Purchasing Using Cooperative Agreements

Management Bulletin (MB) CNP-07-2018, Questions and Answers: Purchasing Goods and Services Using Cooperative Agreements, Agents, and Third-party Services provides guidance to Child Nutrition Program (CNP) Operators regarding the use of cooperative agreements, agents, and third-party services in accordance with federal procurement standards. Information in this MB pertains to the USDA Policy Memo SP-05 CACFP 03, SFSP 02-2017: Questions and Answers: Purchasing Goods and Services Using Cooperative Agreements, Agents, and Third-party Services, which is on the USDA Food and Nutrition Service Policy web page at https://fns-prod.azureedge.net/sites/default/files/cn/SP05_CACFP03_SFSP02-2017os.pdf [Note: The preceding link is no longer valid. Please visit https://www.fns.usda.gov/cn/qa-purchasing-goods-and-services-using-cooperative-agreements-agents-and-third-party-services].

Background

2 CFR, Section 200.318(e) allows CNP Operators to enter into intergovernmental or interagency agreements to offer greater economy and efficiency for procurement of common or shared goods or services. It is important that CNP Operators entering into these types of agreements still conduct competitive procurements in accordance with 2 CFR, Sections 200.317-200.327. Specifically, CNP Operators must ensure that each of the following requirements are met:

• Costs paid from the nonprofit school food service account are necessary, reasonable, and otherwise allowable per 2 CFR, Section 200.403, and the applicable cost principles in 2 CFR, Part 200, Subpart E.
• Procurement is conducted in a manner that provides full and open competition, and consistent with federal procurement standards in 2 CFR, Sections 200.317-200.327, in addition to applicable CNP regulations.

Failure to competitively procure goods and services is a violation of federal regulations and may result in delays, disputes, findings of noncompliance, and costs being disallowed.

Additional California-specific Guidance

In addition to the answers provided by the USDA in Policy Memo SP-05 CACFP 03, SFSP 02-2017, Questions and Answers: Purchasing Goods and Services Using Cooperative Agreements, Agents, and Third-party Services, California CNP Operators must ensure compliance with the following California PCC requirements:

• Per PCC Section 20111(c) (as amended by Senate Bill (SB) 544, effective January 1, 2018), procurement bid solicitations and awards made by a school district approved to operate at least one federal nonprofit CNP for purchases in support of those programs shall be consistent with the federal procurement standards in 2 CFR, Sections 200.317-200.327. These awards shall be let to the most responsive and responsible party, where price shall be the primary consideration, but not the only determining factor.

For more information on SB 544, please see MB CNP-01-2024: Federal Micropurchase & Small Purchase Thresholds at https://www.cde.ca.gov/ls/nu/sn/mbcnp012024.asp.

All contracts must be procured in an open and fair manner. Before entering into a cooperative agreement, CNP Operators should also obtain a copy of the Request for Proposal or Invitation for Bid and the executed contract to ensure it was awarded in accordance with all federal, state, and local laws and regulations and includes a provision for cooperative agreements.

Contact Information

If you have any questions regarding this subject, please contact your agency’s designated Procurement Resources Unit (PRU), or Summer Nutrition Programs and Grants Unit (SNPGU) Specialist listed below.

PRU

You can contact the PRU by email at NSDProcurementReview@cde.ca.gov to be directed to a PRU Specialist.

SNPGU

You can contact the SNPGU by email at sfsp@cde.ca.gov or ssfo@cde.ca.gov.