As a public funded organization, the procurement at University of Guelph is governed by the laws and regulations of Canada and Ontario. These legislative requirements are mostly reflected by the University's policies and procedures.
It is the responsibility of every member of the University’s faculty and staff involved in procurement activities such as planning, sourcing, requisitioning, contracting, receiving and payment to understand these requirements and abide by them.
The University of Guelph's Purchasing Policy formally adopts the Supply Chain Code of Ethics (the Code) as below. The goal of the Code is to provide a general foundation on which to build professional and accountable practices and behavior in all areas of procurement activity. All members of the University involved with Supply Chain Activities must be in accordance with the Code.
This Code applies to every memeber of the University's faculty and staff involved in the purchasing activities including planning, sourcing, requisitioning, purchasing, receiving and payment.
The following are the three major components of the University’s Purchasing Code of Ethics.
PERSONAL INTEGRITY AND PROFESSIONALISM
All individuals involved with purchasing or other procurement related activities must act, and be seen to act, with integrity and professionalism. Honesty, care and due diligence must be integral to all procurement activities within and between the University, its suppliers and other stakeholders. Respect must be demonstrated for each other and for the environment. Confidential information must be safeguarded. All 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.
ACCOUNTABILITY AND TRANSPARENCY
Procurement 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 University funds.
COMPLIANCE AND CONTINUOUS IMPROVEMENT
All individuals involved in the purchasing or other procurement-related activities must comply with this policy and the laws of Canada and Ontario. In this context the University is committed to continuously work to improve procurement policies and procedures, to improve the knowledge and skill levels, and to share leading practices, where possible.
In matters of procurement, every member of the University’s faculty and staff shall be governed by the University’s policies on Conflict of Interest including Conflict of Interest Policy for University of Guelph Employees.
This Policy is intended to facilitate employees’ ability to maintain the highest business and ethical standards, and to facilitate the protection of the integrity of employees in the course of their job responsibilities.
This Policy defines and addresses potential, apparent and actual conflicts of interest. It provides guidance to employees so that conflicts of interest are recognized and either avoided or resolved expeditiously through appropriate disclosure and management.
The fundamental principle underlying this Policy is that employees must not permit relationships with others or external business activities to conflict, or appear to conflict, with the interests of the University.
Conflict of Interest means a potential, apparent or actual conflict where an Employee’s financial or other personal interest, whether direct or indirect, conflicts or appears to conflict with the Employee’s responsibility to the University, or with the Employee’s participation in any recommendation or decision within the University.
Employee means University of Guelph full-time or part-time Employees who are not members of the UGFA.
External Activity means any activity of an Employee outside the scope of her/his employment with the University undertaken as part of a commercial or volunteer enterprise.
Relationship means any relationship of the Employee to persons of his or her immediate family whether related by blood, adoption, marriage, or common-law relationship, and any relationship of an intimate and/or financial nature during the preceding five years, any student-supervisor relationship, or any other past or present relationship that may give rise to a reasonable apprehension of bias
Supervisor means the person to whom an Employee reports or, in the case of a committee, the committee Chair.
Disclosure of Conflicts of Interest
All Employees have an obligation to disclose to their Supervisor any Conflict of Interest. The Employee must disclose in writing as soon as she/he could reasonably be aware that a Conflict of Interest exists. The existence of a Conflict of Interest does not necessarily preclude involvement in the issue which has given rise to the Conflict (“the Matter”). The Employee must declare, in writing, the nature and extent of the Conflict of Interest no later than any meeting or process in which the Employee participates and at which the Matter is to be considered. The Employee must refrain from taking part in any discussion or decision-making vote in relation to the Matter, and withdraw from any meeting or process when the Matter is being discussed until a decision has been reached regarding the manner in which the Conflict of Interest will be addressed.
A Conflict of Interest may also be reported to a Supervisor by any other person. A report to a Supervisor about the existence of a potential, apparent or actual conflict of interest shall be made in writing.
To learn more about the procedures for Management of Conflicts of Interest or other aspects of the University of Conflict of Interest Policy, visit the Conflict of Interest Policy for University of Guelph Employees website.
Overseen by the Supply chain Ontario, Ministry of Government and Consumer Services, the Broader Public Sector (BPS) Procurement Directive sets out procurement rules in the purchase of goods and services with public funds under Ontario's Broader Public Sector Accountbability Act, 2010.
As a major recipient of provincial funding, the University of Guelph is required to be in compliance with the principles and practices contained in the BPS Procurement Directive (Directive).
The purpose of the Directive is to:
The Directive is based on the following five key principles that allow Organizations to achieve value for money while following a procurement process that is fair and transparent to all stakeholders:
The folowing are some of the mandatory requiremnets in the Directive:
The Directive also sets out a number of specific requirements for the procurement of consulting services, the competitive bidding process and contract management. Please refer to the relevant sections under Getting Started with Procurement for further information.
Trade agreements support the exchange of goods and services between Ontario and other countries and provinces. Trade agreements and procurement practices are built on the fundamental principles of Fairness, Transparency and Reciprocal Non-Discrimination.
Ontario is a party to two domestic trade agreements:
Ontario is also subject to international trade agreements, including:
As a publicly funded institution, the University is subject to the procurement obligations of all applicable trade agreements. University's procurements must be compliant with the requirements outlined in the chapter of Government Procurement in these trade agreements.
Canada Border Services Agency (CBSA) is the government authority who administers and enforces more than 90 acts, regulations and international agreements on behalf of other federal departments and agencies. Among them are Customs Act, Customs Tariff, Export and Import Permits Act, Food and Drugs Act, Prohibited and Restricted Goods, etc.
Over the recent years, regulation changes have resulted in expanding information requirements, greater enforcement of customs responsibilities for all importers and exporters, and tighter timelines for information required prior to the release of goods. Compliance audits have also been incorporated into all of the CBSA programs, and non-compliance may result in penalties to the University as dictated under the Administrative Monetary Penalty System (AMPS).
The risks related to customs non-compliance are not only financial, they can spill over to affect reputation, eligibility fo research grants, and the quality of research and academic programs. In a worst case scenario, a facility could be shut down and related certifications, licensing or permits could be revoked.
To learn more about customs legislations, visit Canada Border Services Agency website.
This legislation places a legal obligation on the University to provide accessibility for Ontarians with disabilities with respect to goods, services, facilities, accommodation, employment, building, structures and premises on or before January 1, 2014.
Under the AODA, the following Ontario Regulations establish the accessibility standards the University is required to meet as a public service provider.
The University is committed to creating and maintaining an accessible university community under this Act. All procurement authorities of the University shall incorporate, where appropriate, accessibility criteria and features when procuring or acquiring goods, services or facilities.
Public sector organizations must include accessibility criteria in their processes for buying and acquiring goods, services and facilities. This means you must consider accessibility, where possible, along with other criteria like the quality and cost of the items. You must also incorporate accessible design and features where possible.
When you’re buying and acquiring goods, services or facilities, you should ask these questions to ensure your meeting accessibility standards.
If you cannot find or use an accessible product, service or facility, you must be prepared to:
The University of Guelph has long believed that its dealings with suppliers should reflect the institution's recognition that consumer decisions have an impact on those involved in production.
In 2012, the University's Board of Governors approved a Code of Ethical Conduct for Suppliers and Subcontractors in Relation to Working Conditions and Employment Standards (the Code). The purpose of the Code is to ensure that the University does its utmost to have positive impact on working conditions and to minimize the possibility of its contribution to oppressive working conditions. As a result, the University of Guelph requires suppliers and subcontractors with which it does business and who fall within the scope of this Code to conduct their business and uphold workplace standards in adherence to the Code.
The University procurement authorities are committed to promoting a greater standard of ethical conduct from suppliers and subcontractors by actively implementing our policy and procedures, working constructively with campus community and suppliers and moving toward purchasing from employers who treat their employees in an ethical manner.
In an effort to strengthen the University’s position that all University’s apparel suppliers need to demonstrate their compliance to the Code, the University will require all suppliers who supply apparel products to the University to confirm their compliance of the Code by completing the Supplier Verification of Compliance (SVC) form. Specifically,
For more information on University’s policy and procedures on Code of Ethical Conduct, and the list of suppliers who have completed the SVC form and the compliance verification process, visit Ethical Buying website;
Certain commodities are regulated by some government agencies due to their special nature and related risks when they are handled improperly. These special commodities include:
Purchases of these special commodities must be compliant with the related government regulations and the University's Special Authority Approval procedures.
To learn more about these Regulations, click each category to visit related government websites.
The University's Purchasing Policy provides the framework, general principles and overall guidance for procurement activities at the University of Guelph. The procurement of goods and services by all departments of the University regardless of the final source of funding shall be compliant with the Purchasing Policy.
All procurement activities shall be authorized and approved by the authority as defined by the University's General Policy - Delegation of Authority for Commitment of University Funds Upon Budget Allocation.
In general, 3 of the 5 purchasing functions below should be completed by different individuals for each procurement.
|Requisition||Authorize the budget unit to place an order||Department budget authority, research principle investigator or authorized delegate|
|Budget||Ensure that funding is available to cover the cost of the order||Department budget authority, research principle investigator or authorized delegate|
|Commitment||Authorize the release of the order to the supplier under agreed terms||Buyer in department or Purchaing Services|
|Receipt||Receive the order physically and verify the order is correct and complete||Department individual receiving the goods or confirming services have been provided|
|Payment||Approve invoices and authorize release of payment to the supplier||Departmental budget authority, Payment Services staff and University signing officers|
Based on the total procurement value, all procurement shall be conducted in a manner that meets the sourcing and contracting requirements specified below.
1. Goods and Non-Consulting Services
|Total Procurement Value (CAD)||Sourcing Requirements
(How to Select Supplier)
|0 - 4,999||1 quote||
One of the following:
|5,000 - 9,999||Minimum of 1 written quote||One of the following:
|10,000 - 24,999||Minmum of 2 written quotes A||One of the following:
|25,000 - 99,999||Minimum of 3 written quotes (invitational competitive procurement) A||Purchase order issued by Purchasing Services (HVPO)|
|Over 99,999||Open competitive procurement (RFx) A||Purchase order issued by Purchaing Services (HVPO)|
A: Single Source / Sole Source is used only as an ecxception, it can not be used as a subsittute for quotes.
2. Consulting Services
|Total Procurement Value (CAD)||Sourcing Requirements
(How to Select Supplier)
(How to Place Order)
|0 - 4,999||Minimum of 3 written quotes (invitational competitive procurement) B||One of the following:
|5,000 - -99,999||Minimum of 3 written quotes (invitational competitive procurement) B||Purchase order issued by Purchaing Services (HVPO)|
|Over 99,999||Open competitive procurement (RFx) B||Purchase order issued by Purchaing Services (HVPO)|
B: Single Source / Sole Source of consulting services below $1,000,000 requires approval by the President; over $1,000,000 requires approval by the Board of Governors.
3. Special Commodities
|Total Procurement Value (CAD)||Sourcing Requirements
(How to Select Supplier)
(How to Place Order)
|0 - 4,999||1 quote||Purchase order issued by Purchaing Services (HVPO|
|Over 4,999||same requirements as for Goods and Non-Consulting Services||same requirements as for Goods and Non-Consulting Services|
It is a mandatory requirement of the University's Purchasing Policy that the University is to use a competitive procurement process to acquire goods or non-consulting services valued at $10,000 and over, and consulting services regardless of dollar value. It is also a mandatory requirement of the BPS Procurement Directive and the applicable trade agreements that the University is to publicly tender the procurement of goods or services valued at $100,000 and over.
However, it is recognized that in exceptional circumstances, only one supplier may be able or capable of providing the goods or services. In these circumstances, the University must justify a non-competitive procurement using one of the limited tendering or non-application provisions in the applicable trade agreements.
For the list of the provisions that are relevant to the University procurements, please refer to Non-Competitive Procurement Provisions.
For provisions that could have different interpretations, department procurement authorities shall contact Purchasing Services for guidance prior to using the provision in your justification.
For procurement valued at $100,000 and over, it is highly recommended that department procurement authorities contact Purchasing Services before making any procurement decisions utilizing a non-competitive process.
Non-Competitive Procurement Justifiation form is required for the non-competitive procurement of:
For an example of completed Non-Competitive Procurement Justification, please refer to Sample of Completed Non-Competitive Procurement Justification.
As required by BPS Procurement Directive, organizations must procure consulting services competitively regardless of the dollar value.
Non-competitive procurement of consulting services is allowed only in circumstances outlined in the applicable trade agreements. Please refer to Non-Competitive Procurement Provisions for these allowable circumstances.
Consulting services procured non-competitively must be approved by the President if the total procurement is between $0 and $1,000,000, and by the Board of Governors if the total procurement is $1,000,000 or more.
Consultant means a person or entity that under an agreement, other than an employment agreement, provides expert or strategic advice and related services for consideration and decision-making.
Consulting Services means the provision of expertise or strategic advice that is presented for consideration and decision-making.
A Non-consulting Service Provider is an individual or a company who contracts to provide services, other than consulting services to another individual or business. Examples may include "consultants" such as property brokers, head hunters or trainers.
When determining whether a service is consulting or non-consulting, the differentiating factor is whether the services involve thinking, and whether the services are strategic versus tactical in nature.
An individual or organization is considered a "consultant" if they provide the following services:
The following are some examples showing the differences between consulting and non-consulting services:
Prior to the commencement of the services, the requestor from the department is responsible to determine if the service being procured is consulting or non-consulting service. If it is consulting service, the requestor shall follow a competitive procurement process to award the contract regardless of the dollar value.
Prior to the award of a contract and commencement of services, the requestor must obtain approval in accordance with the Procurement Approval Authority Schedule for Consulting Services in the University's Purchasing Policy.
In cases where a department needs to procure services using non-competitive procurement provisions, and the services being procured could be viewed as possibly involving elements of consulting, the requestor from the department is responsible for completing the Non-Competitive Procurement Justification, as well as explaining whether the service being procured is considered consulting and why it is determined so, and submitting them to Purchasing Services.
It is the department's responsibility to ensure that sufficient information has been provided in the Consulting vs Non-Consulting Services Form to support the determination you have made.
If the department cannot provide sufficient evidence to support that the services being procured are non-consulting services, the procurement of the services must be approved in accordance with the University’s Procurement Approval Authority Schedule for Consulting Services.