Addendum No. 1 5.18.2021.pdf
PDF 88 KB Posted
- Attached to
- Dairy RFP
- Solicitation number
- RFP GIS 210000001804 2
- Issued by
- Genesee County, Michigan
About this file
This is Addendum Number 1 to a Request for Proposals issued by the Dairy County Consortium dated May 18, 2021, addressing clarifications on vendor questions regarding a milk supply contract. The bid opening is held at Genesee Intermediate School District located at 2413 West Maple Avenue, Flint, MI 48507-3493, with the bid deadline remaining firm at May 25, 2021 at 2:00 PM. The contract covers the supply of milk products including white milk in cartons and chocolate milk in cartons, distributed in cases of 50 units for pints and four units for gallons. Volume forecasts were determined individually by each participating school district based on their specific needs and predictions for the 2021-2022 school year. The contract term is two years through June 30, 2023, with potential extension options available. While the Consortium hopes to award the contract to a single vendor, it reserves the right to award separately to multiple vendors if doing so provides substantial cost savings. School districts retain the individual right to withdraw from the consortium and procure milk independently.
Contract pricing is established as firm based on the Class I milk cost during the April 2021 Federal Order period, with unit price adjustments permitted only when the Federal Milk Order Class I price fluctuates during the contract period. The adjustment shall be reflected at the beginning of the next billing period with two weeks' notice provided. Vendors have no allowance for cost increases related to other factors such as fuel, labor, or unforeseen business expenses beyond Federal Milk Order fluctuations during the initial contract period. However, for any contract extension periods beyond the initial two years, vendors may propose alternative pricing using a "not to exceed percent" structure, provided that any increases are justified with documentation from milk producers. This Alternate 1 option is optional for vendors to complete but may be considered in the bid selection process.
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Other files
| File | Type | Posted |
|---|---|---|
| GISD Consortium Milk Bid final draft.pdf |
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Text version
Dairy County Consortium RFP Addendum Number 1 dated 5/18/2021
This Addendum addresses vendor questions received. NOTE: The bid date for this Request for
Proposals remains unchanged, May 25, 2021 at 2:00 PM. All other terms and conditions of the bid shall remain in full force and effect.
1. Can you give an example of why the bid would be awarded to separate vendors?
Response: This is the language in the Invitation to Bid, “It is the hope of the Consortium to collectively award to one vendor, but reserve the right to award separately and individually.” This circumstance could occur in the event that product pricing from two different vendors provided substantial cost savings. For example, white milk cartons from Vendor A were the best price, while chocolate milk cartons from Vendor B were the best price.
2. Is the physical bid opening help at Cynthia McCain’s office? If not, where?
Response: From the Invitation to bid, the bid opening is located at:
Genesee Intermediate School District
2413 West Maple Avenue
Flint, MI 48507-3493
3. Why is it stated that bid prices submitted will be held firm until June 30, 2023, yet on (page 12) it discusses allowable price adjustments based on Federal Market Order/Michigan Milk
Producers pricing?
Response: From the Invitation to Bid, “Contract pricing shall be firm based on the cost or price of Class I milk (Federal Order price plus Premium) during the April 2021 period. Any subsequent change in the effective Class I price shall result in unit price adjustment, upward/downward, during the period of the contract.” Once the bid amount is set, the only permitted adjustments would be based on the fluctuation of the Federal Milk Order Class I pricing.
4. Also related to Alternate 1 contract extensions (page 23) because future market conditions (like fuel, labor, Covid) are unknown today will we have the opportunity to mutually (with GISD) determine unit cost increases?
Response: This is the vendors opportunity to propose future pricing for any potential contract extensions. This section does not have to be completed by the vendor, but may help in the bid selection process. Pricing is based on the language in the invitation to bid, unless otherwise proposed by the vendor in the Alternate 1 portion of the bid.
5. For the purpose of this form is a “unit price” and “extended price” the same? No column for quantity was listed.
Response: The extended price is the case price. In general, a case is distributed in quantities of 50 per case for ½ pints and quantities of four per case for gallons.
6. How were the individual school volumes forecasts determined? Prior (Covid) year 2020-21 or prior (full) in-service year 2018-19?
Response: The forecasted volumes were set by each district. Each district is best suited to determine their needs. We asked each district to make their predictions for 2021-2022 school year based on the information they know about their district.
7. Pricing is firm through 2023 besides market changes on class 1 based on MMPA. No option for vender on any unforeseen expenses over the next 2 years due to cost of do business? Wages, fuel. I am sure you are aware the country is in a huge shortage of truck drivers which the news is reporting some cause of the fuel spike at this time, forecasted to last years. This is causing a lot of unknown for vendors cost of doing business.
Response: From the Invitation to Bid, “Contract pricing shall be firm based on the cost or price of Class I milk (Federal Order price plus Premium) during the April 2021 period. Any subsequent change in the effective Class I price shall result in unit price adjustment, upward/downward, during the period of the contract.” Once the bid amount is set, the only permitted adjustments would be based on the fluctuation of the Federal Milk Order Class I pricing.
8. Is this bid a all or nothing bid one company? Or is there going to be multiple approved vendors and the school can choose their supplier? Example how HPS is? Contract states school has a choice regardless of the results of the bid?
Response: This is the language in the Invitation to Bid, “It is the hope of the Consortium to collectively award to one vendor, but reserve the right to award separately and individually.” We don’t anticipate offering an HPS-like system with multiple vendors. School districts retain the right to withdraw from the consortia and procure milk on their own.
9. Price notices contract requested 2 weeks. Normally we do not see the changes until 5 days before effective date. Would you prefer a lag in changes up or down to accommodate the 2 weeks?
Response: The invitation to bid states that “The adjustment on the unit price shall be reflected at the beginning of the next billing period.”
10. Contract renewal clause after the first 2 years is there options for the vendors to make necessary changes in cost of doing business?
Response: The price is firm, but allows for adjustments based on the Federal Milk Order Class I pricing.
On page four under “Method of Bidding” it provides an Alternate option, it states, “Pricing for any contract extension period will be negotiated with the Consortium using the Vendor’s submitted Bid
Proposal Form “not to exceed percent” as the maximum increase allowed for any extension period. All price adjustments must be justified with documentation from the milk producer.” This section does not have to be completed by the vendor, but may help in the bid selection process. Pricing is based on the language in the invitation to bid, unless otherwise proposed by the vendor in the Alternate 1 portion of the bid.
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