Introduction to the Procurement Review Tool JUNE 2016

Introduction to the Procurement Review Tool JUNE 2016

State Agency (SA) Procurement Review Process SA provides SFA Procurement Chart to SFA’s selected for review; SFA completes and returns chart to SA

State Agency (SA) Procurement Review Process SA provides SFA Procurement Tool to SFA’s selected for review; SFA completes and returns chart to SA .

State Agency (SA) Procurement Review Process SA provides SFA Procurement Chart to SFA’s selected for review; SFA completes and returns chart to SA The SA reviews the SFA’s responses: number/types of procurement contracts, i. e. , formal, informal, group purchasing organization, processing, sole source and emergency contracts, FSMC contracts

State Agency (SA) Procurement Review Process SA provides SFA Procurement Chart to SFA’s selected for review; SFA completes and returns chart to SA Using the SFA Procurement Tool, the SA identifies the number/types of procurement contracts the SFA has and applies the Contract Selection Chart to select the sample of SFA formal, informal, group purchasing organization, processing, sole source and emergency contracts it will review. Also identify all FSMC contracts The SA answers yes/no/not applicable to questions in the Tool. SA examines documentation from SFA to review the following areas in the selected contracts:

State Agency (SA) Procurement Review Process SA provides SFA Procurement Chart to SFA’s selected for review; SFA completes and returns chart to SA Using the SFA Procurement Chart, the SA identifies the number/types of procurement contracts the SFA has and applies the Contract Selection Chart to select the sample of SFA formal, informal, group purchasing organization, processing, sole source and emergency contracts it will review. Also identify all FSMC contracts The SA answers yes/no/not applicable questions in the SA Procurement Review Workbook & examines documentation to review the following areas in the selected contracts: Written Code of Standards of Conduct Contract Solicitation Contract Evaluation and Award Contract Performance Management Process

State Agency (SA) Procurement Review Process SA provides SFA Procurement Chart to SFA’s selected for review; SFA completes and returns chart to SA Using the SFA Procurement Chart, the SA identifies the number/types of procurement contracts the SFA has and applies the Contract Selection Chart to select the sample of SFA formal, informal, group purchasing organization, processing, sole source and emergency contracts it will review. Also identify all FSMC contracts The SA answers yes/no/not applicable questions in the SA Procurement Review Workbook & examines documentation to review the following areas in the selected contracts: Written Code of Standards of Conduct Contract Solicitation Contract Evaluation and Award Contract Performance Management Process Findings identified during the SA Procurement Review will be documented in the “Summary of Findings" tab of the tool; the SFA will be responsible for developing the corrective actions for any findings.

WHAT will the SA be looking for on the procurement review?

State Agency Reviews: Step One: : • The SA will notify SFAs of the procurement review by email, or letter in the same manner as used in notifying SFAs of an AR.

State Agency: Step Two: SA will obtain and review the SFA’s written procurement procedures, contract oversight and Code of conduct : • Procurement regs- 2 CFR 200. 318(a) and 7 CFR 210. 21(c) • Contractor oversight regs- 2 CFR 200. 318(b) • Code of conduct -2 CFR 200. 318(c)

Step Three: SA reviews the SFA’s procurement documentation: • Intergovernmental or inter-entity agreements, if applicable - 2 CFR 200. 318(e) • Settlement of all contractual issues, if applicable - 2 CFR 200. 318(k) • Records of the procurements selected for review - 2 CFR 200. 318(i)

What are the School Food Authorities (SFA) Responsibilities in the procurement review ?

The SFA completes • The data within the procurement tool prior to the SA procurement review. • Provides the details on the procurement: formal vs informal or solicitation type, contract award, amount paid to vendor, etc. • The procurement information will be evaluated by the SA to determine which procurement actions will be selected for review.

SFA Procurement Questions • What is the SFA’s small purchase threshold? Federal = $150, 000 or more restrictive by SFA? • Has the SFA adopted the 2 CFR 200 (new Super Circular Guidance) ? • Did the SFA pay a membership fee/pay for the services of a GPO, GBO, third party entity?

SFA Procurement Chart Small Purchase Procedures $0 -$150, 000/most restrictive threshold (List All Procurements made using Small Purchase Procedures ) including purchases with a GPO/GBO/COOP. Name of Vendor Cost Solicitation Type Did the SFA receive Was a (FOR (Small Purchase more than one GPO/GBO/third STATE Procedures IFB or response to its party entity AGENCY RFP) solicitation? awarded this USE contract? ONLY) Select for Review?

State agency: Procurement Selection Decision Tree

- Procurement Workbook T I edits 2 -27 -2015 w EJT ed its 3 -11 -15 - Micrc Hom • 11 '[ Page Lay o u t nsert I Formulas Review Data View Acrobat Ix I Procu rem ent Se le ction Chart . . . l. . . J B K Procurement Selection Chart 1 Type of Procure m ent 2 Tota l Num ber of Cont racts Small Purchase Procedures/ Inf o rmal Procu 1 r ement : Select one procu rement from each of the f o llo w ing cat ego r ies, if applicable : 3 4 5 GPO/ GBO/ COOP 1 -1+ So le Source 1 -1+ Emergency 6 7 All ot her Inf orm a l Procurements 8 . 1 2 -2+ Sealed Bids & Competitive 9 10 Procu 1 r ement s/Form al (IFB & RFP): GPO/GBO/ COOP 11 So le Source 12 I Emergency 1 -1+ Re

Ready, set, go! School Year 2016 -17

Review of General Procurement Practices List LEA/SFA staff responsible for procurement: Review of LEA/SFA Written Standards of Conduct 1. Does the SFA/LEA have written codes of conduct that include prohibiting real, or apparent conflicts of interest for employees engaged in selection, award, and administration of contracts? [2 CFR 200. 318(c)(1)/7 CFR 3016. 36(3)(1 -1 v)] a. Does the code of conduct include officers, employees and agents may not solicit or accept gratuities, favors or anything of monetary value from contractors or parties of subcontracts? [2 CFR 200. 318(c)(1)] 2. Does the code of conduct provide for disciplinary actions for violations by officers, employees, or agents? [2 CFR 200. 318(c)(1)] (name of LEA/SFA here) Comments & Technical Assistance

Procurement Standards 2 CFR Parts 200. 318 - 200. 326 § 200. 318 General procurement standards. (a)The non-Federal entity must use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurements conform to applicable Federal law and the standards identified in this part. (b)Non-Federal entities must maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders. (c)(1) …maintain written standards of conduct covering conflicts of interest and …Such a conflict of interest would arise when the employee, …has a financial or other interest in or a tangible personal benefit from …neither solicit nor accept gratuities, favors, or anything of monetary value …disciplinary actions to be applied for violations of such standards by officers, employees, or agents of the non. Federal entity.

Small Purchase Procedures Review Worksheet STATE AGENCY INSTRUCTIONS: Obtain copies of LEA/SFA small purchase procedures documents, …needed to evaluate solicitation and performance for each procurement selected for review. Solicitation 3. Were price or rate quotations obtained from an adequate number (2 or more) of qualified sources? [2 CFR Part 200. 320(b)/7 CFR 3016. 36(d)(1)] EVALUATION AND AWARD PROCESS FOR SMALL PURCHASE PROCEDURES 4. Did the SFA maintain records sufficient to detail the significant history of the procurement? (2 CFR 200. 232/[7 CFR 3016. 36(9)] Vendor Name Comments & Technical Assistance

Sealed Bid/Competitive Proposals - Worksheet (< $150, 000/most restrictive threshold) STATE AGENCY INSTRUCTIONS: Prior to answer the questions in this tab, obtain copies of SFA procurement solicitation documents, specifications, evaluation criteria and contract terms for each contract reviewed per the contract selection chart. General Solicitation Process 4. Was cost/price analysis conducted to estimate the cost of goods or services prior to soliciting? [2 CFR 200. 323/7 CFR 3016. 36(f)] Solicitation –Sealed Bids/ Competitive Proposals 8. Did the solicitation, Invitation for Bid (IFB) or Request for Proposal (RFP): a. Identify all specifications, evaluation factors and their relative importance with price as the primary factor? [2 CFR 200. 320(c)(2)(iii) or (d)(1)/7 CFR 3016. 36(c)(3)(i)] and July 2005 Procurement Questions, dated July 2005] Vendor Name Comments & Technical Assistance

Summary of Findings Review Question Reviewer Comments Did the SFA distribute Provide SFA will purchases equitably among technical assistance qualified suppliers? (2 CFR that Walmart Part 200. 320(a) cannot be the only source used when making purchases under the micropurchase threshold. Purchases must be equitably distributed among qualified sources. Finding When using the micropurchase method, SFA must distribute purchases equitably among other qualified sources. 2 CFR Part 200. 320 Corrective Action SFA must identify other qualified sources that will be used when making purchases using the micropurchase method and adjust procurement procedures to identify these sources.

FOOD SERVICE MANAGEMENT COMPANY CONTRACT(S) Base Year Review Per the Contract Review Chart, all FSMC contracts held by a SFA must be reviewed during the State agency's local procurement review. If the State agency is conducting an initial review of a SFA's solicitation and/or contract as part of the State agency approval process required under 7 CFR 210. 16(a)(9) and 7 CFR 210. 19(a)(5) Name of Food Service Management Company State Agency Review of SFA Solicitation/Contract Document Section A 1) Did the FSMC solicitation/contract (in many cases, the solicitation becomes the contract when signed by both parties) include the following: a) Initial contract duration limited to 1 year? [7 CFR 210. 16(d)] b) Yearly contract renewal options do not exceed 4 additional years? [7 CFR 210. 16(d)] Comments & Technical Assistance

Summary of Findings Review Question Were any material changes made to the contract? Reviewer Comments Finding Corrective Action The guaranteed Observation: The SFA must identify return changed guaranteed return was document the from $300, 000 to reduced by $100, 000 justification for $200, 000 without a without justification for accepting the justification for the change. reduction in the reduction in guaranteed return and why this was and if this change not a material was considered change. material.

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