Food Service Management Company

Contracts in School Nutrition Programs


Section 7 CFR 210.2 “Food service management company” of the National School Lunch Program (NSLP) regulations defines a food service management company (FSMC) as "a commercial enterprise or a nonprofit organization which is or may be contracted with by the school food authority to manage any aspect of the school food service."  The requirements for school food authorities (SFAs) that contract with a FSMC are addressed in 7 CFR 210.16 and the applicable sections of the NSLP regulations below.

  • 7 CFR 210.12(b) requires compliance with the provisions of 7 CFR 210.16(a)(8) regarding the establishment of an advisory board of parents, teachers, and students.
  • 7 CFR 210.16(a)(1) requires adherence to the procurement standards of 7 CFR 210.21. 
  • 7 CFR 210.16(a)(3) requires SFAs to monitor the food service operation through periodic on-site visits. CSDE requires SFAs to complete FSMC monitoring forms two times per year per site. Refer to the CSDE's School Food Authority/Food Service Management Company Monitoring Form.
  • 7 CFR 210.19(a)(5) summarizes the state agency requirements for overseeing SFAs with a FSMC, including contract review and approval and SFA review. 
  • 7 CFR 210.16(a)(9) requires SFAs to obtain written approval of invitations for bids and requests for proposals before their issuance when required by the state agency. The SFA must incorporate all state agency required changes to its solicitation documents before issuing those documents.
  • 7 CFR 210.16(a)(10) requires that the state agency has reviewed and approved the contract terms and that the SFA has incorporated all state agency required changes into the contract or amendment before any contract or amendment to an existing FSMC contract is executed. Any changes made by the SFA or FSMC to a state agency pre-approved prototype contract or state agency approved contract term must be approved in writing by the state agency before the contract is executed. When requested, the SFA must submit all procurement documents, including responses submitted by potential contractors, to the state agency, by the due date established by the state agency.
  • 7 CFR 210.21(d)(3) requires that SFAs must include the Buy American requirement in all procurement procedures, solicitations, and contracts.
  • 7 CFR 210.21(f) defines the requirements for cost reimbursable contracts. 

 

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Monitoring

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