Agenda Item
ii. Extension (Renewal) Bid No. 20-22 Ice Cream Products (Renewal Year 3 of 4) to Hershey Creamery Company in the amount not to exceed $258,940.00 for SY 22-23
Summary: Presented by: Mr. Richard Boyd, Interim Chief Operations Officer, Division of Operations
Request: It is requested that the Board of Education approve the renewal of Bid 20-22, Ice Cream Products, to Hershey Creamery Company, in the amount not to exceed $258,940.00 for SY 22-23. This request extends the agreement for Hershey Creamery Company an additional year October 1, 2022, through September 30, 2023.
This is the third of four (4) one-year (1-year) Contract Renewal options.
Why: To offer Smart Snacks compliant à la carte snack items to DCSD students. Hershey products meets Child Nutrition, USDA standards for Smart Snacks.
School Nutrition Services (SNS) offers a variety of student’s favorite ice cream products such as frozen yogurt, fruit bars, and sherbet cups.
School Nutrition Managers and Central Office personnel are provided an annual vendor complaint form (Quality Assurance Form). The form is used to evaluate vendor performance including accuracy and quality. This information is used to communicate with vendors, evaluate pricing, assess products, and monitor deliveries. The vendor’s performance met the assessment criteria.
Details: Due to an excellent level of service provided by Hershey Creamery Company, School Nutrition Services (SNS) requests to extend Bid 20-22 for an additional year with the same terms and conditions as the original term contract from October 1, 2022 through September 30, 2023. Hershey Creamery Company indicated a 11% price increase for SY 2022-2023.
DCSD price provision allows price change at the extension/renewal anniversary commencing July 1, 2021.The vendor must supply the Purchasing Department of the DCSD with written proof from the manufacturer when (if) price changes occur. The written notification from the manufacturer (for DCSD) may specify actual dollar changes or may specify the change as a percentage.
Bid 20-22 was initially approved by the Board on September 9, 2019, in the amount not to exceed $220,000.00. Year one is the initial year of the contract with the option of four renewals totaling five years. This is the third of four extensions allowed.
Hershey Creamery Company
1611 Oakbrook Drive, Gainesville, GA 30507
Financial impact: There is no financial impact to the General Fund. School Nutrition Services is a self-supporting entity with revenue based on meal participation and supplemental sales. Funds will be paid from GL account: 600.3100.563000.00062.8200.9990.8015.040.0000.
Board Policy DJE requires the Board of Education to approve the expenditure of any vendor that provides goods and/or services to the school system that may exceed $100,000.00 in purchases for the fiscal year.
Contact: Mr. Richard Boyd, Interim Chief Operations Officer, Division of Operations, 678.676.1483
Dr. Connie R. Walker, Executive Director of School Nutrition Services, Division of Operations, 678.676.1780
Effective: Upon Board approval
Status: Approved by General Counsel
School Nutrition Services
Chronology of Agenda Item: Bid 20-22 Ice Cream Products
Scope: Extension (Renewal) Bid 20-22 to Hershey Creamery Company.
Contract Term: This is a contract from October 1, 2019 through September 30, 2020 with
options for renewal/extension for up to four (4) years through September 30, 2024.
Solicitation Process: Bid 20-22 was competitively solicited through the Purchasing Department;
it was posted to the DCSD website May 23, 2019. The bid was advertised in the Champion
Newspaper on May 23, 2019 and May 30, 2019. Electronic notification was sent to 24 vendors
from the DCSD vendor bid list. Electronic notification was also sent to 179 vendors through the
State of GA Procurement Registry.
Award Process: Only one (1) vendor responded to the solicitation, was reviewed and deemed
responsive to the requirements of the solicitation by the Purchasing Department.