Beverage Products with Equipment and Maintenance

The State of Nebraska, through the Department of Administrative Services (DAS), Materiel Division, State Purchasing Bureau, issued Invitation to Bid (ITB) Number 6793 OF REBID for a comprehensive Beverage Products with Equipment and Maintenance contract. The procurement seeks qualified contractors to provide a wide range of beverage products, including coffee, tea, juice, and related drink mixes for multiple state agencies, specifically the Department of Correctional Services (DCS), Department of Health and Human Services (DHHS), and Nebraska Department of Veterans' Affairs (NDVA). The solicitation encompasses not only the beverage products but also requires the provision and maintenance of related equipment such as coffee makers, dispensers, and nitrogen generators across various state facilities. Bidders were required to submit detailed pricing information, including total price per case, price per ounce, and price per 8-ounce serving, with specific dilution ratios and yield factors for each product. The bid opening date was July 31, 2023, at 2:00 PM Central Time, with an initial contract term of two years and the option to renew for two additional two-year periods. Evaluation criteria focused on complete pricing information, product specifications, and the ability to meet the diverse beverage needs across state facilities.

The ITB did not specify any explicit set-aside designations or restrictions on respondent organizations. The solicitation was open to all qualified vendors, with no mention of preferences for disadvantaged businesses or small enterprises. The intent to award letter revealed that multiple vendors were selected: US Foods, Inc. was awarded contracts for coffee, drink mix, and alternative products for DCS, DHHS, and NDVA facilities; Cash-Wa Distributing was awarded contracts for juice products for DCS and for all products at NDVA Central and Norfolk facilities; and Farmer Brothers Coffee was awarded the contract for tea products for DCS. The state reserved the right to contract for similar goods from other sources, indicating the contract was not exclusive. While specific budget ranges were not disclosed, the solicitation included estimated usage quantities across facilities, with some product categories ranging from 50 to 650 cases annually. The contract appears to utilize a cost-plus fixed mark-up model, with pricing based on manufacturer agreements and real-time pricing through a distribution platform.