New Contracts

Requirements for a New Food Service Management Contract

School Year 2014-15

These requirements apply to school food authorities that participate in School Nutrition Programs (SNPs), contract with a company for the management of their school food service, and are obtaining a new food service management contract for school year 2014-15. (For requirements for renewing an existing management contract, refer to the document 2014-15 Renewals of Management Contract, which will be available on the Minnesota Department of Education (MDE) website in February 2014.)

Requirements for management contracts do not apply to contracts for vended meals (catering contracts).

The documents and templates referred to below are available on the SNP/Procurement and Contracts/Food Service Management Contracts page of the MDE website (http://education.state.mn.us/MDE/SchSup/FNS/SNP/ProcCont/FoodServManag/index.html).

School Food Authorities Required to Obtain New Management Contracts

According to MDE records, school year 2013-14 was the final renewal year of the food service management contract for the school food authorities listed below by sponsor number. These school food authorities may not renew their management contract for school year 2014-15:

1000003521

1000003870

1000003999

1000004027

1000004111

1000003821

1000003881

1000004003

1000004061

1000004114

1000003835

1000003899

1000004005

1000004064

1000004121

1000003841

1000003922

1000004007

1000004069

1000004380

1000003848

1000003934

1000004008

1000004077

1000004400

1000003854

1000003952

1000004015

1000004085

1000006498

1000003860

1000003957

1000004017

1000004091

 

1000003861

1000003959

1000004021

1000004097

 

1000003866

1000003993

1000004025

1000004100

 

Notify MDE immediately if your school food authority:

- Is in the final renewal year of a food service management contract in school year 2013-14 but is not listed above.
- Is listed above but does not plan to continue having a food service management contract for school year 2014-15.
- Does not currently have a food service management contract but plans to obtain a contract that will start in school year 2014-15.

Request for Proposals - Templates

A school food authority planning to obtain a new food service management contract for school year 2014-15 should start its procurement process in winter 2014 so that the process can be completed before the end of the school year. For more information about planning the procurement steps and timelines, refer to the document Procurement Procedures and Timelines for Obtaining a Food Service Management Contract.

The first step is to draft the Request for Proposals (RFPs). The school food authority chooses which of the two prototype templates to use for its RFP.

- RFP for Management Contract with Fixed Meal Prices

This type of RFP requests fixed prices for each meal type. The fixed meal prices will include the company’s total charges for preparing the meals, management costs and profit.

In addition to the RFP template, the RFP-Attachments spreadsheet has documents that must be attached to the RFP.

Value of U.S. Department of Agriculture (USDA) Foods: The fixed meal prices do not take into account the value of USDA Foods that may be available to the company during the contract year. In a fixed meal price contract, the company fully credits the school food authority for the value of USDA Foods that are received during the contract year.

- RFP for Cost-Reimbursable Management Contract with Fixed Administrative Fees

This type of RFP requests fixed management fees that the company will charge, and the maximum costs that the school food authority will need to reimburse to the company. The school food authority monitors that the company has requested reimbursements only for actual and allowable costs, after subtracting applicable discounts, rebates, and credits received by the company. Reimbursement for costs is limited to the lesser of (1) the maximum per-meal costs in the company’s proposal or (2) the actual reimbursable costs incurred by the company.

In addition to the RFP template, the RFP-Attachments spreadsheet has sheets that must be attached to the RFP.

Value of USDA Foods: With a cost-reimbursable contract, the company will notify the school food authority of the amount and value of USDA Foods received during the contract year. The use of USDA Foods reduces the costs that need to be reimbursed to the company.

A school food authority may submit its RFP to MDE for review prior to distributing to companies. Allow two weeks for review if submitted to MDE.

Contract Templates

A school food authority must use one of the two management contract templates from the MDE website:

- Management Contract – Fixed Meal Prices
- Management Contract – Cost-Reimbursable with Fixed Administrative Fees

A school food authority may add provisions to the contract template if the additional provisions are needed and are consistent with the standard contract provisions. Any additional provisions must be organized and numbered to link to the standard contract provisions that are being added to or modified.

Send Documents to MDE

1. Send Draft Contract and Procurement Information to MDE for Review

(a) Send a copy of the draft, unsigned management contract for review to Food and Nutrition Service (FNS) as early as possible and not later than May 2014. The draft contract may be signed by the company, but not the school food authority. FNS will respond either to confirm that the contract meets program requirements and may be signed by both parties or to specify required revisions. Allow two weeks for FNS response.

(b) Also send the completed Procurement Description Form and attachments.

Send the draft contract and procurement information to MDE: E-mail to mde.fsmc@state.mn.us or fax to 651-582-8501, attention FSMC Review. Do not mail.

2. Send Signed Contract to MDE

After MDE has approved the draft contract for signature, or after any required changes have been made, send a copy of the final signed contract to MDE. MDE must receive the signed final contract and the procurement information before the school food authority can be approved to participate and claim program reimbursements for school year 2014-15.

Send the signed final contract (and procurement information if not already sent) to MDE: E-mail to mde.fsmc@state.mn.us or fax to 651-582-8501, attention FSMC Review. Do not mail.