Food Service Management Company Contracts Getting the right price, product and service for your organization The Child and Adult Care Food Program playing a vital and integral role in improving the overall quality of care and daily nutritional health of participants
Presentation Outline: • Small and large purchase procedures • The contract • When to begin the process • What Are the required timelines for bids Language to use to post the bid • Where to post the advertisement • How to select a vendor • Final submission to the State Agency (OSSE)
Procurement Requirements • Federal & District Regulations • Procedures to ensure: • Ethical ??? • Competitive • Clear
Procurement Procedures • Small Purchase • Large Purchase: Competitive Sealed Bids • Procurement Options: • Invitation for Bid (IFB) • Request for Proposal (RFP) The CACFP fiscal year begins October 1, so start your process by September 1.
Small Purchase vs. Large Purchase Small Purchase Large Purchase Total contract amount $99,999 or Total contract amount $100,000 or
Small Purchase Procedures Verbal Quotes Written Quotes • If total value of contract is less than $25,000: • Solicit quotes from at least 3 companies • Document oral quotes • If total value of contract is $25,000-$99,999: • Solicit quotes from at least 3 companies • Obtain at least 3 written quotes
Small Purchase Procedures under $25,000Soliciting Verbal Quotes Prepare to solicit quotes • Determine the services desired and meal service locations • Prepare the same meal requirements and specifications to share with all FSMCs. • Make a list of qualified FSMCs. Make the call • Obtain at least three oral price quotes. • Write down each quote obtained. Award the Contract • Choose the vendor that quotes the lowest price. • Sign a small purchase contract with your chosen FSMC. • Prepare and submit a small purchase contract package to submit to your Specialist. No matter when you sign your contract, all contracts end September 30.
Small Purchase Procedures over $25,000Soliciting Written Quotes Prepare to solicit quotes • Determine the services desired and meal service locations • Prepare the same meal requirements and specifications to share with all FSMCs. • Make a list of qualified FSMCs. Make the call • Contact qualified FSMCs and request written quotes. • Obtain at least three written price quotes. Award the Contract • Choose the vendor that submits the lowest price quotes. • Sign a small purchase contract with your chosen FSMC. • Prepare and submit a small purchase contract package to submit to your Specialist. No matter when you sign your contract, all contracts end September 30.
Large Purchase Procedures • If total value of contract is over $100,000: • Publish bid announcement for at least one day in widely-read newspaper • Keep bid open for at least 14 days prior to the opening of bids • Bids may be open longer, ex. 30 days • Solicit additional bids if desired • Give IFB or RFP packet to interested companies • Open bids/proposals • More than one person must be present • Record all bids/proposals • Score proposals • Award contract & notify all bidders of result
Large Purchase Procedures I IFB Invitation for Bid RFP- Request for Proposal • Award must be made to the lowest responsive and responsible bidder meeting the specifications • Lowest price prevails • Award is made to the bidder that receives the highest point score based on the award criteria • Highest Score
Large Purchase Procedures IFB Example • Vendor A Will provide 10,000 lunches per year for $41,320 per year • Vendor B will provide 10,000 lunches for $41,000 per year
Large Purchase Procedures RFP criteria—an example • Bid Price 51 points • Menu 8 • Food Presentation 10 • Adequacy of plant & transp. 7 • References 8 • Previous Experience 7 • Financial Capability 9 _______________________ total 100 points
Large Purchase Procedures WHAT the CACFP Institution must fill out for a NEW bid Important IFB/RFP Sections: • Cover Page • Definitions • Certificate of Independent Price Determination • Unit Price Schedule • Scope of Services • Explanation to Bidders • Recordkeeping • Option to Extend the Contract • Schedule A • Schedule B • Schedule C
Non-Compliance – per the IFB/RFP • Institution shall reserve the rights to: • Inspect meals • Determine the quality of meals • Reject any meal • The institution shall not pay for: • Unauthorized menu changes • Incomplete meals • Meals outside of delivery time • Meals rejected that do not comply with CACFP specifications
Contract Termination – per the IFB/RFP • Provisions for Termination • Improper Execution • Contract Default • Emergency Procurement • Availability of funds
Large Purchase Procedures WHAT-- language to use to post the bid SAMPLE AD The HAPPY DAYS DAY CARE CENTER (Name of Day Care/ Organization) Will receive bids from August 25, 2010 until September 8, 2010 at 2:30 pm (at least 14 days) (time) Bids will be opened on September 9, 2010 at 10:30 am. HAPPY DAYS DAY CARE CENTER (name of Day Care/ Organization) is advertising the opportunity to bid on the delivery of breakfast, lunch, and snack meals to children enrolled at the day care with a possible extension of (3) one- year renewals. All meals must meet at a minimum, but are not restricted to, the USDA Child and Adult Care Food Program meal pattern requirements. The Invitation for Bid (IFB) specifications such as; student data, days of service, meal quality, etc. may be obtained from HAPPY DAYS DAY CARE CENTER (Name and Address of Day Care/Organization) 123 Sunshine Way, NW Washington, DC 20001 See/ contact SALLY SUMMERS -----202. 222. 3344 (name of organization representative and phone number) All bids not addressing all areas as outlined will not be considered.
Large Purchase Procedures WHEREto post your (NEW) ad • In a publication/medium that is accessible and advertises to all Examples~ Washington Post DC Registry Washington Times
Large Purchase Procedures WHAT is… • the required posting timeline for the NEW bid? √Ads are required to be posted for at least ONE (1) day √ The bid process is required to be open for Fourteen days (14) Example: ad posted on August 25, the earliest closing date of all bids cannot be before September 8
Administration • Identified all bid requirements • Sufficient number of qualified bidders • Awards to responsible contractors only
Large Purchase Procedures What CACFP Inst. and Bidder must fill out for a NEW bid ACCEPTANCE This document contains an ___???_______for the furnishing of meals (unitized if applicable) to be served to children participating in the Child and Adult Care Food Program, established by the United States Department of Agriculture (7 CFR Part 226) and sets forth the terms and conditions applicable to the proposed procurement. Upon acceptance, this document shall constitute the contract between the company making the proposal and the Institution named above. Contract Commencement Date: _______________________________________ Contract Expiration Date: ____________________________________________ . Prompt payment discount _____________% for payment within ___________ days. *Total Contract Awarded:_________________________________________ ________________________________________________ ____________________________________ Signature of Institution Representative (Vendor) Authorized Representative ________________________________ _____________________________ Title Title Date:_____________________ Date:________________________ Institution Representative and/or Vendor Authorized Representative reserves the right to cancel this contract by giving 15 (fifteen) days written notice prior to termination of services.
Large Purchase Procedures What CACFP Inst. and Bidder must fill out for a NEW bid Bid Results – Notification to Bidders • Written notification to all bidders • State Agency provides template letters • Award of Successful Bid • Notice of Unsuccessful Bid (IFB) • Notice of Unsuccessful Bid (RFP)
Large Purchase Procedures Submit to the State Agency (OSSE) • A minimum of 3 bids must be submitted (to show open and free competition) • All the bids that the Institution received during the acceptance period • A copy of the winning bid • Remember, if done properly, and satisfied with the services, there is an option of 3 one-year RENEWALS
Recap • Be specific about: • Goods and Services • Needs and Requirements • Desired Quantities • Must-Haves vs Wants
State What You Need • Number of locations & meals • Menu preferences • Product specifications • Brand names or specific products desired • Product type (i.e. fresh, canned, frozen) • Product quality (i.e. USDA grade) • Packaging requirements • Family Style vs. Single Serve • Delivery requirements