[Code of Federal Regulations]

[Title 7, Volume 4]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 7CFR226.21]



[Page 236-237]

 

                          TITLE 7--AGRICULTURE

 

    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE

 

PART 226_CHILD AND ADULT CARE FOOD PROGRAM--Table of Contents

 

                    Subpart E_Operational Provisions

 

Sec. 226.21  Food service management companies.



    (a) Any institution may contract with a food service management 

company. An institution which contracts with a food service management 

company shall remain responsible for ensuring that the food service 

operation conforms to its agreement with the State agency. All 

procurements of meals from food service management companies shall 

adhere to the procurement standards set forth in Sec. 226.22. Public 

institutions shall follow applicable State or local laws governing bid 

procedures. In the absence of any applicable State or local laws, and in 

addition to the procurement provisions set forth in Sec. 226.22, the 

State agency may mandate that each institution with Program meal 

contracts of an aggregate value in excess of $10,000 formally advertise 

such contracts and comply with the following procedures intended to 

prevent fraud, waste, and Program abuse:

    (1) All proposed contracts shall be publicly announced at least once 

14 calendar days prior to the opening of bids. The announcement shall 

include the time and place of the bid opening;

    (2) The institution shall notify the State agency at least 14 

calendar days prior to the opening of the bids of the time and place of 

the bid opening;

    (3) The invitation to bid shall not provide for loans or any other 

monetary benefit or terms or conditions to be made to institutions by 

food service management companies;

    (4) Nonfood items shall be excluded from the invitation to bid, 

except



[[Page 237]]



where such items are essential to the conduct of the food service;

    (5) The invitation to bid shall not specify special meal 

requirements to meet ethnic or religious needs unless special 

requirements are necessary to meet the needs of the participants to be 

served;

    (6) The bid shall be publicly opened;

    (7) All bids totaling $50,000 or more shall be submitted to the 

State agency for approval before acceptance. All bids shall be submitted 

to the State agency for approval before accepting a bid which exceeds 

the lowest bid. State agencies shall respond to any request for approval 

within 10 working days of receipt;

    (8) The institutions shall inform the State agency of the reason for 

selecting the food service management company chosen. State agencies may 

require institutions to submit copies of all bids submitted under this 

section.

    (b) The institution and the food service management company shall 

enter into a standard contract as required by Sec. 226.6(i). However, 

public institutions may, with the approval of the State agency, use 

their customary form of contract if it incorporates the provisions of 

Sec. 226.6(i).

    (c) A copy of the contract between each institution and food service 

management company shall be submitted to the State agency prior to the 

beginning of Program operations under the subject contract.

    (d) Each proposed additional provision to the standard form of 

contract shall be submitted to the State agency for approval.

    (e) A food service management company may not subcontract for the 

total meal, with or without milk, or for the assembly of the meal.



[47 FR 36527, Aug. 20, 1982, as amended at 53 FR 52594, Dec. 28, 1988]