USDA PROCUREMENT

OVERVIEW

Charles Parrott

Associate Deputy Administrator

Agricultural Marketing Service

May 19, 2010

MISSION

Purchase fresh and processed fruits,

vegetables and specialty items to remove

surplus production from the domestic

marketplace and provide needy people

safe and nutritious food that is low in fat,

sugar, and sodium.

Purchases

1. Entitlement Purchases– Based on law

– Amounts purchased are relatively constant from year to year

2. Bonus Purchases– Based on domestic agriculture need

– Amounts purchased fluctuate from year to year

USDA Recipients

• National School Lunch Program (NSLP)

• The Emergency Food Assistance Program (TEFAP)

• Commodity Supplemental Food Program (CSFP)

• Food Distribution Program on Indian Reservations

(FDPIR)

• Child and Adult Care Food Program (CACFP)

• Summer Food Service Program (SFSP)

• Nutrition Services Incentives Program (NSIP)

Percentages for Each Program

NSLP

61%

TEFAP

28%

CSFP

8%

FDPIR

3%

OTHER

0%

NSLP

TEFAP

CSFP

FDPIR

OTHER

Ordering Process

• Entitlement purchases begin with a

recipient survey sent by FNS

• Bonus purchases begin with an Industry

request, and if approved, results in a

recipient survey sent by FNS

AMS Pre-Award Process

• FNS receives orders, reviews them, and provides them to AMS for purchase

• AMS releases an invitation for bid

– Email sent to vendors on distribution list

– Public release on our website

• All line items are FOB Destination to the location FNS recipients indicate

Approved Vendors

• Anyone can be on our distribution list, even if not

an approved vendor

• To become an approved vendor, see the Doing

Business with USDA and Forms webpage

(www.ams.usda.gov/fvprocurement)

• Or call our office for assistance

Invitation Process

• Approved vendors will receive an email

• Invitation for Offer

– Quantities and destinations

– Delivery periods

– Bid submission date

– Contract award date

Bid Process

• Approved vendors use ID and password to enter bidding website (DEBES)

• Bids are placed by line item to specific destinations, and must be timely

• Bids must include cost of product, inspections and delivery to destination

Award Process• Bids are opened electronically, and we use bid

evaluation software to determine the awards that are most advantageous to the Government

• Once bids are evaluated, contracts are then awarded and winning vendors notified

• All documents are publicly displayed on our website, and are accessible for at least one year

Small Business Set Asides

• Government is required to support various categories of small businesses

– Businesses with less than 500 employees (SB)

– Historically Underutilized Business Zone (HUBZone)

– Small disadvantaged (8a)

– Service disabled veteran owned (SDVOSB)

• If two or more bid on an invitation, the next one can be set aside for that category

Questions?