Targeting Local Foods Through a Fair Open and Competitive Procurement MA Farm to Cafeteria Conference Jan 13 2015 Welcome Overview Procurement principles and process Procurement methods ID: 373559
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Procurement 101
Targeting Local Foods Through a Fair, Open, and Competitive Procurement
MA Farm to Cafeteria Conference| Jan. 13, 2015
Welcome!Slide2
Overview
Procurement principles and processProcurement methodsKey procurement conceptsDefining local and where to find local foodsWays to buy local productsResources and questionsSlide3
What Is Procurement?
Procurement is the purchasing of goods and services. The procurement process involves:
Planning
Drafting Specifications
Advertising the Procurement
Awarding
a Contract
Managing
the Contract
Procurement
PrinciplesSlide4
Why are Procurement Rules Important?
To ensure that program benefits (and taxpayer dollars!): Are received by eligible schools and children
Are used effectively and efficiently, with no waste or abuseSlide5
Procurement Methods
Federal Threshold = $
150,000MA Threshold = $35,000Municipality = varies Small Purchase(Requires price quotes fromat least 3 bidders)*NEW* Micro-Purchase Threshold of $3,000(no bids required)Sealed Bids (IFBs)
& Competitive Proposals (RFPs) (Requires public advertising
)
Informal
Formal
≤ Small Purchase Threshold > Slide6
NEW in 2015: Micro-purchase Threshold
≤ $3,000; Micro
Purchase Threshold [NEW] FNS Memo implementing OMB Super Circular: On February 27, 2015, FNS will issue a memorandum implementing the new Super Circular at 2 CFR Part 200. CFR 200.320 states, “Procurement by micro-purchase is the acquisition of supplies or services, the aggregate dollar amount of which does not exceed $3,000 (or $2,000 in the case of acquisitions for construction subject to the Davis-Bacon Act). To the extent practicable, the non-Federal entity must distribute micro-purchases equitably among qualified suppliers. Micropurchases may be awarded without soliciting competitive quotations if the non-Federal entity considers the price to be reasonable.”Slide7
The Informal Procurement ProcessSlide8
The
Formal Procurement ProcessSlide9
Splitting Procurements
SFAs cannot arbitrarily divide purchases to fall below the small purchase threshold. In some instances, however, characteristics of a product or market justify the need to separate it from the overall food procurement.
…such as Harvest of the Month programs, taste tests, products for a Farm to School Month promotion. Slide10
3 Key Concepts
CompetitionKnowledge
of Federal, State, and Local RegulationsResponsive and ResponsibleSlide11
1
Competition
Competition is essential to ensure the best cost and quality of goods and services. Slide12
Why is Competition Important?
Price! Sellers may accept a smaller margin of return on a given sale rather than make no sale at all.
Schools may receive more goods or services at a lower price than in a non-competitive environment.Slide13
Why is Competition Important?
Quality!Businesses seek to differentiate themselves in terms of quality and innovation.Each procurement offers an opportunity to consider new and/or higher quality products and services.Slide14
Schools must be aware of procurement requirements at the federal, state and local
levels and are responsible for complying with all levels of regulations.In some cases, state and federal regulations may be in conflict with each other.
2State and Local Procurement PoliciesSlide15
3
Responsive and Responsible
Awards must be made to vendors that are responsive and responsible.
Responsive means that the vendor submits a bid that conforms to all terms of the solicitation.
Responsible means that the vendor is capable of performing successfully under the terms of the contract.Slide16
Section Summary
Procurement is a process, not a one-time eventInformal vs. Formal MethodsEnsure competition- Price! Quality!Follow Federal, State, and Local Procurement PoliciesMake sure bidders are responsive and responsibleSlide17
Defining Local and Where to Find Local FoodsSlide18
What
Does Local Mean?
Who defines local? School food authoritiesWhat are you trying to accomplish?Is there state based initiative around local food purchasing that you would like to align with?Do you want to couple local purchases with farm visits and have personal relationships with suppliers?Do you want to make a definition that aligns with neighboring districts? Slide19
Defining Local
Within a radiusWithin a countyWithin a stateWithin a region
A district’s definition of local may change depending on the:SeasonProductSpecial eventsSlide20
What T
ypes of Products?Slide21
What’s Already Local on Your Menu?
Look at your records. Ask your suppliers whether they purchase local products.
What Could Be Local?
Conduct a menu audit.
Are there items that could easily be replaced with local products?
Think about ways to integrate.
Harvest of the Month program
New recipe development
Salad Bar
Seasonal Cycle Menu
Include tracking of local in future contracts. Slide22
Where to Get Local Foods
Through distributors
Through food servicemanagement companiesFrom food processorsThrough DoD FreshFrom individual producersFrom producer co-ops/food hubsFrom school gardensSlide23
Local as
a Product
Specification“X District is soliciting bids for Massachusetts-grown products.”“This RFP is restricted to producers from within the state.” “We are soliciting bids from producers within a 100 mile radius.” “Only products grown within a 75 mile radius will be accepted.”Slide24
What the Legislation Says
Section 2403 of the 2008 Farm Bill says: “The Secretary shall allow
institutions receiving funds under this Act … to use a geographic preference for the procurement of unprocessed agricultural products, both locally grown and locally raised.’’Slide25
Local as a Preference
“X District operates a Farm to School Program, and prefers to support local and regional producers.”“We seek opportunities to incorporate local food into our program whenever possible.”“Preference will be given to vendors that can document source of origin, and procure product from within the state.”Slide26
Targeting
Local through an Informal ProcurementSlide27
“Three Bids and a Buy”
Develop a Specification
Apples, US. No. 1, five 185 count boxes per week for Sept-DecSolicit Bids Contact vendors (by phone, fax, email, in-person or via mail) and provide them with specifications (or if calling, read same information to each vendor).Bid DocumentationWrite down each vendor’s bid and constraints; then file it.
Vendor
Art’s Apples
Olivia’s Orchard
Apple Crunch Inc.
Price/box
$40
$47
$37Slide28
“Three Bids and a Buy”
Develop a Specification
Apples, US. No. 1, five 185 count boxes per week for Sept-DecSolicit Bids Contact ONLY LOCAL vendors (by phone, fax, email, in-person or via mail); provide them w specifications (or if calling, read same information to each vendor).Bid DocumentationWrite down each vendor’s bid and constraints; then file it.
Vendor
Art’s Apples
Olivia’s Orchard
Apple Crunch Inc.
Price/box
$40
$47
$37Slide29
“Three Bids and a Buy”
Develop a Specification
McIntosh or Macoun apples, US. Fancy or No. 1, prefer five 185 count boxes per week but willing to consider other pack sizes for Sept-Dec.Solicit Bids Contact
ONLY LOCAL vendors (by phone, fax, email, in-person or via mail); provide them w specifications (or if calling, read same information to each vendor).
Bid
Documentation
Write down each vendor’s bid and
constraints; then file it.
Vendor
Art’s Apples
Olivia’s Orchard
Apple Crunch Inc.
Price/box
$40
$47
$37Slide30
Targeting
Local Foods in a Formal SolicitationSlide31
Consider requesting:A variety that is unique to the region
Product delivery within 24 or 48 hours of harvest
Use Product Specifications to Target a Local Item 1Slide32
Product Specification
Granny Smith,
US. Fancy, Five 185 count boxes per week for September - December
Example: Use Product SpecificationsSlide33
Example: Use Product Specifications
Product Specification
Granny Smith
or <insert a variety grown in your target region>
,
US. Fancy
or No. 1
,
Prefer
five 185 count boxes per week
but willing to consider other pack sizes
for September – December
Delivered within 48 hours of harvestSlide34
Remember that you must award to a vendor who is both responsive and responsible!All vendors must be able to provide the products you need to be considered responsive. Vendor requirements may include the ability to provide:
Farm visitsState, county, farm of origin labeling
Products grown on a certain size farmUse Additional Requirements to Determine Vendor Responsiveness 2Slide35
What can you ask for?
Particular varieties unique to the regionFreshness (e.g. Delivered within 48 hours)Specific size of farm
Harvest techniquesCrop diversityOrigin labelingAble to provide farm visits or class visitsSlide36
Other Things to Consider When Writing Solicitations to Target Local Products
Be flexibleDon’t include unnecessary requirements
Consider what a vendor new to the school food market might not knowCondition upon receipt of productFood safety needsSize uniformitySlide37
Not sure where to start? Put out an Requests for Information (RFI)
Survey the market to understand:Quantity availablePrice pointSeasonal availability
Willingness to work with schoolsWhether geographic preference is necessaryWho the producers are!Collaborate with surrounding districtsWork with a community partnerSlide38
Section Summary
Defining local is up to you!There are many sources of local foods- find which might work best for you (direct from farm, through distributor, DoD Fresh?)Ask for what you want, but be mindful of creating a fair and open playing field for bidders (not overly restrictive)
Cite local as a preference, not a requirementSlide39
NFSMI Procurement Training
NFSMI Guide: Procurement in the 21st Century
http://www.nfsmi.org/documentlibraryfiles/PDF/20130820034348.pdfOnline training courses:Procurement Basicshttp://www.nfsmi.org/Templates/TemplateDefault.aspx?qs=cElEPTEzNQLocal Procurement:http://www.nfsmi.org/ResourceOverview.aspx?ID=515 Slide40
More FNS Resources
Local Procurement Guide and Webinar Series:
http
://
www.fns.usda.gov/farmtoschool/procuring-local-foods
Procurement of Food Service Management Companies:
http://www.fns.usda.gov/sites/default/files/FSMCguidance-sfa.pdf
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Thank you! Questions?
Martine Cherry
martine.cherry@fns.usda.govDanielle Fleurydanielle.fleury@fns.usda.gov