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VENDED PROGRAMS

VENDED PROGRAMS. SFSP FY 05. What is a Food Service Management Company?. Any organization (including commercial for profit companies, schools, or private nonprofit organizations) which provides unitized meals under a contract with a program sponsor.

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VENDED PROGRAMS

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  1. VENDED PROGRAMS SFSP FY 05

  2. What is a Food Service Management Company? • Any organization (including commercial for profit companies, schools, or private nonprofit organizations) which provides unitized meals under a contract with a program sponsor.

  3. Definition of Food Service Management Company Vended Sponsor A sponsor: Which contracts with any commercial enterprise, SFA or non profit organization for preparing unitized meals, with or without milk, for use in the SFSP, or for managing a sponsor’s food service operations in accordance with the limitations set forth in 7CFR 225.15 and the Administrative Guidance for Sponsors.

  4. Vended Sponsors • Must ensure that program procedures and guidelines are met. • Remain legally responsible for the food service operation • Adhere to contract with FSMC. (Contract is not with USDA or SA)

  5. Order meals for sponsor Maintain sponsor records Submit claims Train and monitor admin and site staff Enforce corrective action Announce availability of program meals Approve F/R applications Prepare program application FSMCs Cannot…

  6. Invitation to Bid and Contract7CFR 225.6(h)(2) • A standard prototype is provided by the State agency. (FNS-688) • It contains information and forms used for submitting a bid. • Upon acceptance by both parties it may become the contract.

  7. Cycle menu approved by SA Food specs and meal quality standards Special meal requirements or dietary modifications Statement requiring compliance with SFSP regulations Nonfood items essential for meals Location of sponsor sites and estimated range of meals required IFB must include…

  8. Site Information – name, address, delivery locations, times of meal service, days of operation Cycle Menu Meal Requirements Reimbursable Meals - sponsor required to pay only for eligible meals Quality Control Unitized meals Meal Range Adjustments Bid SpecificationsSponsor Responsibilities

  9. Ensuring Food Quality and Service Train Site Staff to: • Count meals when they are delivered • Contact sponsor reps if changes in the number of meals ordered need to be adjusted • Note discrepancies on the delivery receipt that both site and delivery person sign; • Inspect food items delivered by FSMC; • Reject unacceptable food items; • Contact sponsor rep if there are problems with the vendor

  10. Food Service ManagementCompany Requirements FSMCs intending to vend to SFSP sponsors are required to: • Register and be approved by the SA • Have all applicable Health Dept certifications and inspections up to date and deficiencies corrected • SA inspection • Records must be maintained for current year + three years

  11. FSMCRequirements(cont.) - use the contract developed by the State agency for bid process (7 CFR 225.6(h)(2)); -- ensure meals conform to the cycle menus and meal quality standards and specifications; - deliver meals to the sponsor’s sites at the times set forth in the contract; - be aware that changes in the number of meals ordered shall be made by the sponsor;

  12. FSMC Requirements(cont.) refrain from subcontracting meals, with or without milk, or for the assembly of the meal; - submit invoices promptly at the end of each month as required by the sponsor; - be responsible for any excess costs the sponsor incurs by obtaining meals from another source (7 CFR 225.6 (h)(2)(xiii)).

  13. FSMC Requirements • Contract Responsibility – Private contract between FSMC and the sponsor • USDA/SA has no jurisdiction over contract execution

  14. Special Account (7CFR 225.6(f)) • Sponsor deposit payments received from SA in a special account • Both sponsor and FSMC must authorize any check drawn from the account • Ensures that FSMC receives payment for eligible meals.

  15. Sponsor Disallowances • Excess meals • Allowing meals to be eaten off site • Failure to serve meals as a unit • Claiming meals served to adults

  16. Sponsor Disallowances • Serving meals outside approved timeframes • Serving meals in excess of approved levels

  17. Delivering non unitized meals Delivering spoiled meals Delivering meals outside designated delivery times Delivering meals with components less than required Delivering meals with missing components Changing menus or unapproved substitutions FSMCs Disallowances

  18. Default of Contract • Either party may break the contract with a 30 day advance notice • Sponsor may terminate due to non performance

  19. Default of Contract • Notify FSMC and surety company of specific non performance • If FSMC takes no immediate CA, surety co will find another FSMC • FSMC liable for difference in price

  20. Best Sponsor – Vendor Relationships • Understand and follow regulations • Understand both parties responsibilities • Good Communications

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