FOOD SERVICE MANAGEMENT

COMPANIES

Department of EducationDivision of Program Support

Bureau of Nutrition Programs and Services

Cheri White, AdministratorKathryn GM Hodges, Program Specialist IVPatrick ________ , Attorney General’s Office

If I outsource my food service, what do I need to

know?

CFR 7 Part 210.16General Responsibilities Maintain contract

documents Retain signature

authority on all aspects of FS operation

Monitor meal service to assure compliance

Review monthly invoices for allowable costs

Review monthly invoices for discounts, rebates, credits

Approve a la carte items

Monitor USDA Commodity foods

Monitor inventory Maintain health

inspections for on-site facilities

General Responsibilities continued

Monitor health inspections for off-site facilities

Review promotion activities for student participation

Create/maintain/participate in advisory committee

Verify FSMC criminal record checks

Review annual breakout of costs

Assure that FSMC is adhering to new meal pattern and requirements

Monitor food purchases

Process renewal option before existing contract document expires

General Responsibilities continued

Establish all meal prices

Retain responsibility for parent income eligibility application determinations

Ensure FS operation is in conformance with SFAs Agreement with the State Agency

Retain control of FS account and overall financial responsibility

Provide detailed specifications for each food component

AND, FINALLY,

Assure that all discounts, rebates, credits earned by the FSMC on

purchases made on the behalf of the SAU are returned to the SAU’s non-profit food service account.

So, you’ve made the decision to outsource your

food service.

Now What!?!

Request for Proposal or

Invitation to Bid

Request for Proposal (RFP) Competitive Negotiation

Invitation to Bid (ITB) Competitive Sealed Bids

Request for Proposal

Method generally used Vendors submit a complete proposal,

following RFP guidance Each proposal will be evaluated by a

committee against identified criteria with assigned weights, such as budget, experience, financial condition, personnel management, etc.

Invitation to Bid

Vendors bid on exact specifications established by SAU

Vendors provide their best price, via a concealed bid process

SAUs will open all sealed bids at the same meeting and choose the vendor with the lowest bid

No other evaluation of the bid will be made.

Open and Free Competition

Procurement procedures must NOT restrict or eliminate competition. Examples of restrictions include:o Unreasonable restrictionso Noncompetitive Practiceso Conflicts of Interesto Inappropriate Practiceso Insufficient Timeo Geographic Preferences

ADVERTISE

• In Newspapers• On Website• Send Notice to Contractors

currently in State

WHAT TO KEEP ON FILE• RFP/ITB• Advertisement (where posted/where sent)• List of Vendors who Responded• All proposals/bids submitted by vendors• Scoring Information• Justification for Chosen Vendor• Final Contract Document and Attachments• Subsequent Renewal Documents

It is VERY important to note that any vendor that assists

the SAU in preparing the RFP/ITB will be banned from

the bidding process.

If the SAU awards a contract to such a vendor, the SAU will lose the opportunity to participate in the USDA Meals Program.

Contract Document

Each contract is good for only one year, with up to four one-year renewal options

Each renewal option must be approved by the State Agency BEFORE the current contract/renewal expires

The State Agency must review the contract document, or renewals, BEFORE they are signed by the contracting parties

It is the responsibility of the SAU to prepare all contract documents,

including RFP, ITB, original contract and renewals.

The State Agency has templates for SAUs to use in the bid and contracting

process.