(X) Policy Memo
( ) Training Memo
( ) Information Memo

December 23, 2008

TO: Family Day Care Home Providers and Summer Food Service Program Sponsors

RE: Simplified Acquisition Threshold

The Oregon Department of Education Child Nutrition Programs received guidance from USDA concerning the prevailing Simplified Acquisition Threshold, commonly referred to as the small purchase threshold, for sponsors participating in the Child and Adult Care Food Program (CACFP) and Summer Food Service Program (SFSP).

Small purchase procedures are those simple and informal procurement methods used to secure services, supplies, or other property that fall below the established threshold. While relatively simple and informal, small purchase procedures must still be conducted in a competitive manner.

Currently the simplified acquisition threshold in 7 CFR Part 3016.36 is set by 41 U.S.C. 403(11), at $100,000. While the majority of the Child Nutrition Programs set their small purchase thresholds by referencing them to the 41 U.S.C., CACFP and SFSP do not. Consequently, these two programs currently have a lower threshold.

In an effort to achieve consistency among all the Child Nutrition Programs, USDA will revise the program regulations to link the small purchase threshold to the 41 U.S.C. Until such time that USDA is able to make this regulatory change, the threshold is raised by way of this policy memorandum.

Thus, effective immediately, institutions participating in CACFP may use simplified acquisition procedures for small purchase up to the threshold set by 41 U.S.C. 403 (11), which is currently $100,000.

If you have questions, please contact me at (503) 947-5892.

Sincerely,

Lynne Reinoso
Manager, Community Nutrition
Child Nutrition Programs
Office of Finance & Administration