Cheese Slices, Bulk Cheese Processing

The State of Wisconsin, through the Department of Administration and on behalf of the Department of Public Instruction (DPI), is seeking bids for processing United States Department of Agriculture (USDA) Bulk Cheese, Natural American FDB Barrel (Material ID Code #110242) into reduced-fat cheese slices for distribution to Wisconsin schools participating in the National School Lunch Program and Summer Food Service Program. The primary objective is to procure the best product passing student taste tests at the lowest cost per serving, with distribution to both public and private schools across the state. Bidder qualification will be determined through multi-step evaluation, including nutritional compliance review, product taste testing requiring a 60 percent student pass rate, and lowest price per serving. Key requirements include having a USDA-approved National Processing Agreement, being in the USDA Foods processing business for five years, and submitting comprehensive nutrient analysis data. Bid questions were due by August 17, 2017, with sealed bids required by September 6, 2017, at 2:00 PM CT at the Department of Administration in Madison. The initial contract term is one year, from July 1, 2018, to June 30, 2019, with options to renew for two additional one-year periods.

The solicitation offers optional five percent price preferences to certified Minority Business Enterprises and Disabled Veteran-Owned Businesses. Bidders must provide four or more references from installations with similar requirements and demonstrate experience in processing and delivering cheese slice products to institutional settings. The state estimates processing a minimum of two truckloads of bulk cheese (40,800 pounds each), though exact quantities are not guaranteed. Pricing shall be submitted as total processing cost per case, structured on an FOB Destination, Prepaid & Allow basis to two state warehouses in Madison and Eau Claire. The contractor will not be compensated for the value of USDA Food provided; payment covers only processing costs including ingredients, labor, packaging, overhead, and delivery. No fuel surcharges are permitted, and the contractor must maintain complete records for three years and submit monthly performance reports documenting USDA Foods inventory, quantities received and delivered, and end product units processed. Payment terms are thirty days from invoice receipt, with invoices submitted after product delivery and acceptance.