Procurement Procedure

1. Purpose 

Loyalist College is committed to ensuring that its procurement activities abide by the Ministry of Finance’s procurement directives. All publicly funded goods and services, including construction, consulting services, and information technology, are acquired through a process that is open, fair, transparent, sustainable, and ethical. The college also ensures that all suppliers and contractors who perform services for the college comply with all applicable municipal, provincial, and federal laws and regulations. 

This procedure outlines the steps to take when procuring goods and services on behalf of Loyalist College. 

2. Application  

This procedure applies to the entire college community, including third-party buying groups who may acquire goods and services on the college’s behalf. 

3. Purchase Requests 

3.1 Internal clients who require goods and services (other than those items listed in the exception list) initiate the process by submitting a request through TOPdesk and providing as much detail as possible on their request/requisition. 

3.2 Once Procurement Services obtains quotes, they will summarize and forward them to the requestor or budget holder as appropriate. 

3.3 Procurement Services will proceed with the request once they obtain the required approval and accurate budget details. 

3.4 Signing authority is delegated to different authorities depending on the purchase expense levels. Refer to the Approval Authority Schedule (AAS) in FIN 200 Procurement Policy and FIN 507 Approval and Execution of Contracts and Invoices Policy. 

3.5 Procurement Services requires all new employees with signing authority, or those promoted into positions that grant signing privileges, to complete the Signature Form attached to FIN 507 Approval and Execution of Contracts and Invoices Policy. To identify the limits to purchasing approval, refer to the Approval Authority Schedule (AAS). The approver(s) is responsible for ensuring that sufficient funds are available. 

3.6 Before processing, Procurement Services will forward all requests to the appropriate administrator for approval. For example: 

• Requests considered to be part of, or that affect, college buildings or grounds are approved by the Facilities Services administrator. 
• Computer-related requests are approved by the IT administrator. 
• Promotional items or items with the college logo/crest are approved by the Marketing administrator. 
• Health concerns are approved by the Health and Safety Coordinator. 

3.7 All requests for electrical or mechanical goods must be Canadian Standards Association (CSA) Electrical Safety Authority (ESA) or ULC (Underwriters Laboratories Canada) approved for institutional use and labelled accordingly. 

4. Quoting Requirements 

A competitive procurement process is required for all goods and services acquisitions other than items listed under section 22 on Exceptions. Procurement Services can determine the most appropriate method of obtaining quotes. Postings for services or goods over $100,000 must allow suppliers a minimum response time of 15 calendar days.  

4.1 Request for Supplier Qualifications (RFSQ) is used to gather information about a supplier’s capabilities and qualifications to prequalify suppliers for an immediate production or service requirement, or to identify qualified candidates in advance of expected requirements. It can be used at the discretion of the Procurement Services department. The RFSQ does not obligate the college to call on any supplier because of the prequalification to supply materials or services.  

4.2 A Request for Information (RFI) or Request for Expression of Interest (RFEI) can be used by the Procurement Services department as required but it must not prequalify a potential supplier nor influence their chances of being the successful proponent on any subsequent opportunity.  

4.3 Procurement Services is not required to quote a good or service if a comparable good or service has been purchased through a formal competitive Request for Quotes (RFQ) process within the past year; once determined that the College would not substantially gain from an undertaking new RFQ process.  

4.4 When Procurement Service’s analysis indicates that it would be beneficial to the college, goods or services may be purchased from a qualified vendor of record (VOR) available to the broader public sector, from approved suppliers through a Ministry Agreement, or from part of a Collaborative Marketplace or recognized buying group. 

4.5 An RFQ is used to request supplier responses to supply goods or services based on stated delivery requirements, performance specifications, pricing, and terms and conditions. 

5. Purchasing Types 

Standing orders (SO) or vendors of record (VOR)

• Procurement arrangements that authorize the college to select from one or more prequalified vendor(s). These types of purchases are typically determined by way of a formal process for a defined period with terms and conditions, including pricing, for items that are purchased regularly from the same vendor(s) for a determined period when it is to the college’s advantage. When there is more than one VOR, a second-stage process must be established for fair distribution of goods and services. 
• The budget holder is responsible to verify that invoices match the negotiated pricing and terms established on the SO or VOR. 

Single sourcing

• Utilized when only one supplier can meet the requirements of the procurement and the goods and non-consulting services cannot be obtained through an open procurement procedure.  

Sole sourcing

• Utilized when only one supplier can meet the procurement requirements.  
• For both single/sole source acquisitions, the individual department that can best justify the sole/source acquisition has to complete a Sole/Single Source Justification (SSJ) form and get it approved by the appropriate authority levels. Requests for values over $10,000 require Senior Vice-President, Corporate Services and CFO approval on the SSJ form. President approval is required for consultants. The Procurement Services Department remains responsible for verifying justification and sending out a formal request for quotation, proposal, or tender and for evaluating single-source submissions.  

Purchase order

• A legal document from Procurement Services with a written offer to a supplier that authorizes the procurement of goods and services. It formally states all terms and conditions of a proposed transaction and commits college funds. Procurement Services will issue the purchase order and forward it to the successful supplier with Loyalist College terms and conditions and provide a copy to the internal client.  

6. Evaluating Proposals 

6.1 Bid receipt deadline

• Loyalist College must ensure that the bid’s closing date is a normal working day (Monday to Friday, excluding provincial and national holidays). Submissions that are delivered after the closing date and time will not be considered. 

6.2 Evaluation criteria

• An appropriate authority must develop, review, and approve the criteria for evaluation before the competitive procurement process begins. Competitive procurement documents (e.g., RFQs) must clearly outline mandatory, rated, and other criteria that will be used to evaluate submissions, including the weight of each criterion. Mandate criteria (e.g., technical standards) should be kept to a minimum to ensure that no bid is unnecessarily disqualified. Evaluators should allocate the most weight to the cost component of the evaluation criteria. All criteria must comply with section 7.2.14 of the Broader Public Service (BPS) Procurement Directive, Non-Discrimination. The evaluation criteria can be altered only through an addendum to the competitive procurement documents that are sent to all suppliers.  
• The college may request that suppliers provide alternative strategies or solutions as part of their submission. The college must establish criteria to evaluate alternative strategies or solutions before starting the competitive procurement process. Alternative strategies or solutions must not be considered unless they are explicitly requested in the competitive procurement documents.  

6.3 Evaluation team

• Members must adhere to the procedure provided to evaluators. There are restrictions related to the confidential information shared through the competitive process and team members must refrain from engaging in activities that may create or appear to create a conflict of interest. Loyalist evaluation team members must also sign a conflict-of-interest declaration and nondisclosure agreement form.  

6.4 Evaluation process

• Competitive procurement documents must fully disclose the evaluation methods and process that will be used in assessing submissions, including how it will resolve tie scores. Competitive procurement documents must state that submissions that do not meet the mandatory criteria will be disqualified.  

6.5 Evaluation matrix

• Procurement Services must ensure that each member of the evaluation team has completed an evaluation rating sheet (or “matrix”) for each of the proponents. A consultant who was hired to provide expertise and is asked to complete the evaluation for each proponent my be exempted from completed the rating sheet. Records of evaluation scores must be auditable. Evaluators should be aware that everything said or documented must be fair, factual, and fully defensible and may be subject to public scrutiny.  

6.6 Selection process

• The submission that receives the highest evaluation score and meets all mandatory requirements set out in the competitive procurement document should be declared the winning bid unless unforeseen circumstances are discovered during reference checks. 

6.7 Tie-score process

• The method to resolve a tie score must be identified in the evaluation criteria of the RFP, including weighting, if applicable. Tie-break criteria are also subject to the rules of non-discrimination. A flip of the coin will determine the successful supplier in the case of a tie score unless another option for tie-break criteria is established by the evaluation team which is more appropriate for the type of acquisition.  

6.8 Non-discrimination

• In compliance with the Agreement on Internal Trade (AIT), the college must refrain from any discrimination or preferred treatment in awarding a contract to the preferred supplier from the competitive process. For example, preferring a local supplier would be a form of discrimination and not allowed.  

7. Contract Award 

7.1 Executing the contract

• The agreement between the college and the successful supplier must be defined formally in a signed written contract before the provision of the goods, services, or construction commences. In situations where an immediate need exists for goods or services and the college and the supplier are unable to finalize a contract, a letter of intent, memorandum of understanding (MOU), or interim purchase order may be used. This will allow for the immediate needs to be met, at the same time as negotiations take place for finalizing the contract.  

7.2 Finalizing the contract

• The contract must be finalized using the form of agreement/contract that was released with the procurement document terms and conditions. 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 college and the successful supplier must be defined formally in a signed written contract before the supplier commences to supply goods or services.  

7.3 Termination and cancellation clauses

• All contracts must include appropriate cancellation or termination clauses. When conducting complex procurements, the college should consider, as appropriate, the use of contract clauses that permit cancellation or termination at critical life-cycle stages of the project.  

7.4 Contract extensions

• The term of the agreement and any options to extend the agreement must be set out in the procurement document. Changes to the term of the agreement may change the procurement value. The appropriate approval authority’s prior written approval is necessary before changing contract start and end dates. Extensions to the term of the agreement beyond what is set out in the procurement document are considered non-competitive procurements and the college must provide written justification and seek CET-level approval authority before proceeding.  

7.5 Award notification

• The college must post in the same manner as the procurement documents were posted the name of the successful supplier. Notification about a contract award must occur only after the agreement between the successful supplier and the organization has been signed. The contract award notification must include the agreement start and end dates, including any options for extension and the total agreement value.  

7.6 Vendor debriefing notification

• The college must inform all suppliers who participated in the procurement process of their entitlement to a debriefing.  

7.7 All contracts for goods, non-consulting services, and consulting services shall be subject to competitive quotations every five years except in unusual circumstances, in which case the process could be deferred by not more than a one- or two-year extension. The term must be established in the RFP document at the onset.  

7.8 The college should employ a competitive procurement process to achieve optimum value for money. However, special circumstances may require the college to use non-competitive procurement. The college may utilize non-competitive procurement only in situations outlined in the exemption, exception, or non-application clauses of the AIT or other trade agreements. Before starting a non-competitive procurement, the department representative must complete supporting documentation and have it approved by an appropriate authority within the college.  

7.9 The college must communicate the bid protest procedures for suppliers in all competitive and procurement documents to ensure that any dispute is handled in a reasonable and timely fashion. The college must ensure that its process is compliant with the bid protest procedures set out in the AIT and the Ontario-Quebec Procurement Agreement.  

7.10 The Procurement Services department will manage the supplier and contractor’s performance evaluations on contracts that are valued over $100,000.00 over the term of the contract.  

8. Bid Dispute Resolution 

The supplier must notify the college of a dispute or claim within 14 calendar days of the dispute or cause of action arising. If the dispute claim cannot be resolved through negotiation between the supplier and Procurement Services to the satisfaction of both parties, the parties may decide to submit the matter to arbitration following the laws of Ontario. The college will ensure that this process is compliant with the bid protest procedures set out in the AIT and the Ontario-Quebec Procurement Agreement. 

9. Standardization of Products and Services 

9.1 When appropriate, Procurement Services will assemble a reference group based on the product or service to review and establish standards for it. After a thorough evaluation of the specifications and a competitive bidding process has been completed, a standard will be established when appropriate. Standard contract terms are applicable.  

9.2 Procurement Services is able, during the contact’s term, to perform evaluations of the standard if product specifications/deviations to the standard are presented without going through a reference group review.  

9.3 Recommendations from the reference group will be submitted to the Senior Vice-President Corporate Services and CFO for approval. 

10. Use of Rental and College Vehicles 

Please refer to FIN 504 Business Expense Reimbursement Policy for further details. 

11. Online Purchases 

11.1 Online purchases are permitted when necessary. 

11.2 When practical, online purchases will be ordered from established college suppliers. Online credit card purchases are also permitted in instances online suppliers do not have flexibility in their established terms and conditions, within the purchasing limits set in the FIN 200 Procurement Policy. Foreign purchases and dollar value credit card restrictions do not apply to Procurement Services purchases. 

11.3 It is understood that a supplier’s terms and conditions are accepted when ordering online and that Loyalist College terms and conditions are not enforceable. 

12. Corporate Credit Card 

Capitalized equipment, computer hardware and software, furniture, hazardous materials, on-site services and out of country purchases are prohibited on the college credit card. Refer to FIN 206 Purchasing Card Policy for further details. 

13. Supplier Selection Process 

13.1 Evaluating and selecting suitable suppliers, in consultation with the user department, as appropriate, is the responsibility of Procurement Services. 

13.2 Supplier(s) suggested by the requisitioner will be taken into consideration but in no way bind Procurement Services or limit the supplier selection process. 

13.3 Suppliers can be removed from the bidders’ lists if they are deemed unqualified based on past performance and/or unresolved issues documented by the budget holder and on file with Procurement Services. In the case of problems with a supplier, the budget holder must provide a detailed written complaint and share it with the supplier, along with a notice of cancellation and removal from the supplier list. 

14. Suppliers’ Legal and Insurance Requirements  

14.1 In the cases of services contracted through the purchase order process, Procurement Services will be responsible for obtaining the required documentation from suppliers/contractors to ensure liability protection for the college while suppliers/contractors are on college premises. Procurement will ensure that all contractors are compliant with the Accessibility for Ontarians with Disability Act (AODA). A current certificate of insurance and WSIB certificate is required before starting any work on college property.  

14.2 During a construction project contractors will provide current WSIB certificates with each invoice. All on-site contractors must return the signed Notice to Contractors before starting any work (where applicable). 

15. Receipt of Goods 

15.1 Individual departments should not receive goods directly (other than satellite campuses). Goods received in this way should be forwarded to the Receiving Department for proper processing. 

15.2 All packing slips should be forwarded to Procurement Services for record-keeping purposes and for closing orders that are complete. 

16. Procuring Hazardous Materials 

16.1 It is the requisitioner’s responsibility to identify that a purchase request contains hazardous material (i.e., any material that falls under the Hazardous Product Act). 

16.2 For any designated substance or new hazardous material, the requisitioner must include a current Material Safety Data Sheet (MSDS) with the requisition, either electronically or in hard copy. 

16.3 Procurement Services will forward any request for new hazardous material or designated substances to the Health and Safety Coordinator for approval before ordering the material. 

16.4 For reorders of materials already listed on a department’s Hazardous Chemical Inventory, Procurement Services will ask the supplier to include a current MSDS with the shipment.  

16.5 Purchase orders for hazardous materials will include a statement that materials must comply with WHMIS regulations and that the product is shipped according to the Transportation of Dangerous Goods Act. 

16.6 Specimens of Risk Group 2 (RG2) or higher may not be purchased for the college unless Containment Level 2 (CL2) requirements can be met. 

17. Sustainable and Environmental Procurement 

17.1 Loyalist College supports environmentally responsible products and services. Notwithstanding price, the college may give preference to environmentally responsible products and services, when such values are established in the evaluation criteria. 

Examples of environmental consideration given to products and services may include: 

• durability, reusability, and amount of recycled content; 
• environmentally friendly production processes; 
• products that eliminate or reduce waste; 
• products that are independently recognized for meeting high environmental standards; 
• manufacturers and suppliers that have a registered environmental management system; 
• enhanced health and safety standards; and 
• reduced disposal fees and/or life cycle costs. 

17.2 Life cycle costing

• This type of evaluation takes into consideration the total cost of performing the intended function over the lifetime of the task or piece of equipment. Such considerations could include initial costs, the frequency of repair, downtime costs, skilled labour requirements, material waste, cost of consumables (when applicable), maintenance and repair contracts, energy use, length of useful life, and salvage value or disposal costs. 

17.3 Preference should be given to electronic devices that are Electronic Product Environmental Assessment Tool (EPEAT) registered and energy efficient. 

17.4 All bidding documents (RFPs, RFBs, etc.) should include a statement that includes sustainability in the evaluation criteria of the product and/or service being sourced. 

17.5 When sourcing clothing, the RFx should ask clothing suppliers to demonstrate their adherence to fair labour and responsible sourcing practices such as those outlined by the Fair Labor Association, by providing their code of conduct or providing evidence of their affiliation with the Fair Labor Association or similar standard-setting body for apparel suppliers.  

17.6 All paper purchases should have postconsumer recycled content of 30 percent or greater whenever possible and/or FSC-certified paper. 

18. Return Material Authorization 

18.1 The user will advise Procurement Services via email indicating the purchase order number, the item being returned, the current condition of the item and packaging, its serial number (if applicable), and the reason for the return. 

18.2 Procurement Services is responsible for obtaining a return authorization from the supplier, completing the Return Material Authorization (RMA) form, and assembling the supporting documentation. 

18.3 The RMA form is forwarded to Shipping/Receiving to accompany the return shipment and to Accounts Payable if credit or charges are expected. 

18.4 When documents are fully prepared, Procurement Services will contact the user department to have the item returned to Shipping/Receiving for return to the supplier. 

18.5 Procurement Services will utilize the RMA number for any associated costs. Costs over $200.00 require a written quote from the supplier and approval from the budget holder. 

19. Consumable Fees 

19.1 Products purchased for consumable fees must be requested using the Consumable Fee Template by Program and Year form. 

19.2 The budget holder is responsible for approving product the order accuracy and order quantities following the timelines established with student registration before Procurement Services proceeds with the order. 

19.3 Adequate time should be provided to ensure the receipt of products before the academic year begins. 

19.4 Once items have been ordered, faculty can request a sales receipt with the amount that students will be invoiced. The sales receipt can be obtained and distributed to students when they receive their consumable items (at the program coordinator’s discretion). 

19.5 AIT product for resale exemption applies to consumable purchases. The competitive process is at the discretion of Procurement Service. 

20. Lease Agreements 

20.1 Leases may be utilized when they are deemed appropriate. 

20.2 The decision to enter into a lease agreement for a particular purchase and the lease structure (operating or capital) will be determined and approved by the Senior Vice President Corporate Service, CFO, or designate.  

20.3 Specific lease negotiations will be carried out by Procurement Services. 

21. Disposal of Obsolete, Surplus, and Scrap Equipment 

21.1 All departments of the college will notify Procurement Services of any surplus or obsolete assets with a replacement value greater than $100.00. Such a notification requires the completion of an Obsolete/Surplus Disposal Form on TOPdesk. Completion of this form is essential for the management and control of college assets.  

21.2 Procurement Services will first consider redeployment of the asset elsewhere in the college at no cost to the accepting department.  

21.3 Procurement Services will determine the best method to dispose of undeployable assets, given available time, storage, and resources, including but not limited to any of the following:  

• trading in;  
• selling through auction, college yard sale, internally advertised to the college, or publicly advertised to the community at large;  
• donating to nonprofit organizations; 
• scrapping the asset, in an environmentally responsible manner, avoiding landfill whenever possible; or  
• destroying in a manner that maintains confidentiality and is verified with a Certificate of Destruction (if applicable, for assets with inappropriate content).  

21.4 Disposal of obsolete hazardous materials/chemicals will be carried out in alignment with all provincial and environmental legislation, with the assistance of Facilities Services.  

21.5 Applicable taxes will be collected on all sales.  

21.6 All proceeds from the sale of surplus fixed assets are to be credited to General College Revenues unless the sale is of assets purchased with student fees. 

22. Exceptions 

The FIN 200 Procurement Policy and Procedure does not apply in certain cases. The listed exceptions can be coordinated by the users. Procurement Services will assist users if necessary or when it is advantageous to the college. The exemptions include: 

• Utilities 
• Customs 
• Subscriptions and membership dues 
• Newspapers/advertising 
• Travel arrangements 
• Conferences, seminars, and course registration fees 
• Purchase of food and beverages for the college restaurant 
• Purchase of entertainment, food, and beverages for the college pub 
• Facilities — emergency building maintenance 
• Library online database 
• Alumni Services 
• Admission — buses for campus tours when arrangement is made by high schools 
• Outside counselor fees for students / International Credit Assessment Service of Canada (ICAS) review 
• Lease agreements for off-campus facilities 
• Land leases and real property acquisitions 
• Employees hired through Human Resources 
• Employee benefits 
• Courier and postal services 
• Rental costs up to $3,000.00 (e.g., tables, tablecloths, coat racks, helium tanks)  
• Emergency repairs 
• Professional development and training courses or workshops 
• Employment Ontario — wage subsidies 
• Honoraria 
• Taxes 
• International Student Recruitment Services, including associated fees and expenses 
• Contract royalties 
• Interpreters 
• Equipment donations, which must be reviewed by College Advancement 
• Coaches 
• Referees 
• Tutoring service 

23. Related Documents and Links

• FIN 200 Procurement Policy
• FIN 206 Purchasing Card Policy 
• FIN 504 Business Expense Reimbursement Policy
• FIN 507 Approval and Execution of Contracts and Invoices
• LIB 101 Records Retention Policy 

24. References 

• Accessibility for Ontarians with Disabilities Act  
• Broader Public Sector Accountability Act 
• Broader Public Sector Procurement Directive  
• Freedom of Information and Protection of Privacy Act 
• Hazardous Product Act 
• Transportation of Dangerous Goods Act