Slide 1. Welcome to the Oregon Child Nutrition Program training on procurement.
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1 Slide 1 Procurement Training Welcome to the Oregon Child Nutrition Program training on procurement. This is just a quick basic overview of a more in-depth procurement training that is available. 12/16/ 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. Slide 2 What is procurement? Procurement is a multi-step process for obtaining the most responsive goods and services. 12/16/ Procurement is a multi-step process for obtaining the most responsive goods and services that meets your needs. The steps in this process including, planning, writing specifications, advertising the procurement, awarding a contract or make a purchase, and managing the resulting contract or keeping documentation.
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 12/16/ 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 12/16/ One of the most important principle is that a good procurement is a competitive procurement. Free and open competition means that all vendors are playing on a level playing field and have the same opportunity to compete. Fair and integrity means that the procurement will be conducted with high moral honest principles and professional standards. A responsible vendor is one that is capable of providing the goods and services needed. A responsive bid or quote is one that meets most of the needs stated in the request for bid or quote. Transparency in the procurement process allows vendors the widest possible access to information regarding the goods and services being purchased.
3 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 12/16/ 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 $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 12/16/ 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 a minimum of three (3) price quotes. The three (3) quotes must be documented by saving the submitted information or 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.
4 Emergency procurement practice is only used when a purchase is necessary to continue service. Sponsors can make the purchase following their procurement plan guidance for emergency procurements. For more in-depth information on the different procurements methods please access additional procurement training on Ilearn. Slide 7 Other Considerations Buy American Provision Sponsors must purchase domestic products or USDA foods that are: An agricultural commodity that is produced in the US and/or A food product that is processed in the US substantially using agricultural commodities that are produced in the US 12/16/ The Buy American Provision was enacted in the Child Nutrition Reauthorization Act of Sponsors must include a Buy American clause in all product specification, solicitations, purchase orders, and any other procurement documents so that vendors are aware. There are exceptions to the requirement of Buy American. One is the product is not produced or manufactured in the US in sufficient and reasonable available quantities of a satisfactory quality or bids reveal the costs of a US product are significantly higher than the foreign product.
5 Slide 8 What Else Should be Considered 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 that each Sponsor must decide if they are going to use when procuring unprocessed locally grown or locally raised agricultural product. Reference USDA Memo SP /16/ Purchase from a local farmer? Yes; however, the procurement must be conducted in a manner that maximizes full and open competition. The solicitation documents, whether a quote or proposal, must clearly outline how the geographic preference will be given. Slide 9 Do you have a Procurement Policy What is it? A procurement policy assures that all purchases made with CNP federal funds are handled fairly and in a manner that encourages full and open competition and identifies what is to be done, who is to do it, and how it should be done. 12/16/ CNP sponsor receiving federal funds, the organization must have and follow a written procurement policy and procedure. So what is it? A procurement policy typically identifies what is to be done, who is to do it, and how it should be done in plain language. The policy will also include a code of conduct that states specific guidelines and limitations for employees actions during the procurement process. A procurement policy 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 practice before making
6 purchases or writing a procurement policy. If your organization's purchasing practice is stricter such as lower spending authority, more bids, more documentation and etc. you will follow the stricter policy. If your organization has multiple locations and the administration office is responsible for purchasing for each site only one plan is needed. However, if each site is responsible for their own purchasing then each site will need to have a procurement plan. Slide 10 Develop a Procurement Policy Why have it? To Meet Federal regulations Sample procurement policy template add link to ODE CNP site Why should there be a policy developed? Besides the federal regulations having a procurement policy ensures that sponsors have a clear picture of how purchases will be made. 12/16/ There is no one right way to establish a procurement policy. Factors such as the size of the sponsor, the availability of vendors to supply necessary goods and services, and the purchasing authority will often influence the policy. A Template has been developed for sponsors to use when developing their procurement policy. The template is available on the CNP website (give location). Reference 7 CFR 226 & 7 CFR USDA FNS Instruction 796-2, Rev. 3,
7 Slide 11 Documentation Procurement Documents Three years plus the current fiscal year Accounting Documents Invoices Grocery receipts Cancelled checks Bid documents 12/16/ Sponsors must maintain documentation on file for every procurement transaction made with program funds. 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. Slide 12 ODE CNP Contact Information Oregon Department of Education Child Nutrition Programs 255 Capitol St. NE Salem, OR Phone: Website: 12/16/ 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 /16/ These references provide guidance on how to use the federal funds. Congress has passed laws to establish programs and to establish requirements. USDA develops and issues regulations, guidance, instructions, and circulars. At the state level it is our duty to comply, and try not to impose further restrictions onto Sponsors. Where does one look for guidance on procurement? The first step should be to refer to the procurement regulations. The regulations may seem
8 complex but they actually encompass a clear set of principles. Please contact your assigned Specialist if you have questions. Slide 14 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.
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