Summer food service program for children

              Contents
Contents
Page
1 Introduction
3 Selecting a Company
4 Registration
6 Information for Bid and Contract
7 Bid Procedure
11 A warding the Contract
12 Planning and Operating the Program
17 Assistance Provided by the
Small Business Administration
18 Meal Requirements
Revised March 1981
Rules for acceptance and participation in this program are the same for
all, without reg~rd to race, color, or national origin.
Program
Basics
1
Introduction
The Food Service Management Company .Handbook is a guide for food
service management companies that participate in the Summer Food
Service Program for Children and for sponsors contracting with a food
service management company. Although the majority of sponsors prepare
their own meals, a significant number contract with a commercial vendor
to provide their food service. This handbook is to help both sponsors and
vendors provide quality food service in this program.
Program Background.
The Summer Food Service Program (SFSP) for Children provides nutritional
help to children 18 years of age or younger. These children would
otherwise be deprived of the food assistance they ·receive during the school
year under th~ National School Lunch and School Breakfast Programs.
Certain people over 18 years of age are also eligible if a State or local
educational agency determines that they are mentally or physically handi­capped.
They must also be participating in a public or private nonprofit
school program that was established for the mentally or physically handi­capped.
Summer programs are organized and operated by public and private non­profit
institutions. They are. set up to benefit children from areas in which
at least one-third of the children are eligible, under that State's family size
and income standards, for free or reduced-price school meals.
Sponsors may serve summer program meals at residential summer camps,
nonresidential day camps, and regular sites. All camp programs must offer
a continuous schedule of organized cultural or recreational activities for
enrolled children. Such camps may serve up to four meals daily. Sponsors
that serve meals at sites where the enrolled children are primarily from
migrant families may also serve up to four meals daily under the SFSP.
Regular sites are only allowed to serve up to two meals daily. If such sites
provide only one meal service each day, it may be either breakfast, lunch,
or a snack. If such sites provide two meals daily, one meal must be a lunch
and the second meal may be either a breakfast or a snack.
Sponsors for the· SFSP may include, but are not limited to, agencies of city
governments, county and municipal school systems, recreational groups,
church~s, and social service organizations. The summer program is geared
to operate primarily during school summer vacation periods. However, this
program also provides meal services in situations where schools operate on
a continuous school calendar. As in all federally financed programs, discri
mination against any child because of race, color, or national origin is
prohibited.
2
Introduction
Organi­zational
Structure
The Summer Food Service Program is administered through an agency of
the State government or by a Regional Office of the United States
Department of Agriculture's (USDA's) Food and Nutrition Service (FNS).
The administering agency deals directly with sponsors operating within the
agency's geographic domain. It also helps sponsors plan and operate their
programs. During the duration of the summer program, the administering
agency will visit the sponsor and sites and may make suggestions to assist
in program management. It will provide whatever technical assistance the
sponsor may need to ensure smooth operation of the program.
A prospective sponsor must demonstrate to. the Satisfaction of the admin­istering
agency that the sponsor has the necessary financial and admini­strative
responsibility to meet program objectives and comply with pro­gram
regulations. The actual meal service may take place at one or more
sites operating under the responsibility ot the same sponsor.
Administrative and financial responsibility cannot be delegated below the
sponsor level. The quality of meal service, as well as the conduct of site
personnel, reflects · directly upon the sponsor's performance.· Any spon­soring
organization that wishes to remain eligible for program participation
must be primarily cpncerned with the quality and quantity of sites, the
conduct of site and sponsor personnel, and the quality of the meals it
serves. Food service management companies that have contracted or
intend to contract with a sponsor to serve meals for the summer program
should also realize that they must provide meals that comply with both
SFSP regulations and their contract with the sponsor. Program monitors
will help the sponsor ensure that t~e program functions properly at each
site. All participating sponsors are subject to audit by USDA's Office of
the Inspector General (OIG) and by the United States General Accounting
Office (GAO).
This Food Service Management Company Handbook is a guide for both
sponsors and food service management companies. Although some material
in the handbook may be of more importance to one group than the other,
both food service management companies and sponsors should be familiar
with all of the information. A successful vending operation depends on
both parties fully understanding their mutual responsibilities in the pro­gram.
Sponsors or food service management companies should be aware of other
summer program handbooks that are available. Other handbooks and their
uses are:
Administrative Handbook (FNS-206)-0utlines in detail how a sponsor
should plan and apply for the summer program. It explains the sponsor's
responsibilities for training, recordkeeping, and monitoring.
Selecting A
Food Service
Management
Company
3 .
Selecting a Company
Sponsor Meal Preparation Handbook (FNS-207)-Provides information to
sponsors who prepare their own meals. It includes important information
on meal requirements and sample menu patterns.
Monitor's Handbook (FNS-179)-0utlines specific responsibilities of sponsor
personnel who monitor the summer program • .
Site Supervisor's Guide (PA-1179)-0utli.nes the responsibilities of a site
supervisor and includes information on recordkeeping and meal service.
The term "food service management companies" includes commercial com­panies
that prepare meals using school facilities, the sponsor's facilities,
and their own facilities. Public schools that use their own facilities to
prepare meals are included in this definition. Excluding them would imply
that sponsors could not contract with schools to prepare meals.
Selecting a Company
There are several factors that can influence a sponsor to contract for
meals with a food service management company. These factors may
include limited personnel, a site that is unsuited for meal preparation, or a
large number of sites spread over a wide geographical area. ·
Before inviting food service management companies to bid on a program,
sponsors must contact their local school food service authority about the
possibility of using .school facilities to prepare meals, or of obtaining meals
under agreement with a school. Using the facilities of local public or
private schools to prepare or obtain meals offers the sponsor several
advantages. These schools often prepare large numbers of meals and
already have the facilities, staffing, and system for such a service. And
many schools are accustomed to preparing meals that meet USDA require­ments
if they participate in other Child Nutrition Programs.
When exploring a school's capability for meal service, sponsors must
consider whether or not an adequate delivery service to sites can be
established. This delivery service need not be prohibitive in CO$t, but it
must meet local health and sanitation requirements.
Sponsors that can use local school food service facilities must enter into a
written agreement with the school. If contracting with a local school is
not possible, sponsors may contract with a food service management
company to prepare and deliver meals. In fact, a sponsor may employ a
food service management company to operate its entire food service~
Only food service management companie$ that register with the admin­istering
agency may be used. A list of registered companies should be
obtained from the administering office as soon as possible.
4
Registration
Food Service
Management
Company
Registration
Application
Information
No sponsor may, however, contract out the management responsibilities of
the SFSP such as monitoring, enforcing corrective action, or preparing
program applications. The sponsor remains legally responsible for seeing
that the food service operation meets all requirements specified in the
agreement they sign with the administering agency. ·
Begiatration
All food service management companies are required to register with a
State as a prerequisite for participation in that State's program. A school
which acts as a food service management company and a food service
management company which has an exclusive contract with a school for
year-round service (and no contracts with other s·ponsors) are not required
to register within the State. This requirement helps ensure that only
qualified food service management companies contract for services under
the SFSP.
Each food service management company must submit an application for
registration to the administering agency for each State in which it plans to
operate under the SFSP. According to Federal regulations, the application
for registration must be submitted by March 15. It must include, at a
minimum:
* The company's name and mailing· address. The application must also
include any other name under which the company marketed its services
during the past 2 years and any other names the company currently uses;
* The address of any food preparation and distribution facilities that ' the
food service management company desires to have registered in that
State. This list must include addresses for the local officials who are
responsible for the operation of those facilities;
* A certification that those facilities meet applicable State and local
health, safety, and sanitation standards;
* The number of program meals each of those facilities is capable of
preparing in a 24-hour period;
* The records of company contract terminations, disallowances, and
health, safety, and sanitary code violations that occurred during the past
2 years in the State where the application is filed. Violations indude
both those that are related to prior SFSP participation and those not
related to the SFSP;
* The names of past and present company owners, directors, and officers,
and their relationship in the past 2 years (if any) to any personnel of a
sponsor or food service management company that participated in the
program;
Facility
Visit
Registration
Denial
6
Registration
* A statement that the food service management company understands
that it will not be paid for meals delivered to nonapproved sites, meals
delivered outside the agreed upon delivery time, and those meals not
meeting the meal quality standards that are part of the contract
between the food service management company and the sponsor;
* A certification that the food service management company will operate
in accordance with current SFSP regulations;
* A copy of a CPA audit report if an audit was performed of the food
service management company in the prior year;
* A statement as to · whether the organization is a minority busirress
enterprise in accordance with Part 225.17(cX2Xxi)(A)(B).
After receiving a food service management company's complete appli­cation
package, the administering agency must give the applicant a written
notice of its approval or denial within 30 calendar days.
The administering agency will ensure that a representative visits each of
the food service management company's preparation facilities before
registration approval.· This visit provides information that will help the
administering agency determine if the facilities are acceptable for pre­paring
the meals. If a facility was registered and complied with SFSP
regulations in the previous year an administering agency may choose not to
visit it.
The administering agency wil! review all applications for registration. The
food service management company will 1;>e registered only if the admin­istering
agency determines that the company has the administrative and
financial capability to provide meals under the SFSP. The food service
management company may be denied registration if it has:
- Submitted false information to the administering agency;
Not complied with bid, contractual, or regulatory requirements in pre­vious
years;
Significant health code violations that remain uncorrected upon rein­spection;
- Repeatedly failed to conform meal deliveries to meal orders;
- Repeatedly failed to make timely deliveries of meals;
- Delivered a significant number of meals that did not include the required
quantities of all meal components;
- Delivered unwholesome or spoiled food;
6
Information for
"Bid and Contract
Appeal
Procedures
- Failed to maintain adequate records;
- Unsuitable food preparation facilities;
- Any officer, owner, partner, or manager of the company who has been
convicted of a crime during prior service with an SFSP operation.
The administering agency must advise an applicant of the grounds on which
a denial was based. This notice of action must be in w~iting and must fully
describe the food service management company's rights and responsibilities
regarding an appeal of the denial. The same notice must be provided to a
registered company when their approved regis~ration is revoked by the
administering agency. Any company denied registration may appeal that
decision and request a hearing. The procedures for this action are
discussed in the following section.
To appeal the administering agency's denial of its application for regis­tration,
the food service management company must submit a written
request. This request must be sent within the administering agency's
established deadline, which will be from 1 to 2 weeks after receipt of the
notice. With the request, the food service management company must
include a photocopy of the administering agency's notice of denial.
The reviewing official will give written notice on the time and place of the
hearing to the food service management company and the administering
agency. This document must provide notice of the hearing at least 5 days
before it is to be held. The full procedure is outlined in Part 225.16 of the
program regulations.
Information for Bid and Contract
Administering agencies require all sponsors under their jurisdiction to use a
standard contract for meals provided by a food service management
company. These standard contracts may vary, according to different State
and local requirements. This document, called the "Invitation for Bid and
Contract," serves a dual purpose. It contains the specific information a
bidder needs to make an offer, and it also tells the bidder how to submit
the actual bid.
A sponsor that is a school with an exclusive contract with a food service
management company for year-round service or any sponsor that has total
contracts with food service management companies not exceeding $10,000
shall not be required to comply with, the competitive bid procedures. These
exceptions do not relieve the sponsor of the responsibility to ensure that
normally accepted bidding procedures are followed in contracting with any
food service management company. Schools and universities that parti­cipate
as summer sponsors and have an existing year-round contract with
food service management companies to prepare meals do not have to bid
competitively. However, existing contracts will have to be amended to
ensure that the contract meets the requirements listed in Section 225.17 of
the program regulations.
7
Bid Procedure
Pt4 Procedure
The administering agency must ensure that contracting and bidding meet
USDA requirements. The administering agency should provide whatever
technical assistance is needed to sponsors to ensure that the bid process
runs smooth! y.
All sponsors with contracts that will exceed $10,000 must adhere to the
competitive bid procedures and procurement standards set by SFSP regu­lations.
The standard bid procedure includes, among other requirements,
five basic steps:
1. Completing the invitation for bid package;
2. Publicly announcing all invitations for bid not less than 14 days before
bids are opened. Announcements must include the time and place of the
bid opening;
3. Notifying the administering agency at least 14 days before the bid
opening. The notification must include the time and place of the
opening;
4. Publicly opening all bids;
5. Submitting to the administering agency copies of all bids received and
their reason for selecting the food service management company chosen.
Once the sponsor has filled in its particular specifications in the standard
invitation for bid and contract, the document is referred to as the
invitation for bid (IFB). The IFB is the most important step in the process.
Sponsors must complete the estimated range of servings, decide on an
affordable and attractive menu, and ~omplete the site schedule. Sponsors
must supply the IFB to all companies responding to the public announce·
ment.
The sponsor's IFB must include:
1. A menu cycle;
2. Food specifications and meal quality standards;
3. A copy of the program(SFSP)regulations;
4. Nonfood items essential for conducting the food service.
8
Bid Procedure
The sponsor's invitation for bid must not:
1. Specify a minimum price;
2. Specify special meal requirements to meet ethnic or religious needs
unless such special requirements are necessary to meet the needs of the
children to be served;
3. Provide loans or any other monetary benefit, term, or condition to be
made to sponsors by food service management companies;
4. Nonfood items (except where such items are essential to the conduct of
food service).
The food service management company's bid in response to the IFB must
include:
1. A copy of the required health certificate;
2. Proof that the company is registered with the State.
If food service management companies submit a bid over $100,000, they
must submit a bid bond in an amount determined by the sponsor. The bond
should be between 5 per<;:ent and 10 percent of the value. of the contract
for which the bid is made. A copy of the bid bond must accompany each
bid. The bond must be from one of the companies listed in Department of
Treasury Circular 570, which is available from the Department of Treas­ury,
Fiscal Service, Bureau of Financial Operations, Washington, D.C.
20226.
It is important that the food service management company respond to the
IFB accurately and completely. Food service management companies must
bid on all the meals listed in the IFB and must bid on the menu cycles
included in the IFB. Food service management companies cannot be
candidates for assuming award of the contract unless they respond to every
requirement listed in the IFB.
The sponsor must fill in the following information in the IFB so bidders will
know exactly what the specifications of the bid include:
* Site Information
The sponsor must include a list of proposed site names, addresses, delivery
locations, and times. With this information, a bidder can estimate the cost
of delivery and the feasibility of meeting the sponsor's requirements.
* Menu Cycle
The sponsor must also attach an 11-day menu cycle that lists the types and
amounts of food in each meal. Program regulations specify minimum · meal
9
Bid Procedure
pattern requirements, but sponsors may improve upon these minimums to
increase the variety and appeal of menus. Sponsors may request approval
from the administering agency for variations from the meal requirements
only when necessary to meet ethnic, religious, economic, or nutritional
needs.
Food service management companies must provide unitized meals. This
means that meals must be individually portioned, packaged, delivered, and
served as a unit. Milk and juice may be packaged separately, but are
still considered part of the meal unit. Other variations of unitized meals
can be approved by the administering agency. Specifications should be
worded in such detail that all bidders will have an equal chance to compete
for the same menus. The specifications should also indicate under what
conditions substitutions may be made by the food service management
company if, during the course of the program, certain specified foods are
unavailable or become too expensive.
* Regulations
The sponsor must attach a copy of the SFSP regulations to the IFB and
must agree to operate the program according to the regulations.
* Meal Range Adjustments
In the past, actual participation under a given sponsorship frequently varied
from the estimate specified in the IFB. The contractor bases a bid on the
specifications and expects to be serving close to the number of meals listed
in the estimate. A sizeable discrepancy between estimated and actual
participation can increase or decrease the food service management
company's unit production cost. Therefore, the sponsor may estimate a
possible range of meals served per day. Food service management
companies must submit prices for each range the sponsor lists, remem­bering
that if the sponsor decreases the number of meals served, the cost
of the meals may increase. The range is provided to lessen the risk of
losses to the food service management companies in these cases. Sponsors
may increase or decrease the number of meal orders specified in the IFB
only after notifying the food service management company. Increases in
maximum meal service levels at sites receiving vended meals must be
approved by the ad ministering agency.
* Meal Requirements
As part of the IFB, the sponsor must provide the food service management
company with a copy of the meal requirements outlined in Part 225.21 of
the SFSP regulations. The sponsor must also provide a copy of the
minimum food specifications and model meal quality standards required by
Part 225.10(d) of SFSP regulations. Sponsors can get the regulations from
the administering agency.
10
Bid Procedure
Food Service
Management
Company Bid
Requirements
* Special Accounts
The administering agency may require sponsors to set up special accounts
at financial institutions. The sponsor must deposit any payments received
from the administering agency for operating costs in the special account.
Any checks drawn from this account must be authorized by both the food
service management company and the sponsor. This is to help ensure that
the company receives payment for the eligible meals they provide to the
sponsor's program.
There are several specific requirements food service management com­panies
must meet and several things they must include when submitting a
bid. These requirements are:
* Health Certification and Inspection
Food service management companies must have State or local health
certification for the facility(ies) they use to prepare meals for the SFSP.
The companies must ensure that health and sanitation requirements are
met at all times. In addition, the companies must ask local health
authorities or independent agencies to periodically inspect .the meals they
serve to determine bacteria levels. These levels must conform to the
standards applied to Qther food service establishments in the area.
Food service management companies should also be aware that the admin­istering
agency may send health inspectors to check preparation facilities
and meals. This inspection is independent of the one the food service
management company provides. The companies must submit health certi­fication
as part of the bid.
* Records
Food service management companies must maintain records (supported by
invoices, receipts, or other evidence) that the sponsor needs to meet
program responsibilities. Companies must report to the sponsor at the end
of each month, at a minimum. The food service management company
must keep the books and records concerning the sponsor's food service
operations for 3 years from the day the company receives final payment.
Representatives of the administering agency, USDA, and the United States
General Accounting Office may request an inspection and audit of these
records at a reasonable time and place.
* Meal Requirements
Food service management companies must deliver meals that rnt:!et the
meal requirements that are outlined in Part 225.21 of the SFSP regulations.
The meals must also meet the minimum food specifications and model meal
quality standards required by Part 225.10(d). Food service management
companies must assemble the meals as complete units with individually
portioned servings. Milk and juice may be packaged separately, but are
still considered part of the meal unit.
Contract
Responsibility
Selection
Criteria
Accepting
Bids
11
A warding the . Contract
* Subcontracts
Food service management companies may not subcontract with another
company for the total meal (with or without milk) or for assembling of the
meal. The variation between contracted and subcontracted meal prices is
an unnecessary expense. Subcontracting means the sponsor does not have a
contract with the company that prepares meals and, therefore, cannot
directly control the quality and supply of the meals.
It is important for the prospective food service management company to
realize that the contract is a private contract between the food service
management company and the sponsor. Neither USDA nor the admin­istering
agency has any jurisdiction in the reimbursement made to the food
service management company. Before contracting for the program, the
food service management company needs to assess the sponsor's capability
to meet the terms of the contract and needs to assess the sponsor's
capability to reimburse them for all meals that are properly delivered. If
applicable, the company should become familiar with the records. of a
sponsor in this program or other federally funded programs.
Awarding the Contract
Sponsors should consider many important points in awarding contracts.
Some are: the integrity of the cont'ractor; the contractor's financial and
technical resources; and the contractor's accessibility to other necessary
resources. Contracts may be made only with registered, responsible
contractors that possess the potential ability to perform successfully under
the specified terms.
Sponsors may take many other factors into consideration before they award
contracts. These include the food service management company's perfor­mance
in past food assistance operations; cost per delivered meal; ability
to meet all the specifications in the IFB; ability to increase or decrease
meal deliveries within a reasonable time frame; preparation facility and
the food service management company's proximity to the sites being
served; use of refrigerated delivery trucks; and ability to meet local health
and sanitation requirements. Sponsors are encouraged to use the services
of minority-owned companies.
The sponsor should award the contract at least 2 weeks before program
operations will begin to allow time for both the food service management
company and the sponsor to get ready. The sponsor must give to the
administering agency copies of all bids the sponsor received and the reason
it chose that particular food service management company.
All bids totaling $100,000 or more must be submitted to the administering
agency for approval before the sponsor can accept a bid. Any bids that
exceed the lowest bid must be submitted to the administering agency for
approval before acceptance, with an explanation of why that particular bid
was chosen. The IFB that the sponsor accepts will becorne the contract for
12
Planning and
Operating the Program
Performance
Bond
Award
Conference
Sites
Approved for
Food Service
Approved
Levels of
Meal
Deliveries
program operations between the sponsor and the food service management
company. The administering agency will keep copies of all contracts
between sponsors and food service management companies.
If a_ food service management company enters into a food service contract
with a sponsor for more than $100,000, a performance _ bond must be
obtained from surety companies {which are listed in the current Depart­ment
of Treasury Circular 570) in an amount determined by the admin­istering
agency. This amount must be no less than 10 percent nor more
than 25 percent of the value of the contract. The food service manage­ment
company must furnish a copy of the bond to the sponsor within 10
days of awarding of the contract.
After awarding the contract and before executing the contract, all sponsor
and food service management company representatives should meet to
discuss their mutual and individual responsibilities in the food service
program. In this meeting, which is called the award conference, the
representatives should review procedures for adjusting meal deliveries, the
cycle menus, food quality specifications, and meal packaging, as well as
sanitation requirements. The food service management company must also
be familar with all State and local health requirements, particularly those
concerning food preparation and meal delivery. Most vended meals are
packaged to prevent contamination. Thus, the greatest danger usually
results when meals are held too long or are stored under improper
temperature controls. Sponsors should also inform the food service
management company of the function of monitors, reviews, and statistical
monitoring if applicable in the operation of the SFSP.
Planning and Operating the Program
Sponsors should provide the food service management company with a list
of approved food service sites, along with the limit on the number of meals
that may be claimed for reimbursement for each site. It is likely that
some approved sites, for one reason or another, may have been canceled or
dropped from participation before the food service operations begin. A
new list should be provided to the food service management company in
plenty of time before it is to start the food service operations. The
administering agency should notify the company within the time limits
mutually agreed upon in the contract if any site on its delivery schedule is
being dropped or canceled.
The administering agency will set an approved level of meal service for
each vended site. These levels will be the maximum number of meals,
including any unplanned seconds, that may be served at a site ' at one meal
service. The sponsor can request that these levels be allowed to change
when participation fluctuates throughout the summer. Sponsors of vended
sites will receive a written confirmation from the administering agency of
the approved levels.
1
Adjusting
Meal
Deliveries
13
Planning and
Operating the Program
One of the most important topics for discussion in the award. conference is
the adjustment of meal deliveries. The sponsor should establish a system
for collecting information on attendance changes from its sites, translating
these changes into adjustments in the meal order, and communicating these
adjustments to the food service management company. In turn, the food
service management company should have an organized system for:
- Receiving orders for delivery adjustments;
- Documenting orders for delivery adjustments;
- Adjusting production levels, if necessary;
- Ensuring that delivery receipts are changed to reflect adjusted meal
orders (This is a particularly important responsibility.);
- Ensuring that adjusted meal orders for each site are correctly packaged
and loaded for delivery.
The food service management company's key personnel must be aware of
these responsibilities. For example, the food service management com­pany's
delivery personnel must understand that site supervisors cannot
. independently request more or fewer meals. These requests must be
channeled through the sponsor. Meal deliveries may be adjusted only by
the sponsor. As necessary, the sponsor must get approval from the
administering agency.
Attendance at sites will probably decrease during the summer, especially if
there is no organized activity at a site other than the food service. The
sponsor may be able to anticipate certain fluctuations in attendance (such
as local events that may interfere with site participation) and make
arrangements in advance with the food service management company to
adjust orders. For example, a consistent drop in attendance each Friday
could be handled by reducing the number of meals delivered for that day
only.
Whenever possible, meals can be transferred from a site with too many
meals to a site with a shortage. The sponsor'~ monitors should be aware of
the procedures for handling extra meals so they can assist site supervisors
in making tranfers or other arrangements.
During the summer, sites may cease food service operations on either a
temporary or permanent basis. Also, new sites may be authorized to
participate in the SFSP. Site deletions and additions may make changes ir.
delivery routes and production levels, and will require the food service
management company's cooperation. The sponsor is responsible for making
sure the food service management company is informed of any need for
such changes.
14
Planning and
Operating the Program
Planning
Delivery
Routes
Other
Considerations
Meal
Requirements
The food service management company must carefully plan delivery routes
and schedules and should review them with the sponsor. Sites without
adequate storage facilities must receive all meals within 1 hour of the
meal service. Delivery personnel for food service management companies
should become familiar with their routes before the SFSP starts to help
avoid confusion. The food service management company or the sponsor
should periodically evaluate ·and restructure the routes if deliveries for
some sites are consistently late. The food service management company is
responsible for ensuring that sufficient equipment is available to handle
such changes (for example, additional trucks, refrigeration, etc.).
Sponsors must plan a system for serving meals when the weather is bad, or
they must plan a system for canceling meal service at sites lacking
sheltered facilities. The food service management company should be
notified of these contingency plans.
Good communication is essential for smooth program operations. Even
with good management and good intentions, complaints about the food
service can arise. Food service management companies and sponsors
should establish a system for communicating and resolving complaints.
Experience indicates that problems can be most efficiently resolved when
both the sponsor and the food service management company designate
officials to reteive and respond to suggestions and complaints.
Program regulations mandate the minimum meal pattern requirements for
meals, which are listed at the back of this handbook. These requirements
are spelled out in Part 225.21 of SFSP regulations and should be included
in the IFB. The IFB and the contract should also contain food specifica­tions
and meal quality standards. Under the· provisions of the contract
between the sponsor and the food service management company, the
sponsor is liable only for the delivered meals that meet these requirements.
Similarly, the sponsor may receive payments from the administering
agency only for meals served that meet these requirements.
An effective quality control system is essential for verifying that meal
components meet the minimum quantity requirements. During food
preparation, the food service management company should regularly in­spect
and measure items to ascertain correct sizes and weights. Setting
production equipment for the desired specifications is no substitute for a
quality control system, because equipment settings may become distorted
during operation. Administering agencies and sponsors are responsible for
sampling meals· and disallowing payment for meals that fail to meet
minimum standards.
REMEMBER: The entire meal may be disallowed for reimbursement if any
component does not meet minimum standards.
Reimbursement
Statistical
Monitoring
Administrative
Reviews
15
Planning and
Operating the Program
Under the SFSP, a sponsor is reimbursed for complete meals that are
properly served to eligible children. Therefore, if sponsors do not meet
their responsibilities (such as ensuring that meals are eaten only onsite),
meals may be disallowed. This may not result in a loss of payment due to
the food service management company. However, the sponsor may be
unable to pay the food service management company if the administering
agency does not reimburse the sponsor.
The food service management company should understand that the sponsor
must pay for meals delivered by the food service management company in
accordance with the contract. Administering agencies and USDA are not
parties to such contracts. Federal reimbursement is based solely upon
program performance and is paid to the sponsor. Therefore, the food
service management company should make sure that it is informed of any
sponsor disallowances made by the administering agency, as such dis­allowances
may affect payment to the company. However, the admin­istering
agency may choose to allow sponsors to include the cost of the
disallowed meals in their claimed operating costs. This exception would
not apply to meals disallowed because they were served in excess of a site's
approved level of meal service.
Statistical monitoring procedures may be used by the administering agency
and the USDA's Office of the Inspector General as a management and
monitoring tool. Since the results of a statistical monitoring procedure
may be used to determine a sponsor's reimbursement, both sponsors and
food service management companies should be informed about how the
monitoring method operates. '
If statistical sampling reveals that the sponsor made an error, the admin­istering
agency may not reimburse the sponsor. In these cases, the sponsor
still remains responsible for reimbursing the food service management
company for meals that were delivered in accordance with the regulations
and the contract. The administering agency will be able to furnish sponsors
and food service management companies with additional information about
statistical monitoring methods.
During the course of .. 'le summer, the administering agency will conduct
administrative revie-w Jf the sponsor's program operations. The reviews
are designed to ensure that the sponsor's overall program is operating
according to requirements. The results of these reviews may affect the
amount of reimbursement a sponsor would receive and the payment to the
food service management company as well. The food service management
company should designate an official to be familiar with the total program,
particularly with the sponsor's responsibilities. For example, in addition to
reading the SFSP regulations and aids for the sponsor, the food service
management company's representatives may want to attend training ses­sions
sponsors arrange for food service personnel.
16
Planning and
Operating the Program
Sponsor
Disallowances
Food Service
Management
Company
Disallowances
Default of
Contract
Violations that would result in loss of the sponsor's reimbursement from the
administering agency (the sponsor is still responsible for paying the food
service management company) are:
* Consistently serving an excessive number of meals as seconds or having
an excessive number of meals left over;
* Allowing meals to be eaten offsite;
* Not serving meals as a unit;
* Servine: meals to nonprogram adults;
* Serving meals outside the approved time frames;
* Serving meals in excess of approved levels.
Violations that would cause disallowances in the food service mangement
company's reimbursement from the sponsor are:
* Delivering meals that are not unitized;
* Delivering meals that are wholly or partially spoiled;
* Delivering meals outside the designated delivery times;
* Delivering meals with components that are less than the required size or
weight;
* Delivering meals that are missing components;
* Changing menus or substituting components without the sponsor's prior
approval.
Sponsors may terminate the contract if the food service management
company does not comply with its terms. The sponsor will notify the food
service management company (and surety company, if a performance bond
is in effect) of specific instances of unsatisfactory performance. H the
food service management company does not immediately take corrective
action, the sponsor may request the surety company to provide another
food service management company, or the sponsor may negotiate another
contract on a competitive basis. H the sponsor decides to negotiate on a
competitive basis, it must contact severa.l food service management
companies for prices and try to choose the most qualified company at the
most economical price. The defaulting food service management company
(or surety company, if applicable) is liable for any difference in price
between the original price and the repurchase price.
Use of
Minority
Business
Enterprise
Use of Small
Business
Admini­stratiC>
n
Financial
Assistance ·
17
Assistance Provided by
the Small Business· Administration
In accordance with OMB Circular A-102 all sponsors are encouraged,
whenever possible, to procure services from minority business enterprises
on solicitation lists. If it is economically feasible, sponsors m9y wish to
divide their total procurement requirements into smaller tasks or quanti­ties
to encourage participation by minority business enterprises. They may
also want to establish delivery schedules that would help use the services
and assistance of the Community Services Administration, the Small
Business Administration, and the Office of Small and Disadvantaged
Business Utilization of the Department of Commerce.
A minority business enterprise is a business in which the management and
daily operations are controlled by a member or members of a minority
group. Such minority groups include Blacks, Hispanics, American Indians,
Alaskan Natives, and Aleuts.
The criteria for qualifying as a minority business enterprise participating in
the SFSP are: if a business corporation, at least 51 percent of the
corporation's voting stock must be owned by a minority member or a
minority group; or, in a partnership, at least 51 pe·rcent of the business
must be owned by a minority or minority group.
Aaaistance Provided by
the Small Buaineu A4miniatration
'
The Small Business Administration (SBA) is an independent Federal agency
established to provide assistance to all small businesses. The SBA provides
prospective, new, and established members of the small business commu­nity
with financial assistance, management training, and counseling. It
helps increase opportunities for minority people to start, strengthen, or
expand successful businesses. The SBA's policy is to extend the fullest
opportunity for minority and disadvantaged people to participate in the
small business sector.
Some areas in which the SBA may be able to help minority-owned food
service management companies improve or develop their businesses are:
Food service managment companies that may need money and cannot
borrow it on reasonable terms from conventional lenders may be able to
get assistance from the SBA's loan programs. However, by law, the SBA
may not make a loan if a -business is able to obtain funds from a bank or
other private source. The SBA may either participate with a bank or other
lender in a loan, or it may guarantee up to 90 percent of a loan against
loss. If the bank or other lender cannot provide funds using either of these
methods, the law provides that the SBA can consider lending the entire
amqunt as a direct governmental loan, if the funds are available. The SBA
loans may be used to help food service management companies purchase ·
equipment, facilities, and supplies.
18
Meal Requirem~nt~
Surety
Bonds
Management
and
Counseling
'Assistance
Meal
Patterns
BREAKFAST •.
Under the Summer Food Service Program, food service management
companies that submit bids over $100,000 and that enter into a food
service contract for over $100,000 must obtain bid and performance bonds.
The SBA makes the bonding process accessible to small and emerging
contractors that .find bonding unavailable to them. The SBA is authorized
to guarantee a qualified surety up to 90 percent of losses incurred under
bid payment bonds. The SBA can .also guarantee performance bonds that
are issued to contractors on contracts up to $1 million. Food service
management companies that anticipate problems in obtaining bid and
performance bonds for the summer program may be interested in contac­ting
the SBA for assistance.
The Small Business Administration places special emphasis on improving
the management ability of small business owners and managers. Accord­ingly,
small business specialists may be able to assist minority-owned food
service management companies with their management problems. They
may also provide counseling on the problems or concerns food service
managment companies may have in meeting requirements for the SFSP.
Minority-owned food service management companies should .contact SBA's
nearest field office for prompt assistance.
Meal BeCJ,uirementa
The goal of every Summer Food Service Program for Children should be to
serve nutritionally adequate and appetizing meals to children. Careful
planning is necessary to meet this goal. Meal requirements set for this
program assure well-balanced meals that supply the kinds and amounts of
food children need to help meet their nutrient and energy needs. The
following are minimum requirements for each meal:
Vegetables and Fruits
Vegetables and/or fruits
-or full-strength vegetable or
fruit juice
Or an equivalent quantity of any combination
of vegetable(s), fruit(s), and juice
Bread and Bread Alternates
Bread (whole grain or enriched)
Or Bread Alternates
(whole grain or enriched):
-cornbread, biscuits, rolls, muffins, etc.
-or cooked pasta or other noodle products
-or cooked cereal grains, such as rice,
corn grits or, bulgur
~cup
~cup
1 slice
1 serving
~cup
~cup
SNACK
(supplemental
food) ·
19
Meal Requirements
(whole grain, enriched, or fortified):
-or cooked cereal
-cold dry cereal
Or an equivalent quantity of a
combination of bread or bread alternate(sJ
Milk
Fluid milk
Meat and Meat Alternates (optional)
Lean rrieat or poul~ry or fish
Or Meat Alternates
-cheese
-or eggs
-or cooked dry beans or peas
-or peanut butter
Y2 cup
3/4 cup or ·
1 ounce
(whichever
is less)
1 cup
(~pint)
1 ounce
(edible por­tion
as served)
1 ounce
!large egg
Y2 cup
2 tablespoons
Or an equivalent quantity of any combination of meat or meat alternate(s)
Choose two of the following four components:
Meat and Meat Alternates
Lean meat or poultry or fish
Or Meat Alternates
-or cheese
-or eggs
-or cooked dry beans or peas
-or peanut butter
Or an equivalent quantity of any
combination or meat or meat alternate(s)
1 ounce
(edible por- .
tion as served)
1 ounce
!large egg
~cup
2 tablespoons
20
Meal Req~irements
LUNCH or
SUPPER
Vegetables and Fruits
Vegetables and/or fruits
-or full-strength vegetable or
fruit juice
Or an equivalent quantity of any combination
or vegetable(s), fruit(s), and juice
(juice cannot be served with mi:lk)
Bread and Bread Alternates
Bread (whole grain or enriched)
Or Bread Alternates
(whole grain or enriched):
-or cornbread, biscuits, rolls, muffins,
etc.
-or cooked pasta or other noodle
products
-or cooked cereal grains, such as
rice, corn grits, or bulgur
(whole grain, enriched or fortified):
-or cooked cereal
-or cold dry cereal
Or an equivalent quantity of any
combination of bread or bread alternate(s)
Milk
Fluid milk
Meat and Meat Alternates
Lean meat or poultry or fish
3/4 cup
3/4 cup
1 slice
1 serving
}l cup
3/4 cup or
ounce
\Whichever
is less)
1 cup
(}l pint)
2 ounces
(edible por­tion
as served)
21
Meal Requirements
Or Meat Alternates
-or cheese
-or eggs
-or cooked dry beans or peas
-or peanut butter
Or an equivalent quantity of any
combination of meat or meat alternate(s)
Vegetables and Fruits
(Must include 2 or more selections
for a total of 3/4 cup total):
Vegetables and/or fruits
-or full-strength vegetable or
fruit juice (may be counted to meet
not more than ~ of this requirement)
Bread and Bread Alternates
Bread (whole grain or enriched·)
Or Bread Alternates
(whole grain or enriched):
-or cornbread, biscuits, rolls, muffins, etc.
-or cooked pasta or noodle products
-or cooked cereal grains such
as rice, corn grits, or bulgur
Or an equivalent quantity of any
combination of bread or bread alternate(s)
Milk
Fluid milk
2 ounces
2 large eggs
. 1 cup
4 tablespoons
· 3/4 cup total
1 slice
1 serving
~cup
~cup
1 cup
(~pint)
v U.S. GOVERNMENT PAINTING OFFICE: 1981 340-932/FMS-71