Arkansas Department of Education NEW Requirement - Procurement Review of Child Nutrition Programs

Memo Information

Memo Number
CNU-17-009
Memo Date
8/11/2016
Memo Type
Regulatory
Section
Child Nutrition
Regulatory Authority
7 CFR 210.21, 220.16; 2 CFR 200.318-.326; SP 45-2016; SP 04-2016
Response Required
NO
Attention
Federal Programs; Superintendents; General Business Manager

Contact Information

Memo Text

The procurement of goods and services is a significant responsibility of a school food authority (SFA).  Obtaining the most economical purchase should be considered in all purchases when using Federal funds.  Federal, state and local laws and regulations specify the procurement methods, terms and conditions SFAs must follow to competitively procure goods and services, award contracts, and oversee contractor performance, (2 CFR 200.318(b)).  State agencies must ensure compliance with procurement requirements in Program regulations (7 CFR Parts 210.21, 215.14a, 220.16, 225.17, and 226.22, as applicable), and the government-wide regulations in 2 CFR 200.318-.326.

 

To this end, United States Department of Agriculture (USDA) now requires state agencies, such as the Arkansas Department of Education, Child Nutrition Unit (ADE/CNU) to complete a Procurement Compliance Review for child nutrition related procurements.  The assessment of procurement compliance will be completed using the Local Agency Procurement Review Tool developed by USDA.  The Tool contains questions and references to regulation and guidance.  It also provides resources to:

1) evaluate SFA procurement procedures,

2) assess compliance,

3) capture technical assistance provided, and

4) establish findings and required corrective actions, as needed.

                  

SCHEDULE AND FREQUENCY OF PROCUREMENT REVIEWS

The Procurement Review will be completed on the same 3 year cycle and at the same time as the Administrative Review of the Child Nutrition Programs, or more frequently as necessary to ensure program compliance.  Although done on the same cycle and at the same time as the Administrative Review, the procurement review is separate from the Administrative Review and as such, school food authorities (SFAs) will receive a separate notification letter, and develop a separate corrective action plan for the procurement review.

 

ADDITIONAL RESOURCE QUESTIONS FOR ASSESSING COMPLIANCE

USDA developed questions to assist in the assessment of compliance of program operators procurement activities.  Those question are included in USDA Policy Memo SP 04-2016 which is attached to this memo.

 

DOCUMENTATION NECESSARY TO COMPLETE THE PROCUREMENT REVIEW

Copies of the following documentation related to all purchases from the non-profit food service account (8000 codes) must be provided in order to complete the Procurement Review:

  •  Vendor paid list / summary report of expenditures by vendor
  •  Supporting procurement documentation (solicitations, evaluation, and contracts) for each vendor selected for review (2 CFR 200.318(i))
  •  Amendments to contracts
  •  Procurement procedures/SFA Procurement Plan (2 CFR 200.318(a) and 7 CFR 210.21(c))
  •  Contractor oversight (2 CFR 200.318(b))
  •  Code of conduct (2 CFR 200.318(c) and 7 CFR 210.21(c))
  •  Intergovernmental or inter-entity agreements, if applicable (2 CFR 200.318(e))
  •  Settlement and satisfaction of contractual and administrative issues arising out of procurements (protests, disputes, etc.)

This list may not be all-inclusive.

 

FINDINGS OF NONCOMPLIANCE

If findings of noncompliance with procurement standards are identified, the findings must be documented, technical assistance provided, and corrective action taken.  Should the nonprofit food service account need to be made whole and / or contracts be re-solicited, such will be assessed on a case-by-case basis with assistance from the USDA Southwest Regional Office (SWRO).

 

ATTACHMENTS:

SP 45-2016 - Draft Tool for Local Agency Procurement Reviews for School Food Authorities in SY 2016-17, June 30, 2016

 

SP 04-2016 – Local Agency Procurement Reviews:  School Year 2015-2016, November 9, 2015