Definition -- multi-step process for obtaining the most responsive goods and services at the

lowest possible price.

1. Planning2. Writing Specs3. Advertising4. Awarding The Contract5. Managing The Contract

CONGRESSOMBUSDA/FNSKDESFA

Program Regulations for Procurement:NSLP: 7 CFR 210.21 SBP: 7 CFR 220.16Special Milk Program: 7 CFR Part 215Food Distribution: 7 CFR Part 250

Uniform Administrative Requirements for Procurement:State/local governments: 7 CFR 3016Non-profits: 7 CFR 3019

Government Wide Federal RegulationsOMB Circulars A-102, A-110, A-87A-122

State and Local Laws, Regulations, and Policies that are not in conflict with Federal Requirements.

Public School Food Authorities (SFAs) may use their own procurement procedures which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal laws and standards identified in 7 CFR Part 3016.36 and Part 3016.60.

SFAs must compare their state and local requirements against the federal requirements and follow the more restrictive!

Non Profits are directed to use your normal procurement procedures if they are at least as stringent as the Federal requirements. If your own are not as stringent as Federal, you must follow the Federal requirements. Please refer to 7 CFR Part 3019 for more guidance on what is allowable.

Requirement 7 CFR Part 3016 – (Public)

7 CFR Part 3019 – (Non-Profit)

Competition in all procurements 3016.36(c) 3019.43

Award only to responsible & responsive vendors

3016.36 (b) (8) 3019.44(d)

Written selection procedures 3016.36(c)(3) 3019.44(a)(3)

Code of Conduct 3016.36(b)(3) 3019.42Recordkeeping 3016.36(b)(9) 3019.46Contract Administration System 3016.36(b)(2) 3019.41

Prohibition on geographic preference, unless specifically permitted by Federal law (such as 2008 Farm Bill)

3016.60 and 3016.36(c)(2)

Not addressed

*Federal Requirements – Define the minimum requirements.

*State Requirements -- KRS 45A.100*Local Requirements – KRS 45A.385*Program Specific Requirements

National School Lunch Program – 7 CFR Part 210 – Includes Buy American Provision

Special Milk Program – 7 CFR Part 215School Breakfast Program – 7 CFR Part 220Food Distribution – 7 CFR Part 250

7 CFR Part 210 and 220ALL funds received by the non profit school

food account must be used to obtain food and other goods and services for use in the Child Nutrition Program (CNP).

--Purchase food, supplies, equipment required for meal prep and service;

--Purchase prepared meals from vendors;--Pay FSMC to operate their food service;--Pay for labor and operational costs;--Pay indirect costs

The goal of ALL Federal procurements

because it leads to higher quality

goods at a lower cost!

COMPETITION!

Full and open competition means that all suppliers are on a level playing field and have the same opportunity to compete.

Procurement procedures must not unduly restrict or eliminate competition.

Cost of products and services!

Quality of products and services!

The procurement process cannot be both self serving AND effective!

SFAs must make awards only to those contractors:

•who are "responsive" because their product or service meets the SFA's specifications, and

•who are "responsible" because they can and will successfully fulfill the terms and conditions of the proposed procurement.

“Transparency" means that everything done by the SFA must be:

Clear, Above-board, and Out in the open

•Understand and communicate, •Seek as many respondents as you can,•Ensure purchases are necessary, •Use the procurement process,•Write clear evaluation criteria, •Develop a good solicitation,•Publicize the solicitation, •Allow time for vendors to respond, •Ensure transparency, and •Document the process.

PoliciesFoster CompetitionRequire RationaleEstablish Written Selection ProceduresAward to Responsive and Responsible vendors Fully document actionsMaintain DocumentationContract Admin SystemBid Protest Procedures

ProceduresFollow Program Regs & RequirementsConsistently Followed ProceduresFairly Conducted ProcurementProcured Items Meet the NeedsCode of Conduct

Unreasonable RequirementsIncorrect application of Geographic PreferenceLimiting the response time of a solicitationSplit purchasing.Awarding a contract without advertisingAwarding a contract on the basis of only one of the evaluation criteriaGetting a cost quote from only one vendor

Not providing the same information to all vendorsFailing to comply with applicable state or local rulesReleasing the contents of a bid before the public openingUsing outdated pre-qualified vendor lists.Using vendor listings that do not include all potential vendorsAllowing changes AFTER a bid is awarded that could have affected the outcome of the award had the other vendors had the opportunity to respond to the modified provision.

Allowing a potential vendor to draft upcoming procurement specifications and bid on the solicitation.Using the school food service account to pay for expenses that result from improper planning and procurement process.

Get Ready, Solicit, Award and Manage

1. Plan – know what’s needed and when. Know approximately how much it’s going to cost.

2. Solicit – Provide detailed specifications and use the appropriate procurement method. Clearly describe the vendor delivery expectations and be sure to incorporate a little flexibility.

3. Award – All awards must go to a vendor that is both responsive and responsible.

4. Manage – Contract Administration -- Right quantity, on time, to the right location, meets quality specs, meets substitution policy, etc.

1. Small Purchase2. Competitive Sealed Bid3. Competitive Negotiation4. Non Competitive

Negotiation

Federal regulations set forth that a procurement contract under $100,000 in value may be awarded using informal methods.

States or localities may set a lower small purchase threshold, thereby imposing more formal procedures.

Kentucky Small Purchase Threshold is $20,000 – Must be used at a minimum!

Informal procurements must maximize full and open competition.

SFAs should prepare a solicitation document/Request for Quote that contains a complete description of what’s required, date to be provided, other pertinent conditions.

Recommend at least three sources be contacted who are eligible, able, and willing to provide product orservice .

The solicitation document and award information must be documented whether written or verbal.

SFAs may not intentionally split purchases to fall below the small purchase threshold and avoid formal procurement methods!

Used when the value of purchase exceeds applicable Federal, State, or local threshold for small purchases.

More rigorous and prescriptive. Methods Are:Competitive Sealed BiddingCompetitive Negotiation Non Competitive Negotiation

Develop a realistic purchase description.

Identify vendors willing and able to compete.

Results in a firm-fixed contract. The selection of the vendor must be based on the response to the specifications and price.

1. 1. Develop bid specifications2. MUST be advertised publically3. 2. Bids MUST be solicited from adequate

number of vendors4. 3. Invitation for Bid MUST clearly define items

or services required along with purchasing conditions.

5. 4. Bids MUST be opened publically as stated in IFB.

6. 5. Firm-Fixed contract award MUST be made by written notice to responsible bidder.

7. 6. Method and factors of award MUST be clearly described and documented, i.e., lowest bid.

Cannot provide a specific description up front.

Advertise to find vendors willing and able to compete.

Identify evaluation criteria and how it is weighted.

Evaluation TeamContract awarded to highest

scoring proposal.Should have process

approved by SA.

Used ONLY after all other procurement methods are determined to be unsuccessful and approved

by the SA.

1. Only 1 Vendor Capable of Providing Itemor service.

2. Public Emergency Doesn’t Permit Timely Competition

3. Competition Lacking

MUST BE JUSTIFIED IN WRITING!

USDA/FNS Reviews KDE through Management Evaluations -- 7 CFR Part 210.29

KDE reviews SFAs through CREs – 7 CFR 210.18 and 7 CFR 210.19

Deanna.Tackett@education.ky.gov