2017 national conference - amazon s3 · p.o.w.e.r. buying group (pbg) purchasing organization with...
TRANSCRIPT
2017 National
Conference
D E N V E R , C O L O R A D O
A P R I L 2 3 - 2 6
W W W . C O M M O D I T Y F O O D S . O R G
“What’s Up with all
these Co-Ops?
Tuesday, April 25
4:00 PM
Mile High Heroes
• Linda Wiley, Executive Director, P.O.W.E.R. Buying Group
• Joe Cook, Chairman, PINCO
• Kevin Crampton, VP Contracting & Bus. Dev., HPS
• Shelly Robinson, American Purchasing Consortium
P.O.W.E.R. Buying Group (PBG)
Purchasing Organization With Educational Results
• Began in 1986• 17 County School Districts•All volunteer leaders and workers• First paid person is me—2012• Currently 31 of 67 Counties in sunny Florida• 625,000 enrollment
P.O.W.E.R. Buying Group (PBG)
•Provide time and expertise vs hiring a qualified personnel•Valuable expertise and insights from variety of staff• “Techie Nerd” improves process efficiencies
Major Benefits
P.O.W.E.R. Buying Group (PBG)
• Lead agency works with PBG to prepare and award RFP •All other districts piggyback on the lead agency RFP
• Purch
Framework
P.O.W.E.R. Buying Group (PBG)
•Members required to purchase the “mainline” products from the awarded distributor•May use PBG or prepare their own ITBs, quotes, etc. for
other categories
Food & Supply Category Flexibility
P.O.W.E.R. Buying Group (PBG)
• Both NOI and MFFS processed commodity products
• Bread and baked products• 100% Fruit juices• Fresh produce• Smallwares/Custodial
supplies• Cleaning supplies
Categories Offered
• Mainline Foods • USDA Foods—Distribution and
storage of all USDA Foods • Ordered and sent with
regular weekly deliveries• Cost is less than SA
contracts for delivery and storage
• Disposables
P.O.W.E.R. Buying Group (PBG)
•Provide updates on all current guidance•Change PBG policies and procedures to maintain compliance•Work aggressively to provide quality products at competitive pricing•Each program has one vote
Services Offered
P.O.W.E.R. Buying Group (PBG)
Processes that encourage member input, sharing, requests
• Member meetings• Conference calls• Minutes of all executive committee discussions and
decisions• Director is available to members at any time (full time job)• Surveys• Email or survey votes
P.O.W.E.R. Buying Group (PBG)
Price solicitations include:
Complete specifications for PBG-approved products
Tracking and inclusion of product usage information for “sharper pencils”
Detailed review of all submitted products to ensure awarded products meet current specifications and guidance i.e., Buy American, etc.
Services Offered
P.O.W.E.R. Buying Group (PBG)
Product information includes:
Complete specification file for each PBG-approved food product
Detailed nutrition information including major nutrients, allergens, meal crediting, gluten, etc. available in Excel format
Online reports to sort by specific categories, i.e., M/MA, or wheat or pizzas or cookies, dough or prebaked
Services Offered
P.O.W.E.R. Buying Group (PBG)
Product nutrition information includes:
Preparation of food product information for uploading detailed nutrition information to requested POS and/or menu software companies—eliminates the need for members to enter product nutrition information into the company software
Identification of Smart Snack compliant products
Services Offered
Mile High Heroes
• Linda Wiley, Executive Director, P.O.W.E.R. Buying Group
• Joe Cook, Chairman, PINCO
• Kevin Crampton, VP Contracting & Bus. Dev., HPS
• Shelly Robinson, American Purchasing Consortium
Partners In Nutrition Cooperative aka PINCO
Founded 1988- Joint Powers Agreement in 1992
Recognized as a “Single District” by USDA/CDE and Governing Agencies
Only “Self-Managed” non-profit USDA Approved Cooperative in California
40 Member Districts in Six California Counties
USDA Entitlement Monies are Fair-Shared
PINCO manages USDA commodities and processor agreements on behalf of
Member Districts
PINCO Service Center- Bakersfield
USDA Approved Receiving Agency
Receive/Deliver Shipments year-round
Schedule Vendor Pick-Up/Back-Haul’s of USDA Foods
Manage USDA and Purchased Foods with NO storage fees
Will-Call Services as needed
“Numbers Count”
285 School Locations
26,049,250 Total Lunches Served in 2015-2016
$8,726,500 in USDA Entitlement Monies (.335 per TLS)
PINCO Inventory: 115,000 Cases of USDA/Commercially purchased foods
1.5 Million Cases in/out annually
Mind & Muscle Behind PINCO
Warehouse Manager
Buyer
Storekeeper II/Dispatcher
Accounts Payable Clerk (PTE)
Storekeeper III (3 FTE/1PTE)
_______________________________________
Account Technician
Chairman (PTE)
(PINCO contracts Logistical Services)
Membership Requirements
Approval by L.E.A.’s Governing Board
Designation of Voting Member & Alternate
L.E.A.’s Assignment of USDA Foods
2.5 Month Operating Expense Reserve (Interest “paid” to District Quarterly)
Adherence to USDA Food usage guidelines in usage “At Processor” and Direct
Delivery
Cooperation “Pays-Off”
Agreements are in full compliance with USDA/CDE Procurement-FDP guidelines
Member Districts have equal voting rights in Policy/Entitlement/Procurement Decisions
Sub/Ad hoc Committees play an active role in procurement
PINCO works direct with USDA processors– providing Member Districts “BEST” pricing/terms available
PINCO maintains Member District USDA Foods balances and records for L.E.A.’s reporting and Administrative Review
PINCO provides Member Districts Dietician Services-Nutrient/Allergen Analysis
And There’s More…
Annual PINCO Food Show – 175+ Vendors representing their best in use of USDA Foods and “Supporting Cast” of supplies
Annual Reports/Updates with CDE Representatives
Bi-Monthly Meetings– sharing best practices in sponsorship
Cross-Pollination between Member Districts is AMAZING!
Mile High Heroes
• Linda Wiley, Executive Director, P.O.W.E.R. Buying Group
• Joe Cook, Chairman, PINCO
• Kevin Crampton, VP Contracting & Bus. Dev., HPS
• Shelly Robinson, American Purchasing Consortium
Agenda
• HPS Statistics
• HPS Decision Making – HPS Member Governance
• Procurement Process – Understanding Federal Procurement
• Third Party Purchasing – Understanding the reasons why
• HPS Value Added Tools – Managing the Business of School Food
• USDA Foods Administration - Operational Activities & Enhancements
HPS
• Founded in 1949
• HPS is a not for profit LLC owned by our non-profit members
• Nine separate education RFP’s covering the HPS footprint
• 1,100 current education members
• Over $325 Million in education Commercial & USDA Foods volume
• Total volume $1 Billion in Healthcare and Education Membership
Governance
• Overall management decisions/policies are provided by a Board of Managers
oSchool Superintendents
oHealth Care Administrators
• Contract decisions are made by members volunteering to serve on HPS Advisory Committees:
o HPS has five committees for School Food Service RFPs
o Make all product selections, extensions, and awards
o 9 separate contracts we have for our K12 members
USDA Memo SP-05-2017
HPS complies with Program and government‐wide regulations:
• Buy American
• cost‐reimbursable required contract
• Government approved procurement methods and
• award a fixed‐price or cost‐reimbursable contract to the lowest bidder
• include required contract Provisions in Appendix II to 2 CFR 200, etc.
Group Purchasing
• HPS Group Purchasing
• Management of the RFP and Auditing Processes,
• All Procurement documents reviewed/updated by HPS Attorneys
• Training to better for understanding Federal Procurement
• Business Review Process Purchase Volume & Rebate Tracking
• Technology tools
• Furniture Finishes and Equipment Program
• Dealer for Equipment Purchasing
Procurement for GPO Services
HPS Group Purchasing
• Individual district uses an approved procurement method (Micro, Small Bid or Formal) • sends a solicitation or request quotes for group purchasing services.
• Group of schools (Coop or Schools joining together) sends a RFP to HPS Third Party Purchasing Service organizations
• They make an award to the GPO and the school joins the GPO
• Members then attach to the GPO pre-procured contract
• GPO continues procurement schedule
Procurement for GPO Services
Furniture Finishes and Equipment Program• Dealer for Equipment Purchasing. As an HPS member you can use this service as
one source.
HPS USDA Foods Administration (Commodity Purchases)• Group of schools (Coop or Schools joining together with a lead district) sends a RFP
for Commodity Administration
• They make an award to the Administrator
Benefits of Group Purchasing
• Price protection - all pricing mechanisms recognized by UDSA
• Committed Rebate and Payment Incentive programs
• Auditing and Market Basket CPI Indexing
• Wider variety of item choices due to combined volume
• Cost of processing an invoice for multiple vendors
• Technology tools to manage contract spend
• More time to focus on critical functions – feeding kids
Technology Tools
• Contract Analysis Tool – www.hpscat.com
• HPS Menu Planner - Cycle Menu Solution (Fall 17)
• HPS CRM tool for reporting and tracking - MAVERIC
• HPS Website for contract information – www.hpsgpo.com
Commodity Administration
As the Commodity Administrator HPS works with members to manage:
• All Processing RFP Solicitations
• Approved Product Lists
• Aggregates and Orders all Truck Loads through WBSCM for Processed, Non-Processed and DoD (ffavors)
• Manages a “Single Bank System” for all members to utilize
• Provides completion of PAL Reports
• Works very closely with state departments and members to disseminate and train our members on USDA Foods
Mile High Heroes
• Linda Wiley, Executive Director, P.O.W.E.R. Buying Group
• Joe Cook, Chairman, PINCO
• Kevin Crampton, VP Contracting & Bus. Dev., HPS
• Shelly Robinson, American Purchasing Consortium
So Many to Choose From…
CNP Program Operator-Only
AGENT
GBO
GPO
Inter-Agency Agreements
What’s the Difference?
• USDA Memo SP 05-2017
supersedes previous guidance related to procurement groups
• Participating in intergovernmental and inter-agency agreements can offer greater economy and efficiency for procurement or use of common or shared goods or services (2 CFR 200.318(e))
• Competitive procurement, program regulations and guidance must still be followed
• Oversight to ensure compliance falls to participating CNP Program Operators
Common Objectives
•Bringing multiple purchasing entities together for volume
purchases
•Reducing administrative and staff time for member entities
•Acquiring the highest quality goods at the best value for
member entities
Basic Common Principles
Offering Free and Open Competition
Following Rules of Fairness and Integrity
Awarding Most Responsive and Responsible Vendors
Challenges and Opportunities
“Co-op” Level:
• Staying abreast of most current federal/state regulations/guidance and current trends
• Getting accurate input from all members – AKA: Forecasting
• Reducing SKUs on bids while allowing choices to members
• Ensuring non-restrictive competition• Large co-ops may need to divide service area into smaller regions
• Tying procurement for Further Processing of USDA Foods to commercial bid for NOI/MFFS
Challenges and Opportunities
Vendor Level:
• Disconnect between manufacturers wanting shorter contract terms and distributors wanting longer term contracts
• Stocking of SKUs included in awarded contract at needed inventory levels
Challenges and Opportunities
CNP Program Operator Level:
• Validating co-op effectiveness
• “Cherry-picking” from various co-ops
• Requesting items be included in bid, then not following through with purchases
• Inventory Management:• “Double-dipping” with “Brown Box” and NOI/MFFS request
www.facebook.com/commodityfoods.org