Procuring Local Foods
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1 Procuring Local Foods for Child Nutrition Programs Christina Conell Program Analyst Laura Brown Program Analyst SNA State Agency Meeting December 11, 2013 United States Department of Agriculture Food and Nutrition Service
2 » What state are you from?» What is your role?» What do you hope to learn today? Introductions
3 » Procurement principles and regulations» Procurement methods» Sourcing locally, and correctly!» The Geographic Preference option» Incorporating local foods into school meals: an example» Resources» Questions Overview
4 » Identify sources of local food» Understand the mechanisms for local sourching» Understand the geographic preference option» Know where to go for additional procurement guidance Learning objectives
5 » An SFA wants to procure about 90,000 pounds of local carrots for one school for the whole year and estimates that the product will cost about $100,000. What are the SFA s options for procuring the carrots? Scenario 1
6 Procurement principles and regulations
7 Procurement is the purchasing of goods and services. The procurement process involves: Planning Drafting Specifications Procurement Advertising Principles the Procurement Awarding a Contract Managing the Contract What is procurement?
8 1. Competition 2. Responsive and Responsible 3. American Grown 4. Know Your Federal, State and Local Regulations 4 Key Concepts
9 »Competition is essential to ensure low cost and good quality of goods and services. 1) Competition
10 Do not» Place unreasonable requirements on firms;» Require unnecessary experience and excessive bonding;» Give noncompetitive awards to consultants;» Have organizational conflicts of interest;» Specify only brand name products; or,» Make arbitrary decisions in the procurement process. 1) Competition killers
11 » Awards must be made to vendors that are responsive and responsible» Responsive means that the vendor submits a bid that conforms to all terms of the solicitation» Responsible means that the vendor is capable of performing successfully under the terms of the contract 2) Responsive and responsible
12 » The National School Lunch Act requires SFAs to purchase domestically grown and processed foods to the maximum extent practicable. 3) The Buy American provision
13 » Be familiar with all procurement requirements, at the federal, state and local levels» SFA is responsible for complying with all levels of regulations.» In some cases, state and federal regulations may be in conflict with each other. 4) Procurement rules
14 » What State policies do you have?» What is your State s small purchase threshold?» Does your State have legislation promoting farm to school?» Does your state require vendors to carry liability insurance? If so, how much?» Does your state allow both RFPs and IFBs?» Are there other State-specific guidelines? State procurement policies
15 State, federal, and nonprofit support
16 F2S Coordinators, Depts of Ag
17 F2S Coordinators, Depts of Ed
18 F2S Coordinators, Depts of Ag & Ed
19 States with farm to school legislation
20
21 Procurement methods
22 $150,000 > (Small Purchase Threshold) Informal Small Purchase (Requires price quotes from at least 3 bidders) Formal Sealed Bids (IFBs) & Competitive Proposals (RFPs) (Requires public advertising) Procurement methods
23 Develop solicitation. Manage the contract. Publicly announce the IFB/RFP. Award the contract to the most responsive and responsible bidder at lowest price. Evaluate bidders using established criteria. The formal procurement process
24 » Procurement by competitive sealed bidding is done by issuing an invitation for bid (IFB).» Use it when:» A complete, adequate, and realistic specification is available.» The contract can be awarded on the basis of price. Competitive sealed bidding
25 » Procurement by competitive proposal is done by issuing a request for proposal (RFP).» Use it when:» Conditions aren t appropriate for a sealed bid.» Price won t necessarily be the sole basis for the award. Competitive proposals
26 Develop your specs in writing Manage the contract. Determine most responsive and responsible bidder at lowest price and award contract. Evaluate bidders responses to your specs. Identify and notify at least 3 sources eligible, able, and willing to provide products. The informal procurement process
27 » Use it when:» The estimated amount of your purchase falls below your small purchase threshold. Small purchase procedure
28
29 Sourcing locally, and correctly!
30 1. WHAT: Which types of products? 2. WHERE: From which types of sources? 3. HOW: The mechanics of sourcing local correctly. Buying local
31 Vegetables Meat, Poultry and Fish Beans, Grains, and Flour Dairy Fruits Eggs 1) Local WHAT?
32 » Through distributors» Through food service management companies» From food processors» Through DoD Fresh» From individual producers» From producer co-ops/food hubs» From school gardens 2) WHERE to get local foods
33 » Using geographic preference;» Picking the low hanging fruit;» Including related characteristics in specifications;» Approaching only local sources under an informal procurement;» Including a desire for local items in distributor or FSMC solicitations;» Choosing local foods in the DoD Fresh catalog,» Using USDA Foods to augment your local purchases; and,» Forward contracting. 3) How to source local
34 » Some local products, because of their nature, are likely to be cheaper than non-local competitors.» Encourage districts to ask their providers where their food is coming from they might be surprised! Procure the easy ones first
35 Districts can include specifications such as harvested within 48 hours of delivery that will increase the chances that a local vendor will win the contract. Use specifications
36 » When purchasing local foods, some things to consider are:» Degree of ripeness or maturity» Freshness (age)» Condition upon receipt of product» Temperature» Size uniformity» Other quality standards (such as organic, no-till, no-spray, etc.) Other potential specifications
37 Foods must be:» Grown on farms that are less than 50 acres in size and grow more than five food crops at one time;» Grown on farms that utilize a majority of hand harvesting, hand packing or human labor power in growing, harvesting. and packing of food;» Delivered within 24 to 48 hours of harvest;» Delivered directly to multiple SDUSD school sites (not a central warehouse). The number of drops is to be determined by the district on a case-by-case basis; Example: San Diego Unified
38 Specifications Exercise
39 » Lettuce for salad» Turkey for chili» Tomatoes for sandwiches Products
40 » For purchases under their small purchase threshold, districts can get quotes from 3 (or more) local farms or vendors.» But remember:» They need to write specifications. Approach only local vendors
41 » Tomatoes» Hydroponic» Available 10 months of the year» US No. 1, fully ripe, red color-stage 5-6» 10 day shelf life» Organic» Delivered to 18 schools 2 days prior to service» Proof of liability insurance due with bid» GAP certified» 36 cases per week Example from Tulsa, OK
42 Vendor Tom s Toms Vickie s Vines Fresh Network Date received July 1 July 6 July 10 Responsive and Responsible Yes Yes No, can only deliver 5 months of year Price/lb $2.20 $2.05 $2.75 Sample bid documentation
43 » SFAs cannot arbitrarily divide purchases to fall below the small purchase threshold.» In some instances, however, characteristics of a product or market justify the need to separate it from the overall food procurement. Splitting procurements
44 » Distributors are vital!» One-stop shop» Delivery» Most hold liability insurance» To purchase local through a distributor:» Include this desire in the solicitation» Encourage districts to ask if any products currently on the contracted list are sourced local Buying local through a distributor
45 » Union Public Schools Tulsa, OK» Springfield District Eugene, OR» Knox County Schools Knoxville, TN» Harrisonburg City Public Schools Harrisonburg, VA Example: Using distributors
46 » Food Service Management Company Contract» Districts must specify what types of local products and when they would like them in the solicitation and contract.» Cost reimbursable and fixed price contracts» Cost reimbursable contracts require that FSMC follow procurement regulations.» Fixed price contracts are more flexible for the recipient, but may be more difficult for the vendor to manage. Buying local through a FSMC
47 » Eugene 4j District Eugene, OR» Worked with Sodexo, a FSMC, to add a distributor who is committed to working with local producers to the approved supplier list.» Rochester County Schools NH» Working with a GAP certified apple grower Example: FSMC solicitation
48 » Purchasing product before harvest» Provides producer with a guarantee» Ensures the farmer will plant and pack the supply needed» Understand the risk» What happens if the crop fails?» Must follow competitive procurement process Using a forward contract
49 » North Carolina» Issues a solicitation for different products every quarter.» Not too far in advance, which allows for a steady price and more predictable quantity.» Enables districts to have a steady supply and guarantees a market for growers. Example: Using a forward contract
50 » Farm to school coordinators work with distributors» Connect distributors to local growers» Set up commitments between producers and distributors Example: Oregon and Oklahoma
51 » DoD Fresh offers an opportunity to use USDA Foods entitlement dollars on fresh produce» DoD contracts with produce vendors across the country» Many vendors purchase regionally grown produce Working with DoD Fresh
52 FFAVORS
53 » North Carolina» NC Dept. of Agriculture fosters relationships with growers and DoD vendor.» State even facilitates transportation from farm to DoD vendor facility.» Connecticut» Holds an annual Know Your Farmer Meeting to facilitate producer relationships with the DoD Vendor.» Texas» Works with DoD vendors to select at least 5 TX Grown products that will be available at different times. Example: Working with DoD Fresh
54 » 100% American grown» Every product is local to someone!» Be aware of what is produced in your region and order those products» Explore state processors Locally produced USDA Foods
55 » Western Pollack, Cheese, Apricots, Peaches, Tomatoes, Pears, Potatoes» Southwest Rice, Beans, Peanut butter, Beef» Southeast Chicken, Peanut butter, Catfish, Turkey, Rice, Flour» Northeast Flour, Corn, Green beans» Mid Atlantic Corn, Pasta, Beans, Chicken» Midwest Apples, Cherries, Beef, Beans, Carrots, Cheese, Green beans» Mountain Plains Beans, Beef, Flour, Pasta, Pork USDA Foods by region
56 » Procurement regulations do not apply to donated foods» Districts should consider food safety issues and menus before accepting foods» Document receipt of goods Donated foods
57 » Districts can target multiple sources with the same mechanism.» Several of the mechanisms can be used in combination. Choosing a source and a mechanism
58 » An SFA works directly with a local grower to source fresh herbs. The value of the products is less than $1,000. What are the SFA s options for purchasing the herbs? Scenario 2
59
60 The Geographic Preference option
61 » Authorized by Section 4302 of Public Law , the Food, Conservation, and Energy Act of 2008 (AKA the 2008 Farm Bill)» Final Rule published in April, 2011 The Geographic Preference option
62 » Geographic preference can be applied to most school food purchases for unprocessed agricultural products. Cash Assistance USDA Foods DOD Fresh Bringing local into the cafeteria
63 » School Food Authority defines local» Local can be defined by:» Region» State» Mileage» Different definitions for different products Who and how to define local?
64 Unprocessed agricultural products retain their inherent character. These are the allowed food handling and preservation techniques:» Cooling, refrigerating, and freezing» Peeling, slicing, dicing, cutting, chopping, shucking, and grinding» Forming ground products into patties» Drying and dehydrating» Washing, packaging, vacuum packing, and bagging» Adding preservatives to prevent oxidation» Butchering livestock or poultry» Pasteurizing milk What is unprocessed?
65 To apply a geo. pref., districts should: 1) Define local. 2) Determine what type of procurement method to use. 3) Decide how much preference local products will receive. 4) Be sure your solicitation makes perfectly clear how the preference will be applied. How to incorporate a geographic preference
66 Owen s Orchard Apple Lane Farms Bob s Best Price $1.97 $2.05 $2.03 Meets geographic preference? Price with preference points No Yes (10 points) No $1.97 $1.95 $2.03 Example 1: 1 Penny = 1 Point
67 Produce Express Ray s Produce F&V Distribution Contract Price $32,000 $35,000 $34,000 % F&V Able to Provide From Within the State Geographic Preference Points to Respondent able to meet >60% Local Items No Yes (10% pref.) No Price for comparison $32,000 $31,500 $34,000 10% price preference will be awarded to any bidder that can source at least 60% of the products from within the state. Example 2: Percentage preference
68 Sliding scale of percentage local Preference points 70% and more local products % local products % local products 4» 10 preference points will be awarded to vendors able to provide over 70% local, 7 points for 50-69% and 5 points for 25-49%. Geo. pref. sliding scale
69 Laurie s Paula s Pulses Gary s Grains Legumes Price = Contractor ability to perform all specifications Product quality = 15 Delivery = 10 Packaging and Labeling = 5 Three references, past history = Able to provide farm/facility tour or classroom visits = 5 Able to provide state of origin on all products = 5 Ability to provide sourced within the state products = possible points Example 3: Geo. pref. in an RFP
70 » Work in teams of two or three.» Pretend you re working with a SFA to buy a local product (of your choosing).» Fill in each step outlining:» How the district will define local;» What procurement method they will use;» How much preference will be applied; and,» The mechanism for applying the preference. Geographic preference worksheet
71
72 Incorporating local foods into school meals: an example
73 Monday Tuesday Wednesday Thursday Friday Submarine Sandwich on Whole Wheat Roll Refried Beans Jicama Green Pepper Strips Cantaloupe wedges Skim Milk Whole Wheat Spaghetti with Meat Sauce Whole Wheat Roll Green Beans Broccoli & Cauliflower Kiwi Halves Low-fat Milk Chef Salad Whole Wheat Soft Pretzel Corn Baby Carrots Banana Skim Milk Oven-Baked Fish nuggets Whole Wheat Roll Mashed Potatoes Steamed Broccoli Canned Peaches Skim Milk Whole Wheat Cheese Pizza Baked Sweet Potato Fries Grape tomatoes Applesauce Low-fat Milk Evolution of a local menu
74 Monday Tuesday Wednesday Thursday Friday Submarine Sandwich on Whole Wheat Roll Refried Beans Jicama Green Pepper Strips Cantaloupe wedges Skim Milk Whole Wheat Spaghetti with Meat Sauce Whole Wheat Roll Green Beans Broccoli & Cauliflower Kiwi Halves Low-fat Milk Chef Salad Whole Wheat Soft Pretzel Corn Baby Carrots Banana Skim Milk Oven-Baked Fish nuggets Whole Wheat Roll Mashed Potatoes Steamed Broccoli Canned Peaches Skim Milk Whole Wheat Cheese Pizza Baked Sweet Potato Fries Grape tomatoes Strawberries Low-fat Milk Harvest of the month: Strawberries from Seascape Farm. Evolution of a local menu
75 Monday Tuesday Wednesday Thursday Friday Submarine Sandwich on Whole Wheat Roll Refried Beans Jicama Green Pepper Strips Cantaloupe wedges Skim Milk Whole Wheat Spaghetti with Meat Sauce Whole Wheat Roll Green Beans Broccoli & Cauliflower Kiwi Halves Low-fat Milk Chef Salad Whole Wheat Soft Pretzel Corn Baby Carrots Banana Skim Milk Oven-Baked Fish nuggets Whole Wheat Roll Mashed Potatoes Steamed Broccoli Canned Peaches Skim Milk Whole Wheat Cheese Pizza Baked Sweet Potato Fries Grape tomatoes Strawberries Low-fat Milk Evolution of a local menu
76 Monday Tuesday Wednesday Thursday Friday Submarine Sandwich on Whole Wheat Roll Refried Beans Jicama Green Pepper Strips Cantaloupe wedges Skim Milk Whole Wheat Spaghetti with Meat Sauce Whole Wheat Roll Green Beans Broccoli & Cauliflower Kiwi Halves Low-fat Milk Chef Salad Whole Wheat Soft Pretzel Corn Carrots Banana Skim Milk Oven-Baked Fish nuggets Whole Wheat Roll Mashed Potatoes Steamed Broccoli Canned Peaches Skim Milk Whole Wheat Cheese Pizza Baked Sweet Potato Fries Grape tomatoes Strawberries Low-fat Milk Evolution of a local menu
77 Monday Tuesday Wednesday Thursday Friday Submarine Sandwich on Whole Wheat Roll Refried Beans Jicama Green Pepper Strips Cantaloupe wedges Whole Wheat Spaghetti with Meat Sauce Whole Wheat Roll Green Beans Broccoli & Cauliflower Kiwi Halves Chef Salad Whole Wheat Soft Pretzel Corn Carrots Banana Skim Milk Oven-Baked Fish nuggets Whole Wheat Roll Mashed Potatoes Steamed Broccoli Canned Peaches Skim Milk Whole Wheat Cheese Pizza Baked Sweet Potato Fries Grape tomatoes Strawberries Low-fat Milk Skim Milk Low-fat Milk Evolution of a local menu
78 Monday Tuesday Wednesday Thursday Friday Submarine Sandwich on Whole Grain Roll Refried Beans Jicama Green Pepper Strips Cantaloupe wedges Whole Wheat Spaghetti with Meat Sauce Whole Wheat Roll Green Beans Broccoli & Cauliflower Kiwi Halves Chef Salad Whole Wheat Soft Pretzel Corn Carrots Banana Skim Milk Oven-Baked Fish nuggets Whole Grain Roll Mashed Potatoes Steamed Broccoli Canned Peaches Skim Milk Whole Wheat Cheese Pizza Baked Sweet Potato Fries Grape tomatoes Strawberries Low-fat Milk Skim Milk Low-fat Milk Evolution of a local menu
79 Monday Tuesday Wednesday Thursday Friday Submarine Sandwich on Whole Grain Roll Refried Beans Jicama Fresh Peas Cantaloupe wedges Skim Milk Whole Wheat Spaghetti with Meat Sauce Whole Wheat Roll Green Beans Broccoli & Cauliflower Kiwi Halves Low-fat Milk Chef Salad Whole Wheat Soft Pretzel Corn Carrots Banana Skim Milk Oven-Baked Fish nuggets Whole Grain Roll Mashed Potatoes Steamed Broccoli Canned Pears Skim Milk Whole Wheat Cheese Pizza Baked Sweet Potato Fries Grape tomatoes Strawberries Low-fat Milk Evolution of a local menu
80 Monday Tuesday Wednesday Thursday Friday Local Lentil Patty Whole Grain Roll Refried Beans Jicama Fresh Peas Cantaloupe wedges Skim Milk Whole Wheat Spaghetti with Meat Sauce Whole Wheat Roll Green Beans Broccoli & Cauliflower Kiwi Halves Chef Salad Local Spanish Rice with corn Carrots Banana Skim Milk Oven-Baked Local Fish Sandwich on a Whole Grain Roll Mashed Potatoes Steamed Broccoli Canned Pears Skim Milk Whole Wheat Cheese Pizza Baked Sweet Potato Fries Grape tomatoes Strawberries Low-fat Milk Low-fat Milk Evolution of a local menu
81 » An SFA has worked with the same dairy in their state for over five years. The district loves the product, but the contract will expire at the end of school year. What are some strategies the SFA might use to target the same dairy or similar operations in the state? Scenario 3
82 » An SFA wants to procure about 90,000 pounds of local carrots for one school for the whole year and estimates that the product will cost about $100,000. What are the SFA s options for procuring the carrots? Scenario 1 Anything to add?
83
84 Farm to school resources
85 Fact Sheets
86 » Geographic Preference Q&As» Federal procurement regulations» State and local procurement rules and guidance» Washington State Department of Agriculture Guide» National Food Service Management Institute Online Training Resources
87 NERO WRO MPRO MWRO MARO SWRO SERO National Office FNS staff are here to help!
88 Thank you! Questions? Christina Conell
89 Ground beef must be:» From cattle specifically raised for beef production (culled dairy cows are not acceptable);» Cattle are raised without the use of hormones or sub-therapeutic antibiotics, are grass fed or grass fed and grain finished;» Slaughtered and processed in a USDA-inspected facility;» Ratio of lean to fat should be 85/15 or leaner; and,» Labeled with the name of the company, product type, and a unique indicator to trace the product to the animal/date of slaughter. Example: Harrisonburg City Public Schools
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