vended programs sfsp fy 05. what is a food service management company? any organization (including...
TRANSCRIPT
VENDED PROGRAMS
SFSP FY 05
What is a Food Service Management Company? Any organization
(including commercial for profit companies, schools, or private nonprofit organizations) which provides unitized meals under a contract with a program sponsor.
Definition of Food Service Management Company Vended Sponsor
A sponsor:
Which contracts with any commercial enterprise, SFA or non profit organization for preparing unitized meals, with or without milk, for use in the SFSP, or for managing a sponsor’s food service operations in accordance with the limitations set forth in 7CFR 225.15 and the Administrative Guidance for Sponsors.
Why purchase meals from a FSMC? No food preparation facility;
Lack of trained personnel to prepare meals;
No site or equipment available for food preparation or storage;
Unable to properly store and transport meals to sites.
Vended Sponsors
Must ensure that program procedures and guidelines are met.
Remain legally responsible for the food service operation
Adhere to contract with FSMC. (Contract is not with USDA or SA)
Vended Sponsors Should… Pay particular attention to delivery,
storage, and time restrictions;
Have alternate menu plans
Monitor field trips closely
Ensure food quality and service
Maintain acceptable communications – phone and/or radio for delivery issues
FSMCs Cannot… Order meals for
sponsor Maintain sponsor
records Submit claims Train and
monitor admin and site staff
Enforce corrective action
Announce availability of program meals
Approve F/R applications
Prepare program application
To Bid or Not to Bid??? Contact the State agency for an approved
vendor list.
If you are a private on profit organization and your food service contract is over $100,000, you must meet the competitive bid process requirement established by State bid law.
If you are a governmental organization and your food service contract is $7,500 or more, you must meet the competitive bid process requirement established by State bid law.
Invitation to Bid and Contract7CFR 225.6(h)(2)
A standard prototype is provided by the State agency. (FNS-688)
It contains information and forms used for submitting a bid.
Upon acceptance by both parties it may become the contract.
Five Steps of the Competitive Bid Procedure
The sponsor must:
- prepare an Invitation for Bid (IFB) package;
- publicly advertise IFB not less than 14 days before bids are opened;
- notify State agency at least 14 days before the bid opening if contract is valued over $100,000
- publicly open and post all bids which are submitted;
- submit required documents to the State agency;
- receive approval from State agency before accepting or contracting with the FSMC.
Documents to Submit to the State Agency
Copies of the bid packet/contract;
- Copies of all bids received;
- A certificate of independent price determination;
- A statement concerning the sponsor’s reason for selecting the chosen Food Service Management Company.
These must be submitted and approved by State agency prior to contract acceptance and award.
IFB must include… Cycle menu
approved by SA Food specs and
meal quality standards
Special meal requirements or dietary modifications
Statement requiring compliance with SFSP regulations
Nonfood items essential for meals
Location of sponsor sites and estimated range of meals required
Bid Bond Required if
value of contract is over $100,000
Between 5-10 % of the value of the contract
Bonding company must be listed on US Dept Treasury circular 570
Bid SpecificationsSponsor Responsibilities Site
Information – name, address, delivery locations, times of meal service, days of operation
Cycle Menu Meal
Requirements
Reimbursable Meals - sponsor required to pay only for eligible meals
Quality Control Unitized meals Meal Range
Adjustments
Ensuring Food Quality and ServiceSponsor Representatives: Must provide a list of all approved
sites, the number of meals to be served, and the times of meal service to the FSMC;
Must inform the FSMC of cancelled or terminated sites;
Must agree to pay FSMC for meals delivered in accordance with the contract;
Must document problems with the vendor
Ensuring Food Quality and ServiceTrain Site Staff to:o Count meals when they are deliveredo Contact sponsor reps if changes in
the number of meals ordered need to be adjusted
o Note discrepancies on the delivery receipt that both site and delivery person sign;
o Inspect food items delivered by FSMC;
o Reject unacceptable food items;o Contact sponsor rep if there are
problems with the vendor
Food Service Management Company Requirements
FSMCs intending to vend to SFSP sponsors are required to:
Register and be approved by the SA
Have all applicable Health Dept certifications and inspections up to date and deficiencies corrected
SA inspection Records must be maintained for
current year + three years
FSMC Requirements(cont.)
- use the contract developed by the State agency for bid process (7 CFR 225.6(h)(2));
-- ensure meals conform to the cycle menus and meal quality standards and specifications;
- deliver meals to the sponsor’s sites at the times set forth in the contract;
- be aware that changes in the number of meals ordered shall be made by the sponsor;
FSMC Requirements(cont.)
refrain from subcontracting meals, with or without milk, or for the assembly of the meal;
- submit invoices promptly at the end of
each month as required by the sponsor;
- be responsible for any excess costs the sponsor incurs by obtaining meals from another source (7 CFR 225.6 (h)(2)(xiii)).
FSMC Requirements Contract Responsibility –
Private contract between FSMC and the sponsor
USDA/SA has no jurisdiction over contract execution
Special Account (7CFR 225.6(f)) Sponsor deposit payments
received from SA in a special account
Both sponsor and FSMC must authorize any check drawn from the account
Ensures that FSMC receives payment for eligible meals.
Awarding the Contract Responsive and
responsible bidder Use services of
minority-owned businesses
Should award at least 2 weeks before the program begins
Awarding the Contract SA approval –
contracts > $100,000
Performance Bond – required from a surety co listed in Dept of Treasury Circular 570 if >$100,000
Bond must be no < than 10% & no > 25% of value of the contract. Must be available to sponsor within 10 days of contract’s award
Award conference
Administering the Contract
Food Service Sites
Approved Meal Levels
Adjusting Meal Deliveries
Planning Delivery Routes
Communication Reimbursement Administrative
Reviews
Sponsor Disallowances
Excess meals Allowing meals
to be eaten off site
Failure to serve meals as a unit
Claiming meals served to adults
Sponsor Disallowances Serving meals
outside approved timeframes
Serving meals in excess of approved levels
FSMCs Disallowances Delivering non
unitized meals Delivering
spoiled meals Delivering
meals outside designated delivery times
Delivering meals with components less than required
Delivering meals with missing components
Changing menus or unapproved substitutions
Default of Contract Either party
may break the contract with a 30 day advance notice
Sponsor may terminate due to non performance
Default of Contract Notify FSMC and
surety company of specific non performance
If FSMC takes no immediate CA, surety co will find another FSMC
FSMC liable for difference in price
Best Sponsor – Vendor Relationships Understand
and follow regulations
Understand both parties responsibilities
Good Communications