FOOD SERVICE MANAGEMENT COMPANIES SFSP Procurement Procedures Part III, Page’s of the Administrative Guidance for Sponsors

PROCUREMENT Purchasing Federal Funds Regulations Sponsors responsibility to insure that free and open competition exist to the maximum extent possible to obtain program goods, equipment and services at the lowest possible cost

PROCUREMENT PLAN A procurement plan must be completed and kept on file in the Sponsoring Organizations central office Alabama Bid Laws section (Yellow pages at end of chapter) provides information on what should be included in a procurement plan

THREE METHODS OF PROVIDING FOOD for SFSP Self Preparation Contract with a School Food Authority (SFA) Contract with a Food Service Management Co. (FSMC)

Self Preparation Obtain three (3) prices quotes on food Items -breads, meats, fruits, vegetables and milk Do this one time during the program year (prior to start of program) You do not have to go with the lowest price but items you purchase must be compatible in price with lowest price.

SOLICITING LOCAL SCHOOLS AGENCIES 1 st priority Schools have staff and facilities Familiar with meal pattern and requirements of Federal feeding programs No need to bid Complete form SFSP 15

Using a Food Service Management Company Food Service Management Company means any commercial enterprise or non profit organization with which a sponsor may contract for preparing unitized meals, with or without milk, for use in the program, or for managing the sponsors food service operation Must enter into contract. Use form SFSP 17.

To Bid or Not to Bid??? Public Organizations: Publics must use the lower of State ($15,000) or local thresholds, not to exceed the Federal threshold of $150,000 (Check with Alabama Bid Law: colored page at end of chapter)) Private Non-Profit Organizations: Not for profits can choose (their option) either the Federal threshold ($150,000) or the institution's own threshold, if lower. State agencies cannot require compliance with State or local rules.

3. Formal Competitive Bid Procedures (food purchases over $ 150,000 or Public agencies requiring bids) The sponsor must: - prepare an Invitation for Bid (IFB) package FNS-688. Must include complete, adequate, and realistic specifications or purchase description; - publicly advertise IFB not less than 14 days before bids are opened; - notify State agency at least 14 days before the bid opening if contract is valued over $150,000

Formal Bid Procedures (Cont’d) - publicly open and post all bids which are submitted; - submit required documents to the State agency; - receive approval from State agency before accepting or contracting with the vendor.

Ensuring Food Quality and Service Sponsor Responsibilities:  Must provide a list of all approved sites, the number of meals to be served, and the times of meal service to the FSMC;  Must inform the FSMC of cancelled or terminated sites;  Must agree to pay FSMC for meals delivered in accordance with the contract;  Must document problems with the vendor