RSI006594_Contract_rev.pdf

STATE OF OHIO

DEPARTMENT OF ADMINISTRATIVE SERVICES

GENERAL SERVICES DIVISION

OFFICE OF PROCUREMENT SERVICES

4200 SURFACE ROAD, COLUMBUS, OH 43228-1395

OPTIONAL USE CONTRACT FOR: BREAD AND BAKERY PRODUCTS

CONTRACT No.: RSI006594

CONTRACT ID: CTR006594-A1

EFFECTIVE DATES: 11/01/21 to 10/31/24 *Renewal through 10/31/25

SUPPLIER: KLOSTERMAN BAKING COMPANY

The Department of Administrative Services has accepted bids submitted in response to Invitation to Bid No. SRC0000001487 that opened on 10/22/21. 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 all State agencies, and properly registered counties, townships, municipal corporations, regional transit authorities, regional airport authorities, port authorities, school districts, conservancy districts, township park districts and park districts, pursuant to Section 125.04(B) of the Ohio Revised Code, the Cooperative Purchasing Act., State universities, State vocational schools, State community colleges or other institutions of higher education may use these contracts, as applicable. Such use, however, is based upon each entity's procurement authority.

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 10/31/25, per amendment 1.

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

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 supply bread and other bakery products to the state of Ohio agencies and political subdivisions.

1.1.3 Classification: All bread and other bakery products must comply with Commercial Item Descriptions, where applicable, and latest amendments thereof.

1.2. APPLICABLE DOCUMENTS

1.2.1 Commercial Item Descriptions

1.2.1.1 A-A-20052B – Bread, Fresh or Frozen, dated May 11, 1998, and any amendments thereafter.

1.2.1.2 A-A-20053B – Rolls, Bread, Baked, Fresh or Frozen, dated August 31, 1998, and any amendments thereafter.

1.2.1.3 A-A-20288 – Sweet Dough Rolls, Fresh or Frozen, dated December 9, 1998, and any amendments thereafter.

1.2.2 Referenced Documents

1.2.2.1 Federal Food, Drug and Cosmetic Act – 21 CFR Parts 1 to 99, http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/CFRSearch.cfm?CFRPartFrom=1&CFRPartTo=99

1.2.2.2 United States Standards for Condition of Food Containers, https://www.ecfr.gov/current/title-7/subtitle-B/chapter-I/subchapter-A/part-42

1.2.2.3 Ohio Revised Code, Section 911, dated February 1, 2001, and any amendments thereafter, http://codes.ohio.gov/orc/911

1.2.3 Food Safety Certification

1.2.3.1 Contractor must hold a current food safety certification, copy of certification is required with bid submission.

1.2.3.2. Acceptable options include:

1.2.3.2.1 SQF Level 2 http://www.sqfi.com/

1.2.3.2.2 ISO 22000 https://www.iso.org/iso-22000-food-safety-management.html

1.2.3.2.3 FSSC 22000 http://www.fssc22000.com/documents/home.xml?lang=en

1.2.3.2.4 BRC https://www.brcgs.com/training/overview/

1.3 REQUIREMENTS

1.3.1 Salient Characteristics

1.3.1.1 All product supplied is to be prepared in accordance with good manufacturing procedures.

1.3.1.2 All ingredients are to be clean, sound, and wholesome and free from evidence of rodent or insect infestation.

1.3.1.3 Product is to have an odor, color and flavor, characteristic of the product specified.

1.3.1.4 Product shall have a uniformly brown crust, characteristic of each product.

1.3.1.5 Product shall be delivered undamaged and uncrushed. Product is to be fresh. No frozen product will be accepted.

1.3.1.6 All items are to have the firm, tender and uniform characteristics of the appropriate product. All sandwich buns and Kaiser rolls shall be sliced.

1.3.1.7 There should be no evidence of excessive grease, scorching or burning.

1.3.1.8 Product shall be delivered within the appropriate times, after baking, as stated in the Commercial Item Descriptions.

http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/CFRSearch.cfm?CFRPartFrom=1&CFRPartTo=99 https://www.ecfr.gov/current/title-7/subtitle-B/chapter-I/subchapter-A/part-42 http://codes.ohio.gov/orc/911 http://www.sqfi.com/ https://www.iso.org/iso-22000-food-safety-management.html http://www.fssc22000.com/documents/home.xml?lang=en https://www.brcgs.com/training/overview/

1.3.1.9 All products offered in response to this Invitation to Bid are to be baked with vegetable oils. No animal fats are permitted.

1.3.2 Regulatory Requirements

1.3.2.1 The delivered product shall comply with all applicable Federal, State, and local mandatory requirements and regulations relating to the preparation, packaging, labeling, storage, distribution and sale within the commercial marketplace. Delivered product shall conform to all applicable provisions of the Federal Food, Drug, and Cosmetic Act and regulations.

1.3.2.2 Guaranty: By the signature affixed on page 1 of this bid, contractor guarantees that, as of the date of delivery to the state or the state's agent, the product(s) offered is (are) not adulterated or misbranded within the meaning of the Federal Food, Drug and Cosmetic Act ("the ACT"), and not an article which may not, under the provisions of section 404, 505, or 512 of the Act, be introduced into interstate commerce.

1.3.2.3 All bidders must be currently registered with the Department of Agriculture in compliance with Ohio Revised Code, Section 911.02 of the “Bakery Laws” of the state of Ohio. Failure to be registered may result in your bid being deemed not-responsive. Bidders should include a copy of their current registration with their bid submittal. This registration must remain active throughout the length of the contract. If not included with the bid submittal, a copy must be provided within five (5) calendar days after request by the Office of Procurement Services. Failure to submit a copy of the registration with the bid submittal or within the five (5) days will result in your bid being deemed not responsive.

1.3.3 Quality Assurance

All products delivered are to meet the salient characteristics of the appropriate Commercial Item Description listed. The Preferred Item/Pack column on the pricing page is representative of general institutional items. Item variations may be accepted if the item complies with the representative C.I.D. and complies with all applicable Federal, State and local regulations for the item. Each item is to meet the producer’s standards and quality assurance practices. Items are to be the same items offered for sale in the commercial market. The state of Ohio reserves the right to require proof of such conformance by the Federal Grain Inspection Service (FGIS), a division of the USDA, at the contractor’s expense.

1.3.4 Product Substitutions

Deliveries must be made, as ordered. Product substitutions may be made for items that are temporarily unavailable, after receiving prior approval by the ordering agency. There will be no product substitutions without prior approval by the ordering agency. In the event a scheduled order is not delivered in its entirety, arrangements must be made with the ordering agency to provide product, so as to not disrupt the foodservice operation. There will be no additional delivery charge for orders not properly delivered, as scheduled.

1.3.5 Packaging

1.3.5.1 The packaging of all products shall be in accordance with good commercial practice and products shall be packed in packages or containers standard to the industry.

1.3.5.2 Products offered are to be institutional packs where applicable. The Preferred Item/Pack column on the pricing page is representative of general institutional packs. Products offered should be standard institutional packs for the bidder, which is similar or equal to the Preferred Item/Pack description. Pack variations will be accepted if the product packaging is acceptable for institutional use. Packs are to be the same packs offered for sale in the commercial market.

1.3.6 Date Coding

The contractor should supply the Office of Procurement Services with a complete explanation of their date coding process with the bid submittal. Any changes made to this procedure, during the length of the contract, are to be forwarded to Procurement Services. Failure to do so may result in the contractor being found in non-compliance of the contract. If not included with the bid submittal, a copy must be provided within five (5) calendar days after request by the Office of Procurement Services. Failure to submit the date coding process with the bid submittal or within the five (5) days will result in your bid being deemed not responsive.

1.3.7 Delivery

1.3.7.1 Products shall be transported to institutions via contractor’s vehicle. No additional fee will be permitted for delivery unless it is below two hundred-fifty dollar ($250.00) minimum. Vehicle must be fully enclosed to protect product from weather.

1.3.7.2 Products shall be delivered in accordance with the delivery schedule mutually agreed to by the institution and the contractor.

1.3.7.3 Unless otherwise agreed between the institution and the contractor, deliveries shall be made Monday through Friday, during normal business hours.

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

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

Supplies will be delivered to the participating agency within seven (7) days after receipt of order. The delivery location will be noted on the purchase order issued by the participating agency.

3.3 - MINIMUM ORDER

No order shall be placed against a Contract awarded pursuant to this Bid for less than fifty ($50.00) dollars. The minimum dollar value of any order placed against a Contract awarded pursuant to this Bid for delivery F.O.B. destination, transportation charges prepaid, at any one time to one destination, shall not be less than two hundred-fifty ($250.00) dollars. Orders below threshold will be shipped prepaid and add, using most the economical method.

3.4 - PRODUCT SAMPLES

The bidder(s) may be required to submit samples of the supplies being offered. The samples will be used in the evaluation process to determine the lowest responsive and responsible bidder. If not included as part of their bid response, the bidder will be required to provide the samples within five (5) calendar days after notification. Failure to provide the samples within the stated time period will result in the bidder being deemed not responsive. After award of the contract, the samples will be used as a basis of comparison with actual product delivered under contract. Any variation between the samples and product being delivered will be considered as an event of default. Any variations between the samples and actual product being delivered that are due to manufacturer changes may be acceptable and shall require prior written approval from DAS.

https://procure.ohio.gov/pdf/Standard_t_c_090821.pdf

3.5 - FDA REGISTRATION

By submitting this Bid, Bidder is certifying, pursuant to the Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (the Bioterrorism Act), that all domestic and foreign facilities that manufacture, process, pack or hold food for human or animal consumption in the United States are registered with the Food & Drug Administration (FDA).. This registration includes owners, operators, or agents in charge of domestic or foreign facilities that manufacture/process, pack, or hold food for human or animal consumption in the United States. All domestic facilities, whether or not food enters interstate commerce, are required to register. Facilities may complete their registration with the FDA online at:

http://www.fda.gov/food/guidanceregulation/foodfacilityregistration/default.htm

The bidder certifies that they or their supplier complies with this requirement.

3.6 - COOPERATIVE PURCHASING CONTRACT

This Contract may be utilized by Cooperative Purchasing Members. “Cooperative Purchasing Members” or “Co-op Members” are entities that qualify for participation in the State’s cooperative purchasing program under Section 125.04 of the Ohio Revised Code (“ORC”) and that have completed the steps necessary to participate in that program. They may include Ohio political subdivisions, such as counties, townships, municipal corporations, school districts, conservancy districts, township park districts, park districts created under Chapter 1545 of the ORC, regional transit authorities, regional airport authorities, regional water and sewer districts, and port authorities. They also may include any Ohio county board of elections, state institutions of higher education, private fire companies, private, nonprofit emergency medical service organizations, and chartered nonpublic schools.

If a purchase is made from this Contract by an entity that is not properly registered with the State’s Cooperative Purchasing Program, it may be a violation of law, may be contrary to the entity’s competitive bidding requirements, and will be a breach of this Contract by the Contractor. If a Cooperative Purchasing Member relies upon this Contract to issue a purchase order or other ordering document, the Cooperative Purchasing Member “steps into the shoes” of the State under this Contract. The Cooperative Purchasing Member’s order and this Contract are between the Contractor and the Cooperative Purchasing Member. The Contractor must look solely to the Cooperative Purchasing Member for performance, including payment. The Contractor agrees to hold the state of Ohio harmless with regard to Cooperative Purchasing Member’s orders and Cooperative Purchasing Member’s performance. DAS may cancel this Contract and may seek remedies if the Contractor fails to honor its obligations under an order from a Cooperative Purchasing Member.

3.7 - CONTRACTOR QUARTERLY SALES REPORT

The Contractor must report the quarterly dollar value (in U.S. dollars and rounded to the nearest whole dollar) of the sales to Cooperative Purchasing Members under this Contract by calendar quarter (e.g. January-March, April-June, July-September and October-December). The dollar value of the sale is the price paid by the Contract user for the products and/or services listed on the purchase order or other encumbering document, as recorded by the Contractor.

To submit this quarterly sales report, the Contractor is responsible for obtaining access to Ohio|Buys and must report the quarterly dollar value of sales to Cooperative Purchasing Members to the Department of Administrative Services (DAS) via the Internet using Ohio|Buys at the following web address supplier-emarketplace.ohio.gov . If no sales occur, the Contractor must report zero. The report must be submitted no later than thirty (30) days following the completion of the reporting period.

The Contractor shall also submit a close-out report within one hundred and twenty (120) days after the expiration of this Contract. The Contract expires upon the physical completion of the last outstanding task or delivery order of the Contract. The close-out report must cover all sales not shown in the final quarterly report and reconcile all errors and credits. If the Contractor reported all contract sales and reconciled all errors and credits on the final quarterly report, then the Contractor should show zero “0” sales in the close-out report.

If the Contractor fails to submit sales reports, falsifies reports or fails to submit sales reports in a timely manner, DAS may terminate this Contract.

http://www.fda.gov/food/guidanceregulation/foodfacilityregistration/default.htm

3.8 - CONTRACTOR REVENUE SHARE

The Contractor must pay the Department of Administrative Services (DAS) a revenue share of the sales transacted under this Contract. The Contractor must remit the revenue share in U.S. dollars within thirty (30) days after the end of the quarterly sales reporting period. The revenue share equals 0.75% of the total quarterly sales reported. The revenue share is included in the contracted price(s) and reflected in the total amount charged to ordering agencies which includes both state agencies and Cooperative Purchasing Members using this Contract.

The Contractor must remit any monies due as the result of the close-out report at the time the close-out report is submitted to DAS. The Contractor may pay the revenue share amount due by check or, online with a credit card by visiting:

epay.das.ohio.gov/Payment.

For payments made by credit card, the Contractor must provide the Quarterly Sales Report and Revenue Share Remittance forms to csc@ohio.gov.

For payments made by check, the Contractor must make the check payable to: Treasurer, State of Ohio and forward the check to the following address:

Department of Administrative Services

L-3686

Columbus, OH 43260-3686

To ensure the payment is credited properly, the Contractor must identify the check as a “Revenue Share” and include the Quarterly Sales Report and Revenue Share Remittance form.

If the full amount of the revenue share is not paid within thirty (30) calendar days after the end of the applicable reporting period, the non-payment constitutes a debt to the State. The State may either initiate withholding or setting off payments or employ the remedies available under Ohio law for the non-payment of the revenue share.

If the Contractor fails to pay the revenue share in a timely manner, DAS may terminate this Contract.

3.9 - FIXED PRICE WITH ECONOMIC ADJUSTMENT

The contract prices(s) will remain firm for the first twelve (12) months duration of the contract. Thereafter, the Contractor may submit a request to increase their price(s) to be effective sixty (60) calendar days after acceptance by DAS. No price adjustment will be permitted prior to the effective date of the increase received by the Contractor from its suppliers, or on purchase orders that are already being processed, or on purchase orders that have been filled and are awaiting shipment. If the Contractor receives orders requiring quarterly delivery, the increase will apply to all deliveries made after the effective date of the price increase.

The price increase must be supported by a general price increase in the cost, due to increases in the cost of raw materials, labor, freight, Workers' Compensation and/or Unemployment Insurance, etc. Detailed documentation, to include a comparison list of the contract items and proposed price increases, must be submitted to support the requested increase. Supportive documentation should include, but is not limited to: copies of the old and the current price lists or similar documents which indicate the original base cost of the product to the Contractor and the corresponding increase, and/or copies of correspondence sent by the Contractor's supplier on the supplier's letterhead, which contain the above price information and explains the source of the increase in such areas as raw materials, freight, fuel or labor, etc.

Should there be a decrease in the cost of the finished product due to a general decline in the market or some other factor, the Contractor is responsible to notify DAS immediately. The price decrease adjustment will be incorporated into the contract and will be effective on all purchase orders issued after the effective date of the decrease. If the price decrease is a temporary decrease, such should be noted on the invoice. In the event that the temporary decrease is revoked, the contract pricing will be returned to the pricing in effect prior to the temporary decrease. For quarterly deliveries, any decrease will be applied to deliveries made after the effective date of the decrease. Failure to comply with this provision will be considered as a default and will be subject to the “Suspension/Termination” and the “Contract Remedies” sections of the “Standard Contract Terms and Conditions”.

4 - INVITATION TO BID INSTRUCTIONS

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

5 - SPECIAL INSTRUCTIONS TO BIDDERS

5.1 - 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 price of each district. To determine the low lot total price, the state will multiply the price per ounce by the estimated usage in ounces for each item. Evaluation will be based upon the net delivered cost, per ounce. Although there will be separate awards made for each district, bidders are eligible to receive multiple awards providing they are the lowest responsive and responsible bidder meeting all bid specifications and requirements listed within the district. Failure to bid all items within a district or may result in the bidder being deemed as not responsive.

5.2 - CONTRACT AWARD

The contract will be awarded to the lowest responsive and responsible bidder by bid district. Failure to bid all items may result in the bidder being deemed not responsive.

6 – SUMMARY OF AMENDMENTS

Amendment Number Effective Date Description

1 11/01/24

This amendment is issued to remove Districts 3, 4, 11, and 12 from the Contract and to notify that as a result of mutual agreement between the State of Ohio and the Contractor, the remaining districts are renewed for an additional 12 months, effective 11/01/24 through 10/31/25. Additionally, this amendment is issued to move Attachment One (Bid Districts) to Section 7 and to add Section 6 – Summary of Amendments.

https://procure.ohio.gov/pdf/OhioBuys_ITB_Instructions_to_Bidders_030921.pdf

7 - ATTACHMENT ONE (BID DISTRICTS)