Implement
Public Institutions: Draft Food Service Management Contracts
- Public Institution
- FSMC-Operated
Introduction
Once a public institution selects a food service management company, the parties negotiate and enter a food service contract. This contract is a crucial legal tool for formalizing the parties’ commitments and translating values into clear, actionable requirements for values-based procurement. When drafting the food service contract, a public institution should be familiar with and comply with federal, state, and local laws governing food procurement, and consult its legal team when necessary. This stage explains how to incorporate values-based procurement requirements into a food service contract, including how to:
- Address the wide range of requirements, specifications, and contract provisions useful in establishing a values-based procurement program.
- Ensure clarity and transparency regarding the institution’s expectations and the management company’s obligations in values-based food operations.
- Strike an appropriate balance between mandating specific requirements and allowing flexibility to adapt to changing circumstances.
Keep In Mind:
This chapter does not explain how to draft an entire food service contract. Instead, it focuses on how to incorporate values-based procurement requirements into a food service contract. An institution should consult its legal team to ensure compliance with all applicable federal, state, and local laws. Additionally, public institutions should avoid making significant changes to the language included in the RFP, as making major changes could compromise fair and open competition.
This stage explains how to incorporate values-based procurement into a food service contract to facilitate effective implementation, accountability, and enforcement. This contract language will look very similar to that included in the RFP. In fact, public institutions should be careful not to amend the contract language significantly from what was included in the RFP, as making major changes at this stage in the procurement process could impact the solicitation’s fair and open competition.[1] The model recommendations below offer guidance, language, alternatives, and examples for a private institution wanting to prioritize values-based procurement in its food service contract.
When developing a food service contract that incorporates values-based procurement, a public institution should consider four key questions:
- Who are the parties in a food service contract?
- What are the applicable procurement laws?
- Why is it important to include values-based procurement in the food service contract?
- How can the parties incorporate values-based procurement into a food service contract?
Guiding Activities
Who Are the Parties in a Food Service Contract?
The two parties to a food service contract are the institution and the food service management company.
What Are the Applicable Procurement Laws?
Because public institutions are bound by procurement law, it is important to identify those laws in the food service contract.
Why is it Important to Include Values-Based Procurement in the Food Service Contract?
When a public institution hires a management company, it is outsourcing part, or all, of its food service operations, so laying out clear expectations in the food service contract is crucial.
How Can the Parties Incorporate Values-Based Procurement Into the Contract?
When drafting its contract with a food service management company, a public institution that prioritizes values-based procurement must be intentional about what is included in the contract to clearly define how its values will be incorporated into procurement practices.
Footnotes
[1] Contracting with Food Service Management Companies: Guidance for School Food Authorities, USDA 20 (May 2016), https://www.usda.gov/sites/default/files/guidance-documents/fns.sp40cacfp12sfsp14-2016-updatedGuidanceContractingFSMC.pdf.