Procurement TASN June 23, 2015 Presented by: Jackie Cantu, Compliance Coordinator Elizabeth Gonzales, Commodity Operations Director
Acknowledgment Statement 2 You understand and acknowledge that: the training you are about to take does not cover the entire scope of the program; and that you are responsible for knowing and understanding all handbooks, manuals, alerts, notices and guidance, as well as any other forms of communication that provide further guidance, clarification or instruction on operating the program.
Procurement Resources 3 www.squaremeals.org (TDA Food and Nutrition) Administrative Reference Manual (ARM) www.nfsmi.org (National Food Service Management Institute) Online courses Procurement in the 21 st century
Class Outline 4 Background Phases of the Procurement Process Procurement Methods Record Keeping Summary
Acronyms 5 SNP School Nutrition Programs CE Contracting Entity FSMC Food Service Management Company IFB Invitation for Bid OMB Office of Management and Budget RFP Request for Proposal TDA USDA United States Department of Agriculture
Objectives 6 By the end of the training you should be able to list the components of good procurement; locate where procurement regulations are found; list and explain the phases of the procurement process; and identify the five procurement methods and explain when each is used.
Background
Procurement- is a multi-step process for obtaining goods, products, and/or services in exchange for money or value.
Why Procure? Accountability to taxpayers Higher quality goods and services for a lower price
Components of good procurement Free and Open Competition Fairness and Integrity Transparency Responsive and Responsible
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Procurement Regulations 7 CFR Parts 3016 and 3019 OMB Circulars (A-21, A- 50, A-87, A-89, A-102, A-110, A-122 and A-133) 12 Super-Circular 2 CFR 200
Phases of Procurement Process
Phases of Procurement Process Manage Award Solicit Planning
Solicit Award Planning Manage Procurement Plan 15
What is needed and when Revenue and cost 1 Planning
2 Solicit 17 Provide detailed specifications Use appropriate procurement method Clearly describe deliverables
Selection of responsive and responsible contractors. Pre-award 3 Award reviews. 18
Effective contract 4 Manage 19 administration provides the CE with regular feedback on contractor performance.
Procurement Plan 1. Identifies each action in a proposed procurement. 20
Procurement Methods
Procurement Methods Informal Formal 22 1. Small Purchase Procedures 2. Micro-Purchases 1. Competitive Sealed Bidding 2. Competitive Proposals 3. Noncompetitive Proposals
Greater than Must use a formal procurement method Simplified Acquisition Threshold ($50,000) May use an informal procurement method Less than or equal 23
Q) A CE is making food purchases with an aggregate cost of $50,000. Should they use an informal or formal procurement method? 24
A) May use an informal procurement method. 25
Q) A CE is in a state that has a simplified acquisition threshold of $50,000, and a local threshold of $25,000, yet the Federal threshold is $150,000. Which simplified threshold must the CE use? 26
A) The local simplified acquisition threshold of $25,000. 27
Informal Procurement Micro-Purchases Defined in 2 CFR Part 200.67 Aggregate dollar amount does not exceed $3000 Must distribute equitably among qualified suppliers 28
Informal Procurement Small Purchase Procedures Develop written specifications Price quotes from at least 3 vendors Award contract Document all procedures 29
30 Competitive Sealed Bidding Responsive bids Complete differ only in price. specifications. More than one qualified source Negotiation not willing and able to used. compete. Formal Procurement
31 RFP Competitive Proposals Proposal Source Contract selection Formal Procurement
1: When a single bid or offer received. 2: More than one bid/offer received but none responsive. Use of Noncompetitive Proposals 3: Public exigency or 4: Sole source procurement. emergency.
Record Keeping
Record Retention Five year record retention: Final contract renewal period has expired or final payment is recorded. Bid protests, litigation, or audits may extend retention period. 34
Examples of records to keep Written rationale for method of procurement RFP or IFB Selection of contract type Bidding and negotiation history Basis for contractor selection TDA approval to support lack of competition when bids are not obtained 35 Contract Texas Department of changes Agriculture
State Agency Review 36
Summary
Procurement Plan and Code of Conduct Below the simplified acquisition threshold Informal Above the simplified acquisition threshold Formal Micro-purchase threshold (< $3,000) Advertise, obtain & document quotes Develop solicitation documents (specifications, estimated quantities, terms/conditions/ provisions/evaluation criteria) Evaluate & Award Develop solicitation documents (IFB,RFP)(specifications, estimated quantities, terms/conditions/provisions/ evaluation criteria) Publicly publish solicitation Evaluate & Award Fixed price or cost-reimbursable contract Contract Administration/Performance Management Process
Acknowledgment Statement 39 You understand and acknowledge that: the training you have completed does not cover the entire scope of the program; and that you are responsible for knowing and understanding all handbooks, manuals, alerts, notices and guidance, as well as any other forms of communication that provide further guidance, clarification or instruction on operating the program.
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