Piggyback Contracts Key Steps

Thank you to those who participated in the recent Cooperative Agreements or Piggyback Contracts survey. As part of our effort to help support your understanding of piggyback contracts, we are providing an overview of the key steps to follow when using them.

Key Steps When Using Piggyback Contracts

Whether you are the lead School Food Authority (SFA) originating the contract, or an SFA looking to piggyback onto an existing contract, it is important to follow all procurement regulations. Piggybacking can be a helpful way to simplify the procurement process, save time, and make use of contracts that already offer competitive pricing. It is important when an SFA is considering the piggybacking option to take the necessary steps to verify that the contract is used correctly and in compliance with all federal, state, and local procurement regulations.

For SFAs Originating the Contract:

1. Conduct the bid process in compliance with federal, state, and local procurement regulations. This includes proper advertising, allowing fair competition, and using clear evaluation criteria.
2. Include a piggyback clause in both the solicitation and the contract. If other SFAs will be allowed to use your contract, this must be clearly written into both documents. When drafting the clause, consider including specific limitations, such as:
   • The maximum dollar amount that can be spent under the contract
   • The number of SFAs that may be allowed to join
   • Whether other SFAs must get your permission before joining
3. Keep all procurement records to document how the contract was awarded and to support any future reviews, including the following:
   • The original bid or solicitation
   • Evaluation criteria and scoring sheets
   • The executed contract and any amendments
4. Properly manage the contract in accordance with federal, state, and local procurement regulations for the duration of the agreement. Once the contract is in place, make sure that vendor(s) are delivering as promised and that any changes to the contract are documented and follow all applicable regulations.

For SFAs Wanting to Piggyback onto a Contract:

1. Review the original solicitation and contract carefully. Before using another SFAs contract, look through the original solicitation and contract to make sure the piggyback clause is included. If the clause is missing, you cannot join the contract. Contact the lead SFA to obtain the documents.
2. Make sure your SFA is allowed to join the contract. Confirm whether there are specific limitations (e.g., dollar amount or the number of additional SFAs that may be added). Also, make sure that joining the contract will not create a material change.
3. Confirm the contract was properly procured. Review the original contract to make sure it followed all required federal, state, and local procurement regulations. Keep documentation on file.
4. Conduct periodic reviews of the contract. Check-in on the original contract for any changes or amendments.
5. Monitor the vendor’s performance. Make sure the vendor is delivering what was agreed upon and that invoices, pricing, and service match the contract terms.

Contact Information

If you have any questions regarding this subject, please contact the Procurement Resources Unit at NSDProcurementreview@cde.ca.gov.