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Senate Bill 544—State Small Purchase Threshold


Nutrition Services Division Management Bulletin

Purpose: Policy, Beneficial Information

To: Child Nutrition Program Operators

Attention: Food Service Directors, Business Officials, Superintendents, Administrators, Purchasing Agents, and Finance Directors

Number: CNP-01-2018

Date: January 2018

Reference: U.S. Department of Agriculture Policy Memoranda SP 01-2013; CACFP 01-2013; SFSP 01-2013

Supersedes: Management Bulletin USDA-CNP-09-2012 dated November 2012

Subject: Senate Bill 544 (McGuire)—State Small Purchase Threshold Amount


This management bulletin (MB) informs all Child Nutrition Program (CNP) operators of an amendment to the California Public Contract Code (PCC) Section 20111. On September 30, 2017, Governor Edmund G. Brown, Jr. signed into law Senate Bill 544 (McGuire), Contracting for Purchases for CNPs (Chapter 395, 2017 Statutes). You can view this bill on the California Legislative Bill Web page at http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180SB544 External link opens in new window or tab..

Effective January 1, 2018, PCC Section 20111, is amended to permit public school districts (PSD) and county offices of education (COE) to follow the federal small purchase threshold of $150,000, unless their local small purchase threshold is more restrictive. Please note that the amendment of PCC Section 20111 only affects purchases made by CNP operators using federal CNP funds. Local agencies may set a lower threshold than the federal small purchase threshold mandated in Title 2, Code of Federal Regulations (2 CFR), Section 200.320; therefore, CNP operators should check with their legal counsel to ensure they are following the correct threshold amount.

Note: PCC Section 20111 is not applicable to other agencies (e.g. charter schools, private camps, emergency shelters, child care centers, residential child care institutions, etc.). These agencies are required to adhere to the procurement standards in 2 CFR, Part 200.

Awarding a Request for Proposal (Effective January 1, 2018)

Prior to SB 544, PSDs and COEs were required to award the contract to the lowest bidder. As of January 1, 2018, all PSDs and COEs, when using the Request for Proposal (RFP) method for federal CNP purchases, can award contracts to the most responsible and responsive vendor whose proposal is most advantageous to the program with price and other factors considered.

Below is an example of an evaluation method for awarding an RFP where price is the primary factor prior to SB 544 becoming effective.

Evaluation Criteria Vendor 1 Vendor 2 Vendor 3

Geographic Preference

5

0

10

Delivery Specifications

0

10

15

Total Points

5

10

25

Price

$3.05

$2.50

$2.85

In the example shown above, the CNP operator stated in the RFP that only vendors who scored ten points or more would be considered for the award. Both Vendors 2 and 3 scored high enough to be considered for the award. Prior to SB 544, the CNP operator in this example must award the contract to the lowest bidder, which is Vendor 2, even though Vendor 3 scored higher in the evaluation criteria.

Effective January 1, 2018, the CNP operator can award the contract to the most responsible and responsive bidder where price is the primary consideration, but not the only consideration.

Below is the same example, but price is now one of the scored evaluation criteria.

Evaluation Criteria Vendor 1 Vendor 2 Vendor 3

Geographic Preference

5

0

10

Delivery Specifications

0

10

15

Price

5

25

15

Total Points  

10

35

40

Price

$3.05

$2.50

$2.85

As a result of the passage of SB 544, Vendor 3 would be awarded the contract because they are the most responsible and responsive bidder with the highest score.

Contact Information
If you have any questions regarding this MB, please contact the appropriate Nutrition Services Division staff member for your agency as indicated below.
  • Procurement Resources Unit

You may contact Debbie Reeves, Procurement Resources Unit (PRU) Office Technician (OT), by phone at 916-319-0636, or by e-mail at SFSContracts@cde.ca.gov to be directed to a PRU Specialist.

  • School Nutrition Programs

You can find contact information for the School Nutrition Programs (SNP) Specialists in the Download Forms section of the Child Nutrition Information and Payment System (CNIPS). You may also contact Kaley Wassall, SNP OT, by phone at 916-322-1450, or by e-mail at kwassall@cde.ca.gov.

  • Child and Adult Care Food Program
You can find contact information for the Child and Adult Care Food Program (CACFP) Specialists in the Download Forms section of the CNIPS. You may also contact Nancy Charpentier, CACFP OT, by phone at 916-327-2991, or by e-mail at ncharpentier@cde.ca.gov.

  • Summer Meals Unit

You can find contact information in the Download Forms section of the CNIPS for a list of Summer Meals Unit (SMU) Specialists. You may also contact Larry Frakes, SMU OT, by phone at 916-322-8323, or by e-mail at lfrakes@cde.ca.gov.
Questions:   Nutrition Services Division | 800-952-5609
Last Reviewed: Thursday, February 8, 2018
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