Food Service Management Companies

Contracting with a Food Service Management Company (FSMC)

As defined in Federal Regulation 7CFR210.16, a Food Service Management Company (FSMC) is a commercial enterprise or a non-profit organization which is, or may be, contracted with/by the Local Education Agency (LEA) to manage any aspect of School Food Service (SFS). 

Contracts between an LEA and a FSMC must be reviewed annually by the State Agency as required by 7CFR210(a)(6). This is before signing of contract. As required by Federal Regulations Federal reimbursement can not be paid otherwise. The Maine Department of Education has an acceptable contract template to be used by all LEA contracts with a FSMC. Failure to use this contract could result in rejection of contracts submitted and possible delay or loss of reimbursement. Additions to the contract, if needed, should be attached as a rider. The contract template is available from the Child Nutrition office or online following this text. 

This contract is based on the requirements contained in 7 CFR Parts 210, 215, 220, 225, 226, 245, 250, 3016, 3017, 3018 and OMB Circular No. A-102, Attachment O, paragraph 14 and “USDA’s Contracting with Food Service Management Companies – Guidance for Local Educational Agencies (LEA’s) – J.

This contract is from the USDA and should not be modified unless stated otherwise in the contract comments. This is usually indicated in bold. Attachments can be included to suit your needs or local requirements. You should have your legal advisor review the contract and add those attachments that may be needed to meet local needs and to ensure that the contract reflects the best terms possible for the LEA and covers all facets of your food service operation.