procuring local foods - school nutrition · 2014-07-16 · » from food processors » through dod...

Procuring Local Foods for Child Nutrition Programs

United States Department of Agriculture

Food and Nutrition Service

Christina Conell

Program Analyst

Laura Brown

Program Analyst

SNA State Agency

Meeting

December 11, 2013

Introductions

» What state are you from?

» What is your role?

» What do you hope to learn

today?

Overview

» Procurement principles and regulations

» Procurement methods

» Sourcing locally, and correctly!

» The Geographic Preference option

» Incorporating local foods into school

meals: an example

» Resources

» Questions

» Identify sources of local food » Understand the mechanisms for local

sourching » Understand the geographic

preference option » Know where to go for additional

procurement guidance

Learning objectives

» An SFA wants to procure about 90,000 pounds of local carrots for one school for the whole year and estimates that the product will cost about $100,000. What are the SFA’s options for procuring the carrots?

Scenario 1

Procurement

principles and

regulations

What is procurement?

Procurement is the purchasing of goods and services. The procurement process involves:

Planning Drafting

Specifications

Advertising the

Procurement

Awarding a Contract

Managing the Contract

Procurement Principles

4 Key Concepts

1. Competition

2. Responsive and Responsible

3. American Grown

4. Know Your Federal, State and Local

Regulations

1) Competition

»Competition is essential to

ensure low cost and good

quality of goods and services.

1) Competition killers

Do not… » Place unreasonable requirements on

firms; » Require unnecessary experience and

excessive bonding; » Give noncompetitive awards to

consultants; » Have organizational conflicts of interest; » Specify only brand name products; or, » Make arbitrary decisions in the

procurement process.

2) Responsive and responsible

» Awards must be made to vendors that

are responsive and responsible

» Responsive means that the vendor submits a

bid that conforms to all terms of the

solicitation

» Responsible means that the vendor is capable

of performing successfully under the terms of

the contract

3) The Buy American provision

» The National School

Lunch Act requires SFAs

to purchase

domestically grown and

processed foods to the

maximum extent

practicable.

4) Procurement rules

» Be familiar with all procurement

requirements, at the federal, state and

local levels

» SFA is responsible for complying with all

levels of regulations.

» In some cases, state and federal regulations may be

in conflict with each other.

State procurement policies

» What State policies do you have?

» What is your State’s small purchase threshold?

» Does your State have legislation promoting farm to

school?

» Does your state require vendors to carry liability

insurance? If so, how much?

» Does your state allow both RFPs and IFBs?

» Are there other State-specific guidelines?

State, federal, and nonprofit support

F2S Coordinators, Depts of Ag

F2S Coordinators, Depts of Ed

F2S Coordinators, Depts of Ag & Ed

States with farm to school legislation

Procurement

methods

Procurement methods

Informal Small Purchase

(Requires price quotes from at least 3 bidders)

Formal Sealed Bids (IFBs)

& Competitive Proposals (RFPs)

(Requires public advertising)

≤ $150,000 > (Small Purchase Threshold)

The formal procurement process

Develop solicitation.

Publicly announce the IFB/RFP.

Evaluate bidders using established

criteria.

Award the contract to the most

responsive and responsible bidder

at lowest price.

Manage the contract.

Competitive sealed bidding

» Procurement by competitive sealed

bidding is done by issuing an invitation for

bid (IFB).

» Use it when:

» A complete, adequate, and realistic specification is

available.

» The contract can be awarded on the basis of price.

Competitive proposals

» Procurement by competitive proposal is

done by issuing a request for proposal

(RFP).

» Use it when:

» Conditions aren’t appropriate for a sealed bid.

» Price won’t necessarily be the sole basis for the

award.

The informal procurement process

Develop your specs in writing

Identify and notify at least 3 sources eligible, able, and willing to provide

products.

Evaluate bidders’ responses to your specs.

Determine most responsive and

responsible bidder at lowest price and

award contract.

Manage the contract.

Small purchase procedure

» Use it when:

» The estimated amount of your purchase

falls below your small purchase

threshold.

Sourcing locally, and correctly!

Buying local

1. WHAT: Which types of products?

2. WHERE: From which types of sources?

3. HOW: The mechanics of sourcing local

correctly.

1) Local WHAT?

Vegetables Meat, Poultry

and Fish Beans,

Grains, and

Flour

Dairy Fruits

Eggs

2) WHERE to get local foods

» Through distributors

» Through food service

management companies

» From food processors

» Through DoD Fresh

» From individual producers

» From producer co-ops/food

hubs

» From school gardens

3) How to source local

» Using geographic preference; » Picking the low hanging fruit; » Including related characteristics in

specifications; » Approaching only local sources under an

informal procurement; » Including a desire for local items in distributor or

FSMC solicitations; » Choosing local foods in the DoD Fresh catalog, » Using USDA Foods to augment your local

purchases; and, » Forward contracting.

» Some local products, because of their

nature, are likely to be cheaper than

non-local competitors.

» Encourage districts to ask their

providers where their food is coming

from— they might be surprised!

Procure the easy ones first

Use specifications

Districts can include specifications such as

“harvested within 48 hours of delivery” that

will increase the chances that a local vendor

will win the contract.

Other potential specifications

» When purchasing local foods, some things

to consider are:

» Degree of ripeness or maturity

» Freshness (age)

» Condition upon receipt of product

» Temperature

» Size uniformity

» Other quality standards (such as “organic,” “no-till,”

“no-spray,” etc.)

Example: San Diego Unified

Foods must be: » Grown on farms that are less than 50 acres in size

and grow more than five food crops at one time; » Grown on farms that utilize a majority of hand

harvesting, hand packing or human labor power in growing, harvesting. and packing of food;

» Delivered within 24 to 48 hours of harvest; » Delivered directly to multiple SDUSD school sites

(not a central warehouse). The number of drops is to be determined by the district on a case-by-case basis;

Specifications

Exercise

Products

» Lettuce for salad

» Turkey for chili

» Tomatoes for sandwiches

Approach only local vendors

» For purchases under their small purchase

threshold, districts can get quotes from 3

(or more) local farms or vendors.

» But remember:

» They need to write specifications.

Example from Tulsa, OK

» Tomatoes » Hydroponic

» Available 10 months of the year

» US No. 1, fully ripe, red color-stage 5-6

» 10 day shelf life

» Organic

» Delivered to 18 schools 2 days prior to service

» Proof of liability insurance due with bid

» GAP certified

» 36 cases per week

Sample bid documentation

Vendor Tom’s Toms Vickie’s Vines Fresh Network

Date received July 1 July 6 July 10

Responsive and Responsible

Yes Yes No, can only deliver 5 months of year

Price/lb $2.20 $2.05 $2.75

Splitting procurements

» SFAs cannot arbitrarily divide

purchases to fall below the small

purchase threshold.

» In some instances, however,

characteristics of a product or market

justify the need to separate it from the

overall food procurement.

Buying local through a distributor

» Distributors are vital!

» One-stop shop

» Delivery

» Most hold liability insurance

» To purchase local through a distributor:

» Include this desire in the solicitation

» Encourage districts to ask if any products

currently on the contracted list are sourced local

Example: Using distributors

» Union Public Schools – Tulsa, OK

» Springfield District – Eugene, OR

» Knox County Schools – Knoxville, TN

» Harrisonburg City Public Schools –

Harrisonburg, VA

Buying local through a FSMC

» Food Service Management Company Contract » Districts must specify what types of local products

and when they would like them in the solicitation and contract.

» Cost reimbursable and fixed price contracts » Cost reimbursable contracts require that FSMC follow

procurement regulations.

» Fixed price contracts are more flexible for the recipient, but may be more difficult for the vendor to manage.

Example: FSMC solicitation

» Eugene 4j District – Eugene, OR

» Worked with Sodexo, a FSMC, to add a

distributor who is committed to working with

local producers to the approved supplier list.

» Rochester County Schools – NH » Working with a GAP certified apple grower

Using a forward contract

» Purchasing product before harvest

» Provides producer with a guarantee

» Ensures the farmer will plant and pack the supply needed

» Understand the risk

» What happens if the crop fails?

» Must follow competitive procurement process

Example: Using a forward contract

» North Carolina

» Issues a solicitation for different products

every quarter.

» Not too far in advance, which allows for a

steady price and more predictable quantity.

» Enables districts to have a steady supply and

guarantees a market for growers.

Example: Oregon and Oklahoma

» Farm to school coordinators work

with distributors

» Connect distributors to local growers

» Set up commitments between producers

and distributors

Working with DoD Fresh

» DoD Fresh offers an opportunity to use

USDA Foods entitlement dollars on

fresh produce

» DoD contracts with produce vendors across

the country

» Many vendors purchase regionally grown

produce

FFAVORS

Example: Working with DoD Fresh

» North Carolina » NC Dept. of Agriculture fosters relationships with growers

and DoD vendor.

» State even facilitates transportation from farm to DoD

vendor facility.

» Connecticut » Holds an annual Know Your Farmer Meeting to facilitate

producer relationships with the DoD Vendor.

» Texas » Works with DoD vendors to select at least 5 TX Grown

products that will be available at different times.

Locally produced USDA Foods

» 100% American grown

» Every product is local to someone!

» Be aware of what is produced in your

region and order those products

» Explore state processors

USDA Foods by region

» Western

Pollack, Cheese, Apricots,

Peaches, Tomatoes,

Pears, Potatoes

» Southwest

Rice, Beans, Peanut butter,

Beef

» Southeast

Chicken, Peanut butter,

Catfish, Turkey, Rice,

Flour

» Northeast

Flour, Corn, Green beans

» Mid Atlantic

Corn, Pasta, Beans,

Chicken

» Midwest

Apples, Cherries, Beef,

Beans, Carrots, Cheese,

Green beans

» Mountain Plains

Beans, Beef, Flour, Pasta,

Pork

Donated foods

» Procurement regulations do not

apply to donated foods

» Districts should consider food

safety issues and menus before

accepting foods

» Document receipt of goods

Choosing a source and a mechanism

» Districts can target multiple sources

with the same mechanism.

» Several of the mechanisms can be

used in combination.

» An SFA works directly with a local

grower to source fresh herbs. The

value of the products is less than

$1,000. What are the SFA’s

options for purchasing the herbs?

Scenario 2

The Geographic

Preference

option

The Geographic Preference option

» Authorized by Section 4302 of

Public Law 110-246, the Food,

Conservation, and Energy Act of

2008 (AKA the 2008 Farm Bill)

» Final Rule published in April, 2011

Bringing local into the cafeteria

» Geographic

preference can be

applied to most

school food

purchases for

unprocessed

agricultural

products.

USDA Foods

Cash Assistance

DOD Fresh

Who and how to define local?

» School Food Authority defines local

» Local can be defined by:

» Region

» State

» Mileage

» Different definitions for different products

What is “unprocessed”?

» Cooling, refrigerating, and freezing

» Peeling, slicing, dicing,

cutting, chopping,

shucking, and grinding

» Forming ground products into patties

» Drying and dehydrating

» Washing, packaging, vacuum packing, and

bagging

» Adding preservatives to

prevent oxidation

» Butchering livestock or poultry

» Pasteurizing milk

“Unprocessed” agricultural products retain their inherent character. These are the allowed food handling and preservation techniques:

How to incorporate a geographic preference

To apply a geo. pref., districts should: 1) Define local.

2) Determine what type of procurement

method to use.

3) Decide how much “preference” local

products will receive.

4) Be sure your solicitation makes perfectly

clear how the preference will be applied.

Example 1: 1 Penny = 1 Point

Owen’s

Orchard

Apple Lane

Farms

Bob’s Best

Price $1.97 $2.05 $2.03

Meets geographic preference?

No Yes (10 points) No

Price with preference points

$1.97 $1.95 $2.03

Example 2: Percentage preference

Produce

Express

Ray’s

Produce

F&V

Distribution

Contract Price $32,000 $35,000 $34,000

% F&V Able to Provide From Within the State

20 80 50

Geographic Preference Points to Respondent able to meet >60% Local Items

No Yes (10% pref.)

No

Price for comparison $32,000 $31,500 $34,000

10% price preference will be awarded to any bidder that can source at least 60% of the products from within the state.

Geo. pref. sliding scale

» 10 preference points will be awarded to

vendors able to provide over 70% local, 7

points for 50-69% and 5 points for 25-49%.

Sliding scale of percentage

local

Preference

points

70% and more local products 10

50-69% local products 7

25-49% local products 4

Laurie’s

Legumes

Paula’s Pulses Gary’s Grains

Price = 40 30 35 40

Contractor ability to perform all

specifications

Product quality = 15

Delivery = 10

Packaging and Labeling = 5

25 30 30

Three references, past history = 10 10 10 10

Able to provide farm/facility tour

or classroom visits = 5

0 5 5

Able to provide state of origin on

all products = 5

0 5 5

Ability to provide sourced within

the state products = 10

0 10 7

100 possible points 65 95 97

Example 3: Geo. pref. in an RFP

Geographic preference worksheet

» Work in teams of two or three.

» Pretend you’re working with a SFA to buy a

local product (of your choosing).

» Fill in each step outlining:

» How the district will define local;

» What procurement method they will use;

» How much preference will be applied; and,

» The mechanism for applying the preference.

Incorporating local foods into school meals: an example

Monday Tuesday Wednesday Thursday Friday

Submarine Sandwich on Whole Wheat Roll Refried Beans Jicama Green Pepper Strips Cantaloupe wedges Skim Milk

Whole Wheat Spaghetti with Meat Sauce Whole Wheat Roll Green Beans Broccoli & Cauliflower Kiwi Halves Low-fat Milk

Chef Salad Whole Wheat Soft Pretzel Corn Baby Carrots Banana Skim Milk

Oven-Baked Fish nuggets Whole Wheat Roll Mashed Potatoes Steamed Broccoli Canned Peaches Skim Milk

Whole Wheat Cheese Pizza Baked Sweet Potato Fries Grape tomatoes Applesauce Low-fat Milk

Evolution of a local menu






Whole Wheat Cheese Pizza Baked Sweet Potato Fries Grape tomatoes Strawberries Low-fat Milk Harvest of the month: Strawberries from Seascape Farm.







Whole Wheat Cheese Pizza Baked Sweet Potato Fries Grape tomatoes Strawberries Low-fat Milk





Chef Salad Whole Wheat Soft Pretzel Corn Carrots Banana Skim Milk





Submarine Sandwich on Whole Grain Roll Refried Beans Jicama Green Pepper Strips Cantaloupe wedges Skim Milk



Oven-Baked Fish nuggets Whole Grain Roll Mashed Potatoes Steamed Broccoli Canned Peaches Skim Milk




Submarine Sandwich on Whole Grain Roll Refried Beans Jicama Fresh Peas Cantaloupe wedges Skim Milk



Oven-Baked Fish nuggets Whole Grain Roll Mashed Potatoes Steamed Broccoli Canned Pears Skim Milk




Local Lentil Patty Whole Grain Roll Refried Beans Jicama Fresh Peas Cantaloupe wedges Skim Milk


Chef Salad Local Spanish Rice with corn Carrots Banana Skim Milk

Oven-Baked Local Fish Sandwich on a Whole Grain Roll Mashed Potatoes Steamed Broccoli Canned Pears Skim Milk



Scenario 3

» An SFA has worked with the same dairy in

their state for over five years. The district

loves the product, but the contract will

expire at the end of school year. What are

some strategies the SFA might use to target

the same dairy or similar operations in the

state?

Scenario 1 – Anything to add?

» An SFA wants to procure about 90,000

pounds of local carrots for one school for

the whole year and estimates that the

product will cost about $100,000. What are

the SFA’s options for procuring the carrots?

Farm to school resources

Fact Sheets

Resources

» Geographic Preference Q&As

» Federal procurement regulations

» State and local procurement rules and

guidance

» Washington State Department of

Agriculture Guide

» National Food Service Management

Institute Online Training

FNS staff are here to help!

WRO

SWRO

MPRO MWRO

SERO

MARO

NERO

National Office

Thank you! Questions?

Christina Conell

703.305.2743

[email protected]

Example: Harrisonburg City Public Schools

Ground beef must be: » From cattle specifically raised for beef production

(culled dairy cows are not acceptable); » Cattle are raised without the use of hormones or

sub-therapeutic antibiotics, are grass fed or grass fed and grain finished;

» Slaughtered and processed in a USDA-inspected facility;

» Ratio of lean to fat should be 85/15 or leaner; and, » Labeled with the name of the company, product

type, and a unique indicator to trace the product to the animal/date of slaughter.

procuring local foods - school nutrition · 2014-07-16 · » from food processors » through dod...

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