1. A School’s Guide to Purchasing Washington-grown Food A CPPW Project made possible by funding from the Dept. of Health and Human Services and Public Health-Seattle & King County

2. OBJECTIVES Describe the major federal, state and local school district requirements that impact purchasing Washington-grown foods. Discuss how to develop an informal and formal procurement request for purchasing local produce KEY TOPICS Geographic Preference Option Local Farms-Healthy Kids Act General Procurement Requirements Small Purchase Thresholds at federal and state level Elements and ideas for procurement requests that preference locally and regionally-grown foods Objectives and Key Topics

3. Buying WA Grown Food

4. Sorting out the rules Geographic Preference Option Requirements for Competitive Procurement Small Purchase Thresholds

5. Geographic Preference Option RULE 1: School districts must define “local” and may do so according to their preference

6. Geographic Preference Option Cooling; refrigerating; freezing; size adjustment made by peeling, slicing, dicing, cutting, chopping, shucking, and grinding; forming ground products into patties without any additives or fillers; drying/dehydration; washing; packaging (such as placing eggs in cartons), vacuum packing and bagging (such as placing vegetables in bags or combining two or more types of vegetables or fruits in a single package); addition of ascorbic acid or other preservatives to prevent oxidation of produce; butchering livestock and poultry; cleaning of fish; and the pasteurization of milk. RULE 2: Geographic preference is limited to “minimally processed” food.

7. Geographic Preference Option RULE 3: Local food cannot be “required” in a procurement request, only “preferred.” You may provide a “defined advantage in the procurement process.” RULE 4: Geographic preference can be applied to the origin of the product, not the location of the vendor.

8. Frozen Sliced Washed Packaged Dried Pasteur- ized NOT Cooked Heated Pickled Canned Local Minimally processed USDA regulations on geographic preference As defined by the School District Products NOT People - Vendors Farmers Producers

9. What about Washington State Law?

10. Geographic Preference Option RULE 1: School districts must define “local” and may do so according to their preference

11. WA Law: Exemption for Washington-Grown Food

12. State or Federal Law? Federal rules on bidding in child nutrition programs are defined in the Uniform Administrative Code (Common Rule). State laws apply to food purchases, as long as they fit the Common Rule requirements, UNLESS states exempt schools from their purchasing laws. Since the 2008 Local Farms-Healthy Kids Act, Washington State law provides an exemption from the state procurement requirements when schools purchase Washington-grown food. For WA-grown food, federal rules apply. For all other food, state rules apply.

13. Washington School Procurement Law $40,000 - $75,000 Formal Informal $75,000 or more Less than $40,000 No competition required Food and other purchases ?

14. Small Purchase Threshold A competitive process is required for all school food purchases using federal dollars. Without a geographic preference or with a preference area beyond Washington State, the state threshold applies and a formal procurement is required for purchases of $75,000 or more. For purchases of Washington-grown food, the formal bid threshold is $150,000, rather than $75,000. Any school district may set its own small purchase threshold that is lower than USDA’s $150,000 threshold or the state $75,000 threshold, but cannot establish a threshold that is higher.

15. Informal Yes, WGF No, not WGF Less than $75,000 Formal Informal $150,000 or more Less than $150,000 $75,000 or more Are you applying a geographic preference for Washington grown food? (WGF)

16. How do we apply a geographic preference?

17. A set number of points can be applied for providing products from within the geographic preference area The points are equated to monetary amounts for a price preference. The monetary amount is then deducted from the bid or quote amount, for comparison purposes. Note: The deduction only applies to determining the winning vendor and would not affect the actual price paid to the vendor. Simple Point/Price System (USDA)

18. 1 Point = 1 Penny Example Vendor AVendor BVendor C Price offered$1.97$2.10$2.03 Meets Geographic Preference?NoYes (10 points)No Price with Preference Points$1.97$2.00$2.03 Result: Vendor A is awarded the contract, even though they are not able to provide local products. Even with preference points, Vendor B was not able to compete on price. Example: 10 preference points will be given to vendors who provide locally raised and grown agricultural products. 1 point would equal 1 cent. Solicitation requires each vendor to: 1) determine if geographic preference applies; and 2) if so, deduct 10 cents from its bid price before submitting bid. The district receives three vendor responses, and verifies that the geographic preference was applied correctly by the vendors. The three prices are then compared, as follows:

19. Percent Price Preference A price preference of a specific percentage is applied to those bids that meet your geographic preference. Set a point threshold such that any vendor who receives a certain number of points will receive a percentage price preference on their bid. Prices will be compared after that percentage reduction, and contract will be awarded to the lowest price. Note that the actual price they quoted will be paid; the percentage reduction is simply a way of allowing for a higher price if your geographic preference is met.

20. Percent Price Preference Example

21. Point Systems Use a point system for specifications and for preferences. Points will be awarded for specifications, with a certain number awarded to the vendor with the lowest price bid. Points will be awarded for geographic preference based on your adapted version of the Geographic Preference Point Chart. Combined points will then determine which vendor is awarded the contract.

22. Point System Example Vendor AVendor BVendor C Price offered$32,000 150 pts. $33,000 100 pts 40,000 0 pts. Points for items w/in 1 st tier area (x% of 100% x 2) 30 x 2 = 6050 x 2 = 10080 x 2 =160 Points for items w/in 2 nd tier area (x% of 100% x 1) 201020 Points for acceptable substitutes (x% of 100%) 1015 Total Preference points90125195 Total Points, including those for price 240225195 NOTE: Could have other points for specifications

23. Sliding Scale under a Point System Example General requirements20 Staff qualifications Proposer references Technical requirements30 Product categories Deliveries Safety and sanitation Cost45 Local, minimally- processed products up to 5 Total cost of products that are local 5 pts = 75% and more of the total cost is local products 3 pts = less than 75% and more than 50% of the total cost is local products 1 pt = less than 50% and more than 25% of the total cost is local products

24. Do we need to apply a geographic preference to buy local food?

25. Informal Yes, WGF No, not WGF Less than $75,000 Formal Informal $150,000 or more Less than $150,000 $75,000 or more Are you applying a geographic preference for Washington grown food? (WGF)

26. Informal Procurement Write down your product needs and specifications Send to at least 3 qualified vendors Document outreach and responses Select a vendor and make an agreement

27. Informal Procurement Build your knowledge/contacts for farmers and vendors who can supply local products –Letter to farms –Review county, regional farm guides –Visit farmers markets or wholesale markets –Learn about food hubs and local distributors Consider procurement requests for seasonal produce, or special events Identify and plan for products available in specific seasons.

29. Buying WA Grown Food BEFORE YOU START THE PROCUREMENT PROCESS: 1.Forecasting: Identify the products and quantities you will be purchasing, and estimate the total cost of the purchase. 2.Depending on dollar amount, determine whether to use formal or informal procurement method. 3.Plan your procurement procedure. 4.Define “local.” 5.Determine how you will apply geographic preference. 6.Where appropriate, adapt school policies.

30. Planning for Farm to School Seasonal Fresh Produce September/October/November Review menus for breakfast, lunch, Fresh Fruit & Vegetable Program, special events –Seasonal interest and availability –What events do you want to participate in/host? –Ingredient substitution –Recipe development Seasonal Events –Taste Washington Day –October – National Farm to School Month –Eat Local for Thanksgiving

31. Planning for Farm to School

32. www.wafarmtoschool.org

33. Identify WA foods that work for you

35. Quantities, Cost Estimates and Specifications Based on: –Enrollment and meals served –Menus –Goals for local products Estimate costs and determine whether formal or informal Write clear specifications for your product needs

36. Buying WA Grown Food PUTTING TOGETHER THE PROCUREMENT REQUEST 7.Communicate your intent to apply a geographic preference and your definition of “local.” 8.Define and communicate your evaluation criteria 9.Set vendor qualifications. 10.Write specifications to clearly state what products you want, the level of processing you require, etc. 11.State preferences, and how they will be weighted in the evaluation process. 12.Develop and commit to a plan for reviewing and selecting the successful vendor.

37. Model Geographic Preference Language “Local” defined as Washington Grown Food 1. Applying a geographic preference for Washington grown products for school food procurement [in Washington State]. a.This school district (“District”) or school food authority (“SFA”) desires to serve Washington grown products to its students. b.Under federal law, this District [or “this SFA”], as the purchasing institution, has the authority not only to apply a “local” geographic preference to minimally processed foods, but also to determine what is “local” for the purposes of United States Department of Agriculture (USDA) programs such as the National School Lunch Program, the School Breakfast Program, the Fresh Fruit & Vegetable Program, the Special Milk Program, the Child and Adult Care Food Program, the Summer Food Service Program, and the Department of Defense Fresh Program. c.This district [or “This SFA”] defines “locally grown products” as “Washington grown,” as defined under Local Farms – Healthy Kids Act section 6 (Revised Code of Washington section 28A.335.190). That definition states, “grown and packed or processed in Washington.” This district [or “This SFA”] will apply applicable federal procurement procedures. d.As required under federal law, this district [or “this SFA”] will provide a price percentage preference of [XX] % [or insert other “point” or “credit” calculation system ] during evaluation of bids to “locally grown products” purchased for school food procurement, as defined under this geographic preference. e.Pursuant to USDA regulations, the geographic preference in this section is applied only to “minimally processed” agricultural products that retain their inherent character.

38. Communicate Evaluation Criteria Product specifications, price, vendor qualifications, and preferences EVALUATION OF SOLICITATION: Award will be made to the lowest responsible contractor, after application of the geographic preference. The lowest responsible contractor will be determined based on an evaluation of the products available, price, delivery timelines and evaluation criteria shown hereafter. Such determination will, of necessity, require judgmental evaluations by district representatives. The decision resulting from the evaluation process as to which product best meets the needs of various programs remains the sole responsibility of the district and is final. Evaluation Criteria Product variety available for distribution. Price per pound and number of servings per case. Quality of the products offered. Preference points earned for Washington-sourced product Ability to meet delivery schedule and service history in general. Agreeable and reliable billing procedures.

39. Product Specifications Product variety available for distribution. Quality of the products offered. Size of produce or number of pieces per case. Price - per pound and/or case count.

40. Product Specifications Average number of days from harvest to delivery, or from (minimal) processing to delivery, in the case of products that are minimally processed in a way that may allow the product to degrade over time Freshness and traceability –IdentifiedEach shipping box/case to have farm name on it –Location Name of town, city or county where the harvesting was done –TraceableName of farm, location of farm, date of harvest, and date shipment was received from farmer Refrigeration of fresh produce from harvest or minimal processing to delivery or a requirement that it be unrefrigerated for no more than [xx] hours

41. Product Specifications Presence or absence of individual produce stickers or wax coatings Level of processing needed for specific products Additives or preservatives

42. Product Specifications for Food Safety Food safety and good agricultural practice assurances may choose to require an acceptable response to a farm-based food safety questionnaire or evidence of GAPs or other voluntary food safety certification. Commitment to host a farm visit by school district nutrition services representative to review farm practices WSDA (or other) food processing license if providing minimally-processed produce items or other processed products

43. Buying WA Grown Food IMPLEMENTING THE PROCUREMENT PROCESS 13.Adequately publicize the procurement opportunity 14.Fairly evaluate based on the vendor qualifications, specifications and preferences in your procurement request and award the contract to the selected vendor. 15.Execute a contract that matches your procurement specifications and preferences. 16.Manage the procurement. Keep documentation, monitor service, product quality, and price. Determine and communicate the compliance with the agreement you’ve made.

44. Get the word out to vendors Consider how to reach vendors you’d like to invite to submit a bid, proposal or quote –Prime vendors –Category vendors –Farms, farm cooperatives, or other small food businesses WSDA may be able to help identify ways to reach vendors –Ex: Agriculture/food Listservs, Foodhub, Puget Sound Food Network, Puget Sound Fresh, WSDA databases of interested farms and processors

45. Evaluate, Award and Contract …based on the criteria, qualifications, specifications and preferences you defined in your procurement request

46. Keep documentation. Monitor service, product quality, and price. Determine and communicate compliance with the agreement you’ve made. Manage the Procurement

47. Tips, ideas and tools that will help schools use and buy more locally-grown and raised foods, including: seasonal menu planning information product specification and vendor qualification information on-farm food safety and kitchen food handling resources district-level policy examples for adapting nutrition and wellness policies to include farm to school. What else is in the guide?

48. Anything else? www.wafarmtoschool.org

49. Help Us Improve Our Services Tricia Kovacs Office of Compliance and Outreach WA State Department of Agriculture tkovacs@agr.wa.gov 206-256-6150 tkovacs@agr.wa.gov Contact us with your questions, ideas, recipes, sample documents, etc.