Subsection 2.1.2 National School Lunch Program Procurement

PROCUREMENT PROCEDURES

A.  The plan for procuring items for use in the Child Nutrition Program is as follows. These procurement procedures maximize full and open competition, transparency in transactions, comparability, and documentation of all procurement activities. American Preparatory Academy assures that positive effort will be made to involve small and minority businesses, women's business enterprises, and labor surplus area firms [2 CFR 200.321].

1. All procurement activities will be made in accordance with 2 CFR 200; the State of Utah Procurement Code 63G-6a; and Utah Administrative Code Title R33. The most restrictive principles will be applied when conflicts in requirements exist.

a. If the amount of the purchase is more than $50,000, formal procurement procedures will be used.

b. Informal procurement procedures (small purchase) will be required for purchases under the most restrictive small purchase threshold as defined in Title R33 or LEA approved threshold if less:

i. The "Individual Procurement" threshold is a maximum amount of $5,000 for a procurement item; a procurement unit may select the best source by the direct award and without seeking competitive bids or quotes.

ii. The single procurement aggregate threshold is a maximum amount of $10,000 for multiple procurement item(s) (each item must be $5,000 or less), that are purchased from one source at one time; and

iii. The annual cumulative threshold from the same source is the maximum amount of $50,000.

 2. It will be the responsibility of the Executive Director to document the amounts to be purchased so the correct method of procurement will be followed. Cost analysis documentation will also be required for any amendments to resulting contracts when the amendment is expected to exceed $50,000.

 B.  When a formal procurement method is required, the following COMPETITIVE SEALED BID in the form of an Invitation for Bid or COMPETITIVE PROPOSAL in the form of a Request for Proposal (RFP) procedures will apply:

 1. An announcement of an Invitation for Bid (IFB) or a Request for Proposal (RFP) will be placed on the Utah Procurement Website and the American Preparatory Academy website to publicize the intent of the Local Education Agency to purchase needed items. The advertisement for bids/proposals or legal notice will be run for a minimum of seven days.

 2. An advertisement is required for all purchases over the district's small purchase threshold of $50,000. The announcement will contain a:

a. general description of items to be purchased

b. deadline for submission of questions and the date written responses will be provided including addenda to bid specifications, terms and conditions as needed

c. date of pre-bid meeting, if provided, and if attendance is a requirement for bid award

d. deadline for submission of sealed bids or proposals, and

e. address of location where complete specifications and bid forms may be obtained.

3. The developer of written specifications or descriptions for procurements will be prohibited from submitting bids or proposals for such products or services.

 4. The IFB or RFP will clearly define the purchase conditions. The following list includes requirements to be addressed in the procurement, as applicable:

5. Specifications and estimated quantities of products and services prepared by SFA and provided to potential contractors desiring to submit bids/proposals for the products or services requested. When specifying a "brand name" an "equal" product must be allowed to be offered [2 CFR 200.319(6)] 

6. If any potential vendor is in doubt as to the true meaning of specifications or purchase conditions, interpretation will be provided in writing to all potential bidders by the Executive Director and date specified.

a) The Executive Director will be responsible to ensure all SFA procurements are conducted in compliance with applicable Federal, State, and local procurement regulations.

b) The following criteria will be used in awarding contracts as a result of bids/proposals.

i. Price

ii. Quality

iii. Ability to meet nutrition guidelines of NSLP, After School Snack Program

iv. Ability to meet program requirements of NSLP, After School Snack Program, FFVP

7. In awarding an RFP, a set of award criteria in the form of a weighted evaluation sheet will be provided to each bidder in the initial bid document materials. Price alone is not the sole basis for the award but remains the primary consideration among all factors when awarding a contract. Following evaluation and negotiations, a firm fixed-price or cost-reimbursable contract is awarded.

a) The contracts will be awarded to the responsible bidder/proposer whose bid or proposal is responsive to the invitation and is most advantageous to the LEA, price as the primary and other factors considered. Any and all bids or proposals may be rejected in accordance with the law.

b) A member of the district finance team is required to sign on the bid tabulation of competitive sealed bids or the evaluation criterion score sheet of competitive proposals signifying a review and approval of the selections.

c) The Executive Director is responsible for reviewing the procurement system to ensure compliance with applicable laws.

d) The Food Service Director is responsible for documenting the specific product received.

e) Any time an accepted item is not available, the Food Service Director will select the acceptable alternate.  The contractor must inform the Food Service Director within 24 hours of ordering when a product is not available. In the event a non-domestic agricultural product is to be provided to the LEA, the contractor must obtain, in advance, the written approval of the product. The Food Service Director must comply with the Buy American Provision.

f) Full documentation as to the reason an accepted item was unavailable, and to the procedure used in determining acceptable alternates, will be available for audit and review. The person responsible for this documentation is the Food Service Director.

g) The Food Service Director and Executive Director are responsible for maintaining all procurement documentation.

i. A paper copy will be printed and kept in a binder managed by the Operations Director

ii. A digital copy will be kept on the school lunch google drive

iii. A digital copy of all evaluation records will be uploaded to the State Procurement website, so

   long as that information is not shown to the public (currently the notes section allows this).

 C. If the amount of purchases for items is less than the district’s small purchase threshold, the following, SMALL PURCHASE PROCEDURES, including quotes, will be used as outlined in Utah State Administrative Code Title R33. Quotes from an adequate number of qualified sources will be required.

1. Written Specifications will be prepared and provided to the vendor. When specifying a "brand name" an "equal" product must be allowed to be offered [2 CFR 200.319(6)]

2. Each vendor will be contacted and given an opportunity to provide a price quote on the same specifications. A minimum of two vendors shall be contacted.

3. The Food Service Director will be responsible for contacting potential vendors when price quotes are needed.

4. The price quotes will receive appropriate confidentiality before the award.

5. Quotes will be awarded by the Food Service Director. Contracts awarded will be to the lowest and best quote based upon quality, service availability, price, and/or ability to meet the guidelines/requirements of the Child Nutrition Program.

6. The Food Service Director will be responsible for documentation of records to show the selection of vendor, reasons for selection, names of all vendors contacted, price quotes from each vendor, and written specifications.

7. The Food Service Director will be responsible for documentation that the actual product specified is received.

8. Any time an accepted item is not available, the Food Service Director will select the acceptable alternate. Full documentation will be made available as to the selection of the acceptable item.

9. Bids will be awarded on the following criteria:

a. Price (must be Primary Factor)

b. Quality

c. Ability to meet the guidelines/requirements of the Child Nutrition Program(s).

10. The Executive Director is required to sign all quote tabulations, signifying a review and approval of the selections.

 D.  If items are available only from a single source or when the award of a contract is not feasible under small purchase, sealed bid or competitive negotiation, NON-COMPETITIVE PROPOSAL procedures will be used:

 1. If the cost exceeds the LEA’s small purchase threshold the non-competitive proposal (sole source) must be publicly posted.

2. Written Specifications will be prepared and provided to the vendor.

3. The Executive Director will be responsible for the documentation of records to fully explain the decision to use the noncompetitive proposal. The records will be available for audit and review.

4. The Food Service Director will be responsible for documentation that the actual product or service specified was received.

5. The Executive Director will be responsible for reviewing the procedures to be certain all requirements for using single source or non-competitive proposals are met.

6. A record of non-competitive negotiation purchases shall be maintained by the Executive Director. The record of non-competitive purchases shall include, at a minimum, the following:

a. item name

b. dollar amount

c. vendor, and

d. reason for non-competitive procurement

7. The Executive Director will approve, in advance, all procurements that result from non-competitive negotiations.

 E.  Miscellaneous Provisions:

1.. The School Food Authority agrees that the reviewing official of each transaction will be the Food Service Director.

2. Payment will be made to the vendor when the contract has been met and verified and has met the SFA’s procedures for payment. (If prompt payment is made, discounts, etc. are accepted.)

3. Specifications will be updated as needed.

4. If the product is not as specified, the following procedure will take place:

a. School Lunch Employee will notify Food Service Director

b. As directed by the Food Service Director, the School Lunch Employee may refuse delivery, and no payment will be made to the vendor for that product.

c. As directed by the Food Service Director, the School Lunch Employee may accept delivery, and adjustments to the payment may be made on the invoice for that product.

d. The Food Service Director will work with the vendor to make adjustments that allow the CNP guidelines to be met.

 F.  Emergency or "Pressing Need" Purchases

 1. If it is necessary to make a one-time emergency procurement to continue service or obtain goods, the purchase must be authorized using a purchase order signed by the Food Service Director. The following emergency procedures shall be followed. All emergency procurements shall be approved by the Food Service Director. At a minimum, the following emergency procurement procedures shall be documented:

a. item name

b. dollar amount

c. vendor, and

d. reason for emergency

2. The LEA shall retain all books, records and other documents relative to the award of the contract for six (6) years after final payment. Specifically, the LEA shall maintain, at a minimum, the following documents:

a) The written rationale for the method of procurement;

b) A copy of the original solicitation;

c) The selection of contract type;

d) The bidding and negotiation history and working papers;

e) The basis for contractor selection;

f) Approval from the State agency to support a lack of competition when competitive bids or offers are not obtained;

g) The basis for award cost or price;

h) The terms and conditions of the contract;

i)  Any changes to the contract and negotiation history;

j)  Billing and payment records;

k) A history of any contractor claims; and

l)  A history of any contractor breaches.

 G.  In accordance with 63G-6a-2400, the following conduct will be expected of all persons who are engaged in the awarding and administration of contracts supported by School Food and Nutrition Program Funds. These written standards of conduct are:

 1. No employee, officer, or agent shall participate in the selection or in the award or administration of a contract supported by program funds if a conflict of interest, real or apparent, would be involved. Conflicts of interest arise when one of the following has a financial or other interest in the firm selected for the award:

a. The employee, officer or agent;

b. Any member of the immediate family;

c.  His or her partner;

d. An organization which employs or is about to employ one of the above.

2. Employees, officers, or agents shall neither solicit nor accept gratuities, favors, or anything of monetary value from contractors, potential contractors, or parties to sub-agreements.

3. Penalties for violation of the standards of code of conduct of the School Child Nutrition Program should be:

a.  Reprimand by Board of Education;

b. Dismissal by Board of Education;

c. Any legal action necessary