Public Institutions: Draft Requests for Proposals for Food Service Management Companies

Federal procurement law applies to federal public institutions that receive federal funds. Procurement by federal executive agencies is governed by the Federal Acquisition Regulations (FAR), and, where applicable, agency FAR supplements and other agency guidance.[7] In addition, federal public institutions must consult Part 200 of Title 2 in the Code of Federal Regulations—also known as “Uniform Guidance.”[8]

State agencies will be subject to the Uniform Guidance if receiving federal funds for food procurement. In addition, state agencies will be subject to any relevant state procurement laws and regulations. State laws could impact what evaluating criteria agencies are permitted to use in RFPs.

Like state agencies, city and county public institutions will be subject to the Uniform Guidance if receiving federal funds, in addition to any local laws and ordinances. Local laws, similar to state laws, may provide additional preferences or considerations that public institutions must incorporate when soliciting proposals from a management company.

In addition to the general federal procurement standards found in the Uniform Guidance, school food authorities are subject to specific procurement regulations, codified at 7 CFR Part 210. These regulations include specific requirements for school food authorities to comply with when working with a food service management company, including requirements for solicitations for proposals and contract requirements. [9] In addition, school food authorities are subject to any applicable state and local laws. SFAs will also need to be aware of regulations related to Child Nutrition Programs or School Nutrition Programs (SNPs), which are similarly located in the CFR. [10]

Some institutions may choose to be members of group purchasing organizations (GPOs), procurement networks that aggregate institutional purchasing to negotiate lower prices with vendors. [11] GPOs can help these institutions receive discounts and better pricing across a range of products; however, GPOs are also restrictive for members. An institution should be mindful of the sourcing flexibility within their GPO when contracting. Preparing an RFP and other sourcing decisions will likely require greater coordination with the GPO regarding contract terms and what may be allowed in food sourcing. Some institutions have found more success by creating working groups with the other members of the GPO to leverage their collective desire for a different product or increasing flexibility regarding food purchasing to increase values-based procurement.