Photo by Ellie Strikes Weird
D.C. Public Schools should bring its in-house meal operations in order to “broaden participation” and reduce taxpayer costs, says D.C. Auditor Kathy Patterson, whose office released a report today on the privatization of school food services.
The 70-page document, Contracting Out School Food Services Failed to Control Costs as Promised, “makes clear that the savings promised when we privatized food services have not occurred” Patterson says, referring to when the District chose to contract for all DCPS food services in 2008 with a promise of saving approximately $4 million each year in District expenditures.
But according to expense reports, the auditor found that system “consistently failed to realize the projected savings.”
The D.C. Auditor’s research includes interviews with food services officials from the School District of Philadelphia, New York City Public Schools, Detroit Public Schools, Fairfax County Public Schools, New Haven Public Schools, and Baltimore City Public Schools. Systems such as Philadelphia and Detroit contracted out food services, then brought the program back in house. The results proved to have better participation and reduced costs.
“DCPS’s cost per meal served is notably higher than any of the other school systems profiled, all of which are self-operating and, therefore, do not pay a markup or profit to food service management companies,” the report notes.
Last school year, DCPS paid its food service vendors between $4.16 and $4.24 for each school lunch served, according to the report. Meanwhile, the federal government reimbursed the system for most meals at $3.15, which means the District paid the difference of nearly $9 million.
DCPS originally began contracting with Chartwells Dining Services. Last June, the company agreed to pay $19.4 million to settle a lawsuit brought by former DCPS food services director Jeffrey Mills, but admitted no wrongdoing in the case. Meanwhile, a Washington City Paper cover story chronicled the allegations of mismanagement that included “rotting food, fraud, and millions of dollars lost.” Shortly thereafter, Chartwells quit as DCPS’ main food services provider after seven years on the job.
In May, DCPS selected DC Central Kitchen and SodexoMagic—with Revolution Foods as a subcontractor—to prepare meals at more than 100 schools for this academic year. They supply breakfast, lunch, after-school supper, summer food service, and more.
But Sodexo has had its own share of problems. The company settled a $20 million False Claims Act case in New York in 2010, and has also sustained findings of spoiled or expired food and employee safety violations in other states since 2010.
The auditor’s report faults DCPS for negotiating new contracts that call for a fixed unit price per meal, “which means that any expansion in meals provided to students, or any savings effected by improved management, will simply mean greater profits for the management companies.” The Auditor recommends re-negotiating the arrangement in forthcoming years, and eventually transitioning to a self-operated system.
DCPS has responded to the report, citing several steps that will be taken to improve the program and control costs. However, Interim Chief Operating Officer Carla D. Watson says that “there are many immediate risks that inform our decision to not move forward” with in-house production at this time.
Food Services Final by Christina Sturdivant on Scribd
