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Purchasing Using Cooperative Agreements, Agents and Third-Party Services

October 19, 2016



Procurement of goods and services can be tricky. The Food and Nutrition Service (FNS) have released a new memo with two general reminders outlining the types of procurement program operators are able to use as well as how to utilize each group in compliance with Federal regulations. This is an update on a 2012 publication (SP 35-2012, Procuring Services of Purchasing Cooperatives, Group Purchasing Organizations, Group Buying Organizations, etc.) The two reminders are below. Be sure to read the extensive Q&A for additional guidance.

1. "Costs paid from the nonprofit food service account are necessary, reasonable, allocable, and otherwise allowable per 2 CFR 200.403 and the applicable cost principles in 2 CFR 200, subpart E."

2. "Procurements are conducted in a manner maximizing full and open competition consistent with Federal procurement standards in 2 CFR 200.318-.326 and in applicable Program regulations. "

Why It Matters

As sponsors, we wish to uphold the highest of program integrity and standards for the children we serve. A large part of this effort revolves around our providers attaining proper procurement of goods and services. Ultimately, we must grow our programs with both greater economy and greater access in mind for all the children in need.

Check out Q&A: Purchasing Goods and Services Using Cooperative Agreements, Agents, and Third-Party Services (CACFP 03-2017) for more information.