Final–October 25, 2012

Standard Operating Procedure

Subject:OISE Purchasing Guidelines

Issued by:CAO’s Office

Date:October 25, 2012

Purpose:

The purpose of this Standard Operating Procedure (SOP) is to:

  1. Establish a purchasing protocol that is both compliant with the existing policies of the University and relevant to OISE’s needs.
  2. Maintainconsistency of practice across all OISE departments/units.

Resources:

  1. UofT’s Governing Council policy on Approval & Execution of Contracts & Documents
  1. Uof T Purchasing Guidelines:

Roles and Responsibilities:

Principal Investigator (PI) or Unit Head: The PI or Unit Head (Chair or Department Manager) is at all times responsible for ensuring that the policies of the University and that of OISE are adhered to. The PI or Unit Head is responsible for approving purchases under $5,000.

Chief Administrative Officer: The Chief Administrative Officer (CAO) works with OISE’s senior administration in providing leadership and strategic direction and ensures the efficient & effective management of OISE’s resources. The CAO is responsible for approving purchases $5,000 or more.

Business Officer: The business officer is the primary administrative lead in the procurement of goods or services through the processing of U-shop orders, vendor invoices, purchase orders, and purchase requisitions.

Procurement Services. Procurement Services is responsible for reviewing all purchase requisitions $25,000 or more to ensure compliance with University policies. It also takes the primary lead when issuing RFPs.

Process:

  1. General Purchasing Objectives.

The following objectives have been identified by the University in developing its purchasing guidelines:

  • The university obtains the best value for money by incurring the lowest cost in the fulfillment of specified needs with appropriate levels of quality and service
  • The university utilizes a fair and open process when calling for, receiving, and evaluating quotations and tenders
  • The university will meets its statutory, legal and ethical obligations in the acquisition of goods and services by purchase or lease; and
  • The university shall employ trained staff skilled in purchasing techniques including negotiating, contractual terms and conditions, cost reduction techniques, and cooperative buying processes.
  1. Purchasing Principles
  • Planning - Goods and services should be acquired after consideration of needs, alternatives, timing, and availability of funds.
  • Sourcing - The process by which suppliers compete for University business shall be open, fair, consistent, and non-discriminatory.
  • Purchasing - Goods and services shall be acquired competitively from qualified suppliers to meet specified needs and to achieve the best value for money expended.
  • Accountability - Approvals shall be obtained and documentation shall be retained for review and auditing.
  1. Purchasing Thresholds and Required Level of Approval. The following thresholds are the established purchasing thresholds for OISE:

Goods, Non-Consulting Services, Construction & Renovations
Total procurement value before taxes / Means of Procurement / Approvals Required
$1 – 4,999.99 / U-Shop, certified invoice, P-Card, Petty Cash (up to $100) / PI (for Research Accounts)
or
Unit Head (for Operating Accounts)
$5,000 - $24,999.99
(for OISE Operating Funds) / U-Shop (for Tier 1 vendors), PO (with 2 quotes). / Unit Head & CAO
$5,000 - $24,999.99
(for externally funded projects – i.e., research, donations, etc). / U-Shop (for Tier 1 vendors), PO (with 2 quotes). / PI or Unit Head
$25,000 - $99,999.99 / U-Shop (for Tier 1 vendors), PO (with 3 quotes). / CAO & Procurement
$100,000 or more / Public Tender (aka RFP) / CAO & Procurement
Consulting Services*
Total procurement value before taxes / Means of Procurement / Approvals Required / Approvals Required (if Sole Sourcing)
$1 - $99,999.99
(for OISE Operating Funds) / Certified Invoice or Payment via HRIS (with 3 quotes) / Unit Head & CAO / University President
$1 - $99,999.99
(for externally funded projects – i.e. research, donations) / Certified Invoice or Payment via HRIS (with 3 quotes) / PI or Unit Head / University President
$100,000 or more / Public Tender (aka RFP) / CAO & Procurement / University Business Board
  • Consulting Services is defined as the provision of expertise or strategic advice that is presented for consideration & decision making
  1. Purchasing Process for Goods and Services
  2. Purchases under $5,000. It is recommended that departments use UShop for purchases up through $4,999.99. Use of the P-Card is also recommended. Payments through certified invoices are allowed but not in cases where U-Shop or P-Card may be used.

Advisory: In order to take advantage of university’s preferred rates, it is recommended that purchases be made directly with the University’s preferred vendors. Therefore, expense reimbursements for goods and services purchased through the use of personal funds are discouraged.

  • Purchases from $5,000 to $24,999.99. All purchases made under OISE’s operating accounts and $5,000 or more require the approval of the CAO. Therefore, it is recommended that departments consult with the CAO when contemplating any purchasesthat are $5,000 or more. In addition, at least 2 quotations shall be obtained from qualified suppliers. Oral quotes are accepted but not recommended. In the event of oral quotations, detailed notes must be kept on file such as vendor contact, date of oral discussion, product information & price, and other relevant terms and conditions. Quotes must be attached to the PO and kept on file by each department. Once approved, it is recommended that the purchase be made through UShop (if Tier 1 vendor) or through the issuance of Purchase Orders.
  • Purchases from $25,001 to $99,999.99. All purchases made under OISE’s operating accounts and $5,000 or more require the approval of the CAO. Therefore, it is recommended that departments consult with the CAO when contemplating any purchases that are $5,000 or more. In addition, at least 3 written quotations shall be obtained from qualified suppliers. Quotes must be attached to the PO and kept on file by each department. Once approved, it is recommended that the purchase be made through UShop (if Tier 1 vendor) or through the issuance of Purchase Requisitions. UofT’s Procurement Services shall review and give final approval for the requisition once it is satisfied that the departments have complied with the aforementioned requirements.
  • Purchases of $100,000 or more. All purchases made under OISE’s operating accounts and $5,000 or more require the approval of the CAO. Therefore, it is recommended that departments consult with the CAO when contemplating any purchases $5,000 or more. In addition, purchases of this magnitude require an open public competition (aka Request for Proposal (RFP)). Due to the nature of purchases in this category, it is recommended to allow ample time to gather the necessary information to create the RFP package and allow sufficient time to post this tender and allow potential vendors adequate time to submit a response.
  1. Purchasing Process for Consulting Services

Under the Ontario Broader Public Sector (BPS) procurement directive, the definition of consultants and consulting services are as follows:

Consultant = a person/entity that under an agreement, other than employment agreement, provides expert or strategic advice & related services for consideration & decision making

Consulting Service = provision of expertise or strategic advise that is presented for consideration & decision making

A minimum of 3 quotes is required for any consulting services that fit the above mentioned definition.

Exceptions: Competitive quotations and tenders are not required for goods or services where:

  • The only supplier is a department, agency, or utility of the federal, provincial, regional, or municipal government
  • A regulatory authority has approved the price or rate, or
  • The purchase is for media advertising time or space

Where the acquisition of scientific equipment of a highly specialized nature is available from only one supplier, one quotation is acceptable provided the acquisition of said equipment is approved by a Principal, Dean, or Vice-Dean of Research (or equivalent). The Chief Financial Officer or the Director of Procurement Services must approve all other exceptions to the above requirements for quotation and tendering.

  1. Professional Services

Professional services are services provided by licensed professionals such as engineers, architects, land surveyors, lawyers, etc. The Directive has a provision that allows us to use these professional services non-competitively (i.e. not requiring competitive quotes or issue RFPs. However, we are required to document each time we contract these professional services. The documentation can be achieved by selecting the ‘licensed professional’ condition in the sole source form and having both the sponsor and 1-up signoff.

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