6/15/2017. In SY 17-18, foodservice procurement records will be reviewed from SY How do I prepare? CSNA June 2017

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1 How do I prepare? CDE OSN: Colorado Department of Education Office of School Nutrition. LEA (local education agency): your district or charter school. Procurement: multi-step competitive process to obtain most responsive products and services at best price. SFA (school food authority): the district or charter school that operates the School Nutrition Programs within the LEA. CSNA June 2017 CDE OSN is required to monitor SFAs to ensure contracts meet Federal regulations (7 CFR (c)). Requirements (2 CFR 200) apply to all federal grants, NOT just school nutrition and food service USDA has chosen to review procurement for school nutrition represents many millions of dollars Procurement reviews will be in the same cycle as the Administrative Review (AR) but reviewed separately Procurement review may occur off-site or off and onsite In SY 17-18, foodservice procurement records will be reviewed from SY

2 Procurement is a major responsibility of each SFA almost half of SFA reimbursement (>$188 M statewide) has a major impact on financial stability of the SFA s nonprofit school food service account SFAs are required to follow federal, state and local rules for free and open competition to procure any goods and services monitor their contractors to ensure all contract provisions are carried out The USDA has stated that the focus of the procurement/ contract review by CDE will be in the following areas: 1.Written Standards of Conduct 2. SFA Contracts: a) Solicitation b) Evaluation and Award c) Management CDE doesn t know if USDA will change the review process, but CDE OSN is trying to simplify the process for the SFAs! Many overlaps with Resource Management review. Districts complaining about 3 reviews in one year! We are trying to reduce some of that What is the SFA/LEA's capital equipment threshold? What is the SFA small purchase threshold? List amount from district policies Does the LEA/SFA have a signed agreement with a school food service purchasing cooperative (co-op)? 2

3 Does the SFA/LEA have written codes of conduct that include prohibiting conflicts of interest for employees engaged in selection, award, and administration of contracts? Does the code of conduct prohibit soliciting or accepting gratuities, favors or anything of monetary value from contractors or parties of subcontracts? Does the code of conduct include disciplinary actions for violations? Submit copies of the above from the district and board policies Does the LEA/SFA have documented Procurement Procedures? Do they include: a) Requirements to conduct cost or price analysis for all formal bids and/or contract modifications? b) Steps to assure that small, minority and women's businesses enterprises and labor surplus firms are used when possible? Submit copies of above How does the SFA/LEA ensure the contractor complies with all contract provisions prior to approving contractor invoices for payment? 1. Explain how the SFA monitors that all contract provisions are followed before invoices are paid. 2. Explain SFA procedures to ensure this How does SFA confirm that vendors have not been debarred, suspended or otherwise excluded or ineligible for participation in Federal programs or activities? SFAs must verify that vendor has not been debarred, suspended or otherwise excluded/ineligible for participation in Federal programs/activities. Obtain confirmation from co-op if needed Three methods to use: (a) Check or (b) Collect certification from vendor; or (c) Add clause/condition to the covered transaction with vendor 3

4 USDA Foods Processing Information for SY 16-17: a) All processor names b) Amount diverted to each processor c) Amount credited by each processor d) Finding if not all diverted food was credited 1. Name of each vendor used by Food service fund in obtain summary from SFA s business officials 2. Type of purchase: Informal, bid, RFP or micro purchase followed by questions specific to purchase 3. Number of vendors contacted and number of responses. 4. Contract start date and any renewals or changes. 5. How was the vendor selected? CDE OSN will assess SFA selected solicitation documents according to federal procurement requirements Check for Procurement Review Questions and checklist on CDE Procurement review website Will update website as new information received from USDA CDE OSN will send a report with technical assistance and any corrective action to the SFA Policies and procedures needing to be updated or added missing in most reviews Code of conduct with disciplinary actions for violations Steps to use small, minority, women's business enterprises/ labor surplus firms when possible Cost/price analysis is conducted to estimate cost of goods or services prior to soliciting. Minimum: estimates made before receiving bids or proposals. 4

5 Areas missing documentation "Buy American regulation: Documentation of approval of foreign food products CDE approval of single source proposals Prior approval documents for capital equipment purchase Competitive purchasing for all purchases Contract pricing, including co-op prices and bid items Missing items for review All applicable clauses and terms in formal solicitation/contracts Proposals from ALL respondents- not just the awarded proposal Scoring documentation Signed contract- only the RFP is sent to CDE and not a final contract or signed RFP used as the contract 1. District threshold not used to determine if formal bids are required 2. Not purchasing what was on the bid-purchasing other items that weren t bid from main vendor or another vendor 3. SFA is not sure if in co-op. Check with the co-op (NOT the vendor) to confirm 4. Vendor tells SFA they will get co-op prices without joining co-op or doing any procurement not so and not allowed! Download and Review Procurement Review Questions and Checklist to understand what information will be needed by CDE to complete the review NutritionProcurement@cde.state.co.us Visit: and ews 5