Purchasing Procedure

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