Sneak Preview: Food Emergency Noncompetitive Purchases Allowed

(The following was excerpted from a recent Thompson Grants 360 article.) In light of supply chain issues facing state and local schools nationwide caused by the COVID-19 pandemic, the U.S. Department of Agriculture Food and Nutrition Service (FNS) is allowing school food authorities (SFAs) participating in child nutrition programs to conduct noncompetitive food procurements in emergency circumstances.

In a recent question-and-answer (Q&A) document, FNS explained that some SFAs are facing “severe food product shortages, unexpected substitution of food products, the unanticipated cancellation of food and supply contracts, and increased food and supply prices,” all caused by supply chain disruptions. SFAs must follow uniform guidance procurement regulations (§§200.318-.327), as well as FNS procurement regulations at 7 C.F.R. Parts 210, 226 and 250. The Q&A aimed to provide clarification for SFAs using a noncompetitive procurement method (§200.320(c)) to address challenges in meeting their food obligations.

The Q&A explains that SFAs experiencing supply chain disruptions may use the noncompetitive procurement method when a “public exigency or emergency” prevents an SFA from undertaking a competitive procurement. “Circumstances, such as the unanticipated cancellation of food and supply contracts, have the effect of creating an emergency for an SFA participating in the child nutrition programs,” it added. SFAs generally may use emergency procurement when making purchases for any child nutrition program, including the Child and Adult Care Food Program at-risk supper program.

SFAs will not be required to request a waiver or receive state agency approval to use the emergency noncompetitive procurement method, and may use this method as long as the supply chain disruption occurs. SFAs experiencing an unanticipated food order cancellation may go to a local grocery to purchase food as often as needed until their next food order arrives. SFAs also may opt for an emergency one-year sole source procurement process to ensure they have food for the entire school year.

Although such noncompetitive procurements do not require full and open competition or FNS prior approval, FSAs, per provisions at §200.318(i), should document their justification for using noncompetitive procurement, comply with other procurement requirements, and ensure that costs are necessary, reasonable and allocable.

(The full version of this story has now been made available to all for a limited time here.)

Join us for our following Thompson Grants events:
Thompson Grants Workshop: Preparing for the Annual Audit | November 18, 2021 | Virtual Event
Federal Grants Forum: Orlando | December 14 - 16, 2021