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Purchasing Procedure

  • Related Documents:  Purchasing Policy
  • Owner:  Financial Services
  • Approval Dates:  December 2006, February 2012, November 2020

I. Purpose

These procedures (the “Procedures”) assist in the interpretation and application of the University’s Purchasing Policy, set out the processes for the purchase of Goods, Services, and/or Professional Services (Consulting and Non-Consulting) by or for the University, and establish the requirements for purchasing approval thresholds.

II. Definitions

Bid: means a Supplier submission in response to a University procurement opportunity.
Consulting Services: means Professional Services involving the provision of expertise or strategic advice that is required by the University. These are the “thinkers” and their advice often results in a report with recommendations presented for consideration and decision making.

Competitive Bid Process: means the purchasing process by which potential Suppliers are invited to Bid on the supply of Goods, Services and/or Professional Services (Consulting and Non-consulting). This can include an Invitational Competitive Procurement or a Competitive Procurement.

External Funding Agencies: means organizations that provide research or other funding to the University.

Free on Board or Freight on Board (FOB): means the University takes delivery of Goods being shipped to it by a Supplier once the Goods leave the Supplier's shipping dock.

Goods: means physical goods or software products that can be produced, bought and sold.

Limited Tendering: means a procurement method whereby the University contracts with Supplier(s) and the Competitive Bid Process and Invitational Competitive Procurement process is waived.

Non-Consulting Services: means Professional Services involving a person or entity who is contracted to provide tactical or operational services. These are the “do-ers” who tend to have a hands on role, actively creating, executing or handling the work.
Payment Terms: means the period of time before payment becomes due following an invoice from a Supplier. Payment terms are net 30 days from the invoice date, unless otherwise stated on the Purchase Order.

Procurement Value: means the total cost of the contract, from the date of first supply through to the expiry date of the contract, in Canadian dollars, excluding applicable taxes and including all applicable charges such as extension options, warranties, maintenance, training, currency exchange, and freight.

Purchase Order or PO: means the document generated by Purchasing Services following receipt of a Purchase Requisition binding the University to the purchase of Goods, Services and/or Professional Services (Consulting and Non-consulting)

Purchase Requisition: means a request for the purchase of Goods, Services and/or Professional Services (Consulting and Non-consulting) initiated using the University’s online requisition system.

Purchaser: means the University department, division, group, or individual requiring the procurement of Goods, Services and/or Professional Services (Consulting and Non-consulting).

Professional Services: means the supply of a service requiring specialized knowledge and skill, often requiring a license, certification, or registration. Professional Services can be considered either Consulting Services or Non-Consulting Services depending on the type of work. Contact Purchasing Services for further guidance.

Request for Competitive Bid: means a form that is required before commencing a Competitive Procurement process.

Services: means intangible products that do not have a physical presence, excluding Professional Services.

Single Source: means a non-competitive process used to acquire Goods, Services and/or Professional Services (Consulting and Non-consulting) from a specific Supplier, even though there may be more than one Supplier capable of delivering the same Goods, Services and/or Professional Services (Consulting and Non-consulting).

Sole Source: means a non-competitive process used to acquire Goods, Services and/or Professional Services (Consulting and Non-consulting) from a specific Supplier because there are no other Suppliers available or capable of providing the required Goods, Services and/or Professional Services (Consulting and Non-consulting).

Supplier: means an individual or entity that provides Goods and/or Services which submits a Bid in response to a University procurement opportunity.

University: means Ryerson University;

Vendor of Record (VOR): means a procurement arrangement, established through a competitive process, that authorizes one or more qualified vendors to provide Goods, Services and/or Professional Services (Consulting and Non-consulting) for a defined period, usually not longer than three (3) years, on terms and conditions as set out in a VOR contract.

III. Determining Preliminary Information

To determine the correct procurement processes to use for the purchase of Goods, Services and/or Professional Services (Consulting and Non-consulting) on behalf of the University, the prospective Purchaser must first determine:

1. What is being purchased:

a) Identify the category(ies) that the purchase falls under — (1) Goods; (2) Services and Professional Services (Non-Consulting) ; and (3) Professional Services (Consulting Services). Purchases could involve one, two or all three categories.

b) Identify the requirements and specifications for the purchase. Purchasing Services can assist the Purchaser to refine the requirements and specifications.

2: The Procurement Value:

a) The Purchaser must estimate the value of the Goods,Services and/or Professional Services (Consulting and Non-consulting) being purchased. To estimate the Procurement Value, or develop a budget, the Purchaser should examine the historical spend where possible. Contact Purchasing Services for assistance

b) Before making a purchase, the Purchaser must confirm there is sufficient budget available. Proof of budgetary approval will be required for contract execution.

3: If there is an existing contract or Vendor of Record:

a) Before making a purchase, the Purchaser should confirm whether there is a VOR arrangement in place for the particular Good, Service and/or Professional Service (Consulting and Non-consulting) being procured. The Purchaser should contact Purchasing Services for further guidance.

4: If there is an opportunity to utilize a local or diverse supplier:

b) Before making a purchase, the Purchaser should confirm if there is an opportunity to work directly with a diverse supplier or if there is an opportunity to incorporate social initiatives as part of the supplier selection criteria. The Purchaser should contact Purchasing Services for further guidance.

IV.  Procurement Thresholds

The following tables establish the applicable procurement process a Purchaser must follow based on the Procurement Value of the purchase as required by the applicable trade agreements and procurement legislation the University is bound by.  The method by which these purchases can be paid for is also outlined.

Where there is potential that Procurement Value may exceed a particular Procurement Threshold:

(1)  due to future additional costs and potential for scope increase; or

(2)  where the Procurement Value is close to the higher end of a Procurement Threshold;

then the next highest Procurement Threshold category should be used to determine the appropriate Procurement Method.  For example, if purchasing Non-Consulting Services and the Procurement Value is $99,000, although the requirement is to obtain three quotations, it is strongly encouraged that the Purchaser use a Competitive Procurement required in the higher Procurement Threshold category due to the likelihood that the contract value will exceed $99,000.

If multiple identical or similar purchases from the same Supplier are required, or similar purchases are required closely in time, then those purchases should be procured together and will cumulatively determine the Procurement Value.  Purchasing Services can help bundle appropriate purchases together under the same procurement exercise.  The overall value of a purchase cannot be split across multiple procurements to avoid the applicable Procurement Thresholds.

Table 1: Purchasing Goods, Services, and/or Professional Services (Non-Consulting)

Procurement Value*

Procurement Method

Payment Method

Less than $5,000**

One Bid

1.     Purchasing Card;

2.     Self-Service Invoicing; or,

3.     Purchase Order

$5,000 - $24,999

Three Bids are recommended

One Bid is acceptable

1.     Purchase Order; or

2.     Purchasing Card (exception basis)

$25,000 - $99,999

Invitational Competitive Procurement

Three Bids are required

Purchase Order

 

$100,000 and greater

Competitive Procurement

Purchase Order

Table 2: Purchasing Consulting Services

Procurement Value*

Procurement Method

Payment Method**

$0 - $99,999

Invitational Competitive Procurement

Three Bids are required

Purchase Order

$100,000 and greater

Competitive Procurement

Purchase Order

*Canadian dollars and excludes applicable tax.

**Purchasing Card or Self-Service Invoicing is the recommended payment method for a Procurement Value of up to $5,000.

Table 3: Purchasing from a VOR List

Procurement Value*

Number of Suppliers Required

Payment Method**

$0 - $24,999

Minimum of one (1)

Purchase Order

$25,000 - $99,999

Minimum of three (3)

Invite all Suppliers if the VOR list has less than three (3) Suppliers

Purchase Order

$100,000 -$249,999

Minimum of five (5)

Invite all Suppliers if the VOR list has less than five (5) Suppliers

Purchase Order

$250,000 but not to exceed the VOR ceiling limit set out in the VOR contract

Minimum of seven (7)

Invite all Suppliers if the VOR list has less than seven (7) Suppliers.  The value of the procurement will determine whether all Suppliers on the VOR list must be invited to Bid.

Purchase Order

*Canadian dollars and excludes applicable tax.

**Contact Payment Services to inquire about alternate payment methods.

V. Obtaining Competitive Bids

1. Invitational Competitive Procurement

The Purchaser is responsible for this procurement process.

An invitational competitive process involves requesting Bids from at least three (3) qualified Suppliers for a specific scope of deliverables.

Requests for Bids must require that each Bid include: price, description of Goods, Services and/or Professional Services (Consulting and Non-consulting) offered, delivery FOB, and Payment Terms.  In the event that other evaluation criteria is relevant to the Bid it should be identified to the Supplier prior to requesting Bids.  For requests involving alternate Payment Terms, contact Purchasing Services for further guidance.   

All Bids received must be attached to the Purchase Requisition.  In the event the Purchaser is unsuccessful in obtaining Bids from at least three Suppliers, they may still proceed with a Purchase Requisition by furnishing documentation that demonstrates that at least three Suppliers were invited to Bid.

The Supplier with the lowest priced Bid should be awarded the contract.  A business rationale with the Purchase Requisition must be included when recommending an award to a higher cost Bid.

The Purchaser issuing the procurement should (1) advise the unsuccessful Suppliers that they were not selected for the contract award; and (2) negotiate a contract for the purchase of the Goods, Services and/or Professional Services (Consulting and Non-consulting) with the successful Supplier.

2. Competitive Procurement

Purchasing Services is responsible for facilitating this procurement process.

The Competitive Bid Process requires that procurement documents are posted on a public tendering site for a specified number of days, as outlined in the applicable trade agreements and procurement directives.

Prior to a Competitive Bid Process a Request for Competitive Bid must be submitted to Purchasing Services.  The Purchaser must have a detailed description of what they  require with precise specifications.  These specifications will be used to develop the scope of deliverables for the Competitive Bid Process.

Depending on both the nature and the dollar value of the purchase, different procurement methodologies may be used. Purchasing Services will determine the most appropriate procurement process and draft the procurement documents.

The most common types of procurement documents used by the University are:

a)    Request for Proposal (“RFP”): RFPs are generally required for complex projects estimated to have a total Procurement Value of more than $100,000. The RFP is publicly posted allowing Suppliers to view and submit  Bids that include pricing and qualitative responses to evaluation criteria set out in the RFP document.

b)    Request for Quotation (“RFQ”): RFQs are generally used when the specifications are known and price is the main or only factor in selecting the successful Supplier.

c)     Request for Supplier Qualification (“RFSQ”): A request for Suppliers to respond to a publicly posted document for the ongoing provision of specific Goods, Services and/or Professional Services (Consulting and Non-consulting) and establishing a VOR list.

Following the Competitive Bid Process, Bids that are received will be evaluated and scored, and a successful Bid will be selected. 

3. Vendor of Record Procurement

When Goods, Services and/or Professional Services (Consulting and Non-consulting) of the same nature are required often, Purchasing Services will recommend that a VOR list is established by issuing a Competitive Procurement using the RFSQ document.  Upon completion of this Competitive Bid Process, a VOR list of Suppliers qualified to provide the Goods, Services and/or Professional Services (Consulting and Non-consulting) is created.  A VOR contract, usually no longer than three (3) years, is entered into with each of the prequalified Suppliers on the VOR list.

Once the VOR list is established, a second stage process is initiated to obtain Bids when a purchase is required from these prequalified Suppliers. The number of Suppliers that are invited to the second stage process is outlined in section IV, Procurement Thresholds, Table 3 above.

If Bids from multiple Suppliers on the VOR list are required, Purchasing Services will facilitate the procurement process.  A Statement of Work (“SOW”) is issued to the VOR list and Bids are requested.   The SOW sets out the scope of deliverables required, the timeline for delivery, and any other relevant specifications or project details.  The SOW is issued to the number of Suppliers on the VOR list required by the Procurement Thresholds and these Suppliers are invited to submit a Bid which responds to the evaluated criteria set out in the SOW document.

VI.  Contract Requirement

Unless otherwise advised by Purchasing Services or the General Counsel and Board Secretariat, contracts should be drafted using the standard Ryerson template and negotiated with the assistance of the office of the General Counsel and Board Secretariat as follows:  

Table 4: Contract Requirements Goods, Services, and/or Professional Services (Consulting and Non-consulting)

Procurement Value

Agreement

Goods - Less than $5,000

Vendor Quotation

Services and/or Professional Services (Consulting and Non-consulting) - Less than $5,000

Services Agreement (under $5000)

Goods and/or Services

$5,000 - $100,000

Purchase Order

 

Professional Services (Consulting and Non-consulting)

$5,000 - $100,000

Professional Services Agreement

Goods, Services  and/or Professional Services (Consulting and Non-consulting)

$100,000 and greater

As advised by Purchasing Services

 

All contract review, approvals and execution shall adhere to the Execution of Contracts Policy.

The Purchaser must execute a contract prior to the commencement of Services and/or Professional Services (Consulting and Non-consulting), or the provision of Goods over $5,000.

VII.  Debrief

1.    A debrief may be requested by any Supplier that submitted a Bid within 60 days of the procurement process at issue.

2.   The purpose of a debrief is to give the University an opportunity to provide feedback to Suppliers on their Bid and its evaluation following the completion of a procurement process.

VIII.  Bid Dispute

1.     Where a Supplier wishes to dispute the award of a contract or its own evaluation under a procurement process, it must send a written letter outlining its complaint to bids@ryerson.ca with the following information:

●      Subject of Email: “Bid Dispute”, procurement number and title

●      name and address of the Supplier; and

●      detailed statement of the grounds of the dispute and any supporting documentation.

2.     The Director, Strategic Procurement and Payment Services, or their delegate, will provide a response to the Supplier within a reasonable timeframe.

IX. Request to Waive the Competitive Bid Process

There are circumstances that allow the Competitive Bid Process to be waived provided certain criteria are met that fit a Limited Tendering exception (including Sole or Single Source) or the non-application provisions of the:

a) Canadian Free Trade Agreement (CFTA);

b) Canada-European Union Comprehensive Economic and Trade Agreement (CETA); or

c) Trade and Cooperation Agreement between Ontario and Quebec (OQTCA).

Failure to adequately plan is not a sufficient reason to waive the Competitive Bid Process and proceed with non-competitive purchasing.

1. If a Purchaser wishes to make a purchase without following the Competitive Bid Process, they must request a copy of a Request to Waive the Competitive Bid Process Form (“RTW Form”) from Purchasing Services.

2. The RTW Form must be approved in advance of any commitment being made to the Supplier.

3. The approval requirements for an RTW Form are:

a) The purchase of Goods, Services and/or Professional Services (Non-consulting):

i) Up to $100,000 must be approved by an Assistant Vice President, Dean, Executive Director or equivalent position.

ii) $100,000 or greater must also be approved by the respective the Vice President or equivalent position (e.g. Chief Financial Officer)

iii) $1,000,000 or higher the President must also be informed.

b) For Professional Services (Consulting Services):

i) up to $1,000,000 must be approved by the Chief Financial Officer and the President;

ii) $1,000,000 or greater must be approved by the Board of Governors.

4. Emergency Purchase

An emergency purchase is a circumstance in which an immediate purchase is necessary to prevent or address a situation that could result in a threat to human life, serious damage to property, or suspension of the provision of an essential service.

In an emergency purchase situation, a Purchaser may obtain the necessary Goods, Services and/or Professional Services (Consulting and Non-consulting) required to address the emergency, and seek the required approvals after the fact. Immediately after the emergency has been contained and addressed, the Purchaser should prepare a Purchase Requisition and note (1) the nature of the emergency; and (2) include the approved RTW form.

5. Public Disclosure requirement

When a Limited Tendering exception applies, Purchasing Services must publicly disclose the conditions that justified the waiver of the Competitive Bid Process and the total value of the award if it was $100,000 or more.

This information is also collected and reported to the Province of Ontario.

X. Collaboration

The University is continuously looking for areas to leverage spend through collaborative contracts. There are numerous opportunities for the University to join collaborative contracts with external organizations such as the Ontario Government.

Check the Purchasing Services website or contact Purchasing Services for details on available collaborative contracts and how they can be accessed.

XI. Supplier Payment

1. Payment for invoices under $5,000

Upon receipt of Goods or completion of Services, there are two ways to pay a Supplier:

a) Ryerson Purchasing Card (P-Card)
The P-Card is the preferred method of payment for low dollar purchases. Some restrictions may apply, including acceptance by the Supplier. Contact Payment Services for details.

b) Self-Service Invoicing (SSI)
The SSI entry process in the Invoice Approval System is appropriate for processing payments when the P-Card is not accepted by the Supplier. Some restrictions may apply, contact Payment Services for details.

If a Supplier requires a Purchase Order, please contact Purchasing Services for further guidance.

2. Payment for invoices over $5,000

a) Upon receipt of Goods or completion of Services and/or Professional Services (Consulting and Non-consulting), the Supplier must submit an invoice to Payment Services via POinvoices@ryerson.ca, unless otherwise agreed to by Payment Services.. The payment will be made within the Payment Terms as long as:

● a Purchase Order has been created and has sufficient funds available; and,

● a Purchase Order number is included on the Supplier’s detailed invoice.

b) If an invoice is greater than $5,000, an approval via the financial system is required before a payment is released. This approval confirms receipt of the Goods or completion of Services to the satisfaction of the University.

If an invoice is less than $5,000, it will not require an electronic approval before a payment is released to a Supplier. In the event a payment should not be released to the Supplier, Payment Services must be contacted to place a hold on the invoice.

c) If approved on an exception basis, the P-Card can be utilized for invoices over $5,000.

Appendix 1  Supply Chain Code of Ethics

In accordance with the Broader Public Sector (BPS) Procurement Directive, effective April 1, 2011, and as amended from time to time, the University formally adopts the Ontario BPS Supply Chain Code of Ethics, as follows:

Ontario Broader Public Sector (BPS) Supply Chain Code of Ethics

Goal: To ensure an ethical, professional and accountable BPS supply chain.

I. Personal integrity and Professionalism

Individuals involved with Supply Chain Activities 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 engage in any activity that may create, or appear to create, a conflict of interest, such as accepting gifts or favours, providing preferential treatment, or publicly endorsing suppliers or products.

II. Accountability and Transparency

Supply Chain Activities must be open and accountable. In particular, 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 public sector resources are used in a responsible, efficient and effective manner.

III. Compliance and Continuous Improvement

Individuals involved with purchasing or other Supply Chain Activities must comply with this Code of Ethics and laws of Canada and Ontario. Individuals should continuously work to improve supply chain policies and procedures, to improve their supply chain knowledge and skill levels and to share leading practices.