BUYING GOODS AND SERVICES Child and Adult Care Food Program (CACFP)
Acknowledgment Statement 2
You understand and acknowledge that:
the training you are about to take does not cover the entire scope of the program and that you are responsible for knowing and understanding all handbooks, manuals, alerts, notices and guidance, as well as any other forms of communication that provide further guidance, clarification or instruction on operating the program.
Texas Department of Agriculture
CACFP Procurement Resources 3
www.squaremeals.org (TDA Food and Nutrition) CACFP
Handbook; Section 7000 and Section
3000
www.theICN.org (Institute of Child Nutrition) Online
courses Procurement in the 21st century Texas Department of Agriculture
Class Outline 4
Background Phases of the Procurement Process Procurement Methods Record Keeping
Texas Department of Agriculture
Acronyms 5
CACFP – Child and Adult Care Food Program CE – Contracting Entity IFB – Invitation for Bid RFP – Request for Proposal TDA – Texas Department of Agriculture USDA – United States Department of Agriculture
Texas Department of Agriculture
Objectives 6
By the end of the training you should be able to: list the components of good procurement; locate where procurement regulations are found; list and explain the phases of the procurement process; and identify the five procurement methods and explain when each is used.
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Section 1: Background
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Section 1: Background 8
Procurement A multi-step process for buying goods and services.
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Section 1: Background 9
Why Procure? Accountability to taxpayers Fosters Competition
More funds available to feed hungry children Know Your Why Texas Department of Agriculture
Section 1: Background 10
Components of Good Procurement Responsive and Responsible Contractors
Free and Open Competition
Fairness and Integrity
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Transparency
Section 1: Background 11
Federal Procurement Regulations Super-Circular 2 CFR 200 CACFP: 7 CFR 226 & FNS 796
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Section 2: Phases of the Procurement Process
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Section 2: Phases of the Procurement Process 13
Planning
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Section 2: Phases of the Procurement Process 14
What is needed When is it needed How much will it cost How will you pay * Remember! Items must be on F&N approved budget Texas Department of Agriculture
Planning
Forecasting
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Review past program Review current program
Project future needs
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Planning
Forecasting
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Planning
Soliciting
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Section 2: Phases of the Procurement Process 17
To m a ke a r e q u e s t fo r s o m e t h i n g yo u wa n t o r n e e d
Solicitation = Document
An ef f ective solicita tion will…
P ro v i d e d e t a i l e d s p e c i f i c a t i o n s
U s e a p p ro p r i a t e p ro c u r e m e n t m e t h o d C l e a r l y d e s c r i b e d e l i ve ra b l e s Texas Department of Agriculture
Soliciting
Definition…
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Planning
Soliciting
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Awarding
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Choosing the winner
Two impor tant elements
Re s p o n s i ve a n d Re s p o n s i b l e c o n t ra c t o r s
T DA P r e - Awa r d Re v i ew s Texas Department of Agriculture
Awarding
E va l u a t i n g b i d s o r p ro p o s a l s
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A n o n c o m p e t i t i ve p ro p o s a l i s r e q u e s t e d
A CE submits a request to limit the area of competition
T h e p ro c u r e m e n t i s d e e m e d a s o l e s o u r c e Texas Department of Agriculture
Awarding
TDA MUST conduct a pre -award review when:
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Planning
Soliciting
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Awarding
Managing
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Quantity
Quality
Timeliness
Correct Location
Adequate Substitutions Texas Department of Agriculture
Managing
Effective contract management ensures:
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Planning
Soliciting
Texas Department of Agriculture
Awarding
Managing
Procurement Plan
Section 2: Phases of the Procurement Process 24
Procurement Plan
Fo r e c a s t i n g a n d s c h e d u l i n g p u r c h a s e s
P ro c u r e m e n t m e t h o d s fo r e a c h p u r c h a s e
E va l u a t i o n C r i t e r i a
M e t h o d s fo r a wa r d i n g a n d m a n a g i n g c o n t ra c t
P ro t e s t p ro c e d u r e s t o r e s o l ve a ny d i s p u t e s
Code of Conduct Texas Department of Agriculture
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Code of Conduct Exclude employees from procurement process when there is a possibility for a conflict of interest
Prohibit employees from soliciting and/or receiving gifts from prospective contractors Set standards for acceptable gifts Provide for disciplinary actions to be taken in the event there is a violation Texas Department of Agriculture
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Code of Conduct Tom is responsible for procurement within his organization. The CE tells him that he wants him to contract with a vendor for the purchase of vended meals. Tom says that he and his wife own a company that sells vended meals and that he would be happy to provide vended meals.
Texas Department of Agriculture
Section 2: Phases of the Procurement Process 27
Code of Conduct Tom receives a free vacation to a beach resort for steering a contract for milk to a certain vendor. The vacation is not recorded in the organization's books. However, the organization may be affected by paying higher prices for goods or services or for receiving sub-standard products.
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Section 3: Procurement Methods
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Procurement Methods
Informal 1. Small Purchase 2. Micro Purchase
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Formal 1. Competitive Sealed Bidding 2. Competitive Proposals 3. Non Competitive Proposals
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Greater than
Section 3: Procurement Methods Must use a formal procurement method
Small Purchase Threshold May use an informal procurement method Texas Department of Agriculture
Less than or equal
($50,000)
Section 3: Procurement Methods 31
A CE is making food purchases with an The CE may an$50,000. informal aggregate cost ofuse under Should they use an informal or formal procurement method. procurement method?
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Section 3: Procurement Methods 32
The Federal small purchase threshold is $150,000. The state of Texas has a The local small purchase threshold of $50,000, and locally the threshold is $25,000. Which small threshold of $25,000. purchase threshold must the CE use?
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Infor mal: Micro-Purc hases Defined in 2 CFR part 200.67 A g g r e ga t e d o l l a r a m o u n t d o e s n o t exc e e d $3500 C a n b e a wa r d e d w i t h o u t s o l i c i t i n g c o m p e t i t i ve pricing Must distribute equitably among qualified s u p p l i e r s ( s p r e a d t h e we a l t h ) Texas Department of Agriculture
Section 3: Procurement Methods 34
Infor mal: Micro-Purc hases
Micro Purchase Threshold
Grocery bill
Texas Department of Agriculture
$3500
Week 1
$2500 Week 2
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Infor mal: Small Purc hases D e ve l o p w r i t t e n s p e c i f i c a t i o n s P r i c e q u o t e s f ro m a t l e a s t 3 ve n d o r s Awa r d c o n t ra c t o r b u y t h e g o o d s / s e r v i c e s
D o c u m e n t a l l p ro c e d u r e s Texas Department of Agriculture
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Infor mal: Small Purc hases $4800 Small Purchase $50,000 Threshold
$5000 Micro Purchase $3500 Threshold
$5300 $5200 $4700
$4500 Texas Department of Agriculture
Section 3: Procurement Methods 37
For mal: Competitive Sealed Bidding Complete specifications Re s p o n s i ve b i d s d i f f e r o n l y i n p r i c e More than one qualified source willing and able to compete Negotiation not used Texas Department of Agriculture
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For mal: Competitive Proposal
RFP
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Proposal 1. Technical 2. Cost
Vendor selection
Contract
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Item only Public available Emergency from or Urgent single need source Must be expressly
authorized by TDA Competition has been deemed inadequate Texas Department of Agriculture
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Aggregate-The total cost of a single transaction
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Section 3: Procurement Methods 41
Aggregate
$2300 $1300 Texas Department of Agriculture
$1000
Aggregate
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Aggregate $1400
$1300
$5000 $1000
Texas Department of Agriculture
$1300
Aggregate
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Aggregate
$4500 X 12 months
Aggregate Texas Department of Agriculture
Section 3: Procurement Methods 44
Intent
Your intent must be clearly identified in the Procurement Plan and must not attempt to circumvent procurement rules. Remember why we procure… Let’s help Mary decide if her intent meets this criteria…
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Intent
Mary has three grocery stores within a twenty mile radius herismain facility: Art’sMary Grocery, Foods, and No! of This not acceptable. mustGalaxy use micro Superfood. She notesand in her procurement plan that purchasing procedures equitably distribute her she intends to use micro purchasing procedures to purchase purchases among qualified suppliers. groceries only from Art’s Grocery because she is more familiar with the layout of the store and she feels this would save time while grocery shopping.
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Intent
Mary has three grocery stores within a twenty mile radius of herMary maincan facility: Grocery, Galaxyplan Foods, Yes! noteArt’s in her procurement thatand she Superfood. Sheatnotes her procurement plan thatdue she to will only shop Art’sinGrocery and Superfood intends to quality use the of micro purchasing purchase the poor Galaxy Foods’procedures products. toBut she groceries only Art’s Grocery andchecks Superfood because also should befrom conducting periodic to see if her past documented experience with Galaxy Foods has quality has improved. consistently demonstrated a poor quality of both meat and produce.
Texas Department of Agriculture
Section 3: Procurement Methods 47
Intent
Mary has decided that she wants to purchase vended meals for all of her sites. She found a vendor who will deliver the case meals everyintent day istoclearly each to of circumvent her sites for No! In this Mary’s $3000 per week. procurement rules. The vendor wants Mary to sign a 1year long contract, but Mary doesn’t want to go through the hassle of the procurement process for the meals. So she pays vendor on a weekly basis.
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Section 4: Record Keeping
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Section 4: Record Keeping 50
Three-Year Record Retention Final contract renewal period has expired or final payment is recorded
Exceptions B i d p ro t e s t s, l i t i ga t i o n , o r a u d i t s m ay ex t e n d r e t e n t i o n p e r i o d
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Examples of Records to Keep
Written rationale for method of procurement RFP or IFB Selection of contract type Bidding and negotiation history Basis for contractor selection TDA approval to support lack of competition when bids are not obtained Contract changes Texas Department of Agriculture
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State Agency Review TDA will Assess Procurement Methods During the application process During an administrative review Procurement Records review
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Section 4: Record Keeping 53
State Agency Review Penalties for Noncompliant Contracts: Disallowance of costs Termination of contract Request CE to issue a “stop work” order Placement into a serious deficiency process Or other actions deemed appropriate
Texas Department of Agriculture
Acknowledgment Statement 54
You understand and acknowledge that:
the training you have completed does not cover the entire scope of the program; and that you are responsible for knowing and understanding all handbooks, manuals, alerts, notices and guidance, as well as any other forms of communication that provide further guidance, clarification or instruction on operating the program.
Texas Department of Agriculture
In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, sex, disability, age, or reprisal or retaliation for prior civil rights activity in any program or activity conducted or funded by USDA. Persons with disabilities who require alternative means of communication for program information (e.g. Braille, large print, audiotape, American Sign Language, etc.), should contact the Agency (State or local) where they applied for benefits. Individuals who are deaf, hard of hearing or have speech disabilities may contact USDA through the Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in languages other than English. To file a program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, (AD-3027) found online at: http://www.ascr.usda.gov/complaint_filing_cust.html, and at any USDA office, or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by: (1) mail: U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, SW Washington, D.C. 20250-9410; (2) fax: (202) 690-7442; or (3) email:
[email protected]. This institution is an equal opportunity provider.
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