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Local Procurement

Overview

image of a Delivery Truck

Purchasing local goods and services supports surrounding communities and economies, helps the environment, and creates a more resilient supply chain. The definition of “local” is defined by each School Food Authority (SFA). There is no federal definition. The SFA’s definition of local may change seasonally, or with the type of product, service, or special event. Local can be defined by a certain number of miles from the SFA, within the county, the state, or adjacent state(s), etc. Below are resources for procuring locally.
 
For more information on starting a Farm to School (F2S) program, visit the BSN F2S Webpage.

Sourcing Local Goods and Services

Schools can connect with local suppliers, farmers, producers, and ranchers through a few different channels. Consider using the Wisconsin Local Foods Database as a place to begin searching for producers, ranchers, and farmers in your area. Connections can be made by calling, emailing, meeting in person, or if necessary, sending out a written solicitation. 
 
  • Prime vendor (AKA commercial distributor)
  • Direct to farmer
  • School garden
  • Farmer’s market or auction

Common Procurement Methods

Most SFAs utilize informal procurement to obtain local goods and services. Before deciding which method to use, estimate the value of your purchase and have your specifications defined. In short, the value of a micro-purchase is estimated by transaction and is the most flexible method. Whereas, a small-purchase and formal procurement are estimated based on volume used over the course of a typical school year.
 

Procuring Local Foods for CNPs Guide

 

Informal

  • Micro-purchase (non-competitive)
  • Small-purchase (3 Bids and a Buy)

Formal

  • Invitation for Bid (IFB)
  • Request for Proposal (RFP)

Identify Needs and Define Local 

To make a purchase, first identify your needs. Procurement terminology refers to this process as “creating specifications”. For example, what exact product do you need to purchase? Ask a few questions like: How much do you need? When do you need it? Do you need organic? What size or type do you need? 
 

Step 1

Conduct market research. If you do not know exactly what you are looking for, or what is out there, do some research. This process is referred to as “ Request for Information (RFI)”. This is similar to conducting a survey of what is available in your area. At this time, you are not buying the product or service, just collecting information to create your specifications and better defining your needs. For example, you may reach out to a few tomato suppliers or farmers to discuss the tomato products they offer (size, type, organic, quantity, season(s) of availability, etc.).
 

Step 2

After you do research, use the specifications developed during the RFI to request pricing. You may need to communicate further with suppliers to educate them on your specifications and the unique needs of the Child Nutrition Programs. When the specifications are clearly defined, suppliers will be able to respond completely and provide comparable pricing. A potential supplier must meet the requirements of the product or service outlined in your specification to be considered "responsive".

Example: Locally grown whole beefsteak heirloom tomato (or equivalent slicing tomato), medium size, estimated volume to purchase 15-20 cases per week during growing season.

Crediting Foods for Child Nutrition Programs: A Resource for Local Producers

Step 3

Define local for your SFA. Your definition of local may change by product and season. For informal procurement like micro-purchase and small-purchase, keep the definition in mind when deciding who to contact for pricing. For formal procurement (IFB or RFP), include the definition in your solicitation document in addition to your written technical specifications.

Geographic Preference

As of July 1, 2024 the geographic preference option has expanded to allow use of the term “local” (e.g., “locally grown”, “locally raised”, or “locally caught”) as a required procurement specification for unprocessed agricultural products for the Child Nutrition Programs (CNPs).

Operators may choose to:

  • Use local as a specification (i.e., the written description of a product or service that a vendor must meet to be considered responsive to a solicitation) for local unprocessed agricultural products;
  • Use a defined scoring advantage (e.g., additional credit or points given to local unprocessed agricultural products during the evaluation of responses to a solicitation) for local unprocessed agricultural products;
  • Adopt a mix of both strategies; or,
  • Elect not to use any of these approaches.

For more information on using the Geographic Preference, visit the USDA Procuring Local Foods webpage.

Resources and Policy Memos

Policy Memos