Procurement

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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.

Texas Department of Agriculture

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

Texas Department of Agriculture

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

Texas Department of Agriculture

Section 2: Phases of the Procurement Process 13

Planning

Texas Department of Agriculture

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

Section 2: Phases of the Procurement Process 16

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…

Section 2: Phases of the Procurement Process 18

Planning

Soliciting

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Awarding

Section 2: Phases of the Procurement Process 19

 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

Section 2: Phases of the Procurement Process 20



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:

Section 2: Phases of the Procurement Process 23

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

Section 2: Phases of the Procurement Process 25

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

Section 2: Phases of the Procurement Process 26

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)

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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?

Texas Department of Agriculture

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?

Texas Department of Agriculture

Section 3: Procurement Methods 33

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

Section 3: Procurement Methods 36

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

Section 3: Procurement Methods 38

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

Texas Department of Agriculture

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…

Texas Department of Agriculture

Section 3: Procurement Methods 45

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.

Texas Department of Agriculture

Section 3: Procurement Methods 46

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

Texas Department of Agriculture

Section 4: Record Keeping 51

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

Section 4: Record Keeping 52

State Agency Review  TDA will Assess Procurement Methods  During the application process  During an administrative review  Procurement Records review

Texas Department of Agriculture

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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