Food Service Management Companies

ARTs Conference, August 13, 2014

Department of EducationDivision of Program Support

Bureau of Nutrition Programs and Services

Kathryn GM Hodges, Program Specialist IV

If I decide to outsource my food service, what do I need to know?

What will be my responsibilities?

CFR 7 Part 210.16General Responsibilities

• Maintain contract documents

• Retain signature authority on all aspects of FS operations

• Monitor meal service to ensure 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 records checks

• Review annual breakout of costs

• Assure that FSMC is adhering to the meal pattern and requirements

• Monitor food purchases

• Process renewal option before existing contract document expires

General Responsibilities continued

• Retain responsibility for Free and Reduced Price School Meals Family applications 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

• Establish all meal prices

And, last, but not least,

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

Following good procurement practices:Plan Write Specs Advertise Award Manage

This is where you would Write your Specifications:• 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/when

closed)• 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• The State Agency must review the contract

document, or renewals, BEFORE they are signed by the contracting parties

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

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.

(Until we get them posted on the

website, contact me for templates.

Contact Information

If you should have any questions, please contact:

Cheri White at Cheri.White@doe.nh.gov; (603) 271-3860

orKathryn GM Hodges at Kathryn.Hodges@doe.nh.gov

; (603) 271-3861