Procurement Policy

PURPOSE

  • Compliance to the Ontario Broader Public Procurement Directive
  • To outline responsibilities for each stage of the procurement process.

SCOPE

Includes: Reena employees involved with ordering goods and services  (hereby referred to as staff)

Excludes: Contracted service providers, volunteers and students and Reena employees who are not involved with ordering goods and services

Goods and services means any goods, construction and services, including but not limited to IT and consulting services.

POLICY STANDARDS

Reena will ensure that goods and services are acquired through a process that is open, fair and transparent.  This policy provides a framework and mandatory requirements for sourcing, contracting and purchasing activities including approval segregation and limits, competitive and non-competitive procurement, conflict of interest and contract awarding.

Segregation of Duties

Reena management will ensure the segregation of at least three of the five functional procurement roles: Requisition, Budgeting, Commitment, Receipt and Payment. Responsibilities for these roles must lie with different departments or, at a minimum, with different staff at Reena.

  1. All requisition for the procurement of goods or services “MUST” be submitted in writing to the Procurement Department. To also included Department or GL for which this item is to be expensed too.
  2. All Purchase Request or Purchase Order will be provided by staff of the Procurement Office.
  3. All Receipt of Goods “MUST” be confirmed by the Supervisor/Manager of the requesting Department/Program.
  4. Approvals for the Payment of Invoices for Goods or Services “MUST” be received from the Managers/Designate to allow for process of Payment.
  5. Accounting/Finance will process all payments for invoices in accordance with the 3 way matching process. Request/Order/Receipt of goods or service.

Approval Authority

Managers up but not including 5,000 (With the exception of the Procurement Manager or his designate)

Executive Management Leads up to but not including $25,000 with certain exceptions after consultation/advice of the Procurement Manager or on the execution of contracts/agreements as a result of competitive bids

Goods and Non-Consulting Services

Reena has established an approval authority schedule (AAS) for procurement of goods and non-consulting services. This identifies, for each of the functional procurement roles identified in the Segregation of Duties Section, authorities that are allowed to approve procurements for different dollar thresholds, as approved by the Board.

Prior to commencement, any procurement of goods and non-consulting services will be approved by an appropriate authority in accordance with the AAS.

Prior to commencement, any non-competitive procurement of goods or non-consulting services must be approved by an authority one level higher than the AAS requirements for competitive procurement.

Consulting Services

Prior to commencement, any procurement of consulting services must be approved in accordance with the Procurement Approval Authority Schedule for Consulting Services below.

Procurement Approval Authority Schedule (AAS) for Consulting Services

Procurement Method

Procurement Value

Approval Authority

Invitational Competitive

$0 up to but not including $100,000

See AAS Schedule

 

Open Competitive

Any value

See AAS Schedule

 

Non-competitive*

$0 up to but not including $1,000,000

President, CEO or Designate by Sole Source Waivers

 

$1,000,000 or more

Board of Directors by Sole Source Waivers

 

Staff must not reduce the overall value of procurement (e.g., dividing a single procurement into multiple procurements) in order to circumvent the approval requirements of the AAS or the Procurement AAS for Consulting Services.

Competitive Procurement Thresholds

Reena will conduct an open competitive procurement process where the estimated value of procurement of goods or services is $100,000 or more. The exemptions must be in accordance with the applicable trade agreements. Reena will competitively procure consulting services irrespective of value. The exemptions must be in accordance with the applicable trade agreements.

 

Total Procurement Value

Means of Procurement

Recommended/Required

$0 up to but not including $100

Petty cash

Recommended

$100 up to but not including $3,000

Procurement card (P-card)

Recommended only after consultation/advice of Procurement department Staff

$3,000 up to but not including $10,000

Purchase order

Required

$10,000 up to but not including $100,000

Invitational competitive procurement (minimum of three suppliers are invited to submit a bid)

Required

$100,000 or more

Open competitive process

Required

Consulting Services

Total Procurement Value

Means of Procurement

Recommended/Required

$0 up to but not including $100,000

Invitational or open competitive process

Required

$100,000 or more

Open competitive process

Required

Staff must not reduce the overall value of procurement (e.g., dividing a single procurement into multiple procurements) in order to circumvent competitive procurement thresholds.

Information Gathering

Where results of informal supplier or product research are insufficient, formal processes such as a Request for Information (RFI) or Request for Expression of Interest (RFEI) may be used if warranted, taking into consideration the time and effort required to conduct them. A response to RFI or RFEI must not be used to pre-qualify a potential supplier and must not be used to influence the chances of the participating suppliers from becoming the successful proponent in any future or subsequent opportunity.

Supplier Pre-Qualification

The Request for Supplier Qualification (RFSQ) enables Reena to gather information about supplier capabilities and qualifications in order to pre-qualify suppliers for an immediate product or service needed or to identify qualified candidates in advance of expected future competitions.

Terms and conditions of the RFSQ document must contain language that disclaims any obligation of Reena to call on any supplier to provide goods or services as a result of pre-qualification.

Posting Competitive Procurement Documents

Calls for open competitive procurements must be made through an electronic tendering system that is readily accessible to all Canadian suppliers.

Timelines for Posting Competitive Procurements

Reena will provide suppliers a minimum response time of 15 calendar days for procurement and/or supply of goods and services valued at $100,000 or more.

Reena will consider providing suppliers a minimum response time of 30 calendar days for procurements of high complexity, risk, and/or dollar value. Schedule and time line will be outlined and included in the formal bid request document that will be posted.

Bid Receipt

Bid submission date and closing time must be clearly stated in the competitive procurement documents. The clock to be used will be located in the Procurement Office and the format for compliance will be EST (Eastern Standard Time reflective of 00.00.00).  Reena will set the closing date and time of a competitive procurement process on a normal working day (Monday to Friday, excluding provincial and national holidays, Jewish holidays). Submissions that are delivered or received after the closing date and time will not be accepted and be returned unopened by registered mail or trackable courier delivery.

Evaluation Criteria

Evaluation criteria will be developed, reviewed and approved by the appropriate lead staff at the commencement of the competitive procurement process. Competitive procurement documents must clearly outline mandatory, rated, and other criteria that will be used to evaluate submissions, including weight of each criterion.

Mandatory criteria (e.g., technical standards) should be kept to a minimum to ensure that no bid is unnecessarily disqualified. Maximum justifiable weighting must be allocated to the price/cost component of the evaluation criteria.

All criteria must comply with Non-discrimination (of the Directive) Section below.

The evaluation criteria are to be altered only by means of addendum to the competitive procurement documents.

Reena may request suppliers to provide alternative strategies or solutions as a part of their submission. Criteria to evaluate alternative strategies or solutions will be put in place prior to commencement of the competitive procurement process. Alternative strategies or solutions must not be considered unless they are explicitly requested in the competitive procurement documents.

Evaluation Process Disclosure

Competitive procurement documents must fully disclose the evaluation methodology and process to be used in assessing submissions, including the method of resolving tie score. Competitive procurement documents must state that submissions that do not meet the mandatory criteria will be disqualified.

Evaluation Team

Each competitive procurement processes will require an evaluation team responsible for reviewing and rating the compliant bids.

The evaluation team members will be made aware of the restrictions related to utilization and distribution of confidential and commercially sensitive information collected through the competitive procurement process and refrain from engaging in activities that may create or appear to create a conflict of interest. Evaluation team members will be required to sign a conflict-of-interest declaration and non-disclosure of confidential information agreement.

Evaluation Matrix

Each evaluation team member must complete an evaluation matrix, rating each of the submissions. Records of evaluation scores must be retained for audit purposes. Evaluators must ensure that everything they say or write about submissions is fair, factual, and fully defensible.

Winning Bid

The submission that receives the highest evaluation score and meets all mandatory requirements set out in the competitive procurement document must be declared the winning bid.

Non-Discrimination

Reena will not discriminate or give preferential treatment in awarding a contract to a supplier as a result of a competitive procurement process for which the supplier was not the winning bidder.

Executing the Contract

The agreement between Reena and the successful supplier must be formally defined in a signed written contract and/or agreement (sometimes referred to as Contract A) before the provision of supplying goods and/or services commences.

Where an immediate need exists for goods or services, and Reena and the supplier are unable to finalize the contract as described above, an interim purchase order may be used. The justification of such decision must be documented and approved by an appropriate delegated authority or a waiver document to indicate the reason for the delegation to undertake the purchase.

Establishing the Contract

The contract must be finalized using the form of agreement that was released with the procurement documents (normally referred to Contract A). 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 Reena and the successful supplier must be defined formally in a signed written contract before the provision of supplying goods or services commences.

The jurisdiction for all contracts/agreements entered into will be governed by the Laws of Ontario.

Termination Clauses

All contracts must include appropriate cancellation or termination clauses and where needed the use of contract clauses that permit cancellation or termination at critical project life-cycle stages.

Reena, where needed, will seek legal advice on the development of such clauses.

Term of Agreement Modifications

The term of the agreement and any options to extend the agreement must be set out in the competitive procurement documents. An approval by an appropriate or delegated authority must be obtained before executing any modifications to the term of agreement. Extending the term of agreement beyond that which is set out in the competitive procurement document will amount to a non-competitive procurement where the extension affects the value and/or stated deliverables of procurement of the goods or service.

Contract Award Notification

For contract award notification of all procurement of goods and/or services valued at $100,000 or more, Reena will post, in the same manner as the procurement documents were posted. The notification must be posted after the agreement/contract between the successful supplier and the Organization was executed. Contract award notification should list the name of the successful supplier, agreement start and end dates, and any extension options.

Supplier Debriefing

For procurements valued at $100,000 or more, Reena will inform all unsuccessful suppliers about their entitlement to a debriefing.

Reena will allow unsuccessful suppliers 60 calendar days following the date of the contract award notification to request a debriefing.

Non-Competitive Procurement

Reena will employ a competitive procurement process to achieve optimum value for money. It is recognized, however, that special circumstances may require Reena to use non-competitive procurement.

ROLES AND RESPONSIBILITIES:

Supervisors/Managers:

  • submits requests for the sourcing and procurement of goods and/or services for their assigned department and/or programs within their level of approvals to purchase and acceptable to make recommendations to the source for purchase

Procurement Staff:

  • identify, source goods or service, create, issue and follow on all purchase requests, placement of Purchase Orders as per approved with selected suppliers
  • may approve invoice for processing for payment in the confirmation of the delivery of goods and completion of services in consultation with the managers
  • place orders for the supply of goods or services for Reena.   (All other staff and contracted consultants may not place a request for purchase of goods or services  nor place an order directly with any supplier for goods and services on behalf of Reena)

Procurement Card Program

PURPOSE
The purpose of this policy is to establish the requirements for:

  • obtaining and using a procurement card (P-card);
  • providing an efficient and cost-effective method of procuring and paying for supplies, services, and travel; and
  • reducing petty cash requests, travel advances, out-of-pocket travel expenses.

SCOPE
This policy applies to Reena employees who have access to a Procurement card.

  • Policy Procedures and Requirements
  • Obtaining a Procurement Card

Cards will only be issued to employees if authorized by their superior. The spending limit is set at a default amount of $1,000.00 per month, which must be approved by the employee’s supervisor. Any changes in spending limit must be approved by the supervisor. Employees are expected to read, sign and abide by the Employee Agreement Form before they receive their card.

Card Usage
Although the card is issued in the individual’s name, it remains the property of Reena and must only be used for Reena purchases. The employee is responsible for the card’s security and the transactions made with the card.  The card can be used at any vendor or merchant that accepts Visa and is in an approved Merchant Category Code.  Card charges may be audited and/or cancelled at any time. 

Denials
If a transaction is denied, the employee is expected to contact the issuing bank’s customer service, using the toll-free number on the back of the card. The employee should be prepared to provide the merchant’s name, date, dollar amount, and approximate time of the attempted purchase. The issuing bank will investigate the denial, and provide a report to the employee, as required.

Receipts
The employee is responsible for obtaining a detailed receipt for all transactions. A credit card statement is not acceptable. Receipts must be attached to the monthly statement. Personal meals may only be charged while in approved travel status and the receipt must be attached to the travel voucher.

Reconciliation and Payment
The monthly statement itemizes all card transactions during the previous billing cycle. The employee must verify all transactions, sign and date the statement. The employee’s supervisor must review and approve all transactions and sign the statement before forwarding it to the accounting office.  Statements will be filed and retained according to the agency’s policies and procedures.

 Billing Disputes – items in dispute
The employee must contact the vendor to resolve any errors or charges not recognized. If the vendor agrees that an error has occurred, the account must be credited. The disputed transaction would be identified on the statement as a reminder that the item is pending a resolution.

If the vendor does not agree that an error has been made, the employee must contact the issuing bank and identify the disputed charge. A disputed transaction must be identified and submitted to the Vendor using the Cardholder Dispute Form (attached), within 60 days of the transaction date.

The amount due on the next monthly statement will be reduced by the amount of the disputed item until the transaction dispute is resolved.  If a dispute is not submitted in writing within 60 days of the transaction date, the agency is responsible for resolving the dispute with the vendor or paying for the disputed item.

Lost or Stolen Cards
The card company must be notified immediately if a card is lost or stolen.

Enforcement
Consequences for violations of this policy include, but are not limited to: cancellation of Procurement Card privileges, reimbursement for any improper use, disciplinary action up to and including termination, and/or possible criminal charges.

Gasoline Card Program

DEFINITION
Reena-owned vehicles are used to provide transportation for individuals for approved budgeted outings and appointments.

POLICY
To ensure accountability and transparency and to safeguard taxpayers dollars in compliance with MCSS requirements, this policy establishes the requirements for managing and using gas cards for efficient and cost-effective fuel purchases when conducting company business.

SCOPE
This policy applies to all Reena employees who operate company-owned vehicles. 

PROCEDURES / REQUIREMENTS / RESPONSIBILITIES

 A. Reena Residences must:

  • Exclusively use the Petro Canada Superpass fuel card.
  • Designate House Supervisors to oversee its fuel card procedures at locations.
  • Complete the Gas Card User Employee Agreement form for each Reena employee using the gas card, and send the signed form to the Reena Finance and Purchasing Department.
  • Ensure the fuel card is used appropriately as instructed by House Supervisors. Procedures and responsibilities must include the following:
    • Collect and supply monthly vehicle odometer readings and vehicle driver information. This will be used to ensure vehicle’s monthly fuel transactions and fuel consumption is appropriate for the vehicle.
    • Forward monthly Gas Card receipts to Reena Accounting by the last day of each month, via email or inter-company mail.
    • Resolve billing disputes when contacted by Reena Finance and/or Purchasing.
  • Comply with established internal controls when using fuel cards. Control procedures include but are not limited to:
    • Limiting the number of transactions during a certain time period (day/week/month)
    • Limiting the dollar amount per transaction
    • Restricting purchases to specific hours of the day or days of the week
    • Requiring odometer reading at the point-of-sale.
    • Restricting to purchases of gasoline and minor automobile items (e.g., windshield washer)

B. Authorized Reena Departments or Residences will:

  • Assign a gas card to each company-owned vehicle showing the residence name on the front of the card.
  • Require each employee authorized to operate a company-owned vehicle to read the Gas Card Policy and sign the Gas Card Use Employee Agreement Form (attached). They will then be assigned a Personal Identification Number (PIN) for the card.
  • Forward a copy of the signed Gas Card Use Agreement Form to Reena’s Purchasing Department.
  • Retain the signed Gas Card Use Employee Agreement Form for two years after the employee’s termination date.
  • Be assigned a unique PIN for each authorized user.
  • Adhere to/comply with internal controls in accordance with Reena procedures.
  • Immediately notify Reena Finance and Purchasing Department to cancel gas cards that are lost, stolen, or assigned to a vehicle that is transferred, sold or declared surplus.

C. Employees authorized to use gas cards must:

  • Read and adhere to the Gas Card Policy.
  • Sign the Fuel Card Use Employee Agreement Form acknowledging their responsibilities for fuel card use.
  • Sign out the Petro Canada Superpass Gas Card on the Gas Card Sign Out Sheet Daily.
  • Always enter the pin number and vehicle Odometer reading when purchasing gas with the Gas Card.
  • Always return all receipts to the House Supervisor daily.
  • Keep the Gas Card locked in the glove box of the vehicle, or other authorized location when not in use.
  • Return the Gas Card to the Supervisor after use, or daily, if required.
  • Complete the Driver Vehicle Checklist and return it to the Supervisor as required.
  • Note:  Employees are prohibited from using premium grade fuel unless required by the vehicle’s operation manual. 

 D. Supervisors of authorized employees must:
Review and approve monthly fuel card transactions for each authorized employee under their supervision and ensure that use of fuel card is consistent with the employees’ work assignments.

REQUEST FOR EXCEPTIONS
The authorizing official may submit a request for an exception to any part of this policy to the Reena Finance and Purchasing Department. The Reena Finance and Purchasing Department will determine if an exception is granted based on the following criteria:

  • The circumstances are non-traditional and require unique accommodation; or
  • The exception will not compromise internal controls.

VIOLATIONS
Each Reena Residence is responsible for policy enforcement and investigating all alleged violations and complaints.  Residential Supervisors will take appropriate disciplinary action including, but not limited to, cancellation of an employee’s fuel card privileges, termination and/or possible criminal charges. It is the responsibility of the Residential Supervisor to notify Reena Purchasing if any violations have occurred.  Reena Purchasing reserves the right to take any action necessary if a violation is suspect.

 DEFINITIONS

  • Authorized Employee: An employee designated to use a fuel card.
  • Authorizing Official: An individual(s) designated by Reena Finance and Purchasing Department to authorize and cancel gas cards, manage internal controls, and maintain a record of the agency’s exceptions.
  • Card Provider: Petro Canada is Reena’s official fuel card provider.
  • Personal Identification Number (PIN): A unique number assigned to a Residence House Gas Card.

CLOSING
For questions about this policy, contact Reena Purchasing Department at: 905-763-8254 Ext. 3049.

Gas Card Use Employee Agreement

  1. I have read, understand and will comply with the Gas Card Policy.
  2. I understand that I am required to use regular grade gasoline and I am prohibited from using premium grade fuel unless required by the vehicle operations manual.
  3. I agree to use the card for all fuel purchases from Petro Canada Stations.
  4. I will immediately notify the authorizing official if a card is lost or stolen or if my PIN is compromised.
  5. I understand that I am required to comply with internal control procedures.
  6. I agree not to share my Personal Identification Number (PIN) with any other person.
  7. I understand that I can only use the card for fuel purchases and minor car related needs, (i.e. windshield washer fluid) for Reena owned vehicles.
  8. If I misuse the card by making personal purchases, I authorize Reena to deduct from my salary, or from other monies owed to me, an amount equal to the total of the personal purchases. I also agree to allow Reena to collect any amounts owed by me even if Reena no longer employs me.
  9. I understand improper use of this card may result in disciplinary actions, including termination of employment and/or criminal action.
  10. I understand Reena may terminate my card use privileges at any time for any reason

 

Employee Signature

 

Authorizing Official’s Signature

 

 

 

Employee Printed Name

 

Authorizing Official Printed Name

 

 

 

Date

 

Date

 

Ontario Broader Public Sector (BPS) Supply Chain Code of Ethics

Goal: To ensure an ethical, professional and accountable BPS supply chain.

I. Personal Integrity and Professionalism

Individuals involved with Supply Chain Activities must act, and be seen to act, with
integrity and professionalism. Honesty, care and due diligence must be integral to all
Supply Chain Activities within and between BPS organizations, suppliers and other
stakeholders. Respect must be demonstrated for each other and for the environment.
Confidential information must be safeguarded. Participants must not engage in any
activity that may create, or appear to create, a conflict of interest, such as accepting gifts or favours, providing preferential treatment, or publicly endorsing suppliers or products.

II. Accountability and Transparency

Supply Chain Activities must be open and accountable. In particular, contracting and
purchasing activities must be fair, transparent and conducted with a view to obtaining the best value for public money. All participants must ensure that public sector resources are used in a responsible, efficient and effective manner.

III. Compliance and Continuous Improvement

Individuals involved with purchasing or other Supply Chain Activities must comply with this Code of Ethics and the laws of Canada and Ontario. Individuals should continuously work to improve supply chain policies and procedures, to improve their supply chain knowledge and skill levels, and to share leading practices.