1. Food Procurement Program
Presenter: Katie Schmitt
Southeast Service Cooperative
Cooperative Purchasing Technician
September 2013

2. Food Procurement Program Overview
Legal Requirements for Food Procurement
Cooperative’s Role and Responsibilities
RFP Process and Timeline
RFP Document Review
Program Benefits for Members
School’s Requirements
Next Steps
September 2013

3. Food Procurement Program Minnesota Service Cooperatives 8 regional cooperatives 50+ statewide purchasing contracts Categories: Office Supplies & Equipment School Supplies Buildings & Grounds Athletics Technology Digital Learning Vehicles
September 2013

4. Why are we developing a food procurement program?
Service cooperatives in western half of the state have had a program in place for years.
It is time to Request for Proposals (RFP) for the school year. We now have an opportunity to build a statewide program through Minnesota Service Cooperatives (MSC).
As part of the MSC RFP, service cooperatives have access to experienced bid facilitators, contract negotiators and nutrition experts.
Many districts conduct their own RFP or quotes. We can reduce duplication of work through a combined RFP and free up time to focus on important tasks.
Pooling resources and buying power will create better leverage for pricing and product availability.
We want to support you in providing quality, nutritious food for students.
September 2013

5. What to Expect from your Service Cooperative
Honesty & Transparency
Regional Support
Research
Innovation
Communication
Collaboration & Organization
Expertise
Our members come first… always!
September 2013

6. Legal Requirements for School Food Authority (SFA) Food Procurement
The SFA Food Procurement process is defined by the USDA
and the State of Minnesota in Federal laws and State Statutes.
Conduct formal Bid/RFP to select supplier
SFA spend $100K +
Conduct weekly quotes and retain record for one year
SFA spend under $100K
September 2013

7. Bid/RFP Guidelines for SFA’s at $100K in spend
The RFP/bid process must include all suppliers serving their area. 1
The RFP/bid cannot be written by a potential respondent. 2
The RFP/bid cannot be written in such a manner that it favors one supplier. 3
September 2013

8. Bid/RFP Guidelines for SFA’s at $100K in spend
The primary foundation of the award must be price. 4
The RFP/bid may be conducted by a consortium, provided the consortium is made up solely of SFAs. 5
If a SFA utilizes a purchasing group, that purchasing group supplier must have been selected by utilizing the formal RFP/bid process. 6
September 2013

9. Meetings with Brokers and Suppliers
Write RFP to select a primary distributor(s)
Total volume will drive discounts
Broker knowledge of RFP important for best pricing
Expect healthier products – whole grain, low sodium, gluten free...
Summer 2013
Met with 17 different brokers & suppliers
September 2013

10. Meetings with Food Distributors
Summer 2013 meetings: Apperts, Cash WA Distributing, FSA, Indianhead, Reinhart, SW Wholesale, Sysco, Upper Lakes Foods, US Foods, and Variety Foods.
Knowledge gained:
Delivery size and location effect cost.
Requiring a sales representative to visit onsite to take the order increases cost.
Request to delay the RFP deadline due to obtaining price concessions over the holiday season.
September 2013

11. MSC RFP 14.1 Food & Kitchen Supplies
DRAFT
MSC RFP 14.1 Food & Kitchen Supplies
Key items in this draft include:
A “Top Selling Items” List
Distributors would be asked to request price concessions from the suppliers based upon the anticipated volume of these items
A “Delivery Fee Per Case”
This would be applied to all items a distributor inventories that are not on the “Top Selling Items” list.
Landed Cost + Fee = Member Price.
September 2013

12. MSC RFP 14.1 Food & Kitchen Supplies
DRAFT
MSC RFP 14.1 Food & Kitchen Supplies
Volume incentive program rewarding program usage:
 % of annual spend purchased from the awarded vendor
 average size of delivery
 combination of the two
Option to propose “tiered” pricing based on anticipated order size and/or location
Awards could be made regionally or by school clusters that may span cooperatives’ borders
Propose “Brown Box” Commodity delivery program
Option to propose a surcharge for requiring sales reps to take food orders onsite or a discount for placing orders online
September 2013

13. DRAFT MSC RFP 14.1 Food & Kitchen Supplies
Product Samples
MSC reserves right to request samples from distributors for testing
Establishing Food Service Advisory
Develop/refine RFP documents
Assist in reviewing proposals received
Test Products, as needed
September 2013

14. Food Procurement Program
Timeline:
This past spring, a notice was ed to schools for the RFP for Food and Kitchen Supplies in FY 2014.
Over the summer, MSC met with food brokers and distributors to gain insight on what they needed to be able to provide low pricing and competitive proposals
Schools to submit top 50 items they purchase by October 1, 2013.
Schools will receive a survey by October 15, 2013 to estimate FY2015 product usage. Responses are due by November 4, (Not bound to estimated quantities.)
Schools wishing to participate in the program will need to sign a Letter of Commitment and return it by November 4, 2013.
Food Procurement Program
September 2013

15. Food Procurement Program exact dates TBD
Timeline:
The RFP will be written to include top items purchased by participating schools Oct-Dec 2013.
RFP documents will be published and distributed to potential vendors in January 2014.
Vendor proposals will be due in February 2014.
Proposal evaluations will be completed and award(s) will be made by the end of March 2014.
Participating schools will be notified of the award(s) in March/April 2014.
Food Procurement Program exact dates TBD
Nov-18

16. Schools: Responsibilities Submit Top 50 Items form by October 1
Complete Top 300 survey by November 4 to estimate quantities
Sign Letter of Commitment by November 4
Participate in the vendor selection process
Purchase a certain percentage (TBD) of food and kitchen supplies from the awarded vendor during the school year (excludes milk, bread, and other items not available from the awarded vendor)
Provide feedback throughout the vendor’s contracted term
Schools:
September 2013

17. Responsibilities Service Cooperative:
Communicate the RFP/bid program and progress to school superintendents, business managers, and food service directors
Collect Top 50 Items and coordinate Top 300 survey
Compile Top 300 quantities for participating schools
Write the RFP to reflect participating schools’ needs
Publish the RFP and distribute to potential vendors
Collect proposals, compile results, check references, cost/value analysis, and perform product testing
Coordinate vendor presentations; vendor selection based on RFP criteria
Develop contract terms with selected vendor(s)
Provide participating schools with program details (how to order, pricing, six week cycle menu, etc.)
Monitor vendor(s)/program to enforce contract terms
Provide regional support for schools
Service Cooperative:
September 2013

18. Food Procurement Program
Benefits:
Significantly reduces the amount of time spent on bidding and quoting
Access to a six week cycle menu to help with meal planning
Conforms to the State of Minnesota bid laws and the US Department of Agriculture food program procurement requirements
Offers better pricing and reduces delivery charges by leveraging multi-district buying power
Improves access to high-quality products by creating a customer network that is attractive to distributors
Increases communication and builds relationships among food service professionals
Provides access to statewide food procurement resources, training opportunities and expertise
Food Procurement Program
September 2013

19. Next Steps for Schools
Discuss the new Food Procurement Program with decision makers at your school
Consider serving on the Food Service Advisory Committee
Complete Top 50 Items by October 1
Complete Top 300 Survey between October 15 -November 4
Complete and Sign the Letter of Commitment by November 4 (we will send this out ahead of time for your review)
September 2013

20. Food Procurement Program
Updates will be posted at:
September 2013

21. Questions?
Contacts:
Katie Schmitt SSC Program Technician (office) (cell) Doug Koch MSC Statewide Food Bid Facilitator
September 2013