ITB006818_Contract_rev.pdf

STATE OF OHIO

DEPARTMENT OF ADMINISTRATIVE SERVICES

GENERAL SERVICES DIVISION

OFFICE OF PROCUREMENT SERVICES

4200 SURFACE ROAD, COLUMBUS, OH 43228-1395

MANDATORY USE CONTRACT FOR: DAIRY PRODUCTS

CONTRACT No.: ITB006818

CONTRACT ID: CTR006818-A2

EFFECTIVE DATES: 3/1/2022 to 2/28/2025 *Renewal through 2/28/2026

SUPPLIER: NEW DAIRY OHIO LLC dba BORDEN DAIRY

The Department of Administrative Services has accepted bids submitted in response to Invitation to Bid No. SRC0000001738 that opened on 02/04/22. The evaluation of the bid response(s) has been completed. The bidder(s) listed herein have been determined to be the lowest responsive and responsible bidder(s) and have been awarded a contract for the items(s) listed. The respective bid response, including the Instructions to Bidders and Standard Terms and Conditions, special contract terms & conditions, any bid addenda, specifications, pricing schedules and any attachments incorporated by reference and accepted by DAS become a part of this Requirements Contract.

This Requirements Contract is effective beginning and ending on the dates noted above unless, prior to the expiration date, the Contract is renewed, terminated or cancelled in accordance with the Contract Terms and Conditions.

CONTRACT RENEWAL. This Contract may be renewed after the ending date of the Contract solely at the discretion of the Contracting Agency for a period of one month. Any further renewals will be by mutual agreement between the Contractor and the Contracting Agency for any number of times and for any period of time. The cumulative time of all mutual renewals may not exceed 36 months unless the Contracting Agency determines that additional renewal is necessary.

This Requirements Contract is available to the Ohio Department of Developmental Disabilities, Ohio Department of Youth Services, Ohio Department of Veteran Services, as applicable.

Agencies are eligible to make purchases of the listed supplies and/or services in any amount and at any time as determined by the agency. The State makes no representation or guarantee that agencies will purchase the volume of supplies and/or services as advertised in the Invitation to Bid.

This Requirements Contract and any Amendments thereto are available from the Ohio|Buys public portal at the following address:

https://supplier-emarketplace.ohio.gov/page.aspx/en/usr/login?ReturnUrl=%2fpage.aspx%2fen%2fbuy%2fhomepage

Signed: _____________________________________________________________________

Kathleen C. Madden, Director Date

*Indicates renewal through 2/28/26, per amendment 2.

1 - SPECIFICATIONS AND REQUIREMENTS

1.1 SCOPE AND CLASSIFICATION

1.1.2 Scope: The purpose of this bid is to obtain a contractor(s) to furnish and deliver milk and other specified dairy products to State of Ohio agency locations.

1.1.3 Classification:

1.1.3.1 Milk

1.1.3.1.1 Unflavored:

o Whole, 3.25% o Reduced Fat, 2% o Low Fat, 1% o Fat Free, Skim

1.1.3.1.2 Flavored:

o Chocolate, Low Fat, 1% o Strawberry, Low Fat, 1%

1.1.3.2 Lactose Free Milk, Non-Fat

1.1.3.3 Buttermilk

1.1.3.4 Egg Nog

1.1.3.5 Half and Half

1.1.3.6 Non-Dairy Creamer

1.1.3.7 Cottage Cheese, Creamed:

1.1.3.7.1 Regular, 4%

1.1.3.7.2 Reduced Fat, 2%

1.1.3.7.3 Low Fat, 1%

1.1.3.8 Sour Cream

1.1.3.8.1 Regular

1.1.3.8.2 Low Fat

1.1.3.8.3 Fat Free

1.1.3.9 Yogurt, Flavored

1.1.3.9.1 Light

o Vanilla o Strawberry o Blueberry o Cherry o Peach

1.1.3.9.2 Low Fat

1.1.3.9.3 Low Fat, Custard Style

1.1.3.9.4 Greek

o Vanilla o Strawberry o Blueberry

1.1.3.9.5 Frozen

o Vanilla o Strawberry o Blueberry

1.1.3.10 Ice Cream

1.1.3.10.1 Strawberry

1.1.3.10.2 Chocolate

1.1.3.10.3 Vanilla

1.2 APPLICABLE DOCUMENTS

1.2.1 Ohio Department of Agriculture, Ohio Administrative Code – Chapters 901 and 917, as applicable

1.2.2 Ohio Revised Code, Title IX, Chapter 917 – Dairy Products and all revisions thereto.

1.2.3 Ohio Revised Code, Title XXXVII, Chapters 3707, 3717, all applicable sections, and any additional sections of the Ohio Revised and/or Administrative Codes as defined in either paragraph 1.2.1 or 1.2.2 above.

1.2.4 Code of Federal Regulations, Title 21, Part 131, Yogurt (21CFR131)

1.2.5 Code of Federal Regulations, Title 21, Part 133, Cottage Cheese (21CFR133)

1.2.6 Any applicable rules and regulations pertaining to the products listed herein and established by any federal, state or local governmental agency concerning the processing and labeling of Grade A milk and milk products.

1.3 GENERAL REQUIREMENTS

1.3.1 Products

1.3.1.1 Milk and Milk Products

1.3.1.1.1 All milk and milk products offered in this bid shall be processed and packaged in accordance with laws and regulations as set forth by the Ohio Department of Agriculture, the Ohio Department of Health or that of another state/commonwealth in which the dairy is located, and/or any regulations set forth by the USDA, FDA, or agencies thereof.

1.3.1.1.2 Grade A milk and milk products shall be pasteurized and/or ultra-pasteurized as defined in Ohio Department of Agriculture Regulations.

1.3.1.1.3 Where applicable, milk and milk products shall be homogenized.

1.3.1.1.4 Milk and milk products shall conform to all regulations regarding optional ingredients.

1.3.1.1.5 Homogenized milk, flavored and unflavored, shall contain not less than 3.25% butterfat.

1.3.1.1.6 Reduced fat and low-fat homogenized milk, flavored and unflavored, shall contain not less than the specified amount of butterfat as listed in item grid.

1.3.1.1.7 Yogurt shall be manufactured in accordance with Grade A cultured milk products.

1.3.1.1.8 Milk shall have a minimum of nine (9) calendar days after the date of delivery until reaching date stamped on carton.

1.3.1.1.9 Contractor(s) will be required to furnish dating code information upon request and shall immediately advise the Office of Procurement Services should any changes be made during the life of any ensuing contract.

1.3.2 Packaging and Labeling

1.3.2.1 All items must be delivered in clean, sealed containers clearly marked as to their contents and free from damage or defect.

1.3.2.2 All milk and milk products shall be properly labeled and identified in accordance with rules and regulations as established by the Ohio Department of Agriculture and the Ohio Department of Health regarding labeling or those of another state/commonwealth in which the dairy is located.

1.3.3 Delivery

1.3.3.1 As indicated in section 1.3.4 of this bid, Contractor Responsibilities, the Contractor shall contact the facility(ies) to establish a mutually agreeable delivery schedule.

1.3.3.2 Products shall be delivered in accordance with the delivery schedule mutually agreed to by the facility and the Contractor.

1.3.3.3 Unless otherwise agreed between the facility and the Contractor, deliveries shall be made Monday through Friday.

1.3.3.4 In the event that a holiday disrupts the normal delivery day scheduled, alternate delivery arrangements shall be made which are mutually acceptable to the agency and the contractor.

1.3.3.5 As indicated in section 3.2 of this bid, Delivery, all products, with the exception of milk, shall be delivered within seven (7) calendar days ARO. Milk shall be delivered within three (3) calendar days ARO.

1.3.4 Contractor Responsibilities

1.3.4.1 Delivery Schedule: Upon receipt of contract, contractor shall call each facility for which they receive award and establish a mutually agreeable delivery schedule. Listed below is contact information.

LOCATION CONTACT PHONE EMAIL

Mount Vernon Developmental Center Julia Deakins 740-393-6200 Julia.deakins@dodd.ohio.gov

Circleville Juvenile Correctional Facility Bryan Dye 740-571-8294 Bryan.dye@dys.ohio.gov

1.4 CONTRACTOR QUALIFICATIONS

1.4.1 Dairies offering products shall be in compliance with all state, city and local Department of Health rules and regulations regarding sanitation. Only those Bidders who are properly licensed and certified with the State of Ohio, Department of Health or other applicable state health department will be considered for an award.

1.4.2 Each Bidder shall certify that the facility processing the dairy products shall be properly approved and licensed by the Ohio Department of Health, and in accordance with the Ohio Revised Code, Section

917.09 and all revisions and amendments thereto. If the dairy is located out of State, Bidders shall be in compliance with all applicable State laws and regulations of the State in which the dairy is located. The certification shall be on company letterhead signed by a duly authorized representative of the company.

Attached to this letter of certification shall be a copy of the current milk processor license issued by the state/commonwealth in which the dairy is located. The state of Ohio reserves the right to reject any or all bids submitted by dairies that do not possess a valid license. This documentation should be submitted with the bid response.

mailto:Julia.deakins@dodd.ohio.gov mailto:Bryan.dye@dys.ohio.gov

2 - STANDARD TERMS AND CONDITIONS

State of Ohio Standard Terms and Conditions (revised 9/8/21) will apply to this Contract.

3 - SPECIAL CONTRACT TERMS AND CONDITIONS

3.1 - AMENDMENT TO CONTRACT TERMS AND CONDITIONS

The following Amendments to the Contract Terms and Conditions do hereby become a part hereof. In the event that an amendment conflicts with the Contract Terms and Conditions, the Amendment will prevail.

3.2 - DELIVERY

The Contractor shall contact the facility(ies) to establish a mutually agreeable delivery schedule. All products, with the exception of milk, will be delivered to the participating agency within 7 calendar days ARO. Milk shall be delivered within three (3) calendar days ARO. The delivery location will be noted on the purchase order issued by the participating agency.

3.3 – MONTHLY PRICE ADJUSTMENT

Contractor(s) shall review contract milk prices on a monthly basis, based on the United States Department of Agriculture (USDA) Announcement of Advanced Prices and Pricing Factors Mideast Marketing Area, Federal Order No. 33 (http://fmmaclev.com/index.htm). Contract pricing shall be adjusted on a monthly basis by DAS, using the Contractor’s price change formulas, becoming effective on the 15th day of the following month. If the Bidder conditions the bid response by indicating that prices will not be changed monthly unless milk prices have changed by a certain amount, the bid response may be deemed not responsive.

The Bidder shall submit to the Office of Procurement Services, with their bid response, a copy of the formulas to be used to determine price adjustments for dairy products during the period of any term contract issued pursuant to this bid. The Bidder shall provide a price change formula for each variety and container size of milk product that the Bidder submits pricing for. The formulas shall not include any estimated figures. No change in the price adjustment formulas shall be permitted during the contract period.

Price adjustment based on factors other than changes shown on the USDA Announcement of Advanced Prices and Pricing Factors and/or rate changes by producer marketing organizations shall be permitted at the sole discretion of the Administrator of the Office of Procurement Services and requests for same shall be accompanied by supporting documentation deemed sufficient by the Office of Procurement Services.

DAS will calculate all monthly price adjustments for months subsequent to January, and shall become effective at the contract inception date, using the Contractor(s) price change formulas and the corresponding month’s United States Department of Agriculture (USDA) Announcement of Advanced Prices and Pricing Factors Mideast Marketing Area, Federal Order No. 33.

Although computation of monthly price adjustments may be accomplished by use of more than three digits after the decimal point, the figure showing the monthly adjustment amount for each product and the contract unit price for all products shall have no more than three digits after the decimal point. Digit(s) beyond 3, after the decimal point, shall be dropped by the Office of Procurement Services.

4 - INVITATION TO BID INSTRUCTIONS

Instructions, Terms and Conditions for Bidding that apply to the solicitation.

5 - SPECIAL INSTRUCTIONS TO BIDDERS

5.1 - CONTRACT AWARD

The contract will be awarded to the lowest responsive and responsible bidder by location.

https://procure.ohio.gov/pdf/Standard_t_c_090821.pdf http://fmmaclev.com/index.htm https://procure.ohio.gov/pdf/OhioBuys_ITB_Instructions_to_Bidders_030921.pdf

5.2 - EVALUATION

Bids will be evaluated in accordance with Article I-15 of the “Instructions to Bidders”. In addition, the state will determine the low lot total for each location by using the method described below: The Bidder shall submit pricing in the OhioBuys item grid for milk products for the month of January 2022, based on January 2022 USDA Announcement of Advanced Prices and Pricing Factors report. Bidders shall also attach to the OhioBuys Questionnaire the formula to be used to calculate the following month’s price for each milk item. Attachment One contains theoretical USDA Announcement of Advanced Prices and Pricing Factors Mideast Marketing Area, Federal Order No. 33, which will be used to calculate five (5) additional months of pricing for the evaluation, February 2022 through June 2022. The State will divide the estimated annual usage by twelve (12), to arrive at an estimated monthly usage. For months February 2022 through June 2022, the estimated monthly usage will be multiplied by the monthly price, as calculated by DAS using the submitted formula, to determine the estimated cost per item. February 2021 through June 2021 USDA Announcement of Advanced Prices and Pricing Factors historical data will be used for evaluation purposes to calculate February 2022 through June 2022 prices. The Bidder shall submit fixed unit pricing for non-milk items.

The State will multiply the estimated annual usage by the fixed unit price, to determine estimated annual cost per item. The State will add the total of all items per location together to arrive at a low lot total for each location. Failure to bid all items for a location may result in the Bidder being deemed as not responsive for that location. Any item shown with an unknown quantity will be evaluated using the quantity of twelve (12) for the estimated annual usage.

5.3 - DOCUMENTATION

The following should accompany the bid response:

5.3.1. Certification Letter, as specified in section 1.4 of this bid.

5.3.2. Copy of current valid license issued by the Ohio Department of Health, as specified in section 1.4 of this bid.

5.3.3. Bidder’s Price Change Formula, as specified in section 3.4 of this bid.

If the documentation described in 5.3.1 and 5.3.2 above does not accompany the bid response, the Bidder will be required to provide the specified documents within five (5) calendar days after notification, to the Office of Procurement Services. The documentation described in 5.3.3 must accompany the bid response. Failure to provide the literature within the stated time period may result in the Bidder being deemed as not responsive.

5.4 - DESCRIPTIVE LITERATURE

The Bidder may be required to submit descriptive literature of the supplies or services being offered. If requested, the literature will be used in the evaluation process to determine the lowest responsive and responsible bidder. If not provided as part of the bid response, the Bidder must provide said literature within five (5) calendar days after request/notification by the Office of Procurement Services to do so. Failure of the bidder to furnish descriptive literature either as part of their bid response or within the time specified herein will deem the bidder not responsive.

6 – SUMMARY OF AMENDMENTS

Amendment Number

Effective Date Description

2 03/01/25

This amendment is issued to notify that as a result of mutual agreement between the State of Ohio and the Contractor, this contract is renewed for an additional 12 months, effective 03/01/25 through 02/28/26. All other prices, terms and conditions remain unchanged.

1 09/10/24 This amendment is issued to update the link to current pricing. Additionally, this amendment is issued to move Attachment One to Section 7 and to add Section 6 - Summary of Amendments.

7 – ATTACHMENT ONE

2021 United States Department of Agriculture (USDA) Announcement of Advanced Prices and Pricing Factors Mideast Marketing Area, Federal Order No. 33

2022 United States Department of Agriculture (USDA) Announcement of Advanced Prices and Pricing Factors Mideast Marketing Area, Federal Order No. 33 http://www.fmmaclev.com/Releases/AdvancePrice/Adv2021.pdf http://www.fmmaclev.com/Releases/AdvancePrice/Adv2021.pdf http://www.fmmaclev.com/Releases/AdvancePrice/Adv2022.pdf http://www.fmmaclev.com/Releases/AdvancePrice/Adv2022.pdf