PROCUREMENT REVIEW PROCESS & PROCUREMENT WORKSHEET TRAINING WEBINAR

Rose Wolterbeek, MA, SNSNevada Department of AgricultureSeptember 14, 2016

PROFESSIONAL STANDARDS LEARNING CODES: 2000 OPERATIONS: 2400 PURCHASING/PROCUREMENT &3000 ADMINISTRATION: 3200 PROGRAM MANAGEMENT

Goals of today’s webinar: Provide a brief overview of the Procurement Process Provide a brief overview of procuring local foods Completion of the Procurement Worksheet Procurement Review Schedule for 2016 17 Resource Sharing

WHY A PROCUREMENT REVIEW?

The purpose of a procurement review is for State agencies to ensure the procurement process conducted by school food authorities (SFAs) complies with Program and the government-wide procurement standards. Procurement standards must be conducted in a manner providing full and open competition (2 CFR 200.319(a)).

WHAT IS PROCUREMENT ?

Definition: The act of obtaining of goods or services

in exchange for money or value

WHY THIS YEAR?

As part of the Healthy Hunger Free Kids Act, the area of focus for USDA is on procurement for School Year 2016/17. The procurement of goods and services is a significant responsibility of a school food authority (SFA). Obtaining the most economical purchase should be considered in all purchases when using Federal funds.

HOW DOES PROCUREMENT WORK FOR ME?

Federal, state and local laws and regulations specify the procurement methods, terms and conditions SFAs must follow to competitively procure goods and services, award contracts, and oversee contractor performance. (2 CFR 200.318(b)) Amount in purchases determines the method

WHAT ABOUT BUYING LOCAL?

Catrina Peters, MS, RDSchool Nutrition Services Manager

Recent successes-local cantaloupe in all Washoe County Elementary Schools last week!

WHAT ABOUT BUYING LOCAL?

What does local mean?

What types of products are local?

What’s Geographic preference?

Informal or Formal procurement?

POLL QUESTIONS

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

EXAMPLES OF “LOCAL” DEFINITIONS

• Page County Public Schools, in Virginia, defines local using three tiers:

» Within the county» Within the region (within 90 miles of Luray, VA)» Within the state

• Oakland Unified School District, in California, defines local within a 250-mile radius of the city of Oakland.

• Hinton Public Schools, in Oklahoma, defines local as within Oklahoma.

WHAT TYPES OF PRODUCTS?

Prohibited in Federal procurements except where applicable Federal Laws expressly permit their use

National School Lunch Act: apply a geographic preference when procuring unprocessed locally grown or locally raised agricultural products.

7 CFR Part 210.21(g)

WHAT DOES UNPROCESSED MEAN?

HOW TO INCORPORATE GEOGRAPHIC PREFERENCE

INFORMAL VS FORMAL

IDENTIFYING SOURCES--LOCAL PURCHASING USING INFORMAL METHODS

SFAs may contact local sources for purchasing products under informal purchase procedures (but do not include “local” as a specification)

3 bids and a buy

Small purchases may include geographic preference for unprocessed agricultural products

must state in the solicitation and include evaluation criteria and scoring

Use product descriptions, requirements, and specifications to target local products

HOW DO I KNOW WHAT’S GROWN NEAR ME?

http://nutrition.nv.gov/Programs/Farm_to_School/Farm_to_School_Program/

RESOURCES ON BUYING LOCAL

http://www.fns.usda.gov/farmtoschool/farm-school

Webinars, slides, handouts

Who attended NDA’s In Person Procurement Training last year?

If yes, which regional location: Elko, Sparks/Reno, Las Vegas or Clark County School District

POLL QUESTIONS

Procurement Methods Quick Reference

Micro Purchases

Procurement by Small Purchase

Procedures

Sealed Bids (IFB)

(formal)

Competitive

Proposals (RFP) (formal)

Non-competitive

Proposals

Regulations 200. 320(a)

200.67

200.320(b)

200.88

200. 320(c)(1)(i-iii) 200. 320(c)(2)(i-v)

200. 320(d)(1)

200.320(f)(1)

Procedures in a nutshell

Purchases not exceeding $3,500,

may be awarded without soliciting

competitive quotations if price is

reasonable

Purchases not exceeding applicable

Small Purchase Threshold

(Fed=$150,000). Minimum of three

price quotes

Technical specifications Advertise bid

Public bid opening Award on price alone

– firm fixed price

Solicitation includes evaluation criteria.

Award based on score with primary weight

on price (not price alone)

Item available only from a single

source; public exigency;

competition deemed

inadequate SA oversight Assurance of

reasonable and necessary costs;

purchases distributed equitably among

qualified suppliers; Buy American;

documented

Assurance of competition; Buy

American; documented

Assurance of advertising, bid

opening, resulting in fixed price contract

(required provisions--7 CFR Part 210, 2

CFR Part 200, Appendix 2 Part 200)

Assurance of advertising, proper

evaluation/award, results in fixed price

or cost reimbursable contract (required

contract provisions--7 CFR Part 210, 7 CFR Part 200, Appendix 2

Part 200) SA must assure SFA

receives discounts, rebates and credits in

cost reimbursable contracts

Assure adherence to 200.320(f)(1)

Informal Formal Methods

STEP ONE: COMPLETION OF THE PROCUREMENT WORKSHEET

Part 1-Name of the School Food Authority including datePart 2-Name of Procurement Authority in your school/organization Part 3-What is your small purchase threshold? For the state of Nevada the amount is $50,000 but perishables are exempt from this per NRS Chapter 332.115. For most the answer is $150,000. Most restrictive level applies!Part 4-Does the SFA pay the services of a Group Purchasing Organizations (GPO)? Yes or No Answer. Most in NV are not paying for this service

[SFA NAME HERE] DATE:

SFA Procurement Table Completed by: Procurement Authority (List staff at the LEA/SFA level responsible for procurement)

SFA Instructions: List name(s), position(s)/title(s) and contact information of those person(s) authorized by the LEA/SFA as procurement agent(s) and who is/are responsible for compliance with local, state and federal program regulations, including Child Nutrition Program requirements.

Name Position/Title

Responsibilties (Ex: conducts

micropurchases, small purchase

procedures, develops IFB/RFPs,

monitoring etc.) Contact Information

Small Purchase Threshold Information: SFA Instructions: Answer questions below.

What is the small purchase threshold for the LEA/SFA?

Group Purchasing Organizations, Group Buying Organizations and Third Party Entities SFA Instructions: Answer questions below. Did the SFA pay a membership fee/pay for the services of a Group Purchasing Organization (GPO), Group Buying Organization (GBO) or third party entity? If YES, include the name of the GPO, GPO or third party entity in the comments.

If YES, is the SFA currently receiving rebate checks from this organization?

If YES, how often does the SFA receive checks (monthly, quarterly, annually, other)?

What was the total value of rebates deposited in the nonprofit food service account from checks received from these companies in the prior year?

IDENTIFY THE METHOD OF USED-TYPE OF PROCUREMENT METHOD

Complete the following: Names of Vendors Goods/Services Provided Total Paid to Vendor Number of purchases

DEFINITIONS OF TYPE OF PROCUREMENT METHODMicro Purchases-($0-3500) Acquisition of Supplies or services, whose aggregate dollar amount does not exceed the micro purchase threshold ($3500) per transaction

Small Purchase Threshold-(0-$150,000) Purchases valued below the Small Acquisition Threshold, the Federal value is $150,000. Three bids and a buy!

DEFINITIONS OF PURCHASES

Formal Purchases ($150,000 or more) Sealed Bids (IFB) Invitation for Bid-award is based solely on

price (lowest) Competitive Proposals (RFP) Request for Proposals-award is

based on other factors, price must be “weighted” the highest on the scoring

PROCUREMENT METHODSSmall Purchase Threshold

1. Informal 2. Formal

Micro-Purchases<$3,500

Small Purchases$0-$150,000 Sealed Bids (IFBs) &

Competitive Proposals (RFPs)

* Requires public advertising

Requires price quotes from at least 3 bidders

Distribute equitably among

suppliers

(Federal Threshold = $150,000)< >

Micro Purchases (Purchases from vendors valued between $0.00-$3,500) A39

Name of

Vendor

Goods/Services Provided

Total Paid to Vendor

Product(s) and/or

service(s) purchased

How many

purchases were made

from this vendor during

the school year?

Comments

Small Purchase/Informal Contracts (Purchases from vendors valued between $0-$150,000, or most restrictive threshold) SFA Instructions:

Input information below.

Name of Vendor

Goods/Services Provided

Total Paid to Vendo

r

Product(s) and/or

service(s) purchase

d

Was this a one-time purchase or did the SFA use

this vendor for

multiple purchases

?

Did the SFA receive

more than one

response to its

solicitation?

Was a GPO/GBO/third party entity awarded this

contract?

Comments

Formal Contracts: Sealed Bids/Competitive Proposals (Contracts with vendors valued at or above $150,000, or at or above the State's/LEA's small purchase threshold) SFA Instructions: Input information below. +A70

Name of Vendor Goods/Services Provided

Contract Value

Solicitation Type (IFB or RFP)

Contract type (Fixed Price or

Cost Reimbursable)

Contract Duration

Did the SFA receive

more than one

response to its

solicitation?

Was a GPO/GBO/non-SFA only COOP involved in the

execution of this contract?

Were any amendments made to this

contract after it was awarded?

Comments

[SFA NAME HERE] DATE:

SFA Procurement Table Completed by:

Procurement Authority (List staff at the LEA/SFA level responsible for procurement)

SFA Instructions: List name(s), position(s)/title(s) and contact information of those person(s) authorized by the LEA/SFA as procurement agent(s) and who is/are responsible for compliance with local, state and federal program regulations, including Child Nutrition Program requirements.

Position/Title Responsibilties (Ex: conducts micropurchases, small purchase procedures, develops IFB/RFPs, monitoring etc.)

Contact Information

Small Purchase Threshold Information: SFA Instructions: Answer questions below.

What is the small purchase threshold for the LEA/SFA?

What is the small purchase threshold for the State, if applicable?

Did the SFA pay a membership fee/pay for the services of a Group Purchasing Organization (GPO), Group Buying Organization (GBO) or third party entity? If YES, include the name of the GPO, GPO or third party entity in the comments.

If YES, is the SFA currently receiving rebate checks from this organization?

If YES, how often does the SFA receive checks (monthly, quarterly, annually, other)?

What was the total value of rebates deposited in the nonprofit food service account from checks received from these companies in the prior year?

Micro Purchases (Purchases from vendors valued between $0.00-$3,500) A39

Goods/Services Provided Total Paid to Vendor Product(s) and/or service(s) purchased How many purchases were made from this vendor during the school year? Comments

Small Purchase/Informal Contracts (Purchases from vendors valued between $0-$150,000, or most restrictive threshold) SFA Instructions: Input information below.

Goods/Services Provided Total Paid to Vendor Product(s) and/or service(s) purchased Was this a one-time purchase or did the SFA use this vendor for multiple purchases? Did the SFA receive more than one response to its solicitation? Was a GPO/GBO/third party entity awarded this contract? Comments

Formal Contracts: Sealed Bids/Competitive Proposals (Contracts with vendors valued at or above $150,000, or at or above the State's/LEA's small purchase threshold) SFA Instructions: Input information below.+A70

Goods/Services Provided Contract Value Solicitation Type (IFB or RFP) Contract type (Fixed Price or Cost Reimbursable) Contract Duration Did the SFA receive more than one response to its solicitation? Was a GPO/GBO/non-SFA only COOP involved in the execution of this contract? Were any amendments made to this contract after it was awarded? Comments

Sample Procurement Worksheet-One page Document

BEST PRACTICES FOR COMPLETION OF PROCUREMENT WORKSHEET:

Obtain copy of vendor list from accounts payable or your school food services non profit food service account for July 1st 2015 –June 30 2016

Request velocity or usage reports from your vendors, broken out by date, total amount by vendor for July 1st-June 30, 2015 time period

For Micro Purchases, Report the amount Per Transaction on the total purchases. For example, if you purchase weekly, report the average weekly amount on the amount entered and enter 35-40 if you for the number of weeks in the school year based on your purchasing frequency.

BEST PRACTICES FOR COMPLETION OF PROCUREMENT WORKSHEET:

For the small purchase threshold, report the total amount by product category for the School year. For example, if you plan on spending $ 75,000 on dairy, report the full amount of the purchases for the year.

For Formal bidding, report the total amount of the contract for the year. For example, with a vended meal contract or FSMC, put the total dollar amount for the year based with the vendor.

WHAT IS NEXT?

Email your completed worksheet as an excel file to NDA two weeks prior to your Administrative Review On site date(s)

Sent a copy of your Vendor Paid List with the completed worksheet

Have materials available for onsite Procurement Review such as purchase orders, receipts, vended meal contracts, food service management contracts, & contract monitoring forms

WHAT OTHER AREAS WILL BE REVIEWED?

Written procedures for procurement transactions including technical requirements

Written Standards of Conduct covering conflict of interest Records detailing the history of the procurement-logs, emails,

Request for Proposals solicitation documents, scoring rubrics, emails

Buy American Provision, Policies, and Practices Geographic Preference Policies and Practices

RESOURCE SHARING:

NDA Website http://agri.nv.gov/Food/FoodNutrition_Home/USDA Website Procurement Resources http://www.fns.usda.gov/farmtoschool/procurement-methodsICN Website Procurement Resources http://www.theicn.org/ResourceOverview.aspx?ID=475

Professional Standard Learning Codes:

2000 Operations: 2400 Purchasing/Procurement &3000 Administration: 3200 Program management

PLEASE TYPE QUESTION IN TEXT BOX OR CALL NDA AT 775-353-3758 FOR TECHNICAL ASSISTANCE