Internal Strategic Sourcing Policy. Effective: November 6, 2009 Revised: August 19, 2011

Transcription

1 Internal Strategic Sourcing Policy Effective: November 6, 2009 Revised: August 19, 2011

2 TABLE OF CONTENTS 1. PURPOSE APPLICATION AND SCOPE OBJECTIVES Accountability Demand Aggregation Best Practices Transparency Value-For-Money CODE OF ETHICS Personal Integrity and Professionalism Accountability and Transparency Compliance and Continuous Improvement PROCUREMENT process Procurement Planning Supplier Prequalification Consultants and External Lobbyists Competitive Procurement Competitive Procurement Bid Response Time and Receipt Evaluation and Selection Contract Award Vendor Debriefing Non-Competitive Procurement PROCUREMENT APPROVALS Competitive Procurement Thresholds Authority Approval Schedule (AAS) Internal Procurement only see Denise!! Segregation of Duties BPS SUPPLY CHAIN SECRETARIAT (BPS SCS) PROCUREMENT NOTIFICATION PROCUREMENT and contract RECORDS RETENTION CONFLICT OF INTEREST DISPUTE RESOLUTION PROCESS REPORTING ENVIRONMENTAL PROCUREMENT Contract Management RESPONSIBILITIES AND Accountabililties Ministry of Finance -broader public sector supply chain secretariat (BPS SCS) Ontario Education Collaborative Marketplace (OECM) Board of Directors Chair of the Board of Directors President and Chief Executive Officer Director, Finance Director, Strategic Sourcing All OECM Staff OECM Contracted Legal Counsel OECM Internal Strategic Sourcing Policy: Effective January 1, Revised August 19, 2011 Page 2 of 19

3 APPENDIX A: Glossary of Terms A.1 Accountability A.2 Agreement A.3 Agreement on Internal Trade (AIT) A.4 Approval Authority A.5 Approval Level A.6 Award A.7 Bid A.8 Bid Protest A.9 BPS A.10 BPS Procurement Directive A.11 Competitive Procurement A.12 Conflict of Interest A.13 Consulting Services A.14 Construction A.15 Contract A.16 Evaluation Criteria A.17 Evaluation Matrix A.18 Evaluation Team A.19 Freedom of Information and Protection of Privacy Act (FIPPA) A.20 Goods A.21 Offer A.22 Procurement A.23 Request for Information (RFI) A.24 Request for Proposal (RFP) A.25 Services A.26 Single Source A.27 Sole Source A.28 Supplier/Vendor A.29 Supply Chain Management A.30 Transparency A.31 Vendor Debriefing A.32 Value for Money OECM Internal Strategic Sourcing Policy: Effective January 1, Revised August 19, 2011 Page 3 of 19

4 1. PURPOSE The Ontario Education Collaborative Marketplace s (OECM s) mandate is to support collaborative strategic sourcing initiatives in conjunction with Ontario s education sector. OECM will promote the adoption of leading integrated supply chain management practices throughout Ontario s publicly funded educational institutions. OECM will promote and collaboratively lead supply chain initiatives in Ontario s education sector related to the: Generation of sourcing savings and/or quality/service improvement; and Adoption of best practices and standards. 2. APPLICATION AND SCOPE This Policy applies to all sourcing initiatives led by OECM for its internal operations; sector sourcing is covered under a separate policy: OECM External Strategic Sourcing Policy. OECM s internal procurement activities are governed by Canadian Law, relevant Ontario Provincial policies, legislation and trade agreements. Accordingly, OECM s Standards for Internal Strategic Sourcing have been harmonized with the following reference documents: Broader Public Sector Accountability Act, 2010; Broader Public Sector Procurement Directive dated April 1, 2011; Agreement on Internal Trade (AIT); Canadian Law of Competitive Processes and Contract Law; Freedom of Information and Protection of Privacy Act (FIPPA) and Lobbyist Registration Act (2010). This Internal Strategic Sourcing Policy will be reviewed and modified as necessary whenever the reference documents are modified. 3. OBJECTIVES The overall objective of this Policy is to ensure OECM acquires goods and services required to meet the needs of its operations in an economically efficient, open, and competitive manner. OECMs Internal Strategic Sourcing Policy follows principles that balance receiving value-formoney with a process that is transparent and accessible. 3.1 Accountability OECM is accountable for the results of its procurement decisions and the transparency and fairness of the processes. Conflicts of interest, both real and perceived, must be avoided at all times. Relationships must not be created which result in continuous reliance on a particular vendor for a particular product and/or service. OECM Internal Strategic Sourcing Policy: Effective November 6, Revised August 19, 2011 Page 4 of 19

5 3.2 Demand Aggregation OECM will leverage stakeholders buying power by consolidating purchases and aggregating demand to achieve economies of scale and service improvement. 3.4 Best Practices OECM will develop and/or use Best Practices from both the private and public sectors. 3.5 Transparency OECM will ensure that its sourcing processes are open to any and all qualified vendors, and all related processes are conducted in a fair, open and transparent manner. 3.6 Value-For-Money OECM will use a value-for-money approach which aims to deliver products and services at the lowest cost that meets or exceeds OECM s stated requirements. 4. CODE OF ETHICS To remain an ethical, professional, and accountable Supply Chain Organization, all OECM staff will adhere to the following: 4.1 Personal Integrity and Professionalism Honesty, care and due diligence will be integral to all activities; Respect for each other and for the environment will be demonstrated; Confidential information will be safeguarded; and, Staff or advisors will not accept gifts or favours, provide preferential treatment, publicly endorse suppliers or products, or engage in any other activities that may create a real or perceived conflict of interest. 4.2 Accountability and Transparency Supply chain activities will be open and accountable; Sourcing will be conducted in a fair and transparent manner and obtain best value for participating institutions; Resources will be used in a responsible, efficient, and effective manner. 4.3 Compliance and Continuous Improvement Staff will continuously work to improve their skill levels, supply chain policies, processes and practices, share supply chain knowledge, and adopt and share innovative techniques and practices; and All OECM staff will comply with this Code of Ethics and the laws of Canada and Ontario. OECM Internal Strategic Sourcing Policy: Effective November 6, Revised August 19, 2011 Page 5 of 19

6 5. PROCUREMENT PROCESS OECM has adopted the mandatory procurement requirements identified in the BPS Procurement Directive. These are summarized below: 5.1 Procurement Planning OECM will undertake procurement planning as an integral part of the sourcing process to ensure that business needs internal to OECM are met and the objectives of this policy are achieved. OECM will seek to collaborate with other group purchasing and shared services organizations where appropriate to effectively leverage purchasing requirements to achieve better value for money. Prior to seeking procurement approval and selecting a procurement method, OECM will conduct Total Life Cycle Costing analysis to ensure all costs and benefits are considered. OECM will conduct a risk assessment that includes a Privacy Impact Assessment (PIA) and a Threat/Risk Assessment (TRA) prior to undertaking any procurement that may result in the release of personal or sensitive information. Any information that is to be released must comply with applicable privacy legislation. Where results of informal supplier or product research are insufficient, OECM may use a formal Request for Information (RFI) or Request for Expression of Interest (RFEI) if warranted by time and effort. A response to an RFI or RFEI will not be used to pre-qualify a potential supplier and will not influence the chances of the participating suppliers becoming the successful proponent in any subsequent opportunity. 5.2 Supplier Prequalification OECM may use a Request for Supplier Qualification (RFSQ) process to gather supplier information and qualifications in order to pre-qualify suppliers for an immediate good or service or to identify qualified suppliers in advance of future requirements. The RFSQ may be utilized as a prequalifying stage in a two stage procurement process where only qualified suppliers are invited to participate in the second stage. The RFSQ may also be used to prequalify suppliers interested in supplying goods or services during a specified time period in the future. A Vendor of Record (VOR) is created as a result of this type of RFSQ. When establishing a VOR, a second stage selection process will be conducted to ensure value for money is received. OECM Internal Strategic Sourcing Policy: Effective November 6, Revised August 19, 2011 Page 6 of 19

7 5.3 Consultants and External Lobbyists Consulting services must be competitively procured irrespective of value, unless an exemption as contemplated in the AIT applies. Consulting services with a procurement value of $0 up to but not including $100,000 may be procured via an invitational competitive method or an open competitive method. Consulting services with a procurement value of $100,000 or greater will be procured by an open competitive method. The overall value of the procurement will not be reduced (e.g. dividing a single procurement into multiple procurements) in order to circumvent the approval requirements and/or required competitive process. OECM will not procure the services of an external lobbyist on its behalf. (Lobbyist Registration Act amended 2010) 5.4 Competitive Procurement OECM will conduct open competitive procurements for its internal operations. All procurements with a total value equal to or more than $100,000 will be posted on MERX and Biddingo. MERX and Biddingo are the electronic Bid Posting Bulletin Boards used by the Province of Ontario and within the education sector as standard bid posting systems to advertise and post competitive bid documents. All Requests for Proposals (RFPs) posted on MERX and Biddingo must be approved by the OECM President and CEO in accordance with the Delegation of Authority, Internal Sourcing/Procurement Approval Standard Operating Procedure Competitive Procurement Bid Response Time and Receipt OECM will provide vendors a minimum response time of 15 calendar days to submit bids. OECM will provide vendors with a minimum of 30 calendar days for procurements assessed as complex and/or high risk. OECM will only close tenders on normal working days (Monday to Friday, excluding holidays), between the hours of 10 a.m. and 3 p.m. Submissions that are not received at the place and time specified in the bid documents will not be considered further. Any responses received after the official closing time will be returned to the bidder, unopened, at the first opportunity Evaluation and Selection Every competitive bidding process conducted by OECM will include evaluation criteria, including mandatory, rated and other criteria what will be used to evaluate weight of each criterion. Mandatory criteria will be kept to a minimum to ensure that no bid is unnecessarily disqualified. OECM Internal Strategic Sourcing Policy: Effective November 6, Revised August 19, 2011 Page 7 of 19

8 Maximum justifiable weighting will be allocated to the price/cost component of the evaluation criteria. Evaluation criteria will be developed, reviewed, and approved before the competitive process begins. The criteria will be included in the RFP/RFQ document. An evaluation team will be responsible for reviewing and rating the compliant bids. Evaluation team members must sign a conflict of interest/non disclosure declaration prior to the receipt of bids. Each evaluation team member will complete an evaluation matrix for each submission, ensuring that all notes are fair, factual and fully defensible. The Director of Finance (or representative) should be included as a member of the evaluation team and be responsible for verifying financial and/or pricing data contained in the bids. Following the evaluation process, the highest ranked submission(s) (the short list ) that meet all of the mandatory requirements set out in the related procurement document will be selected for further assessment. The short listed submissions will be assessed further against the other evaluation criteria stated in the bid document. The evaluation process will also include an assessment of a vendor s willingness to agree to OECM s contract template included in procurement documents. Evaluation criteria will not be changed or altered once the competitive process has begun unless communicated to the potential proponents via addenda duly posted. The submission(s) receiving the highest evaluation score and meeting all mandatory RFP requirements will be declared the winning bid. Unless expressly requested in the procurement documents, OECM will not consider alternative strategies or solutions proposed by a vendor Contract Award Authorities related to invoice payment and contract award are outlined in Section 6 -Procurement Approvals. OECM will not discriminate against or provide preferential treatment to any vendor during any part of the sourcing process or when contracts are awarded. OECM will enter into a signed written contract with a successful vendor(s) before the provision of goods or services commences. The agreed contract should be based on OECM s standard contract terms and conditions, whenever possible. Vendor contracts should not be used. Should there be an immediate need for goods or services, an interim purchase order may be used. The justification for this will be documented and approved by the appropriate authority. OECM Internal Strategic Sourcing Policy: Effective November 6, Revised August 19, 2011 Page 8 of 19

9 The term of the agreement, appropriate cancellation and termination clauses and any options to extend the agreement will be set out in the procurement document and in the agreement. Should the value of the procurement increase and exceed the original approval authority, OECM will ensure all necessary approvals are in place. If price escalation provisions are included in the contract OECM will ensure that an appropriate framework and controls are included in contract documents. Once the preferred supplier has been selected and the contract has been awarded and signed, OECM will notify all bidders that a contract has been signed and the competitive process is complete. OECM will post the name(s) of the successful vendor(s) on MERX and Biddingo, whenever appropriate. The contract award notification will include the Contract start and end dates including any options for extension and the total Agreement value Vendor Debriefing Debriefings will be scheduled only after a contract between the successful vendor(s) and OECM has been signed. For all procurements OECM will formally invite vendors to an individual debriefing meeting. OECM will only respond to a vendor s specific questions about their bid during the debriefing session. Information about other vendor bids must not be discussed during the debriefing. 5.5 Non-Competitive Procurement Exceptions exist whereby OECM may, subject to appropriate procurement approval authority, use a non-competitive process for Goods, Services or Construction over $100,000. The allowable exceptions to a non-competitive procurement must comply with the Agreement on Internal Trade (AIT). Formal documentation in the form of a business case will be completed in order to support and justify the approval of any exceptions requested. Where approval is being sought for a non-competitive procurement to renew a contract with an existing vendor, approval will be sought prior to the contract end date and in sufficient time to permit an alternative procurement method. Non competitive procurement processes include single and sole source procurements and are defined in Appendix A Glossary of Terms. 6. PROCUREMENT APPROVALS These procurement thresholds are to be used for OECM internal procurements as well as procurements conducted on behalf of education and BPS stakeholders. The approval authority schedule (AAS) is for internal procurements only. Approvals for internal OECM procurements are based on OECM s delegated purchasing authority levels which relate to the total estimated total value of the procurement, including any agreed upon renewals. OECM Internal Strategic Sourcing Policy: Effective November 6, Revised August 19, 2011 Page 9 of 19

10 6.1 Competitive Procurement Thresholds GOODS, NON- CONSULTING SERVICES AND CONSTRUCTION Total Procurement Value (excluding taxes) $0 up to but not including $3,500 $3,500 up to but not including $10,000 $10,000 up to but not including $100,000 Contracting Instrument Purchasing Card Purchasing Card or Purchase Order Purchase Order or Agreement $100,000 or more Purchase Order or Formal Agreement Means of Procurement 3 written quotes wherever practical 3 written quotes or invitational competitive procurement (Minimum of 3 suppliers invited to bid) Invitational, competitive procurement Minimum of 3 suppliers invited to bid) or open competitive process Open competitive process CONSULTING SERVICES Total Procurement Value Contracting Instrument Means of Procurement (excluding taxes) $0 up to but not including $100,000 Formal Agreement Invitational competitive procurement (MINIMUM of 3 suppliers invited to bid) over $100,000 Formal Agreement Open competitive process 6.2 Authority Approval Schedule (AAS) Internal Procurement GOODS, NON CONSULTING SERVICES AND CONSTRUCTION Total Procurement Amount (excluding Delegated Purchasing Authority taxes) Competitive $0 25,000 Director of Strategic Sourcing or Director of Finance according to approved budgets Competitive $25,000 - $50,000 CEO Competitive over $50,000 As delegated by the Board of Directors Non Competitive $0-25,000 CEO Non Competitive over $25,000 (exception based Board of Directors only) OECM Internal Strategic Sourcing Policy: Effective November 6, Revised August 19, 2011 Page 10 of 19

11 CONSULTING SERVICES Total Procurement Amount (excluding taxes) Competitive $0-25,000 Competitive $25,000 50,000 Competitive over $50,000 Non competitive under $25,000 Non competitive over $25,000 Delegated Purchasing Authority Director of Strategic Sourcing or Director of Finance according to approved budgets CEO As delegated by the Board of Directors CEO Board of Directors 1. All non competitive consulting services must have prior written approval by the Delegated Purchasing Authority prior to any action being taken. 2. The BPS Supply Chain Secretariat will be informed and/or consulted as per the requirements of the OECM Transfer Payment Agreement. 6.3 Segregation of Duties OECM recognizes the importance of the segregation of duties as an essential control mechanism within the procurement process. Functional Role Responsibility Accountable Party Requisition To request that an order be placed with a contracted supplier Staff requesting the product or service Commitment Authorize release of an order to a supplier under agreed contract terms Director of Strategic Sourcing, Director of Finance, CEO as per delegated AAS Payment Authorize release of payment to a supplier Director of Finance 6.4 BPS SUPPLY CHAIN SECRETARIAT (BPS SCS) PROCUREMENT NOTIFICATION OECM will notify the BPS SCS of any planned procurements with a final value (including amendments to existing procurements and other related procurements) of $25,000 or more where the project is funded by the BPS SCS. Notification of planned internal procurements will be included in the Sourcing Schedule Report as part of OECM s monthly Transfer Payment Agreement (TPA) Report. 7. PROCUREMENT AND CONTRACT RECORDS RETENTION OECM will retain procurement and related contractual documents and any other related information for reporting and auditing purposes for a period of seven (7) years. OECM will handle, store and maintain supplier s confidential and commercially sensitive information in a secure manner. OECM Internal Strategic Sourcing Policy: Effective November 6, Revised August 19, 2011 Page 11 of 19

12 8. CONFLICT OF INTEREST OECM will consider any conflicts of interest during the procurement process applicable to all employees, advisors, external consultants or suppliers and take appropriate steps to remove any and all conflicts of interest, either real or perceived, from sourcing and procurement processes. All individuals involved in sourcing initiatives must declare all actual or potential conflicts of interest. 9. DISPUTE RESOLUTION PROCESS Suppliers may submit bid protests concerning any aspect of the procurement process. The Director, Strategic Sourcing will oversee all disputes and ensure these are handled in a reasonable and timely manner. 10. REPORTING OECM will maintain contract records and provide reports to the OECM Board of Directors or the BPS SCS as required. 11. ENVIRONMENTAL PROCUREMENT OECM will consider environmental reduction, re-use, and recycling measures in the development of specifications, terms and conditions and Agreements. 12. CONTRACT MANAGEMENT 12.1 A contract management process will be established with each successful supplier upon the signing of the contract(s). OECM will ensure the following provisions, where applicable: Establish an appropriate governance framework to provide contract and service management oversight; Document and monitor vendor performance based on contractual performance metrics; Gather feedback from end users on vendor performance; ensure that payments and any related expenses are made in accordance with contract provisions; Meet with the vendor on a regular basis to review performance and issues; and, Regularly review the risk management strategy based on changing market conditions Prior to the expiry of the contract, OECM will review to assess if contract is to be renewed or if an open competitive procurement process will need to be undertaken. Contracts will be considered for renewal only if a renewal period was specified in the original RFP. OECM Internal Strategic Sourcing Policy: Effective November 6, Revised August 19, 2011 Page 12 of 19

13 13. RESPONSIBILITIES AND ACCOUNTABILILTIES 13.1 Ministry of Finance -Broader Public Sector Supply Chain Secretariat (BPS SCS) Review and approve all new internal procurements of $25,000 or more where the project is funded by the BPS SCS as part of the OECM Transfer Payment Agreement (TPA) see section 6.4. Receive and review notification of all OECM procurements over $25,000. The BPS SCS may carry out spot checks by requesting data or access to records/data of procurements, other expenditures, processes and/or any other aspect of OECM business operations including external sourcing initiatives conducted by OECM on behalf of stakeholders Ontario Education Collaborative Marketplace (OECM) Board of Directors: Approve OECM Internal Strategic Sourcing Policy as amended; Provide the President and CEO with advice on strategic sourcing plans and specific procurements, as required; Approve OECM procurement contracts over $100,000 for which OECM has liability; and Approve all non competitive consulting services procurements/contracts over $25,000. Approve internal OECM non-competitive procurement for goods, construction and non consulting services over $25,000. Chair of the Board of Directors: Approve OECM invoices valued at $50,000 or over. President and Chief Executive Officer: Review and update the policy, as needed; Ensure OECM staff complies with the mandatory requirements of this policy; Establish appropriate organizational structure, systems, policies, processes, procedures, including appropriate staff development, to enable the responsible and effective provision of strategic sourcing and procurement services; Lead the development of an Annual Sourcing Plan that includes OECM s internal requirements; Inform the Board of Directors of all sourcing contract awards; Approve all procurement documents posted on MERX and Biddingo; Establish an appropriate role and coordinating process to address any Freedom of Information/ Protection of Privacy (FIPPA) requests; Approve OECM competitively sourced contract awards under $100,000. Approve non-competitive goods, non- consulting services and construction procurements up to $25,000. Approve non competitive consulting services (exception only) up to $25,000. Approve exceptions to both OECM Strategic Sourcing Policies; all exceptions must be reported to the Board of Directors. OECM Internal Strategic Sourcing Policy: Effective November 6, Revised August 19, 2011 Page 13 of 19

14 Director, Finance: Provide input into OECM Annual Sourcing Plan and individual project sourcing strategies as related to financial or administrative issues. Provide a review and verify bid evaluations involving pricing and financial data, as required. Approve OECM internal competitive procurements up to $25,000 (in accordance with AAS) Director, Strategic Sourcing: Develop an annual Sourcing Plan that includes OECM s internal requirements; Ensure effective management of strategic sourcing, procurement and contract management conducted on behalf of OECM; Establish and maintain related guidelines, best practices and tools necessary for effective strategic sourcing, procurement and contract management; Coordinate periodic sourcing and contract reporting required by the BOD or BPS SCS, Ministry of Finance; Establish and manage a dispute resolution mechanism for procurement as per the AIT; Investigate and respond expeditiously to vendor and procurement complaints or concerns; Review and recommend approval for procurement documents posted on MERX and Biddingo and all invitational bid documents; Approve internal competitive procurements up to $25,000. (in accordance with AAS). All OECM Staff: Responsible for ensuring compliance with this policy. Must ensure that only necessary procurements are made and that best value is received for all goods and services acquired. Seek the necessary approval authority for all procurements prior to conducting the procurement process. OECM Contracted Legal Counsel: Review and provide risk assessment for all legal procurement and contract templates; Review and provide risk assessment for procurements over $100,000 prior to posting and agreements over $100,000 prior to execution where deemed appropriate; Provide legal support to sourcing, procurement and contract management as required. OECM Internal Strategic Sourcing Policy: Effective November 6, Revised August 19, 2011 Page 14 of 19

15 APPENDIX A: GLOSSARY OF TERMS A.1 Accountability The obligation of an employee, agent or other person to answer for or be accountable for, work, action or failure to act following per their delegated authority. A.2 Agreement A formal written document entered into at the end of the procurement process. A.3 Agreement on Internal Trade (AIT) A national agreement that regulates trade between the provinces to ensure equal access to public sector procurement for all Canadian suppliers. The Agreement aims to reduce barriers to the movement of persons, goods, services and investments within Canada. The agreement can be found at: A.4 Approval Authority The authority delegated to a person designated to occupy a position to approve on its behalf one or more procurement functions within the procure to pay cycle up to specified dollar limits subject to the applicable legislation, regulations and procedures in effect at such time. A.5 Approval Level The authority delegated by the organization to a person designated to occupy a position to approve on its behalf one or more procurement functions within the plan to pay cycle up to specified dollar limits subject to applicable legislation, regulations and procedures in effect at such time. A.6 Award A.7 Bid The notification to a proponent of acceptance of a proposal, quotation or tender that result in a contract. A proposal, quotation or tender submitted in response to a solicitation from a contracting authority. A bid covers the response to any of the three principal methods of soliciting bids, i.e., Request for Tender, Request for Proposal and Request for Quotation. A.8 Bid Protest A dispute raised against the methods employed or decisions made by a contracting authority in the administration of a process, leading to the award of a contract. OECM Internal Strategic Sourcing Policy: Effective November 6, Revised August 19, 2011 Page 15 of 19

16 A.9 BPS The Broader Public Sector in Ontario. A.10 BPS Procurement Directive As part of the BPS Accountability Act 2010, the purpose of the BPS Procurement Directive is to ensure that publicly funded goods, services and construction are acquired by BPS organizations through an open fair and transparent process. The directive outlines responsibilities of BPS organizations and ensures that procurement processes are handled consistently though-out the BPS. A.11 Competitive Procurement A set of procedures for developing a procurement contract through a bidding or competitive proposal. The intent is to solicit fair, impartial, competitive bids. A.12 Conflict of Interest A situation in which financial or other personal considerations have the potential to compromise or bias professional judgment and objectivity. An apparent conflict of interest is one in which a reasonable person would think that the professional s judgment is likely to be compromised. It is important to note that a conflict of interest exists whether or not decisions are affected by a personal interest; a conflict of interest implies only the potential for bias, not a certainty. For example: A situation in which someone who must make a decision in an official or professional capacity may stand to profit personally from the decision. A.13 Consulting Services The provision of expertise or strategic advice that is presented for consideration and decision making. Training is not considered a consulting service. A.14 Construction Construction, reconstruction, demolition, repair or renovation of a building, structure or other civil engineering or architectural work and includes site preparation, excavation, drilling, seismic investigation, the supply of products and materials, the supply of equipment and machinery if they are included in and incidental to the construction, and the installation and repair of fixtures of a building, structure or other civil engineering or architectural work, but does not include professional consulting services related to the construction contract unless they are included in the procurement. A.15 Contract A contract is an obligation, such as an accepted offer, between competent parties upon a legal consideration, to do or abstain from doing some act. It is essential to the creation of a contract that the parties intend that their consequences and be legally enforceable. The essential OECM Internal Strategic Sourcing Policy: Effective November 6, Revised August 19, 2011 Page 16 of 19

17 elements of a contract are an offer and an acceptance of that offer; the capacity of the parties to contract; consideration to support the contract; a mutual identity of consent or consensus ad idem; legality of purpose; and sufficient certainty of terms.agreement shall have legal A.16 Evaluation Criteria A benchmark, standard or yardstick against which accomplishment, conformance, performance and suitability of an individual, alternative, activity, product or plan is measured to select the best supplier through a competitive process. Criteria may be qualitative or quantitative in nature. A.17 Evaluation Matrix A tool allowing the evaluation team to rate supplier proposals based on multiple pre-defined evaluation criteria. A.18 Evaluation Team The evaluation team is comprised of individuals designated/responsible for making supplier contract award recommendations. The evaluation team would typically include representatives from sourcing, finance, communications, colleague institutions or other subject matter expert(s). Each member participates to provide business, technical and financial input. A.19 Freedom of Information and Protection of Privacy Act (FIPPA) A.20 Goods A.21 Offer The Freedom of Information and Protection of Privacy Act (FIPPA) is national legislation stipulating a right of access to records held by public bodies and regulates how public bodies manage personal information. The FIPPA can be found at: In relation to procurement, moveable property (including the costs of installing, operating, maintaining or manufacturing such moveable property) including raw materials, products, equipment and other physical objects of every kind and description whether in solid, liquid, gaseous or electronic form, unless they are procured as part of a general construction contract. A promise or a proposal made by one party to another, intending the same to create a legal relationship upon the acceptance of the offer by the other party. A.22 Procurement A procurement is an acquisition by any means, including by purchase, rental, lease or conditional sale, of goods, services or construction. A.23 Request for Information (RFI) OECM Internal Strategic Sourcing Policy: Effective November 6, Revised August 19, 2011 Page 17 of 19

18 A document issued to potential suppliers to gather general supplier, service or product information. It is a procurement procedure whereby suppliers are provided with a general or preliminary description of a problem or need and are requested to provide information or advice about how to better define the problem or need, or alternative solutions. A response to an RFI must not pre-qualify a potential supplier and must not influence their chances of being the successful proponent on any subsequent opportunity. A.24 Request for Proposal (RFP) A document used to request suppliers to supply solutions for the delivery of complex products or services or to provide alternative options or solutions. It is a process that uses predefined evaluation criteria in which price is not the only factor. A.25 Services Intangible products that do not have a physical presence. No transfer of possession or ownership takes place when services are sold, and they (1) cannot be stored or transported, (2) are instantly perishable, and (3) come into existence at the time they are bought and consumed. A.26 Single Source The use of a non-competitive procurement process to acquire goods or services from a specific supplier even though there may be more than one supplier capable of delivering the same goods or services. A.27 Sole Source The use of a non-competitive procurement process to acquire goods or services where there is only one available supplier for the source of the goods or service. A.28 Supplier/Vendor Any person who, based on an assessment of that person's financial, technical and commercial capacity, is capable of fulfilling the requirements of a procurement request. A.29 Supply Chain Management The full range of processes that manage the flow of goods and services, information, and dollars between suppliers, customers and end-users, as well as the supporting infrastructure required to enable these processes. A.30 Transparency A fundamental objective of OECMs Internal Strategic Sourcing Policy; OECM s suppliers must have fair access to information on procurement opportunities, processes and results. A.31 Vendor Debriefing A practice of informing a supplier as to why their bid was not selected upon completion of the contract award. OECM Internal Strategic Sourcing Policy: Effective November 6, Revised August 19, 2011 Page 18 of 19

19 A.32 Value for Money A fundamental objective of OECMs Internal Strategic Sourcing Policy; OECM will enable institutions to maximize the value they receive from the use of public funds. A value-for-money approach aims to deliver products and services with a lower total life-cycle cost while maintaining a high standard. OECM Internal Strategic Sourcing Policy: Effective November 6, Revised August 19, 2011 Page 19 of 19