Agenda Item
v. Renewal of Bid No. 22-18 USDA Product Processing - Year 3 of 4 - 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 $5,091,625 SY 24-25) ~ Updated 6.7.2024
Summary: Presented by: 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 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 $5,091,625 for SY 24-25. This request extends the agreement for all vendors listed above an additional year July 1, 2024, through June 30, 2025.
Why: To ensure DCSD SNS provides healthy reimbursable meals to students that meet the Child Nutrition, USDA standards for meal pattern requirements.
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 the 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 the original term contract from July 1, 2024, through June 30, 2025. There is an average less than 1% price increase from the processors for 2024-2025 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 Frozen Temperature Control & Dry Food Products.
Bid 22-18 was initially approved by the Board on July 12, 2021, in the amount not to exceed $3,500,00.00. This is the third of four (4) extensions (renewals) allowed.
Initial Contract term - 7/12/2021 - Not to Exceed $3,500,000.00
Yr. 1 Renewal - 6/6/2022 - Not to Exceed $4,025,000.00
Yr. 2 Renewal - 5/8/2023 - Not to Exceed $4,628,750.00
Yr. 3 Renewal - 6/10/2024 - Not to Exceed $5,091,625.00 (Current Year)
Financial impact: There is no financial impact on 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 the GL account.
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.
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
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December 4, 2023
To: Ms. Carla L. Smith
Dekalb County School District
1701 Mountain Industrial Blvd.
Stone Mountain, GA 30083
Carla_Smith@dekalbschoolsga.org
678-676-0110
Re: Yangs 5th Taste SY24-25 Price Increase Justification
Renewal of Bid #22-18 USDA Product Processing
Contract Terms: July 1, 2024-June 30, 2025
Dear Ms. Smith,
We are providing the information that follows in support of our price increase request for products
awarded to us as a result of Bid #22-18, USDA Product Processing. This price increase request is a
result of supply chain issues. We are experiencing higher operating costs as well as significant price
increases for raw materials due to market conditions.
The table below summarizes evidence of increased costs for relevant commodities on the attached
Consumer Price Index reports from the United States Department of Labor, Bureau of Labor
Statistics:
Commodity: October 2022 October 2023 Index Change Percent Change
Poultry processing in
305.016 308.281 +3.265 1.07%
U.S. city average
Flour and prepared flour
mixes in U.S. city 311.388 321.342 +9.954 3.20%
average
Sugar and sugar
substitutes in U.S. city 245.175 266.733 +21.558 8.79%
average
The table below summarizes evidence of increased employment costs found on the attached
Employment Cost Index report from the United States Department of Labor, Bureau of Labor
Statistics:
Commodity: 2022 2023
Index Change Percent Change
Quarter 3 Quarter 3
Total compensation for
Private industry workers 149.2 154.6 +5.4 3.62%
in Manufacturing
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 SY24-25 Fee for Service pricing reflecting the following price increase:
SY23-24 Fee Requested SY24- Percent
Product Dollar Increase
Product Name for Service 25 Fee for Service Price
Code per Case
Price per Case Price per Case Increase
Mandarin Orange 8-52724-
$137.85 $141.29 $3.44 2.50%
Chicken JR 15555-5
Lemongrass 8-52724-
$150.69 $154.53 $3.84 2.55%
Chicken 15553-1
Below is our SY24-25 Commercial pricing reflecting the following price increase:
SY23-24 Requested SY24- Percent
Product Dollar Increase
Product Name Commercial 25 Commercial Price
Code per Case
Price per Case Price per Case Increase
Mandarin Orange 8-52724-
$161.76 $162.69 $0.93 0.57%
Chicken JR 15555-5
Lemongrass 8-52724-
$174.60 $175.93 $1.33 0.76%
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,
Stacy Smith
Stacy Smith
Bid Coordinator
Out of the Shell, LLC d.b.a. Yangs 5th Taste
Phone: (909) 451-6565
Stacy@Yangs5thTaste.com
Yangs 5th Taste ♦ 9658 Remer Street, South El Monte, CA 91733 ♦ 909-593-4797 (Phone) ♦ 909-593-4776 (Fax)