PROCUREMENTOF COMMERCIALLY

VENDED MEALS

04/18/23 1

OBJECTIVES

Local Education Agency (LEA) will:● Correctly complete the commercial vendor

procurement process● Receive Approval From State Agency

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COMMERCIAL VENDOR DEFINITION

A commercial vendor is an enterprise that provides complete meals or meal components

A vendor cannot provide employees or manage any aspect of the school food service at the LEA

NOTE: LEAs purchasing meals directly from another LEA are exempt from the procurement regulations. A sample LEA to LEA contract (#56) is available in SNEARS

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PROCUREMENT PROCESS GUIDELINES FOR ALL LEAs

All LEAs must execute a new commercial vendor contract for school year 2013-2014● Exception: LEA executed multiyear contract for

2012-2013 Federal procurement regulations and state

public school contract law must be followed LEA must guarantee open and free

competition

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PROCUREMENT STEPS

Determine procurement process:● Formal process● Informal process

Develop specifications Advertise for bids or solicit proposals Receive & evaluate bids/proposals Award contract Manage contract

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STEP 1- BID OR QUOTE?

Non-Public Schools● Formal bid process required if total cost of

contract is at or above $150,000● Informal (“small purchase”) process allowed if

total cost of contract is below $150,000

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STEP 1: BID OR QUOTE?

Public & Charter Schools● Based on public school contract law (more

restrictive than federal regulations), formal bid process required if:

LEA has a Qualifying Purchase Agent (QPA), and total cost of contract exceeds $36,000

OR LEA does not have a QPA and total cost of contract

exceeds $26,000

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TOTAL COST OF CONTRACT

To determine total cost of contract, multiply:# of meals needed per day, by type

XUnit price per meal, by type

XAnnual number of meal service days

Current numbers can be used to project total costs for school year 2013-2014

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EXAMPLE# of meals needed per day: 100

Unit price per breakfast: $1.25

Unit price per lunch: $2.40

Serving days in school year: 165

Breakfast:100 X $1.25 X 165 = $20,625

Lunch: 100 X $2.40 X 165 = $39,600

TOTAL COST: $60,225

Public/Charters: Formal process requiredNon-Public: Informal process acceptable

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STEP 2: SPECIFICATIONS

Required for formal or informal procurement process

Detailed specifications must be developed by LEA

Specs must include required forms (next slide)

All contract requirements must be included Include as much information as possible to

allow vendor to give realistic proposal04/18/23 10

REQUIRED FORMSTO INCLUDE WITH SPECS

LEA must include the following required forms with specs:● Certificate Regarding Debarment(#130)● Certification Of Independent Price Determination

(#131) signed by vendor & LEA

● Disclosure Of Lobbying Activities (#132)● Certification Regarding Lobbying (#133)

Vendor must submit completed forms with proposal

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SPECIFICATION GUIDANCE Specs should detail general and specific

conditions or requirements. Examples include:

● Length of contract (1 year or multiyear)● Type of meals (breakfast, lunch, snack)● # components (all 5 or only certain ones)● # days, location(s) and time(s) for meals● Equipment needs, if any● Type of meal service (i.e., bulk, prepack)● Menu development (LEA or vendor)● Vendor compliance with HACCP standards● Vendor compliance with meal pattern regulations

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SUGGESTED FORMSTO INCLUDE WITH SPECS

School Lunch Meal Pattern (#198) School Breakfast Pattern (# 91) After School Snack Meal Pattern (#71) HACCP Production Record (#51 or #83) School Calendar

Meal patterns and production records are available on the Dept. of Agriculture web site at: www.nj.gov/agriculture/applic/forms/#6 13

STEPS 3 AND 4: FORMAL PROCUREMENT PROCESS

Advertise and evaluate bids:● Publicly advertise Invitation For Bid (IFB) ● Publicly open bids at time and place specified in

the IFB● Evaluate bids to determine if all conditions and

requirements in specs were met

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STEPS 3 AND 4: INFORMAL PROCUREMENT PROCESS

Solicit quotes & evaluate proposals:● Request for Proposals (RFP) must be solicited

by one or more of the following methods: Letters to potential vendors (minimum of 3) Emails to potential vendors (minimum of 3) Public advertisement

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STEPS 3 AND 4: INFORMAL PROCUREMENT PROCESS

Solicit quotes & evaluate proposals (cont’d):● Specs in RFP should include all significant

evaluation factors and scoring criteria LEA will use to make selection

● Evaluate proposals received: Determine if all requirements and conditions in specs

were met Rank and score proposals

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STEP 5: AWARDING THE CONTRACTFormal procurement process (IFB):

● Award contract to the responsible bidder whose bid met conditions/requirements and is lowest in price

Informal procurement process (RFP):● Award contract to responsible vendor, whose

proposal is most advantageous to LEA, price and other factors considered

State Agency LEA/Vendor Contract (#233) must be used in its entirety04/18/23 17

CONTRACT TERM

Contract can be awarded for a term of:● 1 Year; or● 2 Years; or● 3 Years

Length (term) of contract:● Determined by LEA● Must be included in specs

If multi-year contract (2 or 3 years) is awarded, unit price per meal must remain the same for the entire contract term

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STEP 6:MANAGING THE VENDOR CONTRACT

LEA must assure that vendor follows all requirements/regulations.

For example, LEA is responsible to assure vendor:● Provides meals that meet current meal pattern

requirements in correct portion sizes● Completes a portion of daily production records

if required in specs● Provides recipes and nutrition facts labels when

an administrative review is conducted

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STEP 6:MANAGING THE VENDOR CONTRACT

For example, LEA is responsible to assure vendor (cont’d):● Maintains HACCP principles ● Provides daily delivery slips● Follows all conditions/requirements included in

specifications and contract

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STATE AGENCY APPROVAL

LEAs must submit all required documents indicated on the LEA/Commercial Vendor Contract Checklist (#199) by September 30 as part of annual agreement process

Multi-year contracts must be submitted annually

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REQUIRED DOCUMENTS

If formal procurement process used, submit: Actual copy of published notice of Invitation For Bid (IFB)

Copy of IFB

Record of Bids Received

Executed Contract (#233) with Original Signatures and Date Signed

For Public & Charter schools only: Certified Board Minutes Awarding Contract (Must contain price vendor is charging for each meal type)

REQUIRED DOCUMENTS

If informal procurement process used, submit: Documentation of solicitation of quotes (letters or emails sent to

potential vendors or actual copy of public advertisement)

Record of Quotes Received

Executed Contract (#233) with Original Signatures and Date Signed

For Public & Charter schools only: Certified Board Minutes Awarding Contract (Must contain price vendor is charging for each meal type

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CONTRACT RENEWAL

After the initial contract term of one, two or three years, LEA can renew if the following requirements are being met:

● Services are being performed in an effective and efficient manner

● Terms and conditions are not substantially changed from original contract

● Any price increase in renewals cannot exceed quarterly index rate in effect at time of renewal

● Total length of original contract term and any renewals cannot exceed 5 consecutive years

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ADDENDUMSBeginning school year 2014–2015:

● Addendums will be acceptable. Required language referencing addendums has been added to state agency lea/vendor contract template

● A required state agency LEA/vendor addendum and document checklist will be available

● Guidance on using the quarterly index rate for allowable vendor meal price increases will be available

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PROCUREMENT RESOURCESDocuments are available in the “Vended Meals” tab under resources in SNEARS:

● Certificate Regarding Debarment (#130)● Certification Of Independent Price Determination

(#131)● Disclosure Of Lobbying Activities (#132)● Certification Regarding Lobbying (#133)● Commercial Vendor Fact Sheet (#187) ● LEA/Commercial Vendor Contract Checklist

(#199)● LEA/Vendor Contract Template (#233)

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