6c Price increase letter

AID 1651039 · View on Simbli

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
                                                                                                                                                                                   Dekalb County



  4001 Lexington Ave. N.                                                                                                                                                    1780 Montreal Road
  Arden Hills, MN 55126-2998                                                                                                                                                  Tucker, GA 30084
                                                                                                                                                                                      GA-18895
                 Generated For Dekalb County                                        Opportunity Number Bid 22-18                             Award Period 07/01/2024 - 06/30/2025
                Report Number 26036                                                    Shipment Method Direct                        Submission Deadline 02/23/2024 12:00 AM
                  Generated On 02/21/2024 02:56 PM                                            Award Type Line Item                               Open Date
  Date/time values are shown in the Central time zone                                 Opportunity Status In process                          Submitted On N/A


  Number Product                                                                                                                   Pack Size     Net Wt1 Servings1 Option2          Price/Case
  39911       Ultimate Cheddar™ Cheese Dip Cups                                                                                   140/3.00 oz      26.25          140 DD                 $58.65
  39945       Ultimate Yellow™ Cheese Sauce                                                                                       6/106.00 oz      39.75          212 DD                 $40.94
  39947       Ultimate Creamy White™ Cheese Sauce                                                                                 6/106.00 oz      39.75          212 DD                 $48.63
  44113       RF Mild Cheddar Cheese Cubes                                                                                        200/1.00 oz      12.50          200 DD                 $36.58
  44224       RF Mild Cheddar Readi-Pac® Cheese Slices                                                                              8/1.50 lbs     12.00          192 DD                 $20.18
  44238       Pepper Jack Readi-Pac® Cheese Slices                                                                                  8/1.50 lbs     12.00          192 DD                 $20.17
  44261       RF Swiss Readi-Pac® Cheese Slices                                                                                     8/1.50 lbs     12.00          192 DD                 $24.38
  44751       RF Mild Cheddar Cheese Cubes, bulk                                                                                    4/5.00 lbs     20.00          320 DD                 $28.67
  46018       50% Reduced Sodium, 50% Reduced Fat Process Yellow American Cheese Slices 4 - 5Lb 160 slice count                     4/5.00 lbs     20.00          320 DD                 $24.80
  46031       25% Reduced Sodium, 50% Reduced Fat Process Yellow American Cheese Slices 4-5Lb 160 slice count                       4/5.00 lbs     20.00          320 DD                 $24.80

  1Per Case
  2Options: DD: Direct Discount
  3Commercial to Commodity Discount per Case




  Terms & Conditions
  • Minimum Delivery for distributors is 5,000 pounds per invoice (NOT per order/shipment). • Minimum Delivery for direct-ship schools is 5,000 pounds per invoice (NOT per order/shipment). •
  Dry and cooler items ship and invoice separately from frozen items. • Bids/quotes do not pyramid with any other programs. • Pricing applies only to the operator stated on bid/quote. • Must
  notify of award to activate bid/quote. • Land O’Lakes will honor bid pricing on purchases through redistributors. Requests for reimbursement must be submitted in the form of a bill back (no
  deductions will be allowed through redistributors). Amount of bill back must not exceed the difference between Land O’Lakes’ price list and the bid price. Land O’Lakes will not reimburse any
  additional charges associated with purchasing through redistribution.
  COMMERCIAL PRICING •• Land O’Lakes pricing for all K-12 products identified on this bid submission is subject to change with 30-day notification for the duration of the bid contract period
  as identified. Land O’Lakes reserves the right to adjust pricing based upon market conditions.

Generated by: Camille Tobin || CKTobin@landolakes.com || Phone Not Provided                                                                                                                  1 of 2
                                                                                                                                                                              Dekalb County



  NET OFF INVOICE PRICING •• The Net Off Invoice pricing provided is the GROSS PRICE. Please subtract the Pass Thru Value to arrive at the NET CASE PRICE. •• Distributors are only
  eligible to deduct for the Pass Thru Value for schools that have a commodity balance with Land O Lakes. Once the commodity balance is depleted, the school should be invoiced at the
  commercial price.




Generated by: Camille Tobin || CKTobin@landolakes.com || Phone Not Provided                                                                                                              2 of 2