Implement

Public Institutions: Enter Purchasing Commitments

After determining who will manage food operations and defining vendor eligibility requirements, the next step is to establish purchasing agreements with vendors. Purchasing commitments, when formed strategically, can drastically increase a public institution's values-based purchasing.
  • Public Institution
  • Self-Operated
Implement: 

Buying Directly from Values-Based Vendors: Single Purchase Orders

Single purchase orders are stand-alone purchases that allow an institution to buy values-based products without long-term commitments. They help values-based vendors by allowing them to get to know the institution while building capacity to take on longer-term agreements. Effective single purchase orders should:

  • Include Clear Terms: Clearly specify price, quantity, quality, and delivery requirements to ensure both parties agree on the terms of the sale.
  • Be Tailored to the Vendor’s Needs: Adjust delivery schedules or order details from standard purchase orders to ensure that the vendor can fulfill its commitment. Clear communication ensures the arrangement benefits both the vendor and the institution and sets the tone for future purchasing agreements.

Single purchase orders with values-based vendors will be most easily completed as “micro purchases,” meaning their value falls below the de minimis procurement threshold. At the federal level, this value is $10,000. [10] Public institutions that do not receive federal funding, or that are also subject to state or local laws, should confirm the applicable threshold and consult with legal and procurement staff to ensure compliance with all relevant requirements before issuing a single purchase order.

Note:

Single purchase orders are easiest to establish through informal procurement. However, if the size of the transaction and applicable law require formal solicitations, it is still possible to tailor the solicitation to ensure that the responsive bidders align with your institution’s values. See Values-Based Purchasing When a Formal Solicitation is Required for recommendations for formal solicitations for purchasing commitments. 

Footnotes

[10] 2 C.F.R. § 200.320(a); FAR § 2.101.