4-1 Use of Feasibility Studies and Consultants National Food Service Management Institute The University of Mississippi

4-2 What is a feasibility study? An evaluation or analysis of the potential impact of a proposed project or program. An evaluation or analysis of the potential impact of a proposed project or program.  Operational analysis  Financial analysis

4-3 Who conducts the feasibility study? Someone with:  Experience in conducting feasibility studies  Experience in foodservice, preferably school foodservice  No connection to equipment sales—fair and neutral

4-4 Components of a Feasibility Study Executive summary Executive summary Background information Background information Proposed foodservice system Proposed foodservice system Comparison of current and proposed systems Comparison of current and proposed systems Projected schedule Projected schedule Final recommendation Final recommendation

4-5 Background Information Description of the organization and services they provide Description of the organization and services they provide Mission of the organization Mission of the organization Goals of the organization Goals of the organization Trends in the environment/organization Trends in the environment/organization Impetus for the proposal Impetus for the proposal

4-6 Proposed Foodservice System Description of the system Description of the system Advantages and disadvantages of the proposed system Advantages and disadvantages of the proposed system Staffing requirements Staffing requirements Space requirements Space requirements

4-7 Proposed Foodservice System, cont. Basic layout and design Basic layout and design  Central kitchen  Receiving kitchen (Satellite) Equipment needs and costs Equipment needs and costs Computer software requirements Computer software requirements Site possibilities Site possibilities

4-8 Comparison of Current and Proposed Systems Staffing Staffing  Number  Skills  Labor costs Food costs Food costs Equipment costs Equipment costs Building costs Building costs Total costs Total costs

4-9 Project Schedule Considers all steps in the process Considers all steps in the process Realistic Realistic

4-10 Final Recommendation Rationale for recommendation Rationale for recommendation Financial data to support recommendation Financial data to support recommendation

4-11 Pro Forma Income Statement Revenue Revenue Expenses Expenses Excess/Loss Excess/Loss Use uniform chart of accounts Use uniform chart of accounts

4-12 Sample Revenue Categories Interest Student Meal Sales Adult Meal Sales Other Meal Sales Contract Meal Sales Other Local Source Revenue State Source Revenue Direct Federal Sources Federal Reimbursement Market Value Commodities Revenue Other Sources Revenue Fund Transfer-In Revenue

4-13 Sample Expense Categories Purchased Food Expense Wages & Salaries Expense General Operating Supply Expense Purchased Technical Services Property Operation, Maintenance, & Energy Other Services Expense Capital Equipment Indirect Costs Fund Transfer-Out Expense Employee Benefits Expense Market Value Commodities Expense Property & Liability Expense Administrative Overhead Expense

4-14 Using Consultants Developing the request for proposals Developing the request for proposals Selecting the consultant Selecting the consultant Working with the consultant Working with the consultant

4-15 What is a Request for Proposals (RFP)? A formal written document developed to invite potential bidders to submit a proposal to provide the services that are requested. A formal written document developed to invite potential bidders to submit a proposal to provide the services that are requested.

4-16 Outline for RFP Cover sheet Cover sheet Proposal instructions and requirements Proposal instructions and requirements Statement of work Statement of work Qualifications of provider Qualifications of provider Evaluation criteria Evaluation criteria

4-17 Cover Sheet Name and location where services required Name and location where services required Type of services required Type of services required Financial terms Financial terms Dates for services, when project starts and ends Dates for services, when project starts and ends Dates and times for any pre-proposal meetings Dates and times for any pre-proposal meetings Address where meeting will be held Address where meeting will be held

4-18 Proposal Instructions and Requirements Contact person (name, address, , telephone) Contact person (name, address, , telephone) Proposal due date Proposal due date Delivery date for completion of project Delivery date for completion of project Proposal evaluation criteria Proposal evaluation criteria Format instructions Format instructions

4-19 Statement of Work Description of need/problem Description of need/problem Summary of organization’s philosophy and operation Summary of organization’s philosophy and operation Description of current facility Description of current facility Description of plans for project Description of plans for project Schedule for project Schedule for project Detailed plan Detailed plan Budget guidelines Budget guidelines

4-20 Qualifications of Provider Type of business Type of business Financial status of business Financial status of business Resumes of principals Resumes of principals Description of support staff Description of support staff References References

4-21 Evaluation Criteria Written proposal Written proposal Credentials Credentials Interview Interview

4-22 Selecting the Consultant Three major areas of consideration: 1. Written proposal 2. References 3. Interview

4-23 Written Proposal Document work with foodservice Document work with foodservice Communicate understanding of the problem/need of the organization Communicate understanding of the problem/need of the organization Present appropriate technical approach Present appropriate technical approach Present realistic timeline/schedule for work Present realistic timeline/schedule for work Demonstrate good written communication skills Demonstrate good written communication skills

4-24 References Checks the following: Reputation of consultant Reputation of consultant Follow-through of consultant Follow-through of consultant Satisfaction of former clients Satisfaction of former clients Capabilities of consultant Capabilities of consultant

4-25 Interview Listening skills Listening skills Oral communication skills Oral communication skills Ability to work with foodservice director and other staff Ability to work with foodservice director and other staff

4-26 Working with Consultants Responsibilities of Project Director include:  Provide prompt feedback  Provide candid feedback  Reply to telephone or requests  Provide relevant information related to project  Provide briefings before meetings  Give feedback after meetings