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Purchasing Procedure

Effective Date: November 2, 2022
Downloadable Version: PDF ICON Purchasing Procedure
  This document is available in alternate format on request.

General Objectives:

These procedures establish the principles for and the context within which the Purchasing activity will take place for the Humber College in accordance with the Purchasing Policy.

The purpose of these Procedures is to provide Humber staff, customers, and vendors with guidelines, which govern the planning, acquisition, and management of goods and/or services.

Ensure that Humber complies with the Broader Public Sector (BPS) Purchasing Directive, the Canadian Free Trade Agreement (CFTA), the Comprehensive Economic and Trade Agreement (CETA), and all other applicable local, provincial, and federal laws, and internal policies.

Principles:

Purchasing Services shall be responsible for the purchase of all materials, equipment, and services required by Humber, except the acquisition of goods or services for commercial sale or resale; partnership agreements, affinity programs, employee agreements, sponsorships or memberships, transactions involving payments to regulatory agencies, land leases and acquisitions, insurance, in accordance with the Purchasing Policy, and the Signing Authority Policy.

Purchasing Services shall not make any personal purchases on behalf of employees or members of Humber.

Humber is committed to working collaboratively with other Colleges and Universities, and, where applicable, other public sector agencies, to develop cooperatives and shared services in a wide range of operations.

Humber is committed to working collaboratively with other public agencies to develop co-operatives and shared services where such are beneficial for Humber. Where Humber agrees to participate and such collaborative initiatives involve a lead agency, the procurement procedures of the lead agency shall apply. Collaborative initiatives are subject to Humber’s legal review and Signing Authority Policy.

When procuring goods, services and facilities, Humber will incorporate, where applicable, criteria and features related to accessibility by or for disabled individuals. If applicable, purchasing documents will specify the desired accessibility criteria to be met and provide guidelines for the evaluation of proposals in respect of those criteria.

Where there is a need to incorporate accessibility criteria and features when procuring or acquiring specific goods, services, or facilities, Humber will provide a written explanation, on request. If Humber determines it is not practicable to incorporate accessibility design, criteria and features when procuring goods, services or facilities, Humber will provide a written explanation, upon request. Such requests can be sent to: purchasing@humber.ca.

Following these Procedures enables Humber staff to deal with Vendors in a fair, open and equitable manner and provide customers with the right item, at the right time, at the best price, and in all cases with consideration to Social Procurement and Sustainability.

Definitions:

Bid: means a vendor submission in response to Humber’s procurement opportunity.

Bid Solicitation: means a formal request for Bids including a Request for Tender (RFT), Request for Quotation (RFQ), Request for Proposal (RFP), Request for Information (RFI), or a Request for Expression of Interest (RFEI).

Bidder: means the Vendor who submits a bid.

Blanket Purchase Order/Standing Order: means any contract for the purchase of goods and/or services that will be required frequently or repetitively but where the exact quantity required may not be precisely known at the time during which the goods and/or services are to be delivered. The Blanket Purchase Order or Standing Order will have a maximum limit on the total price or value of all goods and/or services and the time period will be fixed under such contract.

College: means Humber College Institute of Technology and Advanced Learning and University of Guelph Humber. Also referred to as Humber.

Canadian-European Union Comprehensive Economic and Trade Agreement (CETA): means an international free trade agreement that expands opportunities between suppliers in Canada and the European Union.

Canadian Free Trade Agreement (CFTA): means an agreement between the Canadian provinces whose objective is to reduce and eliminate, to the extent possible, barriers to the free movement of persons, goods, services and, investments within Canada and to establish an open, efficient and stable domestic market.

Capital: means any good with a value equal to or greater than $5,000 (exclusive of taxes) with a useful life of more than one year. Capital items are assets that are recorded by the Finance Department.

Competitive Bid Process: means the purchasing process by which potential Vendors 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 an Open Competitive Procurement.

Contract: means an agreement between two or more competent people or business entity to perform or not to perform a specific act or acts. A binding contract has six essential elements: offer, acceptance, considerations, intention, legality and, capacity. Acceptance may be either in writing or by performance unless the offer requires that acceptance be in writing.

Consulting Services: means Professional Services involving the provision of expertise or strategic advice that is required by the College. These are the “thinkers” and their advice often results in a report with recommendations presented for consideration and decision making. e.g. Management Consulting (i.e. helps improve performance via current state analysis and strategic planning), IT Consulting (i.e. Development of Technology Strategy), Technical consulting (i.e. Actuarial, Engineering, Health and Social Sciences, Employment, Realty and design).

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

Goods: means Physical or tangible items that can be produced, bought, and sold.

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. Professional services may include the supply of a service requiring specialized knowledge and skill, often requiring a license, certification, or registration. e.g. Speakers, Trainers, Reviewers (Faculty, Research, etc.), IT/Tech Services, HR Staffing and Financial/Money Management.

Payment Terms: means the period of time before payment becomes due following an invoice from a Vendor. 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 College 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 Humber’s online requisition system.

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

Purchase/Purchased/Purchasing/Procurement: means the acquisition of any legal or equitable interest, right or title in goods and/or services or the making of any contract or offer for goods and/or services and includes the lease of goods and/or services.

Purchase Card or P-Card: means a credit card issued to authorized staff that is used to purchase one-time, low-cost goods, not already covered by blanket purchase order contracts.

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

Request for Expression of Interest (RFEI): means a request by Humber seeking responses from potential Vendors for the purpose of determining the interest of the marketplace in providing goods and/or services contemplated to be procured by Humber.

Request for Information (RFI): means a request by Humber seeking responses from potential Vendors for the purpose of gathering information from the marketplace to develop a scope of work or services contemplated to be procured by Humber.

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).

Vendor: means an individual or business entity that provides Goods and/or Services that submits a Bid in response to a Humber’s procurement opportunity.

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.

Responsibilities:

Purchasing Services provides one centralized purchasing point. Its responsibilities include:

  • The acquisition of supplies, materials, equipment and designated services;
  • The process of formal documentation for the Purchasing and the supply and delivery of goods and services, including but not limited to, professional services, construction projects, etc.
  • The acquisition of goods in accordance with standards, as applicable, that has been set by Humber, (i.e. computers that are supported by the Information Technology Department). Exception(s) may be made in conjunction with the acquiring department.
  • Disposal of surplus equipment, in conjunction with the Facilities Management Department
  • Disposal of equipment with memory (i.e. computers), in conjunction with Information Technology Department
  • Purchasing’s guiding principles are to focus on service to Humber faculties, departments and staff; commitment to effective and efficient operations; openness to acceptance of customers and Vendors who will assist in meeting Humber’s objectives; fairness in the allocation of costs; and governance and management according to ethical purchasing and operating practices
  • To achieve this overall objective, Humber staff adheres to authorities and controls set forth in this purchasing procedure.

Compliance:

No purchase of goods and/or services shall be made where quantity or delivery is divided or in any other manner arranged so that the price or value of the goods and/or services is artificially reduced.

Where the goods and/or services of the same kind or type are required in connection with one project, all of those goods and/or services shall be included in determining the price or value and the appropriate process to be followed.

No goods and/or services shall be requisitioned unless the goods and/or services are legitimately required for the benefit of Humber.

To the best of the person’s knowledge and belief, the funds for the purchase of goods and/or services are available within an approved budget.

This purchasing procedure shall apply to the purchase of goods and services with a requisition, purchase order and/or Purchasing Card.

Code of Ethics:

Any personal interest that may impinge or might reasonably be deemed by others to impinge on Humber employee’s impartiality in any matter relevant to their duties should be immediately declared to their employer.

The confidentiality of information received in the course of duty must be respected and should not be used for personal gain; information given in the course of duty should be true and fair and not designed to mislead.

While considering the advantages to the Humber employee of maintaining a continuing relationship with a Vendor, any arrangement which might prevent the effective operation of fair competition should be avoided.

No employee shall knowingly participate in acts of discrimination or harassment towards any person with whom they have business relations.

Disciplinary Action: An employee who fails to act in accordance with the provisions of these Procedures will be subject to appropriate disciplinary action up to and including termination of employment. Humber, the Public, and the Business Community must have confidence in the integrity of Humber employees.

Signing Authority Schedule:

All purchase must follow the approved sourcing process as per the Purchasing Policy with the appropriate approvals outlined in the Signing Authority Policy.

Determining Procurement Process:

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

  1. What is being purchased:
    1. 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.
    2. Identify the requirements and specifications for the purchase. Purchasing Services can assist the Purchaser to refine the requirements and specifications.
  2. The Procurement Value:
    1. 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 value where possible.
    2. Before making a purchase, the Purchaser must confirm there is a sufficient budget available.
  3. If there is an existing Contract or Vendor of Record:
    1. Before making a purchase, the Purchaser should confirm whether there is an existing Contract or 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:
    1. 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.

Procurement Thresholds and Methodologies:

When the goods/services are not available from a Vendor of Record (VOR) or from an Approved Vendor, the following should be used for guidance:

A. Consulting Services: Regardless of the total procurement value, all consulting services must be competitively bid. A minimum of 3 vendor quotations are required for any engagement under $100,000. Engagements of greater value must be procured using an Open Competitive procurement process.

B. Goods and Non-Consulting Services: Purchases between $0 to $100,000 fall under the invitational competitive procurement. Refer to the table below to establish the appropriate procurement process for various procurement value thresholds:

1. Invitational Competitive Procurement for under $100,000 procurement

Value (exclusive of taxes) Procurement Process Procurement Method
Up to $5,000* One (1) written quote Low Value Purchase Order (LVPO)/ Purchase Card (P-card)**/ Purchase Order
$5,001 – up to $20,000

Minimum One (1) written quote is required

(Obtaining three (3) quotes is optional)

Purchase Order
$20,001 – up to $100,000***

Invitational Competitive Procurement

Minimum three (3) written quotes are required

Purchase Order

*use of Purchasing Card or LVPO is the most recommended method for procurement value of up to $5,000.

**Consulting services are excluded as they have to be tendered for all values; responses to emergency needs are excluded from the normal procurement process.

***Make purchases up to $100,000 with Purchase Order (PO) provided these are supported by a minimum of 3 supplier quotations and a Bid Analysis and Award Template (see Appendix for the template) is completed by the Purchaser and submitted to Purchasing services for review and approval.

For instructions and quote templates, (include link here of finance website) see the link.

2. Open Competitive Procurement for $100,000 or greater in value

The purchase of goods and services at or greater than $100,000 requires open tenders to be issued on a public tendering site for a specified number of days to allow vendors in the marketplace a fair and transparent opportunity, as outlined in the applicable trade agreements and procurement directives. These tenders are facilitated by Purchasing Services and issued on behalf of Faculties, Divisions, and Departments of the College. This Open Competitive Procurement process is also known as the Open Competitive Bid Process.

To start the Open Competitive Bid process please complete the Procurement Request Form. 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 that can be used are:

  1. Request for Quotation (“RFQ”): RFQs are generally used when the specifications are known, and the price is the main or only factor in selecting the successful Vendor. RFQs are widely used for small value procurements but can be used for higher value procurements.
  2. Request for Tender (“RFT”): RFTs are generally required to obtain goods and/or services with a procurement value greater than $100,000, whenever the requirements can be precisely defined, and the expectation is that the lowest Bid meeting the requirements specified in the Request for Tender would be selected for award.
  3. 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 Vendors to view and submit Bids that include pricing and qualitative responses to evaluation criteria set out in the RFP document.
  4. Request for Supplier Qualification (“RFSQ”): A request for Vendors 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 or Pre-Qualified Vendors. The RFSQ is followed by an invitational tender to VORs/ Pre-qualified Vendors called as second stage process. See procurement thresholds below for conducting a second stage process:
Procurement Value* Number of Vendors Required Procurement Method
$0 - $20,000 Minimum of one (1) Purchase Order
$20,001 - $100,000

Minimum of three (3)

Invite all Vendors if the VOR list has less than three (3) Vendors provide evidence of three (3) quotes to Purchasing.

Purchase Order
$100,001 - $250,000

Minimum of five (5)

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

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

Minimum of seven (7)

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

Purchase Order

All communications during the bidding process, including requests for information, between Vendors and Humber must go through Humber’s designated bid administrator. Failing to do so may result in disqualification in the process.

Following the Competitive Bid Process for any of the above procurement types, Bids that are received will be evaluated and scored, and a successful Bid will be selected for award.

Non-Competitive Purchasing:

In extreme cases, when a competitive process is not feasible or possible, the Purchaser might follow the procedure in this section. However, failure to adequately plan is not a sufficient reason to waive the Competitive Bid Process and proceed with Non- Competitive purchasing:

Limited Tendering: There may be circumstances where competition is not possible (Single Source or Sole Source Purchases), in which case, a Non-application Approval form must be completed, and sent to Purchasing Services for review, for proper approval as stated in the Signing Authority Schedule depending on Procurement value. The form should be completed with the appropriate level of detail to support the non- competitive procurement decision (and the selected exemption provision), as it will be referred to in the event of an internal audit review or a Freedom of Information (FOI) request.

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 complete a Non-Application Approval form and submit it to Purchasing Service for proper approval.

Non-competitive Contracts Awards for Goods and Non-Consulting Services

  • Make purchases between $20,001 – up to $100,000 with Purchase Order (PO) or Contractual Agreement provided these are supported by Single/ Sole Source Approval
  • Make purchases from $100,000 upward with Purchase Order (PO) or Contractual Agreement provided these are supported by Single/ Sole Source Approval

No Cost Purchasing:

A “no cost” Purchasing is a Purchasing where the college will not bear any cost. These types of purchasing include:

  1. Revenue generating opportunities, and
  2. Cost pass through to a third party.

"No cost” Purchasing must be acquired in the same manner and using the same Purchasing Process and corresponding approval requirements as Purchasing that have a cost to the college, depending on the value of the no cost Purchasing.

Contracts with no initial costs but commit to future payments should not be considered as “No cost” Purchasing.

Vendor of Record (VOR) 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 an Open Competitive Procurement using the RFSQ document. Upon completion of this Competitive Bid Process, a VOR list of vendors 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 pre-qualified vendors on the VOR list.

Humber can choose to set up a VOR for a category or choose to utilize an Enterprise VOR arrangement managed by Ministry i.e. Ministry of Public and Business Service Delivery (MPBSD) or a collaborative sourcing organization like Ontario Education Collaborative Marketplace (OECM). It is required that a second stage evaluation process is completed to choose a successful vendor from these VORs.

Once the VOR list is established, a second stage process is initiated to obtain Bids when a purchase is required from these pre-qualified Vendors. The number of Vendors that are invited to the second stage process is outlined in Table 2 above.

If Bids from multiple Vendors 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 Vendors on the VOR list required by the Procurement Thresholds and these Vendors are invited to submit a Bid which responds to the evaluated criteria set out in the SOW document.

Social and Sustainable Procurement:

Procurement planning and activities should be undertaken with a view to promoting social, environmental and financial sustainability.

Every purchase has intended and unintended economic, environmental and social impacts. Sustainable Procurement is about consciously considering those impacts and seeking to make intentional positive community contributions.

The Sustainable Procurement provides a framework for our procurement activities in order to create intentional positive environmental, social, and economic impacts, while maintaining open, fair and transparent Procurement processes.

Procurement will identify and integrate environmental sustainability requirements into procedures and supply chain management processes to achieve and maintain climate resilience including emissions management, reduced pollution, energy efficiency and waste minimization.

Humber will implement social value considerations for existing procurement opportunities, provided any such social value considerations are consistent with the address to social and economic issues that are descriptive in social impact outcomes related to employment, training and skills development, social value supply chain, and community development.

At Humber, we strive to have an inclusive supply chain. Our goal is to advance equality of opportunity globally to businesses owned by women, Aboriginal people, minorities/visible minorities, LGBTQ+, people with disabilities, veterans and service- disabled veterans, small businesses. By providing equal access to procurement opportunities to qualified suppliers, we enhance the levels of quality, service, and overall value to the organization. We encourage submissions, bids and, proposals from all diverse suppliers.

The college shall purchase goods and services that demonstrate achieving value for money which includes consideration of business needs, timing, optimum total lifecycle cost, supply and procurement method with fairness, transparency and accountability.

Humber also participates in supplier diversity events and conferences that include speaking engagements, panel discussions, webinars, and workshops.

Appendix 1: Quick Reference Chart PO versus PCard Reimbursement

Purchase Type Banner Purchase Requisition (PO) Banner Low Value Purchase Order (LVPO) Chrome River Expense Reimbursement Corporate Credit Card Contact Renovations & Capital Works (CDFM) Contact IT Contact HR Not Allowable
One-time Expense, not including consulting costs and IT equipment > $5,000 x              
Recurring Expense, not including consulting costs and IT equipment > $5,000 x              
One-time expense, not including consulting costs, furniture, or IT equipment < $5,000   x   x        
Office and Academic Furniture         x      
IT Equipment, including Desktops, Laptops, Tablets, Mobile Phones, Software, Copiers, Projectors           x    
Consultants or Consulting Services, any value $0 or more, limited time specific engagement x              
Independent Contractor Services (Confirmed with ICON Questionnaire), any value $0 or more x              
Staffing (including temporary help), any value $0 or more             x  
Honorariums or Guest Speaker Fees x              
Out-of-pocket business expenses     x          
Recurring monthly cloud-based software subscription *fees less than $3,500 annually       x        
Airfare x     x        
Hotel x     x        
Personal or non-College expenditures               x
Cash Advances from Corporate Credit Card               x
Alcohol               x
Traffic and Parking Tickets               x
Credit Card Fees, Bank Interest               x
Social events that do not constitute providing hospitality on behalf of the College               x
Expenses on behalf of friends or family members               x
Smart watches and glasses               x

Appendix 2: Procurement Request Form

Appendix 3: Non-Application Approval Form

Appendix 4: Bid Analysis and Award Form