Docstoc

Procurement

Document Sample
Procurement Powered By Docstoc
					      Procurement


Presented by Jan Bodnar & Lynn
           Warner
          April 2011
             Procurement
• Proper procurement results in:
  – Nutritious Meals at the best price

  – Good Financial Management

  - Procurement is menu driven

  First Choice: A Purchasing Systems Manual
    for School Food Service
              Procurement
• USDA Regulations
  – 7 CFR 210, 215 and 220
  – 7 CFR 3016
  – 7 CFR 3019
• State Requirements
• Local Requirements
  – Follow your district’s purchasing guidelines

  Follow most restrictive requirements !
             Today’s Topics
•   Documentation
•   Open and free competition
•   Specifications
•   Bids/quotes
•   Preferences
•   Ethics
            Documentation

• Formal Bid Process:
  – Keep all documents sent out and received
  – Losing vendors DO call and ask for proof


• Small Purchase Process: (under bid limit)
  – Still must be competitive
  – Keep documentation of who was contacted,
    when and the results
  Free and Open Competition
• Best TOTAL price obtained

• Purchases based on specifications you
  have listed

• Fair and cost efficient for all

• Avoid conflict of interest
           Specifications
• What kind?
• What size?
• Extra features?
• Specific features?

http://www.olemiss.edu/depts/nfsmi/Info
  rmation/firstchoice/chapter7.pdf
            Bids / Quotes
Source: 7CFR 3016 – applies to Everyone.
• Follow state processes
• Geographic preference not permitted
  3016.36(c)(2)
• Cannot avoid bid process by breaking up
  categories
• Note: Child Nutrition funds generally not
  allowable for building or construction
             Helpful Hints
• Even if you anticipate only one bid –
  advertise
• A “Bottom line” bid can encourage more
  vendors to bid
• Total amount purchased will exceed bid
  limit (e.g., canned fruit over the year)
• Equipment – limit is cost of equipment
  and doesn’t include trade-in value
       Under the bid limit?
• Obtain quotes or you CAN use a formal
  bid!
  – Call various sources
  – Look in trade magazines
  – Shop around
  – Spend your time on the “20% of the
    times that use up 80% of your
    dollars!”
      Comparisons/Samples
• Request samples to test
• Prepare without company
  representatives present and follow
  written procedures
• Scorecards to document
• Involve students in taste testing
• Cost, appearance, palatability, nutrition
• Limit number of items sampled per event
          Other Situations
• Surplus from other districts or federal -
  no bid required
• Purchasing cooperatives – ensure that
  free and open competition is documented
• Purchasing locally grown produce –
  requires bid
• Commodity processed items
• Purchasing from other government
  contracts
     Geographic Preference
• Generally – NOT allowed
• Farm Bill exceptions
  – Unprocessed agricultural products
    • Locally grown / locally raised
• Unprocessed
  – Butchering, including grinding is NOT
    processing
  – Forming into something IS processing
         Material Change
• A material change the SFA MUST be
  rebid.

• Material –
  – A change that is substantial enough
    that if other bidders had been aware
    of the change during the bidding
    process they might have bid
    differently.
             Sole Source
• Sole Source is the only maker of a
  certain product or item.
• One responder to a bid or request for
  quotes is not sole source.
• Is it truly sole source? (SFA decision)
• Unspoken agreements between
  companies not to bid in one another’s
  territory? (Collusion-difficult to prove)
        Purchasing Ethics

• Public Demands
  – Higher Standards than private
    sector
  – Lapses stain the reputation of
    the entire district!
  – Damages can be immeasurable!
        Unethical behavior
• Providing one vendor’s cost to another
  before bid
• Accepting cash or gifts from vendor
• Showing preference to vendor due to
  outside pressure (community,
  management, long term relationship,
  etc.)
          Purchasing Ethics
• Conflict of Interest
  – Real
  – Perceived
• Gifts / Donations / Charities
  – Acceptable?
• Special Treatment
  – Providing information to only one vendor
• Personal Benefit
             Conflicts
• The Decider is
  – An employee, officer or agent
  – Any member of the immediate
    family
  – His or her partner
  – An organization employs or is
    about to employ any of the above.
         Purchasing Ethics

• General rule
  – If you question whether it’s right or wrong


          –DON’T DO IT!!!
                Summary
DO                   DO NOT
• Competitive        • Allow a company to
• Specific             write the bid
• Clear              • Promise the purchase
                       beforehand
• Reasonable
                     • Use geographic
• Buy American         preferences (one
• Seek best price      exception)
• Be wary of “sole   • Let Vendor make
  source”              your decisions.
            Questions?

Call CDE with any questions or concerns!

       Share your experiences!

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:27
posted:7/27/2011
language:English
pages:22