|Creation Date||November 26, 2012|
|Approval Date||December 1, 2012|
|Effective Date||January 1, 2013|
This policy shall apply to all staff at The Michener Institute.
The purpose of this policy is to:
- Ensure that publicly funded goods and services, including construction, consulting services and information technology, are acquired by BPS organizations through a process that is open, fair and transparent;
- Outline responsibilities of BPS organizations throughout each stage of the procurement process; and
- Ensure that procurement processes are managed consistently throughout the BPS.
The BPS Procurement Directive is based on five key principles that allow Organizations to achieve value for money while following procurement processes that are fair and transparent to all stakeholders.
Organizations must be accountable for the results of their procurement decisions and the appropriateness of the processes.
Organizations must be transparent to all stakeholders. Wherever possible, stakeholders must have equal access to information on procurement pportunities, processes and results.
Value for Money
Organizations must maximize the value they receive from the use of public funds. A value-‐for-‐money approach aims to deliver goods and services at the optimum total life-‐cycle cost.
Quality Service Delivery
Front line services provided by Organizations, such as teaching and patient care, must receive the right product, at the right time and in the right place.
Standardized processes remove inefficiencies and create a level playing field.
Any exceptions to the mandatory requirements below require written justification and the approval of the Chief Executive Officer.
1. Segregation of Duties
Michener will segregate at least three of the five functional purchase – to – pay roles. Responsibilities for these functions lie with different departments or at a minimum with different individuals:
|Requisition||Authorize the supply chain department to place an order||End User requesting the product or service|
|Budget||Authorize that funding is available to cover the cost of the order||Departmental budget holder|
|Commitment||Authorize release of the order to the supplier under agreed upon contract terms||Purchasing role in the supply chain department|
|Receipt||Authorize that the order was physically received, correct and complete||Individual receiving the goods|
|Payment||Authorize release of payment to the supplier||Accounts Payable|
2. Approval authority
The table below outlines authorities that may be authorized to commit Michener to a procurement.
|Commitment Approval Authority Schedule|
|Total Procurement Amount||Delegated Purchasing Authority Level|
|$0 up to but not including $10,000||Manager|
|$10,000 up to but not including $50,000||Director|
|$50,000 up to but not including $250,000||Vice-President|
|$250,000 up to but not including $1,000,000||President/CEO|
|$1,000,000 or more||President/CEO and Board Chair (or delegate)|
The table below provides the mandatory total procurement value limits and means of procurement are specified as “Required.”
|Goods and Non-Consulting Services and Construction|
|Total Procurement Value||Means of Procurement||Recommended/Required|
|$0 up to but not including $100||Petty cash||Recommended|
|$100 up to but not including$3,000||Procurement card (P-‐Card)||Recommended|
|$3,000 up to but not including$10,000||Purchase order||Recommended|
|$10,000 up to but not including$100,000||Invitational competitive||Recommended|
|$100,000 or more||Open competitive||Required|
|Total Procurement Value||Means of Procurement||Recommended/Required|
|$0 up to but not including$100,000||Invitational/open competitive||Required|
|$100,000 or more||Open competitive||Required|
4. Information gathering
Where results of informal supplier or product research are insufficient, formal processes such as a Request for Information (RFI) or Request for Expression of Interest (RFEI) may be used if warranted, taking into consideration the time and effort required to conduct them.
A response to RFI or RFEI must not be used to pre-‐qualify a potential supplier and must not influence the chances of the participating suppliers from becoming the successful proponent in any subsequent opportunity.
5. Supplier preQualification
If not a vendor of record, a Request for Supplier Qualification (RFSQ) will enable Michener to gather information about supplier capabilities and qualifications in order to pre-‐qualify suppliers for an immediate product or service need or to identify qualified candidates in advance of expected future competitions.
Terms and conditions of the RFSQ document must contain language that disclaims any obligation of Michener to call on any supplier to provide goods or services as a result of pre-‐qualification.
6. Posting Competitive Procurement documents
Calls for open competitive procurements must be made through an electronic tendering system that is readily accessible by all Canadian suppliers.
7. Timelines for posting Competitive Procurements
Michener must provide suppliers a minimum response time of 15 calendar days for procurement of goods and services valued at $100,000 or more.
Michener must consider providing suppliers a minimum response time of 30 calendar days for procurements of high complexity, risk, and/or dollar value.
8. Bid receipt
Bid submission date and closing time must be clearly stated in competitive procurement documents. Michener must set the closing date of a competitive procurement process on a normal working day (Monday to Friday, excluding provincial and national holidays).
Submissions that are delivered after the closing time must be returned unopened.
9. Evaluation criteria
Evaluation criteria must be developed, reviewed and approved by an appropriate authority prior to commencement of the competitive procurement process.
Competitive procurement documents must clearly outline mandatory, rated and other criteria that will be used to evaluate submissions, including weight of each criterion.
Mandatory criteria (e.g., technical standards) should be kept to a minimum to ensure that no bid is unnecessarily disqualified.
Maximum justifiable weighting must be allocated to the price/cost component of the evaluation criteria.
The evaluation criteria are to be altered only by means of addendum to the competitive procurement documents.
Michener may request suppliers to provide alternative strategies or solutions as a part of their submission. Michener must establish criteria to evaluate alternative strategies or solutions prior to commencement of the competitive procurement process. Alternative strategies or solutions must not be considered unless they are explicitly requested in the competitive procurement documents.
10. Evaluation process disclosure
Competitive procurement documents must fully disclose the evaluation methodology and process to be used in assessing submissions, including the method of resolving a tie score.
Competitive procurement documents must state that submissions that do not meet the mandatory criteria will be disqualified.
11. Evaluation team
Competitive procurement processes require an evaluation team responsible for reviewing and rating the compliant bids.
Evaluation team members must be made aware of the restrictions related to utilization and distribution of confidential and commercially sensitive information collected through the competitive procurement process and refrain from engaging in activities that may create or appear to create a conflict of interest.
Evaluation team members must sign a conflict-‐of-‐interest declaration and non-‐disclosure of confidential information agreement.
12. Evaluation Matrix
Each evaluation team member must complete an evaluation matrix, rating each of the submissions. Records of evaluation scores must be retained for audit purposes.
Evaluators must ensure that everything they say or write about submissions is fair, factual, and fully defensible.
13. Winning bid
The submission that receives the highest evaluation score and meets all mandatory requirements set out in the competitive procurement document must be declared the winning bid.
Michener must not discriminate or exercise preferential treatment in awarding a contract to a supplier as a result of a competitive procurement process.
15. Executing the contract
The agreement between Michener and the successful supplier must be formally defined in a signed written contract before the provision of supplying goods or services commences.
Where an immediate need exists for goods or services, Michener and the supplier are unable to finalize the contract as described above, an interim purchase order may be used. The justification of such decision must be documented and approved by the appropriate authority.
16. Establishing the contract
The contract must be finalized using the form of agreement that was released with the procurement documents.
In circumstances where an alternative procurement strategy has been used (i.e., a form of agreement was not released with the procurement document), the agreement between Michener and the successful supplier must be defined formally in a signed written contract before the provision of supplying goods or services commences.
17. Termination clauses
All contracts must include appropriate cancellation or termination clauses. Michener should seek legal advice on the development of such clauses.
When conducting complex procurements, Michener should consider, as appropriate, the use of contract clauses that permit cancellation or termination at critical project life-‐cycle stages.
18. Term of agreement modifications
The term of the agreement and any options to extend the agreement must be set out in the competitive procurement documents. An approval by an appropriate authority must be obtained before executing any modifications to the term of agreement.
Extending the term of agreement beyond that set out in the competitive procurement document amounts to non-‐competitive procurement where the extension affects the value and/or stated deliverables of procurement.
19. Contract award notification
For procurements valued at $100,000 or more, Michener must post, in the same manner as the procurement documents were posted, contract award notification. The notification must be posted after the agreement between the successful supplier and Michener was executed. Contract award notification must list the name of the successful supplier, agreement start and end dates, and any extension options.
20. Supplier debriefing
For procurements valued at $100,000 or more, Michener must inform all unsuccessful suppliers about their entitlement to a debriefing.
Michener must allow unsuccessful suppliers 60 calendar days following the date of the contract award notification to request a debriefing.
21. Non-competitive procurement
Michener should employ a competitive procurement process to achieve optimum value for money. It is recognized, however, that special circumstances may require Michener to use non-‐competitive procurement.
Michener may utilize non-‐competitive procurement only in situations outlined in the exemption, exception, or non-‐application clauses of the AIT or other trade agreements.
Prior to commencement of non-‐competitive procurement, supporting documentation must be completed and approved by an appropriate authority within Michener.
22. Contract management
Procurements and the resulting contracts must be managed responsibly and effectively.
Payments must be made in accordance with provisions of the contract. All invoices must contain detailed information sufficient to warrant payment. Any overpayments must be recovered in a timely manner.
Assignments must be properly documented. Supplier performance must be managed and documented, and any performance issues must be addressed.
To manage disputes with suppliers throughout the life of the contract, Michener should include a dispute resolution process in their contracts.
For services, Michener must:
- Establish clear terms of reference for the assignment. The terms should
include objectives, background, scope, constraints, staff responsibilities, tangible deliverables, timing, progress reporting, approval requirements, and knowledge transfer requirements.
- Establish expense claim and reimbursement rules compliant with the Broader Public Sector Expenses Directive and ensure all expenses are claimed and reimbursed in accordance with these rules.
- Ensure that expenses are claimed and reimbursed only where the contract explicitly provides for reimbursement of expenses.
23. Procurement records retention
For reporting and auditing purposes, all procurement documentation, as well as any other pertinent information must be retained in a recoverable form for a period of seven years.
Michener must have a written policy for handling, storing and maintaining the suppliers’ confidential and commercially sensitive information.
24. Conflict of interest
Michener must monitor any conflict of interest that may arise as a result of the employees’ of Michener, advisors’, external consultants’, or suppliers’ involvement with the Supply Chain Activities. Individuals involved with the Supply Chain Activities must declare actual or potential conflicts of interest. Where a conflict of interest arises, it must be evaluated and an appropriate mitigating action must be taken.
25. Bid dispute resolution
Competitive procurement documents must outline bid dispute resolution procedures to ensure that any dispute is handled in an ethical, fair, reasonable and timely fashion. Bid dispute resolution procedures must comply with bid protest or dispute resolution procedures set out in the applicable trade agreements.