Food Service Management Company

New Jersey Department of Agriculture (NJDA) Division of Food and Nutrition (DFN) Food Service Management Company (FSMC) COST REIMBURSABLE Request for Proposal (RFP) and Contract Form 17CR Table of Contents School Food Authority Information Civil Rights Statement Advertisement Template Current and Potential Future Programs Definitions I. General Information a. Procurement b. Award Criteria/Methodology c. RFP Protests d. Security to Accompany Bid; Amount e. Captions f. Contract Term g. Errors or Omissions h. Final Contract i. Gifts from FSMC j. Late Proposals k. Meal Equivalents l. Payment and Fees m. Additional Information n. Minimum Food Specifications o. Equipment p. Staffing Options q. Bonuses and Incentives II. Standard Terms and Conditions a. General Terms b. Signature Authority c. Free and Reduced-Price Meals Policy; Point of Service Meal Count d. USDA Donated Foods e. Crediting for and Use of Donated Foods f. Inventory, Storage and Record Retention of USDA Donated Foods g.

Contract Renewal h. Contract Renewal Assumptions i. Health Certifications j. Meals k. Books, Records, Reports, and Audits l. Employees/Personnel m. Monitoring n. Menus; Advisory Boards o. Inventory, Equipment, Storage and Use of Facilities p. Purchases, Rebates, Discounts and Credits NJ State Approval ID: Page 2 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 III. Forms RFP Scoring Criteria and Evaluation Form Administrative/Management Fee Costs Cost Reimbursable Cost Responsibility Summary FSMC/SFA Activity Responsibility Summary SFA Minimum Staffing Requirements SFA Requested Equipment SFA to SFA Vended Meal Contract(s) and/or Consolidation Agreement(s) SFA Additional Documents Checklist FSMC Proposal/Response Documents List RFP Modification Request q. Payment/Invoices r. Catering s. Buy American t. Sanitation u. Emergency Closing v. Non-Performance, Negligence, or Breach of Contracts by the FSMC w. Term and Termination x. Energy Policy and Conservation Act/Contract Work Hours and Safety Standards Act/Environmental Protection/ Clean Air/Federal Water Pollution Control y. Insurance z. Summer Food Service Program (SFSP) aa. Child and Adult Care Food Program (CACFP) bb. Trade Secrets and Proprietary Information cc. Purchase of Fresh Milk dd. Equal Employment/Affirmative Action ee. Drug Free Workplace ff. SOC 1 Report gg. New Jersey Business Registration Requirements hh. Political Contributions ii. Debarment/Suspension Certificate jj. Certificate of Independent Price Determination/FSMC Warranty kk. Certification Regarding Lobbying ll. Statement of Ownership Disclosure mm. Disclosure of Investment Activities in Iran nn. Civil Rights Assurance oo. Licenses, Permits and Taxes pp. Indemnification NJ State Approval ID: Page 3 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 Food Service Management Company (FSMC) COST REIMBURSABLE Request for Proposal (RFP) and Contract The purpose of this solicitation is to obtain a Food Service Management Company (FSMC) to manage the School Food Authority's (SFA’s) school food service program. The proposer is herein referred to as the Food Service Management Company (FSMC). The contract will be between the School Food Authority (SFA) and FSMC. Michael Catalano mcatalano@haddonfield.k12.nj.us School Food Authority Name: Agreement Number: Business Administrator Name: Business Administrator Email: 7/1/2023 12:00:00AMContract Start Date: Contract End Date: 6/30/2024 12:00:00AM HADDONFIELD BD OF ED 00701900 NJ State Approval ID: Page 4 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 To file a program discrimination complaint, a Complainant should complete a Form AD-3027, USDA Program Discrimination Complaint Form, which can be obtained at: https://www.usda.gov/sites/default/files/documents/USDA-OASCR%20P-Complaint-Form-0508-0002-508-11-28-17 Fax2Mail.pdf, from any USDA office, by calling (866) 632-9992, or by writing a letter addressed to USDA. The letter must contain the complainant's name, address, telephone number, and a written description of the alleged discriminatory action in sufficient detail to inform the Assistant Secretary for Civil Rights (ASCR) about the nature and date of an alleged civil rights violation. The completed AD-3027 form or letter must be submitted to USDA by: (1) mail: U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, SW Washington, D.C. 20250-9410; (2) fax: (833) 256-1665 or (202) 690-7442; or (3) email: program.intake@usda.gov. This institution is an equal opportunity provider. In accordance with federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, this institution is prohibited from discriminating on the basis of race, color, national origin, sex (including gender, identity, and sexual orientation), disability, age, or reprisal or retaliation for prior civil rights activity. Program information may be made available in languages other than English. Persons with disabilities who require alternative means of communication to obtain program information (e.g. Braille, large print, audiotape, American Sign Language), should contact the responsible stat or local agency that administers the program or USDA's TARGET Center at (202)720-2600 (voice and TTY) or contact USDA through the Federal Relay Service at (800) 877-8339. NJ State Approval ID: Page 5 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 management services. The Food Service Management Company will provide management services according to United States Department of Agriculture (USDA) regulations and guidelines, as well as all other applicable state and federal laws. Bidders are required to comply with the requirements of N.J.S.A. 10:5-31 et seq. The Food Service Management Company must currently be registered with the New Jersey Department of Agriculture (NJDA) Division of Food and Nutrition. Food Service Management Companies and/or their representatives may submit proposals to: reject proposals. A pre-proposal meeting and tour of the schools is scheduled for: Upon release of this RFP, all Proposer communications concerning this document must be directed in writing SFA will provide responses to Proposer communications within three (3) days of receipt. Each response will be provided to all interested FSMCs at least five (5) days before proposal due date. ATTENTION: Food Service Management Companies The is requesting proposals for school food service The Board of Education reserves the right to accept or All proposals must be submitted no later than and All proposals should be delivered in a and be clearly marked: FOOD SERVICE MANAGEMENT COMPANY no later than 4:00 PM on to the person listed below: Michael Catalano mcatalano@haddonfield.k12.nj.us 5/9/2023 10:00:00AM Michael Catalano sealed envelope and addressed to the PROPOSAL. 4/14/2023 12:00:00AM Michael Catalano mcatalano@haddonfield.k12.nj.us HADDONFIELD BD OF ED HADDONFIELD BD OF ED HADDONFIELD BD OF ED 4/11/2023 3:30:00PM 95 Grove Street, Haddonfield, NJ 08033 NJ State Approval ID: Page 6 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 Programs Operating for the 2023-2024 School Year Indicate below any potential programs or changes to programs the SFA is considering during the 4 allowable renewal years. The SCHOOL FOOD AUTHORITY invites written proposals from qualified companies for management of the school district’s food service program, which includes the programs checked below. National School Lunch Program (NSLP) School Breakfast Program (SBP) Community Eligibility Provision (CEP) Block Scheduling After School Snack Program (ASSP) Special Milk Program (SMP) A la Carte items (Smart Snack compliant) and meals Vending Machines Preschool Programs in SFA Buildings/Classrooms (NOT run by private providers) Extended School Year for Special Education (ESY) (if meals not included in SFSP) Breakfast in the Classroom (BIC) Breakfast After the Bell (BAB) Catering Child and Adult Care Food Program (CACFP) Programs Listed in Section AA (SFA must complete CACFP tab of Form 372) Summer Food Service Program (SFSP) (SFA must complete SFSP tab of Form 372) SFA to SFA Vended Meal Contracts Consolidation Agreements Potential Future Programs School Breakfast Program (SBP) After School Snack Program (ASSP) Special Milk Program (SMP) Breakfast in the Classroom (BIC) Breakfast After the Bell (BAB) Catering SFA to SFA Vended Meal Contracts Consolidation Agreements Community Eligibility Provision (CEP) A la Carte items (Smart Snack compliant) and meals Preschool Programs in SFA Buildings/Classrooms (NOT run by private providers) Extended School Year for Special Education (ESY) (if meals not included in SFSP) Vending Machines Child and Adult Care Food Program (CACFP) Programs Listed in Section AA Summer Food Service Program (SFSP)Block Scheduling NOTE: Administrative/Management Flat Fee or Cents per Meal Fee cannot increase above the Index Rate in a Renewal Year when a Potential Future Program begins to operate. NJ State Approval ID: Page 7 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 Definitions “Allowable Direct Costs”: Costs that are allowable in the Cost Reimbursable Contract: “Consolidation Agreement”: An agreement between two School Food Authorities (SFAs) in which one transfers and relinquishes its authority, duties and obligations for Child Nutrition Programs to the other. All program related tasks of the Relinquishing SFA become the responsibility of the Sponsoring SFA, and the Sponsoring SFA includes the Relinquishing SFA's schools on its Site Details. “Food Service Budget”: The proposed cost of food, supplies, and labor (allowable direct costs). Food Service Budget is the Response and Projected Operating Statement (Form 23). a. Food: limited to those items purchased for use in the preparation and service of student, adult, and a la carte meals in the SFA’s food service program. b. Labor: limited to on-site employees responsible for the management, preparation, service, and clean-up of student, adult, and a la carte meals in the SFA’s food service program. c. Miscellaneous Expenses: paper supplies, equipment rental, cleaning materials, commodity handling, and warehousing charges. All miscellaneous expenses must be allowable and directly allocable to the food service operation. “Bid Bond/Security to Accompany Bid”: A type of surety bond that guarantees that the FSMC has the financial means to accept the contract for the price quoted in its proposal if it is awarded the contract. “Buy American”: A procurement standard that requires SFAs to purchase to the maximum extent practicable, domestic commodities or products as defined in 7 CFR 210.21(d)(2)(i). “CACFP”: Child and Adult Care Food Program, 7 CFR Part 226. “Contract”: The RFP and Contract inclusive of all forms and the FSMC’s proposal, as accepted by the SFA. “Cost Reimbursable Contract”: A contract that provides for the payment of a fixed administrative/management fee in addition to all allowable direct costs of food, supplies, and labor to manage the food service program. “Current Year”: The term of this Contract. “DFN”: Division of Food and Nutrition. “Financial Obligation”: The total of all direct, allowable costs and the allowance for the FSMC's Administrative/Management Fee provided in the monthly invoice and operating statement. These costs include food, labor, paper and supplies, and "other expenses" (other direct costs as identified in the Cost Reimbursable Cost Responsibility Summary). “Fixed Price Contract”: A contract that provides for payment of all costs at a pre-determined and agreed upon amount that is fixed at the inception of the contract. The fixed fee includes all administrative, management, and food service-related costs. A fixed price contract may also contain an economic cost adjustment provision tied to a standard index. “Commissioned Vending”: Vending machine sales for machines that are maintained by an external vending company, not the FSMC. SFA receives commission checks. NJ State Approval ID: Page 8 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 “Program Expenses”: Costs of food, labor, supplies, etc. that are incurred for reimbursable meals that are also reasonable, necessary, and allocable. “Locally Grown”: Food grown and/or produced in New Jersey. “Non-Profit School Food Service Account”: The restricted account in which all the revenue from all food service operations conducted by the SFA principally for the benefit of school children is retained and used only for the operation or improvement of the non-profit school food service. The account shall also include, as appropriate, non-Federal funds used to support paid lunches and proceeds from non-program foods. The SFA must limit its net cash resources to an amount that does not exceed 3 months average expenditures for its non-profit food service, or such other amount as may be approved by the State Agency in accordance with “Guarantee”: The amount of money the FSMC agrees to guarantee as a return or loss to the SFA. The guarantee cannot be capped and is unlimited. A guaranteed return cannot exceed the proposed bottom line. “Non-Program Expenses”: Costs of food, labor, supplies, etc. that are incurred for non-reimbursable meals including, but not limited to, a la carte items, adult meals, catering services, vended meals and items purchased for fundraisers, vending, etc. “Performance Bond”: A type of surety bond that guarantees that the FSMC will adhere to all the terms of the contract and satisfactorily complete the agreed upon project and/or services. “Proposal”: The Food Service Management Company’s response to the RFP. “Regionally Grown”: Food grown and/or produced in Pennsylvania, New York, and Delaware. “State Agency”: New Jersey Department of Agriculture. “SFA to SFA Vended Meal Contract”: A contract between one School Food Authority (SFA) (this can be a private, public or charter) with another School Food Authority to provide complete reimbursable meals for school breakfast, lunch, after school snack or "At Risk" programs. “SFSP”: Summer Food Service Program, 7 CFR Part 225. “Smallwares/Small Equipment”: Items utilized in the preparation of food, including, but not limited to, items such as pots, pans, and serving and cooking utensils. “SNEARS”: NJDA Child Nutrition Program’s web-based School Nutrition Electronic Application and Reimbursement System. “Total Cost of Contract”: Includes all allowable direct expenses and the payment of a(n) administrative/management fee as indicated on Form 23CR. “Vending”: Vending machine sales for machines that are maintained by the FSMC, excluding commissioned vending sales. “Total Cost of Contract”: Includes all administrative, management, and food service-related expenses as indicated on Form 23FP. NJ State Approval ID: Page 9 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 I General Information A. Procurement 1. This contract will be a Cost Reimbursable Contract. 2. All procurement transactions shall be conducted in a manner that provides maximum full and open competition and in accordance with all applicable State and Federal law including, but not limited to, Uniform Administrative Requirements, Cost Principles and Audit Requirements, 2 CFR 200.318-200.326, formerly in 7 CFR 3016.36 and 3019.48, as applicable, and the SFA Code of Conduct. 3. The SFA will not conduct the procurement process in a manner that uses statutorily or administratively imposed in-state or local geographic preferences in the evaluation of proposals in accordance with 2 CFR 200.319(c). 4. An FSMC that has provided recommendations, developed or drafted specifications, requirements, statements of work, or any other information for this RFP shall be excluded from competing to provide the services sought in this solicitation. 5. The SFA reserves the right to reject RFPs if deemed in the best interest of the SFA. 6. The SFA will award the contract to the responsible FSMC whose proposal is most advantageous to the program, with price and other factors considered. A responsible FSMC is one whose financial, technical and other resources indicate an ability to perform the services required by this solicitation. 2 CFR 200.320(b)(2). 7. FSMCs or their authorized representatives are expected to fully inform themselves as to the conditions, requirements, and specifications before submitting proposals; failure to do so will be at the FSMC’s own risk and the FSMC cannot secure relief on the plea of error. The SFA is not liable for any cost incurred by the proposer prior to the New Jersey Department of Agriculture (NJDA) Division of Food and Nutrition’s (DFN) final approval of the contract, and the signing of the contract by all parties. Paying the FSMC from Child Nutrition (CN) program funds (school food service account) is prohibited until the contract is signed by both parties and final approval is provided by the DFN. 8. If additional information about this RFP is required, refer to the instructions regarding “proposer communications” on the Advertisement of Request for Proposal. 9. A Pre-Proposal Meeting with interested proposers to review specifications, to clarify any questions, and to tour the facilities with school officials is not mandatory. Refer to the Advertisement of Request for Proposal to determine if the SFA has planned a meeting and scheduled a time and location. NJ State Approval ID: Page 10 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 B. Award Criteria/Methodology 1. The contract will be awarded to the responsible proposer whose proposal is the most advantageous to the program with price and other factors considered. An evaluation committee will be established to review proposals. Each committee member will sign a certification of no conflict to be kept on file with the SFA. Each committee member will evaluate proposals independently (team scoring is not allowed). The SFA has established evaluation and scoring criteria and has assigned a Weighting Factor Percentage to each criterion as part of the RFP preparation process and prior to the RFP being advertised using the RFP Scoring Criteria and Evaluation Form. 2. Scoring Methodology: Price be the primary factor (assigned the highest weighting factor percentage). Each criterion will receive a score ranging from 1-5 points. The criterion score will then be multiplied by the assigned weighting factor percentage to get the total weighted score of the criterion. The total weighted score for each criterion will be added together to compute the total score of the proposal evaluation. Directions for completing this process can be found on the Scoring Criteria and Evaluation Instruction Form (Form 320). C. RFP Protests 1. Any action which diminishes full and open competition seriously undermines the integrity of the procurement process and may subject the SFA to RFP protests. The SFA shall be responsible for properly responding to protests and concerns raised by potential contractors. SFAs must insert their RFP protest procedures. The SFA will, in all instances, disclose all information regarding a protest to the DFN. D. Security to Accompany Bid: Amount 1. Bid Guarantee: The FSMC shall submit with its proposal, a bid guarantee in the amount of 10% of the bid, but not in excess of $20,000, that may be given, at the option of the FSMC, by certified check, cashier’s check or bid bond. N.J.S.A. 18A:18A-24. Bid Guarantees will be returned (a) to unsuccessful FSMCs as soon as practicable after the opening of bids; and (b) to the successful FSMC upon final approval and execution of all contractual documents, proof of insurance coverage and bonds as may be required. This requirement cannot be waived. If a bid protest is submitted and received by the Business Administrator by the due date and time as advertised,the Business Administrator will review all submitted protest documentation with the Evaluation Committee. The protesting bidder, and any other bidder on the contract, shall promptly provide any information requested by District staff as part of such investigation. District staff shall prepare a written response to the bid protest, with the advice of the District's attorney, which shall be provided to the protesting bidder and to the bidder or bidders whose bid is being protested within 14 calendar days after the bid protest was received. NJ State Approval ID: Page 11 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 E. Captions 1. Captions in all sections of this document are provided only as a convenience and shall not affect the interpretation of this instrument and its attachments. 1. The proposing FSMCs shall not be allowed to take advantage of any errors or omissions in the RFP specifications. Where errors occur in the RFP specification, an FSMC shall promptly notify the contact person listed. Inconsistencies in the RFP specifications are to be reported prior to proposals being submitted. The SFA will communicate the corrections and clarifications to all potential proposers in accordance with N.J.S.A. 18A:18A-21(c)(1). G. Errors or Omissions 1. The final contract shall consist of the terms and conditions contained herein as well as all documents included by the SFA in the RFP and the proposal submitted by the FSMC. No additional modifications may be made without prior State Agency approval. No amendments are permitted. 1. The SFA’s officers, employees, or agents shall neither solicit nor accept gratuities, favors, nor anything of monetary value from FSMCs nor potential FSMCs. The appropriate penalties, sanctions, or disciplinary actions to be applied for violations will be determined by the SFA Code of Conduct for Procurement and applicable Federal, State and local laws and regulations. H. Final Contract I. Gifts from FSMC 1. The SFA will not consider any proposals received after the exact time specified for receipt. 1. For the purpose of making the meal count computation, the number of meals served to children shall be determined by actual counts of reimbursable meals. The State Agency shall determine the a la carte meal equivalent by dividing the a la carte revenue by the per meal sum of the Federal and State free meal reimbursement plus the per meal value of USDA entitlement and bonus donated foods. A la carte revenue shall include adult meals and a la carte sales to students and adults. If applicable, revenue from vending machine sales will be included as part of the a la carte revenue. J. Late Proposals K. Meal Equivalents 1. The contract shall be for a period of one year, or less, with up to four optional one-year renewals with mutual agreement between the SFA and the FSMC. 7 CFR 210.16(d). Any price change included as part of a renewal shall be based upon the price of the original contract as cumulatively adjusted pursuant to any previous adjustment or renewal, and shall not exceed the change in the Index Rate (as defined in Public Schools Contract Law, N.J.S.A. 18A:18A-1 et seq.) for the 12 months preceding the most recent quarterly calculation available at the time the contract is renewed. The terms and conditions of the contract shall remain substantially the same in all renewal years. N.J.S.A. 18A:18A-42. This contract cannot be effective prior to the date of final approval by DFN. F. Contract Term NJ State Approval ID: Page 12 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 1. Payment in the Cost Reimbursable Contract shall be based on the FSMC monthly invoice and operating statement of allowable costs to operate the food service program. The FSMC shall also provide vendor invoices for all charges and expenses and documentation of its certified payroll. Sample FSMC operating statement, monthly invoice and catering invoice can be found on SNEARS Resrouces under FSMC Contract Documents. At a minimum, the Operating Statement and Monthly Invoice must contain the information included in the sample. L. Payment and Fees 2. The FSMC shall provide the SFA with a year-end operating statement detailing the school year breakeven, return or loss. 3. The SFA will perform a year-end reconciliation to verify the accuracy of the FSMC’s invoices and operating statements. 4. The SFA requires the FSMC to submit the management/administrative fee as a: Flat Fee Cents per Meal Feeor NJ State Approval ID: Page 13 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 2. The SFA may add any additional requirements to the RFP by completing the RFP Modification Request contained herein. The RFP must be completed along with the RFP Modification Request form and submitted to the State Agency for approval prior to the start of the solicitation process. The SFA may not add additional requirements to the Renewal Year documents unless the requirements are addressed in the RFP. If a requirement constitutes a material change, the SFA must issue a new RFP for its food service management. SFAs should consult with legal counsel in making those determinations. M. Additional Information 1. All FSMCs should submit the Response and Projected Operating Statement (Form 23) based on meal count numbers specified on Form 372, tab h. Projected Meal Counts. Projected Meal Counts are based on historical data and current participation. 3. Any FSMC that submits a proposal for items or activities not requested by the SFA and specified in the RFP will be considered overly responsive and the proposal will be rejected. 4. If the services of the FSMC are to begin after the start of the school year and the beginning contract term date is later than July 1 (i.e. January 1), include that date in the advertisement and solicitation. The ending contract term date will always be June 30th. 5. This proposal and contract are based on the SFA’s 21-day cycle menu. The FSMC must adhere to the cycle for the first 21 days of meal service. Changes thereafter may be made with the approval of the SFA. An SFA with no capability to prepare a cycle menu may require, with State Agency approval, that each FSMC include a 21-day cycle menu, developed in accordance with the provisions of 7 CFR 210.10, with its proposal. 7 CFR 210.16(b)(1). FSMC proposals must identify if they plan to request a change in the 21-day cycle menu included in the RFP after the first 21 days of meal service. SFA is developing and including the 21-day cycle menu (cannot be branded) SFA is requiring FSMC to submit 21-day cycle menu with proposal or NJ State Approval ID: Page 14 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 M. Minimum Food Specifications 1. The following are the minimum food specifications all FSMCs must adhere to and provide. The SFA may customize these food specifications using the RFP Modification Request contained herein: Product Level of Inspection/Quality Meat/Seafood Beef, Lamb, and Veal Pork Poultry Seafood All meats, meat products, poultry, poultry products, and fish must be government inspected. U.S. No. 1 or U.S. No. 2 USDA Grade A Top grade, frozen fish must be a nationally distributed brand, packed under continuous inspection of USDA. All dairy products must be USDA inspected. USDA Grade A or equivalent, 100% candled Dairy Products Fresh Eggs USDA Grade Choice or better Frozen Eggs Milk Fruit and Vegetables USDA inspected Pasteurized Grade A Fresh Fruits & Vegetables Canned Fruits & Vegetables Frozen Fruits & Vegetables Selected according to written specifications for freshness, quality, and color - U.S. Grade A Fancy U.S. Grade A Choice Fancy (fruit to be packed in light syrup or natural juices) U.S. Grade A Choice or better Staple Groceries To be a quality commensurate with previously listed standards. Baked Products Bread, rolls, cookies, pies, cakes and pudding either prepared or baked on premises or purchased Must have a quality level commensurate with meeting USDA breakfast and lunch requirements as applicable NJ State Approval ID: Page 15 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 2. Geographical Preference Option Check this Box if Choosing a Geographical Preference: a. The SFA seeks to increase its purchase of seasonal, unprocessed fresh fruits and raw vegetables as part of the Farm to School Program. Reasons for purchasing local products include the potential cost savings, nutrition education for students, and quality of product. Unprocessed: includes, but is not limited to, refrigerating, adjusting size (peeling, slicing, dicing, cutting, chopping), washing, packaging and adding ascorbic acid or other preservatives to prevent oxidation of produce. b. The SFA is interested in the following locally and/or regionally grown products listed in the table below (specific products must be indicated, i.e. broccoli rather than vegetables): c. The FSMC will make every effort to provide the SFA with locally grown and/or regionally grown products in the following order: i. Locally Grown d. All products provided pursuant to this geographic preference shall be labeled with their place of origin, including the grower name and address, the state or area of production on each case, and/or the invoice, delivered. ii.Regionally Grown e. Locally and/or regionally grown products should be generally free from insect damage and decay. Flexibility on grading for produce shall comply with USDA guidance. Produce items are to be rinsed, cleaned, and packed in appropriate commercial produce packaging such as waxed cardboard boxes or sanitary, reusable bins. NJ State Approval ID: Page 16 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 O. Equipment The SFA is not requesting the FSMC to propose the purchase of equipment. The FSMC may not propose the purchase of equipment in its proposal and equipment may not be charged, directly or indirectly, to the SFA at any point during the contract. Check one of the following regarding equipment investment required of the FSMC by the SFA: The SFA is requesting the FSMC to propose and purchase equipment necessary for the implementation or enhancement of the food service operation. The proposed equipment must be detailed, including acquisition cost, on the FSMC Proposed Equipment form and included in the Response and Projected Operating Statement (Form 23). The SFA is requesting the FSMC to purchase the equipment listed on the SFA Requested Equipment page. The requested equipment must be included in the Response and Projected Operating Statement (Form 23). The SFA is requesting the FSMC to purchase the equipment listed on the SFA Requested Equipment page and to propose and purchase equipment necessary for the implementation or enhancement of the food service operation. Both the requested equipment and the proposed equipment must be included in the Response and Projected Operating Statement (Form 23). The SFA shall seek pre-approval from the DFN for each item of equipment costing $5,000 or greater (unless on the Pre-Approved Equipment List) prior to its purchase through the Capital Expenditure Request process if school food service funds are going to be used, regardless of whether the SFA or the FSMC is purchasing the equipment. Any equipment and/or installation costs not included in the RFP, Form 23, and the FSMC proposal may not be charged, directly or indirectly, to the SFA at any point during the contract. All equipment purchases must be properly procured. The FSMC shall make a financial commitment/investment to the SFA in an amount not to exceed the total amount listed on the FSMC Proposed Equipment form, included in the Response and Projected Operating Statement (Form 23), and, if requested, the SFA Requested Equipment form. Any equipment purchased by the FSMC shall be purchased as a “sale-for resale” to the SFA. Title to equipment shall vest in the SFA upon such resale when the equipment is placed in service. The SFA acknowledges that it is a tax-exempt entity and will provide the FSMC with a copy of the appropriate tax-exempt certificate. The financial commitment/investment shall be amortized on a straight-line basis over a period of five (5) years, commencing upon the date the equipment is placed in service. The amortization will be charged to the SFA as a direct cost and will be billed to the SFA in addition to the operating costs on a monthly basis. Only Equipment purchased by the FSMC in the Base Year of the contract can be amortized. Should this contract expire or be terminated by either party for any reason whatsoever, prior to the complete amortization of the financial commitment/investment, the SFA shall, in the SFA’s sole discretion, either (a) reimburse the FSMC for the total unpaid balance of the financial commitment/investment as of the date of expiration or termination; or (b) continue to make payments under the monthly amortization schedule until the financial commitment/investment is fully paid; or (c) deliver the equipment funded by the financial commitment/investment to the FSMC in full release of the unpaid balance. NJ State Approval ID: Page 17 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 P. Staffing Options Check the option which applies to the SFA's staffing needs: a. Option I Check this box if the FSMC provides Management and Hourly Employees as stated below: FSMC Personnel: i. The FSMC shall provide and pay a staff of its management and operational employees assigned to duty on the SFA's premises for efficient management of the Food Service Program. The FSMC's employees will be subject to the rules and regulations of the SFA while on the SFA's premises. However, the FSMC shall set the terms and conditions of employment for its employees. ii. The FSMC shall include all costs it incurs in connection with its employees assigned to duty on the SFA's premises, including wages and benefits, as a Direct Cost of operations included in the Financial Obligation. iii. Responsibilities: refer to the Cost Reimbursable Cost Responsibility Summary and the FSMC/SFA Activity Responsibility Summary contained herein. b. Option II Check this box if the FSMC provides Management and the SFA provides Hourly Employees as stated below: i. The FSMC shall provide and pay a staff of its management employees assigned to duty on the SFA's premises for efficient management of the Food Service Program. The FSMC's management employees will be subject to the rules and regulations of the SFA while on the SFA's premises. However, the FSMC shall set the terms and conditions of employment for its employees. ii. The FSMC shall include all costs it incurs in connection with its employees assigned to duty on the SFA's premises, including wages and benefits, as a part of its Direct Cost of operations included in the Financial Obligation. iii. Responsibilities: refer to the Cost Reimbursable Cost Responsibility Summary and the FSMC/SFA Activity Responsibility Summary contained herein. FSMC Personnel: NJ State Approval ID: Page 18 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 c. Option III Check this box if the FSMC provides Management and both the FSMC and the SFA provide Hourly and/or Salaried Employees as stated below: FSMC Personnel: i. The FSMC shall provide and pay a staff of its management and operational employees assigned to duty on the SFA's premises for efficient management of the Food Service Program. The FSMC's employees will be subject to the rules and regulations of the SFA while on the SFA's premises. However, the FSMC shall set the terms and conditions of employment for its employees. ii. The FSMC shall include all costs it incurs in connection with its employees assigned to duty on the SFA's premises, including wages and benefits, as a part of its Direct Cost of operations included in the Financial Obligation. iii. Responsibilities: refer to the Cost Reimbursable Cost Responsibility Summary and the FSMC/SFA Activity Responsibility Summary contained herein. SFA Personnel: i. All other supervisory and non-supervisory food service staff shall be SFA employees. Such employees shall be supervised on the SFA's behalf by the FSMC's management employees; provided, however, the SFA shall retain the exclusive right to control the terms and conditions of the employment of such supervisory and non-supervisory employees, including, but not limited to, control over their hiring, firing, promotion, discipline, levels of compensation and work duties. ii. The SFA shall maintain accurate, timely, and detailed records of personnel and other payroll costs for its employees assigned to the Food Service Program, and may grant the FSMC access during regular business hours, to such books and records. iii. The SFA shall approvethe timely hiring of all SFA employees to fill vacant positions in order to minimize overtime wages. iv. Responsibilities: refer to the Cost Reimbursable Cost Responsibility Summary and the FSMC/SFA Activity Responsibility Summary contained herein. v. SFA Labor Expense: $ Indicate the dollar amount that is paid from Fund 60 and is part of the expenses for the program included on the Response and Projected Operating Statement Form 23. NJ State Approval ID: Page 19 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 SFA Personnel: i. All other supervisory and non-supervisory food service staff shall be SFA employees. Such employees shall be supervised on the SFA's behalf by the FSMC's management employees; provided, however, the SFA shall retain the exclusive right to control the terms and conditions of the employment of such supervisory and non-supervisory employees, including, but not limited to, control over their hiring, firing, promotion, discipline, levels of compensation and work duties. ii. The SFA shall maintain accurate, timely, and detailed records of personnel and other payroll costs for its employees assigned to the Food Service Program, and may grant the FSMC access during regular business hours, to such books and records. iii. The SFA shall approve the timely hiring of all SFA employees to fill vacant positions in order to minimize overtime wages. iv. Responsibilities: refer to the Cost Reimbursable Cost Responsibility Summary and the FSMC/SFA Activity Responsibility Summary contained herein. v. SFA Labor Expense: $ Indicate the dollar amount that is paid from Fund 60 and is part of the expenses for the program included on the Response and Projected Operating Statement Form 23. Staff Conversion: (Applicable to Option III only) i. The SFA shall designate if current SFA food service employees, including site and area managers, will be retained by the SFA or be subject to employment by the FSMC. Should the SFA want SFA employees to b e subject to employment by the FSMC, the SFA will complete the SFA Labor and Benefits section of the NJ Workbook for FSMC RFP (Form 372). The FSMC will complete the FSMC Labor and Benefits Form located in the Response and Projected Operating Statement (Form 23) and submit it with its proposal. ii. Should the SFA desire all food service positions to be filled by FSMC staff, the SFA reserves the right to require that current SFA food service employees be considered by the FSMC for continued employment on a fair trial basis. Those employees who do not meet the FSMC's standards and those in excess of the number required for efficient operation shall not be retained. iii. As SFA staff leaves, at the SFA discretion, the SFA may request that replacement employees be placed on the FSMC payroll. Should this occur, the FSMC will calculate the actual payroll cost based upon the employee's compensation and payroll costs. The FSMC will provide the SFA with a detailed monthly billing of all such costs and charges, which the SFA shall review, approve, and, if in order, pay. NJ State Approval ID: Page 20 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 Q. Bonuses and Incentives Complete the applicable option: The SFA: does not agree to bonuses and incentives being paid to the FSMC and/or SFA food service employees (if allowable) and included as part of the FSMC cost of operation in the Response and Projected Operating Statement (Form 23). agrees to bonuses and incentives being paid to the FSMC and/or SFA food service employees (if allowable) and included as part of the FSMC cost of operation in the Response and Projected Operating Statement (Form 23). The SFA must state below the type of bonuses and/or incentives allowed as well as the positions eligible to receive these bonuses and/or incentives. Positions listed should be employees directly responsible for the preparation of meals for the SFA. The Total Cost of bonuses and/or incentives for the year must be detailed on the Response and Projected Operating Statement (Form 23CR) Grand Total dollar amount allowed for all positions combined: $ 1,000.00 Eligible PositionType of Bonus/ Incentives Bonus Food Service Director NJ State Approval ID: Page 21 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 II Standard Terms and Conditions A. General Terms 1. The FSMC shall operate in conformance with the SFA's Policy Statement and Program Agreement with NJDA. 2. The FSMC shall be an independent contractor and not an employee of the SFA. The employees of the FSMC are not employees of the SFA. 3. The food service provided by the FSMC shall be operated and maintained as a resource to the SFA's students, faculty, and staff and not as a sourve of profit to the FSMC. 4. The FSMC shall comply with the rules, regulations, policies, and instructions of NJDA and the USDA, and any additions or amendments thereto, including, but not limited to 7 CFR Parts 210, 215, 220, 225, 226, 245, and 250; and 2 CFR Parts 200, 400, 415, 417, and 418 as applicable. 5. All income accruing to the food service program as a result of payments by children and adults, Federal and State reimbursements, and all other income from sources such as donations, catering, grants, loands, etc., shall be deposited and credited into the SFA's food service account. Any profit or guaranteed return shall remain in the SFA's non-profit food service account. This is a non-profit program and, as such, the SFA's food service account should retain a maximum balance of three (3) months average operating expenses as is required in 7 CFR 210.9(b)(2). 6. It is the responsibility of the SFA to develop a policy regarding Unpaid Meal Charges. Responsibilities of the SFA and FSMC regarding notification and collection of debt is indicated on the FSMC/SFS Activity Responsibility Summary contained herein. Anticipated Unpaid Meal Charges for SY2023-2024: $ 7. Guarantee: The documentation (budget) supporting the Guarantee is to be submitted on the Response and Projected Operating Statement (Form 23). The FSMC's guarantee (breakeven, return, or loss) dollar amount is documented on page 1 of the Response and Projected Operating Statement (Form 23). The estimated yearly income must support the stated guarantee. If the FSMC proposes a guaranteed return, loss, or breakeven, it must be unlimited. Guarantee options are listed below: a. Guaranteed Loss: The FSMC guarantees that the SFA's invoiced Financial Obligation as stated on the monthly operating statement for the current year shall exceed gross receipts for the current year by no more than stated and documented in the Response and Projected Operating Statement (Form 23). The FSMC agrees to reimburse the SFA for the amount by with the SFA's actual deficit for the current year is greater than the Guaranteed Deficit for the current year. b. Guaranteed Breakeven: The FSMC guarantees that the SFA's invoiced Financial Obligation as stated on the monthly operating statement for the current year shall, at a minimum, equal the SFA's documented gross receipts for the current year. c. Guaranteed Return: The FSMC guarantees that the documented gross receipts for the current year shall exceed the SFA's invoiced Financial Obligation as stated on the monthly operating statement for the current year by at least the amount stated and documented in the Response and Projected Operating Statement (Form 23). The FSMC agrees to reimburse the SFA for the amount by which the SFA's actual return for the current year is less than the Guaranteed Return for the current year. d. No Guarantee 5,000.00 NJ State Approval ID: Page 22 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 8. Guarantee Conditions and Assumptions: The FSMC's obligation to reimburse the SFA shall remain in effect only during the Current Year and is contingent upon the following conditions and assumptions remaining in effect for the current year. In the event one or more of the following conditions and assumptions does not remain in effect for the current year, the FSMC may adjust its Guarantee to the SFA. Documentation must be provided. a. Reimbursement rates for food service program meals will not be less than those stated in the RFP. b. The per meal commodity value of USDA donated foods offered will no be less than the per meal commodity value of USDA donated foods received during the prior year. c. The number of full-service days on which breakfast and lunch are served for the Current Year will remain materially consistent with the Estimated Minimum Number of Serving Days listed in section (h) below. The participation and number of service day estimates for the SFSP and CACFP shall be excluded from the Guarantee assumptions. d. The average daily student enrollment for the Current Year will remain materially consistent with the number stated in the NJ Workbook for FSMC RFP (Form 372). e. The number of students eligible to receive free and reduced-price meals compared to the total student enrollment will not change substantially from that provided in the RFP. f. The SFA will continue to receive, if applicable, the additional eight cents ($0.08) per meal reimbursement for each lunch meal served as authorized by the Healthy Hunger-Free Kids Act of 2010 and shall include such reimbursement in the calculation of Gross Receipts. g. The SFA will not require the FSMC to take an action which will cause the cost of wages and/or benefits for the FSMC's food service employees to exceed the levels set forth in the attached Response and Projected Operating Statement (Form 23). h. The selling prices of school breakfast, lunch, and after school snacks will be no less than the meal prices listed in the table below: NJ State Approval ID: Page 23 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 Paid Student Breakfast Price Estimated Minimum # Serving Days Paid Student After School Snack Prices Estimated Minimum # Serving Days Paid Student Lunch Prices 3.35 180 1.90 180 4.10 180 1.90 180 4.10 180 Middle/ Jr. High School (s) Elementary School (s) High School (s) NJ State Approval ID: Page 24 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 i. The SFA will not allow students to leave campus for meal periods or receive delivery of commercial foods on campus during meal periods except as already stated and allowed at the time of the submission of the FSMC's proposal. j. The SFA will not block schedule during lunch periods not already so scheduled at the time of the submission of the FSMC's proposal, unless the possibility of block scheduling is noted in the RFP. k. There will be no changed in Federal or State regulations which cause financial impact to the Food Service Program. 9. The SFA and the FSMC agree that this is neither a "cost-plus-a-percentage-of-income" nor a "cost-plus-a-percentage-of-cost" contract in accordance with 7 CFR 210.16(c). 10. The SFA shall retain control of the Child Nutrition (CN) programs covered under this contract, the food service account and the overall financial responsibility for the CN programs. The SFA shall not relinquish this, or any accompanying responsibility, to the FSMC. 11. The SFA shall establish all selling prices, including price adjustments, for all reimbursable and non-reimbursable meals, milk and a la carte (including vending, adult meals, contract meals, and catering) prices. (Exception: Non-pricing programs need not establish a selling price for reimbursable meals and/or milk.) These prices shall not be established by the FSMC. 12. The FSMC shall cooperate with the SFA in promoting nutrition education and coordinating the SFA's food service with classroom instruction. The FSMC shall comply with the SFA's Local Wellness Policy, including the nutrition guidelines, as required. 13. The SFA may make reasonable requests of the FSMC with respect to the improvement of the operation of the food service program. 14. The SFA reserves the right to add or delete locations of food service from the list of schools included in the RFP as conditions may change. It is duly noted by the SFA that such action may result in a material change which will require rebidding for the services provided under this contract. The SFA shall consult with its legal counsel in making this determination. 15. The FSMC shall make substitutions in the food components of the meal pattern for students with disabilities when their disability restricts their diet and for non-disabled students who are unable to consume regular lunch because of medical or other special dietary needs. Substitutions shall be made on a case-by-case basis when supported by a medical statement with the required information. There will be no additional charge to the student for such substitutions. In the event any of the foregoing conditions and assumptions are not met during the Current Year, the FSMC’s obligation shall be reduced by the amount of any documented increase in the SFA’s total food service costs or reduction in gross receipts which is attributable to the changes in such conditions and assumptions. NJ State Approval ID: Page 25 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 19. No provision of this contract shall be assigned or subcontracted without prior written consent of the SFA and the DFN. 20. No waiver of any default shall be construed to be or constitute a waiver of any subsequent claim. 21. Any silence, absence, or omission from the contract and RFP specifications concerning any point shall be regarded as meaning that only the best commercial practices are to prevail, and that only materials (e.g., food, supplies, etc.) and workmanship of a quality that would normally be specified by the SFA are to be used. 22. The SFA shall be responsible for ensuring the resolution of USDA and DFN CN program review and audit findings. The FSMC shall assist in resolutions when requested. 23. This contract shall be reviewed and approved by NJDA prior to execution. 18. The FSMC shall comply with the provisions of the RFP terms and specifications, which are hereby incorporated into this contract. 17. This contract shall be construed under the laws of the State of New Jersey. Any action or proceeding arising out of this contract shall be heard in the appropriate courts of the State of New Jersey. 16. The SFA is solely responsible for fulfilling terms and conditions of all contractual agreements the SFA enters into in connection with the CN programs. B. Signature Authority 1. The SFA shall retain signature authority for all documents necessary to participate in the CN programs, including but not limited to the Policy Statement and Program Agreements, the Free and Reduced-Price Policy Statement, the Application Packet, the School Food Distribution Agreement, the Verification Report, as well as the on-line submission of contracts and other reports and any requests to NJDA to amend these documents. 2. The SFA shall retain signature authority for the Monthly Claim for Reimbursement and shall submit it in the School Nutrition Electronic Application and Reimbursement System (SNEARS). 3. The SFA is responsible for reviewing the data on the Edit Check Worksheet(s) prior to the submission of the monthly Claim for Reimbursement. C. Free and Reduced-Price Meals Policy; Point of Service Meal Count 1. The SFA shall be responsible for the establishment and maintenance of the free and reduced-price meals' eligibility roster. This may not be delegated to the FSMC. NJ State Approval ID: Page 26 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 3. The SFA shall be responsible for the completion, distribution, and collection of the parent letter and household application for free and reduced-price meals and/or free milk. This may not be delegated to the FSMC. 4. The SFA shall be responsible for completing Direct Certification matches in SNEARS within the State Agency's mandated timeframes, as required throughout the school year, for use to determine eligibility for free meals without obtaining a household application for free and reduced-price meals and/or free milk from a parent or guardian. This may not be delegated to the FSMC. 5. The SFA shall be responsible for verifying household applications for the determination of eligibility for free and reduced-price meals and free milk and all follow-up activities. The SFA will not disclose confidential student and/or household information to the FSMC, in accordance with 7 CFR Part 245. The SFA will provide the FSMC with a list of eligible students. This list will be updated by the SFA when changes occur in a student's eligibility status. These responsibilities may not be delegated to the FSMC. 6. The SFA shall be responsible for conducting any hearings related to eligibility determinations for free and reduced-price meals and free milk. This may not be delegated to the FSMC. D. USDA Donated Foods 1. The SFA shall retain title to all USDA federally donated foods. USDA donated foods will accrue only to the benefit of the SFA's non-profit food service and be fully utilized therein. 7 CFR 210.16(a)(6). 2. The SFA and the FSMC must adhere to the FSMC Authorization Letter signed by the SFA and FSMC regarding commodities chosen. 3. All USDA donated foods received for us by the SFA for the school year and made available to the FSMC shall be u sed in the SFA's food service. 7 CFR 250.50(a). 4. The SFA shall confirm the value of the donated commodities; e.g., credits or reductions on the invoice in the month of receipt. The values are to be based on the values at the point the SFA received the commodities from the New Jersey Department of Agriculture (NJDA), and on USDA commodity prices pertinent to the time period. 2. The FSMC shall implement an accurate point of service ("POS") meal and milk count using the meal counting system submitted by the SFA in its application to participate in the CN programs and approved by the DFN, as required in 7 CFR 210.7(c). Such meal and milk counting system must eliminate the potential for the overt identification of free and reduced-price eligible students in accordance with 7 CFR 245.8 and must prevent erroneous meal counts. The FSMC is responsible for ensuring meals are not being claimed for students when they are not in attendance at the time of the meal or do not receive a reimbursable meal. The SFA must have a system in place to monitor this. NJ State Approval ID: Page 27 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 5. The FSMC shall perform the following activities related to USDA donated foods and shall perform such activitie in accordance with the applicable requirements in 7 CFR Part 250.50(d): a. Prepare and serve meals; b. Order and/or select USDA donated foods in coordination with the SFA; c. Provide storage and inventory management of donated foods; d. Pay processing fees, submit refund requests to a processor on behalf of the SFA, or remit refunds for the value of donated foods in processed end products to the SFA; and e. Procure processed end products on behalf of the SFA. 6. The FSMC will use all donated ground beef and ground pork products, and all processed end products, in the SFA's food service. 7 CFR 250.53(a)(5). The FSMC will use all other donated foods or will use commercially purchased foods of the same generic identity, of U.S. origin, and of equal or better quality that the donated foods, in the SFA's food service. 7 CFR 250.53(a)(6). 7. In the procurement of processed end products on behalf of the SFA, the FSMC will comply with the requirements of Subpart C of 7 CFR Part 250 and with the provisions of the Distributing Agency or SFA processing agreements and will credit the SFA for the value of donated foods contained in such end products at the processing agreement value. The FSMC will not itself enter into the processing agreement with the processor. 7 CFR 250.53(a)(7), (8). 8. The SFA, the New Jersey Department of Agriculture Food Distribution Program (the "Distributing Agency"), the USDA, the Comptroller General, or their duly authorized representatives, may perform on-site reviews of the FSMC's food service operation, including the review of records, to ensure compliance with the requirements for the management and use of donated foods. 7 CFR 250.53(a)(10). 9. Upon termination of this contract, the FSMC shall return all unused donated ground beef, donated ground pork and processed end products, including those that may be stored off the SFA's premises, and shall also return all other unused donated foods that may be stored on or off the SFA's premises. 7 CFR 250.52(c). 10. The SFA shall ensure that the FSMC is in compliance with the requirements of 7 CFR Part 250 through its monitoring of the food service operation, and the SFA shall conduct a reconciliation at least annually, and upon termination of this contract, to ensure that the FSMC has credited it for the value of all donated foods recevied for use in the SFA's food service in the school year, including the value of donated foods contained in processed end products. 7 CFR 250.54(c). 11. The FSMC shall comply with the DFN Food Distribution Agreement for Distribution and Use of USDA Foods found in SNEARS on the NJDA website. NJ State Approval ID: Page 28 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 E. Crediting for and Use of Donated Foods 1. The FSMC shall credit the SFA for the full value of all USDA donated foods received for use in the SFA's meal service in the school year (including both entitlement and bonus foods); shall identify these USDA foods received on the billing invoice submitted to the SFA for payment; and shall maintain backup documentation to subtantiate the credit. The FSMC shall perform by disclosure such crediting monthly by deducting the value of the donated foods on the monthly invoice using a separate line item for: a. Warehouse Donated Foods b. Processed Donated Foods c. DOD Produce If for the school year immediately preceding the beginning of this contract, the SFA's food service was self-operating, the FSMC shall also credit the SFA for the value of all USDA donated foods in the SFA's inventory carried over from the preceding school year. 2. The FSMC shall credit the SFA for the value of USDA donated foods contained in processed end products if the FSMC is required to: a. Procure processed end products on behalf of the SFA, or b. Act as an intermediary in passing the donated food value in processed end products to the SFA. 3. In crediting the SFA for the value of USDA donated foods, the FSMC shall use the market value of donated foods as identified on the Monthly Warehouse Market Value Report from the New Jersey Department of Agriculture Food Distribution Program. In crediting for the value of USDA donated foods contained in processed end products, the FSMC shall use the annual pass thru value listed on the processor's approved SEPDS (State End Product Data Schedule) for the appropriate school year. 7 CFR 250.51(c). 4. In accordance with 7 CFR 210.21(f)(1)(iv), invoices must clearly display all applicable credits to the SFA. F. Inventory, Storage and Record Retention of USDA Donated Foods 1. The FSMC shall maintain adequate storage procedures, inventory, and control of USDA donated foods in conformance with the SFA's agreement with NJDA and will comply with the storage and inventory requirements for donated foods in 7 CFR 250.14. 2. The FSMC shall maintain accurate and complete records with respect to the receipt, use, disposition, storage, and inventory of all USDA donated foods. The FSMC will maintain records to document its compliance with the requirements relating to donated foods, in accordance with 7 CFR 250.54(c). The FSMC shall ensure that its system of inventory management does not result in the SFA being charged for USDA donated foods. 7 CFR 250.53(b). 3. The SFA and the FSMC shall maintain the following records relating to the use of donated foods, with the exception of (d), which applies to the FSMC only: a. The donated foods and processed end products received and provided to the FSMC for use in the SFA's food service. NJ State Approval ID: Page 29 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 G. Contract Renewal 1. All contract renewals shall be for a period of one year beginning July 1st and ending June 30th, with mutual agreement between the SFA and the FSMC. Renewal contracts cannot be effective prior to the date of final approval by the DFN and execution by both parties. 2. The SFA and the FSMC may negotiate at the end of each one-year contract period for a cost increase. Any price change included as part of a renewal shall be based upon the price of the original contract as cumulatively adjusted pursuant to any previous adjustment or renewal, and shall not exceed the change in the Index Rate (as defined in Public Schools Contract Law, N.J.S.A. 18A:18A-1 et seq.) for the 12 months preceding the most recent quarterly calculation available at the time the contract is renewed, which is the date of the Board Meeting approving the FSMC contract renewal for Public and Charter Schools and/or the date when the renewal is signed by the SFA for Non-Public Schools. All other terms and conditions of the contract shall remain substantially the same. 3. Renewal year contracts are contingent upon fulfillment of all contract provisions. If the DFN determines during an Administrative Review, Procurement Review, audit, or other program review that the FSMC is not meeting contractual obligations and is responsible for non-compliance of program regulations, the DFN may decline to approve a renewal contract until it can be demonstratied that the FSMC is capable of meeting contractual obligations and complying with program regulations. H. Contract Renewal Assumptions The contract renewal is based upon existing conditions remaining the same and the following assumptions: 1. The SFA's policies, practices, and food service requirements will remain materially consistent throughout the contract renewal term. The term "materially consistent" shall mean that a change does not (1) materially increase the FSMC's cost of providing management services, or (2) materially decrease the net revenue derived from the food service operation. 2. Legislation, regulations, and reimbursement rates that create changes in the school lunch program will be enforced on their effective date. 3. Usable USDA commodities of adequate quality and variety required for the menu cycle, valued at an amount set forth by the USDA per meal pattern for the contract renewal term, will continue to be available. 4. The Federal meal reimbursement rates in effect will remain materially consistent throughout the contract renewal term. 5. Meal components and quantities required by any of the CN programs selected in this RFP/Contract to operate will remain consistent in contract renewal years. 6. Service hours, service requirements and the type and number of facilities selling food and/or beverages on the SFA's premises will remain materially consistent throughout the contract renewal term. b. Documentation that the FSMC has credited the SFA for the value of all donated foods received for use in the SFA's food sercice in the school year, including the value of donated foods contained in processed end products. c. The actual value of donated food received and credited. d. The FSMC must maintain documentation of its procurement of processed end products on behalf of the SFA, as applicable. NJ State Approval ID: Page 30 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 I. Health Certifications 1. The SFA shall maintain all applicable health certifications on its facilities and shall ensure that all state and local regulations are being met by the FSMC preparing or serving meals at any SFA facility. 7 CFR 210.16(a)(7). All certifications shall be posted in a prominent place within the Food Service Facilities. 2. The FSMC shall maintain state and/or local health certifications for any facility outside the SFA in which it proposes to prepare meals and shall maintain this health certification for the duration of the contract as required by 7 CFR 210.16(c)(2). 3. The FSMC adhere to the Food Safety Plan implemented by the SFA for the preparation and service of school meals, using a Hazard Analysis and Critical Control Point (HACCP) system. 4. The FSMC agrees to allow at least two health inspections to be conducted by the New Jersey Department of Health at every site involved in school meal preparation and/or service. 5. The SFA shall immediately correct any problems found as a result of a health inspection. The FSMC must support the SFA and cooperate with all required corrections. J. Meals 1. The FSMC shall serve meals on such days and at such times as requested by the SFA. 2. The SFA reserves the right to cancel or shorten any school day. A twenty-four (24) hour notice will be given to the FSMC in non-emergency situations. 3. The SFA shall retain control of the quality, extent, and general nature of the food service. 4. The SFA reserves the right to change all but the senior high school lunch program from an "offer" program to a "serve" program at any time it deems to do so. 5. The SFA reserves the right to make any grade level changes it deems necessary. 6. The FSMC shall offer free, reduced price and paid reimbursable meals to all eligible childran participating in the CN programs. 7. The FSMC shall provide meals in the CN programs that meet the requirements as established in 7 CFR Parts 210, 215, 220, and if applicable, 7 CFR Parts 225 and 226. 8. The FSMC shall provide the specified types of service in the schools and/or sites listed on the completed NJ Workbook for FSMC RFP (Form 372). 9. The FSMC shall promote maximum participation in the CN programs. 10. The FSMC shall sell on the premises only those foods and beverages compliant with the Smart Snacks in School regulations and authorized by the SFA, and only at times and places designated by the SFA. A la Carte pricing shall be approved by the SFA. 7. The average daily student enrollment for the Renewal Year will be within two percent of what is stated on the NJ Workbook for FSMC RFP (Form 372) in the RFP. 8. The projected estimated minimum number of full feeding days noted in section A.7.(h) above will remain materially consistent in contract renewal years. NJ State Approval ID: Page 31 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 K. Books, Records, Reports, and Audits 1. The FSMC shall maintain and provide to the SFA, upon request, detailed (itemized) documented cost records (supported by invoices, receipts, etc.). The FSMC shall provide to the SFA a detailed accounting of meals supported by POS meal records, edit check worksheets and POS sales records to document meal equivalents no later than the tenth (10th) calendar day succeeding the month in which services were rendered. Participation records shall be submitted no later than the fifth (5th) working day succeeding the month in which services were rendered. The SFA shall perform edit checks on the participation records provided by the FSMC prior to the preparation and submission on-line of the Claim for Reimbursement. The SFA shall reconcile Edit Check Worksheets and daily/monthly meal counts against student attendance records and daily transaction worksheets/logs. 2. The FSMC shall maintain such records as the SFA will need to supports its Claim for Reimbursement. Records available for review must include: daily sales records (using the calendar month from 1st day of the month through the last day of the month), Edit Check Worksheets and any documents used to prepare the monthly reimbursement claim. Such records shall be made available to the SFA upon request. 3. The FSMC shall maintain and provide to the SFA detailed (itemized) documented cost records (supported by vendor invoices, receipts, certified payroll, etc.) and a monthly operating statement. 4. Should the SFA have any concern as to the FSMC's compliance with Federal and State laws and regulations as a result of internal audits, monitoring, an Administrative Review, or a Procurement Review conducted by NJDA, the SFA shall have the right to request an audit of the FSMC and to select the auditor(s) to perform the audit. The FSMC will be responsible for the payment of all costs that occur as a result of this audit. 5. The SFA and the FSMC must provide all documents required for the independent auditor to conduct the SFA's single, program, or financial audit. 6. The FSMC shall make all records available, upon request, to the SFA at any reasonable time and place for inspection and audit by representative of the SFA, State Agency, USDA and Comptroller General; and all records must be retained for a period of three (3) years from the date the SFA receives final payment for the fiscal year. In instances where audit or investigation findings have not been resolved, the records must be retained beyond the three-year period until resolution of the issues raised by the audit or investigation. When applicable, the FSMC shall abide by the five (5) year retention period and other requirementst of N.J.A.C. 17:44-2.2. 7. The FSMC shall not remove Federally or State required records from the SFA premises. Upon contract termination, the FSMC must leave copies of the food service program records at the SFA premises. 8. The SFA will be responsible for ensuring resolution of program review and audit findings. 11. No payment will be made to the FSMC for meals that are spoiled or unwholesome at the time of delivery, do not meet detailed specifications as developed by the SFA for each food component in the meal pattern, or do not otherwise meet the requirements of this contract. NJ State Approval ID: Page 32 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 e. The SFA and FSMC shall ensure that all food service employees meet, at all times, the SNP Professional Standards requirements. All trainings must be documented. The FSMC shall provide to the SFA, upon request, documentation showing the annual training hours and topics completed by each of its employees in order to comply with the School Nutrition Program continuing education and training standards requirements. (7 CFR 210.30) At a minimum: i. All program directors shall complete twelve (12) hours of continuing education and training each year; ii. All managers shall complete ten (10) hours of continuing education and training each year; iii. All staff that works an average of at least twenty (20) hours per week shall complete six (6) hours of continuing education and training each year; and iv. All staff that works less than twenty (20) hours per week shall complete four (4) hours of continuing education and training each year. v. The FSMC shall also ensure that all new School Nutrition Program Directors hired on or after July 1, 2015 meet the minimum education and prior training standards requirements based upon the size of the student enrollment as follows: 2,499 students or less; 2,500-9,999 students; and 10,000 or more students. f. The FSMC shall maintain its own personnel and fringe benefits policies for its employees. A copy of these policies must be submitted with the FSMC proposal. g. The SFA shall provide sanitary toilet and hand washing facilities for all employees. h. The SFA shall have the right to require the immediate removal of any FSMC employee(s), by the FSMC, for unsatisfactory performance or conduct considered by the SFA to be detrimental to the physical, mental or moral well-being of students, staff and faculty, provided the demand to do so is submitted in writing to the FSMC. In the event of the absence, termination, removal or suspension of any employee, the FSMC shall immediately restructure the food service staff without disruption of service. i. The SFA shall ensure that all SFA and/or FSMC personnel assigned to the food service operation in each school shall be instructed in the use of all emergency valves, switches, and fire and safety devices in the kitchen and cafeteria areas. L. Employees/Personnel 1. Staffing and Personnel Requirements a. The SFA Minimum Staffing Requirements page contained herein and shall include all required positions, the number of desired employees, and the labor hours, by location. All staffing patterns shall be mutually agreed upon. b. The FSMC has provided the SFA with a schedule of employees, positions, assigned locations, salaries, and hours to be worked as part of its proposal. Specific locations and assignments shall be provided to the SFA two full calendar weeks prior to the commencement of operation. The FSMC shall provide scheduling updates monthly. The FSMC shall not hire employees in excess of the number required for efficient operation. c. The SFA reserves the right to interview and approve the on-site food service manager/director. d. The FSMC shall be responsible for training all personnel, including SFA employed staff. NJ State Approval ID: Page 33 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 j. The use of student workers or students enrolled in vocational classes in the food service shall be mutually agreed upon by the SFA and FSMC. k. To the extent required by law, the FSMC shall apply to its employees and prospective employees assigned to work on SFA premises (the "FSMC Applicants") the standards of employability set forth under N.J.S.A. 18A:6-7.1 (the "New Jersey law") relating to background checks of prospective employees and the prohibition of employment of individuals with a record of conviction of certain enumerated offenses. In order to comply with the New Jersy law, all FSMC applicants will be required to submit fingerprints to the authorities delineated under New Jersey law in order for the requisite state and national background checks to be conducted. All costs associated with the background checks shall be the responsibility of the FSMC and/or the FSMC applicant. l. To the extent required by law, the FSMC shall comply with all applicable provisions of the New Jersey Anti-Bullying Bill of Rights Act-N.J.S.A. 18A:37-13.1 et seq., all applicable code and regulations, the SFA Anti-Bullying Policy, and the Prevention and Intervention of Harassment, Intimidation, and Bullying policies of the New Jersey State Board of Education. m. All FSMCs whose employees have regular contact with students shall comply with the Employment Requirements of school employees mandated in N.J.S. A. 18A:6-7.6 to 18A:6-7.10. n. The FSMC and SFA agree that neither shall hire food service supervisory employees of the other for the term of this contract and six (6) months thereafter. M. Monitoring 1. The SFA shall monitor the food service operation of the FSMC through periodic on-site visits to ensure that the food service is in conformance with USDA program regulations. If there is more than one site, the SFA shall conduct on-site reviews of the counting and claiming system used by each site no later than February 1st of each year as required by 7 CFR 210.8. 2. The records necessary for the SFA to complete the required monitoring activities must be maintained on-site by the FSMC and must be made available to the Auditor General, the USDA, NJDA, and the SFA upon request for the purpose of auditing, examination, and review. 3. The SFA shall complete the SFA/FSMC Monitoring Form (Form 330) at least twice during the school year. NJ State Approval ID: Page 34 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 N. Menus; Advisory Boards 1. The FSMC must comply with the 21-day cycle menu developed by the SFA for the programs included in this RFP and Contract (the exception to this would be the SFSP which only requires an 11-day menu). Changes made by the FSMC after the first 21-day cycle must be approved by the SFA. The SFA shall approve menus no later than two weeks prior to the intended meal service. 2. The SFA shall establish an advisory board composed of students, teachers, and parents to periodically meet and assist in menu planning. The FSMC shall participate in these periodic meetings as deemed appropriate by the SFA. O. Inventory, Equipment, Storage and Use of Facilities 1. The FSMC shall maintain ownership of the inventory of food and supplies. The SFA will pay for food and supplied as they are used. 2. The SFA will make available, without any cost or charge to the FSMC, areas of the premises agreeable to both parties in which the FSMC shall render its services. 3. The SFA reserves the right, at its sole discretion, to sell or dispense food or beverages, provided such use does not interfere with the operation of the CN programs and is not prohibited by Local Wellness Policies and State or Federal regulations. 4. The FSMC and the SFA shall inventory the equipment and commodities owned by the SFA at the beginning of the school year, including, but not limited to, silverware, trays, chinaware, glassware, and/or kitchen utensils. 5. The FSMC shall maintain the inventory and other opertating items necessary for the food service operation at the levels specified by the SFA. 6. The SFA will repair and maintain non-expendable equipment except when damages result from the use of less than reasonable care by the employees of the FSMC. 7. The FSMC shall provide the SFA with one set of keys for all food service areas secured with locks. 8. The SFA shall provide the FSMC with local telephone service. 9. The SFA shall furnish and install any equipment and/or make any structural changes needed to comply with Federal, State, or local laws, ordinances, rules and regulations. 10. All food preparation and serving equipment owned by the SFA shall remain on the premises of the SFA. 11. The SFA shall not be responsible for loss or damage to equipment owned by the FSMC and located on the SFA premises. 12. The FSMC shall notify the SFA of any equipment belonging to the FSMC on SFA premises within 10 days of its placement on SFA premises. 13. The SFA shall have access, with or without notice, to all the SFA's facilities used by the FSMC for purposes of inspection and audit. NJ State Approval ID: Page 35 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 16. The SFA, upon termination or expiration of the contract, shall conduct a physical inventory of all equipment and commodities owned by the SFA. 17. The FSMC shall surrender to the SFA upon termination of the contract, all equipment and furnishings in good repair and condition. 18. The SFA shall be responsible for any losses, including USDA donated foods, which may arise due to equipment malfunction or loss of electrical power not within the control of the FSMC. 15. If the SFA uses the facilities for extracurricular activities before or after the SFA's regularly scheduled meal service periods, the SFA shall return the facilities and equipment to the FSMC in the same condition as received, normal wear and tear expected. The FSMC may require an employee to be present and reimbursed by the SFA. 14. The FSMC shall not use the SFA's facilities to produce food, meals, or services for other organizations without the approval of the SFA. If such usage is mutually acceptable, there shall be a signed agreement, which will stipulate the fees to be paid by the FSMC to the SFA for such facility usage. NJ State Approval ID: Page 36 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 P. Purchases, Rebates, Discounts and Credits 1. The FSMC will serve as the procurement agent for the SFA. 2. The FSMC shall comply with Federal procurement regulations to ensure full and open competition and may not serve as a vendor and procure from itself. 2 CFR 200.318-320. 3. This contract shall not prevent the SFA from participating in food co-ops or purchasing food from vendors with whom the FSMC normally does not do business. 4. The FSMC shall ensure that its allowable costs are in compliance with Federal and State laws and regulations. 5. The FSMC shall fully disclose all discounts, rebates, applicable credits, allowances, and incentives it has received. Allowable costs will be paid to the FSMC net of these discounts, rebates and other applicable credits. 7 CFR 210.21(f)(1)(i). 6. The FSMC shall exclude all unallowable costs from its billing documents and certify that only allowable costs are submitted for payment and that records have been established that maintain visibility of unallowable costs, including directly associated costs in a manner suitable for contract cost determination and verification. 7 CFR 210.21(f)(1)(ii)(B). 7. The FSMC shall identify the amount and provide documentation of each discount, rebate, and other applicable credits on bills and invoices presented to the SFA for payment and individually identify and certify the amount as a discount, rebate, or in the case of other applicable credits, the nature of the credit. The FSMC shall report this information on the monthly invoice and operating statement in accordance with 7 CFR 210.21(f)(1)(iv). 8. To the extent that discounts, rebates and/or applicable credits are not previously credited to the SFA, the FSMC shall refund the amount of such discounts, rebates and/or applicable credits to the SFA subject to any necessary supplemental reconciliation between the FSMC and the SFA on the final operating statement provided by the FSMC to the SFA. 9. The FSMC shall maintain documentation of costs, discounts, rebates, and other applicable credits and/or alternate net pricing for individual items it procured from its commerical vendors, and shall furnish such documentation upon request to the SFA, State Agency, or USDA. 7 CFR 210.21(f)(1)(vi). 10. No expenditure shall be made from the non-profit school food service account that permits or results in the FSMC's receiving payments in excess of its actual, net allowable costs. 7 CFR 210.21(f)(2). The SFA is responsible for reviewing and verifying the monthly invoice and operating statement to ensure accuracy. NJ State Approval ID: Page 37 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 Q. Payments/Invoices 1. The FSMC shall submit an itemized monthly invoice at the end of each month documenting the SFA's Financial Obligation including food purchases, labor and benefits costs, supplies and paper goods, and Administrative/Management Fee as included in the definition of Financial Obligation and consistent with the on-site records. Costs, charges, and expenses must be mutually agreeable to the SFA and the FSMC and be allowed by State and Federal regulations. 2. The SFA shall make payments within 30 business days of the invoiced date. Invoicing and/or payments may be made more frequently if allowed by the SFA's School Board policy. The payment of interest, insufficient fund charges, and late fees from the non-profit school food service account is prohibited. 3. Payment on an invoice shall not preclude the SFA from making a request for an adjustment for any cost found not to have been in compliance with the provisions of this contract, the RFP specifications, and applicable Federal and State laws. 4. The FSMC shall submit a monthly operating statement to the SFA itemizing income based on meal counts and cash sales. The operating statement shall also itemize the monthly allowable expenses and the Administrative/Management Fee (SFA's Financial Obligation). 5. The SFA shall monitor the monthly invoice, monthly operating statement and meal counts to ensure accuracy. The SFA shall perform periodic and year-end reviews and comparisons of the monthly operating statement to the FSMC's submitted budget (as detailed in the Response and Projected Operating Statement (Form 23)). 6. Should Operating Statements and invoices, provided to the SFA by the FSMC, reflect any billing period other than the first day of the month through the last day of the month, a reconciliation by the SFA shall be done at year end. 7. All invoice and payment documentation shall be retained on-site by the SFA. 8. Upon termination of the contract, all allowable outstanding amounts shall immediately become due and payable. R. Catering 1. The FSMC may provide catering services for the SFA or outside groups when requested. These services shall not be provided to any outside group without prior approval from the SFA. 2. Catering is a non-program expense. As such, catering fees shal not be included in the monthly Financial Obligation. All catering costs will be in addition to the allowable costs on the monthly invoice and documented and billed to the SFA or sponsoring organization in a separate invoice. 3. The SFA or sponsoring organization will be billed by the SFA using cost documentation for the actual cost of food, supplies, and labor, and the mutually agreed upon FSMC and/or SFA fee(s), if applicable, for providing such service. The SFA is responsible for issuing all catering invoices. All payments shall be made to the SFA. 4. USDA commodities shall not be used for catering functions. NJ State Approval ID: Page 38 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 S. Buy American 1. The FSMC shall purchase, to the maximum extent practicable, domestic commodities or products which are an agricultural commodity produced in the United States (U.S.) or a food product processed in the U. S. substantially using agricultural commodities produced in the U.S. 2. The SFA reserves the right to review vendor purchase records to ensure compliance with the Buy American provision. 3. The FSMC shall be required to use alternative domestic foods first before requesting SFA approval to purchase non-domestic foods. 4. Exceptions to the Buy American requirement must be requested by the FSMC for approval by the SFA prior to a purchase when: a. The food or food product is not produced or manufactured in the United States in sufficient and reasonably available quantities of a satisfactory quality; or b. Competitive bids reveal the cost of a United States food or food product is significantly higher than the non-domestic product. 5. All exceptions must be pre-approved by the SFA and should be used as a last resort. 6. Requests for exceptions shall include: a. Alternative food and food product substitutes that are domestic and meet the required specifications, including: i. The price of the domestic food product alternative substitute(s); and ii. The availability of the domestic food product alternative substitute(s) in relation to the quantity ordered; and b. The reason for the exception (limited supply, lack of availability or price) including: i. The price of the domestic food product; and ii. The price of the non-domestic food product that meets the required specifications of the domestic food product. T. Sanitation 1. The FSMC shall place garbage and trash in the containers in the designated areas as specified by the SFA. 2. The SFA shall remove all garbage and trash from the designated areas. 3. The party responsible for cleaning the kitchen and dining room areas shall be as indicated in the SFA/FSMC Activity Responsibility Summary form contained herein. 4. The FSMC shall operate and care for all equipment and food service areas in a clean, safe, and healthy condition in accordance with the standards acceptable to the SFA and comply with all applicable laws, ordinances, regulations, and rules of Federal, state, and local authorities, including those related to recycling. 5. The FSMC shall comply with all local and state sanitation requirements in the preparation of food. NJ State Approval ID: Page 39 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 2. The SFA shall notify the FSMC of any delay in the beginning of the school day or the closing of the school(s) due to snow or other emergency situations. In the event of such an emergency, the SFA shall provide the FSMC with as much advance notice of the closure of delay as possible. 1. The SFA shall notify the FSMC of any interruption of utility service of which it has knowledge. U. Emergency Closing V. Non-Performance, Negligence, or Breach of Contract by the FSMC 1. In the event of the FSMC's non-performance under this contract and/or the violation or breach of the contract terms, the SFA shall have the right to pursue all administrative, contractual, and legal remedies against the FSMC and shall have the right to seek all sanctions and penalties as may be appropriate. 2. The FSMC shall reimburse the SFA the full amount of any meal over-claims and penalties assessed by the USDA and DFN which are attributable to the FSMC's negligence or violation of CN program regulations or breach of the contract terms, including those over-claims based on review or audit findings that occurred during the effective dates of the contract. W. Term and Termination 1. The SFA or the FSMC may cancel this contract for cause by giving sixty (60) days' written notification. 2. The SFA may terminate this contract at any time by giving sixty (60) days' written notification to the FSMC setting forth the reason and the effective date of termination. Upon such termination, the SFA and the FSMC shall make settlement of all amounts due hereunder within 60 days of the invoice date. X. Energy Policy and Conservation Act/Contract Work Hours and Safety Standards Act/Environmental Protection/Clean Air/Federal Water Pollution Control 1. The FSMC shall comply with the mandatory standards and policies relating to energy efficiency that are contained in the State energy conservation plan issued in compliance with the Energy Policy and Conservation Act. 42 U.S.C. 6201 2. The FSMC shall comply with the Contract Work Hours and Safety Standards Act (40 U.S.C. Chapter 37) as supplemented by U.S. Department of Labor regulations 29 CFR Part 5. 3. The FSMC agrees to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401 et seq.), Executive Order 11738, and Environmental Protection Agency regulations (40 CFR Part 15). NJ State Approval ID: Page 40 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 Y. Insurance 1. The FSMC shall be insured adequately to support the terms of the contract. The FSMC shall maintain the insurance coverage set forth herein for each accident. The insurance shall be provided by insurance companies authorized to do business in the state of New Jersey. A Certificate of Insurance of the FSMC's insurance coverage indicating these amounts must be submitted at the time of award. 2. The FSMC shall have in effect during all times under this agreement, comprehensive general liability insurance, including products and completed operations liability, contractual liability, and independent contractor's liability coverage and personal injury. Minimum coverage shall be $1,000,000 per incident/per person. a. Commercial General Liability - The FSMC shall provide a Commercial General Liability policy for general liability coverage for limits of not less that $1,000,000 per occurrence. Coverage shall be maintained without interruption from the date of commencement of the contract until the date of final payment. Enter the amount of coverage: b. Workman's Compensation - The FSMC shall secure and maintain for the life of this agreement, valid Worker's Compensation Insurance as required by law. Enter the amount of coverage: c. Vehicle Insurance - The FSMC shall secure and maintain during the life of this agreement, automobile liability insurance on all vehicles against bodily injury and property damage in the amount of at least $100,000 per person, $300,000 per occurrence. Enter the amount of coverage: 3. The SFA shall be named as additional insured on the General Liability and Automobile insurance policies. The FSMC must provide a waiver of subrogation in favor of the SFA for General Liability, Automobile, and Worker's Compensation. 4. The FSMC shall provide fire and theft insurance at its own expense to cover any risk created by fire and/or theft to its property located on the premises of the SFA. The FSMC further agrees to provide all necessary fire and/or theft insurance to cover clothes, garments and other articles owned by their employees. 5. The contracts of insurance shall provide for notice to the SFA of cancellation of insurance policies 30 days before such cancellation is to take effect. Insert additional insurance requirements, if applicable: 1,000,000.00 1,000,000.00 1,000,000.00 N/A Z. Summer Food Service Program SFSP (IF APPLICABLE) If this RFP is used to procure SFSP summer meals, the SFA's participation in the SFSP program must be indicated as either a program operating for SY 2023-2024 (SFSP 2023) or as a potential future program in a renewal year. If the SFA will be operating the SFSP for SY 2023-2024 (SFSP 2023), the Response and Projected Operating Statement (Form 23CR) SFSP section must be completed by all proposers. Consult with SFSP staff for all questions related to SFSP. NJ State Approval ID: Page 41 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 NOTE: Administrative/Managment Flat Fee or Cents per Meal Fee cannot increase above the Index Rate in a Renewal Year when a Potential Future Program begins to operate. 1. The SFA shall offer meals to all eligible children participating in the SFSP. 2. Meal Requirements: All meals served under this contract shall be unitized, with or without milk, and conform to the cycle menus upon which the proposal was based, and to menu changes agreed upon by the SFA and the FSMC. All meals served under the program shall meet the meal service requirements of 7 CFR 225.16(a), (b), and (c). 3. The FSMC will operate the SFSP as part of this Cost Reimbursable Contract. The cost of operation (including preparation, recordkeeping, and delivery of meals) must be documented as part of the Response and Projected Operating Statement (Form 23) and invoiced monthly to the SFA using a Monthly Operating Statement and invoice. 4. In accordance with 7 CFR 225.15(a)(3), the SFA shall maintain all management responsibilities of the SFSP. 5. The SFA shall be responsible for determining eligibility for all SFSP sites. 6. The SFA, as the SFSP sponsor, shall be responsible for conducting and documenting the required site visits of all sites for both pre-approval and during the operation of the program. 7. Subcontracting: The FSMC shall not subcontract for the total meal, with or without milk, or for the assembly of the meal. 8. Noncompliance: In cases of nonperformance or noncompliance on the part of the FSMC, the FSMC shall pay the SFA for any excess costs which the SFA may incur by obtaining meals from another source. 9. Bonding Requirements for SFSP Bonding and Performance guarantees are required for the SFSP and are in addition to the Bonding Requirement for this RFP per N.J.S.A. 18A:18A-24. The FSMC will comply with all bonding requirements mandated in 7 CFR 225.15(m)(5-7). a. SFSP Bid Guarantee: If the estimated SFSP value of the contract for which the FSMC proposal is submitted exceeds $100,000.00, the FSMC shall obtain a bid bond in the following amount, as determined by the SFA, and submit it along with its proposal. Insert Bonding Percentage: 5%-10% b. SFSP Performance Guarantee: If the estimated SFSP value of the awarded contract exceeds $100,000.00, the FSMC shall obtain a performance bond in the amount of 10% of the Total Expenses of the SFSP portion of the contract. This amount is calculated for the SFA and FSMC in the Response and Projected Operating Statement (Form 23) on page 1. This Bond will be furnished upon the final approval by the State Agency of the FSMC/SFA contract, but no later than 7 calendar days prior to contract commencement if the SFSP will operate in SY 2023-2024 (SFSP 2023). The performance bond shall be held for the duration of the SFSP meal service period. c. If the SFSP is a future program, the performance bond shall be provided prior to the time the program begins to operate and each year the SFSP operates thereafter. NJ State Approval ID: Page 42 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 d. Both the bid and performance bonds shall be from one of the surety companies listed in the most recent issue of the U.S. Department of Treasury Circular 570. Cash, Certified checks, letters of credit, and escrow accounts, are not acceptable substitutes for bid bonds. Contact the Summer Food Service Program Unit for more information at 609-292-4498. 5. The SFA and FSMC will operate the CACFP as part of this contract. The anticipated budget and cost of operation (including the cost of food, preparation, record keeping, and delivery of meals) must be documented on the Response and Projected Operating Statement (Form 23) and billed monthly to the SFA using a Monthly Operating Statement and invoice. 4. The SFA shall be responsible for ensuring that the food service operation conforms to all program requirements outlines in 7 CFR Part 226. 3. The SFA shall be responsible for the administration of the CACFP including: determining the eligibility of all CACFP facilities, submitting the reimbursement claim, and monitoring facilities. The SFA shall not delegate any CACFP management responsibilities to the FSMC. 7 CFR 226.15(c). 2. All meals served under this contract shall conform to the cycle menu upon which the proposal was based and to the menu changes agreed upon by the SFA and the FSMC. 1. The FSMC shall furnish food and non-food and milk products as specified in the RFP. The FSMC shall not subcontract for the total meal, with or without milk, or for the assembly of the meal. ** A charge to participating children may apply. Consult with CACFP staff for all required approvals and questions regarding reimbursement and pricing policies. * Served at no charge to participating children. 5. Outside-School-Hours Care Program (Not an "At Risk" Afterschool Meal Program) ** 4. Infant and Preschool Program (Not an "At Risk" Afterschool Meal Program) ** 3. Emergency Shelter-At-Risk Afterschool Meal Program * 2. Head Start Preschool Program Sponsored by the SFA * (b) Breakfast, Lunch, Supplement and Dinner for meals served on Saturday, school breaks and days when school is not normally in session to participate in School Nutrition Programs. "At Risk" Afterschool Meal Programs may participate in the Offer vs. Serve meal service option pursuant to either NSLP, 7 CFR Part 210, or CACFP, 7 CFR Part 226. (a) Dinners and Supplements served on school days and/or 1. "At Risk" Afterschool Meal Program * CACFP Programs are: If this RFP is used to procure CACFP meals, the SFA's participation in the CACFP must indicated as either a program operating for SY 2023-2024 or as a potential future program in a renewal year. If the SFA will be operating the CACFP for SY 2023-2024, the Response and Projected Operating Statement (Form 23) CACFP section must be completed by all proposers. Consult with CACFP staff for all questions related to CACFP at (609)984-1250 or CACFPProcurement@ag.nj.gov. AA. Child and Adult Care Food Program CACFP (IF APPLICABLE) NJ State Approval ID: Page 43 of 61End Date:Start Date: 07/01/2023 06/30/2024DE- 9707233 More information about the CACFP can be found at: https://www.nj.gov/agriculture/divisions/fn/childadult/food.html 8. Noncompliance: In cases...