School Foodservice Procurement Co-ops and GPOs · 2017-07-10 · •Janet Beer - Consultant: Oregon Child Nutrition Coalition •Katie Rogers –Owner: Rogers K12 Consulting •Lynelle

© COPYRIGHT 2017 SCHOOL NUTRITION ASSOCIATION | #ANC17 | ATLANTA, GA© COPYRIGHT 2017 SCHOOL NUTRITION ASSOCIATION | #ANC17 | ATLANTA, GA

School Foodservice Procurement

Co-ops and GPOsKatie Rogers, MS RD

Janet Beer, RD

Lynelle Grumbles, RDN, SNS

Sean Leer

© COPYRIGHT 2017 SCHOOL NUTRITION ASSOCIATION | #ANC17 | ATLANTA, GA

AFFILIATION OR FINANCIAL DISCLOSURE

• Janet Beer - Consultant: Oregon Child Nutrition Coalition

• Katie Rogers – Owner: Rogers K12 Consulting

• Lynelle Grumbles – CEO: Santa Clarita Valley SFSA

• Sean Leer – CEO: Gold Star Foods, a broadline foodservice

distributor contracting with multiple growers and manufacturers


West Indy Coop

Katie Rogers, MS, RD


• WIC represents over 80,000

students in Indiana

• Any IN school is welcome to

join-public or private

• Board of Directors oversee all

bids, cuttings, by-laws &

meetings

• Annual Dues: $1.50 per

student enrolled

• $20 M in sales


TO JOIN WIC

• Articles of Joint Agreement

• Public Schools- Board

Resolution

• Bid Administrator Agreement


BID ADMINISTRATOR

• RFP for bid administrator

conducted by 1 member on

behalf of all members


Oregon Child Nutrition Coalition

Janet Beer, RD


OCNC

• 80 districts - all of Oregon but lower SE

• Smallest = 44 students

• Largest = 20,884

• Organized 1992 - Incorporated Non-Profit 1997

• Any school serving USDA meals in Oregon that is non-contract

• Adding SW Washington school


Structure

• Board of Directors

– 2 CFO’s

– 5 directors

• Issued 1 year RFP for administrative services, 4 renewals

• Total base admin salary = $70,000

• 4 meetings per year (one for board member) = $10,000

• Minimum member fee - $420, maximum fee – $3,570

• New Product/Commodity Processing show = $28,000

• Total Budget $120,000 per year


What a member gets

• One New Product/Commodity Processing food show per year

• Commodity Processing RFP yearly

• Purchased RFP once with 4 optional renewals

• Nutrition and CN info for over 600 purchased items

• Nutrition and CN info for all commodity processed items

• Optional yes/no list for ala carte - $300

• Optional menu plan with recipes, production sheets, App A, order

guide - $3750


Commodity RFP

• Annually in January for next school year

• All manufacturers

• All approved products they make

• No volume commitment

• Individual awards

• Can buy low bid or combine with taste testing

• Update in September for re-formulated or new items


Purchased RFP (PRFP)

• One year

• 4 optional renewals based on national CPI

• Fixed price for 12 months for listed items

– Change in price tied to index too complex

• Three groups

– Generic – 325 items

– Distributor’s Choice – 30 items

– Manufacturer Defined – 325 items


Manufacturer Defined

• Pre-approved before PRFP issued

• Specifications sent to all vendors – they sent back nutrition info

• Paper screened to match specification

– Components

– Nutrition info

– Sodium level

• If approved taste tested over 4 days by directors

• Results posted to web site – within 2 days

• Only approved items can be offered


Additional Pricing

• Dairy products based on Federal Milk Order with fixed

distribution cost (9 items)

• Fixed fees with same CPI for changes for delivery of:

– USDA foods

– Net Off Invoice

– Cash Rebate

– Fee for Service

– Anything not on original list


Subsequent RFP’s (SRFP)

• Members will want to add items

• Fixed fee for distribution established

• Issue 3 times per year

• Specs to all vendors – paper screen nutrition info

• Request manufacturer fixed pricing

• Members taste test at 3 existing food shows

• Combine taste test and price

• Same CPI for price changes


Response

• Only one distributor

– Too big a group

– Privately held company would not submit confidential financial information

• Extended total $12,866,397

• Was responsive – has the experience, facility, reputation,

financial resources to fulfill the terms

• Was responsible – able to provide the service

• OCNC recommends award – individual districts issue award


Good things

• Use the Internet – ocnc.org

– Web site all RFP documents

– Dropbox all nutrition info and commodity pricing

• ODE – 2 meetings, many emails, very helpful

• Taste tests – vendors and directors happy

• SRFP – will let schools add items


More good things

• Bill paying and audits easier

• Schools can cost out menus with firm pricing

• Buy American info

– Manufacturer letter in Dropbox that products meet by 7/1/17


Not so good things

• Ton of work!

• 3 addenda – vendors had lots of questions

• Did not bid produce or chemicals

• Paying slightly more

• May have items pulled if prices go too high

• Increased administrative cost for additional RFP’s ($17,100)

• Large group can exceed vendors ability to respond


Super Co-Op: A California

USDA Foods Cooperative

Dr. Lynnelle Grumbles, RDN, SNS

Sean Leer


Evolution of USDA Foods Cooperatives in California

• Late 1980’s – several cooperatives formed in California

– USDA Foods processing

– Commercial procurement

• SY 2000-01

– Nine Co-Ops using same Administrative Company merged

– “SUPER Co-Op” was born

– Many remained with original co-ops for commercial procurement

• SY 2014-15

– Brown Box Distributor became Administrator

– Cut out “middle man”


Super Co-Op Demographics

• SY 2017-18

– 230 Recipient Agencies in California

– Redding to Chula Vista (675 miles)

– Total entitlement $ 78,386,951

• DoD Reserve $6,337,176

• Unprocessed F&V Pilot $1,263,000

– USDA Foods Requests

• Direct Delivery – 710 truckloads

• Processed – 1,100 truckloads

– 56 approved Manufacturers

• Single pounds balances except large and small bird chickens

– 13 approved Distributors


Super Co-Op Governance

• Lead Agency

– Santa Clarita Valley School Food Service Agency

• Administrator

– Gold Star Foods

• Governing Council

– 10 Regional group representatives & guests

– Meets quarterly

– Oversees Co-Op business

– Strategic Planning


Super Co-Op Management

• Membership Fees

– % of estimated entitlement

• Distribution

– USDA Foods Direct Delivery

• Delivery fee to Member District

– Processed USDA Foods

• Delivery method depends on local procurement methods

• Several smaller cooperative groups

• Some larger Member Districts buy direct



• Lead Agency

– Bids & Contracts

• Administration

• USDA Foods Direct Delivery

• Manufacturer Pricing – Market Basket RFP w/mid year Addendum

– Distribution of processed USDA Foods end products and commercial

equivalents

• Lead Agency – RFP for participating Member Districts

• 5 – 6 other purchasing groups

– Food shows & annual member meetings

– Training events



• Lead Agency

– Bid & Contract Management

– Oversee Administrator

• Governing Council closed sessions

– Manufacturer RFP for Processed USDA Foods & Commercial Equivalents

• Released to all Distributors and Member Districts same day & time

– Manage processor pounds balances

– Spring entitlement “sweeps”



• Administrator

– State fee collection

– USDA Foods orders

• Online spring survey

– Data collection and management

• Distributor VPT reporting efficacy

• Other reports

– USDA Foods Direct Delivery inventory management

– Website management

– Communication with Member Districts


PROFESSIONAL STANDARDS CODE

• This session provides one (1) CEU

– Key Area: Operations - 2000

– Key Topic: 2450 Purchasing/Procurement

Documents

School Foodservice Procurement Co-ops and GPOs · 2017-07-10 · •Janet Beer - Consultant: Oregon Child Nutrition Coalition •Katie Rogers –Owner: Rogers K12 Consulting •Lynelle