PROCUREMENT OF SERVICES FROM A FSMC

PROCUREMENT OF SERVICES FROM A FSMC

SCHOOL YEAR 2019-2020

LEARNING OBJECTIVES

Participants should be able to:

▪ Understand the RFP process

▪ Understand State and Federal requirements for procuring the services of an FSMC

▪ Understand the responsibilities of the SFA and FSMC when contracting with an FSMC

▪ Understand the steps in preparation of an FSMC Request for Proposal (RFP)

LEARNING OBJECTIVES -Continued

■ Understand the new and revised forms to use in preparation of FSMC RFP/Contract

■ Understand the similarities and differences in a Cost Reimbursable and Fixed Price RFP/Contract

■ Understand the differences in the monitoring requirements for both types of contracts

LEARNING OBJECTIVES -Continued

▪ Know where to find FSMC Documents

▪ Know the timelines and methods for submission of documents to the State Agency (SA)

▪ Understand the process for receiving approval from the State Agency (SA)

FSMC RFP/Contracts

NEW FOR THIS YEAR

■ Both Fixed Price and Cost Reimbursable

will use the State Agency developed

Request For Proposal (RFP)/Contract

■ RFP/Contracts will be in a PDF fillable

format

■ Changes to the State Agency RFP cannot

be made without written prior approval

FSMC RFP/Contracts

■ RFP/Contract forms and documents will be numbered the same for both types of contracts – Form # followed by FP or CR

■ With the exception of how the documents are submitted to the State Agency for approval, the process for preparing the documents is the same

CONTRACT SUBMISSION

■ The Fixed Price Contract will be received, approved and maintained using the Electronic Contract Approval System (ECAS)

■ A webinar on electronic submission in ECAS for the Fixed Price RFP/Contract will be held on March 14, 2019 at 10:00 a.m.

■ Submission of the Cost Reimbursable Contract will be via Mail to the State Agency

■ A webinar on how and what to submit for CR contracts will be held on February 21, 2019 at 9:30 a.m.

■ Contract submission deadline is June 30, 2019

PROCUREMENT for a FSMC

• SFAs must comply with all federal, state and local

procurement regulations

• Reference materials and webinars on Procurement

are located in SNEARS

• Reference Materials - SNEARS – Resources

• Webinars – SNEARS - Training

• Full and Open competition must be assured

• Compliance with and monitoring of the Buy

American Provision

FULL AND OPEN COMPETITION

Full and Open competition means:

• All FSMC’s are on a level playing field and

have the same opportunity to compete

• Procurement procedures and specification

requirements do not unduly restrict or

eliminate competition

• Fairness and integrity in all aspects of the

procurement process are followed

• SFA must provide Request for Proposal (RFP)

to all currently registered FSMC’s who

request them

BUY AMERICAN PROVISION

▪ For further guidance please refer to USDA - Memo

Code: SP 38-2017 found in SNEARS – Resources

– USDA Memos

▪ FSMC performance of the Buy American Provision

must be monitored by the SFA to determine FSMC

compliance with solicitation and contract

language as required by 2 CFR 200.318(b)

GENERAL SFA RESPONSIBILITIES

■ SFA Is legally responsible for the conduct of the

school food service program

■ Must ensure FSMC compliance with federal,

state and local regulations and requirements

■ Must retain control and overall financial

responsibility of the school food service account

(fund 60)

■ Must employ a sufficient number of qualified

staff to perform responsibilities that cannot be

delegated to the FSMC

Contracting with FSMC does not mean the SFA

relinquishes control of the food service operation.

SFA RESPONSIBILITIES

■ Direct Certification Process, Free & Reduced Applications

and Verification Process

■ Generate and Maintain Master Eligibility List (MEL)

■ Monitor FSMC Food Service Operation (Form #330 – SFA-

FSMC Monitoring Form)– at least 2 times per year

■ Conduct annual On-Site Accountability Reviews for Breakfast

(Form #292) and Lunch (Form #142) by Feb.1st for all SFA

sites

■ Conduct annual On-Site Accountability Reviews for Snack

Program (Form #365 ) during first month of operation and

again by Feb. 1st

SFA RESPONSIBILITIES

■ Meet Professional Standards Requirements (SFA

and FSMC)

■ Local Wellness Policy

■ Review and Approve Menus

■ Establish Advisory Committee

■ Establish Meal and A-La-Carte Prices

■ Review and Certify Reimbursement Claims (Conduct

Edit Checks for Claims)

■ Review USDA Food (Commodity) Utilization

■ Monitor the Buy American Provision

SFA RESPONSIBILITIES(Cost Reimbursable Contracts)

■ Monitor FSMC Procurement Procedures – See SA

Memo’s dated 10/31/2017and 11/2/2018

■ Monitor Rebates, Discounts and Credits

■ Require and Review documentation for monthly

FSMC invoices for Food, Labor, Supplies and Fees

■ Ensure all charges to the operating statement are

necessary, reasonable and allowable under USDA

and 18A regulations and guidelines

SFA RESPONSIBILITIES(Fixed Price Contracts)

■ Correctly determine the number of meals

claimed/charged and meal rate for each type of

meal on monthly invoice

■ Review a-la-carte sales and meal equivalent rate

■ Review documentation for crediting USDA foods

■ It is not necessary to ensure charges to the

operating statement are allowable as it is inherent

to the FP Contract

CATERING - BOTH CONTRACTS

■ NEW THIS YEAR FOR COST REIMBURSABLE

CONTRACTS

■ Catering will be billed as a separate line item in

both types of contracts

■ Catering is defined as all non-program events

including food or meals, supplies and labor

■ No longer referencing “Special Events” in

RFP/Contract or Response and Operating

Statement

CATERING - Continued

■ Charges will include food, labor, supplies, FSMC

fees and if applicable SFA fees

■ Catering is a non-program cost and should be

separate and apart from program costs

■ A sample catering invoice will be available for

your use

SERVICES TO BE EXPECTED FROM THE FSMC

■ Employee training to meet Professional

Standards Requirements

■ Develop menus meeting USDA menu

requirements

■ Acceptable Collection Methods

■ Acceptable Meal Counting Procedures

■ Support Services from Dietitian or Chef

■ Compliance with Smart Snacks

■ Meal Pattern Support Documents (Menus,

production records, recipes, labels, etc.)

SERVICES TO BE EXPECTED FROM THE FSMC

■ Analysis of Trends & Participation Reports

■ FSMC Payroll

■ Compliance with SFA policies

■ Promotions

■ Active Advisory Committee

■ Presentations to Board and PTA

■ Monthly Operating Statement

THE PROCUREMENT PROCESS

■ SFA’s must comply with all federal, state and

local procurement regulations when securing

FSMC services

■ Review reference materials and fact sheets

regarding the procurement of FSMC

■ Start the process early to ensure sufficient time

for FSMC to develop a thorough, comprehensive

proposal

■ Hold a facility walk-through while school is in

session (this step cannot be mandatory)

STEPS IN PROCUREMENT

1) Forecasting /preparing historical information

2) Preparing RFP

3) Advertise for proposals

4) Receive, evaluate and score proposals

5) Select Successful FSMC

6) Submit documents to SA – prior to execution of

contract

7) Obtain SA approval

8) Sign Contract

9) Manage contract (ongoing)

STEP 1- FORECASTING / HISTORICAL INFORMATION

■ One of the most important steps in preparing your RFP

■ Accurate historical meal counts and school/site information

will help the FSMC develop a fair and realistic proposal

■ It will also assist the SFA in determining what FSMC

proposal is the most advantageous to the SFA

■ The SA has developed the NJ Work Book for FSMC RFP –

Form # 372 to assist you in putting together this

information.

STEP 1- FORECASTING / HISTORICAL INFORMATION

NEW - NJ Work Book for FSMC RFP (Form #372) –Tabs

– a. Meals/Sales by School/Site

– b. Reimbursement Log

– c. Services to be Provided

– d. SFA Labor/Benefits (if applicable)

– e. Vending Machine Schedule

– f. SFSP (if applicable)

– g. CACFP - Dinner Program (if applicable)

– h. Reimbursement Rates

REVIEW of Step 1

NJ Work Book for FSMC RFP – Form # 372

■ ACTIVITY –Review of worksheet tabs a, b and c.

■ This form will be e-mailed to SFA’s who have completed this training and received reimbursement claimed for December 2018

■ Send request to: [email protected]

Subject: Form 372 Data Request – SFA Name and agreement number

STEP 2 – PREPARING RFP

RFP/Contract

▪ SFA must use State Agency Developed

RFP/Contract for BOTH Fixed Price and

Cost Reimbursable

▪ The RFP/Contract is in a PDF fillable

format and should be carefully reviewed

and filled in by the SFA


▪ Additional specifications or changes to the RFP must be approved by the SA before RFP is sent out for proposal

▪ Change request deadline is April 30th

▪ Use form #47CR or #47FP – Change Modification Request Form

▪ Do not use old forms or documents!


RFP includes:

■ Advertisement page

■ Check boxes for current programs

■ Check boxes for future programs or program

changes in the next 5 years

– It is important to consider any future program

changes for your SFA to avoid a material change

in your contract


■ The new RFP/Contracts now include many of the old

forms and documents

▪ RFP Scoring Criteria and Evaluation Form

▪ Cost Responsibility Form

▪ SFA Minimum Staffing Requirements (optional)

▪ SFA Requested Equipment (optional)

▪ Confirmation of SFA-SFA Vended Meal Contract(s)

and /or Consolidation Agreements (if participating)

▪ Schedule of costs included in the

Administrative/Management Fee

Review of Cost Responsibility Form

▪ Form is in your hand-out packet for both CR and FP proposals

▪ Items that have been pre-checked cannot be changed

▪ SFA completes the rest of the form to meet the needs of district

▪ There is also an area to designate duties and responsibilities for cleaning and trash removal


▪ SFA must include the following required

documents with the RFP:

▪ Certificate Regarding Debarment (#130)

▪ Certificate of Independent Price Determination

(#131)

▪ Disclosure Of Lobbying Activities (#132)

▪ Certification Regarding Lobbying (#133)

▪ Disclosure of Investment Activities in Iran (#39)

These forms are now available as one (1) PDF

document

STEP 2 – PREPARING RFPADDITIONAL INFORMATION

■ Menus – 21 day menu for each meal

type

■ Current SFA price list for Meals and A-La

Carte items

■ Most current SFA audit of fund 60

■ Form #372 – New Jersey Workbook for

FSMC RFP

STEP 2 – PREPARING RFPADDITIONAL INFORMATION

To be included for FSMC to fill out:

■ Form #23FP or #23CR – Response and

Operating Statement

■ NEW FORM #23 INCLUDES:

▪ FSMC Hourly Labor and Benefits Chart

▪ FSMC Salaried Labor and Benefits Chart

▪ FSMC Equipment proposal

REVIEW OF STEP 2 PREPARING THE RFP

■ Form # 23CR and Form 23 FP -Response and

Projected Operating Statement

■ Schedule of Costs included in Cost Reimbursable

Administrative/Management Fee

■ Meal Equivalent Rate Form # 348

Meal Equivalent Conversion Factor - Form 348

• Federal free meal regular reimbursement rate $ 3.3100

• Federal PB Lunch HHFKA $ .0600

• State free meal reimbursement rate $ .0550

• Per meal value of USDA entitlement value $ .2350

• $ 3.6600 = $3.66

IMPORTANT NOTES FOR RFP

■ SFA cannot request and FSMC cannot offer “value

added” incentives such as scholarships, donations,

grants, free services, free equipment, etc.

■ Revisions and clarifications to SFA’s questions

must be made in writing and sent to all FSMC’s

who expressed interest in submitting a proposal or

to whom the RFP was provided

REQUESTING EQUIPMENT TO BE PURCHASED IN RFP

■ FSMC can only purchase equipment on the SFA’s

behalf if the SFA makes the request in the RFP

■ Specific equipment should be requested by SFA and/or

detailed equipment specifications or technical

requirements must be included

■ Public school contract law and USDA regulations must

be followed when procuring equipment

■ Title to all equipment must be retained by the SFA

EQUIPMENT REPAYMENT

■ Equipment Provisions must be for one year only

■ No assumption can be made that SFA will

renew contract for additional years if FSMC

purchases equipment on SFA’s behalf

■ Repayment terms are to be included in RFP

■ Equipment expense cannot be part of the price

per meal in the FP contract but is an additional

cost billed as a separate line item.

General Equipment Procedures

■ Any equipment purchase over $5,000 (per

item) must be approved by the SA prior to the

purchase, unless the item is on the SA Pre-

Approved Equipment List (Form #160)

■ BA must submit the Equipment Request Form

#106

■ This form is separate and apart from the RFP

and is required whether the SFA is purchasing

the equipment or FSMC is doing so on the

SFA’s behalf.

STEP 3 - ADVERTISE FOR PROPOSAL

▪ Must publicly advertise Request for Proposal

(RFP) in regional news source/official

newspaper

▪ 20 days minimum required for

advertisement prior to deadline for

submission of proposal

▪ Legal notice is included in RFP

▪ SFA cannot advertise exclusively on school

web site

STEP 4: RECEIVE, EVALUATE AND SCORE PROPOSALS

▪ Proposals can only be accepted from FSMC’s who are registered for SY 2019-2020

▪ Evaluate proposals to determine if all conditions and requirements in specifications were met including return of documents

▪ Proposals that did not meet specification requirements are considered “non-responsive” and must be rejected. Inform the FSMC in writing.

▪ Overly responsive items cannot be considered in the evaluation


When reviewing proposals received:

▪ Rank and score proposals based only on evaluation criteria included in specifications

▪ Price must be the primary factor in RFP

▪ FSMC Scoring & Evaluation– Form (in RFP document)

▪ Sample Criteria – Form# 320

▪ Do not consider any additional factors the potential FSMC may have included in their proposal

COST REIMBURSABLE FEES

In Cost Reimbursable Contracts

Only One Fee is Allowed

■ Per Meal Administrative/Management Fee (Cents per meal)

■ Flat Administrative/Management Fee

■ Administrative / Management Fee is - a fee charged for services


Per Meal Management Fee

▪ Per meal Fee for meals served under the

National School Lunch, School Breakfast

and After School Snack Programs (as

applicable) - determined by actual count

▪ Per meal Fee for Meal Equivalents equals

the total dollars of A La Carte Sales divided

by the Meal Equivalent Conversion Factor of

$3.66


Flat Management Fee

▪ The SFA shall pay to the FSMC a

management Fee of (Dollar Amount) per

(Week or Month) for number of (weeks

or months) for a total management fee

of (TOTAL DOLLARS) $_____________

FIXED PRICE – Meal Rates

Meal Rates will be broken Down as follows:

■ Breakfast (School Breakfast Program) - actual meals served x Breakfast Meal Rate

■ Lunch/Dinner (National School Lunch Program & CACFP Dinner) – actual meals served + (plus) total meal equivalents (using the same formula as described in the cost reimbursable contract) x Lunch Meal Rate

■ Snack (After School Snack Program) – actual meals served x Snack Meal Rate

GUARANTEES

IMPORTANT – GUARANTEE LANGUAGE IS IN BOTH

THE COST-REIMBURSABLE AND FIXED PRICE

CONTRACT

The FSMC may choose one of the following:

GUARANTEED LOSS

GUARANTEED BREAKEVEN

GUARANTEED RETURN

NO GUARANTEE

Guarantees are not capped and are unlimited

Guarantees can not exceed the bottom line on

form 23.

CAUTION ON GUARANTEE

■ Refer to proposal and Response & Projected Operating Statement (Form #23) to make sure guarantee is based on realistic projections

■ Are the proposed number of meals to be served actual historical or close to the actual historical numbers provided? Projecting numbers that are unrealistic could skew a guarantee

■ A Guarantee is not the “price” of the proposal and if you are going to evaluate a guarantee it should be defined in the scoring and evaluation criteria


▪ SFA must document evaluation of proposals and

recommended FSMC. Documentation includes

names of FSMC’s, summary of proposals, rank in

order of evaluation, and reason(s) FSMC selection

is recommended

▪ Use FSMC Proposal Comparison Form #24 when

evaluating price

▪ Form 24FP – Price = Total Meal Price in

Section 2

▪ Form 24CR – Price = Total Cost of Contract (L)


▪ Be sure to include the historical meal

counts from Form #372 in Form #24 for

your evaluation

▪ Note: Specific Comparison Form for

each type of RFP - #24FP and

#24CR

▪ In both contracts, Form #24 must

be returned to the SA with contract

STEP 5: SELECT SUCCESSFUL FSMC

■ Award contract to responsible FSMC,

whose proposal, based on scoring

and ranking, is most advantageous to

SFA, with price as the primary factor

and other factors considered

■ Scoring and evaluation materials

must be kept on file at the SFA

STEP 5: SELECT SUCCESSFUL FSMC

▪ Unsuccessful FSMCs should be

promptly notified

▪ Public/Charter schools must place a

notice in the official newspaper

summarizing the award of the contract

▪ Contract is awarded for a term of one

year only

RFP MODIFICATIONS

▪ RFP Modification Request Form #47 must

be submitted by April 30th, 2019

▪ SFA must allow a minimum of 30

business days after SA receives the

request to review documents

STEP 6 & 7: SUBMIT DOCUMENTS AND OBTAIN SA APPROVAL

Cost Reimbursable Contract Submission

▪ Will be mailed to the SA

▪ View webinar on Feb. 21, 2019 - Cost

Reimbursable Contract Submission

▪ Use Form #15 Checklist

▪ Approval process will begin

STEP 6 & 7: SA RFP/CONTRACT SUBMISSION & APPROVAL IN ECAS

for FIXED PRICE

▪ Contract information will be entered and uploaded

in ECAS

▪ SA approvals and notifications will come through

the system

▪ Contracts will be tracked with a unique contract

approval number

▪ Approval of addendums will continue through-out

contract in the same manner as the base year.

STEP 8 – SIGN THE CONTRACT

For CR Contracts:

▪ Once approved you will be e-mailed a

Certification/Signature page (NEW)

▪ Scan and return Cert./Signature Page

For FP Contracts:

▪ Certification/Signature page will be

available in ECAS when contract is

approved

STEP 9: MANAGING THE FSMC CONTRACT

SFA is responsible to assure that the FSMC:

▪ Complies with all federal, state and local

regulations and requirements

▪ Provides meals/menus that comply with

USDA meal pattern requirements

▪ Provides meals/components that are

acceptable to students

STEP 9: MANAGING THE FSMC CONTRACT

SFA is responsible to assure that the FSMC:

▪ Provides documentation for any food

items that do not meet the Buy

American Provision

▪ Provides all the necessary

documentation for monthly invoices

RENEWING THE FSMC CONTRACT

After the initial contract term, SFA can renew up to an additional 4 – one year terms if the following requirements are being met:

▪ Services are being performed in an effective and efficient manner

▪ Contract terms and conditions remain the same (no material change has or will take place)

▪ Any price increase does not exceed quarterly index rate in effect at time of renewal

QUARTERLY INDEX RATE INFORMATION

■ The Quarterly Index Rate is published four times

a year (January, April, July and October)

■ The index rate is posted on the NJ Department

of Community Affairs web site at:

– http//www.state.nj.us/dca/divisions/dlgs/pr

ograms/lpcl_docs/cur_index_rate.pdf

PROCUREMENT RESOURCES FOR FSMC CONTRACTS

Forms in SNEARS are now broken down into the following categories:

Go to SNEARS - Tab – Resources

1. FSMC CACFP AND SFSP DOCUMENTS

2. FSMC COST REIMBURSABLE CONTRACT REQUIRED DOCUMENTS

3. FSMC FIXED PRICE REQUIRED DOCUMENTS

4. FSMC SAMPLES AND REFERENCES

OTHER RESOURCES

▪ For questions, contact the state agency at: 609-

984-0692

▪ This training will also be presented as a webinar

on January 24, 2019

▪ A recording of that webinar will be available

in SNEARS – Training Tab

Other Resources:

▪ Federal Procurement Regs (2 CFR part 200,

2 CFR 200.318-200.326)

OTHER RESOURCES

▪ Procurement in the 21st Century from the

Institute of Child Nutrition (ICN)

▪ Institute of Child Nutrition

http://www.nfsmi.org

▪ Buy American Provision Memo (June 30,

2017 – SP 38-2017

▪ NJ Public School Contract Law

Department of Agriculture

School Nutrition Programs

609-984-0692

www.nj.gov/agriculture

This institution is an equal opportunity provider.

BUSINESS ADMINISTRATOR

TRAINING FOR FSMC CONTRACTS

This webinar will count toward 2 hours of professional standards training:

Key Area- Operations

Learning Topic- Purchasing/Procurement

Topic Code - 2460

THANK YOU FOR PARTICIPATING

Disclaimer: This presentation was provided as technical assistance to provide a general framework of the process of contracting with a FSMC. SFAs are advised to review all reference materials and applicable federal, state, and local law to ensure compliance. In addition, seeking legal counsel or advice is recommended when procuring a contract of any kind.

QUESTIONS