Many Child Nutrition Directors are unsure about which type of procurement they must use under the many different circumstances they face. The first question to address is how much money you plan to spend on a given purchase. For small dollar amounts, purchases can typically be made informally with the vendor of your choice. However, if directors need to make a large purchase, or if their purchases are ongoing with a specific company, then a contract may be required. Details about the different procurement types are given below.

You may also find the Procurement Rules Flowchart helpful in determining which type of procurement is required.

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Procurement Methods Flow Chart

Micropurchases

A purchase of an individual item costing less than $5,000 or multiple items totaling less than $10,000 is considered a micropurchase. (As always, if you have more restrictive local thresholds, you must adhere to those). This type of purchase can be made directly with the vendor of your choice—although you must keep a copy of the invoice on file, no other documentation is required. You do need to share the wealth by rotating your purchases among qualified suppliers. The easiest way to meet this requirement is to create a list of suppliers from whom you might reasonably purchase small amounts of goods (for example, grocery stores within a certain mile radius) and alternate purchases between the different businesses on the list.

Small Purchases

Purchases under the Simplified Acquisition Threshold ($50,000 unless your local threshold is more restrictive) can be made using the small purchase method. You will need to obtain at least 3 quotes for a product or service. Quotes can be gathered via phone, email, or in person, but regardless of how they are obtained, they must be documented in detail. It is also important to use product specifications to obtain your quote (as opposed to searching online for the price of a specific item) to avoid a brand name only procurement. More information on developing specifications is given on the next page. You must do business with the vendor who provides the lowest quote.

Telephone Quotation Handout

Formal Procurement

Formal procurement is required for large purchases, or when regular purchases are made from a single vendor totaling $50,000 or more over the course of a year. Most purchases within the Food Distribution Program will need to follow formal procurement guidelines. Formal procurement always follows the same basic steps: Develop a solicitation including detailed product specifications, publicly post the solicitation, evaluate each respondent using established criteria, select the responsive and responsible bidder at the lowest price, and award and manage the contract.

Solicitations take the form of either an Invitation for Bid (IFB) or Request for Proposal (RFP). Hover over each to learn more:

IFB

An IFB is a document inviting vendors to submit proposals for your business. The document must detail the product specification for the needed item(s) or service(s). The IFB should also give an estimate of the quantities that will be needed and the delivery dates. In an IFB, quotations are accepted and the contract is formed with the lowest bidder that can meet all bid specifications.

IFB Example (Download) Shirts for the Cafeteria

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IFB Example
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IFB Example (Download) (Created by the Georgia Department of Education)

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IFB Example
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RFP

An RFP requests vendor proposals, just like an IFB. The main difference, is that an RFP will consider factors other than price. Often an RFP will include services as well as items. Specifications for the goods and services should be specific, but in some cases SFAs can choose to let the vendor propose the method that they will use to fill the need. To award an RFP, the SFA must develop a scoring system prior to releasing the RFP. When proposals are collected, each is scored and the contract goes to the vendor with the highest scoring proposal.

RFP Example (Download) Fresh Produce

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RFP Example
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Publicizing Formal Bids:

Once the IFB or RFP is created, it must be advertised to the public. There are several methods for doing this including the newspaper, bulletins, or school websites. However, the most efficient way to advertise in the state of Utah is through the Utah Division of Purchasing's e-procurement platform. This website allows SFAs to post IFBs and RFPs. Vendors that do business with Utah schools regularly check this website and respond to these solicitations. To allow vendors time to reply, SFAs should post their Solicitation for a minimum of two weeks. To learn more about State Purchasing services, visit the Utah purchasing website.

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