Agenda Item
i. Extension (Renewal)-Bid No. 20-27 Large Equipment (Renewal Year 4 of 4) to Douglas Equipment (not to exceed $1,200,000 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 renewal of Bid 20-27, purchase of large equipment to Douglas Equipment in the amount not to exceed $1,200,000 for SY 23-24. This request extends the agreement with Douglas Equipment an additional year from August 1, 2023 through July 31, 2024. This is the fourth of four (4) one-year (1-year) Contract Renewal options.
Why: The goal of School Nutrition Services is to consistently acquire foodservice commercial equipment which is essential for meal preparation and efficient operation of food production.Several types of large equipment include, but not limited to steamers, combi ovens, heated cabinets, tilting skillet, and milk boxes. This will enable School Nutrition Services (SNS) to provide health reimbursable meals for DeKalb County students.
Details: Bid 20-27 Large Equipment was competitively solicited May 23, 2019. Five (5) vendors responded to the solicitation. School Nutrition Services evaluation panel selected four (4) of the five (5) vendors: (1) BHS Foodservice Solutions, (2) Citisco, (3) Douglas Equipment, and (4) Mobile Fixture & Equipment as the most responsible and responsive bidders.
Due to an excellent level of service provided, Bid 20-27 was extended with three of the four award vendors for SY 2020-2021. (1) Citisco, (2) Douglas Equipment, and (3) Mobile Fixture & Equipment. The fourth vendor, BHS, discontinued operations.
School Nutrition Services (SNS) requested to extend Bid 20-27 for SY 2022-2023 with the same terms and conditions as the original term contract from August 1, 2022, through July 31, 2023. Based on the current supply chain shortages, only Douglas Equipment responded.
In addition, SNS requests to extend Bid 20-27 for another year with the same terms and conditions as the original term contract from August 1, 2023, through July 31, 2024, and Douglas Equipment accepted.
Douglas Equipment has indicated an average price increase of 15% for SY 2023-2024. DCSD price provision allows price change at the extension/ renewal anniversary commencing August 1, 2023. The vendor must supply the Purchasing Department of the DCSD with written proof from the manufacturer when (if) price changes occur. The written notification from the manufacturer (for DCSD) may specify actual dollar changes or may specify the change as a percentage.
The price increase reflects the cost of raw materials (plastic resins, high heat materials), stainless steel, packaging, labor, energy and transportation. The suppliers continue to invest in the future with new materials, technologies, and innovative products to help enhance foodservice efficiency, safety, and sustainability.
Kitchen equipment not covered by Bid 20-27 awarded to Douglas Equipment will be obtained by requesting quotes outlined by DCSD Board Policy from multiple foodservice equipment vendors. An attached copy of kitchen equipment provided by Douglas Equipment and items that will require quotes are included in the supporting documents.
Year 1 is the initial year of the contract with the option of 4 renewals totaling 5 years. This is the fourth of 4 extensions 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 622.3100.573000.00062.8200.9990.8015.040.0000.
Contact: Mr. Erick Hofstetter, Chief Operating Officer, Division of Operations, 678.676.1470
Dr. Connie R. Walker, Executive Director of School Nutrition Services, Division of Operations, 678.676.1780
Status: Approved by General Counsel