CA PCC sections 20110-20118Guidance on changes to California Public Contract Code sections 20110-20118.
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
Date: November 2018
Reference: California Public Contract Code sections 20110–20118
Supersedes: Management Bulletin CNP-01-2018 dated January 2018
Subject: California Public Contract Code sections 20110–20118 Guidance
This Management Bulletin (MB) clarifies guidance regarding California Public Contract Code (PCC) sections 20110–20118.
Effective January 1, 2018, PCC Section 20111 was amended to permit public school districts operating Child Nutrition Programs (CNP) to follow the federal procurement standards in Title 2, Code of Federal Regulations (2 CFR), sections 200.318–326. This amendment affects the requirements for advertising, contract award, small purchase thresholds, and purchasing through cooperative agreements, agents, and third-party services.
Previously, PCC Section 20111 required public school districts (PSD) to publicly advertise once a week for two weeks when soliciting for goods and services using the formal procurement method. The amendment removed the specified time requirement because federal regulations only require that PSDs solicit from an adequate number of qualified sources and provide sufficient response time prior to bid opening for Invitation for Bids (2 CFR, Section 200.320[c][i]). Request for Proposals (RFP) must be publicly advertised and identify all evaluation factors and their relative importance (2 CFR, Section 200.320[d]).
PCC Section 20111 now also permits PSDs, when using the RFP method for formal purchases, to award a contract to the most responsible and responsive vendor. Price remains the primary consideration, but not the only determining factor.
The amendment also permits PSDs to follow the federal small purchase threshold when purchasing goods and services for the CNPs, unless their local small purchase threshold is more restrictive. PSDs were previously required to follow the state small purchase threshold, set annually by the State Superintendent of Public Instruction. The current federal small purchase threshold, effective August 1, 2018, is $250,000.
Lastly, the piggybacking provision expressed in PCC Section 20118 is no longer effective for purchases made with CNP funds. Instead, all purchases using the piggybacking methodology must conform to the federal guidance located in the U.S. Department of Agriculture Policy Memorandum SP 05-2017, Q&A: Purchasing Goods and Services Using Cooperative Agreements, Agents, and Third-Party Services (PDF).
Purchasing through cooperative agreements, agents, and third-party services is allowable but must be competitively procured in accordance with 2 CFR, sections 200.318–326, and applicable program regulations and guidance.
Please note that other agencies operating CNPs (e.g., county offices of education, charter schools, residential child care institutions, emergency shelters, etc.) are already required to adhere to the federal procurement standards in 2 CFR, Part 200.
If you have questions on this subject, please contact the Procurement Resources Unit by email at SFSContracts@cde.ca.gov.