Procurement and Food Service Contracts

1. Procurement and Food Service Contracts Pages 57-60

2. Procurement, p. 57 Open and free competition when utilizing Federal funds in the CACFP … that means goods and services must be obtained at the lowest possible costs

3. Methods of Procurement • Formal bid • Followed if purchase of like items exceeds $150,000 per year. ($7500 for state agencies) • Small purchase • Must be followed if not doing a formal bid • Complete a price survey – A30

4. Method of Procurement continued • Purchase of Equipment - Costing $1000 or more • Noncompetitive Negotiations • Emergency Purchase Procedures • Food Service Agreements/Contracts

5. Procurement Plan • Must be completed and on file in your office • Sample Form on pages hand-out and Appendix A • Read • Complete all empty spaces • Mark methods of procurement you plan to use • The Official Representative must sign and date

6. Small Purchase Procedures • Select two items • Get prices from two places onsame day • Write down resultsDo price survey twice a year • Usually buy from the place withthe lowest price Page 57

7. ABC Grocery Lowest 3/2/10 ABC XYZ MILK 3.79/gal 4.27/gal Ground Beef 2.09/lb. 2.39/lb. 5.88 6.66

8. File the surveys with your procurement plan! Establish a permanent CNP procurement file. p. 59

9. Food Service Agreements Instructions outlined in Appendix C Forms in Appendix A • Food Service Agreement with Schools • Contracts under $150,000 • Contracts over $150,000

10. 1. School Agreement • Must use the State Department Form • Must include menus • Must be signed by all parties before it starts • Signed on August 31, 2014 • Contract must begin on September 1 or later! • Suggest all contracts run the fiscal year • Oct.1, 2014 to Sept. 30, 2015

11. Contract with School Board • Legal Contract • Entered into with a School Board • Contract without soliciting or advertising for bids • Must use SDE approved form • Not renewable – must be submitted annually

12. What to send the SDE • Agreement for a School to Furnish Food Service • Meal Delivery Schedule A • One month’s sample menus – Schedule B

13. Food Service AgreementsContracted Meals • Must use formal bid or small purchase procedure • Must follow procedures outline in Appendix C, Procurement Procedures • Must use SDE approved contract – no alterations

14. Contracts > $150,000 • Use SDE Form • Use Small Purchase procedure : - identified 3 vendors identified - attain 3 quotes • Award lowest price • Train vendor on records and food requirements • Need documentation of state or health certification

15. What to send the SDE If the contract value exceeds $50,000, submit a copy of : • the unsigned Agreement • Schedule A (meal delivery schedule) • Schedule B (11day cycle menu)

16. What to send the SDE with the Original Agreement • Food Service Agreement of Less than $150,000 • Schedule A, Meal Delivery • Schedule B, 11 day cycle menu • Health Certification

17. Invitation to Bid Contracts over $150,000 • Instructions in Appendix C • Advertise in newspaper • Formal bid invitations • Formal bid opening • Formal awarding of bids

18. What to send the SDE with the Original Agreement • At least 14 days prior to bid opening: • Public Notice • Bid Solicitation/Response letter • After the contract is awarded, submit the following prior to the first day of the contract: • Page 1, Acceptance completed and marked “original” • The remainder of the contract (all pages) • The Certification Statement • Proof of liability insurance • State or local health certification

19. Renewing an Agreementfor both Less than or More than $150,000 • Complete Food Service Renewal Form • Submit Food Service Renewal Agreement • Submit before the start date of the Agreement

20. Federal Regulations • Limit the duration of contracts to one year • Option of yearly renewals • Not to exceed four Additional years

21. If you contract for food service, you must use the State approved forms and follow special procedures. Refer to Appendix C

22. Fast Food Vendors, page 59 Occasionally purchasing…. • Meal must contain all required components, including milk. • Need signed statement from vendor stating specific amounts of food provided per child. • Need an itemized receipt. • Documented by center meal on a Production Record.

23. Happy Meal • Hamburger • Meat • Bun • French Fries • Coke + Lettuce & Tomato + Milk

24. Procurement File A Procurement File should contain: • Completed and signed Procurement Plan (pages A30). • Price Surveys (two per year and shop at store with lowest prices). • Contract for meal, all documents related to contract (see Appendix C)

25. Organize Your CACFP Records(page 76)

26. = Permanent File Annual Program File Copies of all application documents submitted each year Procurement File - Procurement Plan - Price surveys - Food Service Contracts • Permanent Agreement • Civil rights complaint procedure, p.21

27. Income Eligibility Forms • Organize in Notebook by Fiscal Year • IEF Applications alphabetical • Place ethnic/data sheet in notebook

28. Monthly Program Records • Daily Record or Daily Attendance Sheets • If completing the Daily Record, the Meal Count Record • Monthly Summary Form • Monthly General Journal or equivalent • Financial Records supporting expenses • Time Sheets and payroll records if claiming labor • Site data sheet print-out • Menus • Production Records • If contracted meals, meal delivery tickets • Sign-in and -out Sheets p. 22

29. Multi–site Records • Annual Training Documentation • Sponsor Monitoring Form • Any other required documentation related to the Monitoring Form

30. Put Your Program to Bed Each Month Remember: Prior to filing records…, Review for Completeness!!!!! • Place in one file/envelope • Mark month and year • Seal and move forward!