Aramark loses contract for 115 Philly schoolsAramark loses contract for 115 Philly schools

PHILADELPHIA The School District of Philadelphia said it would assume management of the feeding facilities at 115 public schools from locally based Aramark Corp. on Oct. 1, which is roughly two years into the foodservice giant’s five-year contract.

Aramark was awarded the $120 million contract in 2005 in an effort by the district to reduce its foodservice budget deficit, which is said to be running as high as $3 million a year. According to district officials, Aramark believed the district would save an estimated $3.5 million a year. However, the savings did not materialize, the officials were quoted as saying in press reports. The contract reportedly cost taxpayers $18.5 million during the 2006-07 school year alone.

“We appreciate our two-year partnership with the district,” Aramark said in a statement.

Although the district said it would manage feeding operations for the 100,000 students itself, it did not rule out the possibility of contracting another on-site feeder at a later date. The district includes a total of 270 public schools.

Last year the school district said its expenses exceeded income by $183 million, and it subsequently asked all of its vendors to cut their fees by about 10 percent.