Presented by Jan Bodnar & Lynn
• 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
• 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 !
• Open and free competition
• 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
• Fair and cost efficient for all
• Avoid conflict of interest
• What kind?
• What size?
• Extra features?
• Specific features?
Bids / Quotes
Source: 7CFR 3016 – applies to Everyone.
• Follow state processes
• Geographic preference not permitted
• Cannot avoid bid process by breaking up
• Note: Child Nutrition funds generally not
allowable for building or construction
• Even if you anticipate only one bid –
• 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
– Call various sources
– Look in trade magazines
– Shop around
– Spend your time on the “20% of the
times that use up 80% of your
• Request samples to test
• Prepare without company
representatives present and follow
• Scorecards to document
• Involve students in taste testing
• Cost, appearance, palatability, nutrition
• Limit number of items sampled per event
• Surplus from other districts or federal -
no bid required
• Purchasing cooperatives – ensure that
free and open competition is documented
• Purchasing locally grown produce –
• Commodity processed items
• Purchasing from other government
• Generally – NOT allowed
• Farm Bill exceptions
– Unprocessed agricultural products
• Locally grown / locally raised
– Butchering, including grinding is NOT
– Forming into something IS processing
• A material change the SFA MUST be
• 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
• 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)
• Public Demands
– Higher Standards than private
– Lapses stain the reputation of
the entire district!
– Damages can be immeasurable!
• Providing one vendor’s cost to another
• Accepting cash or gifts from vendor
• Showing preference to vendor due to
outside pressure (community,
management, long term relationship,
• Conflict of Interest
• Gifts / Donations / Charities
• Special Treatment
– Providing information to only one vendor
• Personal Benefit
• The Decider is
– An employee, officer or agent
– Any member of the immediate
– His or her partner
– An organization employs or is
about to employ any of the above.
• General rule
– If you question whether it’s right or wrong
–DON’T DO IT!!!
DO DO NOT
• Competitive • Allow a company to
• Specific write the bid
• Clear • Promise the purchase
• Use geographic
• Buy American preferences (one
• Seek best price exception)
• Be wary of “sole • Let Vendor make
source” your decisions.
Call CDE with any questions or concerns!
Share your experiences!