Agenda

Return

C. 39

To:	Board of Supervisors
From:	Anna Roth, Health Services Director
Date:	May 23, 2023

Contra

Costa

County

Subject:

Purchase Order with Fresh & Ready Foods LLC

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 05/23/2023

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Ken Carlson, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Karin Stryker, (925) 370-5141

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: May 23, 2023
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Purchasing Agent, or designee, to execute on behalf of the Health Services Director, a purchase order with Fresh & Ready Foods LLC in an amount not to exceed $1,500,000 to purchase pre-made sandwiches, salads, fruit cups and other snacks as needed for the Food and Nutrition Services Department and the Contra Costa Regional Medical Center (CCRMC) for the period from June 30, 2023 through June 30, 2026.

FISCAL IMPACT:

Approval of this action will result in expenditures of up to $1,500,000 over a three-year period and will be funded by Hospital Enterprise Fund I revenues.

BACKGROUND:

Fresh & Ready Foods LLC has provided inexpensive products and demonstrated the ability to prepare bulk orders with consistent delivery 2-3 times per week, to meet the patient nutrition needs of CCRMC. Food products typically consist of a variety of sandwiches and salads for patients, as well as a variety of salads, sandwiches, and fresh snacks for purchase at the CCRMC café. This vendor has been able to meet the nutrition service demands that have fluctuated over time due to staff leaves that impact the amount of food items prepared in house. This vendor is critical to ensuring adequate sandwiches are prepared and pre-stocked in patient nourishment rooms.

Prior to Fresh & Ready LLC, CCRMC used Food Service Partners with an annual expenditure of nearly $1 million, before they went out of business unexpectedly in mid-2022. The Food and Nutrition Services department’s research on replacement suppliers found that Fresh & Ready LLC’s products have a longer shelf life and are 50% less expensive than other comparator vendors. While less expensive, adjusting for the additional staff traffic in the cafeteria, post-COVID operational needs, and inflation over the three-year period of the purchase order, Food and Nutrition Services believes that the $1 million per year typical spend from Food Service Partners in the past will be equivalent to a Fresh and Ready purchase order for three years.

An additional benefit of utilizing Fresh & Ready LLC is if their products expire, they will take back those items and provide a credit to the County. Using US Foods for the same items would take up more space and would require 2-3 people each day to prepare. With limited staffing and storage capacity, this would not be a realistic long-term plan.

On July 26, 2022, Purchase Order #25611 was executed in an amount of $199,000 to purchase miscellaneous food products, including but not limited to pre-made food as required by CCRMC for the period from June 30, 2022 through June 29, 2023. On April 24, 2023, an amendment was approved by the Board to increase the payment limit by $120,000 to a new payment limit of $319,000 for the period June 30, 2022 through June 29, 2023.

Approval of this request will allow CCRMC to continue procuring pre-made sandwiches, salads, fruit cups and other snacks as needed for the Food and Nutrition Services Department and CCRMC through June 30, 2026. The term intentionally includes one additional day than needed for a 3-year purchase order, to align the end date with the end of the 2026 fiscal year.

CONSEQUENCE OF NEGATIVE ACTION:

If this action is not approved, there will be a significant strain on the Nutrition Department that is already experiencing staffing shortages. Senior management has requested the continued food services of this vendor to ensure patient food needs are met and that accreditation surveys and/or health inspection issues are mitigated.