Procurement Reviews DIANE GOLZYNSKI, PHD, RD OFFICE OF SCHOOL SUPPORT SERVICES

Transcription

1 Procurement Reviews DIANE GOLZYNSKI, PHD, RD OFFICE OF SCHOOL SUPPORT SERVICES

2 Why Procurement? Why Now? Procurement: A multi step process for obtaining goods or services at the best possible price Procurement Provides: Accountability Efficient use of taxpayer dollars Reasonable assurance that the best buy is obtained

3 Responsibilities SFA s responsibility to follow each of these Procurement Process steps Vendors cannot be given the sole authority to follow proper procurement or guide the SFA s procurement process SFAs cannot expect to understand procurement without understanding the basis for them Requirements are found in fundamental authorities such as the Uniform Guidance and in program regulations

4 Uniform Guidance 2 CFR Part Procurement Standards are found in 2 CFR Part (Formerly found at 7 CFR Part ) Regulations are to be used by Program operators for Program purposes to provide reasonable assurance that the best buy is obtained Failure to conduct proper procurement may lead to unreasonable costs

5 Program Regulations National School Lunch Program: 7 CFR PART Food Service Management Companies 7 CFR PART Procurement Standards School Breakfast Program 7 CFR PART School Milk Program: 7 CFR PART a Procurement Standards Summer Food Service Program: 7 CFR PART Child and Adult Care Food Program: 7 CFR PART Food Service Management Companies 7 CFR PART Procurement Standards

6 Principle: Free and Open Competition Ensures: All potential suppliers are on a level playing field Low Price High quality Efficient use of tax payer dollars Any requirement seen as limiting competition is unallowable

7 Examples of limiting competition: Place unreasonable requirements on vendors Require unnecessary experience Having organizational conflicts of interest Specify only brand name products Make arbitrary decisions in the procurement process Write bid specifications that are too narrow and limit competition Allow potential contractors to write or otherwise influence bid specifications Provide insufficient time for vendors to submit bids Use local as a product specification (Geographic Preference) Arbitrarily divide purchases to fall below the small purchase threshold

8 Principle: Fairness and Integrity Specifications are clear and not unduly restrictive Publicizing the solicitation appropriately to the widest possible audience Writing clear evaluation criteria that are not unduly restrictive Allowing adequate time for respondents to prepare responsive bids or proposals Procuring within the awarded scope identified in the solicitation Transparency in the process

9 Principle: Responsive and Responsible Vendors Responsive vendors must conform to sponsor s stated terms and conditions Responsible vendors must be capable of performing successfully under the terms and conditions of the contract

10 School Procurement in Michigan

11 School Food Procurement in Michigan Great Lakes Consortium MOR Consortium SPARC Consortium Access to USDA Commodities; Choose (one) consortium in annual NSLP application Great Lakes Consortium with HPS MOR Consortium SPARC Consortium Access to commercial products; Choose by contacting consortium; Multiple memberships allowed All other products/services procured

12 Great Lakes Consortium If a SFA wants the 3rd Party Purchasing prices for commercial, they must competitively procure that 3rd Party Purchasing Service or join GLC (by board vote) for commercial purchasing

13 MOR

14 SPARC

15 School Food Procurement in Michigan Great Lakes Consortium MOR Consortium SPARC Consortium Access to USDA Commodities; Choose (one) consortium in annual NSLP application Great Lakes Consortium with HPS MOR Consortium SPARC Consortium Access to commercial products; Choose by contacting consortium; Multiple memberships allowed All other products/services procured

16 Cooperatives and Group Purchasing Organizations Cooperatives: MOR, SPARC, OR GLC Group Purchasing Organizations (GPO): HPS, FSMC, US Communities Third Party Purchasing Agents Sponsors still need to properly procure small vendors: Bread, Milk, Paper Supplies, Chemicals, POS Company, and other purchased services

17 Reviewing Consortia Procurement Consortia procurement completed on behalf of member SFAs will be reviewed by MDE annually All purchases that a SFA makes through a consortia contract will be covered through the MDE review of Consortia Procurement Specifically, MDE will be reviewing samples of: Processing procurement documents Distribution Warehousing Third party entities/agents

18 Procurement Procedures Why are they important? Required by regulations Helps to determine procurement methods to be used Identifies parties that will address any issues raised Prohibits conflicts of interest Written code of standards of conduct

19 Selecting the Proper Procurement Method Programs use either of two types of procurement methods: Informal Procurement Small Purchase Threshold Micro Purchasing Formal Procurement Competitive Sealed Bidding Competitive Negotiation Noncompetitive Negotiation

20 Formal vs. Informal for Public Schools, Public School Academies & Intermediate School Districts Is your (aggregate) annual purchase valued over the small purchase threshold? Federal = $150,000 (Services) Michigan = $100,000 (Food) Michigan = $23,417 (Non Food/Supplies) Local= Varies You can conduct an informal purchase You must conduct a formal purchase SFAs must adhere to the most restrictive threshold set in all situations.

21 Informal Procurement Methods Relatively simple process Competition must still occur Request the same information from all prospective vendors Obtain three sources that are eligible, able, and willing Micro Purchasing Award contract to lowest bidder that is both responsive and responsible Documentation

22 Formal Procurement Methods Three types of formal procurement methods: 1. Competitive Sealed Bidding: Invitation For Bids (IFB) 2. Competitive Negotiation: Request For Proposal (RFP) 3. Noncompetitive Negotiation: Sole source or competition is inadequate

23 Awarding the Contract Creates a legal commitment Records the business transaction Is required by regulations A contract that contains the same language, terms, conditions, and contract provisions as the solicitation ensures clear communication of all the expectations.

24 Required Contract Provisions Buy American Provision a) National School Lunch Act requires the purchase of domestic agricultural commodities and domestic food products b) Buy American clause must be included in all product specifications, solicitations, purchase orders, contracts and any other procurement documents

25 Managing the Contract Ensures that contractors perform in accordance with the terms, conditions, and specifications of their contracts Allows for adequate and timely follow up of all purchases Requires the SFA to verify that all parts of the contract are being met as agreed upon

26 Procurement Reviews in ALL Programs MDE will conduct the following procurement reviews: 1. Annually of specific consortia procurement activities 2. Annually of FSMC/Vended Meal Contracts 3. On a 3 year cycle for: a) All SFAs not in a USDA Foods consortia b) All SFA procurement outside the USDA Foods consortia 4. For all CNPs. For sponsors not in NSLP, procurement reviews will be a component of the administrative review

27 Feeling Satisfied Yet?

28 General Procurement Trainings Planned 10 regional trainings June 23, Frankenmuth Full Day Starting in mid April $25 to cover cost of food

29 Program Based Procurement Training NSLP/SBP/FFVP: Procurement will be incorporated into SMOT and RM trainings this fall CACFP: Procurement will be incorporated into Record Keeping trainings SFSP: Procurement will be incorporated into 2017 spring trainings

30 What Questions Do You Have?