Procurement and Food Service Contracts

Pages 57-60

Procurement, p. 57Open and free competition when utilizing Federal funds in the CACFP

… that means goods and services must be obtained at the lowest possible costs

Methods of Procurement Formal bid

– Followed if purchase of like items exceeds $150,000 per year. ($7500 for state agencies)

Small purchase– Must be followed if not doing a formal

bid– Complete a price survey – A30

Method of Procurement continued

Purchase of Equipment - Costing $1000 or more

Noncompetitive Negotiations

Emergency Purchase Procedures

Food Service Agreements/Contracts

Procurement Plan Must be completed and on file in your

office Sample Form on pages hand-out and

Appendix A Read

– Complete all empty spaces– Mark methods of procurement you plan

to use– The Official Representative must sign

and date

Small Purchase Procedures Select two items Get prices from two places on

same day Write down results

Do price survey twice a year Usually buy from the place with

the lowest price

Page 57

3/2/10ABC XYZ

MILK 3.79/gal 4.27/gal

Ground Beef 2.09/lb. 2.39/lb.

5.88 6.66

Lowest

ABC Grocery

File the surveys with your procurement plan!

p. 59

Establish a permanent CNP procurement file.

Food Service Agreements

Instructions outlined in Appendix C

Forms in Appendix A

1.Food Service Agreement with Schools

2.Contracts under $150,000

3.Contracts over $150,000

1. School Agreement Must use the State Department Form Must include menus Must be signed by all parties before it

starts– Signed on August 31, 2014

– Contract must begin on September 1 or later!

Suggest all contracts run the fiscal year– Oct.1, 2014 to Sept. 30, 2015

Contract with School Board

Legal Contract Entered into with a School Board Contract without soliciting or

advertising for bids Must use SDE approved form Not renewable – must be submitted

annually

What to send the SDE

Agreement for a School to Furnish Food Service

Meal Delivery Schedule A

One month’s sample menus – Schedule B

Food Service AgreementsContracted Meals

Must use formal bid or small purchase procedure

Must follow procedures outline in Appendix C, Procurement Procedures

Must use SDE approved contract – no alterations

Contracts > $150,000 Use SDE Form Use Small Purchase procedure :

- identified 3 vendors identified

- attain 3 quotes Award lowest price Train vendor on records and food

requirements Need documentation of state or

health certification

What to send the SDE

If the contract value exceeds $50,000, submit a copy of :the unsigned Agreement Schedule A (meal delivery schedule) Schedule B (11day cycle menu)

What to send the SDE with the Original Agreement

Food Service Agreement of Less than $150,000

Schedule A, Meal Delivery Schedule B, 11 day cycle menu Health Certification

Invitation to Bid Contracts over $150,000

Instructions in Appendix C

– Advertise in newspaper

– Formal bid invitations

– Formal bid opening

– Formal awarding of bids

What to send the SDE with the Original Agreement

At least 14 days prior to bid opening:

– Public Notice

– Bid Solicitation/Response letter

After the contract is awarded, submit the following prior to the first day of the contract:

– Page 1, Acceptance completed and marked “original”

– The remainder of the contract (all pages)

– The Certification Statement

– Proof of liability insurance

– State or local health certification

Renewing an Agreementfor both Less than or More than

$150,000

Complete Food Service Renewal Form

Submit Food Service Renewal Agreement

Submit before the start date of the Agreement

Federal Regulations

Limit the duration of contracts to one year

Option of yearly renewals Not to exceed four Additional years

If you contract for food service, you must use the State approved forms and follow special procedures. Refer to Appendix C

Fast Food Vendors, page 59

Occasionally purchasing…. Meal must contain all required

components, including milk.

Need signed statement from vendor stating specific amounts of food provided per child.

Need an itemized receipt.

Documented by center meal on a Production Record.

Happy Meal Hamburger

– Meat

– Bun French Fries Coke

+ Lettuce & Tomato

+ Milk

Procurement File

A Procurement File should contain:

1. Completed and signed Procurement Plan (pages A30).

2. Price Surveys (two per year and shop at store with lowest prices).

3. Contract for meal, all documents related to contract (see Appendix C)

Organize Your CACFP Records(page 76)

Permanent File

Permanent Agreement Civil rights complaint

procedure, p.21

Annual Program File

Copies of all application documents submitted each year

Procurement File

- Procurement Plan

- Price surveys

- Food Service Contracts

=

Income Eligibility Forms

Organize in Notebook by Fiscal Year– IEF Applications alphabetical

– Place ethnic/data sheet in notebook

Monthly Program Records Daily Record or Daily Attendance Sheets If completing the Daily Record, the Meal Count Record Monthly Summary Form Monthly General Journal or equivalent Financial Records supporting expenses Time Sheets and payroll records if claiming labor Site data sheet print-out Menus Production Records If contracted meals, meal delivery tickets Sign-in and -out Sheets

p. 22

Multi–site Records

Annual Training Documentation Sponsor Monitoring Form Any other required documentation

related to the Monitoring Form

Put Your Program to Bed Each Month

Remember: Prior to filing records…, Review for Completeness!!!!!

Place in one file/envelope Mark month and year Seal and move forward!