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procurement resources for producers

step 3

procurement

the Procurement Process

Though procurement methods can vary greatly in application, the procurement process remains largely the same regardless of the size and scale of the purchase (with some slight variations). This is the process that the School Food Authority goes through to procure foods.  

 

Develop solicitation

        •Specifications that describe in detail the product needed;   

        •Detail estimated volume, frequency, and packaging needs;    

        •Timeline for purchase and delivery;   

        •Terms and conditions, etc.   

Advertise 

        •Public publishing and outreach.  

 Award Contract 

      •Evaluate bids/responses to determine the lowest responsive and responsible bidder/offered most advantageous to the Program with price as the primary factor for contract award  

      •Fixed-price or cost-reimbursable contract 

      •May utilize geographic preference in decision-making

Manage Contract 

      •SFA monitors contractor performance for compliance with specifications, terms, and conditions of its contracts. 

  

 

see step 4 for marketing resources
step 4: marketing
Bringing the Farm to School Toolkit

defining “local”

School Food Authorities and school districts  define for themselves what “local” means. The definition of local is flexible. SFAs may determine “local” definitions based on local and regional food availability and program goals.  

The USDA Farm to School Census offers these possible definitions for local :

Produced within a 20-mile, 50-mile, 100-mile, or 200-mile radius  

Produced within the county , state or region.

Procuring local foods

Geographic Preference Updates 2024

The Geographic Preference Option Final Rule will grant authority to School Food Authorities to define local, define unprocessed agricultural products and clarify that a preference is a preference, not a specification. When School Food Authorities use Geographic Preference, it doesn’t change how much you as a producer would be paid for a product, but changes the bid price just for comparison.  

To ease challenges related to buying local products and to promote CNPs as a market for local producers, the Child Nutrition Programs: Meal Patterns Consistent With the 2020-2025 Dietary Guidelines for Americans final rule expands the geographic preference option to allow CNP operators to use “local” as a procurement specification for unprocessed agricultural products for CNPs. The updated regulations1 for the geographic preference option are found in each program’s regulation at 7 CFR 210.21(g)(1), 215.14a(e), 220.16(f)(1), 225.17(e)(1), and 226.22(c)(1). USDA

Bringing the Farm to School Toolkit

Procurement: What you need to know

Procurement practices and policies define purchasing potential and drive market standards.  Understanding how School  Food  Authorities procure food will help you better determine how to enter the market (aka market channels) and market opportunities (aka which school meal programs are right for you).   

Procurement standards and regulatory requirements are guidelines that School Food Authorities must follow to remain in compliance with federal procurement regulations.  School Food Authorities are using taxpayer dollars, so there are controls put in place to make sure those dollars are used efficiently and effectively.  

Informal ProcurementMicro Purchase

  • Micro-purchase Federal threshold is $10,000 (or the state/local threshold – most restrictive threshold applies)
  • Non-competitive (solicitation not required) but must not limit competition
  • Must be equitably distributed across qualified suppliers
  • This might be a one-time order from a School Food Authority or a purchase agreement for four orders under $10,000

Informal Procurement Small Purchase

  • Small purchase Federal threshold is $250,000 (or the state/local threshold – most restrictive threshold applies)
  • Price/rate quotes (“Three Bids and Buy”)
  • Requires specifications of product; document at least three bids
  • This might be an over the phone or an email request for a price quote or a more formal request for quotes (RFQ)

Formal PRocurement Sealed Bids and Competitive Proposals

The School Food Authority (SFA) develops and publishes an invitation for bid (IFB) to award a fixed-price contract. They can also develop and publish a request for proposals (RFP) to award either a fixed-price or cost-reimbursable contract.

Bringing the Farm to School Toolkit

Farm to School Market Channels

Producer Assessment Worksheet 2A

There are many ways to get your products into schools – which way works best for you?

2A Worksheet

Direct to School

Direct to school supply chains are what many people think of first when they hear Farm to School: a direct relationship between a local producer and the school. This means that, when selling to schools, producers market their products directly to school districts, or School Food Authorities (SFAs).

Direct-to-school market channels can provide many benefits, including:  

•High levels of customer satisfaction: the shortened supply chain helps ensure product can be very fresh and maintain quality standards. 

•Retained brand that helps grow your business: cafeteria-based education programs are great opportunities to promote your farm and integrate marketing materials. Examples: Know Your Farmer campaigns and Harvest of the Month programs

•A potential market for lower grade products (i.e., USDA Grade B or C): there can be flexibility in product specifications and standards compared to other wholesale markets.  

•Direct lines of communication: opportunities to determine areas of flexibility and potential negotiation. These support relationship building, which increases the likelihood of continued sales.  

•Increased competitiveness in bidding processes: ability to differentiate your value as a potential vendor by supporting educational opportunities such as farm visits and farmer-in-the-classroom programs. 

•Local decision-making processes: school food procurement policies are largely defined at the local level, meaning that requirements may be less stringent (and more appropriate to your farm characteristics) than those of some intermediaries. 

Idaho school districts

School districts can have very different approaches to procurement depending on the school nutrition program model and goals. Therefore, the individuals responsible for school food procurement can have many different titles and responsibilities. Here are some common titles for school buyers:

•School Food Authorities

•School Nutrition Directors

•School Foodservice Managers (FSMC)

•Procurement Managers

collectives & buying groups

Some school districts participate in state and regional purchasing cooperatives and buying groups to utilize collective purchasing. This allows multiple school buyers to purchase as a group, rather than making purchases individually. Generally, this helps school districts obtain greater buying power and lower prices than they would have when buying on their own, and reduces administrative burden.

Utilize Idaho Preferred maps to find your local market or producer. Idaho Preferred is developing a mapping system to connect producers and schools. In the meantime, enjoy these resources.

USDA Food Programs

USDA nutrition programs must follow certain guidelines for procurement. Knowing the guidelines and how they impact procuring your product are important for the overall success of your Farm to School experience.

National Wholesale distributors

These businesses can range in scale, though they commonly include small and medium-sized, local/regional, and family-owned businesses.

•Benefits and drawbacks: Not all distributors serve school markets, but when they do, this can greatly reduce the marketing burden for producers. Regional distributors can often be more flexible in working with small producers and may be willing to accept smaller volumes and a wider variety of products.

Charlie’s Produce

sysco idaho

Grasmik Produce

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Food service management companies manage vendor contracts but may not manage day-to-day procurement processes.  It is the responsibility of the producer to be sure GAP insurance and certifications are up to date. Click below for more information.

intermediate markets

Intermediated markets are often values-based supply chains that maintain the identity of the producers who grow or raise a product, and that preserve the social, environmental, and community values that are incorporated into production. Some examples are (and can be found in the market descriptors above):

Local retail outlets

Food hubs

Regional distributors

School districts need to choose the approach that works best for their programs. Therefore, schools with newer farm to school programs may source local products from a distributor to get started, and then look into developing direct purchasing relationships with producers. However, they may also end up sourcing from multiple market channels, which means more options for you to get your products into the school!

Bringing the Farm to School Toolkit

step 4: marketing to school districts

MARKETING TO SCHOOL DISTRICTS STEP 4

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