RFP 00002753 - Exhibit A requirements to Participate in USDA Food Program.pdf

Exhibit A Addendum to the Vended Meal Agreement For Participation in USDA Foods Program

This is an addendum to the “Vended Meals Agreement” for the purpose of participation in the USDA Foods Program. By signing this addendum to the “Vended Meals Agreement for Participation in the USDA Foods Program,” SPONSOR and Vendor, as defined in the Vended Meals Agreement agree to the following:

USDA Foods

1. Any USDA Foods received (when the foods arrive at the Sponsor’s kitchen, Sponsor’s storage facility, or Vendor storage facility in either raw form or in processed end products) by the Sponsor and made available to the Vendor must accrue solely to the benefit of USDA Child Nutrition programs if applicable, and shall be fully utilized therein. The Vendor shall have records available to substantiate that the full value of all USDA Foods is used solely for the benefit of the Sponsor.

2. The Sponsor shall retain title to all USDA Foods.

3. USDA Foods allocated to the Sponsor will be delivered to and utilized by the Vendor equitably for lunches served to students at the Sponsor.

4. Vendor Responsibility—the Vendor will conduct all activities relating to USDA Foods for which it is responsible in accordance with 7 CFR Parts 210, 220, 225, 226, and 250 as applicable. This will include but is not limited by the following;

a. The Vendor must credit the Sponsor for the value of all USDA Foods received for use in the Sponsor’s meal service in the school year or fiscal year (including both entitlement and bonus foods), and including the value of USDA Foods contained in processed end products, in accordance with the contingencies in 7 CFR 250.51(a);

b. The Vendor must credit the Sponsor for all discounts or rebates for USDA Foods purchases made on its behalf. All refunds received from processors must be retained by the nonprofit Sponsor account.

c. The Vendor shall provide the method and frequency by which crediting will occur, and the means of documentation to be utilized to verify that the value of all USDA Foods has been credited;

d. The Vendor shall use the USDA Foods values as posted on ODE’s USDA Foods website including the value of bonus USDA Foods;

e. The Vendor shall be responsible for activities related to USDA Foods in accordance with 7 CFR 250.50(d), and must assure that such activities are performed in accordance with the applicable requirements in 7 CFR part 250;

f. The Vendor will use all USDA Foods ground beef and ground pork products, and all processed end products, without substitution, in the Sponsor’s food service;

g. The Vendor will use all other USDA Foods, or will use commercially purchased foods of the same generic identity, of U.S. origin, and of equal or better quality than the USDA Foods, in the Sponsor’s food service;

h. The Vendor will not itself enter into the processing agreement with the processor required in subpart C of 7 CFR part 250;

i. The Vendor will comply with the storage and inventory requirements for USDA Foods;

j. The Vendor will ensure that its system of inventory management will not result in the Sponsor being charged for USDA Foods;

k. The Vendor will maintain records to document its compliance with requirements relating to USDA Foods, in accordance with 7 CFR 250.54(b);

l. The Vendor shall accept liability for any negligence on its part that results in any loss of, improper use of, or damage to USDA Foods;

m. The Vendor shall accept and use USDA Foods in as large quantities as may be efficiently utilized in the Sponsor’s nonprofit food service, subject to approval of the Sponsor. The Sponsor shall consult with the Vendor in the selection of USDA Foods; however, the final determination as to the acceptance of USDA Foods must be made by the Sponsor;

n. The Vendor shall account for all USDA Foods separately from purchased foods. The Vendor is required to maintain accurate and complete records with respect to the receipt, use/disposition, storage, and inventory of USDA Foods. Failure by the Vendor to maintain the required records under this agreement shall be considered prima facie evidence of improper distribution or loss of USDA Foods.

o. Vendor shall order only those USDA Foods that can be incorporated into its meals.

5. USDA Foods Handling Charges

a. The SFA’s monthly USDA Foods handling charges [including storage, delivery (if applicable), and administration and processing fees (if applicable)] will be deducted by ODE from the Sponsor’s monthly Federal reimbursement.

b. The Vendor is responsible for USDA Foods handling charges and must reimburse the Sponsor monthly for USDA Foods handling charges.

6. Year–End Reconciliation

a. A year-end reconciliation shall be conducted by the Sponsor to ensure and verify correct and proper credit has been received for the full value of all USDA Foods received by the Vendor during the fiscal year. The SFA reserves the right to conduct USDA Foods credit audits throughout the year to ensure compliance with federal regulations 7 CFR 210 and 7 CFR 250.

b. If Sponsor is participating in direct diversion processing or cheese processing, based on actual bulk USDA Foods received, it may be necessary for the Vendor to make compensation adjustments to the Sponsor at the end of the school year. The Sponsor is responsible for assuring adjustments are made.

7. Procurement of USDA Foods—the procurement of processed end products on behalf of the Sponsor, as applicable, will ensure compliance with the requirements in subpart C of 7 CFR part 250 and with the provisions of distributing or Sponsor processing agreements, and will ensure crediting of the Sponsor for the value of USDA Foods contained in such end products at the processing agreement value.

8. Access to Records-the distributing agency, sub-distributing agency, or Sponsor, the

Comptroller General, the Department of Agriculture, or their duly authorized representatives, may perform onsite reviews of the Vendors food service operation, including the review of records, to ensure compliance with the requirements for the management and use of USDA

Foods.

9. Renewal of Agreement-extensions or renewals of the agreement, if applicable, are contingent upon the fulfillment of all agreement provisions relating to USDA Foods.

10. Termination of Vended Meals Agreement-upon termination of this Vended Meals Agreement, Sponsor must conduct a contract-end reconciliation to ensure and verify correct and proper credit has been received for the actual value of all USDA Foods received by the Vendor. The value of

USDA Foods shall be based on the USDA Foods values as posted on ODE's USDA Foods website. If SFA has received the actual value of all USDA Foods received by the Vendor, no additional compensation is required from the Vendor.

If Sponsor has not received the actual value of all USDA Foods received by the Vendor at contract termination date, the Vendor must provide compensation to Sponsor. Compensation must be either financial or return of unused USDA Foods, as determined by Sponsor. If the Sponsor terminates the Agreement without cause, or if the Vendor terminates the Agreement with cause, the Sponsor bears the cost of transferring/removal of all remaining USDA Foods from the Vendor. If the Sponsor terminates the Agreement with cause, or if the Vendor terminates the Agreement without cause, the Vendor bears the cost of transferring/removal of all remaining USDA Foods.

CERTIFICATION SIGNATURES

I CERTIFY by signing and dating this Addendum, Sponsor and Vendor agree to the terms and conditions as described herein.

Name of Vendor's Authorized Representative Title

Signature of Vendor's Authorized Date Signed Mo./Day/Yr.

Representative

Name of Sponsor's Authorized Representative Title

Signature of Sponsor's Authorized Date Signed Mo./Day/Yr Representative