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: 

Purchasing from a Traditional Distributor: Hiring a New Distributor

When looking for a new distributor to meet its food supply needs, an institution most often issues a formal solicitation. A formal solicitation is usually required for public institutions because these contracts tend to be large enough to exceed the formal procurement threshold (the federal threshold is $250,000).[1]

Whatever the reason an institution is issuing a solicitation, there are ways to tailor solicitation language to ensure that the selected distributor supports the institution’s values-based goals and can adopt (or has already adopted) practices that meet the institution’s specifications. Public institutions will need to be careful to ensure that the solicitation is not narrowed so far that it destroys open competition.[2]

Model Recommendations: Hiring a New Distributor

This Toolkit does not provide a full solicitation template, but instead highlights several ways to tailor specifications and technical requirements to advance an institution’s values-based procurement goals. Note that this solicitation model language can be incorporated into a request for proposals (RFP), an invitation for bids, or a small purchase solicitation. For RFPs, public institutions will need to include clear evaluation criteria and detail how the contract will be awarded.[3] The example specifications below can also be used as a baseline to draft RFP evaluation criteria.

A solicitation for a new distributor that will help set up the institution for success in values-based procurement should accomplish the following:[4]

  1. Identify Applicable Procurement Laws
  2. Signal Institutional Commitment to Values-Based Procurement
  3. State Values-Based Specifications for Distributors
  4. Ensure Off-Contract Purchasing is Allowed

The following recommendations focus on each of these directives and provide model language and alternatives for incorporating values-based procurement into a solicitation.

Identify Applicable Procurement Laws

A public institution’s solicitations for distributors must comply with applicable procurement laws. The values-based procurement team or personnel at the institution should consult closely with the institution’s legal and procurement teams to determine the specific laws and procedures governing its solicitation process. Refer to this Toolkit’s overview of the legal procurement framework for public institutions for more details about key considerations and parameters in solicitation processes. 

Signal Institutional Commitment to Values-Based Procurement

At the beginning of a solicitation, an institution often includes a program description that sets forth its history and procurement needs. This description can also be used to inform potential distributors about the institution’s values-based food procurement goals and the steps taken to implement them, such as staff training or infrastructure upgrades.

How an institution presents itself and its food operations signals to potential distributors what it prioritizes and can underscore the importance of values-based purchasing. The program description included in solicitations for a distributor may mirror language included in an RFP for a food service management company.

Model Recommendation

[Institution] is committed to values-based purchasing. Through its food purchasing, [Institution] seeks to align public dollars with core values, including [insert values/goals].

Examples of values/goals include but are not limited to:

  • Community/public health
  • Equity
  • Local economy and investment
  • Resilience
  • Sustainability
  • Fair labor/valued workforce
  • Health and nutrition

Alternative: Other Ways to Signal Values-Based Procurement Commitment

Instead of highlighting the institution’s commitment to values-based procurement in the solicitation program description, the institution may wish to communicate that commitment in other ways. Regardless of the method used, institutions must make their values-based procurement commitments clear to potential bidders to secure quality bids from vendors.

An institution may consider including:

  • references to relevant laws, policies, or positions related to its food purchasing;
  • a statement of values;
  • a history of the institution’s food purchasing program and commitments; or
  • a statement of goals and objectives for values-based procurement.

These alternatives will best serve institutions with:

  • specific goals or institutional mandates related to values-based procurement; or
  • a long-running commitment to values-based procurement—either across the institution or within particular departments.

To use these alternatives effectively, it is important to understand what is feasible and sensible for the institution. If the institution is new to values-based purchasing or setting specific purchasing goals, it should start with the model recommendation and then evaluate alternatives as the institution’s values-based purchasing program grows.

Options for Signaling Commitment to Values-Based Procurement:

[Institution] is committed to values-based procurement and has been since [year values-based procurement was first adopted]. Since then, it has:

  • Purchased [X percent; X pounds] of product from vendors engaging in [particular values-based behavior].
  • Spent [X amount of money] purchasing from vendors engaging in [particular values-based behavior].
    • [List accomplishments for each relevant values-based behavior]

[Institution] is committed to procurement in accordance with [insert federal/state/local laws, policies, or positions related to values-based procurement].

Examples of laws, policies, or positions include:

  • Applicable procurement law
  • Local preference
  • Farm to School programs
  • Health & Nutrition Plan;
  • Sustainability Plan;
  • Climate Action Plan;
  • [Institution] is a member of [insert values-based purchasing coalition, group, or pledge], which [insert goals]. [Institution] seeks to further these goals in its food procurement.

Real World Examples: Institutions Signaling Institutional Commitment

Solicitation Templates from The Lunch Box Incorporate Institutional Values-Based Commitment

The Lunch Box – CAF Solicitation Templates, Chef Ann Foundation:
“The [Institution] participates in [ADD PROGRAMS HERE LIKE CHEF ANN FOUNDATION’S HSFP, GOOD FOOD PURCHASING, EAT REAL, ETC]. As such we expect our procurements, to the extent practical and in compliance with federal and state procurement regulations, to advance a set of values that goes beyond just the lowest priced food item but provides our students with foods that support environmental sustainability, promotes worker well-being, advances climate reliance, reduces food waste, and/or supports animal welfare. Examples of those items are locally grown, organic, regenerative certified and/or animal welfare certified.”

  • Hospital
  • K-12 School
  • Public Institution
  • Purchasing Commitment
  • Self-Operated

State Values-Based Specifications for Distributors

All solicitations must clearly outline specifications[5] that determine whether a prospective distributor is responsive and responsible. These should include any eligibility requirements, such as liability insurance and food safety assurances, as well as product standards for quantity, quality, and delivery, to ensure the product delivered is usable by the institution.

An institution may also include values-based specifications based on its food purchasing guidelines, which can be used to narrow prospective bidders to only distributors willing and able to further the institution’s purchasing goals. These specifications can cover various topics, so the institution should focus on the ones that are most relevant to its specific values.

When drafting specifications, institutions should ensure requirements are strong enough to meet their needs without being so restrictive that they exclude qualified values-based distributors. For example, certain certifications might demonstrate a vendor’s commitment toward a specific value, but certifications can be costly and time-consuming to obtain, so some vendors that might otherwise qualify do not have the certificate because the process is too burdensome. [6]

Model Recommendation

[Institution] seeks a distributor who can satisfy the following specifications:

  • [Insert one or more values-based specifications]
  • [Insert relevant vendor eligibility requirements]

                            Options for Values-Based Specifications

Specifications related to local economic investment
  • Distributor must supply food that is locally grown (include institution’s definition of “local”).
  • Distributor must supply food that is delivered within [insert number of hours] hours of harvest to ensure freshness.
Specifications related to supplier size and farming practices
  • Distributor must supply food that is grown on farms or produced by suppliers that have annual revenues below [X] dollars.
  • Distributor must supply food that is hand-packed or hand-picked.
  • Distributor must supply food that is grown on farms that grow more than [X] food crops at a time.
Specifications related to values-based certifications
  • Distributor’s food is sourced from suppliers with diversity certifications.
  • Distributor’s food is sourced from suppliers with humane certifications.
  • Distributor’s food is sourced from suppliers with organic, pesticide free, grass-fed, or cage free certifications.
  • Distributor’s food is sourced from suppliers with [insert other certification].
Specifications related to data tracking and reporting
  • Distributor must supply food that includes labels indicating farm name, state, zip code, or region where food was grown or produced.
  • Distributor will track where food is grown, packed, and processed and provide this data to [Institution] each [month, quarter, year, etc.].
Specifications related to vendor relationship expectations
  • Distributor will work with new values-based vendors and assist with onboarding to increase its values-based offerings.
Specifications related to seasonal sourcing of product
  • Distributor will work with the institution to supply in-season produce whenever possible.

Keep In Mind:

These specifications are organized here by topic. An institution will likely not need every specification under each topic, nor is it necessary to include a specification under each topic. An institution should select and modify the specifications that best meet its needs and goals.

Alternative: Make Specifications Preferential

Instead of making certain specifications mandatory requirements, an institution may want to make them preferential, incorporate a combination of mandatory and preferential specifications, or require that certain specifications be met only some of the time. The specifications in the model recommendation can easily be modified to indicate preferences instead of imposing mandatory requirements.

Options for Making Specifications Preferential:

[Institution] prefers food that meets the following specifications:

  • [Insert preferential specifications].
  • Example: [Institution] prefers food to be locally grown.

Options for Including Mandatory and Preference Level Specifications:

  • Distributor must supply product that meets [insert mandatory specification]. [Institution] prefers food that meets [insert preferential specification].
  • Example: Distributor must include reporting on product state of origin. [Institution] also prefers reporting on farm identification or farm location.

Options for Setting Minimum Requirements for Specifications:

Distributor must supply product that meets [insert mandatory specification] for [insert minimum quantity].

  • Examples of product quantity measurements include:
    • Percentage of product that satisfies specification
    • Specific number of menu items per week/month/other time period that satisfies specification

Real-World Examples of Institutions Stating Values-Based Specifications for Distributors

San Diego Lists Values-Based Specifications

San Diego Unified School District (SDUSD) Specifications Include:

  • Vendor staff should be available for consultation to district staff about seasonal sourcing strategies and menu planning ideas that may deliver the best value to the school district for a minimum of 2 hours per month;
  • Products be grown on farms that grow no less than five crops per 500 acres;
  • Products be delivered within 24-48 hours of harvest; and,
  • Products be delivered directly to multiple SDUSD school sites (not a central warehouse).
  • K-12 School
  • Public Institution
  • Purchasing Commitment
  • Self-Operated

Minneapolis Public Schools RFP Includes Values-Based Specifications

“Traceability. Each case of product delivered must be labeled with the farm name, product, date harvested, and date packed. The District reserves the right to request documentation that verifies the traceability information provided on each case, and the farmer must provide documentation within 24 hours of the request.

Education and Engagement. The District values direct connections between farmers and our students. Participants in the District’s Farm to School program are encouraged (but not required) to visit schools and talk with students and school staff about growing food for school meals. As feasible, the district hopes to coordinate staff and student visits to farms. The District understands the busy nature of farm life, so education opportunities may be tailored to the interest level and capacity of each farmer.”

  • K-12 School
  • Public Institution
  • Purchasing Commitment
  • Self-Operated

Ensure Off-Contract Purchasing is Allowed

Even when a distributor offers values-based products, some qualified vendors may not appear on its approved supplier list. Public institutions should therefore seek to reserve the right to purchase “off-contract” directly from other vendors.

To preserve this option, the final distributor contract should include an “off-contract” provision. This ensures that the institution is not limited by the distributor’s supplier list and may purchase from other vendors if necessary. [7] Including this as a specification in the solicitation sets clear expectations for prospective vendors.

Model Recommendation

To further [Institution’s Food Purchasing Guidelines], [Institution] expressly reserves the right to purchase food directly from suppliers not otherwise contractually approved to supply food to [Distributor].

Alternative: Denote Specific Instances for Off-Contract Purchases

Instead, an institution may want to limit off-contract purchasing to specific instances, such as when the distributor cannot deliver. This could make the solicitation more appealing to more vendors, but it also could limit the institution’s ability to buy from values-based vendors.

As another option, the solicitation provision could clearly indicate that off-contract purchasing is permitted at the institution’s sole discretion. This option offers the most flexibility for institutions.

Options for Denoting Specific Instances for Off-Contract Purchasing:

  • If the bidder cannot provide sufficient product in line with [Institution’s Food Purchasing Guidelines], [Institution] reserves the right to buy such product from other available vendors.
  • [Institution] may determine that it is in its best interest to purchase food items directly from farmers or other vendors. In such circumstances, [Institution] reserves the right to buy such product from those sources.

Real-World Examples of Ensuring Off-Contract Purchasing

Solicitation Templates from The Lunch Box Incorporate Institutional Values-Based Commitment

The Lunch Box – CAF Solicitation Templates, Chef Ann Foundation:
“The [Institution] participates in [ADD PROGRAMS HERE LIKE CHEF ANN FOUNDATION’S HSFP, GOOD FOOD PURCHASING, EAT REAL, ETC]. As such we expect our procurements, to the extent practical and in compliance with federal and state procurement regulations, to advance a set of values that goes beyond just the lowest priced food item but provides our students with foods that support environmental sustainability, promotes worker well-being, advances climate reliance, reduces food waste, and/or supports animal welfare. Examples of those items are locally grown, organic, regenerative certified and/or animal welfare certified.”

  • Hospital
  • K-12 School
  • Public Institution
  • Purchasing Commitment
  • Self-Operated

Shelby County Solicitation Reserves the Right to Purchase Off-Contract

“Shelby County Board of Education occasionally purchases large quantities of specific items and expressly reserves the right to purchase these and other similar items via other competitive methods if deemed in the best interest of SCBE.”

  • Contract
  • K-12 School
  • Public Institution
  • Purchasing Commitment
  • Self-Operated

Cupertino School District Reserves the Right to Purchase Directly from Farmers

“During the term of this contract, it may be determined that it is in the best interest of the District and California farmers to purchase seasonal, local produce, directly from the farmer or from a secondary vendor, within compliance of State and Federal regulations.”

  • Contract
  • K-12 School
  • Public Institution
  • Purchasing Commitment
  • Self-Operated

Footnotes

[1] 2 C.F.R. § 200.320(a); 48 C.F.R. § 2.101 “Simplified acquisition threshold.” See Prepare: Learn Institutional Food Procurement Basics for more on procurement thresholds under federal, state, and local law.

[2] See Procuring Local Foods for Child Nutrition Programs, USDA at 34 (2022), https://fns-prod.azureedge.us/sites/default/files/resource-files/June22F2SProcurementGuide508.pdf.

[3] Note that evaluation criteria are used by institutions to evaluate bids, while solicitation specifications and technical requirements are used to determine whether a potential bidder is responsive and responsible. If a bidder fails to meet an evaluation criterion, it will receive a lower score; however, if a bidder fails to meet a specification or technical requirement, the bidder is not responsive and responsible and cannot be awarded the contract. See Christina Conell, Maggie Gosselin & Deborah Kane, Procuring Local Foods for Child Nutrition Programs, U.S. Department of Agriculture at 53 (2022), https://fns-prod.azureedge.us/sites/default/files/resource-files/June22F2SProcurementGuide508.pdf.

[4] Note that the model recommendations in this section are very similar to the model recommendations provided for institutions searching for a new food service management company. This is the case because an institution wanting to expand its values-based purchasing will want to convey similar information and establish similar expectations for both its management company and its broadline food distributor. See Implement: Private Institution Request for Proposals for Food Service Management Company; Implement: Public Institution Request for Proposals for Food Service Management Company to review this Toolkit’s recommendations for RFPs for food service management companies.

[5] This Toolkit uses the term “specifications” to refer to both product standards and vendor eligibility requirements that are sometimes called “technical requirements.”

[6] See The Common Market, Advancing School Food Procurement: Driving Values-Based Purchases through Competitive Solicitations at 70 (2022), https://storage.googleapis.com/lunchbox-prod-v1/downloads/Advancing-School-Food-Procurement-Driving-Values-Based-Purchasing-through-Competitive-Solicitations.pdf.

[7] Christina Conell, Maggie Gosselin & Deborah Kane, Procuring Local Foods for Child Nutrition Programs, U.S. Department of Agriculture (2022), https://fns-prod.azureedge.us/sites/default/files/resource-files/June22F2SProcurementGuide508.pdf.