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
Page 1 of 2
March 8, 2023
To: Ms. Sierra M. Adams
Dekalb County School District
1701 Mountain Industrial Blvd.
Stone Mountain, GA 30083
Sierra_McGhee-Adams@dekalbschoolsga.org
678-676-0110
Re: Yangs 5th Taste SY23-24 Price Increase Justification
Renewal of Bid# 22-18 USDA Product Processing
Contract Terms: July 1, 2023-June 30, 2024
Dear Ms. Jones,
During the COVID-19 pandemic, Yangs 5th Taste has remained committed to maintaining the safety of our
employees and their families while continuing to provide quality products to all of our school customers. The
pandemic has financially impacted businesses such as ours worldwide. While demand in the United States
for foodservice continues to recover, we are experiencing higher operating costs as well as significant price
increases in raw material due to market conditions. These costs include the costs of sourcing poultry raised in
the United States to remain compliant with the Buy American Act.
As a result of the unforeseen circumstances brought by the COVID-19 pandemic, Yangs 5th Taste is
implementing a price increase for the products awarded in response to Renewal of Bid# 22-18 USDA
Product Processing. This price increase will not produce a higher profit margin for our company, rather, this
price increase will account for industry increases supported by Consumer Price Index (CPI) industry data
from the United States Department of Labor, Bureau of Labor Statistics (BLS). This price increase will also
help account for increased labor, transportation, and material costs due to the current pandemic.
The attached BLS Series Report for the CPI series titled “Poultry,” with Series ID CUUR0000SEFF,
provides justification for up to a 11.23% price increase. This report was downloaded from the online BLS
CPI database. Our calculations for this percent increase are as follows:
January 2022 Index: 269.905
January 2023 Index: 300.213
Change: + 30.308
Percent Change: (30.308 ÷ 269.905) x 100% = 11.23% increase
Yangs 5th Taste ♦ 9658 Remer Street, South El Monte, CA 91733 ♦ 909-593-4797 (Phone) ♦ 909-593-4776 (Fax)
Page 2 of 2
Below is our SY23-24 Fee for Service pricing reflecting the following price increase:
SY22-23 Fee Requested SY23- Percent
Product Dollar Increase
Product Name for Service 24 Fee for Service Price
Code per Case
Price per Case Price per Case Increase
Mandarin Orange 8-52724-
$137.85 $137.85 $0 0%
Chicken JR 15555-5
Lemongrass 8-52724-
$150.69 $150.69 $0 0%
Chicken 15553-1
Below is our SY23-24 Commercial pricing reflecting the following price increase:
SY22-23 Requested SY23- Percent
Product Dollar Increase
Product Name Commercial 24 Commercial Price
Code per Case
Price per Case Price per Case Increase
Mandarin Orange 8-52724-
$156.75 $161.76 $5.01 3.20%
Chicken JR 15555-5
Lemongrass 8-52724-
$169.59 $174.60 $5.01 2.95%
Chicken 15553-1
We thank you for your patience and understanding. If you have any questions or concerns about this price
increase, please contact me directly.
Sincerely,
Brenda Guzman
Bid Manager
Out of the Shell, LLC d.b.a. Yangs 5th Taste
Phone: (909) 451-6565
Brenda@Yangs5thTaste.com
Yangs 5th Taste ♦ 9658 Remer Street, South El Monte, CA 91733 ♦ 909-593-4797 (Phone) ♦ 909-593-4776 (Fax)