Can parent groups, student groups, and other community organizations act as a Food Service Management Company?
Yes. A Food Service Management Company (FSMC) is defined in federal regulations as a commercial enterprise or a nonprofit organization that an SFA may contract with to manage any aspect of the school food service. As long as a parent group, student group, or other community organization meets all other federal, State, and local requirements for the services it is hired to provide, including food safety, it may act as an FSMC (7 CFR, Section 210.2). • Are there any laws or regulations relating to the procurement of FSMC services? Yes. Several State and federal laws and regulations govern the procurement of FSMC services. Any procurement using funds from the school cafeteria account must be accomplished using a competitive bid process, whether formal or informal. Federal regulations set an annual bid threshold at $100,000. For public schools and COEs, State law sets an annual bid threshold ($76,700 for 2009, see A10 for further clarification). Any procurement at or above the threshold mu