Administrative Fee Methodology for Food Service Management

A school district's food service management contract attachment defines which corporate, operational, personnel, technology, accounting, and support costs are included in the FSMC's administrative fee or billed as direct costs.

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Attachment 9 defines the administrative fee methodology for a food service management contract. The administrative fee covers services and costs provided by the food service management company (FSMC) for the school food authority's (SFA's) food service locations, including personnel and labor relations services, legal, purchasing and procurement, corporate software and IT support, hiring and relocation costs, dietetic services, corporate chef travel and labor, accounting, bookkeeping, auditing, inspections, supervisory personnel, staff training, corporate support, operation-specific design and facilities layout, menu development, payroll and administrative costs, marketing, visitation and coverage travel, manuals, nutrition education programs, and management meetings or development. The attachment requires only actual, net, documented costs for charges outside the administrative fee. If a cost is included in both the administrative fee and direct costs, both designations must be made and an explanation must be provided to prevent double billing. The attachment was revised November 6, 2024.

Classification Codes
NAICS722310Food Service Contractors
PSCS203Food Services
Smart Codes
school food servicesadministrative fee methodologyfood service management
Specifications
Service
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