Bid 22-18 4c Price increase

AID 1509406 · View on Simbli

Agenda Item

ii. Extension (Renewal) Bid No. 22-18 USDA Product Processing (Renewal Year 2 of 4) to 1.) Brookwood Farms, Inc., 2.) Gold Creek Foods, LLC, 3.) Goodman Food Products dba Don Lee Farms, 4.) Jennie O Turkey Store Sales, LLC dba Hormel Foods 5.) JTM Provisions Co. Inc., 6.) Land O’ Lakes, Inc., 7.) Out of the Shell, LLC dba Yangs 5th Taste and 8.) Tyson Prepared Foods (not to exceed $4,628,750.00 for SY 23-24)

Summary: Mr. Erick Hofstetter, Chief Operating Officer, Division of Operations
Request: It is requested that the Board of Education approve the extension of Bid 22-18, USDA Product Processing to to 1.) Brookwood Farms, Inc., 2.) Gold Creek Foods, LLC, 3.) Goodman Food Products dba Don Lee Farms, 4.) Jennie O Turkey Store Sales, LLC dba Hormel Foods 5.) JTM Provisions Co. Inc., 6.) Land O’ Lakes, Inc., 7.) Out of the Shell, LLC dba Yangs 5th Taste and 8.) Tyson Prepared Foods in the amount not to exceed $4,628,750.00 for SY 23-24. This request extends the agreement for all vendors listed above an additional year July 1, 2023 through June 30, 2024.
Why: To ensure DCSD School Nutrition Services (SNS) provide healthy reimbursable meals to DeKalb County students.

USDA allows recipient agencies such as school districts to contract with State approved food processors to convert USDA commodities into a variety of convenient, ready-to-use end products. School Nutrition Services uses various USDA commodities for processing products such as whole chicken processed to roasted chicken, natural American and mozzarella cheese processed to cheese sauce and coarse ground beef processed to beef patties. This has increased menu options and acceptability for students. Food safety is maintained at the school level by limiting use of raw product.
Details: DCSD price provision allows price change at the extension/renewal anniversary commencing July 1, 2022. The vendor must supply the DCSD Purchasing Department with written proof from the manufacturer when (if) price changes occur. The written notification from the manufacturer may specify actual dollar changes or the change as a percentage.

School Nutrition Managers and Central Office personnel are provided a 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. These vendors met the assessment criteria.

Due to excellent level of service provided by these processors, School Nutrition Services (SNS) request to extend Bid 22-18 for an additional year with the same terms and conditions as original term contract from July 1, 2023 through June 30, 2024. There is an average 6% price increase from the processors for 2023-2024 SY.

One of the nine initially approved vendors, Michael Foods’ contract will not be extended (renewed) due to the vendor no longer providing Item No.: 25 (Cheese Omelet). The product will be purchased through our approved commercial vendor, Bid No. 22-15 Temperature Control & Dry Products.

Bid 22-18 was initially approved by the Board on July 12, 2021, in the amount not to exceed $3,500,000.00. This is the second of 4 extensions (renewals) allowed.
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 622.3100.563500.00062.8200.9990.8015.040.0000
Contact: Mr. Erick Hofstetter, Chief Operating Officer, Division of Operations, 678. 676.1470
Dr. Connie R. Walker, Executive Director of School Nutrition Services, 678. 676.1780
Status: Approved by General Counsel
                                                                                                                                               Jennie-O Turkey Store, LLC.
                                                                                                                                                  2505 Willmar Avenue SW
                                                                                                                                                        Willmar, MN 56201




Operator:
     DEKALB COUNTY                                                                                                      Price Type: Commercial and Commodity
     3770 NORTH DECATUR ROAD
     DECATUR, GA 30032                                                                                               Award Status: Pending
     #:                                                                                                                Price Status: Pending
Contact Broker w/ Questions:                                                                                        Shipment Type: Distributor Shipment
     BidSupport Paramount                                                                                              Award Type: Line Item
     Affinity Group Southeast (formerly Paramount) - Memphis, TN
     5250 Mendenhall Park Place                                                                                      Request Date: 3/6/2023
     Memphis, TN 38115                                                                                                    Due Date: 3/6/2023
     ph: (901) 795-6711                                                                                               Pricing Date:
     fax: (901) 363-9363
                                                                                                                        Issue Date: 3/3/2023
Sales Manager:
                                                                                                                     Opening Date: 3/8/2023
     Steve Hume
     email: srhume@j-ots.com                                                                                             Start Date: 7/1/2023
     ph: (713) 297-1997                                                                                                   End Date: 6/30/2024
                                                                                                                         Print Date: 3/6/2023
Distributors:
Customer #                                   Name
3678                                         GORDON FOODSERVICE
Products:
        Item Code GTIN                              Description                      Bid Item #   Est.       Commercial        PTV          JTS      Cmc. Rate                FFS
                                                                                                  Quantity
           207230          10042222207239           207230 JENNIE-O All Natural                                 $8.50/lb    $1.66/lb     $0.00/lb                        $6.84/lb
                                                    Sweet BBQ Turkey Breast Sticks
                                                    400 / 1.2 Ounces
           209903          10042222209905           209903 JENNIE-O Oven Roasted                                $4.02/lb    $1.40/lb     $0.01/lb                        $2.61/lb
                                                    White Turkey Breast .5 Ounces
                                                    Per Slice CN
                                                    12 / 1.0 Pounds
           231812          10042222231807           231812 JENNIE-O All Natural                                 $5.34/lb    $1.58/lb     $0.36/lb                        $3.40/lb
                                                    Oven Roasted Sliced Turkey
                                                    Breast .74 Ounces
                                                    6 / 2.0 Pounds
           256821          10042222256824           256821 JENNIE-O All Natural                                 $4.03/lb    $1.69/lb     $0.00/lb                        $2.34/lb
                                                    Sliced Uncured Turkey Ham .76
                                                    Ounces
                                                    6 / 2.0 Pounds



Created by Interflex BidAdvantage 3/6/2023                                                                                                     K12 Deal Request #:7126, Page 1 of 2
           Item Code GTIN                    Description                        Bid Item #      Est.          Commercial             PTV            JTS      Cmc. Rate                FFS
                                                                                                Quantity
           612620          10042222612620    612620 JENNIE-O Smoked                                                $3.56/lb       $1.64/lb      $0.00/lb                         $1.92/lb
                                             Uncured Turkey Frank Reduced
                                             Sodium 8 Pounds
                                             4 / 5.0 Pounds
           871702          90042222871702    JENNIE-O PERFECT SLICE
                                             Turkey Bacon Bits Fully Cooked
                                             2 / 5.0 - 6.0 Pounds (Random)
           317004          90042222317002    317004 JENNIE-O Turkey Breast                                         $4.01/lb       $1.50/lb      $0.07/lb                         $2.44/lb
                                             and Thigh Roast Boneless CIB
                                             Skin On FC
                                             4 / 8.5 - 11.5 Pounds (Random)
           271106          10042222271100    271106 JENNIE-O PERFECT                                              $12.98/lb       $1.39/lb      $0.00/lb                        $11.59/lb
                                             SLICE Premium Turkey Bacon
                                             Fully Cooked
                                             12 / 0.625 Pounds

Terms & Conditions:
     • Due to market conditions, this pricing may by revised with 30 days advance written notice.
     • The terms of sale are governed by Sellers standard Invoice or Terms of Sale. Neither party will be in default in the performance of its obligations under this Agreement if its
     performance is prevented or delayed because of war, terrorism, hostilities, revolution, civil commotion or unrest, strike, labor dispute, epidemic diseases, quarantine, import
     restrictions, export restrictions, fire, wind, earthquake or flood, any law, order, proclamation, regulation or ordinance of any government or government subdivision, Acts of
     God or for any other cause, whether similar or dissimilar to those enumerated, that is beyond that partys reasonable control and without that partys fault or negligence. This
     definition of Force Majeure specifically includes production issues where through no fault of Seller, agricultural commodities required to produce Products are not available to
     Seller or the industry in general in sufficient quantities.
     • Commercial Only Bids The Bid price &/or allowances quoted in the bid requests are not allowed to be used in combination with any other discounts or special contract
     pricing. These additional discounts include but are not limited to commodity PTV allowances, GPO pricing, National Account contracts or any other deviated pricing.
     Commercial and Commodity Bids For Bids that request both Commercial and Commodity Bid Pricing the commercial bid price will be the base price listed of the Jennie-O
     Turkey Store Commodity Program for each item before any discounts, allowances or crediting of the Pass through Value. The commodity bid price will be the commercial
     net of said discounts, allowances and Pass through Value.
     Commodity Bids FFS For commodity bids using the Fee-for Service model, the price will be the Jennie-O Turkey Store Commodity Program base price net of the Pass
     through Value of donated food, and any other discounts and allowances. No other pricing structure such as GPO pricing, National Account pricing can be used for these bids.
     Any deviations from this price must be approved in advance by Jennie-O Turkey Store
     Commodity Bids NOI - For Commodity bid using the Net off Invoices model. The bid price will be the NOI base price established by Jennie-O Turkey Store. Any deviations
     from this price must be approved in advance by Jennie-O Turkey Store.
     All Bid pricing is to be used for K12 schools and other eligible nonprofit institutions. All BIDS awarded with deviated pricing must be confirmed with JOTS Local broker &/or
     JOTS BID Coordinator to be considered valid pricing. There is no guarantee on 100% fill rate for bid quantities requested. 4,000 lb. order minimum.
     • Independent Commodity Clause - Discount will be applied according to the SEPDS and available recipient diversions
Legend:

                                                               Won                           Lost                   Pending



                                                                              No Bids               No Award




Created by Interflex BidAdvantage 3/6/2023                                                                                                             K12 Deal Request #:7126, Page 2 of 2