Procurement with Food Service Management Companies

Per USDA federal school meal program regulations, Local Educational Agencies (LEA's) that contract with Food Service Management Companies (FSMC) must:

  • limit an LEA’s use of nonprofit school food service account funds to costs resulting from proper procurements and contracts;
  • ensure that allowable costs paid from the nonprofit school food service account be net of all discounts, rebates, and applicable credits;
  • send to ODE all bid,  contract and contract renewal procurement documents of FSMC services in advance of document signature execution.

To assist LEAs in preparing bid and contract documents, ODE is providing samples (below). The same document may be used for both the bid proposal and final contract. As a reminder, all bid and contract documents must be approved by ODE before publishing/distributing and signing, respectively.  Revised bid and contract documents to reflect the new school meal pattern requirements will be posted very soon. 

Please note, USDA has recently published policy memo SP 17-2012 Procurement Questions and Answers to Assist in the Implementation of the final rule titled Nutrition Standards in the National School Lunch and School Breakfast Programs. Please review the policy memo for further direction on conducting a bid or contract renewal process for school year 2012-2013 based on the new meal pattern changes.

NOTE: When modifying the following documents, you must use a method that tracks the modifications, such as the “Track Changes” mode. Submitting electronically will result in a more efficient process of approval.

Sample Cost-Reimbursable Bid/Contract - updated April 3, 2014
Sample Fixed-Price Bid/Contract - updated April 3, 2014

If the LEA submits a differently-constructed bid and contract document, the following FSMC Checklist must be completed and submitted with the bid and contract documents.

If and when a LEA will renew a one-year contract, the following document must be completed, submitted with the renewal documents and approved by ODE before they are signed. The LEA  must copy the renewal template and paste it onto school letterhead prior to signature and submission to ODE.

 

Last Modified: 4/4/2014 9:13:56 AM