Beaufort County Schools Milk Bid for 2026-27

DISTRIBUTOR IFB/CONTRACT

Terms and Conditions

Beaufort County Schools

Contract Period: August 1, 2026 – July 31, 2027

MARCH 16, 2026

This Distributor Bid IFB – Contract is updated annually to meet USDA regulatory policy, to provide efficient and effective functioning and to provide the School District and the Distributor clarification which does not significantly alter the terms and conditions of the contract. School Districts and Distributors agreeing to renew this IFB are responsible for review of the updated IFB – Contract.

USDA NON-DISCRIMINATION STATEMENT

In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, sex, religious creed, disability, age, political beliefs, or reprisal or retaliation for prior civil rights activity in any program or activity conducted or funded by USDA.

Persons with disabilities who require alternative means of communication for program information (e.g. Braille, large print, audiotape, American Sign Language, etc.), should contact the Agency (State or local) where they applied for benefits.  Individuals who are deaf, hard of hearing or have speech disabilities may contact USDA through the Federal Relay Service at (800) 877-8339.  Additionally, program information may be made available in languages other than English.

To file a program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, (AD-3027) found online at: How to File a Complaint, and at any USDA office,

or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632-9992.  Submit your completed form or letter to USDA by:

(1)          mail: U.S. Department of Agriculture

Office of the Assistant Secretary for Civil Rights

1400 Independence Avenue, SW

Washington, D.C. 20250-9410;

(2)          fax: (202) 690-7442; or

(3)          email: program.intake@usda.gov .

This institution is an equal opportunity provider.

1.0 BCS LEGAL AFFLIATION, mission, goal and FEDERAL COMPLIANCE

2.0 General Provisions of the IFB/Contract

3.0 sCHOOL DISTRICT IFB – CONTRACT DECLARATIONS AND PROFILE

4.0 DISTRIBUTOR MINIMUM QUALIFICATIONS

5.0 DISTRIBUTOR INSURANCE REQUIREMENTS

6.0 DISTRIBUTOR PERSONNEL REQUIREMENTS

7.0 DISTRIBUTOR BID ERRORS AND PRICING Requirements

8.0 DISTRIBUTOR BID Award Method

9.0 IFB – CONTRACT DEFINITIONS

10.0 PRODUCT QUALITY, PRODUCT SPECIFICATIONS AND RECOURSE FOR MISREPRESENTATION

11.0 ESTIMATED QUANTITIES AND DISTRICT INFORMATION AFFECTING PURCHASES

12.0 TIE BID, BID ERRORS, BID REJECTION AND USE OF PIGGYBACK CLAUSE

13.0 PRELIMINARY DISTRIBUTOR BID AWARD

14.0 SUBSTITUTION AND DISCONTINUED PRODUCT REQUIREMENTS

15.0 DISTRIBUTOR AUDITS

16.0 TRANSMITTAL OF DELIVERY ORDERS

17.0 BILLING AND PAYMENT REQUIREMENTS

18.0 SITE DELIVERIES

19.0 OPTION FOR CONTRACT RENEWAL AND PROCEDURES

20.0 BID Renewal Procedures

21.0 Records Retention Requirements

22.0 Assurance of Non-Collusion

23.0 ASSURANCES REGARDING LEGAL AND ETHICAL MATTERS (revised April 2016)

24.0 Remedies for DISTRIBUTOR Non-Performance of Contract, and Termination of Contract

25.0 Force Majeure PROCEDURES

26.0 WAIVER

27.0 Right to Assurance

28.0 Regulatory Compliance

DISTRIBUTOR REQUIRED ATTACHMENTS FOR NEW BIDS

ATTACHMENT A – HACCP SUMMARY

ATTACHMENT B – EVIDENCE OF REQUIRED INSURANCE

ATTACHMENT C – LUNSFORD ACT COMPLIANCE

ATTACHMENT D – FOOD RECALL POLICY/PROCEDURES

ATTACHMENT E – HUB CERTIFICATION

ATTACHMENT F – CERTIFICATION FOR CONTRACTS, GRANTS, LOANS, LOBBYING AND COOPERATIVE AGREEMENTS

ATTACHMENT G – CERTIFICATION REGARDING DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MATTERS – PRIMARY COVERED TRANSACTIONS

ATTACHMENT H – IRAN DIVESTMENT REQUIREMENT FORM

ATTACHMENT I – NO BID RESPONSE

ADDITIONAL LOCAL BID ATTACHMENTS:

• SCHOOL DISTRICT PROFILE AND CALENDAR

• SCHOOL DISTRICT SPECIAL CONDITIONS (optional)

1.0 FEDERAL COMPLIANCE

1.1 FEDERAL COMPLIANCE: The School Nutrition Programs receiving goods and services under this Contract are federally funded programs operated under the authority of the United States Department of Agriculture (USDA). This IFB and the subsequent Contract shall be COMPLIANT with 7 CFR Parts 210, 220, 225, 250, 2 CFR 200 and applicable cost circulars issued by the Office of Management and Budget (OMB) including A-87 Cost Principals, A -102 Administrative Requirements, and A -133 Audit Requirements.

2.0 GENERAL PROVISIONS OF This BCS IFB – CONTRACT

2.1 This solicitation is intended to promote competition. If the language, specifications, terms, and conditions, or any combination thereof, restricts or limits the requirements in this solicitation to a sole source; it is the responsibility of the interested Distributor to notify Joanne Kirven, SN Program Director, in writing via e-mail, at jkirven@beaufort.k12.nc.us no more than five (5) working days after the date the IFB/CONTRACT is issued by the School District. The solicitation may, or may not, be changed, but a review of such notification will be made prior to the award of a Contract.

2.2 DISTRIBUTOR CHANGES TO PRE-APPROVED MANUFACTURER BRAND/CODE: All product brands and codes listed on this bid are pre-approved and no products may be added to the bid spreadsheets without prior approval of the BCS Board of Directors, with appropriate addenda released to eligible Distributors.

2.3 ADVERTISMENT OF BID: As required by the NC State Division of Purchase and Contract, solicitation for this IFB/Contract Bid has been advertised on the Beaufort County School Website and NCEVP.

2.4 a written addendum is the only official response method whereby interpretation, clarification and additional information REGARDING THIS BID can be given. Once issued, all addenda shall become part of this contract. All addenda will be issued electronically to each Distributor known to have received the initial IFB/Contract. Addenda may be issued from the local school district within seven (7) calendar days prior to the bid opening date. However, before submitting an IFB/Contract, it shall be the responsibility of each Distributor to determine whether additional addenda were issued. INQUIRIES concerning interpretation or additional clarification or additional information pertaining to this IFB must be made in writing (electronic accepted) on behalf of the School District within nine (9) calendar days prior to the bid opening date. For inquiries contact Joanne Kirven, SN Program Director, in writing via e-mail, a jkirven@beaufort.k12.nc.us

2.5 COST PRICING BY ITEM: The Distributor will solicit the BEST MANUFACTURER OR PACKER “COST” PRICING BY ITEM BID - including freight - for the longest lock in period when negotiating contract pricing for foods and supplies.

2.6 PRODUCT REMOVAL: The district reserves the right to remove a pre-approved product from the bid

at any time for cause. Removal may occur for the following reasons:

(1) Product was reformulated and no longer meets the specification

(2) Product quality complaints documented by member districts

(3) Manufacturer or Supplier failure to deliver product in a timely manner, or in a sufficient

quantity to meet district needs

(4) Manufacturer or supplier default of contract with distributor.

3.0 SCHOOL DISTRICT IFB – CONTRACT DECLARATIONS AND PROFILE

Beaufort County Schools and is herein after referred to as the School District, is requesting to receive Bids from an OFFERING ENTITY, herein after referred to as the Distributor, defined as a company that is offering to provide the services of ordering, warehousing and delivery of food and supplies for use in the School District’s Child Nutrition Program. School District may refer to a single school district, or a combined group of School Districts in a named Co-Op group.

Beaufort County Schools:

• reserves the right, at any time after opening and prior to award, to request from any Distributor clarification of processes or procedures, address technical questions, items bid, or to seek other information regarding the Distributor’s bid offer. This process may be used for such purposes as providing an opportunity for the Distributor to clarify their bid, to assure mutual understanding and/or aid in determinations of responsiveness, or responsibility, of the Distributor.

• reserves the right to exclude individual bid and use alternate local district bid documents and approved methods to award the bid.

• reserves the right to reject any or all bids, or parts thereof, and to waive informalities and/or irregularities thereof.

• reserves the right to retain all Bids for a period of sixty (60) days or until approval by the Local Board of Education, whichever comes first. The submittal of a Bid shall constitute an irrevocable Offer to Contract with the School District. In accordance with the terms of the IFB/Contract, the offer may not be withdrawn until or unless rejected or not accepted by the School District.

• requires the IFB/Contract and all attachments and addenda hereto awarded to become the Contract between the School District and the awarded Distributor.

• reserves the right to delete selected items from the bid to create an optional LOT that will be advertised to potential Distributors for that Lot. This approach may be used to create additional competition and allow small Distributors to respond to the IFB. If utilized, the Optional LOT will be identified as such in the Bidding Sheets and added in the same sequence of LOT number(s) to which it applies. The award of a Local Option LOT(s) will be made by Line Item award to the most qualified Distributor according to procedures outlined herein.

• reserves the right to add written Special Condition(s) to this IFB which details conditions that are specific to the School District. Special Condition(s) shall be titled as such are attached to the IFB in the Attachments Section. Special Conditions established by the School District as part of this IFB, and the Distributor’s response to the Special Condition(s), shall become part of the Contract when awarded. A School District renewing a bid may update, or delete, Special Conditions of the original Contract; however, the District may not make changes that would substantially change the terms of the original agreement in a renewal. If Special Conditions are a part of this IFB, they are included in the Attachments section of the IFB/Contract. Special Conditions must be reviewed and agreed upon by the School District and potential Distributors PRIOR to the Bid Award Opening. If changes are made to the Special Conditions, the School District must issue a Local Amendment to all potential Distributors announcing the change a minimum of seven (7) working days prior to the IFB/Contract due date.

• requires the Distributor awarded the Contract be fully acquainted with terms and conditions relating to the scope and restrictions involved in the execution of the work described in this contract for the School District. Failure or omission of the Distributor to be familiar with existing conditions shall in no way relieve the company of obligation with respect to this Contract and may be grounds for disqualification.

• requires The Local School District issue the approved and appropriately signed Official Certification Form to the Awarded Distributor and the issue of a local Purchase Order to the Distributor as the Final Bid Award.

• will provide a SCHOOL DISTRICT PROFILE which includes pertinent information about the district such as the school names, addresses and current average daily breakfast and lunch meals served, average daily snacks served, district payment schedule and, where appropriate, average daily participation in the Summer Food Service Program, Seamless Summer Option or other meal program. The profile is found in the Attachments section of the IFB/Contract. The School District will provide the awarded Distributor the School Calendar, Menus and Estimated Product Usage.

4.0 DISTRIBUTOR MINIMUM qualificationS

Distributor awarded the Contract must have a minimum of one (1) year of experience in commercial food warehousing/delivery business and must maintain all required state and local business licenses and a Certificate of Authority from the Secretary of State of North Carolina. Distributor shall provide documentation of applicable license, certification, commercial experience, storage and delivery equipment and/or letters of current customer and supplier reference upon request of the School District for qualification to furnish products and services in accordance the terms and conditions of this IFB. The School District reserves the right to make the final determination as to the Distributor’s ability to provide the products and services requested herein.

5.0 Distributor INSURANCE REQUIREMENTS

5.1 The Distributor awarded the Contract shall maintain all necessary insurance for the period during which purchases are made, including Comprehensive General Liability Insurance, Property Damage Insurance, Workers Compensation Insurance, and Automobile Liability Insurance. The Distributor must provide Evidence of Insurance in that it currently has, and agrees to purchase and maintain, during its performance under this Contract, from one or more insurance companies authorized to do business in the State of North Carolina. In addition, the School District Board of Education shall be named by endorsement as an additional insured on the General and Automobile Liability policies.

5.2 Certificates of such Insurance shall be furnished by Provider to the School District Contact and shall contain an endorsement to provide the School System at least 10 days written notice of any intent to cancel or terminate by either Provider or the insuring company.  Failure to furnish insurance certificates or maintain such insurance shall be a default under this contract and shall be grounds for immediate termination of this Contract. ATTACHMENT B - provide summary and mail certificates to school district.

5.3 Commercial General Liability – Distributor shall maintain Commercial General Liability insurance that shall protect the Distributor from claims of bodily injury or property damage which arise from performance under this Contract in the amount of $1,000,000 each occurrence and Personal & Advertising Injury $1,000,000 each occurrence with $2,000,000 General Aggregate.

5.4 Vehicle Bodily Injury and Property Damage - The Distributor shall maintain bodily injury and property damage liability insurance covering all owned, non-owned and hired vehicles. The policy limits of such insurance shall not be less than $1,000,000 combined single limit each person/each occurrence.

5.5 Worker’s Compensation - The Distributor shall meet the statutory requirements of the State of North Carolina for worker’s compensation coverage and employer’s liability insurance of all employees participating in the provision of services under this contract.

5.6 Should any of the above required insurance be cancelled or terminated before the expiration, the issuing company will provide at least ten (10) days written notice to the School District.

6.0 DISTRIBUTOR PERSONNEL REQUIREMENTS

6.1 The Distributor’s personnel are to present a professional appearance always while on school property. Personnel shall be neat, clean, well groomed, properly uniformed and conduct themselves in a respectable and courteous manner while performing duties at any School District facilities.

6.2 The Distributor’s personnel are forbidden to consume alcohol or use illegal drugs, use tobacco, or possess firearms on school property at any time.

6.3 The employment of unauthorized aliens by the Distributor is considered a violation of Section 247A (e) of the Immigration Reform and Control Act of 1986. If the Distributor knowingly employs unauthorized aliens, such a violation shall also be cause for cancellation of the Contract.

6.4 NC LUNSFORD ACT N.C. General Statute 14-208.18: The Distributor acknowledges that N.C. General Statute 14-208.18 prohibits anyone required to register as a sex offender under Article 27A of Chapter 14 of the General Statutes from knowingly, among other things, being on the premises of any school or within 300 feet of any location intended primarily for the use, care, or supervision of minors, including but not limited to schools, children’s museums, child care centers, nurseries and playgrounds. This prohibition applies to persons required to register under Article 27A who have committed any offense in Article 7A of Chapter 14 or any offense where the victim of the offense was under the age of 16 years at the time of the offense. LUNSFORD ACT compliance is addressed in the ATTACHMENT C.

7.0 DISTRIBUTOR BID ERRORS AND PRICING Requirements

7.1 BID ERRORS: The following two bid errors are non – negotiable and may result in bid disqualification.

(1) No Original Signature on the Official Distributor Bid Certification Form for A new or renewal bid.

(2) Any change to BCS IFB/CONTRACT language by the Distributor

7.2 BUY AMERICAN PROVISION AND COUNTRY OF ORIGIN: The Distributor shall comply with the “Buy American Provision” for Contracts that involve the purchase of agricultural products. Federal regulations require that all foods purchased for School Nutrition Programs be of domestic origin to the maximum extent practicable. Section 12(n) of the NSLA defines “domestic commodity or product” as an agricultural commodity that is produced in the U.S. and a food product that is processed in the U.S. substantially using agricultural commodities produced in the U.S. Report language accompanying the legislation noted that “substantially means over 51% from American products.” Therefore, over 51% of the final processed product (by weight or volume) must consist of agricultural commodities that were grown domestically. Thus, for foods that are unprocessed, agricultural commodities must be domestic, and for foods that are processed, they must be processed/manufactured domestically using domestic agricultural food components that are comprised of over 51% domestically grown items, by weight or volume as determined by the SFA. For products procured by SFAs for use in the Child Nutrition Programs using nonprofit food service account funds, the product’s food component is considered the agricultural commodity. FNS defines food component as one of the food groups which comprises reimbursable meals. The food components are meats/meat alternates, grains, vegetables, fruits, and fluid milk. Please refer to 7 CFR 210.2 for full definitions. Any product processed by an awarded vendor must contain over 51% of the product’s food component, by weight or volume, from U.S. origin and be processed in the United States. Products from Guam, American Samoa, Virgin Islands, Puerto Rico, and the Northern Mariana Islands are considered domestic products under this provision as these products are from the territories of the U.S. This definition of domestic product serves both the needs of schools and American agriculture.

Limited Exceptions to the Buy American Provision. There are limited exceptions to the Buy American provision which allow for the purchase of foods not meeting the “domestic” standard as described above (i.e., “non-domestic”) in circumstances when use of domestic foods is truly not practicable. These exceptions, as determined by the SFA, are:

• The product is not produced or manufactured in the U.S. in sufficient and reasonably available quantities of a satisfactory quality; or

• Competitive bids reveal the costs of a U.S. product are significantly higher than the non-domestic product.

• Competitive Bids reveal the cost of a domestic product is significantly higher than a non-domestic product or; product(s) may qualify under the Richard B. Russell National School Lunch Act’s Buy American provision for purchasing food and food products used in School Nutrition Programs which states that products are acceptable provided over 51% of the final processed product(s) consist of agricultural commodities that are of US origin.

7.3.2 All non – domestic product bid is required to meet USDA Food Safety, Recall requirements, and specifications of the bid.

7.3.3 The USDA Buy American Provision requires the Country, or Countries of Origin, of ALL Non-Domestic food purchased from the Distributor be approved in advance by the School District CN Administrator. Changes to a products Country of Origin, not specified on the bid document, requires notification and written approval, in advance of delivery, of the product to the School District.

7.4 Non – Stocks - The Distributor will insert the letters “NS” (NON - STOCK) in the block for the Distributor code to indicate it is a “non-stock” item due to low usage. School District(s) will review Non - Stock items with the Distributor prior to the final bid award to determine items required for their District, quantities intended, and lead order time as needed. This method is applicable for “NS” line items and “NS” flavors within a line item when multiple flavors are available. The School District is responsible for purchasing non-stock (Special Order) products requested from the Distributor and brought into stock on their behalf. However, the school district will not be responsible for more than a 60 - day average usage, or the remainder of the minimum shipment, after notification to the Distributor the product will no longer be needed or ordered.

7.5 SPECIAL ORDERS: The School District(s) may Special Order the product at the required minimum shipment. The School District is responsible for purchasing all inventory of a Special Order made on their behalf. The Distributor may, but is not obligated to, store School District inventory from a Special Order for weekly delivery.

7.6 PRICE FOR EACH PRODUCT: A cost price is required for each bid specification identified for Distributor pricing in the bid spreadsheets. If a “0” quantity is shown in the Estimated Usage column, the Distributor is still to provide a bid price for the bid specification. All product brands and codes listed on this bid are pre-approved and no products may be added to the bid spreadsheets without prior approval.

7.7 UNIT PRICE/EXTENSION DISCREPANCY: In the event of a discrepancy between the unit price and extension, the unit price will be considered correct. Errors found in Distributor NEW bid extensions will be corrected and reported to the affected Distributor(s.) All Distributors will be notified of the corrected bottom line by the School District in the Preliminary Award Letter.

8.0 DISTRIBUTOR BID Award Method

8.1 The award method is: Firm Unit Price by Line Item Specification where award is to the Distributor with the lowest price per serving per line item from the bidding sheets and as recorded on the Official Distributor Bid Tabulation Sheet after calculations are verified and corrected, as needed, by the School District. There is no fixed fee with a firm unit price by line item bid.

8.2 PACK SIZE: The Distributor is to bid the pack size that they stock that is closest to the pack size indicated on the bid sheet. Distributors may change the number of bottles per case to the pack size that will be the best value.

9.0 IFB - CONTRACT DEFINITIONS

9.1 ACCURACY OF PRICING: The accuracy of all unit prices, fixed - fees and statements contained in this bid is the responsibility of the Distributor, and no change or cancellation may be made except as provided in this IFB Contract or it’s amendment(s).

9.2 Buy American (BA) Certification for the BCS – Certification of the BA is required to be provided for all Distributor bid food product specifications to meet USDA Buy American requirement by June 1 of each year for products bid that are not a pre-approved brand (private label and other) and any changes to such products to be delivered. Certifies the ingredients in the products were both processed in the U.S. and contain over 51% of its agricultural food component, by weight or volume, from the U.S.

9.3 COMMUNICATION: The awarded Distributor shall communicate continuously via electronic messaging with the School District customer concerning product orders, product movement levels, substitutions, inventory, manufacturer shortages, production issues, etc.

9.4 CUSTOMER ISSUES: The Distributor will provide prompt response to customer issues regarding product quality, product delivery, and product damage, credits or billing transaction documentation. Failure to resolve customer issues in a timely manner may result in contract termination, or future bid disqualification.

9.5 DISTRIBUTOR FACILITIES: The warehouse facilities and delivery vehicles shall be clean, be free of insects and rodents, and meet all federal and state regulations for storing and delivery of dry, chilled, and frozen food products.

9.6 HACCP: All Distributors submitting bids must provide a current Hazard Analysis Critical Control Point Summary (HACCP) describing the Distributors on – site food sanitation and safety practices meeting federal regulation. The awarded bidder must maintain a current HACCP plan through the duration of this contract. ATTACHMENT A

9.7 Interface with Manufacturers: The Distributor must communicate district problems relating to product levels and product quality and provide the school district notification of supplier issues, including but not limited to, production, shortages, transportation or product discontinuance. A letter describing the circumstances and effective dates is required from the Distributor to the School District for documentation of the issue.

9.8 ON – SITE INSPECTIONS: The School Districts reserve the right to request of the Distributor documentation, on-site inspections of facilities, delivery vehicles and records at any time during the Contract period.

9.9 PRIVATE LABEL PRODUCT SPECIFICATIONS: Provide the School District private label product

specification documentation bid directly by the Distributor including nutritional analysis, ingredients, allergens and country of origin information prior to June 1 of the contract year. This data must be provided in digital format separately for each product. Private label substitutions or changes must be provided to customers in advance. Manufacturer signed Buy American documentation for private label products is required as of January 2018. The manufacturer may provide a letter or use the Buy American Certification provided.

9.10 PRODUCT RECALL: The Distributor awarded the Contract shall be expected to voluntarily comply with all Federal, State and local mandates regarding the Identification and Recall of foods from the commercial and consumer marketplace. The Distributor shall have a process in place to immediately respond to a manufacturer food recall; the process must include accurate and timely communications to the School District and assurance that unsafe products are identified and removed from school sites in an expedient, effective and efficient manner. The Distributor is responsible for any consequences arising from the failure to make immediate notification. A one- page summary of the Distributor’s Food Recall Policy/Procedures is required to be submitted with the Bid in ATTACHMENT D.

9.11 Protest Procedure: Protests by the Distributor must be submitted in writing, with supporting

documentation, to the issuing School District within five working days after bid award. Protests should be made to the School District.

9.12 SUB-CONTRACTING: The awarded Distributor will deliver all item(s) to the School District at the proposed price, in accordance with the item specifications and the terms and conditions contained in this IFB/Contract. Sub-contracting of this Contract is not permitted for any reason without the prior written permission of the School District.

9.13 VALUE ADDED OPTIONS AND SERVICES: Value Added Options and Services including, but not limited to product merchandisers and other purchasing incentives will not be considered as a factor in evaluating the award of this Bid.

10.0 PRODUCT QUALITY, PRODUCT SPECIFICATIONS AND RECOURSE FOR MISREPRESENTATION

10.1 All food products supplied by the Distributor awarded the Contract will comply with Standards of Identity,

Quality and Fill as described in 21 CFR Part 100 of the Food, Drug and Cosmetic Act regulations.

10.2 Any change to a “Distributor Bid” brand and code product specifications shall be provided to the School District immediately by the Distributor. This includes any product changes at the Mid Term Price Increase/Decrease. In addition: changes to a product specification, due to substitution or other reason, must be available to the school district for prior approval to the Distributor a minimum of 24 hours before delivery.

10.3 School Districts have automatic product protection recourse against suppliers for products that are

misrepresented. According to U.S. Federal regulations, the supplier whose name and address appears on the package is the responsible party. The Distributor awarded this Contract is expected to take immediate action to correct any situation in which product integrity is violated.

11.0 ESTIMATED QUANTITIES AND DISTRICT INFORMATION AFFECTING PURCHASES

11.1 Quantities reflected in this IFB are estimates based on the combined projected needs of the School District

during the Contract period. These quantities are the best estimate of anticipated needs available at the time of publication of this IFB, but the accuracy of this estimate may be affected by numerous factors including but not limited to, budgetary adjustments, product pricing, availability of Federal funds or other subsidies, changing market forces, or unintentional errors or omissions. Actual needs may be greater or less than the estimated quantities provided.

12.0 TIE BID, BID ERRORS, BID REJECTION AND USE OF PIGGYBACK CLAUSE

12.1 TIE BID: In the event of a tie on a Bid LOT or line item, the deadlock will be decided in the following order:

• The largest pack size with the same unit cost per serving.

• Documented evidence of unresolved service issues with a Distributor.

• Distributor is certified as Small Business/Minority Business/Women Owned Business.

• All else being equal, by coin toss by the School District with tie Distributor present.

12.2 REJECTION: The School District reserves the right to reject any, and all Bids, or any parts thereof, and

request resubmission of bids from all distributors as deemed in the best interest of the School District.

12.3 BID ERROR: In the event of an error in a product specification or pricing, that item will be excluded from

the tabulation. Any item excluded from the bid tabulation will be excluded for ALL bidders for evaluation

purposes only. Multiple bid errors may be rationale for a Distributor’s bid disqualification.

12.4 Piggyback Clause: The Piggyback Clause is a Legal Provision that may be employed by a local

School district in the circumstance of no bids received or all bids received are disqualified. If employed, documented Distributor Agreement, Legal Advertisement of Waiver for Competitive Bidding and Local Board Approval by both Districts is required. Pursuant to G. S. 143-139 (g), when a Local Board of Education (BOE) determines it is in the best interest of the member district over which it has authority, the requirement for competitive bidding may be waived for the purchase of food and supplies contained herein, including all subsequent Amendments, to allow the member district to purchase from the bid/contract with any other district. The member district’s BOE, having approved the waiver for competitive bidding, may enter into a new and separate contract with a Distributor who has contracted with another member district provided the member district’s BOE is in agreement and the Distributor is willing to extend the same or more favorable prices, terms and conditions to the member district for which competitive bidding has been waived.

13.0 PRELIMINARY DISTRIBUTOR BID AWARD

13.1 BID Awards are considered “Preliminary” until the following is completed:

13.1.1 The School District reviews the line-by-line prices for accuracy of additions and extensions,

brands, and compliance with all instructions to ascertain that the offer is made in accordance with the terms and conditions of the IFB. School officials who find error(s) in calculations will adjust and correct and notify bidders individually. The corrected bottom line calculations will be shown in the Preliminary Award letter sent to all bidders.

14.0 SUBSTITUTION AND DISCONTINUED PRODUCT REQUIREMENTS

14.1 The Distributor awarded the Contract shall order goods from manufacturers in economical quantities and

maintain inventories at a level sufficient to prevent out of stock situations while avoiding excessive inventories which may be counter-productive to efficiency. Product substitutions due to out of stock situations should be held to an absolute minimum. Distributor “out of stock” percentage is expected at 3% of invoice orders or less. Excessive substitution due to Distributor order errors may jeopardize future business from the School District or invoke Termination Proceedings.

14.2 Any Distributor substitution that is not pre-approved in writing, by the Child Nutrition Director or her/his designee, will be rejected by the School District. The School District will not be responsible to purchase quantity of School District estimated usage affected by Distributor substitution.

14.3 To facilitate delivery schedules and provide appropriate substitutions in out - of stock situations for accommodation of students with food allergies, the awarded distributor MUST e-mail or fax the school district, for pre-approval by the CND, current specification sheets with ingredient lists, nutritional analysis and allergens for each proposed substitution a minimum of 24 HOURS IN ADVANCE of the delivery. The Distributor may substitute pre-approved brands within a specification without supplying product specifications, but 24 HOURS ADVANCE notification of substitution is still required. The Distributor and/or manufacturer are responsible for any damages to customers due to unidentified allergens from products substituted for brands pre-approved by this Contract.

14.4 Any substitution for a bid specification product brought in by the Distributor to alleviate Distributor out of stock situations, due to buyer or other distributor error, must be of (1) the same or higher quality as the regular stock, (2) the same or lower portion cost than regular stock and (3) delivered for the same flat fixed- fee per case as the original product. The invoiced price for a substituted product is to be adjusted to the current bid price per serving/unit to avoid incorrect billing at time of delivery. Substituted products are approved by the School District.

14.5 Any substitution for a bid specification brought in by the Distributor to alleviate a Manufacturer out of stock, or discontinued production, must be approved in advance by the School District and be of (1) the same or higher quality as the regular stock, (2) the same or similar cost as the regular stock and (3) delivered for the same flat fixed fee as the original product, adjusted for pack differences. (for example: the original product was packed 100, the substitute is packed 50. The District should only pay half of the flat fixed fee per case.) The invoiced price for a substituted product is to be adjusted to the current bid price per serving/unit to avoid incorrect billing at time of delivery. Substituted products are approved by the School District.

14.6 The fact that a substitute is being made shall be clearly stated on the invoice or provided on a separate invoice. If a School District employee signs the invoice for a non-approved product, it may be refused and picked up within seven (7) days by the Distributor. Frozen products are not included in this provision and the School District and Distributor must discuss/agree on the policy regarding non-approved frozen food return in regard to Distributor’s HACCP policy.

14.7 Any substitution of a Non-Domestic product for a domestic product, originally a part of the IFB must be approved in advance, in writing, by the Child Nutrition Director, with the Country of Origin information, prior to the delivery of the product to the School District.

14.8 If a substitute product is not approved by the Child Nutrition Director, or designee, the School District shall, in good faith and in its sole discretion, purchase a product of equal or greater quality from another source. The Distributor shall be responsible and liable for the difference in the cost between the amount paid for the substituted product and the amount, which would have been paid, had the product been delivered. The Distributor shall have no basis to complain that a substituted product purchased could have been purchased at a lower price and the difference in cost (with documentation) will be subtracted from the amount due the Distributor.

15.0 DISTRIBUTOR AUDITS

15.1 Non – Scheduled Audits: All items included in the Bid Specification Spreadsheets are subject to audit at any time after the Distributor contract has been awarded, by the School District representative. The Distributor shall be given notice of the intent to conduct a Scheduled Audit and receive the documentation at least five workdays in advance. Documentation may be viewed at a time and place agreeable to both the Distributor and the Auditor(s).

15.2 AUDIT: OVER OR UNDERCHARGES (Pre- Bid or Mid Term) that reveal a Distributor has either overcharged or undercharged the School District will be treated as follows:

Overcharges: Whenever an invoice from a manufacturer reveals the price of a product delivered to the Distributor’s warehouse is less than the quoted cost, a credit will be due on each case delivered at the incorrect price. The credit shall be provided within thirty (30) days of the close of the month in which the audit took place. The credit shall be made in the form of a credit or check made payable to the ’s Child Nutrition Services Department. The price correction shall be made immediately.

Undercharges: Whenever an invoice from a manufacturer reveals that the price of a product, delivered to the Distributor’s warehouse, is actually more than the quoted cost, a debit to the school district’s account is NOT permitted. In the event of an unexpected market change that results in the manufacturer not honoring pricing quoted on a product for the costing period, it is the Distributor’s responsibility to request a price increase for that product using procedures outlined in the Force Majeure section of this IFB. The awarded Distributor must maintain records of documentation regarding prices within this contract, and any and all price changes until they have been audited.

16.0 TRANSMITTAL OF DELIVERY ORDERS

16.1 Orders will be submitted to the Distributor awarded the Contract by the School District on a schedule and by a method that is mutually agreeable to both parties. The School District prefers the shortest lead time possible in order to minimize inventory levels at schools. Order requirements not covered in this section should be listed in Special Conditions.

16.2 Orders may be transmitted electronically or by fax as mutually agreed upon by the Distributor awarded the Contract and the School District. Printed or electronic order guides shall be furnished by the Distributor for recording and/or transmitting orders. If Internet-based, electronic ordering systems are used, the Distributor will provide training on use of their ordering system to necessary School District personnel. The Distributor must block non-bid items from electronic ordering systems available to the School District.

16.3 The Distributor awarded the Contract shall provide a representative to screen orders, discuss orders with the Child Nutrition Director, or designee, on a weekly basis; the representative shall ensure compliance with scheduled delivery, discuss substitutions and shortages, facilitate approval of substitutions, finalize orders for delivery (including USDA Donated Foods if required), and screen delivered orders for shortages, errors, and pricing mistakes.

17.0 BILLING AND PAYMENT REQUIREMENTS

17.1 Payment will be due to the Distributor awarded the Contract within thirty (30) days of date of the statement, or more frequently, as designated by the School District in Special Conditions. An BCS member district reported by a Distributor as repeatedly violating the payment requirement will be reviewed by the Board of Directors and reprimanded. Repeated violations may result in termination of BCS membership.

17.2 The Distributor awarded the Contract shall provide each School District separate invoices and statements(unless differentiated on the statement) by site. The School District will provide separate Purchase Orders for each site, if required.

17.3 The Distributor awarded the Contract shall issue credit memorandums for returned/picked up items within ten (10) working days from the request to do so. Failure to issue credit memorandums in a timely manner shall constitute grounds for withholding payments.

17.4 It is understood and agreed that all products ordered directly by the district will be shipped to a location designated by the district at the established contract prices as awarded in this contract and in effect on dates orders are placed. Invoices will be provided by the Distributor within 30 days of the date of purchase. Invoicing at variance with this condition will be subject to correction to the contract price prior to payment being made. The district agrees to pay invoices within 30 days of receiving a correct invoice. Distributor may withhold shipments if member district fails to pay correct invoices on time. Under no circumstances may a Distributor withhold shipment of goods when the failure to pay is the result of the Distributor not providing a correct invoice.

17.5 Taxable items shall be invoiced separately and shall be billed on a separate statement or products shall be identified as non-taxable.

NC General Statute § 105-164.13.  Retail sales and use tax. (23) Sales of the following packaging items:

a. Wrapping paper, labels, wrapping twine, paper, cloth, plastic bags, cartons, packages and containers, cores, cones or spools, wooden boxes, baskets, coops and barrels, including paper cups, napkins and drinking straws and like articles sold to manufacturers, producers and retailers, when such materials are used for packaging, shipment or delivery of tangible personal property which is sold either at wholesale or retail and when such articles constitute a part of the sale of such tangible personal property and are delivered with it to the customer.(26) Food and prepared food sold within the school building during the regular school day are exempt from sales and use tax.

18.0 SITE DELIVERIES

18.1 Deliveries shall be made to schools on a regular schedule between hours that are mutually agreed upon by the Child Nutrition Director and Distributor in a meeting after award of the Contract. Any deviation of the Distributor from the schedule will require notification of the Child Nutrition Director or designee.

18.2 The School District reserves the right to require more/less than one delivery per week, as needed and as volume requires. Known need for deliveries of more/less than one per school site per week shall be indicated within Special Conditions. Small school districts will make efforts to work with the Distributor to consider order volumes and reduce frequency of small volume deliveries but are under no obligation to accept less than one delivery per school site per week.

18.3 Delivery schedules shall be submitted by the Distributor to the Child Nutrition Director for approval a minimum of two (2) weeks prior to the first delivery and remain constant from week to week. To the degree possible, delivery routes should feature dedicated trucks that deliver in sequence to district schools on a predictable time – table. Conflicts with arrival and departure of students may require Distributor changing delivery routes for safety concerns.

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