Scope of Work

Attachment B SB26-9 Canned Foods

1. PURPOSE

The purpose of this State of Utah Cooperative Contract is for Canned Foods 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 / BACKGROUND

A. Products: Awarded contractors are expected to provide a variety of canned food products, including fruits, vegetables, sauces, condiments, pastes, toppings, broth, seafood, juice, milk, noodles, and soups. All products for which a USDA grading standard exists must meet the requirements for USDA Grade A (the highest grade available)

B. Background: This chart shows the history of Eligible User spending for 2020-2025. There is no guarantee of sales with an Awarded Contract.

Agency Category Total Spend State Agencies $2,664,889x89 K-12 Schools $1,161,382.00 Counties $650,983.09 Other / Non-Profit $473,079.32 Higher Education $78,067.00 Cities $5,863.56 Total Usage $5,028,348.86

3. SCOPE OF WORK

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

3.1 Regulatory Compliance & Food Safety

a. FDA Registration: Commercial processors of shelf-stable, acidified foods (AF) and low-acid canned foods (LACF) must register each establishment and file scheduled processes with the FDA per 21 CFR 108.

b. 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.

c. 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 must be available for each product and is required upon request.

d. Labeling and Product Documentation: 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. In addition to allergen declarations, the labels must provide comprehensive product information, including detailed nutrition facts adhering to USDA required information, net weight, country of origin, and shelf-life data for all items.

3.2 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. Vendor 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 vendor within a time frame agreed upon by both parties at no additional charge.

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

3.3 Ordering & Customer Service

a. Ordering Process: Vendor 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 Vendor must clearly specify the applicable delivery fee on their cost sheet to be added to the invoice total.

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. Product Catalog: The Awarded Vendor must provide a catalog or a complete cost sheet of all product items within the Scope of Work category of Canned Foods.

b. 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.

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 advanced 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 (for nationwide increases), supplier invoices showing old vs. new pricing, 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, calculate the increase per line item, 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. 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.

b. 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.

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

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