Contract Type II

Award Basis - Per Meal Cost

The Type II contract is awarded based on a per meal payment to the FSMC for direct costs (food, labor and miscellaneous expenses) and a management fee. This is a fixed price contract. The per meal fee is composed of:

   (1)  The management fee and
   (2)  The direct cost of operations (food, labor, miscellaneous expenses) per meal.

For Example:

Management Fee Direct Cost of Operations Per Meal Cost

$0.20 +  $2.05 =  $2.25*

* The $2.25 figure (from the example above) would be the bid price written in on the bid form by the FSMC.

Please note that at no time during the contract period can the per meal payment to the FSMC exceed the contract terms (the number of meals plus *equivalent meals multiplied by the bid price.*Equivalent meals are calculated by dividing the a la carte sales figure by the equivalent meal conversion factor established by the contract.

Special attention should be paid to the content of the menu to be used for bidding the per meal cost contract. The menu, as bid, must be used for the first 21 days of service and sets the quality standards for future menus and any special functions the SFA would like the FSMC to perform. Bidders use the information contained on the menu to calculate the food cost. It will be difficult for the FSMC to expand the food service program selections after the bid is awarded.

Special Functions:

Any district approved non-contractual (not specified in the original bid) special function, or catered event that is outside the child nutrition program operation, and is provided by the food service contractor, must be billed outside the contract. The district has an obligation to reimburse the FSMC out of the General Fund account for the cost of these services. Payments received by the contractor for these services cannot be reflected as "a la carte sales" when calculating equivalent meals under the Type II contract. For more information about payment refer to “Calculating Vendor Payment”.

Extending Contracts:

Upon contract renewal, the increase in the bid price (extension price) is limited to any increase in the NY, Northeastern New Jersey Consumer Price Index (CPI-U) for all urban consumers for the 12 month period immediately preceding the month in which the contract terminates. The justification of any increase should be provided by the FSMC.

RCCI’s and Jails:

Menus used for breakfast and lunch must be for 21 days, meet the requirements of the programs and include student choices in the selections. Include all items that should be available to students at their meal service. Also, you should include a dinner and snack menu for 21 days and any special functions the SFA would like the FSMC to perform. For example, picnic lunches, award dinners, and holiday celebrations should be spelled out in the specifications. The menu must be used by the FSMC for the first 21 days of service. It sets the quality standards for future menus. Bidders use the information contained on the menu to calculate the food cost. It would be difficult for the FSMC to expand the food service program selections after the bid is awarded.