School Nutrition Procurement Training Part 1

1.  

2.  Housekeeping
o Restrooms
o Sign in
 Participant Introductions
o What agency are you from
o What do you hope to get out of the training today?
 Why all the new focus on procurement?
 What other changes can we expect?
o Procurement reviews

3. • Explain the procurement process and methods
• Help you learn to apply the procurement process
and methods to your food service operations
• Provide materials and references for your future
procurement plan
Professional Standard Learning Codes=2000
Operations: 2400 Purchasing/Procurement
Series

4. • How to better understand the
procurement process &
requirements
• How to write a specification
• How to buy products available
locally/regionally
 Can you share some of your

5. The act of obtaining of goods or services
in exchange for money or value

6.  Emphasis on free and open competition to maximize
costs savings
 Free and open competition means that everyone has
the same opportunity to compete for business
 What are some examples of UNFAIR procurement
practices?

7. • If the “playing field” is level, vendor
participation is encouraged
• The cost of products and services will be
lower in price
• Better quality products and services
result

8. • State agency
• SFAs (sponsors)
• Distributors
• Manufacturers
• Food Service Management Companies
(FSMCs)/Vended Contracts
• Cooperatives

9. • Why are they important?
• Required by regulations
• Helps to determine procurement methods
to be used
• Includes a written code of conduct to
prohibit conflict of interest
• SP 09-2015
• Confidentiality agreement sample

10.  Procurement procedures
 Forecasting
 Selecting the proper procurement method
 Developing a solicitation
 Advertising the solicitation
 Evaluating proposals/offers
 Awarding the Contract
 Managing the Contract

11. Small Purchase Threshold
1. Informal 2. Formal
Micro-Purchases
<$3,500
Small Purchases
$0-$150,000 Sealed Bids (IFBs)
& Competitive
Proposals (RFPs)
* Requires public
advertising
Requires price
quotes from at
least 3 bidders
Distribute
equitably
among
suppliers
(Federal Threshold = $150,000)
< >

12. • Micro Purchases ($0-$3,500 aggregate)
Typical three step process
Draft specification
Identify vendor sources
Distribute Equitably amongst
suppliers

13. • Small Purchase Threshold ($0-$150,000 aggregate)
Typical five step process
Draft specification
Identify vendor sources
Obtain three bids (“3 Bids & a
Buy!”)
Evaluate the bids
Select vendor

14. • $150,000 or more aggregate (annually)
• Multi step process
Detail oriented and planning must be done in
advance
• Two methods
• Competitive Sealed Bids (Invitation for Bid – IFB)
• Results in a fixed costs, awarded based on lowest price
• Competitive Proposal (Request for Proposal – RFP)
• Multiple factors evaluated
• Price is one criteria, must be largest component
• State of Nevada has templates in place for FSMC and
vended meals

15.  Most restrictive rule applies

16.  PRICE determines method!
 Micro-purchasing ($3,500 or less)
 Small Purchase Threshold ($150,00 or
less)
 Over $150,000 annually
 Competitive Sealed Bidding
 Competitive Negotiation

17. An SFA must plan and evaluate:
–Food service operations
–Food service needs

18. • Evaluate the current and future food
service operation to determine needs
– Self-Op/Central Kitchen/FSMC
– Storage capacity
– Operation: scratch vs reheat
– Resources- financial, staff, other
– Food safety practices
– Prior year menus
– Inventory

19. Definition: a solicitation is a document used
by the SFA to acquire goods, products, and/or
services. It must incorporate a clear and
accurate description of the technical
requirements for the material, product and/or
service to be procured.
1. Decision is made regarding what goods and
services are needed and the appropriate
method to acquire them
2. Solicitation must be developed which contains
specifications & all necessary contract
elements
Who has done a solicitation?

20. • The description and scope needs to be in line with
what is being procured (i.e., procuring milk, frozen
foods, POS, bakery items, etc.)
• Must be clearly stated so that bidders will
understand and can be responsive to the need
• Identify all of the requirements that offerors must
fulfill, so that changes do not need to be made to the
contract after award has been made

21. • Contract Type
• Introduction/Scope
• General Descriptions of Goods and
Services
• Specifications such as the Standard of
Identity
• Timelines and Procedures
• Technical Requirements
• Evaluation Criteria
• Model Contract if applicable

22.  General Information
 Information about the District/RCCI
 Contract Type
 General Description of Goods & Services
 Procedural Issues
 Technical Requirements
 Evaluation Criteria

23.  Invitation for Bid:
o Single factor evaluated (Price)
o Bakery prices for the year for delivery to all sites;
o Warewasher with high temp capabilities w/ 5 year
warranty
o Dishwasher chemicals for 4 kitchens/year;
Supplies and disposables for all sites (year)
 Request for Proposals
o Multiple factors evaluated
o POS system for all sites with wireless capabilities, training
& technical assistance
o FSMC
o Pest control

24.  IFB or RFP?
 Report out results by food group

25.  Name of Product
 Description of Product
 Case Pack and Weight
 Minimum & Maximum Size pieces
 Main ingredient(s), other product
ingredients, prohibited ingredients
 Nutritional Standards/Quality Indicators
 Unit on which award is made
 Meal Pattern Requirements
 Run & Code numbers
 Mock Product label example

26.  What are you including in your specifications?

27. • Product Name
• Variety
• Grade
• Size
• Quantity
• Quality
• Cleanliness
• Packaging
• Delivery
• Food Safety
• Farm Practices and
Characteristics
• Other requirements
based on product or
service
Part 2 will include details on specifications

28. • (1) Placing unreasonable requirements on firms in order
for them to qualify to do business;
• (2) Requiring unnecessary experience and excessive
bonding;
• (3) Noncompetitive pricing practices between firms or
between affiliated companies;
• (4) Noncompetitive contracts to consultants that are on
retainer contracts;
28

29. • (5) Organizational conflicts of interest;
• (6) Specifying only a “brand name” product instead of
allowing “an equal” product to be offered and describing
the performance or other relevant requirements of the
procurement; and
• (7) Any arbitrary action in the procurement process.
29

30. The content of the solicitation announcement should
be sufficient enough in scope to allow bidders/offerors
to identify:
• The general nature of the goods or services to be
procured;
• The method of procurement that will be used (formal
or informal);
• How they can obtain the solicitation or more
information
• Procurement officer?
• Due date for responses to the solicitation
• Due date for questions, walk through, etc if applicable

31. When determining due dates, keep in mind:
• Complexity of the solicitation requirements;
• Time needed for pre-bid/award meetings, site visits,
etc; and
• Federal Due dates:
• FSMC for all program except SFSP—at least 21 days in
advance of due date*
• FSMC for SFSP—at least 14 days in advance of bid opening*
• In absence of applicable State or local laws, other
solicitations should be publicly announced at least 21 days
before the response is due, unless an emergency or good
cause exists for expediting the acquisition.
• *NOTE: USDA recommends using a time period of 4-6
weeks.

32. To allow for Free and Open Competition, use the
following ways to advertise your solicitation:
• State, regional, or nation-wide newspapers
• District list of vendors
• Trade periodicals
• Designated internet sites
• Direct mailings (informal only)
• Other print media that serves the business
community and general public

33. • Responsive
• Vendor’s products or services meets the SFA’s
specifications.
• Responsible
• Vendor can and will successfully fulfill the terms
and conditions of the proposed procurement.

34. Determine if a contractor is responsible by
investigating the contractor’s:
• Integrity;
• Compliance with public policy;
• Record of past performance; and
• Financial and technical resources
If it is determined that the contract is NOT responsible:
• Carefully document decision
• Contractor becomes ineligible for award.

35. • Contract Duration
• Identification of the Contract’s parties
• Herein reference to “District”, ”Contractor”
• Scope of Work
• Product Specifications
• Type of Contract
• Renewal Options
• Modification and Change Procedures
• Default and Breach provisions, remedies, penalties
• Termination rights

36. • Required Compliance certifications and sanctions
• Recordkeeping requirements
• Laws and Regulations that govern the contract
• In cost reimbursable contracts, ensure that all costs
are net of all discounts, rebates and credits
• Clear methodology for tracking costs (i.e. monthly
billing payable within 10 days)
• Any Sanitation and Licensing requirements
• Professional Certification requirements or minimum
levels of experience or education (for example FSMC
employees)

37. Fixed price contracts:
Evaluation is for lowest responsive and
responsible along no other dimension than
price
Cost reimbursable:
Evaluation – document review
of best technical response
according to evaluation criteria
including price

38. • Evaluation process in place by committee; should be
set up prior to releasing solicitation
• All documents are subject to review
• Board agenda items (public comment opportunity or
consent agenda item) with staff recommendation
• Legally ensures commitment of district and vendor
• Provides record of the deal-public record
• State Agency may require a review and/or approval
of materials before the award and execution of
contracts
For example FSMC contracts & contract renewals

39. • This ensures that contractors perform in
accordance with the terms, conditions,
and specifications of their contracts, and
allows for adequate and timely follow-up
of all purchases.
Procurement procedures
Forecasting
Selecting the proper procurement method
Developing a solicitation
Advertising the solicitation
Evaluating proposals/offers
Awarding the Contract
Monitoring the Contract

40. The SFA must monitor contractor performance
to make sure it:
• Receives the quantity and quality of the
goods and services requested;
• Receives the goods and services on time;
and
• Is charged correct prices and within budget
• FSMC monitoring form now in place

41. Menus and Service
Yes Needs
Improvement
N/A
1. Has the FSMC followed the 21-day cycle menu as described in contract, for the first
21 days of the contract? (Monitored during the first year of contract only)
1. If changes were made to menus following the first 21 days of the contract, did the
SFA approve them?
1. Menu standards have been maintained as to type and quality of meal service. All
menus have been developed using the agreed upon food based menu planning
system(s) for each age/grade group.
a. The FSMC is serving only reimbursable meals that comply with the latest USDA
dietary guidelines as established by USDA in Federal regulations for the National
School Lunch Program, the School Breakfast Program, and all other USDA
contracted meal programs.
a. The SFA has retained control of the quality, extent and general nature of its food
service.
Food Service Management Company (FSMC) Monitoring Form
Review Date:
Name of District and Site Monitored:

42. Ultimately, it is the SFA’s responsibility to
follow each of these Procurement
Process steps. The SFA is NOT to be
guided by vendors’ opinions or requests.

43. • Buy American NSLP 2016-26 & RCCI 2016-20 (2/5/16)
Guidance Memo
• Must purchase domestically produced items (to the
maximum extent practical)
• UNLESS it’s not produced domestically
• What’s not produced domestically?

44. • Two situations which may warrant a waiver to permit
purchases of foreign food products are:
• the product is not produced or manufactured in the
U.S.in sufficient and reasonable available quantities
of a satisfactory quality; or
• competitive bids reveal the costs of a U.S. product
are significantly higher than the foreign product.

45.  What does local mean?
 What types of products are local?
 What’s Geographic preference?
 Informal or Formal procurement?

46. • Within a
radius
• Within a
county
• Within a
state
• Within a
region
A district’s definition of
local may change
depending on the:
• Season
• Product
• Special events

47. Examples of “Local”
Definitions
• Page County Public Schools, in Virginia, defines local
using three tiers:
» Within the county
» Within the region (within 90 miles of Luray, VA)
» Within the state
• Oakland Unified School District, in California, defines
local within a 250-mile radius of the city of Oakland.
• Hinton Public Schools, in Oklahoma, defines local as
within Oklahoma.

49.  Prohibited in Federal
procurements except where
applicable Federal Laws expressly
permit their use
 National School Lunch Act: apply
a geographic preference when
procuring unprocessed locally
grown or locally raised agricultural
products.
 7 CFR Part 210.21(g) 49

53.  SFAs may contact local sources for purchasing
products under informal purchase procedures (but
do not include “local” as a specification)
o 3 bids and a buy
 Small purchases may include geographic preference
for unprocessed agricultural products
o must state in the solicitation and include evaluation criteria
and scoring
 Use product descriptions, requirements, and
specifications to target local products

54.  Product requirements, specifications, criteria
a) Specify product varieties unique to the region
b) Freshness (delivery within 24-48 hours of harvest)
c) Harvest techniques
d) Storage crops
e) Crop diversity
f) Origin labeling
g) Able to provide classroom or cafeteria
visits
Photo by: Christine Tran

55.  http://www.fns.usda.gov/farmtoschool/farm-school
 Webinars, slides, handouts

56.  Streamlines guidance for federal awards to ease
administrative burden
 Supersedes and streamlines requirements
contained in OMB circulars by consolidating the
requirements of these eight documents into one.
 Eliminates duplicate and conflicting guidance
between circulars

57. National School Lunch Program:
• 7 CFR PART 210.16 - Food Service Management
Companies
• 7 CFR Part 210.21 – Procurement Standards
School Milk Program:
• 7 CFR PART 215.14a - Procurement Standards
School Breakfast Program:
• 7 CFR PART 220.16

58. Summer Food Service Program:
• 7 CFR PART 225.17
Child and Adult Care Food Program:
• 7 CFR Part 226.21 Food Service Management
Companies
• 7 CFR PART 226.22 Procurement Standards

59.  Procurement Chart of Informal versus Formal Methods
(CHART)
 Informal Procurement Log and Evaluation Matrix
(Pink Sheet)
 Sample Conflict of Interest and Confidentiality Statement
(White Copy) for Evaluator to sign
Institute of Child Nutrition Procurement Reference Manual

60. Procurement Plan and Procedures
Below the Small
Purchase Threshold
(most restrictive)
Above the Small
Purchase Threshold
(most restrictive)
Develop solicitation documents
(includes: specifications,
estimated quantities, terms,
conditions & provisions)
Develop solicitation documents
(IFB,RFP)(specifications, estimated
quantities,
terms/conditions/provisions)
Informal
procedures
($3,500 - $150,000)
Formal procedures
(above $150,000)
Publicly publish solicitation
Advertise, obtain &
document quotes
Evaluate & Award
CodeofStandardsofConduct
Contract Administration/Performance Management Process
Evaluate & Award
Fixed price or cost-reimbursable
contract
Micro-purchase
threshold (< $3,500)

61. 61