BEVERAGE VENDING SERVICES

CONTRACT #08-048

CONTRACT SCOPE:

The scope of services for this contract provides for an exclusive marketing agreement between the District's Middle and High Schools and the firm of Phoenix Coca-Cola Bottling Company. This contract only covers beverages such as soda, juice, water, and isotonic drink products. In exchange for the exclusive agreement, the District has received a host of value added products and services and a commission scheduled that allows for 55% of all revenue generated.

CONTRACT TERM:

July 1, 2009 through June 30, 2010

AWARDED FIRM:

Phoenix Coca-Cola Bottling Company

PO Box 20008

Phoenix, AZ 85036

Phone: (480) 345-3127

Fax: (480) 756-3430

Contact:  Ryan Taffe at 602/757-1770

COMMISSION SCHEDULE:

The purpose of this contract is to provide a multi-year contract for beverage vending services at middle and high school sites. Elementary and support sites are excluded from this program. The program will be administered in compliance with District policy, and Federal and State regulations.

The above noted proceeds are an estimated amount based on a five-year projection. Proceeds have dropped over the past couple of years due policy parameters, and State and Federal legislative changes. Federal changes due in 2009 are being put in place for this contract. Money for granting exclusive marketing rights is no longer part of this contract. A total of 200 cases of 12 oz product will be donated to the District each year valued at $1,200.00 annually. Coca-Cola will provide Powerade on-the-court athletic kits on a bi-annual basis to each campus with availability of a Powerade vending machine. The value of this program is $150.00 per school to include cooler, squirt bottles, and product.

Middle school students will have access to the following products:

10oz and 20oz Water

10oz Fruit Juice

High school students will have access to the following products:

10oz and 20oz Diet Carbonated

12oz Isotonic (Powerade)

20oz Powerade Zero

10oz and 20oz Water

10oz Fruit Juice

Teacher lounges will have access to all products.

The following table shows the vend rate and commission breakdown:

Package	Vend Rate Year 1	Vend Rate Years 2-5	Commission Years 1-3	Commission Years 4-5
12oz Cans	.75	.75	40%	35%
20oz Bottles	1.00	1.25	40%	35%
20oz Water	1.00	1.25	40%	35%
10oz Water	.75	.75	40%	35%
12oz Powerade	1.00	1.00	25%	25%
20oz Powerade Zero	1.00	1.25	25%	25%
10oz Fruit Juice	1.25	1.25	15%	15%

All proceeds, funding, and support will be provided directly to the appropriate school site.

Purchasing Contact: Ken Carter

Mailto: kecarter@pvschools.net