January 4, 2013January 4, 2013Janet Beer, RD & Carol McLeod, RDJanet Beer, RD & Carol McLeod, RD

Pricing forPricing for◦ Fee for ServiceFee for Service◦ Net Off InvoiceNet Off Invoice◦ Cash RebateCash Rebate◦ All ODE approved commodity itemsAll ODE approved commodity items◦ School year 2013-2014School year 2013-2014◦ To SYSCO Portland, 97070 To SYSCO Portland, 97070 ◦ Pricing does not include distributor delivery feePricing does not include distributor delivery fee

Full trucks from approved processors will goFull trucks from approved processors will go Partial trucks may be combined with other Partial trucks may be combined with other

statesstates Fee is $.10 per pound - brown box and Fee is $.10 per pound - brown box and

diverteddiverted No fee for DOD produce (committed by Dec No fee for DOD produce (committed by Dec

2012)2012) Brown Box Orders submitted Feb 4 - 28, Brown Box Orders submitted Feb 4 - 28,

20132013 Diversion Orders submitted Feb 4 – 28, Diversion Orders submitted Feb 4 – 28,

20132013 Every purchased product must have Every purchased product must have

some kind of bidding process – more some kind of bidding process – more review and enforcement!review and enforcement!

Issue 1-2-2013Issue 1-2-2013 Vendor meeting 1-4-2013Vendor meeting 1-4-2013 Errors and clarification questions due 1-11-2013Errors and clarification questions due 1-11-2013 Addenda posted 1-18-2013Addenda posted 1-18-2013 Response Due to TTSD 1-24-2013 Response Due to TTSD 1-24-2013 2:00 PM 2:00 PM Open 1-24-2013Open 1-24-2013 2:15 PM – only identify bidders2:15 PM – only identify bidders Tasting Feb 1, 2013 (invited all districts in State)Tasting Feb 1, 2013 (invited all districts in State) Awards on or after March 1, 2013Awards on or after March 1, 2013

GoalGoal◦ Best possible priceBest possible price◦ Meet USDA and ODE bid requirementsMeet USDA and ODE bid requirements

Pricing without volume commitmentPricing without volume commitment Individual members may or may not issue Individual members may or may not issue

awardaward Will not be rolled overWill not be rolled over

Must be “Must be “apples to applesapples to apples”” Pricing pages ask for Pricing pages ask for weightweight of one portion of one portion

forfor◦ 1 meat/meat alternate for entrees1 meat/meat alternate for entrees◦ 1 fruit/veg for other1 fruit/veg for other◦ processor defines all othersprocessor defines all others

AndAnd CountCount for one portion for for one portion for◦ 1 meat/meat alt for entrees1 meat/meat alt for entrees◦ 1 fruit/veg for other1 fruit/veg for other◦ processor defines all othersprocessor defines all others

Must meet district nutrition qualificationsMust meet district nutrition qualifications Districts can just buy low bidDistricts can just buy low bid If not low bidIf not low bid

◦ Pricing will be scoredPricing will be scored◦ Commodity money is real moneyCommodity money is real money◦ Value is included in true costValue is included in true cost◦ Taste tests will be scoredTaste tests will be scored◦ Individual district award will be sum of pricing Individual district award will be sum of pricing

score and taste test scorescore and taste test score

Fee for serviceFee for service = commodity value + = commodity value + processing fee + shipping to SYSCO + ODE processing fee + shipping to SYSCO + ODE diversion feediversion fee

Net Off InvoiceNet Off Invoice = commercial price – bill = commercial price – bill back or allowance + ODE diversion fee back or allowance + ODE diversion fee (USDA value not subtracted)(USDA value not subtracted)

Cash rebateCash rebate = commercial price – bill back = commercial price – bill back or allowance + ODE diversion fee (rebate not or allowance + ODE diversion fee (rebate not subtracted)subtracted)

Distributor delivery charges are not included Distributor delivery charges are not included

SubmitSubmit◦ Electronic Price Pages – 6 items to a pageElectronic Price Pages – 6 items to a page◦ If you offer NOI you must also offer fee for If you offer NOI you must also offer fee for

service (NOI may not have enough volume)service (NOI may not have enough volume)◦ Send PDF files with (no hard copy!):Send PDF files with (no hard copy!):

SEPDS – may contain many itemsSEPDS – may contain many items Nutrition Facts Label – individual files labeled Nutrition Facts Label – individual files labeled

so we can tell what the product isso we can tell what the product is Copy of CN label information – individual files, Copy of CN label information – individual files,

labeled so we can tell what the product islabeled so we can tell what the product is Signed Product Formulation Statements - Signed Product Formulation Statements -

individual files so we can tell what the product individual files so we can tell what the product isis

Top LineTop Line◦ Processor NameProcessor Name◦ Minimum pounds for deliveryMinimum pounds for delivery◦ DateDate◦ Don’t change fontDon’t change font

Top LineTop Line◦ Processor NameProcessor Name◦ Minimum Pounds for DeliveryMinimum Pounds for Delivery◦ DateDate◦ Don’t change fontDon’t change font

Top LineTop Line◦ Processor NameProcessor Name◦ Minimum Pounds for DeliveryMinimum Pounds for Delivery◦ DateDate◦ Don’t change fontDon’t change font

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Product with lowest true cost per portion Product with lowest true cost per portion receives 51 pointsreceives 51 points

Next lowest true cost per portion receives Next lowest true cost per portion receives 49 points49 points

Each subsequent gets 2 points lessEach subsequent gets 2 points less

Products evaluated and awarded Products evaluated and awarded individuallyindividually

Can award same commodity (barrel cheese) Can award same commodity (barrel cheese) to more than one manufacturerto more than one manufacturer

Districts will issue Intent to Award as Districts will issue Intent to Award as requiredrequired

Districts will issue individual awardsDistricts will issue individual awards Delivery decisions also individualDelivery decisions also individual

◦ Direct, distributor or State warehouseDirect, distributor or State warehouse

Vendor bid NOI only and district wanted direct Vendor bid NOI only and district wanted direct delivery or through distributordelivery or through distributor

Vendor did not respond – schools could not buyVendor did not respond – schools could not buy Files for nutrition information combinedFiles for nutrition information combined Portion sizes not as requested – if different (eg 2 Portion sizes not as requested – if different (eg 2

meat/meat alt for cheese items) make a meat/meat alt for cheese items) make a BIG note Wrong portions per caseWrong portions per case If coming through re-distribution (DOT) identify who If coming through re-distribution (DOT) identify who

pays shippingpays shipping