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Institution Food House, Inc., Hickory, NC, was awarded a contract to provide food, supplies, storage and delivery of USDA commodities to the district on June 13, 2006. The amount of the contract was $ 11,456,449.04. This contract was for a one year term, with the option to renew for up to four one-year periods.
The service provided to date has been satisfactory. The renewed period for this contract would be July 1, 2007, through June 30, 2008, and is estimated to cost the district $ 7,720,419.74.
The estimated cost is substantially less for 2007-08 due to several factors:
- Estimated cases of French fries have been reduced due to high school menu change
- Number of cases of 100% juice greatly reduced due to a menu change (effective 2007-08, juice is no longer offered as a fruit choice)
- Quantities of cookie dough greatly reduced due to decreased sales of cookies
- Total estimated usage of processed commodities was adjusted from last year to reflect actual estimated purchases for this year. This method was approved by our North Carolina Department of Public Instruction School Nutrition consultant.
RECOMMENDATION: The administration recommends the board renew the contract with Institution Food House, Inc., Hickory, NC, in the amount of $ 7,720,419.74, to provide food, supplies, storage and delivery of USDA commodities to the district.
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