Great Lakes Farm to School Summit Procurement presentation 10 2813
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Transcript of Great Lakes Farm to School Summit Procurement presentation 10 2813
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Procuring Local Foodsfor Child Nutrition Programs
United States Department of Agriculture
Food and Nutrition Service
Christina Conell and
Sadie Mele
Great Lakes Region
Leadership Summit
October 28, 2013
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Sadie Mele, Program Specialist, Mountain Plains Regional Office
Christina Conell, Program Analyst
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Overview
» Procurement principles and regulations
» Procurement methods
» Sourcing locally, and correctly!
» The Geographic Preference option
» Incorporating local foods into school
meals: an example
» Resources
» Questions
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Procurement
principles and
regulations
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What is procurement?
Procurement is the purchasing of goods and services. The procurement process involves:
PlanningDrafting
Specifications
Advertising the
Procurement
Awarding a Contract
Managing the Contract
ProcurementPrinciples
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4 Key Concepts
1. Competition
2. Responsive and Responsible
3. American Grown
4. Know Your Federal, State and Local
Regulations
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1) Competition
»Competition is essential to
ensure low cost and good
quality of goods and services.
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1) Competition Killers
Do not…» Place unreasonable requirements on
firms;» Require unnecessary experience and
excessive bonding;» Give noncompetitive awards to
consultants;» Have organizational conflicts of interest;» Specify only brand name products; or,» Make arbitrary decisions in the
procurement process.
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2) Responsive and responsible
» Awards must be made to vendors that
are responsive and responsible
» Responsive means that the vendor submits a
bid that conforms to all terms of the
solicitation
» Responsible means that the vendor is capable
of performing successfully under the terms of
the contract
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3) The Buy American provision
» The National School
Lunch Act requires SFAs
to purchase
domestically grown and
processed foods to the
maximum extent
practicable.
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4) Procurement rules
» Be familiar with all procurement
requirements, at the federal, state and
local levels
» SFA is responsible for complying with all
levels of regulations.
» In some cases, state and federal regulations may be
in conflict with each other.
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Procurement
methods
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Procurement methods
InformalSmall Purchase
(Requires price quotes from at least 3 bidders)
FormalSealed Bids (IFBs)
& Competitive Proposals (RFPs)
(Requires public advertising)
≤ $150,000 > (Small Purchase Threshold)
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The formal procurement process
Develop solicitation.
Publicly announce the IFB/RFP.
Evaluate bidders using established
criteria.
Award the contract to the most
responsive and responsible bidder
at lowest price.
Manage the contract.
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Competitive sealed bidding
» Procurement by competitive sealed
bidding is done by issuing an invitation for
bid (IFB).
» Use it when:
» A complete, adequate, and realistic specification is
available.
» The contract can be awarded on the basis of price.
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Competitive proposals
» Procurement by competitive proposal is
done by issuing a request for proposal
(RFP).
» Use it when:
» Conditions aren’t appropriate for a sealed bid.
» Price won’t necessarily be the sole basis for the
award.
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The informal procurement process
Develop your specs in writing
Identify and notify at least 3 sources eligible, able, and willing to provide
products.
Evaluate bidders’ responses to your specs.
Determine most responsive and
responsible bidder at lowest price and
award contract.
Manage the contract.
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Small purchase procedure
» Use it when:
» The estimated amount of your purchase
falls below your small purchase
threshold.
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Bid documentation
Vendor Art’s Apples Olivia’s Orchard Apple Crunch Inc.
Price/box $40 $47 $37
» Written specification » Granny Smith, US. No. 1, 5 185 count boxes
per week for September-December
» Bid documentation» Write down each vendor’s bid and constraints
» Ex. Fresh whole Granny Smith apples
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Managing contracts
»Are you receiving the product
you contracted for?
»Is the product of good quality?
»Is the vendor delivering on
time?
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Sourcing locally, and correctly!
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Buying Local
1. WHAT: Which types of products?
2. WHERE: From which types of sources?
3. HOW: The mechanics of sourcing local
correctly.
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1) Local WHAT?
Vegetables Meat, Poultry
and Fish Beans,
Grains, and
Flour
DairyFruits
Eggs
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1) WHAT: Defining local
Ways to define local: » Miles
» County
» State
» Region
» Product-specific
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2) WHERE to get local foods
» Through distributors
» Through food service
management companies
» From food processors
» Through DoD Fresh
» From individual producers
» From producer co-ops/food
hubs
» From school gardens
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3) HOW: Sourcing locally, and correctly!
» Using geographic preference;
» Picking the low hanging fruit;
» Including related characteristics in specifications;
» Approaching only local sources under an informal
procurement;
» Including a desire for local items in distributor or
FSMC solicitations;
» Choosing local foods in the DoD Fresh catalog,
» Using USDA Foods to augment your local purchases;
and,
» Forward contracting.
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» Some local products, because of their
nature, are likely to be cheaper than
non-local competitors.
» Ask your providers where your food is
coming from—you might be
surprised!
Procure the easy ones first
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Use Specifications
You can include specifications such as
“harvested within 48 hours of delivery” that
will increase the chances that a local vendor
will win the contract.
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Other potential specifications
» When purchasing local foods, consider
specifying:
» Degree of ripeness or maturity
» Freshness (age)
» Condition upon receipt of product
» Temperature
» Size uniformity
» Other quality standards (such as “organic,” “no-till,”
“no-spray,” etc.)
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Example: San Diego Unified
Foods must be: » Grown on farms that are less than 50 acres in size and grow
more than five food crops at one time;» Grown on farms that utilize a majority of hand
harvesting, hand packing or human labor power in growing, harvesting. and packing of food;
» Delivered within 24 to 48 hours of harvest; » Delivered directly to multiple SDUSD school sites (not a
central warehouse). The number of drops is to be determined by the district on a case-by-case basis;
» Produce should be generally free from insect damage and decay; and,
» Product must be rinsed, cleaned and packed in appropriate commercial produce packaging, such as waxed cardboard boxes. Standard industry pack (case counts) is required and/or half packs are allowable when it comes to bundled greens.
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Approach only local vendors
» For purchases under your small purchase
threshold, you can get quotes from 3 (or
more) local farms or vendors.
» But remember:
» You need written specifications.
» Bid documentation
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Write Your Specifications
» Tomatoes – Tulsa, OK» Hydroponic
» Available 10 months of the year
» US No. 1, fully ripe, red color-stage 5-6
» 10 day shelf life
» Organic
» Delivered to 18 schools 2 days prior to service
» Proof of liability insurance due with bid
» GAP certified
» 36 cases per week
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Document the bids you receive
Vendor Tom’s Toms Vickie’s Vines Fresh Network
Date received July 1 July 6 July 10
Responsive and Responsible
Yes Yes No, can only deliver 5 months of year
Price/lb $2.20 $2.05 $2.75
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Splitting procurements
» SFAs cannot arbitrarily divide
purchases to fall below the small
purchase threshold.
» In some
instances, however, characteristics of
a product or market justify the need to
separate it from the overall food
procurement.
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Writing local into your distributor solicitation
» Distributors are vital!
» One-stop shop
» Delivery
» Most hold liability insurance
» To purchase local through a distributor:
» Include this desire in your solicitation
» Ask if any of products currently on your
contracted list are sourced local
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Distributor solicitation - Example
» Knox County Schools - Knoxville, TN
» Springfield District - Eugene, OR
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Writing local into your FSMC solicitation
» Food Service Management Company
Contract
» Must specify what types of local products and when
you would like them in the solicitation and contract.
» Cost reimbursable and fixed price contracts
» Cost reimbursable contracts require that FSMC follow
procurement regulations.
» Fixed price contracts are more flexible for the
recipient, but may be more difficult for the vendor to
manage.
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FSMC solicitation - Example
» Rochester County Schools, New Hampshire
» Connecting the dots to get local products
» South Bay Area, California
» Sodexo works with Fresh Point-San Francisco and
CAFF identifies producers within 125 miles
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Locally produced USDA Foods
» 100% American grown
» Every product is local to someone!
» Be aware of what is produced in your
region and order those products
» Explore state processors
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Working with DoD Fresh
» DoD Fresh offers an opportunity to use
USDA Foods entitlement dollars on
fresh produce
» DoD contracts with produce vendors across
the country
» Many vendors purchase regionally grown
produce
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FFAVORS
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Working with DoD Fresh - Example
» North Carolina» NC Dept. of Agriculture fosters relationships with growers
and DoD vendor.
» State even facilitates transportation from farm to DoD
vendor facility
» Connecticut» Holds an annual Know Your Farmer Meeting to facilitate
producer relationships with the DoD Vendor
» Texas» Texas Farm to School is DoD Fresh
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Using a forward contract
» Purchasing product before harvest
» Provides producer with a guarantee
» Ensures the farmer will plant and pack the supply needed
» Understand the risk
» What happens if the crop fails?
» Must follow competitive procurement process
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Using a forward contract - Example
» North Carolina
» Issues a solicitation for different products
every quarter.
» Not too far in advance, which allows for a
steady price and more predictable quantity.
» Enables districts to have a steady supply and
guarantees a market for growers.
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Donated Foods
» Procurement regulations do not
apply to donated foods
» Consider food safety issues and
menus before accepting foods
» Document receipt of goods
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Choosing a source and a mechanism
» You can target multiple sources with the
same mechanism.
» Several of the mechanisms can be used in
combination.
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The Geographic
Preference
option
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The Geographic Preference option
» Authorized by Section 4302 of
Public Law 110-246, the
Food, Conservation, and Energy
Act of 2008 (AKA the 2008 Farm
Bill)
» Final Rule published in April, 2011
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Bringing local into the cafeteria
» Geographic
preference can be
applied to most
school food
purchases for
unprocessed
agricultural
products.
USDA Foods
Cash Assistance
DOD Fresh
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Who and how to define local?
» School Food Authority defines local
» Local can be defined by:
» Region
» State
» Mileage
» Different definitions for different products
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What is “unprocessed”?
» Cooling, refrigerating, and freezing
» Peeling, slicing, dicing, cu
tting, chopping, shucking,and grinding
» Forming ground products into patties
» Drying and dehydrating
» Washing, packaging, vacuum packing, and bagging
» Adding preservatives to
prevent oxidation
» Butchering livestock or
poultry
» Pasteurizing milk
“Unprocessed” agricultural products retain their inherent character. These are the allowed food handling and preservation techniques:
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How to incorporate a geographic preference
» Define local.
» Decide how much “preference” local
products will receive.
» Determine what type of procurement
method to use.
» Be sure your solicitation makes perfectly
clear how the preference will be applied.
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Example 1: 1 Penny = 1 Point
Owen’s
Orchard
Apple Lane
Farms
Bob’s Best
Price $1.97 $2.05 $2.03
Meetsgeographic preference?
No Yes (10 points) No
Price with preference points
$1.97 $1.95 $2.03
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Example 2
Produce
Express
Ray’s
Produce
F&V
Distribution
Contract Price $32,000 $35,000 $34,000
% F&V Able to Provide From Within the State
20 80 50
Geographic Preference Points to Respondent able to meet >60% Local Items
No Yes (10% pref.)
No
Price for comparison $32,000 $31,500 $34,000
10% price preference will be awarded to any bidder that can source at least 60% of the products from within the state.
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Geo. pref. sliding scale
» 10 preference points will be awarded to
vendors able to provide over 70% local, 7
points for 50-69% and 5 points for 25-49%.
Sliding scale of percentage
local
Preference
points
70% and more local products 10
50-69% local products 7
25-49% local products 4
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Laurie’s
Legumes
Paula’s Pulses Gary’s Grains
Price = 40 30 35 40
Contractor ability to perform all
specifications
Product quality = 15
Delivery = 10
Packaging and Labeling = 5
25 30 30
Three references, past history = 10 10 10 10
Able to provide farm/facility tour
or classroom visits = 5
0 5 5
Able to provide state of origin on
all products = 5
0 5 5
Ability to provide sourced within
the state products = 10
0 10 7
100 possible points 65 95 97
Example 3: Geo. Pref. in an RFP
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Incorporating local foods into school meals: an example
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Monday Tuesday Wednesday Thursday Friday
Submarine Sandwichon Whole Wheat Roll
Refried Beans
Jicama
Green Pepper Strips
Cantaloupe wedges
Skim Milk
Whole Wheat Spaghetti with Meat Sauce
Whole Wheat Roll
Green Beans
Broccoli &Cauliflower
Kiwi Halves
Low-fat Milk
Chef Salad
Whole Wheat Soft Pretzel
Corn
Baby Carrots
Banana
Skim Milk
Oven-Baked Fish nuggets
Whole Wheat Roll
Mashed Potatoes
Steamed Broccoli
Canned Peaches
Skim Milk
Whole Wheat Cheese Pizza
Baked Sweet Potato Fries
Grape tomatoes
Applesauce
Low-fat Milk
Evolution of a local menu
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Monday Tuesday Wednesday Thursday Friday
Submarine Sandwichon Whole Wheat Roll
Refried Beans
Jicama
Green Pepper Strips
Cantaloupe wedges
Skim Milk
Whole Wheat Spaghetti with Meat Sauce
Whole Wheat Roll
Green Beans
Broccoli &Cauliflower
Kiwi Halves
Low-fat Milk
Chef Salad
Whole Wheat Soft Pretzel
Corn
Baby Carrots
Banana
Skim Milk
Oven-Baked Fish nuggets
Whole Wheat Roll
Mashed Potatoes
Steamed Broccoli
Canned Peaches
Skim Milk
Whole Wheat Cheese Pizza
Baked Sweet Potato Fries
Grape tomatoes
Strawberries
Low-fat Milk
Harvest of the month: Strawberriesfrom Seascape Farm.
Evolution of a local menu
![Page 64: Great Lakes Farm to School Summit Procurement presentation 10 2813](https://reader033.fdocuments.in/reader033/viewer/2022042602/5597278d1a28ab140e8b4845/html5/thumbnails/64.jpg)
Monday Tuesday Wednesday Thursday Friday
Submarine Sandwichon Whole Wheat Roll
Refried Beans
Jicama
Green Pepper Strips
Cantaloupe wedges
Skim Milk
Whole Wheat Spaghetti with Meat Sauce
Whole Wheat Roll
Green Beans
Broccoli &Cauliflower
Kiwi Halves
Low-fat Milk
Chef Salad
Whole Wheat Soft Pretzel
Corn
Baby Carrots
Banana
Skim Milk
Oven-Baked Fish nuggets
Whole Wheat Roll
Mashed Potatoes
Steamed Broccoli
Canned Peaches
Skim Milk
Whole Wheat Cheese Pizza
Baked Sweet Potato Fries
Grape tomatoes
Strawberries
Low-fat Milk
Evolution of a local menu
![Page 65: Great Lakes Farm to School Summit Procurement presentation 10 2813](https://reader033.fdocuments.in/reader033/viewer/2022042602/5597278d1a28ab140e8b4845/html5/thumbnails/65.jpg)
Monday Tuesday Wednesday Thursday Friday
Submarine Sandwichon Whole Wheat Roll
Refried Beans
Jicama
Green Pepper Strips
Cantaloupe wedges
Skim Milk
Whole Wheat Spaghetti with Meat Sauce
Whole Wheat Roll
Green Beans
Broccoli &Cauliflower
Kiwi Halves
Low-fat Milk
Chef Salad
Whole Wheat Soft Pretzel
Corn
Carrots
Banana
Skim Milk
Oven-Baked Fish nuggets
Whole Wheat Roll
Mashed Potatoes
Steamed Broccoli
Canned Peaches
Skim Milk
Whole Wheat Cheese Pizza
Baked Sweet Potato Fries
Grape tomatoes
Strawberries
Low-fat Milk
Evolution of a local menu
![Page 66: Great Lakes Farm to School Summit Procurement presentation 10 2813](https://reader033.fdocuments.in/reader033/viewer/2022042602/5597278d1a28ab140e8b4845/html5/thumbnails/66.jpg)
Monday Tuesday Wednesday Thursday Friday
Submarine Sandwichon Whole Wheat Roll
Refried Beans
Jicama
Green Pepper Strips
Cantaloupe wedges
Skim Milk
Whole Wheat Spaghetti with Meat Sauce
Whole Wheat Roll
Green Beans
Broccoli &Cauliflower
Kiwi Halves
Low-fat Milk
Chef Salad
Whole Wheat Soft Pretzel
Corn
Carrots
Banana
Skim Milk
Oven-Baked Fish nuggets
Whole Wheat Roll
Mashed Potatoes
Steamed Broccoli
Canned Peaches
Skim Milk
Whole Wheat Cheese Pizza
Baked Sweet Potato Fries
Grape tomatoes
Strawberries
Low-fat Milk
Evolution of a local menu
![Page 67: Great Lakes Farm to School Summit Procurement presentation 10 2813](https://reader033.fdocuments.in/reader033/viewer/2022042602/5597278d1a28ab140e8b4845/html5/thumbnails/67.jpg)
Monday Tuesday Wednesday Thursday Friday
Submarine Sandwichon Whole Grain Roll
Refried Beans
Jicama
Green Pepper Strips
Cantaloupe wedges
Skim Milk
Whole Wheat Spaghetti with Meat Sauce
Whole Wheat Roll
Green Beans
Broccoli &Cauliflower
Kiwi Halves
Low-fat Milk
Chef Salad
Whole Wheat Soft Pretzel
Corn
Carrots
Banana
Skim Milk
Oven-Baked Fish nuggets
Whole Grain Roll
Mashed Potatoes
Steamed Broccoli
Canned Peaches
Skim Milk
Whole Wheat Cheese Pizza
Baked Sweet Potato Fries
Grape tomatoes
Strawberries
Low-fat Milk
Evolution of a local menu
![Page 68: Great Lakes Farm to School Summit Procurement presentation 10 2813](https://reader033.fdocuments.in/reader033/viewer/2022042602/5597278d1a28ab140e8b4845/html5/thumbnails/68.jpg)
Monday Tuesday Wednesday Thursday Friday
Submarine Sandwichon Whole Grain Roll
Refried Beans
Jicama
Fresh Peas
Cantaloupe wedges
Skim Milk
Whole Wheat Spaghetti with Meat Sauce
Whole Wheat Roll
Green Beans
Broccoli &Cauliflower
Kiwi Halves
Low-fat Milk
Chef Salad
Whole Wheat Soft Pretzel
Corn
Carrots
Banana
Skim Milk
Oven-Baked Fish nuggets
Whole Grain Roll
Mashed Potatoes
Steamed Broccoli
Canned Pears
Skim Milk
Whole Wheat Cheese Pizza
Baked Sweet Potato Fries
Grape tomatoes
Strawberries
Low-fat Milk
Evolution of a local menu
![Page 69: Great Lakes Farm to School Summit Procurement presentation 10 2813](https://reader033.fdocuments.in/reader033/viewer/2022042602/5597278d1a28ab140e8b4845/html5/thumbnails/69.jpg)
Monday Tuesday Wednesday Thursday Friday
Local Lentil PattyWhole Grain Roll
Refried Beans
Jicama
Fresh Peas
Cantaloupe wedges
Skim Milk
Whole Wheat Spaghetti with Meat Sauce
Whole Wheat Roll
Green Beans
Broccoli &Cauliflower
Kiwi Halves
Low-fat Milk
Chef Salad
Local SpanishRice with corn
Carrots
Banana
Skim Milk
Oven-Baked Local Fish Sandwich on a Whole Grain Roll
Mashed Potatoes
Steamed Broccoli
Canned Pears
Skim Milk
Whole Wheat Cheese Pizza
Baked Sweet Potato Fries
Grape tomatoes
Strawberries
Low-fat Milk
Evolution of a local menu
![Page 70: Great Lakes Farm to School Summit Procurement presentation 10 2813](https://reader033.fdocuments.in/reader033/viewer/2022042602/5597278d1a28ab140e8b4845/html5/thumbnails/70.jpg)
![Page 71: Great Lakes Farm to School Summit Procurement presentation 10 2813](https://reader033.fdocuments.in/reader033/viewer/2022042602/5597278d1a28ab140e8b4845/html5/thumbnails/71.jpg)
Farm to school resources
![Page 72: Great Lakes Farm to School Summit Procurement presentation 10 2813](https://reader033.fdocuments.in/reader033/viewer/2022042602/5597278d1a28ab140e8b4845/html5/thumbnails/72.jpg)
Resources
» Geographic Preference Q&As
» Federal procurement regulations
» State and local procurement rules and
guidance
» Washington State Department of
Agriculture Guide
» National Food Service Management
Institute Online Training
![Page 73: Great Lakes Farm to School Summit Procurement presentation 10 2813](https://reader033.fdocuments.in/reader033/viewer/2022042602/5597278d1a28ab140e8b4845/html5/thumbnails/73.jpg)
Fact Sheets
![Page 74: Great Lakes Farm to School Summit Procurement presentation 10 2813](https://reader033.fdocuments.in/reader033/viewer/2022042602/5597278d1a28ab140e8b4845/html5/thumbnails/74.jpg)
FNS staff are here to help!
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