CHILD NUTRITION COOPERATIVE

 

Cooperative Purchasing Membership Agreement

 

This agreement is to define the cooperative purchasing group referred to as the Child Nutrition Cooperative.  Montana Cooperative Services (MCS) shall be the sponsoring organization.

 

The name of this purchasing group shall be the Child Nutrition Cooperative, hereinafter referred to as the "CNC.”  The member districts, private schools, institutions, or childcare centers hereby agree to cooperatively purchase upon the following terms and conditions:

 

1.         The members of the CNC are duly constituted school districts, private schools, institutions, or child care centers, within the state of Montana operating food service programs.

 

2.         The members of the CNC have joined together for the purpose of letting bids for the purchase of selected food, supplies, chemicals, paper, and equipment.

 

3.         The CNC member shall be represented by an Advisory Board. The Advisory Board will consist of one representative from each member school district, private school, institution, or child care center.

 

4.         Duties of the Advisory Board will be to:

5.         All bids and awards materials and services supplied under this contract shall comply with all local, state, and federal laws and regulations.  The contractor shall maintain all applicable licenses and permits. The members of the CNC agree to establish such contract to the extent permitted by law and to the extent agreed by the parties.

 

6.         No member of the CNC will accept responsibility for the performance of any purchasing contract by the vendor or the payment of the purchases of any other member.

 

7.         Each member agrees to “Buy American” as outlined in the Commodity Distribution Reform Act and WIC Amendments of 1987 and Section 250.23 of the Federal Food Distribution Program regulations.

 

 

8.         The award shall be a prime vendor agreement. The Advisory Board shall receive, review, and develop a recommendation for the bid award.

 

9.         The final approval of the bid award will be the sole responsibility of the governing body of the sponsoring organization – MCS.

 

10.        Members agree to purchase all products they estimated from the awarded vendor. Members are responsible to notify the vendor if their award purchases differ from the estimates by plus or minus 15%. 

 

11.        This agreement shall be in full force and effect from July 1, 2009 to June 30, 2010.  Any member may cancel this agreement at any time upon written notice to the Executive Director of Montana Cooperative Services.  The effective date of termination of the terms and conditions of this agreement shall be thirty (30) days from the date of the receipt of notice of cancellation.  The individual member withdrawing from the CNC will not receive a refund of their membership fee.

 

12.        MCS members will not pay a fee.  Montana schools that are not members of MCS will pay $100 per year for a “food only membership” payable to MCS.  This fee will be used to cover the cost incurred in preparing and presenting the bid information to newspapers, vendors, brokers, and members.  Fees will be reviewed and may be adjusted annually. 

 

13.        Members agree to attend an annual training and information session each year.

 

14.        Members agree to comply with all reasonable vendor time lines and minimum and maximum order quantities.  The minimum order for each drop will be $500.00.

 

15.            Montana Cooperative Services agrees to serve as the fiscal agent for the CNC Purchasing Program and to administer Cooperative Purchasing according to the terms herein stated.

 

16.        The following duties shall be the responsibility of MCS to each entity entering into this cooperative purchasing agreement:

 

a.         amalgamate all statistical data relevant to cooperative purchasing in order to promulgate a valid basis upon which to solicit bids.

 

b.         coordinate those activities commensurate with updating and perpetuating proper specifications inherent within the bidding process.

 

c.         prepare and print the official bid document and send said bid document to suppliers of merchandise.

 

d.         prepare and cause to be published the official legal notice of the Bid Opening.

 

e.         conduct the public Bid Opening and resulting Bid Review in accordance with Montana statutory provisions and be responsible for bid award determination based upon those provisions and restrictions.

 

f.          compile and prepare bid awards, notices, and provide same to each member.

 

g.         assist any respective member with any problems related to the processing and delivery of orders from the supplier.

 

h.         participate in an annual audit of cooperative purchasing accounts and records.

 

i.          Periodically conduct audits of the prime vendors pricing to determine adherence to the contract.

 

j.          Obtain certifications of vendor compliance with provisions of the following Acts: Fair Labor Standards; Occupational Safety and Health; Energy Policy and Conservation Act; Equal Employment Opportunity; Clean Air Act; Clean Water Act; Executive Order’s 11375, 117389, and 12549; and Environmental Protection Agency Regulations, and any others which may be required.

 

 

17.        Any penalties assessed against any participating companies for late deliveries or for any default by any company shall be credited to the accounts of the individual members and said penalties, if any, shall be the responsibility of Montana Cooperative Services to properly collect.

 

18.        Each member agrees to make a good faith estimate of the quantity of products that they expect to purchase for the next year and for each year in which a bid is solicited. During the first year of participation in this bid, when estimating this number please take into consideration such things as declining enrollment, prior commitments, or large inventory that will be reduced.  These estimates shall be consolidated and vendors will be requested to quote prices based on this total volume.  Estimates are due to MCS before any purchases are made.

 

19.        Members agree to provide a total of the dollars annually expended and to purchase not less than 65% of the total dollars they annually expend on food and food service related supplies through the CNC selected prime vendor.  Members are allowed to purchase up to 35% of their total dollars expended from other vendors at their sole discretion.

 

20.        Failure to uphold purchasing commitments or to follow CNC agreements may result in the vendor(s) refusing to sell product to members at the agreed upon price.

 

21.        The estimated 65% of the dollars expended for food for the following year is:

 

$___________________________ (This is 65% of last years food expenditures --- does not include wages.  See # 19.)

 

 

Dated this _______________ day of ________________________, 2009.

 

In Witness Whereof, the said parties have hereunto subscribed their names on the date above written.

________________________________________                                       __________________________

Authorized Representative                                                                          Authorized Representative

School District, School, Children Center, Institution                                    Montana Cooperative Services

                                                                                                    

                                                                       

________________________________________

School District Name                                                            

 

 

________________________________________

Mailing Address

 

 

_______________________________________

City, State, Zip Code

 

Return the signed original agreement to:

Frank Loehding, MCS

2698 3RD ST NW

Sidney, MT 59270

 

Phone:  406-488-6247

Fax:  406-488-6246