Aggregator
Intermediaries in the food supply chain that compile food from vendors and farms, and distribute it to buyers.
Agricultural Producer
Persons or entities, including farmers, ranchers, loggers, agricultural harvesters, and fishermen, that engage in the production or harvesting of an agricultural product.
Braided/Blended Funding
Interweaving of multiple funding streams toward a shared project or initiative.
Distributor
Intermediaries in the food supply chain that collect, package, and distribute food to buyers.
Food Hub
Local and regional food aggregators and distributors that often serve as a bridge for small-scale farmers and other vendors to sell into institutional markets. Food hubs can be for-profit or non-profit and may provide storage, processing, or marketing services to vendors.
Food Purchasing Guidelines
Standards and practices that govern and inform institution-wide procurement. Language written in food purchasing guidelines can be included in solicitations, contracts, and other food procurement documents.
Food Service Management Company (FSMC)
A commercial enterprise or non-profit organization that manages part or all of an institution's food service operations.
Forward Purchasing Commitment
A purchasing commitment that involves collaborative planning between a vendor and an institution, often with the institution agreeing to purchase products in advance of production cycles.
Group Purchasing Organization
A procurement network that aggregates institutional purchasing to negotiate discounts with vendors.
Invitation for Bids (IFB)
Also called "sealed bids," IFBs are a type of formal solicitation that requires an institution to select a bid based solely on cost.
Metrics
Data measured against a stated goal.
Micro-Purchase
Procurement purchases that are below the "micro-purchase threshold" allow institutions to select a vendor without a formal solicitation process. At the federal level, the micro-purchase threshold is currently $10,000. Individual states may have laws that impose a stricter micro-purchase threshold.
MOU (Memorandum of Understanding)
An agreement between parties that indicates a moral commitment and serious intentions, but is not legally binding.
Private Institution
An institution that does not receive government funding for their food procurement and is not otherwise affiliated with the local, state, or federal government.
Processor
An entity that transforms raw agricultural ingredients into refined, specialized, or preserved products.
Producers
“Producers” is used as an umbrella term to include farmers, growers, ranchers, product makers, and others contributing products in values-based procurement. This Toolkit uses the term “producer” to refer to entities whom an institution may purchase from directly or through an aggregator or distributor.