Broadline Distributor RFP OCNC 2023-01.pdf

Oregon Child Nutrition Coalition Purchased Food/Supply

Request for Proposal 2022-23 School Year

RFP Number #2023-01

Instructions to Proposers

Issue Date – April 7, 2022 Due Date – May 10, 2022 On or before 2:00 pm PDT

Submit Proposal electronically to:

Oregon Child Nutrition Coalition

3083 NE 49th Place #208 Hillsboro, OR 97124

Contact Person:

Nathan Roedel, SFO, SNS info@ocnc.org

All RFP documents will be posted at:

www.ocnc.org

All notices regarding this RFP shall be sent by email to the OCNC vendor distribution list.

Proposers not currently on the list can be added by contacting info@ocnc.org http://www.ocnc.org mailto:info@ocnc.org

OCNC BROADLINE DISTRIBUTOR RFP #2023-1

TABLE OF CONTENTS

DESCRIPTION PAGE

Cover Page 1 Table of Contents 2 RFP Overview 5 Mandatory Proposer Meeting for Prequalification 7 Request for Proposal Calendar 6 Definitions 7 Document Preparation Instructions 11

1. Document Submittal

2. Signatures

3. Errors and Clarifications

4. RFP Preparation

General Terms and Conditions 12

5. Acceptance of Conditions

6. Force Majeure

7. Insurance Requirement

8. Bonds

9. Equal Employment Compliance Requirement 10.Oregon Products

11. Non-Assignability 12.Pricing Audits 13.Debarment Disclosure

14. Indemnification and Hold Harmless 15.Non-Collusion 16.Remedies 17.Termination or Cancellation 18.USDA Nondiscrimination Statement

Specific Terms, Conditions and Instructions 16 19.Pre-Qualification Financial Review 20.Price Quote and Estimated Purchase Volume 21.Standard of Quality

a. Distributor’s Choice

b. Private Label

c. Manufacturer Defined

22.Minimum Percentage of Items to be Bid 23.Price 24.Distribution Centers 25.Packaging 26.Buy American

OCNC Broadline Distributor RFP 2023-24, #2023-1

DESCRIPTION PAGE

27.Subsequent RFP’s 28.USDA Diverted Foods Products 29.Dairy Product Pricing 30.Fixed Fee for Delivery of other Items 31.Large Delivery Volume Discount 32.Material Change Exceptions 33.Annual Adjustment of Fixed Fee 34.References 35.Additional Services

Award of Contract 28 Performance of Contract 30

1. Ordering/Delivery

2. Proposer Information

3. Safety Data Sheets

4. Invoicing

5. OCNC Member Information

6. OCNC Member Ordering and Payment

7. Temporary Shortages

8. Private Label

9. Discontinued Product 10.Contracted Food Management

11. Warranty 12.Management Account 13.Dark Drops 14.Reports 15.Federal, State and Local Regulations or Safety Requirements 16.Warehouse Inspections and Temperature Appropriate Trucks 17.Recall Procedure

List of Attachments Page

Attachment A Certified Firm Outreach Plan 36 Attachment B Member List and Member Contract 37 Attachment C OCNC Broadline Distributor Signature Page 41 Attachment D Acknowledgement Page 42 Attachment E Debarment and Suspension and Other Responsibility

Matters Primary Covered Transaction Certification 43 Attachment F Representation Letter 45 Attachment G Pass/Fail Criteria 48 Attachment H Price Quote Pages 49 Attachment I Non Stock Items 50 Attachment J Proposers Procedures 51 Attachment K Buy American Exemption Information 52 Attachment L Fee Charts 53 Attachment M USDA Foods Items Fee For Service (FFS) 56 Attachment N USDA Foods Items Net off Invoice (NOI) 57 Attachment O Dairy Products 59 Attachment P Certification Regarding Federal Matters 60

OCNC Broadline Distributor RFP Overview

OCNC is a non-profit corporation that is made up of Child Nutrition (CN) program-only operators agreeing to purchase cooperatively to take advantage of volume prices for products and supplies. Members include non-profit food service departments of public and private school districts in the state of Oregon. OCNC members represent approximately 30% of the total Oregon schools student enrollment. A recent member list is included as Attachment B.

Your firm is invited to submit a proposal to provide Food and Supplies for all Oregon Child Nutrition Coalition (OCNC) members. This awarded agreement is intended to allow a maximum of four (4) annual renewals upon the consent of all parties through the 2026-2027 school year. The approximate total dollar value of purchases through the OCNC Broadline Distributor Request for Proposal (RFP) for the 2022-23 school year is estimated at $19.3M.

Enclosed are instructions and proposal requirements. All RFP documents are posted at: http://foodrfp.ocnc.org.

By submitting a proposal, proposers certify that their proposal is made without collusion or fraud and that they have not offered or received any kickbacks or inducements from any other proposer, supplier, manufacturer or subcontractor in connection with their proposal, and that they have not conferred on any public employee having official responsibility for this procurement transaction any payment, loan, subscription, advance, deposit of money, or services.

Pursuant to Oregon Revised Statute (ORS) Chapter 200, 2 CFR 200.321, and as a matter of commitment, OCNC encourages the participation of minority, women, and emerging small business enterprises in all contracting opportunities. OCNC also encourages joint ventures or subcontracting with minority, women, and emerging small business enterprises. For more information please visit https://www.oregon.gov/biz/programs/COBID/Pages/default.aspx

If the contract results in subcontracting opportunities, the successful Proposer may be required to submit a completed Certified Firm Outreach Plan (Attachment A) prior to execution.

Only one proposer will be selected for award of this RFP solicitation. . OCNC members will follow local procurement procedures to establish individual contracts with the successful proposer. Delivery of products shall be to member-identified locations throughout the state of Oregon.

Proposers must offer pricing in the form of cost reimbursement minus discounts and deviations plus a fixed fee.

OCNC Broadline Distributor RFP 2023-24, #2023-1 http://foodrfp.ocnc.org https://www.oregon.gov/biz/programs/COBID/Pages/default.aspx

If the RFP is to be renewed for additional school years, the price established for fixed fees listed may be increased or decreased by not more than the increase in the specified CPI index for the previous year.

OCNC will receive proposals for consideration until 2:00 pm, Pacific Daylight Time, Tuesday, May 10, 2022, Pre-qualified proposers will receive instructions regarding the means and method of electronic submission and response to this RFP.Late proposals will not be accepted or evaluated.

Proposals shall not be publicly opened. The award shall be based on a combination of the extended bottom line total for the products at the volume listed and the evaluation of technical factors as outlined. Award scoring information is described in the “AWARD OF CONTRACT” section.

A summary evaluation of proposals shall be sent to all OCNC members on or before May 20, 2022 and shall be posted to the OCNC web site at ocnc.org. Individual OCNC members will make the awards and maintain contractual agreements with the awarded proposer. Proposals shall remain confidential until May 24, 2022

Instructions for Mandatory Proposer Meeting

Participation in the Proposer Meeting is mandatory and a prequalification for interested parties that wish to submit interest and proposal in fulfilling the statement of work as described in this RFP. Failure to have a representative of the proposer attend this meeting represents non-interest and disqualification of any submitted proposal.

To participate by Zoom, participants must email info@ocnc.org with their intent to participate, including the email address(es) of attendees to receive the conference link response.

The mandatory Proposer meeting will be held at 2:00 p.m., Pacific Daylight Time, April 12, 2022 by Zoom online conferencing.

Request for Proposal Calendar

RFP Issue Date April 7, 2022

Mandatory Proposer Meeting, 2:00 pm, PDT April 12, 2022

Errors and Clarifications Due, 2:00 pm, PDT April 19, 2022

Financial Information Due to CPA from Proposer April 21, 2022

Final RFP Addenda-Answers to Questions posted April 26 or 28, 2022

Notification of Financial Qualification yes or no April 29, 2022

RFP Response Due, 2:00 pm, May 10, 2022

RFP Evaluation of Technical Factors May 10 through

May 17, 2022

RFP Evaluation Summary to all OCNC members May 20, 2022

Notice of Intent to Award May 24, 2022

Protest Period Ends May 31, 2022

Awarded Contracts effective date on or after July 1, 2022

DEFINITIONS

CFR - Code of Federal Regulations governing federal programs and activities

Contractor –shall mean the successful proposer

Dark Drop – Deliveries to individual OCNC member sites that occur at a time when an employee of the OCNC member is not there to sign for the delivery.

DAS - The Oregon Department of Administrative Services. State agency that manages and administers state procurement and contracting provisions

DOJ - The Oregon Department of Justice.

FSMC - A Food Service Management Company (FSMC.) They can provide services for Sponsors such as serving, producing, and supplying prepared foods. FSMCs can also provide program operational, facility management, and staffing services to Sponsors.

Material change – shall mean the amount of increase in either volume of cases or dollars expended that would have changed a proposer’s response.

Non-responsive – a proposal is considered “non-responsive” if the proposal has not been prepared in full compliance with the requirements.

OCNC – Oregon Child Nutrition Coalition. A 501 (c) 3, public non-profit. An incorporated group of qualifying Child Nutrition programs that have agreed to purchase cooperatively to take advantage of volume prices for foods and supplies.

OCNC staff– shall mean either Cindi Hiatt-Henry, chhenry@msd.k12.or.us , Co-Executive Director or Nathan Roedel, nate@ocnc.org , Co-Executive Director.

ODE –Oregon Department of Education

Oregon Buys - Oregon procurement information system

OSNA – The Oregon School Nutrition Association, a state-affiliate of the national organization, School Nutrition Association.

Proposer - shall mean the person,firm, or vendor that submits an offer in response to this solicitation.

Proposer/vendor email distribution list – a list of email addresses of companies or individuals who wish to be notified of OCNC procurement activities. Companies or individuals can be added to the list by contacting info@ocnc.org.

OCNC Broadline Distributor RFP 2023-24, #2023-1 mailto:chhenry@msd.k12.or.us mailto:nate@ocnc.org

Responsible – determined to be accountable or capable to meet the terms of the contract for the goods, products or services being procured.

Responsive –A proposal is considered “responsive” if the proposal has been prepared in full compliance with the requirements.

RFP - Request for Proposal

Sponsor - the governing body which is responsible for the administration of one or more schools or approved programs; and has the legal authority to operate the Child Nutrition Program therein or be otherwise approved by FNS through ODE to operate the Child Nutrition Program.

School Year – a 12 month period starting July 1 of a calendar year and ending June 30 of the next calendar year.

Specification – description of product or service that a purchaser seeks and a description of what a proposer’s offer should reflect.

Subsequent Request for Proposals – OCNC members will issue additional RFP’s not more than 3 times per year. These RFP’s will be for new product pricing only and will not duplicate existing awarded products. Distribution fees for delivery shall be established in this RFP.

USDA –United States Department of Agriculture

ZOOM - an online meeting platform

DOCUMENT PREPARATION INSTRUCTIONS

1. Document Submittal An electronic copy of all requested documents, spreadsheets, and supporting materials shall be submitted in the means and methods provided to pre-qualified proposers.

The Entire proposal, including this solicitation document, is to be submitted with sections correctly filled out. Proposals will not be considered if transmitted after the time and date specified in the advertisement and announcement calling for proposals. It shall be the proposer’s sole risk and responsibility to ensure delivery to the designated location by the designated time.

2. Signatures Proposal quotations and signatures must be submitted on Attachment C provided in these specifications and shall be signed by an authorized representative as follows:

a. In the case of an individual proposer, by such individual proposer.

b. In the case of a partnership, the name of the partnership must appear on such proposal and it shall be signed in the name of such partnership by at least one partner. In addition to such signature, the names of all partners shall be stated in such proposal.

c. In the case of a corporation, the corporate name shall be subscribed by the president or other managing officer, and there shall be set forth under the signature of such officer the name or the office they hold or the capacity in which they act for such corporation.

The signatory must be authorized to sign and enter into binding agreement on behalf of the organization.

3. Errors and Clarifications Any proposer who has questions, finds errors, or needs clarification, may ask them during the mandatory proposer meeting or participate by online meeting and have them addressed at that time. After that date anyone who has additional questions or requests for clarification must send them by email only to: info@ocnc.org not later than 2:00 pm, Pacific Daylight Time, April 19, 2022.

responses will be posted on the OCNC website www.ocnc.org

All addenda must be acknowledged on Attachment D. OCNC is not responsible for any alleged explanation, clarification or interpretation made, or given in any manner except by addenda.

4. RFP Preparation

No erasures are permitted. Mistakes may be crossed out and corrections made adjacent and must be initialed by the person signing the proposal.

GENERAL TERMS AND CONDITIONS

5. Acceptance of Conditions Each proposer, by the submission of a proposal, assents to each and every term and condition set forth anywhere in these specifications and agrees to be bound thereby.

6. Force Majeure Except for payments of sums due, neither party shall be liable to the other nor deemed in default under this contract if and to the extent that such party’s performance of this contract is prevented by Force Majeure. The term “Force Majeure” means an occurrence that is beyond the control of the party affected and occurs without its fault or negligence. Without limiting the foregoing, Force Majeure includes acts of God; fire; flood; or other similar occurrences beyond the control of the contractor or the OCNC member.

7. Insurance Requirement The contractor, its subcontractors, if any, and all employers working under this contract are subject employers under the Oregon Workers' Compensation Law and shall comply with ORS 656.017, which requires them to provide workers' compensation coverage for all their subject workers. Contractor must also carry at least $1,000,000 general liability insurance.

8. Bonds Neither RFP nor performance bonds are required in the performance of this agreement and subsequent contracts.

9. Equal Employment Compliance Requirement By submitting this proposal, the proposer certifies conformance to the applicable Federal Acts, Executive Orders and Oregon Statutes and Regulations concerning Affirmative Action toward equal employment opportunities. All information and reports required by the Federal or Oregon State Governments, having responsibility for the enforcement of such laws, shall be supplied to OCNC upon request for purposes of investigation to ascertain compliance with such acts, regulations and orders.

10. Oregon Products and Duplication of Items Pursuant to ORS 279.021, goods manufactured or produced in Oregon shall be preferred if price, fitness, availability and quality are otherwise equal.

Due to state funding restricted to Oregon products, OCNC and the proposer may, at their discretion, offer items manufactured specifically in Oregon that may duplicate non-Oregon products included on the proposed items list.

Local products currently sought are listed on the Local Products page and included as a component of Attachment H.

11. Non-assignability Neither the resulting contract(s) nor any interest of the contractor(s) therein can be transferred to any other person or persons without the written consent of the members of the OCNC and any such attempted transfer shall be utterly void and may be treated by the members of the OCNC as a willful failure or refusal on the part of the contractor(s) to perform the contract(s) according to its/their terms and conditions.

12. Pricing Audits OCNC staff will audit pricing not more than twice per school year. Written notice of the audit will be given at least 30 days prior. The date and time of the audit must be to the mutual agreement of OCNC and the successful proposer. The audit shall occur at the successful proposer’s location.

Not more than 50 items prices shall be verified. The period for which pricing is to be verified will not begin more than three months prior to the date of the price verification.

For items listed on the price quote pages and those added by the Subsequent RFPs the audit will compare OCNC member invoices to the prices quoted.

For Fee for Service (FFS) commodity-processed items the audit will verify the fixed fee for delivery was correctly charged on member invoices.

For Net Off Invoice (NOI) commodity-processed items the audit will verify the commercial price matches the agreement price resulting from OCNC Commodity RFPs, that the correct USDA Foods value was deducted and the correct fixed fee to deliver was charged.

For Cash Rebate commodity-processed items the audit will verify that the correct total number of cases delivered of each item in the period specified were reported to the manufacturer.

Pricing Audits occurring in subsequent years approved after the initial 2022-23 award will also verify the correct fixed fee increases based upon CPI as described in this RFP.

Annual adjustments based on the CPI will be compound in duration of the agreement.

Pricing correction remedies shall not be retroactive more than six months from the notification of the price discrepancy.

13. Debarment Disclosure If any proposer has been disbarred, suspended, or otherwise lawfully prohibited from participating in any public procurement activity, the proposer shall disclose that information in its offer on Attachment E. Proposer shall sign Attachment E.

Failure to do so shall result in rejection of its proposal.

14. Indemnification and Hold Harmless Proposer will be responsible for and will defend and indemnify OCNC for losses, damages, claims and costs to OCNC for property damage or personal injury to the extent caused by or that arise from the negligence or intentional misconduct of proposer.

15. Non-Collusion By signing the offer and acceptance form or other official contract form, the proposer certifies that this price is offered without any prior understanding, agreement or connection with any corporation, firm or person submitting a price for the same products. The proposer certifies that they understand that collusive bidding is a violation of federal/state law and shall be grounds to reject a proposal as non-responsive.

16. Remedies OCNC Member Remedies: If the selected proposer is in default, in addition to remedies afforded elsewhere in this agreement, the OCNC member may recover any and all damages suffered as the result of the default, including but not limited to direct, indirect, incidental and consequential damages, as provided in ORS

72.7110 to 72.7170. The OCNC member may, at its option, pursue any or all of the remedies available to it under this agreement and at law or in equity, including, but not limited to: a) Termination of the agreement; b) Withholding all monies due for invoiced Goods or services that selected proposer has failed to deliver or perform within any scheduled completion dates or has performed inadequately or defectively; c) Initiation of an action or proceeding for damages, specific performance, declaratory or injunctive relief; and d) Exercise of its right of setoff, and withholding of monies otherwise due and owing in an amount equal to OCNC member’s setoff without penalty to the member. These remedies are cumulative to the extent the remedies are not inconsistent, and member may pursue any remedy or remedies singly, collectively, successively or in any order whatsoever.

Proposer’s Remedies: If an OCNC member terminates this agreement, or if the member is in default and whether or not selected proposer elects to exercise its right to terminate this agreement, The sole remedy is:

(a) A claim against an OCNC member for the unpaid purchase price for Goods delivered and accepted by member,

(b) with respect to services compensable on an hourly basis, a claim for unpaid invoices, hours worked but not yet billed, and authorized expenses for services completed and accepted by the member, and

(c) with respect to deliverable-based services, a claim for the sum designated for completing the deliverable multiplied by the percentage of services completed and accepted by the member, less previous amounts paid and any claim(s) which the member has against the selected proposer. If previous amounts paid to the proposer exceed the amount due to the proposer, the Contractor shall pay any excess to the OCNC member upon written demand.

17. Termination or Cancellation Contracts resulting from this proposal may be canceled by email notification under the following conditions:

a. By mutual agreement of the individual OCNC member and the proposer.

Termination under this provision requires 30 days written notice.

b. By the OCNC members for cause in breach by the proposer of proposer's obligations, as well as failure to meet the terms and conditions as set forth in this proposal. The OCNC members give the proposer written notice of intent to terminate under this provision. A proposer shall have five (5) calendar days from the receipt of such notice to respond. Failure to respond may result in cancellation.

c. By the OCNC members for non-availability or non-appropriation of sufficient funds.

d. By OCNC members for convenience, including non-performance and non-response

e. By whatever terms and conditions the OCNC member has included in their respective contract with the awarded proposer.

f. By the proposer, for failure of payment by an OCNC member, but only with respect to the individual OCNC member in breach.

18. USDA Nondiscrimination Statement

In accordance with federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, sex, religious creed, disability, age, political beliefs, or reprisal or retaliation for prior civil rights activity in any program or activity conducted or funded by USDA.

Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, American Sign Language), should contact the agency (state or local) where they applied for benefits. Individuals who are deaf, hard of hearing or have speech disabilities may contact USDA through the Federal Relay Service at (800) 877-8339.

Additionally, program information may be made available in languages other than English.

To file a program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, (AD-3027) found online at: How to File a Complaint, and at any USDA office, or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by:

1. Mail:

U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, SW Washington, D.C. 20250-9410;

2. Fax: (833) 256-1665 or (202) 690-7442

3. Email: program.intake@usda.gov.

OCNC members are equal opportunity providers.

SPECIFIC TERMS, CONDITIONS AND INSTRUCTIONS

19. Pre-Qualification Financial Review All proposers must provide the following financial information to the accounting firm of G&O CPAs on or before April 21, 2022. All requested information shall be used by G&O CPAs to assess the financial stability and viability of the proposer to fulfill the proposed contract and shall be considered trade-secret, strictly confidential, private, non-public, and will not be disclosed. Proposers may contact G&O CPAs for assistance in providing acceptable documents. Contact information is listed on Attachment F. Failure to submit required information by April 21, 2022, shall disqualify the potential proposer. Items to be transmitted:

3 years balance sheets 3 years income statements 3 years statement of cash flow 3 years audited financial statements (if available) Signed representation letter (Attachment F)

OCNC Broadline Distributor RFP 2023-24, #2023-1 https://www.usda.gov/sites/default/files/documents/USDA-OASCR%20P-Complaint-Form-0508-0002-508-11-28-17Fax2Mail.pdf https://www.usda.gov/sites/default/files/documents/USDA-OASCR%20P-Complaint-Form-0508-0002-508-11-28-17Fax2Mail.pdf https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint

Failure to check “yes” on Attachment G, Pass/Fail Criteria, Question 1 will result in disqualification of the proposal and rejection of submitted information for consideration of award

20. Price Quote and Estimated Purchase Volume Proposer is to complete all price pages on Attachment H.

The estimated number of units to be purchased of each item as presented on the RFP is based on historical and available data from all OCNC members. The number represents "best estimates" only, and does not constitute or imply any commitment by the OCNC members as to the maximum or minimum volume of units to be purchased under this proposal.

Should the quantities of any of the items be increased, the proposer shall furnish the additional items at the unit prices quoted, and should the quantities be decreased, payment will be made on the actual quantities ordered and received by OCNC members at the unit price. The proposer will make no claim for anticipated profits or additional compensation of any increase or decrease in quantities.

These estimated figures are to be used only for determining the approximate total of the proposal. Approximate total purchases for OCNC members for the 2022-2023 school year is $19.3M. Estimates may be affected by prices offered, changes in the USDA meal pattern, changes in funding levels, market conditions, unanticipated worldwide catastrophe, and USDA Foods allocations.

21. Standard of Quality All products are in one of three following groups:

Distributor’s Choice or Generic. Any manufacturer’s product that meets the description will be acceptable. OCNC reserves the right to request alternate products if the awarded product is deemed not acceptable. It is understood that the proposer will provide the highest acceptable quality of product and the best possible price.

Private Label. Manufacturer’s name and code number must be included in the proposal for all private label items. Proposer must submit a list of labels and their quality definitions. These products are classified as first quality, second quality, or third quality.

Manufacturer Defined. These products have specific brand names and manufacturer numbers. All listed items were pre-qualified by the OCNC by nutritional parameter screening and taste tests. The proposer may select which product to offer only from the specifically named products.

The original pre-qualification process was completed in 2017 and identified:

● The generic specifications for all items listed as manufacturer defined.

● All items submitted were either approved or denied based on nutrition parameters. Review results were sent to submitting manufacturers.

● All approved items were taste tested by an OCNC member director sub-group and either approved for listing on the RFP or not approved.

● Item substitutions may have occurred due to reformulation or discontinuation of products offered.

● Proposer must select from the approved items for all manufacturer-defined products.

22. Minimum Percentage of Items to be Bid Proposers must bid on 100% of items listed on Attachment H Price Quote pages.

Proposers are not required to stock all items. Proposers are to submit a list on Attachment I identifying any items that will not be stocked and that will be made available for purchase as a non-stock item. Proposer must indicate lead times and minimum orders required to receive products listed as a non-stock items.

Proposer is to outline the non-stock order procedure on Attachment J, Question one (1).

Failure to check “yes” on Attachment G, Pass/Fail Criteria, Question 2 will result in disqualification of the proposal.

23. Price

a. The price for each item shall be cost plus a fixed fee, minus discounts/allowances for the school year and will include delivery to the OCNC member's child nutrition program sites. Prices may be extended not more than 3 decimal points. Extension for all line items, using standard number rounding, must be shown where required on the RFP.

Proposer must price products to all OCNC members according to the terms, instructions and conditions defined in this document or subsequent Memorandums of Understanding. No OCNC member is to be charged additional fees or granted additional discounts on items listed on this RFP;

including fuel surcharges.

b. Cost Reimbursable Pricing (cost + fixed fee - discounts/allowances) If pricing is offered through a cost-reimbursable method the following provisions in 7 CFR 210.21(f), 7 CFR 220.16(e), and 7 CFR 250.23 are applicable:

- Allowable costs will be paid from the nonprofit school food service account to the contractor net of all discounts, rebates and other applicable credits accruing to or received by the awarded proposer of any assignee under the contract, to the extent those credits are allocable to the allowable portion of the costs billed to the school food authority;

- The awarded proposer must separately identify for each cost submitted for payment to the school food authority the amount of that cost that is allowable (can be paid from the nonprofit school food service account) and the amount that is unallowable (cannot be paid from the nonprofit school food service account);

or

- The awarded proposer must exclude all unallowable costs from its billing documents and certify that only allowable costs are submitted for payment and records have been established that maintain the visibility of unallowable costs, including directly associated costs in a manner suitable for contract cost determination and verification;

- The awarded proposer’s determination of its allowable costs must be made in compliance with the applicable Departmental and Program regulations and Office of Management and Budget cost circulars;

- The awarded proposer must identify the amount of each discount , rebate and other applicable credit on bills and invoices presented to the school food authority for payment and individually identify the amount as a discount, rebate, or in the case of other applicable credits, the nature of the credit. If approved by the State agency, the school food authority may permit the contractor to report this information on a less frequent basis than monthly, but no less frequently than annually;

- The awarded proposer must identify the method by which it will report discounts, rebates and other applicable credits allocable to the contract that are not reported prior to conclusion of the contract;

and

- The awarded proposer must maintain documentation of costs and discounts, rebates and other applicable credits, and must furnish such documentation upon request to the school food authority, the State agency or the Department.

- Prohibited Expenditures. No expenditure may be made from the nonprofit school food service account for any cost resulting from a cost reimbursable contract that fails to include the requirements of this section, nor may any expenditure be made from the nonprofit school food service account that permits or results in the awarded proposer receiving payments in excess of the contractor’s actual, net allowable costs.

24. Distribution Centers Proposer is to list all distribution centers that will service this RFP and note the OCNC members being serviced by each center. Proposer is to outline any differences in ordering, receiving and billing between the different distribution centers on Attachment J, item 2.

No award points will be added or subtracted for answers to this item.

25. Packaging The number of units per package specified herein is not a firm requirement.

Proposers may propose other packaging. Proposers shall clearly indicate the number of units per package on Appendix I Price Quote Page if different than originally specified. Proposer shall adjust the cases to be purchased for the year to yield the same number of serving portions when extending the total dollars.

26. Buy American Proposer will comply with the Buy American requirement, which dictates that schools participating in the federal meal programs are required to purchase domestic commodities and products for school meals to the maximum extent practicable (7 CFR 210.21(d). Domestic USDA Foods or product means an agricultural USDA Foods that is produced in the US and a food product that is processed in the US substantially (at least 51%) using agricultural commodities that are produced in the US.

Proposer must note for each product offered if it does not meet the Buy American requirement on Attachment K and denote with and asterisk(*) on the Price Quote Pages (Attachment I) each item that does not meet this requirement.

Unless otherwise indicated all items shall meet the Buy American requirements of USDA Child Nutrition Programs. Proposer must complete Attachment K for any item that does not meet the requirement.

Individual OCNC members will be responsible to evaluate the product’s qualification for an exemption. Successful proposer must include copies of all letters from manufacturers verifying each product’s qualification for Buy American.

Upon qualification and to submit a response to this opportunity, approved proposer will receive instructions via email describing the submission of required Buy American documentation.

27. Subsequent RFP’s for Items Not Listed on This RFP Throughout the term of the proposal OCNC members may request products not listed on this RFP. OCNC shall issue subsequent RFPs to procure additional products with or without declared volume. Distribution of items selected through the subsequent RFP’s shall be delivered by the successful proposer from this RFP. The process shall be:

A. Up to 3 subsequent RFP’s per school year may be announced.

Announcement shall be posted on the OCNC web site, , and shall be sent by email to all proposers on the OCNC vendor contacts email distribution list.

B. The manufacturer’s representative or broker must get signed commitments from the OCNC members to purchase not less than 50 cases per school year for an item to be listed on the supplemental RFP.

Signed commitment forms are to be submitted to OCNC by the deadline identified on the published calendar. Forms will identify if it is the OCNC member’s intention to purchase a product that is also an available USDA Foods processed item.

C. A specification for the new item will be posted to the OCNC web site, and sent out to all proposers on the OCNC proposer email distribution list.

A deadline shall be established for the submission of nutrition facts labels, ingredient statements and CN crediting information. Products will be disqualified if information is submitted after the deadline.

D. The proposer will solicit product pricing on all listed items from the manufacturers. Product pricing does not include the fixed delivery fee.

The contractor will not be required to disclose rebates, deviations or discount. The quoted product price, however, must remain fixed for the remainder of the school year.

E. When two or more like or equal products are submitted, OCNC members shall evaluate the offered products to determine whether the items are “equal” based upon factors identified in the supplemental solicitation

H. Fixed fees for delivery shall be quoted on Attachment L, Question 1.

Products selected for purchase from 50 cases to 199 cases per school year may be offered non-stock orders. Products selected for purchase amounts of 200 cases or more must be stocked at the proposer’s warehouse. No award points will be given for this response. This is a pass/fail requirement.

I. The proposer and broker or manufacturer’s representative will be notified of the award results by OCNC. Results will be posted to the OCNC website.

J. Items added through the supplemental RFP process will be subject to the same terms and conditions regarding increase in price and fees, as described in this RFP.

K. Increases of up to 18% total dollar volume of sales from the addition of new products through the SRFP’s shall not be deemed to be a material change in the terms or conditions of this RFP and shall not require non-renewal of this RFP or subsequent re-release of this solicitation.

28. USDA Foods Diversion Discounts and Products A number of OCNC members will divert USDA Foods to manufacturers to process into end products as awarded through OCNC and posted on the OCNC website at http://usdarfps.ocnc.org.

Districts purchase commodity processed USDA foods through the following methods:

Fee For Service (FFS) The manufacturers have quoted a Fee for Service (FFS) charge and shall bill the OCNC member directly for the processing and the shipping to the selected distributor.

Net Off Invoice (NOI) The commercial price quotes for OCNC members and the NOI discount dollar amounts will be provided to prequalified proposers

Proposer is to allow these NOI discounts and to work with the consulting companies that manage these funds for the manufacturers to receive the payment for the discounts.

In the event the NOI item is not listed on this OCNC RFP as a purchased product, the proposer is to complete the chart for fixed fees on Attachment L, question 3, to deliver USDA processed NOI Items. Manufacturer’s quote shall be the commercial price quotes, as attributed by the appropriate diversion method.

Cash Rebate (Rebate) OCNC members may divert USDA Foods to manufacturers to process into end products for Rebate. They will then buy regular, stocked items from the proposer that will qualify for cash back for the value of the USDA Food equivalent contained in the product(s).

http://usdarfps.ocnc.org

Proposer must agree to process reports not more frequently than monthly for these OCNC members and manufacturers identifying the purchase of qualifying products.

Access to individual item quotes for OCNC members will be provided to pre-qualified proposers. .

Proposer must be able and willing to provide distribution (for a fixed fee) for these end products if the individual item will have a minimum of 100 cases of usage per year by OCNC members.

A list of USDA processed items that were delivered to OCNC members through the current distributor during the 2021-22 school year is included on Attachments M (FFS) and N (NOI). This period of time of usage has been impacted due to the worldwide COVID-19 pandemic’s impact on limiting product availability and interrupted usage totals for member districts. Specific items to be delivered as FFS will be mutually agreed upon between OCNC members and the successful proposer. Pre-COVID distribution reports will be available to pre-qualified proposers based upon 2018-19 volumes.

USDA processed products must be identified in proposer’s records as proprietary to the specific OCNC member that has ordered the product(s). Management of ordering and inventory of processed products will be shared between the proposer, the broker or manufacturer’s representative, and specific OCNC members.

Proposer will maintain property insurance on all USDA processed products stored and delivered for OCNC members. Said insurance must be adequate to repay the processing fee, delivery fee, and USDA Foods value in the event the product is destroyed or damaged beyond use. Valuation can be determined as currently noted on the ODE USDA Foods Diversion/Processing website .

Insurance policy should note that the proposer will not have the title to this product at any time.

Proposer will provide a method of communication or access to available USDA foods. The data provided will include the number of cases received, the number of cases delivered, and the number of cases remaining. Proposer will send a confirmation email to each OCNC member when USDA processed products have been received that will include the proposer’s PO number.

In the event proposer is no longer the distributor for OCNC members they will permit the new distributor to pick up any remaining OCNC member USDA processed products. The proposer will coordinate this transfer with the new distributor within 10 days of being notified.

Failure to check “yes” on Attachment H Pass/Fail Criteria, Question 5, will result in disqualification of the proposal.

Proposer shall record a fixed fee per case for storage and delivery of USDA items on Attachment L as indicated. No award points will be given for this response. This is a pass/fail requirement.

OCNC members shall take delivery of all USDA processed foods in the current school year on or before July 1 of the following school year. Products held in storage for the previous school year will not be held after July 1 of the new school year.

The commercial price quotes for OCNC members and the NOI discount dollar amounts will be provided to prequalified proposers.

Proposer will not be required to bring items into stock so that they may be purchased unless the OCNC members as a group will purchase at least 200 cases per school year or 5 cases per week.

No award points will be given for this response. This is a pass/fail requirement.

29. Dairy Product Pricing OCNC Members may or may not buy dairy products using this RFP. The prices for dairy products may change based on the Federal Milk Order each month.

Proposer is to explain the method for adjusting prices based on the Federal Milk Order on Attachment K , Question 3.

Proposer is to list all items qualifying as dairy products on Attachment P and is to quote their current cost without delivery fee for each item as of March 23, 2022 based on the Federal Milk Order.

Proposer is to quote a fixed delivery fee to deliver each item based on their cost to be held for the first year on Attachment M, item 5. No award points will be given for this response. This is a pass/fail requirement.

The fixed fee for dairy items shall increase or decrease using the CPI as defined in this RFP.

Dairy purchases are excluded from the 80% of district food purchases requirement.

30. Fixed Fee for Delivery of other Items OCNC members may elect to purchase additional items from the successful proposer. The proposer shall list the fixed fee to be charged for these items on Attachment L, number 6 based on manufacturer price as quoted to the member.

This fixed fee may be increased or decreased annually by the CPI as described in this RFP.

No award points will be issued for the dollar amount on this question. This is a pass/fail requirement.

31. Large Delivery Volume Discount Proposer must identify the dollar discount, if any, for deliveries over 75 cases on Attachment L, number 7. Discounts shall be offered in a flat dollar amount in the following brackets:

76 to 150 cases 151 to 300 cases 301 to 500 501 and over

No award points will be issued for the dollar amounts on this question. This is a pass/fail factor. This discount may be increased or decreased by the same CPI method used and described in this RFP.

32. Material Change Exceptions Over the term of the RFP additional qualifying organizations may request to join OCNC. These OCNC members shall agree to all the terms and conditions to become members of OCNC and shall be allowed to “piggyback” on this RFP only upon the approval of the awarded proposer and confirmation by the OCNC Board of Directors.

In each year of the contract, OCNC may or may not have the following increases in cooperative membership:

0-5 additional members with 50-2000 students 0-5 additional members from 2001-4000 students 0-5 additional members from 4001-10,000 students 0-3 additional members from 10,001 – 20,000 students 0-2 additional members over 20,001 students

This potential or actual additional volume of membership and the resulting potential or actual increase in purchases shall not be considered a material change to this RFP and shall not require a re-issuing of this RFP.

In the event an OCNC member chooses to leave the group and reduces the volume of items purchased by less than 18%, that change shall not be deemed material.

33. Annual Adjustment of Fixed Fee Renewal of the contract will be considered in March each year. Upon renewal of this contract, the price on each item may be increased or decreased based on the CPI for all Urban Consumers as calculated for the previous calendar year by using the CPI Inflation Calculator to derive the amount. The calculator is located at:

https://www.bls.gov/data/inflation_calculator.htm

A sample calculation is below:

Based on the above information prices would have been allowed to increase not more than 2.62%.

OCNC and the awarded proposer reserve the right to negotiate a rate less than but not to exceed the rate referenced by this methodology.

34 References Proposer is to provide references in accordance with Attachment J. Names, email addresses and phone, and email contact information of not less than 2 customers with multi-site deliveries will be contacted as references with the following questions:

Is the proposer responsive to the customer’s needs?

Is the proposer reliable?

Has the proposer fulfilled agreement requirements?

Does the proposer process invoices and credits efficiently and accurately?

Are products received in clean, temperature appropriate trucks.

Are the delivery personnel professional and helpful?

How long has the customer purchased from the proposer?

https://www.bls.gov/data/inflation_calculator.htm

Has the proposer at any time canceled a contract before its expiration date? If yes, was the cancellation in accordance with the applicable RFP terms and conditions?

Is there other information that you would like OCNC to consider as a reference for the proposer organization?

In addition, OCNC reserves the right to select additional current customers or past customers for reference information.

Responses to the above questions will be weighted and evaluated. A failing evaluation shall result in disqualification of the proposal.

Responses to references will represent up to 15 points of the final Award score for the proposer.

35. Additional Services Proposer is to outline additional services they may provide to OCNC members as part of their execution of this RFP on Attachment K, item 7.

AWARD OF CONTRACT

1. The OCNC Board of Directors shall function as the evaluation committee for all proposals.

2. OCNC herein expressly reserves the rights:

a. to reject all offers;

b. to waive any and/or all irregularities in the proposals submitted if deemed not to be material;

c. to select the proposal that represents the best interest of OCNC and it’s members;

d. to reject any proposal not in compliance with procurement regulations, procedures, and requirements pursuant to ORS 279;and other applicable CFR, ORS, and OAR guidance;

e. to change specific products being purchased as a result of the product being discontinued, the product no longer qualifying as a meal component, documentation of non-remedied poor quality issues, changes in the United States Department of Agriculture (USDA) meal requirements, or changes in funding levels.

3. Proposals will not be made part of the public record until after the Notice of Intent to Award (NIA) has been posted. After the NIA is distributed, documents, including the evaluation report will then be available for public review. Items or information deemed as “trade secrets” (e.g. offered pricing) may not be available without express permission from the submitting vendor or owner.

4. An award of contract to any proposer shall not constitute a rejection of any other offer.

5. In the event two or more offers shall be for the same value, the members OCNC may determine award of the RFP as they deem appropriate and in the best interest of OCNC and its members.

6. One award will be issued to the most responsive and responsible proposer.

Award shall be based on the following criteria:

a. Prequalification through attendance of the mandatory interested party meeting

b. Answers to Critical Factors – pass or fail

c. Review of financial documents for pre-qualification = pass or fail

d. Price – lowest extended total = 55 points, second lowest = 35 points

e. Reference responses from current or past customers = 15 points

f. Fee Charts = pass or fail

g. Technical Factors

i. Most responsible & responsive = 25

ii. Demonstrated ability to execute the RFP = 20

Total points available = 150

7. In case of any conflict between the terms and conditions contained herein, the order of authority shall be as follows: (1) Q&A or Addenda controlling them, (2) Instructions.

8. OCNC shall post to the OCNC website and email the NIA to all members and proposers on or before May 24, 2022. Any proposer wishing to protest the contract award may do so by filing a written protest within seven (7) calendar days of the issuance of the NIA. The protest must specify the grounds on which a protest is based. A proposer is only adversely affected if it is next in line for the award as the best responsive and responsible proposal.