| Topic: | Financial and Operations |
|---|---|
| Approval Authority: | Vice-President Finance and Administration |
| Approval Date: | April 30, 2007 |
| Effective Date: | June 20, 2007 |
| Last Revised: | March 23, 2024 |
1. Purpose
This purpose of this procedure is to outline the process for university employees who have the authority to procure goods and services to make appropriate disclosures should a conflict of interest arise.
2. Scope and Application
2.1 This Procedure applies to all University acquisitions (goods and services, purchase, lease or rent) by University employees expended from University operating, capital, ancillary, research and special purpose funds unless exempt as noted below.
2.2 The University endeavours to procure goods and services in the most efficient and cost-effective manner. Strategic Procurement Services (Finance Department) shall also adopt leading practices, including technology, to maximize efforts associated with the procure-to-pay process.
2.3 This procedure is issued pursuant to the Procurement of Goods and Services Policy.
3. Definitions
For the purposes of this Procedure, the terms;
a) Canadian-European Union Comprehensive Economic and Trade Agreement: Is an international free trade agreement that expands opportunities between suppliers in Canada and the European Union.
b) Canadian Free Trade Agreement: Is an agreement between the Canadian provinces whose objective is to reduce and eliminate, to the extent possible, barriers to the free movement of persons, goods, services and investments within Canada and to establish an open, efficient and stable domestic market.
c) Change Order: A change in scope, specifications, value and/or details of an original purchase order or awarded contract.
d) Department Head: The employee who has the highest level of decision-making authority for a cost centre in a faculty, department, or other operating unit.
e) Emergency: A circumstance in which an immediate purchase or procurement decision is necessary to prevent a serious delay, which delay reasonably could result in a danger to life, damage to property or suspension of the provision of an essential service.
f) Goods: Physical or tangible items that can be produced, bought and sold.
g) Services: The delivery or provision of skills, expertise, goods and/or actions.
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- Consulting Services: A person or entity that provides expert or strategic advice and related services for consideration and decision-making.
- Non-Consulting Services: A person or entity retained for the provision of assistance to others in order to complete a required task or for the creation, installation, maintenance or repair of goods or other property.
- Services for Resale: A situation where the University provides open enrollment non-credit courses/seminars to the public and customized courses/seminars to third parties external to the community for the purpose of professional development and training. In this capacity, the University acts as an enabler by engaging the services of individuals/corporations with the required expertise, excluding current University employees, to develop and deliver these services. This does not apply to credit courses or programs at the undergraduate and graduate level.
h) Vendors of Record: Vendors of goods and services with whom the University has negotiated a contract or agreement with set terms, conditions and/or pricing over a fixed period of time.
4. Roles and Responsibilities
a) The Vice-President Finance and Administration will be responsible for the implementation of this procedure.
b) Director, Strategic Procurement Services will be responsible for directing the procurement processes and monitor and enforce compliance with the procedures listed herein.
5. Procurement of Goods and Services not Subject to this Procedure
5.1 The following transactions are exempt from the University Policy and Procedure on Procurement of Goods and Services but shall be subject to other governing legislation or other University policies:
1. Payments to regulatory agencies;
2. Staff professional development and training;
3. Travel and hospitality.
5.2 The engagement of individuals/companies categorized as Services for Resale is delegated to the unit/department offering this service.
6. Procedures
6.1 General
a) Where the University has established contracts or agreements with Vendors of Record, University operating units shall purchase goods and/or services against these contracts or from these vendors.
b) The University will publicly tender purchases of goods and services in excess of $121,200 unless otherwise exempted.
c) Goods and services shall not be split into lower dollar values to avoid compliance with the University Policy on Procurement of Goods and Services and this Procedure or applicable law. The total purchase value shall include the cost of associated warranties, maintenance and service agreements but shall not include applicable taxes.
6.2 Vendors of Record
a) Where the University has established contracts or agreements with vendors, Strategic Procurement Services shall determine the most appropriate order mechanism, regardless of total procurement value(*).
6.3 No Vendors of Record
Where the University has not established contracts or agreements with vendors, the following process shall apply:
a) Consulting Services
Regardless of total purchase value, all consulting services must be competitively bid.
b) Total Purchase Value under $25,000(*)
Departments shall determine fair market value and use the University’s Procurement Card (PCard) wherever possible.
c) Total Purchase Value between $25,000 and $50,000
Departments shall solicit quotations from three or more vendors using the Vendor Quote Solicitation form; completing a Purchasing Requisition and forwarding with all solicited quotations to Strategic Procurement Services for Purchase Order issuance.
d) Total Purchase Value in excess of $50,000
Departments shall contact Strategic Procurement Services who will determine the best acquisition method and shall manage the acquisition process.
(*) Note, all values before tax; To ensure compliance with Broader Public Sector (BPS) Accountability Act and Procurement Directive, the Department approver is responsible for ensuring that her/his/their cumulative purchases (at the Department level) from the same vendor do not exceed $25,000 (excluding taxes) in a fiscal year.
6.4 Non-Competitive Procurement
a) In specific circumstances, only one vendor may be able or capable of providing goods and/or services. In such a case, a Limited Tendering and Non-Application Approval form is required and must be approved by the Director, Strategic Procurement Services, in advance of the Department making any commitment to the vendor/service provider.
b) In the case of certain professionals for whom the Canadian Free Trade Agreement stipulates its non-application, in addition to an approved Limited Tendering and Non-Application Approval form a Performance Evaluation and Engagement Renewal for Licensed Professionals is also required from the acquiring Department. Performance evaluations and engagement renewals must be completed every five years at a minimum.
6.5 Emergency
a) In an Emergency, the following authority shall apply:
o The Dean or Director of the affected area has the authority to acquire goods or services up to $121,200 without regard to this Procedure; and
o The Associate or Assistant Vice President of the affected area has the authority to acquire goods and services in excess of $121,200 without regard to this Procedure.
The nature of the emergency and the action taken must be provided in writing to the Director, Strategic Procurement Services immediately after the emergency has been addressed by using the Limited Tendering and Non-Application Approval form.
6.6 Controlled Goods and/or Hazardous Materials
a) Acquisitions associated with Controlled Goods, as defined by the Control Goods Program (CGP) of Canada, and Hazardous Materials, as defined by the Ontario Occupational Health and Safety Act and its Workplace Hazardous Materials Information System (WHMIS) Regulation, shall be acquired via Purchase Order and notice to Procurement Services regardless of value.
7. Payment Processes and Methods
7.1 Vendors of Record
a) Where the University has established contracts or agreements with vendors of record, the payment method will be outlined in the agreement and shall apply regardless of total procurement value.
7.2 No Vendors of Record
a) Where the University has not established contracts or agreements with vendors, the following payment processes shall apply:
o Petty Cash – invoices less than $100;
o Purchases under $25,000 – University Pcard or invoice payment through Accounts Payable; or
o Purchases in excess of $25,000 – Purchase Order.
7.3 Payment Terms
a) Standard payment terms of Net 30 days from invoice receipt or satisfactory delivery of goods and/or services, whichever is later, shall be applied unless more favourable payment terms have been negotiated with the vendor by Strategic Procurement Services. Equity-deserving businesses and social enterprises may request an amendment to the University’s payment terms in writing to the Director, Strategic Procurement Services. The final decision to amend the University’s payment terms for this group, lies solely with the Director, Strategic Procurement Services.
7.4 Pre-Payment
a) Advance or pre-payment shall be avoided whenever possible, as it is prudent to not pay for goods or services until they have been received or satisfactorily delivered. However, in some circumstances Vendor pre-payment may be necessary. Pre-payment must be specifically agreed to in the contract or agreement between the University and the Vendor. All contracts must be reviewed by Strategic Procurement Services prior to execution and in accordance with the University Signing Authority Register.
b) All pre-payments shall be approved by an employee with the appropriate signing authority in accordance with the corresponding dollar threshold and approval authority under the University’s Signing Authority Register article 10, Procurement of Goods and Services. The employee approval of all pre-payments shall be supported by proper vendor invoice clearly indicating that the payment being requested is either for full pre-payment or deposit/partial payment.
c) Departments may request that the vendor provide an irrevocable standby letter of credit or a credit reference from the vendor’s banker to minimize the University’s risks. Departments may contact Strategic Procurement Services if guidance is required when negotiating pre-payment terms.
8. Review
This procedure will be reviewed every 5 years at a minimum. During the review, the policy will remain in full force and effect.
| Legislative History: | Replaces Procedure on Purchasing of Goods and Services (1999). Approved by the Vice-President Finance and Administration: 2007/04/30; Date Effective: 2007/06/25. Revised: July 1, 2012. Revised March 2021; Revised May 2023; Revised March 2024 |
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| Date of Next Review: | February, 2029 |
| Related Policies, Procedures and Guidelines: |
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