FSMC Contract Extensions in SFSP

The United States Department of Agriculture (USDA) is committed to exploring opportunities to relieve unnecessary administrative burdens associated with the operation of the Summer Food Service Program (SFSP). Although the SFSP regulations do not address the subject of the duration of Food Service Management Company (FSMC) contracts, due to the nature and design of the SFSP, the USDA’s guidance has limited the duration of these contracts to a single year.

However, after further review, the USDA has recently streamlined the process for procuring FSMC contracts in order to provide significant administrative relief without compromising the integrity of the Program. Specifically, SFSP sponsors may now execute contracts with FSMCs that include an option for renewal, provided that all procurement requirements are met. Each renewal would be for a duration of one year, with an option to renew up to four times. All contracts must include a termination clause whereby either party may cancel for cause with 60-day notification. The option for renewal does not apply to sponsors executing a Standard Food Service Agreement, which needs to be renegotiated each year.

Please note that the execution of a contract with an option for renewal(s) does not compel either party to renew the contract. However, every precaution must be taken to ensure that procurements are conducted in accordance with Federal procurement standards.

If you have any questions regarding this Management Bulletin, please contact the Community Nutrition Programs Administration Office Technician at 916-324-6153 to be directed to a Program Specialist [Note: the preceding information is no longer valid] please contact the Summer Meals Team by email at SFSP@cde.ca.gov.