ADMINISTRATIVE REPORT

Date: August 26, 2002
Authors/Local: Ernie Leffler/Ray

Stensrud/7437
RTS No. 2823

CC File No. 4664

Council: September 10, 2002

TO:	Vancouver City Council
FROM:	Director of Non-Market Operations
SUBJECT:	Award of Food Service Contract for the Evelyne Saller Centre

RECOMMENDATION

A. THAT the Food Service Contract for the Evelyne Saller Centre be awarded to Aramark Canada Ltd. for a term of five (5) years with the option to extend for an additional two (2) years; source of funding is the Province (Ministry of Human Resources).

B. THAT the Director of Non-Market Operations be authorized to enter into a Contract in a form satisfactory to the Director of Legal Services.

GENERAL MANAGER'S COMMENTS

The General Manager of Community Services RECOMMENDS approval of A and B.

COUNCIL POLICY

The policy of Council is to award contracts for the purchase of equipment, supplies and services that will give the highest value based on quality, service and price.

Contracts with a value over $300,000 are referred to Council.

PURPOSE

This report seeks Council's approval to award a contract to operate daily food services (cafeteria) in the Evelyne Saller Centre to Aramark Canada Ltd.

BACKGROUND

The Evelyne Saller Centre is a community resource centre located at 320 Alexander Street in the downtown eastside of Vancouver.

The Centre, serving the community since l976, is operated by the City of Vancouver under a shared provincial and City funding agreements. The cafeteria operates 365 days a year, providing breakfasts, lunches and suppers to residents in the downtown eastside. Currently the Centre's cafeteria averages 840 meals per day. The cafeteria operation is 100% funded by the provincial government (Ministry of Human Resources). The budget allocated for the food service operation in 2002/03 is $1,170,200. There is no direct cost to the City for the food service operation.

DISCUSSION

The current Food Services Contractor is Aramark Canada Ltd. Council approved an extension for five (5) years in l995. An eighteen (18) month extension was negotiated in 2001. The current Contract expires August 31, 2002.

A Request for Proposals from Food Service vendors was issued in June of 2002. A copy of the RFP is on file with the City Clerk's Office. Three proposals were received.

Criteria for selecting the food vendor included the following:

· Financial Offer (Pricing) - including packages to employees and plans to support DTES Vendors
· Proponent Qualifications
· Relevant Experience
· Involvement in the Community
· Quality Assurance/Improvement programs
· Quality, Quantity and Variety of the food that can be provided within the set budget
· Value Added Services
· Quality of Proposals

A detailed evaluation of the proposals was undertaken. Aramark, having lowest Administration and Management fees overall detailed an operating plan that fit the budget, is realistic, and will allow for flexibility.

	Aramark	Compass	NVF
Administration expenses as % of total operating costs	3.0	5.5	5.0
Management Fee as % of the total operating costs	2.0	2.5	3.5

Based on the criteria measured, interviews and evaluations made, it is recommended that the proposal submitted by Aramark Canada Ltd. be approved. The Ministry of Human Resources concurs with the above recommendation.

The Aramark group has comprehensive expertise in food service management in the health field and institutional food service operations. The food service company will provide the Evelyne Saller Centre with cost effective, wholesome, nutritious, varied menus, 365 days a year. All products will meet the Canadian Standards and Food Guide Act and will comply with all Federal, Provincial, and local health and/or safety laws and regulations. Aramark has indicated support for a staff strategy to partner, where possible, with existing DTES food enterprises to supply products and trained food service personnel to the Centre's cafeteria operation. A new contract will reflect this strategy. Aramark has confirmed that their offer will meet our operational requirements. They have developed an operating plan within our budget that is realistic, and will allow for flexibility in managing expenditures. Aramark has demonstrated experience in labour relations, improvement/quality assurance programs, occupational health and safety standards practices and procedures. Of the three proposals, Aramark has the lowest Administration fees (3%) and Management fees (2%) of the actual operating costs.

CONCLUSION

Three proposals to operate a Food Service Contract at the Evelyne Saller Centre were evaluated on the bases of a set of criteria required to meet the objective of operating the Centre's cafeteria efficiently and cost effectively. Interviews were conducted to assist further evaluation. It is recommended that Aramark Canada Ltd. be awarded the contract for a term of five (5) years with the option to extend for an additional two (2) years.

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(c) 1998 City of Vancouver