procurement: what everyone needs to know. what is procurement? “the act of obtaining something”
TRANSCRIPT
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Procurement:What Everyone Needs to Know
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What is Procurement?
“The act of obtaining something”
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What is Procurement?
• Procurement standards and regulations ensure food, supplies, equipment, and other goods and services are obtained efficiently, economically, and in accordance with the law.
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Why Do Procurement?
• Promote free and open competition for your business
• Get the best possible services that meet your needs at the best price
• Avoid problems with conflict of interest … and worse (accusations of fraud, bribery, etc.)
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When is Procurement Done?
• Signing a contract or purchasing any single item or service over $10,000
and
• Using Federal or District funds (or a combination)
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How is Procurement Done?
• ≤$10,000: Verbal quotes recommended
• $10,000 - $100,000: Three written quotes
• >$100,000: Request for Proposals (RFP) or Invitation for Bids (IFB)
• Develop internal procedures or follow State Agency procedures
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Small Purchases
• For purchases $10,000 - $100,000:
– Develop written specifications
– Solicit quotes based upon the same set of specifications
– Obtain written quotes
– Go with the lowest quote
that meets your needs
– Sign contract / buy item
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Large Purchases over $100,000
• Options: – Invitation for Bids (IFB)– Request for Proposals (RFP)
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Invitation for Bids (IFB)
• Award based upon quotes (bids) received
in response to specifications
• Price is the only factor
• May request approval to choose higher
bidder– Provide justification that lowest bidder will not
meet specifications
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Request for Proposals (RFP)
• Award based upon pre-determined criteria
– Rubric assigns point value to criteria
– Price must be more than half of total points
• Companies submit proposals
– Respond to RFP criteria
– Provide quote
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Request for Proposals (RFP)
• Provides flexibility to award contract based on:
– References
– Experience
– Menu quality
– Etc.
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IFB / RFP Process
• Develop IFB or RFP– Create specifications– Adapt State Agency template or use institution’s
• Seek approval as needed
• Publicly advertise – Newspaper, classifieds, etc.– Publish at least 14 days prior to deadline– May also post on organization’s website and/or
solicit bids/proposals directly
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IFB / RFP Process
• Distribute IFB or RFP
• Respond to questions as needed
• Receive sealed bids or proposals
• Open and review bids or proposals
• Award contract: lowest bid or highest-scoring proposal
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Contracts
• Know it well
• Monitor compliance
• Termination is an option– Provide documentation and justification
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Contracts
• Base year (initial year) + up to three option years
(renewals)
– Renew only if option was included in specifications
– Up to four years in between procurements
• Renewal is your choice
• Substantial changes to specifications require new
procurement
– Examples: new meal pattern requirements; substantial number
of new sites under contract; new meal service
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Questions