Calculating Vendor Payment Under the Type II Contract
The award of bid under the Type II contract is to the lowest responsible bidder. The board of education or director of a non-public school determines bidder responsibility. The per meal fee is composed of:
- The management fee, per meal; and
- The direct cost of operations, consisting of food, labor and miscellaneous expenses per meal.
For example:
|
Management Fee Direct Cost of Operations Per Meal Cost |
$0.20 + $2.05 = $2.25* |
Payment to the vendor is limited to:
- The extent of program income.
- Contract terms - meals and equivalent meals multiplied by the bid price.
For all examples:
|
Meal pattern meals served in one month Equivalent meals served in one-month Total meals |
13,000 + 7,000 = 20,000 |
Per meal bid price comprised of:
|
Direct operating costs Management fee Per meal bid price |
$2.05 + $0.20 = $2.25 |
Monthly payment under contract terms:
|
Total meals Equivalent meals served in one-month Monthly payment |
20,000 + $2.25 = $45,000 |
