Vendor Procurement Policy

Sourcing and Purchasing:

Purchasing is an integral part of HPC's planning strategy, and it starts with a solid foundation within the company.

HPC’s purchasing decisions will be handled by a joint purchasing team of the Chief Executive Officer and the Director of Purchasing. The same team will negotiate contracts, set quality standards, and select vendors, ensuring that contracts and relationships are actively managed. HPC grants preference to small, family-owned, sustainably farmed outdoor cultivators, black-owned operations, female owned operations and social-equity businesses.

In an effort to foster an equal playing field and contribute to diversification of the industry, HPC will actively carry cannabis and derivative products sourced from small cannabis producers. California has acted toward preventing massive scale cultivation operations through its regulatory structure, but there are inevitably a few “big players” with the resources to circumvent cultivation limit regulations by accruing scores of small licenses.

We intend to partner with small cultivators to combat monopolization and franchising within the industry and to withstand the MAUCRSA Type 5 License rollout, which is likely to result in large corporations operating expansive cultivation facilities within the next decade (BPC § 26061(b)). We will actively stock flower and derivative products sourced primarily from small cannabis producers.

HPC has woven environmentally conscious practices into all aspects of this business model. HPC products will be purchased from cultivators and manufacturers that can verify environmentally conscious and ecologically sustainable practices. HPC will require any prospective cultivator or vendor to demonstrate zero chemical use, stream diversion, unpermitted grading, clear cutting, illegal dumping, or any other ecologically damaging practices that do not align with HPC's or the community's core values.

Prior to the commencement of the contract, HPC employees will investigate the sellers according to the relevant checklist which includes five categories: 1) company history; 2) financial solvency; 3) security and information protection; 4) certificates and licenses; and, 5) trustees. For growers and producers of cannabis, HPC will visit sites, where possible, to ensure that the cultivator meets HPC’s high standards of cleanliness, purity and accuracy.

Received inventory will undergo quality control inspections to ensure no product has been compromised or tampered and to verify proper packaging and labeling. Quality control will include inspection and approval of all components, product containers, closures, packaging materials, labeling and cannabis products. Inspection will also include verification of testing results, labeling compliance, and that all received product is packaged for sales.

All products must be properly packaged in resealable, tamper evident, child resistant packages and labeled in compliance with the MAUCRSA, California Health and Safety Code, and relevant provisions of the California Retail Food Code. Package labeling will include the variety, weight, size, pesticides and nutrients used, the date of planting, the date of testing and all other relevant information. Cannabis product labels will be checked for compliance with BPC § 26120.

HPC will maintain contact with vendors throughout the life of the contract. HPC staff will welcome visits from its vendors and will provide feedback on product quality, timeliness and completeness of delivery, and customer feedback.

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