Procurement for Child Nutrition Programs

1
Procurement for Child Nutrition Programs

• Getting in the know!

2
Public Purchasing

• Using tax money for purchases requires due
  diligence in purchasing items for the Child
  Nutrition Program. We are required to
• Maintain open competition
• Compare products and prices
• Document the process and decision
• Use a procurement plan approved by our governing
  boards

3
Procurement Law

• Code of Federal Regulation
• 7 (CFR) Part 3016, and other agency law
• State laws also apply
• Local purchasing law applies
• What are your school districts bid thresholds?

4
Critical Path

• Plan the process for competitive procurement
• Task
• Date
• Essential information

5
Purchasing Arrangements

• Use one of three processes, depending on the
  total value of the bid and product availability
• Formal
• Invitation for Bid (IFB)
• Request for Proposals (RFP)
• Informal
• Small Purchase Procedures

6
Formal Bid Processes

• IFB-Invitation for Bid

• RFP-Request for Proposal

• Describe in detail the products required,
• Has a formal bid opening (and dont be late!),
• Public can attend,
• Requires exact price,
• Goes to lowest responsive and responsible bidder.

• Describes in general ways what needs are,
• School district does not know what is available
  and is asking for proposals,
• Does not have to have a formal bid opening,
• Subject to negotiation so terms and prices may
  not be firm,
• Awarded based on what is offered.

7
Small Bid Procedures

• Informal Bid
• Create maintain
• competition for better prices

• Must obtain 3 quotes
• Must have product descriptions, delivery days,
  and frequency of delivery.
• Must have a quantity needed.
• Must be written requests but can be made over the
  phone or by fax. (See forms on our website.)
• Bid goes to lowest responsive and responsible
  bidder.
• Most often used for milk, produce or small
  purchases.

8
Noncompetitive Proposals

• Noncompetitive proposals are allowed when it is
  determined that competition is inadequate.
  Procurement by noncompetitive proposals may be
  used only when the award of a contract is
  infeasible under small purchase procedures,
  sealed bids, or competitive proposals and one of
  the following circumstances applies
• The item is available only from a single source
• The public emergency for the requirement will not
  permit a delay resulting from competitive
  solicitation.
• After solicitation of a number of sources,
  competition is determined inadequate.
• Approval from the Department of Education, Child
  Nutrition
• Programs is required before using noncompetitive
  proposals.

9
Bid thresholds

• The stricter of the federal, state or local law
  applies when purchasing.
• Example 100,000 is Federal small purchase
  threshold, 150,000 is the small purchase
  threshold in Oregon, so you must always follow
  the most restrictive, which in this case would be
  Federal! Or if your local threshold is lower, you
  must use it!

10
Revised law

• Local Purchasing

• Foods can be purchased competitively at the local
  level as set forth in the recent Food,
  Conservation, and Energy Act of 2008, P.L.
  110-246, also Farm Bill.
• Competitive purchasing must be used
• The food must be unprocessed-see USDA memo below
• c. The SFA defines the areas for geographic
  preference and this must not limit competition

Document-Geographic Preference for the
Procurement of Unprocessed Agricultural Products
Click Here
11
Procurement

• Recordkeeping

• Maintain written records of the entire
  procurement process

12
Responsibility

• Be informed

• Regardless of how items are acquired for the
  child nutrition program, the local program is
  responsible for the adherence to federal, state
  and local law.

Cost plus a percentage is not allowed in Federal
Procurement Regulation
13
Food Procurement

• Buy America Provision applies in all food
  purchasing
• Food Service programs must purchase
• domestic products or commodities
• that are
• (A) an agricultural commodity
• that is produced in the U.S. and/or
• (B) A food product that is processed in
• the U.S. substantially using
• agricultural commodities that are
• produced in the United States.

Click here for more information about the Buy
America Provision
14
Procurement is in your hands

• Become
• informed

15
Procurement