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Final IFB for Warehouses 1.26.2021.Pdf Invitation For Bid (IFB) To Provide Food Distribution Services For the Pennsylvania Department of Agriculture Bureau of Food Assistance 2301 North Cameron Street Harrisburg, PA 17110-9408 Date of Issue: January 26, 2021 Page 1 of 59 Section I: Performance Requirements 1.01 Purpose 1.02 Regions 1.03 Realignment of ADRs 1.04 Volume 1.05 Estimates 1.06 Commodity Variety 1.07 Recipient Agencies (RAs) 1.08 Recipient Agency (RA) Classification 1.09 COMMODITY Codes 1.10 Inventory Levels 1.11 Inbound Shipments of COMMODITY 1.12 Receiving Appointments 1.13 Receiving Procedures 1.14 Freight Charges 1.15 COMMODITY Allocations 1.16 Allocation Acceptance and Refusals 1.17 Minimum Orders and Frequency of Deliveries 1.18 Days and Times of Deliveries 1.19 Holiday Schedules 1.20 COMMODITY Ordering Procedures for Ras 1.21 Outbound Deliveries 1.22 Delivery Sites 1.23 Delivery Drop Areas 1.24 Special Deliveries 1.25 Product Transfer 1.26 Transition Responsibility 1.27 Distribution FEEs 1.28 Distribution FEE Adjustments 1.29 Exceptions to FEE Adjustment 1.30 Storage FEEs 1.31 Payment of Distribution and Storage FEEs 1.32 Premium Storage FEEs 1.33 Minimum Invoice Amount 1.34 Warehouse and Delivery Equipment Requirements 1.35 Sanitation Requirements 1.36 Liaison with PDA 1.37 Computer Capability 1.38 Inventory Reports 1.39 Activity Reports 1.40 Record Retention, Reviews and Audits 1.41 Liaison with Recipient Agencies (RAs) 1.42 Receiving Reports 1.43 Accountability 1.44 Insurance 1.45 Shortages and Damages 1.46 Self-Service Agencies 1.47 Instructions for Completing Bid Sheets Page 2 of 59 1.48 Bid Award Criteria 1.49 Bid Submission 1.50 Financial Requirements 1.51 Performance Bond 1.52 Requirement of Successful Bidders Section II: General Bid Conditions 2.01 Licenses and Certificates 2.02 Prime Contractor Responsibilities 2.03 Other Requirements 2.04 Correction of Mistakes on Bid Sheets 2.05 Agreement Period 2.06 Agreement Termination 2.07 Incurred Costs 2.08 Addenda to IFB 2.09 Bid Duration 2.10 Additional Conditions 2.12 Single or Multiple Pricing 2.13 Non-use of Bid Sheet Attachments Attachment A Agriculture Distribution Regions (ADR) and ADR Map Attachment B Distribution Volume by ADR for two years Attachment C Recipient Agencies (RAs) Volume by ADR Attachment D Commodity Code Listing Attachment E Bid Sheet Template Page 3 of 59 Section I: Performance Requirements 1.01 Purpose This Invitation For Bid (IFB) is issued by the Commonwealth of Pennsylvania, Department of Agriculture, hereinafter referred to as PDA, to select a commercial food distributor, hereinafter referred to as DISTRIBUTOR, to receive, store, and deliver to eligible recipient agencies, hereinafter referred to as RAs, various food items, hereinafter referred to as COMMODITY, provided to PDA by the United States Department of Agriculture (USDA). Unless the context indicates otherwise, whenever the word “COMMODITY” is used herein, it shall be understood to include both. A commercial food distributor is defined as an entity currently receiving, storing, and delivering food product on a regularly scheduled basis with adequate facilities and equipment to receive, store and deliver, as required by the IFB, additional volumes of groceries, frozen food, and chilled items. The Pennsylvania Secretary of Agriculture has sole discretion to determine if entities submitting bids meet the definition of a commercial food distributor for the requirements of this IFB. Each successful DISTRIBUTOR will enter into an Agreement with PDA. 1.02 Regions Geographic areas covered by the IFB are identified as Agriculture Distribution Regions (ADRs). Bids submitted in response to the IFB must be submitted by ADR. DISTRIBUTOR may bid on more than one ADR; however, separate bids must be submitted for each ADR. Attachment “A” shows counties by ADR. 1.03 Realignment of ADRs PDA reserves the right to realign ADRs by county, in whole or in part; by RA; or by type of RA if PDA determines the realignment to be in its best interests. PDA will seek the advice of the affected distributor(s). If any DISTRIBUTOR terminates its Agreement with PDA for this IFB or is terminated by PDA prior to the scheduled termination date in Section 2.05 of this IFB, PDA may realign the affected ADR and add all or part of the affected ADR(s) served by the DISTRIBUTOR to another DISTRIBUTOR(s) under Agreement with PDA for this IFB, but only with the consent of the affected DISTRIBUTOR(s). When DISTRIBUTOR consents and accepts the additional responsibility for all or part of an ADR(s) forfeited by another DISTRIBUTOR, PDA may authorize the DISTRIBUTOR accepting the new ADR(s) in total or in part, to charge for the new area of service, FEEs which shall be no more than five percent (5%) higher than the highest FEEs charged in the accepting DISTRIBUTOR’s original service area(s) or the current FEEs of the ADR (or partial ADR thereof) being accepted, whichever is greater. 1.04 Volume The volume (number of total cases) of COMMODITY affected by the IFB are not guaranteed. However, the volume of COMMODITY distributed by ADR for the years ending June 30, 2019 and June 30, 2020 are provided on Attachment “B” for information purposes only. Page 4 of 59 1.05 Estimates DISTRIBUTOR shall understand that case volume and the number of agencies served are estimates and are subject to change. Annual volumes of COMMODITY under the IFB should approximate volumes listed on Attachment “B”; however, because USDA controls the total volume of product available to Pennsylvania, actual volumes are not guaranteed by PDA. An Agreement executed as a result of the IFB will not obligate PDA to specific quantities of COMMODITY, nor will PDA be obligated to a minimum or maximum number of RAs authorized to receive COMMODITY. 1.06 COMMODITY Variety PDA estimates that eighty eight (88) different COMMODITY items will be available annually under the IFB with an average of fifty (50) items carried in inventory at any one time. Note: DISTRIBUTOR is cautioned that inventory turns for COMMODITY is highly dependent on the DISTRIBUTOR’s effectiveness in informing RAs of cases of product allocated, pulled, and remaining in storage at the DISTRIBUTOR’s facility. The mix of COMMODITY for the National School Lunch Program (NSLP) and Traditional Program for the 2019-2020 year was 50% frozen; 5% chilled; and 45% dry. The mix for COMMODITY received under The Emergency Food Assistance Program (TEFAP) for 2019-2020 was 5% frozen, 93% dry and 2% chilled. Attachment “D” shows the current variety of COMMODITY available; however, no limit on variety is guaranteed. No guarantee is made by PDA of the actual number of different items. An average case of COMMODITY weighs 40 pounds and measures 1.1 cubic feet. 1.07 Recipient Agencies (RAs) A list of RAs by ADR and volumes of COMMODITY received for the years ending June 30, 2019 and June 30, 2020 are listed on Attachment “C”. The number of RAs eligible to receive COMMODITY is subject to change at any time by PDA. RAs include, but are not limited to, schools participating in the NSLP, day care facilities, and summer feeding agencies; TRADITIONAL recipient agencies such as institutions, and agencies eligible under TEFAP such as food banks, food pantries, and emergency feeding entities such as soup kitchens and homeless shelters. 1.08 Recipient Agency (RA) Classification Eligibility for RAs to receive COMMODITY is determined by USDA and varies by USDA program. Therefore, for purposes of defining minimum orders, delivery frequency, and calculating bid prices under the IFB, RAs will be classified by PDA as either: 1) NSLP RAs; 2) TRADITIONAL RAs/Charitable Institutions; or 3) TEFAP RAs. Approximately 60% of the total volume of COMMODITY to be distributed under the IFB will be to NSLP RAs; with the balance distributed to TRADITIONAL and TEFAP RAs. Page 5 of 59 PDA reserves the right to realign RAs without regard to ADR to improve efficiency. DISTRIBUTORS may, however, request of PDA a realignment of RAs by ADR to improve efficiency but realignment decisions rest solely with PDA. 1.09 COMMODITY Codes PDA will assign to each COMMODITY, prior to or on arrival, a numeric code that DISTRIBUTOR shall use with the COMMODITY description to track and report inventory and other activity. (See Attachment “D”). 1.10 Inventory Levels PDA attempts to maintain, on average, a six to eight week supply of COMMODITY received for NSLP and TRADITIONAL RAs; and an eight (8) to twelve week (12) supply of COMMODITY received for TEFAP RAs. However, inventory levels may surge beyond anticipated levels. DISTRIBUTOR shall work with PDA to project COMMODITY usage and inventory levels. Note: DISTRIBUTOR is cautioned that inventory turns for COMMODITY is highly dependent on the DISTRIBUTOR’s effectiveness in informing RAs of cases of product allocated, pulled, and remaining in storage at the DISTRIBUTOR’s facility. DISTRIBUTORs are encouraged to develop and maintain an efficient and effective line of communication for advising RAs of the availability of COMMODITY. 1.11 Inbound Shipments of COMMODITY Inbound shipments of COMMODITY are usually scheduled by USDA at predictable shipping periods; therefore, PDA will advise DISTRIBUTOR of the types and quantity of COMMODITY to be received. Inbound shipments normally arrive one item per load (850 – 2,000 cases more or less) in full truckloads or in full or partial railcar loads. PDA requests USDA to schedule inbound shipments to arrive by truck. However, DISTRIBUTOR must plan on some shipments to arrive by rail or piggyback. Shipments by rail will arrive at DISTRIBUTOR’s warehouse or a nearby railroad siding designated by DISTRIBUTOR.
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