1. PROCUREMENT OF COMMERCIALLY VENDED MEALS
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2. OBJECTIVES Local Education Agency (LEA) will:
Correctly complete the commercial vendor procurement process
Receive Approval From State Agency
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3. COMMERCIAL VENDOR DEFINITION
A commercial vendor is an enterprise that provides complete meals or meal components
A vendor cannot provide employees or manage any aspect of the school food service at the LEA
NOTE: LEAs purchasing meals directly from another LEA are exempt from the procurement regulations. A sample LEA to LEA contract (#56) is available in SNEARS
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4. PROCUREMENT PROCESS GUIDELINES FOR ALL LEAs
All LEAs must execute a new commercial vendor contract for school year
Exception: LEA executed multiyear contract for
Federal procurement regulations and state public school contract law must be followed
LEA must guarantee open and free competition
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5. PROCUREMENT STEPS Determine procurement process:
Formal process
Informal process
Develop specifications
Advertise for bids or solicit proposals
Receive & evaluate bids/proposals
Award contract
Manage contract
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6. STEP 1- BID OR QUOTE? Non-Public Schools
Formal bid process required if total cost of contract is at or above $150,000
Informal (“small purchase”) process allowed if total cost of contract is below $150,000
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7. STEP 1: BID OR QUOTE? Public & Charter Schools
Based on public school contract law (more restrictive than federal regulations), formal bid process required if:
LEA has a Qualifying Purchase Agent (QPA), and total cost of contract exceeds $36,000 OR
LEA does not have a QPA and total cost of contract exceeds $26,000
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8. TOTAL COST OF CONTRACT To determine total cost of contract, multiply:
# of meals needed per day, by type X
Unit price per meal, by type
Annual number of meal service days
Current numbers can be used to project total costs for school year
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9. EXAMPLE
# of meals needed per day: 100 Unit price per breakfast: $1.25 Unit price per lunch: $2.40 Serving days in school year: 165 Breakfast: 100 X $1.25 X 165 = $20,625 Lunch: 100 X $2.40 X 165 = $39,600 TOTAL COST: $60,225 Public/Charters: Formal process required Non-Public: Informal process acceptable
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10. STEP 2: SPECIFICATIONS
Required for formal or informal procurement process
Detailed specifications must be developed by LEA
Specs must include required forms (next slide)
All contract requirements must be included
Include as much information as possible to allow vendor to give realistic proposal
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11. REQUIRED FORMS TO INCLUDE WITH SPECS
LEA must include the following required forms with specs:
Certificate Regarding Debarment(#130)
Certification Of Independent Price Determination (#131)
signed by vendor & LEA
Disclosure Of Lobbying Activities (#132)
Certification Regarding Lobbying (#133)
Vendor must submit completed forms with proposal
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12. SPECIFICATION GUIDANCE
Specs should detail general and specific conditions or requirements.
Examples include:
Length of contract (1 year or multiyear)
Type of meals (breakfast, lunch, snack)
# components (all 5 or only certain ones)
# days, location(s) and time(s) for meals
Equipment needs, if any
Type of meal service (i.e., bulk, prepack)
Menu development (LEA or vendor)
Vendor compliance with HACCP standards
Vendor compliance with meal pattern regulations
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13. SUGGESTED FORMS TO INCLUDE WITH SPECS
School Lunch Meal Pattern (#198)
School Breakfast Pattern (# 91)
After School Snack Meal Pattern (#71)
HACCP Production Record (#51 or #83)
School Calendar
Meal patterns and production records are available on the Dept. of Agriculture web site at:

14. STEPS 3 AND 4: FORMAL PROCUREMENT PROCESS
Advertise and evaluate bids:
Publicly advertise Invitation For Bid (IFB)
Publicly open bids at time and place specified in the IFB
Evaluate bids to determine if all conditions and requirements in specs were met
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15. STEPS 3 AND 4: INFORMAL PROCUREMENT PROCESS
Solicit quotes & evaluate proposals:
Request for Proposals (RFP) must be solicited by one or more of the following methods:
Letters to potential vendors (minimum of 3)
s to potential vendors (minimum of 3)
Public advertisement
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16. STEPS 3 AND 4: INFORMAL PROCUREMENT PROCESS
Solicit quotes & evaluate proposals (cont’d):
Specs in RFP should include all significant evaluation factors and scoring criteria LEA will use to make selection
Evaluate proposals received:
Determine if all requirements and conditions in specs were met
Rank and score proposals
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17. STEP 5: AWARDING THE CONTRACT
Formal procurement process (IFB):
Award contract to the responsible bidder whose bid met conditions/requirements and is lowest in price
Informal procurement process (RFP):
Award contract to responsible vendor, whose proposal is most advantageous to LEA, price and other factors considered
State Agency LEA/Vendor Contract (#233) must be used in its entirety
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18. CONTRACT TERM Contract can be awarded for a term of:
1 Year; or
2 Years; or
3 Years
Length (term) of contract:
Determined by LEA
Must be included in specs
If multi-year contract (2 or 3 years) is awarded, unit price per meal must remain the same for the entire contract term
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19. STEP 6: MANAGING THE VENDOR CONTRACT
LEA must assure that vendor follows all requirements/regulations.
For example, LEA is responsible to assure vendor:
Provides meals that meet current meal pattern requirements in correct portion sizes
Completes a portion of daily production records if required in specs
Provides recipes and nutrition facts labels when an administrative review is conducted
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20. STEP 6: MANAGING THE VENDOR CONTRACT
For example, LEA is responsible to assure vendor (cont’d):
Maintains HACCP principles
Provides daily delivery slips
Follows all conditions/requirements included in specifications and contract
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21. STATE AGENCY APPROVAL
LEAs must submit all required documents indicated on the LEA/Commercial Vendor Contract Checklist (#199) by September 30 as part of annual agreement process
Multi-year contracts must be submitted annually
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22. REQUIRED DOCUMENTS If formal procurement process used, submit:
Actual copy of published notice of Invitation For Bid (IFB)
Copy of IFB
Record of Bids Received
Executed Contract (#233) with Original Signatures and Date Signed
For Public & Charter schools only: Certified Board Minutes Awarding Contract (Must contain price vendor is charging for each meal type)
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23. REQUIRED DOCUMENTS If informal procurement process used, submit:
Documentation of solicitation of quotes (letters or s sent to potential vendors or actual copy of public advertisement)
Record of Quotes Received
Executed Contract (#233) with Original Signatures and Date Signed
For Public & Charter schools only: Certified Board Minutes Awarding Contract (Must contain price vendor is charging for each meal type
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24. CONTRACT RENEWAL
After the initial contract term of one, two or three years, LEA can renew if the following requirements are being met:
Services are being performed in an effective and efficient manner
Terms and conditions are not substantially changed from original contract
Any price increase in renewals cannot exceed quarterly index rate in effect at time of renewal
Total length of original contract term and any renewals cannot exceed 5 consecutive years
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25. ADDENDUMS Beginning school year 2014–2015:
Addendums will be acceptable. Required language referencing addendums has been added to state agency lea/vendor contract template
A required state agency LEA/vendor addendum and document checklist will be available
Guidance on using the quarterly index rate for allowable vendor meal price increases will be available
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26. PROCUREMENT RESOURCES
Documents are available in the “Vended Meals” tab under resources in SNEARS:
Certificate Regarding Debarment (#130)
Certification Of Independent Price Determination (#131)
Disclosure Of Lobbying Activities (#132)
Certification Regarding Lobbying (#133)
Commercial Vendor Fact Sheet (#187)
LEA/Commercial Vendor Contract Checklist (#199)
LEA/Vendor Contract Template (#233)
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