1. Part 3 - Geographic Preference
2 CFR (b)
Welcome to the ODE CNP Procurement training, Part 3-Geographic Preference. This part of the procurement training is intended for Sponsor participating in the NSLP, SBP, SMP, CACFP and SFSP.

2. Geographical Preferences
2 CFR (b) requires that procurements must be conducted in a manner that prohibits the use of state, local, or tribal geographical preferences laws or rules in the evaluation of bids or proposals, except in those cases where applicable Federal statutes expressly mandate or encourage geographic preference. For NSLP, SBP, SMP, CACFP and SFSP Federal regulations allow these programs to use geographic preference.
Purchasing institutions are encouraged to purchase unprocessed locally grown and locally raised agricultural products, so procurement may give preference to agricultural products that are grown or raised in the local area. Bids/quotes still must be obtained from several sources to ensure full and open competition.
Map used with permission from Oregon Agriculture in the Classroom Foundation

3. Ways to define local: Miles Region County Product-specific State
Defining the geographic area that is considered to be local is up to the purchasing institution. The purchasing institution may specifically identify the geographic area within which unprocessed, locally raised and locally grown agricultural products will originate. Local can be defined as within a certain number of miles, by county, by region or by state. The purchasing institution must not define local in a manner that unnecessarily restricts full and open competition. For example, restricting locally grown agricultural products those available within 1 mile of the sponsor’s facility would be restrictive if only one producer is located within 1 mile.

4. Definitions
Unprocessed -“unprocessed locally grown or locally raised agricultural products” means only those agricultural products that retain their inherent character. Inherent - a characteristic of something. An intrinsic or essential characteristic of something. Processed – treated by a chemical or industrial process
To start it is helpful to clarify some terms that will be used in this presentation.
(click)“Unprocessed locally grown or locally raised agricultural products” means only those agricultural products that retain their inherent character. The next slides will provide examples of what is considered unprocessed agricultural products.
(click) Inherent – means a characteristic of something. The intrinsic or essential characteristic of a product.
(click) Processed – treated by a chemical or industrial process. The next slides will provide examples of what is considered processed agricultural products.

5. Geographic Preference
May apply:
Unprocessed locally grown/raised agricultural products
Retain inherent character
Sponsors may apply a geographic preference when procuring unprocessed locally grown or locally raised agricultural products. This means the agricultural products retain their inherent character. Specific food handling process that do not change the inherent character of an agricultural product are described in the next slide.

6. Retaining Inherent Character
Food handling/preservation not character changing:
Cooling/refrigerating/freezing
Size adjustment
Forming ground products into patties
Drying/dehydrating/vacuum packing/bagging
Addition of preservatives to prevent oxidation
Butchering
Pasteurization of milk
The following food handling and preservation practices are not considered character changing:
Cooling/refrigerating/freezing;
Size adjustment by peeling/slicing/dicing/cutting/chopping/shucking, etc.
Forming ground products into patties without any additives or fillers;
Drying/dehydration/washing/packaging/vacuum packing/bagging
The addition of ascorbic acid or other preservatives to prevent oxidation
Butchering livestock and poultry; cleaning fish
Pasteurization of milk

7. Geographic Preference – Other Criteria
Applying Geographic preference to contract award
Solicitation outline evaluation and scoring including geographic preference
Regulations do not prescribe preference points or percentage
Application of preference must leave appropriate number of qualified suppliers
When applying the geographic preference to a sealed or a competitive bid, the Sponsor has the discretion to determine the local area for which this option will be applied.
The regulations do not prescribe preference points or assigned percentages. Therefore, the solicitation must clearly outline how responses will be evaluated and scored, including geographic preference. The solicitation may give extra points for geographic preference. The definition of local and the preference points for geographic preference must be described in the solicitation. Since any preference impacts full and open competition, it is imperative not to restrict competition.
Application of the preference option must leave an appropriate number of qualified suppliers, given the nature and size of the procurement, to complete for the contract.

8. Summary Define Local Allows full and open competition
Locally grown foods are unprocessed and retain their inherent character
Adequate number of suppliers
In summary, sponsors using geographic preference in their procurement must:
(click) Define local
(click) ensure the use of geographic preference does not unduly restrict full and open competition
(click) ensure the locally grown foods purchase are unprocessed and retain their inherent nature
(click) allow for an adequate number of suppliers

9. Questions
If you have any questions regarding this session please contact your assigned specialist.

10. Resources Procurement Geographic Preference Q & As- Part II
October 9, 2012
The memo listed on this slide provides information and questions and answers about geographic preference. The memo may be found on the ODE CNP webpage.

11. In accordance with Federal civil rights law and U. S
In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, sex, disability, age, or reprisal or retaliation for prior civil rights activity in any program or activity conducted or funded by USDA. Persons with disabilities who require alternative means of communication for program information (e.g. Braille, large print, audiotape, American Sign Language, etc.), should contact the Agency (State or local) where they applied for benefits. Individuals who are deaf, hard of hearing or have speech disabilities may contact USDA through the Federal Relay Service at (800) Additionally, program information may be made available in languages other than English. To file a program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, (AD-3027) found online at: and at any USDA office, or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) Submit your completed form or letter to USDA by: (1) mail: U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights Independence Avenue, SW Washington, D.C ; (2) fax: (202) ; or (3) This institution is an equal opportunity provider.”
Thank you for participating in ___Geographic Preference______ Training for ODE Child Nutrition Programs. If you have any questions please contact your assigned Child Nutrition Specialist. We greatly appreciate the work that you do to fuel Oregon’s future.