Skip to main content
California Department of Education Logo

FSMC Contract Extensions in SFSP


Nutrition Services Division Management Bulletin

Purpose: Policy, Beneficial Information

To: Summer Food Service Program Sponsors

Number: USDA-SFSP-03-2008

Attention: Food Program Director

Date: May 2008

Subject: Food Service Management Company Contract Extensions in the Summer Food Service Program

Reference: United States Department of Agriculture, Food and Nutrition Service, Policy Memo SFSP-09-2007

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Office Technician at 916-324-6153 to be directed to a Program Specialist [Note: the preceding information is no longer valid] please contact the Summer Meals Team by email at SFSP@cde.ca.gov.

Questions:   Nutrition Services Division | 800-952-5609
Last Reviewed: Wednesday, April 23, 2025
Related Content
Recently Posted in Nutrition
  • Celebrating California School Meals Photo Contest (added 18-Aug-2025)
    The California Department of Education’s Farm to School program is holding a photo contest. CDE welcomes photos highlighting California’s diverse school meals programs; scratch cooked, locally sourced meals; and our school nutrition professionals.
  • REQUIRED: 2025–26 FFVP Orientation Trainings (added 15-Aug-2025)
    The CDE NSD requires all 2025–26 FFVP grantees to complete the mandatory FFVP Orientation Online Training Series before implementing the FFVP. The training series must be completed by no later than Monday, September 15, 2025, at 5 p.m. PST.
  • Action Required: Excess Net Cash Resources (added 12-Aug-2025)
    Provides information to program operators about excess net cash resources, the budget agreement process, and long-term noncompliance.
  • SNP Reimbursement Rates for 2025-26 (added 12-Aug-2025)
    This web page provides the School Nutrition Programs (SNP) reimbursement rates for the 2025-26 school year.
  • 2024 Turnip the Beet Award Winners (added 12-Aug-2025)
    The California Department of Education Nutrition Services Division would like to congratulate 21 California school districts for receiving a 2024 Turnip the Beet Award from the U.S. Department of Agriculture Food and Nutrition Service.