Board Agenda - June 06, 2006

2. #3711, Full line grocery items

Presenter: Richard Matkin

Purpose: A - Request decision - closure required

Time: No time limit

Description:

This is a compliance proposal that will establish an approved vendor and pricing for the purchase of refrigerated/frozen products, canned/shelf stable products, USDA commodity processed items, commodity pick up/storage fees, and disposable kitchenware products used by Food and Nutritional Services (FANS) in support of the District's Child Nutrition Program. This is the first year of a renewable proposal. Requests for Proposal were sent to 55 companies. Three proposals were received. Terms and pricing were negotiated.

FANS and Purchasing Services developed line item spreadsheets for refrigerated/ frozen products, canned/shelf stable products, and disposable kitchenware products for pricing. The first step began with the selection process comparing line item pricing from the spreadsheets. The extended price was calculated from the vendor's case price and FANS estimated yearly usage. All prices were converted to the same unit of measure. Secondly, samples were requested and evaluated on quality. The third step involved requesting vendors to resubmit pricing on 48 high volume items and commodity fees.

After receiving the new pricing, FANS compared and evaluated each vendor's submittals. The overall pricing for each line item spreadsheet is attached.

The fourth and final step involved a scoring process used by FANS. Each vendor was evaluated with published criteria for a possible score of 100: 30 points for purchase price, 10 points for reputation of vendor, 30 points for quality of vendor's goods and service and 30 points for best meeting the District's needs. Labatt received the highest score. Labatt was also the lowest overall bidder.

The proposal specification states that Plano ISD will award the proposal to a sole distributor. Pricing must be firm for one year. However, if there is an extreme increase in market conditions, the awarded vendor may request in writing a one-time price adjustment from the current price with a 30 day notice. Requests for price increases must be accompanied by a proof of change in market conditions provided by the manufacturer. If any reductions in market conditions result in a substantial price benefit to Plano ISD, the awarded vendor will reimburse the difference at the end of the contract period. Plano ISD may audit any and/or all invoices to verify "true cost". In the case of audit deficiencies, the awarded vendor will be required to reimburse the District for any overcharges.

FANS may purchase throughout the contract period new and/or promotional items as construed under the terms, conditions and scope of this proposal. The awarded vendor will derive a negotiated price for those items based on estimated quantities provided by the District.

Based on all of the above factors, staff recommends that this proposal be awarded to Labatt Food Service. Labatt Food Service has provided services to the District for ten years, being the sole distributor for seven years.

Labatt has a good working relationship with FANS, Purchasing Services and Accounts Payable. Labatt's sales representative meets weekly with Purchasing Services and FANS to address any concerns. Labatt's representative keeps FANS apprised of marketing programs, as well as product availability.

Recommendation:

The Administration recommends this proposal be awarded to Labatt Food Service.

Business Impact:

Estimated Value: $6,500,000.00. Budget/Financial Implication: FANS Operating Budget. Evaluation Criteria: Purchase Price; Quality of Goods; Vendor's Reputation; Best Meets the Needs of the District.

Summary:

Appendix:

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