What's happening
This bill allows school cafeteria and restaurant service contracts to be awarded based on best value, not just lowest bid.
Why it matters
Expands flexibility for schools. By allowing contracts for cafeteria and restaurant services to be awarded based on "best value," schools can consider factors beyond just price—such as food quality, nutrition, sustainability, experience, and service reliability—which may result in healthier and more effective school meal programs.
Aligns with modern procurement practices. The amendment brings school food service contracting in line with broader government procurement standards that emphasize "best value," potentially increasing competition and innovation among service providers.
Potential for improved student outcomes. With the ability to prioritize nutritional quality and service standards, schools may be better positioned to select vendors who can support student health and satisfaction, rather than being limited to the lowest-cost provider.
May impact local vendors and contract transparency. The shift from lowest bid to best value could make it easier for smaller, local, or specialized food service providers to compete if they offer unique benefits, but it also places greater responsibility on school boards to justify their selection criteria and ensure fair, transparent evaluations.
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Who cares
Headline styles
Reform School Cafeteria Contracts
Plain English, a few words. Used as the page title.
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History
- Referred to education
- Referred to education
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6000
2017-2018 Regular Sessions
IN SENATE
May 10, 2017
Introduced by Sen. MARCELLINO -- read twice and ordered printed, and when printed to be committed to the Committee on Education
AN ACT to amend the education law, in relation to contracts relating to the provision, maintenance and operation of cafeterias and restaurant service in schools
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph a of subdivision 14 of section 305 of the education law, as amended by chapter 273 of the laws of 1999, is amended to read as follows:
a. All contracts for the transportation of school children, all contracts to maintain school buses owned or leased by a school district that are used for the transportation of school children, all contracts for mobile instructional units, and all contracts to provide, maintain and operate cafeteria or restaurant service by a private food service management company shall be subject to the approval of the commissioner, who may disapprove a proposed contract if, in his or her opinion, the best interests of the district will be promoted thereby. Except as provided in paragraph e of this subdivision, all such contracts involving an annual expenditure in excess of the amount specified for purchase contracts in the bidding requirements of the general municipal law shall be awarded to the lowest responsible bidder, which responsibility shall be determined by the board of education or the trustee of a district, with power hereby vested in the commissioner to reject any or all bids if, in his or her opinion, the best interests of the district will be promoted thereby and, upon such rejection of all bids, the commissioner shall order the board of education or trustee of the district to seek, obtain and consider new proposals. All proposals for such transportation, maintenance, mobile instructional units, or cafeteria and restaurant service shall be in such form as the commissioner may prescribe. Advertisement for bids shall be published in a newspaper or newspapers
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11499-01-7
S. 6000 2
designated by the board of education or trustee of the district having general circulation within the district for such purpose or in the state's procurement opportunities newsletter in accordance with article four-C of the economic development law. Such advertisement shall contain a statement of the time when and place where all bids received pursuant to such advertisement will be publicly opened and read either by the school authorities or by a person or persons designated by them. All bids received shall be publicly opened and read at the time and place so specified. At least five days shall elapse between the first publication of such advertisement and the date so specified for the opening and reading of bids. The requirement for competitive bidding shall not apply to an award of a contract for the transportation of pupils or a contract for mobile instructional units or the provision, maintenance and operation of cafeteria or restaurant service, if such award is based on an evaluation of proposals in response to a request for proposals pursuant to paragraph e of this subdivision. The requirement for competitive bidding shall not apply to annual, biennial, or triennial extensions of a contract nor shall the requirement for competitive bidding apply to quadrennial or quinquennial year extensions of a contract involving transportation of pupils, maintenance of school buses or mobile instructional units secured either through competitive bidding or through evaluation of proposals in response to a request for proposals pursuant to paragraph e of this subdivision, when such extensions (1) are made by the board of education or the trustee of a district, under rules and regulations prescribed by the commissioner, and, (2) do not extend the original contract period beyond five years from the date cafeteria and restaurant service commenced thereunder and in the case of contracts for the transportation of pupils, for the maintenance of school buses or for mobile instructional units, that such contracts may be extended, except that power is hereby vested in the commissioner, in addition to his or her existing statutory authority to approve or disapprove transportation or maintenance contracts, (i) to reject any extension of a contract beyond the initial term thereof if he or she finds that amount to be paid by the district to the contractor in any year of such proposed extension fails to reflect any decrease in the regional consumer price index for the N.Y., N.Y.-Northeastern, N.J. area, based upon the index for all urban consumers (CPI-U) during the preceding twelve month period; and (ii) to reject any extension of a contract after ten years from the date transportation or maintenance service commenced thereunder, or mobile instructional units were first provided, if in his or her opinion, the best interests of the district will be promoted thereby. Upon such rejection of any proposed extension, the commissioner may order the board of education or trustee of the district to seek, obtain and consider bids pursuant to the provisions of this section. The board of education or the trustee of a school district electing to extend a contract as provided herein, may, in its discretion, increase the amount to be paid in each year of the contract extension by an amount not to exceed the regional consumer price index increase for the N.Y., N.Y.-Northeastern, N.J. area, based upon the index for all urban consumers (CPI-U), during the preceding twelve month period, provided it has been satisfactorily established by the contractor that there has been at least an equivalent increase in the amount of his or her cost of operation, during the period of the contract.
§ 2. Paragraph e of subdivision 14 of section 305 of the education law, as amended by chapter 464 of the laws of 1997, is amended to read as follows:
S. 6000 3
e. Notwithstanding the provisions of any general, special or local law or charter, a board of education or a trustee of a district, pursuant to rules and regulations promulgated by the commissioner, may award a contract for the transportation of pupils or a contract for mobile instructional units or for the provision, maintenance and operation of cafeteria or restaurant service by a private food service management company involving an annual expenditure in excess of the amount specified for purchase contracts in the bidding requirements of the general municipal law in compliance with the provisions of paragraph a of this subdivision or subsequent to an evaluation of proposals submitted in response to a request for proposals prepared by or for the board of education or trustee of a district. A contract awarded through a request for proposals shall be awarded based on best value in accordance with section one hundred three of the general municipal law. The commissioner, in addition to his or her existing statutory authority to approve or disapprove transportation contracts, may reject any award of a transportation contract or a contract for mobile instructional units that is based on an evaluation of proposals submitted in response to a request for proposals if he or she finds that (1) the contractor is not the most responsive to the request for proposals, or (2) that the best interests of the district will be promoted thereby.
§ 3. This act shall take effect July 1, 2017, provided that if this act shall become a law after such date, it shall take effect immediately and shall be deemed to have been in full force and effect on and after July 1, 2017.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the education law, in relation to contracts relating to the provision, maintenance and operation of cafeterias and restaurant service in schools
Purpose
The proposed legislation would eliminate or reduce legislative mandates and provide greater flexibility relating to transportation and educational management requirements.
Summary of provisions
Section 1 would amend paragraph a of subdivision 14 of section 305 of the Education Law to authorize that certain contracts may be advertised in the state's procurement opportunities newsletter in accordance with article 4-C of the economic development law and to eliminate the requirement that contracts for the maintenance and operation of cafeteria or restaurant services be competitively bid.
Section 2 would amend paragraph e of subdivision 14 of section 305 of the Education Law to allow for transportation and cafeteria contracts to be awarded through a request for proposals process based on "best value." Currently, State law requires the awarding of school district contracts to the lowest, responsible bidders. For complex technical and service contracts, this would allow districts to consider other factors in awarding contracts. This might include costs, such as conversion costs, rather than solely the price bid for a product.
Section 3 provides the effective date
Justification
This bill would authorize the transportation of school children, to maintain school buses owned or leased by a school district, contracts for mobile instructional units, and contracts to provide, maintain and operate cafeteria or restaurant service by a private food service management company to be advertised in the state's procurement opportunities newsletter in accordance with article 4-C of the economic development law. This is anticipated to provide greater visibility for procurement opportunities and as a result, increase competition and ultimately result in anticipated cost-savings to the district.
Additionally, this bill would eliminate the requirement that contracts for maintenance and operation of cafeteria or restaurant services be competitively bid. Instead, this act would allow these contracts and transportation contracts to be awarded through a request for proposals process by "best value" consistent with Chapter 2 of the Laws of 2012. For complex technical and service contracts, this would allow districts to consider other factors in awarding contracts.
This might include costs, such as conversion costs, rather than solely the price bid for a product. Section 103 of the general municipal law is also amended to provide school districts with the option of publishing procurement notices in the Contract Reporter instead of publishing in newspapers. Under current law districts are required to advertise in official newspapers designated by the board of education when placing legal notices. This option would reduce advertising costs and provide access to a greater audience leading to greater interest and ultimately better pricing for districts.
Legislative history
New Bill. FISCAL IMPLICATIONS :
The bill would result in cost savings to school districts and other educational entities from elimination of an unnecessary mandates.
Effective date
This act shall take effect July 1, 2017, provided that if this act shall become a law after such date, it shall take effect immediately and shall be deemed to have been in full force and effect on and after July 1, 2017.
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