Review Agenda Item
Meeting Date: 5/26/2022 - 5:30 PM
Category: Report of the Committee on Accountability, Finance, and Personnel
Type: Action
Subject: 14. Request to Waive Administrative Policy 3.09(9)(e) and to Extend a Contract with Oliver Packaging and Equipment Company for a Fourth Year for the Lease of Heat-seal Machines and Food-packaging Supplies
Strategic Plan Compatibility Statement:
Goal 3
Effective and Efficient Operations
Policy: Admin Policy 3.09 - Purchasing and Bidding Requirements
Attachments Action on Request to Waive Administrative Policy 3.09(9)(e) Related to Nutrition Services: Proposed Contracts and Supporting Documents
File Attachment:
1. RFB 5772 - Oliver Packaging and Equipment Co. - Award Letter.pdf
2. RFB 5772 Oliver Packaging First Extension.pdf
3. RFB 5772 Oliver Second Extension Award Letter.pdf
4. RFB 5772 Oliver Packaging First Modification.pdf
5. RFB 5772 Oliver Second Modification.pdf
6. RFB 5772 Oliver Third Extension Award Letter.pdf
Background: The Administration is requesting authorization to extend a contract with Oliver Packaging and Equipment Company for the lease of heat-seal machines and food-packaging supplies. Contractor is supplying five (5) 6-foot 1908 heat-seal machines and three (3) 12-foot 1908 heat-seal machines as well as food-packaging supplies for use at various central kitchen locations throughout the district.

Oliver Packaging and Equipment has waived the monthly fees on the lease of these machines, provided that the District purchase a minimum of 1.7 million units of food-packaging supplies through them annually for use in the heat-seal machines. The Department of Nutrition Services has determined the minimum purchase required under this lease to be approximately $450,000/year. The projected volume of food-packaging supplies needed for SY22-23 is approximately 7 million units or $1,750,000.

RFB 5772 was closed on April 5, 2019. Oliver Packaging was the lowest complying bidder for award Group B.

Due to numerous supply-chain, logistic, and labor issues, the Administration is requesting that the Board approve an extension for a fourth year for this contract in the hope that the supply-chain, logistic, and labor issues subside, at which we will then issue an RFB.

The contract will run from August 1, 2022, through July 31, 2023.

The total cost of the contract will not exceed $1,750,000.
Fiscal Impact Statement: Budget Code:
LNH-0-0-LNH-NU-ESUP = $1,750,000
Implementation and Assessment Plan Upon approval by the Board, the contracts will begin as indicated in the attachments.
Recommendation: Your Committee recommends that the Board authorized the request to waive Administrative Policy 3.09(9)(e) and extend the contract for a fourth year as set forth in the attachments to this item.
Approvals:
Recommended By:
Signed By:
Jacqueline M. Mann, Ph.D. - Board Clerk/Chief Officer