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State outlines USDA Foods options: rebates allowed, net‑off‑invoice pending; procurement guidance for districts
Summary
Tennessee procurement staff described allowable vendor pass‑through rebates for commodity processors as an alternative to net‑off‑invoice, explained procurement language and reporting expectations, and recommended coordination with the Department of Agriculture for allocation and tracking.
Elizabeth Frankel Hewson, procurement specialist at the Tennessee Department of Education, told the April update call that USDA guidance allows rebates as an allowable vendor pass‑through method in Tennessee and that rebates can be used as a practical workaround while the state pursues net‑off‑invoice (NOI) options.
Frankel Hewson said rebates allow an SFA to allocate entitlement pounds to processors, include specific line items in a commercial distributor solicitation, purchase the end products through a commercial distributor and then submit a rebate…
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