Internal Procurement Policy. Effective: November 6, 2009 Revised: September 2015

Transcription

1 Internal Procurement Policy Effective: November 6, 2009 Revised: September 2015

2 1. OVERVIEW APPLICATION AND SCOPE OBJECTIVE Accountability Best Practices Transparency Value for Money and Savings 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 Submission Response Time and Receipt Evaluation and Selection Agreement Award Debriefings Non-Competitive Procurement Agreement Management APPROVALS Competitive Procurement Thresholds Authority Approval Schedule (AAS) for Internal Procurement Segregation of Duties PROCUREMENT AND AGREEMENT RECORDS RETENTION CONFLICT OF INTEREST DISPUTE RESOLTUION PROCESS REPORTING ENVIRONMENTAL PROCUREMENT RESPONSIBILITIES AND ACCOUNTABILITIES President and Chief Executive Officer Director of Finance and Corporate Services Director of HR, Marketing and Communications Director of Sourcing and Relationship Management All... 16

3 12.6 OECM Contracted Legal Counsel APPENDIX A: GLOSSARY OF TERMS A.1 Accountability A.2 Agreement on Internal Trade (AIT) A.3 Accessibility for Ontarians with Disabilities Act A.4 Award A.5 Bid Protest A.6 BPS A.7 BPS Procurement Directive A.8 Competitive Procurement A.9 Conflict of Interest A.10 Consulting Service A.11 Construction A.12 Contract A.13 Evaluation Requirements A.14 Evaluation Matrix A.15 Evaluation Team A.16 Freedom of Information and Protection of Privacy Act (FIPPA) A.17 Goods A.18 Agreement A.19 Offer A.20 Procurement A.21 Request for Information (RFI) A.22 Request for Proposal (RFP) A.23 Request for Quotation (RFQ) A.24 Request for Tender (RFT) A.25 Services A.26 Single Source A.27 Sole Source A.28 Submission A.29 Supplier A.30 Transparency A.31 Debriefing A.32 Value for Money... 23

4 Page: 4 of OVERVIEW OECM S mandate, as a not-for-profit Ontario Broader Public Sector ( BPS ) Group Procurement Organization ( GPO ) whose core business is collaborative sourcing and supplier partnership management. OECM s goal is to generate savings and process efficiencies for public sector and not-forprofit organizations by offering collaboratively sourced and competitively priced products and services through the OECM marketplace supplier partners. OECM will promote and collaboratively lead sourcing initiatives related to the: Generation of savings; Service improvement; and, Adoption of best practices and standards. 2. APPLICATION AND SCOPE This policy applies to all internal procurement activities. OECM s procurement activities are governed by Canadian Law, relevant Ontario Provincial policies, legislation and trade agreements. Accordingly, this Policy has been harmonized with the following reference documents: Accessibility for Ontarians with Disabilities Act, (Amended 2010); Agreement on Internal Trade (AIT); Broader Public Sector Accountability Act, 2010; BPS Procurement Directive dated July 1, 2011; Canadian Law of Competitive Processes and Agreement Law; Freedom of Information and Protection of Privacy Act (FIPPA); Lobbyist Registration Act (as amended 2010); Ontario Human Rights Code; and, This policy will be reviewed and modified as needed to ensure it is in alignment with all applicable government policies, legislation and trade agreements. P07 Internal Procurement Policy September 2015 Page 4 of 23

5 Page: 5 of OBJECTIVE The overall objective of this policy is to ensure OECM acquires products and services in an economically efficient, open, transparent, competitive and consistent manner. This policy follows principles that balance receiving value for money with a process that is transparent, fair and accessible. 3.1 Accountability OECM is accountable for the results of their sourcing, and agreement decisions and the transparency and fairness of its processes. Conflicts of interest, both real and perceived, are avoided at all times. Relationships will not be created which result in reliance on a particular supplier for a particular product and/or service. 3.2 Best Practices OECM will develop and/or apply sourcing best practices used in both private and public sectors. 3.3 Transparency Procurement opportunities are developed fairly with the goal of providing suppliers equitable access to information, required processes and results. Standardized processes are deployed, where possible, removing inefficiencies and creating a level playing field. OECM will ensure that internal procurement processes are open to any and all qualified suppliers, and all related processes are conducted in a fair, open and transparent manner. 3.4 Value for Money and Savings OECM uses a value for money approach that aims to deliver quality products and services at the lowest possible cost ensuring they meet or exceed known stakeholder requirements. OECM tracks, and reports savings using a rigorous validation methodology. 4. CODE OF ETHICS To remain an ethical, professional, and accountable Supply Chain Organization, all OECM staff will adhere to the following: P07 Internal Procurement Policy September 2015 Page 5 of 23

6 Page: 6 of Personal Integrity and Professionalism Honesty, care and due diligence will be integral to all activities with all stakeholders and suppliers; 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 Procurement activities will be open and accountable. Procurements will be conducted in a fair and transparent manner and obtain best value. 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, sourcing policies, processes and practices, share sourcing knowledge, and adopt and share innovative techniques and practices. All OECM staff will comply with this Code of Ethics and the laws of Canada and Ontario. 5. PROCUREMENT PROCESS OECM has adopted the following mandatory procurement requirements identified in the BPS Procurement Directive. 5.1 Procurement Planning OECM will undertake procurement planning to ensure that business needs are met and the objectives of this Policy are achieved. Prior to launching a new procurement project, OECM seeks opportunities through other procurement vehicles such as OECM Marketplace agreements, a Ministry of Government and Consumer Services Vendor of Record arrangement, or other available collaboratively sourced procurement vehicle. A plan will be developed, approved by the Director, Sourcing and Relationship Management, and maintained for each internal sourcing event. P07 Internal Procurement Policy September 2015 Page 6 of 23

7 Page: 7 of 20 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 may conduct total life cycle costing analysis to ensure all costs and benefits are considered. OECM assesses risk and privacy impacts, and develops appropriate mitigation strategies aligned with business, legal and legislative requirements, as required. Supplier consultations are carried out to ensure there is a comprehensive understanding of the industry prior to conducting a procurement. Where results of informal supplier or product research are insufficient, OECM may use a formal Request for Information (RFI) or Request for Expressions 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 from 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 product or service or to identify qualified suppliers in advance of future requirements. The RFSQ may be utilized as a pre-qualifying stage in a twostage procurement process where only qualified suppliers are invited to participate in the second stage. 5.3 Consultants and External Lobbyists Consulting services must be competitively procured irrespective of value, unless an exemption as contemplated in Appendix A of this policy applies. Consulting services with a procurement value of $0 up to but not including $100,000 may be procured through 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 required competitive process. OECM will not procure the services of an external lobbyist on its behalf. (Lobbyists Registration Act amended 2010). P07 Internal Procurement Policy September 2015 Page 7 of 23

8 Page: 8 of Competitive Procurement All procurements with a total value equal to or more than $100,000 will be publically posted on a public electronic tendering system(s) Competitive Procurement Submission Response Time and Receipt OECM will provide suppliers with a minimum response time of fifteen (15) calendar days for submission in response to an RFX whenever possible. OECM will provide suppliers with a minimum of thirty (30) calendar days for procurements assessed as complex and/or high risk. OECM typically provides two (2) opportunities for the suppliers to ask questions about the RFX document. Therefore, if OECM has misinterpreted a question, the supplier(s) may submit another questions seeking further clarification. RFX documents will contain submission requirements, including the date, time and location. 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 not received at the place and time specified in the RFX documents will not be considered further, and shall be returned to the supplier, unopened, at the first opportunity Evaluation and Selection Every competitive RFX posted by OECM will disclose the approved evaluation methodology (including point allocations) and process to be used when assessing submissions, including the method of resolving a tie score. Any changes to the evaluation process will be made via posted addendum. Mandatory requirements will be kept to a minimum to ensure that no submission is unnecessarily disqualified. OECM may provide suppliers the opportunity to rectify any minor mandatory requirement deficiencies. Maximum justifiable weighting will be allocated to the price/cost component of the evaluation requirements. OECM evaluates compliant RFX submissions. Evaluation team members are made aware of the restrictions related to utilization and distribution of confidential and commercially sensitive information P07 Internal Procurement Policy September 2015 Page 8 of 23

9 Page: 9 of 20 collected through the competitive procurement process and refrain from engaging in activities that may create or appear to create a conflict of interest and must sign a conflict of interest/non-disclosure declaration prior to receiving submissions. Evaluators must ensure that everything they say or write about submissions is fair, factual, and fully defensible. Each member of the evaluation team will review and score for each submission. OECM s Director of Finance and Corporate Services or delegate may be included as a member of the evaluation team and be responsible for verifying financial and/or pricing data contained in the submissions. Following the evaluation process the highest-scoring submission(s) that meets all of the mandatory requirements set out in the RFX will be declared the winning submission. Records pertaining to evaluation will be retained for audit purposes. The evaluation process will include an assessment of a supplier s willingness to agree to OECM s agreement template when included in posted RFX s. Unless expressly requested in the procurement documents, OECM will not consider alternative strategies or solutions proposed by a supplier Agreement Award Authorities related to agreement award are outlined in Section [insert reference] Procurement and Agreement Approvals. OECM will not discriminate against or provide preferential treatment to any supplier during any part of the sourcing process or when agreements are awarded. However, OECM reserves the right to not award an agreement to a supplier, in its sole and absolute discretion, in such cases where the supplier: Is not financially viable; Has misrepresented or provided inaccurate or misleading information; Has previously breached an agreement with OECM; Is in litigation with OECM; Has otherwise failed to perform such obligations to the reasonable satisfaction of OECM (e.g. has not submitted required reporting or cost recovery fees, disclosed executed Client Supplier Agreement); Has been charged or convicted of an offence related to the delivery of the product or service; P07 Internal Procurement Policy September 2015 Page 9 of 23

10 Page: 10 of 20 Has revealed a conflict of interest or unfair advantage, or evidence of unfair advantage be brought to the attention of OECM; and, Has any employees or agents who have been found to have colluded with any other supplier, its employees or agents in the preparation of the proposal submitted in response to an OECM procurement document. OECM will enter into a signed written agreement with a successful supplier(s) before the provision of products or services commences. Typically, the executed agreement will be based on the agreement posted within the RFX containing OECM s standard agreement terms and conditions. Supplier-provided agreements are to be considered by exception only. OECM will first execute an agreement with highest-scoring supplier(s). The supplier(s) will sign the agreement, followed by OECM in accordance with the OECM delegation of authority. All agreements will include suitable cancellation or termination clauses and appropriate legal advice will be obtained in the development of these clauses. The term of the agreement and any options to extend the agreement will be set out in the procurement document. 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 agreement OECM will ensure that an appropriate framework and controls are included in agreement documents. Once the preferred supplier(s) has been identified and the agreement has been awarded and signed, OECM will notify all suppliers that an agreement has been signed and the competitive process is complete. OECM will post the name(s) of the successful supplier(s) on the public electronic tendering system(s) used to post the RFX, whenever appropriate. The agreement award notification will include the agreement start and end dates including any options for extension. P07 Internal Procurement Policy September 2015 Page 10 of 23

11 Page: 11 of Debriefings OECM formally invites all suppliers (successful and unsuccessful) who submitted a response to an RFX to a debriefing session. Debriefings will be scheduled only after an agreement between the successful supplier and OECM has been signed. OECM will only respond to a supplier s specific questions about their submission during the debriefing session. Information about other supplier submissions will not be discussed during the debriefing Non-Competitive Procurement Exceptions may exist whereby OECM may, subject to appropriate internal procurement authority, use a non-competitive process for products, 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 an agreement with an existing supplier, approval will be sought prior to the agreement 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 Agreement Management OECM proactively manages internal supplier agreements. An agreement management process will be established in collaboration with the business lead and with the supplier(s) upon agreement execution. OECM will ensure the following provisions, where applicable: Establish an appropriate governance framework to provide agreement and service management oversight; Monitor supplier performance based on any contractual performance metrics; Actively engage and gather feedback from users and the business lead on supplier performance; Conduct business reviews with the supplier on a regular basis to review performance and address issues; P07 Internal Procurement Policy September 2015 Page 11 of 23

12 Page: 12 of 20 Refresh products/services and pricing where appropriate; Conduct agreement audits/spot checks as needed; Track, validate and report savings; and, Pursue innovation and continuous improvement throughout the life of the agreement. OECM agreements contemplate renewal processes and timing. Prior to the expiry of the agreement, OECM will review and determine if an agreement should be extended or retendered. 6. APPROVALS Procurement documents (i.e. Request for Proposals (RFP), Request for Information (RFI), Request for Quotation (RFQ), etc.) may be posted on a public electronic tendering system(s) once approved by the Director, Sourcing and Relationship Management. OECM s President and CEO approves the execution of all internal agreements prior to commencement, and applicable agreement amendments. The Director, Sourcing and Relationship Management will review and recommend agreement extensions, as appropriate. The following Approval Authority Schedule (AAS) is applicable to internal OECM procurements only. These approvals are based on OECM s delegated purchasing authority levels which relate to the estimated total value of the procurement, including any agreed upon extension periods. 6.1 Competitive Procurement Thresholds PRODUCTS, NON-CONSULTING SERVICES AND CONSTRUCTION Total Procurement Value (excluding taxes) Contracting Instrument Means of Procurement $0 up to but not including 3 written quotes wherever Purchasing Card $3,500 practical 3 written quotes or invitational $3,500 up to but not including$10,000 Purchasing Card or Purchase Order competitive procurement (minimum of 3 suppliers invited wherever practical) $10,000 up to but not including $100,000 Purchase Order or Agreement Invitational, competitive procurement (minimum of 3 suppliers invited) or open competitive process P07 Internal Procurement Policy September 2015 Page 12 of 23

13 Page: 13 of 20 $100,000 or more Purchase Order or Agreement Open competitive process CONSULTING SERVICES Total Procurement Value (excluding taxes) Contracting Instrument Means of Procurement Invitational competitive $0 up to but not Agreement procurement (minimum of 3 including$100,000 suppliers invited) over $100,000 Agreement Open competitive process 6.2 Authority Approval Schedule (AAS) for Internal Procurement PRODUCTS, NON CONSULTING SERVICES AND CONSTRUCTION Total Procurement Value(excluding taxes) Delegated Purchasing Authority Competitive $0 25,000 Director according to approved budgets Competitive $25,000 - $ CEO Competitive over ($100,000) Board of Directors Non Competitive $0-50,000 CEO Non Competitive over $50,000 (exception based Board of Directors only) CONSULTING SERVICES Total Procurement Amount (excluding taxes) Delegated Purchasing Authority Director, Sourcing and Relationship Management, Competitive $0 - $25,000 Director of Finance and Corporate Services or Director of Human Resources, Marketing and Communications Competitive $25,000 $100,000 CEO Competitive over $100,000 Board of Directors Non-competitive under $25,000 CEO Non-competitive over $25,000 Board of Directors All non-competitive consulting services must have prior written approval by the Delegated Purchasing Authority prior to any action being taken. P07 Internal Procurement Policy September 2015 Page 13 of 23

14 Page: 14 of Segregation of Duties OECM recognizes the importance of the segregation of duties as an essential control mechanism within their procurement process. SEGREGATION OF DUTIES Functional Role Responsibility Accountable Party Requisition To request that an order be placed Staff requesting the product or with a contracted supplier service Budgeting Creates and or approves budget(s) Directors and CEO Commitment Authorize release of an order to a Director or CEO as per delegated supplier under agreed contract AAS terms Receipt Staff responsible for receiving products or services Staff Payment Prepare and authorize release of payment to a supplier 7. PROCUREMENT AND AGREEMENT RECORDS RETENTION Finance and Corporate Services staff prepares the payment, and the Director of Finance and Corporate Services approves the release of such payment. OECM s typical payment terms are net 30 days OECM will retain sourcing documents as well as any other related information for reporting and auditing purposes for a period of seven (7) years. OECM will handle, store and maintain suppliers confidential and commercially sensitive information in a secure manner. 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. P07 Internal Procurement Policy September 2015 Page 14 of 23

15 Page: 15 of DISPUTE RESOLTUION PROCESS Suppliers may submit RFX protests concerning any aspect of the procurement process. The Director, Sourcing and Relationship Management will oversee all disputes and ensure these are handled in an ethical, reasonable and timely manner. 10. REPORTING OECM will maintain agreement records and provide reports to the Board of Directors, 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. RESPONSIBILITIES AND ACCOUNTABILITIES 12.1 President and Chief Executive Officer Approve this policy and all associated revisions; Ensure OECM staff complies with the 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, procurement, and business relationship services; Approve the Annual Sourcing Plan ensuring the plan responds to sector needs; Approve OECM externally sourced Master Agreements, and amendments thereto; and, Inform the Board of Directors of all sourcing agreement awards Director of Finance and Corporate Services Provide input into the OECM Annual Sourcing Plan and individual project sourcing strategies as related to financial issues and revenue generation; Review and verify RFX evaluations involving pricing and financial data, if required; Manage internal Finance and Corporate Services related agreements. P07 Internal Procurement Policy September 2015 Page 15 of 23

16 Page: 16 of Director of HR, Marketing and Communications Provide input into the OECM Annual Sourcing Plan and individual project sourcing strategies as related to Human Resources, Marketing and Communications; and, Manage internal Human Resources, Marketing and Communications related agreements Director of Sourcing and Relationship Management Review and update this policy for approval, as needed; Develop an Annual Procurement Plan that reflects the needs of OECM; Ensure effective management of procurements and resultant agreements, conducted in collaboration with business leads; Establish and maintain related guidelines, best practices and tools necessary for effective procurement and agreement management; Review and approve internal procurement documents (e.g. RFXs, addendum, supplier invitations for consultation, etc.) prior posted on a public electronic tendering system(s); Manage internal SRM related agreements; Review and approve OECM website internal procurement content; Review and recommend agreement amendments, where applicable; Coordinate periodic procurement and agreement reporting to stakeholders and the OECM Board of Directors; Establish and manage a dispute resolution mechanism for procurement as per the AIT; and, Investigate and respond expeditiously to sourcing or agreement complaints or concerns All Responsible for compliance to this policy; Ensure that best value for money is received for contracted products and services; and, Seek the necessary approval authority for all procurements prior to conducting the procurement process OECM Contracted Legal Counsel. As required: Review legal procurement and agreement templates; Review standard procurement terms and conditions ; P07 Internal Procurement Policy September 2015 Page 16 of 23

17 Page: 17 of 20 Review procurements prior to posting on a public electronic tendering system(s) as well as Master Agreements prior to execution; and, Provide legal advice on procurement and agreements. 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 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, products, services and investments within Canada. The agreement can be found at: Approval Authority The authority delegated to a person designated to occupy a position to approve on its behalf one (1)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.3 Accessibility for Ontarians with Disabilities Act OECM is committed to the highest possible standards for accessibility ensuring its internal agreements are consistent with the Ontario Human Rights Code, the Ontarians with Disabilities Act, 2001 and Accessibility for Ontarians with Disabilities Act, (Amended 2010) and its regulations in order to achieve accessibility for Ontarians with disabilities. A.4 Award The notification to a proponent of acceptance of a proposal, quotation or tender that results in an agreement. P07 Internal Procurement Policy September 2015 Page 17 of 23

18 Page: 18 of 20 A.5 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 an agreement. A.6 BPS The Broader Public Sector in Ontario A.7 BPS Procurement Directive As part of the Broader Public Sector Accountability Act 2010, the purpose of the BPS Procurement Directive is to ensure that publicly funded products, 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 through-out the BPS. A.8 Competitive Procurement A set of procedures for developing a procurement agreement through a submission or competitive proposal. The intent is to solicit fair, impartial, competitive submissions. A.9 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. P07 Internal Procurement Policy September 2015 Page 18 of 23

19 Page: 19 of 20 A.10 Consulting Service The provision of expertise or strategic advice that is presented for consideration and decisionmaking. A.11 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 agreement unless they are included in the procurement. A.12 Contract 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 an agreement that the parties intend that their agreement shall have legal consequences and be legally enforceable. The essential elements of an agreement are an offer and an acceptance of that offer; the capacity of the parties to agreement; consideration to support the agreement; a mutual identity of consent or consensus ad idem; legality of purpose; and sufficient certainty of terms. A.13 Evaluation Requirements 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.14 Evaluation Matrix A tool allowing the evaluation team to rate supplier proposals based on multiple pre-defined evaluation requirements. P07 Internal Procurement Policy September 2015 Page 19 of 23

20 Page: 20 of 20 A.15 Evaluation Team Individuals designated/responsible for making supplier agreement award recommendations. The evaluation team would typically include representatives from the participating institutions representing finance, IT, procurement, facilities or other subject matter expert(s). Each member participates to provide business, legal, technical and financial input. A.16 Freedom of Information and Protection of Privacy Act (FIPPA) The Freedom of Information and Protection of Privacy Act (FIPPA) is a 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: A.17 Goods 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 agreement. A.18 Agreement A formal written document entered into at the end of the procurement process between the highest-scoring supplier and OECM. A.19 Offer 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. P07 Internal Procurement Policy September 2015 Page 20 of 23

21 Page: 21 of 20 A.20 Procurement An acquisition by any means, including by purchase, rental, lease or conditional sale, of products, services or construction. A.21 Request for Information (RFI) 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.22 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 requirements in which price is not the only factor. A.23 Request for Quotation (RFQ) A document similar to an RFT where OECM would describe exactly what needs to be purchased and the evaluation is based solely on price. A.24 Request for Tender (RFT) A document used to request supplier responses to supply goods or services based on stated delivery requirements, performance specifications, terms and conditions. An RFT usually focuses the evaluation criteria predominately n price and delivery requirements. P07 Internal Procurement Policy September 2015 Page 21 of 23

22 Page: 22 of 20 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 products or services from a specific supplier even though there may be more than one supplier capable of delivering the same products or services. A.27 Sole Source The use of a non-competitive procurement process to acquire products or services where there is only one available supplier for the source of the products or service. A.28 Submission A proposal, quotation or tender submitted in response to a solicitation from a contracting authority. A submission covers the response to any RFX. A.29 Supplier 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.30 Transparency A fundamental objective of OECMs Internal Procurement Policy. OECM must be open to all stakeholders. OECM s suppliers must have fair access to information on procurement opportunities, processes and results. P07 Internal Procurement Policy September 2015 Page 22 of 23

23 Page: 23 of 20 A.31 Debriefing The practice of informing a supplier as to why their submission was not selected upon completion of the agreement award. A.32 Value for Money Value for money is a fundamental objective of this policy. OECM o maximize the value received from the purchase of all goods and services. A value for money approach aims to deliver products and services with a lower total life-cycle cost while maintaining a high standard. P07 Internal Procurement Policy September 2015 Page 23 of 23