SNP Procurement

Medium

Proper Procurement is a Requirement for Program Participation: 7 CFR 210.21

School Nutrition Programs receive federal funds; therefore, procurement regulations for federal procurement must be followed to ensure that all vendors are given the opportunity for free and open competition, which results in the best and most responsive product at the lowest possible price.  Sponsors of a school nutrition program must have:

  • A documented procurement plan 2 CFR 200.318(a) , Find a template: Sample Procurement Policy for Districts
    • Other sections that should be added to the procurement policy:
  • The equitable distribution plan for all vendors able to provide service in a micropurchase, i.e., Purchase from Vendor A the first three months; Vendor B during the second three months, and Vendor C in the last three months of the school year.
  • A plan that allows vendors with past performance concerns to be restored to full evaluation eligibility in their bid. The goal of the solicitation is open and full competition.
  • Written protest procedures 2 CFR 200.318(k)
  • Written standards of conduct for foodservice employees 2 CFR 200.318(c)(1),  Find a template:  Sample Code of Conduct
  • Federal thresholds for each type of procurement must be adhered to unless the state or local agency has more restrictive thresholds.
  • Records sufficient to detail the history of each procurement transaction, 2 CFR 200.318(i). Records will include:
    • The rationale for the procurement type (pre-solicitation cost analysis)
    • Contract type selection or rejection (all submitted bids and evaluations)
    • The contract award and proof that the contract has been monitored.
Download the latest version of the NDDPI-CNFD Procurement Manual.

 

Types of Procurement: 2 CFR 200.320

To determine the type of procurement that must be done for the purchase desired, a Cost Analysis must be performed.

Medium

Small Purchase (Also known as Informal Procurement or Simplified Acquisition) – Threshold $10,000-$50,000 (ND State) 2 CFR 200.320(a)(2)

When procuring goods and services for the Child Nutrition Programs, a school food authority must determine whether it must use a small purchase or formal procurement method. It is important to understand and then identify which method best meets the needs of your individual school food service operation. Small purchase procurement occurs when a school food authority’s purchases fall at or below the Federal, State, or local small purchase threshold (whichever is more restrictive). The Small Purchase method is commonly referred to as an Informal procurement or simplified acquisition.  Although this method is permitted when the amount of a purchase falls at or below the most restrictive small purchase threshold, a school food authority could choose to use the formal procurement method (see below for more information) rather than the Small Purchase procurement method.

The Federal thresholds are between $50,000 and $250,000; however, the State of North Dakota thresholds are between $10,000 and $50,000.  Please check your local procurement thresholds and adhere to the most restrictive threshold levels.  

The following steps are typically involved in Small Purchase Procurement:

  1. Develop specifications in writing;
    • To allow for open competition, the brand may not be used unless ‘or equal’ is included in the specification.
    • Items AND quantities forecasted for the school year must be included in the solicitation.
    • Geographic preference points may be incorporated into scoring criteria for unprocessed locally grown or raised agricultural products. Find more information on the Geographic preference option in USDA Memo SP 24-2024, CACFP 10-2024, SFSP 14-2024
    • The Buy American provision must be included in all procurement. See the tab below.
  2. Identify sources eligible, able, and willing to provide products;
  3. Contact at least two sources; it is strongly encouraged to contact three or more vendors for a quote to ensure the best possible price is received.
    • Document the responses from each source.
    • Contact may be by postal mail, email, or phone.
  4. Evaluate bidders’ responses to your written specifications.
  5. Determine the most responsive and responsible bidder at the lowest price. (NOTE: Price is the only determining factor for awarding the bid.  If other criteria are needed, then a formal procurement method must be used.)

Formal Procurement  – Threshold Over $50,000 (ND State) 2 CFR 200.320(b)

Formal procurement occurs when a school food authority’s purchases exceed the Federal, State, or local small purchase threshold (whichever is more restrictive). Within Formal Procurement, there are two methods available: Competitive Sealed Bidding (commonly referred to as sealed bidding and uses an Invitation for Bid or IFB) and Competitive Negotiation (which uses a Request for Proposal or RFP).

The Federal Threshold is $250,000. (2025)

The following steps are typically involved in Formal Procurement:

  1. Develop solicitation specifications;
    • To allow for open competition, the brand may not be used unless ‘or equal’ is included in the specification.
    • Items AND quantities forecasted for the school year must be included in the solicitation.
    • Geographic preference points may be incorporated into scoring criteria for unprocessed locally grown or raised agricultural products. Find more information on the Geographic preference option in USDA Memo SP 24-2024, CACFP 10-2024, SFSP 14-2024
    • The Buy American provision must be included in all procurement. See the tab below.
  2. Publicly announce the solicitation; (Please ensure that the solicitation reaches the intended audience, i.e., advertising in the local paper may not be picked up by a national vendor)
  3. Offer vendors an opportunity to ask questions. All questions and answers must be communicated to all interested parties.
  4. Evaluate bidders using established scoring criteria in the solicitation.
    • Providers of locally grown or raised unprocessed agricultural products may receive extra points in scoring if this was established in the scoring criteria prior to solicitation; and
    • Determine the most responsive and responsible bidder at the lowest price based on a team evaluation of the bid.  Team members must not have a conflict of interest in scoring the bid.
  5. Award the bid.
  6. Monitor the contract. This is a requirement of the procurement process.  Monitoring 

Micropurchase  – Threshold less than$10,000 (ND State) 2 CFR 200.320(a)(1)

Micro-purchases may be awarded without soliciting competitive price or rate quotations if the recipient or sub-recipient considers the price reasonable based on research, experience, purchase history, or other information and maintains documents to support its conclusion. 

              - Federal Micropurchase Threshold is $50,000 (2025).  Please note that the Micropurchase Threshold for North Dakota is $10,000

              - The local SFA Micropurchase Threshold may be even lower.  The most restrictive threshold must be used.

              - Purchases cannot be artificially divided to meet the threshold.  

              - Micropurchases should be distributed equitably among qualified suppliers.

The following steps are typically involved in Micropurchase Procurement:

  1. Develop solicitation specifications;

Emergency (Noncompetitive) Procurement

The methods of procurement authority under 2 CFR 200.320(c) provide SFAs with the flexibility to conduct emergency noncompetitive procurement(s) when an urgent need or emergency arises, such as replacing missing foods or paper goods with alternative sources or products quickly. Emergency noncompetitive procurement methods are a standing flexibility and do not require a waiver.

This procurement type may only be used in specific circumstances:

(1) The aggregate amount of the procurement transaction does not exceed the micro-purchase threshold (see paragraph (a)(1) of this section);

(2) The procurement transaction can only be fulfilled by a single source;

(3) The public exigency or emergency for the requirement will not permit a delay resulting from providing public notice of a competitive solicitation;

(4) The recipient or subrecipient requests in writing to use a noncompetitive procurement method, and NDDPI-CNFD provides written approval; or

(5) After soliciting several sources, the competition is determined to be inadequate.

If the Noncompetitive Procurement is used for a purchase, the SFAs Procurement Plan/Policy must indicate how long this type of procurement may be used for, i.e., one purchase, one quarter, etc., but not longer than one school year.

Best Practice:

If an SFA experiences canceled or reduced orders, consider purchasing smaller quantities of the product(s) through one or more local producers or small businesses instead of purchasing products in a single, large transaction through a broad-line distributor. Leveraging local foods may help form new connections with small, local businesses and producers entering the school nutrition market, which can help create a more resilient food system.

Additional resources to address these challenges are available through the School Nutrition Association, the Institute of Child Nutrition, and No Kid Hungry

The Child Nutrition and Food Distribution Office (CNFD) is available to assist schools in completing waiver requests, identifying sources for food purchasing, and finding solutions to their unique struggles.  CNFD staff can be contacted at dpicnfd@nd.gov or call (888) 338-3663.

Medium

Procurement Resources

Medium

Farm to Child Nutrition:

Farm to School is a program to encourage K-12 schools to source the foodstuffs needed to feed their students from as local as possible.  Local foods usually are higher in nutrients because nutritional loss due to shipping is lessened. For the same reason, they may be of higher quality as well. Purchasing from local sources usually keeps the money circulating in the local economy.  Schools have also brought in local producers for nutrition education opportunities with the students to make a stronger connection between the food they eat and the land it was grown on.

School kitchens must use proper procurement practices for all food, but they can give extra points when awarding contracts for local food items. Please see the information above for ways to procure local foods properly.

Urban School Food Alliance

Procurement Policy: Your roadmap to completing annual procurement. 

USDA Procurement for School Foodservice: https://www.fns.usda.gov/f2s/usda-procurement-regulations

              Webinars

  • Market Basket Analysis: Market Basket Analysis When Procuring Program Goods and Modifying Contracted for Product Lists   On Feb. 22, 2018, Child Nutrition and Food Distribution Programs held a webinar on policy guidance FD-144, SP04-2018, SFSP 01-2018, CACFP 04-2018, to provide clarity as to how market basket evaluations and contract awards can be compliant with the Federal procurement standards. We took questions from participants concerning the materials covered in the webinar.
  • Procurement Strategies for SY 2021-2022: Procurement Strategies for School Year 2021- 2022: Webinar for School Food Authorities   Includes best practices on forecasting, menu strategies, and storage solutions. Participants are also encouraged to use the procurement trainings located on the ICN website. There are specific examples related to the supply chain disruption during and immediately after the Pandemic but most of the information is relevant for today.