Contract Renewal Agreements—Food Service Management
Company Contracts
 Contract
Duration and Renewals
School food authorities (SFAs) must
ensure food service management or vended meals contract language
indicates the duration
of the contract is no longer than
one year. Additionally, options for yearly renewal of a contract must not exceed
four additional one-year extensions. Since the decision to renew the contract
is an affirmative decision made by both parties to the contract each year,
either party, for any reason, may decide not to exercise
the renewal option. If the
contract is not renewed, the SFA must either conduct a new procurement or self-operate
its food service.
Should either party determine revisions to the contract
are necessary, non-material changes are generally made when
the
contract is renewed. These alterations
cannot result in substantive changes to the original contract.
The following
changes would normally not constitute a substantive change
in the contract:
-
Number of schools—new schools added;
-
Changes in enrollment—decreases and increases in student enrollment
and the corresponding change expected in participation;
-
Changes in student/adult meal price—meal price changes (determined
by the SFA);
-
Per meal cost increases—cost increases limited to a measurable
index; and/or
-
Meal equivalency—minor adjustments to the per meal equivalency
as set forth in the contract.
The basis for renewing the contract,
including price increase provisions, if any, must be stated
in the contract and be based
on a measurable
index such
as the Consumer Price Index for All Urban Consumers or a
flat percentage. School officials should ensure
that price increases are within the terms of the contract.
You must submit a copy of the executed renewal to our
office along
with all
applicable contract
certification forms prior to the approval of your program
participation for each
fiscal year. Renewals may be mailed to the Illinois State
Board of Education, 100 North First Street W-270, Springfield,
Illinois
62777,
or faxed to the
Nutrition Programs Division at 217-524-6124.
Contract Re-bidding
School food authorities have the option to re-bid the food service management or vended meal contract at any time. Neither party may make or impose material changes to an existing contract during the contract year or as part of the annual contract renewal process. If it is determined that material or substantive changes are necessary, the SFA must conduct a new procurement and re-bid the contract or may choose to self-operate its food service.
Circumstances which require an SFA to re-bid the contract include:
- Expiration of the existing contract and renewals;
- Addition of a program, such as the School Breakfast Program; and/or
- Change of the Menu Planning Approach.
In addition, examples of material or substantive changes which could require the SFA to re-bid the contract include:
- The scope of the contract has substantially changed;
- Major changes to the formula for determining meal equivalency;
- Major shift in responsibilities for SFA/FSMC staff; and/or
- Revision to the fixed-price contract pricing structure and/or terms for price increases becomes necessary.
Finally, the SFA should re-bid the contract if the existing contractor has not fulfilled the contract to the SFA’s satisfaction.
School food authorities are required to meet state and local procurement regulations that conform to federal procurement and program regulations when developing the bid solicitation and awarding the contract. Regarding the procurement process, SFAs cannot include contract provisions that restrict competition or prevent companies from bidding on the meal services.
Contract
Renewal Agreement Forms
These forms must be used for all contract
renewals with a food service management company and
may not be altered
without
permission
from
the Illinois State
Board of Education Nutrition Programs Division. All contract
renewals MUST be accompanied by a contract amendment this
year. For sample language to be used in the amendment, click
on the third link provided below.
If the contract is $10,000 or more, include a signed
copy of the Certification Regarding Debarment, Suspension,
Ineligibility, and Voluntary Exclusion—Lower
Tier Covered Transactions.
If the
contract is over $100,000, include signed copies of the following
certification
forms
(see above):
-
Certification Regarding Debarment, Suspension, Ineligibility, and Voluntary Exclusion—Lower
Tier Covered Transactions
-
Certification Regarding Lobbying—Contracts, Grants,
Loans and Cooperative Agreement
- Disclosure of Lobbying Activities (if applicable)
Renewals
may be mailed to the Illinois State Board of Education,
100 North First Street W-270, Springfield,
Illinois 62777, or faxed to the Nutrition Programs
Division at 217-524-6124. |
