257NUTRL5 - Attachment A - final.docx

135 Santilli Highway, Everett, MA 02149 | 781.338.3000 | TTY: N.E.T. Relay (800).439.2370

Attachment A USDA Foods Diced Tomato Processed Sauces

Alternate ID #: 27NUTRL5 COMMBUYS Bid #: BD-27-1026-DOE02-DOE01-130645

Background:

The Massachusetts Department of Elementary and Secondary Education (DESE) is seeking a vendor to provide the Food & Nutrition Department with Tikka Masala and Marinara Sauces processed with USDA Foods Diced Tomatoes. The products from the awarded vendor of this contract will be purchased by the awarded vendor under RFR # 27NUTRL4, currently posted on COMMBUYS.

Scope of Service:

DESE is looking to secure a vendor to provide the Food & Nutrition Department with Tikka Masala and Marinara Sauces processed with USDA Foods Diced Tomatoes with proven K-12 student acceptance and the following specifications:

Tikka Masala: Case size of 3/1-gal containers per case; meet ¼ cup red/orange vegetable per 2 oz serving per USDA Child Nutrition meal pattern requirements; Peanut free; buy American compliant; contain no artificial flavors, colors, preservatives, or sweeteners.

Marinara: Case size of 3/1-gal containers per case; must contain 25% fresh tomatoes grown and harvested in the state of MA; meet ¼ cup red/orange vegetable per 2 oz serving per USDA Child Nutrition meal pattern requirements; Peanut free; buy American compliant; contain no artificial flavors, colors, preservatives, or sweeteners.

The vendor must hold a National or MA State Approved Processing Agreement; be able to obtain a Processor-Distributor Agreement for all USDA Processed Foods with the state contracted warehouse-distributor; and have the ability to accept truckloads of diced tomatoes directly from USDA per the SY26-27 schedule below:

Estimated cases of finished products for SY2026-27 are as follows:

The Department reserves the right to increase/decrease quantities based on demand throughout the life of the contract award.

Foods must be in accordance with all Federal laws and Massachusetts statutes and regulations:

The vendor shall comply with the current and all subsequent revision requirements of Massachusetts Department of Public Health Regulations 105 CMR 500.000-Good Manufacturing Practices for Food and 21 CFR Part 110.00: Current Good Manufacturing Practice https://www.mass.gov/lists/food-protection-program-regulations Processing facilities and warehousing practices must be in compliance with the United States Food, Drug and Cosmetic Act and any applicable Massachusetts statutes or comparable state food laws if located outside of Massachusetts.

Budget:

DESE will not pay the vendor directly for purchases. Purchases will be made via the awarded vendor under RFR # 27NUTRL4.

A price increase shall not occur during year 1 of the contract. A Vendor may request, in writing, a price increase at least thirty (30) days prior to the effective date of each renewal year, which may be granted or denied by the Department. The Vendor must provide proof that the price increase is justified, and any such price increase shall be based on price changes reflected in the CPI for Boston-Cambridge-Newton, MA-NH but never to exceed 5%. If the price increase is denied, the Vendor must continue service, at the original contracted price, until a new contract can be established, usually within 60 days.

Submission Requirements:

Documentation required for submission include:

1. Product specification sheets and Summary End Product Data Sheet (SEPDS);

2. Three (3) references (including customers in MA, if applicable) that include: name of company, contact name, telephone number, description of work provided, (do not include references from DESE);

3. Commitment to arranging delivery/pick-up of products with DESE’s state-contracted warehouse;

4. Completed USDA Diced Tomato Sauces RFR Fee Sheet;

5. Current license to operate in accordance with Massachusetts General Laws, Chapter 94, Section 305 C issued by the Massachusetts Department of Public Health, Food and Drug and the most recent inspection report conducted by the Massachusetts Department of Public Health, Food and Drug or comparable state license(s) and inspection report if the warehouse is outside of Massachusetts;

6. A detailed company profile providing company background information, experience and qualifications, and capacity of facility, etc.

7. Continuity of Operations Plan, Food Defense Plan and Food Recall Procedures;

Financial Stability:

Successful vendors must have adequate financial resources to sustain operations and must provide financial statements for the past 2 years with the RFR response. Information, including a detailed description of any company bankruptcy proceeding, name changes, litigation, including pending litigation, and any defaults on contracts that have occurred within the last five (5 years) shall be provided with the RFR response.

Insurance:

Vendors must purchase and maintain at their expense the following types of insurance and provide certificates within 30-days of the awarding of the contract.

1. The Department requires a complete and valid certificate of insurance prior to the commencement of any service or activity specified in this solicitation. Such certificate shall include a commitment to provide the Department with thirty (30) days’ advance notice of cancellation or nonrenewal. The Department will notify the successful Contractor of the intent to issue a contract award. The successful Contractor must at that time submit an original copy of the Certificate of Insurance for Coverage in the minimum amounts stated. The coverage shall be maintained in full force during the term of the contract and shall not serve to limit any liabilities or any other Contractor obligations.

2. “All Risk” escalating warehouse contents insurance with coverage equal to the cost value of the donated foods in its possession at any time, with an estimated minimum of $100K Dollars. Contractors must submit a copy of the Certificate of Insurance for the following fiscal year by June 30th of the preceding year.

3. The insurance coverage is to protect the value of the Foods stored at the Contractor’s facility per 7 CFR 250.12(f)(5).

Warehousing:

The Vendor’s facility utilized to service this contract must be of adequate size to warehouse the foods indicated in this document, including unusual surges in inventories of frozen, chilled and dry foods, as well as expansions in the number of items.

The Department reserves the right to examine an offeror’s facilities to assure that the above qualifications are met prior to award of a contract. The Department’s decision as to the adequacy of the facility will be final.

Space Requirements: The Vendor must have adequate warehouse space to warehouse and protect products in accordance with the Massachusetts Department of Public Health Regulations 105 CMR 500.000-Good Manufacturing Practices for Food and 21 CFR Part 110.00: Current Good Manufacturing Practice, https://www.mass.gov/lists/food-protection-program-regulations The projected space requirements for the various item groups are as follows:

1. Dry Groceries-Regular Care: These are predominantly canned items which can be stored in a well-ventilated or cooled dry space.

2. Dry Groceries-Special Care: These are packaged, bagged or canned items which may require special care to prevent infestation or quality slippage and thus may require storage in air-conditioned (or refrigerated) space during hot periods.

3. Frozen: These items require storage at zero degrees F. Because of the high demand for frozen items, they normally turn somewhat faster than dry items.

4. Chilled: These items must be stored in refrigerated space at temperatures and humidity in accordance with Massachusetts Department of Public Health regulations 105 CMR 500.000-Good Manufacturing Practices for Food and 21 CFR Part 110.00: Current Good Manufacturing Practice https://www.mass.gov/lists/food-protection-program-regulations

Sanitation & Temperature Requirements: A Vendor will store, manage, and transport Foods in conditions that are sanitary, at proper temperature and humidity, and with adequate air circulation. The warehouse will be inspected annually by USDA, Comptroller General, and/or Department officials for sanitation and temperature requirements. At all times warehouse facilities and warehousing practices must be in compliance with Massachusetts Department of Public Health regulations 105 CMR 500.000-Good Manufacturing Practices for Food and 21 CFR Part 110.00 and the United States Food, Drug and Cosmetic Act.

a) The Vendor must provide the firm’s most recent health inspection certificate prior to contract approval.

b) Vendors must maintain daily logs on the temperature in all freezers, refrigerated or air-conditioned and dry storage rooms.

c) Vendors must agree to additional inspections by USDA or state officials if requested by the Department.

Inventory Practices: The contractor shall rotate all stock on a first-in, first-expired basis.

Perpetual Inventory: The Vendor shall maintain perpetual inventory of MA procured foods and processed foods made from USDA donated foods. Moreover, the Vendor will provide the Department with monthly electronic inventory reports and monthly audit transaction reports valued as of the last day of the month on the first business day of the opening month. Inventory reports must mimic the USDA FNS-155 format:

· List products by item code and description

· Beginning month’s inventory of both USDA Foods and finished products on hand

· Amount received by USDA

· Amount finished product shipped to state-contracted warehouse

· Any adjustments (with explanation)

· Ending balance of both USDA Foods and finished products on hand

· Expiration Dates For disaster or emergency planning, or in the event of an actual disaster or emergency, Vendor will be required to provide within 1- 24 hours an electronic report of current inventory levels of all products on hand.

Physical Inventory: At a minimum, Vendors are required to conduct an annual physical inventory, usually during the last two weeks of June. Vendors will not be allowed to receive or ship any food products into or out of the Department’s account during these two weeks. The Vendor must provide adequate staff and equipment to ensure an accurate count in an efficient manner for the duration of the physical inventory. The Department reserves the right to require the Vendor to conduct a physical inventory at any time.

Inventory Discrepancies: Should overage and shortage discrepancies between physical inventory and book inventory exist, such discrepancies shall be reconciled. Overages and shortages of foods will be settled by computing the value of such shortages and overages based on the “unit value” established by the Department, at the time of the procurement.

· If the value of shortages exceeds the value of overages, a monetary settlement for the differences in value will be required by the Contractor.

· If the value of overages exceeds the value of shortages, no settlement will be made.

· Book inventory will be adjusted after settlement to correspond with physical inventory, but no later than June 30 of the end of the fiscal year to which they pertain.

Once the physical inventory has been reconciled by both parties, it will be final. The Department will not allow prior year adjustments to be carried into current or subsequent years.

Product Damage after receipt: Any product damaged while in the care of the Vendor is to be reported to the Department immediately, including documentation of such damage with digital photos and completion of the Department’s Foods Damage-Loss Report. The Department will provide instructions to the Vendor regarding the disposition of the damaged product. The Vendor shall be financially responsible for all Foods released into his care.

PLEASE NOTE: Under Massachusetts General Laws (MGL) Chapter 7, Section 22O, state agencies must give preference to products or services from businesses whose principal place of business is in Massachusetts. This applies regardless of other laws, to the extent permitted by federal law.

Targeted Small Business and Local Business Goals The Operational Services Division must ensure that at least 15% of statewide procurement contracts in any fiscal year are with businesses that:

· Are independently owned and operated

· Have a principal place of business in Massachusetts

· Have been in business for at least one year

· Are defined as small businesses under federal law or as small businesses under Massachusetts’ small business purchasing program Responses MUST be uploaded to COMMBUYS. Responses not posted to COMMBUYS will not be considered for evaluation. Do not Email and/or mail responses to the department.

To respond to this bid, please register on the COMMBUYS website. If you need assistance contact the OSD Help Desk at OSDHelpDesk@mass.gov or (8am - 5pm ET Monday – Friday) at 1-888-627-8283 or 617-720-3197.

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