BAI Award Recommendation Bid 24-28 Fluid Milk Borden Dairy 4.29.24

AID 1650847 · View on Simbli

Agenda Item

i. Bid No. 24-28 for School Nutrition Fluid Milk to New Dairy of Kentucky, LLC (d/b/a Borden Dairy) (Not to exceed $4,949,377 for SY 24-25)

Summary: Presented By: Mr. Erick Hofstetter, Chief Operating Officer, Division of Operations
Request: It requested that the Board of Education approve the award of Bid 24-28 School Nutrition Fluid Milk to New Dairy of Kentucky, LLC (d/b/a Borden Dairy), in the amount not to exceed the budgeted amount of $4,949,377 for SY 24-25.
Why: To ensure DCSD SNS provides healthy reimbursable meals to students that meet the Child Nutrition, USDA standards for meal pattern requirements.
Details: Bid 24-28 was competitively solicited through the Purchasing Department; it was posted to the DCSD website and IonWave on February 8, 2024. The bid was advertised in the Champion Newspaper on February 8, 2024, and February 15, 2024. Electronic notification was sent to 6 vendors from the DCSD vendor bid list. Electronic notification was sent to 84 vendors from the DCSD IonWave. Electronic notification was also sent to 88 vendors through the State of GA Procurement Registry.

Products to be provided by New Dairy of Kentucky, LLC (d/b/a Borden Dairy), are delivered by the vendor to the schools.

Three (3) bids were reviewed, and three were deemed responsive to requirements of the solicitation by the Purchasing Department. School Nutrition Services evaluation panel selected New Dairy of Kentucky, LLC (d/b/a Borden Dairy), as the most responsive and responsible bidder.

New Dairy of Kentucky, LLC (d/b/a Borden Dairy)
221 W Hwy 80
London, KY 40741

DFA Dairy Brands/Mayfield Dairy is not being recommended based on their following exceptions to the bid language:

Exception 1. All prices shall be firm against components other than the actual milk or juice cost. The milk and juice cost can escalate or de-escalate monthly with changes in the USDA announced federal market order. Bid

language 1: All prices offered shall be firm against any increase for 12 months from the date of the contract award.

Exception 2. Unused dairy products remaining in schools over an extended closed period of time shall be picked up and disposed of by the dairy supplier at no additional charge. Bid language 2: Unused dairy products remaining in the schools over an extended closed period of time shall be replaced or picked up, and proper credit be issued. Extended closed periods are the following breaks: Fall, Thanksgiving, Winter, and Spring.

Diversified Foods, Inc. is not being recommended based on the following:

Diversified Foods did not provide a total bid price, and only listed shelf-stable milk products. Bid language: Addendum 1, Question 2c.) Is (bidding the entire bid on shelf stable aseptic milk) acceptable? Answer 2c.): No
Financial impact: Funds will be paid from GL account 622.3100.563000.00062.8200.9990.8015.040.0000

Board Policy DJE requires the Board of Education to approve the expenditure of any vendor that provides goods and/or services to the school system that may exceed $100,000 in purchases for the fiscal year.
Contact: Mr. Erick Hofstetter, Chief Operating Officer, Division of Operations, (678) 676-1447

Dr. Connie R. Walker, Executive Director of School Nutrition Services, Division of Operations, (678) 676-1780
Effective: Upon Board approval
Status: Approved by General Counsel
                        Board Agenda Item
MEETING DATE: June 10, 2024

AGENDA ITEM TITLE: Bid No. 24-28 for School Nutrition Fluid Milk to New
Dairy of Kentucky, LLC (d/b/a Borden Dairy), in the amount not to
exceed the budgeted amount of $4,949,377.00 for SY 24-25.

QUICK SUMMARY ABSTRACT: (Presented by)
Mr. Erick Hofstetter, Chief Operating Officer, Division of Operations

REQUESTED ACTION:
It requested that the Board of Education approve the award of Bid 24-28
School Nutrition Fluid Milk to New Dairy of Kentucky, LLC (d/b/a
Borden Dairy), in the amount not to exceed the budgeted amount of
$4,949,377.00 for SY 24-25.

RATIONALE: To ensure DCSD SNS provides healthy reimbursable meals to
students that meet the Child Nutrition, USDA standards for meal pattern
requirements.

DETAILS:
Bid 24-28 was competitively solicited through the Purchasing Department; it
was posted to the DCSD website and IonWave on February 8, 2024. The bid
was advertised in the Champion Newspaper on February 8, 2024 and
February 15, 2024. Electronic notification was sent to 6 vendors from the
DCSD vendor bid list. Electronic notification was sent to 84 vendors from the
DCSD IonWave. Electronic notification was also sent to 88 vendors through
the State of GA Procurement Registry.

Products to be provided by New Dairy of Kentucky, LLC (d/b/a Borden
Dairy), are delivered by the vendor to the schools.

Three (3) bids were reviewed, and three were deemed responsive to
requirements of the solicitation by the Purchasing Department. School
Nutrition Services evaluation panel selected New Dairy of Kentucky, LLC
(d/b/a Borden Dairy), as the most responsive and responsible bidder.

New Dairy of Kentucky, LLC (d/b/a Borden Dairy)
221 W Hwy 80
London, KY 40741

DFA Dairy Brands/Mayfield Dairy is not being recommended based on their
following exceptions to the bid language:

Exception 1. All prices shall be firm against components other that the
actual milk or juice cost. The milk and juice cost can escalate or de-escalate
monthly with changes in the USDA announced federal market order. Bid
                        Board Agenda Item
language 1: All prices offered shall be firm against any increase for 12
months from the date of the contract award.

Exception 2. Unused dairy products remaining in the schools over an
extended closed period of time shall be picked up and disposed of by the
dairy supplier at no additional charge. Bid language 2: Unused dairy
products remaining in the schools over an extended closed period of time
shall be replaced or picked up and proper credit be issued. Extended closed
periods are the following breaks: Fall, Thanksgiving, Winter, and Spring

Diversified Foods, Inc. is not being recommended based on the following:

Diversified Foods did not provide a total bid price, and only listed shelf-
stable milk products. Bid language: Addendum 1, Question 2c.) Is (bidding
the entire bid in shelf stable aseptic milk) acceptable? Answer 2c.): No

SUMMARY:
Upon Board of Education approval of the award of Bid 24-28 to New Dairy
of Kentucky, LLC (d/b/a Borden Dairy), as the most responsive and
responsible bidder: the award will ensure School Nutrition Services provides
reimbursable meals to DeKalb County students.

FINANCIAL IMPACT:
Funds will be paid from GL account
622.3100.563000.00062.8200.9990.8015.040.0000

Board Policy DJE requires the Board of Education to approve the expenditure
of any vendor that provides goods and/or services to the school system that
may exceed $100,000.00 in purchases for the fiscal year.

CONTACTS:
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

SUPPORTING DOCUMENTS:
1. Bid 24-28 Fluid Milk
2. Bid 24-28 Abstract
3. Bid 24-28 Award Recommendation Letter
4. Bid 24-28 Liability Insurance
5. Chronology Bid 24-28

GOALS:
    Strategic Goal Area 1. Student Success with Equity
  and Access
                      Board Agenda Item
ADVANCED STANDARDS:
Standard 4: Resources and Support Systems

STATUS:
Approved by General Counsel

IMPLEMENTATION DATE:
Upon Board approval