0245023199ra.pdf

23199ra07 (continued)

Corning Tower, Empire State Plaza, Albany, NY 12242 | https://ogs.ny.gov/procurement | customer.services@ogs.ny.gov | 518-474-6717

Revised Contract Award Notification

Title : Group 02450 Food (Commercial and Retail) (Statewide) Classification Code(s): 50

Award Number : 23199 (Replaces Awards 22794 & 22688)

Contract Period : June 19, 2020 through June 18, 2028

Bid Opening Date : March 19, 2020

Date of Issue : June 19, 2020 (Revised April 23, 2025)

Specification Reference : As Incorporated in the Solicitation

Contractor Information : Appears on Page 2 of this Award

Address Inquiries To:

State Agencies & Vendors Political Subdivisions & Others

Name :

Title :

Phone :

E-mail :

Tracey Lake Contract Management Specialist 518-473-2193 OGS.sm.SST_food@ogs.ny.gov

Procurement Services Customer Services

Phone :

E-mail :

518-474-6717 customer.services@ogs.ny.gov

Procurement Services values your input.

Complete and return "Contract Performance Report" at end of document.

Description Note: This Contract Award Notification contains a subset of information from the Solicitation. The resulting Contracts from Solicitation 23199 have been executed by Contract Award Letter.

Complete Contract details including terms and conditions can be found in the Solicitation document dated revised March 12, 2020.

This award allows for the purchase of Food and Non-Food products in the following Lots: Lot 1:

Commercial (bulk), and Lot 2: Retail (grocery).

This award contains MWBE goals of 0% MBE and 0% WBE.

There are no SDVOB Goals on this Contract.

PR # 23199

https://ogs.ny.gov/award-23199

GROUP 02450 – Food (Commercial and Retail) (Statewide) AWARD PAGE 2

NOTE: See individual contract items to determine actual awardees.

OGS CONTRACT

NUMBER CONTRACTOR FEDERAL ID # NYS VENDOR ID #

PC69153

Cancelled May 02, Ace Endico Corp. 133116470 1000006304

PC69154 Metropolitan Foods Inc. dba Driscoll Foods 223482240 1000008850

PC69155

Cancelled April 02, Renzi Bros., Inc. dba Renzi Foodservice 161610963 1000005104

PC69156 H. Schrier & Co., Inc. 112854301 1000054374

PC69157 Sysco Albany LLC 743066312 1000032545

PC69158 Sysco Long Island LLC 900348986 1100078152

PC69159 Sysco Syracuse, LLC 743066696 1000009662

PC70144

Contract start date:

April 03, 2024

US Foods, Inc. dba Renzi Foodservice 363642294 1000017758

Lot(s)/Region(s) Awarded:

CONTRACTOR

LOT 1 - COMMERCIAL LOT 2 - RETAIL

Central

Downstate

Eastern

Western

Central No bids received

Downstate

Eastern No bids received

Western No bids received

METROPOLITAN FOODS,

INC. DBA DRISCOLL

FOODS

X X X

US FOODS INC. DBA

RENZI FOODSERVICE

X

H. SCHRIER & CO., INC. X X

SYSCO ALBANY LLC X

SYSCO LONG ISLAND

LLC

X

SYSCO SYRACUSE, LLC

X X

GROUP 02450 – Food (Commercial and Retail) (Statewide) AWARD PAGE 3

For complete Contractor information and Pricing information for this Award, please see the Contractor Information page located on the OGS Website at:

https://online.ogs.ny.gov/purchase/spg/pdfdocs/0245023199ContractorInfo.pdf

Cash Discount, If Shown, Should be Given Special Attention.

INVOICES MUST BE SENT DIRECTLY TO THE ORDERING AGENCY FOR PAYMENT.

(See "INVOICING AND PAYMENT" in this document.)

AGENCIES SHOULD NOTIFY NEW YORK STATE PROCUREMENT SERVICES PROMPTLY IF THE

CONTRACTOR FAILS TO MEET DELIVERY OR OTHER TERMS OF THIS CONTRACT. PRODUCTS OR

SERVICES WHICH DO NOT COMPLY WITH THE SPECIFICATIONS OR ARE OTHERWISE

UNSATISFACTORY TO THE AGENCY SHOULD ALSO BE REPORTED TO PROCUREMENT SERVICES.

SMALL, MINORITY AND WOMEN-OWNED BUSINESSES

The letters SB listed under the Contract Number indicate the contractor is a NYS small business.

Additionally, the letters MBE and WBE indicate the contractor is a Minority-owned Business Enterprise and/or Woman-owned Business Enterprise.

RECYCLED, REMANUFACTURED AND ENERGY EFFICIENT PRODUCTS

Procurement Services supports and encourages the purchase of recycled, remanufactured, energy efficient and "energy star" products. If one of the following codes appears as a suffix in the Award Number or is noted under the individual Contract Number(s) in this Contract Award Notification, please look at the individual awarded items for more information on products meeting the suffix description.

RS, RP, RA Recycled RM Remanufactured SW Solid Waste Impact EE Energy Efficient E* EPA Energy Star ES Environmentally Sensitive

NOTE TO AUTHORIZED USERS

When placing purchase orders under the contract(s), the authorized user should be familiar with and follow the terms and conditions governing its use which usually appears at the end of this document.

The authorized user is accountable and responsible for compliance with the requirements of public procurement processes. The authorized user must periodically sample the results of its procurements to determine its compliance. In sampling its procurements, an authorized user should test for reasonableness of results to ensure that such results can withstand public scrutiny.

The authorized user, when purchasing from OGS contracts, should hold the contractor accountable for contract compliance and meeting the contract terms, conditions, specifications, and other requirements.

Also, in recognition of market fluctuations over time, authorized users are encouraged to seek improved pricing whenever possible.

Authorized users have the responsibility to document purchases, particularly when using OGS multiple award contracts for the same or similar product(s)/service(s), which should include:

• a statement of need and associated requirements,

• a summary of the contract alternatives considered for the purchase,

• the reason(s) supporting the resulting purchase (e.g., show the basis for the selection among multiple contracts at the time of purchase was the most practical and economical alternative and was in the best interests of the State).

GROUP 02450 – Food (Commercial and Retail) (Statewide) AWARD PAGE 4

CONFLICT OF TERMS

Conflicts among the documents shall be resolved in the following order of precedence:

1. Appendix A (June 2023), Standard Clauses for New York State Contracts;

2. Appendix C (October 2023) Federal Funding Agency Mandatory Terms and Conditions;

3. All applicable Contract Amendments;

4. The Contract Award Letter;

5. Solicitation #23199 (Revised March 12, 2020) including all Appendices and Attachments referenced;

6. Contractor’s pricing as published by OGS on the Procurement Services’ website at https://online.ogs.ny.gov/purchase/spg/pdfdocs/0245023199RegionalPrices.pdf for the Lot(s) and Region(s) awarded to each Contractor; and

7. The Contractor’s Bid.

OVERVIEW

This Contract provides Authorized Users with a means of acquiring food and non-food items by New York State Agencies and Non-State Agencies, including political subdivisions, school districts and others authorized by law (See Sections titled Non-State Agencies Participation in Centralized Contracts and Extension of Use). Products for purchase by all Authorized users are described in the Section titled Scope. Procurement instructions describing requirements for Authorized Users to purchase from the Centralized Contract are found in the Section titled Procurement Instructions.

SCOPE

It is the intent of this Contract to establish multiple Contracts for the following two (2) Lots for each Region as described in Section titled Regions. Categories of Products within each Lot are listed below:

Lot # and Title Food and Non-Food Product Categories

1. Commercial (bulk)

a. Ambient, Canned, Dry

b. Baked Goods

c. Dairy

d. Frozen (Includes prepared foods and entrees; frozen eggs, frozen vegetables and fruits, frozen meats, and frozen juices)

e. Meat, Poultry & Fish (Fresh, including breaded Products)

f. Non-Food

g. Produce

2. Retail (grocery)

a. Ambient, Canned, Dry

b. Baked Goods

c. Dairy

d. Frozen (Includes prepared foods and entrees; frozen eggs, frozen vegetables and fruits, frozen meats, and frozen juices)

e. Meat, Poultry & Fish (Fresh, including breaded Products)

f. Non-Food

g. Produce

EXCLUSIONS:

Items which are sold by Bidders, but do not fit into these categories are excluded from purchase through the Contracts resulting from Solicitation 23199. Alcoholic beverages are expressly excluded from the scope of the resultant Contracts.

REGIONS

For the purposes of Contracts resulting from Solicitation 23199, the counties of New York State are divided into four (4) separate “Regions”. Below is a listing of the Regions and the applicable counties that are included in each of the Regions.

The four Regions are:

GROUP 02450 – Food (Commercial and Retail) (Statewide) AWARD PAGE 5

Central Region: Broome, Cayuga, Chenango, Cortland, Delaware, Herkimer, Jefferson, Lewis, Madison, Oneida, Onondaga, Oswego, Otsego, Saint Lawrence, Sullivan, Tioga, and Tompkins counties

Downstate Region: Bronx, Kings, Nassau, New York, Queens, Richmond, Rockland, Suffolk, and Westchester counties

Eastern Region: Albany, Clinton, Columbia, Dutchess, Essex, Franklin, Fulton, Greene, Hamilton, Montgomery, Orange, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, Ulster, Warren, and Washington counties

Western Region: Allegany, Cattaraugus, Chautauqua, Chemung, Erie, Genesee, Livingston, Monroe, Niagara, Ontario, Orleans, Schuyler, Seneca, Steuben, Wayne, Wyoming, and Yates counties

PROCUREMENT INSTRUCTIONS TO AUTHORIZED USERS

The resultant Contracts will be centralized Contracts issued under a multiple award structure for each of the Lots described in the Section titled Scope. Products offered under the Contracts, pricing, and other Contract information will be posted to the OGS website and, if applicable, the awarded Contractors’ dedicated NYS websites. Authorized Users shall procure Products that best meet their form, function and utility requirements.

Before proceeding with their purchase, Authorized Users shall check the list of Preferred Source offerings and are reminded that they must comply with State Finance Law, particularly § 162, regarding commodities/services provided by preferred source suppliers.

If the needed Products are not available in the desired form, function and utility from a Preferred Source, the Authorized Users are encouraged to obtain quotes from all awarded Contractors within the applicable Region prior to making a purchase. The Authorized User shall review the responses from Contractors able to provide the necessary Products and shall select the most practical and economical alternative that is in the best interest of the State from among such responses in accordance with State Finance Law § 163(10)(c). The Authorized User shall document its procurement decisions in its procurement record.

GROUP 02450 – Food (Commercial and Retail) (Statewide) AWARD PAGE 6

Authorized Users will issue Purchase Orders directly to the Contractor and specify any shipping/delivery requirements.

When placing Purchase Orders under the Contract(s), the Authorized User should be familiar with and follow the terms and conditions governing the use of the Contract(s). The Authorized User is responsible for compliance with the requirements of public procurement processes. The Authorized User, when purchasing from OGS Contracts, should hold the Contractor accountable for meeting the Contract terms, conditions, specifications, and other requirements. Also, in recognition of market fluctuations over time, Authorized Users are encouraged to seek improved pricing whenever possible. Authorized Users have the responsibility to document purchases, and such documentation should include: statement of need and associated requirements; all necessary prior approvals; a summary of the Contract alternatives considered for the purchase; and the reason(s) supporting the resulting purchase (e.g., show that basis for the selection among multiple Contracts at the time of purchase was the most practical and economical alternative and was in the best interests of the State).

Upon Authorized User acceptance of Products itemized on the Purchase Order, Contractor will invoice Authorized User for any portion of Products accepted, and accordingly, Authorized User will arrange for payment. Contractor shall provide itemized invoicing for all Products.

Note: Contractor must disclose prior to acceptance of an order any forms or other order information that Contractor will attach to orders or require to be completed with Authorized User purchases. Documents which contain additional terms or conditions must receive pre-approval by the Authorized User.

Additional terms or conditions that were not pre-approved by the Authorized User or which conflict with the Contract terms and conditions are void and unenforceable at the sole discretion of the State.

ESTIMATED QUANTITIES

This Contract is an estimated quantity Contract. No specific quantities are represented or guaranteed, and the State provides no guarantee of individual Authorized User participation. The Contractor must furnish all quantities actually ordered at or below the Contract prices. The anticipated dollar value of the award for this Solicitation, based on historical purchases under previous awards, is approximately $74 million annually, for Lots 1 and 2 on a statewide basis. The individual value of each resultant Contract is indeterminate and will depend upon the number of Contracts issued and the competitiveness of the pricing offered. Authorized Users will be encouraged to purchase from Contractors who offer the Products and pricing that best meet their needs in the most practical and economical manner. See Appendix B, Estimated/Specific Quantity Contracts and Participation in Centralized Contracts.

Numerous factors could cause the actual quantities of Products purchased under a Contract resulting from Solicitation 23199 to vary substantially from the estimates in Solicitation 23199. Such factors include, but are not limited to, the following:

• Such Contracts may be non-exclusive Contracts.

• There is no guarantee of quantities to be purchased, nor is there any guarantee that demand will continue in any manner consistent with previous purchases.

• The individual value of each Contract is indeterminate and will depend upon actual Authorized

User demand and actual quantities ordered during the contract period.

• The State reserves the right to terminate any Contract for cause or convenience prior to the end of the term pursuant to the terms and conditions of the Contract.

• Contract pricing that is lower than anticipated could result in a higher quantity of purchases by

Authorized Users than anticipated.

• Contract pricing that is higher than anticipated could result in a lower quantity of purchases by

Authorized Users than anticipated.

Contractor acknowledges the foregoing and agrees that actual good faith purchasing volumes during the term of this Contract could vary substantially from the estimates provided in Solicitation 23199.

GROUP 02450 – Food (Commercial and Retail) (Statewide) AWARD PAGE 7

DEFINTIONS

Capitalized terms used in this Solicitation shall be defined in accordance with Appendix B, Definitions, or as below.

“Baked Goods” shall refer to Products comprised of fresh bread including, but not limited to, bread loaves, various rolls, pastries and muffins.

“Business Day” shall refer to Monday through Friday from 8:00 AM – 5:00 PM ET, excluding NYS Holidays and federal holidays.

“Categories” shall refer to classifications given to each Product to define which percent markup is applied within each of the Lots. Categories for each Lot are detailed in Section titled Percent Markup.

“Cost of Product” shall be defined as the cost paid by the Contractor to its supplier/manufacturer/processor for the Product.

“Food” shall refer to Products that are edible.

“Incoming Freight” is defined as common or contract carrier charges billed to the Bidder by a third-party vendor or a third-party carrier, or charges billed to the Contractor by a freight management service operated by an affiliated corporation of the Contractor for shipping costs from the supplier to the Contractor’s warehouse.

“Lots” shall refer to several items bid as a single group. For the purposes of this Contract, there are two separate Lots: Lot 1, Commercial (Statewide), and Lot 2, Retail (Statewide).

“MWBE” shall refer to a business certified with NYS Empire State Development (“ESD”) as a Minority-and/or Women-owned Business Enterprise.

“New York State Food Product” shall refer to commodities that are Food, including milk and milk Products, grown, produced, harvested, or processed in New York state.

“Non-Food” shall refer to Products that are not edible but related to the handling, preparing or dispersing of food items. Such as paper and disposable Products; small ware and equipment.

“NYS Holidays” refers to the legal holidays for State employees in the classified service of the executive branch, as more particularly specified on the website of the NYS Department of Civil Service. This includes the following: New Year’s Day; Dr. Martin Luther King, Jr. Day; Washington’s Birthday (observed); Memorial Day; Juneteenth; Independence Day; Labor Day; Columbus Day; Veteran’s Day;

Thanksgiving Day; and Christmas Day.

“NYS Vendor ID” shall mean the ten-character identifier issued by New York State when a vendor is registered on the Vendor File.

“Preferred Source Products” shall refer to those Products that have been approved in accordance with New York State Finance Law § 162.

“Preferred Source Program” shall refer to the special social and economic goals set by New York State in State Finance Law § 162 that require a governmental entity purchase select Products from designated organizations when the Products meet the “form, function and utility” requirements of the governmental entity. Under State Finance Law § 163, purchases of Products from Preferred Sources are given the highest priority and are exempt from the competitive bidding requirements. The New York State Preferred Sources include: The Correctional Industries Program of the Department of Corrections and Community Supervision (“Corcraft”); New York State Preferred Source Program for People Who Are Blind (“NYSPSP”); and the New York State Industries for the Disabled (“NYSID”). These requirements apply to state agencies, political subdivisions and public benefit corporations (including most public authorities).

GROUP 02450 – Food (Commercial and Retail) (Statewide) AWARD PAGE 8

“Price Guides” is a complete Product line listing created and maintained by the Contractor. The Price Guide contains “NYS Net Delivered Price” for NYS Authorized Users and shall be updated as listed herein under Section titled Price Changes.

“Procurement Services” shall refer to a business unit of OGS, formerly known as New York State Procurement (“NYSPro”) and Procurement Services Group (“PSG”).

“Regions” for the purposes of this Contract, New York State is divided into four regions: Central, Downstate, Eastern and Western.

“SDVOB” shall refer to a NYS-certified Service-Disabled Veteran-Owned Business.

CONTRACT TERM AND EXTENSIONS

The Contract will be in effect for a term of up to five (5) years. The Contract term shall commence after all necessary approvals and shall become effective upon mailing or electronic communication of the final executed documents to the Contractor (see Appendix B, Contract Creation/Execution).

All OGS Centralized Contracts resulting from Solicitation 23199 shall have a co-terminus end date, including those Contracts awarded during any subsequent periodic recruitment. At the State’s option, the Contract may be extended for five (5) years, in increments as deemed to be in the best interest of the State. Whether the optional extensions are exercised is at the sole discretion of the State. A Contractor shall retain the right to decline a Contract extension offered under this section. Any Contract extension will be under the same terms and conditions, subject to any additional applicable statutory and policy requirements. Any extensions provided under this section shall apply in addition to any rights set forth in Appendix B, Contract Term – Extension.

The Contract term provided for in this section shall extend 6 months beyond its termination date only for Authorized Users whose Contracts must be registered with the Office of the New York City Comptroller.

During the 6-month period the definition of Authorized User shall be deemed to refer only to Authorized Users whose Contracts must be registered with the Office of the New York City Comptroller. This extension is in addition to any other extensions available under the Contract. The extension provided for in this paragraph shall be upon the then-existing terms and conditions; provided, however, during such extension an Authorized User, as defined in this paragraph, may agree to amend such terms and conditions solely to comply with changes in statutory requirements (e.g. changes in minimum, prevailing or living wages, or regulated services).

OGS reserves the right to terminate Contractors for convenience after one-year as set forth in Appendix B, Termination, if their Contract sales are less than $200,000 for Lot 1 – Commercial, and $100,000 for Lot 2 – Retail.

SHORT TERM EXTENSION

This section shall apply in addition to any rights set forth in Appendix B, Contract Term – Extension. In the event a replacement Contract has not been issued, any Contract let and awarded hereunder by the State may be extended unilaterally by the State for an additional period of up to 30 calendar days upon notice to the Contractor with the same terms and conditions as the original Contract and any approved modifications. With the concurrence of the Contractor, the extension may be for a period of up to 90 calendar days in lieu of 30 calendar days. However, this extension automatically terminates should a replacement Contract be issued in the interim.

PERIODIC RECRUITMENT

This Contract allows for periodic recruitment of additional Contractors during the term of the Contract.

Recruitment periods are optional at the discretion of the State. Additional recruitment periods will be advertised in the NYS Contract Reporter. Bidder must register with the New York State Contract Reporter at https://www.nyscr.ny.gov in order to receive notifications regarding any periodic recruitments under this Solicitation. Bids shall be evaluated under substantially the same terms and conditions as the original Bids. Bidders shall also be required to submit necessary documentation for any additional applicable statutory requirements in effect at the time of the new Solicitation.

GROUP 02450 – Food (Commercial and Retail) (Statewide) AWARD PAGE 9

Once awarded a Contract, a Contractor may not resubmit a Bid for future consideration for Products covered by the scope of the awarded Contract. In addition, if a Bid is deemed non-responsive during the initial Solicitation or any recruitment period, a Bidder cannot reapply for a future Contract until the next recruitment period.

SPECIFICATIONS

General Product Requirements

Product shall be the same as furnished to the general trade; meet or exceed USDA, USDC, State, and industry standards and requirements; have a freshness parameter for Authorized Users to have sufficient time from the date of delivery to consume these foods before quality deteriorates; and conform to State, Federal and industry standards with respect to safety. Conformance to standards and requirements shall include, but not be limited to:

• weights;

• measures;

• fill of containers;

• drained weights;

• contamination; or

• condition on delivery.

The Contractor guarantees any Product delivered complies in all respects with standards and regulations established by Federal or New York State laws, including the Federal Food, Drug and Cosmetic Act, decisions of the U.S. Department of Agriculture, and decisions of the U.S. Department of Commerce. The Contractor also guarantees any Product delivered is not adulterated or misbranded within the meaning of standards and regulations established by Federal or New York State laws. The Contractor may be required to submit a letter of guarantee from the supplier stating their compliance with Federal and/or New York State laws and regulations.

All requirements apply to any Product that may be purchased from the Contract.

Lot Specific Requirements

Lot 1 – Commercial Requirements

Ability to Provide Emergency Service:

Some Authorized Users may, on occasion, require emergency same-day service either for direct delivery or Authorized User pick-up of Products. Contractor shall have staff, or an emergency contact available on a 24-hour basis. In the event of a Gubernatorial declared emergency in accordance with Executive Law §28, Contractor shall coordinate with the Authorized Users for emergency contingency plans. The State reserves the right to request proof of such emergency contingency plans.

Delivery After Receipt of Order:

Unless otherwise arranged with Authorized User, regular delivery days will be scheduled as far as three weeks in advance. However, Contractor may be required to add to existing orders or deliver new orders for next business day delivery.

Lot 2 – Retail Requirements

Delivery After Receipt of Order:

Delivery is required within seven calendar days unless otherwise arranged with Authorized User.

Pathogens

No Escherichia coli 0157:H7, or any other pathogens, are permitted in any Product.

GROUP 02450 – Food (Commercial and Retail) (Statewide) AWARD PAGE 10

Frozen Product

The maximum time Products may be held in a frozen state prior to delivery shall be as follows:

FRESH FROZEN MEAT (except Ground and Diced Meat) - 90 calendar days GROUND & DICED MEATS - 45 calendar days CURED & PROCESSED MEAT - 45 calendar days

Kosher and Passover Certification

Any Product designated as "Kosher" and “PARVE” (prepared without meat, milk, or their derivatives) shall comply and be labeled with a common accepted Kosher symbol as identified by the Chicago Rabbinical Council and listed on their website: http://www.crcweb.org/agency_list.php and shall meet all the requirements of that certification.

All Baked Goods Products designated as “Kosher” and “PARVE” are to be free of pork and pork by-products. Only vegetable oils shall be used in the making of Products designated as “Kosher” and

“PARVE”.

Any Product designated as "Passover" shall comply with all requirements for Passover and be labeled with the correct certification.

Lots 1 and 2 Grades & Specifications

All Products offered shall be grade B or better, unless otherwise specified.

For meat Products, the State recognizes there are different grades of beef, pork and lamb available in the industry. All Products (beef, pork and lamb) offered for the bid shall be “USDA Select or Better”. For poultry Products, Bidder must provide” USDA Grade A. All frozen vegetables shall be individually quick frozen (IQF), spec bulk pack.

OGS and/or Authorized Users have the right on demand, to request verification that the specifications and grades for the food ordered are being provided by the Contractor.

Mold, Bacteria, Etc.

Products shall adhere to industry and government standards for levels of mold, bacteria, etc.

Freshness Codes

Packaging shall contain an easily understood freshness code that contains the last date of use or sale, expressed in terms similar to “fresh thru”, “use by”, “for sale by” or some other logo easily read or understood by the general public.

Trans Fats

Any Food Product containing partially hydrogenated vegetable oil, shortening or margarine must contain less than .05 grams of trans fat per serving. Upon request of an Authorized User, and when available from a specification sheet, the actual amount of trans fat per 100 grams of Product (0.1 gram increments) shall be provided to the requesting Authorized User.

Labeling and Nutritional Information Specification

Any Food Product listed on the Price Guides under the resultant Contracts must meet the FDA labeling guidelines unless otherwise specified by the ordering Authorized users. Contractor must supply ingredient list and nutritional analysis on their website and/or by providing a nutritional analysis within 48 hours upon request of OGS and/or Authorized users.

GROUP 02450 – Food (Commercial and Retail) (Statewide) AWARD PAGE 11

Executive Order 22 Approved Specifications for Food

NYS Executive Order Number 22 imposes certain requirements on State Agencies, authorities, and public benefit corporations when procuring Products. Please see Section titled Environmental Sustainability and NYS Executive Order Number 22 for details. Contractors are encouraged to stock and furnish the following items that meet the Executive Order Approved Specification.

Food Service Containers and Wrappers

The following are covered Products: containers and wrappers used to serve food, including but not limited to plates, bowls, hot and cold cups (including portion cups, lids and insulating sleeves);

sandwich or other types of food wrappers made of paper, aluminum or other materials; food trays and liners; and food take-out containers with hinges, folding closures, or lids (e.g., clamshells, boxes, and soup containers). The specification does not cover containers or wrappers used at food processing locations or used to ship food to retail or service locations. The specification does include requirements and desirable attributes for packaging used to ship empty food service containers to food service locations.

Link to the specifications of these items:

https://ogs.ny.gov/greenny/food-service-containers-and-wrappers

Single Use Food Service Utensils

Covered Products: Light to heavy weight duty, single-use utensils (spoons, forks, knives, soup spoons). Link to the specifications: https://ogs.ny.gov/greenny/single-use-food-service-utensils

PRICE

NYS Net Delivered Price

“NYS Net Delivered Price” is computed as follows:

1. The Contractor supplier cost (equal to the last invoiced Cost of Product plus Incoming Freight minus applicable Allowance) multiplied by the Category Percent Markup results in “markup in dollars”.

2. The “markup in dollars” is then added to the bidder supplier cost to calculate the “NYS Net Delivered Price”.

The same formulas are used for all Products in the Price Guides (being the same to each location regardless of shipping point).

The Distribution Center(s), as set forth with the Bid shall be used throughout the Contract term. In the event the distribution center location changes, Contractor must obtain prior approval from OGS.

Contractor Supplier Cost

The Contractor Supplier Cost shall be the last invoiced cost for each item. Contractor shall include the most recent cost of each item on each Price Guide.

Contractor shall be required to aggressively monitor costs (including but not limited to price increases and any applicable rebates, allowances, etc. impacting Supplier Cost, or NYS Net Delivered Price) in comparison with market conditions, State usage, supplier pricing and Authorized User requests and to negotiate decreases, seek competition, or change suppliers as necessary to ensure the best value for the State in the most efficient, effective procurement manner.

GROUP 02450 – Food (Commercial and Retail) (Statewide) AWARD PAGE 12

Negotiated Pricing on Behalf of OGS

For any Food related Products where pricing has been negotiated on behalf of NYS, OGS strongly encourages all manufacturers and/or suppliers release all pricing, allowances, rebates, etc. to Contractors.

Percent Markup

Contractor’s percent markup shall include, but not be limited to, any and all costs necessary to successfully serve all NYS Authorized Users, such as:

• delivery to the door at facilities where there is no dedicated receiving dock

• palletized or cart/hand truck delivery as required by Authorized User (see Section titled Product

Delivery)

• “restricted” delivery (see Section titled Restricted Delivery)

• use of appropriate vehicles to accommodate site limitations

• compliance with local ordinances and restrictions

• furnishing special packaging for certain Authorized Users security requirements

• maintenance and furnishing of updated Price Guides for all Lots, including special designations by Product as needed, and web-based ordering system (for Lot 1 and Lot 2)

Contractor must offer all Categories within the Lot(s)/Regions for which they have been awarded.

Markups shall be automatically applied to the listed Products.

The percent markup bid shall not exceed two decimal places (e.g., 6%, 6.5%, 6.25% are permitted;

6.875% is not permitted). Any percent markup bid which goes beyond the allowed decimal place shall be rounded to the second decimal place (i.e. 6.246% shall be rounded to 6.25% and 7.232% shall be rounded to 7.23%). The percent markup must be between 0.00% and 100.00%

Percent markup for all Products, shall not increase during the resultant Contract award. A decrease in percent markup is permitted at any time.

New York State Bottle Bill

Contractors shall collect a bottle deposit fee as necessary. Contractors are only permitted to charge Authorized Users the bottle deposit fee they paid. The bottle deposit fee shall not be included on the price guides and should be added to the invoice as a separate line item. The Contractor may need to provide additional information, such as invoices, as justification for any bottle fees over five cents per bottle. For additional information, please visit https://www.dec.ny.gov/chemical/8500.html.

Incoming Freight

After issuance of award and throughout the Contract period, a Contractor may be required to demonstrate the reasonableness of the method of freight chosen, is the best value for the State. The State reserves the right to determine that the lowest price available should be applied if Contractor selects a shipping methodology that is higher than common carrier published rates charged for similar deliveries.

Allowances

Applicable allowances shall include those granted to Contractor and shall be defined as:

• Any manufacturers/suppliers credits, allowances or rebates shown on the invoice to the

Contractor that reduce Supplier Cost, or NYS Net Delivered Price

• Governmental and non-profit promotions, discounts or allowances

• Special negotiated pricing agreements for NY State

• Volume discounts negotiated directly by OGS or Authorized Users

GROUP 02450 – Food (Commercial and Retail) (Statewide) AWARD PAGE 13

• New York State’s proportional allocation of a Contractor’s discounts or rebates for aggregate volume or growth programs, or additional reductions based upon size of order and deliveries by Supplier to the Contractor.

The State must directly benefit from any price reductions, credits, refunds or other rebate pass-throughs from all applicable allowances including those obtained by Bidder/Contractor. If a Bidder is able to capture any allowances due to NY State volume, it is required to use the additional savings to lower “NYS Net Delivered Price” by specifically enumerating the allowances.

Allowances shall not include earned income rebates such as merchandising, freight management, consolidated warehousing distributions, or other value-added logistical, promotional or operational services, etc.

All applicable allowances must be passed through to the State whether or not such allowances are presented in Bidder's Bid or Price Guides.

In the event that the Contractor receives applicable allowances, credits or rebates on Products after the Product is invoiced to the Authorized User, the Contractor is required to apply a credit to a future invoice for the respective purchaser or some other form of reimbursement, in an amount equivalent to the value of the rebate. In the event that a credit is not applied, reimbursement may be made via a year-end payment of applicable allowances. The amount paid would be based on a calculation of the applicable allowance earned but not included as a reduction in cost at the time Contract prices were established. The amount an individual entity would be reimbursed is directly related to their portion of spend on the Products that qualify for the applicable allowance.

Rounding Calculations for Determining Costs and Final Price

All prices used to determine “NYS Net Delivered Prices” are to be rounded to no more than two decimal places. Any quoted price which goes beyond the allowed decimal place shall be rounded to the second decimal place (i.e. $6.246 shall be rounded to $6.25 and $7.232 shall be rounded to $7.23).

Rebates

The State reserves the right to determine the disposition of any rebate settlement, restitution, liquidated damage, etc. which arise from the administration of this Contract.

Packaging/Container Security Requirements for Selected Authorized Users

Correctional facilities, and other self-identified Authorized Users, require packaging and containers that minimize possible security problems (i.e., do not include wire, metal, sharp edges, glass, etc., that may possibly be fashioned into a weapon). Contractor and Authorized User shall mutually agree to modify and/or change packaging and/or containers for delivery to some locations, in order to reduce potential security risks. There shall be no additional charge for Contractor's packaging or containers used to meet security requirements.

PURCHASES FROM PRICE GUIDE

Authorized Users are to make purchases from the Contractor’s Price Guide identified in Section titled Price Guides. Prices established in the Price Guide shall be calculated as described in Section titled Price, using cost as defined in Section titled Contractor Supplier Cost.

Price Guides

The Price Guides shall include all Products regularly stocked by Contractor that are provided to the trade in general for the specific Lots they were awarded.

Price Guides shall include at least the following fields:

• Product Category (i.e., Dairy, Produce, Meat/Poultry/Fish, Frozen, Baked Goods, etc.);

GROUP 02450 – Food (Commercial and Retail) (Statewide) AWARD PAGE 14

• Product Brand or Manufacturer;

• Product Stock Number;

• New York State Product;

• Product Description;

• Unit of Measure;

• Pack/Quantity;

• Size;

• Supplier Cost;

• Incoming Freight if not included in Delivered Price;

• Applicable Allowances as defined in Section titled Allowances, Applied Per Item;

• Percent Markup;

• Markup in Dollars; and

• “NYS Net Delivered Price” (as defined in Section titled Price).

Price Guides will be reviewed and verified against current market prices to ensure that the State is receiving pricing that is reasonable when compared with the industry at large. Please also see Section titled Price Changes.

Price Guides shall be updated weekly and monthly, as required in Section titled Price Changes.

OGS will determine the effective dates of the Price Guides being used immediately succeeding Contract start date(s). The effective dates of the weekly Price Guide shall be specified by the Contractor and shall be fixed for a one-week period. The monthly prices shall be effective beginning the first day of the month and shall be fixed for the one-month period. Pricing shall be effective on the date of delivery.

All prices in the Price Guides distributed to Authorized Users shall be identical for all distribution locations. Additionally, all items in the Price Guides shall be available to all Authorized Users in the awarded region. Ideally, the Product numbers (i.e., stock numbers) should be the same for identical items from all participating branches/warehouses/distribution centers, etc. Where Products are not numbered identically, Contractor shall be required to submit cross-reference sheets.

NOTE: Both before and after award, the State reserves the right to:

• modify the fields that are to be displayed in the Price Guide;

• to add or delete Products from the Price Guides as deemed necessary.

Price Guide Maintenance

Contractor(s) shall submit updated Price Guide to OGS in electronic format to the attention of the individual designated by Contract. The latest Price Guide will then be published to OGS’s website.

There may be times when the Contractor has no changes to report in their Price Guide (i.e., no price adjustments or Product add/delete). Contractor may elect to continue using the previous Price Guide as long as it remains current. When the Contractor elects to use the previous Price Guide, Contractor must notify OGS in writing that there were no changes to the Price Guide and Contractor is using the previous Price Guide.

At no charge to Authorized Users, the Contractor must prepare, supply, and keep Price Guide current. Identical Price Guides must be made available electronically to Authorized Users and OGS and must be available at least one (1) business day before the effective date of the Price Guide.

Pre-approval of Price Guides by OGS is not required. However, OGS reserves the right to remove Products if it deems the prices unreasonable or not within the scope of the Contract. Electronic and/or hard copies of the Price Guide must be submitted to Authorized Users, upon request. All information in all distributed copies of the Price Guide (hard copies, electronic transmittals and web-based pricing) shall be identical. In the event of a discrepancy, it is the Contractor's obligation to notify OGS and Authorized Users of the governing source pricing (hard copy, electronic transmittals, or web based). Prices may be reduced at any time; however, price increases other than those discussed in Section titled Price Changes, shall not be permitted.

Failure to maintain accurate, timely Price Guides may result in Contract cancellation.

GROUP 02450 – Food (Commercial and Retail) (Statewide) AWARD PAGE 15

Price Changes

Prices established in the Price Guide shall be calculated as detailed in Section titled Price, (less applicable allowances etc.). Adjustments (increases or decreases) shall be made as shown below:

Adjustments shall be calculated and reflect the reduction from applicable allowances as defined in Section titled Price. All Price Guides created for this solicitation and resultant award are subject to audit by the State.

OPPORTUNITY BUYS

The State may utilize drop shipment, spot or opportunity buy, or trailer load incentives when an Authorized User is able to benefit from either the Contractor or third-party food vendor. To qualify for the drop shipment, spot or opportunity buy, or trailer load incentive, the order must be greater than $2,500.

The Contractor shall have the right of first refusal to fulfill the Authorized User’s request. The Contractor will have 48 hours, from when an Authorized User initiates a drop shipment, spot or opportunity buy, or trailer load request to notify the Authorized User whether Contractor would like to fulfill the Authorized User’s request. Should the Contractor be unable to fulfill the request within the 48 hours time period, the Authorized User shall be able to initiate a drop shipment, spot or opportunity buy or trailer load order with a third-party vendor. The third-party vendor will transport the food order directly to the Authorized User location, bypassing the Contractor from physically handling the food order. In the instance that the Authorized User utilizes a third party for transportation, the Contractor will not be responsible for the actual receiving of the drop shipment at its warehouse or transporting it to the Authorized User facility.

If the Contractor does not process or transport the drop shipment, spot or opportunity buy, or trailer load order the Contractor shall not invoice the Authorized User for any charges for the drop, spot or opportunity buy, or trailer load shipment order.

In instances where Contractor has participated to process the drop shipment, spot or opportunity buy, or trailer load, the Contractor may add a Percent Markup to the delivered invoiced price of the order not to exceed the Category Markup for the appropriate Category. Contractor may engage a third party in such a purchase, however, no change from the initial supplier’s spot price shall be allowed. Opportunity buy purchases must be identified in the Contractor’s regular reporting requirements to OGS. See also Section titled Reporting.

BEST PRICING OFFER

Lot Category Adjustment Frequency

Lot 1- Commercial

Dairy Weekly Produce Weekly Meat, Poultry and Fish Weekly Frozen Monthly Ambient, Canned and Dry

Monthly

Baked Goods Monthly Non-food Monthly

Lot 2 - Retail

Dairy Weekly Produce Weekly Meat, Poultry and Fish Weekly Frozen Monthly Ambient, Canned and Dry

Monthly

Baked Goods Monthly Non-food Monthly

GROUP 02450 – Food (Commercial and Retail) (Statewide) AWARD PAGE 16

During the Contract term, if the Commissioner becomes aware that the Contractor is selling substantially the same or a smaller quantity of a Product outside of this Contract upon the same or similar terms and conditions as that of this Contract at a lower price to a federal, state or local governmental entity, the price under this Contract, after consultation with the Contractor, may be reduced to a lower price on a prospective basis at the discretion of the Commissioner. The Commissioner reserves the right to request information to verify pricing for the purposes of this clause.

PRICE STRUCTURE

If, during the Contract Term, the Contractor is unable or unwilling to meet contractual requirements in whole or in part based on the price structure of the Contract, it shall immediately notify the Office of General Services, Procurement Services in writing. Such notification shall not relieve the Contractor of its responsibilities under the Contract. The State may, but is not required to, consider an equitable adjustment in the Contract terms and/or pricing in the circumstances outlined in Appendix B, Savings/Force Majeure.

Should the Commissioner in his or her sole discretion determine during the Contract Term that (i) the Contract price structure is unworkable, detrimental, or injurious to the State, or (ii) the Contract price structure results in prices which are unreasonable, excessive, or not truly reflective of current market conditions, and no adjustment in the Contract terms and/or pricing is mutually agreeable, the State may terminate the Contract upon 10 business days written notice mailed to the Contractor.

SAMPLES AND TESTING

The State has the right to request samples at no charge and test any Product available under the resulting Contract in order to determine whether the item is acceptable and meets specifications and grades.

NEW YORK STATE FOOD PRODUCTS

Bidders and Contractors shall be required to designate New York State Food Products as defined in Section titled Definitions, in their Price Guide(s). State Agencies are expected, and New York state public authorities and entities are strongly encouraged, to purchase New York State Food Products, unless the item does not meet their institutional or programmatic needs.

Healthier Food Products (Meet NYS Food Standards/Guidelines)

Contractors may be required to designate whether Food Products meet (or exceed) NYS Food Standards/Guidelines for healthier Food Products.

Designate Healthier Food Products Contractors are encouraged to designate Healthier Food Products in their Price Guides, based on the NYS food Standards/Guidelines, which will be provided to Contractors by OGS when available.

New York State Education Department NYS Food Products Definition Contractors may be required to designate whether food Products meet the NYS Department of Education (NYSED) definition of NYS Food Products. The NYS Education Department defines NYS Food Products as: “Any New York State (NYS) Food Product purchased and used in the reimbursable meal for the school lunch program may contribute toward the 30% NYS Initiative. A “NYS Food Product” is defined as:

• A food item that is grown, harvested, or produced in NYS; or

• A food item processed inside or outside NYS comprising over 51% agricultural raw materials grown, harvested, or produced in NYS, by weight or volume.

“Producing” means the producing of food grown upon and/or harvested from the farm or waters through agricultural, horticultural, aquacultural, or dairying processes.

“Processing” means any alteration of a food Product from its raw or original state to enhance its value or render it suitable for consumption. Examples of processing include, but are not limited to, GROUP 02450 – Food (Commercial and Retail) (Statewide) AWARD PAGE 17 butchering of meat or poultry, and cooking, pasteurizing, and/or packaging food Products,” (NYSED Child Nutrition Program Administration http://www.cn.nysed.gov/content/additional-state-subsidy-purchasing-new-york-state-food-products).

Additional information and guidance regarding Additional State Subsidy for Purchasing New York State Food Products for school lunch programs and the “30% NYS Initiative” is located at:

https://agriculture.ny.gov/30-percent-initiative

ESTABLISHING STATE AGENCY FOOD PURCHASING GOALS FOR NEW YORK STATE

AGRICULTURAL PRODUCTS AND NYS EXECUTIVE ORDER 32

New York State has established State Agency purchasing goals for New York State Food Products and provided greater discretion to school districts to purchase New York agricultural products to strengthen local economies and contribute to a more resilient and equitable food system statewide.

Executive Order No. 32 (“EO32”) requires State Agencies to specify the purchase of New York State Food Products whenever feasible, and attempt to increase purchasing as follows: (i) on or before the end of 2023, 5 percent of such State Agency’s food or food product purchase shall be New York State Food Products; (ii) on or before the end of 2024, 15 percent of such State Agency’s food or food product purchase shall be New York State Food Products; (iii) on or before the end of 2025, 20 percent of such State Agency’s food or food product purchase shall be New York State Food Products; (iv) on or before the end of 2026, 25 percent of such State Agency’s food or food product purchase shall be New York State Food Products; (v) on or before the end of 2027, 30 percent of such State Agency’s food or food product purchase shall be New York State Food Products.

Contractor shall note the New York State Food Products available on their pricelist. OGS reserves the right to require Contractor to provide supporting documentation to demonstrate how their product(s) meet the definition of a New York…