In 2011, the Ontario Government issued a Procurement Directive designated to all Broader Public Sector (BPS) organizations. This Directive was updated in January 2024 and replaced the 2011 document. BPS organizations are publicly funded organizations that receive operational funding from the Ontario Government. Niagara Children’s Centre is a BPS organization and must adhere to this directive under the Broader Public Sector Accountability Act, 2010 (BPSAA, 2010).
Purpose of the Directive
- 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;
- To outline responsibilities of BPS organizations throughout each stage of the procurement process; and
- To ensure that procurement processes are managed consistently through the BPS.
Guiding Principles behind procurement Best Practices
- Accountability
- Value for money
- Transparency
- Quality service delivery
- Process Standardization
Any exceptions to this Policy shall be justified and documented.
DEFINITIONS
- Goods: Physical or tangible items that can be produced bought and sold.
- Services: The delivery or provision of skills, expertise, goods and/or actions.
- Maintenance: Services that are required for the provision of what is necessary for the creation, installation, maintenance or repair of goods or other property.
- Consultants: Services that are required for the provision of assistance to others in order to complete a required task or to undertake a task that requires a specific expertise or professional advice.
- 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.
- Preferred Suppliers: Suppliers of goods and services with whom the Centre has negotiated a contract or agreement with set terms, conditions and/or pricing over a fixed period of time.
- Total Purchase Value: Total purchase value is the value of a single product or service excluding tax.
- Catalogue Price: Printed price list from catalogues or websites will be accepted as a quotation price.
- Accessibility: Design and purchase criteria to include accessibility considerations such that physical or other barriers are not created.
Section I: Policy
POLICY STATEMENT:Niagara Children’s Centre aspires to high ethical, legal, environmental, managerial and professional standards in the management of the resources entrusted to it. Within this context, the Centre’s procurement function shall be performed in an open, fair and transparent manner where goods and services are procured in a competitive environment and where all transactions yield the optimal benefit to the Centre in the circumstances.
Niagara Children’s Centre shall adopt generally accepted principles and practices, subject to applicable provincial and federal laws and other Centre policies, procedures and guidelines as arise from time to time. The Broader Public Sector Procurement Directive will guide the Centre’s procurement practices.
The Centre shall award contracts and agreements for goods and services on the basis of the terms described in this Procedure.
Restrictions relating to Conflict of Interest and Gifts and Gratuities – as set out in the Centre Policy on Procurement of Goods and Services – shall apply to all acquisitions. (Refer also to Section VII: Procedure re: Disclosure of Conflicts of Interest).
Goods and services shall be acquired competitively from qualified suppliers who meet specific requirements and provide the maximum benefit for funds expended, subject to ethical, environmental, AODA standards, and legal considerations.
The Centre may acquire goods and services cooperatively with other not for profit agencies/institutions where the Centre can benefit from leveraged spending.
The Centre may give consideration to acquisitions that result from strategic business alliances with other agencies/institutions or corporations, provided the parameters of the Centre’s procurement policy are met.
Centre acquisitions of goods and services expended from all funds administered by the Centre shall remain the property of the Centre, unless otherwise approved by the Director, Corporate Services and Finance.
Procurement approvals and supporting documentation shall be retained for review and auditing for a period of seven (7) years.
Application
This policy shall apply to all Centre acquisitions (purchase, lease or rent) expended from Centre operating or capital funds unless exempt as noted below. All Centre employees shall abide by this policy and its associated procedures and guidelines.
All acquisitions of goods and services shall be pursuant to the procedures issued under this policy and guidelines created from time to time by the Director, Corporate Services and Finance.
Niagara Children’s Centre shall award contracts for goods or services using the most appropriate procurement practices based on the acquisition methods described in Section II of this document.
The following transactions are not subject to the Centre policy and procedure on Procurement of Goods and Services or the related Guidelines but shall be subject to other governing legislation or other Centre policies (e.g. Expense Reimbursement Policy).
- Payments to Regulatory Agencies
- Professional Services offered by the following: lawyers, architects, professional accountants, engineers, course instructors
- Staff Professional Development and Training
- Travel and Hospitality
- Equipment acquired from Centralized Equipment Pool
Conflict of InterestMembers of the Board of Directors, an employee of the Centre or another person or organization with a formal association to a Board member/ employee will declare their relationship and will not influence the procurement outcome. The Director or employee will declare a conflict of interest, and excuse themselves from any discussions or decisions related to the competition or procurement process.
Association refers to the parents, siblings, spouse or partner of the Board member/ employee as well as any organization, agency, company or individual (such as a business partner) with a formal relationship to the Board member/employee.
Gifts and Gratuities
Refer to the Centre’s Conflict of Interest and Perquisites Retention and Destruction of Centre Records Storage and Retention of Health Records policies.
INTERIM MEASURES — Centralization and Building Ontario Business Initiative (BOBI);
Purpose
- establish a framework of rules aimed at ensuring consistency in procurement-related decisions and the collection of essential data during the transitional phase towards a centralized procurement model. This transition seeks to harness Ontario's purchasing power to bolster economic growth through the Building Ontario Business Initiative (BOBI) and to facility supply chain modernization efforts.
ScopeThe interim measures apply to new procurements of goods and services (consulting and non-consulting) valued at $121,200 or higher. The interim measures and BOBI does not apply to procurement related to construction work or goods acquired solely for resale.
Procurement
Vendor of Record (VOR) Arrangements- BPS organizations must utilize existing Vendor of Record (VOR) arrangements wherever possible and appropriate, regardless of the procurement value. This includes both Enterprise
- VOR arrangements managed by MPBSD, or any other VOR arrangements available to the organization.
Contract Term- Any new contract, including extensions, must not exceed two years.
Operational Flexibility
- When it is not possible to use a VOR or limit contracts to two years, a Procurement Rationale
- Report must be submitted to the Ministry at least 45 calendar days before the procurement is released to the vendor community
- Note that submission of the form does not change the authority of the organization to proceed with the procurement. For clarity, once the report is submitted, the organization can proceed with the procurement.
- The Procurement Rationale Report can also be submitted as part of the planned procurement report or activity update report, as long as the 45-day requirement is met.
Section II: Procedure
GeneralWhere the Centre has established contracts or agreements with preferred suppliers, Centre operating programs shall purchase goods and/or services against these contracts or from these preferred suppliers. The centre will follow guidelines acquiring products within budget, within accessibility standards, commitment to supplier under agreed terms, receipt of received goods and authorized payment upon receiving goods.
Segregation of DutiesThree of the five functional procurement roles (budgeting, commitment, requisitioning, receipt and payment) must lie with different departments or, at a minimum, with different individuals.
Where it is not feasible to segregate these roles, adequate compensating controls approved by an external auditor must be put into place.
The procurement method (informal, invitational, open competitive or non-competitive) of goods and non-consulting services and consulting services should be appropriate to the total cost of the procurement and the market availability.
Procurement Approval Authority Schedule:
Total Purchase Value up to $200
Verbal approval from Program Manager is required. Receipts must accompany expense. Petty Cash may be used in situations where products and/or services are acquired that are not part of established contracts or agreements.
Total Purchase Value up to $5,000
Programs shall receive a quotation from one supplier; complete the details for the purchase and forward quotation to Program Manager for Purchase Order issuance. A written quotation is preferred.
Total Purchase Value between $5,000 and $24,999
Programs shall receive written quotations from three (3) or more suppliers; complete the Purchasing details and forward with all quotations to Director, Corporate Services and Finance for Purchase Order issuance. The method may be invitational or an open competition.
Total Purchase Value between $25,000 and $99,999
Goods: The Centre will obtain three written quotations and/or issue an RFP for bids on purchases of goods. For advertised goods, there is no minimum for required bids.
Services: The Centre will obtain three written quotations and/or issue an RFP for bids for service. The method may be invitational or an open competition. The Director, Corporate Services and Finance will complete the Purchase Order. The Chief Executive Officer will approve purchases/contracts.
Total Purchase Value in excess of $100,000
Goods: The Centre will obtain three written quotations and/or issue an RFP for bids on purchases of goods. The method may be invitational or open competition. For advertised goods, there is no minimum for required bids. Niagara Children’s Centre Board of Directors will approve purchases/contracts in excess of $100,000.
Services: The Centre will obtain three written quotations and/or issue an RFP for bids for service. The method may be invitational or an open competition, and will be determined by the Director of Corporate Services and Chief Executive Officer. For advertised goods, there is no minimum for required bids. Niagara Children’s Centre Board of Directors will approve purchases/contracts in excess of $100,000.
No goods or services shall be split into lower dollar values to avoid compliance with the Centre Policy on Procurement of Goods and Services, this Procedure or its related Guidelines. The Total Purchase Value shall include the cost of associated warranties, maintenance and service agreements, and applicable taxes.
Competitive Procurement Thresholds
The Centre must conduct an open competitive procurement process where the estimated value of procurement of good or services is $121,200 or more. The exemptions must be in accordance with the applicable trade agreements.
Organizations must competitively procure consulting services irrespective of value. The exceptions must be in accordance with the applicable trade agreements.
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.
Supplier Pre-qualification
- The Centre, at its option, may choose to pre-qualify vendors. The pre-qualification process requires an assessment by a Selection Committee (composed of three Centre staff managers, including at least one Senior staff member) of the possible bidders based on pre-established criteria which may include:
- brief outline of the size of the firm and range of experience with not-for-profit organizations and/or
- The firms seeking pre-qualification will be required to submit a letter of qualification which responds specifically to the pre-established criteria.
Posting Competitive Procurement Documents
Calls for open competitive procurements must be made through an electronic tendering system that is readily accessible by all vendors.
Timelines for Posting Competitive Procurements
Organizations must provide suppliers a minimum response time of 15 calendar days for procurement of goods and services valued at $121,200 and up to $366,800. Organizations must consider providing suppliers a minimum response time of 30 calendar days for procurements of high complexity, risk, and/or dollar value, and subject to applicable trade agreements.
Bid Receipt Bid submission date and closing time must be clearly stated in competitive procurement documents. Organizations 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.
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.
All criteria must comply with Non-discrimination section of the policy below.
The evaluation criteria are to be altered only by means of addendum to the competitive procurement documents.
Organizations may request suppliers to provide alternative strategies or solutions as a part of their submission. Organizations 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.
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 tie score.
Competitive procurement documents must state that submissions that do not meet the mandatory criteria will be disqualified.
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 nondisclosure of confidential information agreement.
Evaluation MatrixEach 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.
Winning BidThe 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.
Non-Discrimination
Organizations must not discriminate or exercise preferential treatment in awarding a contract to a supplier as a result of a competitive procurement process.
Executing the Contract
The agreement between the Organization 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, and the Organization 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.
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 the Organization and the successful supplier must be defined formally in a signed written contract before the provision of supplying goods or services commences.
Termination Clauses
All contracts must include appropriate cancellation or termination clauses. Organizations should seek legal advice on the development of such clauses.
When conducting complex procurements, organizations should consider, as appropriate, the use of contract clauses that permit cancellation or termination at critical project life-cycle stages.
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.
Contract Award Notification
For procurements valued at $121,200 or more, Organizations 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 the Organization was executed. Contract award notification must list the name of the successful supplier, agreement start and end dates, and any extension options.
Supplier Debriefing
For procurements valued at $121,200 or more, Organizations must inform all unsuccessful suppliers about their entitlement to a debriefing.
Organizations must allow unsuccessful suppliers 60 calendar days following the date of the contract award notification to request a debriefing.
Non-Competitive Procurement Organizations should employ a competitive procurement process to achieve optimum value for money. It is recognized, however, that special circumstances may require Organizations to use non-competitive procurement.
Organizations may utilize non-competitive procurement only in situations outlined in the exemption, exception, or non-application clauses of applicable trade agreements.
Prior to commencement of non-competitive procurement, supporting documentation must be completed and approved by an appropriate authority within the Organization.
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, Organizations should include a dispute resolution process in their contracts.
For services, organizations 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 and ensure all expenses are claimed and reimbursed in accordance with these rules. Travel Meals and Hospitality
- Ensure that expenses are claimed and reimbursed only where the contract explicitly provides for
- reimbursement of expenses.
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.
Retention and Destruction of Centre Records
Conflict of Interest
Organizations must monitor any conflict of interest that may arise as a result of the members’ of the organization, 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. Conflict of Interest
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.
Section III: Payment Processes and Methods
Where the Centre has or has not established contracts or agreements, the following payment options shall apply:
- Petty Cash – invoices less than $200 with prior approval from Program Manager
- Cheque Requisition with invoice
- Purchase Order
Payment Terms
Standard payment terms of Net 30 days from invoice receipt or satisfactory delivery of goods or services, whichever is later, will be applied unless more favourable payment terms have been negotiated with the supplier.
Pre-Payment
The Centre normally does not allow advance payment or pre-payment.
Where goods and services being acquired are unique and are being produced exclusively for the Centre, the Director, Corporate Services and Finance may authorize supplier prepayment if one or more of the following conditions are met:
- The total prepayment amount requested is less than $10,000;
Section IV: Exceptional and/or Special Circumstances
Sole/Single Source Procurement
In very specific circumstances, only one supplier or consultant may be able or capable of providing goods or services. In these rare or exceptional circumstances, documentation and rationale is required and must be approved by the Director, Corporate Services and Finance or the Chief Executive Officer, in advance of the Centre making any commitment to the supplier/service provider.
Recently quoted goods and services
There are occasions when the Centre may have already sourced goods and services, in order to prepare a grant or funding request. In such cases, the Centre will not be required to re-issue a request for quotations or proposals, upon approval of funding.
Special Circumstances
There may be other circumstances that arise, that require that procurement be conducted without regard to this policy or related guidelines. These factors will be brought forward to the Director of Corporate Services for review. If deemed appropriate, the following will have authority to approve procurement of goods and services without regard to this Policy and Procedure:
- Director of Corporate Services (purchases up to $25,000)
- Chief Executive Officer (purchases up to $100,000)
- Board of Directors (purchases over $100,000)
Controlled Products and/or Hazardous Materials
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 regardless of value.
Section V: Procedure re: Disclosure of Conflicts of Interest
If an individual or corporation has a relationship with the Centre that may be or appear to be not at arm’s length, they shall disclose the nature of the relationship in writing to the Director, Corporate Services and Finance prior to entering into any contract for the provision of goods and services.
Following such disclosure, the Director, Corporate Services and Finance and the Chief Executive Officer shall consider this matter and determine whether the conflict can be waived or otherwise managed.