FOOD SERVICE MANAGEMENT COMPANIES SFSP Procurement Procedures

1. FOOD SERVICE MANAGEMENT COMPANIESSFSP Procurement Procedures Part III, Page’s 100-120 of the Administrative Guidance for Sponsors

2. PROCUREMENT • Purchasing • Federal Funds • Regulations • Sponsors responsibility to insure that free and open competition exist to the maximum extent possible to obtain program goods, equipment and services at the lowest possible cost

3. PROCUREMENT PLAN • A procurement plan must be completed and kept on file in the Sponsoring Organizations central office • Alabama Bid Laws section (Yellow pages at end of chapter) provides information on what should be included in a procurement plan

4. THREE METHODS OF PROVIDING FOODfor SFSP • Self Preparation • Contract with a School Food Authority (SFA) • Contract with a Food Service Management Co. (FSMC)

5. Self Preparation • Obtain three (3) prices quotes on food Items-breads, meats, fruits, vegetables and milk • Do this one time during the program year (prior to start of program) • You do not have to go with the lowest price but items you purchase must be compatible in price with lowest price.

6. SOLICITING LOCAL SCHOOLS AGENCIES • 1st priority • Schools have staff and facilities • Familiar with meal pattern and requirements of Federal feeding programs • No need to bid • Complete form SFSP 15

7. Using a Food Service Management Company • Food Service Management Company means any commercial enterprise or non profit organization with which a sponsor may contract for preparing unitized meals, with or without milk, for use in the program, or for managing the sponsors food service operation • Must enter into contract. Use form SFSP 17.

8. To Bid or Not to Bid??? • Public Organizations:  Publics must use the lower of State ($15,000) or local thresholds, not to exceed the Federal threshold of $150,000 (Check with Alabama Bid Law: colored page at end of chapter)) • Private Non-Profit Organizations:  Not for profits can choose (their option) either the Federal threshold ($150,000) or the institution's own threshold, if lower.  State agencies cannot require compliance with State or local rules.

9. 3. Formal Competitive Bid Procedures (food purchases over $ 150,000 or Public agencies requiring bids) The sponsor must: - prepare an Invitation for Bid (IFB) package FNS-688. Must include complete, adequate, and realistic specifications or purchase description; - publicly advertise IFB not less than 14 days before bids are opened; - notify State agency at least 14 days before the bid opening if contract is valued over $150,000

10. Formal Bid Procedures (Cont’d) - publicly open and post all bids which are submitted; - submit required documents to the State agency; - receive approval from State agency before accepting or contracting with the vendor.

11. Ensuring Food Quality and Service Sponsor Responsibilities: • Must provide a list of all approved sites, the number of meals to be served, and the times of meal service to the FSMC; • Must inform the FSMC of cancelled or terminated sites; • Must agree to pay FSMC for meals delivered in accordance with the contract; • Must document problems with the vendor