This memorandum provides general guidance on the various procurement groups FNS has identified, how to use each group in a way that complies with federal procurement standards, and supersedes SP 35-2012, Procuring Services of Purchasing Cooperatives, Group Purchasing Organizations, Group Buying Organizations, etc., dated June 12, 2012.
Under previous interpretation of 2 CFR 200.325, FNS communicated that “subcontracts exceeding the Simplified Acquisition Threshold” not only applied to subcontracts related to construction or facility improvement contracts, but also applied to food service management companies as the contracts they have with school food authorities were considered to be subcontracts and, therefore, fell under the scope of the bonding requirements in 2 CFR 200.325
The purpose of this memorandum is to update the definition of what is considered “unprocessed” for the purposes of applying the optional geographic preference for procurement in the child nutrition programs.
Please be aware that the procurement questions from July 22, 2009 have been revised. This new set of procurement questions supersedes the previous set, as a change has been made to the second Q&A under “Local Purchasing."
This memorandum updates and revises memoranda SP30-2008: Applying Geographic Preferences in Procurements for the Child Nutrition Programs, SP08-2009: Procurement Questions, and SP28-2009: Procurement Questions, regarding school food authorities’ and other institutions’ application of a geographic preference in procurements for the child nutrition programs.
Today’s unpredictable economy has made it important to consider accounting for the fluctuating costs of goods and services that are beyond the control of either the school food authority or the vendor.
Recently, we have received numerous concerns regarding the improper application of the new procurement rule, Procurement Requirements for the National School Lunch, School Breakfast and Special Milk Program, which was published in the Federal Register on Oct. 31, 2007 and became effective on Nov. 30, 2007.