1. Renewal Year Contract with a
Food Service Management Company
Training
Pennsylvania Department of Education
Division of Food and Nutrition (DFN)

2. ESSENTIAL questions
1
What is the process for What forms and
renewing a FSMC approvals are needed?
contract?
Renewal Year Contract with aFood Service Management Company Training
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3. ESSENTIAL Question 1
 What is the process for renewing a FSMC contract?
Renewal Year Contract with aFood Service Management Company Training
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4. The renewal process
1 - Download and complete renewal forms 6 - SFA completes Fact Sheet in PEARS
2 - Send to FSMC to complete Projected Operating 7 - Forward signed renewal contract to DFN
Costs and Budget Detail 8 - DFN enters approval on Fact Sheet in PEARS
3 - Forward to DFN for approval of unsigned forms 9 - Renewal approved
4 - DFN approves
5 - SFA secures signatures
Renewal Year Contract with aFood Service Management Company Training
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5. Renewal contract timeline
Renewal Year Contract with aFood Service Management Company Training
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6. Renewal contract timeline
 March – Complete the Projected Operating Costs and send to
the FSMC so they can complete the Expense Section.
 April – Send renewal documents to DFN
 May 1 – Deadline for submission to DFN for approval by June
30th
 May/June – Renewal contract is approved by DFN and SFA
secures signatures.
 June – SFA returns original signed contract to DFN and
completed Fact Sheet
 June – DFN approved Fact Sheet and renewal contract is
executed
Renewal Year Contract with aFood Service Management Company Training
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7. ESSENTIAL Question 2
 What forms and approvals are needed?
Renewal Year Contract with aFood Service Management Company Training
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8. Where to begin?
Download and save the Renewal Year Contract
documents
1. PEARS site (Child Nutrition Program Electronic Application and
Reimbursement System)
OR
2. www.education.state.pa.us
Renewal Year Contract with aFood Service Management Company Training
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9. PEARS SITE
 Form Download
 Forms
 Contracting with a Food Service Management Company (FSMC)
 Renewal Year Contract
 Projected Operating Costs
 Renewal Year Workbook
Renewal Year Contract with aFood Service Management Company Training
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10. Pde website
www.education.state.pa.us
 Programs D-G
 Food & Nutrition Services
 Contracting with a Food Service Management Company
(FSMC)
 Renewal Year Contract
 Projected Operating Costs
 Renewal Year Workbook
Renewal Year Contract with aFood Service Management Company Training
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11. Renewal year contract
 Cover Page
 Renewal Agreement Page
 Appendix H
 Appendix I
 Appendix J
 Projected Operating Costs
 Labor and Fringe Benefits, if applicable
 Renewal Year Workbook
Renewal Year Contract with aFood Service Management Company Training
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12. Completion of Renewal year contract
 Complete gray boxes
 Use tab to maneuver through document
 Do not retype or change document
 No addendums may be added
Renewal Year Contract with aFood Service Management Company Training
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13. Cover page
 Full Name of the School Food Authority
 PEARS Agreement Number (AUN)
 School Year
Renewal Year Contract with aFood Service Management Company Training
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14. Agreement page
 Enter the year
 Enter the numberof renewals remaining
 Contract is for one year at a time
 Sign in BLUE ink only, after DFN approval
 Must be executed (final approval by DFN) by June 30
Renewal Year Contract with aFood Service Management Company Training
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15. Renewal year contract checklist
 Lists all documents needed for submission to DFN
 Not part of the agreement itself
 Checklist items must be submitted BEFORE DFN can
approve contract
Renewal Year Contract with aFood Service Management Company Training
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16. Renewal Contract Timeline
MARCH
 Successfully complete e-training module
 Prepare renewal contract documents and send to FSMC
 Receive documents back from FSMC
April
 Submit documents to DFN for approval
 Must be submitted no later than May 1
Renewal Year Contract with aFood Service Management Company Training
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17. Renewal Contract Timeline
May-June
 Receive approved documents back from DFN
 Make two copies
 Obtain signatures for FSMC
 Return one copy to DFN
 Complete Fact Sheet in PEARS
 Process must be completed by June 30th
Renewal Year Contract with aFood Service Management Company Training
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18. Labor and fringe benefits
 If SFA employees, SFA completes this worksheet
 Download from FSMC Worksheets (PDE040a)
 Labor and Fringe is a tab within these worksheets.
 Indicate on drop down menu who employs responsible staff
 Total from worksheet should match Direct Labor & Benefits on
Projected Operating Costs
 Use titles, not names, of employees
Renewal Year Contract with aFood Service Management Company Training
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19. Projected operating costs
Section 1 – Actual In-School Revenue (also known as SFA
 budget)
SFA completes
 Developed by taking estimated meals multiplied by
rates for paid, reduced-priced, adult, and a la carte
meals
 Paid and reduced-price meals match those entered on
the sponsor application in PEARS “meal pricing
information”
Renewal Year Contract with aFood Service Management Company Training
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20. Projected operating costs
Section 2 – federal reimbursement
 Expected reimbursement for meals projected to be claimed
 Comparable to ADP and meal counts in prior year unless
participation hasincreased/decreased
Renewal Year Contract with aFood Service Management Company Training
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21. Projected operating costs
Section 3 – State Reimbursement
 Complete commodity usage area
 Always a negative number
 FSMC crediting SFA for commodity usage
 State reimbursement meal counts match meal counts for
federal reimbursement (Section 2)
Renewal Year Contract with aFood Service Management Company Training
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22. Projected operating costs
Section 4 - Expenses
 Completed by FSMC in bid proposal
 Separate POC if participating in CACFP or SFSP
 Enter total anticipated amount FSMC to receive in rebates,
discounts, applicable credits
 Section 1 through 3 equals total revenue
 Section 4 minus rebates, discounts, and applicable credits
equals total expenditures
 Profit (loss) – total revenue minus total expenses.
Renewal Year Contract with aFood Service Management Company Training
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23. Budget Summary
 Budget Summary itemized in full detail needs to be submitted
with POC
 Total cost under Direct Labor and Benefits equals total amount
for Labor and Fringe worksheets
 Detail Other Direct Costs, Indirect Costs and Other
 No new expense categories may be added in renewal year
contracts
Renewal Year Contract with aFood Service Management Company Training
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24. Budget Summary
 Administrative fee – charged to SFA to manage program fee
structure: cost per meal or flat fee or combination of both
 Management fee – profit for the FSMC fee structure: cost per
meal, flat fee, or combination of both
 Administrative fee and management fee cannot increase more
than the CPI
Renewal Year Contract with aFood Service Management Company Training
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25. Budget Summary Example
 Original Contract
 Management fee is $0.0254 per meal
 Administrative fee is $25,000
 For Renewal Year if CPI is 3.5%
 Management fee is $0.0263 per meal
 Administrative fee is $25,875
Renewal Year Contract with aFood Service Management Company Training
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26. Renewal Year workbook
 Choose tabs at bottom of page
 Directions on the first tab
 Needs to be completed for each renewal year
Renewal Year Contract with aFood Service Management Company Training
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27. Renewal Year workbook
 Complete the current year expenses and the renewal year
expenses
Renewal Year Contract with aFood Service Management Company Training
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28. Renewal Year Contract Submission
 Once you have completed the renewal year contract and all the
required worksheets and documents, you are ready to send
your renewal contract to DFN by emailing it to
RA-fiscal@pa.gov
 DFN staff will review the renewal year contract and will notify
the SFA of any revisions or comments.
 The renewal year contract is due to DFN by May 1. We highly
recommend submitting it in March or April due to the large
number of contracts received by DFN each year.
Renewal Year Contract with aFood Service Management Company Training
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29. Renewal Year Contract Approval
 DFN approves with signature on each page
 Approval indicates documentation done, not compliance with
all regulations
 DFN returns approved renewal year contract with cover letter
 SFA makes two copies
 SFA obtains original signatures (in blue ink) on all three sets of
documents
 SFA returns one set to DFN, one to vendor, keeps one for SFA
files
Renewal Year Contract with aFood Service Management Company Training
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30. Fact Sheet Completion
Access and complete Fact Sheet in
PEARS NSLP Sponsor Application
 Start
 Under Purchase and Sell Information, answer “Yes” to FSMC
 Select FSMC from drop down box
 Go to bottom of application and hit “submit”
 Go back out and there will be a new green GO button – Food
Service Management Company Fact Sheet
Renewal Year Contract with aFood Service Management Company Training
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31. Fact Sheet Completion
 Enter the name and email address of the person completing the
Fact Sheet
 Check “This is a Renewal Year Contract”
 Numbers 1-3 and 8-12 to be completed for renewal year
contract
Renewal Year Contract with aFood Service Management Company Training
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32. Fact Sheet Completion
 Number 1 – Indicate Food Service Management Company
 Number 2 – Indicate fixed-price or cost-reimbursable
 Number 3 – Enter contract dates and information
Renewal Year Contract with aFood Service Management Company Training
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33. Fact Sheet Completion
 Number 8 – Profit/loss amount
 Number 9 – Winning bidder
 Number 10 - Total cost of renewal contract
Renewal Year Contract with aFood Service Management Company Training
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34. Fact Sheet Completion
 Number 11– Only if a fixed-price contract
 Number 12 – Date renewal contract signed
 Hit Submit to complete Fact Sheet
 DFN will approve
 Renewal contract executed
Renewal Year Contract with aFood Service Management Company Training
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35. DO’s and DON’Ts
 DO
 Send required documents and renewal contract to DFN for
approval prior to signing agreement page
 Plan ahead and adhere to the timelines
 Send in only ONE copy for approval to DFN
Renewal Year Contract with aFood Service Management Company Training
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36. DO’s and DON’Ts
 DO
 Make 3 copies for SFA and FSMC from approved document
 Get all copies signed in blue ink
 Ask questions – DFN staff is available to help you
Renewal Year Contract with aFood Service Management Company Training
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37. DO’s and DON’Ts
 DO NOT
 Send the documents to DFN in binders or portfolios
 Change order of documents as listed in the Renewal Contract
Checklist
Renewal Year Contract with aFood Service Management Company Training
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38. DO’s and DON’Ts
 DO NOT
 Sign the renewal year contract prior to receiving DFN’s
approval on each page
 Forget to complete Fact Sheet in PEARS
 Add addendums or amendments unless using DFN’s
standard addendum to the FSMC contract
Renewal Year Contract with aFood Service Management Company Training
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39. What If I Have Questions?
OUR Contact
DETAILS
333 Market Street, 4th Floor
Harrisburg, PA 17126
NSLP FSMC Contracts
800.331.0129
Division of Food and Nutrition
RA-Fiscal@pa.gov
Pennsylvania Department of Education
http://childnutritiontoolbox.com/
Renewal Year Contract with aFood Service Management Company Training
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