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