Contracted Food Service Procurement. Process/Approval and Renewal

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1 Contracted Food Service Procurement Process/Approval and Renewal

2 Welcome Kristina Shelton, Principal Consultant Illinois State Board of Education (ISBE)

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5 Contracts/Procurement Webpage

6 Food Service Management Company vs. Vendor Food Service Management Company (FSMC) Contracted to manage any aspect of the school food service $25,000 threshold Vendor Provides meals only (prepackaged, preplated, bulk); does not manage any aspect of the school food service $150,000 threshold

7 Contracts/Procurement Webpage

8 Federal Regulations 2 CFR Part 200 o UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS 7 CFR Part 210 o NATIONAL SCHOOL LUNCH PROGRAM

9 The School Code of Illinois 105 ILCS 5/ In excess of $25,000 (FSMC) Competitive sealed bids At least one public notice at least ten days before the bid date in a newspaper published in the district, or in a newspaper of general circulation in the area of the district Bids are publicly opened

10 Invitation for Bid (IFB) and Contract Not Request for Proposal Remove all proposal language!

11 Invitation for Bid (IFB) and Contract Competitive sealed bid process Item/service can be specifically defined Two or more responsible bidders are willing and able to compete effectively Publicly advertised publish in district (if there is one); publish in other newspaper(s) of general circulation

12 Invitation for Bid (IFB) and Contract (continued) Bids are solicited from an adequate number of known suppliers Minimum 4 Bids are opened publicly 5 potential bidders Contract is awarded to the responsiveresponsible bidder lowest in price

13 Invitation for Bid (IFB) and Contract (continued) Any or all bids may be rejected if there is a sound documented reason Results in a fixed-price contract Invitation for Bid becomes the contract (no other documents signed) No negotiations

14 Local and General Laws, Regulations, and Policies It is the school food authority s (SFA s) responsibility to ensure all bid documents are in compliance with: Local laws Local regulations Local policies, including school board policies General legal aspects Consult SFA s legal counsel.

15 Local and General Laws, Regulations, and Policies (continued) The SFA is required to establish written procurement procedures Reflect applicable State and local laws Adhere to the standards set forth in the federal regulations Include a written code of standards of conduct

16 Competitive Procurement Accountability to taxpayers Established procedures must be followed Free from real or perceived conflicts of interest

17 Competitive Procurement (continued) Foster free and open competition Level playing field Contractors have the same opportunity to compete Procurement procedures and documents must not: Unduly restrict competition Eliminate competition

18 Competitive Procurement (continued) ALL procurements, regardless of dollar value, must be competitive.

19 Contracts/Procurement Webpage

20 Contracts/Procurement Webpage

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23 IFB-Contract Process

24 IFB-Contract Process (continued)

25 IFB-Contract Process (continued)

26 IFB-Contract Process (continued)

27 IFB-Contract Process (continued) When IFB draft is completed: form and IFB directly to: or Please submit documents only once. For example, do not fax and .

28 Where do I start? Establish a committee District/student needs Menu development Bid evaluation ISBE prototype Legal counsel Other districts Previous contracts and solicitations use as a resource only

29 IFB Development Use the Invitation for Bid and Contract Prototype provided by ISBE as the foundation or springboard for the solicitation.

30 IFB Development (continued) Add, delete, or revise items to meet the specific needs of the school food authority (SFA) while still ensuring the document meets all federal and state regulations and statutes.

31 Instructions and Timeframes Bid submission Who? What? When? Where? How? Pre-bid conference? Mandatory attendance? USDA does not recommend required attendance

32 Detailed Program Description Type of meal program(s) offered Number and/or types of schools Facility size (i.e., building expansion) Type(s) of meal service(s) On-site Satellite Grade levels/enrollment

33 Detailed Program Description (continued) Child Nutrition Programs National School Lunch Program School Breakfast Program Afterschool Snack Program Special Milk Program Child and Adult Care Food Program Summer Programs: Summer Food Service Program or Seamless Summer Option

34 General Contract Conditions (continued) Bid Bond must not exceed 5 percent (of total estimated contract cost) Performance Bond must not exceed 20 percent (of total estimated contract cost) Detailed protest procedures Administrative, contractual, or legal remedies

35 Responsibilities of the School Food Authority Ensure food service is in conformance with agreement and policy statement Retain control of food service aspects and prices to be charged Monitor through On-Site Reviews Multiple-site school food authorities only Once annually prior to February 1

36 Responsibilities of the FSMC/Vendor Deliver or serve food as requested Adhere to 21-day cycle menu for first 21 days of service (Exhibit B) Follow Menu Planning Approach for duration of contract, including renewals

37 Federally-Donated Commodities Contractor must credit for all commodities received in full prior to the expiration of each contract term, whether they are used or not Year-end reconciliation

38 Federally-Donated Commodities (continued)

39 Terms and Termination of Contract Effective dates: usually July 1 June 30 (or upon written acceptance, whichever occurs last) Options to renew yearly not to exceed four additional terms Terminated for cause or for convenience with 60-day written notification

40 Terms and Termination of Contract (continued) Must use measurable index The measurable index recommended by the USDA is the Consumer Price Index for All Urban Consumers (CPIU) Food Away From Home May be capped by a flat percentage

41 Additional Contract Items Insurance Requirements Bidder Responsibility and Bid Responsiveness Criteria Bid Summary Certifications Exhibits

42 Bid Summary

43 Criteria Bidder Responsibility and Bid Responsiveness (continued)

44 Criteria Bidder Responsibility and Bid Responsiveness Must evaluate on a pass/fail basis Must be objective, not subjective Must establish minimum standards Must define how a bidder can demonstrate compliance What must a bidder do or provide to demonstrate compliance?

45 Criteria Bidder Responsibility and Bid Responsiveness (continued) The criteria should be included in the body of the contract whenever possible Criteria must not place unreasonable requirements on bidders in order to qualify to do business cannot restrict competition [7 CFR (c)(1)(i)]

46 Criteria Bidder Responsibility and Bid Responsiveness (continued) The determination of responsibility and responsiveness lies with the school board; be sure all grounds/reasons for accepting or rejecting a bid are outlined in the board minutes

47 Criteria Bidder Responsibility and Bid Responsiveness (continued) Bidder Responsibility Performance history Financial stability

48 Criteria Bidder Responsibility and Bid Responsiveness (continued) Bid Responsiveness Experience with school food authorities Experience with nutritional guidelines Staffing positions Staff training programs/meetings Marketing plan On-site evaluations

49 Criteria Bidder Responsibility and Bid Responsiveness (continued) One list that consolidates criteria: All current and former clients over past number of years Name of school/district Address Contact name and phone number Number of years service Type of service (on-site, satellite, vended) Types of meals served (breakfast, lunch) School/district size number meals served Demographics If contract lost reason

50 Exhibits A: School Data or Site Data Include districts/schools with which you have a school-to-school agreement Include summer programs if applicable Specify data source; e.g., B: 21-Day Cycle Menu

51 Exhibits (continued) C: Menu Planning Approach D: Commodities School Year 2018 Annual Commodity Order

52 Exhibits (continued) E: Sponsor Claims for Reimbursement Last Complete School Year F: Sponsor/Site Claims for Reimbursement Current School Year Sponsor claims, all months to current date

53 Exhibits (continued) G: Staffing Patterns Payroll costs Exhibit H: Wellness Policy Others as Necessary (i.e., school calendar) May NOT request a budget be provided by bidders not applicable to a fixedprice contract

54 IFB-Contract Process (continued) Note: when submitting documents, please... Do not bind or staple documents use paper clips or binder clips instead Do not submit documents twice; e.g., fax and mail only one copy needed Include appropriate submission forms

55 IFB-Contract Process Step 1 Develop IFB- Contract Submit IFB- Contract to ISBE (Submission Form) (mail, fax, ) Allow 30 days for initial review

56 IFB-Contract Process (continued) When IFB draft is completed: form and IFB directly to: or Please submit documents only once. For example, do not fax and .

57 IFB-Contract Process (continued) Receive Compliance Notice Provide to Potential Bidders Public Advertisement ILCS at least 10 days USDA recommend 45 days ISBE minimum 28 days

58 IFB-Contract Process (continued) Advertise and Distribute Bid Packets 10 Days Pre-Bid Conference Issue Addenda, Q & As 18 Days 7 Working Days Bid Opening

59 Pre-Bid Conference Sign-in sheet for all attendees Provide information and clarification Answer questions Conduct a facility tour Discover ambiguities, errors, or omissions in the IFB

60 Pre-Bid Conference (continued) Tell prospective bidders: Nothing discussed is formal unless specifically changed by written addendum or amendment Contractor cannot propose clarifications, exceptions, or terms regarding the contract must reject! NO alternate bids allowed must reject! Instructions, page 5

61 Addenda/Questions Addenda/Amendments AND Questions and Answers Information provided is not considered official until issued in writing! Must be reviewed by ISBE prior to dissemination Questions and Answers, also!

62 Opening Bid Handling the Bids Time/date stamp Record receipt on log Secure them (do not open!) Open at the designated time and place Read aloud Late bids return unopened

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65 IFB-Contract Process (continued) Instructions, page 13

66 IFB-Contract Process (continued)

67 IFB-Contract Process (continued) DO NOT allow your Board of Education to approve the contract award pending the State s determination! Results MUST be reviewed by ISBE and compliance notification received.

68 IFB-Contract Process (continued) Bid Opening Submit Solicitation- Bid Results to ISBE (Pre-Contract Award Summary Sheet) (mail, fax, ) Receive Notice to Award Contract Allow 15 days for review

69 Bid Summary- Winning Bid

70 IFB-Contract Process (continued) Award Contract Submit Final Contract Documents to ISBE (Post-Contract Award Summary Sheet) (MUST MAIL)

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72 IFB-Contract Process (continued) Instructions, pages 14 and 15

73 IFB-Contract Process (continued)

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76 IFB-Contract Process (continued) Timeline 3 4 months!

77 Renewals

78 Renewals - OK Only Four renewals allowed Number of schools new schools added; Changes in enrollment decreases and increases in student enrollment and the corresponding change expected in participation; Changes in student/adult meal price meal price changes (determined by the SFA); Per meal cost increases cost increases limited to a measurable index; and/or Meal equivalency minor adjustments to the per meal equivalency as set forth in the contract.

79 Renewals NOT ALLOWED Expiration of the existing contract and renewals; and/or Addition of a program, such as the School Breakfast Program. The scope of the contract has substantially changed; Major changes to the formula for determining meal equivalency; Major shift in responsibilities for SFA/FSMC staff; and/or Revision to the fixed-price contract pricing structure and/or terms for price increases becomes necessary.

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81 IFB-Contract Process (continued)

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83 School to School Agreements Must include name, , phone, address, authorized representatives, RCDT of both schools. Must include all programs and rates. Must include the effective dates. Must include signature of both parties. Must include details of delivery, menus, claims, compliance issues, employees, etc.

84 Questions and Answers Call anytime for assistance