Procurement Process for School Nutrition ProgramsUTRGV COORDINATED PROGRAM IN DIETETICS

WEDNESDAY, NOVEMBER 11, 2015

Objectives

• Define Procurement

• Phases of the Procurement Process

• Procurement Methods

• What is a Purchasing Cooperative

• Procurement Needs of School Nutrition Programs

• How RDN’s Can Assist in the Procurement Process

Procurement

• A multi-step process for obtaining goods, products and/or services in exchange for money or value.

• Procurement Process Flowchart

• Outcome: oAccountability to taxpayersoHigher quality goods and services for a lower price

The Rule Makers • Federal Government

oEducation of General Administration Regulations (EDGAR) Office of Management and Budget (OMB) Guidance: 2 CFR 200oUSDA

• State GovernmentoTexas Education Code: Section 44.031oTexas Department of Agriculture: ARM, Section 17

oLocal Government

Components of Procurement

Supports Free & Open Competition

Maintains a Transparent

Process

Upholds Fairness & Integrity

Solicits Responsive & Responsible

Suppliers

Phases of the Procurement Process

Plan Solicit Award Manage

Procurement Process: Plan

• ForecastingoWhat is needed and how much? Scope of WorkSpecifications

oHow and When?Terms and Conditions

oProjected revenue?oProject cost?

Procurement Process: Solicit• Advertise

oRequirement: Texas Education Code 44.031 (g) Notice of the time by when and place where the bids or proposals, or the responses to a request for qualifications, will be received and opened shall be published in the county in which the district's central administrative office is located, once a week for at least two weeks before the deadline for receiving bids, proposals, or responses to a request for qualifications. If there is not a newspaper in that county, the advertising shall be published in a newspaper in the county nearest the county seat of the county in which the district's central administrative office is located. In a two-step procurement process, the time and place where the second-step bids, proposals, or responses will be received are not required to be published separately.

• Ensure components of procurement are meet• Pre-bid meetings

Procurement Process: Award

• Select responsive and responsible supplier(s)/vendor(s)oReview of proposal/bidDid they agree to the terms and conditionsDo they have any deviations/exceptionsDid they meet the bid specifications

oEvaluation conducted by a Committee oInterviews, demonstrations and/or testing of product

Procurement Process: Manage

• Monitors supplier/vendor performanceo Are they meeting the terms and conditions of the

contract?

o Are products delivered as specified?

• Records Retentiono 5 years after final contract renewal period or final

payment is made

Procurement MethodsInformal:• Micro purchaseo Does not exceed $3,000 in aggregate

o Must Distribute equitably among qualified suppliers

• Small purchase procedureso Less than or equal to $50,000 in aggregate

o Have written specifications

o Must obtain 3 price quotes

o Document all procedures

Formal:• Competitive sealed biddingo Only differ in price

o No negotiation

• Competitive proposalso Uses evaluation criteria

o Able to negotiate

• Non-competitive proposalso Public exigency or emergency

o Sole source

o Only 1 offer received, or no offers responsive

Procurement Process

SAMPLE PURCHASING LEVELS AND REQUIREMENTS

Purchase Commitment Amount Support Required Additional

Forms RFP/RFQ Board Approval* Advertising

For purchases Less than $3,000.00 - Micro Purchase

1 QUOTE EDGAR NOT REQUIRED NOT REQUIRED

NOT REQUIREDNOT REQUIRED

*Is required in the aggregate at $50K

For purchases of$3,000.01 to $50,000.00* 3 WRITTEN QUOTES QUOTE FORM NOT REQUIRED

NOT REQUIREDNOT REQUIRED

*Is required in the aggregate at $50K

For purchases over $50,000.00

FORMAL BIDS (Education Code 44.031) REQUIRED AGENDA ITEM REQUIRED REQUIRED

2 consecutive weeks

For purchases over $150,000.00

FORMAL BIDS

REQUIRED AGENDA ITEM REQUIRED REQUIRED 2 consecutive weeks(Education Code 44.031)

EDGAR

PURCHASING COOPERATIVE 3 QUOTES if not line item bid QUOTE FORM REQUIRED OF THE

COOPERATIVEREQUIRED OF THE

COOPERATIVEREQUIRED OF THE

COOPERATIVE

SOLE SOURCE PURCHASE 1 QUOTE SOLE SOURCE AFFIDAVIT NOT REQUIRED NOT REQUIRED NOT REQUIRED

* Subject to school district's local procurement policy

Purchasing Cooperatives

A group of people or entities join together to accomplish all or part of the steps in the procurement process.• Goal: increase buying power, reduce

costs, and improve the quality of products and services available to its members.

• Requires an Interlocal Agreement and Board Resolution

Purchasing Cooperatives

• Success: dependent on the members’ participation in product selection and the use of compromise to reach consensus.

• Effectiveness: dependent upon the members’ agreement on quality, quantity, descriptions of the products, and the terms and conditions of the solicitation.

Purchasing Cooperatives

Advantages:• Increased purchasing power

• New menu items

• Labor reduction

• Networking opportunities

• Procurement decisions by Advisory Council

Disadvantages:• Consensus among members

• Deliveries

• Minimum cases

• Storage

• Elimination of distributors

• Administrative costs

Child Nutrition Program – South Texas Cooperative• The South Texas Cooperative was established on September 8,

1999, and continues to play an integral part in achieving healthy school meals and efficient business practices by ensuring high quality, customer satisfying, cost effective food and supplies for its members.

• The primary focus of the CNP-STC is to assist participating members in the administration of a fiscally sound School Nutrition Program, and compliance with bid law requirements.

• The CNP-STC acts as a coordinating center for all bids/proposals; authority for such services is granted by Texas Education Code § 8.053.

Procurement Needs of School Nutrition Programs

• Specialized products and/or services needed

• Multiple Federal and State regulations to followoPurchasing/procurementoProgram specific -- USDA/TDA:Healthy Hunger Free Kids Act of 2010Nutrition StandardsSmart Snacks in SchoolsAllowable and Unallowable costs, ARM section 14.15-14.23

• Example SNP Food Items RFP

How can RDN’s assist in the procurement process for School

Nutrition Programs?

Questions?

Lori Atwood Ramos, MBA, RDNPurchasing Coordinator

Region One Education Service Center956.984.6123

laramos@esc1.net