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In an effort to assist school administrators, the following definitions have been developed which should be referred to when questions arise:

Management Service Fee is defined as all other costs except food, labor, and miscellaneous costs as defined herein.

Allowable Direct Costs are those costs that are incurred solely for the SFA’s on-site operation, such as:

  • Labor is defined as and limited to on-site employees responsible for the management, preparation, service, and clean-up of meals.
  • Food is defined as and limited to those items purchased for use in the preparation and service of student, a la carte, adult and special event meals as specified.
  • Miscellaneous Expenses are defined as paper supplies (including decorations), equipment rental, cleaning materials, commodity handling and warehousing charges, travel as required for effective program management, and as agreed upon by the SFA (*see below), uniforms, menu paper and printing, taxes and licenses, laundry, insurance and other costs as contractually obligated herein.

Note: Allowable direct cost of operations is defined as labor, food and miscellaneous expenses. All program expenses not otherwise defined in the contract will be assumed by the FSMC under the management fee.

Material Change is a change made by one party or both parties to the terms and conditions of the contract that significantly impacts the compensation given to the bidder. Adding the Summer Food Service Program; changing the menu planning option, vending; increasing costs, adding another school that is not a part of your organization are considered material changes. If you are adding another building, which is already a part of your SFA or adding a breakfast or snack program to your SFA, it is not considered a material change.

Program Income is defined as monies generated by the sale of meals to children, accrued State and federal reimbursement and student and adult a la carte sales, less the annual guaranteed return to district, if applicable.

Travel as required for effective program management and as agreed upon by the SFA is defined as:

Travel as required:

  • Travel of the manager from one building to another in the district.
  • Travel to State sponsored meetings.

Travel as agreed upon:

  • Travel to special meetings.
  • Travel of regional chef, dietician, etc. if the SFA deems such visits necessary for the efficient operation of the program.

USDA Nondiscrimination Statement

In accordance with federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, this institution is prohibited from discriminating on the basis of race, color, national origin, sex (including gender identity and sexual orientation), disability, age, or reprisal or retaliation for prior civil rights activity.

Program information may be made available in languages other than English. Persons with disabilities who require alternative means of communication to obtain program information (e.g., Braille, large print, audiotape, American Sign Language), should contact the responsible state or local agency that administers the program or USDA’s TARGET Center at (202) 720-2600 (voice and TTY) or contact USDA through the Federal Relay Service at (800) 877-8339.

To file a program discrimination complaint, a Complainant should complete a Form AD-3027, USDA Program Discrimination Complaint Form which can be obtained online at:, from any USDA office, by calling (866) 632-9992, or by writing a letter addressed to USDA. The letter must contain the complainant’s name, address, telephone number, and a written description of the alleged discriminatory action in sufficient detail to inform the Assistant Secretary for Civil Rights (ASCR) about the nature and date of an alleged civil rights violation. The completed AD-3027 form or letter must be submitted to USDA by:

  1. mail:
    U.S. Department of Agriculture
    Office of the Assistant Secretary for Civil Rights
    1400 Independence Avenue, SW
    Washington, D.C. 20250-9410; or
  2. fax:
    (833) 256-1665 or (202) 690-7442; or
  3. email:

This institution is an equal opportunity provider.

Click here for Nondiscrimination Statement translations.