3-Attachment B.pdf

Scope of Work Attachment B

SB26-8 Dairy Products (Excluding Milk)

1. PURPOSE

The purpose of this State of Utah Cooperative Contract is for Dairy Products (excluding Milk) and will be for the benefit and use of all Eligible Users, which includes the State of Utah’s government departments, institutions, agencies, political subdivisions (e.g., colleges, school districts, counties, cities, etc.), and, as applicable, nonprofit organizations, agencies of the federal government, or any other entity authorized by the laws of the State of Utah to participate in State Cooperative Contracts.

Any awarded contract may be modified to incorporate new technology or technological upgrades related to the Scope of Work throughout the term of the contract.

2. ANTICIPATED PRODUCTS & SERVICES / BACKGROUND

A. Anticipated Products: Awarded contractors are expected to provide a variety of dairy products, including but not limited to:

i. Dairy Staples: Cheese, Butter, Yogurt, Sour Cream, and Eggs (no Grade AA eggs in carton).

ii. Liquid/Frozen Eggs: Refrigerated whole eggs with citric acid, pasteurized for maximum food safety.

iii. Dairy Alternatives: Soy, Almond, and Coconut milk alternatives.

B. Background: The chart shows Eligible User spending between 2020-2025. A contract award does not guarantee any sales.

State Agencies $2,509,719.85 K-12 Schools $2,369,421.44 Higher Education $564,716.89 Non-Profit $495,704.04 Counties $388,380.72 Cities $18,295.43 Other $3,295,743.44 Total Usage $9,641,981.81

3. SCOPE OF WORK

The Contractor must provide dairy products and related services in accordance with the following requirements:

3.1 Regulatory Compliance & Food Safety

a) USDA Grading: All products for which a USDA grading standard exists must meet the requirements for USDA Grade A (the highest grade available).

b) Fresh Eggs: Must meet requirements for USDA Grade AA (the highest grade available).

c) Plant Certification: All dairy plants shall be approved by the Dairy Grading Branch, Dairy

Division, Agricultural Marketing Service, United States Department of Agriculture (USDA) and be assigned an official USDA plant number.

d) HACCP & Sanitation: The Contractor shall maintain and follow a Hazard Analysis Critical Control Point (HACCP) Plan and comply with all Utah Department of Agriculture and Food health and sanitation requirements.

e) Buy American Provision: In compliance with the National School Lunch Program, the Contractor must supply "domestic commodities or products" (processed in the U.S. using over 51% domestic agricultural commodities). Certification for each product is required.

f) Labeling: All labels must declare ingredients per the Food Allergen Labeling and Consumer Protection Act, specifically identifying milk, eggs, fish, crustacean shellfish, tree nuts, peanuts, wheat, and soybeans.

g) Shelf Life: All products shall be manufactured, packaged, and delivered in a time frame to ensure adequate post-delivery shelf life for each purchaser. Products shall be properly handled and stored to maintain product quality.

3.2 Specific Product Specifications (Standards of Identity)

All moisture and fat content analyses shall be determined in accordance with the Official Methods of Analysis of the AOAC International and of analysis identified in 21 CFR Part 13.5.

Product Type Standard of Identity

(21 CFR)

Min. Fat (Solids)

Max.

Moisture Notes

American Process Part 133.169 47% 43% Slices must be separated cleanly.

Swiss Process Part 133.169 43% 44% Flavor characteristic of Grade B Swiss.

Cheddar (Shredded) Part 133.113 50% 39% Rindless; packaged in 5lb poly bags.

Mozzarella (PS) Part 133.158 30% 52% Low moisture; packaged in 5lb units.

Parmesan (Grated) Part 133.165 32% 32% Packaged in 5lb units.

Provolone Part 133.181 45% (FDB) 45%

Cream Cheese Part 133.162 N/A N/A Must meet 7 CFR Part 58 standards.

• Cream Cheese Additives: Products containing other foods (chives, fruit, etc.) must comply with 21 CFR Part 134. Added foods must be free from mold or rancid flavors.

• Flavor Profile: Cream cheese must possess a slight lactic acid and cultured diacetyl flavor with no off flavors (bitter, sulfide, yeasty).

3.3 Delivery Requirements

a) F.O.B. Destination: All prices are delivered prices. Deliveries shall be F.O.B. destination, freight pre-paid, with no fuel surcharges allowed.

b) Schedule: Normal deliveries occur Monday through Friday, 8:00 a.m. to 3:00 p.m.

c) Lead-Time: Delivery lead-time shall not exceed 7-10 business days after receipt of order.

d) Substitutions: No substitutions are allowed without prior approval from the end user.

e) Inspection & Receipt: Items shall be inspected by the delivery driver and end user, and if found to be defective or fail in any way to meet the specifications or approval of the end user, the items may be rejected and/or returned. Contractor shall leave a receipt for end user after inspection noting any issues with the delivery.

f) Shortages: Shortages shall be reported and replaced by the Contractor within a time frame agreed upon by both parties at no additional charge.

g) Security Clearance: It shall be the Contractor’s responsibility to gain proper clearance for drivers prior to any deliveries to the Department of Corrections, if necessary.

3.4 Ordering and Customer Service

a) Ordering Process: Contractor must provide their company website address and instructions for online ordering.

b) Minimum Orders: Minimum order requirements may not exceed $600. There are no minimum case count limits. Contractors must explicitly state their minimum purchase order amounts, if any.

c) Delivery Fees: If the minimum order requirement is not met, the Contractor must clearly specify the applicable delivery fee on their cost sheet to be added to the invoice total, if any.

d) Quality Assurance: Contractor must provide one local authorized representative available by phone or email between 9:00 a.m. and 4:00 p.m., Monday through Friday.

i. A representative must be available for technical support via telephone or email.

ii. A customer service representative must respond to all inquiries within 24 hours.

4. PRICING INFORMATION

a) Fixed Fee & Mark-up: Pricing includes a fixed fee derived from supplier cost or a mark-up percentage from the supplier's price (including freight) to arrive at the invoiced State price.

b) Catalog Requirement: Awarded contractor must provide a catalog or full cost sheet of all product items within the scope of Dairy Products (excluding milk).

c) Price Guarantee: All pricing and rates are guaranteed for (3) three months. No price increase requests will be considered if the contract is within the price guarantee period.

d) Invoicing & Adjustments: Approved price increases will become billable only after the revised pricing is officially posted to the Purchasing website; retroactive pricing is not permitted. End users reserve the right to adjust any invoice that reflects incorrect pricing.

e) Payment: Agencies and end users will not make any advance payments. No credit card processing fees may be charged to the State.

5. CONTRACT MANAGEMENT PROCESS

5.1 Price Adjustment Request Process

a) Submission: Price increase requests must be submitted via email to the contract manager at least 10 days prior to the requested effective date.

b) Justification: Requests must include documentation such as manufacturer notification letters, supplier invoices (old vs. new), or PPI/CPI charts.

c) Decreases: Any decrease in costs for the supplier must be reflected in a price adjustment for the State.

d) Validation: The Division of Purchasing will verify pricing and may approve only a portion of the request or deem it invalid.

e) Revision Process (Mid-Guarantee Period Changes): Any changes requested within the three-month price guarantee period, including deletions, additions, or price increases that do not affect all product items across the board, shall be processed as a contract revision.

f) Amendment Process (Across-the-Board Price Increases): A formal contract amendment shall only be required and executed if a price increase is applied to all contract items across the board.

5.2 Product Additions, Deletions, or Replacements

a) Revisions: Contractors must submit requests for product revisions in writing to the Division of Purchasing to keep offerings current.

b) Required Data: All requests must include product descriptions, item numbers, brand, description, manufacture number, place of origin, pack/size, indicate kosher/gluten free and price.

c) Scope Validation: The Division of Purchasing must validate that new products are within the original scope of work and determine if the cost is reasonable.

d) Obsolete Products: Obsolete products will be deleted, and the effective date for any revision will be noted on the Contract website.