Financial Information

Procurement is a multi-step process used to obtain goods and services. All entities using Federal Funds, including school nutrition programs, must follow procurement regulations found in 2 CFR Part 200. USDA School Nutrition Program regulations: 7 CFR Part 210, 215, 220.

Procurement Methods

The procurement method you use depends on the estimated dollar value of the goods or services you are purchasing.

Food Service Management Companies (FSMC)

As defined in Federal Regulation 7CFR210.16, a Food Service Management Company (FSMC) is a commercial enterprise or a non-profit organization which is, or may be, contracted with by the Local Education Agency (LEA) to manage any aspect of School Food Service (SFS).

Contracts between an LEA and a FSMC must be reviewed annually by the State Agency as required by 7CFR210(a)(6) before signing of contract. Federal reimbursement cannot be paid otherwise. You should have your legal advisor review the contract and add those attachments that may be needed to meet local needs and to ensure that the contract reflects the best terms possible for the LEA and covers all facets of your food service operation.

USDA Guidance: Contracting with Food Service Management Companies

Training

• Procurement 101
• Buy American (The ICN)
• Contracting with FSMC: Developing Solicitations and Contracts (USDA)

Procurement Memos

• Federal Micro-purchase and Simplified Acquisition Threshold in the NSLP SP 20-2019
• SP 12-2016 — Guidance on Competitive Procurement Standards for Program Operators
• SP 02-2022 — Updates to the Federal Micro-Purchase Threshold
• SP 04-2018 — Market Basket Analysis
• SP 33-2019 — Procurement Reviews

Buy American

The Buy American provision requires School Food Authorities (SFAs) to purchase, to the maximum extent practicable, domestic commodities or products. SFAs must comply with this standard when purchasing commercial food products served in the school meals programs by including Buy American provision language in procurement procedures, solicitations, and contracts in addition to tracking non-domestic product(s) purchased.

Buy American Exceptions

SFAs must maintain documentation to justify the use of non-domestic exceptions. There are two limited exceptions when non-domestic foods may be purchased:

1. Availability — The product is listed on the Federal Acquisitions Regulations Non-available articles list found at 48 CFR 25.104 and/or is not produced or manufactured in the U.S. in sufficient and reasonably available quantities of a satisfactory quality.
2. Price — Competitive bids reveal the costs of a U.S. product are significantly higher than the non-domestic product.

Buy American Tracking Tools

• Buy American Exceptions Tracking Standard Form (USDA, Excel)
• Maine Buy American Tracker Tool (Excel)

Accommodation for the Buy American 10% Cap — SY 2026

School food authorities (SFA) may request an accommodation to exceed the Buy American 10 percent expenditure cap for non-domestic food products in School Year 2026. To request an accommodation:

1. Email request to sarah.d.platt@maine.gov.
2. Attach documentation showing in detail how the SFS anticipates the 10% cap will be exceeded. Include amounts spent on commercial and non-compliant food purchases in SY2025.
3. Include justification as to why menu changes, such as serving non-compliant items less frequently, are not feasible.

Documentation will be reviewed by the State Agency.

Buy American Resources & Memos

• Buy American Quick Guide
• Fact Sheet (USDA)
• SP 09-2025 — Buy American Accommodation Process for SY 2025-2026
• SP 23-2024 — Buy American Provisions Related to the Final Rule
• SP 32-2019 — The Buy American & Agriculture Improvement Act
• SP 38-2017 — Compliance with and Enforcement of the Buy American Provision
• SP 29-2006 — Buy American Reminders
• USDA Webinar — Buy American Provisions Related to the Final Rule