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Questions & Answers for Food Service Management Services for 13 Elementary Schools

Food Service Management Company RFP 
Questions and Answers dated 5-10-16 

Question 1:
Section 1.3, page 2 Provides that bidder’s proposal should include “FSMC’s plan to renovate Elementary School satellite kitchen to stand alone production facilities at no cost to the Manchester School District”. Please clarify if the District intends to impose any limitation on the amount of an investment to be used to renovate the kitchens.
Answer: The 5 year Amortization cost would need to be covered by each program’s revenue.

Question 2:
Section VI Equipment:
Section 6.1 States the District shall not be responsible for any losses which may arise due to equipment malfunction or loss of electrical power not within the control of the FSMC. Question, will the District take responsibility of equipment malfunctions or loss of electrical power for equipment owned by the District i.e. freezers, refrigerators and break ins.
Answer: School Food Service program traditionally absorbs any such loss.

Question 3:
6.3 Equipment States the FSMC shall furnish and install any equipment or make any structural changes needed to comply with Federal State and Local Laws. Question, if the FSMC has to furnish equipment to comply with Federal, State and Local laws is this the expense of the FSMC or the District?
Answer: This expense will need to covered within existing School Food revenue.

Question 4:
6.5 States the FSMC shall be responsible for purchase of new or replacement equipment as needed. Is the FSMC responsible for the cost of any new equipment?
Answer: This expense will need to covered within existing School Food revenue.

Question 5:
6.5 states the FSMC shall account for all District owned equipment and protect it from pilferage or destruction. Question, is the FSMC responsible for the cost of District owned equipment if stolen by anyone and responsible if destroyed by anyone other than an employee of the FSMC?
Answer: The FSMC would be responsible for the cost of equipment damaged or stolen through FSMC’s negligence, otherwise the cost of replacement or repair would be included in the expenses needing to be covered by program revenue.

Question 6:
6.7 Equipment States the District shall be responsible for repairs, at a reasonable expense to all permanent fixtures such as lights, sewers, air conditioning, heating and all other electrical work not considered as being food equipment. Question, is the reasonable expense to fixtures lights sewers etc. an expense to the FSMC from the District, and if so is there a record of past expenses to review?
Answer: Yes these expenses need to be covered with Food Service revenue. Records are not available at the time of this posting, but the expense is reasonable and allowable.

Question 7:
Section VII Facilities
7.1 States the District shall furnish at a reasonable expense, space, light, heat, power, hot and cold water and other utilities as are necessary for the operation of the food services to be furnished hereunder. Question, what is a reasonable expense, and can you furnish the cost per school for budgeting purposes?
Answer: Exhibit I in the RFP contains the FY 2015 actual cost of these expenses that can be used as a budgeting estimate.

Question 8:
Section VIII Sanitation and Safety:
Section 8.1 States the District shall remove all garbage and trash from the designated areas at a reasonable expense to the FSMC. Question, what is a reasonable expense and please supply costs per school from previous year?
Answer: This cost is part of the expense referenced in the previous question.

Question 9:
Section IX Employees
9.2 States the FSMC is required to provide a fidelity bond for all employees. Question, is the FSMC responsible to provide a fidelity bond for its employees only?
Answer: Yes for FSMC employees only. 

Question 10:
Section XIV Financial Accounting, Reporting Systems and Records
Section 14.8 states the SAU shall designate by name and title, the employee whose responsibility it shall be to supervise and financially oversee the related operations of the FSMC. The monitoring shall be performed annually and at the expense of the schools affected. Question, is the monitoring a cost per school that will be charged to the FSMC and how will the cost be determined?
Answer: On going program monitoring will be done by the designated person and that expense is part of the expenses listed in
Exhibit I.

Question 11:
Schedule A Cost Responsibility Survey
Additional items, china, silver, glassware – original purchase to inventory level required for operation. Question, will District be supplying trays, silver etc. to all schools with ware washing capacity prior to start of school year?
Answer: Only to district operated schools currently utilizing such items.

Question 12:
Telephone local and long distance is a FSMC expense, will the FSMC be required to provide separate service or is this a charge from the District and if so what are the costs? Additionally, will the FSMC be required to provide internet access, or is this a charge from the District?
Answer: FSMC will utilize existing service, this expense estimate is detailed in exhibit I.

Question 13:
Schedule A Cost Responsibility Survey. Pest control is listed as a FSMC expense, is the FSMC required to contract the pest services, or is this a cost from the District and if so, what is the pest expense?
Answer: Cost is currently $20 per month per elementary school. This may change in the next school year. This expense is paid by the district and included in cost responsibility of FSMC.

Question 14:
Utilities is listed as a FSMC expense, can you provide a breakdown of the utilities expense per school from prior years?
Answer: FY 2015 actual expense are listed in Exhibit I, these can be used as a budgeting estimate.

Question 15:
Can you also provide the means for how the utility charges will be measured?
Answer: As identified in RFP addendum #1, sub meters will be connected to city buildings.

Question 16:
Dishwashing is listed as a FSMC expense. Is the FSMC responsible for any new dishwasher equipment, replacement of existing equipment and the upkeep of the equipment?
Answer: Yes

Question 17:
Equipment is listed as a FSMC expense. Is the FSMC responsible for any new equipment, replacement of existing equipment and maintenance and repair of equipment?
Answer: Yes

Question 18:
Exhibit B Elementary Employees listing April 2016. The list provides the employees name, school position, DOH, Hourly wage and hours per day. In order for the FSMC to properly prepare a proposal please provide the benefits and taxes cost per employee.
Answer: Cut and paste this link into your brower for requested documentation:

Question 19:
Exhibit I. District Expense Allocation by School. List provides total of District expenses. Are we to assume the expenses are shared by the percent of District total 49.73%? How will expenses be calculated for the 2016/2017 school year?
Answer: Elementary total estimate for FY 2015 was 46.18% of District total, excluding Parker Varney School. Percentages for 2016-2017 will be based on each elementary school percentage of revenue from FY2016.

Question 20:
There is $66,895.00 listed as contract, can you please let us know what that expense is.
Answer: This for pest control, armored car, and waste management .

Question 21:
There is $39,812.50 for Dietician, if FSMC has its own dietician, will the FSMC still be sharing this expense?
Answer: Only schools utilizing District Dietitian services will share this expense.

Question 22:
Addendum 1 and 2. Kitchen installation of Renovations states the installation/renovation contractor will need to abide by a standard city construction contract. This Contract will include various insurance standards, hours of work, and standard city warranties.
Question, please forward a copy of a Standard Contract for our review.
Answer: This can be provided at the time of vendor selection.

Question 23: States any construction/installation contractors should be prequalified by the City Facilitators Division. Can you supply a list of preapproved city contractors or the standard for approval?
Answer: This can be provided at the time of vendor selection.

Question 24:
(RFP, p. 2) Does the District currently run a Summer Food Service program in the elementary buildings? If so, what were the type and the total number of meals served last summer?
Answer: In summer 2015, FY 2016 summer meals were prepared and delivered from West HS as the Beech St. Commissary was not accessible due to major construction in the school building itself. All summer meals are unitized packaged meals served by program staff. No food service personnel work at the summer sites, only at the commissary. This has been the procedure for a number of years.
The high school summer school has alternated in recent year between central HS and West HS and has been a self-prep site staffed by employees from those schools. Summer revenue for elementary schools in FY 2016 was $108,583.
Cut and paste this link into your browser for requested documentation for the meals served totals and program dates for summer 2015: 

Question 25:
(RFP, p. 5) Section 4.6 and 5.2, stipulates that the District expects a break-even or better operation, however Schedule E allows for an “annual subsidy”. Please clarify the District’s financial expectations and whether the FSMC will be able to retain their management/administrative fees under a guaranteed subsidy budget.
Answer: The District expects a break even from the school food service program, the District does not subsidize the food service program.

Question 26:
(RFP, p. 9) Please provide a list of the commodities that have been ordered and the amounts that will be available for use in the elementary buildings.
Answer: We have not been provided a list of available commodities for 2016-2017, we will be notified in August. We currently receive all the elementary commodities at Beech St. for further processing and daily distribution, some items such as canned fruit, raisins, and fresh fruit are distributed in larger quantity to the service kitchens. The State distribution section will deliver to individual schools provided that request is made at the time the District files the commodities agreement for 2016-2017. The elementary School commodities allocation in the current year is $212,177. Cut and past this link into your browser for the requested list for allocations in the current school: 

Question 27:
(RFP, Schedule A and Exhibit I) Some of the expenses that are detailed in Exhibit I are listed as an FSMC expense in Schedule A (i.e. postage, utilities, printing, repairs, etc.). Is the District planning on continuing to pay the expenses listed in Schedule I?
If so, are these expenses to be part of the FSMC Schedule E Operating Statement? Are we to assume that the elementary buildings are to be budgeted 49.73% of these expenses? Would the District consider issuing a new Schedule E that has the District Expenses clearly identified?
Answer: The district will pay these expense and they will be included as part of the expense to be covered by Elementary School revenue.
Exhibit I elementary expenses minus those for Parker Varney School represent 46.18% of District paid expenses. Amounts shown in this Exhibit are actual from FY 2015. Please enter a total in the miscellaneous line on the Schedule and attach a separate listing sheet.

Question 28:
(RFP, Exhibit B) If the District wishes the cost of the District employees to be part of the FSMC Schedule E Operating Statement, please provide the total anticipated cost of the hourly employees (wages, benefits, taxes and retirement).

            a.) (RFP, Exhibit I) Are all the salaried positions listed in Exhibit I going to be part of the food service budget next year if the elementary             buildings are managed by a FSMC? Does the District want a portion of these salaries part of the FSMC Schedule E Operating                           Statement  (49.73%)? If so, please provide the positions and their respective payroll expense (salaries, taxes, benefits and retirement).
Answer: Exhibit I salaried employee costs to be allocated to FSMC at 46.18% for all elementary schools or each schools percentage share as indicated.

            b.) Would the District consider issuing a new Schedule E that also has the District Labor Expenses clearly identified?
Answer: Please enter a total in the district line on the Schedule and attach a separate listing sheet.

            c.)Are there any other payroll costs that will be charged to the food service program, i.e. the cost of payroll processing for the District’s               food service employees? If so, please advise the total annual cost of payroll processing.
Answer: There is no payroll processing cost assessed to the food service program.

Question 29:
Please confirm that the $300,000 for the FFVP is not included in the elementary school revenue in the RFP.
Answer: The $300,000 for the FFVP is not included in the elementary school revenue in the RFP.

Question 30:
Please confirm the annual fee for Mosaic that is to be charged to the food service program.
Answer: MOSAIC fee is currently $710 per school for subscription and $174.25 per station. Fee for 2016-2017 has not been established at this time.

Question 31:
Please provide a three year history of repair/maintenance/equipment replacement costs charged to the program.
Answer: See attached sheets. Only 2 years is currently available, others records are archived off site.

Question 32:
Please clarify the District’s intent in relation to the delivery drivers and vehicles if the school(s) becomes a cooking site and no longer is a satellite site. Does the District require that FSMC to have their own vehicles, whether for commodity distribution, food distribution from Beech or satellite from Beech?
Answer: The status of delivery drivers and vehicles will be determined based on the number of schools contracted and the District’s overall need.

Question 33:
It is unclear whether or not the FSMC would deal with any cash reconciliation. It is our understanding that currently, each school prepares a deposit, it is picked up by the driver and taken to the administration building. From there an armored service picks it up and deposits. Should the FSMC assume that process will continue? If so, who will be responsible for the armored car charges? If the FSMC will be responsible, please advise the annual cost of the armored car service.
Answer: Current system for cash deposits will continue. The cost of transport and processing to be allocated to schools involved. Our current contract with Loomis carries a pick up fee of $52.95 per day and a monthly fuel charge and insurance fee that breaks down to approximately $5.56 per day for the entire district.

Question 34:
Currently, the District driver picks up daily cash from the schools and takes the cash to the central office. Who will pick up the daily cash once the schools are outsourced to a management company?
Answer:   See answers to previous 2 questions.

Question 35:
The RFP states that all kitchens that are renovated or receive new equipment will require a sub-electric meter. If the FSMC is replacing a broken or non-repairable refrigerator or hot box is a sub-electric meter still required?
Answer:  Yes, it is the Districts intention to monitor power usage by kitchen facilities.