Arkansas Department of Education Child Nutrition Unit All school districts are required to have a Procurement Review once every 3 years beginning with the 20162017 school year Everything discussed today will be part of the Procurement ID: 739810
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Slide1
procurement
October 2016 Digital LearningArkansas Department of EducationChild Nutrition UnitSlide2
All school districts are required to have a Procurement Review once every 3 years beginning with the 2016-2017 school
year
Everything
discussed today will be part of the Procurement
Review
Tune
in to the November Digital Learning for more details on the documentation, questions, and reports needed for the Procurement
Review
See
the “Procurement” page of
the ADE
CNU website for more informationSlide3
Buy American,
procurement code of conduct,and geographic preferenceJerry SwopeSlide4
BUY AMERICAN PROVISION
Required under 7 CFR Part 210.21(d); section 104(d) of the Child Nutrition Reauthorization Act of 1998 SFA’s MUST purchase, to the maximum extent practicable, domestic commodity or
product
SFA’s MUST comply with this as one of the standards for
procurement
Supports Mission of the Child Nutrition
Program
Supports local and small
businesses
USDA requesting the Industry to be ‘engaged & supportive
’Slide5
BUY AMERICAN PROVISION
DEFINITIONSDomestic Commodity or Product
–
an agricultural commodity that is produced in the US and a food product that is processed in the US using substantial agricultural commodities that are produced in the US.
Substantial
–
over 51% of the final processed product consists of agricultural commodities that were grown domesticallySlide6
BUY AMERICAN PROVISION
PLEASE NOTE THE FOLLOWING US TERRITORIESGuamAmerican Samoa
Virgin Islands
Puerto Rico
Northern
Mariana
IslandsSlide7
BUY AMERICAN PROVISION
HOW TO DETERMINE IF AN ITEM IS DOMESTIC
Packaging information
during
delivery
Box
Individual cans/package
Invoice as country of originSlide8Slide9Slide10Slide11Slide12Slide13
ALL PROCUREMENT TRANSACTIONS MUST COMPLY WITH BUY AMERICAN WHETHER PURCHASED BY SFAS OR ENTITIES PURCHASING ON THEIR BEHALF
Group Purchasing OrganizationsCooperatives of schools Inter-entity agreementsFood Service Management Companies
BUY AMERICAN PROVISIONSlide14
LIMITED EXCEPTIONS
Used as a last resortProduct not produced or manufactured in US in sufficient & available quantity or satisfactory qualityCompetitive bids reveal the cost significantly higher than non-domestic product
BUY AMERICAN PROVISION
SFA
MUST
have documentation to justify the exceptionSlide15
WHAT KIND OF
DOCUMENTATION TO JUSTIFY EXCEPTION?Bid Prices for both domestic & foreign productsDocumentation between SFA and the food supplierEmailTelephone communication documentation
BUY AMERICAN PROVISIONSlide16
BUY AMERICAN JUSTIFICATION FORM
is required for each non-domestic productSee Commissioner’s Memo CNU-16-039
Slide17Slide18
If non-domestic products are identified without documentation, a finding will be issued with required corrective action
Repeat violations without documentation may result in findings of unallowable expenses and require non-federal funds to repay those expenses to the nonprofit foodservice accountSlide19
BEST PRACTICES
Understand your marketInclude ‘Buy American’ provision in all product specifications bid solicitations
RFP
contracts
purchase orders
t
each staff proper receiving practices
BUY AMERICAN PROVISIONSlide20
PROCUREMENT CODE OF CONDUCT
Written into required procurement policies & procedures for the Child N
utrition
P
rogram
WRITTEN CODE OF CONDUCT SHOULD:
Prohibit
employees from soliciting
or accepting gifts
Prohibit employees from
accepting travel
packages
Prohibit employees from
accepting other
incentives from prospective contractors
Prohibit employees from participating in the selection, award & administration of any contract to which an entity, or certain persons connected to them, have financial interestSlide21
WRITTEN CODE OF CONDUCT SHOULD:
Provide Child Nutrition operators to set standards when financial interest is not substantial or the gift is an unsolicited item of nominal value and may be acceptable (for example: coffee mug, pencil, or
calendar)
P
rovide
for disciplinary actions to be applied in the event the standards are violated.
PROCUREMENT CODE OF CONDUCTSlide22
GEOGRPAHIC PREFERENCE
Prohibited in Federal procurements except where applicable Federal Laws expressly permit their useNational School Lunch Act: Schools have the option to apply a geographic preference when procuring unprocessed locally grown or locally raised agricultural products
The SFA can determine the definition of localSlide23
SUMMARY
Districts MUST follow BUY AMERICAN provisionAll non-domestic products MUST be evaluated with documentation
The ‘BUY AMERICAN JUSTIFICATION FORM’ MUST be completed for all non-domestic products
Districts MUST have a WRITTEN Procurement Code of Conduct
Districts can apply a geographic preference when procuring locally grown unprocessed foodsSlide24
INFORMAL PROCUREMENT
Micro-purchasesMaegan Wade, RD, LDSlide25
Procurement Methods
Simplified Acquisition Threshold
“Small Purchase Threshold”
(State
Threshold = $
10,000
)
<
>
Informal
Formal
Micro-Purchases
Small Purchases
Total purchase is
≤
$
3,500
Distribute equitably among suppliers
Price is reasonable
Price quotes from adequate number of qualified sources
Total purchase is $3,501 - $10,000
*
Requires public advertising
Sealed Bids (
IFBs
)*
Competitive Proposals (
RFPs
)*
ORSlide26
MICRO-PURCHASES
USED WHEN THE PURCHASE
OF SUPPLIES OR SERVICES ARE
≤
$3,500
ENSURE PURCHASES
ARE DISTRIBUTED EQUALLY AMONG QUALIFIED SUPPLIERS
NO QUOTES REQUIRED
PRICE MUST BE RESPONSIBLESlide27
WHAT IS CONSIDERED A PURCHASE?
EXAMPLESA
Child Nutrition Director
purchases computer paper, ink cartridges, paper towels, and cleaning fluids
from the same supplier at the same time
. That would be a single transaction.
If the
total
bill
did not
exceed $3,500,
this transaction
is
a
micro-purchase.
A
Child Nutrition Director makes
the following purchases on the
same day at two separate locations
:
computer
paper and ink cartridges at a retail office supply store, and paper towels and cleaning fluids at a different retailer store
. Each purchase is a separate transaction, therefore the dollar amount spent at each store must not exceed $3,500.
MICRO-PURCHASESSlide28
DISTRIBUTING
EQUALLY AMONG QUALIFIED SUPPLIERSChild Nutrition Programs cannot make micro-purchases from only one sourceThis provides qualified sources the opportunity for business
“Spread the Wealth”
MICRO-PURCHASESSlide29
SHOULD A SMALL DISTRICT IDENTIFY THEIR MOST FREQUENTLY PURCHASED ITEMS AND COMPARE PRICES?
Although a good idea, and a sound business practice, price comparisons are not required for purchases that do not exceed $3,500 as long as the district considers the price to be reasonable.
Price
comparison
requirements could be
included in the
district’s required written procurement policy.
WHAT
IF A SMALL DISTRICT SHOPS AT A RETAIL GROCERY STORE WEEKLY, AND THEIR BILL IS LESS THAN $3,500?
Price comparisons are not required for micro-purchases as long as the district considers the price to be reasonable. The district must, however, to the extent practicable, distribute these purchases equitably among qualified suppliers
MICRO-PURCHASESSlide30
IS THERE A LIMIT ON HOW MANY MICRO-PURCHASES CAN BE MADE?
There is not a limit on the number of micro-purchases allowed, however: Consideration should be given to consolidating or breaking out procurements to obtain a more economical purchase. Where appropriate, analysis to determine the most economical approach should be made. Non-perishable items might be easier to consolidate into economical purchases, while perishable foods might not; such guidelines could be included in the
district’s
required written procurement
policy.
MICRO-PURCHASESSlide31
MICRO-PURCHASES
PROCESS TO USE:Figure out what you need to purchase
(Buy American is required)
Conduct research of the product(s) or service(s) needed
Make the purchase
Distribute micro-purchases equally among qualified suppliers Slide32
EXAMPLE
3 year contract where the cost per year is $2,000 (total contract amount is $6,000)Would this be considered a micro-purchase because the cost per year is less than $3,500?
MICRO-PURCHASES
No—You must go by the total contract amount of $
6,000
Small purchase procedures must be used! Slide33
INFORMAL PROCUREMENT
Small purchasesShelia BaileySlide34
Procurement Methods
Simplified Acquisition Threshold
“Small Purchase Threshold”
(State
Threshold = $
10,000
)
<
>
Informal
Formal
Micro-Purchases
Small Purchases
Total purchase is
≤
$
3,500
Distribute equitably among suppliers
Price is reasonable
Price quotes from adequate number of qualified sources
Total purchase is $3,501 - $10,000
*
Requires public advertising
Sealed Bids (
IFBs
)*
Competitive Proposals (
RFPs
)*
ORSlide35
SMALL PURCHASES
USE IT WHEN…
The estimated amount of your purchase is
between $3,501 to $10,000
or if your district has a
more restrictive threshold
Obtain
at least three
oral or written quotes
email, phone, in-person, mail, etc.
DocumentedSlide36
PRE-BID INSTRUCTIONS
Over the school year talk to prospective vendors to see what kinds of products they offer and who to contact in the future when you need quotes on pricing.Schools will want to seek out enough vendors to ensure they can get pricing from at least three vendors.Build quality business relationships with the vendors.By building these vendor relationships over the school year, you will have a better understanding about what is available in the market and it will reduce the time it takes to conduct a competitive procurement.
SMALL PURCHASE PROCEDURESSlide37
SMALL PURCHASE PROCEDURE PROCESS:
DRAFT specifications in writing
IDENTIFY
and
NOTIFY
at least 3 sourcesSlide38
Document
bidders’ response to specificationsEvaluate bidders’ response to specifications
AWARD
contractSlide39
MANAGE
the contractSlide40
BUY AMERICAN APPLIES
Include U.S. as the country of origin to food specificationsMonitor food deliveries and invoices to determine country of originConsider alternative U.S. products before approving exceptionsDocument exceptions:
*
Price of domestic is significantly higher than non-domestic
* Availability of quality of domestic dos not meet required quantity
SMALL PURCHASESSlide41
INFORMAL PROCUREMENT
(3 BIDS & A BUY)Slide42
Supplier Name:
Supplier A: Bob’s Company
Supplier B: Mary’s Company
Supplier C: Pat’s Company
Items to be Purchased:
Product specifications
Delivery Frequency:
one time delivery
Bid will be honored for:
two weeks
(school will state time period)
Quantity estimated to be purchased
Unit Price
Extended Price (Quantity x Unit Price)
*BS
(
)
Unit Price
Extended Price (Quantity x Unit Price)
*BS
(
)
Unit Price
Extended Price (Quantity x Unit Price)
*BS
(
)
Applesauce 6/10 cans
30
15.75
472.50
16.50
495.00
15.00
450.00
Pineapple 6/10 cans
10
16.25
162.50
17.50
175.00
18.00
180.00
Cranberry Sauce 6/10 cans
5
25.25
126.25
21.75
108.75
23.50
117.50
Peaches, Freestone, (Halves) 6/10 cans
30
22.25
667.50
21.50
645.00
22.75
682.50
Total:
$1433.25
$1423.75
$1430.00
*Bidder Selected (BS)
*Bidder Selected (BS); school can award all items to one bidder (lowest total price) or award purchase on a line item basis (lowest line item price). School need to tell the bidders which option they will use for awarding the purchase when they are asking for pricing. Schools can state that either option may be used by the school to award the purchase.
Method of contact: Phone, Fax, Email or In Person
Fax
Phone
In Person
Name of person providing bid:
Bob
Mary
Pat
Date contacted:
July 11, 2012; Faxed in bid - Bid sheets attached
July 10, 2012; Price given per phone. - Confirmed in writing and attached
July 13, 2012; Visited store and obtained prices. - Price sheet attached
Additional Notes:
Bob said their fresh fruit and vegetables are more competitively priced than canned goods.
Best overall pricing; Mary stated that they will have a clearance special going on in October.
Pat said that their delivery costs have gone up recently but that in November they will have a new distributor and pricing.
Signature of person completing this form: Sam Anderson
Date: July 15, 2012
Instructions and example for Completing Informal Procurement Log
(Purchases costing less than $10,000)
The Informal Procurement Log can to be used to document all bids received as a result of the schools’ solicitation for purchasing products/services costing less than $10,000. A school will need to
solicit at least three bids
in order to achieve competition and to satisfy federal procurement requirements. Schools will need to document the bids and all other pertinent information discussed with the bidders. Schools must make certain that all bidders receive the same product specifications.
All procurement records must be kept for at least five years from the date the last invoice is paid.
INFORMAL PROCUREMENT LOGSlide43
Supplier Name:
Items to be Purchased:
Delivery Frequency : __________
Bid will be honored for: ________
(number of day(s)/week(s)/month(s)) (school will state time period)
Quantity estimated to be purchased
Unit Price
Extended Price (Quantity x Unit Price)
*BS
(
)
Unit Price
Extended Price (Quantity x Unit Price)
*BS
(
)
Unit Price
Extended Price (Quantity x Unit Price)
*BS
(
)
1.
Product name & specification:
2.
Product name & specification:
3.
Product name & specification:
4.
Product name & specification:
5.
Product name & specification:
6.
Product name & specification:
Total:
$
$
$
*Bidder Selected (BS)
*Bidder Selected (BS); school can award all items to one bidder (lowest total price) or award purchase on a line item basis (lowest line item price). School need to tell the bidders which option they will use for awarding the purchase when they are asking for pricing. Schools can state that either option may be used by the school to award the purchase.
Method of contact: Email/Fax/Mail/In person/Phone
Name of person quoting pricing:
Date contacted:
Additional Notes:
Signature of person completing this form:
Date: INFORMAL PROCUREMENT LOG AND EVALUATION MATRIX (Purchases costing less than $10,000) Name of bidder selected: ______________________________Bidder selected was notified on
: ___________________ (If notification was in writing attach document to the procurement log/evaluation matrix)
Method of notification
: ____________________ (Email/Fax/Mail/In person/Phone)Slide44
Micro Purchases
Small Purchase Procedures
Regulations
200.320(a)
200.67
200.320(b)
200.88
Procedures in a
nutshell
Procurement by micro-purchase is the acquisition of supplies or services not exceeding
$3,500
; may be awarded without soliciting competitive quotations if price is reasonable.
Purchases <$10,000
(or State/local threshold if less)
Minimum of three price quotes
State
Agency
oversight
Assurance of reasonable and necessary costs, Buy American as found in applicable Program
regulations
Assurance of competition, Buy American as found in applicable Program
regulationsSlide45
QUESTIONS?Slide46
Formal
procurementinvitation for bid (ifb)
Ronna
SeGraves
, MS, RD, LDSlide47
Procurement Methods
Simplified Acquisition Threshold
“Small Purchase Threshold”
(State
Threshold = $
10,000
)
<
>
Informal
Formal
Micro-Purchases
Small Purchases
Total purchase is
≤
$
3,500
Distribute equitably among suppliers
Price is reasonable
Price quotes from adequate number of qualified sources
Total purchase is $3,501 - $10,000
*
Requires public advertising
Sealed Bids (
IFBs
)*
Competitive Proposals (
RFPs
)*
ORSlide48
Formal Procurement Methods
Simplified Acquisition Threshold
(State
Threshold =
$10,000)
>
Formal
Sealed Bids (IFBs)*
Competitive Proposals (
RFPs
)*
OR
Contract Awarded to
:
Lowest responsive and responsible bidder.
Fixed Price Contract
with or without price adjustments tied to a standard index
Requires
public Advertising.
Open publically at time and place prescribed.
Contract Awarded to:
Most advantageous response with price as primary factor among factors considered.
Fixed Price Contract
with or without price adjustments tied to a standard index
or
Cost Reimbursable Contract
Requires public
Advertising.
Includes evaluation factors
(price is primary)
**The solicitation must clearly state what type of contract will be awarded**Slide49
THE SEALED BID
USE IT WHEN…
Procurement by
sealed
bidding is done by issuing an
invitation for bid (IFB)
A complete, adequate, and realistic specification is available
The contract can be awarded on the basis of
price
Two or more bidders
are available
– WILLING and ABLE to competeSlide50
THE COMPONENTS OF A SEALED BIDSlide51
THE SEALED BID PROCESSSlide52
FORMAL BID PROCESS
Decide items you need (use menu & USDA program requirements) and how much you can commit to purchase for the year
Evaluate available vendors – obtain contact (solicitation) information –expectations associated with the purchase
Write descriptions/specifications
Prepare cover letter and mail out bid requests
Open returned bids & evaluate per established criteria
Award letter sent to selected vendor
Manage the contractSlide53
Product Name
VarietyGrade
Size
Quantity
Quality
Cleanliness
Packaging
Delivery
Food Safety
Farm Practices and Characteristics
Other requirements based on product or service
WRITING CLEAR AND THOROUGH SPECIFICATIONSSlide54
INFORMATION THAT SHOULD BE
INCLUDED IN BID INTRO
Delivery Information and Specific Details (Time, Location, required duties)
Standards of their company
Certification of Debarment
Buy American
Notice of Escalation / De-escalation
Fuel Surcharge
Rebate Policy
Substitution PolicySlide55
TYPES OF SOLICITATIONS AND AWARDS
Line Item SolicitationIndividual items are solicited
Vendor
can bid on each item accordingly
Market Basket Solicitation / Product Grouping Bids
Vendor
submits a solicitation for the entire group (lot) of
items
Prime Vendor Solicitation (
prime vendor, Bottom Line or
all-or-nothing solicitation)
Estimated quantities are
multiplied by case price to
determine
total cost for bid contractSlide56
ADVERTISING THE IFB
The content of the solicitation announcement should be sufficient enough in scope to allow
bidders
to identify:
The general nature of the goods or services to be procured
The method of procurement that will be used (formal-IFB or RFP)
How they can obtain the solicitation or more information
The due date for responses to the solicitationSlide57
ADVERTISING THE IFB—DUE DATES
Keep in Mind:The complexity of your IFB
USDA recommends using 4-6 weeksSlide58
ADVERTISING METHODS FOR THE IFB
Newspaper announcement (state, regional)
Trade journals
Invitation
letter (direct mailings)
Email or fax
to company
District WebsiteSlide59
EVALUATING THE PROPOSALS:
means that the vendor submits a bid that conforms to all terms of the solicitation
means that the vendor is capable of performing successfully under the terms of the contract
RESPONSIVE
RESPONSIBLE
Ensuring Responsive and Responsible ContractorsSlide60
EVALUATE & CHOOSE A VENDOR –
MAKING THE DECISIONPrice Rationale may include:
Payment terms
Quality
Delivery Time
Freight Charges
Shipping
Point
Can choose to use more than one vendorSlide61
DETERMINE IF A CONTRACTOR IS RESPONSIBLE BY INVESTIGATING THE CONTRACTOR’S:
IntegrityCompliance with public policyRecord of past performanceFinancial and technical resources
IF IT IS DETERMINED THAT THE CONTRACTOR IS NOT RESPONSIBLE:
Carefully document decision
Contractor becomes ineligible for award
RESPONSIBLE?Slide62
This ensures that contractors perform in accordance with the terms, conditions, and specifications of their contracts, and allows for adequate and timely follow-up of all purchases
MANAGING YOUR CONTRACTSlide63
THE DISTRICT MUST MONITOR VENDOR PERFORMANCE TO
MAKE SURE THEY:Receive the quantity and quality of the goods and services requested
Receives
the goods and services on time
Adhere to the prices
as
bid
Provide Good Customer Service
Act Responsible and Responsive
MANAGING THE BID…AFTER THE AWARDSlide64
SFA RESPONSIBILITIES
Ultimately, it is the district’s
responsibility to follow each of these Procurement Process steps
The
district
is
NOT
to be guided by vendors’ opinions or requestsSlide65
Formal procurement COMPETITIVE PROPOSALS (
RFps)Vicki HillSlide66
Procurement Methods
Simplified Acquisition Threshold
“Small Purchase Threshold”
(State
Threshold = $
10,000
)
<
>
Informal
Formal
Micro-Purchases
Small Purchases
Total purchase is
≤
$
3,500
Distribute equitably among suppliers
Price is reasonable
Price quotes from adequate number of qualified sources
Total purchase is $3,501 - $10,000
*
Requires public advertising
Sealed Bids (
IFBs
)*
Competitive Proposals (
RFPs
)*
ORSlide67
Formal Procurement Methods
Simplified Acquisition Threshold
(State
Threshold =
$10,000)
>
Formal
Sealed Bids (IFBs)*
Competitive Proposals (
RFPs
)*
OR
Contract Awarded to
:
Lowest responsive and responsible bidder.
Fixed Price Contract
with or without price adjustments tied to a standard index
Requires public Advertising.
Open publically at time and place prescribed.
Contract Awarded to:
Most advantageous response with price as primary factor among factors considered.
Fixed Price Contract
with or without price adjustments tied to a standard index
or
Cost Reimbursable Contract
Requires public
Advertising.
Includes evaluation factors
(price is primary)
**The solicitation must clearly state what type of contract will be awarded**Slide68
COMPETITIVE PROPOSALS
USE IT WHEN…
Procurement by competitive proposal is done by issuing a
request for proposal (RFP
)
2CFR PART 200.320(d)
Conditions aren’t appropriate for a sealed bid
Price
*
won’t necessarily be the sole basis for the award
Adequate number of qualified sources (more than one)
* Price is primarySlide69
CONTRACT TYPE:
FIXED PRICE OR COST REIMBURSABLE
Introduction/Scope
Specifications
Include terms, conditions, required contract provisions
Timelines
& Procedures
Technical Requirements
Evaluation and Scoring
Criteria-MUST HAVE the price primary factor
COMPETITIVE PROPOSALSSlide70
WHAT IS THE DIFFERENCE IN CONTRACT TYPES?
FIXED PRICE CONTRACT
Price
is fixed for the contract
duration
Price
adjustments authorization and procedures, if any must be included in the
solicitation
Must be tied to a standard index such as the Consumer-Price
Index
, and
The frequency of adjustment included
Provides the maximum incentive for the contractor to control costs and perform effectively Slide71
FIXED PRICE CONTRACT
Imposes
the
least administrative burden
on the contracting parties (SFAs and other Program operators
)
Contract
duration may be less than one year
as specified in the solicitation and contract
Includes required contract provisions in Appendix II of 2 CFR Part 200
WHAT IS THE DIFFERENCE IN CONTRACT TYPES? (CONTINUED)Slide72
COST-REIMBURSABLE CONTRACT
Provides
for payment of allowable costs incurred in performing the contract
Use when there are uncertainties involved in the contract performance affecting price estimates
Solicitation documents must include evaluation and scoring criteria with price as the primary factor among factors considered
WHAT IS THE DIFFERENCE IN CONTRACT TYPES? (CONTINUED)Slide73
COST-REIMBURSABLE CONTRACT (
con’t)
Requires the use of required contract provisions in 7 CFR Part 210.21(f) and Appendix II of 2 CFR Part 200
Provides
for the reimbursement of allowable costs
plus
the payment of a fixed fee to the contractor
WHAT IS THE DIFFERENCE IN CONTRACT TYPES? (CONTINUED)Slide74
COMPETITIVE PROPOSALS PROCESS
DEVELOP
solicitation—
Buy American
Required
Publicly
ANNOUNCE
the
RFP-
Proposals—must
be solicited from an
ADEQUATE
number of qualified sources
IDENTIFY
all evaluation factors and their relative importance
EVALUATE
bidders’ response to specifications
AWARD
contract—To
the
RESPONSIBLE
firm whose proposal is most
ADVANTAGEOUS
to the program, with
PRICE
and other factors
considered
MANAGE
contract to ensure complianceSlide75
NONCOMPETITIVE PROPOSALS
USE IT WHEN…
Procurement through solicitation of a proposal from only one source
Authorized by
State Agency
after written request
Item
is only available from one source
Public
emergency
– will not permit a delay
After
solicitation of a number of sources, competition is deemed inadequate
7 CFR §3016.36(d)(4) / 2 CFR §200.320(f)Slide76
10/5/2016
76
Sealed
Bids (
IFB)
Competitive Proposals (RFP)
Non-competitive Proposals
Regulations
200. 320(c)(1)(i-iii)
200. 320(c)(2)(i-v)
200. 320(d)(
1)
200.320(f)(1)
Procedures In a nutshell
Technical specifications
Advertise bid
Public bid opening
Award
on price alone – firm fixed price
Solicitation includes evaluation criteria. Award based on score with significant weight on price and not price alone
*
Item
available only from a single source
*authorized written consent
*public
exigency
*competition
deemed inadequate
State Agency oversight
Assurance of advertising, bid opening and resulting in fixed price contract (required provisions relative 7
CFR
210 and 7 CFR 200)
Appendix 2 part 200
Assurance of advertising, SA approval prior to execution of contract, may result in fixed price or cost
reimbursable
SA
must assure SFA receives discounts, rebates and credits in cost reimbursable contracts
Assure adherence to 200.320(f)(1) Slide77
QUESTIONS?Slide78
Procurement policy
Rita HamiltonSlide79
PROCUREMENT POLICY
In our state, during the 2015-2016 School year (Original Agreement) SFA/LEA had to complete a Procurement Attestation Checklist stating that the Procurement Policy contained all of the following information and that it has been implemented by the SFA/LEA and available for review by ADE, CNU staff during monitoring reviews, legislative audit or private auditors, or other regulatory agencies, as needed during hours of program operation to ascertain compliance. Slide80
PROCUREMENT POLICY
State the name(s) and position(s) of:
those
persons authorized by the SFA/LEA as purchasing agent(s)
t
hose persons
responsible for compliance with local, state and federal program
regulations
t
hese names must
follow the approved Local Procurement Policy for the
CNP
t
hese names
must be submitted on
SFA/LEA
the Contact Information sheet.Slide81
PROCUREMENT POLICY
Must ensure that all solicitations:
Incorporate
a clean and accurate description of technical requirement of the material, product or service being procured, which may include a statement of qualitative
nature
of the material, product or
service
Set
minimum essential standards to which the material, product or service must conform if it is to satisfy its intended
use
Must not contain features which unduly restrict competition.Slide82
PROCUREMENT POLICY
USDA Regulations require formal Invitation for Bid (IFB) or Request for Proposal (RFP) for purchases of $
150,000 or
more.
Due to Arkansas’ more restrictive threshold of $10,000, all purchases above $10,000 require formal purchasing as described below.
The State of Arkansas
purchasing requirements provide for formal
IFB
or RFP procedures for purchases of
$10,000 or more.
Describe
in the Procurement Policy
how
this requirement will
be met for purchases of
$10,000 or more
.Slide83
PROCUREMENT POLICY
SFA’s/LEA’s may determine a lower threshold for formal and informal procurement to be
used.
Describe
in the Procurement Policy the process which will be used for purchases with a threshold
between
$
3,501
to $10,000
(open market purchases) for informal procurement methods.Slide84
PROCUREMENT POLICY
Describe the micro-purchase procedure the district will use for purchases
of
$3,500
and
below.
M
ust include a Written Code of Conduct for Employees (as Jerry discussed earlier).Slide85
If pouring rights and vending contracts within the district include Child Nutrition Programs, they must meet all federal, state and local regulations, including:
use of non-profit food service account funds and required purchasing by the Child Nutrition Programs state regulations restricting access times, serving sizes and variety of contents.
Describe in the Procurement Policy how these requirements will be met.
PROCUREMENT POLICYSlide86
The SFA/LEA may chose to participate in a Purchasing Cooperative.
If applicable, describe how the Purchasing Cooperative will meet federal, state, and local procurement regulations. All Purchasing Cooperative procurement documentation must be available for review.
PROCUREMENT POLICYSlide87
QUESTIONS?