Accept the Piggyback of Invitation to Bid #11-085-DR, USDA Bulk Commodity Processing (Tomato Paste) Between Red Gold and the District School Board of Pasco County (Business Division) Added Attachment

Commodity processing allows state distributing agencies and eligible recipient agencies, such as school districts, to contract with commercial food processors to convert raw bulk USDA commodities into ready-to-use end products.  The district will use this piggyback to purchase ketchup packets and marinara sauce.  With this program, the district can order lower-cost bulk products, increase the variety of end products, and reduce storage and food preparation costs.

The term of this contract is three years, renewable annually by mutual consent of both parties.  The first year of the contract is August 1, 2011 through July 31, 2012.  The Superintendent is authorized to approve the renewal agreement, per the terms of the specifications. 

The district's commodity food processing program is funded by entitlement dollars made available through the USDA.  Expenditures were $297,513 for 2010/2011.  The district will save $1.65 per case on ketchup packets and $3.06 per case on marinara sauce, which amounts to an approximate savings of $47,595.

Contract administration or evaluation is performed by the Project Manager (end user) and Procurement Officer, who function as a team.  Reviews are conducted face to face, typically quarterly, or by utilizing an online vendor performance report.  Prior to soliciting a new contract, the Contract Administration team must first give consideration to the specifications and supporting data of the expiring contract.