Procurement Plan Template for NC’s School Food Authorities

1. Procurement Plan Template forNC’s School Food Authorities “we think nutrition because students can’t think without it.” School Nutrition Services | NC Department of Public Instruction USDA is an equal opportunity provider and employer.

2. Today’s discussion • Purpose of a Procurement Plan Template • Why BOE approval is required • New Procurement requirements 1. Code of Ethics/Conduct 2. Contract Monitoring • Completing the template for the SFA • Using the Procurement Plan as a SOP • Monitoring and modifying the plan

3. Procurement Plan Template • is a sample; it is not all inclusive and must be completed by each SFA; • reflects Federal regulations and policy; • reflects State General Statutes; • reflects State Purchasing procedures; • does not include local policies/procedures; • will serve as the SFA’s authoritative procurement guide.

4. Procurement Plan Template The Procurement Plan Template is based on • 2 CFR 200.318 – 326 • 7 CFR 210.16 • 7 CFR 210.21 • USDA Policy Memoranda and Guidance The Procurement Plan covers all Federal food assistance programs operated by the SFA.

5. BOE/BOD Signature Page • BOE/BOD is the legal authority to bind the SFA into a contract • Signature of BOD/BOE Chair helps ensure compliance with Federal, State and local laws/policies • Invites qualified contractors • Builds foundation for ethical behaviors • MUST be signed by BOE/BOD Chair • Must be signed by Superintendent (or equivalent) ref: Procurement Plan Template - Page 1

6. School Nutrition Procurement Plan Part I: Code of Ethics/ Conduct ref: Procurement Plan Template - Page 2

7. Part I: Code of Ethics/Conduct No employee, officer or agent of the SFA may participate in the procurement process be part of the procurement process if there is a real or perceived conflict of interest. Procurement process includes: • development of a solicitation • selection of a contractor • administration of a contract ref: Procurement Plan Template – Page 2

8. Part I: Code of Ethics/Conduct Conflicts of interest arise when one of the following has a financial or other interest: • any employee, officer or agent of the contractor; • any member of the immediate family of the contractor; • the contractor’s partner; and/or • an organization which employs or is about to employ one of the above. ref: Procurement Plan Template - Page 2

9. Part I: Code of Ethics/Conduct Employees, officers or agents may not solicit nor accept gratuities, favors, or anything of monetary value from contractors, potential contractors or parties to sub-agreements ref: Procurement Plan Template - Page 2

10. Part I: Code of Ethics/Conduct SFAs may establish local policy indicating: • School Nutrition personnel may accept an unsolicited item of nominal value where the exact value is established and recorded the Procurement Plan, and/or • School Nutrition personnel may participate in a group event where the financial interest is not significant and the event is open to all attendees. ref: Procurement Plan Template - Page 2

11. Part I: Code of Conduct There are consequences for violating the Code of Conduct/Ethics: • Loss of trust and integrity • Reprimand by the Superintendent • Dismissal by the Board of Education • Possible legal action • Career ruined The BOE’s/BOD’s Code of Ethics/Conduct should be included with the Procurement Plan. ref: Procurement Plan Template - Page 2

12. School Nutrition Procurement Plan Part II: Procurement Methods ref: Procurement Plan Template – Pages 4-12

13. Part II: Procurement Methods A. Formal Purchases Invitation for Bid (IFB) Request for Proposal (RFP) B. Informal Purchases Request for Quote (RFQ) Micro-purchasing C. Sole Source Purchases D. Emergency Purchases ref: Procurement Plan Template – Pages 4-12

14. Part II: Procurement Methods “Simplified Acquisition Threshold” or SAT (formerly called “Small Purchase Threshold”) IS the critical factor in determining which procurement method will be used. Federal SAT = $150,000 State SAT = $90,000 Local SAT = varies by SFA* *You must know the SFA’s SAT in order to proceed. ref: Procurement Plan Template – Page 4

15. Procurement Plan Template Part I: Code of Ethics/Conduct Part II: Methods of Procurement (Specific Procurement Procedures) Part III: Purchasing Cooperatives Part IV: Additional Procurement Provisions Part V: Records Retention Part VI: Other Procurement Provisions Part VII: Contract Oversight

17. Part II: Procurement MethodsFormal Purchasing Methods Assign Personnel to: • Determine purchasing method • Perform cost analysis • Advertise • Respond to questions for IFB/RFB • Manage/document the procurement process • Complete the Procurement Checklist • Review/sign the bid tabulation or evaluation score sheets signifying fair/equitable review ref: Procurement Plan Template – Pages 4-9

18. Part II: Procurement MethodsFormal Purchasing Methods Assign Personnel to: • Review the Written Procurement Plan annually • Document that actual products/services specified are received (or not) • Approve/document the procedure for determining acceptable alternate/substitutes • Oversee compliance with Buy American Provision • Maintain documentation for all procurements ref: Procurement Plan Template – Pages 4-9

19. Part II: Procurement Methods Group Activity: Who’s Who in SFA procurement? Review Pages 4 – 8 and discuss who within the SFA/LEA will be responsible for various Formal Procurement Activities

20. Part II: Procurement MethodsInformal Purchasing Methods Assign Personnel to: • Communicate with potential vendors when price quotes are needed • Award, based on lowest, best quote • Maintain records to document vendor selection, names of all vendors contacted, price quotes and written specifications • Document actual products specified are received • Sign quote tabulations indicating fair/equitable process ref: Procurement Plan Template – Pages 8-10

21. Part II: Procurement Methods Group Activity: Who’s Who in SFA procurement? Review Pages 8 – 10 and discuss who within the SFA/LEA will be responsible for various Informal Procurement Activities

22. Part II: Procurement Methods Micro-purchases* Micro-purchasing procedures may be used for goods or services of separate or aggregate purchases in an amount equal to or less than $3,500 on an annual basis. *Micro-purchases MUST be documented.

23. Part II: Procurement MethodsMicro-purchasing Procedures Assign Personnel to: • Determine/document the aggregate amount and determine “reasonableness” • Ensures distribution of purchases • Contacts State agency for questions • Maintains documentation of all MPPs • Document rationale for MPP (over other methods) • Documents actual product purchased was received ref: Procurement Plan Template – Pages 9-11

24. Part II: Procurement Methods Micro-purchase Documentation (Required for all SFAs) • Rationale for choosing MPP • Estimated cost of the item/service to be procured • Name/address of the vendor • Purchases are made from a variety of potential vendors as opposed to a single vendor • Approval by the School Nutrition Director prior to the initiation of a single MPP ref: Procurement Plan Template – Pages 9-11 and handout

25. Part II: Procurement MethodsSole Source Purchases Assign Personnel to: • Prepare, issues, evaluates Request for Information (RFI) • Review sole source documentation • Contact State agency for approval • Maintain documentation of all sole source purchases (item, dollar amount, vendor, justification) • Obtain written approval from the BOE ref: Procurement Plan Template – Pages 11-12 and handout

26. Part II: Procurement MethodsEmergency Purchases Emergency procurements must be documented: • Good or service required • Cost • Vendor, and • Reason for Emergency • Approval by designated authority The SFA must designate person to approve and document emergency purchases ref: Procurement Plan Template – Pages 9-11 and handout

27. Part II: Procurement MethodsEmergency Purchases “Piggybacking” on the solicitation of another SFA Specific conditions MUST be followed Piggybacking laws in NC are more restrictive than in other States; exercise caution ref: Procurement Plan Template – Page 13

28. School Nutrition Procurement Plan Part III: Purchasing Cooperatives

29. Part III: Purchasing Cooperatives • Voluntary participant in the NC School Nutrition Procurement Alliance • Voluntary participant in another informal “purchasing group” • Written procedures are required should the SFA choose to engage the services of a Group Purchasing Organization (GPO) ref: Procurement Plan Template – Page 13

30. School Nutrition Procurement Plan Part IV: Additional Procurement Provisions

31. Part IV: Additional Procurement Provisions • Must develop procedures to evaluate a new product • Must update specifications periodically • Must describe procedures to use the services of a third-party to obtain rebates • SFA will designate a person to monitor each contract • All contracts will result in a firm, fixed price contract or firm price plus fixed fee ref: Procurement Plan Template – Page 14

32. School Nutrition Procurement Plan Part V: Records Retention

33. Part V: Records Retention SFA must retain: • All invoices, records and other documentation related to contracts • Written rationale for method of purchase • Original solicitations (all) • Bids/Proposals and negotiation history • Basis for contractor selection/rejection ref: Procurement Plan Template – Page 15

34. Part V: Records Retention SFA must retain: • Basis for award where cost is not the primary consideration • Terms/Conditions of all contracts • Any/all contract amendments/modifications • Billing/payment records • History of contractor performance • History of contractor claims • History of contractor breeches ref: Procurement Plan Template – Page 15

35. School Nutrition Procurement Plan Part VI: Other Procurement Requirements

36. Part VI: Other Procurement Requirements • Jessica Lunsford Act • Reasonable efforts to assure Historically Underutilized Business (HUBs) are engaged in solicitations • Solid Waste Disposal Act • Environmental protection Act • Criminal Background Checks • Iran Divestment Act ref: Procurement Plan Template – Pages 15-16

37. Part VI: Other Procurement Requirements If out-sourcing to a qualified caterer, SFA agrees to: • Notify the State agency • Use the NCDPI RFP/Contract template If out-sourcing to a for-profit Food Service Management Company, SFA agrees to: • Notify the State agency at least 6 months in advance • Use the NCDPI RFP/Contract template ref: Procurement Plan Template – Pages 14-15

38. School Nutrition Procurement Plan Part VII: Contract Oversight

39. Part VII: Contract Oversight • Designate an individual to oversee each contract to ensure compliance with terms and conditions and fulfillment of deliverables • Monitoring frequency established and implemented; non-compliance acted upon promptly • SFA will be responsible to resolve all disputes, protests, litigations, etc. • USDA nor NCDPI are responsible parties to the procurement, but will exercise oversight responsibilities ref: Procurement Plan Template – Pages 17-18

40. School Nutrition Procurement Plan Part I: Attachments A, B, C

41. Attachments Attachment A: LEA Code of Ethics/Code of Conduct (Page 19) Attachment B: Specific Procurement Procedures (Pages 20– 23) Attachment C: Procurement Checklist (Pages 23 – 25)

42. Thank you for your participation Do you have questions?

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