Procurement:What Everyone Needs to Know

What is Procurement?

“The act of obtaining something”

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.

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.)

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)

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

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

Large Purchases over $100,000

• Options: – Invitation for Bids (IFB)– Request for Proposals (RFP)

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

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

Request for Proposals (RFP)

• Provides flexibility to award contract based on:

– References

– Experience

– Menu quality

– Etc.

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

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

Contracts

• Know it well

• Monitor compliance

• Termination is an option– Provide documentation and justification

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

Questions