Purchasing Procedures – September 30, 2014

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PURCHASING PROCEDURES

Procedure

Type:

Management

Initially

Approved:

September 1,

2008

Procedure

Sponsor:

VP, Administrative

Services

Last

Revised:

September 30,

2014

Administrative

Responsibility:

AVP, Finance and

Commercial

Operations

Review

Scheduled:

May 2025

Approver:

Executive Leadership Team

PROCEDURES

SUPPLY CHAIN SERVICES RESPONSIBILITIES

1.1

The Supply Chain Services department is responsible for the management of all

purchasing activities on behalf of the University. Supply Chain Services has the

authority to design and manage purchasing programs, practices and procedures.

1.2

Operational departments may carry out purchasing initiatives for specific

commodities or low value items within the parameters of established procedures

or programs. Supply Chain Services retains the authority to change the

parameters of any procedures or programs to create operational efficiencies or

safeguard University resources.

DEPARTMENTAL RESPONSIBILITIES

2.1

Budget Managers are responsible for the implementation of this Policy to the

extent they have been delegated authority as detailed in the Signing and

Contractual Commitment Authority Policy by the Board of Governors.

2.2

It is the responsibility of Budget Managers to share this document and all related

procedures and forms with all faculty/departmental personnel who are involved in

the purchasing process.

2.3

The requisitioning department shall be responsible for preparing functional and

technical specifications for the goods and services to be acquired. Due

consideration should be given to price, total life cycle cost, quality, delivery,

service, warranties, and other factors which may be relevant to the purchase.

2.4

Faculties and Departments have a responsibility to:

Purchase from contracted or preferred vendors when those vendors are

able to meet the requirements of the goods or service being purchased.

Utilize suppliers and service providers that have been awarded

institutional contracts as a result of tender or request for proposal

agreements.

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follow the associated procedures to the Purchasing Policy, including the

Purchasing Card Procedures and the Sustainable Purchasing Guidelines.

CODE OF ETHICS

3.1

University staff have a responsibility to maintain and practice the highest standards

of business ethics, professional competence, and courtesy with all procurements.

3.2

Supply Chain Services staff shall adhere to the code of ethics provided by the

Purchasing Management Association of Canada.

APPROVAL AUTHORITY

4.1

Prior to initiating and/or authorizing any purchasing transaction, an employee must

have such authority delegated to them. Purchase requisitions must bear the

proper budgetary signature approvals as outlined in the Signing and Contractual

Commitment Authority Policy.

4.2

The purchase of computer and telecommunication equipment requires approval

as per the Purchase of Computer and Telecommunication Equipment Policy.

4.3

The purchase of software requires approval as per the Management of

Microcomputer Software Policy.

4.4

Any purchase (including the purchase of all furniture) that alters or re-purposes the

physical facilities or attaches to a building must have the approval of the Associate

Vice-President, Facilities Management or designate.

4.5

Supply Chain Services shall delegate the following authority to sign purchase

orders.

Buyers up to a value of $25,000.

Senior Buyers up to a value of $200,000.

Director of Supply Chain Services for all purchase orders in excess of

$200,000.

NON-APPLICATION

5.1

Certain items are excluded from this Policy.

5.2

Specific exclusions include:

Library materials.

Items purchased for resale at the BookStore.

Internal purchases from other Mount Royal University departments (e.g.,

Document Services, Food Services, BookStore).

COMPETITIVE PURCHASING METHODOLOGY

6.1

Goods and Services

$1 - $4,999: Departments must utilize vendors that have been awarded

University contracts or purchase from preferred vendors. A listing of these

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vendors is found on the Supply Chain Services Intranet in MyMRU.

Purchases may be made with purchasing cards or purchase orders. The

requesting department is responsible for identifying competitive vendors

and should obtain three (3) verbal or written quotations prior to purchase.

Quotations for goods purchased repeatedly throughout a year may be

made on a periodic basis.

$5,000 - $24,999: Purchase requisitions must be forwarded to Supply

Chain Services. The requesting department may provide advice in

regards to sourcing. At least three (3) quotations/ proposals should be

obtained by Supply Chain Services. Purchase is from the bidder providing

the best overall bid with respect to price and any other established

evaluation criteria. Purchases may be obtained through the use of a

Competitive Bid process as determined by Supply Chain Services.

$25,000 - $74,999: In consultation with the requesting department, Supply

Chain Services must seek at least three (3) Competitive Bids. Suppliers

are awarded contracts based on the criteria outlined in each bid

opportunity.

$75,000 or greater: In consultation with the requesting department,

Supply Chain Services must seek at least three (3) Competitive Bids. The

New West Partnership Trade Agreement requires the institution to post all

Competitive Bids for goods and services $75,000 or greater through an

electronic tendering system.

6.2

Construction

(Includes the purchase of Architectural or Engineering Services)

All construction and renovation projects must be coordinated through the Facilities

Management Department.

$1 - $24,999: Facilities Management is responsible for sourcing and

making purchase decisions. At their discretion, Facilities Management

may request that Supply Chain Services manage a Competitive Bid

process. Purchases may be made from blanket orders established with

the contractor/trade, purchasing cards or purchase orders.

$25,000 - $99,999: Facilities Management may solicit three (3) written

quotations from pre-qualified contractors or trades. Alternatively, Facilities

Management may request that Supply Chain Services manage a

Competitive Bid process for the purchase.

$100,000 - $199,999: Opportunities must be managed through a

Competitive Bid process by Supply Chain Services. Contractors/ Trades

are awarded contracts based on the criteria outlined in each bid

opportunity.

$200,000 or greater: Opportunities must be managed through a

Competitive Bid process by Supply Chain Services. Contractors/ Trades

are awarded contracts based on the criteria outlined in each bid

opportunity. The New West Partnership Trade Agreement requires the

institution to post all bids for construction $200,000 or greater on an

electronic tendering system.

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6.3

Project Team Initiatives

The Project Manager of any team is responsible for compliance with the

Purchasing Policy and associated procedures. Should the project team

reasonably foresee a purchase being made, it is recommended that they

consult with Supply Chain Services.

The participation of potential vendors/service providers in pre-purchase

activities (consultation, demonstrations, information sharing, etc.) shall not

provide them with any advantage in the procurement process.

In these situations, Supply Chain Services will assist the Project Team

through the use of either a Competitive Bid process, an Advance Contract

Award Notice (through Alberta Purchasing Connection), or other open and

transparent purchasing process.

6.4

Circumstances for Exclusions

By law, procurement processes must not be excluded for the purposes of

avoiding competition between suppliers or in order to discriminate against

suppliers within Alberta or within any other province.

Procurements may be excluded from competition when any of the

following criteria apply:

Where an unforeseeable situation of urgency exists and the

goods, services or construction cannot be obtained in time by

means of open procurement procedures.

ii.

Procurement of goods and services related to cultural or artistic

fields and computer software for educational purposes.

iii.

In the absence of receipt of any compliant bids in response to a

call for competitive bids.

iv.

Contracts between the University and another public body or a

non-profit organization.

Procurement of goods, services and construction that is financed

primarily from donations that are subject to conditions that are

inconsistent with the Agreement on Internal Trade.

vi.

Where construction materials are to be purchased and it can be

demonstrated that transportation costs or technical considerations

impose geographic limits on the available supply base, specifically

in the case of gravel, asphalt or pre-mix concrete.

vii.

Procurement of services that may by legislation or regulation be

provided only by any of the following licensed professionals;

medical doctors, dentists, nurses, pharmacists, veterinarians,

engineers, land surveyors, architects, accountants, lawyers and

notaries.

viii.

Procurement of services of financial analysts or the management

of investments by organizations who have such functions as a

primary purpose.

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ix.

Procurement of financial services respecting the management of

financial assets and liabilities (i.e., treasury operations), including

ancillary advisory and information services, whether or not

delivered by a financial institution.

Where compliance with open competitive bidding provisions

would interfere with the University’s ability to maintain security or

order or to protect human, animal or plant life or health.

xi.

Where a contract is to be awarded under a cooperation agreement

that is financed, in whole or in part, by an international cooperation

organization, only to the extent that the agreement between the

University and the organization includes rules for awarding

contracts that differ from the obligations set out in the Agreement

on Internal Trade.

xii.

Procurement of goods intended for resale to the public.

xiii.

Procurement from philanthropic institutions, prison labour or

persons with disabilities.

SOLE AND PREFERRED SOURCE

7.1

The University is committed to purchasing goods and services in the marketplace.

Purchasing from a sole or preferred source is an exception and permission must

be received from Supply Chain Services.

7.2

The University recognizes that certain goods and services may be available from

only one source, or a vendor may be preferred due to the reasons listed below. In

these instances, the formal competitive bidding process is not practical and may

be precluded.

7.3

Purchase requisitions for sole or preferred source goods or services over $5,000

must be accompanied by a “Sole/Preferred Source Form” detailing the specifics of

the purchase that prevent utilizing the competitive bidding process.

7.4

Purchase requisitions for contractors identified as a sole or preferred source

(construction or renovation) and managed through Facilities Management for

projects over $25,000 must be accompanied by a “Sole/Preferred Source Form”

detailing the specifics of the purchase that prevent utilizing the competitive bid

process.

7.5

The Sole/Preferred Source Form must be submitted for the consideration and

approval to the Director of Supply Chain Services

prior to entering into the

transaction.

7.6

Sole or preferred source purchases may be made when one or more of the

following applies:

To ensure compatibility with existing products, to recognize exclusive

rights, such as exclusive licenses, copy right and patent rights, or to

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maintain specialized products that must be maintained by the

manufacturer or its representative;

Where there is an absence of competition for technical reasons and the

goods or services can be supplied only by a particular supplier and no

alternative or substitute exists;

For the procurement of goods or services that supply of which is controlled

by a supplier that is a statutory monopoly;

For the purchase of goods on a commodity market;

For work to be performed on a leased building or portions thereof that may

be performed only by the lessor;

For work to be performed on property by a contractor according to

provisions of a warranty or guarantee held in respect of the property or the

original work;

For a contract to be awarded to the winner of a design contest;

For the procurement of a prototype of a first good or service to be

developed in the course of and for a particular contract for research,

experiment, study or original development, but not for any subsequent

purchases;

For the purchase of goods under exceptionally advantageous

circumstances such as bankruptcy or receivership, but not for routine

purchases;

For the procurement of original works of art;

For the procurement of subscriptions to newspapers, magazines or other

periodicals; or

For the procurement of real property.

PRE-QUALIFIED VENDORS

8.1

Supply Chain Services may develop a database of pre-qualified vendors for

providers of goods, services or construction. Additional vendors must be given the

opportunity to become a pre-qualified vendor at least once every five years.

SUSTAINABILITY

9.1

Consideration will be given to products that are proven to have a less negative

impact on the environment than other products of the same or similar quality.

Where possible and practical, competitive bidding will consider environmental

impacts (see Sustainable Purchasing Guidelines).

10.

CONFIDENTIALITY

10.1

Vendor submissions, prices and purchase order information are to be considered

confidential information. University staff must not discuss or disclose such

information with other vendors. All inquiries for information regarding competitive

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bidding opportunities or the award or potential award of University business must

be referred to Supply Chain Services.

11.

CONFLICT OF INTEREST

11.1

A conflict of interest exists when in their normal course of duties an employee may

be in a position to make personal gains from an outside interest by their ability to

influence transactions. Employees should also be aware that there may be

instances in which a perception of conflict of interest may exist.

11.2

University employees with a direct or indirect interest in a University vendor, or

who may be perceived to have a direct or indirect interest in a University vendor

must report such interest to the Director of Supply Chain Services. For further

details in regards to conflict of interest, see the Conflict of Interest Policy.

12.

GIFTS AND GRATUITIES

12.1

In serving the interests of the University, no employee shall use his/her authority

of office for personal benefits. To preserve the image and integrity of both the

employee and the University, business gifts other than items of small intrinsic value

should not be accepted.

12.2

Reasonable hospitality is an accepted courtesy of a business relationship. The

frequency and nature of gifts and hospitality should not be allowed whereby the

recipient might be or might be deemed to have been influenced in making a

business decision as a consequence of accepting such hospitality or gifts.

13.

COMPLIANCE WITH LEGISLATED PURCHASING REQUIREMENTS

13.1

Purchasing practices will adhere to purchasing law and all legislated requirements

including, but not limited to the Agreement on Internal Trade and the New West

Partnership Trade Agreement.

14.

COOPERATIVE PURCHASING

14.1

The University may participate in joint purchasing, wherever feasible and practical,

with other public sector organizations.

15.

UNAUTHORIZED PURCHASES

15.1

Any purchase or commitment made in the name of the University without proper

authorization or not in accordance with these procedures will be considered an

obligation of the individual making the purchase. The University retains the right

to refuse payment for such purchases. This includes, but is not limited to

purchases of technology (computers), furniture and software licenses.

16.

DISPOSAL OF SURPLUS MATERIALS

16.1

Surplus and obsolete material(s) are the property of the University (not individual

departments), and as such should be disposed of in a manner that maximizes the

value that the University receives for the materials (see Capital Assets Policy).

17.

PERSONAL PURCHASES

17.1

The University will not purchase any goods or services for the personal use of

University employees or students.

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17.2

Central Receiving will not receive or ship personal items for University employees

or students. Personal items received at Central Receiving may be returned to the

shipper.

18.

LOCAL PREFERENCE

18.1

Local preference may only be permitted in certain circumstances when local

service or support is critical to operational needs; otherwise no preference shall be

provided to local suppliers of goods or services.

19.

RECEIVING OF GOODS

19.1

The responsibility for receipt of all goods is vested with Supply Chain Services.

Where possible and practical, all goods delivered to the University should be

received by Central Receiving. When it is not practical to deliver goods to Central

Receiving (i.e., large items installed on location), a member of the Receiving

Department must be notified by the user department.

19.2

In specific situations, arrangements may be made for direct delivery to the office

or classroom through a contractual arrangement with the vendor.

DEFINITIONS

(1)

Budget Manager:

a Mount Royal University employee with delegated budget

authority for one or more Organizational Units

(2)

Competitive Bid:

a formal process managed by Supply Chain Services and may

include either a Request for Quotation, Request for Proposal or

Invitation to Tender

(3)

Contracted Vendor: a vendor which has an established contract with Mount Royal

University and there is a commitment to make purchase(s) from

the vendor

(4)

Organizational Unit: a department, faculty or like unit of ongoing operational activity

managed by a designated Budget Manager and generally

involving both staff and budgetary resources. Established

organizational units within Mount Royal are represented by a

distinct organizational code in the University’s enterprise

resource planning system.

(5)

Pre-Qualified

Vendor:

a vendor which has been identified by Mount Royal University’s

Supply Chain Services Department as being a suitable vendor

for a particular type of commodity or service

(6)

Preferred Vendor:

a vendor which has been identified by Mount Royal University’s

Supply Chain Services Department as being a suitable vendor

for a particular type of commodity or service

(7)

Policy:

means the Purchasing Policy

(8)

University:

means Mount Royal University

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RELATED POLICIES

•

Capital Assets Policy (and related procedures)

•

Conflict of Interest Policy (and related procedures)

•

Hosting Expense Policy (and related procedures)

•

Management of Microcomputer Software Policy (and related procedures)

•

Contractual Signing Authority Policy (and related procedures)

•

Travel and Expense Policy (and related procedures)

RELATED DOCUMENTS

Alberta Purchasing Connection Advance Contract Award Notice

Canada Revenue Agency Income Tax Bulletin, Employee Fringe Benefits

Purchasing Card Procedures

Sole/Preferred Source Form

Sustainable Purchasing Guidelines

REVISION HISTORY

Date

(mm/dd/yyyy)

Description of

Change

Sections

Person who

Entered Revision

(Position Title)

Person who

Authorized

Revision

(Position Title)

09/01/2008

NEW

09/30/2014

Director, University

Secretariat

01/19/2022

Editorial

Policy Contact &

Related Policies

Policy Advisor

General Counsel &

University Secretary