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1 Food Service Management Company Contract Renewal SY Kansas State Department of Education Child Nutrition & Wellness Hot Topics & Reminders Advisory Board Minutes must reflect actual activities of the advisory board Spring Monitoring Forms (14A) due to KSDE April 1 CPI Change: February to February School Nutrition Program renewal process will not be approved until KSDE approves FSMC Renewal Addendum Administrative Review Findings Sharing of Food Service Director All fee structures are a fixed price per meal Recalculation of cost must be reflected in the fixed price per meal Billbacks- are not allowable under any circumstances Contract Renewal Contracts DO NOT automatically renew Sponsor and FSMC make a decision annually to renew or not Upon successful completion of a contract year, the Sponsor can decide to renew the contract for an additional 1-year term up to four additional terms Contracting with a FSMC * Kansas State Dept. of Education, Child Nutrition & Wellness 1
2 Contract Renewal Prices may only be adjusted by the National Consumer Price Index Rate for Food Away from Home in the base year contract February to February No other price increases or additions to the original fee structure are allowed The Contract Renewal Process The week of March 13 th, KSDE sent the Addendum to Renew Fixed Price Food Service Management Contract along with renewal letter to Sponsors via . Sponsor should have begun conversing with the FSMC to start the renewal process (if agreeable to both parties). If price increases are necessary the prices are indicated on the Addendum to Renew and sent to KSDE for review. The Contract Renewal Process Any additional terms that a Sponsor wishes to be added to the agreement must be approved by KSDE. KSDE must review and approve renewal addendum and any additional terms to the contract, before Sponsor and FSMC sign addendum. Contracting with a FSMC * Kansas State Dept. of Education, Child Nutrition & Wellness 2
3 Company Written Language At no time should a FSMC assist with the development or wording of the contract or a contract addendum. Renew or Re-bid? Non-material changes can be renewed Amendments cannot result in a material change to the contract. Material changes must result in a new procurement process Material Change or Not? Material Change: Would responders have bid differently if proposed change had existed at time of the bidding? Any renewal must comply with 7CFR (a)(1), (a) and Part 3016 for maximum open and free competition. Contracting with a FSMC * Kansas State Dept. of Education, Child Nutrition & Wellness 3
4 Material Change = Start Procurement Process All Over Again! Examples of material change: Adding significant new programs or sites Removing programs or sites Consolidating with another district Changing from a 5 day to 4 day week or vice versa Transition of all school employees to employment of FSMC Renewal Addendums 2013 & 2014 Base Year Contracts 2015 Base Year Contracts Contract Monitoring Contracting with a FSMC * Kansas State Dept. of Education, Child Nutrition & Wellness 4
5 Monitoring Responsibilities The Sponsor must monitor the operation of the FSMC through twice per year on-site visits in order to ensure the FSMC complies with the contract and any other applicable Federal, State, and local rules and regulations. Submit monitoring documentation to KSDE by December 1 and April 1. July- July 1 st is effective date of renewed contract. August- Identify potential advisory council members (students, parents, teachers) and make plans to conduct Advisory Board meetings for new school year. September- Participate in FSMC Update Training provided by KSDE September/October- Begin completing FSMC Monitoring Forms (14-A)for all serving sites Conduct first Advisory Board meeting and send supporting documentation with Monitoring Form to KSDE November- Finish completing FSMC Monitoring Forms for all serving sites and submit to KSDE by Dec. 1 December 1 st -Deadline to submit 1 st FSMC Monitoring Form to KSDE Contracting with a FSMC * Kansas State Dept. of Education, Child Nutrition & Wellness 5
6 January/February- Begin evaluating whether or not to renew FSMC contract for SY Begin completing 2 nd FSMC Monitoring Review Forms for all serving sites Conduct 2 nd Advisory Board meeting and send supporting documentation with Monitoring Form to KSDE March- Finish 2 nd FSMC Monitoring Review Forms for all serving sites and send to KSDE by April 1. Receive renewal notification from KSDE Begin conversing with the FSMC in March/April to start the renewal process (if agreeable to both parties). April/May- Continue to work on completion of renewal addendum. Send any additional terms to be included in renewal addendum to KSDE for review and approval. May- Update FSMC contract information and person responsible for monitoring contract on Sponsor application in KN-CLAIM as part of the Program Renewal Process. May/June- Submit BOE minutes approving contract renewal to KSDE. Program Renewal Checklist for SY In order for a Sponsor to be approved to operate child nutrition programs in SY 16-17: Addendum to Renew approved by KSDE If applicable- any amendments approved by KSDE Board Minutes documenting board approval to renew FSMC contract Sponsor Application in KN-CLAIM Indicate contract monitor and contact information Contracting with a FSMC * Kansas State Dept. of Education, Child Nutrition & Wellness 6
7 Open and Free Competition The underlying foundation of all procurement, without regard to dollar value and regardless of the method used, is that procurement must be conducted in a manner which provides maximum open and free competition. Which really means procurement procedures must not restrict or eliminate competition! Kelly Chanay, M.Ed, RD, LD - kchanay@ksde.org Diane Dysart- ddysart@ksde.org Kansas State Department of Education Child Nutrition & Wellness Contracting with a FSMC * Kansas State Dept. of Education, Child Nutrition & Wellness 7
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