BUYING GOODS AND
SERVICES
S UMMER F OOD S ERVICE P ROGRAM
P ARTICIPANT
G UIDE
Class Purpose
This class aims to give Summer Food Service Program (SFSP) participants a general overview of
federal procurement requirements, and Contracting Entity (CE) responsibilities for complying
with regulations.
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SFSP: Purchasing Goods and Services
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Table of Contents
Class Overview...........................................................................................................................................................3
Module 1: Background ........................................................................................................................................................ 7
Module 2: Phases of Procurement Process ...................................................................................................................... 11
Module 3: Procurement Methods .................................................................................................................................... 13
Module 4: Record Keeping ................................................................................................................................................ 17
Module 5: Summary.......................................................................................................................................................... 19
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Participant Guide
SFSP: Purchasing Goods and Services
CLASS OVERVIEW
Class Description
Modules
Module 1: Background
Module 2: Phases of the Procurement
Process
This class aims to give Summer Food Service Program
(SFSP) participants a general overview of federal
procurement requirements, and Contracting Entity
(CE) responsibilities for complying with regulations.
Module 3: Procurement Methods
Module 4: Record Keeping
Acknowledgment Statement
Module 5: Summary
Total Class Time
1.0 hr
You understand and acknowledge that
 the training you are about to take does not
cover the entire scope of the program; and that
 you are responsible for knowing and
understanding all handbooks, manuals, alerts,
notices and guidance, as well as any other
forms of communication that provide further
guidance, clarification or instruction on
operating the program.
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SFSP: Purchasing Goods and Services
Icon
Participant Guide
Icons
Resources
Discussion
Icons will be used throughout the presentation to
guide participants through the lesson. All icons will be
placed in the left margin. Text scripts associated with
each icon will be included to the immediate right of
the image.
Individual Activity
Group Activity
Reminder
Tip
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SFSP PROCUREMENT RESOURCES
There are several resources available to help you learn more about procurement.

www.summerfood.org (Summer Feeding Policy & Handbooks)
Links to USDA’s Administrative Guidance for Sponsors and USDA Policy memos
www.theICN.org (Institute of Child Nutrition)
Online courses
Procurement in the 21ST Century
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ACRONYMS
Acronym
SFSP
CE
FSMC
IFB
OMB
RFP
TDA
USDA
Term
Summer Food Service Program
Contracting Entity
Food Service Management
Company
Invitation for Bid
Office of Management and
Budget
Request for Proposal
Texas Department of
Agriculture
United States Department of
Agriculture
OBJECTIVES
By the end of the training you should be able to
 list the components of good procurement;
 locate where procurement regulations are found;
 list and explain the phases of the procurement process; and
 identify the five procurement methods and explain when each is used.
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MODULE 1: BACKGROUND
PRE-TEST
Let’s begin by taking a brief pre-test to see what you already know about procurement. Answer
each question below on your own and we will review the correct answers.
1. What determines when to use “informal” or “formal” procurement procedures?
a. The size of my SFSP site.
b. The items I’m procuring.
c. The aggregate cost of the goods or services I’m procuring.
d. All of the above.
2. What are allowable processes for purchases above the simplified acquisition threshold?
a. Micro-purchases
b. Competitive Sealed Bidding (IFB)
c. Small purchase procedures
d. Competitive Proposals (RFP)
e. Both b and d
3. CEs must establish and maintain a written code of conduct to govern the performance
of employees engaged in procurement.
a. True
b. False
4. The last step in the procurement process is awarding the contract.
a. True
b. False
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SFSP: Purchasing Goods and Services
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PROCUREMENT
Procurement- is a multi-step process for obtaining goods, products, and/or services in exchange
for money or value.
WHY PROCURE?
1. Accountability to taxpayers
2. Higher quality goods and services for a lower price
COMPONENTS OF GOOD PROCUREMENT
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CODE OF CONDUCT
CEs must establish and maintain procurement procedures which includes a written code of
conduct to govern the performance of employees engaged in procurement. This written code
must:
• Prohibit employees from soliciting gifts, travel packages, and other incentives from
prospective contractors.
• Prohibit an employee from participating in the selection, award, and administration of any
contract to which an entity or certain persons connected to them, have financial interest.
• Set standards when financial interest is not substantial or the gift is an unsolicited item of
nominal value, and therefore may be acceptable.
• Provide for disciplinary actions to be taken in the event there is a violation.
PROCUREMENT REGULATIONS
Super-Circular
2 CFR 200
Summer Food Service Program
7 CFR 225
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MODULE 2: PHASES OF PROCUREMENT PROCESS
PHASES OF PROCUREMENT PROCESS
The procurement process can be broken down into four distinct phases Planning, Solicting,
Awarding, and Managing.
1. PLANNING- Planning the procurement includes determining the proper procurement
method based on the CEs written procedures and will require a CE to forecast what
needs to be solicited. The planning process allows CEs to evaluate their resources,
project their expenses and determine the appropriate procurement method to be used.
2. SOLICITING- An effective solicitation will
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
Include due dates timeline for start/finish of contract
provide detailed specifications
use appropriate procurement method
clearly describe deliverables.
clearly describe how to submit
clearly describe how the contract will be awarded including:
o Rubric
o How CE will share Q&A
o How notice will be given
Note: CEs should not allow contractors who may potentially bid on a contract to write
or provide specifications for the solicitiaon. Contractors who engage in writing or
providing specifications become ineligible to bid.
3. AWARDING- Two important elements of the award phase include


the selection of responsive and responsible contractors; and
pre-award reviews, if applicable.
TDA pre-award reviews occur when:
 The procurement is deemed sole source
 Any FSMC bids totaling $150,000 or more must be submitted to TDA for approval
before the sponsor can accept a bid.
 Any FSMC bid (regardless of dollar amount) that exceeds the lowest bid must be
submitted to TDA for approval before acceptance, with an explanation of why that
particular bid was chosen.
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4. MANAGING- Managing the contract or “contract administration” refers to all the
steps taken after a contract has been awarded to make sure that the contractor lives up
to its end of the bargain.
PROCUREMENT PLAN
A CE should have a written procurement plan that identifies each action that must be taken in a
proposed procurement. The procurement plan should include information from each of the
phases of the procurement process that we just identified.
The written plan should address:
• Forecasting and scheduling of purchases
• Most appropriate and efficient procurement methods for each procurement
• Criteria for evaluating bids, proposals, or quotes
• Methods for awarding and monitoring the contract
• Protest procedures to handle and resolve disputes relating to procurements
• Code of conduct
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MODULE 3: PROCUREMENT METHODS
PROCUREMENT METHODS
WHEN TO USE FORMAL OR INFORMAL PROCUREMENT METHODS
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Aggregate Purchase Amount - Note: for the purpose of procurement the term aggregate is the
total amount of a single invoice for a single purchase of product(s) and/or service(s) whether
that purchase(s) occurs weekly, monthly, or annually.
MICRO-PURCHASES
Federal regulations in the new Super-Circular have created a micro-purchase threshold. As
defined in 2 CFR Part 200.67, procurement by micro-purchases is the acquisition of supplies or
services in which the aggregate dollar amount does not exceed $3500. To the extent
practicable, micro-purchases must be distributed equitably among qualified suppliers and may
be awarded without soliciting competitive price quotes as long as the price is considered
reasonable by the CE doing the purchase. CEs must document in their procedures
demonstrating how they will “share the wealth” among qualified suppliers. While no
competitive price quotation is necessary for the purchase, CEs must have a method to
document that the cost of the products and/or services is reasonable.
A CE’s written procurement procedures, as required in 2 CFR Part 200.318(a), must include a
procedure that such purchases must be rotated among qualified suppliers.Note: Any costs
incurred as a result of the CE intentionally breaking larger purchases into smaller amounts to
qualify under the micro-purchase threshold are unallowable costs.
SMALL PURCHASE PROCEDURES
Small purchase procedures are relatively simple and informal methods for securing services,
supplies, or other property that are less than or equal to the simplified acquisition threshold
($50,000 for TDA). If small purchase procedures are used, price or rate quotations must be
obtained from an adequate number of qualified sources prior to purchasing from one of them.
The CE must document the date, vendors consulted, and quotes received (including for verbal
quotes). Store advertisements may be considered as documentation. CEs must maintain
documentation that details the history of the procurement process. Product specifications, bid
prices quoted, and to whom the purchase was awarded should be maintained in the CE’s
records.
The following small purchase request template and checklist are examples of tools that can
help a CE document the details of a small purchase procedure.
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COMPETITIVE SEALED BIDDING (Invitation for Bid or IFB)
Competitive sealed bidding is a procurement method where bids are publicly solicited through
media outlets with wide circulation, and a fixed-price contract is awarded to the lowest
responsive and responsible bidder whose bid:

conforms to all the material terms and conditions of the Invitation for Bid (IFB), the
solicitation document used for competitive sealed bidding; and

is the lowest in price.
COMPETITIVE PROPOSALS (Request for Proposal or RFP)
Competitive proposals are used when the basis for the contract award is not solely dependent
upon the lowest cost because other technical factors must be considered. Below are the steps
in the competitive proposals process.

RFP – The CE develops an RFP which identifies the goods or services needed, and all
significant evaluation factors. The RFP is publicized and is used to solicit proposals from
a number of sources.

Proposal – Vendors will submit their “offer” in the form of a proposal.

Vendor Selection – The CE will evaluate the proposals and conduct negotiations with the
top respondents.

Contract – Awarded to the responsive and responsible bidder whose proposal is most
advantageous to the program, with price and other factors considered. Price must be
the primary consideration when awarding a contract under this competitive
procurement method.
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NONCOMPETITIVE PROPOSALS
The use of non competitive proposals must be approved by TDA and may be used only when
one of the following applies:
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MODULE 4: RECORD KEEPING
RECORD RETENTION
Procurement documentation and contract records are subject to the same record keeping
requirements as all other SFSP related records. The three-year record retention period does not
begin until the final contract renewal period has expired and/or the final payment is recorded,
whichever occurs last. Bid protests, litigation, or audits may extend the three-year retention
period.
Note: You should follow more restrictive record keeping requirements of your administering
agency.
EXAMPLES OF PROCUREMENT RECORDS
Some examples of procurement records that CEs should be keeping include:
 A written rationale for the method of procurement.
 A copy of the Request for Proposal or the Invitation for Bid.
 The selection of contract type (fixed price or cost reimbursable).
 The bidding and negotiation history.
 The basis for contractor selection.
 Approval from TDA to support a lack of competition when competitive bids or offers are
not obtained.
 The basis for award cost or price.
 Documentation for micro-purchases and small purchases
 The terms and conditions of the contract.
 Any changes to the contract and negotiation history.
 Billing and payment records.
 A history of any contractor claims.
 A history of any contractor breaches
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MODULE 5: SUMMARY
SUMMARY
Purchase Decision Chart
CE Conducts Cost Analysis to Determine the Estimated Total Cost
of the Products and/or Services

Equal to or Less Than
≤
Simplified Acquisition Threshold
$50,000*
($0.01 to $50,000)
(must choose)


Informal
Procurement
Methods
MicroPurchase
>
($50,001 or more)
(may choose) 1

Greater Than
Formal
Procurement
Methods

Small
Purchase


Sealed Bid
Competitive Proposal
Invitation for Bid (IFB)
Request for Proposal (RFP)
* ≤$50,000 is the TDA threshold. CEs should apply the appropriate threshold based on the entity type as
described in the Most Restrictive Simplified Acquisition Threshold subsection in this section.
You understand and acknowledge that:
 the training you have completed does not cover the entire scope of the program; and
that

you are responsible for knowing and understanding all handbooks, manuals, alerts,
notices and guidance, as well as any other forms of communication that provide further
guidance, clarification or instruction on operating the program.
1
CE may choose to use a formal procurement procedure for a total cost that is equal to or less than the
simplified acquisition threshold in order to get a better price.
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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.
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