New Contracts

Requirements for a New Food Service Management Contract

School Year 2015-16

These requirements apply to school food authorities that participate in School Nutrition Programs (SNP), have a contract with a company for the management of their school food service, and are obtaining a new food service management contract for school year 2015-16. (This information does not apply to Vended Meals Contracts - see separate information on the Minnesota Department of Education (MDE) website.)

Documents and templates for food service management contracts are available on the SNP/Procurement and Contracts/Food Service Management Contracts page of the MDE website View the Food Service Management Contracts page.

School Food Authorities Required to Obtain New Management Contracts

According to MDE records, school year 2014-15 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 2015-16:

1000003827

1000003868

1000004039

1000004060

1000004364

1000003837

1000003890

1000004050

1000004062

1000006830

Notify MDE if your school food authority:

- Is in the final renewal year of a food service management contract in school year 2014-15 but is not listed above.
- Is listed above but does not plan to continue having a food service management contract for school year 2015-16.
- Does not currently have a management contract but plans to obtain a contract for school year 2015-16.

Request for Proposals - Templates

A school food authority planning to obtain a new food service management contract for school year 2015-16 should start its procurement process in winter 2014. 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 (RFP). 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 a contract with fixed prices for each meal type. The fixed meal prices will include the company’s total charges including administrative costs and profit. Companies will competitively bid on the fixed meal prices, taking into account the direct costs that are expected for the coming year.

The fixed meal prices that are bid by companies do not take into account the value of U.S. Department of Agriculture (USDA) Foods that may be available to the company during the contract year. The management contract will require the company to fully credit the school food authority for the value of USDA Foods as they are received.

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

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

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

This type of RFP requests a contract with fixed management fees that the company will charge, and the maximum costs that the school food authority will have to reimburse to the company. Companies will competitively bid on both the fixed per-meal administrative fees and the maximum direct costs to be reimbursed.

For a cost-reimbursable contract, the school food authority must monitor that the company requests reimbursements only for actual and allowable costs, after subtracting applicable discounts, rebates, and credits received by the company and after using USDA Foods. Reimbursement for costs is limited to the lesser of (1) the maximum per-meal direct costs in the company’s proposal or (2) actual direct costs.

The maximum reimbursable costs that are bid by companies do not take into account the value of USDA Foods that may be available to a company during the contract year. The management contract requires the company to notify the school food authority on an ongoing basis of the type and value of USDA Foods that have been received and have reduced reimbursable costs.

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

A school food authority may submit its RFP to MDE for review prior to distributing to companies. Allow two weeks for response 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 management 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, and must be reviewed by MDE prior to signature.

Send Documents for Review

1. Send Draft Contract and Procurement Information for Review

(a) Send a copy of the draft, unsigned management contract for review to MDE as early as possible. Send by May 2015 if possible so that approval of the school food authority’s 2015-16 SNP application is not delayed. The draft contract may be signed by the company, but not the school food authority. MDE 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.

E-mail the draft contract and procurement information to MDE at mde.fsmc@state.mn.us or fax to 651-582-8501, attention - FSMC Review.

Do not mail.

2. Send Signed Contract

After MDE has approved the contract for signature, send a copy of the signed contract to MDE. MDE must receive the signed contract and the procurement information before the school food authority can be approved to participate and claim program reimbursements for school year 2015-16.

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

Do not mail.