Procurement Guideline - for Publicly Funded Organizations in Ontario

Procurement Guideline

for Publicly Funded Organizations

in Ontario

Table of Contents



Introduction ........................................................................................................................ 1

GuidingPrinciplesbehindProcurementBestPractices ..................................................... 2

Responsiblemanagement .............................................................................................. 2

Valueformoney.............................................................................................................. 2

Vendoraccess,transparencyandfairness ..................................................................... 2

Qualityservicedelivery................................................................................................... 2

UpholdingOntario’stradeagreements.......................................................................... 2

SupplyChainCodeofEthics................................................................................................ 3

Personalintegrityandprofessionalism .......................................................................... 3

Accountabilityandtransparency .................................................................................... 3

Complianceandcontinuousimprovement .................................................................... 3

ProcurementBestPractices................................................................................................ 4

1. Establishinternalcontrols ...................................................................................... 4

2. Planbeforepurchasing ........................................................................................... 6

3. Developcriteria....................................................................................................... 7

4. Canvassthemarket................................................................................................. 8

5. Purchase.................................................................................................................. 9

6. Documentthetransaction .................................................................................... 11

7. Keeprecords ......................................................................................................... 12

8. Manage contractsresponsibly.............................................................................. 12

9. Reviewandimprove ............................................................................................. 13

Non‐competitiveprocurement......................................................................................... 13

Definitions......................................................................................................................... 14

Foradditionalinformation................................................................................................ 17

Contactinformation.......................................................................................................... 17



Introduction

TheProcurementGuidelineforPubliclyFundedOrganizationsinOntarioisasummaryof

bestpracticesintheprocurementofgoodsandservicesfororganizationsfundedbythe

OntariogovernmentandnotdesignatedundertheBroaderPublicSecto

rAccountability

Act,2010.Itisatoolthatmaybeusedvoluntarilyasareferenceonbestpracticesinthe

procurementofgoodsandservicesusingpublicfundsoraresourcefororganizations

seekingmorecost‐effectiveandconsistentpurchasingpractices.

TheproclamationoftheBroaderPublicSectorAccountabilityAct,2010established

newrulesforprocurementintheBroaderPublicSectorProcurementDirective.

Organizationsdesignatedundertheactincludehospitals,schoolboards,colleges,

universities,communitycareaccesscentres,children’saidsocietiesandorganizations

thatreceivemorethan$10millioninfundingfromtheOntariogovernment.

DesignatedorganizationsarerequiredtocomplywiththeBroaderPublicSector

ProcurementDirective.

ThoseorganizationsthatreceivefundingfromtheOntariogovernmentandthat

arenotdesignatedbytheactarenotrequiredtocomplywiththeBroaderPublic

SectorProcurementDirective.Theyareencouraged,however,tousethe

ProcurementGuidelinetoimproveopenness,fairnessandtransparencyduring

theprocurementprocess.

Itismeantforvoluntaryusebythethousandsofpublicly fundedorganizationsin

Ontario.Theseareprimarilycharitiesandincorporatednot‐for‐profitgroups.Allofthe

organizationsareintegraltothelocalpopulation’swell‐beingandday‐to‐dayactivities.

Theyhaverepresentationinareassuchassettlement,arts,sports,health,education,

accessibilityandchildcare,andserveeveryregionanddemographicintheprovince.

Guiding Principles behind Procurement Best Practices

Itisuptotheindividualorganizationstodeterminethebestuseofpublicfundswhen

decidingonapurchase.Itisgoodpractice,however,toobservecertainprocurement

bestpracticesorguidelinestoensuretheprocessisopen,fairandtransparent.

Responsible management

Nomatterhowsmalltheorganizationortheprocurement,thereshouldbeanadequate

organizationalstructure,policiesandprocedurestobeabletomanageprocurement

contractsfairlyandeffectively.

Value for money

Buyersshouldconsiderfactorssuchastherequirementsofthebusiness,alternatives,

timing,supplystrategyandtotallifecyclecostsofthegoodorservicewhenevaluating

vendors’submissions.

Vendor access, transparency and fairness

Publiclyfundedorganizationsshouldprovideallqualifiedvendorswithfairaccesstothe

purchaseofgoodsandservices.Buyersshouldavoidconflictofinterest,bothrealand

perceived,andchoosethesuccessfulvendorinafairandnon‐discriminatoryprocess.

Quality service delivery

Procurementactivitiesshouldresultinthedeliveryoftherequiredproductorservice

attherighttimeandplacetoorganizations.Thisisespeciallycriticalforthose

organizationsinvolvedinhealthcare,educationandsocialservices.

Upholding Ontario’s trade agreements

OrganizationsshouldrecognizeandrespectOntario’stradeagreementswithother

jurisdictionsthatopenaccesstopubliclyfundedprocurementwheretheyapply.

Supply Chain Code of Ethics

Asupplychaincodeofethicsshouldgoverntheconductofbuyers,vendorsandall

othersinvolvedinsupplychainactivities.

Itdefinesacceptablebehaviourforethical,professionalandaccountablesupplychain

activities.Ifyourorganizationalreadyhasacodeofethics,itmaybeaugmentedto

includespecificsupplychainclauses.

Personal integrity and professionalism

Thepublicexpectstheirtaxpayers’moneytobeusedwithhonesty,duediligence

andcare.Individualsinvolvedwithsupplychainactivitiesareexpectedtoconduct

themselveswithintegrityandprofessionalism,showrespectforeachotherandthe

environment,andsafeguardconfidentialinformation.Organizationsshouldnot

engageinanyactivitythatcreates,orappearstocreate,aconflictofinterest.

Accountability and transparency

Allactivitiesinvolvedinthepurchaseofgoodsandservicesusingpublicfundsshould

befairandtransparent,andforthepurposeofacquiringthebestvalueformoney.

Compliance and continuous improvement

Organizationsshouldestablishandregularlyreviewtheirownpoliciesandprocedures

aroundsupplychainmanagement.Theyshouldmakeimprovementsasnecessary,

acquireadditionalsupplychainknowledgeandskills,andsharebestpractices.

Procurement Best Practices

Everyorganization,regardlessofsize,shouldhaveprocurementpoliciesandprocedures

inplace.Thefollowingsectionssetoutbestpracticesthatcanbeimplementedaspart

ofanorganization’sprocurementpoliciesandprocedures.Staffshouldbemadeaware

ofthesepoliciesandproceduresandhowtheyshouldbecarriedouttoestablishapoint

ofreferenceforeffectivedecision‐making.

Belowisasimpleprocessflowthatwillhelpguidetheorganizationwhendeciding

onapurchase.

Validate

needand

understand

requirements

Check

Budget

Buy

Written

Agreement

PayReceive

Identify

aneed

foragood

orservice

•Whocan

verifywehave

themoneyto

buy?

•Ifwedon’t

havethe

funds,canwe

getthem?

•Whocanverify

weneedit?

•Dowealrea dy

haveitin

anotherpart

ofthe

organization?

•Havewe

derstoodthe

requirements?

•Whowillmake

thepayment?

•Whodoesthe

actualbuying?

•Whatprocess

willtheyuse

tobuy?

•Whowill

checkthatwe

receivedwhat

wepaidfor?



1. Establish internal controls

Internalcontrolsaremechanismsintheprocurementprocessthathelpreduceexposure

toinappropriate,unauthorizedorunlawfulexpenditures.Internalcontrolshelpensure

thatpurchaseshavebeenauthorized,thatgoodsorserviceshaveactuallybeen

received,andthatfundsexisttomeettheexpenditure.

Assigningresponsibilitiesandestablishinganapprovalauthorityscheduleareessential

internalcon

trolsthatpromotetheintegrityoftheprocurementprocess.Internal

controlsmaybeinfluencedbythesizeandcomplexityoftheorganization.Inlarger

publiclyfundedorganizations,forexample,procurementresponsibilitiesmaybe

centralizedand/orresideindifferentdepartmentsorwithdifferentindividuals.

Insmallerorganizationswheredifferentdepartmentsorindividualsmaynotbeinvolved

inprocurement,andwhereitma

ynotbefeasibletoseparatespecificroles,adequate

controlsapprovedbyanexternalauditorshouldbeputinplace.Ifanorganization

conductsaReviewEngagement,theReviewEngagementmaybeagoodtimetosee

ifadequatecontrolsareinplace.

OrganizationsshouldestablishanApprovalAuthoritySchedule.AnApprovalAuthority

Scheduledefineswhowithintheorganizationhasresponsibilityfortheprocurementof

goodsandservicesatdifferentdollarthresholds.

Thetablebelowprovidessomeexamplesofdifferentdollarthresholdsandpurchasing

authoritylevelsforsmall,mediumandlargeorganizations.Eachorganizationshould

determinetheirowndollarthresholdsthatbalancetheneedforcontrolswiththeneed

tooperateeffectivelyonadaytodaybasis.

Sample Dollar Thresholds

Example 1: Small Example 2: Medium

Example 3: Large

Upto$100 Supervisor



Upto$1,000 Supervisor



Upto$5,000 Supervisor

Upto$300

Program

Director



Upto$3,500

Program

Director



Upto$10,000

Program

Director

Upto$5,000

Executive

Director/CEO



Upto$10,000 ED/CEO



Upto$50,000 ED/CEO

Over$5,000

Boardof

Directors



Over$10,000

Boardof

Directors



Over$50,000

Boardof

Directors



Inadditiontoprocurement,internalcontrolsforexpensesareusefulforsmaller,

publiclyfundedorganizations.Thecontrolsshouldapplytoeveryone,staffand

volunteersalike,withoutexception,preferablywithawrittenpolicyinplacefor

paymentofexpenses.

TheMinistryofGovernmentServiceshasdevelopedtheBPSExpensesDirective.

ThepurposeofthisdirectiveistosetouttherequirementfordesignatedBPS

organizationstoestablishexpenseruleswhereexpensesarereimbursedfrompublic

funds.Thedirectiveservesasaguidelinetoallothernon‐designated,publiclyfunded

organizations.Itisusefulforreviewingordevelopinganorganization’sexpensepolicies

andpractices.



2. Plan before purchasing

Organizationsshouldplanadequatelyforallpurchases,whethertheyarerecurringor

one‐timepurchases.

Identify:

 whatproductorservicetheorganizationrequires,oriftherequirementcan

befilledusingexistingresources

 marketavailability

 anestimateofthetotalcostoftheprocurement,includinganypossibilitiesfor

extensionorcoststhatarebeyondtheinitialpurchaseprice.Examplesofcost

beyondtheinitialpurchasepriceinclude:

 taxesorduties

 shipping,handling,delivery

 installation

 insuranceorwarranty

 maintenanceandservice

 disposal

 consultingortraining

 changesrequiredtoexistingproductsorservicesbasedonthenewproduct

orservice.

 theprocurementmethod(informal,invitational,opencompetitiveor

non‐competitive),thatiscommensuratetothetotalcostoftheprocurement

andmarketavailability

 internalapprovalsandtimelinetocompletethepurchase

 thedurationofthecontract,withconsiderationfortotalservicestobeprovided,

optimumvalueformoneyandmostfavourabletermsoftheagreement

 howtheorganization’svalues,suchasdiversity,alignswithitsinternal

procurementpoliciesandbusinessandlegalrequirements.

Theremayalsobecontractsavailablethathavebeennegotiatedinadvancebyalead

organization.Whenassessingapossibleprocurement,theorganizationcanlookup

regionalbuyinggroupsan

dsharedserviceorganizations.Theseorganizationshave

grouppurchasingcontractsthatarealreadyinplaceandmaybenefitthebuyerthrough

betterpricingandvolumediscounts.



3. Develop criteria

Organizationsshouldhaveaprocessinplacetoreviewbidsbeforethecompetitive

processbegins.Thisincludes:

 specifyingwhatcriteriaprospectivevendorshavetomeetinordertoqualify

foracontractawardforgoodsorservices.Asetlistofexpectationsthatis

cleartotheorganizationaswellastothevendorswillhelpinevaluatingbids.

Theorganizationshoulddeterminetheimportanceofeachcriterionandassign

aweighting,i.e.,“numberofpoints”foreachitem.Theorganizationshouldalso

determineifthereareanymandatorycriteriathatmustbemetforabidtobe

considered,forexample,ifthesupplierhasproperinsurancetoperformthe

work.Tomaintainfairnessandtransparency,thecriteriaandweightingshould

besetpriortothestartoftheprocurement.Forsimplepurchases,theremay

beasinglecriterion,whichcouldbepriceordelivery.

Formorecomplexpurchases,theremaybemultiplecriteriathatfactorintothe

awarddecision:

 totalcostofownership,includingpriceofproductorservice,taxes,

otherexpenses

 quality

 quantity

 transitioncosts

 delivery

 servicing

 environmentalconsiderations

 experience

 expertise

 financialcapacityofsuppliertomeetprocurementrequirements.

 anevaluationteamthathassignednon‐disclosureandconfidentiality

agreements,andaconflictofinterestform

 adescriptionofhowthewinningbidwillbeselected,forexample,thewinning

bidwillbetheonethatreceivesthehighestevaluationscoreandmeets

mandatorycriteria.

Thecriteriawillhelpdeterminethety

peofprocurementdocumenttobeused.

Thethreemostcommontypesofdocumentsthatsupporttheseprocessesare:

RequestforTender,RequestforQuotationandRequestforProposal.ARequestfor

TenderandRequestforQuotationareusedwhentheevaluationcriteriaarebased

primarilyonpriceorpriceanddelivery.ARequestforProposalisadocumentusedto

outlineevaluationcriteriaforagoodorservicethatwillbeselectedonfactorsother

thanpriceordeliveryal

one.



4. Canvass the market

Gatherinformationaboutpotentialvendorspriortoprocuringgoodsorservices

inordertoensurethattheorganizationisaswell‐informedaspossible.Information

aboutvendors,pricing,localcommunityandgeneraltrendscanhelporganizations

makebetterchoices.

Someexamplesofinformalwaystogatherinformationaboutvendorsinclude:

 networkingwithorganizationswithasimilarbusinessneed

 internetsearches

 checkingreferences

 checkingwithBetterBusinessBureauandelectronicsupplierwebsites.

SomeformalwaysofcollectinginformationincludeusingaRequestforInformationor

RequestforExpressionsofInterest.Thesemethodsmaybeusedwhentheinformation

collectedinformallyisnotsufficient.Themoreformalmethodsofgatheringinformation

mayrequiremoreworkbyboththeorganizationandvendors.Forthisreason,formal

methodsarepreferableforhighdollarorhighriskpurchaseswhentheorganizationis

notsureofwhatisavailableinthemarket.Forexample,anorganizationthatwantsto

introduceanautomatedsystemwouldneedinformationaboutwhatisavailablein

themarketandthevendors’capabilities.ARequestforInformationmayalsoinclude

arequesttoprovideadviceforaninnovativetechnologicalsolution.

ARequestforExpressionsofInterestgivestheorganizationanopportunitytolearn

aboutvendorinterestandthecommunity’sabilitytoprovidethenecessaryservices

orsolutions.

Tomaintainfairnessandtransparency,aRequestforInformationandRequest

forExpressionsofInterestshouldnot:

 beusedtoevaluateorcomparethecollectedinformation

 resultintheawardofwork

 beusedtopre‐qualifypotentialvendors

 resultinalegalcontractwithavendor

 requirevendorstoprovideproprietaryinformationwithout

anon‐disclosureagreement.



5. Purchase

Theorganizationshould“rightsize”theprocurementmethodtotheprocurement’s

valueandrisk.Forexample,itwouldbeimpracticalforanorganizationtoseekBoardof

Directors’approvalforeachlowdollar,routinepurchase.Conversely,procurementsof

mediumtohighdollarvalueshouldbemanagedutilizingtheappropriateprocurement

strategytoensurevalueformoney.

Anexampleofahigh‐riskprocurementcouldbeonewhereavendordispute

alreadyexists,orwhenanorganizationisprocuringagoodorserviceonwhich

ithaslittleexpertise.

Makinghigh‐riskprocurementsmoreopengivestheorganizationgreatertransparency

intheirprocessandprovidesthemwi

thawiderselectionofvendorsandsolutions.



Guide To Procurement Method

Low$Value

Medium$Value

High$Value

Informa lProcess

CompetitiveProcess

Informa lProcess

CompetitiveProcess

InformalProcess*

CompetitiveProcess

Invitational

Open*

Open

Invitational*

Open

*RecommendedPro curementMethodinBOLD.



Forlow‐dollarandlow‐riskorroutinepurchases,itmaybeappropriatetouse

aninformalprocurementprocess.Anexampleofinformalprocurementwould

betoorderfromasuppliercatalogueortosimplybuyretail.Forfrequent,

low‐dollar‐valuepurchases,thereisstillopportunitytomaxi

mizevalueformoney.

Forexample,iftheorganizationroutinelypurchasesgroceries,itcouldlookathow

muchisspentovertheentireyear,ratherthanindividualpurchases,toensurethe

procurementstrategycontinuestobeeffective.

Whendealingwithmedium‐tohigh‐dollarprocurements,itmaybeappropriatetouse

acompetitiveprocurementprocess.Therearetwotypesofcompetitiveprocurement

processes:invitationalcompetitiveandopencompetitive:

Competitive Procurement: Invitational

Aninvitationalcompeti

tiveprocessinvolvesrequestingaminimumofthreequalified

supplierstosubmitawrittenproposalbasedontherequirementsoutlinedbyan

individualororganization.Therequestmaytaketheformofemail,phonecallorother

methodstheorganizationusestosolicitbids.

Competitive Procurement: Open

Anopencompetitiveprocessenablesallsupplierstocompeteinafairandopen

environmen

trelatedtothecontractualpurchaseorleaseofanygoodorservice

byanorganization.Selectingbidsfromthewidestpossiblerangeofvendorsmay

providegreaterinsightregardingmarketopportunities.Thereareelectronictendering

sitesthatareaccessibletoawiderangeofvendors.Thesesitesmaybeavailablefree

forthebuyertopostopportunities.

Thiswillattractahigherlevelofvendorresponseandhelpmaintainopen,

fairandtransparentprocurementstandards.

Whensolicitingbids,organizationsshouldconsider:

 givingvendorsaminimumresponsetimeof15calendardaysforgoodsand

services.Formorecomplexandhigher‐pricedgoodsorservices,organizations

shouldconsideralongerresponsetime,suchas30daysormore.

 includinga“blackout”period.Duringtheblackoutperiod,vendorsmustconduct

allcommunicationsabouttheprocurementonlywiththecontactpersonnamed

intheprocurementdocument.Theblackoutperiodbeginswhenthe

procurementdocumentsareissuedandendswhentheagreementissignedby

theorganizationandthewinningvendor.

 ensuringanyaddendumtotheprocurementdocumentsandquestion‐and‐

answerareavailabletoallbidders.

 ensuringthesubmissionandclosingdatesforbidsarestatedclearlyinthe

procurementdocuments.Bidsthatarereceivedaftertheclosingdateshould

bereturnedtothevendorunopened.

 ensuringvendorssubmitaccuratebidsasmuchaspossibleandincluding

technicalinformationtotenderdocuments,whereapplicable.

Foropencompetitiveprocurements,organizationsshouldconsiderpostingthenameof

thesuccessfulvendor,thestartandenddatesoftheagreement,andanyextension

options.Thisinformationcanbepostedwheretheoriginalprocurementopportunity

wasadvertised.Itisgoodpracticetonotifyallotherbiddersthatacontracthasbeen

awardedandthattheselectionprocessiscomplete.Tomaintaincordialvendor

relationships,vendorsshouldalsobeinformedthattheyareentitledtoadebriefing.

TheBroaderPublicSectorProcurementDirectiveImplementationGuidebookcontains

additionalinformationofthetypesofinformationthecanbesharedwithvendorsin

adebriefing.

Vendor of Record Agreements

Forfrequentpurchasesofaparticulargoodorservice,aVendorofRecordagreement

canhelpimproveprocurementefficiency.AnorganizationmaycreateitsownVendorof

Recordor,withagroupoforganizations,jointlyestablishVendorofRecordagreements

forcommonandfrequently‐usedgoodsorservices.

AVendorofRecordAgreementconsistsoftwosteps:

 anopencompetitiveprocurementtopre‐qualifysuppliers

 aninvitationtovendorsfromthepre‐qualifiedlisttobidonanidentified

procurementforgoodsorservices.

TheBroaderPublicSectorProcurementDirectiveImplementationGuidebookcontains

additionalinformationonhowtodevelopVendorofRecordagreements.



6. Document the transaction

Attheendoftheselectionprocess,acontractbetweentheorganizationandthe

successfulsuppliershouldbedrawnup.Acontractistheformalagreementbetween

thetwopartiesthatincludestheproductdetailsortheservicetobeprovided,andthe

paymentschedule.

Organizationsshouldconsiderincludingthefollowingelem

entsinacontract:

Forproducts

 price

 productspecifications

 termsandconditionssuchascontractdates,warrantyandperformance.

Forservices

 termsofreferencesuchasobjectives,background,scope,constraints,staff

responsibilities,tangibledeliverables,timing,progressreport,approvals

andknowledgetransferrequirements

 disputeresolutionprocess

 expenseclaimsandreimbursementsinaccordancewiththeorganization’s

expenseclaimpolicy.

Inbothcases,inordertomitigateriskofvendornon‐performance,termsofpayment

andrequirementforvarioustypesofvendorinsuranceshouldbeclearlystated.



7. Keep records

Publiclyfundedorganizationsshouldkeeprecordsofprocurement,aswellasanyother

pertinentinformation,forreportingandauditingpurposes.Thesuggestedretention

periodissevenyears.Thereshouldalsobeawrittenpolicyforhandling,storingand

maintainingvendors’confidentialandcommerciallysensitiveinformation.

Someexamplesofrecordsthatshouldberetainedinclude:

 theapprovalsobtained

 copiesofprocurementdocumentsusedtoqualifyandselectvendors

 copiesofawardletters,noticesandpostedannouncements

 copiesofagreements

 changestothetermsandconditionsoftheagreement,especiallychanges

intheagreementprice

 supplierperformance,suchasperformancemonitoringandmanagement,

andknowledgetransfer

 receiptofdeliverables

 anyotherdocumentationrelatedtoprocurement.



8. Manage contracts responsibly

Theagreementbetweentheorganizationandthesuccessfulvendorshouldbeformally

setoutinacontractsignedbytheparties.Thecontractshouldincludeitemsspecifiedin

theprocurementdocuments,suchascancellationandterminationclauses,anyoptions

toextendtheagreementandabiddisputemechanism.Theorganizationshould

monitorthevendor’sperformanceandverifyallinvoicesandpaymentsagainstthe

termsofthecontract.

9. Review and improve

 Developatimeframe,forexample,onceayear,toreviewprocurementpolicies

tomakesuretheystillapplytotheorganization’spresentbusinessand

operationalneeds.

 Monitorprocurementexpenditures,suchasinvoices,regularly,basedonbudget

allocationorbusinessplan.

 Monitorcontracts,vendorperformanceandsatisfactionwiththeprocurement

processregularly,andintroduceimprovementsasnecessary.



Non-competitive procurement

Organizationsshouldusecompetitiveprocurementprocessestogetmaximumvaluefor

money.Theremaybesituations,however,whenorganizationsareunabletoconduct

competitiveprocurementorgetmaximumvalueundercompetitiveprocurement.

Whenusingnon‐competitiveprocurement,itisgoodpracticetodocumentthe

reasoningforusingthismethodandtoobtainproperapprovals.



Definitions

Agreementmeanstheformalwrittendocumentthatwillbeenteredintoattheend

oftheprocurementprocess.

Biddisputeresolutionmeansaprovisioninthecompetitiveprocurementdocuments

thatoutlinesprocedurestoensurethatanyprotesttoabid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.

Contractmeansanobligation,suchasanacceptedoffer,betweencompetentparties

uponalegalconsideration,todoorabstainfromdoingsomeact.Itisessentialtothe

creationofacontracttha

tthepartiesintendthattheiragreementshallhavelegal

consequencesandbelegallyenforceable.Theessentialelementsofacontractare

anofferandanacceptanceofthatoffer;thecapacityofthepartiestocontract;

considerationtosupportthecontract;amutualidentityofconsentorconsensus

adidem;legalityofpurpose;andsufficientce

rtaintyofterms.

CompetitiveProcurementmeansasetofproceduresfordevelopingaprocurement

contractthroughabiddingorproposalprocess.Theintentistosolicitfair,impartial

competitivebids.

Designatedbroaderpublicsectororganizationmeansanorganizationtowhich

section12oftheBroaderPublicSectorAccountabilityAct,2010applies.Thismeans:

a. everyhospital

b. everyschoolboard

c. everyuniversityinOntarioandeverycollegeofappliedartsandtechnologyand

post‐secondaryinstitutioninOntariowhetherornotaffiliatedwithauniversity,

theenrolmentsofwhicharecountedforpurposesofcalculatingannual

operatinggrantsandentitlements

d. everyapprovedagencydesignatedasachildren’saidsocietyunder

subsection15(2)ofPartIoftheChildandFamilyServicesAct

e. everycommunitycareaccesscorporation

f. everycorporationcontrolledbyoneormoredesignatedbroaderpublicsector

organizationsthatexistssolelyorprimarilyforthepurposeofpurchasing

goodsorservicesforthedesignatedbroaderpublicsectororganization

ororganizations

g. everypubliclyfundedorganizationthatreceivedpublicfundsof$10million

ormoreinthepreviousfiscalyearoftheGovernmentofOntario,and

h. everyorganizationthatisprescribedforthepurposesofthi

sdefinition.



ElectronicTenderingSystemmeansacomputer‐basedsystemthatprovidesvendors

withaccesstoinformationrelatedtoopencompetitiveprocurements.Twoexamples

ofelectronictenderingsystemsarebiddingo.comandmerx.com.

EvaluationCriteriameansabenchmark,standardoryardstickagainstwhich

accomplishment,conformance,performanceandsuitabilityofanindividual,alternative,

activity,productorplanismeasuredtoselectthebestsupplierthroughacompetitive

process.Criteriamaybequalitativeorquantitativeinnature.

Invitationalcompetitiveprocurementmeansanyformofrequestingaminimumof

threequalifiedsupplierstosubmitawrittenproposalinresponsetothedefined

requirementsoutlinedbyanindividual/organization.

Opencompetitiveprocurementmeansthecontractualacquisition(purchaseorlease)

byanorganizationofanygoodorservice,whichenablesallsupplierstocompetein

afairandopenenvironment.Inordertoreachalargepopulationofpotentialsuppliers,

organizationsshouldusecommonelectronictenderingmethodsforposting

competitivedocuments.

Procurementmeanstheacquisitionbyanymeans,includingbypurchase,rental,

leaseorconditionalsale,ofgoods,servicesorconstruction.

ProcurementValuemeanstheestimatedtotalfinancialcommitmentresultingfrom

procurement,takingintoaccountoptionalextensions.

Publiclyfundedorganizationsmeanseveryauthority,board,commission,committee,

corporation,council,foundationororganizationthatreceivedpublicfundsinthe

previousfiscalyearoftheGovernmentofOntario,butdoesnotinclude:

a. theOfficeoftheLieutenantGovernor

b. theOfficeoftheAssemblyortheofficeofanofficeroftheAssembly

c. aministryoftheGovernmentofOntario

d. anagencyoftheGovernmentofOntario

e. amunicipality

f. subjecttotheregulations,alocalboardasdefinedinsection1ofthe

MunicipalAct,2001andsection3oftheCityofToront

oAct,2006

g. aboardofhealthundertheHealthProtectionandPromotionAct

h. subjecttotheregulations,anorganizationthatundertakesitsactivities

tothepurposeofprofittoitsshareholders

i. along‐termcarehome,or

j. anyorganizationexcludedundertheregulations.



RequestforProposalmeansaprocurementdocumentthatrequestsvendorstosupply

solutionsforthedeliveryofcomplexproductsorservicesortoprovidealternative

optionsorsolutions.Itisaprocessthatusespredefinedevaluationcriteriainwhich

priceisnottheonlyfactor.

RequestforSupplierQualificationsmeansadocumentusedtogatherinformation

onsuppliercapabilitiesandqualificationswiththeintentionofcreatingalistof

pre‐qualifiedsuppliers.Thismechanismmaybeusedeithertoidentifyqualified

candidatesinadvanceofexpectedfuturecompetitionsortonarrowthefieldfor

animmediateneed.Organizationsmustensurethatthetermsandconditionsbuilt

intotheRFSQcontainspecificlanguagethatdisclaimsanyobligationonthepartof

theorganizationtocallonanysuppliertoprovidegoodsorservicesasaresultof

thepre‐qualification.

RequestforTendermeansadocumentusedtorequestvendorresponsestosupply

goodsorservicesbasedonstateddeliveryrequirements,performancespecifications,

termsandconditions.ARequestforTenderusuallyfocusestheevaluationcriteria

predominantlyonpriceanddeliveryrequirements.

RequestforQuotationmeansadocumentsimilartoaRequestforTenderwhere

anorganizationdescribesexactlywhatneedstobepurchasedandtheevaluation

isbasedsolelyonprice.

TradeAgreementsmeansanyapplicabletradeagreementtowhichOntarioisa

signatory,forexample,AgreementonInternalTradeandOntario‐QuebecTrade

andCooperationAgreement.

VendorofRecordArrangementauthorizesorganizationstoselectasupplierfrom

pre‐qualifiedsupplier(s)throughaformalsecond‐stageprocess,foradefinedperiod,

ontermsandconditionssetoutintheVendorofRecordarrangement.

For additional information

TheBPSSupplyChainSecretariatmaintainsawebsitewithlinkstotheBroaderPublic

SectorProcurementDirective.ThewebsitealsohasasectionontheBroaderPublic

SectorProcurementDirectiveImplementationGuidebookandFrequentlyAsked

Questions.

http://www.fin.gov.on.ca/en/bpssupplychain/index.html



Contact information

Email: [email protected]

Phone:416‐327‐3515

Fax:416‐327‐8197



BPSSupplyChainSecretariat

MinistryofFinance

OfficeoftheBudgetandTreasuryBoard

777BaySt.8

Floor

Toronto,ON

M5G2C8



Disclaimer

TheMinistryofFinancehasdevelopedthisguidetohelppubliclyfundedorganizations

inOntariowithprocurementusingpublicfunds.Thisguidesummarizesanddealswith

complexmatters.Itisnotcomprehensive,anddoesnottakeintoaccountspecificfacts

andcircumstances.Theguidealsorefersto,orreflectslawsandpracticeswhichmay

changefromtimetotime.Forthesereasonstheguide,aswellasanylinksor

informationfromothersourcesreferredto,shou

ldnotberelieduponforanyreason,

norshoulditbeconsideredtobeasubstituteforspecializedle

galorprofessionaladvice

inconnectionwithanyparticularmatter.TheMinistryisnotresponsibleforitscontents

orforanyconsequences,includingdirectorindirectliability,arisingfromitsuse.



ISBN978‐1‐4435‐9529‐2(PDF)

ISBN978‐1‐4435‐9528‐5(HTML)