additional Q and A for peanut butter bid program.pdf

VDC Peanut butter IFB 194-128831 supplemental Q&A

Mr. Davis, xxxxxxxxxxxxx is reviewing IFB 128831 for the Virginia Distribution Center’s term contract for kosher bulk peanut butter. We have reviewed the solicitation package and would appreciate clarification on the points below so that we can ensure any bid we submit is fully responsive and structured in accordance with the Commonwealth’s requirements.

1. Bidder / supplier structure

a. May the prime bidder be a distributor, reseller, logistics/procurement company, or other non-manufacturing vendor, provided the offered peanut butter is produced by a compliant manufacturer and the prime contractor remains fully responsible for contract performance? Yes, but you the vendor is responsible for your wholesaler’s performance.

b. Is there any minimum number of years in business, prior Commonwealth contract history, or prior peanut-butter/food-distribution experience required of the prime bidder beyond the responsibility determination described in the solicitation? No.

c. If the prime bidder is a newly formed Virginia company but its management personnel and proposed manufacturer/distribution partners have relevant experience, may those qualifications be considered in the Commonwealth’s responsibility determination? Yes.

d. Are manufacturer or supplier references acceptable where the prime bidder itself does not yet have corporate past-performance references? Yes.

2. Manufacturer and product qualification

a. Must the bidder have a committed manufacturer identified at the time of bid, or may the manufacturer be finalized after bid submission but before award, provided the final product fully meets the specifications? At the time of bid, not after the bid closes.

b. Must the manufacturer itself be registered in eVA, or is eVA registration required only for the prime bidder/contractor? Only you the vendor has to be registered in eVA.

c. Please confirm whether a product from a plant approved under the applicable

USDA PP11/PP16 requirements is acceptable in lieu of separate formal USDA grading, assuming all other specifications are satisfied and the required certificate of analysis/grade accompanies delivery. Yes.

d. If a manufacturer/product is not included on the USDA producer list included with the solicitation, is formal USDA grading the only additional requirement, or are there other pre-award qualification steps? Just formal USDA grading.

e. Does the Commonwealth require the kosher certification to be from any particular certifying organization or standard, and must a current kosher certificate be submitted with the bid or only upon request/award? Please submit Kosher certificates with your bid.

f. Are private-label products permissible if the underlying manufacturer, plant and product meet all specifications? Yes, subject to approval by the VDC and perhaps Virginia Dept. of Corrections QA people.

3. Samples and evaluation

a. The solicitation states samples may be requested. Please confirm that samples are not required with the initial electronic bid unless specifically requested by the Commonwealth. The VDC will request samples if necessary during the evaluation period, after the bid closes.

b. If samples are requested, is one full case of each offered item required within five calendar days of notification? Correct: one full case and 50-lb box must arrive here five business days after request.

c. Will a sample request be issued only to the apparent low bidder, or may samples be requested from multiple bidders? It is possible that we could ask for samples from multiple bidders (IE: if the first samples do not pass, we’ll request from the next low, responsive bidder.

d. Are there any published pass/fail criteria for sensory evaluation beyond compliance with the stated flavor, color, texture, odor and other product specifications? No.

4. Lot bidding and award

a. Please confirm that bidders must bid both Item 1 (6/5-lb) and Item 2 (50-lb bag-in-box) to be eligible for award. That is correct.

b. Please clarify whether the Commonwealth anticipates one award for the complete lot or retains discretion to split the award by item notwithstanding the requirement to bid both items. We will award both items to one vendor.

c. Are the approximate annual usages of 1,820 cases for Item 1 and 6,030 boxes for Item 2 estimates only, with no guaranteed minimum purchase quantity or annual volume? We will order 24 pallets per order.

d. Is the 24-pallet minimum order a minimum per individual purchase order/shipment rather than a guaranteed minimum volume over the contract term? We will order 24 pallets at a time, per our demands from our end users.

5. Delivery and logistics

a. Please confirm that a 24-pallet shipment may contain any combination of Items 1 and 2. That is correct.

b. Is the contractor permitted to have the manufacturer or an authorized third-party carrier ship directly to the Virginia Distribution Center on the contractor’s behalf? Yes.

c. Is there any requirement that the contractor maintain inventory in Virginia or at a particular distance from the Virginia Distribution Center? No, we usually get delivery within 25-30 days ARO.

d. The solicitation references delivery within 24–26 calendar days after receipt of order unless the bidder states an alternative. Will proposing a different delivery lead time affect responsiveness or award consideration, and is there a maximum acceptable alternative lead time? We reserve the right to award to not the low bidder if said bidder has a quicker turn-around time.

e. Are partial shipments permitted with prior approval, or must each purchase order be delivered complete? We can take a partial delivery.

f. Please confirm whether all freight, fuel surcharges, accessorials, pallet costs and other delivery charges must be incorporated into the F.O.B. delivered unit price and may not be billed separately. That is correct, per the code of Virginia, all deliveries to State agencies must be FOB delivered.

g. Are CHEP, PECO, or other pooled pallets acceptable, or are shipments required specifically on vendor-owned 40" x 48" four-way hardwood pallets? You can use a 40 x 48 CHEP pallet.

6. Pricing and economic adjustment

a. Please confirm that initial bid prices must remain firm for the first 150 days of the contract. Yes.

b. For a subsequent price-adjustment request, what manufacturer or market documentation does the Commonwealth consider sufficient to substantiate an increase in product cost? We require specific documentation from the factory. We would then compare that to the Producer’s Price Index.

c. Are freight/fuel cost increases eligible to support a price adjustment, or is adjustment limited to the underlying commodity/product cost? Price increase requests based on only cost of fuel are not considered, mainly raw materials (peanuts, packaging, etc)

d. Is there any cap on an individual or cumulative price increase during the initial term or renewals? All Virginia agencies are capped at an aggregate of 25% over the life of the contract.

e. If market costs decline materially, is the contractor required to pass corresponding decreases through to the Commonwealth? We hope they do.

7. Payment and invoicing

a. What are the standard payment terms applicable to this contract after receipt of a correct invoice and accepted goods? Net 30 Days.

b. Is invoicing submitted through eVA, directly to the VDC, or through another Commonwealth invoicing system? See page 10 of bid, “method of payment”.

c. Are advance payments, deposits, or progress payments permitted under any circumstances, or is payment made only after delivery and acceptance? Please invoice us at delivery.

d. If product ships directly from the manufacturer, may the prime contractor invoice the Commonwealth while separately settling with the manufacturer under its commercial terms? We rather you, the vendor, submit the invoice.

8. Small-business subcontracting plan

a. Is the stated 42% small-business utilization figure a mandatory minimum for this procurement or a Commonwealth goal? That is a Commonwealth goal.

b. If Eaves Operations LLC becomes DSBSD-certified as a Virginia small business, may the value performed/invoiced by Eaves itself count toward the small-business utilization goal? Since this contact bid will exceed $100K in volume, this will not be a “set aside” bid. But yes to the question.

c. If the prime is not certified at bid time but obtains certification before award or during performance, how will that be treated for purposes of the subcontracting plan? Not applicable.

d. If the manufacturer or another supplier is DSBSD-certified, may the value of product purchased from that supplier count toward the utilization commitment? Yes.

e. Must every proposed subcontractor/supplier listed in the plan be fully committed at bid submission, or may substitutions be approved after award? Please submit with your bid.

9. Responsibility and financial capacity

a. Does this IFB require submission of financial statements, bank references, bonding, a line of credit, or other evidence of financial capacity with the bid? No

b. If not submitted with the bid, what information may the Commonwealth request when determining whether the apparent low bidder is responsible? We would contact that bidder’s references.

c. Is there any bid bond, performance bond, payment bond, or other bid/contract security requirement applicable to IFB 128831? No.

d. Would a supplier commitment letter, manufacturer authorization letter, or evidence of trade-credit terms be useful or required in demonstrating the bidder’s ability to perform? No.

10. Insurance and licensing

a. Are there insurance requirements specific to this procurement beyond the Commonwealth’s standard terms? If so, please identify the required coverage types and limits. Everything is stated in the DGS General Terms and Conditions.

b. Does the prime bidder need any Virginia food-distributor, food-handler, warehouse, or other food-related license if it never physically possesses or handles the product and the compliant manufacturer ships directly to VDC? No

c. Are there any registrations, permits, certifications, or licenses required of the prime bidder that are not expressly identified in the solicitation package? No.

11. Contract administration and renewals

a. Are the three optional one-year renewals exercised solely at the Commonwealth’s discretion, and how far in advance would the contractor normally receive notice? A renewal request would occur approximately 75 days in advance.

b. May pricing be renegotiated or adjusted at renewal in addition to the price-adjustment mechanism applicable during the contract term? Yes.

c. Does the Commonwealth anticipate issuing purchase orders on a regular schedule, or will orders be placed solely as inventory demand requires? Orders to be done as demand dictates.

12. Bid submission

a. Beyond electronic pricing, the completed Attachments A–D, State Corporation Commission form, Vendor Data Sheet, and Small Business Subcontracting Plan, are there any other documents that must be uploaded for a bid to be considered responsive? We hope, to save time, that spec sheets, nutritionals, Kosher certificates, will be attached in eVA with the bid.

b. Is a manufacturer authorization letter, product specification sheet, nutrition label, kosher certificate, USDA documentation, certificate of analysis, or proof of product availability required with the initial bid, or only upon request? To expedite the evaluation, we prefer documents be submitted with the bid in eVA.

c. Please confirm that no physical originals or separate emailed documents are required at bid submission and that the complete bid is submitted through eVA only. Yes.