Warehousing & Distribution of USDA Foods (MDE)

The Minnesota Department of Education, Nutrition Program Services, is requesting proposals for warehousing, inventory management, and distribution services for USDA Donated Foods under the National School Lunch Program throughout Minnesota, with proposals due September 3, 2026 at 3:00 p.m. Central Time via the SWIFT Supplier Portal.

The scope encompasses receipt, inspection, storage, safeguarding, inventory management, and distribution of approximately 50 different USDA foods—dry, refrigerated, and frozen—to eligible recipients including public and nonpublic schools, residential child care institutions, and Summer Food Service Program sponsors statewide. The contractor must maintain minimum receiving hours Monday through Friday, 8:00 a.m. to 5:00 p.m. Central Time (excluding state holidays), accept deliveries within 24 hours of notification with unloading completed within 48 hours of arrival, and assess charges for USDA foods remaining in storage beyond 60 calendar days with MDE-NPS authorization. The contractor assumes full responsibility for loss, shortage, or damage to USDA foods while in custody and must reimburse MDE-NPS or USDA based on USDA acquisition entitlement value.

The anticipated contract term runs from October 1, 2026, through June 30, 2028, with an option to extend up to an additional 48 months in increments determined by the state. Estimated quantities for School Year 2027-2028 are valued at approximately $15 million; all quantities are estimates with no guaranteed minimum. Responders may propose services for one or multiple Minnesota counties and must submit per-unit pricing for storage, in-out handling, and per-site delivery charges by product category and county.

Mandatory requirements include Minnesota business licensure, at least three consecutive years performing similar warehousing services, compliance with all Exhibit C specifications, and adherence to USDA FNS Instruction No. 709-5, Rev. 3. The contractor must maintain Commercial General Liability coverage of $2,000,000 per occurrence, Commercial Automobile Liability of $2,000,000 combined single limit, Workers' Compensation, and Property of Others Insurance with minimum limits equal to the average monthly value of donated food inventories ($1,500,000). Federal compliance requirements include debarment certifications, E-Verify for contracts exceeding $50,000, affirmative action for contracts exceeding $100,000, and diverse spend reporting for contracts exceeding $500,000 including extension options.

Evaluation occurs in three phases: Phase 1 screens for responsiveness and mandatory requirements; Phase 2 scores acceptance of state terms and conditions (100 points), geographic zone capabilities (200 points), contractor narrative (300 points), and cost (400 points), with up to 120 additional preference points; Phase 3 selects finalists based on best value. Award is anticipated by September 24, 2026. Questions are due August 20, 2026 at 3:00 p.m. Central Time to Molly Gunderson at molly.gunderson@state.mn.us. Cost proposals and terms remain firm for 180 days unless otherwise approved by the state.