Virginia Webb, PhD, RD Procurement Review Process First review - - PowerPoint PPT Presentation

Virginia Webb, PhD, RD

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First review cycle Review last school year

2017-18 SY review 2016-17 SY

On-site vs Off-site reviews Consistency Summary of Findings (sof)

Procurement Review Process

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For 2018-19 reviews

Request information earlier Clarity Training Technical assistance

 Corrections made for current year

Procurement Review Process

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 Developed by USDA

 USDA approval needed for LDOE to use other  Excel  Not printer friendly  Errors—USDA notified—misspellings, etc.

 Emailed with procurement announcement  Available on LDOE website  All questions included

Procurement Tool

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 SFA records all procurements  Reflects prior school year  Used to select procurements for review

What is the SFA Procurement Table?

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SFA completes it

How does the SFA Procurement Table get completed?

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 Name  Position/Title  Responsibilities  Contact Information

Procurement Authority

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 Same as Simplified Acquisition Threshold  Maximum value at which the SFA can use informal procurement procedures  Federal threshold is set at $150,000—and for Charters  State of Louisiana $30,000  LEAs (School District) may set a lower, more restrictive threshold

Small Purchase Threshold

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 For-profit or not-for-profit organizations  Buy in larger quantities on behalf of members  May not provide Free and Open Competition if other sources are not allowed to compete  Different from SFA-only cooperative

Group Purchasing Services

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 SFAs can aggregate (total) all purchases by vendor  SFAs must include:

• Goods/Services Provided
• Total Paid to Vendor
• # of Purchases

Micro purchase Section - Tool

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 SFAs can aggregate all procurements by vendor  SFAs must include:

• Goods/Services Provided
• Total Paid to Vendor
• One Time/Multiple Purchase
• More than One Response
• GPO/GBO/3rd Party

Small Purchase Section - Tool

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 Value of purchase is > $150,000 for Charter and > $30,000 for others in Louisiana  Types of Formal Procurements

• Invitation for Bid – lowest responsive and responsible

bidder

• Request for Proposal – most advantageous with price and
• ther factors considered (price primary)
• Noncompetitive - an SFA solicits a proposal from only one

source

Formal Contracts

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1. Fixed Price (Fee) – means a price that is fixed at the inception of a contract and is guaranteed for a specific period of time. Includes milk with escalation/de- escalation clauses. 2. Cost Reimbursable – reimburses the vendor for costs incurred under the contract, with or without a fixed fee.

Types of Formal Contracts

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SFAs need to include:

• Goods/Services Provided
• Contract Value (amount spend during year)
• Solicitation Type (IFB or RFP)
• Contract Type(Fixed Price or Cost Reimbursable)
• Contract Duration
• More than One Response
• GPO/GBO/3rd Party
• If amendments were made

Formal Section - Tool

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 Any organization, commercial or nonprofit, that contracts with a SFA to manage any aspect of the school nutrition program  Contracts limited to 1 year with up to 4 annual renewals

Food Service Management Company Contracts

 FSMC Section - Tool

SFAs must include:

• Goods/Services Provided
• Contract Value
• Solicitation Type (IFB or

RFP)

• Contract Type(Fixed Price
• r Cost Reimbursable)
• Contract Year
• More than One Response
• GPO/GBO/3rd Party
• If amendments were made

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 Allows SFAs to contract with commercial food processors to convert raw and/or bulk USDA Foods into a variety of convenient, ready-to-use end products.  Louisiana Department of Agriculture does not solicit for individual SFAs

Processing Contracts for USDA Foods

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4 Main Value Pass-Through Methods

• 1. Rebate System
• 2. Fee for Service
• 3. Direct Discount
• 4. Hybrid/Net Off Invoice

Processing Contracts

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SFAs must include:

• Goods Provided
• Contract Value
• Procurement Type (IFB or RFP)
• Contract Duration
• More than One Response
• GPO/GBO/3rd Party
• If amendments were made

Processing Section - Tool

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 Summary of expenses by vendor

 Ledger  Dates, invoice numbers, $ amounts

 Includes all purchases paid from nonprofit food service account for prior SY  Used to validate data provided in SFA Procurement Table

Vendor Paid List

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Selection criteria varies by procurement type. Each section contains instructions by procurement type. The chart prescribes the minimum review requirement.

Procurement Selection Chart Tab

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The SA will request:  Receipts  Invoices

Micro Purchase: Required Documentation

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Solicitation Documents Bid Quotes/Responses Evaluation of Responses Contracts Purchase Orders Receipts/Invoices

Small Purchase: Documentation

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 Solicitation Documents  Bidder Response  Evaluation  Executed Contract  Contract Renewal/Amendment  Cost/Price Analysis  Non-competitive Proposal Authorization  Invoices

Formal Procurement: Documentation

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SAs will simply review every FSMC contract listed on the procurement chart. FSMC contracts are either in their base year or operating in a renewal year.

FSMC Contracts: Selection

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 Solicitation Documents  Bidder Response  Evaluation Documents/Scoring Sheets  Notification of Rejected Bids  Invoices  USDA Foods Credits  Reconciliation of discounts, rebates, credits, as applicable

FSMC: Base Year Documentation

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 Solicitation Documents  Bidder Response  Evaluation Documents/Scoring Sheets  FSMC Invoices  Reconciliation for USDA Foods  Reconciliation of discounts, rebates, credits, as applicable * FSMC Renewal Section of Checklist

FSMC: Renewal Year Documentation

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 SDA template agreement/contract for processors  SDA list of approved foods for processing  SFA Planned assistance level (from prior school year)  SFA Solicitation documents, vendor bids/responses, evaluation for contract award and executed contracts for selected vendors  Contract Renewals/addenda/amendments, if applicable  Reconciliation of USDA Foods received, if applicable *Processing Section of Checklist

Processing Contracts: Documentation

 General Procurement Tab

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Written Code of Conduct

 Does the SFA have a written Code of Conduct?

 If yes, does the code of conduct prohibit conflicts of interest?

General Procurement Procedures

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 Does the code of conduct:

a) Prohibit the acceptance of gratuities or favors from contractors? b) Provide for disciplinary actions for violations?

Written Code of Conduct Continued

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 Does the SFA have a Procurement plan as stated in 2 CFR 200.318 (a)?  Other things to consider in your procurement plan:

a) Required Federal, State and local laws and regulations b) Assurance that unnecessary/ duplicative items are prohibited c) No features are included that unduly restrict competition

Procurement Plan

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Food  Supplies  Equipment  Services

Specifications

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SFA must perform a cost or price analysis for all procurements that exceed the applicable small purchase threshold. Make independent estimates of costs/prices before receiving bids or proposals, using market reports, etc. SFA must maintain documentation

Cost/Price Analysis

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 Does the SFA/LEA take steps to assure that small, minority and women's businesses enterprises and labor surplus firms are used when possible?

Targeting Small Businesses

Are there any questions???