Procurement Procedures for Food Service. PASBO December 15, 2016

Size: px

Start display at page:

Download "Procurement Procedures for Food Service. PASBO December 15, 2016"

Iris Floyd
6 years ago
Views:

1 Procurement Procedures for Food Service PASBO December 15, 2016

2 School Nutrition Program Fundamentals Schools participating in School Nutrition Programs receive federal and state funds. Federal regulations Government-wide (OMB Circular A-87, A-122, 2 CFR 200, etc.) Cost principles (allowable/unallowable costs) Procurement Program specific (7 CFR 210, 220, 3016, 3019, etc.) Eligibility Meal requirements Food service account Procurement Allowable/Unallowable costs Pennsylvania School Code Applies to all public schools Sections apply to school meal programs Reimbursement Procurement 2

3 Procurement Process Procurement procedures Identify/forecast needs Select method of procurement Develop solicitation Advertise solicitation Evaluate bids/proposal s Award contract Manage contract 3

4 Procurement Chart Purchase of PERISHABLE Products Amount Type of Procurement Procedure Regulation $3,500 Micro-purchase Non-competitive 2 CFR > $3,500 < $150,000 Informal 3 quotes 24 PS 504 (d) $150,000 or more Formal Sealed bids (IFB or RFP) Purchase of NON-PERISHABLE* Products 2 CFR Amount Type of Procurement Procedure Regulation $3,500 Micro-purchase Non-competitive 2 CFR > $3,500 < $19,400 Informal 3 quotes 24 PS $19,400 or more Formal Sealed bids (IFB or RFP) *NON-PERSIHABLE Supplies, equipment, consultant, services, etc. 2 CFR

5 Procurement Method The type of procurement is determined by the dollar threshold: Micro-purchase; Informal procurement; and Formal procurement. 5

6 NEW Micro-Purchase Threshold NEW Micro-purchase procurement is the acquisition of supplies or services, where the aggregate dollar amount by transaction does not exceed $3,500. To the extent practical, purchases utilizing the micro-purchase threshold should be distributed equitably among qualified suppliers. 6

7 Informal Procurement Specifications/product description provides enough detail for vendor to respond adequately. Telephone or written quotations from three qualified and responsible vendors: Date of quote Name of vendor and representative Description of item being quoted Quantity Price of item Date item needed If less than three vendors exist to provide the product or service, thoroughly document how this determination was made, such as research conducted to reach this conclusion, etc. The lowest responsible bidder is awarded the contract (2CFR (h)). Retain all documentation for three years plus the current school year. 7

8 Two methods Formal Procurement Invitation for Bid (IFB) Request for Proposal (RFP) Required for Food Service Management Company contracts 8

9 Invitation for Bid Typically used to procure a product/good, not a service. Product/good can be adequately identified with complete specifications (dimensions, grade, quality, pack size, etc.). Specifications should be specific enough to obtain the quality of product desired, but not overly restrictive. Cannot specify a brand name unless an equal product is also permitted. Awarded to responsive bidder based solely on cost. Also known as sealed bid. Factors such as discounts, transportation costs, and life cycle costs can be determined in lowest cost if these factors were specified in the IFB. Bids are opened publically at the date and time specified in the IFB. Results in a fixed price contract (lump sum or unit price). 9

10 Request for Proposal (RFP) Typically used to procure a qualitative service. Statement of work includes sufficient detail. Cost is a major consideration of the award (primary factor), but not the sole factor. Experience, past performance, approach, financial and technical resources, etc. are considered in the award through scoring. Evaluation method, evaluation factors and their importance are identified (e.g., point scale, scoring matrix, etc.). Results in a fixed price or cost-reimbursable contract. 10

11 Contract Provisions Appendix II to Part 200 Contract Provisions for Non-Federal Entity Contracts Under Federal Awards In addition to other provisions required by the Federal agency or non-federal entity (i.e. Buy American), all contracts made by the non-federal entity under the Federal award must contain provisions covering the following, as applicable: Remedies for violations or breach of contract terms Termination for cause. Equal Employment Opportunity Davis-Bacon Act Contract Work Hours and Safety Standards Rights to Inventions Clean Air Act Debarment and Suspension Byrd Anti-Lobbying Amendment 11

12 Resources Uniform Grant Guidance: 2 CFR and Appendix II: USDA Memo: SP , CACFP , SFSP : Q&A-Purchasing Goods and Services Using Cooperative Agreements, Agents, and Third-Party Services USDA PowerPoint Presentation: Group Purchasing through Cooperatives, Agents, and Third-party Entities Procurement in the 21 st Century; Resource Manual; pdf 12

13 Contact: Cecilia Beauduy

The New Procurement Review for School Nutrition Programs

New Jersey Department of Agriculture 1 The New Procurement Review for School Nutrition Programs What New Jersey schools need to know August 2017 WEBINAR LEARNING OBJECTIVES Participants should be able