Table of Contents
General Procurement Standards
1. This plan is adopted as a condition of the SFA’s participation in the USDA’s Child Nutrition Programs.
2. The SFA use procurement procedures that reflect state and local law while also ensuring compliance with applicable federal law.
The Food Service Manager is primarily responsible for overseeing all procurement for SFA’s food service department including any procurement conducted on behalf of the SFA. This responsibility includes, but is not limited to, the responsibilities set forth below:
1. Ensures that all SFA procurement transactions are conducted in a manner that provides full and open competition in accordance with federal law.
2. Managing contracts and overseeing vendors and/or ensuring that vendors perform in accordance with the terms, conditions, and specifications of vendor contracts and/or purchase orders.
3. Ensure that all contracts and applicable bids/quotes include the Buy American Provision.
4. Ensuring that all contractual and administrative issues arising out of procurements for the SFA’s food service department is handled in accordance with good administrative practice and sound business judgement.
5. Ensuring that sufficient records detailing the SFA’s procurement history are maintained and the records maintained for contracts include, at a minimum, the following records:
a. Rationale for methods of procurement
b. Selection of procurement of vendor
c. Basis for contract price
6. These records are maintained for at least 3 years after submission of the final Claim for Reimbursement for the fiscal year or longer if otherwise required by law.
1. Formal Purchase
If the amount of purchase is more than the State small purchase threshold currently valued at $50,000.00, formal procurement procedures will be used as required by 2 CFR 200.318-.326 and Utah State Procurement Code and Regulations 63G-6a. Or an approved state contracted vendor may be used.
The Formal Procurement Method can be time intensive, yet when making a high dollar purchase, the Formal Procurement Method should result in a purchase that is cost-effective, cost-justifiable, and defendable from a competitive procurement perspective.
Within formal procurement there are two formal procurement types available: Competitive Sealed Bidding (commonly referred to as sealed bidding which uses an Invitation for Bid or IFB) and Competitive Proposals (which uses a Request for Proposal or RFP.) Or using a state contracted vendor.
Both procurement types are designed to provide free and open competition and ensure that Federal funds—when used to purchase products and/or services—result in the best and most responsive product at the lowest possible price.
When using a formal procurement method an advertisement is required for all purchases. The advertisement for bids/proposals will run for 2 weeks and will contain:
a. General description of items to be purchased
b. Deadline for submission of questions and the date written responses will be provided including addenda to bid specifications, terms and conditions as needed
c. Date of pre-bid meeting, if provided, and if attendance is a requirement for bid award
d. Deadline for submission of sealed bids or proposals, and
e. Address of location where complete specifications and bid forms may be obtained.
In an IFB or RFP, each vendor will be given an opportunity to bid on the same specifications.
The developer of written specifications or descriptions for procurements will be prohibited from submitting bids or proposals for such products or services.
The IFB or RFP will clearly define the purchase conditions. The following list includes requirements, not exclusive, to be addressed in the procurement document.
a. Contract period
b. SFA is responsible for all contracts awarded
c. Date, time, and location of IFB/RFP opening
d. How vendor is to be informed of bid acceptance or rejection
e. Delivery schedule
f. Set forth requirements (terms and conditions) which bidder must fulfill in order for bid to be evaluated
g. Benefits to which the SFA will be entitled if the contractor cannot or will not perform as required
h. Statement assuring positive efforts will be made to involve minority and small business
i. Statement regarding the return of purchase incentives, discounts, rebates, and credits to the SFA’s non-profit Child Nutrition account
j. Contract provisions as required in 7 CFR 910.21(f) for all cost reimbursable contracts
k. Contract provisions as required in 7 CFR 210.16(a)(1-10) and 7 CFR 250.53 for Food Service Management Company contracts
l. Procurement instrument to be used are purchase orders from firm fixed prices after formal bidding
m. Price adjustment clause
n. Method of evaluation and type of contract to be awarded – solicitations using an invitation for bid are awarded to the lowest responsive and responsible bidder; requests for proposal are awarded to the most advantageous bid with price as the primary factor considered.
o. Method of award announcement and effective date
p. Specific bid protest procedures including contact information of person and address and the date by which a written protest must be received
q. Method of shipment or delivery upon contract award
r. Provision requiring contractor to maintain all required records for three years after final payment and all other matters are closed for all negotiated contracts
s. Signed statement of non-collusion
t. Provision requiring “Buy American” as outlined in 7 CFR Part 210.21(d); specific instructions for prior approval of all of non-domestic products.
u. Specifications and estimated quantities of products and services prepared by SFA and provided to potential contractors desiring to submit bids/proposals for products or services.
v. If any potential vendor is in doubt as to the true meaning of specifications or purchase conditions, interpretation will be provided, in writing, to all potential bidders.
w. The Food Service Director will be responsible to ensure all SFA procurements are conducted in compliance with applicable Federal, State, and local procurement regulations.
In awarding a RFP, a set of award criterion in the form of a weighted evaluation sheet will be provided to each bidder in the initial bid document materials. Price alone is not the sole basis for award, but remains the primary consideration among all factors when awarding a contract. Following evaluation and negotiations a firm fixed price or cost reimbursable contract is awarded.
2. Small Purchase
If the total amount of purchase is $3,000 to $50,000 in aggregate value, or over $1000 for an individual purchase, then small purchase procurement procedures will be used and requires a minimum of two quotes or bids. The names of the vendors offering quotations and bids and the date and amount of each quotation or bid shall be recorded and maintained as a governmental record. An approved state contracted vendor may be used.
The following procedures will be used when using a small purchase:
a. Written specifications will be prepared and provided to the vendor.
b. Each vendor will be given opportunity to provide a price quote on the same specifications
c. The Food Service Director will be responsible for contacting potential vendors when price quotes are needed.
d. Quotes awarded will be to the lowest and best quote based upon quality, service availability and price.
e. Quotes should contain the following information:
i. Date received or dates that the quoted price is valid, delivery date
ii. Company name, address, and salesperson
iii. Each item, description or specifications, unit, total price, and quantity listed
iv. Shipping charges
f. Quotes may be obtained and documented by printing pages from a website; however all quote elements should be documented. Better prices are usually obtained by contacting vendors directly. Telephone quotes must be documented and include all quote elements.
g. Prohibition against dividing a procurement into one or more smaller procurements.
h. Financial conflict of interest is prohibited (R33-24-105)
i. Personal relationship, favoritism, or bias participation prohibitions (R33-24-106)
3. Non-Competitive Proposal
The following procedures will be used if items are available only from a single source and the award of a contract is not feasible under small purchase, sealed bid or competitive negotiation.
a. The Food Service Director will be responsible for the documentation of records to fully explain the decision to use the non-competitive proposal. The records will be available for audit and review.
4. Procurement by Micro-Purchasing
A micro-purchase means a purchase of supplies or services using simplified acquisition procedures where the aggregate amount of the transaction does not exceed $3000 or the individual item purchase amount does not exceed $1000. Micro-purchases may be awarded without soliciting competitive quotations.
Consideration should be given to consolidating the acquisition of products or services when consolidation will result in more economical purchases. This is true even if consolidation increases the dollar amount over the micro-purchase threshold, and therefore requires a more complex procurement method. When appropriate, an analysis should be made to determine the most economical approach.
To the extent practicable, purchases must be distributed equitably among qualified suppliers. Price comparisons are not required, but the price should be considered reasonable.
Documentation must be kept for all purchases regardless of the procurement method used, including micro-purchases.
5. Emergency Purchases
If it is necessary to make a one-time emergency procurement to continue service or obtain goods, the purchase shall be made, and a log of all such purchases shall be maintained and the following emergency procedures shall be followed. At a minimum, the following emergency procurement procedures shall be documented:
a. Item name
b. Dollar amount
c. Vendor, and
d. Reason for emergency
The Food Service Director is responsible for handling an emergency purchase. Responsibilities include:
a. Ensuring that written specifications will be prepared.
b. Ensuring that the actual product is received.
c. Ensuring that a record of the emergency purchase procedure is maintained that includes the item name, dollar amount, vendor used and reason for emergency purchase.
The following conduct will be expected of all persons who are engaged in the awarding and administration of contracts supported by School Food and Nutrition Program Funds.
1. No employee, officer or agent of American Leadership Academy shall participate in the selection or in the award or administration of a contract supported by program funds if a conflict of interest, real or apparent, would be involved. Conflicts of interest arise when one of the following has a financial or other interest in the firm selected for the award:
a. The employee, officer or agent;
b. Any member of the immediate family;
c. His or her partner;
d. An organization which employs or is about to employ one of the above.
2. American Leadership Academy employees, officers or agents shall neither solicit nor accept gratuities, favors, or anything of monetary value from contractors, potential contractors, or parties to sub-agreements.