Soft Drinks

The Commonwealth of Kentucky Finance and Administration Cabinet issued a Request for Bid for a master agreement to supply soft drinks to all state agencies and participating political subdivisions across Kentucky. This solicitation, posted on February 23, 2021 with a final deadline of March 31, 2021 at 1:30 PM EST, seeks a single vendor to provide soft drink products and related services through four operational models: product-only sales, products with dispensing equipment, full-service vending commission arrangements, and promotional programs with vending equipment. The procurement encompasses an estimated annual contract value of approximately $200,000 and includes deliveries to numerous participating locations including state parks, rest areas along interstate corridors, state government office buildings, and specialized facilities throughout Kentucky's geographically distributed infrastructure network. Required deliverables include carbonated soft drinks, juices, water, tea, energy drinks, and sports drinks in various package sizes ranging from 0.5-liter to 2-liter formats, along with Bag-In-Box containers in 2.5-gallon and 5.0-gallon sizes; vendors must also provide complimentary CO2 tanks, cups in multiple sizes, cup lids, and equipment maintenance with service calls responded to within one hour and completed within 24 hours. The contract will be awarded on a best-value basis utilizing a 100-point scoring methodology: 35 points for the Bag-In-Box category (lowest cumulative price), 20 points for the Can/Bottle/2-Liter category, 20 points for the Other Item category, and 25 points for the commission percentage offered; all pricing must be submitted on the Attachment A Soft Drink Bid Spreadsheet with $0.01 entered in the electronic Kentucky Vendor Self Service system. Vendor questions were due by March 2, 2021 at 1:00 PM EST, with the Commonwealth's responses issued by March 4, 2021, and the contract shall be awarded for an initial two-year period with options to extend for three additional two-year renewal periods subject to written approval and potential renegotiation.

Kentucky resident bidders receive reciprocal preference consideration, and qualified bidders including Kentucky Correctional Industries, Kentucky Industries for the Blind, and certain nonprofit agencies serving individuals with severe disabilities receive additional preference points. The awarded vendor must maintain a single master contract administrator and single payment location, hold commercial general liability insurance of at least $2,000,000 general aggregate and $1,000,000 per occurrence, maintain automobile liability insurance of $1,000,000 combined single limit, and carry workers' compensation coverage with $1,000,000 per accident for employer's liability; the vendor must also be registered in the Kentucky eProcurement system with proof of Kentucky tax registration and workers' compensation compliance prior to award. All bidders must submit complete responses to all line items or their bids will be deemed non-responsive, and the awarded contractor must support annual scholarships totaling $50,000 ($20,000 for the Office for the Blind and $30,000 for the Governor's Scholars Program) while paying a quarterly administrative fee of one percent of net sales. Prices must exclude federal excise taxes and Kentucky sales or use tax, remain firm for the first twelve months, and any subsequent increases require written justification based on industry-wide changes. The solicitation documents do not identify incumbent vendors or current contractors, though the comprehensive participating locations list indicates the scope of existing infrastructure across state parks, rest areas, and government facilities that the awarded vendor will be expected to service.