1. UNDERSTANDING THE BUY AMERICAN PROVISION for PROCUREMENT Ronna SeGraves, MS, RD, LD May 2016

2. Required under 7 CFR Part 210.21(d); section 104(d) of the Child Nutrition Reauthorization Act of 1998  SFA’s MUST purchase, to the maximum extent practicable, domestic commodity or product  SFA’s MUST comply with this as one of the standards for procurement

3.  Supports Mission of the Child Nutrition Program  Supports local and small businesses  USDA requesting the Industry to be ‘engaged & supportive’

4. Definitions:  “Domestic Commodity or Product” – an agricultural commodity that is produced in the US and a food product that is processed in the US using substantial agricultural commodities that are produced in the US.  “Substantial” – over 51% of the final processed product consists of agricultural commodities that were grown domestically.

5. NOTE……..Guam, American Samoa, Virgin Islands, Puerto Rico, Northern Mariana Islands are allowed as US territories

6. HOW TO DETERMINE THAT AN ITEM IS DOMESTIC  Packaging information during delivery  Box  Individual cans/package  Invoice as country of origin

12. All Procurement Transactions must comply with Buy American whether purchased by SFAs or entities purchasing on their behalf  Group Purchasing Organizations  Cooperatives of schools  Inter-entity agreements  Food Service Management Companies

13. LIMITED EXCEPTIONS  Used as a last resort  Product not produced or manufactured in US in sufficient & available quantity or satisfactory quality  Competitive bids reveal the cost significantly higher than non- domestic product

14. SFA MUST have documentation to justify the exception

15. WHAT KIND OF DOCUMENTATION?  Bid Prices for both domestic & foreign products  Documentation between SFA and the food supplier  Email  Telephone communication Documentation

16. BEST PRACTICES  Understand your market  Include ‘Buy American’ provision in all product specifications, bid solicitations, RFP, contracts, purchase orders Teach staff proper receiving practices

17. REQUIRED ‘BUY AMERICAN JUSTIFICATION FORM’ for each non- domestic product

18. Buy American Justification Form (Worksheet)  Product Name, Purchase Unit, Usage  Country of Origin  Estimated Annual Cost of the Domestic Product  Estimated Annual Cost of the Foreign Product  Alternatives Considered  Explanation of Foreign Product Use instead of Domestic Product  Signature, Date

19. COMPLIANCE MONITORING  administrative review AND / OR  separate procurement review

20. Review of :  Solicitation and Contract Documents  Labels on food products in facilities  Supplier invoices/receipts  In the event of Exceptions….documentation for justification

21. If non-domestic products are identified without documentation, a finding will be issued with required corrective action

22. PROCUREMENT CODE OF CONDUCT  WRITTEN INTO PROCUREMENT POLICIES & PROCEDURES for the CHILD NUTRITION PROGRAM

23. Written CODE OF CONDUCT should :  Prohibit employees from soliciting gifts  Prohibit employees from travel packages  Prohibit employees from other incentives from prospective contractors

24. CODE OF CONDUCT cont….  Prohibit employees from participating in the selection, award & administration of any contract to which an entity, or certain persons connected to them, have financial interest

25. CODE OF CONDUCT cont….  Provide for CNP operators to set standards when financial interest is not substantial or the gift is an unsolicited item of nominal value and is acceptable

26. CODE OF CONDUCT cont….  Provide disciplinary actions to be applied in the event standards are violated

27. SUMMARY  Districts MUST follow BUY AMERICAN provision  All non-domestic products must be evaluated with documentation  The ‘BUY AMERICAN JUSTIFICATION FORM’ MUST be completed for all non-domestic products  Administrative and Procurement Reviews  Districts MUST have a WRITTEN Procurement Code of Conduct

28. QUESTIONS ?