SFSP Participation by Higher Education Institutions, Hospitals, and other Non-Profit Organizations under Contract with a FSMC
This memorandum provides guidance to State agencies administering the Summer Food Service Program (SFSP) that are seeking to approve non-profit organizations such as higher education institutions and hospitals (referred to collectively herein as “Organizations”) that are under contract with a food service management company (FSMC) to provide food service operations.
These Organizations offer a unique opportunity for SFSP participation, as they are found in communities nationwide and already provide meal service year-around to students, patients, and others. As SFSPs operate for a short duration, the reimbursable meals served would likely constitute a small proportion of the overall value of the year-round food service operations contract. With that in mind, it would be unlikely that an Organization’s approval to participate in the SFSP would result in a material change to their FSMC contract. However, the Organization needs to consider the change in the context of the solicitation and the resulting contract.
The ultimate decision, however, lies with the Organization and the decision must be documented along with the rationale to support their decision. A material change is defined as a change made to a contract after award that alters the terms and conditions of that contract substantially enough that, had other bidders known of these changes in advance, they could have bid differently and more competitively.