DAOD 3012-1, Provision and Sale of Food Services


1. Introduction

Date of Issue: 2002-06-18

Application: This is an order that applies to officers and non-commissioned members of the Canadian Armed Forces (CAF members) and a directive that applies to employees of the Department of National Defence (DND).

Supersession:

  • CFAO 65-2, Organization and Establishment of Service Dining Rooms
  • CFAO 65-7, Food Services Revenue and Expenditure Accounting
  • CFAO 65-9, Accounting for Public Rations Commodities
  • Provision and Sale of Food Services Directive, 12 February 1998

Approval Authority: This DAOD is issued under the authority of the Assistant Deputy Minister (Materiel) (ADM[Mat]).

Enquiries: Director Logistics Business Management/Food Services (DLBM/Food S)


2. Definitions

CF Food Services (services d’alimentation des FC)

CF Food Services means the organization of personnel and resources in units and other elements that provides food services to CAF members and others.

meal-day (jour-repas)

Meal-day or ration means the total amount of food required for three balanced meals for one person in a twenty-four hour period.

public food fervices (services d’alimentation publics)

Public food services means food services that are funded by the DND and provided by CF Food Services or a contractor.


3. Overview

General

3.1 To support the mission of the DND and the CAF, personnel and facilities have been allocated to provide public food services to DND funded customers. The operating budget for each CAF organization providing public food services is based on the cost of food services that must be provided at public expense. The standard allowance rates for public meals and increments are promulgated annually and represent the standard food cost for one meal-day in accordance with established standards.

Food Services for Visiting CAF Members and DND Employees

3.2 In addition to providing public food services to CAF members on unit ration strength, meals may be provided to visiting CAF members and DND employees who are authorized to receive public meals under CFAO 36-14, Entitlement to Meals and Public Rations and who are on the establishment of another organization. The organization providing public food services to visiting CAF members and DND employees may incur costs that are not provided for in their operating budget. Any budget shortfall shall be resolved in accordance with the direction on cost recovery in this DAOD.

Use of Surplus Capacity

3.3 If the capacity for public food services is not completely required for military purposes, the surplus capacity may be used to support departmental policies and offset the fixed costs of food services by providing repayment meals to non-defence agencies or personnel in accordance with B-GS-055-000/AG001, Provision of Services to Non-Defence Agencies. An organization providing public food services using surplus capacity shall determine the appropriate recoverable amount in accordance with this DAOD and shall require payment. Under the Financial Administration Manual (FAM) 1018-1, Managing Public Revenue, local revenue may be retained by the organization.

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4. Operating Principles

DND Funded and Non-DND Funded Customers

4.1 The two categories of customers of CF Food Services are as follows:

  1. DND funded customers whose meals are provided at public expense under CFAO 36-14; and
  2. non-DND funded customers whose meals are not paid by the DND and who are subject to financial recovery.

Note - Additional sub-categories of customers are described in Chapter 3 of A-85-269-001/FP-001, Food Services Direction and Guidance Manual.

4.2 The primary obligation of CF Food Services is to DND funded customers. Service to non-DND funded customers may be provided if it does not compromise service to DND funded customers.

4.3 CF members and others who consume meals are the customers of public food services, and units and other elements that are paying for the purchase of the food services are the clients.

Common Standard of Food Services

4.4 DND funded customers must have access to similar food services in any public food services facility, given comparable operational or environmental conditions.

Access Control and Meal Entitlement

4.5 All customers, except those who are paying out-of-pocket, shall have a valid meal card that authorizes access to a static or camp-based dining facility and provides entitlement to an all-inclusive meal in accordance with the Standard Meal Entitlement Pattern as set out in A-85-269-001/FP-001, Food Services Direction and Guidance Manual.

4.6 For out-of-pocket customers, their cash payment or meal ticket provides access to the dining facility. They may purchase an all-inclusive meal, a light meal or individual items, depending on local arrangements and conditions.

Public Expenditures and Revenue

4.7 CF Food Services incur public expenditures and generate public revenue in providing services to DND funded and non-DND funded customers.

Cost Recovery

4.8 Costs shall be recovered in accordance with this DAOD and other applicable departmental direction. The organization providing public food services shall recover costs from other organizations only if not funded to support such other organizations.

4.9 Clients must pay a comparable price or charge for a similar standard of food services. Clients must not pay for non-value added costs resulting from locally controllable inefficiencies.

4.10 Local revenue generated from the sale of food services shall be used to offset the costs of the operation of food services.

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5. Guidelines

Standards

5.1 The following standards apply to all organizations of CF Food Services:

  1. Choice and Quantity:
    1. standard meal entitlement pattern for regular and dispersed meals,
    2. standard meal item availability, and
    3. standard portion sizes;
  2. Nutrition:
    1. Canada's Food Guide to Healthy Eating;
  3. Service and Amenities:
    1. one cafeteria-style dining facility, with separate dining areas for officers, senior non-commissioned members (NCMs) and junior NCMs,
    2. access to food services 365 days per year,
    3. convenient hours of operation for customers, and
    4. efficient and timely service;
  4. Hygiene and Sanitation:
    1. principles and practices expressed in The Sanitation Code for Canada's Foodservice Industry, adapted as necessary to meet the constraints of the operational feeding environment; and
  5. Cost:
    1. basic food cost,
    2. increment allowances, and
    3. recovery rates.

Operational Food Services

5.2 Standards for operational feeding support shall be as similar as possible to those required of static food services, consistent with the operational situation. Standards for operational food services are amplified in the following publications:

  • A-85-269-001/FP-002, Shipboard Feeding Manual;
  • A-85-269-001/FP-003, Field Feeding Manual; and
  • A-85-269-001/FP-004, Flight Feeding Manual.

Contracted Food Services

5.3 Contracted food services shall be provided to the same standards as those required of organizations of CF Food Services. Instructions, procedures and special considerations relating to contracted food services are contained in:

  • A-85-269-001/FP-006, Food Services Contracts Manual; and
  • the Generic Statement of Work - Food Services (available on the DLBM/Food S Web site).

5.4 These references shall be used as source documents in Statements of Work for contracted food services.

Cost Components

5.5 The B-GS-055-000/AG-001, Provision of Services to Non-Defence Agencies manual provides direction on the calculation of incremental, full and recoverable costs for each type of service. The Cost Factors Manual provides the annual standard costs or cost factors for the main categories of resources. With respect to charges for public food services, the following cost components shall be used:

  1. food cost - the cost of food;
  2. labour cost - the cost of employees provided by the Public Service, contracts for services, Personnel Support Program (PSP) or a combination thereof. See the Provision of Services to Non-Defence Agencies manual as to when military labour is considered as a cost;
  3. variable operating costs - the cost of non-food items used in the provision of food services, including paper goods and disposable ware, utensils, tableware and cleaning supplies;
  4. facility operating costs - the direct costs incurred in operating a facility, including janitorial services, electricity, heating and construction engineering;
  5. administration costs - the administrative overhead costs incurred by the DND and the CAF in providing the service, including support services administration and accounting costs, audit and verification, communications and clerical support; and
  6. fixed costs - costs that remain unchanged despite changes in the volume of activity, including the costs of management staff, base support staff and depreciation of capital equipment. Fixed costs are normally determined locally.

Cost Recovery

5.6 Each time that public food services are provided, an agreement is reached between the organization providing the food services and the client who is paying for the purchase of the food services. The clients are informed of the applicable rates and conditions, and appropriate recovery action is initiated. Written agreements shall be completed whenever possible.

5.7 Charges for food services shall be based on:

  1. customer type, which dictates the cost components to be charged;
  2. standard recovery rate for each providing unit, determined by DLBM/Food S;
  3. the type of service provided;
  4. the type and number of meals and increments confirmed; and
  5. any special requirements.

5.8 Current recovery rates by type of customer and by location are published annually by DLBM/Food S. The rates reflect the recoverable charges for DND funded customers and non-DND funded customers.

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6. Performance Measurement and Reporting System

Performance Measurement

6.1 Performance measurement is the means by which the DND and the CAF can assess how well the CF Food Services is providing cost efficient and effective food services that support the mission of the DND and the CAF, and that meet client expectations of quality, choice, value, nutrition and service.

6.2 The results obtained by the performance measurement and reporting system provide managers with a common basis upon which to:

  1. evaluate the performance of their operation;
  2. recognize areas that may require further attention; and
  3. take corrective action.

6.3 Standards and performance measures are beneficial to motivate organizations to improve their performance.

6.4 A measure of cost permits an assessment of the adherence of an organization to standards of quality, quantity and service. The key cost indicators in CF Food Services are:

  1. food cost per meal-day; and
  2. variable cost per meal-day.

6.5 These cost indicators can be compared to standard costs to measure the performance relative to national standards and other operations of CF Food Services. The measurement of customer satisfaction is the percentage of satisfied customers .

6.6 The three standards for Choice and Quantity, as set out in the Standards block in the Guidelines map, constitute the meal standard for the provision of public food services and should be what customers expect in public Food Services dining rooms. Mechanisms must also be in place to monitor customer satisfaction to ensure a balanced approach among cost, standards and customer expectations.

Unitrak Management and Reporting System

6.7 Unitrak is the national food services management system that permits standardized accounting and performance measurement of all operations of CF Food Services. Unitrak is also a mission critical system that is used in static and operational environments and has application as follows:

  1. at the kitchen level for:
    1. forecasting of food and food services requirements,
    2. food procurement,
    3. menu planning and costing, including recipes,
    4. production planning and control,
    5. tracking of volume of activity, and
    6. catering management;
  2. at the food services management level for:
    1. control of operating costs,
    2. resource management, including revenue, cost recovery and allocated budget,
    3. performance measurement including quality, quantity and value measures for the Base Services Index (used to provide common national standards for key base services), and
    4. resource requirement planning;
  3. at the local management level for:
    1. reporting on operating budget management, and
    2. performance measurement, including controllable food services operating costs and standards as to quality and quantity;
  4. at the environmental command level for:
    1. performance measurement,
    2. comparison between locations,
    3. trouble shooting, and
    4. overall level of activity; and
  5. at the NDHQ level for:
    1. performance measurement,
    2. validation of national standards,
    3. evaluation of policy effectiveness,
    4. provision of key indicators of CF Food Services, and
    5. reporting to senior management.

7. Responsibilities

Responsibility Table

7.1 The following table outlines the responsibilities for this instruction.

The ... is/are responsible for ...

J4 Mat/DG Log

  • ensuring that policy for food services supports the overall objectives and mission of the DND and the CAF.

DLBM

  • ensuring that systems and standards support the policy for food services.

DLBM/Food S

  • developing policy and requirements for food services;
  • establishing, defining, promulgating and validating standards and performance measures to help ensure that quality food services are provided consistently throughout the CAF; and
  • developing and directing the implementation of procedures and systems that support the policy for food services.

environmental chiefs of staff and group principals

  • ensuring that national policies and systems for food services are applied consistently.

formation, base and wing commanders, and unit commanding officers

  • distributing resources to permit the CF Food Services to serve authorized customers within the required performance standards;
  • assessing and monitoring performance based on performance indicators and standards;
  • achieving the performance measurement standards; and
  • applying the appropriate cost recovery rates.

food services officers and managers

  • delivering efficient and effective food services that meet DND and CAF standards.

clients

  • ensuring that expenditure decisions fall within the public entitlement and minimize the cost to the public.

DND funded customers

  • making appropriate use of meal entitlements at public expense.

8. References

Acts, Regulations, Central Agency Policies and Policy DAOD

  • Canada's Food Guide to Healthy Eating
  • Financial Administration Manual 1018-1, Managing Public Revenue
  • Financial Administration Directive 51, User Pay Arrangements
  • CFAO 36-14, Entitlement to Meals and Public Rations
  • B-GS-055-000/AG-001, Provision of Services to Non-Defence Agencies
  • The Food Safety Code of Practice for Canada's Foodservice Industry
  • Cost Factors Manual

Other References

  • A-85-269-001/FP-001, Food Services Direction and Guidance Manual
  • Chapter 2, Annex A, Standard Meal Entitlement Pattern
  • Chapter 3, Section 2, Categories and Types of Customers
  • A-85-269-001/FP-002, Shipboard Feeding Manual
  • A-85-269-001/FP-003, Field Feeding Manual
  • A-85-269-001/FP-004, Flight Feeding Manual
  • A-85-269-001/FP-006, Food Services Contracts Manual
  • Recovery Rates (available on the DLBM/Food S Web site)
  • Generic Statement of Work - Food Services (available on the DLBM/Food S Web site)
  • CF Common Service Standard Promulgation, VCDS Directive, 8 May 2000
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