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Procurement: What Everyone Needs to Know

Procurement: What Everyone Needs to Know. What is Procurement?. “The act of obtaining something”. What is Procurement?.

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Procurement: What Everyone Needs to Know

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  1. Procurement: What Everyone Needs to Know

  2. What is Procurement? “The act of obtaining something”

  3. What is Procurement? • Procurement standards and regulations ensure food, supplies, equipment, and other goods and services are obtained efficiently, economically, and in accordance with the law.

  4. Why Do Procurement? • Promote free and open competition for your business • Get the best possible services that meet your needs at the best price • Avoid problems with conflict of interest … and worse (accusations of fraud, bribery, etc.)

  5. When is Procurement Done? • Signing a contract or purchasing any single item or service over $10,000 and • Using Federal or District funds (or a combination)

  6. How is Procurement Done? • ≤$10,000: Verbal quotes recommended • $10,000 - $100,000: Three written quotes • >$100,000: Request for Proposals (RFP) or Invitation for Bids (IFB) • Develop internal procedures or follow State Agency procedures

  7. Small Purchases • For purchases $10,000 - $100,000: • Develop written specifications • Solicit quotes based upon the same set of specifications • Obtain written quotes • Go with the lowest quote that meets your needs • Sign contract / buy item

  8. Large Purchases over $100,000 • Options: • Invitation for Bids (IFB) • Request for Proposals (RFP)

  9. Invitation for Bids (IFB) • Award based upon quotes (bids) received in response to specifications • Price is the only factor • May request approval to choose higher bidder • Provide justification that lowest bidder will not meet specifications

  10. Request for Proposals (RFP) • Award based upon pre-determined criteria • Rubric assigns point value to criteria • Price must be more than half of total points • Companies submit proposals • Respond to RFP criteria • Provide quote

  11. Request for Proposals (RFP) • Provides flexibility to award contract based on: • References • Experience • Menu quality • Etc.

  12. IFB / RFP Process • Develop IFB or RFP • Create specifications • Adapt State Agency template or use institution’s • Seek approval as needed • Publicly advertise • Newspaper, classifieds, etc. • Publish at least 14 days prior to deadline • May also post on organization’s website and/or solicit bids/proposals directly

  13. IFB / RFP Process • Distribute IFB or RFP • Respond to questions as needed • Receive sealed bids or proposals • Open and review bids or proposals • Award contract: lowest bid or highest-scoring proposal

  14. Contracts • Know it well • Monitor compliance • Termination is an option • Provide documentation and justification

  15. Contracts • Base year (initial year) + up to three option years (renewals) • Renew only if option was included in specifications • Up to four years in between procurements • Renewal is your choice • Substantial changes to specifications require new procurement • Examples: new meal pattern requirements; substantial number of new sites under contract; new meal service

  16. Questions

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