Procurement. TASN June 23, Presented by: Jackie Cantu, Compliance Coordinator Elizabeth Gonzales, Commodity Operations Director

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1 Procurement TASN June 23, 2015 Presented by: Jackie Cantu, Compliance Coordinator Elizabeth Gonzales, Commodity Operations Director

2 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.

3 Procurement Resources 3 (TDA Food and Nutrition) Administrative Reference Manual (ARM) (National Food Service Management Institute) Online courses Procurement in the 21 st century

4 Class Outline 4 Background Phases of the Procurement Process Procurement Methods Record Keeping Summary

5 Acronyms 5 SNP School Nutrition Programs CE Contracting Entity FSMC Food Service Management Company IFB Invitation for Bid OMB Office of Management and Budget RFP Request for Proposal TDA USDA United States Department of Agriculture

6 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.

7 1 Background

8 Procureme ntis a multi-step process for obtaining goods, products, and/or services in exchange for money or value.

9 Why Procure? Accountability to taxpayers Higher quality goods and services for a lower price

10 Components of good procurement Free and Open Competition Fairness and Integrity Transparency Responsive and Responsible

11 11

12 Procurement Regulations 7 CFR Parts 3016 and 3019 OMB Circulars (A-21, A-50, A-87, A-89, A-102, A-110, A-122 and A-133) 12 Super-Circular 2 CFR 200

13 2 Phases of Procurement Process

14 Phases of Procurement Process Manage Award Solicit Planning

15 Procurement Plan Planning Solicit Award Manage 15

16 Forecasting What is needed and when Revenue and cost g 1 Plannin

17 2 Solicit 17 An effective solicitation will.. Provide detailed specifications Use appropriate procurement method Clearly describe deliverables

18 Selection of responsive and responsible contractors. Pre-award 3 Award reviews. 18

19 4 Manage 19 Effective contract administration provides the CE with regular feedback on contractor performance.

20 Procurement Plan 1. Identifies each action in a proposed procurement. 20

21 3 Procurement Methods

22 Procurement Methods Informal Formal Small Purchase Procedures 2. Micro-Purchases 1. Competitive Sealed Bidding 2. Competitive Proposals 3. Noncompetitive Proposals

23 Greater than Must use a formal procurement method Simplified Acquisition ($50,000) Threshold May use an informal procurement method Less than or equal 23

24 A CE is making food purchases with an aggregate cost of $50,000. Should they May use an informal use an informal or formal procurement method. procurement method? 24

25 A CE is in a state that has a simplified acquisition The local simplified threshold of $50,000, and a local threshold of $25,000, acquisition threshold of yet the Federal threshold is $25,000. $150,000. Which simplified threshold must the CE use? 25

26 Micro-Purchases Informal 26 Defined in 2 CFR Part Procurement Aggregate dollar amount does not exceed $3000 Must distribute equitably among qualified suppliers

27 Small Purchase Procedures Informal 27 Develop written Procurement specifications Price quotes from at least 3 vendors Award contract Document all procedures

28 Procurement Competitive Sealed Bidding Complete specifications. More than one qualified source willing and able to compete. Responsive bids differ only in price. Negotiation not used. Formal 28

29 Competitive Proposals RFP Proposal Procurement Formal Source selection Contract 29

30 1: When a single bid or offer received. 2: More than one bid/offer received but none responsive. Use of Noncompetitive Proposals 3: Public exigency or 4: Sole source procurement. emergency.

31 4 Record Keeping

32 Record Retention Five year record retention: Final contract renewal period has expired or final payment is recorded. Bid protests, litigation, or 32 audits may extend

33 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 33 Contract changes

34 State Agency Review 34

35 5 Summary

36 Procurement Plan and Code of Conduct Below the simplified acquisition threshold Above the simplified acquisition threshold Informal Micro-purchase threshold (< $3,000) Advertise, obtain & document quotes Develop solicitation documents (specifications, estimated quantities, terms/conditions/ provisions/evaluation criteria) Evaluate & Award Formal Develop solicitation documents (IFB,RFP)(specifications, estimated quantities, terms/conditions/ provisions/ evaluation criteria) Publicly publish solicitation Evaluate & Award Fixed price or costreimbursable contract Contract Administration/Performance Management Process

37 Acknowledgment Statement 37 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.

38 The s Food and Nutrition Division is funded by the U.S. Department of Agriculture, Food and Nutrition Service. The U.S. Department of Agriculture prohibits discrimination against its customers, employees, and applicants for employment on the bases of race, color, national origin, age, disability, sex, gender identity, religion, reprisal, and where applicable, political beliefs, marital status, familial or parental status, sexual orientation, or all or part of an individual s income is derived from any public assistance program, or protected genetic information in employment or in any program or activity conducted or funded by the Department. (Not all prohibited bases will apply to all programs and/or employment activities.) If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, found online at or at any USDA office, or call (866) to request the form. You may also write a letter containing all of the information requested in the form. Send your completed complaint form or letter to us by mail at U.S. Department of Agriculture, Director, Office of Adjudication, 1400 Independence Avenue, S.W., Washington, D.C , by fax (202) or at Individuals who are deaf, hard of hearing or have speech disabilities may contact USDA through the Federal Relay Service at (800) ; or (800) (Spanish). USDA is an equal opportunity provider and employer. 38

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