Rick Sherman Farm to School / School Garden Coordinator

Transcription

1 Getting Started With Farm to School: Fed. Procurement Basics/ODE s Role Farm to School Summit - Jan 29, 2015 Rick Sherman Farm to School / School Garden Coordinator

2 ODE Farm To School Website: First off- most everything I will talk about during the next five hours is on the ODE farm to school website

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5 What is Procurement? Procurement is the purchasing of goods and services. The procurement process involves: Planning Drafting Specifications Advertising the Procurement Awarding a Contract Managing the Contract

6 Why are Procurement Rules Important? To ensure that program benefits (and taxpayer dollars!):» Are received by eligible schools and children» Are used effectively and efficiently, with no waste or abuse

7 Key Concepts 1 Competition 2 Responsive and Responsible 3 American Grown 4 Know your Federal, State and Local Regulations

8 Procurement Methods Small Purchase Threshold > (Federal Threshold = $150,000) Informal Formal Small Purchase (Requires price quotes from at least 3 bidders) Sealed Bids (IFBs) & Competitive Proposals (RFPs) (Requires public advertising)

9 A Couple Things to Remember» Federal regulations require all procurements are competitive (even if other entities do not).» States and local regulations may set a lower small purchase threshold imposing more formal procedures. The most restrictive threshold applies.

10 OREGON: ANY amount ($0 - $149,999) still must be procured competitively Can be done informally by QUOTES. Note difference between QUOTE and BID

11 The Informal Procurement Process

12 Written Specification Bid Documentation Granny Smith, US. No. 1, count boxes per week for September-December Bid Documentation Write down each vendor s bid and constraints Ex. Fresh whole Granny Smith apples Vendor Art s Apples Olivia s Orchard Apple Crunch Inc. Price/box $40 $47 $37

13 Geographic preference Can not show restriction or preferential competition Can not specifically spell out local, however, may award points

14 Ways to define local:» Miles» County» State» Region» Product-specific 1) WHAT: Defining local

15 » Through distributors» Through food service management companies» From food processors» Through DoD Fresh» From individual producers» From producer co-ops/food hubs» From school gardens 2) WHERE to get local foods

16 You can include specifications such as harvested within 48 hours of delivery that will increase the chances that a local vendor will win the contract. Use Specifications

17 » When purchasing local foods, consider specifying:» Degree of ripeness or maturity» Freshness (age)» Condition upon receipt of product» Temperature» Size uniformity» Other quality standards (such as organic, no-till, no-spray, etc.) Other potential specifications

18 Foods must be:» Grown on farms that are less than 50 acres in size and grow more than five food crops at one time;» Grown on farms that utilize a majority of hand harvesting, hand packing or human labor power in growing, harvesting. and packing of food;» Delivered within 24 to 48 hours of harvest;» Delivered directly to multiple SDUSD school sites (not a central warehouse). The number of drops is to be determined by the district on a case-by-case basis;» Produce should be generally free from insect damage and decay; and,» Product must be rinsed, cleaned and packed in appropriate commercial produce packaging, such as waxed cardboard boxes. Standard industry pack (case counts) is required and/or half packs are allowable when it comes to bundled greens. Example: San Diego Unified

19 Ground beef must be:» From cattle specifically raised for beef production (culled dairy cows are not acceptable);» Cattle are raised without the use of hormones or sub-therapeutic antibiotics, are grass fed or grass fed and grain finished;» Slaughtered and processed in a USDA-inspected facility;» Ratio of lean to fat should be 85/15 or leaner; and,» Labeled with the name of the company, product type, and a unique indicator to trace the product to the animal/date of slaughter. Example: Harrisonburg City Public Schools

20 » For purchases under your small purchase threshold, you can get quotes from 3 (or more) local farms or vendors.» But remember:» You need written specifications. Approach only local vendors

21 » Tomatoes Tulsa, OK» Hydroponic» Available 10 months of the year» US No. 1, fully ripe, red color-stage 5-6» 10 day shelf life» Organic» Delivered to 18 schools 2 days prior to service» Proof of liability insurance due with bid» GAP certified» 36 cases per week Write Your Specifications

22 Vendor Tom s Toms Vickie s Vines Fresh Network Date received July 1 July 6 July 10 Responsive and Responsible Yes Yes No, can only deliver 5 months of year Price/lb $2.20 $2.05 $2.75 Document the bids you receive

23 » SFAs cannot arbitrarily divide purchases to fall below the small purchase threshold.» In some instances, however, characteristics of a product or market justify the need to separate it from the overall food procurement. Splitting procurements

24 » Distributors are vital!» One-stop shop» Delivery» Most hold liability insurance» To purchase local through a distributor:» Include this desire in your solicitation» Ask if any of products currently on your contracted list are sourced local Writing local into your distributor solicitation

25 » Purchasing product before harvest» Provides producer with a guarantee» Ensures the farmer will plant and pack the supply needed» Understand the risk» What happens if the crop fails?» Must follow competitive procurement process Using a forward contract

26 Unprocessed agricultural products retain their inherent character. These are the allowed food handling and preservation techniques:» Cooling, refrigerating, and freezing» Peeling, slicing, dicing, cutting, chopping, shucking, and grinding» Forming ground products into patties» Drying and dehydrating» Washing, packaging, vacuum packing, and bagging» Adding preservatives to prevent oxidation» Butchering livestock or poultry» Pasteurizing milk What is unprocessed?

27 » Define local.» Decide how much preference local products will receive.» Determine what type of procurement method to use.» Be sure your solicitation makes perfectly clear how the preference will be applied. How to incorporate a geographic preference

28 Owen s Orchard Apple Lane Farms Bob s Best Price $1.97 $2.05 $2.03 Meets geographic preference? Price with preference points No Yes (10 points) No $1.97 $1.95 $2.03 Example 1: 1 Penny = 1 Point

29 Produce Express Ray s Produce F&V Distribution Contract Price $32,000 $35,000 $34,000 % F&V Able to Provide From Within the State Geographic Preference Points to Respondent able to meet >60% Local Items No Yes (10% pref.) No Price for comparison $32,000 $31,500 $34,000 10% price preference will be awarded to any bidder that can source at least 60% of the products from within the state. Example 2

30 Sliding scale of percentage local Preference points 70% and more local products % local products % local products 4» 10 preference points will be awarded to vendors able to provide over 70% local, 7 points for 50-69% and 5 points for 25-49%. Geo. pref. sliding scale

31 Laurie s Paula s Pulses Gary s Grains Legumes Price = Contractor ability to perform all specifications Product quality = 15 Delivery = 10 Packaging and Labeling = 5 Three references, past history = Able to provide farm/facility tour or classroom visits = 5 Able to provide state of origin on all products = 5 Ability to provide sourced within the state products = possible points Example 3: Geo. Pref. in an RFP

32 Thank you! Feel free to contact me at: Rick Sherman Oregon Department of Education Farm to School/School Garden Coordinator

33 Questions

34 The U.S. Department of Agriculture prohibits discrimination against its customers, employees, and applicants for employment on the bases of race, color, national origin, age, disability, sex, gender identity, religion, reprisal, and where applicable political beliefs, marital status, familial or parental status, sexual orientation, or all or part of an individual s income is derived from any public assistance program, or protected genetic information in employment or in any program or activity conducted or funded by the Department. (Not all prohibited bases will apply to all programs and/or employment activities.) If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program Discrimination Complaint form, found online at or at any USDA office, or call (866) to request the form. You may also write a letter containing all of the information requested in the form. Send your completed complaint form or letter to us by mail at U.S. Department of Agriculture, Director, Office of Adjudication, 1400 Independence Avenue, S.W., Washington, D.C , by fax (202) or at program.intake@usda.gov Individuals who are deaf, hard of hearing or have speech disabilities may contact USDA through the Federal Relay Service at (800) ; or (800) (Spanish). USDA is an equal opportunity provider and employer (This slide is printed out in the Garden Food Safety Manual as well)