8c Tyson Foods - Price Letter dated 11-21-2024

AID 1773436 · View on Simbli

Agenda Item

i. Contract Renewal ~ ITB 22-18 ~ School Nutrition USDA Product Processing ~ Renewal #4 of 4 (Not to exceed $5,600,788 ~ SY 25-26)

Summary: Presented by: Mr. Erick Hofstetter, Chief Operating Officer, Division of Operations
Request: It is requested that the DeKalb County Board of Education (“the Board”) approve the contract renewal for School Nutrition USDA Product Processing in the not -to- exceed amount of $5,600,788 for SY25-26 to the following processors:


Brookwood Farms, Inc.
Gold Creek Foods, LLC,
Goodman Food Products dba Don Lee Farms
Jennie O Turkey Store Sales, LLC dba Hormel Foods
JTM Provisions Co. Inc.,
Land O’ Lakes, Inc.,
Out of the Shell, LLC dba Yang’s 5th Taste
Tyson Prepared Foods
Why: Approval of the contract renewal ensures that DeKalb County School District (DCSD) School Nutrition Services (SNS) provides healthy reimbursable meals to students that meet the Child Nutrition, USDA standards for meal pattern requirements.

Approval of the contract renewal for School Nutrition USDA Product Processing Strategic meets Goal Area 1: Student Academic Success with Equity and Access
Details: 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 (SNS) uses various USDA commodities for processing products, such as whole chicken processed into roasted chicken, natural American and mozzarella cheese processed into cheese sauce and coarse ground beef processed into beef patties. This has increased menu options and acceptability for students. Food safety is maintained at the school level by limiting the use of raw products.

School Nutrition Managers and Central Office personnel are provided a vendor complaint form (Quality Assurance Form) 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. Therefore, SNS requests to renew ITB 22-18 for an additional year with the same terms and conditions as the original contract terms from July 1, 2025, through June 30, 2026.
Financial impact: Funds will be paid from GL account 622.3100.563500.00062.8200.9990.8015.040.0000 in the amount not to exceed $5,600,788 for SY 25-26.
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 the Office of Legal Affairs
                              Price Change Explanation

Price Change Explanation – Below is a chart showing the CPI Change retrieved from
https://www.bls.gov/ to support the product codes that have received a price increase for SY
25/26.




                   TYSON FOODS 2200 W. Don Tyson Parkway Springdale, Arkansas 72762
                                                                                                                                                            Tyson Foods, Inc.
                                                                                                                                                      2200 Don Tyson Parkway
                                                                                                                                                         Springdale, AR 72762
                                                                                                                                                            ph: (800) 248-9766




                                                                           Request #: GA-2025-32896


Operator:                                                                                                          Request Type: Commodity
       Dekalb County                                                                                                 Price Status: Provided
       1701 Mountain Industrial Boulevard                                                                         Shipment Type: Direct Shipment
       Stone Mountain, GA 30083
       ph: (678) 676-0285                                                                                            Award Type: Line Item
       fax:                                                                                                           Issue Date: 11/15/2024
Bid Title:                                                                                                         Opening Date: 11/22/2024
       Request to Renew RFP #22-18 USDA Product Processing Bid                                                         Start Date: 7/1/2025
                                                                                                                        End Date: 6/30/2026
                                                                                                                       Print Date: 11/21/2024


Material No        New Material No   Description       Pack                             Item #         Qty   Commercial         PTV                Commodity               Type
69190              10000006919       AdvancePierre     100 Servings                         5           0    $107.23/cs                               $50.57   Non-Substitutable
                                     Fully Cooked                                                                         100154 - $56.66
                                     Meatloaf with
                                     Cheddar Cheese
                                     and Topped with
                                     Ketchup, 2.90 oz
693123             10000009860       AdvancePierre     143 Servings                         2         3000   $193.69/cs                               $89.66   Non-Substitutable
                                     Breaded Beef                                                                         100154 - $104.03
                                     Patties, 3.35 oz
021879-0928        10218790928       Tyson Seasoned, 57 - 100 Servings                   LAO            0     $75.98/cs 100103D - $14.58              $47.51       Substitutable
                                     Glazed, Mesquite                                                                   100103W - $13.89
                                     & Smoke Flavored
                                     ProPortion Bone-
                                     In Chicken
026435-0928        10264350928       Tyson Glazed      80 - 128 Servings                    9           0     $91.41/cs 100103D - $36.94              $54.47       Substitutable
                                     Oven Roasted
                                     Chicken
                                     Drumsticks
026436-0928        10264360928       Tyson Mesquite    80 - 128 Servings                   17           0     $91.59/cs 100103D - $37.11              $54.48       Substitutable
                                     Glazed Chicken
                                     Drumsticks
029494-0928        10294940928       Tyson Mega Minis, 149 Servings                        15           0    $118.56/cs 100103W - $37.29              $81.27       Substitutable
                                     FC WG Breaded
                                     Waffle Flavored
                                     Made With Whole
                                     Muscle Chicken
                                     Chunks, 0.54 oz




Created by Interflex BidAdvantage                                                                                                                    GA-2025-32896, Page 1 of 3
Material No          New Material No     Description          Pack                                      Item #              Qty    Commercial           PTV                  Commodity                   Type
034696-0928          10346960928         Tyson Fully       71 - 88 Servings                                 22                0      $118.83/cs 100103W - $39.33                  $79.50        Substitutable
                                         Cooked, Oven
                                         Roasted Glazed
                                         Chicken Wings
070362-0928          10703620928         Tyson, Fully      121 Servings                                     13                0      $104.45/cs 100103W - $48.79                  $55.66        Substitutable
                                         Cooked,WG
                                         Breaded Golden
                                         Crispy Made With
                                         Whole Muscle
                                         Boneless Chicken
                                         Wings, 0.79 oz.
070378-0928          10703780928         Tyson Fully       159 Servings                                     11                0       $75.05/cs 100103D - $11.00                  $52.14        Substitutable
                                         Cooked, Whole                                                                                          100103W - $11.91
                                         Grain Breaded Hot
                                         'N Spicy Popcorn
                                         Chicken, 0.27 oz
666000-0928          16660000928         Tyson Fully       57 - 100 Servings                                10                0       $94.38/cs 100103D - $13.88                  $59.67        Substitutable
                                         Cooked, Whole                                                                                          100103W - $20.83
                                         Grain Breaded
                                         Traditional
                                         ProPortion Bone-
                                         In Chicken
666010-0928          16660100928         Tyson Fully       72 - 113 Servings                                16                0       $95.05/cs 100103D - $35.35                  $59.70        Substitutable
                                         Cooked, Whole
                                         Grain Breaded
                                         Traditional
                                         Drumsticks
Notes & Comments:
Terms & Conditions:
COMMERCIAL: Total Product Cost before USDA discount.
PTV: (Pass-Thru-Value) Dollar value of USDA donated food per case.
PROCESSING FEE (COMMODITY): USDA Commodity Fee-For-Service Pricing. Valid only on sales reported and validated via K12 Foodservice.

NOI PROCESS:
Distributors must billback against the commercial bid pricing. The distributor will be credited on a separate payment for the PTV after the distributor draws down the recipient agency's commodity balance
via K12 Foodservice.

NON-SUBSTITUTABLE CODES: "CLOSED SKU NOI"
Non-Substitutable Codes: 100154 Beef Coarse Ground; 100155 Beef Fresh Combo, and 100193 Pork, will be available only via pass through method of Fee-For-Service or Closed SKU NOI. No
COMMERCIAL sales for these commodities.

Per USDA Memo FD-007: Processing (Revised) - For end products produced from non-substitutable donated foods, the processor must assign end products a unique shop keeping unit (SKU) or other
identifier to prevent commingling or slotting with similar commercial products, which do not meet USDA's specifications, substitution, and grading requirements, at the distributor facility. These closed SKU
non-substitutable end products must only be sold to eligible SFAs. The processor must also provide the distributor with the gross price of the end product, and the value of the donated food used to
produce the end product for each SKU. The processor should also notify SFAs that end products have shipped to the distributor, so that they can begin drawing down the inventory.

Our products are packed based on the average number of servings. The average servings per case is calculated and checked for compliance for every production shift (eight hours). The average servings
per case, as set forth on the EPDS, meets FNS guidelines. The serving price has been calculated using the average number of servings. While the number of servings in each individual case could vary,
the per serving price in this bid has been calculated to accurately reflect the per serving price over the school year.
Billback with proof of delivery. The Distribution Company is responsible for offering the appropriate product code to the Operator. This quote from Tyson Sales and Distribution, Inc. (Tyson) replaces and
supersedes any quote previously provided to the Distribution Company for the Bid Title and Operator between the start and end dates above (including any overlapping time period). Placing any orders for

Created by Interflex BidAdvantage                                                                                                                                               GA-2025-32896, Page 2 of 3
the above products for the described Bid Title and Operator between the start and end dates above (including any overlapping time periods) constitutes acceptance of the pricing in this quote.
This quote is not a guaranty of availability of products. Tyson shall be liable for providing specified or comparable products only when Tyson executes an agreement with agreed upon volumes or provides
written acceptance of an order. When aggregate purchase volumes have been agreed upon, Purchaser may not increase or decrease proportional product draw +/- five percent (5%) of the agreed upon
volume without written acceptance by Tyson.
Tyson retains the right to adjust prices and to add, delete or substitute comparable products upon advance written notice.
Please note that Tyson offers an array of Marketing Resources, Recipes Ideas and offers over 50 products qualifying for Cool School Cafe points. More information is available at:
https://www.tysonfoodservice.com/your-channel/k-12.

Except to the extent inconsistent with the terms herein, all products are sold pursuant to Tysons Terms & Conditions of Sale in place at the time of order acceptance, which are incorporated herein by
reference and are available at: https://www.tysonfoods.com/terms-conditions-sale.

Contact:
Tyson Foods, Inc. Bid Department CP576 2200 Don Tyson Parkway
Springdale, AR 72762
Tel: 800-643-3410 Fax: 479-203-4246
Confidentiality Clause: All information contained in this document that has been provided to the requesting party (you) by Tyson or its affiliates (collectively Tyson) is confidential and proprietary
information of Tyson and may also be a trade secret, and are legally protected interests of Tyson. You are hereby advised, and you agree, that you, your officers, agents, and employees are responsible
for maintaining the confidentiality of Tysons information and shall not divulge it to anyone in any format or manner without the prior express written permission of Tyson.




Created by Interflex BidAdvantage                                                                                                                                             GA-2025-32896, Page 3 of 3
                                                                                                                                                                                      Tyson Foods, Inc.
                                                                                                                                                                                2200 Don Tyson Parkway
                                                                                                                                                                                   Springdale, AR 72762
                                                                                                                                                                                      ph: (800) 248-9766




                                                                                       Request #: GA-2025-32897


Operator:                                                                                                                                Request Type: Commercial
       Dekalb County                                                                                                                       Price Status: Provided
       1701 Mountain Industrial Boulevard                                                                                               Shipment Type: Direct Shipment
       Stone Mountain, GA 30083
       ph: (678) 676-0285                                                                                                                  Award Type: Line Item
       fax:                                                                                                                                 Issue Date: 11/15/2024
Bid Title:                                                                                                                               Opening Date: 11/22/2024
       Bid No. 22-18, USDA Product Processing 25-26 renewal                                                                                  Start Date: 7/1/2025
                                                                                                                                              End Date: 6/30/2026
                                                                                                                                             Print Date: 11/21/2024


Material No                    New Material No               Description                              Pack                             Item #                           Qty                   Commercial
68190                          10000036919                   AdvancePierre Fully Cooked Meatloaf 100 Servings                               5                              0                     $95.21/cs
                                                             with Cheddar Cheese and Topped with
                                                             Ketchup, 2.90 oz
68035                          10000068131                   AdvancePierre Breaded Country Fried 85 Servings                                2                              0                   $107.82/cs
                                                             Beef Steaks, 3.80 oz
68180                          10000068180                   AdvancePierre Fully Cooked Flame       170 Servings                         LAO                               0                   $145.97/cs
                                                             Grilled Halal Certified Beef Burger, 2
                                                             oz
Notes & Comments:
Terms & Conditions:
Our products are packed based on the average number of servings. The average servings per case is calculated and checked for compliance for every production shift (eight hours). The average servings
per case, as set forth on the EPDS, meets FNS guidelines. The serving price has been calculated using the average number of servings. While the number of servings in each individual case could vary,
the per serving price in this bid has been calculated to accurately reflect the per serving price over the school year.
Billback with proof of delivery. The Distribution Company is responsible for offering the appropriate product code to the Operator. This quote from Tyson Sales and Distribution, Inc. (Tyson) replaces and
supersedes any quote previously provided to the Distribution Company for the Bid Title and Operator between the start and end dates above (including any overlapping time period). Placing any orders for
the above products for the described Bid Title and Operator between the start and end dates above (including any overlapping time periods) constitutes acceptance of the pricing in this quote.
This quote is not a guaranty of availability of products. Tyson shall be liable for providing specified or comparable products only when Tyson executes an agreement with agreed upon volumes or provides
written acceptance of an order. When aggregate purchase volumes have been agreed upon, Purchaser may not increase or decrease proportional product draw +/- five percent (5%) of the agreed upon
volume without written acceptance by Tyson.
Tyson retains the right to adjust prices and to add, delete or substitute comparable products upon advance written notice.
Please note that Tyson offers an array of Marketing Resources, Recipes Ideas and offers over 50 products qualifying for Cool School Cafe points. More information is available at:
https://www.tysonfoodservice.com/your-channel/k-12.




Created by Interflex BidAdvantage                                                                                                                                              GA-2025-32897, Page 1 of 2
Except to the extent inconsistent with the terms herein, all products are sold pursuant to Tysons Terms & Conditions of Sale in place at the time of order acceptance, which are incorporated herein by
reference and are available at: https://www.tysonfoods.com/terms-conditions-sale.

Contact:
Tyson Foods, Inc. Bid Department CP576 2200 Don Tyson Parkway
Springdale, AR 72762
Tel: 800-643-3410 Fax: 479-203-4246
Confidentiality Clause: All information contained in this document that has been provided to the requesting party (you) by Tyson or its affiliates (collectively Tyson) is confidential and proprietary
information of Tyson and may also be a trade secret, and are legally protected interests of Tyson. You are hereby advised, and you agree, that you, your officers, agents, and employees are responsible
for maintaining the confidentiality of Tysons information and shall not divulge it to anyone in any format or manner without the prior express written permission of Tyson.




Created by Interflex BidAdvantage                                                                                                                                             GA-2025-32897, Page 2 of 2