PILOT PROGRAM FOR SCHOOL LUNCH PURCHASES
                                              Release No. 0070.97

                                Connie X. Crunkleton 202/720-8998
                                              crunkleton@usda.gov
                                    Jerry R. Redding 202/720-6959
                                                jredding@usda.gov

GLICKMAN ANNOUNCES PILOT PROGRAM FOR SCHOOL LUNCH PURCHASES 

     WASHINGTON, March 3, 1997--Agriculture Secretary Dan Glickman today
announced a pilot program that will provide additional purchasing power to
states that administer the National School Lunch Program.

     Glickman made the announcement at a meeting of the American School
Food Service Association.  "The program -- which will be piloted in South
Carolina and Texas -- will allow USDA to use its considerable purchasing
power to buy foods on behalf of the states," Glickman said.  "Purchases will
be made with state and local funds provided under the National School Lunch
Program. This is yet another example of how federal and state governments
can work in partnership to save money and improve services." 

     Glickman noted that, for a number of years, states and local school
districts participating in the National School Lunch Program have expressed
an interest in the Department purchasing foods for them.  In accordance with
the National School Lunch Act, USDA is mandated to purchase prescribed
levels of foods for use in the school lunch program. Because USDA purchases
in such large quantity, it can buy at significantly lower costs -- as much
as 5 percent to 10 percent lower -- than states or local schools. 

     In November 1994, the Healthy Meals for Healthy Americans Act amended
the NSLA and provided authority for the Secretary of Agriculture to enter
into agreements with states to use funds available to them under the NSLA to
purchase food for their participating schools.  

     "State interest in the pilot program is high," Glickman said. 
"They're excited about the potential this program offers to better use their
shrinking funds and improve their programs.  Using the Department's
substantial purchasing power should lower the cost of foods purchased by
states and local schools." 

      USDA's Agricultural Marketing Service and Farm Service Agency hosted
a roundtable discussion in May 1996, where representatives from 10 states
provided valuable input on how to best structure the pilot program to be
responsive to state and local needs, including delivery schedules and method
of payment. 

     Items identified by Glickman for potential purchase include bowl-packed cereal in individual serving size packages, assorted fruit juices in
4-ounce containers, fruit cups, and low-fat shredded and sliced processed
American cheese.  
     "After the pilot is evaluated, the program can be offered throughout
the country," Glickman said. "This is good, common-sense procurement policy
and it allows us to help states to get more high-quality and nutritious
foods for their school lunch and other feeding programs."  

     Glickman said that USDA will closely follow the pilot project to
assess the program and potential implications for other feeding programs.  

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