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Part 1: Overview of Procurement. 2CFR 200.317-326. Procurement Part 1. Overview Importance of Procurement What you need to know Introduction to methods of procurement Competition Need for a Procurement Plan. Definitions. Procurement – purchase of goods, products, services
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Part 1: Overview of Procurement 2CFR 200.317-326
ProcurementPart 1 Overview Importance of Procurement What you need to know Introduction to methods of procurement Competition Need for a Procurement Plan
Definitions • Procurement – purchase of goods, products, services • Simplified Acquisition Threshold – dollar amount for small or informal purchases • Goods or Products – items used in operation of CNP • Services – performance of tasks
Definitions Continued • Specification – description of product/service that a purchaser seeks and a description of what a vendor/bidder must offer • Purchase – to buy a good, product or services • Transaction – an occurrence in which two or more entities exchange goods, services or money • Transparency – details surrounding the procurement are open and clear
Definitions Continued • Responsible – accountable or capable to meet the terms of the contract for the goods, services or products being procured • Responsive – prepared in full compliance with the requirements
Why is Procurement Important? • USDA Requirement • Good Money Management
Procurement – What You Need to Know • Understand goods, products, services needed • Potential suppliers of goods, products, services • The best price • Which method of procurement to use • Document the steps involved
QUICK REVIEW The definition of procurement is • Selling goods, products or services at the best possible price • Purchasing of goods, products or services at the best possible price • Notifying sellers that you are interested in buying goods, products or services. • All of the above
ANSWER TO QUICK REVIEW The definition of procurement is: • Purchasing of goods, products or services at the best possible price
2 CRF 200 – Regulations for Federal Awards Procurement 200.317 - 200.326
Program Specific Procurement Regulations • NSLP SBP 7 CFR 210.21 • SBP 7 CFR220.16 • SMP 7 CFR215.14a • SFSP 7 CFR225.17 • CACFP 7 CFR226.22 • USDA Foods 7 CFR 250 – Subpart D: Donated Foods in FSMC
General Procurement Standards2 CFR 200.318 3 Sealed Bids 4 Competitive Proposals 2 Small Purchase 5 Sole Source 1 Micro- Purchase • General Standards • Document Policies • Necessary • Full and Open Competition • Conflict of Interest • Documentation • Cost & Price Analysis • Vendor Selection
Methods of Procurement 2CFR 200.320 3 Sealed Bids 2 Small Purchase 4 Competitive Proposals 1 Micro- Purchase 5 Sole Source
Procurement Plan2 CFR 200.318(a) What is a procurement policy? A procurement policy is a written statement that assures all purchases made with CNP Federal funds are handled fairly and in a manner that encourages full and open competition.
Procurement Plan Continued2 CFR 200.318(a) What is a procurement plan? • What will be done, who will do it, and how it will be done. • Code of Conduct • Conflict of Interest
QUICK REVIEW True or False: • All procurement regulations apply to all programs. • The procurement method used is determined by whether the purchase exceeds the simplified acquisition threshold.
ANSWERS TO QUICK REVIEW True or False: All regulations apply to all programs. FALSE The procurement method used is determined by whether the purchase exceeds the simplified acquisition threshold. TRUE
Full and Open Competition2 CFR 200.319(a) • Goal all Federal Procurement requirements • Same opportunities to compete • Higher quality goods, products or services at the lowest possible price. • Specifications do not restrict or eliminate competition.
Elements that Restrict Competition • Unreasonable requirements • Unnecessary experience or bonding • Noncompetitive pricing practices • Noncompetitive contracts • Organizational Conflicts of Interest • Specifying “brand name” • Any arbitrary action
Documentation Procurement Documents • Three years plus the current fiscal year Accounting Documents • Invoices • Grocery receipts • Cancelled checks • Quotes or Bid documents
QUICK REVIEW True or False: An important principle of good procurement is that good procurement is competitive procurement
ANSWERS TO THE QUICK REVIEW True or False: An important principle of good procurement is that good procurement is competitive procurement TRUE
SUMMARY • Definitions of frequently used words • Why Procurement is important • What Sponsors need to now about procurement • Five procurement methods • Presented the Roadmap to Federal Procurement • Reason a Procurement plan is needed • Full and open competition • Procurement Documentation
ODE CNP Contact Information Oregon Department of Education Child Nutrition Programs 255 Capitol St. NE Salem, OR 97310 Phone: 503-947-5849 Website: http://www.oregon.gov/ode/students-and-family/childnutrition/Pages/default.aspx
Resources • ODE CNP Procurement webpage • CACPF Policy and Procedure Manual Chapter 14 • 2 CFR 200 • NSLP Procurement Regulations (7 CFR 210.21) • SBP Procurement Regulations (7 CFR 220.16) • Special Milk Program (7 CFR 215.14a • USDA Foods (7 CFR 250 – Subpart D) • CACFP (7 CFR 226.22) • SFSP (7 CFR225.17)
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