PROCUREMENT OF SERVICES FROM A FSMC
Transcript of PROCUREMENT OF SERVICES FROM A FSMC
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PROCUREMENT OF SERVICES FROM A FSMC
SCHOOL YEAR 2019-2020
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LEARNING OBJECTIVES
Participants should be able to:
▪ Understand the RFP process
▪ Understand State and Federal requirements for procuring the services of an FSMC
▪ Understand the responsibilities of the SFA and FSMC when contracting with an FSMC
▪ Understand the steps in preparation of an FSMC Request for Proposal (RFP)
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LEARNING OBJECTIVES -Continued
■ Understand the new and revised forms to use in preparation of FSMC RFP/Contract
■ Understand the similarities and differences in a Cost Reimbursable and Fixed Price RFP/Contract
■ Understand the differences in the monitoring requirements for both types of contracts
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LEARNING OBJECTIVES -Continued
▪ Know where to find FSMC Documents
▪ Know the timelines and methods for submission of documents to the State Agency (SA)
▪ Understand the process for receiving approval from the State Agency (SA)
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FSMC RFP/Contracts
NEW FOR THIS YEAR
■ Both Fixed Price and Cost Reimbursable
will use the State Agency developed
Request For Proposal (RFP)/Contract
■ RFP/Contracts will be in a PDF fillable
format
■ Changes to the State Agency RFP cannot
be made without written prior approval
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FSMC RFP/Contracts
■ RFP/Contract forms and documents will be numbered the same for both types of contracts – Form # followed by FP or CR
■ With the exception of how the documents are submitted to the State Agency for approval, the process for preparing the documents is the same
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CONTRACT SUBMISSION
■ The Fixed Price Contract will be received, approved and maintained using the Electronic Contract Approval System (ECAS)
■ A webinar on electronic submission in ECAS for the Fixed Price RFP/Contract will be held on March 14, 2019 at 10:00 a.m.
■ Submission of the Cost Reimbursable Contract will be via Mail to the State Agency
■ A webinar on how and what to submit for CR contracts will be held on February 21, 2019 at 9:30 a.m.
■ Contract submission deadline is June 30, 2019
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PROCUREMENT for a FSMC
• SFAs must comply with all federal, state and local
procurement regulations
• Reference materials and webinars on Procurement
are located in SNEARS
• Reference Materials - SNEARS – Resources
• Webinars – SNEARS - Training
• Full and Open competition must be assured
• Compliance with and monitoring of the Buy
American Provision
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FULL AND OPEN COMPETITION
Full and Open competition means:
• All FSMC’s are on a level playing field and
have the same opportunity to compete
• Procurement procedures and specification
requirements do not unduly restrict or
eliminate competition
• Fairness and integrity in all aspects of the
procurement process are followed
• SFA must provide Request for Proposal (RFP)
to all currently registered FSMC’s who
request them
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BUY AMERICAN PROVISION
▪ For further guidance please refer to USDA - Memo
Code: SP 38-2017 found in SNEARS – Resources
– USDA Memos
▪ FSMC performance of the Buy American Provision
must be monitored by the SFA to determine FSMC
compliance with solicitation and contract
language as required by 2 CFR 200.318(b)
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GENERAL SFA RESPONSIBILITIES
■ SFA Is legally responsible for the conduct of the
school food service program
■ Must ensure FSMC compliance with federal,
state and local regulations and requirements
■ Must retain control and overall financial
responsibility of the school food service account
(fund 60)
■ Must employ a sufficient number of qualified
staff to perform responsibilities that cannot be
delegated to the FSMC
Contracting with FSMC does not mean the SFA
relinquishes control of the food service operation.
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SFA RESPONSIBILITIES
■ Direct Certification Process, Free & Reduced Applications
and Verification Process
■ Generate and Maintain Master Eligibility List (MEL)
■ Monitor FSMC Food Service Operation (Form #330 – SFA-
FSMC Monitoring Form)– at least 2 times per year
■ Conduct annual On-Site Accountability Reviews for Breakfast
(Form #292) and Lunch (Form #142) by Feb.1st for all SFA
sites
■ Conduct annual On-Site Accountability Reviews for Snack
Program (Form #365 ) during first month of operation and
again by Feb. 1st
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SFA RESPONSIBILITIES
■ Meet Professional Standards Requirements (SFA
and FSMC)
■ Local Wellness Policy
■ Review and Approve Menus
■ Establish Advisory Committee
■ Establish Meal and A-La-Carte Prices
■ Review and Certify Reimbursement Claims (Conduct
Edit Checks for Claims)
■ Review USDA Food (Commodity) Utilization
■ Monitor the Buy American Provision
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SFA RESPONSIBILITIES(Cost Reimbursable Contracts)
■ Monitor FSMC Procurement Procedures – See SA
Memo’s dated 10/31/2017and 11/2/2018
■ Monitor Rebates, Discounts and Credits
■ Require and Review documentation for monthly
FSMC invoices for Food, Labor, Supplies and Fees
■ Ensure all charges to the operating statement are
necessary, reasonable and allowable under USDA
and 18A regulations and guidelines
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SFA RESPONSIBILITIES(Fixed Price Contracts)
■ Correctly determine the number of meals
claimed/charged and meal rate for each type of
meal on monthly invoice
■ Review a-la-carte sales and meal equivalent rate
■ Review documentation for crediting USDA foods
■ It is not necessary to ensure charges to the
operating statement are allowable as it is inherent
to the FP Contract
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CATERING - BOTH CONTRACTS
■ NEW THIS YEAR FOR COST REIMBURSABLE
CONTRACTS
■ Catering will be billed as a separate line item in
both types of contracts
■ Catering is defined as all non-program events
including food or meals, supplies and labor
■ No longer referencing “Special Events” in
RFP/Contract or Response and Operating
Statement
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CATERING - Continued
■ Charges will include food, labor, supplies, FSMC
fees and if applicable SFA fees
■ Catering is a non-program cost and should be
separate and apart from program costs
■ A sample catering invoice will be available for
your use
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SERVICES TO BE EXPECTED FROM THE FSMC
■ Employee training to meet Professional
Standards Requirements
■ Develop menus meeting USDA menu
requirements
■ Acceptable Collection Methods
■ Acceptable Meal Counting Procedures
■ Support Services from Dietitian or Chef
■ Compliance with Smart Snacks
■ Meal Pattern Support Documents (Menus,
production records, recipes, labels, etc.)
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SERVICES TO BE EXPECTED FROM THE FSMC
■ Analysis of Trends & Participation Reports
■ FSMC Payroll
■ Compliance with SFA policies
■ Promotions
■ Active Advisory Committee
■ Presentations to Board and PTA
■ Monthly Operating Statement
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THE PROCUREMENT PROCESS
■ SFA’s must comply with all federal, state and
local procurement regulations when securing
FSMC services
■ Review reference materials and fact sheets
regarding the procurement of FSMC
■ Start the process early to ensure sufficient time
for FSMC to develop a thorough, comprehensive
proposal
■ Hold a facility walk-through while school is in
session (this step cannot be mandatory)
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STEPS IN PROCUREMENT
1) Forecasting /preparing historical information
2) Preparing RFP
3) Advertise for proposals
4) Receive, evaluate and score proposals
5) Select Successful FSMC
6) Submit documents to SA – prior to execution of
contract
7) Obtain SA approval
8) Sign Contract
9) Manage contract (ongoing)
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STEP 1- FORECASTING / HISTORICAL INFORMATION
■ One of the most important steps in preparing your RFP
■ Accurate historical meal counts and school/site information
will help the FSMC develop a fair and realistic proposal
■ It will also assist the SFA in determining what FSMC
proposal is the most advantageous to the SFA
■ The SA has developed the NJ Work Book for FSMC RFP –
Form # 372 to assist you in putting together this
information.
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STEP 1- FORECASTING / HISTORICAL INFORMATION
NEW - NJ Work Book for FSMC RFP (Form #372) –Tabs
– a. Meals/Sales by School/Site
– b. Reimbursement Log
– c. Services to be Provided
– d. SFA Labor/Benefits (if applicable)
– e. Vending Machine Schedule
– f. SFSP (if applicable)
– g. CACFP - Dinner Program (if applicable)
– h. Reimbursement Rates
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REVIEW of Step 1
NJ Work Book for FSMC RFP – Form # 372
■ ACTIVITY –Review of worksheet tabs a, b and c.
■ This form will be e-mailed to SFA’s who have completed this training and received reimbursement claimed for December 2018
■ Send request to: [email protected]
Subject: Form 372 Data Request – SFA Name and agreement number
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STEP 2 – PREPARING RFP
RFP/Contract
▪ SFA must use State Agency Developed
RFP/Contract for BOTH Fixed Price and
Cost Reimbursable
▪ The RFP/Contract is in a PDF fillable
format and should be carefully reviewed
and filled in by the SFA
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STEP 2 – PREPARING RFP
▪ Additional specifications or changes to the RFP must be approved by the SA before RFP is sent out for proposal
▪ Change request deadline is April 30th
▪ Use form #47CR or #47FP – Change Modification Request Form
▪ Do not use old forms or documents!
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STEP 2 – PREPARING RFP
RFP includes:
■ Advertisement page
■ Check boxes for current programs
■ Check boxes for future programs or program
changes in the next 5 years
– It is important to consider any future program
changes for your SFA to avoid a material change
in your contract
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STEP 2 – PREPARING RFP
■ The new RFP/Contracts now include many of the old
forms and documents
▪ RFP Scoring Criteria and Evaluation Form
▪ Cost Responsibility Form
▪ SFA Minimum Staffing Requirements (optional)
▪ SFA Requested Equipment (optional)
▪ Confirmation of SFA-SFA Vended Meal Contract(s)
and /or Consolidation Agreements (if participating)
▪ Schedule of costs included in the
Administrative/Management Fee
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Review of Cost Responsibility Form
▪ Form is in your hand-out packet for both CR and FP proposals
▪ Items that have been pre-checked cannot be changed
▪ SFA completes the rest of the form to meet the needs of district
▪ There is also an area to designate duties and responsibilities for cleaning and trash removal
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STEP 2 – PREPARING RFP
▪ SFA must include the following required
documents with the RFP:
▪ Certificate Regarding Debarment (#130)
▪ Certificate of Independent Price Determination
(#131)
▪ Disclosure Of Lobbying Activities (#132)
▪ Certification Regarding Lobbying (#133)
▪ Disclosure of Investment Activities in Iran (#39)
These forms are now available as one (1) PDF
document
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STEP 2 – PREPARING RFPADDITIONAL INFORMATION
■ Menus – 21 day menu for each meal
type
■ Current SFA price list for Meals and A-La
Carte items
■ Most current SFA audit of fund 60
■ Form #372 – New Jersey Workbook for
FSMC RFP
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STEP 2 – PREPARING RFPADDITIONAL INFORMATION
To be included for FSMC to fill out:
■ Form #23FP or #23CR – Response and
Operating Statement
■ NEW FORM #23 INCLUDES:
▪ FSMC Hourly Labor and Benefits Chart
▪ FSMC Salaried Labor and Benefits Chart
▪ FSMC Equipment proposal
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REVIEW OF STEP 2 PREPARING THE RFP
■ Form # 23CR and Form 23 FP -Response and
Projected Operating Statement
■ Schedule of Costs included in Cost Reimbursable
Administrative/Management Fee
■ Meal Equivalent Rate Form # 348
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Meal Equivalent Conversion Factor - Form 348
• Federal free meal regular reimbursement rate $ 3.3100
• Federal PB Lunch HHFKA $ .0600
• State free meal reimbursement rate $ .0550
• Per meal value of USDA entitlement value $ .2350
• $ 3.6600 = $3.66
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IMPORTANT NOTES FOR RFP
■ SFA cannot request and FSMC cannot offer “value
added” incentives such as scholarships, donations,
grants, free services, free equipment, etc.
■ Revisions and clarifications to SFA’s questions
must be made in writing and sent to all FSMC’s
who expressed interest in submitting a proposal or
to whom the RFP was provided
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REQUESTING EQUIPMENT TO BE PURCHASED IN RFP
■ FSMC can only purchase equipment on the SFA’s
behalf if the SFA makes the request in the RFP
■ Specific equipment should be requested by SFA and/or
detailed equipment specifications or technical
requirements must be included
■ Public school contract law and USDA regulations must
be followed when procuring equipment
■ Title to all equipment must be retained by the SFA
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EQUIPMENT REPAYMENT
■ Equipment Provisions must be for one year only
■ No assumption can be made that SFA will
renew contract for additional years if FSMC
purchases equipment on SFA’s behalf
■ Repayment terms are to be included in RFP
■ Equipment expense cannot be part of the price
per meal in the FP contract but is an additional
cost billed as a separate line item.
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General Equipment Procedures
■ Any equipment purchase over $5,000 (per
item) must be approved by the SA prior to the
purchase, unless the item is on the SA Pre-
Approved Equipment List (Form #160)
■ BA must submit the Equipment Request Form
#106
■ This form is separate and apart from the RFP
and is required whether the SFA is purchasing
the equipment or FSMC is doing so on the
SFA’s behalf.
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STEP 3 - ADVERTISE FOR PROPOSAL
▪ Must publicly advertise Request for Proposal
(RFP) in regional news source/official
newspaper
▪ 20 days minimum required for
advertisement prior to deadline for
submission of proposal
▪ Legal notice is included in RFP
▪ SFA cannot advertise exclusively on school
web site
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STEP 4: RECEIVE, EVALUATE AND SCORE PROPOSALS
▪ Proposals can only be accepted from FSMC’s who are registered for SY 2019-2020
▪ Evaluate proposals to determine if all conditions and requirements in specifications were met including return of documents
▪ Proposals that did not meet specification requirements are considered “non-responsive” and must be rejected. Inform the FSMC in writing.
▪ Overly responsive items cannot be considered in the evaluation
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STEP 4: RECEIVE, EVALUATE AND SCORE PROPOSALS
When reviewing proposals received:
▪ Rank and score proposals based only on evaluation criteria included in specifications
▪ Price must be the primary factor in RFP
▪ FSMC Scoring & Evaluation– Form (in RFP document)
▪ Sample Criteria – Form# 320
▪ Do not consider any additional factors the potential FSMC may have included in their proposal
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COST REIMBURSABLE FEES
In Cost Reimbursable Contracts
Only One Fee is Allowed
■ Per Meal Administrative/Management Fee (Cents per meal)
■ Flat Administrative/Management Fee
■ Administrative / Management Fee is - a fee charged for services
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COST REIMBURSABLE FEES
Per Meal Management Fee
▪ Per meal Fee for meals served under the
National School Lunch, School Breakfast
and After School Snack Programs (as
applicable) - determined by actual count
▪ Per meal Fee for Meal Equivalents equals
the total dollars of A La Carte Sales divided
by the Meal Equivalent Conversion Factor of
$3.66
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COST REIMBURSABLE FEES
Flat Management Fee
▪ The SFA shall pay to the FSMC a
management Fee of (Dollar Amount) per
(Week or Month) for number of (weeks
or months) for a total management fee
of (TOTAL DOLLARS) $_____________
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FIXED PRICE – Meal Rates
Meal Rates will be broken Down as follows:
■ Breakfast (School Breakfast Program) - actual meals served x Breakfast Meal Rate
■ Lunch/Dinner (National School Lunch Program & CACFP Dinner) – actual meals served + (plus) total meal equivalents (using the same formula as described in the cost reimbursable contract) x Lunch Meal Rate
■ Snack (After School Snack Program) – actual meals served x Snack Meal Rate
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GUARANTEES
IMPORTANT – GUARANTEE LANGUAGE IS IN BOTH
THE COST-REIMBURSABLE AND FIXED PRICE
CONTRACT
The FSMC may choose one of the following:
GUARANTEED LOSS
GUARANTEED BREAKEVEN
GUARANTEED RETURN
NO GUARANTEE
Guarantees are not capped and are unlimited
Guarantees can not exceed the bottom line on
form 23.
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CAUTION ON GUARANTEE
■ Refer to proposal and Response & Projected Operating Statement (Form #23) to make sure guarantee is based on realistic projections
■ Are the proposed number of meals to be served actual historical or close to the actual historical numbers provided? Projecting numbers that are unrealistic could skew a guarantee
■ A Guarantee is not the “price” of the proposal and if you are going to evaluate a guarantee it should be defined in the scoring and evaluation criteria
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STEP 4: RECEIVE, EVALUATE AND SCORE PROPOSALS
▪ SFA must document evaluation of proposals and
recommended FSMC. Documentation includes
names of FSMC’s, summary of proposals, rank in
order of evaluation, and reason(s) FSMC selection
is recommended
▪ Use FSMC Proposal Comparison Form #24 when
evaluating price
▪ Form 24FP – Price = Total Meal Price in
Section 2
▪ Form 24CR – Price = Total Cost of Contract (L)
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STEP 4: RECEIVE, EVALUATE AND SCORE PROPOSALS
▪ Be sure to include the historical meal
counts from Form #372 in Form #24 for
your evaluation
▪ Note: Specific Comparison Form for
each type of RFP - #24FP and
#24CR
▪ In both contracts, Form #24 must
be returned to the SA with contract
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STEP 5: SELECT SUCCESSFUL FSMC
■ Award contract to responsible FSMC,
whose proposal, based on scoring
and ranking, is most advantageous to
SFA, with price as the primary factor
and other factors considered
■ Scoring and evaluation materials
must be kept on file at the SFA
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STEP 5: SELECT SUCCESSFUL FSMC
▪ Unsuccessful FSMCs should be
promptly notified
▪ Public/Charter schools must place a
notice in the official newspaper
summarizing the award of the contract
▪ Contract is awarded for a term of one
year only
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RFP MODIFICATIONS
▪ RFP Modification Request Form #47 must
be submitted by April 30th, 2019
▪ SFA must allow a minimum of 30
business days after SA receives the
request to review documents
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STEP 6 & 7: SUBMIT DOCUMENTS AND OBTAIN SA APPROVAL
Cost Reimbursable Contract Submission
▪ Will be mailed to the SA
▪ View webinar on Feb. 21, 2019 - Cost
Reimbursable Contract Submission
▪ Use Form #15 Checklist
▪ Approval process will begin
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STEP 6 & 7: SA RFP/CONTRACT SUBMISSION & APPROVAL IN ECAS
for FIXED PRICE
▪ Contract information will be entered and uploaded
in ECAS
▪ SA approvals and notifications will come through
the system
▪ Contracts will be tracked with a unique contract
approval number
▪ Approval of addendums will continue through-out
contract in the same manner as the base year.
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STEP 8 – SIGN THE CONTRACT
For CR Contracts:
▪ Once approved you will be e-mailed a
Certification/Signature page (NEW)
▪ Scan and return Cert./Signature Page
For FP Contracts:
▪ Certification/Signature page will be
available in ECAS when contract is
approved
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STEP 9: MANAGING THE FSMC CONTRACT
SFA is responsible to assure that the FSMC:
▪ Complies with all federal, state and local
regulations and requirements
▪ Provides meals/menus that comply with
USDA meal pattern requirements
▪ Provides meals/components that are
acceptable to students
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STEP 9: MANAGING THE FSMC CONTRACT
SFA is responsible to assure that the FSMC:
▪ Provides documentation for any food
items that do not meet the Buy
American Provision
▪ Provides all the necessary
documentation for monthly invoices
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RENEWING THE FSMC CONTRACT
After the initial contract term, SFA can renew up to an additional 4 – one year terms if the following requirements are being met:
▪ Services are being performed in an effective and efficient manner
▪ Contract terms and conditions remain the same (no material change has or will take place)
▪ Any price increase does not exceed quarterly index rate in effect at time of renewal
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QUARTERLY INDEX RATE INFORMATION
■ The Quarterly Index Rate is published four times
a year (January, April, July and October)
■ The index rate is posted on the NJ Department
of Community Affairs web site at:
– http//www.state.nj.us/dca/divisions/dlgs/pr
ograms/lpcl_docs/cur_index_rate.pdf
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PROCUREMENT RESOURCES FOR FSMC CONTRACTS
Forms in SNEARS are now broken down into the following categories:
Go to SNEARS - Tab – Resources
1. FSMC CACFP AND SFSP DOCUMENTS
2. FSMC COST REIMBURSABLE CONTRACT REQUIRED DOCUMENTS
3. FSMC FIXED PRICE REQUIRED DOCUMENTS
4. FSMC SAMPLES AND REFERENCES
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OTHER RESOURCES
▪ For questions, contact the state agency at: 609-
984-0692
▪ This training will also be presented as a webinar
on January 24, 2019
▪ A recording of that webinar will be available
in SNEARS – Training Tab
Other Resources:
▪ Federal Procurement Regs (2 CFR part 200,
2 CFR 200.318-200.326)
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OTHER RESOURCES
▪ Procurement in the 21st Century from the
Institute of Child Nutrition (ICN)
▪ Institute of Child Nutrition
http://www.nfsmi.org
▪ Buy American Provision Memo (June 30,
2017 – SP 38-2017
▪ NJ Public School Contract Law
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Department of Agriculture
School Nutrition Programs
609-984-0692
www.nj.gov/agriculture
This institution is an equal opportunity provider.
BUSINESS ADMINISTRATOR
TRAINING FOR FSMC CONTRACTS
This webinar will count toward 2 hours of professional standards training:
Key Area- Operations
Learning Topic- Purchasing/Procurement
Topic Code - 2460
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THANK YOU FOR PARTICIPATING
Disclaimer: This presentation was provided as technical assistance to provide a general framework of the process of contracting with a FSMC. SFAs are advised to review all reference materials and applicable federal, state, and local law to ensure compliance. In addition, seeking legal counsel or advice is recommended when procuring a contract of any kind.
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QUESTIONS