puzzle - school nutrition · 2018-01-18 · © copyright 2018 | school nutrition association |...

© Copyright 2018 | School Nutrition Association | School Nutrition Industry Conference | Jan 21-23 | New Orleans, LA

SOLVING YOURSCHOOL NUTRITION

PUZZLE


Co-Ops and GPOs: Your Questions Answered!

Monday, January 22, 2018

2:30 – 3:30PM


Dr. Lynnelle Grumbles, RD, SNSPanel Facilitator

Co-Ops and GPOs: Your Questions Answered!


Source: SNA, School Nutrition Operations Report 2016


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


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


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?


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


Today’s Speakers

• Courtney Haueter, JDProgram Analyst

USDA – Food and Nutrition Service, VA

• Timothy Goossens, SNSDirector

Laconia SD, NH


Meet the Experts

• Courtney Haueter, JD• Program Analyst, USDA-FNS, Alexandria, VA


Overview

• Types of group purchasing efforts

• The responsible procurement party

• Proper procurement procedures

• Adding parties to a contract

• New Guidance


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



• Group purchasing efforts identified

• Child Nutrition Program (CNP) Program operator-only and/or CNP State agency cooperative agreements

• Agents

• Third-party entities



Third-party entities

• State-run agreements

• Inter-entity agreements (consisting of non-CNP operators)

• Group Purchasing Organizations, Buying Organizations, and Third-Party Vendors


The responsible procurement party• Child Nutrition Program (CNP) Program operator-only and/or

CNP State agency cooperative agreements

• Agents

• Third-party entities


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


The responsible procurement party

• Third-Party entities

• Non-CNP State agency agreements

• Inter-agency agreements

• Group Purchasing Organizations, Buying Organizations, and Third-Party Vendors.


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)


Adding parties to a contract

• Properly procured contract

• Contract provision allowing additional parties

• Language should specify limitations of the extension of the piggybacking


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


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.


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?


Meet the Experts

• Tim Goossens, SNS• Food for Schools

• Coordinator of the New Hampshire Buying Group and theMassachusetts School Buying Group


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


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


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


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



• Biggest challenge is coming to consensus

• Second biggest challenge is member participation


If I could change anything now….

• Clarify (or relax) some of the procurement regulations

• More consistency state to state


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!


Meet the Experts

• Lynnelle Grumbles, PhD, RD, SNS• Lead Agency – Council Chair

• Super Co-Op• A California USDA Foods Cooperative


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


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


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



• Many improvements last 3 years

• Annual training

• Communication

• Regular Governing Council meetings

• Webinars


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


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


Contact InformationDr. Lynnelle Grumbles, RD, SNS

CEO, Santa Clarita Valley School Food Services Agency – JPA

Santa Clarita, CA Ph (661) 295-1574 x103

[email protected]

mailto:[email protected]


Thank You!Your feedback is critical.Please evaluate this session using the SNIC 2018 App

puzzle - school nutrition · 2018-01-18 · © copyright 2018 | school nutrition association |...

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