AMS Commodity Procurement Programs
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1 1 AMS Programs 2 Your Presenter: Sara Hernandez Specialist and Outreach Coordinator USDA (AMS) (CPS) Direct: CPS Main: Sara.Hernandez@ams.usda.gov 1
2 3 Topics: Overview: USDA Activities Opportunities: Current USDA Foods Opportunities: New USDA Foods AMS s: Solicitations and Awards Small Business Participation Ready, Set, Go: Steps to Becoming an Approved Vendor and Submitting an Offer Resources: Key CPS Contacts and AMS Website Question and Answer 4 2
3 5 Overview: Offices (AMS) = meat, poultry, fish, eggs, fruits, vegetables, nuts Entitlement Purchases Recipient Agency Demand AMS Purchase Surplus Removal Purchases aka Bonus Industry Request Analysis Secretary Approval Recipient Demand AMS Purchase Farm Agency (FSA) = grains, oils, dairy, flour (Price Support Commodities) Resource: Overview: Recipient Programs TEFAP 27% CSFP 8% FDPIR 3% Disasters<1% Child Nutrition Programs 62% Resource: Learn more about FNS Food Distribution Programs at FY12 Total Purchases For USDA Food and Nutrition (FNS) Food Distribution Programs Program USDA Foods *Child Nutrition Programs $1,256,545,003 The Emergency Food Assistance Program (TEFAP) $543,901,223 Supplemental Feeding Program (CSFP) $157,547,443 Food Distribution Programs on Indian Reservations (FDPIR) $56,209,016 Disaster Assistance $920,057 TOTAL $2,015,122,742 *Includes National School Lunch and National School Breakfast programs. 3
4 7 Overview: Recipient Programs National School Lunch and School Breakfast Programs: 32 million children served every school day USDA Foods account for 15-20% of the food served under NSLP The rest is procured through contracts at the State, regional, or local level Resource: School Nutrition Association (SNA) Opportunities: Current USDA Foods 8 USDA Purchased almost $2 bil. (2 bil. pounds) of domestic commodities in FY12 Includes AMS Purchases of: About $530 mil. (approx. 1 bil. pounds) in Fresh, Frozen, Processed Fruits, Vegetables, Beans, Nuts Of which about $90 mil. (approx. 114 mil. pounds) was frozen fruit, frozen vegetables, and frozen orange juice. Resource: Purchase Summary Report on AMS website: 4
5 9 Opportunities: Current USDA Foods 100% Domestically Produced and Processed Purchase Schedule Purchase Year = March March purchases ( School Year = July June or longer, varies- deliveries) ( Fiscal Year = Oct. Sept.- funding) Annual Purchases = frozen fruit and vegetables purchased once a year, in the spring. Periodic Purchases = biannually or quarterly, sometimes more often Resource: A Fruit and Veg Purchase Schedule for will be posted on the AMS website VERY SOON 10 Opportunities: Annual Purchases SOLICITATION was Issued Mar. 15- Bids are Due Apr. 5 MATERIAL DESCRIPTION 1 COMPETITION 2 SOLICIT/ AWARD DELIVERIES PEACHES FREESTONE SLICES FRZ CTN-12/2 LB Full and Open RFP /FFP-IDIQ Sep 13 Sep 14 PEACHES FREESTONE SLICES FRZ CTN-20 LB 8(a) 15% RFP /FFP-IDIQ Sep 13 Sep 14 PEACH FREESTONE DICED FRZ CUP-96/4.4 OZ SB 25%; 8(a) 15% RFP /FFP-IDIQ Sep 13 Sep 14 STRAWBERRY FRZ CTN-30 LB 8(a) 15% RFP /FFP-IDIQ Jul 13 Sep 14 STRAWBERRY FRZ CUP-96/4.5 OZ 8(a) 15% RFP /FFP-IDIQ Jul 13 Sep 14 STRAWBERRY SLICES FRZ CTN-30 LB 8(a) 15% RFP /FFP-IDIQ Jul 13 Sep 14 APRICOT FRZ CTN-40 LB Full and Open RFP /FFP-IDIQ Aug 13 Sep 14 APRICOT FRZ CUP-96/4.5 OZ Full and Open RFP /FFP-IDIQ Aug 13 Sep 14 APRICOTS SLICES FRZ BOX-20 LB Full and Open RFP /FFP-IDIQ Aug 13 Sep 14 1 Full and Open = No Small Business Set-Aside; SB = Small Business; 8(a) = SBA Small Business Development Program 2 RFP = Request for Proposals; FFP = Firm Fixed Price, IDIQ = Indefinite Delivery, Indefinite Quantity 5
6 11 Opportunities: Annual Purchases SOLICITATION TO BE ISSUED VERY SOON MATERIAL DESCRIPTION 1 COMPETITION 2 SOLICIT/ AWARD DELIVERIES CORN FRZ CTN-30 LB Full and Open RFP /FFP-IDIQ Jul 13 Sep 14 PEAS GREEN FRZ CTN-30 LB Full and Open RFP /FFP-IDIQ Jul 13 Sep 14 BEANS GREEN FRZ CTN-30 LB Full and Open RFP /FFP-IDIQ Jul 13 Sep 14 CARROTS FRZ CTN-30 LB Full and Open RFP /FFP-IDIQ Jul 13 Sep 14 BROCCOLI FRZ PKG-6/5 LB Full and Open RFP /FFP-IDIQ Jul 13 Sep 14 1 Full and Open = No Small Business Set-Aside; SB = Small Business; 8(a) = SBA Small Business Development Program 2 RFP = Request for Proposals; FFP = Firm Fixed Price, IDIQ = Indefinite Delivery, Indefinite Quantity 12 Opportunities: Annual Purchases SOLICITATION IN SPRING- SOON MATERIAL DESCRIPTION 1 COMPETITION 2 SOLICIT/ AWARD DELIVERIES PEACH FREESTONEDICED FRZ CUP-96/4.4 OZ KOSHER Full and Open IFB/FFP Sep 13 Sep 14 BEANS GREEN FRZ CTN-30 LB KOSHER Full and Open IFB/FFP Jul 13 Sep 14 CARROTS FRZ CTN-30 LB KOSHER Full and Open IFB/FFP Jul 13 Sep 14 PEAS GREEN FRZ CTN-30 LB KOSHER Full and Open IFB/FFP Jul 13 Sep 14 1 Full and Open = No Small Business Set-Aside; SB = Small Business; 8(a) = SBA Small Business Development Program 2 IFB = Invitation for Bid; FFP = Firm Fixed Price, DDDQ = Definite Delivery, Definite Quantity 6
7 13 Opportunities: Periodic Purchases SOLICITATIONS START IN EARLY SUMMER MATERIAL DESCRIPTION 1 COMPETITION 2 SOLICIT/ AWARD DELIVERIES APPLE SLICES FRZ CTN-30 LB SB 100%; 8(a) 15% IFB/FFP-DDDQ Oct 13 Sep 14 BLUEBERRY CULTIVATED FRZ CTN-30 LB SB 100% IFB/FFP-DDDQ Oct 13 Sep 14 BLUEBERRY WILD FRZ CTN-30 LB SB 100% IFB/FFP-DDDQ Oct 13 Sep 14 BLUEBERRY WILD FRZ CTN-8/3 LB Full and Open IFB/FFP-DDDQ Oct 13 Sep 14 CHERRIES FRZ IQF CTN-40 LB SB 100% IFB/FFP-DDDQ Oct 13 Sep 14 CHERRIES RED TART PITTED FRZ CTN-30 LB SB 100% IFB/FFP-DDDQ Oct 13 Sep 14 ORANGE JUICE CONC FRZ CAN-12/32 OZ SB 30%; 8(a) 15% IFB/FFP-DDDQ Nov 13 May 14 ORANGE JUICE CONC FRZ CAN-12/32 OZ KOSHER Full and Open IFB/FFP-DDDQ Nov 13 May 14 1 Full and Open = No Small Business Set-Aside; SB = Small Business; 8(a) = SBA Small Business Development Program 2 IFB = Invitation for Bid; FFP = Firm Fixed Price, DDDQ = Definite Delivery, Definite Quantity 14 Opportunities: Periodic Purchases MATERIAL DESCRIPTION POTATOES ROUNDS FRZ PKG-6/5 LB POTATOES WEDGE FAT FREE FRZ PKG-6/5 LB POTATOES WEDGE FRZ PKG-6/5 LB SWEET POTATOES MASHED FRZ PKG-6/5 LB SOLICITATIONS START IN SUMMER SWEET POTATOES RANDOM CUT FRZ PKG-6/5 LB 1 COMPETITION Full and Open Full and Open Full and Open Full and Open Full and Open 2 SOLICIT/ AWARD IFB/FFP- DDDQ IFB/FFP- DDDQ IFB/FFP- DDDQ IFB/FFP- DDDQ IFB/FFP- DDDQ DELIVERIES Oct 13 Sep 14 Oct 13 Sep 14 Oct 13 Sep 14 Oct 13 Sep 14 Oct 13 Sep 14 1 Full and Open = No Small Business Set-Aside; SB = Small Business; 8(a) = SBA Small Business Development Program 2 IFB = Invitation for Bid; FFP = Firm Fixed Price, DDDQ = Definite Delivery, Definite Quantity 7
8 15 Opportunities: New USDA Foods New Child Nutrition Meal Pattern Requirements Vegetables : ¾ - 1 cup for lunch Want Variety: Red/Orange, Dark Green, Legumes, Starchy Veg, Added Broccoli last year Investigating FRZ Chopped Spinach (20 lb., 12/2 or 12/2.5lb.) Red/Orange veg-? Want smaller pack sizes: 12/2 lb. or 12/2.5 lb. packs for green beans, carrots, peas, corn? 16 Opportunities: New USDA Foods Fruit: ½- 1 cup fruit for lunch; 1 cup for breakfast Roadblock for Future Frozen Fruit Purchases? CN Final Rule (1/26/12) frozen fruit must be packed without added sugar USDA s strawberries, peaches, and apricots. We need a solution or demand may plummet for these USDA Foods starting next year 8
9 17 Opportunities: New USDA Foods Resource: Contact AMS F&V Programs or AMS CPS if you have information on new fruit and veg. products USDA might look at purchasing: Ron Ulibarri, AMS Operations Branch Chief Christopher Purdy, AMS Fruit and Vegetable Programs Business Development AMS s: Solicitations and Awards 18 9
10 19 Solicitation: Invitation for Bid (IFB) 2 SOLICIT/ AWARD IFB/FFP- DDDQ IFB/FFP- DDDQ IFB/FFP- DDDQ IFB/FFP- DDDQ IFB/FFP- DDDQ Invitation for Bids (IFB)- Most commonly used for periodic purchases (monthly, quarterly) Offers are evaluated and Awards made on a Lowest-Price, Technically-Acceptable basis: Approved Vendors = technically acceptable; so basically award is based on lowest price offer received. Contract(s) are Firm, Fixed Price (FFP = no price change after award) for Definite Deliveries and Definite Quantities (DDDQ) Solicitation Offers Due Award = 3-4 weeks 20 Solicitation: Request for Proposals (RFP) 2 SOLICIT/ AWARD RFP /FFP-IDIQ RFP /FFP-IDIQ RFP /FFP-IDIQ RFP /FFP-IDIQ RFP /FFP-IDIQ Request for Proposals/RFP- Suitable for when USDA does not know exactly when, where, or how much is needed: i.e., when forecasting orders Proposals are evaluated based on a TRADEOFF process of factors, which may include: Price (not always the most important factor) Contracts types vary Typically Firm-Fixed Price (FFP), and Indefinite Delivery Indefinite Quantity (IDIQ) =Award a Guaranteed Minimum amount of orders and specify a Not to Exceed Maximum dollar amount Solicitation Offers Due Award = 6-8 weeks 10
11 21 1 COMPETITION SB 100%; 8(a) 15% SB 100% SB 100% Full and Open SB 100% SB 100% SB 30%; 8(a) 15% Full and Open Small Business Participation Small Business Participation Small Business Size Standard = 500 Employees or Less North America Industry Classification System (NAICS), Code Frozen Fruit, Juice and Vegetable Manufacturing Competition Full and Open : All Business Sizes Competitively Bid Set Aside : Competition among approved small business vendors only Small disadvantaged, service-disabled veteran-owned, HUBZone women-owned, and SBA 8(a) business development program. AMS must maintain competition must have at least 2 smalls to set-aside. 11
12 23 Small Business Participation Resource: U.S. Small Business Administration Resource: Dianna Price AMS Small Business Coordinator Ready? Set GO! 24 12
13 25 Get Started: 6 Steps 1. Review Product Specifications to determine what you can supply 2. Review AMS Master Solicitation for general contract terms 3. Review Vendor Qualifications, Submit Application Package 4. Receive Solicitation and Sharpen Your Pencil 5. Submit An Offer in WBSCM 6. Get Awarded, Perform, Get Paid 26 Get Started: 6 Steps Resource: AMS CP NEWS (Listserv) Subscribe to AMS CP NEWS Receive notifications of solicitations, awards, etc. Resource: Vendor Selling Kit at 13
14 27 Step 1. Review Specifications Product and Processing Requirements: Grade/quality - U.S. Standards, CIDs, etc. Harvest/pack season - current season Ingredients- nutrients: sodium, sugar Packaging/labeling - USDA Label or Commercial Brand USDA Inspection and Certification Unitizing/Loading/Sealing Know the specifications before submitting an offer- once awarded you are committed to meeting the spec! 28 Step 1. Review Specifications Resource: All USDA Specifications are on the website: Resource: AMS Fruit and Vegetable Programs, Specialty Crops Inspection Division Chuck Salazar Cecil.Salazar@ams.usda.gov Al Hoover Albert.Hoover@ams.usda.gov 28 14
15 Step 2. Review AMS Master Solicitation 29 Incorporated into almost all USDA commodity contracts Federal Acquisition Regulations (FAR) and Acquisition Regulations (AGAR) Clauses & Provisions; USDA/AMS Policies: Federal Contractor Registration (System for Award Management/ SAM )( Small Business Subcontracting Plans Use of Web-Based Supply Chain Management (WBSCM) USDA Plant Surveys; PSA Audits; Food Defense Plans/Audits Domestic Origin/Traceability USDA-AMS Grading/Inspection/Certification Invoice/Prompt Payment Act, etc. Step 3. Vendor Qualifications/ Application Package Vendor Qualification Requirements, September 2012 Details the requirements and process for a company to become an approved vendor. Checklist for the Application Package: SAM Registration ( SBA certification (if applicable) WBSCM Vendor Registration Form Company Letter certifying capability to perform Three (3) Letters of References 30 15
16 31 Step 3. Vendor Qualifications/ Submit Application Package Checklist for the Application Package:(cont.) Dun and Bradstreet Report Credit Advisory Report with financial information IF A NEW COMPANY, only need current financial statements (e.g financial statements = balance sheet and income statement) Non-manufacturer only: Letter signed by non-manufacturer & product supplier illustrating the relationship and transfer of ownership Complaint and dispute resolution proposal 32 Step 3. Vendor Qualifications/ Submit Application Package Submit Application Package to AMS and Receive Approval before any offer will be accepted Resource: Dianna Price Small Business Coordinator/New Vendor Approval AMS Dianna.Price@ams.usda.gov Direct: CPS Main:
17 Step 4. Receive Solicitation and Sharpen Your Pencil 33 Solicitation document lists: Offer Submission Deadline - NO Late offers are accepted Not later than (NLT) award date Small Business Set-Asides (if any) For each Line Item (Order) Product- material description(s), specifications Volume- pounds, cases, depends on product Delivery Window- 1 st half/2 nd half of each calendar month Destination City & State- most products are purchased FOB destination, occasional FAS to port for offshore (HI, AK, U.S. territories), so prices offered must be inclusive of transportation 34 Step 5. Submit an Offer in WBSCM Web-Based Supply Chain Management (WBSCM) = Cradle-to-Grave System: Program Funds AMS & FNS Recipient Ordering FNS Solicitations AMS Submission of Offers/Bids Vendor Award AMS Contract Management Vendor, AMS & FNS Invoicing/Approval Vendor & AMS 17
18 35 Step 5. Submit an Offer in WBSCM ALL offers are submitted via the Web-Based Supply Chain Management (WBSCM) System. Response to Invitation for Bids: Processing /Shipping Point Price- per Line Item, inclusive of transportation, to each destination Constraints- volume by product or by delivery period Response to Request for Proposal: Everything in response to an IFB, PLUS: UPLOADED TECHNCIAL PROPOSAL DOCUMENTS Step 5. Submit an Offer in WBSCM Resources: AMS website: Instructions, Training Materials, FAQs AMS Webinars (info on the website) WBSCM Technical Help: 877-WBSCM-4U WBSCM Procedural Help (Submitting Offers, Invoicing, etc.): AMS Contract Specialist DON T WAIT UNTIL THE FINAL HOUR TO ENTER YOUR OFFER! 18
19 37 Step 6. Award/Perform/Get Paid Contracts (aka Purchase Order/PO) are awarded to one or more successful offerors on each solicitation Award Announcement and Reports also published on website and through AMS CP News Receive your PO via WBSCM Contract Performance- produce, process, certify, deliver on time Contract Administration: Changes, Hiccups, all the little things- vendor works with the AMS Contract Specialist through the entire period of performance Invoice Submission via WBSCM AMS Contract 38 Specialists CONTRACTING BRANCH NAME TELEPHONE ADDRESS DUTIES Duane Williams Branch Chief Barbara Nelson Turkey Taco Filling; Cooked Turkey Breast; Split Chicken Breasts; "Long-Term" Turkey; Beef, Coarse Ground Casey Wong-Buehler Canned Vegetables; Frozen Vegetables Chyra Lewis Hams; Pork Products; Canned Salmon; Boneless Beef for Processing Endrea White Goods Receipts; Destination Changes Greta Samuel Cooked Diced Chicken; Canned Chicken; Canned Meats/Chili; Chicken Fajita Strips; Jerry Salinas Beef, 1-lb. chubs; Beef, Fine Ground & Patties; Beef, Special Trim; Cooked Beef and Pork Products; Lamb Products LaShawne Brown Frozen Potato Products; Dehydrated Potato Products; Juices, Bottled/Bulk/Frozen Megan Busa Canned Fruit; Frozen Fruit; Dried Fruit, Nuts, Fruit/Nut Mixes Meiko Dean Invoices; Contract Closeout Nate Sudbeck Fresh Fruits; Fresh Vegetables; Bulk Fruits and Vegetables for Processing Reedema Rock Eggs and Egg Products; Chicken Leg Quarters; Consumer Pack Whole Chicken; Bonus Turkey; Bison/Buffalo Renee Collier Dry Edible Beans, Peas and Lentils; Canned Dried Beans Samantha Rhoderick Chicken and Chicken Products; Turkey and Turkey Products; Bonus Chicken; Catfish; AK Pollock 19
20 AMS Website 39 Vendor Selling Kit WBSCM Information and Training Solicitation and Award Information Don t Miss Out: Subscribe to AMS CP NEWS QUESTIONS? Sara Hernandez Direct: Specialist CPS Main: Sara.Hernandez@ams.usda.gov 20
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