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Bidding for Food Service

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Presentation on theme: "Bidding for Food Service"— Presentation transcript:

1 Bidding for Food Service
Guiselle Carreon, Director of Purchasing, Grossmont Union High School District and Gretchen Shipley, Partner, Fagan Friedman & Fulfrost CASBO San Diego – Imperial Section Purchasing Professional Council for Child Nutrition Professional Council February 25, 2013

2 METHODS OF PURCHASING Informal Quotes Request for Proposal
Price Specification Weighted Criteria Competitive Bid

3 BID LIMITS Federal: $150,000 State:
When using State and Federal Funds for the purchasing of Food Service, districts must comply with both State and Federal regulations. When codes conflict, the more stringent of the two apply. Federal: $150,000 State: Materials, Equipment, Supplies, Services: $83,400 Public Works: $15,000 $45,000 for CUPCCAA districts

4 BID LIMITS Perishable Foods:
Education Code exempts perishable foods from competitive bidding; however, federal requirements call for competitive bidding when the purchase costs exceeds $150,000. The Supremacy Clause is a clause within Article VI of the U.S. Constitution which dictates that federal law is the "supreme law of the land". This means that judges in every state must follow the Constitution, laws, and treatises of the federal government in matters which are directly or indirectly within the government's control. Under the doctrine of preemption, which is based on the Supremacy Clause, federal law preempts state law, even when the laws conflict. Thus, a federal court may require a state to stop certain behavior it believes interferes with, or is in conflict with, federal law.

5 DEFINITION FDA defines perishable food as food that is not heat-treated, not frozen, and not otherwise preserved in a manner to Prevent the quality of the food from being adversely affected, if held longer than seven calendar days under normal shipping and storage conditions.

6 BID/RFP DOCUMENTS Notice to Bidders
Publish in a paper of general circulation twice in a two week period with no less than five days in between publications. Time and Place for submission of bids/proposals Right to reject all bids/proposals Information for Bidders (Rules for Bidders) General Conditions Set the rights and responsibilities of the district and contractor/vendor

Special Conditions: Unique terms for the specific bid: Delivery times, exceptions to General Conditions, etc. Fuel Charges Special Invoicing: Vendor must invoice directly for product and processing on commodity items. Specifications: Detailed description of service or product sought. Brand, size, weight, etc. of product Require vendor to provide nutrition information for items Requirement to ensure item bid is in stock for duration of bid

Bid Form / Quote Form Pricing Information Method of Award Line Item Lot / Split Lots Percentage (e.g. Bidder must be low on 80% of items in lot) Criteria for Award (RFPs) Develop a scoring matrix for established criteria. Establish scoring team retain with bid. Examples: Price Taste based on Taste Testing Support Ability to Deliver

Bid Form / Quote Form (cont’d) Signature/Certification of Bid (Signer must be authorized representative of the bidder.) Required Forms: Tobacco Free Certification Drug Free Workplace Buy American Debarment Lobbying Activity Iran Contracting Act ($1 Million or More)

Required Forms (cont’d): Affirmative Action The Executive Order (E.O 11246) prohibits federal contractors and subcontractors and federally-assisted construction contractors and subcontractors that generally have contracts that exceed $10,000 from discriminating in employment decisions on the basis of race, color, religion, sex, or national origin. It also requires covered contractors to take affirmative action to ensure that equal opportunity is provided in all aspects of their employment. Optional Forms Non-collusion Declaration

11 IMPORTANT CLAUSES Termination Cause / Default Convenience Non-funding
Cure Notice Administrative Hearing Appeals Process Settlement Agreement Convenience Non-funding

Insurance (Make sure your limits are adequate. $1 Million may be insufficient for a case of E-coli or Salmonella) Hold Harmless / Indemnification (Review for adequacy. Consult Risk Management)

13 REGULATIONS FOR SFAs Program Regulations for Procurement:
NSLP: 7 CFR SBP: 7 CFR Special Milk Program: 7 CFR Part 215 Food Distribution: 7 CFR Part 250 Uniform Administrative Requirements for Procurement: State/local governments: 7 CFR 3016 Non-profits: 7 CFR 3019

14 REGULATIONS FOR SFAs Requirement 7 CFR Part 3016 – (Public)
Competition in all procurements (c) Award only to responsible & responsive vendors (b) (8) Written selection procedures (c)(3) Code of Conduct (b)(3) Recordkeeping (b)(9) Contract Administration System (b)(2) Prohibition on geographic preference, unless specifically permitted by Federal law (such as Farm Bill) and (c)(2)

15 REGULATIONS FOR SFAs Program Specific Requirements
National School Lunch Program – 7 CFR Part 210 – Includes Buy American Provision Special Milk Program – 7 CFR Part 215 School Breakfast Program – 7 CFR Part 220 Food Distribution – 7 CFR Part 250

16 PROHIBITED PRACTICES Unreasonable Requirements
Incorrect application of Geographic Preference Bid splitting Getting a cost quote from only one vendor Allowing a vendor to write specifications

17 HELPFUL LINKS Electronic Code of Federal Regulations California Codes
California Codes Federal Register California Department of Education USDA EPLS (New website)

Contact Information: Guiselle Carreon, Gretchen Shipley: This handout has been prepared by the San Diego-Imperial Section CASBO Purchasing Professional Council. It has not been reviewed for approval by the State CASBO and is not an official statement of CASBO. Any advice or comments made by the panel members are not intended to replace the advice of your legal counsel.

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