PROCUREMENT: I GIVE UP! - CASBO€’Exception may be for perishable items where a vendor may not...

PROCUREMENT:IGIVEUP!STEPHANIE BRUCE, D IRECTORNUTRIT ION SERV ICES , PALMSPR INGS USD

GUISELLE CARREON, COMMERCIAL WARRANTS & ACCOUNTS PAYABLE , SAN D IEGOCOE

KELLY M. REM, ATTORNEY, LOZANOSMITH

TheviewsandopinionsexpressedinthispresentationarethoseoftheauthorsanddonotnecessarilyreflectthoseofCASBO.

Disclaimer

Theinformationinthispresentationisbasedonavailableinformationatthetime.Informationprovidedforbiddocumentsaresuggestions.Terminologymaybedifferentthanwhatyouuseinyourdistrict.Checkwithyourlocalcountyofficeand/orlegalcounselofeducationforcountyspecificrules/regulations.

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OpenandFreeCompetition

Allprocurementtransactions,regardlessofwhetherbysealedbidsorbynegotiationandwithoutregardtodollar

valueshallbeconductedinamannerthatprovidesmaximumopenandfreecompetition

2 CFR200.319

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2CFR200.319- Competition

Allprocurementtransactionsmustbeconductedinamannerprovidingfullandopencompetitionconsistentwiththestandardsofthissection.

1. Placingunreasonablerequirementsonfirmsinorderforthemtoqualifytodobusiness;

2. Requiringunnecessaryexperienceandexcessivebonding;

3. Noncompetitivepricingpracticesbetweenfirmsorbetweenaffiliatedcompanies;

4. Noncompetitivecontractstoconsultantsthatareonretainercontracts

5. OrganizationalConflictsofInterest

6. Specifyingonlya“brandname”productinsteadofallowing“anequal”product

7. Anyarbitraryactionintheprocurementprocess

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AdditionalProhibitedPractices

• IncorrectapplicationofGeographicPreference• AvoidingFormalThresholdbysplittingbidstoensureacertainvendorwinsabid.‒ Exceptionmaybeforperishableitemswhereavendormaynotbeabletocommittoasolidprice,you

• Gettingacostquotefromonlyonevendor• Allowingavendortowritespecifications• Conflictofinterest(EmployeeorVendor)

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CodeofConduct

Governstheperformance,behaviorandactionsoftheemployeesengagedinanyaspectofprocurement.

1. ConflictsofInterest

2. Prohibitsawardtoafamilymember

3. Prohibitssolicitationofgiftsordonations.(Incentivelanguagecanbeincludedaspartofthecompetitiveprocurementandmustbenefittheschoolmealprogram)Discounts/Rebates

4. Gifts/Donations

5. GiftExclusions

6. Non-Compliance

7. StaffshouldbefamiliarwiththeCodeofConduct

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WrittenProcurementProcedures

• Developandmaintainwrittenprocurementproceduresdesignedtoavoidtheacquisitionofunnecessaryorduplicativeitems.

• Writtenproceduresshouldmatchdistrict’sboardpoliciesandadministrativeregulations.

• Writtenproceduresshouldincludeguidelinesfor:• Micropurchases• Smallpurchases• FormalBidding

• Writtenproceduresshouldbekeptup-to-date.

• Staffshouldbefamiliarwithwrittenprocedures.

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BidLimits

• Federalbidlimitis$150,000• CaliforniaStatebidlimitis$88,300*‒ AppliesonlytoPublicschoolsandCountyofficesofEducation.• Districtsmayhavemorerestrictivelimits.

*CABidLimit2017

*PCC20111

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InformalProcurement

• Anypurchasethatisunderthestatutorybidlimit(Federal=$150,000/CA$88,300*)‒ MicroPurchases‒ SmallPurchases

*CAStateBidLimit2017

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MicroPurchase≤$3,500

• Nottobeusedforregularlypurchaseditems.• Doesnotrequiremultiplequotesifthepricingisdeemedreasonable.• Mustbedistributedequallyamongqualifiedsuppliers.• Pricesmustbereasonable.• Requiresretentionofdocumentationifquoteswereobtained.• Districtmayrequirequotesatlessthanthemicropurchasethreshold

2017CASBOANNUALCONFERENCE&CALIFORNIASCHOOLBUSINESSEXPO

SmallPurchase≤$88,300(statutorybidlimitfor2017)

• Writtenspecifications/scopeofwork• Pricequotesfromanadequatenumberofqualifiedsources.‒ Federalrequiresyousourceaminimumof3vendors.

• Evaluatebiddersresponsestoyourspecifications.• Determinemostresponsiveandresponsiblebidderatlowestpriceandawardcontract.

• Countyand/orDistrict’smayhavemorerestrictivelimits.• Managingthecontractisarequirement.

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RequestforProposal(RFP)Usedforbothinformal(smallpurchasethreshold)andformalbiddingwhenprocurementisabovethestatutorybidlimit.

• Forcontractsawardedtothelowestresponsiveandresponsiblebiddermeetingspecificcriteria.• Mustprovideascoringcriteria.• OnceitisdeterminedwhichbiddersmeetallrequiredcriteriabasedonscoringthresholdPrice willbethedeterminingfactor.

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FormalProcurement>$88,300(CAbidlimit2017)

• RequiresanInvitationtoBid(IFB)processandisacompetitivesealedbid• Advertisingisrequiredonceaweekfortwoweeksinaperiodicalwithgeneralcirculation.(PCC20112)• Bidsmustbesealed• Bidsmustbeevaluatedforresponsiveness• Biddermustberesponsible• Maybeawardedbylineitem,lot,orsplitlots.• Priceistheonlyfactor.

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BiddingRequirements

• Finaladdendummustbeissued72hourspriortobidopening.(PCC4104.5)• Substitutionofspecifiedbrandshouldbepriortobidopening.• Terminationforcause>$10,000(2CFR200– Appendix2)

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BID&RFPRequiredDocuments/Certifications

-ContractorsCertificationregardingAlcoholBeveragesandTobaccoFreeWorkplace(DistrictPolicy)-ContractorsCertificationregardingDrugFreeWorkplace(GovernmentCodeSection8350)

-SuspensionandDebarment(>$25,000)(MB98-113July1998&7CFR3017.510)§ Contractsinexcessof$30,000thedistrictmusthaveaprocesstocheckdebarmentstatus.-LobbyingActivityCertification(>$100,000)(MB98-113July1998&7CFR3018)

-NonCollusionDeclaration(PCC7106)-EqualOpportunityEmploymentDeclaration(41CFR60-1.4(a),60-300.5(a),60-741.5(a))-ContractorsCertificationregardingWorkerCompensation(LaborCode3700)

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BID&RFPRequiredDocuments/Certifications(cont’d)

‒IranContractingAct(>$1,000,000)PCC2202-2208‒CleanAirandWaterCertification(>$100,000)§ Section114oftheCleanAirAct§ Section308oftheFederalWaterPollutionControlAct

‒EPARegulations(40CFRPart15)‒EnergyPolicyandConservationAct‒ContractWorkHoursandSafetyStandardsActCompliance‒FoodDefense– FoodSafetyModernizationAct‒SmallBusinessandMinority,Woman,andDisabledVeteranBusinessEnterprise

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Responsivevs.ResponsibleBidder• Responsive:• Abidderhasmetalltheconditionsofthebidasexplainedintheinstructionstobidders.

• Adistrictmaywaiveanirregularityinabid,suchasthefailuretosign,aslongastheerrorisnotmaterial(doesnotchangethecostofthebidorgiveamaterialadvantagetothebidder).48CFR14.405

• Responsible:• Responsibilitygoestotrustworthiness,quality,fitness,capacityandexperiencetosatisfactorilyperformthecontract.• Responsibilityisaboutthebidderandnotthebid.

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PROCUREMENT:PAININTHE@$&!!STEPHANIE BRUCE, DIRECTORNUTRIT IONSERVICES , PSUSD

GUISELLE CARREON, COMMERCIAL WARRANTS & ACCOUNTS PAYABLE , SAN D IEGOCOE

KELLY M. REM, ATTORNEY, LOZANOSMITH

TheviewsandopinionsexpressedinthispresentationarethoseoftheauthorsanddonotnecessarilyreflectthoseofCASBO.

PrequalificationPriortoBidding

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PrequalificationProcess

Bidderswhosubmitaqualificationpacketandaredeemedeligible,maysubmitaformalsealbid.

• Developquestionnaire(criteriaforqualifyingtobid)• Developtastetestprocedurefor“ReadytoServe”foods• Developscoringcriteria• Developappealsprocess• Notifyapplicantsofqualificationresults• Publishlistofeligiblebidders

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Qualified/ResponsibleBidder

• PrequalificationCriteriaExamples:‒ FoodDefense– MustberegisteredwiththeFoodandDrugAdministrationandmeettherequirements

oftheFoodSafetyModernizationAct.‒ SafetyandSanitationCertificates‒ HAACPProgram‒ WarehouseInspection‒ References‒ Whatisyourprocedureforsubstitutions.‒ WhatisyourprocedureforProductRecalls.‒ Yearsinbusiness‒ Haveyoubackedoutofadistributioncontractorbeendeemednonresponsive.‒ Fingerprinting

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BiddingExceptions

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NoncompetitiveBid- (2CFR200.320(f))

• Publicneedisurgentoranemergencyexists.• RecommendcommunicationwithCDE• Veryrestrictive•Maintaindocumentation• Pre-approvalfromCDE(ifreceived).• Contracts/bidsolicitations

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Co-op/JPA/ConsortiumGroupPurchasing

• Mustbeformedproperly*(USDAPolicymemoSP05-2017)• Createofficersandgoverningstructure• Establishby-lawsAlternative:• Jointprocurement(multi-districtbid)• Piggybackbidwitheachdistrictnamesasauthorizeduser

*Resource:http://sgf.senate.ca.gov/sites/sgf.senate.ca.gov/files/GWTFinalversion2.pdf

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Piggyback(USDAPolicyMemoSP35-2012)

Apiggybackprocurementiswhenoneentityis“jumpingon”anexistingcontractundertheSAME termstoprocuregoods.• Nomaterialchangesarepermitted.• New/additionalitemsbutbeformallyorinformallyprocured.• Notallowedtopiggybackservices(PCC20118)• Contractmusthavelanguagetoallowpiggyback• Encourageyoutospeakwithyourlegalcounsel.

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GeographicPreference

InstitutionsreceivingfundsthroughtheChildNutritionProgramsmayapplyanoptional geographicpreferenceintheprocurementofONLY unprocessedlocallygrownorlocallyraisedagricultureproducts.

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SmallBusinessandMinority,Woman,andDisabledVeteranBusinessEnterprise(MWDVBE)

Inanefforttoencourageminority,womenanddisabledveteranownedbusinessenterprisestoparticipateand

submitproposalsbasedupontheircapacitytoperformandbesuccessful,thisprojectmaybeawardedtomorethanoneProposerifitisinthebestinterestoftheDistricttodoso.

2CFR200.321

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BuyAmericanProvision- (USDASP24-2016)

BidderwillcomplywiththeBuyAmericanrequirement,whichdictatesthatschoolparticipatinginthefederalschool

lunchprogramsarerequiredtopurchasedomesticcommoditiesandproductsforschoolmealstothe

maximumextentpossible.7CFR210.21(d)

Awardeddistributorwillprovideinformationonproductsorigin.

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HelpfulLinks

SuspensionandDebarment:https://www.gsa.gov/portal/content/192903http://www.cde.ca.gov/ls/nu/sn/mb98113.asp

GeographicPreference:https://www.fns.usda.gov/sites/default/files/F2S_geo_pref.pdfhttp://www.cde.ca.gov/ls/nu/sn/mbusdasnp132009.asp

FoodDefense:http://www.fda.gov/Food/GuidanceRegulation/FSMA/default.htm

EnergyPolicyandConservationAct:http://legcousel.house.gov/Comps/EPCA.pdf

ContractWorkHoursandSafetyStandardsActCompliance:http://www.dol.gov/compliance/laws/comp-cwhssa.htm

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2017CASBOANNUALCONFERENCE&CALIFORNIASCHOOLBUSINESSEXPO

Questions??