The purpose of this memorandum is to amend guidance provided in SP 45-2016 Draft Tool for Local Agency Procurement Reviews for School Food Authorities in SY 2016-17 and to clarify FNS expectations for state agency oversight of school food authority procurement procedures.
This memorandum replaces SP 24-2016, Compliance with and Enforcement of the Buy American Provision in the National School Lunch Program. It provides several updates, including suggested contract language to be utilized in solicitations, and serves to reinforce the importance of the Buy American provision to our economy and its positive effects on small and local businesses.
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