Nutrition Services Division Management Bulletin |
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| Purpose: Policy, Beneficial Information | |
| To: School Nutrition Program Sponsors |
Number: NSD-SNP-14-2010 |
| Attention: Food Service Directors |
Date: July 2010 |
| Subject: Food Service Management Company Contract Reminders |
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| Reference: Title 7, Code of Federal Regulations, sections 210.16, 210.21, and 3016.60(b) | |
This Management Bulletin (MB) serves as a reminder to all School Food Authorities (SFAs) that plan to contract with a Food Service Management (or Consulting) Company (FSMC) for school year 2010.
Title 7, Code of Federal Regulations (7 CFR), Section 210.16 requires SFAs to submit all FSMC contracts to the California Department of Education (CDE) for review and approval prior to the SFA signing the FSMC contract. Any changes that the CDE requires must be incorporated before the SFA signs the contract.
Other important points that SFAs should keep in mind when bidding for or contracting with a FSMC include:
- SFAs must always follow a competitive procurement process when procuring the services of an FSMC. SFAs that are unclear about the requirements of a competitive procurement process should contact the Nutrition Services Division (NSD) for more information.
- SFAs must retain signature authority for their school nutrition program Agreements, Policy Statement, and claims for reimbursement.
- The SFA should use a CDE prototype contract or write its own. The FSMC may not write the contract (7 CFR 3016.60[b]).
- A contract between an SFA and an FSMC shall be of a duration of no longer than one year, with four optional one-year renewals. The total amount of time an SFA may retain the services of a FSMC before beginning a new procurement process is five years.
- Cost-reimbursable contracts, such as those in which a FSMC is acting as a purchasing agent for the SFA, may not be “cost-plus-a-percentage-of-cost.” An acceptable format would be “fixed-fee,” “cost-plus-a-fixed-fee,” or a “per-meal-cost” contract.
- Cost-reimbursable contracts must meet other strict requirements, including having the contractor exclude all unallowable costs and return all discounts, credits, and rebates to the SFA.
If you have any questions regarding this MB, please contact your local Field Services Child Nutrition Consultant, or your county’s School Nutrition Programs Specialist in the NSD at 916-323-7186 or 800-952-5609.
