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School and Community Nutrition Procurement Methods & Options

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Informal Procurement (Micro & Small)

Informal procurement methods may be used when the value of the procurement transaction under the federal award does not exceed the simplified acquisition threshold ($200,000 or lower local threshold). The two types of informal procurement are the micro-purchase and the simplified acquisition (also known as a small purchase).

Importance of Forecasting

  • Sponsors should use the best procurement methods that support cost savings. To obtain the best price for products, forecasting is a great tool for sponsors to identify needs for the school year and help ensure they are using appropriate procurement methods. Sponsors should not break up purchases so that each purchase is below $10,000. 
  • Many sponsors will use the micro purchase method to purchase items, but over the school year, the total of those purchases with the same vendor for the same item exceeds the micro purchase threshold. In this case, improper forecasting was used, and small purchase procedures should be utilized. Ideally, if using small purchase procedures and a sponsor obtains quotes from multiple sources, pricing may be better than using the micro purchase method.  

Micro-Purchase

Sponsors may use the micro-purchase method when the value of procurement for goods or services does not exceed $10,000 (or lower local threshold). 

  • Aggregate dollar amount should not exceed the threshold of $10,000  
  • Distribute equitably among qualified suppliers, "spread the wealth" 
  • For one-off purchases
  • No price comparisons, but prices must be reasonable 
  • Forecast if making multiple purchases of the same item 
  • Maintain documentation 

Use the VDOE-SCNP Micro-Purchase Log Template to document purchases with a total aggregate cost of equal to or less than $10,000.

Small Purchase

The federal small purchase threshold is $350,000; however, Virginia’s small purchase threshold is $200,000. Sponsors must use the most restrictive threshold. The small purchase method can be used when the aggregate value of the purchase falls below $200,000 (or the lower local threshold).

  • Solicit, obtain 2-3 price quotes, evaluate before making a purchase 
  • Obtain quotes for the same product and product specification 
  • Can communicate via telephone, email, catalog, and website 
  • Purchase from the lowest price, responsive, and responsible vendor 
  • Keep documentation of the process 

Use the VDOE-SCNP Small Purchase Log Template to document all bids received as a result from a sponsor’s solicitation for products/services costing less than $200,000.

“3 Bids and a Buy”

With this method, sponsors draft their specification, identify, and contact at least two (best practice is three) qualified vendors to request quotes—also known as “3 bids and a buy.” Sponsors must document all the responses/quotes and compare them to decide the winner. Sponsors keep receipts and invoices from these purchases. Sponsors should use the small purchase log when documenting small purchases, which includes: 

  • the product or service description and requirements 
  • the suppliers contacted 
  • price quotes obtained 
  • the supplier awarded and date 
  • quantity purchased, and
  • the time period of the purchase order or contract, if multiple deliveries. 

Formal Procurement

Formal procurement is when the value of the purchase is greater than $200,000 (or lower local threshold). As part of the competitive bidding process, there must be a clear and accurate description of the requirements for the product or service the sponsor is seeking to procure in the solicitation. A cost/price analysis is required for every procurement action in excess of the Simplified Acquisition Threshold (Small Purchase Threshold), including contract modifications (2 CFR 200.324 (a)). Use the VDOE-SCNP Cost/Price Analysis Template to help determine which procurement method to use. The two primary forms of formal procurement are:

  • Invitation for Bid (IFB): determined solely on the lowest bid price
  • Request for Proposal (RFP): determined on more than price alone

In both processes, the award is presented to the responder with the best overall value and must be publicly advertised.

Required Contract Provisions

Vendors awarded contracts by sponsors are responsible for abiding by all applicable federal and state laws when providing goods or services. All contracts must contain certain federal provisions found in Appendix II to Part 200, Title 2. Not all provisions are applicable, as some are contingent on the amount of the award or the types of services. Sponsors are ultimately responsible for ensuring all required provisions and certifications are included in their contract(s). Sponsors may use the VDOE-SCNP Required Contract Provisions Checklist with Sample Language to support their compliance efforts.

Request for Proposal (RFP)

RFPs are used for flexible purchases and services, such as equipment maintenance/repair, software, sanitation/cleaning, and food service management company contracts, resulting in a fixed price or cost-reimbursable contract. RFPs are used when conditions are not appropriate for sealed bids. Components of RFPs:  

  • Solicitation includes evaluation criteria  
  • Publicly advertised  
  • Not publicly opened
  • Results in a firm, fixed-price contract or a cost reimbursable contract
  • Awarded to the responsible bidder whose proposal is most advantageous with price and other factors (price must be weighed the most) 

Use our Template! VDOE-SCNP RFP Template.

Invitation for Bid (IFB)

IFBs are used for purchases and services that are identifiable, such as food, equipment, and supplies, resulting in a firm, fixed-price contract. Components of IFBs: 

  • Technical specifications  
  • Publicly advertised  
  • Public bid opening  
  • Awarded to the responsible bidder whose bid is the lowest price  
  • Result in a firm, fixed-price contract

Use our Template! VDOE-SCNP IFB Template.

Piggybacking

Piggybacking is the non-competitive procurement provision that allows sponsors to use an existing contract to acquire the same commodities or services at the same or lower price from another public entity contract. If the piggybacking provision and the applicable language are not included in the contract and a material change is determined, a new competitive procurement is required. Review the VDOE-SCNP Piggybacking Guidance for information on:

  • the requirements for sponsors wanting to piggyback,
  • the requirements for sponsors originating the contract,
  • SFA-only cooperative contract, and
  • unallowable situations

What is the Difference between Piggybacking and using Third-Party Services?

Piggybacking is the process of a sponsor joining a contract already procured by another sponsor. No further procurement action is needed if the contract includes specific language that includes the sponsor as an eligible user. Third-party services (state contract, GBO/GPO/3rd Party Entity) provide pre-negotiated pricing that a sponsor may use as one pricing source in a sponsor’s procurement process. The primary difference is that piggybacking lets you adopt a finished procurement process while third-party services provide a single quote that must still be compared against other sources. The VDOE-SCNP Purchasing Goods and Services Using Cooperative Agreements and Third-Party Services Decision Tree is a helpful resource that goes into detail of the requirements for piggybacking and using a third-party contract.

Cooperative Purchasing

Cooperative purchasing occurs when sponsors work together to accomplish all or part of the steps in the purchasing process. In Virginia, the cooperative agreements (COOPs) are: 

  • Blue Ridge COOP 
  • Northern Neck COOP 
  • Roanoke Regional Nutrition Buying Group 
  • Shenandoah/Piedmont COOP 
  • Southern Appalachian Mountain COOP 
  • Southside COOP 
Purpose of COOPs

To use the collective buying power and knowledge base to obtain the highest quality products at the best price. Cooperative purchasing groups may or may not be beneficial to a sponsor.

The benefits may include considerable savings and improved quality of products purchased. However, sponsors may find that specific products are not available, or delivery timeframes may change, causing a possible hardship for the district. Sponsors should do a thorough assessment of the benefits and drawbacks to joining a COOP. 

Responsibility of COOP Members

COOPs and each member must follow federal, state, and local procurement regulations when procuring goods and services. A COOP comprised solely of program operators and/or the sponsor may procure as a group and must do so in compliance with the procurement standards that apply to the individual sponsor.   

Each COOP member must have copies of all required procurement documentation for review (cost price analysis, solicitation documents, advertisement, public notice, contacts, bidder responses, evaluation, executed contract, contract renewal/amendment, invoices, etc.)

Each COOP member is responsible for monitoring vendor performance to ensure compliance with all contract provisions. The VDOE-SCNP encourages COOPs to have written agreements specifying roles and responsibilities for its members. 

Sole Source

A sole source procurement is a type of noncompetitive procurement that occurs when a sponsor can only find one qualified vendor (2 CFR 200.320(c)). Sponsors must request VDOE-SCNP approval before utilizing sole source procurement.

What constitutes sole source?

Sponsors must use the VDOE-SCNP Sole Source Checklist to determine if the situation qualifies for sole source procurement. The checklist must be completed and submitted along with the Sole Source Request Form.

Local Procurement

Coming Soon!

For now, review the procurement resources on the VDOE-SCNP Virginia Farm to School webpage.

Preference for Virginia Goods and Virginia Residents

Guidance on the Code of Virginia § 2.2-4324 is coming soon!

Capital Expenditures (Equipment)

Pre-approval is required for any equipment not listed on the Virginia School and Community Nutrition Programs Approved Equipment List and has an acquisition cost that exceeds the federal per-unit capitalization threshold of $10,000 or more. Approval of a request does not supplant the requirement for documentation of the equipment procurement.  

How do Schools Submit a Request?

Review the Instructions for Completing the Capital Expenditure Request. The request is in SNPWeb.

How do Community Sponsors Submit a Request?

Submit the Equipment Purchase Pre-Approval Request Form to SNPPolicy@doe.virginia.gov.