4000-2-1Purchasing Policy

Responsible Executive:
Vice-President, Finance and Administration
Director, Financial Services
Issue Date:
November 28, 2013
Supersedes Date:
November 28, 2013
Last Review:
October 03, 2019
Last Revision:
October 03, 2019

Upon request, the college will provide a copy of this policy in an alternate format.

The purpose of this policy is to establish the process, standards and expectations associated with the procurement of goods and services for Lambton College.

Policy

  1. Purchasing processes shall be consistent with the Broader Public Sector (BPS) Procurement Directive issued by the Management Board of Cabinet (Appendix 3) and the Centralized Procurement Initiative and Interim Measures announced by the Ontario Government on March 18, 2019.
  2. To ensure compliance with government requirements and demonstrate accountability for public funds, the Purchasing department is the only department authorized to issue, amend or cancel a purchase order.
  3. All purchases shall normally follow the approval authority schedule as set out in Appendix 1, which identifies approval limits, authorities and the procurement process.
  4. Notwithstanding the above statements, exceptions to this policy (such as sole sourcing) may be permitted through the approval of the Vice-President, Finance and Administration.
  5. Managers shall adhere to purchasing process requirements and consult with the appropriate College department as described in Appendix 2.
  6. Lambton College acquires goods and services that benefit College operations. The College will not purchase goods or services for the personal use of employees.

Roles and Responsibilities

  1. The Procurement Specialist - Finance is responsible for the integrity and transparency of the purchasing process.
  2. The Manager is responsible and accountable for the purchasing decisions made in her/his area of responsibility, observation of authorization limits, the assessment of a supplier's performance and the management of the contract associated with the purchase.
  3. A scanned copy of the final contract supporting a purchase must be sent by the Manager to the Purchasing department.
  4. The Manager may delegate purchasing authority within the limits defined in Delegation of Signing Authority for Expenditure- policy 4000-2-3.
  5. The Requisitioner is responsible for complying with this policy and following the purchasing procedures communicated by the Purchasing department.

Fairness and Transparency

  1. All College purchases shall follow fair practices, free of any conflicts of interest.
  2. Purchases shall not be artificially partitioned to avoid appropriate purchasing procedures.
  3. All purchase decisions exceeding a transaction value of $100,000 shall be vetted by a selection committee using written selection criteria. 
  4. It is the responsibility of the Manager to obtain and document the verbal or written quotes they require. Appropriate documentation to support verbal quotes is especially important. The quotes must be current. 
  5. When an attempt to solicit a minimum number of quotes has not been successful, the Requisitioner should record the attempt and the reason for failing to achieve the required number of quotations.
  6. Prices obtained from suppliers or potential suppliers are intended for College use only. Pricing information shall be kept confidential. 
  7. College employees shall avoid any conflict of interest or the appearance of a conflict of interest in any purchasing solicitation or decision. 

Blanket Purchase Orders

  1. Blanket Purchase Orders may be used for high volume purchases of similar types of goods or services from a single supplier during the course of a fiscal year.
  2. Blanket Purchase Orders may not exceed one fiscal year and must follow the standards set out in Appendix 1.

Specific Goods or Services

  1. All purchases involving lease arrangements must be approved by the Vice-President, Finance and Administration, who will assess the appropriateness of the lease.
  2. All electrical devices shall have evidence of approval by the Canadian Standards Association (CSA) or equivalent.

Consulting Services

  1. All consulting service contracts must follow and fulfill the standards set out in Appendix 1B before the commencement of services.
  2. A Consulting service contract shall contain clear terms of reference, and reimbursement of expenses shall be limited to those specified in the contract.

Centralized Procurement Initiative and Interim Measures

  1. All new in-scope purchases must comply and with the Centralized Procurement Initiative and Interim Measures. The College should utilize available Vendor of Record (VOR) arrangement, where one exists. The College can use Shared Services Organizations (SSO), Group Purchasing Organizations (FPO), Ontario Public Service (OPS) VORs and Ontario Education Collaborative Marketplace (OECM) all of which have been established using fair, open, transparent and trade compliant procurement process. A new in-scope procurement requiring a Procurement Rationale Report Form(PRRF) is as follows:
    1. $100,000.00 and greater AND/OR
    2. Exceed two years in length including extensions
    3. Not leveraging a bulk buying agreement or VOR arrangement
  2. NOTE: This requirement does not apply to our of scope/excluded procurements, which are as follows:
    1. Where procurement is related to construction - meaning construction, reconstruction, demolition, repair of a building, structure or other civil engineering or architectural work and includes site preparation, excavation, drilling, seismic investigation, the supply of products and materials, the supply of equipment and machinery if they are included in and incidental to the construction, and the installation and repair of fixtures of a building, structure or other civil engineering or architectural work, but does not include professional consulting services related to the construction contract unless they are included in the procurement.
    2. Where procurement is related to goods acquired solely for resale. The College must submit a PRRF to the Ministry at least 45 days before the procurement is released to the vendor community. As a result, the Requestor must provide the Procurement Specialist with purchase specifications at least 60 days in advance of the date the purchase is required to be tendered.

Request for Proposals (RFP) and Request for Quotes (RFQ)

  1. If open procurement is required, all RFPs and RFQs must be consistent with the requirements of the Broader Public Sector Procurement Directive with specific attention to the following:

Posting Competitive Procurement Documents

  1. Calls for open competitive procurements must be made through an electronic tendering system that is readily accessible by all Canadian suppliers.
  2. All RFP and RFQ must be posted in such a way that they are accessible to everyone and must comply with the AODA regulations.

Timelines for Posting Competitive Procurements

  1. Procurement opportunities for good or services valued at $100,000 must be posted for a minimum of forty (40) calendar days. However, in accordance with the Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA), posting times may be reduced by a total of fifteen (15) days as bids are posted electronically (5 days), all documents are available electronically from the date of notice of publication (5 days) and received electronically (5 days).
  2. Consulting services must be competitively procured irrespective of value.  Exemptions must be in accordance with the applicable trade agreements, Broader Public Sector Procurement Directive and the Centralized Procurement Initiative.

Procurement/Purchasing Card (PCard)

  1. A College PCard may be used to purchase low-value goods and services from vendors on behalf of Lambton College by employees authorized to do so.
  2. Each procurement card will have a unique number, and will be issued in the name of Lambton College and the employee who has been authorized to use that card.
  3. All PCards remain the property of Lambton College and all employees receiving a PCard must sign and abide by the agreement provided by the Procurement Specialist.

ProCard request forms can be found on the myLambton Accounting & Finance section under Finance.

Accessibility of Ontarians with Disabilities Act 2005 (AODA)

When considering a good or service for purchase, Lambton College will include in the consideration the effectiveness of the item in addressing the accessibility needs of Ontarians with disabilities. 

Appendices

Appendix 1A: Table 1 Goods and Non Consulting Services

Table 1. Goods and Non-Consulting Services
Authorization Limit (based on Contract Value) Approval Procurement Process (based on Contract Value) Procurement Method Selection Committee
Less than $100 Budget Manager or authorized requisitioner No Quotes Petty Cash Not Required
$100 up to but not including $1,000 Budget Manager or authorized requisitioner No Quotes P-Card Not Required
Between $1,000 and $25,000      Budget Manager or authorized requisitioner Purchase Order Purchase Requisition and Purchase Order Not Required
Over $25,000Dean, Director or Executive Team MemberAccess OECM or Ontario Vendor of Record possible and appropriatePurchase Requisition and Purchase Order  
Over $25,000As outlined belowAccess to OECM or Ontario Vendor of Record not possible or appropriateAs outlined below 
Between $25,001 and $50,000Dean or DirectorInvitational competitive procurement (minimum of 3 suppliers to submit a bid)Purchase Requisition and Purchase OrderRequired
Between $25,001 and $100,000Director I.T; Director Facilities Mgmt; Executive Dean/DirectorInvitational competitive procurement (minimum of 3 suppliers to submit a bid)Purchase Requisition and Purchase OrderRequired
Between $100,001 and $250,000Executive Dean/DirectorOpen Competitive Process Purchase Requisition and Purchase OrderRequired
Up to $500,000Executive Team MemberOpen Competitive ProcessPurchase Requisition, PO and Contract (if applicable)Required
Up to $1MPresidentOpen Competitive ProcessPurchase Requisition, PO and Contract (if applicable)Required
Over $1MBoard of GovernorsOpen Competitive ProcessPurchase Requisition PO and ContractRequired

Appendix 1B: Table 2 Consulting Services

Table 2. Consulting Services
Procurement Value Approval Procurement Process Procurement Method Selection Committee
$1 to $25,000Budget Manager or authorized requisitioner Invitational Letter or open competitive process Purchase Requisition, PO and contract Required
Over $25,000Executive Team MemberAccess Ontario Vendor or Record possible and appropriatePurchase Requisition and PORequired
Over $25,000As outlined belowAccess to OECM or Ontario Vendor of Record not possible or appropriateAs outlined below 
$25,001 to $50,000Dean or DirectorInvitational Letter or open competitive processPurchase Requisition, PO and contract Required
$25,001 to $100,000Director I.T; Director Facilities Mgmt; Executive Dean/DirectorInvitational Letter or open competitive processPurchase Requisition, PO and Contract Required
$100,001 to $250,000Executive Dean/DirectorOpen competitive processPurchase Requisition, PO and Contract Required
$250,001 to $500,000Executive Team MemberOpen competitive processPurchase Requisition, PO and ContractRequired
$500,001 to $1MPresidentOpen competitive processPurchase Requisition and PO and ContractRequired
Over $1MBoard of GovernorsOpen competitive processPurhcase Requisition and PO and ContractRequired

Appendix 2

To achieve a College standard of quality and compatibility, and to support the College’s internal service departments, the following categories of requisitions shall be vetted through the appropriate division/department prior to any purchase commitment. The process remains the same regardless of the limit for competitive quoting.

Table 3 Consultations Requirements for Purchasing

Table 3. Consultation Requirements for Purchasing
Category Required Consultation Purpose
Advertising and Promotional Materials Marketing and Communications Conformity to established practices
Architectural, engineering or other design consultants Facilities Management Conformity to established practices
Multimedia equipment (classroom and non-classroom use) Information Technology Conformity to established standards and compatibility with existing equipment
Buildings, land or property leases Facilities Management Conformity to established health and safety standards and compliance with Board Policy
IT Hardware infrastructure (desktop, laptop, tablet, printers, scanners, servers, network gear etc.) Information Technology
Conformity to established standards and compatibility with existing equipment
Computer Software (including online and mobile apps) Information Technology Suitability and measurement of service impact
Furniture and Fixtures Facilities Management Conformity to established standards

Table 4 Required Consultation for Purchasing

Table 4. Required Consultation for Purchasing
Item Required Consultation (and often processing department) Purpose
Legal Services
  • Property - Facilities Management
  • Human Resources - People & Organizational Development
  • Student - Registrar
  • Other - VP Finance & Adminsitration 
Enable consistent treatment and comply with audit requirements
Telecommunications Information Technology Conformity to established standards and compatibility with existing equipment
IT Services (hosted) Information Technology Conformity to established standards and compatibility with existing equipment
Utilities Facilities Management Conformity to established standards

Appendix 3

Broader Public Sector (BPS) Procurement Directive

Issued by Management Board of Cabinet, Province of Ontario

The purpose of the BPS Directive is:

  1. 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;
  2. To outline responsibilities of BPS organizations throughout each stage of the procurement process; and
  3. To ensure that procurement processes are managed consistently throughout the BPS.

This Directive is based on the five key principles that allow Organizations to achieve value for money while following a procurement process that is fair and transparent to all stakeholders:

  1. Accountability
    Organizations must be accountable for the results of their procurement decisions and the appropriateness of the processes.

  2. Transparency
    Organizations must be transparent to all stakeholders. Wherever possible, stakeholders must have equal access to information on procurement opportunities, processes and results.

  3. 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 lifecycle cost.

  4. Quality Service Delivery
    Front-line services provided by Organizations, such as teaching and patient care, must receive the right product, at the right time, in the right place.

  5. Process Standardization
    Standardized processes remove inefficiencies and create a level playing field.

BPS Procurement Directive - Supply Chain Code of Ethics

Goal
An ethical, professional and accountable supply chain
Personal Integrity and Professionalism
All broader public sector (BPS) supply chain participants must act, and be seen to act, with integrity and professionalism. Honesty, care and due diligence must be integral to all supply chain activities within and between BPS organizations, suppliers and other stakeholders. Respect must be demonstrated for each other and for the environment. Confidential information must be safeguarded. Participants must not accept gifts and favours, provide preferential treatment, publicly endorse suppliers or products or engage in any other activity that would create, or appear to create, a conflict of interest.
Accountability & Transparency
Supply chain activities must be open and accountable. In particular, tendering, contracting and purchasing activities must be fair, transparent and conducted with a view to obtaining the best value for public money. All participants must ensure that scarce public sector resources are used in a responsible, efficient and effective manner.
Compliance & Continuous Improvement
All BPS supply chain participants must comply with this Code of Ethics and the laws of Canada and Ontario. Participants should continuously work to improve supply chain policies and procedures, to improve supply chain knowledge and skill levels, and to share leading practices.

Reference:
Broader Public Sector Procurement Directive (PDF)

Centralized Procurement Initiative found at https://www.doingbusiness.mgs.gov.on.ca/ 


For questions or concerns regarding policies, please contact the policy sponsor. See the phone list for contact info.

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