PCS 137 - GOODS

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Stephanie Muth, Executive Commissioner

Invitation for Bids (IFB) for

FY27 Dairy Products, Juices, Statewide

IFB No. HHS0017418

NIGP Class/Item No(s): 380/15,30,75; 393/60,77

Procurement Schedule - All Times are Central Time Reference Section 2 for further information

IFB Date Posted to ESBD June 22, 2026

Questions or Clarifications Submission Deadline June 30, 2026, 5:00 PM

Responses to Questions or Clarifications - Addendum posted on the ESBD July 10, 2026, 5:00 PM

Response Deadline: Responses to this IFB must be received July 15, 2026, 10:30 AM

Anticipated Contract Start Date September 01, 2026

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Table of Contents 1 Introduction and Purpose of IFB

1.1 Authority

1.2 Historical Monetary Value

1.3 No Guarantee of Volume, Usage or Compensation

1.4 Negotiation, Exceptions or Assumptions

1.5 IFB Components

2 Procurement Schedule 3 Withdrawal or Amendment of Response 4 HHSC Overview 5 Definitions 6 General IFB Information

6.1 Sole Point of Contact and Communications

6.2 Exception to the Sole Point of Contact

6.3 Binding Offer Period

6.4 Costs Incurred

6.5 Changes, Modifications and Cancellation

6.6 Ambiguity, Conflict, Discrepancy

6.7 IFB Questions or Clarifications

6.8 Notification of Addenda or Cancellation

7 Scope of Work (SOW)

7.1 Specifications

7.2 Equal Products

7.3 Product Condition, Quality and Reworked Products

7.4 Ordering and Delivery Guidelines

7.5 Mandatory Reporting

8 HUB Subcontracting Plan (HSP) Requirements

8.1 HUB Subcontracting Plan (HSP)

9 Pricing Information

9.1 Pricing Structure

9.2 Price Adjustments

10 Changes to The Contract 11 Contract Term

11.1 Term of Contract

11.2 Initial Contract Term:

11.3 Renewal Option(s)

11.4 Extension Option

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12 Contract Administration/ Purchase Order Administration

12.1 Contract Manager/Program Lead

12.2 Performed Services Monitoring

12.3 Performance Reporting

12.4 Contractor Response to Notification of Non-Material Deficiency

12.5 Corrective Action Plan (The Plan)

12.6 Performance Issues

12.7 Public Information Act – Bidder Requirements Regarding Disclosure

12.8 Bidder Waiver – Intellectual Property

13 Invoicing and Payment

13.1 Bill-to Address

13.2 Invoice Information

13.3 Payment

13.4 Invoice Submission

13.5 Disputed Invoice(s)

14 Screening of Responses

14.1 Administrative Screening

14.2 Irregularities

15 Evaluation

15.1 Evaluation of Responses

15.2 Conformance with State Law for Evaluation

15.3 Specific Evaluation Criteria

16 Award 17 Standards of Conduct for Vendors 18 Disclosure of Interested Parties 19 Protest Procedures Appendix A – Submission Instructions and Response Checklist

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1 Introduction and Purpose of IFB The Texas Health and Human Services Commission (HHSC) is an agency within the Texas Health and Human Services (HHS) system. The Procurement and Contracting Services (PCS) division of HHSC administers IFBs for HHS.

HHSC PCS is seeking competitive bids to establish contract(s) for Dairy Products and Juices delivered to designated facilities statewide.

Both HHS Agencies, HHSC and DSHS, will be entitled to use any contract awarded as a result of this IFB.

To be considered for award, Bidders must submit a comprehensive Response which includes all required information and documentation as outlined in this IFB to ensure the Bidder meets all requirements, possesses the required experience and qualifications, and has the capacity to provide the goods and/or services described in this IFB. See Appendix A, Submission Instructions and Response Checklist.

1.1 Authority

HHSC is soliciting the goods and/or services stated in this IFB under Texas Government Code 2155.144.

1.2 Historical Monetary Value

Historical spend for the same or similar goods or services is $3,200,000.00 for the period 09/01/26 - 08/31/27 with one (1) additional one (1) year period options to renew. The option to renew will be solely at the discretion of the Agency. See Section 11 for details.

The estimated historical spend is provided only as a guideline for preparing the pricing response and should not be construed as representing anticipated or actual quantities that will be required.

1.3 No Guarantee of Volume, Usage or Compensation

HHS Agency does not guarantee any volume, usage, or compensation to be paid to any Contractor under any Contract resulting from this IFB. Additionally, all HHS Agency contracts are subject to appropriations, the availability of funds, and termination.

1.4 Negotiation, Exceptions or Assumptions

Negotiations are prohibited under the IFB procurement method under most circumstances, and even then, the scope of permissible negotiations is limited and may not result in a material change to the scope of work or specifications as advertised in this IFB.

https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2155.htm#2155.144 https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2155.htm#2155.144

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Bidders should NOT submit exceptions to this IFB which could result in disqualification of a Response. No changes to a Response can be made after the submission deadline.

No assumptions should be included in a Response. The inclusion of assumptions could result in disqualification of a Response. Instead, a Bidder should advance assumptions and seek clarification of a section of this IFB, any Exhibits or attachments, in the form and manner required in Section 6.7 IFB Questions or Clarifications.

1.5 IFB Components

This IFB includes the following items:

• PCS 137 IFB (this document)

• Exhibit A – HHS Solicitation Affirmations

• Exhibit B – PCS 111-Contract Affirmations and HHS Uniform Terms and Conditions (UTCs)

• Exhibit C – Pricing Sheet

• Exhibit D – HHS Online Bid Room Information

• Exhibit D-1 – PCS Map

• Exhibit E – FY27 Dairy Products, Juices, Statewide IFB Price Sheet

• Exhibit 2 – Warranty Resolution Form

2 Procurement Schedule The Procurement Schedule dates on the cover page of this IFB are tentative. HHSC reserves the right to modify these dates at any time by issuing an addendum. Any events listed in the Procurement Schedule after the Response Deadline will occur at the discretion of HHSC.

Responses must be received by HHSC prior to the Response Deadline as indicated in the Procurement Schedule or as changed via an Addendum. Every Bidder is solely responsible for ensuring its Response is received by HHSC before the Response Deadline in accordance with all requirements regarding submission. HHSC is not responsible for lost, misdirected or late Responses.

By submitting a Response, the Bidder represents and warrants that the individual submitting the Response, inclusive of the documents made part of the Response, is authorized to sign on behalf of the Bidder, and to bind the Bidder under any Contract that may result from this IFB.

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3 Withdrawal or Amendment of Response Bidders may withdraw or amend their Responses at any time prior to the Response Deadline by e-mailing the point of contact listed in Section 6.1 (Sole Point of Contact and Communications).

The e-mail subject line for withdrawal or response amendment should contain the IFB number as indicated on the cover page of this IFB. The Bidder is solely responsible for ensuring the email is received by HHSC before the Response Deadline. HHSC is not responsible for lost or misdirected e-mails.

4 HHSC Overview The Health and Human Services Commission (HHSC) was created in 1991 to oversee and coordinate the planning and delivery of health and human services in Texas. It is established pursuant to Chapter 523, Texas Government Code and is responsible for oversight of Texas Health and Human Services agencies.

PCS administers the procurement process, which includes IFB announcement and publication, Bidder communications, receipt of Responses, screening of timely received responses, and facilitating the evaluation of qualified Responses. PCS, in coordination with each HHS program, manages the execution of the award, through issuance of Purchase Order(s) or other Contract document, resulting from this IFB.

5 Definitions Unless the context clearly indicates otherwise, throughout this IFB, the definition given to a term below applies whenever the term appears in this IFB, in any Response (Bid) submitted in response to this IFB, and in any Contract awarded as a result of this IFB. All other terms have their ordinary and common meaning.

a) Addendum – A written clarification or revision to this IFB issued by HHSC.

b) Bidder – The entity or individual that submits a response to this IFB. Includes anyone acting on behalf of the entity or individual that submits a response, such as an agent, employee, or representative. See also Respondent below.

c) Contract –The signed Purchase Order or Signature Document, the Uniform Terms and Conditions, Affirmations, along with any Attachments, Exhibits and any Amendments, purchase orders, or Work Orders that may be issued by HHSC, to be incorporated by reference for all purposes as a result of this IFB.

d) Contractor - Each Bidder, business entity or individual, if any, awarded a Purchase Order or other Contract to provide the services or goods as a result of this IFB.

e) Contract Term – The period of time during which the Purchase Order or Contract is in effect from the start date through the end date and may include renewal or extension periods.

https://statutes.capitol.texas.gov/?tab=1&code=GV&chapter=GV.523&artSec=

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f) Debarment – An exclusion from contracting or subcontracting with state agencies on the basis of cause pursuant to Title 34, Part 1, Chapter 20, Subchapter G of the Texas Administrative Code, and the Federal System for Award Management (SAM).

g) Deliverables – The services or goods specified in this IFB and any resulting Contract that the Contractor shall perform or deliver to the HHS Agency.

h) Electronic State Business Daily (ESBD) - The electronic online directory, administered by the Comptroller of Public Accounts, Statewide Procurement Division (SPD), for publishing procurement opportunities which exceed $25,000 in total estimated value and for providing public notice of contract awards. The ESBD may be accessed through the CPA web site at: https://www.txsmartbuy.com/esbd.

Note: The Texas Comptroller of Public Accounts (CPA) recommends utilizing Google Chrome when navigating CPA websites.

i) Exhibit – A document, included as an attachment to this IFB, which provides terms and conditions, additional requirements and information related to this IFB.

j) HHS Agency - HHSC or any of the agencies of the State of Texas that are overseen by HHSC under authority granted under state law and the officers, employees, authorized representatives, and designees of those agencies. These agencies include: HHSC and the Department of State Health Services (DSHS), separately or combined. May also be referred to as System Agency.

k) IFB - This document, including all exhibits, attachments, appendices, or Addenda (if applicable). May also be referred to as Invitation for Bids.

l) NIGP (The National Institute of Governmental Purchasing (NIGP) Commodity Book) – The Class-Item numbering and descriptions used by state agencies to properly code services or products for a procurement.

m) Purchase Order – A legally enforceable agreement issued by HHSC indicating types, quantities, and agreed pricing for services and goods the Contractor will provide under any Contract resulting from this IFB.

n) Response – All information and materials submitted by a Bidder in response to this IFB.

May also be referred to as Bid or Bid Response.

o) Respondent – A term interchangeable with Bidder.

p) Scope of Work – The description of requirements, services, specifications for goods which may be required, and deliverables as provided in this IFB and any resulting Contract which the Contractor is required to provide.

q) Subcontractor - Any entity or individual that enters into a contract with the Contractor to perform part or all of the obligations of the Contractor under the Contract.

r) Texas Identification Number (TIN) – The 11-digit identification number set up through the Texas Comptroller of Public Accounts which is required for any entity or individual to http://www.txsmartbuy.com/sp https://www.txsmartbuy.com/esbd

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https://fmx.cpa.texas.gov/fm/pubs/payment/gen_prov/index.php?s=payee_numreq&p =payee_numreq.

s) Unit of Measure – The set unit of measure (UOM), included on the Pricing Sheet, used for payment of the services under the Contract or Purchase Order. May be hourly, daily, weekly, monthly, etc.

t) Unit Rate – The set rate per the unit of measure (UOM) used for payment of the services, included on the Price Sheet, under the Contract or Purchase Order. May be hourly, daily, weekly, monthly, etc.

u) Vendor – A business entity or individual that supplies services or goods and may be a potential Bidder to this IFB.

6 General IFB Information

6.1 Sole Point of Contact and Communications

The HHSC PCS Sole Point of Contact for inquiries concerning this IFB is:

Ja’Vorashay Johnson, CTCD, CTCM

Procurement and Contracting Services Building 1100 W 49th St. MC: 2020 Austin, TX 78756

512-406-2563

JaVorashay.Johnson03@hhs.texas.gov

Bidders shall NOT use the e-mail address above for submission of a Response to this IFB. See Appendix A for submission requirements.

Bidders shall direct all communications, including questions or clarifications relating to this IFB, by e-mail to the HHSC PCS Sole Point of Contact named in Section 6.1 (Sole Point of Contact and Communications); communications by phone will not be accepted except for purposes such as instructing a potential Respondent through an IT system or website referenced in this Solicitation.

All other communications between a Bidder and HHS agency staff concerning this IFB are prohibited. In no instance is a Bidder to discuss cost information regarding this IFB with the HHSC PCS Sole Point of Contact or any other HHS staff. Failure to comply with these requirements may result in disqualification of the Response.

The Sole Point of Contact will authorize a secondary Sole Point of Contact in the event of their absence and, in such an event, will include the contact information for the secondary Sole Point https://fmx.cpa.texas.gov/fm/pubs/payment/gen_prov/index.php?s=payee_numreq&p=payee_numreq https://fmx.cpa.texas.gov/fm/pubs/payment/gen_prov/index.php?s=payee_numreq&p=payee_numreq mailto:JaVorashay.Johnson03@hhs.texas.gov

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This restriction (as to only communicating in writing with the HHSC Sole Point of Contact identified above) does not preclude discussions between Bidder and agency personnel for the purposes of conducting business unrelated to this IFB.

6.2 Exception to the Sole Point of Contact

The only exceptions to the Sole Point of Contact are the HUB Coordinator, or, if expressly directed by the Sole Point of Contact, another designated System Agency representative.

6.3 Binding Offer Period

By submitting a Response to this IFB, Bidder agrees that its Response will remain a firm and binding offer for 240 days, as stated in the HHS Solicitation Affirmations (Exhibit A).

Bidder may extend the time for which its Response will be firm and binding and include the extended period in the Response.

6.4 Costs Incurred

Bidder understands that issuance of this IFB or retention of responses in no way constitutes a commitment by HHSC to award a Contract. HHSC accepts no obligations for costs incurred in preparing and submitting a response, including, but not limited to, preparing for or participating in a vendor conference or site visit.

Responses shall be submitted at the sole expense of the Bidder. All responses shall be prepared simply and economically, providing a straightforward, concise delineation of the Bidder’s capabilities to satisfy the requirements of this IFB.

6.5 Changes, Modifications and Cancellation

HHSC reserves the right to change, amend, or modify this IFB prior to the Response Deadline indicated in the Procurement Schedule (cover page of this IFB). Changes, amendments and modifications will be processed through one or more Addendum. The notification for any Addendum will be processed in accordance with the Notification of Addenda or Cancellation, Section 6.8.

HHSC reserves the right to cancel this IFB at any time. The notice of cancellation will be in accordance with the Notification of Addenda or Cancellation, Section 6.8.

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6.6 Ambiguity, Conflict, Discrepancy

Bidders must notify the Sole Point of Contact, Section 6.1, of any ambiguity, conflict, discrepancy, exclusionary specification, omission or other error in the IFB in the manner and by the deadline for submitting questions.

If Bidder fails to properly and timely notify the Sole Point of Contact, Section 6.1, of any ambiguity, conflict, discrepancy, exclusionary specification, omission or other error in the IFB, the Bidder, whether awarded a contract or not:

a) shall have waived any claim of error or ambiguity in the IFB and any resulting contract,

b) shall not contest the interpretation by HHSC of such provision(s), and

c) shall not be entitled to additional compensation, relief, or time by reason of ambiguity, conflict, discrepancy, exclusionary specification, omission, or other error or its later correction.

6.7 IFB Questions or Clarifications

HHSC will allow questions and requests for clarification regarding this IFB if submitted by e-mail to the Sole Point of Contact, Section 6.1, by the deadline established in the Procurement Schedule (cover page of this IFB) or deadlines established in subsequent Addenda. Responses to questions or other written requests for clarification will not be provided individually to requestors but will be consolidated in one or more Addenda.

HHSC reserves the right to amend the answers to questions or clarifications prior to the Response Deadline (cover page of this IFB) through a new Addendum. The notification will be processed in accordance with the Notification of Addenda or Cancellation, Section 6.8

6.7.1 Submission of Questions or Clarifications

All questions and requests for clarification must be submitted by e-mail and include the following information:

a) IFB Number and Title of IFB (cover page of this IFB) must be included in the e-mail subject line and in the e-mail body;

b) Section or Paragraph number from this IFB;

c) Page Number of this IFB;

d) Exhibit name, Section or Paragraph, page number from the Exhibit;

e) Language, Topic, Section Heading being questioned or requested for clarification;

f) Requestor Contact Information must be included in the body of the e-mail.

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Questions or requests for clarification received after the deadline set in the Procurement Schedule (cover page of this IFB), or deadlines established in subsequent Addenda, may be reviewed by HHSC but will not be answered.

6.8 Notification of Addenda or Cancellation

6.8.1 Addenda Notification

All addenda will be posted to the ESBD. It is the responsibility of each potential Bidder to monitor the ESBD for any Addenda affecting this IFB. Failure to check the ESBD will in no way release any potential Bidder or awarded Contractor from the requirements of posted Addenda.

No HHS Agency will be responsible or liable in any regard for the failure of any Bidder or awarded Contractor to stay informed of all postings to the ESBD. If the Bidder fails to monitor the ESBD for any changes or modifications to this IFB, such failure will not relieve the Bidder or Contractor of its obligation to fulfill the requirements as posted.

6.8.2 Cancellation Notification

HHSC reserves the right to cancel this IFB at any time. Notice of the cancellation will be posted on the ESBD. Bidders are responsible for monitoring the ESBD frequently for notices regarding this IFB.

7 Scope of Work (SOW)

7.1 Specifications

The required goods to be provided are Dairy Products and Juices for HHSC State Hospitals and State Supported Living Centers and food service entities located on these campuses such as canteens and coffee houses. HHSC may add QOEs (Qualifying Ordering Entity, which is a facility, either state hospital or State Supported living center) as needed.

“Dairy products” means milk, sour cream, butter, cheese or any product consisting largely of one or more and other products usually provided by dairy companies. See Master Product Guide in Exhibit E FY27 Dairy Products, Juices, Statewide IFB Price Sheet for a complete list of products.

Product Order Guide/Price Sheets are provided in Exhibit C, listing each QOE on a separate tab with the products they are requesting and historical amounts of typical usage.

Bidders shall bid on QOE’s tabs they intend to service throughout the life of the contract.

A bidder is not required to bid on all QOEs, though a bidder may not exclude a canteen on the same campus as a QOE. Awards to multiple bidders may be made so that all QOEs within the state are provided with Dairy Products and service.

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Bidder must bid at minimum 95% of the fluid dairy products requested for the QOEs they want to service. Lines with NO BID on QOE Order Guides must provide explanation in the Comments column.

Fluid dairy products are the highest priority of this solicitation however dairy companies typically provide a variety of perishable juices and solid dairy products such as cottage cheese and sour cream. Bidding on juices and or solid dairy products is desirable but is not mandatory to be considered for award.

HHSC reserves the right to cancel this bid opportunity and make no award(s).

See Pricing Sheet, Exhibit C and Exhibit E FY27 Dairy Products, Juices, Statewide IFB Price Sheet.

7.2 Equal Products

a) The information identified above is intended to be descriptive, not restrictive, and to indicate the quality and characteristics of products that will be satisfactory. If bidding other than specified brand or part number, bidder must include with bid sufficient literature to allow evaluation of the items. Failure to provide literature with bid response may be cause for not considering for an award.

b) A sample of products may be requested at any time for quality control monitoring in compliance with the agency quality assurance plan. In addition, if a complaint on a product has been made, a sample case may be requested. Samples must arrive in original packaging with full labeling.

c) Bidders are to follow specifications on products. Altering specifications will not be allowed. If bidder cannot bid on the size listed on the bid, bid on the size nearest that requested. Bidder must show size offered if other than specified. HHSC has the option to accept or reject different sizes.

d) After award, a QOE may add a product already listed in the master order guide/price sheet as it is considered part of the original contract. The Vendor or those representing the vendor may not offer items for sale not on the Master Product Guide.

e) Items for which the USDA has assigned a grade shall conform to those requirements.

Any cost incurred to verify compliance with these specifications will be the responsibility of the vendor if product is found not to be in compliance.

f) Dairy products that have been imported from outside the United States of America will not be accepted.

g) The specifications establish requirements for the procurement of dairy products, as regulated by the Federal Food, Drug, and Cosmetic Act.

7.3 Product Condition, Quality and Reworked Products

a) During the course of the contract, REWORKED PRODUCTS, PRODUCTS PREVIOUSLY

REFUSED FOR DELIVERY OR SECONDS WILL NOT BE ACCEPTED. Unauthorized substitutions are prohibited. No substitutions, including product code number changes, Version 2.00 Page 13 of 34 Revision Date 03/18/2026 shall be made unless the vendor has obtained prior written approval from HHSC FOS NFS (Facility Operations Support Nutrition and Food Service), prior to shipment.

b) Cost of substitute items shall be the same as the cost for the awarded item. Substitutions must meet or exceed the specifications written in the item description as published in this Solicitation. Temporary substitutions may not be added to the facility’s list of available products (sell sheet) to order. Any changes/substitutions to the approved Product Guide/Price Sheet must be made through FOS NFS (Facilities Operation Support Nutrition and Food Service).

c) Packaging labels may not include commercial advertisement (i.e., half-pint cartons shall not be imprinted with a retail store, restaurant name or logo) or child nutrition characters.

d) Product samples and labels: Labels with nutritional information and specifications shall be provided upon request. FOS NFS may request product samples.

e) Any cost incurred to verify compliance with these specifications will be the responsibility of the contractor if product is found to be not in compliance. This may include but is not limited to laboratory tests.

7.4 Ordering and Delivery Guidelines

a) Refrigerated dairy items must arrive in a compartment reading less than 40 degrees, but not less than 32 degrees and the food products must register 40 degrees or less upon inspection.

b) Product dating will reflect normal shelf-life of perishables and within any dates listed.

Dairy products must have 7 days remaining from the best-buy date listed on the package.

c) Bidders must have an ordering system which allows the QOE to place an order with a means to confirm the quantity and items ordered, the date the order was placed, the date the delivery is due, the contractor received the order and provide a verifiable history of that order. This can be online, by phone, or in-person and handwritten through the delivery driver. The order system to be used must be stated in the bid. If an awarded contractor allows delivery drivers to follow a different order and verification method, this must be disclosed prior to service start date and agreed upon with the

QOE.

d) Successful Bidder is to deliver products to state facilities by orders received no less than two times per week, or at an interval mutually agreed upon by awarded vendor and

QOE.

e) The QOE shall notify contractor of quantities needed for each delivery no less than one week prior to needed delivery date or as agreed to by the person with authority over the facility Food Service and the contractor representative.

f) The Contractor shall have an active telephone service answered during normal business hours. Normal business hours are between 8 a.m. and 5 p.m. Monday through Friday, unless otherwise stated in the IFB.

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g) The telephone number provided must enable the QOE to speak directly with someone who can speak for their current delivery to resolve any immediate problems or pass on a message for a call back within one hour of initial call.

h) Deliveries are to be made on date and time specified AND as agreed upon by person in charge of food service at the QOE and the contractor. Mutually agreed-upon days of delivery must be part of this contract. Many of the facility food service areas have limited storage space and require multiple deliveries made on consistent days of the week.

i) Delivery times are to be between 7 am- 2 pm, Monday through Friday or as agreed by QOE. Deliveries earlier than 7 am may be agreed upon, however product MAY NOT be left unattended without being checked in by QOE staff.

j) Delivery to canteens must also meet these requirements.

k) It is the awarded contractor’s responsibility to contact the QOE Foodservice if unforeseen circumstances arise that may cause a delivery to be late and if any portion of an order is not available for delivery. Notice is required so that the QOE has adequate time to make arrangements for replacement items. HHSC reserves the right to purchase late items on an emergency basis and charge any resulting increase in price and any additional delivery charges to the awarded contractor.

l) Cartons will be rejected if they show obvious signs of temperature abuse, leaking or frozen upon arrival.

m) Milk crates must be clean and free of obvious signs of excess dust, dirt, pests or vermin and anything other than what is considered clean and sanitary for food storage and transport. At all times food shall be protected from all contamination, including during warehousing and transportation.

n) Products delivered by a third-party or sub-contractor must follow the same rules as stated in this IFB.

o) Empty milk crates shall be picked up on each delivery.

p) Driver Rules while on HHSC facility grounds/campus

1) Observe all posted speed limits. Speed limits are strictly enforced.

2) Observe all stop signs and other traffic controls.

3) Parking must be in area designated by Warehouse staff.

4) Vehicles must be locked, and keys removed at all times when unattended.

5) Pedestrians have the right-of-way at all times. Drive with extreme caution and be prepared to cope with unexpected circumstances.

6) Firearms and alcoholic beverages are forbidden on campus.

7) Tools and equipment must be properly secured at all times.

8) No smoking.

9) Contact with residents is forbidden. Do not offer cigarettes, matches, lighters, food or money to residents.

10) If you require assistance with a resident, notify Facility staff.

11) It is required that vendor contact the Point of Contact specified on the issued PO to set up a delivery appointment.

7.4.1 Carton Labeling/Pallet Labeling

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a) At a minimum, product must be labeled on outer carton with the following information:

b) Description of Contents

c) Agency Purchase Order #

d) Quantity per Carton

e) At a minimum, pallets must be shrink wrapped and labeled.

f) It is required that vendor contact the Point of Contact specified on the issued PO to set up a delivery appointment.

g) Deliveries are to be made between 7:00 AM and 2:00 PM on date specified, but not between 11:00 AM and Noon to the address specified on the issued PO.

h) The vendor is responsible for payment of any additional charges by the contract warehouse (such as overtime, blast freezing, lowering temperatures, re-stacking;

second delivery due to split delivery quantity [unless requested by HHSC], unloading charges, etc.).

i) ALL deliveries shall arrive ON TIME as requested by HHSC. It is the awarded vendor’s responsibility to contact the Point of Contact specified on the issued PO if unforeseen circumstances arise that may cause a delivery to be late.

j) HHSC reserves the right to purchase late items on an emergency basis and charge any resulting increase in price to the awarded vendor.

k) On orders calling for multiple deliveries, awarded vendor will be notified in writing by HHSC approximately four (4) weeks prior to requested delivery date.

l) Orders must be delivered complete. Items delivered must be the item bid. Mixing of brands of items will not be allowed. Split deliveries will not be accepted, unless requested.

m) Products delivered that fail to meet specifications or are not the actual item(s) awarded on the contract shall be rejected or returned at the vendor's expense. Vendor will reimburse the agency for cost of storage and handling fees incurred at the contracted storage facility and any cost to pick up and return product delivered to individual facilities. Any cost incurred to verify compliance with these specifications will be the responsibility of the vendor if product is found not to be in compliance. This may include but is not limited to laboratory tests.

7.4.2 Receiving Products

The Agency will ensure product received is the same as awarded item. Product that is not the awarded contract item, or product that is damaged or otherwise not in good condition, will be refused at delivery; or will be set aside for return and invoice credit if discovered after delivery (e.g., half-pints found to be leaking).

Instances of damaged case goods, the Agency will accept the product that is in good condition and return the portion of the shipment that is damaged. If shortages occur due to refusal of damaged products or otherwise at the fault of the vendor, the QOE may purchase needed items locally on an Emergency Purchase Basis. The awarded contract vendor shall be responsible for the difference in cost, if any, between the contract item and the emergency purchase items. Should FOS NFS determine an awarded product does not meet the

Version 2.00 Page 16 of 34 Revision Date 03/18/2026 specifications listed FOS NFS will immediately contact the vendor to attempt resolution. If not resolved, the FOS NFS will contact the HHSC Buyer and HHSC Contract Manager.

The QOE will retain the product case, label intact, under appropriate storage conditions until product is secured for further investigation.

7.4.3 State Holidays

The state holidays observed are maintained by the State Auditor’s Office and may be accessed at: https://hr.sao.texas.gov/Holidays. HHS Agency does not require services to be performed on the “All agencies closed” holidays and any exception will be provided in writing to the Contractor. HHS Agency requires services to be performed for “Optional Holidays” or “Skeleton Crew Required” holidays.

To fulfill the required services, as applicable, the Contractor may perform the services on a holiday observed by HHS at NO additional expense to the HHS Agency.

Authorized services performed by Contractor on a state holiday will be invoiced at the Contract rate for Outside Regular Hours.

7.4.4 Contractor Responsibilities

The Contractor(s) is solely responsible for the performance of all services and requirements referenced in Section 7.1, Scope of Work and this IFB.

Contractor will not be relieved of its obligations for any nonperformance by its employees or Subcontractor(s).

a) The Contractor shall furnish all labor, tools, transportation, equipment, materials, and supplies, as necessary, to perform the services and/or provide the goods, as required.

b) The Contractor shall be responsible for supervision of its employees and Subcontractor employees, together with clean up and proper disposal of any site waste.

c) Telephone Service - The Contractor shall have an active telephone service answered during normal business hours. Normal business hours are between 8 a.m. and 5 p.m.

Monday through Friday, unless otherwise stated in the IFB.

d) The contractor shall provide the name and accurate contact information of a contract representative for contact with agency level representatives.

e) Contractor and agency representatives will meet within 45 days of contract start date, once between February 1 and before the 15th of March and once prior to the start of annual renewal period. These meetings may be on Teams and will be set up by FOS NFS.

f) Communication with agency representatives is required.

https://hr.sao.texas.gov/Holidays

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1) Direct communication with the end user, QOE, regarding orders, delivery dates and times and specifics related to deliveries will be made directly between the QOE and the vendor. QOE will be notified directly and immediately of any safety concerns or recalls.

2) The contractor shall contact HHSC purchaser, HSCS Contract Manager, and FOS NFS when contractual changes need to be discussed. Examples, but not limited to are changes in name, business address and primary contact information, TIN, ownership;

and major operation interruptions or changes which could impact delivery to QOEs.

3) Adding items to contract, discontinuations, substitutions, recalls, and unresolved concerns elevated above the local level shall be addressed with FOS NFS.

7.5 Mandatory Reporting

Vendor shall provide FOS NFS a report detailing order quantities, order item fill quantities, and price, for each line item, by facility. This report is produced and sent electronically to FSSNutritionFood@hhs.texas.gov on a quarterly basis no later than the 15th of the month following each quarter, Q1 September 1 – November 30, due December 15th; Q2 December 1 – February 28, due March 15; Q3 March 1 – May 31, due June 15th; and Q4 Jule 1 – August 31st, due September 15th.

An Excel compatible spread sheet is the preferred data method with enough description to identify what the product is. The format can be discussed and agreed upon with vendor and FOS NFS. Failure to provide mandatory reports may result in negative vendor performance reporting and jeopardize future bidding with the state.

8 HUB Subcontracting Plan (HSP) Requirements The Comptroller of Public Accounts (CPA), Statewide Procurement Division (SPD) administers the Historically Underutilized Business (HUB) Program in accordance with Chapter 2161, Texas Government Code, and Title 34,TAC Part 1, Chapter 20, Subchapter D, Division 1 Rules §20.281 to §20.298, . The HUB Program rules may also be accessed at:

https://comptroller.texas.gov/purchasing/vendor/hub/.

It is the policy of HHSC to promote and encourage contracting and subcontracting opportunities with State of Texas-certified Historically Underutilized Businesses (HUBs). Information regarding the HHSC Policy on Using HUBs may be accessed at: https://hhs.texas.gov/doing-business-hhs/contracting-hhs/historically-underutilized-business-opportunities-program.

8.1 HUB Subcontracting Plan (HSP)

Although submission of the HSP is NOT required, if Bidders identify subcontracting opportunities or have a need to subcontract to fulfill any portion of an awarded Contract, Bidders are encouraged to submit, with their Proposal, a properly completed HSP.

mailto:FSSNutritionFood@hhs.texas.gov https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2161.htm https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2161.htm https://texas-sos.appianportalsgov.com/rules-and-meetings?chapter=20&division=1&interface=VIEW_TAC&part=1&subchapter=D&title=34 https://texas-sos.appianportalsgov.com/rules-and-meetings?chapter=20&division=1&interface=VIEW_TAC&part=1&subchapter=D&title=34 https://comptroller.texas.gov/purchasing/vendor/hub/ https://www.hhs.texas.gov/business/contracting-hhs/historically-underutilized-business-opportunities-program https://www.hhs.texas.gov/business/contracting-hhs/historically-underutilized-business-opportunities-program

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To obtain more information regarding the HSP, contact the HUB Program Office. Provide the IFB number and title (cover page of this IFB).

• Phone: 512-406-2570 or

• E-mail: HHSCHUB@hhs.texas.gov

9 Pricing Information

9.1 Pricing Structure

Prices offered, as part of the Bidder’s response, must be firm, fixed prices for the life of the Contract.

The pricing must be submitted only using Exhibit C - Pricing Sheet based on the description and the unit of measure(s) provided for each line item. The unit prices must include all IFB requirements, including, but not limited to, labor, equipment, materials, supplies and all related expenses.

9.2 Price Adjustments

Contractors are required to immediately implement any price decrease that become available during the Contract term. Contractor must notify the designated HHSC Contract Manager in writing so that a Purchase Order Change Notice or Contract Amendment may be processed. The Contractor will be provided the HHS Agency Contract Manager contact information upon award.

9.2.1 Price Adjustment Index

Price adjustments are not automatic. Prices only may be adjusted at the sole discretion of

HHSC.

HHSC may permit price adjustments when correlated with the index as specified below and as published by the Bureau of Labor Statistics (BLS), Region VI, Washington, DC 20212.

BLS Website: https://data.bls.gov/cgi-bin/srgate

CPI-W Urban Wage Earners and Clerical Workers – Series ID: CWURR0000AA0:

https://data.bls.gov/timeseries/CWUR0000AA0

CPI-U All Urban Consumers – Series ID: CUUR0000AA0 https://data.bls.gov/timeseries/CUUR0000AA0

When using the most recent monthly information from the index, the following applies:

A = Index from the month of the Response Deadline of this IFB, OR mailto:HHSCHUB@hhs.texas.gov https://data.bls.gov/cgi-bin/srgate https://data.bls.gov/timeseries/CWUR0000AA0 https://data.bls.gov/timeseries/CUUR0000AA0

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The effective date/month of the last approved price increase or renewal option exercised whichever is later.

B = Current or latest baseline index

The allowable percent change must be calculated as follows:

B-A ÷ A x 100% = Percent of allowable price increase or decrease

Failure by the Contractor to calculate this formula and provide any supporting documentation will not be considered a properly submitted price increase request and will result in rejection of the price increase request.

The Contractor may offer price decreases in excess of the allowable percent change at any time during the term of the Contract.

9.2.2 Price Adjustment Requests

The Contractor must provide, in writing to the HHS Agency Contract Manager, a request for a price adjustment. The adjustment request must use the index and formula identified in Section

9.2.1 (Price Adjustment Index). Only contracts with renewals are eligible for CPI increases and must be completed prior to the start of the renewal period.

Contractor must provide supporting documentation to justify any price adjustment. Any request submitted that fails to use the formula above for calculating a price adjustment will not be considered a complete, properly submitted request and will be rejected. Additionally, any request submitted that does not include supporting documentation will not be considered a complete, properly submitted price adjustment request and will be rejected.

The HHS Agency reserves the right to accept or reject the request for a price adjustment. The Contractor will receive written notification, through a Purchase Order Change Notice or Contract Amendment, from the HHS Agency Contract Manager documenting action taken, to include effective dates, for any adjustments approved.

9.2.3 Discounts

If Contractor at any time during the term of the Contract provides a discount on the final contract costs, Contractor will notify HHSC in writing at least ten (10) calendar days prior to the effective date of the discount. HHSC will generate a Purchase Order Change Notice or other Contract Amendment and send a revised Purchase Order or amended Contract to Contractor.

9.2.4 Federal Minimum Wage Adjustments

Contractor may request a price adjustment based on an increase in the Federal Minimum Wage Rate, published by the U.S. Department of Labor (USDOL), if applicable.

The request must be submitted to the HHS Agency Contract Manager in writing and include supporting documentation from the USDOL reflecting the increase and the effective date of the increase. HHSC reserves the right to accept or reject the request for an increase.

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The effective date for an increase, if approved, will be based on the date of approval by the HHS Agency. Retroactive increases will not be allowed or approved if the USDOL effective date is prior to the date the written request is received by HHSC. Notification of an approved increase in the Contract rate will be provided through a Purchase Order Change Notice or Contract Amendment from the HHS Agency Contract Manager to include the new unit price and effective date for the increase.

10 Changes to The Contract Following award, additional services or changes, within the scope, or parameters of this IFB, will be added/removed via Purchase Order Change Notice (POCN) or Contract Amendment approved by the HHS Agency and the Contractor.

11 Contract Term

11.1 Term of Contract

The awarded Contract will be effective on the date the Contract is issued and will expire based on the schedule for delivery of services as outlined in this IFB or by the date or delivery days after receipt of order (ARO) provided by the Bidder.

11.2 Initial Contract Term:

Any contract resulting from this IFB will begin September 1, 2026, and expire August 31, 2027.

11.3 Renewal Option(s)

HHSC, at its sole discretion, may renew the Contract for up to One (1) Year Initial Contract with One (1) Year Renewal.

Renewal 1 Option: September 1, 2027, and expire August 31, 2028.

Such renewal(s), if exercised, shall be subject to all the requirements and terms and conditions of the Contract.

11.4 Extension Option

The HHS Agency, at its sole option and subject to availability of funding, may extend the term of the Purchase Order or other Contract beyond the initial term and all exercised renewal periods for up to one (1) year as necessary to ensure continuity of service, to process a new IFB, to secure a new contract, for purposes of transition to a new Contractor, or as otherwise determined by the HHS Agency.

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This extension, if exercised, will require the Contractor to continue performing services in accordance with the Purchase Order Change Notice (POCN) or other Contract Amendment, Contract requirements and all terms and conditions.

12 Contract Administration/ Purchase Order Administration

12.1 Contract Manager/Program Lead

An HHS Agency Contract Manager or Program Lead will be designated, and the contact information will be provided to the Contractor.

After award of any Contract resulting from this IFB, all communications related to the Contract and requests for changes to the Contract will be processed through the designated HHS Agency Contract Manager.

12.2 Performed Services Monitoring

a) The HHS Agency Contract Manager or designee will monitor all work performed by Contractor and shall regularly communicate with the Contractor to address questions, concerns or progress.

b) It is important that the Contractor performs all duties and requirements as stated.

Failure to do so may result in termination of the Contract.

c) All services and deliverables must meet or exceed the required levels of performance specified in this IFB.

d) Contractor will be notified by the HHS Agency Contract Manager or designee in writing to correct any service or portion of a service. The Contractor shall take immediate action to correct the service or portion of a service at no additional cost to the HHS Agency.

The Contractor shall notify the HHS Agency Contract Manager or designee upon completion for HHS Agency inspection and acceptance, as applicable.

12.3 Performance Reporting

The HHS Agency Contract Manager is required to report vendor performance for purchases over $25,000 through the Texas Comptroller of Public Accounts (CPA) Vendor Performance Tracking System (VPTS). The VPTS reporting is required throughout the life of a contract and not just at its conclusion. HHSC PCS, at its sole discretion, may submit reports in the VPTS on Contracts under $25,000. The VPTS information and report search may be accessed at:

https://www.txsmartbuy.com/vpts

Performance Notification – Non-Material Deficiency

The HHS Agency may notify Contractor in writing of specific areas of the Contractor’s performance that fail to meet performance expectations, standards, or schedules, but that, in https://comptroller.texas.gov/purchasing/programs/vendor-performance-tracking/ https://www.txsmartbuy.com/vpts

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12.4 Contractor Response to Notification of Non-Material Deficiency

The Contractor shall, within three (3) business days (or another date approved by the HHS Agency) of receipt of written notice of a non-material deficiency, provide the HHS Agency Contract Manager a written response that:

a) Explains the reasons for the deficiency, the Contractor’s plan to address or cure the deficiency, and when the deficiency will be cured.

The Contractor’s noncompliance or failure to timely correct the deficiency may result in delayed payment or non-payment as determined by the HHS Agency.

12.5 Corrective Action Plan (The Plan)

At its discretion, the HHS Agency may require the Contractor to submit a detailed written Corrective Action Plan and include how the Contractor will correct or resolve a performance issue, deficiency, or a breach of this Contract.

The Plan, at a minimum, must include, but is not limited to:

a) A detailed explanation of the reasons for the cited deficiency;

b) The Contractor’s assessment or diagnosis of the cause; and

c) A specific proposal to cure or resolve the deficiency to include a timeline for implementation.

The Plan must be submitted by the deadline set forth in the HHS Agency’s request.

The Plan is subject to HHS Agency approval.

12.6 Performance Issues

The Contractor shall be required to correct all performance issues reported by the HHS Agency Contract Manager within 48 business hours. The Contractor shall provide a written report detailing the performance issue(s) and resolution. The HHS Agency’s Contract Manager will report/discuss performance deficiencies with the Contractor and seek to achieve resolution of the issues.

12.7 Public Information Act – Bidder Requirements Regarding Disclosure

Proposals and contracts are subject to the Texas Public Information Act (PIA), Texas Government Code Chapter 552, and may be released to the public upon request. The HHS Agency also is required to post certain contracts and IFB responses on its public website and to provide such information to the Legislative Budget Board for posting on its website.

https://statutes.capitol.t…