Purchasing Goods and Services Using Cooperative Agreements, Agents, and Third-Party Services

Summary

In October 2016, the U.S. Department of Agriculture (USDA) issued Policy Memo SP-05-2017, CACFP-03-2017, SFSP-02-2017 titled Questions and Answers: Purchasing Goods and Services Using Cooperative Agreements, Agents, and Third-party Services, which provides guidance to Child Nutrition Program (CNP) Operators regarding the use of cooperative agreements, agents, and third-party services in accordance with federal procurement standards.

Background

Title 2, Code of Federal Regulations (2 CFR), Section 200.318(e), allows CNP Operators to enter into intergovernmental or interagency agreements to offer greater economy and efficiency for procurement of common or shared goods or services. It is important that CNP Operators entering into these types of agreements still conduct competitive procurements in accordance with 2 CFR, sections 200.318–326. Specifically, CNP Operators must ensure that each of the following requirements are met:

• Costs paid from the nonprofit school food service account are necessary, reasonable, and otherwise allowable per 2 CFR, Section 200.403, and the applicable cost principles in 2 CFR, Part 200, Subpart E.
• Procurement is conducted in a manner maximizing full and open competition, and consistent with federal procurement standards in 2 CFR, sections 200.318–326, in addition to applicable CNP regulations.

Failure to competitively procure goods and services is a violation of federal regulations and may result in delays, disputes, findings of noncompliance, and costs being disallowed.

Additional California Specific Guidance

In addition to the answers provided by the USDA in Policy Memo SP 05-2017, CACFP 03-2017, SFSP 02-2017, Questions and Answers: Purchasing Goods and Services Using Cooperative Agreements, Agents, and Third-party Services, California CNP Operators must ensure compliance with the following California Public Contract Code (PCC) requirements.

• Per PCC Section 20111 (as amended by Senate Bill 544, effective January 1, 2018), procurement bid solicitations and awards made by a school district approved to operate at least one federal nonprofit CNP for purchases in support of those programs shall be consistent with the federal procurement standards in 2 CFR, sections 200.318–326. These awards shall be let to the most responsive and responsible party, where price is the primary consideration, but not the only determining factor.

For more information on Senate Bill 544, please see MB CNP-01-2018: Senate Bill 544 (McGuire)—State Small Purchase Threshold Amount.

All contracts must be procured in an open and fair manner. Before entering into a cooperative agreement, CNP Operators should also obtain a copy of the Request for Proposal or Invitation for Bid and the executed contract to ensure it was awarded in accordance with all federal, state, and local laws and regulations and includes a provision for cooperative agreements.

This institution is an equal opportunity provider.
Esta institución es un proveedor que ofrece igualdad de oportunidades.