Implement
A public institution must follow specific procurement laws when contracting with management companies. These requirements are set by federal, state, tribal, and local laws, and each institution must determine which rules apply. Because of the complexity of these contracts, the USDA recommends that state agencies consider hiring a full-time contract specialist, advice that other public institutions may also want to follow.[2]
Generally, federal agencies are bound by the Federal Acquisition Regulations (FAR).[3] Institutions receiving federal awards and funding must comply with 2 C.F.R. Part 200 (“Uniform Guidance”).[4] Appendix II to Part 200 provides required contract provisions for institutions receiving federal awards and funding.[5] Public institutions using non-federal funds are governed by state and tribal laws, which vary by state. Finally, some public institutions may also be subject to local procurement laws.
These laws not only apply to the institution, but also to the management company’s food purchasing activities. Contracts should therefore include a provision that requires management companies to comply with all applicable laws.
In performing the work described in this contract, the management company will adhere to all
applicable laws, rules, and regulations adopted by any federal, state, or local regulatory body or
governmental agency.
[2] Contracting with Food Service Management Companies: Guidance for School Food Authorities, USDA (May 2016), https://www.usda.gov/sites/default/files/guidance-documents/fns.sp40cacfp12sfsp14-2016-updatedGuidanceContractingFSMC.pdf.
[3] 48 CFR § 1.101 (alternative citation FAR § 1.101).
[4] 2 CFR § 200; See Uniform Guidance and the Federal Acquisition Regulation (FAR), Massachusetts Inst. of Technology, https://ras.mit.edu/grant-and-contract-administration/managing-projects/application-award-terms/uniform-guidance-and-federal-acquisition-regulation-far.
[5] Appendix II to 2 CFR Part 200.