70-63000-26-EM076_63000 HCA_Approved Emergeny Procurement_FY27-001_Community Pantry_.pdf.PDF

2022 Emergency Form

STATE OF NEW MEXICO

EMERGENCY DETERMINATION FORM

The emergency procurement method (NMSA 1978, Section 13-1-127) may only be used when the service, construction or item of tangible personal property procured:

1. is needed immediately to:

a. control a serious threat to public health, welfare, safety or property caused by a flood, fire, epidemic, riot, act of terrorism, equipment failure or similar event; or

b. plan or prepare for the response to a serious threat to public health, welfare, safety or property caused by a flood, fire, epidemic, riot, act of terrorism, equipment failure or similar event; and

2. cannot be acquired through normal procurement methods.

a. The agency entering into an emergency procurement should employ a competitive process to the extent practicable under circumstances.

The purchase or lease of heavy road equipment is not allowed under the emergency procurement statute.

The state purchasing agent or a central purchasing office that makes an emergency procurement shall outline its determination of the basis for the procurement and its selection of the contractor in writing and include the writing in the procurement file. (That writing can be made on this form.) Promptly thereafter:

the state purchasing agent shall post notice of the procurement on its website; or the central purchasing office shall post notice of the procurement on its website, if it maintains one, and shall transmit the notice to the state purchasing agent for posting on the state purchasing agent's website.

NOTE: the state purchasing agent or a central purchasing office that makes an emergency procurement to plan or prepare for the response to a serious threat to public health, welfare, safety or property caused by a flood, fire, epidemic, riot, act of terrorism, equipment failure or similar event shall account for the money spent in making the procurement and report on that accounting to the legislative finance committee and the department of finance and administration within sixty days after the end of the fiscal year in which the procurement was made.

I. Name of Agency:

Health Care Authority Agency Chief Procurement Officer:

Andrea Sisneros

Contracts and Purchasing Bureau Chief Telephone Number:

Cell: (505)479-1369

E-mail address: andrea.sisneros2@hca.nm.gov

II. Name of Contractor:

The Community Pantry Alice Perez, Executive Director

BTIN# 02-393303-008

Vendor # 98184

Address of Contractor:

The Community Pantry

1130 Hasler Vally Road Gallup, NM. 87301

Amount of prospective contract: $2,189,876.10 ($2,118,502.10+71,374.00)

State Budget

SFY 2027 State Funds BUDGET GRANT AMOUNT Fresh Fruit & Vegetables $70,786.10 GRO Funds $634,000.00 Special Session Funds $1,413,716.00

TOTAL $2,118,502.10

Federal Budget

Federal Funds BUDGET GRANT AMOUNT TEFAP Conversion Funds $43,321.00 TEFAP Administrative Funds $28,053.00

TOTAL 71,374.00

Term of prospective contract:

July 1, 2026 through December 31, 2026

III. Thoroughly list the services (scope of work), construction or items of tangible personal property being procured:

SCOPE OF WORK

The following represents the minimum requirements for The Emergency Food Assistance Program (TEFAP), Fresh Produce, Local Purchase and Shelf Stable Food Initiative contract and other available state funds.

The Contractor shall:

A. Provide services to Cibola and McKinley county.

B. Adhere to United States Department of Agriculture (USDA) Federal Regulations 7 CFR

247, 250 and 251.

C. Be responsible for the distribution of TEFAP - USDA Foods and be authorized to sign all documents necessary in the operation of the sub-distribution program.

D. Physically distribute USDA Foods only to those emergencies feeding organizations, herein referred to as “Local Emergency Feeding Organizations (LEFOs),” eligible to receive them.

E. Accept and distribute the USDA Foods in the manner directed by and in quantities specified by the Distributing Agency as evidenced in the list furnished by the Distributing Agency.

F. Furnish proper facilities and adequate personnel to receive, handle, store, and deliver the

USDA Foods in accordance with instructions issued by the Distributing Agency.

G. Store USDA Foods in a manner that permits them to be distinguished from non-commodity donated or commercially purchased foods, in order to ensure compliance with the requirement for the distribution and control of commodity foods.

H. Obtain true and accurate receipts pertaining to the distribution of the USDA Foods on forms as directed by the Distributing Agency. The original distribution sheet shall be forwarded to the Distributing Agency as soon as it has been completed. The copy will be completed and retained in the files of the Contractor.

I. Not assess a fee or levy an assessment against individual Emergency Feeding Organizations (EFOs) to cover unloading charges, storage costs or for other expenditures relating to the distribution of USDA Foods.

J. Assume full responsibilities for carrying out the terms and conditions of this agreement and instructions of the Distributing Agency and will reimburse the Distributing Agency for any loss, spoilage, improper distribution, or misappropriation of USDA Foods provided, unless said loss or spoilage is due to neglect on part of the Distributing Agency or their employees in providing proper storage, care, or handling. If USDA Foods are lost or damaged while in the hands of a warehousemen, carrier, or other person to the account of the Eligible Recipient Agency (ERA), he shall take prompt action necessary to obtain restitution.

K. Maintain financial records in accordance with 2 CFR part 200, subpart D, and USDA implementing regulations at 2 CFR part 400. All records required by these sections must be retained for a period of 3 years from the close of the Federal Fiscal Year to which they pertain, or longer if related to an audit or investigation in progress.

L. Furnish any required reports to the Distributing Agency upon request.

M. Allow a representative of the Distributing Agency and the United States Department of

Agriculture access, at any reasonable time, to the USDA Foods in storage or of the facilities or warehouse used in the handling of storage of USDA Foods or of any records maintained by the Contractor pertaining to distribution of USDA Foods.

N. Arrange for inspection of damaged or out-of-condition USDA Foods by a competent local or state health authority or authorized designee. Copies of any or all condemnation reports will be promptly furnished to the Distributing Agency.

O. Must provide updated disaster contact information on a quarterly basis. This information must contain contact information for normal business hours, after hours and weekends.

P. Shall provide appropriate facilities and sufficient personnel to receive, handle, store, allocate and deliver the fresh fruit and vegetables in accordance with instructions issued by HCA.

Q. Provide receipts for all expenses involved in the cost of acquiring and distributing fresh produce.

R. The Contractor will deliver the purchased or donated fresh fruits and vegetables to distribution sites serving low-income New Mexico residents.

S. Contractor must successfully utilize 100% of the state funded grant of award to distribute donated and/or purchased food items, fresh fruits and vegetables to any of your local emergency feeding organizations.

T. Contractors must submit request for reimbursement at least once per quarter but can opt for monthly reimbursement.

U. The Contractor must submit a report of all food items purchased with state funds fresh fruits and vegetables distributed quarterly. The quantity received and the quantity distributed in each county. Quantity may be expressed in pounds or truckloads. The report is due not later than the 10th of the month following the end of each quarter (October, January, April and July).

IV. Provide an explanation for the justification of the procurement including a description of the emergency condition(s) requiring use of emergency procurement and the practicable competition utilized in compliance with NMSA 1978, Section 13-1-127.

The Health Care Authority (HCA) conducted Request for Proposals (RFP) No. 60-63000-26-49628 for administration of The Emergency Food Assistance Program (TEFAP), Commodity Supplemental Food Program (CSFP), and the Fresh Produce Initiative through the General Services Department (GSD). As a result of the procurement, no contract was awarded for TEFAP services and state funded food initiatives in Cibola and McKinley counties because the incumbent provider, Community Pantry, was disqualified after submitting a required procurement document incorrectly.

This has created an immediate and unforeseen interruption in essential food assistance services.

Effective July 1, 2026, TEFAP and related state-funded food distribution services ceased in Cibola and McKinley counties, leaving highly food-insecure communities without access to critical nutrition assistance. These counties include a significant Native American population and other vulnerable residents who depend on these programs to meet their basic nutritional needs. Any prolonged disruption threatens the public health and welfare of these communities by reducing access to emergency food assistance.

Emergency procurement is necessary to restore services immediately while HCA completes a new competitive procurement for the affected service area. Community Pantry has successfully administered these programs in Cibola and McKinley counties for more than ten years and has the established infrastructure, distribution network, trained staff, and community partnerships necessary to resume services without delay.

To ensure practicable competition in accordance with NMSA 1978, Section 13-1-127, HCA sought competition to the extent feasible under the emergency circumstances by considering organizations capable of providing the required services. However, due to the immediate need to prevent an interruption in food assistance, the specialized program requirements, and the existing infrastructure needed to serve these counties, Community Pantry Food Bank was determined to be the only provider capable of immediately restoring services while a new competitive solicitation is conducted.

Community Pantry Food Bank is the only regional food hub physically located within and serving both Cibola and McKinley counties. The organization provides food and distribution support to five community food pantries, 14 mobile distribution sites serving the Acoma, Laguna, Navajo, and Zuni tribal communities, and 12 school-based food pantries throughout the two counties.

The nearest alternative regional food hubs are Roadrunner Food Bank, located approximately 141 miles away, and ECHO Food Bank, located approximately 125 miles away. Neither organization submitted a proposal to serve Cibola or McKinley counties under the recently completed RFP. In addition, both organizations are currently under contract with the State to administer TEFAP and state-funded hunger relief services in 17 other counties.

Based on these factors, HCA determined that Community Pantry Food Bank is the only provider with the established local infrastructure, existing distribution network, community partnerships, and operational capacity necessary to immediately restore uninterrupted food assistance services in Cibola and McKinley counties and prevent a disruption in services until a new competitive procurement can be completed.

V. Describe what measures are being taken to minimize the duration and effect of this particular emergency procurement (for example: is the emergency only in place until a competitive process can be completed, etc.).

A new RFP will be solicited for the remainder of State Fiscal Year (SFY) 2027 and beyond to award services in Cibola and McKinley counties. All other counties are currently under contract and will continue to receive services through 2032.

VI. Describe what measures the Agency will take in the future to prevent/mitigate use of an emergency procurement under similar circumstances.

To mitigate the need for emergency procurements under similar circumstances, the Health Care Authority (HCA) will evaluate the procurement process and identify opportunities to reduce the risk of service interruptions resulting from unsuccessful proposal submissions. Future solicitations will include enhanced pre-proposal outreach, technical assistance, and clear communication regarding mandatory submission requirements to help ensure vendors submit complete and responsive proposals.

In addition, HCA will begin planning and initiating future competitive procurements well in advance of contract expiration dates to allow sufficient time to address unforeseen procurement issues, protests, or service gaps before existing contracts expire. HCA will also develop contingency plans for critical service areas to ensure continuity of essential food assistance services while maintaining compliance with the New Mexico Procurement Code.

Certified by: Date: _______________

Agency Chief Procurement Officer

Agency Approval by: Date: _______________

Cabinet Secretary/Governmental Entity Head or Designee

Heather Kent FY27 Approved

Heather Kent New Stamp