Micro-Purchasing in Child Nutrition Programs
Learn about micro-purchasing in the context of Child Nutrition Programs in Oregon, including its definition, usage, and procurement process. Explore the Federal Procurement Roadmap for CNP sponsors and understand the criteria for formal and informal processes. Discover the concept of micro-purchases, aggregate purchasing, transactions, competition, and equitably distributed purchases among suppliers.
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Presentation Transcript
Part 5: Micro Purchasing Option 2 CFR 200.67 2 CFR 200.320 Child Nutrition Programs Oregon Department of Education
Objectives Define Micro-Purchasing Identify when Micro-Purchasing may be used Understand how to procure using Micro- Purchases Child Nutrition Programs Oregon Department of Education
Federal Procurement Roadmap All CNP Sponsors Is the purchase or contract worth more than $150,000 or the Sponsor s Simplified Acquisition Threshold? Purchase/contract greater than $150,000 Purchase/contract less than $150,000 Use Formal Process Use Informal Process Small Competitive Proposals Micro Sealed Bid Child Nutrition Programs Oregon Department of Education
What is Micro-Purchasing? Micro-purchases: Less than $3,500 per transaction Spread purchases out among qualified suppliers No competitive quotes required 2 CFR 200.67 Child Nutrition Programs Oregon Department of Education
Aggregate To combine several items Cost of all food service goods and services purchased in a single transaction Cost of all items together cannot exceed $3500 if Micro-Purchasing is used. Child Nutrition Programs Oregon Department of Education
Transaction Two or more entities exchange goods, services or money Under an agreement formed for their mutual benefit Example: A Sponsor purchases milk, apples, carrots, bread, eggs, and ground beef from a single supplier at the same time. This is a single transaction. Child Nutrition Programs Oregon Department of Education
Competition Awarded without soliciting competitive price quotations If the price is reasonable. Child Nutrition Programs Oregon Department of Education
Purchases Distributed equitably among qualified suppliers with reasonable prices. Two ways at the time of the purchase or over several purchasing events. Child Nutrition Programs Oregon Department of Education
Reasonable Price Previous purchases Personal knowledge Comparison to similar Child Nutrition Programs Oregon Department of Education
Recordkeeping Receipts Invoices List of vendors Child Nutrition Programs Oregon Department of Education
Distributing Micro Purchases Equitably Distribute purchases equitably - qualified suppliers May not purchase from only one source Written procurement procedures for rotating suppliers Child Nutrition Programs Oregon Department of Education
Example : Distributing the Micro- Purchase Equitably $1000.00 computer paper Three suppliers in the community Rotate purchase of computer paper among the suppliers. Child Nutrition Programs Oregon Department of Education
Difference Between Micro- Purchasing and Small Purchase Micro-purchase means an acquisition of products or services where the aggregate amount does not exceed $3,0 Soliciting competitive quotations not required o The sponsor considers the cost(s) reasonable Single Transaction Less than $3500 for a single transaction Competition achieved by distributing transactions equitably. Child Nutrition Programs Oregon Department of Education
Example 1: A Sponsor contracts for Janitorial service Weekly $100.00 per week The contract = $5200.00 Invoiced monthly Child Nutrition Programs Oregon Department of Education
Example 1: Answer: No The Micro-purchase method cannot be used in this situation: The janitorial services are contracted on a yearly basis The value of contract for the year is $5200.00 The Small purchases standards apply in this setting Child Nutrition Programs Oregon Department of Education
Example 2: A Sponsor: Shops weekly at a retail grocer The bill is less than $3500.00. Question: Should the Sponsor be getting quotes from other retailers and select the retailer with the lowest prices, or is this a micro- purchase? . Child Nutrition Programs Oregon Department of Education
EXAMPLE 2: Answer: Yes Micro-Purchasing allowable Cost per transaction (weekly purchasing) is less than $3500.00 Not required to get quotes from other retailers the prices reasonable Distributes the purchases equitably among qualified suppliers Child Nutrition Programs Oregon Department of Education
Example 3 A Sponsor periodically signs a 3 year contract with a vendor. The 3-year contract cost per year = $2000 Total contract amount = $6000 Question: Is the threshold determined by the cost per year or by the total contract amount, in applying the procurement methods? Child Nutrition Programs Oregon Department of Education
Example 3 Continued Answer: $6000 value of the procurement transaction as a whole, the small purchase standards apply 3 year contract for a total amount of $6000 exceeds the micro-purchase threshold Child Nutrition Programs Oregon Department of Education
SUMMARY What is Micro-purchasing Definitions of terms Requirements of Micro-purchasing Examples Child Nutrition Programs Oregon Department of Education
Questions Child Nutrition Programs Oregon Department of Education
Resources ODE CNP Procurement webpage CACPF Policy and Procedure Manual Chapter 14 2 CFR 200.67; 2 CFR 200.320(a) Child Nutrition Programs Oregon Department of Education
In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, sex, disability, age, or reprisal or retaliation for prior civil rights activity in any program or activity conducted or funded by USDA. Persons with disabilities who require alternative means of communication for program information (e.g. Braille, large print, audiotape, American Sign Language, etc.), should contact the Agency (State or local) where they applied for benefits. Individuals who are deaf, hard of hearing or have speech disabilities may contact USDA through the Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in languages other than English. To file a program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, (AD-3027) found online at: http://www.ascr.usda.gov/complaint_filing_cust.html, and at any USDA office, or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by: (1) mail: U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, SW Washington, D.C. 20250-9410; (2) fax: (202) 690-7442; or (3) email: program.intake@usda.gov This institution is an equal opportunity provider. Child Nutrition Programs Oregon Department of Education
