Micro Purchase & Small Purchase Procurement
Informal Procurement Methods Regulations Micro Purchases 200. 320(a) 200.67 Small Purchase Procedures 200.320(b) 200.88 Procedures in a nutshell State Agency Oversight Micro-purchase: acquisition of supplies or services not exceeding $3500; must distribute equitably among qualified suppliers; may be awarded without soliciting competitive quotations if price is reasonable. Assurance of reasonable and necessary costs; distribute equitably; Buy American. Purchases <=$150,000 for Charter Schools; $30,000 for others in Louisiana (or local threshold if less); minimum of two price quotes. Assurance of competition; Buy American.
Benefits of Micro Purchase Districts can react quickly to changing markets and urgent needs Helpful for small SFAs Purchasing local
Local Procurement Benefits: Support local community Lower school meal program costs Increased participation Resources www.fns.usda.gov/farmtoschool Procuring Local Foods for Child Nutrition Programs guide
Things to Consider Splitting procurements (NO--to circumvent) Reasons to issue separate bid solicitations Procurement for a specific item
MICRO PURCHASE
Micro Purchases Will each transaction with this vendor be below $3,500? Unless limited by local requirements
Micro Purchases Reasonable purchase prices
Micro Purchases SFA MUST spread purchases equitably among all qualified sources?
Micro Purchases Review of invoices/receipts shows SFA compliant with the micro purchase method
Micro Purchase: Non- Compliance
Activity Time!
Compliant? SFA purchased $280 in food & supplies from Walmart in August In September, $320 in food & supplies from Dollar General In October purchased $15 from Walmart and $35 from DG
Compliant? One purchase for printing applications for $2,354.78 No other printing services during the year
Compliant? Only 3 stores in the small town Store A 20 purchases $14,098 Store B 12 purchases $13,456 Store C 6 purchases $14,657
Breathe in-breathe out!
Small Purchase Procurement
Small Purchase Procurement Federal (and charter schools in LA) $150,000 State of Louisiana $30,000 SFA local requirements
Small Purchase Procurement Small Purchases must have solicitation Buy American (ag products), specs Evaluation Documentation of specs and criteria Quotes Contract Management Delivery tickets
Small Purchase: Solicitations Were quotes obtained from 2 or more sources (USDA)? Louisiana Revised Statute 38:2212. A.(1)(b) requires 3 quotes (b) However, purchases of ten thousand dollars or more, but less than thirty thousand dollars, shall be made by obtaining not less than three telephone or facsimile quotations. A written confirmation of the accepted offer shall be obtained and made a part of the purchase file. If quotations lower than the accepted quotation are received, the reasons for their rejection shall be recorded in the purchase file.
Small Purchase: Solicitations Did the SFA restrict competition? Were specifications (crystal) clear? Did the solicitations include Buy American Provision?
Small Purchase: Evaluation & Award Did the SFA maintain records sufficient to detail the significant history of the procurement?
Small Purchase: Evaluation & Award Was the correct vendor selected based on the products/services requested and the vendor responses provided?
Small Purchase: Contract Management Does a review of the 3 invoices/receipts show that the SFA purchased the products that were solicited from the vendor?
Small Purchase: Non- Compliance Document non-compliance issue Provide technical assistance Require corrective action
Activity Time!
Compliant? Quotes from Internet Quotes from 2 companies, do not match One quote from Internet, printed or pdf One quote from local company Buy American for food products Cost analysis $9,000
Compliant? One quote from Internet, printed or pdf One quote from local company Buy American for food products Cost analysis $39,000 One quote from Internet, printed or pdf One quote from local company Buy American for food products Cost analysis $19,000
Questions???