Welcome to the Oregon Child Nutrition Program training on procurement. This training is a brief overview of procurement.

Transcription

1 Slide 1 Procurement Training Welcome to the Oregon Child Nutrition Program training on procurement. This training is a brief overview of procurement. 3/27/ Generally, when we use the term procurement, it refers to the purchasing of goods and services. Procurement is an important part of operating the Child Nutrition Programs, because federal dollars are used to purchase goods and services. Therefore Sponsors need to understand and comply with local, state, and federal procurement guidelines to make sure the federal dollars are spent wisely. Slide 2 What is procurement? Procurement is a multi-step process for obtaining the most responsive goods and services. 3/27/ Procurement is a multi-step process for obtaining goods and services at the best possible price. Proper planning before procuring a good or service is worthwhile and has a critical role in obtaining the high-quality products and services needed at the best possible price. The steps in this process include, planning, writing specifications, advertising the procurement, awarding a contract or making a purchase, and managing the resulting contract and keeping documentation. In other words you are looking to get the best product from the best vendor at the best price.

2 Slide 3 Why is Procurement Important? USDA requires that all purchases made by Child Nutrition Programs, whether funded entirely or in part with Child Nutrition funds, are conducted in accordance with all Federal Procurement requirements. May help sponsors save money in the purchase of food and services 3/27/ The Federal government wants to know that public funds are used wisely. There is no bottom dollar amount with federal funds. If you are purchasing something for 1 cent this involves the same practice as a purchase of something for $50, Slide 4 A Good Procurement Practice Includes Free and open competition Fairness and integrity Responsible vendor, Responsive bid, and; Transparency 3/27/ One of the most important principle is that a good procurement is a competitive procurement. All procurement transactions must be conducted in a manner that provides free and open competition. Free and open competition means that all suppliers are playing on a level playing field and thereby have the same opportunity to compete. Fairness and integrity in all aspects of the procurement process are critical to

3 achieving free and open competition. The procurement process cannot be both effective and self-serving. No matter how strongly the SFA official may prefer a particular product or supplier, other comparable products and suppliers must be given every reasonable consideration. To be considered responsible, a vendor must be capable of performing successfully under the terms and conditions. Qualified respondents must be eligible, able, responsive, and willing to provide the product or service being sought. Transparency in the procurement process allows vendors the widest possible access to information regarding the goods and services being purchased. Slide 5 Federal Procurement Roadmap Purchase/contract less than $150,000 Use Informal Process All CNP Sponsors Purchase/contract greater than $150,000 Use Formal Process 3/27/ This Roadmap outlines the Federal requirements for procurements in Child Nutrition Programs. The important number to remember is the $150,000 Federal spending limit. If your agency has a lower spending limit, Sponsors will need to use the lower spending limit when procuring goods and services. Sponsors will follow the Federal Procurement Roadmap to determine which procurement method would be used when purchasing with Federal funds. Even if a purchase is only partially funded with Federal dollars, Sponsors must follow this roadmap. For goods and services costing less than

4 $150,000 Sponsors will use the informal procurement process For goods and services costing more than $150,000 Sponsors will use the formal procurement process. Slide 6 Procurement Methods Informal Small procurement under $150,000 Formal Over $150,000 Invitation to Bid (ITB) Request for Proposals (RFP) Emergency procurement 3/27/ An informal procurement process is used when the total cost for an item is under $150,000. These procurements may be completed by using your telephone, fax, , printed advertisement, internet, and even in person to obtain as many quotes that will allow for competition. The quotes must be documented by saving the submitted information and your notes in comparing prices. The formal procurement method is for purchases over $150,000. These procurements may be completed either using the invitation to Bid (ITB) or the request for proposals (RFP) processes. Emergency procurement practice is only used when a purchase is necessary to continue service. Sponsors can make the purchase following their procurement procedure guidance for emergency procurements.

5 Slide 7 Other Considerations Minority Business Enterprise Geographic Preference Buy American (only applies to NSLP & SBP) Procurement also has other considerations to follow: Minority Business Enterprise Geographic Preference 3/27/ Buy American (only applies to NSLP & SBP) Slide 8 Minority Business Enterprise Encouraged to take affirmative steps to ensure that minority firms and women s business enterprises are used when possible 3/27/ All sponsors are encouraged to take affirmative steps to ensure that minority firms and women s business enterprises are used when possible. Affirmative steps may include placing such businesses on solicitation lists and ensuring such businesses are solicited whenever they are deemed potential sources. Sponsors may also want to establish delivery schedules that will help minority business enterprises meet deadlines. Information may be obtained from Business Oregon on such business at the web site provided on the slide.

6 Slide 9 Geographic Preference What is it? In a nutshell, providing favor to locally grown or locally raised agricultural products when procuring (purchasing). How is local defined? Local must not be defined in a way that unnecessarily limits competition. There is no requirement that Sponsors must purchase locally grown and locally raised agricultural products. This is an option that each Sponsor must decide if they are going to use when procuring unprocessed locally grown or locally raised agricultural product. 3/27/ Slide 10 Buy American Provision (Only Applies to NSLP & SBP) Sponsors must purchase domestic products or USDA foods that are: An agricultural product that is produced in the US and/or A food product that is processed in the US substantially using agricultural products that are produced in the US 3/27/ The Buy American Provision was enacted in the Child Nutrition Reauthorization Act of The Buy American Provision only applies to the National School Lunch Program (NSLP) and School Breakfast Program (SBP). Child and Adult Care Food Program (CACFP) and Summer Food Service Program (SFSP) do not have to follow the Buy American Provision. NSLP sponsors must include a Buy American clause in all product specification, solicitations, purchase orders, and any other procurement documents so that vendors are aware. Purchases made in accordance with the Buy American Provision must still follow the proper procurement rules for free and open competition. This provision requires participants to purchase, to the maximum extent practicable, domestic products for use in meals. A domestic product is one that is produced and processed in the United States substantially using agricultural products that are produced in the United States. Substantially

7 using means over 51 percent of the final processed product consists of agricultural products that were grown domestically. While rare, there are exceptions to the requirement of Buy American. These exceptions are: The product is not produced or manufactured in the US in sufficient and reasonable available quantities of a satisfactory quality. The competitive bids reveal the costs of a US product are significantly higher than the foreign product. Slide 11 Do you have a Procurement Procedure What is it? A procurement procedure assures that all purchases made with CNP federal funds are handled fairly and in a manner that encourages full and open competition that best meets the needs of your organization 3/27/ As a CNP sponsor receiving federal funds, the organization must have and follow a written procurement procedure. So what is it? A procurement procedure typically identifies what is to be done, who is to do it, and how it should be done in plain language. The procedure will also include a code of conduct that states specific guidelines and limitations for employees actions during the procurement process. A procurement procedure assures that all purchases made with CNP federal funds are handled fairly and in a manner that encourages full and open competition and provide justification for using either the informal or formal procurement methods. You should always be aware of your organization s established purchasing

8 practice before making purchases or writing a procurement procedure. If your organization's purchasing practice is stricter such as lower spending authority, more bids, or more documentation you will follow the stricter policy. A template is available on the Oregon Department of Education Child Nutrition Program web site for you to use to develop your own procurement procedure. Slide 12 Documentation Procurement Documents Three years plus the current fiscal year Accounting Documents Invoices Grocery receipts Bid documents 3/27/ Sponsors must maintain documentation on file for three years plus the current fiscal year. During administrative reviews or audits by ODE CNP staff these documents will be reviewed to verify that appropriate procedures were followed when using program funds.

9 Slide 13 References Program regulations: National School Lunch Program (NSLP): 7 CFR School Breakfast Program (SBP): 7 CFR Summer Food Service Program (SFSP): 7 CRF Child and Adult Care Food Program (CACFP):7 CFR Uniform Administrative Requirements: State/local governments: 7 CFR Non-Profits: 7 CFR /27/ Slide 14 ODE CNP Contact Information Oregon Department of Education Child Nutrition Programs 255 Capitol St. NE Salem, OR Phone: Website: If you have any questions please contact your Assigned Specialist. 3/27/ Slide 15 The U.S. Department of Agriculture prohibits discrimination against its customers, employees, and applicants for employment on the bases of race, color, national origin, age, disability, sex, gender identity, religion, reprisal, and where applicable political beliefs, marital status, familial or parental status, sexual orientation, or all or part of an individual s income is derived from any public assistance program, or protected genetic information in employment or in any program or activity conducted or funded by the Department. (Not all prohibited bases will apply to all programs and/or employment activities.) If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program Discrimination Complaint form, found online at or at any USDA office, or call (866) to request the form. You may also write a letter containing all of the information requested in the form. Send your completed complain form or letter to us by mail at U.S. Department of Agriculture, Director, Office of Adjudication, 1400 Independence Avenue, S.W., Washington, D.C , by fax (202) or at program.intake@usda.gov Individuals who are deaf, hard of hearing or have speech disabilities may contact USDA through the Federal Relay Service at (800) ; or (800) (Spanish). USDA is an equal opportunity provider and employer.