RYERSON UNIVERSITY
Policy-Procedure
No. 1-439B
January, 2001
QUOTATION AND TENDER POLICY
Purpose
The purpose of this policy is:
•
To ensure Ryerson’s process in determining the use of funds for the purchase of goods
and services is conducted in a publicly accountable manner;
•
To outline the role and responsibilities of the Purchasing and Payment unit of Financial
Services in facilitating the expedient purchase of goods and services necessary to
support the goals and objectives of the University; and
•
To provide staff and faculty with the framework to seek competitive prices in a manner
that meets current legislation requirements, is in accordance with the resolutions of the
Board of Governors, and promotes free and open competition for all interested
suppliers.
Scope
This policy applies to all documents related to the purchase of goods and services (as outlined
below) that are prepared or processed by Ryerson University.
Inclusions
This policy applies to the purchase of:
•
Goods and services estimated in excess of $5,000 excluding taxes and shipping costs;
•
Goods and services of any price as determined at the discretion of the Contract
Negotiator, Purchasing and Payment;
•
Goods and services identified in a competitive complaint from a supplier;;
•
Goods and services requiring a “request for quotation” or “tender” as deemed
necessary by government or contractual obligation; and
•
Consulting services provided by independent contractors as defined in the
Employee/Employer Relations Policy.
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Policy-Procedure
No. 1-439B
January, 2001
Exclusions
Exemptions
•
Print and non-print library collections materials;
•
Goods purchased for external resale; and
•
Goods and services valued up to and including $5,000 not addressed by the inclusion
rules above.
Sole Source
The supplier bidding requirement (as described below - Competitive Bid Requirements) is
waived for the purchase of those goods and services only available from one lone supplier.
Instead, a “sole source” form must be completed and approved by the appropriate signing
authority. If the proposed purchase is made using an Oracle Government Financial (OGF)
electronic requisition, the “sole source standard note” may be used instead.
Existing Contracts
New bids are not required for the acquisition of goods and services covered by an existing
Ryerson, provincial or cooperative purchasing group contract. The Purchasing and Payment
unit maintains a list of all such contracts. Whenever possible, this list is made available to
University staff on-line via the OGF system. Should a requisitioner choose not to use a
supplier already under contract, the appropriate bid process must be followed.
Competitive Bid Requirements
It is the responsibility of the Purchasing and Payment unit to ensure all purchases requiring
competitive bids are compliant with the following:
•
Prices must be obtained from at least three sources;
•
Price quotations must be obtained using the method appropriate to the complexity and
estimated cost of the good or service under consideration. These methods are:
a)
Price Quotation:
For purchases of $5,001-$25,000, price quotations must be solicited by the
requisitioner by phone, fax or E-mail. Price quotations must be documented
(including award justification) and forwarded to the Purchasing and Payment
unit where it is filed with the purchase order. Employees may contact the
suppliers directly or enlist the assistance of the Purchasing and Payment unit.
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Policy-Procedure
No. 1-439B
b)
January, 2001
Request for Quotation (RFQ):
The Purchasing and Payment unit’s Contract Negotiator is responsible for
providing formal RFQ documents to all suppliers bidding on purchases with an
estimated value of $25,001-$100,000. A list of suppliers invited to participate in
a particular bid is maintained by the Purchasing and Payment unit. Suppliers
responses must be sealed and forwarded to the Purchasing and Payment unit.
Stamped with the date and time of receipt, bid documents are opened only after
the deadline has expired. The award committee (see below - Award
Committee) evaluates the tenders and selects the bid that best meets the
selection criteria. Once a decision is reached, the Purchasing and Payment unit
forwards a formal award notice to all bidding suppliers.
c)
Public Tender
For purchases with a value estimated in excess of $100,000, bids must be
solicited either using a “public call for tender” or a “public call for vendor
qualification”. Public calls must be advertised using one or more standard
advertising mediums (e.g. newspaper, Internet, trade magazine, etc.). The
Purchasing and Payment unit is responsible for advertising such opportunities
and distributing the appropriate tender documents. Suppliers’ responses are
handled in the same manner as the RFQ, however , the award notice must
mirror the advertising activity of the public tender call. An awards committee
reviews all responses and files its evaluation and final decision with the
purchase order in the Purchasing and Payment unit.
d)
Request for Proposal (RFP)
Due to the nature of some projects, it is impossible for the requisitioning
departments to provide bidding suppliers with a specific list of goods or services
to price. In such instances, bidding suppliers are asked to provide a detailed
recommendation on how the project should proceed and a breakdown of the
goods or services required. Proposals are accepted and reviewed according to
the evaluation policy listed above (a), (c).
Documents
•
To ensure a level playing field, all RFQ, RFP and public tender documents must include
a detailed description of:
a)
Goods or services to be purchased;
b)
Deadline date and time;
c)
Address and phone number of the Purchasing and Payment unit;
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Policy-Procedure
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d)
Terms and conditions of the bid; and
e)
Terms and conditions of subsequent purchase and payment.
January, 2001
Public tenders must also include a statement of the award criteria and the weighting
system used for evaluation.
•
The Purchasing and Payment unit is the University’s only authorized agent for official
RFP, RFQ and public tender documents. Only the documents distributed by the
Purchasing and Payment unit are accepted for consideration.
Advertising of Pricing Requests
Only the Purchasing and Payment unit has the authority to place advertisements for public
calls for pricing requests.
Document Costs
If significant costs are incurred to produce or advertise pricing requests, a document request
fee is charged to bidding suppliers.
Bid Deadlines
Upon receipt by the Purchasing and Payment unit, all bids are stamped with the date and time.
Responses received after the deadline are documented as “late” and either refused or
returned to the bidder.
Opening of Bids
RFQ, RFP and public tenders are opened by a staff member of the Purchasing and Payment
unit in the presence of a representative from the requisitioning department. Suppliers
participating in the public tender are permitted to attend. At this meeting, the contents of each
bid are presented, and upon request, prices and bid specifics are revealed. No other requests
for prices or bid specifics are entertained outside the opening meeting.
Evaluation and Award
The award of a public tender bid must offer the University the best mix of price, quality,
specification compliance, terms, conditions, experience and reputation. Ryerson is not
obligated to accept the lowest price bid. All qualifying bids are evaluated and the one that
provides for best overall value is accepted. The rational for accepting a bid is documented and
retained by the Purchasing and Payment unit in accordance with Ryerson’s legal responsibility
for document retention.
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Policy-Procedure
No. 1-439B
January, 2001
Award Committee
RFP, RFQ and public tenders with an estimated value of at least $25,001 are created and
reviewed by a committee consisting of one representative from both the Purchasing and
Payment unit and the requisitioning department, as well as any other appropriate users from
the University community or consultants retained to advise on the purchase. The committee is
responsible for determining, prior to the issuance of the tender document, the method by which
it will be awarded. In addition, the committee determines the key measurement criteria for the
bid - price, quality, specification compliance, terms, conditions, experience, reputation, etc.
For complex bids and those greater than $100,000, a criteria weighting system is determined
by the committee prior to advertising the bid request. Using this tool, the committee reviews
and evaluates each bid, with the procurement awarded to the supplier with the highest score.
Scoring summaries are appended to the bid package and retained by the Purchasing and
Payment unit.
Conflict of Interest
Any person involved in the public tender or evaluation process with a personal interest (as
defined by Ryerson’s Conflict of Interest Policy) that may impinge or reasonably be deemed by
others to impinge on their impartiality should immediately declare the conflict of interest, in
writing, to his/her supervisor. This person should withdraw from the process and relinquish all
further related duties to his/her supervisor or designate.
Vendor Protests
The Purchasing and Payment unit is responsible for maintaining a bidding process that is fair
and equitable to all interested parties. If a supplier believes the bidding process has been
comprised, he/she is invited to contact the University for possible investigation according to the
parameters outlined below:
1.
Suppliers must submit a written protest within 5 days of learning information applicable
to the protest.
2.
Once the grievance is filed, the Manager, Purchasing and Payment shall notify the
requisitioning department and the Contract Negotiator. Collectively, these parties
decide if the procurement should continue. If the contract is not yet awarded, it may be
held until the review is complete, unless the effect on the operation of the University is
more costly than the expected cost of the resolution of the protest. For contracts
already awarded, the Manager, Purchasing and Payment notifies the supplier awarded
the bid and if deemed able and necessary, may be asked to stop or hold the purchase
until the review is complete. When necessary, University legal counsel is consulted.
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Policy-Procedure
No. 1-439B
3.
January, 2001
An informal investigation is launched by the Manager, Purchasing and Payment if:
-
additional information is required to make an informed decision; or
-
the protesting supplier provided substantive reason to believe the grievance is
justified.
4.
After reviewing the information gathered from the informal investigation, the Manager,
Purchasing and Payment, in consultation with all concerned University officers and, if
necessary, legal counsel, shall issue a written determination to all involved parties.
5.
For public tenders of at least $100,000, the protesting party may choose to forward its
concern to the Ontario/Quebec or Agreement on Internal Trade (AIT) protest boards.
Jurisdiction
This policy is under the jurisdiction of the Vice President, Administration and Student Affairs
and is administered by the Executive Director, Financial Services.
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