slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Child Nutrition Program Purchasing Regulations and Processes Distance Education Workshop February 5, 2009 Wanda Shocke PowerPoint Presentation
Download Presentation
Child Nutrition Program Purchasing Regulations and Processes Distance Education Workshop February 5, 2009 Wanda Shocke

Loading in 2 Seconds...

play fullscreen
1 / 82

Child Nutrition Program Purchasing Regulations and Processes Distance Education Workshop February 5, 2009 Wanda Shocke - PowerPoint PPT Presentation


  • 102 Views
  • Uploaded on

Child Nutrition Program Purchasing Regulations and Processes Distance Education Workshop February 5, 2009 Wanda Shockey, MEd, RD, LD. Major Topics . State Regulations Federal Procurement Regulations – Newest! Conflict in Ethics Regulations Purchasing Cooperatives Contracts

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Child Nutrition Program Purchasing Regulations and Processes Distance Education Workshop February 5, 2009 Wanda Shocke' - aolani


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Child Nutrition Program Purchasing Regulations and ProcessesDistance Education WorkshopFebruary 5, 2009Wanda Shockey, MEd, RD, LD

major topics
Major Topics
  • State Regulations
  • Federal Procurement Regulations – Newest!
  • Conflict in Ethics Regulations
  • Purchasing Cooperatives
  • Contracts
  • Informal Purchases – Quotes
  • Formal Purchases – Bids
arkansas regulations ethics for child nutrition programs
Arkansas Regulations & Ethics for Child Nutrition Programs

Arkansas State Regulations Specific to Education Entities:

  • 6-21-301 Definitions
  • 6-21-304 Manner of Making Purchases
  • 6-21-603 Interest in Certain Contracts Unlawful- Exception
  • 6-21-601 School Officials Prohibited From Having Interest in Sales of School Supplies
  • 6-24-101- Act 1599 of 2001 Disclosure of Relationships with Vendors or Potential Vendors
arkansas code 6 21 301 definitions
Arkansas Code: 6-21-301 Definitions
  • (1) Commodities-all supplies, goods, material, equipment, services
  • (2) Open market purchases- purchases which do not require competitive bids
  • (3) Purchases- acquisition of commodities
  • (4)Purchases price- full sale or bid price
  • (5)Purchasingofficial-designated agent of the district authorized to contract for the district
arkansas code 6 21 304 manner of making purchases state requirements
Arkansas Code: 6-21-304 Manner of Making Purchases State Requirements
  • (a)(1) Bids (Formal) are required for purchases of $10,000 or more
  • (a)(2) Open (Informal) market purchases may be made if less than$10,000
  • (a)(3) Commodities (Purchased Goods) can NOT be split as a purchase to prevent required bidding
school districts
School Districts
  • For Formal Bidding, as a minimum, districts must follow state regulations ? or federal regulations ? or local regulations ?

State - $ 10,000

Federal - $ 100,000

Local District - $ 5,000 (Varies by individual district)

1995 Arkansas Attorney General’s Opinion SPECIFIC to SCHOOL FOOD SERVICE Requires formal bids with aggregate of $5,000 or more.

Which is MOST Strict $$$$$$$ ???

arkansas code 6 21 305 exemptions from bidding requirement
Arkansas Code: 6-21-305 Exemptions From Bidding Requirement
  • (a)(1)(A)Emergency (Requires Documentation)
  • (a)(1)(B) Superintendent must attach description of emergency to purchase order
  • (a)(2) Only available from the federal government
  • (a)(3) Utility services
  • (a)(4)Used equipment
  • (a)(5)Single source (Be careful to document justification)
  • (b) All exemptions require a written explanation attached to purchase order
arkansas code 6 21 601 school officials prohibited from having interest in sales of school supplies
Arkansas Code: 6-21-601 School Officials Prohibited From Having Interest in Sales of School Supplies
  • (a) Unlawful for anyone with authority over purchases in schools to have any interest in the sale of a commodity (Purchased Goods).
  • (b) Unlawful for person to receive a reward or pay for influencing the purchase of a commodity (Purchased Goods).

See Stronger Legislation and Rules for Act 1599 of 2001

slide10

Arkansas Code 6-21-601 School Officials Prohibited From Having Interest in Sales of School Supplies

  • (c-d) Unlawful for anyone with responsibility of purchasing to receive anything of monetary value or to share the reward with any other person with authority over purchases.

http://arkansased.org/rules/pdf/current/ade_209_ethical_guidelines_rules.pdf

(e) Anyone convicted shall be fined and shall be removed from office.

arkansas code 6 21 603 interest in certain contracts unlawful exception
Arkansas Code 6-21-603 Interest in Certain Contracts Unlawful- Exception
  • (a) Unlawful for board member to have interest in any purchase over $500.
  • (b) Shall not apply on purchases made using open competitive bid and let to the lowest bidder. (But now have Act 1599 !!!)
ade ethics rules and regulations
ADE Ethics Rules and Regulations
  • “RULES AND REGULATIONS GOVERNINGETHICAL GUIDELINES AND PROHIBITIONSFOR EDUCATIONAL ADMINISTRATORS, EMPLOYEES, BOARD MEMBERS AND OTHER PARTIES”
  • Ark. Code Ann. §§6-11-105, 6-24-101

http://arkansased.org/rules/rules_current.html

3 00 definitions
3.00 DEFINITIONS
  • 3.01 “Administrator” means
    • any superintendent,
    • assistant superintendent or his/her equivalent,
    • school district treasurer,
    • business manager, or
    • other individual responsible for entity-wide purchasing.

The determining factor for being considered an “administrator” for the purposes of these regulations and compliance with Act 1599 of 2001 is the actual or implied authority of an individual to make purchases on behalf of the entire organization. This definition excludes many building principals (whose purchasing authority is often limited to their own school), but could include athletic directors or others.

Classified employees serving in food services, business/accounting or other capacities may also be considered “administrators” under Act 1599 when they exercise autonomous system-wide purchasing authority.”

state ethic rules violate federal ethics
State Ethic Rules VIOLATE Federal Ethics
  • Arkansas Ethics Rules
  • 15.00 REGISTRATION, TRAVEL, CONVENTIONS AND SEMINARS
  • 15.01 Board members, administrators (food service) and employees of a public

educational entity are prohibited from receiving any payment or reimbursement from a vendor for any registration, travel, lodging, food, entertainment or other expenses not directly associated with an educational interest or business interest of the public educational entity.

VIOLATION OF FEDERAL REGULATIONS FOR ADMINISTRATORS INVOLVED IN PURCHASING FOR CHILD NUTRITION PROGRAMS.

  • 15.02 Board members, administrators and employees of a public educational entity are prohibited from receiving any trip or attending any convention or seminar which is paid for by a vendor when the purpose for the trip or attendance at the convention or seminar is not directly associated to an educational interest or business interest of the public educational entity.

VIOLATION OF FEDERAL REGULATIONS FOR ADMINISTRATORS INVOLVED IN PURCHASING FOR CHILD NUTRITION PROGRAMS.

why are these violations
Why are these violations?
  • Arkansas rules are stating vendors can pay for registration, travel, conventions and seminars if these are educationally related.
  • Federal Regulations:

7 CFR Part 3016.36 (b) (3) (iv) This regulation states: "…employees…will neither solicit nor accept gratuities, favors, or anything of monetary value from contractors, potential contractors, or parties….“

major rule
MAJOR Rule
  • The most restrictive regulations must be used when determining the procurement method to be used when federal funds will pay for the items to be procured.
  • For example: If the local school district policy is more restrictive than the state and federal regulations, all procurement with federal dollars must follow the local school district policy/regulation.
major rule1
MAJOR Rule
  • Open and Free Competition

Competitive Prices are Best for Child Nutrition Programs

  • Do NOT Restrict Competition via specifications, timelines or material changes after the bid period.
slide20

Child Nutrition Program Purchasing Regulations and ProcessesPart 2 – Federal Procurement Laws and Regulations

Distance Education WorkshopFebruary 5, 2009Wanda Shockey, MEd, RD, LD

federal procurement

Federal Procurement

Laws & Regulations

federal regulations ethics for child nutrition programs
Federal Regulations & Ethics for Child Nutrition Programs
  • 7 CFR Part 210 – School Lunches
  • 7 CFR Part 220 – School Breakfast
  • 7 CFR Part 3015 - Procurement
  • 7 CFR Part 3016 - Procurement
  • OMB CIRCULAR A-87
federal regulations apply to
Open and free competition

Prohibited practices

Written procedures

Award criteria

Available methods

Code of conduct

Affirmative contracting

Prohibited costing methods

Recordkeeping

Contract termination

Access to records

Contract administration

Certifications and clauses

Federal Regulations Apply to:
key points
KEY POINTS
  • 7 CFR Part 3015 & 3016
    • Available methods
    • Code of conduct
    • Affirmative contracting
    • Prohibited costing methods
    • Recordkeeping
    • Contract termination
    • Access to records
    • Contract administration
    • Certifications and clauses
key points1
KEY POINTS
  • Main Difference
  • Between 3015 & 3016
  • 7CFR 3016 has procurement:
  • Suspension & Debarment Regulations
differences in small purchase threshold
Differences in Small Purchase Threshold
  • Part 3015 Less than $10,000
  • Part 3016
  • Less than $100,000
    • Local public agencies/School Districts: Lower threshold of State, District or Federal Requirement
anti competitive practices
Anti-competitive Practices
  • Revised A-110 Provision: To eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, invitations for bid and/or requests for proposals shall be EXCLUDED from competing for such procurements
vendor or manufacturer cannot develop bid specifications
Vendor or ManufacturerCannot Develop Bid Specifications
  • 7 CFR Part 3016.60(b) prohibits awarding contracts to any entity that develops or drafts specifications, requirements, statements of work, invitations for bids, requests for proposals, contract terms and conditions or other procurement documents.
  • While schools have broad discretion in gathering information for use in connection with procurements, information from potential bidders must be appropriately modified to develop tailored specifications, otherwise these bidders must be excluded from competing for such procurements.
  • Any action which diminishes open and free competition seriously undermines the integrity of the procurement process and may subject the SFA to bid protests.
escalation de escalator clause
Escalation/De-escalator Clause
  • Provision in a contract for increasing or decreasing the contracted price for labor, raw food,material, etc., in step with the market prices or an agreed upon benchmark such as consumer price index (CPI).
  • Contract management responsibility of SFA/District REQUIRES monitoring and application of the de-escalation (price-reduction) clause as well as the escalator clause.
selection procedures
Selection Procedures

7 CFR Part 3016.36 (c) (3)(i)The request for proposal (RFP) or invitation to bid shall: "incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description shall not… contain features, which unduly restrict competition."

  • 7 CFR Part 3016.36 (c) (3) (ii)The RFP or invitation to bid shall: "Identify all requirements which offerors (vendors) must fulfill and all other factors to be used in evaluating bids or proposals."
protest procedures
Protest Procedures
  • Pursuant to 7 CFR 3016.36(b)(12), SFAs/Districts must have protest procedures in place to handle and resolve disputes relating to their procurements and must in all instances disclose information regarding a protest to their State agency.
code of conduct 7 cfr 3016
Code of Conduct – 7 CFR 3016
  • 7 CFR Part 3016.36 (b) (3) A School Food Authority (local school district) “will maintain a written code of conduct governing the performance of their (SFA) employees engaged in the award and administration of the contract. No employee …shall participate in selection or in the award or administration of a contract supported by Federal fundsif a conflict or interest, real or apparent would be involved.“
  • 7 CFR Part 3016.36 (b) (3) (iv) This regulation states: "…employees…will neither solicit nor accept gratuities, favors, or anything of monetary value from contractors, potential contractors, or parties….“
contract management
Contract Management

MATERIAL CHANGE TO

A BID AWARD OR CONTRACT

A material change can be thought of as a change

made to a contract after it has been awarded that

alters the terms and conditions of that contract

substantially enough, to the extent that had other

bidders known of these changes in advance, they

could have bid differently and more competitively.

access to contractor records
Access to Contractor Records
  • 7 CFR Parts 3016.36 (i) (10) "Access by the grantee (state agency), the Federal grantor agency (USDA), the Comptroller General of the United States, or any of their duly authorized representatives to any books, documents, papers, and records of the contractor which are directly pertinent to that specific contract for the purpose of making audit, examination, excerpts, and transcriptions.”
  • 7 CFR 3016.36 (i) (11)Regulations require “ retention of all required records for three years after … the final payments and all other pending matters are closed.”

Arkansas Law requires 5 years from final transaction!!

newest federal procurement changes
Newest Federal Procurement Changes

Revisions to Federal Procurement Regulations for Child Nutrition:

Formal Announcement by USDA 1/28/08

FINAL RULE effective November 30, 2007

Clarifications began July 2008 and are continuing:

major changes in final procurement rule
Major Changes in Final Procurement Rule:
  • The rule explicitly:
  • (1) limits an SFA’s use of nonprofit school food service account funds to costs resulting from proper procurements and contracts; (Violations of Procurement Regulations --- can not pay for purchases out of school nutrition programs)
  • (2) requiresthat allowable costs paid from the nonprofit school food service account be net of all discounts, rebates, and applicable credits; and
  • (3) requires State agencies to review and approve SFA procurements of food service management companies’ services in advance of contract execution.
state agency responsibilities
State Agency Responsibilities
  • New Regulations 7 CFR 210. 21 Subpart E. (c) (1) More Clearly Define the State Agency Responsibilities to:
    • ADE, CNU may impose a pre-issuance review on a school food authority (SFA) proposed procurement.
    • The SFA must make available, upon request by the state agency, its procurement documents, including but not limited to solicitation documents, specifications, evaluation criteria, procurement procedures, proposed contracts, and contract terms.
    • SFA shall comply with State Agency requests for changes to procurement procedures and solicitation and contract documents to ensure that, to the State agency’s satisfaction, such procedures and documents reflect applicable procurement and contract requirements and the requirements of this part.
state agency responsibilities1
State Agency Responsibilities

7 CFR 210. 21 Subpart E. (c) (2) and (3):

(2) Prototype solicitation documents and contracts. The SFA must obtain state agency’s prior approval for any change made to prototype solicitation or contract documents before issuingthe revised solicitation documents or execution of the revised contract.

(3) Prohibited Expenditures. No expenditure may be made from the nonprofit school food service account for any cost resulting from a procurement failing to meet the requirements of this part.

federal references on cnu website
Federal References on CNU Website:
  • January 23, 2009 USDA  Economic Price Adjustments in Vendor Contracts - SP-10-2009  http://www.fns.usda.gov/cnd/Governance/Policy-Memos/2009/SP_10-2009_os.pdf

2. January 15, 2009 USDA Competitive Procurement and Private Grants for School Food Programhttp://www.fns.usda.gov/cnd/Governance/Policy-Memos/2009/SP_09-2009_os.pdf

  • January 9, 2009 Procurement Questions http://www.fns.usda.gov/cnd/Governance/Policy-Memos/2009/SP_08-2009_os.pdf Special Note: Southwest Region Office Released 1/16/09 as 2009-SP-11

4. July 9, 2008 USDA Applying Geographic Preferences in Procurements for the Child Nutrition Programs

http://www.fns.usda.gov/cnd/Governance/Policy-Memos/2008/SP_30-2008.pdf

  • July 1, 2008 USDA CN Labeling Process and Applicationhttp://www.fns.usda.gov/cnd/CNlabeling/default.htm
  • January 28, 2008( Effective Nov. 30, 2007)Final Rule, Procurement Requirements for the National School Lunch, School Breakfast and Special Milk Programs

http://www.fns.usda.gov/cnd/Governance/Policy-Memos/2008/SP_09-2008-OS.pdf

past federal rule for non geographic preference
Past Federal Rule for Non-geographic Preference
  • 7 CFR Part 3016.36 (c) (2)A School Food Authority (local school district) “will conduct procurements in a manner that prohibits the use of statutorily or administratively imposed in-State or local geographical preferences in the evaluation of bids or proposals…”

Slightly changed by US Farm Bill 2008

farm bill change
Farm Bill Change:

FNS guidance (USDA Memo SP-08-2009, Procurement Questions, See Answer to Question #2:

  • New flexibility for application of “Geographic Preference may only be applied to the procurement of unprocessed agricultural products which are locally grown and locally raised, and that have not beencooked, seasoned, frozen, canned, or combined with any other products.”
joint explanatory statement in farm bill to support local farmers
Joint Explanatory Statement in Farm Bill to Support Local Farmers
  • Farm Bill legislation states “that de minimis handling and preparation might be necessary to present an agricultural product to a school food authority in a useable form, such as washing vegetables, bagging greens, butchering livestock and poultry, pasteurizing milk, and putting eggs in a carton.”
farm bill change to geographic preference federal law takes precedent over state law
Farm Bill Change to Geographic Preference Federal Law Takes Precedent over State Law
  • 2008 Farm Bill states that school districts can:
    • Elect to apply geographic preference for ONLY locally produced farm products that are minimally processed. (Local District Option)
    • Define the term “locally produced” at district discretion, but cannot limit competition by choice of definition. (Local Option)
    • Not apply preference to locally produced foods that are chopped, cut, diced or sliced products.

Reference: USDA Memo 2009-SP-11(January 9, 2009)

procurement fees
Procurement Fees
  • “Any fee (including a procurement fee) that is directly tied to the amount of discounts, rebates, and applicable credits to be returned to the SFA is an unallowable non-profit school food service account cost ….”
  • Source: USDA Memo SP-15-2008
procurement fees cont
Procurement Fees – cont…
  • “A fee structured in this way is clearly intended to return some or all of the discounts, rebates, and applicable credits to the company with whom the SFA has contracted for services rather than to ensure that they accrue to the non-profit school food service account.”
  • This is true whether the fee is set forth in the solicitation/contract or not.
  • Source: USDA Memo SP-15-2008
fixed procurement fees
Fixed Procurement Fees
  • The procurement fee could be a separate fee or part of another contract fee, as long as it remains fixed.
procurement fees tracking applicable discounts rebates
Procurement FeesTracking Applicable discounts, rebates
  • 12) Question: What if the contract contains the language for the return of rebates, discounts, and applicable credits, but does NOT contain a provision including the methodology for tracking how the invoices will identify these rebates?
  • USDA ANSWER: The rule requires contractors to provide sufficient information to permit the school food authority to identify allowable and unallowable costs and the amount of all such discounts, rebates and credits on invoices and bills presented for payment to the SFA. It is not likely that this addition to the contract would create a material change or alter the financial structure. This may be accomplished by creating an amendment to the contract which accounts for the tracking of these rebates. However, State approval should be sought.

January 9, 2009 Procurement Questions http://www.fns.usda.gov/cnd/Governance/Policy-Memos/2009/SP_08-2009_os.pdf

Special Note: Southwest Region Office Released 1/16/09 as 2009-SP-11

cn label change
CN LABEL CHANGE
  • Declaration Statements
  • After July 1, 2008, all new CN label applications are required to contain CN crediting statements that reflect the full contribution of the food based component provided by the formulation.
  • Example: A pizza formula with crust (made with creditable grain), tomato paste and cheese must declare the maximum allowable credit for the meat/meat alternate, vegetable, and bread alternate components.
  • This requirement means that the CN statement must declare all contributions of a given formula to the fullest extent possible. If a formulation provides 1/8 cup of vegetable from tomato paste, it must be declared in the CN statement. Likewise, if a pizza crust contributes five servings of bread alternate, then the CN statement must declare all five servings.
cooperative purchasing benefits
COOPERATIVE PURCHASING BENEFITS

Higher Quality Products

Lower Prices

Reduced Administrative Costs

  • Improved Nutritional Benefits
cooperative purchasing major concern
COOPERATIVE PURCHASING MAJOR CONCERN
  • Failure to properly procure goods
    • Causes:
      • Pre-procurement process breakdowns
      • Code of conduct violations
cooperative purchasing
Cooperative Purchasing
  • Question: Can an SFA purchase directly from a Buying Organization or Group?
  • USDA Answer:

LEA/SFA’s (school districts) are not prohibited from purchasing from a buying organization or group, as long as they comply with the government-wide procurement rules at 7 CFR 3016.

However, an SFA cannot purchase directly from a buying organization without considering other sources. Depending on whether the procurement is informal or formal, the appropriate competition must take place to ensure that the SFA is obtaining the lowest responsive bid or offer.

Joining or procuring directly from a buying service without opening up competition to other like sources does not ensure that the lowest responsive bid or offer has been obtained.

The prices of a buying group or organization could be factored in and assessed against other bidders or offerors.

Source:January 9, 2009 Procurement Questions http://www.fns.usda.gov/cnd/Governance/Policy-Memos/2009/SP_08-2009_os.pdf

Special Note: Southwest Region Office Released 1/16/09 as 2009-SP-11

cooperative purchasing service provider issues
COOPERATIVE PURCHASINGSERVICE PROVIDER ISSUES
  • Problems with competitive procurement requirements
    • Noncompetitive purchases from suppliers with pre-existing relationships
    • Purchases beyond scope of contract
distance education workshop february 5 2009 wanda shockey med rd ld

Child Nutrition Program Purchasing Regulations and ProcessesPart 3 – Local District Implementation of Arkansas and Federal Laws and Regulations

Distance Education WorkshopFebruary 5, 2009Wanda Shockey, MEd, RD, LD

local district implementation

Local District Implementation

Application of State and Federal

Procurement Laws & Regulations

slide62
WHY???
  • Menus Drive the Program
  • Procurement is One of the Most Important Parts of Management
  • Quality Meals For Students
district child nutrition procurement plan
District Child Nutrition Procurement Plan
  • Procurement Plan submitted as Attachment A-1 of the
    • Original Base Year Agreement (2006-07).
  • Written changes to this plan are to be submitted with Annual Renewal Agreement and at any time during the year to keep it current with district policies, changes in state and federal regulations, etc.
written procurement required procedure components
Written Procurement Required Procedure Components:
  • List district authorized purchasing agent (s) for CN program (name and title).
  • Describe district procedures for “formal bids” or “request for proposals” (RFP) at or above the federal $100,000 threshold.
  • Describe district procedures used for purchases that cost between $10,000 to $100,000.
  • Describe the local district policy and procedures used for threshold set by the school board for purchases of less than $10,000.
  • Submit the written code of conduct that will be followed by all personnel involved in the child nutrition program procurement processes.
  • The above written components are the MINIMUM!!! For an acceptable Procurement Plan.
procurement resource
Procurement Resource
  • FIRST CHOICE: A PURCHASING SYSTEMS MANUAL FOR SCHOOL FOOD SERVICE, 2ND EDITION
  • Reference manual resource to guide procurement procedures. Includes:
  • steps in purchasing,
  • regulations,
  • market place environment,
  • product movement,
  • bid units,
  • specifications,
  • brand approval,
  • obtaining prices,
  • monitoring cost,
  • product testing,
  • receiving and storage, and
  • purchasing cooperatives.
  • Revised 2002. #EX59-02
first choice a purchasing systems manual for school food service 2nd edition
First Choice: A Purchasing Systems Manual for School Food Service, 2nd Edition

Chapter 1: Step by Step

Chapter 2: The Regulatory Environment

Chapter 3: The Market Place Environment

Chapter 4: The Product Movement Process

Chapter 5: Allocating Time Resource to Product Categories

Chapter 6: Determining Bid Units

Chapter 7: Developing Product Specifications

Chapter 8: Brand Approval

Chapter 9: Getting Ready to Obtain Prices

Chapter 10: The Purchase System

Chapter 11: Monitoring Cost

Chapter 12: Laboratory Testing of Products

Chapter 13: Receiving and Storage

Chapter 14: Purchasing Cooperatives

http://www.olemiss.edu/depts/nfsmi/Information/firstchoice/fcindex.html

chapter 1 step by step
Chapter 1: Step by Step
  • The steps in the purchasing function are as follows:
    • 1. Plan menus.
    • 2. Determine products necessary to produce menus.
    • 3. Estimate quantities needed.
    • 4. Develop acquisition/critical path plan.
    • 5. Develop quality standards.
    • 6. Determine product movement policies.
    • 7. Document purchasing process.
chapter 1 step by step continued
Chapter 1: Step by Step continued
  • 8. Analyze market and evaluate vendors.
  • 9. Determine the purchasing system.
  • 10. Issue request for prices.
  • 11. Evaluate responses
  • 12. Make vendor selection.
  • 13. Place orders.
  • 14. Receive product.
  • 15. Store products
  • 16. Prepare meals
appendices
Appendices
  • Appendix 1: Review of Potential Distributor VendorAppendix 2: School District Purchasing ProfileAppendix 3: Market Area Analysis WorksheetAppendix 4: Self Assessment of Warehouse costAppendix 5: Par Stocks FormAppendix 6: Order Calendar FormAppendix 7: Sample Procurement PlanAppendix 8: Foods with Standards of IdentityAppendix 9: Reading a Food LabelAppendix 10: Classifying Food Products by Brand Approval TypeAppendix 11: Corporate/Cooperative Distributor Buying GroupsAppendix 12: Sample Letter for Scheduling Pre-Bid ConferenceAppendix 13: Pre-Bid Conference Record FormAppendix 14: Product Comparison FormAppendix 15: Sample Protocol for Screening New Products or BrandsAppendix 16: Standard Contract LanguageAppendix 17: Active School Purchasing CooperativesAppendix 18: Nutrition LabelAppendix 19: Critical Path FormAppendix 20: Evaluating Preparation Instructions FormAppendix 21: Internet Reference ListAppendix 22: Warehouse Receiving Temperature ReportAppendix 23: Warehouse Receiving ReportAppendix 24: Food Safety Audit of Manufacturer
appendix 16 standard contract language page 243
APPENDIX 16 Standard contract language page 243

“Every school district organizes its requests for prices differently. The variances in state laws and school districts precludes the inclusion of bid documents in a manual of this type. All documents used to solicit prices should be reviewed by the legal counsel of the purchasing entity.”

The language in the next two slides is a sample of this Appendix. Appendix 16 is designed to assist school districts in developing their documents and should be viewed as a check list with which the school district can make sure their documents address the subject.

appendix 16 standard contract language page 2431
APPENDIX 16 Standard contract language page 243
  • Addenda: If clarification of the specifications/instructions is required the request shall be made in writing not later than seven working days prior to the time and date set for the bid opening. The school district will respond to the request in the form of an addendum issued to all potential bidders. No addenda will be issued within five working days of the date and time of bid opening. Should a question arise which requires clarification during this time period the date and time of bid opening will be

delayed to allow issuing an addendum.

appendix 16 standard contract language page 2432
APPENDIX 16 Standard contract language page 243
  • Access to pricing information:Price files may be examined by bidders during normal working hours and bidders may have access to the files only after the award has been made. No files will be removed from the school district offices and employees will not make copies nor will copy machines, facsimile machines or other such equipment be made available to the public for the purpose of copying bid

documents. Written notices of award will be mailed to all bidders.

slide73

APPENDIX 16

Standard contract language

page 243 continued

Advertising and promotion of contract: The contractor shall not advertise or publish information for commercial benefit concerning this contract without the prior written approval of the school district purchasing officer.

Alternate offers: Alternate offers will not be considered unless specifically requested in the specifications and instructions.

Application: It is understood and agreed to by the vendor that this contract is entered into solely for the convenience and for any economical advantage offered to the school district. All purchases made by the school district shall be purchased from the distributor receiving the award. School district employees or other organizations shall not be allowed to purchase under the terms of this contract.

first choice procurement seminar march 25 27 2009
First Choice Procurement SeminarMarch 25 - 27, 2009

The seminar is based on First Choice: A Purchasing Systems

Manual for School Food Service, 2nd Edition, a

comprehensive resource designed to assist child nutrition

program professionals with procurement decisions.

Who Should Attend?

Child nutrition program professionals, school administrators and

Business managers, and others interested in school food

procurement are encouraged to attend.

Class size is limited to 30 participants.

Instructors

Charles Kirby, a child nutrition procurement specialist, is a former director of the USDA/FNS Southeast Regional Office and a former state director of child nutrition programs.

Tommy Ramey is also a former state director of child nutrition programs. He has extensive experience in administering programs, providing technical assistance, and conducting training.

slide75

CHOICE PLUS FOOD SAFETY SUPPLEMENT

Supplement to Choice Plus: A Reference Guide for Foods and Ingredients

CHOICE PLUS: A REFERENCE GUIDE FOR FOODS AND INGREDIENTS

#FCS-297 WWW only

back to school basics
Back to School Basics
  • Three basic decisions must be made for all purchases. The decisions are:
  • The appropriate purchase method
  • The pricing mechanism
  • The number of vendors required to perform the service or deliver the product
  • Three basic purchase procedures are
  • Small purchase procedure (Price Quotations)
  • Sealed bids (Formal Specification Bids)
  • Request for proposals (Formal Proposal Criteria for Response by Vendor)
slide78

FFVP Quote Sheet

Sample Quotation Sheet - Small Purchase

Which Product Should You Purchase??

Fresh Fruit and Vegetable Program Quote Sheet

basics of procurement
BASICS Of Procurement
  • Two basic methods for selecting the number of vendors are:

1. Line item awards - the price offered on each product is considered independently.

Yields several vendors

2. Bottom-line awards, sometimes called all-or-nothing awards. (The prices offered on products are considered as a group)

Yields generally one Bread Vendor, one Milk Vendor, one Produce Vendor.

basics of money
Basics of Money
  • Three basic pricing types are:
  • firm price for a specified period of time,

2. reimbursable cost plus a fixed fee for service with petition for escalation/de-escalation

based on third-party market reports, and

3. fixed fee for storage, delivery, and cost of money added to the cost of product established by third-party market reports