Purchasing at McMaster
Purchasing Resources 2011
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Topics:
Purchasing Resources Overview
New Legislative Requirements
Current Public Procurement Environment
Acquiring Goods & Services
Sole/Single Sourcing
Request for Proposals (RFP’s)
Purchasing Requisition
Customs & Traffic
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“Purchasing Resources”
Assistant Vice-President
(Administration)
Financial Services
Accounts
Payable
Purchasing Resources
Travel
Customs
&
Traffic
Purchasing
Services
Treasury Operations
Mail
Services
Stores
ABB & HSc
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Purchasing Resources
www.mcmaster.ca/bms/BMS_Purchasing Resouces.htm
Mission:
Supply management through value-added services.
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Founding Principles re Procurement
• Agreement on Internal Trade (Chapter 5)
• Ontario/Quebec Trade Agreement
• Bill 122 – Procurement Directive
• Ontario Gov’t Supply Chain Guidelines
• Laws of Competitive Bidding
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Funding Agencies
CFI
• Must follow institution’s purchasing policies
• Must follow AIT
• Must follow CFI Guidelines
http://www.innovation.ca/en/programs/cfi-policy-and-program-guide
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Funding Agencies
Tri-Council
• Must follow institution’s purchasing policies
• Must follow AIT
• In accordance with Tri-Agencies’ Policies,
Regulations and Guidelines



Eligibility
Compliance
Approval – Grantee or Delegate
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How to Acquire Goods & Services
1. How much is the purchase?
2. Are approvals required beyond your unit?
i.e. IT (CIO’s office), Research (Research/Finance)
Note:
Approvals are SIGNATURES
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How to Acquire Goods & Services
3. Should the purchase be bundled with other
purchases?
4. Must consider the full payment over the term of
the contract i.e. 2 year engagement
5. Application forms the basis of the budget.
Once funds received, purchasing policy must
be followed.
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How to Acquire Goods & Services
Goods less than $2,500
Item secured by end user via
 Systems Contract Supplier; e.g. Grand and Toy
 Departmental Acquisition Card
 Invoice payable by Cheque Requisition
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How to Acquire Goods & Services
Goods > $2,500 & < $10,000
1 quotation secured by end user
Requisition for purchase to be sent to Purchasing
Services
Goods > $10,000 & < $50,000
3 (new April 1, 2011) quotations secured by Requisitioner or
Purchasing Services
Requisition for purchase to be sent to Purchasing Services
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How to Acquire Goods & Services
Goods > $50,000
 Formal bidding required through Request for Proposal
(RFP)
Goods > $100,000
 Formal bidding required through Request for Proposal
(RFP)
 Posted on MERX
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Exception: Sole/Single Source
Sole Source:
Only supplier due to proprietary rights
Single Source:
Multiple suppliers available but rationale for
single sourcing
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Exception: Sole/Single Source
Use: Sole/Single Source Certificate
http://www.mcmaster.ca/bms/forms/sole%20source.pdf
1.
Requester initiates completion of form at beginning of
procurement cycle
2.
Attach quotes, if applicable
3.
Select reason for sole/single sourcing
4.
Complete “rationale” supporting sole/single sourcing
5.
Obtain approval
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Exception: Sole/Single Source
Prior Approval Required by:
1.
2.
3.
4.
Requester
Account Holder
1 Level Higher than Account Holder i.e. Chair
Director of Purchasing Resources
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Exception: Sole/Single Source
Effective April 1, 2011 re Consultants
“Consultant” means a person or entity that under
an agreement, other than an employment
agreement, under a fee-for-service arrangement,
provides expert or strategic advice and related
services for consideration and decision-making,
usually in the form of a report.
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Exception: Sole/Single Source
“Contractor/Professional Service” is a person or
entity retained under a fee-for-service
arrangement, that is not an employment
agreement, to perform specific tasks under a
client’s direction for a limited period of time.
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Exception: Sole/Single Source
Effective April 1, 2011 re Consultants
• All consulting services must be bid regardless of
dollar value.
• For non-competitive, in accordance with AIT
exemptions only, approvals are:
$0-999,999
>$999,999
President
Board of Governors
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Terms and Conditions to Consider
•
•
•
•
•
•
•
•
•
•
Life cycle costing
Consumables
Sustainability
Acceptance testing
Warranty
Training
Post warranty maintenance costs
Payment terms
Payment tied to deliverables
Delivery timeframe (work backwards from date needed)
NOTE:
Do not sign supplier’s quotations/proposals/agreements
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Low Bid
Low bid ≠ Award
Best Value = Award
(high score wins)
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Request for Proposals (RFP)
Standard Sections
Section 1 – Purpose & Content (Some customization)
Section 2 – Instruction to Bidders
Section 3 – Evaluation & Award
*** >$100,000 – must add evaluation criteria
Section 4 – Award Contract
Section 7 – Purchase Order T’s & C’s
Section 10 – Mailing Label
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Evaluation Methodology
>$100k must have weighted criteria
Example:
• Total Acquisition Cost
• Technical Evaluation
• Ability to Deliver Services
• Bidder’s Methodology to assist Community Partners
convert/transform to a different platform from current
• Sustainability Goals
• Ability to provide all groupings
40%
19%
19%
10%
7%
5%
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Request for Proposals (RFP)
Customization Required
Section 5 – Special Terms and Conditions
Section 6 – Functional Requirements
Section 8 – Request for Proposal CFI Submission
Format
Section 9 – Summary Proposal Form
***may add as many sections as needed in order to customize
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Request for Proposals (RFP)
Timing
• Allow 2 weeks for review and finalization
• MERX Posting – minimum 15 calendar days
**** strongly recommend 3 weeks (15 business
days)
NEW April, 2011 – complex RFP’s – 30 days
• Allow 2-4 weeks for evaluation
Total Elapsed Time: minimum 7-8 weeks + delivery
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Request for Proposals (RFP)
• Suppliers must obtain RFP from MERX
• Formal Closing to Purchasing Resources
• Must be signed & received on time in Purchasing Services
• All communication is routed through Purchasing Services
• Conflict of interest must be followed
• Evaluation must be provided to support award
• Scoring of suppliers’ proposals must be in accordance with the RFP
weighting criteria
• Original proposals and purchase orders/contracts are kept in
Purchasing Services
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Request for Proposals (RFP)
How can you help?
• Provide supplier list
• Provide functional specifications
• Explain need for special terms and
conditions
• Point suppliers to Purchasing Services
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Purchase Requisition
Purchase Requisition required regardless of
dollar value:
 Perishables
 Radioactive material
 Purchases for Health Sciences Centre
 P.O. requested by supplier
 Purchases from non-Canadian suppliers
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Purchase Requisition
http://www.mcmaster/ca/univsec/bylaws/BoardBy-laws.pdf
•
•
Attach approved Sole/Single Certificate with
requisition when seeking approval
Obtain approval to purchase based on “Execution of
Instruments: - (By-Laws of the Board of Governors of McMaster University,
Appendix E – RESOLUTION RESPECTING THE EXECUTION OF INSTRUMENTS)
•
Research Finance approves all research purchases
(pre approval >$2,500)
Note: Contracts must be signed by the same levels as the
requisition
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Responsibilities
Customer
 Understands department/program’s operations and requirements
 Responsible for budget and planning; e.g. determines what equipment and
services are needed, when and where
 Initiates the purchase in accordance with University policy
 Complete thorough evaluation in accordance with RFP
 Provides technical expertise
Purchasing Services
 Responsible for understanding purchasing statutes, rules, policies, procedure
and industry best practice
 Working with customer to facilitate purchases
 Support and advise on best resolution of procurement problems
 Must comply with all Provincial, Federal and funding agency requirements
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Forms
Available at:
http://www.mcmaster.ca/bms/BMS_Forms.htm
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Customs and Traffic
 Clearing and expediting of incoming and outgoing shipments
 All U.S. and International orders (including on-line) must be
purchased through Purchasing Services to ensure compliance with
Customs rulings
How can you help?
 Respond promptly to queries from the Customs and Traffic
department
 Ship online using FedEx Ship Manager
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Commodities
Major Construction/Custom Hardware & Software
Angelo DiLettera, Supervisor
x21629
dilett@mcmaster.ca
MRO/Desktop HW & SW
Barb Christianson, Purchasing Office
x24587
christb@mcmaster.ca
Office/Animal/Engineering
Linda Leo, Purchasing Officer
x24678
leolin@mcmaster.ca
Library/Leasing/Contracts
Carol Fletcher, Purchasing Off/Admin
X24297
fletchc@mcmaster.ca
Scientific/Medical/Hospitality
Nina Gilners, Purchasing Officer
x22216
gilners@mcmaster.ca
General Assistance
Roxanne Headrick, Reception
x24413
headric@mcmaster.ca
Gases/Appliances/Security/Apparel/Miscellaneous
Sarah Nunes, Purchasing Assistant
x22217
nuness@mcmaster.ca
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HELP!
Accounts Payable:
Telephone: General enquiries x24333
Fax:
905-572-1015
Customs and Traffic:
Telephone: x24358
Fax:
905-529-0433
Mail Services:
Telephone: x24286
Fax;
905-540-1039
Purchasing Services:
Telephone: General enquiries x24413
Fax:
905-572-1015
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HELP!
Stores:
ABB Stores:
Telephone:
Fax:
x24668
905-522-0554
Health Sciences Stores:
Telephone:
x22337
Fax:
905-572-7506
Travel:
Telephone:
x24520
Fax:
905-572-1015
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