APRIL 13-16, 2016 Procurement Planning Procedures and Ethics THESE MATERIALS HAVE BEEN PREPARED BY (California Department of Education) THEY HAVE NOT BEEN REVIEWED BY STATE CASBO FOR APPROVAL, SO THEREFORE ARE NOT AN OFFICIAL STATEMENT OF CASBO
Today s Presentation At the end of this session, you will have a basic understanding of: Minimum requirements for a procurement plan with a code of conduct and procurement procedures Steps to develop or refine a code of conduct and procurement procedure Benefits of procurement procedures and a code of conduct Pitfalls of unethical conduct 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 2
Basic Responsibilities of Program Operators Fully reviewing and understanding state and federal laws and regulations applicable to code of conduct and procurement procedures Correctly implementing state and federal laws and regulations Title 2, Code of Federal Regulations (2 CFR), Sections 200.318(a) and (c)(1) 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 3
Procurement Plan Your procurement plan includes two equally important components Written procurement procedures Written code of conduct 2 CFR Section 200.318(a) 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 4
What are the Benefits of Having Procurement Procedures? ACCOUNTABILITY Ensure procurement transactions are in compliance with state and federal law and regulation Ensure that taxpayer dollars are not wasted Protect your employees 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 5
What Exactly is a Procurement Procedure? A procurement procedure is a written document that describes how your organization will conduct procurement transactions in accordance with federal, state, local, and tribal laws and regulations. 2 CFR, Section 200.318[a] 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 6
What is in a Procurement Procedure? Requirements for contractor performance that is in accordance with terms, conditions, and specifications of their contract Standards to ensure that there is no acquisition of unnecessary or duplicate goods or services 2 CFR 200.318[b][d] 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 7
What is in a Procurement Procedure? Requirements for analysis of each procurement to determine the most economical approach Instructions that all solicitations include a clear description of the requirements for the material, product, or service to be procured Steps on how to use a brand name or equivalent description in solicitations 2 CFR 200.323; 2 CFR 200.319[c][1]; 2 CFR 200.319[a][6] 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 8
What is in a Procurement Procedure? Identification in the solicitation of all obligations that the firms must fulfill and factors that will be used to evaluate bids or proposals Consideration of intergovernmental, cooperative procurements Consideration of small, minority, women-owned, and labor surplus area businesses 2 CFR 200.319[c][2]; 2 CFR 200.318[e]; 2CFR 200.321 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 9
What is in a Procurement Procedure? Consideration of purchasing government surplus property in lieu of purchasing new equipment Processes for the settlement of all protests or other issues arising out of procurement Procurement methods used, including sealed bids, competitive negotiation, small purchases, micro-purchases, and non-competitive negotiation 2 CFR 200.318[f]; 2 CFR 200.318[5]; 2 CFR 200.320[c][d] 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 10
What is in a Procurement Procedure? A method to consider which contract provisions are required by federal regulations A requirement that contractors submit bonds when responding to formal solicitations 2 CFR 200.326; 2 CFR 200.325 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 11
What is in a Procurement Procedure? Consideration of all applicable certifications A method to consider a contractor s involvement in the development of specifications, bid documents and contracts Identification of any discounts, rebates and/or credits 2 CFR Appendix II; 2 CFR 200.319[a]; 7 CFR 210.21[f][iv] 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 12
What is in a Procurement Procedure? Identification of firms that have been suspended and/or debarred from entering into a Debarment Identification of procedures for geographic preference 2 CFR, Appendix II, Section [H]; 7 CFR 210.21[g] 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 13
What is in a Procurement Procedure? It must also include: The Buy American Provision: Section 104(d) of the William F. Goodling Child Nutrition Reauthorization Act of 1998 added a new provision requiring SFAs to purchase, to the maximum extent practicable, domestic commodity or products. 7 CFR 210.21(d)(1-3); USDA Policy Memo SP-24-2016 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 14
What is an American Product? An agricultural commodity that is produced in the United States and a food product that is processed in the United States using substantial agricultural commodities that are produced in the United States. USDA Policy Memo SP-24-2016 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 15
What is Substantially? Substantially means that over 51 percent of the final processed product consists of agricultural commodities that were grown domestically. Products from Guam, American Samoa, Virgin Islands, Puerto Rico, and the Northern Mariana Islands are allowed under this provision as territories of the United States. 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 16
Next Steps Ask yourself: Does my district have a written procurement procedure? If no, develop a procurement procedure If yes, does the procurement procedure include all the required elements or do I need to make revisions? 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 17
REMEMBER Train employees Have the Procurement Procedures approved by the governing board, if needed 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 18
Conflict of Interest 2 CFR Section 200.318[c][1-2] 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 19
What Exactly is a Code of Conduct? A code of conduct is a written policy governing the ethical conduct and actions of employees engaged in the selection, award, and administration of contracts. 2 CFR 200.318[c][1] 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 20
What is a Contract? A contract is a legal instrument used by participating districts to purchase the goods or services needed to complete a project or program under a federal award. It includes specifications, terms of payment, delivery dates, and effective dates. 2 CFR 200.22 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 21
What are the Benefits of Having a Code of Conduct? Protect your district s reputation Protect your employees 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 22
What is in a Code of Conduct? The code of conduct must prohibit: An employee, officer, or agent from participating in the selection, award, or administration of a contract if they have a real or apparent conflict of interest An employee, officer, or agent from soliciting or accepting gratuities, favors, or anything of monetary value from a contractor or subcontractors 2 CFR 200.318 [c][1]; 2 CFR 400.2 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 23
What is in a Code of Conduct? The code of conduct must define: The monetary threshold for gifts and gratuities The disciplinary actions for violating the code of conduct What constitutes a conflict of interest, including an organizational conflict of interest 2 CFR 200.318[c][1]; 2 CFR 400.2 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 24
What is in a Code of Conduct? The code of conduct must identify: The positions that are subject to the Conflict of Interest Code The circumstances under which identified positions must disqualify themselves from using, or participating in the using of their position to influence the making of an district decision Conflict of Interest Code, GC Section 87302 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 25
What is in a Code of Conduct? The code of code also must include requirements: Specific positions provide statements of financial interests that may result in a conflict of interest Individuals resigning from an identified position to file a statement within 30 days of resigning that they did not participate in making, or benefit by making, any district decision Conflict of Interest Code, GC Section 87302 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 26
What Actions are Allowable? The following scenarios may or may not be allowable according to your code of conduct. 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 27
Allowable? A vendor tells you there is a special on whole grain-rich dinner rolls. He states that the rolls meet the USDA whole grain-rich criteria. The rolls will only be offered at a special price on Thursday. To receive the special price, you will need to attend a luncheon hosted by the vendor and purchase the rolls during this time. 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 28
Attending supplier-hosted lunches, dinners, or business organization meetings is acceptable as long as there is no obligation to do business with the host supplier as a result of attendance. 2 CFR Section 200.318(c)(1) 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 29
Allowable? You are conducting a small purchase procurement, and send out a written solicitation that has respondent instructions that state vendors should ask questions in writing and that those questions and their answers will be provided to all respondents. A vendor calls your desk phone and asks questions and says I need a competitive edge, and if you can help me, I will send a gift box of wine and cheese to your home. 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 30
Acceptance or solicitation of gifts for personal gain may be considered unethical. Refer to your code for what can be considered of monetary value. Remember, an apparent conflict of interest is just as damaging as a real one. 2 CFR 200.318[c][1] 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 31
Allowable? You work in a position that is not subject to the code of conduct, and a vendor that provides your district s copier paper sends a greeting card every Christmas. You put it on your cubicle wall to share it with the rest of the supply room staff. 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 32
If your district s code of conduct clearly states your position is not designated and identifies that the Christmas greeting card is not a gratuity or does not have monetary value, and since it is unsolicited, keep it! 2 CFR 200.318[c][1] 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 33
Next Steps Check to see if your district has a code of conduct: If no, develop a code of conduct If yes, does the code of conduct have the required elements, or do I need to make revisions? 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 34
REMEMBER Train identified staff on the policies in the code of conduct Have your code of conduct approved by the governing board, if needed Provide forms to report gifts, gratuities, and potential conflicts of interest occurring before the designated employees resignation 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 35
California Department of Education, Management Bulletin CNP-01-2015 Written Codes of Conduct and Performance of Employees Engaged in the Procurement, Award, and Administration of Contracts California Department of Education, Procurement in School Nutrition Website: http://www.cde.ca.gov/ls/nu/sn/fsmcproc.asp US Department of Agriculture School Meals Policy Website: http://www.fns.usda.gov/school-meals/policy 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 36
Resources Procurement Procedures Title 2, Code of Federal Regulations, Section 200.318(a) http://www.ecfr.gov/cgi-bin/text-idx?node=2:1.1.2.2.1&rgn=div5 Code of Conduct Title 2, Code of Federal Regulations, Section 200.318(c)(1) http://www.ecfr.gov/cgi-bin/text-idx?node=2:1.1.2.2.1&rgn=div5 Conflict of Interest California Government Code, Section 87300-87314 http://leginfo.legislature.ca.gov/faces/codes_displaytext.xhtml?law Code=GOV&division=&title=9.&part=&chapter=7.&article=3. 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 37
Questions 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 38
Debbie Reeves (916) 319-0636 SFSCONTRACTS@cde.ca.gov This institution is an equal opportunity provider. 2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 39