© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
SOLVING YOURSCHOOL NUTRITION
PUZZLE
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Co-Ops and GPOs: Your Questions Answered!
Monday, January 22, 2018
2:30 – 3:30PM
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Dr. Lynnelle Grumbles, RD, SNSPanel Facilitator
Co-Ops and GPOs: Your Questions Answered!
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Source: SNA, School Nutrition Operations Report 2016
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Text Book Benefits of Collaboration
• Increased Purchasing Power
• Additional resources
• Labor Reduction
• Direct to Manufacturer Purchasing
• Volume Discounts
• People – Networking Opportunities
• Procurement Decisions by Governing Board
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Text Book Challenges of Collaboration
• Administrative costs
• People – Lack of consensus among members
• Limited deliveries or delivery locations
• Minimum case or value shipments
• Monitoring
• Increased costs
• Loss of control
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Join One or Start One?
• What is available near me?
• Does what is available fit my needs?• Products, pricing, deliveries
• Is it effective?
• Do I have the time and energy?
• How does my boss feel about it?
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Put in the Time
• For Operators:• Evaluate your position in the market
• Run the numbers
• Evaluate your needs
• For Industry Members:• Evaluate effectiveness of the group
• Clear communication• Ask good questions
• Run the numbers
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Today’s Speakers
• Courtney Haueter, JDProgram Analyst
USDA – Food and Nutrition Service, VA
• Timothy Goossens, SNSDirector
Laconia SD, NH
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Meet the Experts
• Courtney Haueter, JD• Program Analyst, USDA-FNS, Alexandria, VA
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Overview
• Types of group purchasing efforts
• The responsible procurement party
• Proper procurement procedures
• Adding parties to a contract
• New Guidance
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Types of group purchasing
• Q&A on Purchasing Goods and Services through Cooperatives, Agents, and Third-party Entities such as Group Purchasing/Group Buying Organizations, etc.
• Key information:• Supersedes SP35-2012 and includes all Child Nutrition Program operators
• Seeks to maximize full and open competition
• All costs must be necessary, reasonable, allocable, and allowable
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Types of group purchasing
• Group purchasing efforts identified
• Child Nutrition Program (CNP) Program operator-only and/or CNP State agency cooperative agreements
• Agents
• Third-party entities
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Types of group purchasing
Third-party entities
• State-run agreements
• Inter-entity agreements (consisting of non-CNP operators)
• Group Purchasing Organizations, Buying Organizations, and Third-Party Vendors
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
The responsible procurement party• Child Nutrition Program (CNP) Program operator-only and/or
CNP State agency cooperative agreements
• Agents
• Third-party entities
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
The responsible procurement party
Agents
• SFA conducts procurement for an agent in compliance with Program and government-wide regulations
• The Agent then conducts procurement on behalf of the SFA in compliance with Program and government-wide regulations
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
The responsible procurement party
• Third-Party entities
• Non-CNP State agency agreements
• Inter-agency agreements
• Group Purchasing Organizations, Buying Organizations, and Third-Party Vendors.
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Methods of Procurement
• All competitive procurements must be in accordance with Program regulations and guidance, and the government-wide regulations in 2 CFR Part 200.318-.326
• Procurement methods are found in 2 CFR 200.320
• Micro-purchase
• Small purchase procedures
• Sealed bid/competitive proposals
• Non-competitive proposals (when applicable)
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Adding parties to a contract
• Properly procured contract
• Contract provision allowing additional parties
• Language should specify limitations of the extension of the piggybacking
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
New Guidance: The “Market-Basket Memo”
• FNS identified a need for guidance in this area
• “Market Basket” is a practice of awarding contracts utilized by Program operators
• Evaluates the lowest price using a sample of goods
• This memo requires the sample of goods to represent a specified estimate of the total value of the contract
• FNS recommends a sample of 75% or more
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Market-Basket Memo
• Allows the addition of goods when:
• this option is included in the original solicitation and contract agreement,
and
• the total value of all additional goods does not exceed the amount specified in the contract.
• FNS recommends limiting additional costs to 5-10% of the estimated value of the contract
• Provides sample solicitation and contract language surrounding market basket analysis.
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Summary
• What are the types of group purchasing efforts?
• Who is responsible for the procurement?
• What procurement must take place?
• How are parties added to an existing contract?
• What new guidance is there?
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Questions & Discussion
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Meet the Experts
• Tim Goossens, SNS• Food for Schools
• Coordinator of the New Hampshire Buying Group and theMassachusetts School Buying Group
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
About Our Cooperative - Structure
• NHBG has been in existence for 20 years
• MSBG is new this year
• Total of 476 schools and 270,000 students in both states
• I became a member of NHBG in 1999 and startedmanaging the group the next year
• We produce market basket bids in several different categories
• Now operate as a consultant to both groups
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
How Districts Can Participate
• Application process for membership based primarilyon size and geography
• Sensitive to vendor footprints and drop seizes
• New members are approved by vote of existing members (NH) and steering committee (MA)
• There is a 2 tier membership fee based on size inNH and a flat fee in MA
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Bids!
• Market basket bids for:• Grocery
• Paper (Nonfoods)
• Bread
• RFP for produce and Ice Cream in NH
• We hold an annual combined vendor show each year
• Minimize in person meetings in favor of Zoom videomeetings when appropriate
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
What Works? What Doesn’t Work?
• Technology works!• Video meetings
• Hyperlinked nutritionals and PFS
• Online district dashboards• District information
• School information
• Delivery windows
• Online member suggestions
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
What Works? What Doesn’t Work?
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
What Works? What Doesn’t Work?
• Biggest challenge is coming to consensus
• Second biggest challenge is member participation
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
If I could change anything now….
• Clarify (or relax) some of the procurement regulations
• More consistency state to state
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Advice/Words of Wisdom
• Make sure the group has strong, informed leadershipwith clear and regular communication
• Make sure it is a participatory process…Then Participate!
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Questions & Discussion
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Meet the Experts
• Lynnelle Grumbles, PhD, RD, SNS• Lead Agency – Council Chair
• Super Co-Op• A California USDA Foods Cooperative
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
About Our Cooperative – Structure
• Formed in 2000
• USDA Foods – Direct Delivery and Processed
• Lead Agency
• Governing Council – 9 members by region
• 228 RA’s = 231,075,526 TLS = $78M entitlement
• Direct Delivery, DoD Fresh, Pilot F & V, Processed
• Administrator• Manages data & website, customer service, state fee collections
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
How Districts Can Participate
• Application process annually• Amending USDA Foods Direct Delivery distribution & administrator contracts
• Governing Council approval
• Membership fee based on annual entitlement – 0.3%
• Potential engagement level
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Bids!
• Administration
• USDA Foods Direct Delivery distribution
• Processed USDA Foods and commercial equivalents• Market Basket – 2,000+ items – mid-year amendment for new items
• Manufacturer to distributor pricing
• Awards to all responsive & responsible bidders
• 41 processors, multiple distributors
• Delivered price via member district solicitation, smaller collaborative groups
• Annual meeting and vendor show combined
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
What Works? What Doesn’t Work?
• Many improvements last 3 years
• Annual training
• Communication
• Regular Governing Council meetings
• Webinars
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
If I could change anything now….
• Streamline USDA Foods order surveys
• Better manage high volume of transactions
• Automate more data management tasks
• Be more selective with membership
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Advice/Words of Wisdom
• Understand how the group works before you join
• Train, train, train your members
• Require members to participate more and be engaged in operations
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Questions & Discussion
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
Contact InformationDr. Lynnelle Grumbles, RD, SNS
CEO, Santa Clarita Valley School Food Services Agency – JPA
Santa Clarita, CA Ph (661) 295-1574 x103
© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA
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