Definitions

In an effort to assist school administrators, the following definitions have been developed which should be referred to when questions arise:

Management Service Fee is defined as all other costs except food, labor, and miscellaneous costs as defined herein.

Allowable Direct Costs are those costs that are incurred solely for the SFA’s on-site operation, such as:

• Labor is defined as and limited to on-site employees responsible for the management, preparation, service, and clean-up of meals.
• Food is defined as and limited to those items purchased for use in the preparation and service of student, a la carte, adult and special event meals as specified.
• Miscellaneous Expenses are defined as paper supplies (including decorations), equipment rental, cleaning materials, commodity handling and warehousing charges, travel as required for effective program management, and as agreed upon by the SFA (*see below), uniforms, menu paper and printing, taxes and licenses, laundry, insurance and other costs as contractually obligated herein.

Note: Allowable direct cost of operations is defined as labor, food and miscellaneous expenses. All program expenses not otherwise defined in the contract will be assumed by the FSMC under the management fee.

Material Change is a change made by one party or both parties to the terms and conditions of the contract that significantly impacts the compensation given to the bidder. Adding the Summer Food Service Program; changing the menu planning option, vending; increasing costs, adding another school that is not a part of your organization are considered material changes. If you are adding another building, which is already a part of your SFA or adding a breakfast or snack program to your SFA, it is not considered a material change.

Program Income is defined as monies generated by the sale of meals to children, accrued State and federal reimbursement and student and adult a la carte sales, less the annual guaranteed return to district, if applicable.

Travel as required for effective program management and as agreed upon by the SFA is defined as:

Travel as required:

• Travel of the manager from one building to another in the district.
• Travel to State sponsored meetings.

Travel as agreed upon:

• Travel to special meetings.
• Travel of regional chef, dietician, etc. if the SFA deems such visits necessary for the efficient operation of the program.