Nuts and Peanut Butter ..................... .
Pastas - Macaroni, spaghetti, etc. . ........ .
Paul ty ............................•.........
Pork ....................................... .
Processed and variety meats - Balogna,
frankfurters, sausage, luncheon meat, etc.
Seafood - Canned, fresh, frozen, dehydrated .
Seasonings, Dried - Celery, chive, parsley,
etc. . ..................................... .
Sugar, Syrups, Jams, etc ................... .
Vegetables - Canned, fresh, frozen,
dehydrated , ................ , , ...... , . , , .. , ,
Vea 1 ...............•........... , . · · · , · · · · · · ·
35
PRICE SOURCE NUMBER
3,5,6,9,10,12,13,15,17,18,19,20
3' 14
2,14,17,18,19
9' 14
2,3,5,9,13,17,19
1,13,17
3,8,9,17,18,19,20
3,9,13,14,15,17,20
3,5,7 ,9, 11 '16, 17' 18,19
. 9,13,14.19,20
14,20
5,6,9,10,12,13,15,18,19
15,18,19
13 '14 '19 '20
7,13,14,16,17,19
14
3,5,8,9,13,17,18,19,20
5,6,9,10,12,13,15,17,18,19,20
12 '14
3,4,9, 14,19
13,14,19
3' 9' 13 '14 '20 '
3' 5 '7 '9 '11 '13' 16 '17 '18' 19 '20
5,6,9,10,12,13,15,18,19
INDEX TO PRICE SOURCES
Government Sources
1. Bean Market News
2. Dairy Market News
3. Estimated Retail Food Prices By
City
4. Fishery Market News Service
5. Food Safety and Quality Service
Food Purchases
6. Market News (Livestock, Meat
and Wool)
7. Market News Service on Fruits,
Vegetables, Ornamentals and
Specialty Crops
8. Paul try Market News
9. Wholesale Prices and Price
Indexes
36
Private Sources
10 . Daily Market and News Service
11. Food Production Management
12. Hotel - Restaurant - Insti­tutional
Meat Service Report
13. Journal of Commerce and
Commercial
14. National Price Digest
15. The National Provisioner
16 . Pacific Fruit News
17. Producer's Price- Current
18. Restaurant Buyers Guide
19. Report on Food Markets
20. Wall Street Journa 1
REFERENCES FOR FOOD PROCUREMENT AND SCHOOL FOOD SERVICES
The following materials provide specialized information related to purchasing
foods, such as USDA and FDA regulations governing the food industry, standards
for canned and frozen foods, quality characteristics of fresh fruits and vege­tables,
names and addresses of food processors, and a guide to procedures for
establishing a food purchasing system for school food service. For the
school food purchasing agent interested in reducing food costs, the materials
provide tools for improving efficiency in food procurement.
37
Name of Publication:
Avail ab 1 e From:
Cost:
Information Provided:
Name of Publication:
Available:
Cost:
Information Provided:
REFERENCE
THE ALMANAC OF THE CANNING, FREEZING,
PRESERVING INDUSTRIES
Edward E. Judge and Sons, Inc.
79 Broad Street
Westminister, MD 21157
$18 per almanac for 1 year
Technical information pertaining to
U.S. Department of Agriculture (USDA)
and Food and Drug Administration (FDA)
rules and regulations governing food
industry, including:
. USDA Quality Grades
Standards for Canned and Frozen Foods
. FDA Standards of Identity, Quality,
and Fi 11
. FDA regulations on
- Food Labeling and Packaging
- Food Additives
USDA and FDA Sanitation Requirements
Addresses for USDA Inspection Service
Addresses of FDA Offices and Inspec­tors
This is an excellent resource book,
especially in understanding the tech­nical
aspects of the food industry,
i.e. grading score sheets, legislature,
and rules.
THE BUYING GUIDE FOR FRUITS, VEGE­TABLES
AND NUTS (The 11 Blue Goose 11
)
Educational Department
Blue Goose Inc.
Post Office Box 46
Fullerton, CA 92632
$2.25 per copy, payment must accompany
the order.
Describes quality characheristics of a
38
Name of Publication:
Available From:
Cost:
Information Provided:
wide variety of fresh fruits and vege­tables.
Many are illustrated color
photography. The book also includes
standards, storage tips, nutritional
values, and suggestions for use.
Tables are given for the "Recommended
Daily Dietary Allowances 11 of the
National Research Council, and for
fruits, vegetables, and nuts, 11 Com­position
of Foods, 100 Grams (3-~ oz)
Edible Portion. 11
COOPERATIVE BRANDS AND PROCESSED FOODS
USDA/FCS Information No. 110
Economics,Statistics, and Cooperative
Service
U.S. Department of Agriculture
Washington, DC 20250
Attention: Mrs. Marjorie Christie
No cost to schools for a limited num­ber
of copies or if State intends to
redistribute copies.
This 47 page publication provides a
listing of cooperatives, including
their address, foods they sell and
brand names. The booklet cross in­dexes
the products with the coopera­tives
enabling the reader to deter­mine
the sources for individual foods.
The directory has limitations because
(1) participation was voluntary and
some co-ops chose not to be included;
(2) some co-ops marketing brand name
products may have inadvertently been
excluded; (3) perishable food sources
like fluid milk, fresh meat, shell
eggs and fresh fruits and vegetables
co-ops were not included, and (4)
not all variations of processed pro-
39
Name of Publication:
Available From:
Cost:
Information )Provided:
40
ducts -lproduct st~le, can size, and
specialty products} were included.
However, the publication is an excel­lent
directory for determining poten­tial
food sources.
COST OF FOODS PURCHASED BY USDA AND
LOCAL SCHOOL SYSTEMS, 1973-74 {ERS No.
592)
Economics, Statistics, and Cooperative
Service
U.S. Department of Agriculture
Washington, DC 20250
Free
Gives results of a study to determine
the cost of foods purchased in the
open market ·during the 1973-74 school
year at prices paid by: (1) the U.S.
Department of Agriculture, (2) the
largest school system, (3) the small­est
system and (4) all school systems
combined. Identifies foods and often
used in the schools.
Name of Publication:
Available From:
Cost:
Information Provided:
Name of Publication:
Available From:
41
THE DIRECTORY OF THE CANNING, FREEZING,
PRESERVING INDUSTRIES
Edward E. Judge & Sons, Inc.
P.O. Box 856
Westminster, MD 21157
$45 for book published biannually
Brand names and container sizes
Alphabetical list - names and
addresses of food processors show­ing
foods packed, volume, brand
names, and container sizes.
Geographical list- names and addresses
of food processors listed alpha­betically
by State .
Product list- foods packed with
alphabetical listing of processors
under each food.
Brand list- brands of foods listed
alphabetically showing names of
food packers.
FOOD BUYING GUIDE FOR TYPE A SCHOOL
LUNCHES (PA-270) -
(1) Food and Nutrition Service
U.S. Department of Agriculture
Washington, DC 20250
or
(2) Superintendent of Documents
U.S. Government Printing Office
Washington, DC 20402
Cost:
Information Provided:
Name of Publication:
Available From:
Cost:
Information Provided:
42
(1) One copy free to schools par­ticipating
in National Child
Nutrition Program, (Order from
Food and Nutrition Service.)
{2) $2.25
(Order from Superintendent of
Documents)
Methods for planning and calculating
quantities of food · to be purchased
and used by schools.
Tables are based on 100 portions of
serving sizes for 10 to 12-year-old
boy or girl.
Methods for calculating quantity of
food needed for preparing a specified
number of servings.
FOOD FISH MARKET REVIEW AND OUTLOOK
U.S. Department of Commerce
National Oceanic and Atmospheric
Administration
National Marine Fisheries Service
Washington, DC 20235
Free
Information on supplies, demand, and
prices of seafood, 1974 through 1976.
This is an excellent source for under­standing
seasonality of seafood
supplies. It also provides useful
comparisons of prices and potential
supplies for menu planning.
Name of Publication:
Available From:
Cost:
Information Provided:
GUIDE FOR PRECOSTING FOOD FOR SCHOOL
FOOD SERVICE (PA -1185)
(1) Food and Nutrition Service
U.S. Department of Agriculture
Washington, DC 20250
or
(2) Superintendent of Documents
U.S. Government Printing Office
Washington, DC 20402
(1) One copy free to schools partici­pating
in National Child Nutrition
Programs. (Order from Food and
Nutrition Service.)
(2) $1.60
(Order from Supe~intendent of
Documents.)
Menu planning tips and procedures
specifically related to precosting
of meals.
43
Instructions for -
(1)
( 2)
(3)
(4)
precosting recipes and individual
food items
estimating costs of USCA donated
foods and of condiments, seasonings,
and leavenings
precosting the complete menu and
menus with choice
selecting economical foods
Tables are also provided showing:
(1) decimal equivalent in parts of 1
pound, ., cup, or gallon for
different units.
(2) cost of one serving of food from
purchase units providing 11.5 to
240 servings per unit.
Name of Publication:
Available From:
Cost:
Information Provided:
44
FOOD PURCHASING POINTERS FOR SCHOOL
FOOD SERVICE (PA~ll60)
{1) Food and Nutrition Service
U.S. Department of Agriculture
Washington, DC 20250
or
(2) Superintendent of Documents
U.S. Government Printing Office
Washington, DC 20402
(1) One copy free to schools partici­pating
in National Child Nutrition
Programs. (Order from Food and
Nutrition Service.)
(2) $3
(Order from Superintendent of
Documents.)
Procedures for establishing a food
purchasing system, information for
purchasing food in quantity. This is
a U5eful publication that provides
helpful tips for purchasing food.
The publication is in a loose-leaf
form that may be placed in a binder
for easy reference.
•
Name of Publication:
Available From:
Cost:
Information Provided:
Name of Publication:
Available From:
Cost:
Information Provided:
45
MEAT BUYERS GUIDE
National Association of Meat Purveyors
252 West Ina Road
Tucson, AZ 85704
$15/per copy
Provides specifications almost
identical to the USDA approved
institutional Meat Purchase Specifi­cations
(IMPS) for fresh beef, fresh
lamb and mutton, fresh veal and calf,
and fresh pork . In addition to general
specifications for the meat buyer,
skeletal charts and standard primal
cuts are shown by color photography.
QUANTITY RECIPIES FOR TYPE A SCHOOL
LUNCHES (PA-631)
(1) Food and Nutrition Service
U.S. Department of Agriculture
Washington, DC 20250
or
(2) Superintendent of Documents
U.S. Government Printing Office
Washington, DC 20402
(1) One copy free to schools partici­pating
in National Child Nutrition
Programs (Order from Food and
Nutrition Service.)
• ..
(2) $14.05
(Order from Superintendent of Documents.)
This card file provides standardized
recipes, variations of recipes, and in­structions
for preparing over 500 menu
items that might be served in Type A
school lunches. Portion size and contri­butions
a portion makes to the Type A
requirements are given for most recipes.
Many of the recipes provide guides to
amount to purchase for preparation of the
food.
Nam~ of Publication:
Available From:
Cost:
Information Provided:
46
SPEC - THE COMPREHENSIVE FOOD­:
SERVICE PURCHASING MANUAL
by Raymond B. Peddersen
C.B.I. Publishing Company
51 Sleeper Street
Boston, MA 02210
Phone: (617) 426-2224
$75
Note: For faster delivery, request
lst Class Mailing.
This is a comprehensive compendium
of federal and other specifications
for all types of food, including
convenience foods, fish, and even
kosher foods. The nearly 1,200-page
manual provides information on pur­chasing
policies along with examples
of useful procurement instruments.
The manual also addresses quality
controls, Federal Regulations, and
proper handling and storage tech­niques.
The manual not only gives an
assortment of clearly written speci­fications,
but provides excellent
photos, illustrations, and charts to
make the specifications more under­standable.
The manual also provides
illustrations of several of the
price sources contained in this book­let.
KEY WORDS AND TERMS COMMONLY USED
IN FOOD PROCUREMENT
Acknowledgment -- A form used by a
vendor to advise a
purchaser that his order has been
received. It usually implies
acceptance of the order.
Acquisition Cost -- The ~e~ cost for
acqu1nng non­expendable
equipment, including any
attachments, accessories, or
auxiliary apparatus necessary to
make it usable for the purposes for
which acquired. Related costs such
as taxes, protective in-transit
insurance, freight or installation
are also included.
Advertising -- See formal advertis­ing;
legal notice.
Advice of shipment -- A notice sent
to a purchaser
advising that shipment has gone
forward and usually containing
details of packing, routing, etc.
Agent -- A person authorized by
another, called a principal,
to act for him.
All-or-none bid -- a bid for a
number of different items, services,
etc., in which the bidder states
that he will not accept a partial
award, but will accept only an
award for all the items, services,
etc., included in the bid. Such
bids are acceptable only if provid~d
for in the invitation for Bids or 1f
the bidder quoted prices for all
items, services, etc., and is
actually the low bidder for every
one.
47
Alternate bid-- (1} A response to a
call for Alternate
bids, See Alternate bid, call for.
(2)_ A bid suomitted with the know­ledge
that it varies from the
specifications. Such a bid is only
acceptable when the variance is
deemed to be immaterial.
Alternate bid, call for -- An Invita-tion
for
Bids for a single need that can be
filled by commodities of varying
materials, dimensions, or styles.
Bidders may submit one or more bids for
each material, style, etc., and only
one award will be made based on an
assessment of what is best for the
Government, taking price as only one
factor involved. For example, you
may ask for bids for cut green beans
but accept bids for other styles of
green beans as well. After receiving
the bids, you may decide you prefer
more expensive whole green beans
because they offer a better buy.
Antitrust legislation -- Laws that
attempt to
Cal prevent or eliminate monopolies
or oligopolies and {_b) prevent
noncompetitive practices.
Authorized price list-- A price list
of the
products or services covered in a
contract which contains minimum
essential information needed by users
for placing orders.
Appropriation-- (.1) Legislative
sanction to use
public funds for a specific purpose,
and (2) Money set apart for a
specific use.
Approved brands list -- See
qua 1 ifi ed
products list.
Arbitrary and capricious action --
A
willful and unreasoning acticn,
without consideration of, and in
disregard of, the facts and
circumstances, without rational
basis; grounds for a court to over­rule
or remand a discretionary
decision or action by an adminis­trative
authority of the Govern­ment.
Arbitration -- A process by which
a dispute between two
contending parties is presented to
one or more disinterested parties
for a decision.
Architect and Engineer (.A&E)-- All
pro­fessional
services associated with
the research, design, and con­struction
of facilities.
Arrival Notice -- A notice sent by a
carrier to a con­signee
advising of the arrival of a
shipment.
As is -- A term indicating that
goods offered for sale are
without warranty or guarantee, and
that the purchaser takes the goods
at his own risk wihout recourse
48
against the seller for the quality
or condition of the goods.
Association of Food and Drug Officials
of the United States (AFDOUS} -- An
organization which establishes
criteria for shipping, handling, and
maintaining frozen food products from
processor to user at a temperature
below 0°F.
Association of Official Agricultural
Chemist [AOAC} -- An organization
which provides official testing
methodologies and procedures, i.e.,
physical, chemical and microbiological,
and approces tolerance of food
products.
Award -- The presentation of a
purchase agreement or con­tract
to a bidder; the acceptance of
a bid or proposal.
Back-door buying -- Making a purchase
without going
through the central purchasing
authority.
Back order -- That portion of an
· opder . wbich~a vehdot::·
cannot deliver at the scheduled time
and which he has reentered for ship­ment
at a later date.
Base price -- (1) A price agreed on
at the time the con­tract
is awarded exclusive of added
sources; assumes prompt payment. (2)
A beginning price for a product
before a service is considered. See
acquisition cost.
Base price procurement -- A prqctice
· where a
price is established based on a
market news source. The vendor then
limits his price for services and
profit tq a specific amount above
or below the base price. See formula
purchasing.
Best interests of the State (city,
county) ~- A term frequently used
in granting a p~rchasing
official the authority to use his
discretion to take whatever action
he feels is mot advantageous to
the government. The term is used
when it is impossible to anticipate
adequately the circumstances that may
arise so that more specific direc­tions
can be delineated by the law
or regulation.
Bid-- (1) An offer, as a price,
- whether for payment or
acceptance. (2) A quotation speci­fically
given to a prospective
purchaser upon his request, usually
in competition with other offerors.
(3) An offer by a buyer to a seller,
as at an auction.
Bid against specifications -- A
purchasing procedure requiring a
process of selecting a successful
bid in response to a pre-established
specification. See advertising;
formal bid or offer.
49
Bid-aware file -- A file that is
divided into
commodity and item sections each of
which contains listings of who was
solicited for individual bids, what
each response was, and other informa­tion.
The bid-aware file is used to
compare past bids for award patterns
that might reveal collusive agree~
ments or to make other comparisons
of dqta.
Bid bond -- An insurance agreement in
which a third party
agrees to be liable to pay a certain
amount of money in the event that a
specific bidder, if his bid is
accepted, fails to sign the contract
r~ bid. See bid deposit; bid
security.
Bid deposit -- A sum of money or
check, deposited with
and at the request of the Government,
in order to guarantee that the bidder
(depositor) will, if selected, sign
the contract as bid. If the bidder ·.
does not sign the contract, he
forfeits the amount of the deposit.
See bid bond; bid secuirty; forfeiture
of deposit or bond.
Bid opening-- The process through
which the contents of
bids are revealed for the first time
to the Government, to the other bidders,
and usually to the public. See
public bid opening.
Bid sample -- A sample required by
the Invitation for Bids
to be furnished as part of the bids
to establish a quality level for the
products being offered.
Bid security -- A guarantee, in the
form of a bond or
deposit, that the bidder, if
selected, will sign the contract as
bid; otherwise, the bidder (in the
case of a deposit) or the bidder or
his guarantor (i r ~ he case of a
bond) will be liable for the amount
of the bond or deposit. See bid
bond; bid deposit.
Bidder -- Any person or firm that
makes a bid.
Bidders list-- A list maintained by
the purchasing
authority giving the names and
address of suppliers of various
goods and services from whom bids,
proposals, and quotations can be
solicited. See prequalification
of bidders; qualified bidder.
Bill -- A list of charges or costs
-- presented by a vendor to a
purchaser, usually enumerating the
items furnished; their unit and
total cost, and a statement of the
terms of sale; an invoice.
Bill of lading (B/L) -- A written
document
issued by a common carrier acknow­ledging
receipt of the goods named
and setting forth the time of the
contract of carriage.
Bill of materials --A list
. specifying the
quantity and character of materials
and parts required to produce or
assemble a stated quantity of a
particular product.
50
Blanket order -- A purchase arrange-ment
in which the
purchaser contracts with a vendor to
provide the purchaser's requirements
for an item or a service, on an as­required
and often over-the-counter
basis. Such arrangements set a limit
on the period of time they are to be
valid and the ma~imum amount of money
which may be spent at one time or
within a period of time. See open­end
contract; price agreement;
requirements contract.
Blanket purchase -- See Blanket order.
Bona fide -- In good faith.
Bond-- An obligation in writing, .
-- binding one or more parties
as surety for another.
Brand name -- A product name which
serves to identify that
product as having been made by a
particular manufacturer; a trade
name.
Brand name specification -- A
specifi­cation
that cites a brand name, model
number, or some other designation
that identifies a specific product
as an example of the quality level
desired. See equal to or better.
Breach of contract -- A failure
without 1 ega 1
excuse to perform any promise which
forms a whole or part of a contract.
See forfeiture of deposit or bond.
Breach of warranty -- Infraction of
an express or
implied agreement as to the title,
quality, content, or condition of
a thing sold.
Bulk purchasing -- Purchasing in
large
quantities in order to reduce the
price per unit; volume purchasing.
Buy against procedure -- A pro-
. · · - c~dure
wnicn allows a purchaser to go out
and buy at market price if a product
specified cannot be delivered by
vendor. The purchaser can then
bill or credit the initial vendor
for the difference in cost.
Buyer -- See purchasing agent.
Buyer's market -- Market conditions
in which (a)
goods can easily be secured and (b)
economic forces of business tend to
cause goods to be priced at the
purchaser's estimate of value.
CAF -- Cost and freight.
Carload (CL) -- A railway carload
or an equivalent.
Standard carlot weight varies with
each commodity.
Carrier of our choice -- Situations
which the
suppliers use their own transport,
usually one with which they have
special arrangements.
51
Cqsh discount -- A discount from
the purchqse price
allowed to the purchaser if he pays
within a specified period. See
discount.
Cash on delivery (COD) -- Payment due
and
payable upon delivery of goods.
Catalog --A listing of item
identifications arranged
systematically. See Federal Supply
Catalog definition.
Caveat emptor -- "Let the buyer
beware." A maxim
that stands for the rule that the
buyer should be careful in making a
purchase because the burden of
defective goods rests with him. The
vendor can be made to take the
responsibility for some defects
through specifications and warranties.
Caveat venditor -- "Let the seller
beware." A maxim ·.
relating to situations where the
vendor bears the responsibility for
defects in the goods he sells.
Central purchasing authority-- The
admini­strative
unit in a centralized pur­cashing
system having the authority,
responsbility, and control of
purchasing activities.
Centralized purchasing --A system
of
purchasing in which the authority,
responsbility, and control of pur­chasing
activities in concentrated
in one administrative unit.
Certificate of compliance --A
sup­plier1s
certification that the ·
supplies or services in question
meet certain specified requirements.
Certificate of noncollusion -- A
state-ment
signed by a bidder and sub­mitted
with his bid to affirm that
his bid is made freely without
consultation with any other bidder.
Certified sampler or official
s ampl er - An individual certified
by Federal or State agency
to take samples, usually to insure
contract compliance.
Claim -- The aggregate of the
operative facts which serve
as a basis for a demand for payment,
reimbursement, or compensation for
injury or damage under law or con­tract;
the assertion of such a
demand.
Code of ethics - - A written set of
which judgments
of professional
should be made.
ethics.
guidelines within
and considerations
ethnics and behavior
See purchasing
Collusion -- A secret agreement or
cooperation between two
or more persons to accomplish a
fraudulent, deceitful, or unlawful
purpose.
Collusive bidding The response
to bid
invitations by two or more vendors
who have secretly agreed to
5 2
circumvent laws and rules regarding
independent and competitive bidding.
See corrupt combination, collusion,
or conspiracy in restraint of trade;
price fixing.
Commercial law -- That branch of the
law that designates
the rules that determine the rights
and duties of persons engaged in
trade and commerce.
Commodity -- An article of trade, a
movable article of
value, something that is bought or
sold; any movable or tangible thing
that is produced or used as the
subject of barter or sale.
Competition -- The process by which
two or more vendors
vie to secure the business of a
purchaser by offering the most
favorable terms as to price, quality,
and service.
Competitive bidding -- The offer of
prices by
individuals or firms competing for
a contract, privilege, or right to
supply specified services or
merchandise.
Competitive negotiation -- A
technique
for purchasing goods and services,
usually of a technical nature, where­by
qualified suppliers are solicited,
negotiations are carried on with
each bidder, and the best offer
(in terms of performance, qua 1 i ty
of items, price, etc.), as judged
against proposal evaluation criteria,
is accepted; negotiated award.
•
Condition-- (1) Quality character-istic
of a product after
grading, packaging, and processing,
affected by external factors, such
as time, temperature, humidity, and
handling as well as damage from in­sects,
pests, and chemfcals. NOTE:
Condition factors are generally not
included as part of the grade since
they occur after the product is offi­cially
graded. (2) Condition refers
to factors which may change with
t:i)ne such as maturity, decay, free­zing
or thawing injury, shriveling,
and flabbiness. See quality and
condition.
Confirming order -- A purchase order
issued to a ven­dor,
listing the goods or services
and terms of an order placed ver­bally,
or otherwise, in advance of
the issuance of the usual purchase
document .
Conflict of interest-- A situation
where, as
part of his duties, an individual
must make a decision or take action
that will affect his personal
intere.sts.
Consideration -- Acts, promises, or
things of value
exchanged by two parties and serving
as the basis for a contract between
them.
Consultants and experts --Those per-sons
who
are exceptionally qualified, by edu­cation
or by experience, in a parti­cular
field to perform some specia­lized
service.
53
Contingency - - A possible future
event or condition
arising from presently known or
unknown causes, the outcome of
which is indeterminate at the
present time .
Contract-- A deliberate verbal or
written agreement between
two or more competent persons to
perform or not to perform a specific
act or acts.
Contract administration -- The mana-
·-- gement of
all facets of contracts to assure
that the contractor ' s total perfor­mance
is in accordance with his con ­tractual
commitments and that the
obligations of the purchaser are
fulfilled. In government , this
management is conducted within the
framework of delegated responsibili ­ty
and authority and includes t he
support of using agencies.
Contract modification --An altera -
tion that
introduces new detai~s . or cancels
details but leaves the general pur­pose
and effect of the contract
intact.
Contract record -- A record provid-ing
compl e t e i n ­formation
on the orders place d for
delivery of goods in a contract so
that the volume of purchase against
the contract can be determined .
Contractor -- One who contracts to
perform work or furnish
materials in accordance with a
contract.
Contractual services -- Services
furnished
under a contract which defines
charges, effective periods, and
extent of work.
Convenience termination clause --
A
contract clause which permits the
buyer to terminate, at its own dis­cretion,
the performance of work in
whole or in part, and to make
settlement of the vendor's claim in
accordance with appropriate regula­tions.
Cooperative purchasing -- The com-bining
of requirements of two or more
political entities in order to
obtain the benefits of volume pur­chases,
reduction in administrative
expenses, or both.
Corrupt combination, collusion, or
conspiracy in restraint of trade --
A
phrase referring to an agreement
between two or more businesses
to stifle, control, or otherwise
inhibit free competition in viola­tion
of State and or Federal anti­trust
statutes. See collusive
bidding; price fixing.
54
Cost-A-Percentage-Of-Cost-Contr~ct --
A
contract written to define all cost
with a percentage of service and
profit. This violates OMB Circular
A-102, Attachment 0, Paragraph 3(C)
(4l and will be illegal when regula­tions
are completed.
Damages -- Compensation, usually in
money, for injury to goods,
persons, or property.
Debarment -- A shutting out or ex­clusion
for cause (as
a bidder from the.list of qualified
bidders).
Debt --Any obligation to pay money
-- Ordinarily the term debt
means a sum of money due by reason
of a contract expressed or implied.
Broadly, the word may include
obligations other than to pay money,
such as the duty to render services
or deliver goods.
Default -- Failure by a party to a
contract to comply with
contractual requireme~ts; v~ndor
failure.
Defect-- (1) A nonconformance of
an item with specified
requirements. (2l In grading,
blemishes or the inclusion of un­wanted
extraneous matter; something
that detracts from appearance or
quality.
Delivery schedule-- The required or
agreed time or
rate of delivery of goods or services
purchased for a future period.
,.
Delivery terms --Conditions in a
contract relating
to freight charges, place of deli~
very, time of ·delivery, and
method of transporation.
Demand -- The desire to possess a
commodity coupled with
the willingness and ability to pay.
Very good-- Offerings or supplies
are rapidly absorbed.
Good Firm confidence on the
part of buyers that
general market condi­tions
are good. Tr~d­ing
is more active than
normal.
Moderate -- Average buyer
interest and
trading.
Light-- Demand is below
average.
Very light-- Few buyers are
interested in
trading.
Demurrage -- Charges made for using
a trailer or box car
beyond the time allowable under
Interstate Commerce Commission (ICC)
regulations.
Descriptive literature -- Information
(such as
charts, illustrations, drawings, and
brochures which show the character­istics
or construction of a product
or explain its operation)furnished
by a bidder as a part of his bid to
55
describe the products offered in his
bid. The term includes only infor­mation
required to determine accep­tability
of the product, and ex­cludes
other information, such as
that furnished in connection with
the qualifications of a bidder or
for use in operating or maintain­ing
equipment.
Design specification -- A purchase
specifica­tion
delineating the essential
characteristics that an item bid
must possess to be considered for
award and detailing how the pro­duct
is to be manufactured; gen­eric
specification.
Designation of special purpose -- A
tech­nique
used when purchasing items
for a special use for which no items
of that kind are produced (e.g.,
sewing machines for teaching blind
people to sew). Specifications used
for the basic item are sent out
along with a description of the
special purpose for which the item
will be used and a questionnait~
asking what modifications bidders
are willing to make in their stand­ard
products to meet the particular
needs.
Discount -- An allow~nce or deduc-tion
granted by the
seller to the buyer, usually when
certain stipulated conditions are
met by the buyer, which reduces
the cost of the goods purchased,
However, discounts may be ~ranted
by the seller without reference to
stipulated conditions. An example
of such use of discount 1s the
application of discount to a nominal
or "list" price to establish the
"net'' or actual price. See cash
discount; quantity discount;
standard package discount; trade
discount.
Discount schedule-- The list of
discounts
applying to varying quantities of
goods or applicable to differing
classifications of purchasers.
Disposition -- Acting to remove
from the premises
and control of a using agency goods
that are surplus or scrap. Dis­position
can be accomplished by
transferring selling, or destroying
the goods.
Dock-- The area where supplies are
loaded, shipped from or
delivered and unloaded.
Draw off orders -- To take from
e-xisting
inventory; a means of reducing
purchased inventory.
Emergency purshase -- A purchase mqde
without
following the normal purchasing
procedure in order to obtain goods or
services quickly to meet an emergency.
Equal to or better -- A phrase(s)
used to
indicate the substituability of
products of similar or superior
function, purpose, design, or per­formance
characteristics. See
brand name specification.
Equal Employment Opportunity Program
-- A plan to include minority groups
or other disadvantaged persons
in the work force of businesses
affected by the plan.
Equipment -- Personal property of a
durable nature which retains its
identity throughout its useful life.
Escalation clause -- A clause in a
purchase
contract providing for upward adjust­ment
of the contract price if
specified contingencies occur; price
escalation clause,
Ethics -- See code of ethics;
purchasing ethics.
Evaluation of bid -- The ~r~cess of
exam1 n1 ng a bid
after opening to determine the
bidder's responsbility, responsive­ness
to requirements, and other
characteristics of the bid relating
to the selection of the winning bid.
Exhaustion of administrative
remedies -- A legal doctrine to
th~ effect that where
an administrative remedy is pro­vided
by statute, relief must be
first sought from the administra­tive
body, and all attempts to
obtain such administrative relief
must be used up before the com­plaining
party may look to the
courts for relief.
Expedite -- To hasten or to assure
delivery of goods
purchased in accordance with a time
schedule, usually by the purchaser
contacting the vendor.
Express warranty -- Any affirma-tion
of fact
or promise made by a seller to a
buyer which relates to the goods
ano becomes part of the basis of the
bargain.
Extend, option to -- A part of a
contract which
contemplates a continuance of the
original contract for a further time
upon compliance with the conditions
for the exercise of the option.
Fair market value -- A price that
would induce a
willing purchaser to purchase or a
willing seller to sell in an open
market transaction; the price a
property would bring at a fair sale
between parties dealing on equal
terms.
57
F~ir-trade statute -- A State law
providing th~t
a manufacturer -may le9ally set a
minimum resale price for his pro­ducts
and that retailers and dis­tributors
must observe that minimum.
Federal Circular A-102, Attachment
0, P-rocurement Standards, August 24,
1977 -- Official regulations govern-ing
the procurement
activities of grantees of the Federal
Grant Funds, i.e., local food service
operators utilizing the Food and
Nutrition Service (FNS) food service
funds.
Federal Supply Catalog -- A catalog
· of avail-able
supplies for which there are
Federal specifications and which are
purchased in common by agencies of
the Federal Government. Subsistence
or food products are cataloged
under Group 89. The Food Safety and
Quality Service (FSQS) is responsible
for maintenance of subsistence
products included in Group 89 list.
FSQS is, also, responsible for the
development of specifications of all
food items listed in ~r ou p 89.
Fidelity bond -· A bond which secures
an employer up to
an amount stated in the bond for
losses caused by d1shonesty or
infidelity on the part of an
employee.
Field purcha$e order -- A limited and
specific
purchase order used in situations where
authority to make the type of pur­chase
involved has been delegated to
using agencies. ·
Firm bid-~ A bid that binds the
bidder until a stipulated
time of expiration.
First In, First Out(FIFO} -- An
in­ventory
practice in which the oldest
product is moved out first.
Fiscal year-- A period of 12 con-secutive
months
selected as a basis for annual
financial reporting, planning, or
budgeting.
Fixed price contract -- A contract
which pro­vides
for a firm price; the 'con­tractor
bears the full responsibility
for profit or loss.
FOB -- See free on board.
FOB Acceptance Final -- A contract
provision
which states there is no recovery for
hi .dden damages at the delivery
point. The terms of sale mandate
the title changes to the buyer at
the point of origin without
recourse.
FOB Ins ection Acce tance Arrival
-- A contract provision
-'-'-.::..=....:~-'-- which makes acceptance
of the product dependent on
approval by the buyer at the
58
destination, even when the product
delivered meets the terms of the
contract; contingent on buyer
approval.
Forfeiture of deposit or bond -- A
loss
by omission, negligence, or mis­conduct
resulting from the performance
of or the failure to perform a
particular act, (e.g., not accepting
a contract when an award is made);
breach of contrac~. See bid bond;
bid deposit; fidelity bond;
performance bond.
Formal advertising -- The placement
of a notice in
a newspaper or other publication
according to legal requirements to
inform the public that the government
is requesting bids on specific
purchases that it intends to make.
See legal notice.
rormal bid or offer -- A bid which
conforms to a
a prescribed format, is forwarded
in a sealed envelope, and is opened
at a specified time.
Formula purchasing -- A system of
purchasing
whereby the supplier utilizes a pric~
ing mechanism tied to a widely used
and accepted price document, such as
USDA Market News or other well-esta­blished
commercial pricing sources
indicated in this booklet. In con­trast
to Cost-Plus-A-Percentage-Cost,
this system allows for open competi­tion
and does not restrict potential
suppliers from competing. See base
price procurement.
Formal bidagainst specifications --
A
formal proceeding at which bids are
opened in front of the buyer or his
representative. No adjustments can
be made. See formal advertising; and
formal bid or offer.
Forward purchasing -- The purchasing
of quantities
exceeding immediate needs in antici­pation
of a price increase or a fu­ture
shortage.
Forward supply contract -- A contract
for fu­ture
supply of definite quantities of
materials or services over a fixed
period. May be drawn off by "draw­off-
orders,11 or delivered at a fixed
and predetermined rate set out in the
contract.
Fraud -- An act resulting from a
willful intent to deceive
another with the purpose of depriving
him of his rights or property.
Free On Board (FOB) -- Properly load­ed
into carri­Under
this provision the buyer
59
pays for transporting the food and
the title changes at hands point of
origin unlesi otherwise stated in
c~ntractor•s specification. Any
claims due to mishandling are the
responsibility of the buyer. not the
seller. Buyer must file all claims
for damage.
Full cost recovery funding -- See
Indus-trial
funding.
Fungible -- Interchangeable; of such
a kind or nature that
one specimen or part may be used in
place of another to satisfy an obli­gation.
Flour and grain-like wheat
are considered fungibl~.
General provisions -- The mandatory
(by law or re ­gulation)
clauses for all contracts
categorized by type of purchase or
contract. Clauses devised especial­ly
for a given purchase are called
special provisions.
Generic name -- Relating to or char-acteristic
of a
whole group or class; not protected
by trademark registration.
Generic specification -- See design
specifica­tion
or Standard of Identity.
Goods -- Anything purchased other
·perty.
than services or real pro-
Gross negligence --The degree of
1 ack of care
that shows a reckless disregard for
life or safety, or that indicates a
conscious indifference to the rights
of others.
Guarantee -- To warrant, stand be­hind,
or ensure perfor­mance
or quality, as a supplier in
relation to his product.
Identical bid A bid that agrees in
all respects with
another bid.
Imprest funds Funds set aside as
a cash reserve for
expenditures made in accordance with
established policies and controls;
petty cash.
Improper influence -- Domination by
one person
over another so as to prevent the
proper exercise of the latter's dis­cretion.
IMPS -- Institutional Meat Purchase
Specifications approved by
the USDA. The IMPS are the most
widely known and accepted specifi­cations
utilized by institutions.
They are usually used in conjunction
with the Food Safety and Quality
Service~s meat grading inspection
acceptance service.
Industrial funding -- Full financing
tivities out of the
services furnished;
covery funding.
of program ac­sale
of goods or
full cost re-
60
Ineligible bidder-- A supplier who,
by reason of
financial in~tability~ unsatisfactory
reputation, poor history of perfor­mance,
or other similar reasons, can­not
meet the qualifications for place­ment
on the bidders list or for award.
Informal bid -- An unsealed competi­tive
offer conveyed
by letter, telephone, telegram, or
other mean~.
Inspection -- Critical examination or
testing of items to de­termine
whether they have been re­ceived
in the proper quantity and in
the proper condition, and to verify
that they conform to the applicable
specifications.
Inspection report A report to in-form
the pur­chasing
authority of the quality or
condition of the items delivered.
In-state preference See prefe,r-ence.
·
Invitation for Bids -- A request,
verbal or
written, which is made td prospective
suppliers requesting the submission
of a bid on commodities or services.
lQ[ -- Individually quick frozen.
Item -- Any product, material, or
service.
Labor sur~us area -- A geographical
section of con­centrated
unemployment or underem­ployment,
as designated by the U.S.
Department of Labor.
Laid-in delivery --Type of delivery
in which the dri­ver
(or supplier) unlaods the sup­plies.
Late bid or proposal -- A bid or pro-posal
which
is received at the place designated
in the Invitation for Bids after the
hour established by the invitation
as the time by which all bids or
proposals must be received.
Latent defect -- A defect which
could not be dis­covered
by ordinary and reasonable
inspection.
LCL -- A quantity less that a car-
- load.
Lead time -- The period of time from
date of delivery during
which the buyer allows the vendor to
prepare goods for shipment.
Lease -- A contract conveying from
one person (lessor) to an­other
(lessee) real estate or per­sonal
property for a term in return
for a specified rent or other com­pensation.
Lease-purchase agreement -- A rental
contract
in which the renting party's periodic
payments or parts thereof are applied
both to fulfill the rental obligation
61
and as installments for eventual own­ership
of the commodity upon comple­tion
of the agreement.
Legal notice -- The notice that is
required by law. Le­gal
notice for some purchases may be
the posting of an announcement of the
purchase in a public place, the noti­fication
of the appropriate bidders
from the bidders list, a formal ad­vertisement
in a newspaper or news­papers,
or a combination of these
methods. See formal advertising.
License-- A nontransferable permis-sion
granted by a govern­ment
or other authority to perform
an act or to engage in an enterprise
that is restricted or regulated by
law.
Life-cycle costing --A procurement
technique which
considers operating, maintenance, ac­quisition
price, and other costs of
ownership in the award of contracts
to ensure that the item acquired will
result in the lowest total ownership
cost during the time the item's func­tion
is required.
Line item-- A procurement item speci-fied
in the Invitation
for Bids for which the bidder is
asked to give separate pricing infor­mation
and which, under the terms of
the invitation, is usually suscepti­ble
to a separate contract award.
Liquidated damages-- A specific sum
of money, set
as part of a contract, to be paid by
one party to the other if one party
should default on the contract.
List price --The published price for
an item.
LN2 -- Liquid nitrogen.
Local preference -- See preference.
Local purchase -- A purchase by an
agency for its own
use or for the use of another agency
logistically supported by it.
Lowest and best bid -- See lowest
responsible
bidder.
Lowest responsible bidder -- That
bidder
who is awarded a contract because
his bid in unit price, total cost
of operation, or value per dollar is
lower than any of the bidders whose
reputation, past performance~ and
business and financial capabilities
are such that they would be judged
by the appropriate government autho­rity
to be capable of satisfying the
government's needs for the specific
contract. Virtually the same as
11 lowest and best bid, 11 11 lowest and
responsive and responsible bidder, 11
and 11 most advantageous bid, price
and other factors considered. 11
LTL -- A quantity less than a truck-
- load.
Lump sum -- A price agreed upon be­tween
vendor and pur-
Chaser for a group of items without
breakdown of individual values; a lot
price.
Manual -- See purchasing manual.
Manufacturer -- One who (1) controls
the design and pro­duction
of an item, or (2) produces
an item from crude or fabricated ma­terials,
or (3) assembles materials
or components, with or without modifi­cation,
into more complex items.
Market (noun) -- The aggregate of
forces that deter­mine
the ~ric~s and . amo~nt of trade
in ·the exchange of goods.
Market (v~rb) --To carry out all' ac-tivities
intended to
sell a product or service. Includes
advertising, packaging, surveying the
potential market, etc.
Market -- The price or price level at
which a commodity is traded.
62
Market Activity -- The pace at which
sales are being
made.
Active Available supplies (of­ferings)
are readily
clearing the market.
Moderate Available supplies
(offerings) are clear­ing
the market at a
reasonable rate.
Slow-- Available supplies (offer­ings)
are not readily
clearing the market.
Inactive -- Sales are intermittent
with few buyers or
sellers.
Material(s) --Supplies required to
perform a function or
manufacture an item, particularly that
which is incorporated into an end
item or consumed in its manufacture.
Misrepresentation -- A manifestation
by words or
other conduct that, under the circum­stances,
amounts to an assertion not
in accordance with the facts.
Mistake in bid -- A miscalculation
in composing ~ · bid
resulting in an incorrect price or
other error which may affect the bid­der•
s eligibility to be awarded the
contract.
Modification -- Any formal revision
of the terms of a contract.
Monopoly -- (1) An exclusive right
or power to carry on a
particular · activity. (2) The owner­ship
or control .of enough of the sup­ply
of or market for ~ product or s~r­vice
to stifle competition~ control
prices, or otherwise restrict trade.
Mostly -- The majority of sales or
volume.
Multiple award -- The award of separ-ate
contracts to
two or more bidders for the same com­modities
in situations where the
award of a single contract would be
impossible or impractical.
63
Mutual assent -- The state where the
parties to a con­tract
agree to all the terms and
conditions in the same sense and with
the same meaning.
NCA -- National Canners Association
Negligence-- The failure to do that
which an ordinary~
reasonable, prudent man would do, or
the doing of some act wnich an ordi­nary,
prudent man would not do.
Reference must always be made to the
situation, the circumstances, and
the knowledge of the parties.
Negotiated award -- See competitive
negotiation.
Negotiated purchase -- Generally not
recommended,
except under certain conditions as
outlined by Circular A -102, Attach­ment
0, Paragraph 3(C)(6).
New price -- Price after all dis­counts,
rebates, etc.,
have been allowed.
New terms -- See discount.
No bid -- A response to an Invita-tion
for Bid stating that
the respondent does not wish to
submit a' bid. It usually operates
as a procedural device to prevent
debarment from the bidders list for
failure to submit bids.
Nonresponsive bid -- A bid that does
not conform to
the essential requirements of the
Invitation for Bids; nonconforming
bid, unresponsive bid.
Notice of Intent to Purchase (~
-- A formal notification that
a purchase will be made. Responses
are requested.
· ob~ole~c~nt -- Becoming obsolete,
due usually to
technological development
Obsolete -- Out of date; no longer
in use.
Offer The act of one person that
gives another person the .
legal power to create a contract to
which both of them are parties; to
perform such an act.
Oliogopoly --A market situation in
which a few companies
control or dominate the market for a
product or service.
Open-account purchase -- A purchase
made by a
buyer who has established credit
with the seller. Payment terms are
usually stated to require payment of
invoice on or before a specific date
or dates; also, to require payment ..
of invoice in full, or less a cer­tain
percentage for prompt payment.
Such terms are agreed upon between
buyer and seller at the time of
placing the order or before.
Open-end contract-- (1) Term con~
tracting; the
establishment of a set price for
products delivered over a specified
period of time. Fresh fluid milk is
often purchased under an open-end
contract whereby a fixed cost per
half pint is agreed upon for a
period of 3 months to a year. Many
open-end contracts contain an esca­lator
clause.
Open-market purchase -- A purchase,
usually of a
limited dollar amount, which is made
by buying from any available source
as opposed to buying from a bidder
who has responded to an invitation
for Bids.
Open purchase order -- An order which
guarantees a
minimum quantity and usually covers
a period of time, 4 months or so.
Option -- The acquired right to con-sider
buying or selling
something at a fixed price within a
specified time.
Option to extend -- See extend,
option to.
Option to renew -- A contract clause
that allows a party to elect to
reinstitute the contract for an
additional term.
Order -- A request or command issued
to a supplier for goods or
services at a specified price.
Order form -- A form by which a
supplier is informed
of an order.
65
Order level -- The level of stock of
any item at which
point an order is initiated for more
supplies of that item.
Order record
issued.
A central numerical
register of orders
Packing lists-- A document which
itemizes in detail
the contents of a particular package
or shipment.
Pallet -- A frame (usually of wood
stainless steel) on which
a product is stacked and which can
be moved with the stack.
Patent clearance --A letter or
other formal communication stating
that the reporting requirements of
the patent rights clause contained
in a contract have been complied
with by the contractor.
Penalty clause -- A clause in a
contract specify­ing
the sum of money to be paid if
the contractor defaults on the terms
of his contract, particularly in
respect to time.
Performance bond -- A contract of
guaranty exe­cuted
subsequent to award by a suc­cessful
bidder to protect the gov­ernment
from loss due to his
inability to complete the contract
as agreed. See forfeiture of depo­sit
or bond.
Performance record -- Record to
indicate a
supplier's ability to keep delivery
promises, his reliability, and the
consistency of quality of his pro~
duct.
Performance specification -- A speci-fication
setting out performance requirements
that have been determined to be
necessary for the item involved to
perform and last.
Perishable goods -- Goods which are
subject to spoil­age
within a relatively short time.
Personal property -- Everything which
is not real
property, which is subject to owner­ship,
and which has exchangeable
value.
Petty cash -- See imprest funds.
11 Polar Stream System .. -- A system of
using a
gaseous atmosphere in trailers and
box cars for transporting fresh
fruits and vegetables; prevents
oxidation.
Political subdivision --A subdivi-sion
of a
State which has been delegated
certain functions of local govern­ment;
can include counties, cities,
towns, villages, hamlets, boroughs,
and parishes.
66
Preference -- An advantage in consid-eration
for award of a
contract granted to a vendor by rea­son
of the vendor's residence,
business location, or business
classification (e.g., small business).
Prepaid -- A term denoting that
transportation charges
have been or are to be paid at the
point of shipment.
Prequalification of bidders --The
screen­ing
of potential vendors in which a
government considers such factors
as financial capability, reputation,
management, etc., in order to
develop a list of bidders qualified
to bid on government contracts.
See bidders list; qualified bidder.
Price -- The amount of money that
will purchase definite
quantity, weight, or other measure
of a commodity.
Price agreement -- A contractual
agreement in which
a purchaser contracts with a vendor
to provide the purchaser's require­ments
at a predetermined price.
Usually it involves a minimum number
of units, direct placement of orders
by the purchaser to the vendor, and
a limited duration of the contract
(usually 1 year). See blanket order;
requirements contract; term con­tracting.
Price at the time of delivery-- A
term
used in sales contracts when market
prices are so volatile that a vendor
will not give a firm price or use an
escalator clause but will only agree
to charge the price that he is charg­ing
all customers for similar pur­chases
on the day he ships or
delivers the goods in question.
Price competition -- The selection
of a contractor,
from two or more competing firms,
based either solely on prices sub­mitted,
or on the final prices re­sulting
from negotiation with all
competing contractors within a range.
Price control -- The fixing or re­stricting
of prices,
especially by a governmental agency.
Price escalation clause
clause.
See esca­lation
Price fixing Agreements among com-petitors
to sell at
the same price, to adopt formulas
for the computation of selling prices,
to maintain specified, discounts, to
establish lower prices without prior
notification to others, or to main­tain
predetermined price different­ials
between different quantities,
types, or sizes of products. See
collusive bidding; corrupt combina­tion,
collusion, or conspiracy in
restraint of trade.
67
Price maintenance --The establish-ment
by a manu­facturer
or wholesaler of a price
for an item below which he will not
sell or permit his product to be
sold by others.
Price protection -- An agreement
between a vendor
and a purchaser which grants the
purchaser any reduction in price
which the vendor may establish on
his goods prior to shipment of the
purchaser•s order. Price protection
is sometimes extended for an addi­tional
period beyond the date of
shipment.
Price rebate --An allowance on
price, usually given
after the completion of the contract
and most frequently based on some
relationship with the business turn­over.
Price schedule The list of prices
applying to vary­ing
quantities or kinds of goods.
Price Trend -- The direction in which
prices move in rela­tion
to trading in the previous
reporting period(s).
Higher -- The maj ority of sales
q~e ~t prices measurably
higher than the previous
.trading session.
Firm -- Prices are trending higher,
but not measurably so.
Steady Prices are unchanged
from previous trading
sessions.
Lower -- Prices for most sales are
measurably lower than the
previous trading session.
Principal -- One who employs an
agent; a person who has
authorized another to act on his
account and subject to his control.
Priority -- The degree of precedence
given to a particular
requisition, order~ or contract to
obtain completion, delivery, or
performance on a particular date at
the expense, if necessary, of com­peting
demands to the same supplier
or facility.
Procurement -- The process of obtain-ing
goods or services,
including all activities from the
preparation and processing of a
requisition, through receipt and
approval of the final invoice for
payment. The acts of preparing
specifications, making the purchase,
and admini .stering the contract are
involved. See purchasing cycle.
68
Professional behavior
chasing ethics.
See code of
ethics; pur-
Program -- A scheme of action to
accomplish a definitive objective
covering a major area of an organiza­tion's
responsibility.
Proprietary article -- An item made
and marketed by a person or persons
having the exclusive right to manu­facture
and sell it.
Proprietary information -- Informa-tion
or
data describing technical processes,
tools, or mechanisms that a business
wishes to keep from general public
view in order to maintain its com­petitive
position in the market. See
trade secret.
Proposal -- An offer made by one
party to another as a
basis for negotiations for entering
into a contract.
Proposal evaluation. criteria -- Weight-ed
standards, relating to management
capability, technical capability,
approach in meeting performance re­quirements,
price, and other impor­tant
factors that are used for
evaluating which bidder in a competi­tive
negotiation has ·made the most
advantageous offer.
..
Protest -p A complaint about a gov-ernmental
administrative
action or decision brought by a
bidder or vendor to the appropriate
administrative section with the inten·
tion of achieving a remedi a l resul t.
Public-- The people of an area.
Public bid opening --The process of
opening and
reading bids, conducted at the time
and place specified in the Invitation
for Bids or the advertisement and in
the view of anyone who wishes to
attend. See bid opening.
Public policy-- That which is deem-ed
by courts to be
general and well-settled public
opinion relating to the duties of
men and government.
Public record --All information
about government
activities that is available for
public inspection.
Purchase order -- A purchaser's docu-ment
used to
formalize a purchase transaction with
a vendor. A purchase order, when
given to a vendor, should contain
statements as to the quantity,
description, and price of the goods
or services ordered, as well as
agreed items for payment, discounts,
date of performance, transportation
terms, and all other agreements per­tinent
to the purchase and its execu­tion
by the vendor. Acceptance of a
purchase order constitutes a con­tract.
6 9
Purchase ' requisition -- A form used
to . request
the purchasing department to purchase
goods or services fro·m vendors.
Purchasing agent -- An administrator
whose job includes
soliciting bids for purchases and
making awards of purchase contracts;
buyer.
Purchasing cycle -- The cycle of
activities
carried out by a purchasing depart­ment
in the acquisition of good~ and
services. See procurment.
Purchasing ethics -- Moral princi-ples
that apply
to the personnel of the purchasing
department and all people who are
involved in the purchasing process,
particularly with respect to the use
of government funds and relationships
between buyers and sellers. See code
of ethics.
Purchasing manual -- A formal collec-tion
of instruc­tions
relative to procedures to be
followed by all parties when making
use of or dealing with the purchas­ing
department in procurement
actions.
Purchasing official -- The adminis-trative
offi­cial
who most directly oversees the
activities of purchasing agents and
those other aspects of property
management that are joined as sepa­rate
or subordinate sections under
individual administrative control.
Purchasing, pUblic --The process of
obtaining
goods and services for public pur ­poses
following procedures implement­ed
to protect public funds from being
expended extravagantly or capricious­ly.
Qualified bidder-- A bidder deter-mined
by the
government to meet minimum set stand­ards
of business competence, reputa­tion,
financial ability, and product
quality for placement on the bidders
list. See bidders list; prequalifi ­cation
of bidders.
Qualified products list-- A speci-fication
which is developed by evaluating
various brands and models of an item
and listing those that are determined
to be acceptable as the only ones for
which bids may be submitted; an
approved brands list.
70
Qua 1 i ty ... .. Refers to the phys i ca 1
properties affecting mar­ket
value, such as color , shape,
texture , cleanness ~ and freedom from
defects. Quality and condition can
be described by the following terms:
Fine -- Superior in appearance,
color, and other quality
factors; better than good.
Good -- Having a high degree of
merchantability and a
small percentage of defects.
Fair -- Having a somewhat higher
percentage of defects
than good or a condition
which warrants a price re­duction
when compared to
good.
Ordinary -- Having a fairly high
percentage of defects
or a heavy degree of
off-condition.
Poor -- Having such a heavy· per­centage
of defects or so
badly off-condition that
it , is salable only to
buyers interested chiefly
in low prices.
Quality assurance --A planned and
systematic :
series of actions considered neces­sary
to provide adequate confidence
that a product that has been pur­chased
meets the purchase specifica­tion
and will perform satisfactorily
in service.
Quality control --The procedures and
policies used to
ensure adequate quality of goods
produced or received .
Quantity discount --An allowance
determined by
the quantity or value of a purchase.
See discount.
Quotation -- A statement of price,
terms of sale, and
description of goods or services
offered by a vendor to a prospective
purchaser; the stating of the current
price of a commodity; the price so
stated.
Receiving report -- A form used by a
receiving func­tion
to inform others, such as the
purchasing and accounting depart­ments,
of the receipt of goods pur­chased.
Rene~otiation -- Deliberation, dis­cussion,
or confer­ence
to change or amend the terms of
an existing agreement.
Renew, option to See option to
renew.
Reordering level -- The stock level
at which a requi­sition
for the replenishment of the
stock should be initiated .
Repudiation of contract -- An unequi­vocal
refusal to perform a contract.
71
Reguirements contract -~ A contract
in .which the
vendor agrees to supply all the pur­chaser'~
requirements that arise for
an item or items within a specified
period. See blanket order; open-end
contract; price Agreement, term con­tracting.
Requisition -- An internal document
by which a using
agency requests the purchasing
department to initiate a procurement.
Research and development (R&D)-- The
pro­cess
by which new products or new
porduct forms are created; preceded
production.
Responsible bidder -- A bidder whose
reputation, past
performance, and business and finan­cial
capabilities are such that he
would be judged by the appropriate
government authority to be capable of
satisfying the government's needs for
a specific contract.
Responsive bidder -- A bidder whose
bid does not
vary from the specifications and
terms set out by the government in
the invitation for Bids.
Restraint of trade -- The effect of
contracts or
combinations which eliminate or
stifle competition, effect a monopoly,
artificially maintain prices, or
otherwise hamper or obstruct the
course of trade and commerce as it
would be carried on if left to the
control of natural and economic
forces.
Restrictive sp~Cificati6ns -- Speci-fica­tions
that unnecessarily limit com­petition
by eliminating items that
would be capable of satisfactorily
meeting actual needs.
Rules and regulations -- Governing
precepts
and procedures made by an adminis­trative
body or agency under
legislative authority that sometimes
have the force and effect of law.
Salvage -- Property that is no
longer useful as a unit
in its present condition but has some
value in addition to its value as
scrap, usually because parts from it
may be recovered and reused.
Sample See bid sample.
Scheduled purchase -- A purchase for
which the bid­ding
procedure is prescheduled so
that using ~gencies• requirements for
the period covered by the contract
can be gathered and combined for the
Invitation for Bids.
72
Scrap - - Property that has no value
except for its basic material
content.
S~dl~d bid -~ A bid which has been
submitted in a sealed
enevelop to prevent dissemination of
its contents before the dealine for
the submission of all bids; usually
required by the purchasing authority
on major procurement to ensure fair
competition. among bidders.
S~aso~al -- Depending upon the sea­sons,-
either climatic or
economic, and usually cyclic on an
annual basis.
Seasonal rate -- A rate instituted
for specified arti­cles
or commodities and effective
only for certain periods of the year.
Seller•s market -- A market condition
where demand is
greater than supply; sellers can set
prices and terms of sale, and prices
are high or rising.
Set-a-side-- (1) Supplier agrees to
set aside part of a
purchase for delivery at a later date.
(2) A procedure allocating part of a
total requirement to be purchased
from a special group of suppliers,
i.e., small business, minority firms,
firms located in economically
deprived areas, etc.
I
•
Service -- Work performed to meet a
demand, especially work
that is not connected with manufac­turing
a product.
Shipping list --A memorandum list­ing
all items ship­ped
at one time on a given order.
Single-source procurement -- An award
for a
commodity which can only be purchased
from one supplier, usually because of
its technological, specialized, or
unique character. Also called sole­source
procurement. This procedure
is not encouraged (see OMB Circular
A-102, attachment 0, paragraph 3c(5)
(b)).
Single-source supplier or sole-source
supplier-- A situation in which only
one vendor is considered
in awarding a contract. This is gen­erally
considered a poor way to pur­chase.
It is acceptable under some
circumstances--for example, in an
area with only one dairy.
Small business -- A designation ne-cessary
for certain
statutory pruposes, referring to a
firm, corporation, or establishment
having a small number of employees,
low volume of sales, small amount of
assets, or limited impact on the
market.
Small Business Administration -- A
Fed­eral
agency created to foster and
protect the interests of small busi­ness
concerns.
73
Solicitation --The process of noti-fying
prospective
bidders that the government wishes
to receive bids on a set of require­ments
to provide goods or services.
The process might consist of public
advertising, the mailing of Invita­tions
for Bids, the posting of no­tices,
or telephone calls to pro­spective
bidders.
Sovereign immunity -- The principle
which absolves
the sovereign (State, city, county)
from responding in damages for past
injuries to another party.
Specification -- A description of
what the purchaser
requires and, consequently, what a
bidder must offer to be considered
for an award.
Specifications committee -- A com-mittee
whose purpose is to advise and as­sist
the central purchasing authority
in establishing specifications. This
committee may also offer advice and
assistance in developing stand~rds.
See standards committee.
Spot purchase-- (1) A one-time pur-chase
made in the
open market out of necessity or to
take advantage of a bargain price.
(2) Purchasing usually done because
of an emergency and normally invol­ving
small quantities. It is gen­erally
non-competitive and is not
on formal or negotiated bid.
Standard -- A characteristic or set
of characteristics for
an item that, for reasons of quality
level, compatibility with other pro~
ducts, etc., is generally accepted
by the manufacturers and users of
that item as a required characteris­tic
for all items of that sort.
Standard commercial supplies -- Arti-cles
which, in the normal course of busi­ness,
are customarily maintained in
stock by a manufacturer or any deal­er,
distributor, or other commercial
dealer for the marketing of such
articles.
Standard specification -- A specifi-cation
es­tablished
through a standardization
process to be used for all or most
purchases of the item involved.
Standardization (of specifications)
-- The process of examining specifi-cations
and needs for items of
similar end usage and drawing up one
specification that will meet the
needs for most or all purchases of
that item.
Standards committee -- A committee
whose purpose
is to advise and assist the central
purchasing authority in establishing
standards and, in some cases, speci­fications.
See specifications commi~
ttee.
Standards of Identity -- Official de­scriptions
of processed food products. The stan­dards
specify and limit the ingredi­ents
used in the product as well as
74
describe how the product is fabrica­ted;
provides a physical description
of the product.
Standing order -- See blanket order.
Stock ~- A supply of goods maintained
on hand in a supply system
to meet anticipated demands.
Stock control -- Control of the le-vel
of stock by con­trol
over the movement of goods into
and out of stores (storage).
Stock record -- A record kept of
items of materials
in stock, usually located at a cen­tral
point and showing stock level
position.
Storage -- The holding of goods in a
designated place for safe­keeping;
a space or a place for the
safekeeping of goods.
Ten­tative
agreement pending the appro­val
of the person whose signature is
required for the contract. (2) In a
long-term contract, some purchases
should not be made until market price
is reviewed and approved.
Supplemental agreement -- Any con- .
tract modl­fication
which is accomplished by the
mutual action of the parties.
Supplier-- A firm that regularly
furnishes needed items to
a business or government; a vendor.
,
Supplies-- Items which are consumed
or expended in the course
of being used. · ·
Supply/Offering -- The quantity of a
particular item
available for current tradtng.
Heavy --
Moderate
When the volume of sup­plies
is above average
for the market being re­ported.
When the volume of
supplies is average
for the market being
reported.
Light-- When the volume of sup­plies
is below average
for the market being re­ported.
Surplus property -­using
agency or all
the present time or
able future.
Inventory not re­quired
by one
using agencies at
in the foresee-
Tabulation of bids -- The recording
of bids and bid­ding
data that was submitted in res­ponse
to a specific invitation; used
for comparison, analysis and record­keeping.
Terminal --A major metropolitan
wholesale market, gener­ally
for fresh fruits and vegetables.
Term contracting -- A technique in
which a source or
sources of supply are established for
a specified period of time, usually
75
characterized by an estimated or de­finite
minimum quantity, with the
possibility of additional requirements
beyond the minimum, all at a prede­termined
unit price. See blanket
order; open-end contract; price agree­ment;
requirements contract.
Terms and conditions -- A phra3e gen-erally
ap­plied
to the rules under which all
bids must be submitted and the terms
that are included in most purchase
contracts; often published by pur­chasing
authorities for the informa­tion
of all potential bidders.
Terms of payment -- The manner of pay-ment
for the goods
or services received. Except in cases
where there is an unusual exchange or
barter agreement, payment is made in
negotiable funds in accordance with
the terms agreed between the buyer
and selle~. There are three basic
payment terms; cash, open account,
and secured account.
Terms payment -- Complete payment is
due within 30 days.
Some firms providediscounts for early
?ayments, such as 1 percent off if
paid within 10 days.
Testing -- A phase of inspection in-volving
the determination
by technical means of the physical and
chemical properties of items, or com­pounds
thereof, requiring notso much
the element of personal judgement as
the application of recognized andes­tablished
scientific principles and
procedures.
Title --This means whereby a person's
ownership of property is es­tablished.
Token bid -- A perfunctory offer sub-mitted
by a bidder with
no serious intent of being the lowest
bid; usually submitted when the bid­der
wishes to maintain eligibility
for the bidders list or as a collu­sive
device.
Total supply -- A concept of pur-chasing,
the objec­tive
of which is to plan in advance
and provide for a broad scope of
purchasing and purchasing-related
activities in order to minimize
costs, increase managerial effective­ness,
and improve operational effi­ciency.
Total supply is not con­cerned
with ordering but with re­quirements
planning, logistics, and
general procurement management.
Trade discount -- A deduction from
an established
price for items or services, often
varying in percentage with volume of
transactions. The discount is made
by the seller to those engaged in
certain businesses and allowed ir­respective
of the time when payment
is made. See discount.
Trade name -- See brand name.
Trade secret -- Any aspect of a busi-
_:..___::__:___ ness or its opera-tions
which
ufacturer.
tion.
is known only to the man­See
proprietary informa-
Trademark -- Generally, any sign,
symbol, mark, word, or
76
•
arrangement of words in the form of a
label adopted . and used by a manufac­turer
or distributor to designate his
particular goods and which no other
person has the legal right to use.
Trade-off analysis -- The process of
. determining the
11 best 11 course of action by weighing
the advantages and disadvantages
associated with available alterna­tives.
The selected course will usu­ally
involve a compromise with some
resources (e.g., time) traded-off for
another (e.g., money).
Truckload (TL) -- A measure for com-modities,
usually
40,000 pounds to 46,000 pounds. Stan­dard
truckload weights vary with each
commodjty.
Ultra vires action -- An action which
is beyond the power or purpose of a
corporation, city, county, or other
body, but not an action which is
merely performed in an unauthorized
manner or without authority.
Undertone -- Situation or sense of
direction in an unsettled
(prices not established) market situ­ation.
Unit price -- The price of a selected
unit of a goodsor ser­vice
(e.g., price per ton, labor hour,
foot). ·
Unit price extension -- The calcula-tion
of the
total price of goods by multiplying
the price per unit by the number of
units purchased.
..
'
Unresponsive bid-- See nonresponsive Volume purchasing --See bulk purchas-bid.
ing.
Unsuccessful bidder -- An offeror
whose bid is
not accepted for reasons of price,
quality, failure to comply with spe­cifications,
etc.
Using agency -- A unit of government
that requisitions
items through central purchasing.
Value Intrinsic worth. The amount
of money for which goods or
services can be exchanged.
Value analysis -- An organized effort
directed at analy­zing
the function of systems, pro­ducts,
specifications and standards,
and practices and procedures for the
purpose of satisfying the required
functions at the lowest total cost of
ownership.
Vendor-- A supplier.
Vendor failure -- See default.
Vendor file -- The accumulated record
maintained by the cen­tral
purchasing authority of informa­tion
relevant to his business rela­tionship
with the government, inclu­ding
application for inclusion on
the bidders list, record of perfor­mance
under contracts, correspondence
and the results of special-purpose
analyses.
Void -- Without legal effect; unen­forceable.
77
Waiver of bid(s) ~- A process, usually
statutory, where­by
a government purchasing office may
procure items without •formal bidding
procedures because of uniqueness of
circumstances related to that procure­ment
action.
Waiver of mistake or informality-­The
act of disregarding errors or
technical nonconformities in the bid
which do not go to the substance of
the bid and will not adversely affect
the competition between bidders.
Note: The following sources were used
in defining key words and terms
commonly used in food procure­ment.
1. State and Local Government Purcha­sing.
The Council of State Gov­ernment,
Lexington Kentucky, March
1975.
2. The Market News Service on fruits,
Vegetables, Ornamentals, and Spe­cialty
Crops {Marketing Bulletin
No. 61). Agricultural Marketing
Service, U.S. Department Agricul­ture,
Washington, D.C., February
1977.
'* u.s. GOVERMENT PRINTING OFFICE : 1978 0-280-930/FNS- 241