Transcript Dairy Procurement - School Nutrition Association

Welcome!
To join the audio portion of the event, please dial in to the new
number:
8oo-937-4791
(Please note that this is a NEW dial in number)
Note: Instructions on how to obtain 1 CEU credit for participating in today’s event will be provided at
the conclusion of the webinar
Disclaimer of Endorsement: reference herein to any products, services or expressed ideas does not constitute or imply endorsement or recommendation by the School
Nutrition Association.
Copyright © 2008 School Nutrition Association. All Rights Reserved.
www.schoolnutrition.org
Dairy Procurement:
How to Develop
Bid Specifications &
RFP’s for a
Successful & Cost
Effective Program
Disclaimer of Endorsement: reference herein to any products, services or expressed ideas does not constitute or imply endorsement or recommendation by the School
Nutrition Association.
Copyright © 2008 School Nutrition Association. All Rights Reserved.
www.schoolnutrition.org
Objectives
• Develop cost-effective bid specifications &
Requests for Proposal (RFP).
• Identify steps in developing a school dairy bid
that explores many options
• Use Keys to Excellence as a framework to
identify best practices in procurement of milk
and dairy products.
Copyright © 2008 School Nutrition Association. All Rights Reserved.
3
www.schoolnutrition.org
National Dairy Council
• A leader in nutrition research and education
since 1915
• Provides timely scientifically-sound nutrition
information designed for school nutrition
professionals, teachers and parents
• Generic promotions focusing on dairy
• Dairy producers and dairy processors
Copyright © 2008 School Nutrition Association. All Rights Reserved.
4
www.schoolnutrition.org
Presenters
Peggy Lee, National Dairy Council
Teresa Nece, Facilitator
Chad Mitchell, Director of Food Service
Rock Hill School District, SC
Beverly Blough, Director of Food Service
Wood County Schools, Parkersburg, WV
Melanie Konarik, Director of Child Nutrition
Spring ISD, Houston, TX
Copyright © 2008 School Nutrition Association. All Rights Reserved.
5
www.schoolnutrition.org
Procurement Decisions
• Ensure use of high quality and safe
ingredients/products
• Availability, cost, acceptability and nutritive value
have a strong role
• Based on scientific information, government
regulations, cost, product quality, consumer
demands, environmental constraints
• Practice that supports free and open competition
• In accordance with Federal, State and local
requirements
Copyright © 2008 School Nutrition Association. All Rights Reserved.
6
www.schoolnutrition.org
Importance of Nutrients
• Milk contains nine essential nutrients
• Food group to encourage
• Three of the five nutrients of concern:
calcium, potassium, and magnesium.
• 2005 DGAs emphasized low-fat or non-fat
milk and milk product
• 2005 DGAs stated added sugar has a value
in increasing palatability
Copyright © 2008 School Nutrition Association. All Rights Reserved.
www.schoolnutrition.org
Importance in School Meals
• Milk required meal component
• Healthy eating patterns during childhood
affect later years
• More milk choices than ever before
Copyright © 2008 School Nutrition Association. All Rights Reserved.
8
www.schoolnutrition.org
Federal Law Requirements
• Richard B. Russell National School Lunch
Act - 42 U.S.C. 1751 et seq.
• Child Nutrition and WIC Reauthorization
Act of 2004 - P.L. 108-265
• Reimbursable lunches must offer “fluid
milk in a variety of fat contents” (minimum
of 2)
• May offer flavored, unflavored, lactosefree
Copyright © 2008 School Nutrition Association. All Rights Reserved.
www.schoolnutrition.org
Regulations
– 7 CFR Part 210 – school lunches
– 7 CFR Parts 3015, 3016 – procurement
– Federal procurement regulations apply to all
schools
– State and local procurement laws/regulations may
also apply - if consistent with federal
– Have knowledge of any special requirements in
your state
– What does your local wellness policy require?
• Sugar and calorie levels
• Local or state standards
Copyright © 2008 School Nutrition Association. All Rights Reserved.
10
www.schoolnutrition.org
Basic Decisions
1. Appropriate purchase method
2. Pricing mechanism
3. Number of vendors required
Copyright © 2008 School Nutrition Association. All Rights Reserved.
11
www.schoolnutrition.org
Purchase Procedures
1. Request for Quotation – small purchase
procedure
2. Competitive Sealed Bids – formal process
3. Request for Proposal – formal process
4. Noncompetitive Negotiation
Copyright © 2008 School Nutrition Association. All Rights Reserved.
12
www.schoolnutrition.org
Developing Product
Specifications
•
•
•
•
Ask for flavors and fat levels in milk
Ask for lactose free milk
Include local or state standards
Bid language specifies plastic or paper
containers as options
• Develop specifications for other dairy
products - yogurt, cheese
• Develop specifications for other items such as
juice
Copyright © 2008 School Nutrition Association. All Rights Reserved.
13
www.schoolnutrition.org
Pricing Mechanism
1. Fixed firm price for specified time period
2. Escalation/de-escalation clause tied to
third party bulletin
http:www.ams.usda.gov/dairy/orders.htm
Copyright © 2008 School Nutrition Association. All Rights Reserved.
14
www.schoolnutrition.org
Copyright © 2008 School Nutrition Association. All Rights Reserved.
15
www.schoolnutrition.org
Escalation/De-escalation
Clause
All prices shall be firm for 30 days, after which milk can
increase to decrease in accord with changes in Class 1
raw milk prices based on monthly Federal Milk Order
Announcements for the (applicable geographical zone).
Prices for milk delivered can be increased or decreased
at the rate of $0.001 per half pint for each full $0.15
increase/decrease in raw milk per hundred weight.
Visit http:www.ams.usda.gov/dairy/orders.htm
Copyright © 2008 School Nutrition Association. All Rights Reserved.
16
www.schoolnutrition.org
Making School Business
More Appealing
•
•
•
•
•
•
Number of deliveries
Flexible delivery times
Specify locations, storage space, etc.
Set par order levels
Specify temperature standards for milk
Exchanges and credit procedures
Copyright © 2008 School Nutrition Association. All Rights Reserved.
17
www.schoolnutrition.org
Rock Hill School District
Chad Mitchell, MS, RD
•
•
•
•
Suburban School District
25 Schools
Enrollment 18,000
500 students/year
Copyright © 2008 School Nutrition Association. All Rights Reserved.
18
www.schoolnutrition.org
Rock Hill School District
•
•
•
•
•
•
•
Sealed Bid
Product Specifications
Price Escalator/De-escalator
Plastic and Paper containers
Contract Extensions
Bidder Responsibilities
Success Story
Copyright © 2008 School Nutrition Association. All Rights Reserved.
19
www.schoolnutrition.org
Specifications
Milk, 1% butterfat, minimum milk solids not fat
9%, US Grade A fresh, approved, pasteurized
homogenized, Vitamin A and D enriched
Chocolate Milk, Skim, minimum milk solids
not fat 9%, US Grade A fresh, approved,
pasteurized homogenized, Vitamin A and D
enriched. No recombined chocolate milk
Copyright © 2008 School Nutrition Association. All Rights Reserved.
20
www.schoolnutrition.org
Petitions for Price Escalation
• Basis of increases - cost of product raw
material
• Packaging or transportation increases not
allowed
• Increases supported by evidence of price
increases
• Only be granted when the supplier can show
cost of raw materials has escalated or deescalated at $0.15 per hundred weight
Copyright © 2008 School Nutrition Association. All Rights Reserved.
21
www.schoolnutrition.org
Copyright © 2008 School Nutrition Association. All Rights Reserved.
www.schoolnutrition.org
District Decision
Product
Container Type
Chocolate Skim
Plastic Bottle
Paper Carton
Plastic Bottle
Paper Carton
Plastic Bottle
Paper Carton
Plastic Bottle
Paper Carton
Plastic Bottle
Paper Carton
Vanilla 1%
Strawberry 1%
White 1%
White Skim
Unit
Volume
8 fl oz
8 fl oz
8 fl oz
8 fl oz
8 fl oz
8 fl oz
8 fl oz
8 fl oz
8 fl oz
8 fl oz
Unit Price Estimated
Quantity
$
1,111,320
$
1,111,320
$
79,380
$
79,380
$
79,380
$
79,380
$
158,760
$
158,760
$
158,760
$
158,760
Copyright © 2008 School Nutrition Association. All Rights Reserved.
23
www.schoolnutrition.org
Extended
Price
$
$
$
$
$
$
$
$
$
$
Success Story
Copyright © 2008 School Nutrition Association. All Rights Reserved.
24
www.schoolnutrition.org
Wood County Schools
Beverly Blough, MS, RD, LD
 Urban and Rural School District
 27 Schools
 Enrollment 13,414
 Request for Proposals
Copyright © 2008 School Nutrition Association. All Rights Reserved.
25
www.schoolnutrition.org
Wood County Schools
• Vendor Conference
• Bidder Responsibilities
• Product Specifications
Copyright © 2008 School Nutrition Association. All Rights Reserved.
26
www.schoolnutrition.org
Product Specifications
• Milk in half pint (8 oz) plastic or paper
containers:
Low fat (1%) white milk
Low fat (1%) chocolate flavored milk
Low fat (1%) strawberry flavored milk
Low fat (1%) vanilla flavored milk
Low fat (.5%) skim white milk
• Milk Products
• Fruit Juice
Copyright © 2008 School Nutrition Association. All Rights Reserved.
27
www.schoolnutrition.org
Low Fat (1%) Flavored Milk
a.) Not less than 2000 USP units Vitamin A per quart.
b.) Not less than 400 USP units Vitamin D per quart.
c.) No less than 1% milk fats.
d.) Shall be protein fortified and contain not less than
8.25% total milk solids non-fat.
e.) Emulsifiers or stabilizers added shall not be more
than 2% by weight of the total non-fat milk solids
added.
f.) Addition of approved flavoring.
g.) Pasteurized and homogenized.
h.) Limit total sugars to 22 grams per 8-ounce portion
Copyright © 2008 School Nutrition Association. All Rights Reserved.
28
www.schoolnutrition.org
Wood County Schools
• Firm Price and Escalator/De-escalator
• Plastic or Paper Containers
Copyright © 2008 School Nutrition Association. All Rights Reserved.
29
www.schoolnutrition.org
RFP Evaluation
 Meeting Nutrition Standards & Goals of District
 Variety of product available
 Product Quality
 Delivery Service
 Overall Integrity of Vendor
 Price
Copyright © 2008 School Nutrition Association. All Rights Reserved.
30
www.schoolnutrition.org
Success Story
Copyright © 2008 School Nutrition Association. All Rights Reserved.
31
www.schoolnutrition.org
Spring Independent School
District
Melanie Konarik, MS
• Suburban School District
• 31 Schools
• Enrollment 33,000
Copyright © 2008 School Nutrition Association. All Rights Reserved.
32
www.schoolnutrition.org
Spring Independent School
District
• Purchasing Cooperative
• Fixed Firm Price
• Nutrition Analysis Software Vendor Bid
Copyright © 2008 School Nutrition Association. All Rights Reserved.
33
www.schoolnutrition.org
Harris County Department
of Education (HCDE)
•
•
•
•
•
•
•
Request for Proposal
Product Specifications
Firm Price
Packaging type
Responsible
Bidder Responsibilities
Success Story
Copyright © 2008 School Nutrition Association. All Rights Reserved.
34
www.schoolnutrition.org
Evaluation Criteria
1. Price
50%
2. Meet HCDE/GCC Terms & Conditions 20%
3. Ability to meet needs of members
20%
4. Company References
10%
Copyright © 2008 School Nutrition Association. All Rights Reserved.
35
www.schoolnutrition.org
Success Story
Copyright © 2008 School Nutrition Association. All Rights Reserved.
36
www.schoolnutrition.org
In Review
 What type of purchasing system?
 What products are you offering?
 Have you written your product specifications?
 Do vendors know what you expect in the contract?
 Is your bid document up-to-date and does it meet
federal, state and local requirements?
 Specific items to consider:
Storage space in facilities
Different pack sizes
Expand dairy bid to include other products
Type of packaging (paper or plastic)
Copyright © 2008 School Nutrition Association. All Rights Reserved.
37
www.schoolnutrition.org
Resources
Copyright © 2008 School Nutrition Association. All Rights Reserved.
38
www.schoolnutrition.org
First Choice: A purchasing systems
manual for school food service,
Second Edition
National Food Service Management
Institute
Copyright © 2008 School Nutrition Association. All Rights Reserved.
39
www.schoolnutrition.org
Choice Plus: a reference guide for food
and ingredients
National Food Service Management
Institute
Copyright © 2008 School Nutrition Association. All Rights Reserved.
40
www.schoolnutrition.org
Prime Purchasing Practices
An introductory purchasing course
for managers and directors based
on First Choice concepts and Keys
to Excellence best practice
standards
Copyright © 2008 School Nutrition Association. All Rights Reserved.
41
www.schoolnutrition.org
Copyright © 2008 School Nutrition Association. All Rights Reserved.
42
www.schoolnutrition.org
Copyright © 2008 School Nutrition Association. All Rights Reserved.
43
www.schoolnutrition.org
Additional Resources
State regulatory agencies
Your local Dairy Council
representative
 MilkPEP at www.milkpep.org
Copyright © 2008 School Nutrition Association. All Rights Reserved.
44
www.schoolnutrition.org
To obtain 1 SNA Continuing Education
(CEU) Credit, please take the following
steps:
Email your full name, SNA member number and full
contact information to [email protected]
no later than THURSDAY, MARCH 26, 2008.
**IMPORTANT: please use the words Webinar CEU Credit in the subject line of your email
Note: participation will be verified against the event registration log,
so if you participated via a shared computer, please also indicate the
name of the person who registered for the webinar.
Copyright © 2008 School Nutrition Association. All Rights Reserved.
www.schoolnutrition.org
Q and A
What are your questions?
Copyright © 2008 School Nutrition Association. All Rights Reserved.
46
www.schoolnutrition.org
Today’s webinar was made possible by:
Disclaimer of Endorsement: reference herein to any products, services or expressed ideas does not constitute or imply
endorsement or recommendation by the School Nutrition Association.
Copyright © 2008 School Nutrition Association. All Rights Reserved.
www.schoolnutrition.org