RFP for USDA Commodity Diversion Processing

The Oregon Child Nutrition Coalition (OCNC) is soliciting proposals from manufacturers for USDA commodity diversion processing services for school nutrition programs, covering the 2026-27 school year with an option for a potential renewal through 2027-28. The procurement targets food processors capable of converting USDA donated commodities into processed food products for approximately 180,000 students across 90 school districts. Vendors may submit pricing through three distinct models: Cash Rebate, Fee for Service (FFS), and Net Off Invoice (NOI), with no mandatory volume commitments. Proposers must submit detailed pricing forms for up to 20 products per submission, including comprehensive product specifications, nutrition facts labels, ingredient statements, and signed certifications. Key evaluation criteria will focus on product descriptions, pricing, and compliance with specified requirements. The solicitation timeline includes a December 2, 2025 deadline for errors and clarifications, responses to questions by December 9, 2025, and final proposals due electronically by December 18, 2025, at 2:00 p.m. PST. Notification of intent to award is scheduled for January 8, 2026, with a protest period ending January 16, 2026.

Participation in this procurement requires manufacturers to meet several specific qualifications, including possessing a National Processing Agreement signed by both USDA and the Oregon Department of Education. Vendors must comply with Buy American requirements, ensuring that commodities are domestic or substantially U.S. processed (51% or more), and carry minimum general liability insurance of $1,000,000 per occurrence with $2,000,000 aggregate, plus workers' compensation coverage. The State of Oregon mandates that processors receive at least one full truckload of diverted product from the entire state or a combined truckload to participate. No specific set-aside designations for disadvantaged enterprises were mentioned in the documentation. Shipping fees are calculated to zip code 97070, with potential for districts to negotiate alternative shipping arrangements. While no specific award value or budget range was explicitly stated, the procurement covers processing services for school nutrition programs representing 180,000 students. The OCNC reserves the right to reject all bids, waive irregularities, combine product scores by manufacturer, or cancel the RFP if deemed in the best interests of its members.