Agenda Item
iii. Extension (Renewal) Bid No. 20-27 Large Equipment (Renewal Year 3 of 4) to Douglas Equipment in the amount not to exceed $2,200,000.00 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 extension of Bid 20-27, Purchase of Large Equipment to Douglas Equipment in the amount not to exceed $2,200,000.00 for SY 22-23. This request extends the agreement for Douglas Equipment an additional year August 1, 2022, through July 31, 2023.
This is the third of four (4) one-year (1-year) Contract Renewal options.
Why: Foodservice commercial equipment is essential for meal preparation and efficient operation of food production. Several types of large equipment include, but not limited to steamers, combi ovens, heated cabinets, tilting skillet, and milk boxes. This will enable School Nutrition Services (SNS) to provide healthy reimbursable meals for DeKalb County students.
At the beginning of each school year, 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. This vendor’s performance met the assessment criteria.
Details: Bid 20-27 Large Equipment was competitively solicited May 23, 2019. Five (5) vendors responded to the solicitation. School Nutrition Services evaluation panel selected four (4) of the five (5) vendors: (1) BHS Foodservice Solutions, (2) Citisco, (3) Douglas Equipment, and (4) Mobile Fixture & Equipment as the most responsible and responsive bidders.
Due to an excellent level of services provided, Bid 20-27 was extended with three of the four award vendors for SY 2020-2021. (1) Citisco, (2) Douglas Equipment, and (3) Mobile Fixture & Equipment. The fourth vendor, BHS, discontinued operations.
School Nutrition Services (SNS) requested to extend Bid 20-27 for SY 2022-2023 with the same terms and conditions as the original term contract from August 1, 2022, through July 31, 2023. Based on the current supply chain shortages, only Douglas Equipment responded. The remaining two vendors (1) Citisco could not renew contract due to ongoing price increases and (2) Mobile Fixture & Equipment could not provide quote(s) on price increases.
Douglas Equipment has indicated a price increase of 15% for SY 2022-2023. DCSD price provision allows price change at the extension/renewal anniversary commencing August 1, 2022. 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.
The price increase reflects the cost of raw materials (plastic resins, high heat materials), stainless steel, packaging, labor, energy and transportation. The suppliers continue to invest in the future with new materials, technologies, and innovative products to help enhance foodservice efficiency, safety, and sustainability.
Kitchen equipment not covered by Bid 20-27 awarded to Douglas Equipment will be obtained by requesting quotes outlined by DCSD Board Policy from multiple foodservice equipment vendors. An attached copy of kitchen equipment provided by Douglas Equipment and items that will require quotes are included in the supporting documents.
Year 1 is the initial year of the contract with the option of 4 renewals totaling 5 years. This is the third of 4 extensions allowed.
Douglas Equipment
301 North Street, Bluefield, WV 201701
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: 600.3100.573000.600061.8200.9990.8015.040.0000.
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 20-27 Large Equipment
Scope: Extension (Renewal) Bid 20-27 to Douglas Equipment.
Contract Term: This is a contract from August 1, 2019 through July 31, 2020 with options for
renewal/extension for up to four (4) years through July 31, 2024.
Solicitation Process: Bid 20-27 was competitively solicited through the DCSD Purchasing
Department from May 23, 2019 through June 25, 2019.The bid was posted to the DCSD website,
advertised in the Champion Newspaper, and electronic notification was sent to vendors on
DCSD vendor list and the State of GA Procurement Registry.
Award Process: Five (5) vendors responded to the solicitation, all were reviewed and four (4)
were deemed responsive to the requirements of the solicitation by the DCSD Purchasing
Department.
School Nutrition Services (SNS) requested to extend Bid 20-27 for SY 2021-2022 with the same
terms and conditions as the original term contract from August 1, 2021 through July 31, 2022.
Based on current supply chain shortages only Douglas Equipment responded. BHS has
discontinued operations, Citisco could not renew contract due to ongoing price increases and
Mobile Fixture & Equipment could not provide quotes on price increases.