1. Requirements for FSMC Purchases & Procurements
NJ SNA – USDA-FNS
April 2017

2. Requirements for FSMC Purchasing and Procurement
In NJ, price competition occurs in the FSMC RFP bid evaluation.
FSMCs propose a “guarantee” dollar amount – a budget surplus, breakeven, or deficit.
The guarantee helps to ensure that the FSMC uses efficient purchasing.

3. Requirements for FSMC Purchasing and Procurement – Cont.
SFAs must ensure that the guarantee is adhered to in renewal years, unless change is justified and supported by contract.
Mgt. and/or admin. fees are also part of evaluation of bids.
FSMCs may purchase food and supplies (if their responsibility) using their own procurement methods.

4. Requirements for FSMC Purchasing and Procurement – Cont.
However, FSMCs must follow all requirements regarding purchasing in RFP/contract, e.g. “Buy American”, nutritional specifications, local purchasing, return of rebates, etc.
SFA may impose stricter guidelines and monitor FSMC’s purchasing methods for efficiency, competitiveness, etc.

5. Requirements for FSMC Purchasing and Procurement – Equipment
Equipment purchasing may not be conducted by FSMC, if not addressed in RFP/contract as a FSMC responsibility
Two methods:
FSMCs are asked to propose prices for equipment items in bid response
FSMCs act as “procurement agent”

6. FSMCs acting as procurement agent:
Due to the nature of equipment and other capital expenditures, purchasing requirements are more stringent.
These types of purchases are less common and must be approved by the SFA and New Jersey (or on State list of approved items)

7. FSMCs acting as procurement agent (Cont.)
RFP states that FSMC will have responsibility to procure equipment, as needed.
All such equipment purchases must be conducted using procurement procedures which comply with Federal procurement regulations.
Federal procurement regulations are 2 CFR Part and 7 CFR Part (NSLP)

8. FSMCs acting as procurement agent (Cont.)
Required clause in contract: If contract not renewed or terminated, SFA may continue to follow amortization payment schedule.
Unallowable clause in contract: Requiring full payment of due amount when contract not renewed (“acceleration clause”)

9. Questions ???????