Region One Education Service Center does not discriminate on the basis of age, race, color, national origin, gender or disability.

TO: Child Nutrition Program – South Texas Cooperative (CNP-STC) Members FROM: Kristina B. Carrizales, Purchasing Cooperative Specialist SUBJECT: Child Nutrition Program – South Texas Cooperative Manufacturer Direct Ship to District Warehouse

Commercial Products RFP 19-AGENCY-000050 – Extension 1 of 3 – Addendum 3 DATE: July 23, 2019 This request for proposal (RFP) allows Child Nutrition Program - South Texas Cooperative (CNP-STC) members the ability to procure goods and/or services from a pre-qualified list of responsive and responsible Vendors, known as a company or firm whose purpose is to provide food items, beverages, paper products, plastic goods, and other goods and/or services not available through other procurement means, excluding fresh produce. It also allows CNP-STC members the ability to order food and/or supplies directly from manufacturers. Item descriptions, specifications and/or technical requirements and estimated quantities and pricing, and/or price lists and/or catalogs have been provided by each vendor enclosed. Region One Education Service Center and its cooperative members are required to conduct a cost or price analysis for the procurement of goods and/or services not listed in the items tab, and within the scope of services offered with this bid solicitation. Cooperative members are responsible for the selection of goods and/or services available to meet their individual menu needs, nutrition goals, storage capabilities, and student preferences. On May 23, 2018 Region One Education Service Center Purchasing Department, acting on behalf of its CNP-STC members, received sixty-five (65) responses to Manufacturer Direct Ship to District Warehouse Commercial Products RFP 19-AGENCY-000050. On June 19, 2018 the Region One ESC Board of Directors met to review and approve the recommendations of the CNP-STC, acting on behalf of its members, for award of Manufacturer Direct Ship to District Warehouse Commercial Products RFP 19-AGENCY-000050. Proposals were evaluated to select the best qualified vendors based on the established criteria. Sixty-two (62) vendors were recommended for award. On behalf of the CNP-STC membership, the current awarded vendors were offered the opportunity to utilize the first extension option of three for Manufacturer Direct Ship to District Warehouse Commercial Products RFP 19-AGENCY-000050, effective July 1, 2019 through June 30, 2020. Fifty-four (54) vendors agreed to the extension, and eight (8) vendors were unresponsive.

June 19, 2018 the Region One ESC Board of Directors met to review and approve the recommendations of the CNP-STC Manufacturer Direct Ship to District Warehouse Commercial Products RFP 19-AGENCY-000050. Attached are the vendors that are awarded for CNP-STC Manufacturer Direct Ship to District Warehouse Commercial Products RFP 19-AGENCY-000050-E1 based on the proposals received, including pricing and services that best meet the needs of our member; effective July 1, 2019 through June 30, 2020 with the option to extend up to two (2) additional one-year periods if all parties are in agreement: see attachment. For your convenience, the order guide has been revised on posted on the CNP-South Texas Cooperative Webpage at www.esc1.net/southtexascoop, Awarded Bids & Proposals. For additional information or questions, please contact the South Texas Cooperative at eBuyOne@esc1.net:

Lori Atwood Ramos, Purchasing Coordinator, Phone: 956.984.6123 Kristina Carrizales, Purchasing Cooperative Specialist, Phone: 956.984.6012 America Retana, Purchasing Cooperative Specialist, Phone: 956.984.6217

Region One Education Service Center does not discriminate on the basis of age, race, color, national origin, gender or disability.

The following vendors are recommended for award of Child Nutrition Program – South Texas Cooperative Manufacturer Direct Ship to District Warehouse Commercial Products RFP 19-AGENCY-000050-E1:

Agora Foods, LLC, - Gainesville, GA Albie's Foods, Inc. - Gaylord, MI Alpha Foods Co. – Waller, TX Bake R us, Inc - Gardena, CA Brookwood Farms - Siler City NC Bull's Eye Brands, Inc. dba Smart Mouth Foods - Atlanta, GA Cargill Kitchen Solutions - Monticello, MN Cebev, LLC - Boca Raton, FL Chef's Corner Foods - Dallas, TX Chinese Food Solutions, Inc. - Oviedo, FL Chorizo De San Manuel - Edinburg, TX Coca Cola Southwest Beverages LLC - Dallas, TX Comida Vida, Inc – Oviedo, FL ConAgra Brands, Inc. - Troy, OH Del Monte Foods, Inc. - Walnut Creek, CA Del Valle Food Products LLC - Edinburg, TX Devin Distributing & Packaging Inc. - Palmhurst, TX Ekon-O-Pac LLC - Gallatin, TN ES Foods - Woodbury, NY Fit Foodz, Inc. - Atlanta, GA Food Distributors of NV Inc, DBA SmartFoods 4 Schools - Visalia, CA Foster Poultry Farms - Livingston, CA Goodman Food Products dba Don Lee Farms - Inglewood, CA Heart of Texas Biscuits Inc. - Waco, TX John Soules Foods, Inc – Tyler, TX JTM Provisions Co., Inc. - Harrison, OH Let's Do Lunch, Inc. - Gardena, CA Lux Bakery, Inc. - San Antonio, TX McCain Foods USA, Inc. - Lisle, IL Mexilink, Inc. - Houston, TX Mexquisite, Inc. - Edinburg, TX MinMor Industries LLC dba Notables - Brooklyn Center, MN Nardone Bros. Baking Co. - Hanover, PA National Food Group - Novi, MI Nu-Health California, LLC – Los Angeles, CA Organics of the South Foods, LLC - Katy, TX Out of the Shell, LLC dba Yangs 5th Taste - South El Monte, CA Perdue Foods, LLC - Salisbury, MD Peterson Farms Fresh, Inc. - Shelby, MI Rich Chicks, LLC - Tracy, CA Rich Product Corporation - Buffalo, NY Rodriguez Foods, Ltd. - Fort Worth, TX Schreiber International Foods - Upper Saddle River, NJ Schwan's Food Service, Inc. - Marshall, MN Sycamore Sales, Inc., d.b.a. Preferred Packaging Sales & Service -

Peachtree Corners, GA Sysco Central Texas, Inc. - New Braunfels, T Tabatchnick Fine Foods, Inc. - Somerset, NJ Tasty Brands, LLC - Syosset, NY The Roast House - Brownsville, TX Trident Beverage, Inc. - Houston, TX Trident Seafoods – Seattle, WA

Tyson Prepared Foods, Inc. for itself and on behalf of its affiliates, Tyson Sales and Distribution, Inc., Tyson Refrigerated Processed Meats, Inc., and AdvancePierre Foods, Inc. hereinafter collectively, Tyson - Springdale, AR

Unipak Corp - Brooklyn, NY UNO Foods Inc. - Brockton, MA

The following vendors did not respond to the extension option and were not recommend for award: Atlantic Beverage Co. Inc - Edison, NJ Double B Foods - Arlington, TX First Choice Ingredients, Inc. - Germantown, WI Oliver Packaging and Equipment Company - Walker, MI Rose & Shore, Inc. - Vernon, CA Ruiz Food Product, Inc. - Dinuba, CA Skywalk Bakery - Alleyton, TX Vesar Foods, LLC dba D'gusto Foods. - Brookshire, TX

Region One Education Service Center does not discriminate on the basis of age, race, color, national origin, gender or disability.

Please note the following revisions to the CNP-STC Manufacturer Direct Ship to District Warehouse Commercial Products RFP 19-AGENCY-000050-E1

Bid Item # Vendor Change 22 Fit Foodz Item discontinued. See other awarded products highlighted in yellow. 24 Fit Foodz Item discontinued. See other awarded products highlighted in yellow. 25 Fit Foodz Item discontinued. See other awarded products highlighted in yellow. 30 Schwan’s Price increase from $36.44 to 37.44, freight increase from $2.84 to $2.98 32 Rose & Shore Vendor removed due to no response to extension offer. See other awarded

products highlighted in yellow. 33 Ruiz Vendor removed due to no response to extension offer. See other awarded

products highlighted in yellow. 34 Ruiz Vendor removed due to no response to extension offer. See other awarded

products highlighted in yellow. 35 Foster Farms Price change from $22.50 to $23.04 35 National Food Group Item discontinued. See other awarded products highlighted in yellow. 36 Vesar – D’gusto Vendor removed due to no response to extension offer. 37 Vesar – D’gusto Vendor removed due to no response to extension offer. 39 ES Foods Item 61856 has been discontinued, suggested replacement is 61857. Price

change from $105.12 to $95.92. 40 ES Foods Item discontinued. 49 Double B Vendor removed due to no response to extension offer. 50 Double B Vendor removed due to no response to extension offer. 51 Double B Vendor removed due to no response to extension offer. 52 Double B Vendor removed due to no response to extension offer. 53 Double B Vendor removed due to no response to extension offer. 54 Double B Vendor removed due to no response to extension offer. 55 Double B Vendor removed due to no response to extension offer. 56 Double B Vendor removed due to no response to extension offer. 57 Double B Vendor removed due to no response to extension offer. 58 ES Foods Price adjusted from $50.04 / $0.834 to $41.70 / $0.695. 59 ES Foods Price adjusted from $50.04 / $0.834 to $41.70 / $0.695. 61 ES Foods Price adjusted from $50.04 / $0.834 to $41.70 / $0.695. 115 Del Monte Foods Price increase from 21.06 to 22.80; product number change 116 Del Monte Foods Addendum #3: price increase from 22.11 to 23.80. 118 Atlantic Beverage Vendor removed due to no response to extension offer. See other awarded

products highlighted in yellow. 119 Del Monte Foods Addendum #3: price increase from 32.57 to 35.40. 119 Atlantic Beverage Vendor removed due to no response to extension offer. See other awarded

products highlighted in yellow. 120 Atlantic Beverage Vendor removed due to no response to extension offer. See other awarded

products highlighted in yellow. 121 Atlantic Beverage Vendor removed due to no response to extension offer. See other awarded

products highlighted in yellow. 122 Atlantic Beverage Vendor removed due to no response to extension offer. See other awarded

products highlighted in yellow. 123 Del Monte Foods Price increase from 35.03 to 40.33. 123 Atlantic Beverage Vendor removed due to no response to extension offer. See other awarded

products highlighted in yellow.

Region One Education Service Center does not discriminate on the basis of age, race, color, national origin, gender or disability.

124 Del Monte Foods Price increase from 26.68 to 27.67. 124 Atlantic Beverage Vendor removed due to no response to extension offer. See other awarded

products highlighted in yellow. 125 The Roast House Price change from $65 to $50 127 Coca-Cola Southwest

Beverages, LLC Price increase from $7.92 to $8.16

129 Coca-Cola Southwest Beverages, LLC

Price increase from $7.92 to $8.16

131 Coca-Cola Southwest Beverages, LLC

Price increase from $7.92 to $8.16

135 Coca-Cola Southwest Beverages, LLC

Price increase from $14.88 to $15.36

136 Coca-Cola Southwest Beverages, LLC

Price increase from $14.88 to $15.36

137 Coca-Cola Southwest Beverages, LLC

Price increase from $14.88 to $15.36

141 Oliver Packaging & Equipment

Vendor removed due to no response to extension offer.

142 Oliver Packaging & Equipment

Vendor removed due to no response to extension offer.

143 Oliver Packaging & Equipment

Vendor removed due to no response to extension offer.

150 Oliver Packaging & Equipment

Vendor removed due to no response to extension offer.

Foster Farms

1333 Swan Street

P.O. Box 457

Livingston, CA 95334

Date: April 22, 2019 From: Foodservice Marketing Subject: Request for Price Increase on Roll-Over Bid Items Foster Farms is committed to providing high quality products and service at competitive prices. For the school year ‘19/’20 with shipments beginning on or after July 1, 2019, the published list price of our CN Whole Grain Corn Dogs, CN Whole Grain Pancake Wraps, CN Whole Grain Mini Pancake Wraps, CN Whole Grain Mini Corn Dogs and Fernando’s Mexican Foods products will increase $.03/lb, or approximately 1.5%. This is will include any items currently on an awarded bid in which there is an option for a ‘roll-over bid.’ Please accept and support our need for this price increase based on the following factors affecting our costs to produce the products we provide: increased manufacturing costs from labor, sanitation, raw materials, packaging and energy, as well as our substantial increases in freight costs. For our manufacturing and material costs, Foster Farms has experienced increased costs in raw materials across the spectrum as depicted in the Producer Price Index (PPI) Detailed Report, Table 9: Producer Price Indexes and percent changes for commodity and service groupings and individual items, not seasonally adjusted, February 2019. In the last 12 months, we have seen increases in the following items:

Commodity Percent change to

February 2019 from February 2018

Effect

Flour & Base Mixes .5% Corn dog batter, tortillas

Paper Boxes & Containers 3.5% Master Cartons

Plastic Packaging 3.9% Inner box liners, film for individually wrapped items

Polish & Sanitation 7.2% Sanitation for all manufacturing facilities

Industrial Electric Power, Pacific 2.9% Manufacturing West Coast Facilities

Industrial Natural Gas, Pacific 3.4% Manufacturing West Coast Facilities

Furthermore, we are experiencing increased labor costs at our manufacturing facilities, particularly on the West Coast, in both wages and combined compensation, as seen in the latest Bureau of Labor Statistics Economic News Release, Table 13. Compensation and wages and salaries (not seasonally adjusted): Employment Cost Index for total compensation, and wages and salaries, for private industry workers, by area

12 month percent changes in Total Compensation

Census region & metropolitan area Dec. 2017 Sep. 2018 Dec. 2018

Los Angeles-Long Beach, CA CSA 3.7% 2.4% 3.0%

San Jose-San Francisco-Oakland, CA CSA 3.4% 4.0% 3.6%

Finally, freight rates have been increasing steadily for the past several years (14.1% since 2013) due to a variety of factors. This has significantly increased our cost to serve, especially over longer distances.

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At Foster Farms, we value your business and appreciate the opportunity to provide nutritious and delicious products for your Students. We strive to keep our costs down in order to provide you the best products and the best cost. If there is any other information we can provide, please contact us. Foster Farms Foodservice Marketing