Bid 22-18 7c Price increase

AID 1509423 · 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
                                                                            Bureau of Labor Statistics


CPI for All Urban Consumers (CPI-U)
Original Data Value

Series Id:            CUUR0000SEFF,CUUS0000SEFF
Not Seasonally Adjusted
Series Title:         Poultry in U.S. city average, all urban consumers, not
Area:                 seasonally  adjusted
                      U.S. city average
Item:                    Poultry
Base Period:             1982-84=100
Years:                   2013 to 2023

          Year              Jan         Feb     Mar        Apr        May         Jun        Jul         Aug       Sep       Oct         Nov       Dec       HALF1     HALF2
2013                       227.943   227.483   228.245    229.847    229.742     232.996    231.466      234.656   235.381   237.069    232.658    233.437
2014                       234.232   233.112   235.176    232.772    235.610     236.872    237.823      238.610   238.991   236.872    238.415    237.278
2015                       238.923   239.280   240.101    240.017    235.867     239.178    238.125      236.987   234.865   236.150    235.428    232.093
2016                       231.368   231.414   230.461    232.688    232.182     231.122    230.537      230.195   231.423   231.480    230.215    228.209
2017                       228.707   228.979   231.309    230.537    231.895     231.781    231.926      232.404   231.866   232.254    230.366    233.965
2018                       231.017   231.909   232.964    233.085    232.971     233.324    234.658      232.327   230.108   231.500    230.461    230.602   232.545   231.609
2019                       230.124   232.813   230.655    232.401    232.053     232.471    230.398      230.637   229.692   231.472    230.686    234.502   231.753   231.231
2020                       231.801   232.820   235.803    246.991    252.418     252.765    247.459      247.053   247.951   246.904    246.865    244.527   242.100   246.793
2021                       245.840   244.068   246.176    248.794    253.544     255.917    260.680      264.382   263.135   265.358    267.483    267.769   249.057   264.801
2022                       269.905   274.557   278.705    286.935    295.666     300.207    303.876      306.399   308.372   305.016    302.432    300.490   284.329   304.431
2023                       300.213




Source: Bureau of Labor Statistics                                                                                                     Generated on: March 6, 2023 (01:53:17 PM)