Procurement Review - NYSED...2018-2019 Procurement Rev iew Child Nutrition Program Administration This PowerPoint will contribute 1 Training Hour towards the Professional Standards
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2018-2019 Procurement Review Child Nutrition Program Administration
Solicitation includes evaluation criteria Award based on score with
primary weight on price
Assurance of advertising, evaluation/award with price as
primary and no unallowable cost provisions, Results in fixed price or
cost reimbursable Required contract provisions (7 CFR Part 210,2 CFR Part 200, Appendix
II); Buy American food; ensure SFA receives discounts,
rebates and credits in cost reimbursable contracts
Item available only from a single
source; public exigency;
competition deemed
inadequate
Assure adherence to 200.320(f)(1)
Presenter
Presentation Notes
The procurement of goods and services is a significant responsibility of a SFA. Obtaining the most economical purchase should be considered in all purchases when using the nonprofit food service account. Federal, state and local laws and regulations specify the methods SFAs must follow to properly procure goods and services and award contracts only to responsible contractors. Additionally, SFAs must not restrict competition and must follow all procurement standards in Program regulations in 7 CFR 210.21 and the government-wide requirements in 2 CFR 200.318-.326. SFAs must prohibit conflicts of interest, use required procurement methods, take affirmative steps to use small, minority, women's business and labor surplus enterprises, when possible, and oversee contractors to ensure all contract provisions are fulfilled for the duration of the contract. SED is required to ensure that SFAs comply with the applicable regulations. New this year, June 2018, the NDAA (National Defense Authorization Act) raised the micro purchase threshold to $10,000 and small purchase threshold to $250,000. (section 217CB of NDAA include institutes of higher education)
Review Process
SFA completes Procurement Review Worksheet
SED selects a sample of vendors from each procurement method and requestsadditional documents for these vendors
SED completes procurement review and documents any findings, corrective action, and technical assistance
Presenter
Presentation Notes
The Procurement Review is conducted the same year as the Administrative Review. SED will be reviewing the SFA’s Procurement activities from most recently completed school year. SED developed a Procurement Review Worksheet that was sent to SFAs to collect all SFA staff responsible for procurement, vendor names, goods and services provided, total amount paid to vendor, number of purchases from the vendor during the year, number of bids received. Based on the SFA’s responses, SED will ask for more documentation of specific purchases.
Procurement Review Sheet
◦ Must be completed by SFA for all vendors paid from the nonprofit food service account for the most recently completed school year
Presenter
Presentation Notes
In addition to completing the Procurement Review Worksheet, SFAs must also provide SED with their Purchasing Policy and Purchasing Code of Conduct, if not included in the Purchasing Policy. The Procurement Review sheet is due back to our office by October 31st.
Vendor Paid List
◦ All vendors paid from the nonprofit food service account, from prior school year
Presenter
Presentation Notes
The vendor paid list is a report from the SFA accounting system that identifies all vendors paid from the nonprofit food service account, each payment made to every vendor, and summarizes the total amount paid to each vendor for the prior school year.
Procurement Procedures ◦ Required by regulations ◦ Helps to determine procurement methods to be
used ◦ Identifies parties that will address issues raised ◦ Includes a written code of standards of conduct to
prohibit conflicts of interest
Presenter
Presentation Notes
Procurement procedures play a critical step in the overall process because they determine the type of procurement methods that will be used by the SFA and the type of contracts that will result. You may ask why does an SFA need procurement procedures if the governing regulations in 2 CFR, as well as and program regulations in 7 CFR Part 210, 215, 220, 225, and 226 clearly outline the procurement requirements to include procurement methods, contract types, other contract provision needs, etc.? For one reason, 2 CFR 200.318 requires that SFAs have procurement procedures in place. The procedures provide the specific roadmap for how the SFA is conducting procurement and compliance with regulations. For example, an SFA may choose to use fixed price contracts even though the larger 2 CFR requirements allow for the use of cost reimbursable and fixed priced contracts. Also, these procedures should include written standards of conduct which help to prevent conflicts of interest, the use of noncompetitive practices, and protests that delay contract award, or worse, require the solicitation process to be terminated, re-written, and re-issued. Additionally the procedures may address who at the SFA conducts the contract monitoring and how issues will addressed if identified.
Developing aProcurement Plan All School Food Authorities must develop a procurement plan which:
◦ Clearly defines responsibility
◦ Establishes guidelines for the organization
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Presentation Notes
All School Food Authorities(SFAs) need to develop a procurement plan which is a comprehensive plan that clearly defines responsibility and establishes guidelines the SFA and the procurement person within the organization must follow when carrying out their duties.
What is the purpose of a procurement
plan?
Simplify the procurement process
Reflect federal, State and local procurement laws and regulations
Ensure uniformity, fairness and equitable treatment
Safeguards taxpayer dollars
Assists in maximizing an SFA’s purchasing power,while providing increased efficiency, economy and flexibility
Presenter
Presentation Notes
Having a procurement plan is similar to following a following a recipe in a cookbook. It gives you a list of ingredients and the steps necessary to make the recipe. With procurement plans, you’re listing the documents you need and the steps you take to make purchases. This assists in making the process simple and efficient. Just remember that the procurement plan must reflect federal, State procurement laws and regulations. A procurement plan safeguards the procurement process, thereby ensuring taxpayer dollars are protected against fraud and abuse. When you have a plan in place, it makes certain that each procurement is done the same way and vendors are treated fairly and equitably. A procurement plan also helps with maximizing an SFA’s purchasing power.
What should I include in myprocurement plan? ◦ Definitions ◦ Basic Organizational Concepts ◦ Source Selection ◦ Specifications ◦ Conflict of Interest / Code of Conduct policy
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Presentation Notes
The procurement plan should clarify terms used in the policy which may need further explanation (such as responsive and responsible bidder) Basic organizational concepts, such as which people in the organization are responsible for ordering and who approves purchases. A best practice is to establish different financial levels for procurement. Source selection establishes which method of procurement will be used
Procurement Code of Conduct
◦ Prohibit officers, employees and agents from soliciting or accepting gratuities, favors or anything of monetary value from contractors or parties of subcontracts
◦ Provide for disciplinary actions for violations by officers, employees, or agents
Presenter
Presentation Notes
A procurement plan would not be complete without a conflict of interest and code of conduct policy for everyone involved in the procurement process. It documents the steps to take if there is a conflict of interest and the consequences if there is a violation of the policy. The policy should address areas such as: Gratuities and kickbacks, Miscellaneous fees – fees that aren’t attributable to the purchase Process for violations of the procurement policy The code of conduct may be included with the procurement plan or be a separate document.
Minority and Women-Owned
Businesses (M/WBE)
◦ When possible, SFAs must take steps to assure that minority or women-owned businesses are used for purchases, including:
◦ Placing minority or women-owned businesses on the SFAs list of vendors to solicit
◦ Assuring that minority and women-owned businesses are solicited whenever they are potential sources
Presenter
Presentation Notes
Section 200.321 of the Uniform Grants Guidance provides guidance on contracting with minority and women-owned businesses. An MWBE is defined as a business in which at least 51% is owned, operated and controlled by: Ethnic minority (African American, Asian American, Hispanic American or Native American); A woman; or A service-disabled military veteran When possible, SFAs must take steps to assure that minority or women-owned businesses are used for purchases, including: Placing minority or women-owned businesses on the SFAs list of vendors to solicit and Assuring that minority and women-owned businesses are solicited whenever they are potential sources
2018-2019 REQUESTFOR PROCUREMENT DOCUMENTATION
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Presentation Notes
Once your procurement review sheet, vendor paid list, purchasing policy and code of conduct are received, vendors will be selected and you will received a request for procurement documentation.
Micro Purchases ◦ Purchases made without first soliciting
competitive quotes (Must be under $10,000)
◦ SED will request: ◦ Purchase orders and vendor receipts/invoices
(3 from one month, 1 per month from 3consecutive months, or 1 per quarter)
◦ SFA must explain how it was determined that the prices of the products purchased were reasonable
◦ SFA must explain how purchases were equitably distributed among qualified sources
◦
Presenter
Presentation Notes
Procurement by Micro-Purchase is the acquisition of supplies or services. The Micro Purchase threshold at the federal level has been raised to $10,000. Purchases made without first soliciting competitive quotes must be under $10,000. To the extent practicable, micro-purchases must be distributed equitably among qualified suppliers. SED will request: Purchase orders and vendor receipts/invoices (3 from one month, 1 per month from 3consecutive months, or 1 per quarter) SFA must explain how it was determined that the prices of the products purchased were reasonable SFA must explain how purchases were equitably distributed among qualified sources
Small/Informal Purchases ◦ Vendors were informally contacted for quotes
prior to purchasing(must be below the smallpurchase threshold)
◦ SED will request:
◦ Purchase orders and vendor receipts/invoices (3 from one month, 1 per month from 3 consecutive months, or 1 per quarter)
◦ Solicitation Document (showing what was solicited for)
◦ Responses Received (price rate/quotations)
Presenter
Presentation Notes
The Small Purchase threshold at the federal level has been raised to $250,000. NY state limit is $20,000 for local government and public schools only. Purchases that will exceed the federal, state or local small purchase threshold must follow formal procedures. There are sealed bids (IFB’s), or proposals (RFP). Vendors were informally contacted for quotes prior to purchasing(must be below the small purchase threshold). SED will request: Purchase orders and vendor receipts/invoices (3 from one month, 1 per month from 3 consecutive months, or 1 per quarter) Solicitation Document (showing what was solicited for) Responses Received (price rate/quotations)
Formal Contracts (BOCES &
Other)
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Presentation Notes
An Invitation for Bid(IFB) is a competitive, formal, sealed bid method to obtain a price quote.
Food Service Management
CompanyContracts
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Presentation Notes
A Food Service Management Company is defined as “ a commercial enterprise or a nonprofit organization which is or may be contracted with by a School Food Authority(SFA) to manage any aspect of the school food service.
ProcessingContracts
◦ Vendors were informally contacted for quotesprior to purchasing(must be below the smallpurchase threshold)
◦ SED will request:
◦ Purchase orders and vendor receipts/invoices (3 from one month, 1 per month from 3 consecutive months, or 1 per quarter)
◦ Solicitation Document (showing what was solicited for)
◦ Responses Received (price rate/quotations)
Presenter
Presentation Notes
The small purchase threshold at the federal level has been raised to $250,000. NY state limit is $20,000 for local government and public schools only. Purchases that will exceed the federal, state or local small purchase threshold must follow formal procedures. There are sealed bids (IFBs), or proposals (RFP).
Upon completion of the Procurement Review, SFAs will be sent a Corrective Action Plan(CAP) form or formal letter that includes technical assistance and any corrective action that must be taken. If you have any questions about the Procurement Review, please call your Child Nutrition Rep or email the training team at [email protected]. Thank you!
