Procuring Local Foods

Transcription

1 Procuring Local Foods For Farm to School Programs Southeast Ohio Farm-to-School Conference March 3, 2016 Welcome!

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

3 Procurement Principles and Regulations

4 1 The Buy American Provision The National School Lunch Act requires SFAs to purchase domestically grown and processed foods to the maximum extent practicable Spend taxpayer dollars as efficient as possible

5 2 State and Local Procurement Policies States and local regulations may differ Apply the most restrictive

6 3 Competition Competition is essential to ensure the best cost and quality of goods and services All potential suppliers are on a level playing field

7 4 Responsive and Responsible Awards must be made to vendors that are responsive and responsible Responsive: Vendors submit bids that conforms to all terms of the solicitation Responsible: Vendors are capable of performing successfully under the terms of the contract

8 Procurement Methods

9 REQUEST FOR INFORMATION (RFI) Collect written information about the capabilities of various suppliers Not used to procure products Benefits:» Survey of available products» Can direct your procurement method» Does not require commitment to purchase» Can increase likelihood that farmers will respond to bids

10 RFI Example In 2013, School Food FOCUS, a national collaborative of large school districts, issued an RFI on behalf of five large urban school districts in the Midwest. The RFI was a way for FOCUS to explore the potential to expand offerings of locally grown and processed fresh and frozen fruits and vegetables for school meal programs. The RFI clearly stated that any responses were non-binding and that the information collected would be used to identify local products which might be purchased in the future. While issuing an RFI may be beyond the capacity of a school district, this is a great example of how community partners can help districts work together to determine what local products are available.

11 Procurement Methods Small Purchase Threshold > (Federal Threshold = $150,000) Informal Formal Small Purchase (Requires price quotes from at least 3 bidders) *Micro-Purchase* Sealed Bids (IFBs) & Competitive Proposals (RFPs) (Requires public advertising) Noncompetitive Purchase (Value of purchase may not exceed $3,000)

12 The Informal Procurement Process

13 Three Bids and a Buy Develop a Specification Green apples, US. Fancy or No. 1, prefer five 185 count boxes per week, but willing to consider other pack sizes for Sept-Dec Solicit Bids Contact (ONLY LOCAL) vendors (by phone, fax, , in-person or via mail) and provide them with specifications (or if calling, read same information to each vendor) Bid Documentation Write down each vendor s bid and constraints; then file it Vendor Art s Apples Olivia s Orchard Apple Crunch Inc. Price/box $40 $47 $37

14 Produce Auction Great source for buying local produce and connecting with local farmers Schools also are less likely to have problems getting the quantities of food they are seeking from a produce auction The competitive bidding style helps keep prices reasonable without compromising product quality Produce auctions can be a convenient, central meeting place to find and get in touch with local producers USDA has issued guidelines on proper procurement for produce auctions

15 The Formal Procurement Process

16 Competitive Sealed Bidding Procurement by competitive sealed bidding is done by issuing an invitation for bid (IFB). Use it when: The contract can be awarded on the basis of price.

17 Competitive Proposals Procurement by competitive proposal is done by issuing a request for proposal (RFP). Use it when: Price won t necessarily be the sole basis for the award.» Assigned weight to evaluate criterion in an RFP, which determines how important the criterion is Possible Criterion:» Able to provide farm visits» State of origin or farm origin labeling

18 Contract Type Introduction/Scope Solicitations (IFBs and RFPs)» Ex. Our district strives to serve local products as much as possible and our goal is to serve 20% local products. General Descriptions of Goods and Services» Product specifications Timelines and Procedures Technical Requirements» Ex. Determining factors for responsive and responsible vendors Evaluation Criteria (for RFP)

19 Example: RFP Criterion Scorecard Product Specification Green apples, US. Fancy or No. 1, prefer five 185 count boxes per week, but willing to consider other pack sizes for September - December Apple Lane Great Granny s Fun Fuji s Price = Contractor able to meet all specifications Product quality = 15 Delivery = 10 Packaging and Labeling = Three references, past history = Able to provide farm/facility tour or classroom visits = 5 Able to provide state of origin on all products = Delivered within 24 hours of harvest = possible points

20 Defining Local and Where to Find Local Foods

21 What Does Local Mean? Who defines local? School food authorities What are you trying to accomplish? Do you want to bring as many local product as possible onto the menu quickly? Do you want to couple local purchases with farm visits and have personal relationships with suppliers?

22 Defining Local 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

23 What does local mean to Ohioans?

24 Incorporating Local Foods into School Meals: An Example

25 What s Already Local on Your Menu? Look at your records Ask your suppliers whether they purchase local products What Could Be Local? Conduct a menu audit:» Are there items that could easily be replaced with local products? Think about ways to integrate:» Harvest of the Month program» New recipe development» Salad Bar» Seasonal Cycle Menu Include tracking of local in future contracts

26 1 Evolution of a Local Menu Monday Tuesday Wednesday Thursday Friday Submarine Sandwich on Whole Wheat Roll Refried Beans Jicama Green Pepper Strips Cantaloupe Wedges Skim Milk Whole Wheat Spaghetti with Meat Sauce Whole Wheat Roll Green Beans Broccoli & Cauliflower Kiwi Halves Chef Salad Whole Wheat Soft Pretzel Corn Baby Carrots Banana Skim Milk Oven-Baked Fish Nuggets Whole Wheat Roll Mashed Potatoes Steamed Broccoli Canned Peaches Skim Milk Whole Wheat Cheese Pizza Baked Sweet Potato Fries Grape Tomatoes Apple Sauce Low-fat Milk Low-fat Milk

27 2 Evolution of a Local Menu Monday Tuesday Wednesday Thursday Friday Submarine Sandwich on Whole Grain Roll Refried Beans Jicama Whole Wheat Spaghetti with Meat Sauce Whole Wheat Roll Green Beans Chef Salad Local Spanish Rice with Corn Carrots Oven-Baked Local Fish Sandwich on a Whole Grain Roll Mashed Potatoes Steamed Broccoli Whole Wheat Cheese Pizza Baked Sweet Potato Fries Grape Tomatoes Fresh Peas Broccoli & Cauliflower Banana Strawberries Cantaloupe Wedges Kiwi Halves Canned Pears Low-fat Milk Skim Milk Low-fat Milk Skim Milk Skim Milk

28 Where to Get Local Foods Distributors Food service management companies Food processors DoD Fresh Individual producers Producer co-ops/ food hubs/produce auctions School gardens

29 Potential RFP Specifications & Evaluation Criteria to Target Local Products» Particular varieties unique to the region» Size of farm» Harvest techniques» Crop diversity» Origin labeling» Able to provide farm visits or class visits

30 Quiz: Procurement Basics

31 Is documentation required for informal procurements?

32 Can a vendor request that a school change specifications or solicitation language after the solicitation has gone out?

33 Can a school award a contract to a local vendor without conducting a procurement?

34 What is the federal small purchase threshold?

35 Do you know the difference between an IFB and an RFP?

36 If the purchase is valued under the applicable small purchase threshold, can a school use the formal procurement method?

37 The Geographic Preference Option

38 What the Legislation Says Section 2403 of the 2008 Farm Bill says: The Secretary shall allow institutions receiving funds under this Act to use a geographic preference for the procurement of unprocessed agricultural products, both locally grown and locally raised.

39 What Is Unprocessed? 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)

40 Quiz: Which of the following products qualify as unprocessed?

41 Tortillas

42 Mixed Frozen Peas and Carrots

43 Raw Beef Patties

44 How to Use the Geographic Preference Option

45 How to Incorporate a Geographic Preference 1) Define local 2) Determine what type of procurement method to use 3) Decide how much weight local products will receive 4) Be sure your solicitation makes perfectly clear how the preference will be applied

46 Example 1: 1 Point = 1 Penny Liz Solomon s Orchard Apple Lane Farms Price $1.97 $2.05 $2.03 (Insert participants name) Best Meets geographic preference? (10 points) Price with preference points No Yes (10 points) No $1.97 $1.95 $ points will be awarded to bids for apples grown within 100 miles of the school board office.

47 Example 2: Tiered Preference (Insert participant s (Insert participant s (Insert participant s name) Produce name) Produce name) Distribution Express Contract Price $31,000 $35,000 $34,000 Geographic preference points to respondent able to meet definition of local No Yes (10% pref.) Yes (7% pref.) Price for comparison $31,000 $31,500 $31,620 10% price preference will be awarded to any bidder that can source products from within 100 miles and 7% price preference will be awarded to any bidder able to source product from within the state.

48 Example 3: Geo Pref. in an RFP (Insert participant s name) Legumes (Insert participant s name) Pulses Price = Contractor able to meet all specifications Product quality = 15 Delivery = 10 Packaging and Labeling = Gary s Grains Three references, past history = Able to provide farm/facility tour or classroom visits = 5 Able to provide state of origin on all products = 5 Able to provide products from within the state = possible points

49 Group Breakout Session! Practice Shopping Scenarios Produce Auction

50 USDA Foods and DoD Fresh

51 1 Maximizes Funds for Local Purchases Schools can save cash reimbursement dollars for local purchases, using USDA Foods products» For example: Combine local lettuce with USDA Foods whole grain tortillas and USDA Foods smoked deli turkey breast to create wraps Mix USDA Foods flour with local flour to bake rolls.

52 2 Champions American Agriculture USDA Foods are 100% American grown!» Some products are traditionally purchased from the same states each year» Find out what is purchased from your region State of origin information» Become a USDA Foods vendor Agricultural Marketing Service and Farm Service Agency are always looking for new suppliers

53 The DoD Fresh program allows schools to use their USDA Foods entitlement dollars to buy fresh, and often local, produce 3 Promotes Local Fruit and Vegetable Producers through DoD Fresh DoD contracts with over 47 produce distributors across the country, who are encouraged to provide local produce whenever possible and identify locally-sourced items in the ordering catalog.

54 CHILD AND ADULT CARE FOOD PROGRAM (CACFP) Small (Informal) Method of Procurement vs. Large Method Most CACFP procurement falls under the small purchase threshold of $150,000 for Federal Child Nutrition Programs Local food purchasing decisions are to be documented using the Informal Procurement Method to ensure full and open competition

55 FRESH FRUIT AND VEGETABLE PROGRAM (FFVP) Incorporate Local Foods into FFVP:» Choosing local options when available (make sure contracts include FFVP): Food service management companies Vendors Build relationships with local farms for multiple fresh fruit and vegetable items Purchasing from school gardens or school farms

56 Farm to School Projects in Ohio Freemont Local Hydroponics gardening Huron City Farm to School procurement Lighthouse Community School Urban farming; student management Cloverleaf Local Chickens and eggs

57 School Garden - Star Community Justice Center

58 School Garden - Dublin City Schools

59 Local Procurement Guide Available at the Procuring Local Foods page of the USDA Farm to School website: oschool/procuring-local-foods

60 Social Media Ohio Families and Education Ohio Teachers Homeroom OhioEdDept

61 education.ohio.gov Office for Child Nutrition 25 S. Front Street, Mail Stop 303 Columbus, OH Fax: (614) Phone: (614)

62 Thank you! Questions?

63

64

65