Post on 21-Jan-2016
transcript
A School’s Guide to Purchasing Washington-grown Food
A CPPW Project made possible by funding fromthe Dept. of Health and Human Services and Public Health-Seattle & King County
OBJECTIVES
•Describe the major federal, state and local school district requirements that impact purchasing Washington-grown foods.
•Discuss how to develop an informal and formal procurement request for purchasing local produce
KEY TOPICS• Geographic Preference Option
• Local Farms-Healthy Kids Act
• General Procurement Requirements
• Small Purchase Thresholds at federal and state level
• Elements and ideas for procurement requests that preference locally and regionally-grown foods
Objectives and Key Topics
Buying WA Grown Food
Sorting out the rules
• Geographic Preference Option
• Requirements for Competitive Procurement
• Small Purchase Thresholds
Geographic Preference OptionRULE 1: School districts must define “local” and may do so according to their preference
Geographic Preference Option
Cooling; refrigerating; freezing; size adjustment made by peeling, slicing, dicing, cutting, chopping, shucking, and grinding; forming ground products into patties without any additives or fillers; drying/dehydration; washing; packaging (such as placing eggs in cartons), vacuum packing and bagging (such as placing vegetables in bags or combining two or more types of vegetables or fruits in a single package); addition of ascorbic acid or other preservatives to prevent oxidation of produce; butchering livestock and poultry; cleaning of fish; and the pasteurization of milk.
RULE 2: Geographic preference is limited to “minimally processed” food.
Geographic Preference Option
RULE 3: Local food cannot be “required” in a procurement request, only “preferred.”
You may provide a “defined advantage in the procurement process.”
RULE 4: Geographic preference can be applied to the origin of the product, not the location of the vendor.
FrozenSliced
WashedPackaged
DriedPasteur-
ized
NOT
CookedHeatedPickledCanned
LocalMinimally processed
USDA regulations on geographic preference
As defined by the School District
Products
NOT
People -VendorsFarmers
Producers
What about Washington State Law?
Geographic Preference OptionRULE 1: School districts must define “local” and may do so according to their preference
WA Law: Exemption for Washington-Grown Food
State or Federal Law?• Federal rules on bidding in child nutrition programs are
defined in the Uniform Administrative Code (Common Rule).
• State laws apply to food purchases, as long as they fit the Common Rule requirements, UNLESS states exempt schools from their purchasing laws.
• Since the 2008 Local Farms-Healthy Kids Act, Washington State law provides an exemption from the state procurement requirements when schools purchase Washington-grown food.
• For WA-grown food, federal rules apply. For all other food, state rules apply.
Washington School Procurement Law Washington School Procurement Law
$40,000 - $75,000
$40,000 - $75,000
Formal
Informal
$75,000 or more$75,000 or more
Less than $40,000
Less than $40,000
No competition
required
Food and other purchases
Food and other purchases
?
Small Purchase Threshold• A competitive process is required for all school food
purchases using federal dollars.
• Without a geographic preference or with a preference area beyond Washington State, the state threshold applies and a formal procurement is required for purchases of $75,000 or more.
• For purchases of Washington-grown food, the formal bid threshold is $150,000, rather than $75,000.
• Any school district may set its own small purchase threshold that is lower than USDA’s $150,000 threshold or the state $75,000 threshold, but cannot establish a threshold that is higher.
Informal
Yes, WGF
Yes, WGF
No, not WGF
No, not WGF
Less than $75,000
Less than $75,000
Formal
Formal
Informal
$150,000 or more$150,000 or more
Less than $150,000
Less than $150,000
$75,000 or more$75,000 or more
Are you applying a geographic preference for
Washington grown food? (WGF)
Are you applying a geographic preference for
Washington grown food? (WGF)
How do we apply a geographic preference?
A set number of points can be applied for providing products from within the geographic preference area
The points are equated to monetary amounts for a price preference.
The monetary amount is then deducted from the bid or quote amount, for comparison purposes.
Note: The deduction only applies to determining the winning vendor and would not affect the actual price paid to the vendor.
Simple Point/Price System (USDA)
1 Point = 1 Penny Example
Vendor A Vendor B Vendor CPrice offered $1.97 $2.10 $2.03
Meets Geographic Preference? No Yes (10 points) No
Price with Preference Points $1.97 $2.00 $2.03
Result: Vendor A is awarded the contract, even though they are not able to provide local products. Even with preference points, Vendor B was not able to compete on price.
Example: 10 preference points will be given to vendors who provide locally raised and grown agricultural products. 1 point would equal 1 cent. Solicitation requires each vendor to: 1) determine if geographic preference applies; and 2) if so, deduct 10 cents from its bid price before submitting bid. The district receives three vendor responses, and verifies that the geographic preference was applied correctly by the vendors. The three prices are then compared, as follows:
Percent Price Preference
A price preference of a specific percentage is applied to those bids that meet your geographic preference.
Set a point threshold such that any vendor who receives a certain number of points will receive a percentage price preference on their bid.
Prices will be compared after that percentage reduction, and contract will be awarded to the lowest price.
Note that the actual price they quoted will be paid; the percentage reduction is simply a way of allowing for a higher price if your geographic preference is met.
Percent Price Preference Example
Point Systems
Use a point system for specifications and for preferences.
Points will be awarded for specifications, with a certain number awarded to the vendor with the lowest price bid.
Points will be awarded for geographic preference based on your adapted version of the Geographic Preference Point Chart.
Combined points will then determine which vendor is awarded the contract.
Point System ExampleVendor A Vendor B Vendor C
Price offered $32,000150 pts.
$33,000100 pts
40,0000 pts.
Points for items w/in 1st tier area (x% of 100% x 2)
30 x 2 = 60 50 x 2 = 100 80 x 2 =160
Points for items w/in 2nd tier area (x% of 100% x 1)
20 10 20
Points for acceptable substitutes (x% of 100%)
10 15 15
Total Preference points 90 125 195
Total Points, including those for price
240 225 195
NOTE: Could have other points for specifications
Sliding Scale under a Point System Example
General requirements20
Staff qualifications
Proposer references
Technical requirements 30
Product categories
Deliveries
Safety and sanitation
Cost45
Local, minimally-processed products up to 5
Total cost of products that are local
5 pts = 75% and more of the total cost is local products
3 pts = less than 75% and more than 50% of the total cost is local products
1 pt = less than 50% and more than 25% of the total cost is local products
Do we need to apply a geographic preference
to buy local food?
Informal
Yes, WGF
Yes, WGF
No, not WGF
No, not WGF
Less than $75,000
Less than $75,000
Formal
Formal
Informal
$150,000 or more$150,000 or more
Less than $150,000
Less than $150,000
$75,000 or more$75,000 or more
Are you applying a geographic preference for
Washington grown food? (WGF)
Are you applying a geographic preference for
Washington grown food? (WGF)
Informal Procurement
• Write down your product needs and specifications
• Send to at least 3 qualified vendors
• Document outreach and responses
• Select a vendor and make an agreement
Informal Procurement• Build your knowledge/contacts for farmers and
vendors who can supply local products– Letter to farms
– Review county, regional farm guides
– Visit farmers markets or wholesale markets
– Learn about food hubs and local distributors
• Consider procurement requests for seasonal produce, or special events
• Identify and plan for products available in specific seasons.
Buying WA Grown Food
BEFORE YOU START THE PROCUREMENT PROCESS:
1. Forecasting: Identify the products and quantities you will be purchasing, and estimate the total cost of the purchase.
2. Depending on dollar amount, determine whether to use formal or informal procurement method.
3. Plan your procurement procedure.
4. Define “local.”
5. Determine how you will apply geographic preference.
6. Where appropriate, adapt school policies.
Planning for Farm to School• Seasonal Fresh Produce
• September/October/November
• Review menus for breakfast, lunch, Fresh Fruit & Vegetable Program, special events– Seasonal interest and availability– What events do you want to participate in/host?– Ingredient substitution– Recipe development
• Seasonal Events– Taste Washington Day– October – National Farm to School Month– Eat Local for Thanksgiving
Planning for Farm to School
www.wafarmtoschool.org
Identify WA foods that work for youIdentify WA foods that work for you
Identify WA foods that work for youIdentify WA foods that work for you
Quantities, Cost Estimates and Quantities, Cost Estimates and SpecificationsSpecifications
• Based on:– Enrollment and meals served– Menus– Goals for local products
• Estimate costs and determine whether formal or informal
• Write clear specifications for your product needs
Buying WA Grown Food
PUTTING TOGETHER THE PROCUREMENT REQUEST
7. Communicate your intent to apply a geographic preference and your definition of “local.”
8. Define and communicate your evaluation criteria
9. Set vendor qualifications.
10.Write specifications to clearly state what products you want, the level of processing you require, etc.
11.State preferences, and how they will be weighted in the evaluation process.
12.Develop and commit to a plan for reviewing and selecting the successful vendor.
Model Geographic Preference Language “Local” defined as Washington Grown Food
1. Applying a geographic preference for Washington grown products for school food procurement [in Washington State].
a. This school district (“District”) or school food authority (“SFA”) desires to serve Washington grown products to its students.
b. Under federal law, this District [or “this SFA”], as the purchasing institution, has the authority not only to apply a “local” geographic preference to minimally processed foods, but also to determine what is “local” for the purposes of United States Department of Agriculture (USDA) programs such as the National School Lunch Program, the School Breakfast Program, the Fresh Fruit & Vegetable Program, the Special Milk Program, the Child and Adult Care Food Program, the Summer Food Service Program, and the Department of Defense Fresh Program.
c. This district [or “This SFA”] defines “locally grown products” as “Washington grown,” as defined under Local Farms – Healthy Kids Act section 6 (Revised Code of Washington section 28A.335.190). That definition states, “grown and packed or processed in Washington.” This district [or “This SFA”] will apply applicable federal procurement procedures.
d. As required under federal law, this district [or “this SFA”] will provide a price percentage preference of [XX] % [or insert other “point” or “credit” calculation system ] during evaluation of bids to “locally grown products” purchased for school food procurement, as defined under this geographic preference.
e. Pursuant to USDA regulations, the geographic preference in this section is applied only to “minimally processed” agricultural products that retain their inherent character.
Communicate Evaluation Criteria• Product specifications, price, vendor qualifications, and preferences
EVALUATION OF SOLICITATION: Award will be made to the lowest responsible contractor, after application of the geographic preference. The lowest responsible contractor will be determined based on an evaluation of the products available, price, delivery timelines and evaluation criteria shown hereafter. Such determination will, of necessity, require judgmental evaluations by district representatives. The decision resulting from the evaluation process as to which product best meets the needs of various programs remains the sole responsibility of the district and is final.
Evaluation Criteria• Product variety available for distribution.• Price per pound and number of servings per case.• Quality of the products offered. • Preference points earned for Washington-sourced product •Ability to meet delivery schedule and service history in general.• Agreeable and reliable billing procedures.
Product Specifications
• Product variety available for distribution.
• Quality of the products offered.
• Size of produce or number of pieces per case.
• Price - per pound and/or case count.
Product Specifications• Average number of days from harvest to delivery, or from (minimal)
processing to delivery, in the case of products that are minimally processed in a way that may allow the product to degrade over time
• Freshness and traceability– Identified Each shipping box/case to have farm name on it– Location Name of town, city or county where the harvesting was done– Traceable Name of farm, location of farm, date of harvest, and date
shipment was received from farmer
• Refrigeration of fresh produce from harvest or minimal processing to delivery or a requirement that it be unrefrigerated for no more than [xx] hours
Product Specifications• Presence or absence of
individual produce stickers or wax coatings
• Level of processing needed for specific products
• Additives or preservatives
Product Specificationsfor Food Safety
• Food safety and good agricultural practice assurances
may choose to require an acceptable response to a farm-based food safety questionnaire or evidence of GAPs or other voluntary food safety certification.
• Commitment to host a farm visit by school district nutrition services representative to review farm practices
• WSDA (or other) food processing license if providing minimally-processed produce items or other processed products
Buying WA Grown Food
IMPLEMENTING THE PROCUREMENT PROCESS
13.Adequately publicize the procurement opportunity
14.Fairly evaluate based on the vendor qualifications, specifications and preferences in your procurement request and award the contract to the selected vendor.
15.Execute a contract that matches your procurement specifications and preferences.
16.Manage the procurement. Keep documentation, monitor service, product quality, and price. Determine and communicate the compliance with the agreement you’ve made.
Get the word out to vendors• Consider how to reach vendors you’d like to
invite to submit a bid, proposal or quote– Prime vendors– Category vendors– Farms, farm cooperatives, or other small food
businesses
• WSDA may be able to help identify ways to reach vendors – Ex: Agriculture/food Listservs, Foodhub, Puget
Sound Food Network, Puget Sound Fresh, WSDA databases of interested farms and processors
Evaluate, Award and Contract
…based on the criteria, qualifications, specifications and preferences you defined in your procurement request
• Keep documentation.
• Monitor service, product quality, and price.
• Determine and communicate compliance with the agreement you’ve made.
Manage the Procurement
Tips, ideas and tools that will help schools use and buy more locally-grown and raised foods, including:
• seasonal menu planning information
• product specification and vendor qualification information
• on-farm food safety and kitchen food handling resources
• district-level policy examples for adapting nutrition and wellness policies to include farm to school.
What else is in the guide?
Help Us Improve Our Services
Tricia Kovacs Office of Compliance and Outreach
WA State Department of Agriculturetkovacs@agr.wa.gov
206-256-6150
Contact us with your questions, ideas, recipes, sample documents, etc.