Introduction to Procurement Wendy Barkley, SNS Assistant Director - PDF document

Introduction to Procurement Wendy Barkley, SNS Assistant Director OSPI Child Nutrition Services Introduction to Procurement 1

We Will Review… Recognize and use common Create a Procurement Plan and Code procurement vocabulary of Conduct for your organization Describe the three purchasing Find resources to help you do thresholds their requirements compliant procurement Today, our learning objectives are all about preparing Child and Adult Care Food Program procurement plans and code of conduct which will establish basic parameters for purchasing. Once basic parameters are established, the organization can begin purchasing within the federal guidelines. We will review basic procurement guidelines too. Slide: Recognize and use common procurement vocabulary Create a Procurement Plan and Code of Conduct for your organization. Describe the three purchasing thresholds and the procurement requirements of each Find resources to help you do compliant procurement 2

Resources for this Presentation 1. Sponsor Checklist for Procurement 2. Sponsor Template for Procurement If you believe your organization does not already have a procurement plan or code of conduct, you will need to develop one. We have made a handy checklist and template to help with this process. It’s the first step to ensure you are purchasing correctly. Please have these handouts to reference throughout the presentation. It will help you understand how to document your plan and how you can purchase correctly. You can find these linked next to this presentation on the Training webpage 3

Why all the Focus on Procurement?? 7 CFR 226.22 CACFP Procurement 2 CFR 200.318 - .326 Uniform Grant Guidance Proper procurement has always been a requirement when using federal funds. The funds you receive in the way of reimbursement for meals served in your programs are Federal funds. Most recently, in December 2013 the federal OMB issued new rules, commonly referred to as the “Uniform Grant Guidance”. The new guidance significantly changed the way federal funds are administered. At about the same time, USDA mandated that a Procurement Review be done for all sponsors in addition to the Administrative Review to ensure program integrity – that federal dollars are being spent appropriately through fair, open and competitive procurement processes. It ensurSes that materials and services are obtained efficiently and economically and in compliance with applicable laws. .It doesn’t matter if you are a small family day care home, a center with 50 children in your care or a larger organization, the procurement requirements apply to all Child Nutrition Program operators that are receiving federal reimbursement through the Child and Adult Care Food program. 7 CFR 226 : https://www.ecfr.gov/cgi ‐ bin/text ‐ 4

idx?SID=2f081cae16887d5ce0b1673c32ff67a2&mc=true&node=pt7.4.226&rgn=div5 #se7.4.226_122 2 CFR 200: https://www.ecfr.gov/cgi ‐ bin/text ‐ idx?SID=8c66e85932c85bc4260aa20a76b3cade&mc=true&tpl=/ecfrbrowse/Title02/2 cfr200_main_02.tpl 4

What is Procurement? Buying Stuff???? More than just buying stuff…. A multi-step PROCESS for obtaining goods, products, and/or services, at the best possible price. Here is the fancy definition. However, there is a difference between procurement and purchasing. Procurement is the work you do before you purchase an item. 5

Do you have experience with PROCUREMENT? Buying Groceries Purchasing a household appliance Contracting for house/car repair Certainly we all have some level of experience with procuring goods and services. We buy groceries, we purchase household appliances, and we contract for house and car repairs occasionally. Most of you would raise your hand when asked if you compare prices of products at the grocery store. Most would raise their hands when asked if they research brands of appliances to find out which brand has the best reviews. And, most would say yes to getting quotes or bids on house and car repairs. Recall that we are creating free and open competition to obtain goods and services at the best price. Procurement is centered around buying goods and services AKA Food and Equipment that meet the specific needs of our programs. Quality nutritious food that meets meal pattern requirements and quality equipment that works for your style of meal production. Proper procurement ensures that you get the 7 “Rs” of procurement: The right – Goods and Services Quantity Time Place Source 6

Price Service 6

Procurement Process  Developing procurement procedures Who is allowed to purchase?  Forecasting and planning What are your “rules”  Selecting the proper procurement method around purchasing?  Developing specifications / solicitation  Evaluating quotes / bids / proposals  Purchasing / awarding contract  Receiving / managing the contract Here is the procurement process – we’ll go through each step. CLICK. The first step is about procedures. Read bubble. Go to next slide. 7

Procurement Process What do we  Developing procurement procedures need?  Forecasting and planning How much do we  Selecting the proper procurement method need?  Developing specifications / solicitation  Evaluating quotes / bids / proposals  Purchasing / awarding contract  Receiving / managing the contract Writing the menu and making the grocery list. 8

Procurement Process  Developing procurement procedures How much are we  Forecasting and planning spending?  Selecting the proper procurement method  Developing specifications / solicitation  Evaluating quotes / bids / proposals  Purchasing / awarding contract  Receiving / managing the contract We’ll go in to more detail about this – about which procurement method you use ‐ micro, small or formal however it’s is based on your forecasting and planning and is all about the amount of money you will be spending. 9

Procurement Process  Developing procurement procedures  Forecasting and planning  Selecting the proper procurement method  Developing specifications / solicitation What type or kind?  Evaluating quotes / bids / proposals What features?  Purchasing / awarding contract  Receiving / managing the contract We’ll talk more about specifications when we talk about the requirements of the different methods – about what specifications mean. And how to issue a solicitation – or the “ask”. 10

Procurement Process  Developing procurement procedures  Forecasting and planning  Selecting the proper procurement method  Developing specifications / solicitation Who has the best price  Evaluating quotes / bids / proposals that meets the specifications I’m  Purchasing / awarding contract looking for?  Receiving / managing the contract Look at all the responses to the quotes you have received or your solicitation and determine who you are going to buy from. 11

Procurement Process  Developing procurement procedures  Forecasting and planning  Selecting the proper procurement method  Developing specifications / solicitation  Evaluating quotes / bids / proposals  Purchasing / awarding contract Making the purchase!  Receiving / managing the contract Telling the successful and unsuccessful responders who you intend to do business with and awarding the contract (legally binding document) to the successful vendor. 12

Procurement Process  Developing procurement procedures  Forecasting and planning  Selecting the proper procurement method  Developing specifications / solicitation  Evaluating quotes / bids / proposals Did you get what you paid for?  Purchasing / awarding contract Does it have the qualities and  Receiving / managing the contract features you determined you needed? Many believe that once the procurement process is finished by identifying who you will buy from is the end of the process. But procurement can be considered an ongoing process. Throughout the length of the contract we are monitoring to ensure we get what paid for. – and if the answer to any of these questions is “no” it’s time to take action. 13

Procurement – Why? • PROCUREMENT embraces the concept of COMPETITION Free and open COMPETITION means that everyone is on a “level playing field” • If the “playing field” is level, vendor participation is encouraged/increased • If more vendors are vying for the opportunity, the cost of products and services will be lower in price The process needs to be transparent, PROCUREMENT embraces the concept of COMPETITION • Free and open COMPETITION means that everyone is on a “level playing field” If the “playing field” is level, • vendor participation is encouraged/increased If more vendors are vying for the opportunity, • the cost of products and services will be lower in price . 14