Skip to main content

Contracting with a Food Service Management Company

The U. S. Department of Agriculture (USDA) has implemented some changes that must be reflected in the bid procedures, documents, and contracts when working with a food service management company (FSMC). This requires all schools that contract with an FSMC to go out to bid using the new documents and meeting the regulatory requirements. All contract materials, RFP/IFB, Contracts, and Renewals must be reviewed and approved by the Agency prior to execution of the documents. The RFP/IFB and Contract are templates that will show track changes. This is to aid the review and approval process. Revised procedures, documents, and guidance are posted below.

Child Nutrition Request for Proposals/Invitation for Bids (RFP/IFB) and Contract Instructions


This prototype document is provided by the State of Vermont Agency of Education for use by a school food authority (or supervisory union) initiating a new contract with a food service management company to provide meal services for the National School Lunch, Breakfast Program, Child and Adult Care Food Program, and the Summer Food Service Program. This RFP/IFB template is based on the requirements contained in 7 CFR Parts 210, 220, 225, 226, 245, 250, 3016.36, 2 CFR 200, the Fresh Fruit and Vegetable Program, and USDA’s Contracting with Food Service Management Companies – Guidance for School Food Authorities (SFAs) – 2016 manual.  Language has also been added to bring the RFP/IFB template into compliance with the Procurement Requirements for the National School Lunch, School Breakfast, Summer Food Service Program, and Child and Adult Care Food Program.

About the Templates

The RFP/IFB must be prepared by the School Food Authority (SFA), not the Food Service Management Company (FSMC). The template is a sample RFP/IFB meant to be modified to meet your needs or local requirements. The RFP/IFB template has a component to track any changes to allow the State Agency to review and approve them more quickly and it also contains choices that the SFA must indicate in the document.  The school business office or designee must read the RFP/IFB template and select the desired choice and delete the language that was not selected. You should have your administrative staff review the RFP/IFB and amend to ensure that the document reflects the best terms possible for the SFA and covers all facets of your food service operation prior to submission for State Agency review and approval. The approved document will be returned to the SFA with the tracked changes incorporated into the document.

Allowable Contracts

SFAs must enter into a fixed-price contract with a food service management company using this Food Service Management Company RFP/IFB Contract Template.

•          Fixed-price: Under a fixed-price contract, the recipient agency pays a fixed cost per meal provided or a fixed cost for a certain time period.

AOE Prior Approval

Prior to the contract being signed by either party, the FSMC’s proposal documents and all proposed contract materials between a School Food Authority and a food service management company must be submitted for review and approval by the VT Agency of Education through the Child Nutrition Programs, 1 National Life Drive, Davis 5, Montpelier, VT 05620.  Any changes to the contract required by the State Agency (SA) must be made or all costs resulting from the contract are unallowable costs and cannot be paid from the nonprofit food service account.

Point of Service Systems and Equipment

It is not required that an SFA purchase a particular Point of Service (POS) System or specific equipment when contracting with an FSMC.  If the SFA required a POS System or any additional equipment, this requirement and all specifications must have been included in the RFP/IFB.

Submission to AOE

Upon completion of the RFP/IFB, complete the Food Service Management Company RFP/IFB and Submission Form 1 to ensure all requirements are included. Submit Submission Form 1 with your proposed RFP/IFB, and all of the bid materials for State Agency review to Conor Floyd.  Please also provide information about advertising, including where it will be advertised, how long it will be advertised and if materials will be sent directly to potential bidders, including the list of potential bidders.


If you have any questions regarding the Contract or required language, please call Conor Floyd, Grant Program Manager for Child Nutrition Programs, at (802) 828-0310 or by email at

RFP/IFB and Contract Materials

Submission Forms

Additional RFP/IFB Contract Documents

FSMC Contract Renewal Documents

Both documents must be completed and submitted to the Agency.

FSMC Monitoring Form

SFA's that contract with FSMC's must conduct annual monitoring of the SFA and the contractor.