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
March 8, 2023
Re: Dekalb County Bid No. 22-18, USDA Product Processing Renewal for 2023-24 School Year
Don Lee farms has enjoyed an excellent relationship with Dekalb County for many years.
Unfortunately, current economic conditions are such that we find ourselves in the position of
having to adjust pricing for line item # 1 for the period of July 1, 2023 – June 30, 2024.
Line Current NEW
Product Description Product Code Price
Item # Price
1 100% Beef Steak Patties CNQ162253 $56.03 $59.40
3 100% Beef Crumbles CNQ15401 $67.60 $67.60
We acknowledge that the new pricing is significantly higher. This is reflective of the recent and
dramatic increases in our input costs such as fuel, transportation, raw materials, and packaging.
Additionally, our labor costs have risen through mandatory minimum wage increases.
Up until now, we have absorbed increased costs, making adjustments internally so as to avoid
raising prices. We remained focused on mitigating the rising costs with looking for innovations in
processing and sourcing competitively.
We are committed to providing the highest quality food products and service to you and appreciate
your business and continued support.
If you have any further questions or concerns regarding this price increase, please do not hesitate
to reach out to our team or to me personally at (310) 674-3180 ext. 145 or via email at
Maria@donleefarms.com. We are more than happy to discuss this situation with you in detail.
We thank you for your patronage over the years and value your continued partnership with
Don Lee Farms.
Respectfully,
Maria Aguilar
Sales Manager
This information is the property of Don Lee Farms and shall not be used, copied, photographed, or disclosed in whole or part
without the written permission of Don Lee Farms. Items are subject to change without notice.