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School Lunch Program: Role and Impacts of Private Food Service Companies

RCED-96-217 Published: Aug 26, 1996. Publicly Released: Aug 26, 1996.
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Highlights

Pursuant to a legislative requirement, GAO examined the extent to which schools use private food service companies to operate their lunch programs, focusing on the: (1) terms and conditions of the contracts between schools and food service management companies (FSMC); and (2) percentage of schools offering brand-name fast foods that participate in the National School Lunch Program.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Agriculture To achieve improved compliance with the Department of Agriculture's (USDA) guidance, the Secretary of Agriculture should direct the Administrator, Food and Consumer Service, to work with appropriate state officials to ensure that FSMC contracts contain the provisions required by USDA guidance on contracting with FSMC.
Closed – Implemented
The Food and Consumer Service (FCS) has taken steps to improve monitoring and administration of FSMC contracts. FCS actions include: (1) issuing a memorandum to all its Regional Directors, Special Nutrition Programs, apprising them of the GAO report findings and recommendation and reiterating FSMC contract oversight responsibilities at both the federal and state levels; (2) requesting the regional offices to notify states of the need to strengthen oversight of FSMC contracts and contract renewals; (3) requesting regional offices to review FSMC contracts in upcoming management evaluations of state agencies; (4) working on making FCS guidance for contracting with FSMCs readily accessible to state agencies and school food authorities; and (5) continuing to provide technical assistance to state agencies and school food authorities.

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Topics

Commercial productsContract termsContractor paymentsCost plus fixed fee contractsFood programs for childrenFood services contractsSchoolsStudentsFoodSchool meal programs