Bid 22-18 6c Price increase

AID 1509411 · 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
                                                                                                                                                                                   Dekalb County



  4001 Lexington Ave. N.                                                                                                                                                    1780 Montreal Road
  Arden Hills, MN 55126-2998                                                                                                                                                  Tucker, GA 30084
                                                                                                                                                                                      GA-16568
                 Generated For Dekalb County                                         Opportunity Number Bid 22-18                            Award Period 07/01/2023 - 06/30/2024
                 Report Number 21278                                                    Shipment Method Direct                       Submission Deadline 03/08/2023 05:00 PM
                  Generated On 03/08/2023 09:09 AM                                             Award Type Line Item                             Open Date 03/08/2023 05:00 PM
  Date/time values are shown in the Central time zone                                 Opportunity Status Submitted                           Submitted On 03/08/2023


  Number       Product                                                                                         Pack Size     Net Wt1      Servings1 Bid Code         Option2        Price/Case
  39911        Ultimate Cheddar™ Cheese Dip Cups                                                              140/3.00 oz       26.25            140 29              C-Direct            $70.38
                                                                                                                                                                     DD                  $53.01
  39945        Ultimate Yellow™ Cheese Sauce                                                                  6/106.00 oz       39.75            212 26              C-Direct            $65.27
                                                                                                                                                                     DD                  $38.98
  44113        RF Mild Cheddar Cheese Cubes                                                                   200/1.00 oz       12.50            200 28              C-Direct            $57.85
                                                                                                                                                                     DD                  $33.50
  46288        160-slice 50% RS, 50% RF Pasteurized Process American Cheese (Yellow)                            6/5.00 lbs      30.00            480 27              C-Direct            $69.10
                                                                                                                                                                     DD                  $24.48

  1Per Case
  2Options: C-Direct: Commercial - Direct, DD: Direct Discount
  3Commercial to Commodity Discount per Case




  Terms & Conditions
  • Minimum Delivery for distributors is 5,000 pounds per invoice (NOT per order/shipment). • Minimum Delivery for direct-ship schools is 5,000 pounds per invoice (NOT per order/shipment). •
  Dry and cooler items ship and invoice separately from frozen items. • Bids/quotes do not pyramid with any other programs. • Pricing applies only to the operator stated on bid/quote. • Must
  notify of award to activate bid/quote. • Land O’Lakes will honor bid pricing on purchases through redistributors. Requests for reimbursement must be submitted in the form of a bill back (no
  deductions will be allowed through redistributors). Amount of bill back must not exceed the difference between Land O’Lakes’ price list and the bid price. Land O’Lakes will not reimburse any
  additional charges associated with purchasing through redistribution.
  COMMERCIAL PRICING •• Land O’Lakes pricing for all K-12 products identified on this bid submission is subject to change with 30-day notification for the duration of the bid contract period
  as identified. Land O’Lakes reserves the right to adjust pricing based upon market conditions.
  NET OFF INVOICE PRICING •• The Net Off Invoice pricing provided is the GROSS PRICE. Please subtract the Pass Thru Value to arrive at the NET CASE PRICE. •• Distributors are only
  eligible to deduct for the Pass Thru Value for schools that have a commodity balance with Land O Lakes. Once the commodity balance is depleted, the school should be invoiced at the


Generated by: Alethia Scheett || ACScheett@landolakes.com || Phone Not Provided                                                                                                              1 of 2
                                                                                  Dekalb County


  commercial price.




Generated by: Alethia Scheett || ACScheett@landolakes.com || Phone Not Provided          2 of 2