Procuring Local Foods For Farm to School Programs Southeast Ohio - - PowerPoint PPT Presentation

Procuring Local Foods

For Farm to School Programs

Southeast Ohio Farm-to-School Conference | March 3, 2016

Welcome!

What Is Procurement?

Procurement is the purchasing of goods and services. The procurement process involves:

Planning Drafting Specifications Advertising the Procurement Awarding a Contract Managing the Contract

Procurement Principles

Procurement Principles and Regulations

The Buy American Provision 1

• The National School Lunch Act requires SFAs

to purchase domestically grown and processed foods to the maximum extent practicable

• Spend taxpayer dollars

as efficient as possible

• States and local regulations may differ
• Apply the most restrictive

2

State and Local Procurement Policies

3 Competition

• Competition is essential to ensure the best

cost and quality of goods and services

• All potential suppliers are on a level playing

field

4 Responsive and Responsible

Awards must be made to vendors that are responsive and responsible

• Responsive: Vendors submit bids that conforms to

all terms of the solicitation

• Responsible: Vendors are capable of performing

successfully under the terms of the contract

Procurement Methods

REQUEST FOR INFORMATION (RFI)

• Collect written information about the capabilities of

various suppliers

• Not used to procure products
• Benefits:

» Survey of available products » Can direct your procurement method » Does not require commitment to purchase » Can increase likelihood that farmers will respond to bids

RFI Example

• In 2013, School Food FOCUS, a national collaborative of large school

districts, issued an RFI on behalf of five large urban school districts in the Midwest. The RFI was a way for FOCUS to explore the potential to expand offerings of locally grown and processed fresh and frozen fruits and vegetables for school meal programs. The RFI clearly stated that any responses were non-binding and that the information collected would be used to identify local products which might be purchased in the future. While issuing an RFI may be beyond the capacity of a school district, this is a great example

• f how community partners can help districts work together to

determine what local products are available.

Procurement Methods

(Federal Threshold = $150,000)

Small Purchase

(Requires price quotes from at least 3 bidders)

Sealed Bids (IFBs) & Competitive Proposals (RFPs)

(Requires public advertising)

Informal Formal

≤ Small Purchase Threshold >

*Micro-Purchase* Noncompetitive Purchase

(Value of purchase may not exceed $3,000)

The Informal Procurement Process

“Three Bids and a Buy”

Develop a Specification

• Green apples, US. Fancy or No. 1, prefer five 185 count boxes per week, but

willing to consider other pack sizes for Sept-Dec Solicit Bids

• Contact (ONLY LOCAL) vendors (by phone, fax, email, in-person or via mail)

and provide them with specifications (or if calling, read same information to each vendor) Bid Documentation

• Write down each vendor’s bid and constraints; then file it

Vendor Art’s Apples Olivia’s Orchard Apple Crunch Inc. Price/box $40 $47 $37

Produce Auction

• Great source for buying local produce and connecting with

local farmers

• Schools also are less likely to have problems getting the

quantities of food they are seeking from a produce auction

• The competitive bidding style helps keep prices reasonable

without compromising product quality

• Produce auctions can be a convenient, central meeting place

to find and get in touch with local producers

• USDA has issued guidelines on proper procurement for

produce auctions

The Formal Procurement Process

Competitive Sealed Bidding

Procurement by competitive sealed bidding is done by issuing an invitation for bid (IFB). Use it when:

• The contract can be awarded on the basis of price.

Competitive Proposals

Procurement by competitive proposal is done by issuing a request for proposal (RFP). Use it when:

• Price won’t necessarily be the sole basis for the award.

» Assigned weight to evaluate criterion in an RFP, which determines how important the criterion is

• Possible Criterion:

» Able to provide farm visits » State of origin or farm origin labeling

Solicitations (IFBs and RFPs)

• Contract Type
• Introduction/Scope

» Ex. Our district strives to serve local products as much as possible and

• ur goal is to serve 20% local products.
• General Descriptions of Goods and Services

» Product specifications

• Timelines and Procedures
• Technical Requirements

» Ex. Determining factors for responsive and responsible vendors

• Evaluation Criteria (for RFP)

Product Specification

• Green apples, US. Fancy or No. 1, prefer five 185 count boxes per week, but

willing to consider other pack sizes for September - December

Apple Lane Great Granny’s Fun Fuji’s Price = 40 30 35 40 Contractor able to meet 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 5 Able to provide state of origin on all products = 5 5 5 Delivered within 24 hours of harvest = 10 10 7 100 possible points 65 95 92

Example: RFP Criterion Scorecard

Defining Local and Where to Find “Local” Foods

What Does “Local” Mean?

Who defines “local?”

• School food authorities

What are you trying to accomplish?

• Do you want to bring as many local product as

possible onto the menu quickly?

• Do you want to couple local purchases with farm visits

and have personal relationships with suppliers?

Defining “Local”

• Within a radius
• Within a county
• Within a state
• Within a region

A district’s definition of local may change depending on the:

• Season
• Product
• Special events

What does “local” mean to Ohioans?

Incorporating Local Foods into School Meals: An Example

What’s Already “Local” on Your Menu?

• Look at your records
• Ask your suppliers whether they purchase “local” products

What Could Be “Local?”

• Conduct a menu audit:

» Are there items that could easily be replaced with local products?

• Think about ways to integrate:

» Harvest of the Month program » New recipe development » Salad Bar » Seasonal Cycle Menu

• Include tracking of “local” in future contracts

Evolution of a “Local” Menu

Monday Tuesday Wednesday Thursday Friday Submarine Sandwich

• n 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 Apple Sauce Low-fat Milk

1

Monday Tuesday Wednesday Thursday Friday Submarine Sandwich

• n 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 Local Spanish Rice with Corn Carrots Banana Skim Milk Oven-Baked Local Fish Sandwich

• n 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

2

Evolution of a “Local” Menu

Where to Get “Local” Foods

• Distributors
• Food service

management companies

• Food processors
• DoD Fresh
• Individual producers
• Producer co-ops/

food hubs/produce auctions

• School gardens

Potential RFP Specifications & Evaluation Criteria to Target “Local” Products

» Particular varieties unique to the region » Size of farm » Harvest techniques » Crop diversity » Origin labeling » Able to provide farm visits or class visits

Quiz: Procurement Basics

Is documentation required for informal procurements?

Can a vendor request that a school change specifications

• r solicitation language after

the solicitation has gone out?

Can a school award a contract to a local vendor without conducting a procurement?

What is the federal small purchase threshold?

Do you know the difference between an IFB and an RFP?

If the purchase is valued under the applicable small purchase threshold, can a school use the formal procurement method?

The Geographic Preference Option

What the Legislation Says

Section 2403 of the 2008 Farm Bill says: “The Secretary shall allow institutions receiving funds under this Act … to use a geographic preference for the procurement of unprocessed agricultural products, both locally grown and locally raised.’’

What Is “Unprocessed?”

“Unprocessed” agricultural products retain their inherent character. These are the allowed food handling and preservation techniques:

• Cooling, refrigerating, and freezing
• Peeling, slicing, dicing, cutting, 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)

Quiz: Which of the following products qualify as “unprocessed?”

Tortillas

Mixed Frozen Peas and Carrots

Raw Beef Patties

How to Use the Geographic Preference Option

How to Incorporate a Geographic Preference

1) Define “local” 2) Determine what type of procurement method to use 3) Decide how much weight “local” products will receive 4) Be sure your solicitation makes perfectly clear how the preference will be applied

Example 1: 1 Point = 1 Penny

Liz Solomon’s Orchard Apple Lane Farms (Insert participants name) Best

Price $1.97 $2.05 $2.03 Meets geographic preference? (10 points) No Yes (10 points) No Price with preference points $1.97 $1.95 $2.03

10 points will be awarded to bids for apples grown within 100 miles of the school board office.

10% price preference will be awarded to any bidder that can source products from within 100 miles and 7% price preference will be awarded to any bidder able to source product from within the state.

Example 2: Tiered Preference

(Insert participant’s name) Produce

Express

(Insert participant’s name) Produce (Insert participant’s name) Distribution

Contract Price $31,000 $35,000 $34,000 Geographic preference points to respondent able to meet definition of local No Yes (10% pref.) Yes (7% pref.) Price for comparison $31,000 $31,500 $31,620

Example 3: Geo Pref. in an RFP

(Insert participant’s name) Legumes (Insert participant’s name) Pulses Gary’s Grains

Price = 40

30 35 40

Contractor able to meet 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

5 5

Able to provide state of origin on all products = 5

5 5

Able to provide products from within the state = 10

10 7

100 possible points

65 95 97

Group Breakout Session!

Practice Shopping Scenarios Produce Auction

USDA Foods and DoD Fresh

• Schools can save cash reimbursement dollars for local

purchases, using USDA Foods products

» For example:

• Combine local lettuce with USDA Foods whole grain tortillas and

USDA Foods smoked deli turkey breast to create wraps

• Mix USDA Foods flour with local flour to bake rolls.

Maximizes Funds for Local Purchases

1

• USDA Foods are 100% American grown!

» Some products are traditionally purchased from the same states each year » Find out what is purchased from your region

• State of origin information

» Become a USDA Foods vendor

• Agricultural Marketing Service and Farm Service Agency are always

looking for new suppliers

Champions American Agriculture

2

• The DoD Fresh program allows schools to use their USDA Foods

entitlement dollars to buy fresh, and often local, produce

• DoD contracts with over 47 produce distributors across the country,

who are encouraged to provide local produce whenever possible and identify locally-sourced items in the ordering catalog.

Promotes Local Fruit and Vegetable Producers through DoD Fresh

3

CHILD AND ADULT CARE FOOD PROGRAM (CACFP)

Small (Informal) Method of Procurement vs. Large Method

• Most CACFP procurement falls under the small

purchase threshold of $150,000 for Federal Child Nutrition Programs

• Local food purchasing decisions are to be

documented using the Informal Procurement Method to ensure full and open competition

FRESH FRUIT AND VEGETABLE PROGRAM (FFVP)

Incorporate “Local” Foods into FFVP:

» Choosing local options when available (make sure contracts include FFVP):

• Food service management companies
• Vendors
• Build relationships with local farms for multiple fresh

fruit and vegetable items

• Purchasing from school gardens or school farms

Farm to School Projects in Ohio

Freemont Local

• Hydroponics gardening

Huron City

• Farm to School procurement

Lighthouse Community School

• Urban farming; student management

Cloverleaf Local

• Chickens and eggs

School Garden - Star Community Justice Center

School Garden - Dublin City Schools

Local Procurement Guide

Available at the Procuring Local Foods page of the USDA Farm to School website: http://www.fns.usda.gov/farmt

• school/procuring-local-foods

Social Media

Ohio Families and Education

_________________________________________________________________________________________________________________________

Ohio Teachers’ Homeroom OhioEdDept @OHEducation

___________________________________________________________________________

@OHEducationSupt storify.com/ohioEdDept

• hio-department-of-education

education.ohio.gov

• Office for Child Nutrition
• 25 S. Front Street, Mail Stop 303
• Columbus, OH 43215
• Fax: (614) 466-8505
• Phone: (614) 466-2945
• Liz.Solomon@education.ohio.gov

Thank you! Questions?