IHGA 2017000139 National School Lunch Program FV.doc

A REQUEST FOR PROPOSALS

USDA Foods Processing & Commercial Equivalent Purchases

Request for Proposals – IHGA 2017000139 National School Lunch Program December 27, 2016 Table of Contents

Section I:

Issue and Timeline Information

Section II:

Administrative Information

Section III:

Background, Overview, and Goals

Section IV:

Requirements

Section V:

Response Format

Section VI:

Evaluation and Award

ATTACHMENTS:

A. Signature Page

B. Sample Contract

C. Confidentiality of Proposals and Certification of Indemnifications (Primary Vendor)

D. Confidentiality of Proposals and Certification of Indemnifications (Subcontractor)) E. Certification of Compliance with Terms and Conditions of RFP (Primary Vendor)

F. Certification of Compliance with Terms and Conditions of RFP (Subcontractor)

G. Vendor Disclosure Statement

H. Anti-Collusion Affidavit

I. Certification Regarding Lobbying

J. Disclosure of Lobbying Activities

K. Suspension and Debarment Certification

L. Clean Air and Water Certificate

SECTION I

ISSUE AND TIMELINE INFORMATION

A. ISSUING OFFICE:

This Request for Proposal (RFP) 2017000139 National School Lunch Program issued for the State of Colorado (State) by the Department of Human Services (CDHS or Department), for the benefit of the Department through the CDHS Division of Procurement. The CDHS Division of Procurement is the SOLE point of contact concerning this RFP. All communication must be made through the CDHS Division of Procurement.

B. INVITATION TO SUBMIT PROPOSALS:

The State of Colorado is posting this RFP on the Colorado Vender Self Service page (Colorado VSS) so that firms that have an interest may submit a proposal in accordance with the terms of this RFP.

C. MEANS OF COMMUNICATION:

In the event that it becomes necessary to revise any part of this RFP, a modification will be published on the Colorado VSS web site at www.colorado.gov/vss. It is incumbent upon Offerors to carefully and regularly monitor Colorado VSS for any such postings.

The CDHS Division of Procurement is the SOLE point of contact concerning this RFP and the procurement process. All communication for this procurement must be done through the CDHS Division of Procurement point of contact indicated in this RFP and Colorado VSS.

D. PURPOSE:

This RFP provides prospective firms with sufficient information to enable them to prepare and submit proposals for consideration to satisfy the need for expert assistance in the completion of the goals of this RFP.

E. SCOPE:

This RFP contains the instructions governing the proposal to be submitted and the material to be included therein; mandatory requirements which must be met to be eligible for consideration; and other requirements to be met by each proposal.

F. SCHEDULE OF ACTIVITIES:

Time

(Mountain Time) Date

12/27/16

01/05/17

See Administrative Information Section D for submission.

01/30/17

05/15/17

G. TERM OF CONTRACT:

The anticipated initial term of the resulting contract is July 1, 2017 through June 30, 2018. The resulting contract may be renewed for four (4) additional one-year periods at the sole discretion of the State, contingent upon funds being appropriated, budgeted, and otherwise made available, and other contractual requirements, if applicable, being satisfied.

Section II

ADMINISTRATIVE INFORMATION

A. OFFICIAL MEANS OF COMMUNICATION: During the solicitation process for this RFP, all official communication with Offerors will be via notices on Colorado VSS. Notices may include any modifications to administrative or performance requirement, answers to inquiries received, clarifications to requirements, and the announcement of the apparent winning Offeror. It is incumbent upon Offerors to carefully and regularly monitor VSS for any such notices.

B. INQUIRIES: Unless otherwise noted, prospective offerors may make written or e-mail inquiries concerning this RFP to obtain clarification of requirements. No inquiries will be accepted after the date and time indicated in the Schedule of Activities.

E-mail all inquiries to: Roman.Hernandez@state.co.us. Clearly identify your inquiries as RFP IHGA 2017000139 National School Lunch Program.

Responses to offerors’ inquiries will be published as a modification on the State of Colorado -VSS web page in a timely manner.

C. MODIFICATION OR WITHDRAWAL OF PROPOSALS: Proposals may be modified or withdrawn by the offeror prior to the established due date and time.

D. PROPOSAL SUBMISSION:

Your proposal package should include the following:

· one hard copy original (marked "original") of each of the technical and cost proposal

· Six (6) unprotected USB drives, using Microsoft office 2007-2010 products, with the technical and cost portions each in separate folders.

Proposals must be received on or before the date and time indicated in the Schedule of Activities. Late proposals will not be accepted. It is the responsibility of the offeror to ensure that the proposal is received by the Division of Procurement on or before the proposal opening date and time. Offerors mailing their proposals shall allow sufficient mail delivery time to ensure receipt of their proposals by the time specified. When sending your proposal by USPS or courier (UPS, Federal Express), provide a tracking number via email to the purchasing agent listed in this RFP.

The proposal package shall be delivered or sent by mail to:

Department of Human Services

North/Central Procurement Office, Attn.: Roman Hernandez

1575 Sherman St, 6th Floor Denver, CO 80203

Fax numbers: 303-866-5808

The State of Colorado Request for Proposal Signature Page MUST be signed in (preferably blue) ink by the offeror or an officer of the offeror legally authorized to bind the offeror to the proposal.

Proposals which are determined to be at a variance with this requirement may not be accepted.

Proposals must be submitted and sealed in a package showing the following information.

OFFEROR'S NAME

RFP # IHGA 2017000139 National School Lunch Program.

PROPOSAL DUE: Monday January 23, 2016 2:00 PM MST PUBLIC OPENING: On the date and time shown on the Request for Proposal Signature Page, the Division of Procurement will hold a Public Opening of Proposals. The Public Opening will disclose only the names of all Offerors who have submitted a proposal for evaluation by DHS. Information on costs and qualifications will be available from the Division of Procurement following selection of the winning Offeror.

E. PROPOSAL NARRATIVE LENGTH AND PAGE FORMATTING

The Division of Procurement desires and encourages that proposals be submitted on recycled paper, printed on both sides. While the appearance of proposals and professional presentation is important, the use of non-recyclable or non-recycled glossy paper is discouraged.

Applicants should adhere to the following length and page formatting instructions.

Total proposal Length:

Maximum of thirty five (50) pages

Font:

Times New Roman twelve (12) point

Spacing:

Double or single

Margins:

One (1) inch margins on all sides

Paper:

8 ½ X 11

Header:

Applicant Name

Footer:

Page number All acronyms in the proposal must be defined.

F. ADDENDUM OR SUPPLEMENT TO REQUEST FOR PROPOSAL:

In the event that it becomes necessary to revise any part of this RFP, an addendum/amendment will be published on the Colorado-VSS web site. It is incumbent upon offerors to carefully and regularly monitor VSS for any such postings. It is the offeror's responsibility to make known to the Division of Procurement its interest in any addendum/amendment if it has received the RFP in a direct mailing from the Division of Procurement and no addendum has been received by mail.

G. ORAL PRESENTATIONS/SITE VISITS:

At the conclusion of evaluation and discussion of the written proposals, the State may (at the evaluation committee’s sole discretion) request an oral presentation of the most favorable proposals. Offeror should not, however, prepare the written proposal with the assumption that an opportunity for oral presentations or revisions will be offered; rather, the most favorable proposal should be submitted as their initial written submittal.

Should the evaluation committee decide not to award solely based on initial proposals, then those proposals in the competitive range (those most responsive to the requirements and reasonably susceptible of being selected for award) will have an opportunity to make an oral presentation. The oral presentation may include a discussion for the purpose of clarification and to ensure full understanding of and responsiveness to solicitation requirements. The same criteria for evaluation will be employed and each committee member will be provided the opportunity to modify their original evaluation. Following all oral presentations, the committee will again discuss their individual evaluations.

If the evaluation committee requires such presentations, the State will schedule these sessions for the purpose of:

· Allowing the Offeror an opportunity to present its proposal to the evaluation committee;

· Allowing the Offeror an opportunity to demonstrate its background and capabilities in providing the requested services;

· Allowing the State an opportunity to obtain further clarification of proposal aspects and attempt to resolve any uncertainties;

· Resolving suspected mistakes by calling such perceived errors to Offeror’s attention without disclosing information concerning other Offerors’ proposals; and

· Allowing the State an opportunity to ask specific questions of the Offeror regarding its proposal offer.

Any presentations and/or site visits will be at the offeror's expense.

H. ACCEPTANCE OF RFP TERMS: A proposal submitted in response to this RFP shall constitute a binding offer. Acknowledgment of this condition shall be indicated by the autographic signature of the offeror or an officer of the offeror legally authorized to execute contractual obligations. It is assumed by the offeror's response that it acknowledges all terms and conditions of this invitation for an offer. An offeror shall identify clearly and thoroughly any variations between its proposal and the State's RFP. Failure to do so shall be deemed a waiver of any rights to subsequently modify the terms of performance, except as outlined or specified in the RFP.

I. PROTESTED SOLICITATIONS AND AWARDS: Any actual or prospective offeror or contractor who is aggrieved in connection with the solicitation or award of a contract may protest to Jeremy Hill, Procurement Director, Division of Procurement, Department of Human Services, 1575 Sherman Street, Denver, CO 80203. The protest shall be submitted in writing within seven working days after such aggrieved person knows, or should have known, of the facts giving rise thereto. Reference C.R.S. Title 24, Article 109.

J. CONFIDENTIAL/PROPRIETARY INFORMATION: Any restrictions of the use or inspection of material contained within the proposal shall be requested prior to the submission of the proposal itself. Written requests for confidentiality shall be submitted, by the offeror prior to the proposal submission date. The offeror must state specifically what elements of the proposal that would be considered confidential/proprietary. The Division of Procurement will make a written determination as to the apparent validity of any written request for confidentiality, the written determination will be sent to the offeror.

Requests that are granted shall use the following format:

· Confidential/proprietary information must be readily identified marked and separated/packaged from the rest of the proposal.

· Co-mingling of confidential/proprietary and other information is NOT acceptable. Neither a proposal, in its entirety, nor proposal price information will be considered confidential and proprietary.

· Any information that will be included in any resulting contract cannot be considered confidential.

After award, the offers shall be open to public inspection subject to any continued prohibition on the disclosure of confidential data, C.R.S. Title 24, Article 72, Part 2 as amended.

K. RFP RESPONSE MATERIAL OWNERSHIP: All material submitted regarding this RFP becomes the property of the State of Colorado. Proposals may be reviewed by any person after the "Notice of Intent to Make an Award" letter has been issued, subject to the terms of C.R.S. Title 24, Article 72, Part 2 as amended.

L. PROPOSAL PRICES: Estimated proposal prices are not acceptable. Best and final offers may be considered in determining the apparent successful offeror. Proposals shall be firm for a period of not less than One hundred eighty (180) calendar days from the date of award.

M. EVALUATION: The evaluation will identify the proposals that most effectively meet the requirements of this RFP. The work will be offered to the Offerors whose proposals, conforming to the RFP, will be most advantageous to the State of Colorado, price and other factors considered.

The State of Colorado will conduct a comprehensive, fair and impartial evaluation of each proposal received. First, all proposals will be submitted to the Division of Procurement for acceptance. The Division of Procurement will be responsible for ensuring that:

· The Offeror's proposal complied with the due date and time.

· The Offeror's “Colorado Request for Proposal Signature Page” meets content and other requirements.

· The Offeror included the appropriate number of proposal copies.

Evaluation Process:

The Department plans an intensive, thorough, complete and fair evaluation process. Proposals will be evaluated on both the proposed service and the cost of the service. The evaluation will be performed and an award recommendation made to the Division of Procurement by the Evaluation Committee. Evaluation Committee Members will be selected who do not have a conflict of interest in this procurement.

The Evaluation Committee will be responsible for the evaluation process that will include the following steps:

· Review proposals for any conditions that may disqualify the Offeror and to ensure that required terms and conditions have been met.

· Review proposal content, contact references and assign a preliminary score to each factor for each proposal.

· Determine whether, as part of the deliberations, any Offerors will be invited to participate in discussions with the Committee. (Offerors would be those who, based on preliminary scores, are reasonably susceptible of being selected for the award.) However, proposals may be reviewed and determinations made without discussion. Therefore, it is important that proposals be complete, and Offerors should recognize that opportunity for further explanation may not exist.

· Oral presentations, if required, for invited offerors to demonstrate their proposed service.

· Adjust points or ratings as necessary.

· Best and final offers may take place at the State’s option.

· Make final selection recommendation to the Division of Procurement.

N.

PROPOSAL SELECTION: Upon review and approval of the evaluation committee's recommendation for award, the Division of Procurement will issue a "Notice of Intent to Award" on Colorado-VSS. A notice will be sent to all offeror’s indicating the notice of intent has been posted. A contract will be completed and signed by all parties concerned on or before the date indicated in the Schedule of Activities. If this date is not met, through no fault of the State, the State, at its sole discretion, may elect to cancel the "Notice of Intent to Award" notice and make the award to the next most advantageous offeror.

O.

AWARD OF CONTRACT: The award will be made to offeror(s) whose proposal, conforming to the RFP, will be the most advantageous to the State of Colorado, price and other factors considered.

P.

PROPOSAL CONTENT ACCEPTANCE: The contents of the proposal (including persons specified to implement the project) of the successful offeror will become contractual obligations if acquisition action ensues. Failure of the successful offeror to accept these obligations in a contract, purchase document, delivery order or similar acquisition instrument may result in cancellation of the award and such offeror may be removed from future solicitations.

Q.

STANDARD CONTRACT: After award and before Contract execution the successful Offeror must be registered to do business in the State of Colorado. This registration is maintained through the Colorado Secretary of State Office. (http://www.sos.state.co.us/) If Offeror is a foreign corporation (formed under a statute or common law in a jurisdiction other than Colorado) or other foreign entity transacting business in the State of Colorado, shall warrant that it currently has obtained and shall maintain any applicable certificate of authority to transact business in the State of Colorado and has designated a registered agent in Colorado to accept service of process.

Except as modified herein, the standard State Contract Terms and Conditions and the Sample Model Contract (attached separately on VSS as Attachment B included in this RFP shall govern this procurement and are hereby incorporated by reference. Please note this Model Contract lists the State’s required legal provisions but does not include the specific scope of work and requirements for this RFP. This SOW and other specifics will be attached to the awarded offeror’s contract as an exhibit.

The Offeror is expected to review the attached Model Contract and note exceptions. Offerors agreeing to abide by the requirements of the RFP are also agreeing to abide by the terms of the Model Contract. Unless the Offeror notes exceptions in its proposal, the conditions of the Model Contract will govern. It may be possible to negotiate some of the wording in the final contract; however, there are many provisions, (such as those contained in the Special Provisions pages) which cannot be changed. Offerors are cautioned that the State believes modifications to the standard provisions, terms and conditions, and Special Provisions constitute increased risk to the State and increased costs. Therefore, the scope of requested exceptions is considered in the evaluation of proposals.

R.

RFP CANCELLATION: The State reserves the right to cancel this Request for Proposal at any time, without penalty.

S.

STATE OWNERSHIP OF CONTRACT PRODUCTS/SERVICES:

Proposals upon established opening time become the property of the State of Colorado. All products/services produced in response to the contract resulting from this RFP will be the sole property of the State of Colorado, unless otherwise noted in the RFP. The contents of the successful offeror's proposal will become contractual obligations.

The State of Colorado has the right to retain the original proposal and other RFP response materials for our files. As such, the State of Colorado may retain or dispose of all copies as is lawfully deemed appropriate. Proposal materials may be reviewed by any person after the “Notice of Intent to Make an Award” letter(s) has/have been issued, subject to the terms of Section 24-72-201 et seq., C.R.S., as amended, Public (open) Records. The State of Colorado has the right to use any or all information/material presented in reply to the RFP, subject to limitations outlined in the clause, Proprietary/Confidential Information. Offeror expressly agrees that the State may use the materials for all lawful State purposes, including the right to reproduce copies of the material submitted for purposes of evaluation, and to make the information available to the public in accordance with the provisions of the Public Records Act.

T.

INCURRING COSTS: The State of Colorado is not liable for any cost incurred by offerors prior to issuance of a legally executed contract or procurement document. No property interest, of any nature shall occur until a contract is awarded and signed by all concerned parties.

U.

PROPOSAL REJECTION: The State of Colorado reserves the right to reject any or all proposals and to waive informalities and minor irregularities in proposals received and to accept any portion of a proposal or all items proposed if deemed in the best interest of the State of Colorado.

V.

VENDOR IDENTIFICATION: The tax identification number provided must be that of the offeror responding to the RFP. The offeror must be a legal entity with the legal right to contract.

W.

NEWS RELEASES: News releases pertaining to this RFP shall NOT be made prior to execution of the contract without prior written approval by the State.

X.

CERTIFICATION OF INDEPENDENT PRICE DETERMINATION:

1.

By submission of this proposal each offeror certifies, and in the case of a joint proposal each party, thereto certifies as to its own organization, that in connection with this procurement:

(a) The prices in this proposal have been arrived at independently, without consultation, communication, or agreement, for the purpose of restricting competition, as to any matter relating to such prices with any other offeror or with any competitor;

(b) Unless otherwise required by law, the prices which have been quoted in this proposal have not been knowingly disclosed by the offeror and will not knowingly be disclosed by the offeror prior to opening, directly or indirectly to any other offeror or to any competitor; and

(c) No attempt has been made or will be made by the offeror to induce any other person or firm to submit or not to submit a proposal for the purpose of restricting competition.

2.

Each person signing the Request for Proposal Signature Page of this proposal certifies that:

(a) She/he is the person in the offeror's organization responsible within that organization for the decision as to the prices being offered herein and that she/he has not participated, and will not participate, in any action contrary to (1)(a) through (1)(c) above; or she/he is not the person in the offeror's organization responsible within that organization for the decision as to the prices being offered herein but that she/he has been authorized in writing to act as agent for the persons responsible for such decision in certifying that such persons have not participated, and will not participate, in any action contrary to (1)(a) through (1)(c) above, and as their agent does hereby so certify; and she/he has not participated, and will not participate, in any action contrary to (1)(a) through (1)(c) above.

3.

A proposal will not be considered for award where (1)(a), (1)(c), or (2) above has been deleted or modified. Where (1)(b) above has been deleted or modified, the proposal will not be considered for award unless the offeror furnishes with the proposal a signed statement which sets forth in detail the circumstances of the disclosure and the head of the agency, or her/his designee, determines that such disclosure was not made for the purpose of restricting competition.

Y.

CONFLICTS OF INTEREST: The holding of public office or employment is a public trust. A public officer or employee whose conduct departs from his fiduciary duty is liable to the people of the State. Rules of conduct for public officers and state employees:

1.

Proof beyond a reasonable doubt of commission of any act enumerated in this section is proof that the actor has breached his fiduciary duty.

2.

A public officer or a state employee shall not:

(a) Engage in a substantial financial transaction for her/his private business purposes with a person whom she/he inspects, regulates, or supervises in the course of his official duties;

(b) Assist any person for a fee or other compensation in obtaining any contract, claim, license, or other economic benefit from her/his agency;

(c) Assist any person for a contingent fee in obtaining any contract, claim, license, or other economic benefit from any state agency; or

(d) Perform an official act directly and substantially affecting its economic benefit a business or other undertaking in which she/he either has a substantial financial interest or is engaged as counsel, consultant, representative, or agent.

(e) Serve on the Board of any entity without disclosure to the entity, the Secretary of State, and his/her employer.

3.

A head of a principal department or a member of a quasi-judicial or rule-making agency may perform an official act notwithstanding paragraph (d) of subsection (2) of this section if her/his participation is necessary to the administration of a statute and if she/he complies with the voluntary disclosure procedures under C.R.S. 24-18-110.

4.

Paragraph (c) of subsection (2) of this section does not apply to a member of a board, commission, council, or committee if she/he complies with the voluntary disclosure procedures under C.R.S. 24-18-110 and if she/he is not a full-time state employee. Reference C.R.S. 24-18-108, as amended.

Z.

TAXES: The State of Colorado, as purchaser, is exempt from all federal excise taxes under Chapter 32 of the Internal Revenue Code (Registration No. 84-730123K) and from all state and local government use taxes C.R.S. 39-26-114(a).

Our Colorado State and Local Sales Tax Exemption Number is 98-02565.

Seller is hereby notified that when materials are purchased in certain political sub-divisions (for example - City of Denver), the seller may be required to pay sales tax even though the ultimate product or service is provided to the State of Colorado. This sales tax will not be reimbursed by the State.

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SECTION III

BACKGROUND AND OVERVIEW OF THE PROGRAM

The Food Distribution Programs (FDP) provides for the administration, operation, and distribution of United States Department of Agriculture (USDA) foods to eligible recipient agencies to enhance and maintain the nutrition of the respective populations served. The FDP operates the National School Lunch Program (NSLP) services in conjunction with its contracted state warehouse(s). The administrative office for Colorado’s FDP is located at 1575 Sherman, Denver, CO 80203.

Program staff is responsible for:

· The ordering of USDA food for recipient agencies

· Initiation and review of processor agreements

· Assurance of quality and timeliness of food delivered to these agencies by USDA and processors.

· Inspection of warehouses for proper storage, monthly reconciliation and auditing of an inventory.

· Oversight for USDA regulations to maintain Colorado’s compliance with rules and procedures so the state can continue to participate in national food assistance programs.

State distributing agencies may, on behalf of its eligible recipient agencies, contract with commercial food processors to convert raw bulk USDA foods into more convenient, ready-to-use end products.

ACRONYMS/DEFINITIONS

For the purposes of this RFP, the following acronyms/definitions will be used:

SCOPE OF WORK

A.

CASE LOAD - Recipient Agencies/Delivery Sites/Food Volume

Colorado has 218 school districts and approximately 22 Child and Adult Care Food Program (CACFP) and Residential Child Care Institutions (RCCI)s utilizing USDA Foods. Of these agencies, 20% participate in further processing of USDA foods.

Approximately 186,000 cases of all USDA food shipments are delivered directly to the Colorado Department of Human Services contracted state warehouse. Andrews Foodservice in Pueblo, Colorado, is the primary storage facility for USDA foods in Colorado.

Colorado agency information:

· 240 Recipient Agencies (RA)

· 227 Delivery Sites

· 13 Direct Delivery Sites

· 6,734,537 Processed Pounds for 2016-2017 CDHS FDP will divert USDA foods in truckload quantities on behalf of recipient agencies/districts. All product information and request for products will be processed through the State’s on-line, internet-based ordering system. CDHS has 47 RA’s that received processed food products directly to their respective distributors or warehouses. The remaining district products were delivered to the State contracted warehouse.

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B. HISTORICAL INFORMATION

Diverted products by raw material in pounds (State of Colorado)

TOTAL LBS

C. CONTRACTUAL AGREEMENT

Under the contract(s) awarded pursuant to this RFP, the FDP will allow awarded processors to receive and use USDA donated foods as an ingredient in the production of the finished end products as specified herein. The FDP may award multiple contracts for donated food items, if it’s beneficial to recipient agencies and all specification standards are met. The FDP is responsible for managing the contracts with the awarded processors according to Federal Regulation 7 CFR Part 250.30.

The following pricing options may be offered:

a.

Fee for Service b.

Net off Invoice c.

Modified Fee for Service d.

Cash Rebate

Contracts awarded from this RFP will include the state’s standard terms and conditions as set forth in Attachment B., Sample Contract. The initial award of this contract will be for one year, with an option to extend for an additional term. Extension of each additional term shall be offered at the sole discretion of the state. The total resulting contract term, including the initial term and all subsequent extensions, shall not exceed (5) years.

Prior to extension vendors may petition for a price increase per end product from the state. The petition must submit in writing at least 60 days before the proposed effective date of the increase. Petitions must include supporting documentation for proposed price increase.

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SECTION IV

REQUIREMENTS / STATEMENT OF WORK

This section sets forth the scope of work that will be required under the Contract. Vendors shall address all aspects of the work plan described in this section. A work plan with a timeframe and budget must be submitted as part of the proposal submitted in response to this RFP. Vendors shall provide specific assurances that all topics will be completed. Responses should correspond to the numbered topics listed below. Vendors shall restate each numbered requirement then respond to the requirement.

OBJECTIVES

This request for proposal is for further processing of USDA foods, to include: all USDA Foods and all other bonus items offered by USDA. Orders will be placed based on USDA purchases and offerings available.

A. PROJECT REQUIREMENTS

1) A USDA approved Summary End Product Data Schedule (SEPDS) must be provided for each item responded to with pricing. The SEPDS should be submitted with proposal documents.

2) Bidder must submit with the proposal, a copy of the Nutrient Facts information “label” for each product.

3) Bidder must submit with the proposal, meal contribution facts for each product bid, specifically meat contribution and bread/grain ounce equivalency.

4) Bidder must indicate the category for each product submitted.

5) Bidder must indicate if product is bulk packed (B) or individually wrapped (IW).

6) Bidder must provide product yield information identifying Standard Yield or Guaranteed Minimum Return for each product.

B. NUTRITIONAL REQUIREMENTS

The Colorado Department of Education (CDE) and Colorado’s school districts have adopted policy outlining goals for nutrition in the schools: https://www.cde.state.co.us/nutrition/nutriwellness. USDA has also issued nutrition standards for all foods sold in school as required by the Healthy Hunger Free Kids Act of 2010. Full details about regulations affecting school meals may be found at: http://www.fns.usda.gov/school-meals/healthy-hunger-free-kids-act.

C. PRICING REQUIREMENTS

Prices quoted shall include transportation and delivery charges fully prepaid by the bidder. Each recipient agency will be invoiced directly by the manufacturer for end products ordered. At no time will the State of Colorado be billed for product received by recipient agencies.

D. BUY AMERICAN CLAUSE

All USDA commodities provided must be of 100 % domestic origin. Any substitutions for those commodities made by a processor must be 100% domestic origin. Processors may combine commodities with other non-domestic ingredients to achieve a new product only if 51% or more of the final processed product consists of agricultural commodities that were grown or raised domestically.

E. SPECIAL TERMS & CONDITIONS FOR COMMODITY PROCESSING

a) Compliance

i) Awarded vendor(s) must:

(1) Comply with U.S. Department of Agriculture Regulations 7 CFR Part 250.30; and

(2) Submit and comply with the National and State Processing Agreements; and

(3) Submit monthly performance reports of all ordered end products not later than fifteen (15) days after month end; and

(4) Be an approved processor by USDA and the Colorado FDP.

(5) Use domestic product. We buy American.

b) Commodity Shipments

i) USDA food orders (raw product shall be shipped to the awarded vendor’s plant by USDA in truckload quantities). Bidder must confirm that FDP has most current warehouse codes for product diversions.

(1) Vendor shall accept USDA commodities whenever USDA commodities are available or as permitted by USDA to manage excess inventory.

(2) Vendor will not charge the State of Colorado for the receipt and storage of USDA foods.

ii) USDA raw products must be receipted in WBSCM within 48 hours of receipt.

iii) End products are to be delivered to designated locations based on agreed upon minimums.

(1) If product is not received at designated location within six weeks, a penalty will be assessed to the processor in the amount of $1,000 per day.

(2) Manufacturers, which have products that qualify for Modified Fee For Service (MFFS), Indirect Discount Option (NOI) and/or Indirect Sale Refund (Rebate) through a distributor warehouse, shall have the correct number of donated USDA food pounds input for each school district to the specified distributor by July 1, 2017

c) Support Documents

i) Summary End Product Data Schedules (most recent copy of SEPDS approved by USDA), Manufacturer’s Product Certification Statement (deli sandwiches only) and Child Nutrition Labels and Nutrition Fact Sheets.

(1) The nutritional fact sheet must list the nutritional contribution to the meal pattern which the end product will provide, portion size, along with calories, protein, fat (saturated and unsaturated, total fat, percentage of fat from calories, carbohydrates, cholesterol, and sodium).

(2) Support Documents must be completed and attached to the proposal response.

d) Processing Procedures (Grading)

i) Beef must be certified by USDA’s Agricultural Marketing Service (AMS) meat grader to ensure Option I certification – non-substitution and non-diversion with metal detection only.

ii) Chicken shall be processed in accordance with USDA’s Agricultural Marketing Service (AMS) most current full coverage regulation and/or policy memorandum for poultry grading.

iii) Chicken bone, scrap and offal credit shall be reflected in the FOB price and the basis for the credit noted on the End Product Data Schedule.

iv) Guaranteed Percentage/Cases of Finished Product or Standard Yields with a poultry substitution plan approved by the Agriculture Marketing Service (AMS) grading service will be acceptable by the State.

e) Receiving Information

i) Recipient agencies shall be responsible for ensuring product received matches the item awarded. Incorrect product or product that is damaged or otherwise not in good condition should be refused at the time of delivery. In instances of damaged case goods, entities should accept the product that is in good condition and return the portion of the shipment that is damaged.

ii) If shortages occur due to refusal of damaged products or otherwise at the fault of the vendor, recipient agencies may purchase needed items locally on an emergency purchase basis. The awarded vendor shall be responsible for the difference in cost between the contract item and the emergency purchased item.

f) Product Specific Conditions

i) Chicken: Wing meat not allowed in conversion specifications must be purchased by the processing company and that dollar amount credit shall be determined by the URNER BARRY rate at the time of delivery to the processing plant.

(1) “Lb. of DF per Case” should equal full truckload (36,00 lbs.) divided by “Finished Cases per Truck”

ii) Turkey: Turkey skin and comminuted turkey not being used in conversion of specifications must be purchased by the processing company and that dollar amount credited back to the recipient agencies as credit o account or commercial product exchange.

(1) Credit shall be determined by the market rate, at the time of delivery to the processing plant.

(2) If “substitution” is being offered, please include special delivery options as well as an explanation of how your specific program operates.

(3) Payment to member districts must be paid by the end of the contract period or immediately following final shipment, whichever is first, or a penalty will be assessed to the processor in the amount of $1,000 per day.

iii) No re-worked product or culls will be acceptable.

g) Processing Options

(1) Fee for Service Option (FFS): This option shall be structured as such: USDA purchases truck designated for Colorado, delivery of raw product is shipped to designated manufacturer; processed product(s) as approved on the SEPDS shall be delivered to the appropriate state commodity warehouse or direct delivery warehouse.

(a) Manufacturer will provide pricing for approved processed products. The following information shall be provided: brand and code number, product size and case count, servings per case, price per case, price per serving and serving size, net weight per case and the minimum production run, as well as requested nutritional information as specified on each item. Summary End Product Data Schedule shall be provided for each product.

(2) Modified Fee for Service Option (MFFS): This option shall be structured as such: USDA purchases truck designated for Colorado, delivery of raw product is shipped to designated manufacturer; processed product(s) as approved on the SEPDS shall be delivered to the recipient agency’s awarded grocery vendor which will then deliver the product to the district.

(a) Manufacturer will provide pricing for approved processed products. The following information shall be provided: brand and code number, product size and case count, servings per case, price per case, price per serving and serving size, net weight per case and the minimum production run, as well as requested nutritional information as specified on each item. Summary End Product Data Schedule shall be provided for each product.

(b) MFFS delivery charges are awarded by grocery vendor with a per case delivery charge, no added surcharges are allowable and price remains in effect for the contract period.

(3) Indirect Discount Option (NOI): Preference is given to manufacturers who can offer cost savings associated with approved USDA Full Substitution and/or Standard Yield Programs as well as distribution through the commercial food distributor for the Indirect Discount Option (NOI) for deliveries. Processor inventories or “banks” approved donated USDA commodity food pounds and then draws down from the Colorado recipient agency’s inventory based on the requested and approved end products.

i) Distributor’s invoice lists the commercial price per case with the discounted value of the donated food used per case (as per the USDA Commodity File Report issued in November), resulting in the net cost per case.

ii) Colorado recipient agencies are eligible for the discount until their inventoried or “banked” donated food pounds are depleted.

iii) Manufacturer shall state the verification system utilized to track donated food pounds and end products, such as Processor link or K12.

iv) The distributor’s invoice must list the commercial price per case with the discounted value of the donated food used per case (as per the USDA Commodity File Report issued in November), resulting in the net cost per case.

v) Colorado recipient agencies are eligible for the discount until their inventoried or “banked” donated food pounds are depleted.

(4) Indirect Refund Sale (Rebate): The manufacturer shall make arrangements to receive electronic sales data from Colorado members and Distributor at the end of each month and in return issue a rebate based on that sales data to each receiving member district as designed in final bid award within 30 days of receipt of distributor data. A summary report of all rebates/commodity usage will be made available to the FDP on a monthly basis. Members will have the option of submitting their rebate form (instead of e-rebate) and be issued a check upon verification of vendor. Vendor will provide a template rebate form)

b) The awarded vendor shall deliver the end product(s) directly to the designated distribution site. Billing statements for the product(s) shall be sent to the appropriate recipient agency and shall reflect the contracted discount price for shipments delivered. Gross pricing shall be used only if commodities are not available for credit and for non-program schools.

c) Shipping and Storage

i) Products shall be stored in sub-zero degree temperatures and will not be allowed to exceed 10 degrees F (-12.2 degrees C) during shipment to the distribution dock.

d) Sample Products

i) Sample products must be available at the annual Commodity Food Show in order to be available for purchase by recipient agencies. No additional samples will be requested as part of this proposal.

e) Awards

i) Award will be made to one or more processors per food grouping. The State reserves the right to approve all product substitutions (product/price) prior to shipment. The State reserves the right to approve necessary changes to the Summary End Product Data Schedule.

f) Issue Resolution

(1) The Colorado State Food Distribution Program shall serve as the single point of contact for any problems/issues arising from the contract.

F. CONTRACTOR RESPONSIBILITIES

The general responsibilities that will be assigned to the selected Contractor are outlined below.

1) Cooperation with FDP The Contractor shall respond promptly to requests from FDP staff for information, clarification or issues relating to USDA foods and the NSLP.

2) Program Knowledge and experience The Contractor shall be knowledgeable of all appropriate federal and state program requirements, goals and objectives, and has experience with processing USDA foods in other states.

3) Preparation of Reports for the Food Distribution Program Unit The Contractor shall provide monthly performance reports before the 15th day of the month to the FDP detailing the receipt and distribution of USDA foods. The Contractor shall also provide a quarterly report to the FDP detailing recipient agencies that are not utilizing allocated USDA foods so that inventory levels may be managed.

4) Conflict of Interest or Appearance Thereof By submission of a proposal, the Contractor warrants that performance of the work required hereunder will create neither an actual conflict of interest with other work performed by the Contractor, nor the appearance of such a conflict.

SCOPE OF WORK DURATION

This scope of work shall apply to the time period from date of award through one year. The FDP shall have the authority to renew subsequent options with the selected Contractor at the sole discretion of the State. The State reserves the authority to cancel the current Contract or subsequent options periods exercised due to unsatisfactory performance of the Contractor.

G.

COMPANY BACKGROUNDAND REFERENCES

1) Processors must provide a company profile. Information provided shall include:

2) Company ownership. If incorporated, the state in which the company is incorporated and the date of incorporation. An out-of-state processor must become duly qualified to do business in the State of Colorado as a foreign corporation before a contract can be executed.

3) Location(s) of the company offices and location of the office servicing any Colorado account(s).

4) Number of employees both locally and nationally.

5) WBSCM warehouse code for each product line.

6) Name, address, and telephone number of the…