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Meeting Date:
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4/19/2018 - 6:30 PM
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Category:
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Regular Items of Business
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Type:
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Action
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Subject:
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9. Action on Request to Waive Administrative Policy 3.09(9)(e) and Enter into a Contract with Sysco Eastern Wisconsin LLC for Prime Food Vendor
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Strategic Plan Compatibility Statement:
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Goal 3 Effective and Efficient Operations
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Attachments
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Action on Request to Waive Administrative Policy 3.09(9)(e) and Enter into a Contract with Sysco Eastern Wisconsin LLC for Prime Food Vendor: Contract
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File Attachment:
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Background:
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The Administration is requesting authorization to waive the three-year term limits of Administrative Policy 3.09(9)(e) and enter into a contract with Sysco Eastern Wisconsin LLC (“Sysco”) for the delivery of food and supplies to Milwaukee Public Schools. This contractor will be responsible for ordering, warehousing, delivering food/supplies and providing information/services for the Districts Department of Nutrition Services.
The contract allows the District to develop a working relationship with a prime vendor/distributor to provide a broad range of products and services through a single distribution system.
Contractor was chosen pursuant to RFP 968, which closed on March 2, 2018. The contract will run from July 1, 2018 through June 30, 2019 (the “Initial Term”). The Administration requests that the board waive its maximum three-year contract policy and allow the District to enter into a five-year contract which consists of a one-year contract with the option to extend for four additional one-year periods if certain performance metrics incorporated into the contract are met. The contract extension is being requested due to the significant startup cost to the District.
The total cost of the contract in the Initial Term will not exceed $25 million dollars. Subsequent years are estimated to increase approximately 5% per year due to increasing food costs. If the one-year contract with the option to extend for four additional one-year periods is renewed annually, the total value of the contract over 5-years is estimated at $138 million dollars. The contract will be renewed annually and brought back to the Board for approval.
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Fiscal Impact Statement:
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$25,000,000 to be distributed across the following budget codes:
LNC-0-0-LNH-xx-EFOD Food – Lunch
LNC-0-0-LNH-xx-EACR Food Ala Carte/Catering – Lunch
LNC-0-0-LNH-xx-ESUP Supplies-Consumable – Lunch
LNC-0-0-LNH-xx-ENCQ Non-Capital Equipment – Lunch
LNC-0-0-LNH-xx-EFCM Commodities (Federal) – Lunch
BKF-0-0-BKF-xx-EFOD Food – Breakfast
BKF-0-0-BKF-xx-ESUP Supplies-Consumable – Breakfast
BKF-0-0-BKF-xx-ENCQ Non-Capital Equipment – Breakfast
SFS-0-0-SLN-xx-EFOD Food – Summer School
SFS-0-0-SLN-xx-ESUP Supplies-Consumable – Summer School
SFS-0-0-SLN-xx-ENCQ Non-Capital Equipment – Summer School
SFS-0-0-SLN-xx-EFCM Commodities (Federal) – Summer School
DNR-0-0-DNR-xx-EFOD Food – Dinner
DNR-0-0-DNR-xx-ESUP Supplies-Consumable – Dinner
SNK-0-0-SNK-xx-EFOD Food – Snack
SNK-0-0-SNK-xx-ESUP Supplies-Consumable – Snack
CAT-0-0-FNP-xx-EFOD Food – Non-program
CAT-0-0-FNP-xx-ESUP Supplies-Consumable –Non-program
Sysco Eastern Wisconsin, LLC
PRIME CONTRACTOR INFORMATION
Certified HUB Contractor? ……………………….NO
Total # of Employees ………………………….380
Total # of Minorities …………………………..44
Total # of Women ……………………………..81
HUB PARTICIPATION
Required ……………………………………………5%
Proposed ……………………………………………5%
$ Value …………………………………………….TBD
STUDENT ENGAGEMENT
Paid Student Employment Hour Commitment: 900 HOURS/12-mo contract
Student Career Awareness Commitment: 20 HOURS/12-mo contract
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Implementation and Assessment Plan
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Upon approval by the Board, the contract will begin as indicated in the attachments.
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Recommendation:
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The Administration recommends that the Board authorize the waiver and contract as set forth in this item.
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Approvals:
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Recommended By:
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Signed By:
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Kari H. Race - Procurement Supervisor II
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Signed By:
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Aaron Konkol - Director I, Procurement and Risk Management
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Signed By:
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Thomas Conjurski - Chief Financial Officer
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Signed By:
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Regina Flores - Contract Compliance Supervisor II
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Signed By:
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Dr. Darienne Driver - Superintendent
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