NUMBER 130
APPROVAL DATE 04-03-1990
LAST AMENDMENT 01-31-2011
LAST REVIEWED
NEXT REVIEW DATE 01-2016
PURCHASING AND COMPETITIVE BIDDING
Approval Authority President
Responsible Executive Chief Financial Officer
Related Policies / Legislation Board Policy on Signing Authority (BRP-205.02)
Board policy direction Financial Management (BPD-205)
Spending Authority (196)
PURPOSE
The purpose of this policy is to guide UFV in managing its purchases by setting parameters that ensure
that the university obtains the best value for its expenditures while maintaining high legal, ethical,
managerial and professional standards in the management of the resources entrusted to it as a publicly
funded institution.
POLICY
The University will provide reasonably priced, high quality goods and services to end users, while
preserving organizational, financial and regulatory accountability.
REGULATIONS
Delegation of Authority
This policy governs the acquisition of goods and services, by purchase or lease, with University funds
from all sources.
The interpretation of this policy and related Signing Authority Policy is the responsibility of the
President who will provide the administrative direction to carry out the policy. Further administrative
direction is included in Appendix A.
Notwithstanding any other provision in this policy, all requisitions, purchase orders, contracts or
agreements, must be executed prior to the receipt of goods or provision of services.
UFV will acquire goods in a manner that:
a. achieves value for money by incurring the lowest cost in the fulfillment of specified needs with
appropriate levels of quality and service;
b. uses a fair and open process when calling for, receiving, and evaluating competitive bids;
c. meets its statutory, legal, environmental and ethical obligations in the acquisition of goods and
services by purchase or lease;
d. provides an audit trail that meets the requirements of our external funding bodies and auditors.
Purchasing Principles
The goals and principles of the University’s Purchasing Division are:
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1. Public Sector Purchasing Practices - Purchase goods and services in accordance with competitive
public sector purchasing practices recognized by the Province of British Columbia, the University of
the Fraser Valley and the Purchasing Management Association of Canada.
2. Ethical Purchasing - Follow the guidelines set out in the code of ethics established by the
Purchasing Management Association of Canada.
3. Efficient Procurement - Procure the necessary quality and quantity of goods and services in an
efficient, timely and cost effective manner by reviewing the entire process and savings, not only
the price of the products but also the value-added benefits that they provide, while maintaining
the controls necessary for a public institution. Provide purchasing discretion and flexibility for the
university departments within the granted authority and subject to optimizing best value for the
University as a whole.
4. Open and Fair Bidding Process - Encourage the most open, transparent and competitive bidding
process practicable for the acquisition and disposal of goods and services taking into account trade
agreements and settlements negotiated by all levels of government; Provide reasonable
opportunities for qualified suppliers and contractors to seek the University’s business.
5. Standardization and Simplification - Establish and renew standardization of goods where
appropriate and practical and to realize best life cycle value.
6. Healthy and Safe Procurement - Procure goods and services with due regard to our commitment
to encourage the use of “environmentally friendly” products and services without compromising a
healthy, safe, relevant and aesthetically acceptable learning and working environment.
7. Lifetime Value - Ensure the maximum value of an acquisition is obtained by determining the total
cost of performing the intended function over the lifetime of the task. This may include, but not be
limited to, acquisition cost, disposal value, disposal cost, training cost, maintenance cost, quality of
performance and environmental impact; Administrative effort and cost are to be commensurate
with the value of the purchase; Rationale will be documented for purchases made other than the
lowest price bidder.
8. Surplus Goods - Ensure that maximum value is obtained when disposing of surplus goods;
9. Sustainability - Give consideration to Sustainability with respect to economic, environmental and
social development both locally and internationally.
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APPENDICES
APPENDIX A
The purchasing function will be centralized in the Purchasing Division, with the exception of the
purchase of library books and collection materials, and bookstore merchandise.
The University Purchasing Division's services include:
 Negotiation of preferred supplier agreements that offer best value for money;
 Negotiation of "one-off" and repeat purchases;
 Information regarding competitive bid processes and procedures;
 The provision of a purchasing system.
The Purchasing Division will provide these services by employing trained staff skilled in purchasing
techniques including negotiating, contractual terms and conditions, cost reduction techniques, and
cooperative buying processes.
EXPENDITURE GUIDELINES
1) Purchases Up To $5,000
Authorized personnel in departments may obtain one or more quotes for purchases up to $5,000 and
then acquire goods using established purchasing methods. See Delegated Purchasing Authority below.
2) Purchases Between $5,000 and $25,000
Purchases greater than $5,000 and less than $25,000 will be managed by the Purchasing Division using
established purchasing methods. Some bid processes may be delegated to Departments for reasons of
practicality and expertise. Any service, lease, consultant contract, construction opportunity or supply
arrangement for the supply of services or construction, with an estimated value of less than $25,000
should be competitively bid to the extent reasonable and cost-effective.
3) Purchases Between $25,000 and $75,000 for Goods and Services or between $25,000 and $200,000
for Construction
Quotations will be received by way of a bid process (formal or informal).
 Low bids - the Director, Supplies Management may, in consultation with the applicable
Department, award ‘low bids’ up to a value of $75,000 which do not significantly vary from the
specifications and provided the expenditure is within the budget previously approved for that
project or item.
 Greater value bids - in cases where a bid is considered to give greater value than the lowest
qualified bid meeting specifications, the Director, Supplies Management may, in consultation
with the applicable Department, approve the award to the greater value bid where
documented criteria or rationale supports the award.
Exceptions to the above bid procedures may also be made when time constraints do not allow time for
the competitive bid process in instances such as;
a) When goods and services are urgently required for the delivery of education,
b) To avoid significant financial loss through damage to facilities and equipment, or
c) Where safety or operational needs require urgent attention
Under these circumstances, in consultation with the Director, Supplies Management, Departments may
obtain direct quotations from suppliers. A written Letter of Justification must accompany the
requisition submitted to the Purchasing Division who will award the contract.
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4) Purchases of Goods and Services Valued at greater than $75,000
Purchases of Goods and Services Valued at greater than $75,000 will be publicly bid advertised on the
BC Bid network and other media as appropriate. Prices will be received by way of a sealed bid process
(electronic or physical).
5) Purchases of Construction Services Valued at greater than $200,000
Purchases of Construction Services Valued at greater than $200,000 will be publicly bid, advertised on
the BC Bid network and other media as appropriate. Prices will be received by way of a sealed bid
process (electronic or physical).
6) Contracts for Facilities Maintenance Work
1. Contracts for Facilities Maintenance Work that are less than $25,000 annually:
Contracts with suppliers for maintenance goods and services in amounts less than $25,000 annually
may be awarded after obtaining verbal or written quotations from at least three (3) suppliers, unless
the market is limited.
2. Contracts for Facilities Maintenance Work that are greater than $25,000 annually:
Maintenance contracts for goods and services exceeding $25,000 annually will be competitively bid.
Delegated Purchase Authority
Authority is delegated by the Purchasing Division to designated University staff via the use of a
Purchasing Credit Card to make minor purchases of up to $1,000 per item or $1,000 per total sales
transaction. It is the University's practice to use purchasing cards for educational and departmental
procurement and payment of minor goods and services within established purchasing authorization
limits where it is efficient, economical and operationally feasible to do so.
Departments may undertake the competitive bidding practices of the University for purchases up to
$5,000. Prior to committing the University, purchase requisitions for these requests accompanied with
the appropriate data, are to be submitted to the Purchasing Division for review and the subsequent
issuing of a purchase order.
Purchase transactions in excess of $5,000 are normally to be sent to the Purchasing Division via
purchase requisition for competitive bid processes in accordance with the University's policy.
Exceptions may be approved by the Director Supplies Management or CFO.
PURCHASE OF SPECIALIZED EQUIPMENT
In the interest of standardization, economy of scale purchasing, and efficiency of maintenance service
and support, purchases of certain equipment will be subject to the approval of a central authority in
addition to regular approval requirements:
Type of Equipment / Service
Approval Authority
Computer Hardware and Software
Educational Technology equipment
CIO or Director, Information Technology Services
Furniture and Furnishings
Director, Campus Planning and Director, Facilities
Services
Telecommunications
CIO or Director, Information Technology Services
Printing
Director, Supplies Management
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Vehicles
Director, Supplies Management
Building Construction and Renovations
Director, Facilities Services
The purchase of specialized equipment will be done exclusively by the Purchasing Division. Purchasing
will coordinate supply with the applicable approval authority. Send an authorized purchase requisition
describing the required product(s) to Purchasing.
PURCHASING METHODS
The University has various methods that can be used to purchase goods and services.
Purchase Requisitions
Any request for services, supplies or equipment that is not handled by an annual blanket standing
order; service contract, system contract or purchasing card requires a purchase requisition. A purchase
requisition is a request to the Purchasing Division to initiate an action and not an authority for the
requisitioner to commit the University. The purchase requisition should be completed by the end user
and approved by the appropriate signing authority. A purchase requisition is used by the Purchasing
Division to initiate the purchase.
Purchase Orders
The purchase order is a written commitment to a vendor contracting for the supply of goods and
services. For most purchases, it represents the contract between the University and the vendor,
specifying the terms, conditions and pricing for the supply of the products or services requested.
Goods and services to be purchased as a result of a recommended award to an approved vendor, single
source vendor or the award of a contract to a successful bidder are to be covered by a purchase order,
issued by the Purchasing Division.
Systems Contracts
Systems contracts may be established to cover commonly used items based on University wide volume
requirements. These types of contracts will be covered by a contract or a purchase order and may be
established through the competitive bidding process in consultation with end users. Systems contracts
are currently in place for:
Telecommunication and Cell phone plans
Copy and Fine Paper
Software, Video, DVD
Multifunction Devices and Printers
Business Cards
Lighting, Lamp, Ballast, Light/Projector Bulbs
Laser Toner Cartridges
Fuel
Computers, Laptops and Monitors
Janitorial Supplies and Parts
Stationery Supplies
Furniture and Fixtures
Athletic Equipment and Supplies
Science Supplies
Garbage Bags
Batteries
Blanket/Standing Purchase Orders
Annual blanket or standing purchase orders may be issued for high volume bulk items such as copy
paper, envelopes, toner cartridges, custodial supplies, etc. to reduce the number of purchase orders
issued for contract items.
Service Contracts
Service contracts may be issued for the ongoing maintenance of certain types of equipment (i.e.
elevators, photocopiers, vehicles, hoists, postage meters, etc.) as deemed appropriate and cost
effective in consultation with end users. These service contracts will be covered by a purchase order.
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Competitive Bid Processes
When formal bidding procedures are used, bids will be advertised appropriately. Suppliers will be
invited to have their names placed on bidder lists to receive invitations to bid. Departments are
responsible for determining the specifications, requirements, and evaluation criteria of the equipment
or services needed and Purchasing will include these in the bid document that is distributed to
suppliers.
Formal competitive bids must be submitted by way of a sealed bid process (electronic or physical),
addressed to the University, and plainly marked with the University reference number. Competitive
bids shall be opened at the time specified and all bidders may be present. Requests for Proposals may
or may not be opened publicly however the names of bidders will be provided to all interested parties.
The University reserves the right to reject any or all bids and to accept the bid which appears to be in
the best interest of the University. The University reserves the right to waive any minor informality in,
or reject, any or all bids or any part of a bid. Any bid may be withdrawn by the supplier prior to the
scheduled time for the opening of bids. Any bid received after the time and date specified will not be
considered.
The bidder to whom an award is made may be required to enter into a written contract with the
University.
The University expects fair and honest representation on the part of persons or firms with whom it does
business. Misrepresentation on the part of a vendor or failure in the performance of its product or
service shall be considered sufficient justification for rejection of a bid and possible removal of the
vendor from the bidder's list.
Purchasing Cards
Purchasing cards will be issued to staff as approved by the authorized signing authority. These cards will
be used for purchase of small value items (up to $1000) as allowed under the purchasing card guidelines
(available from the Purchasing Division). The University does not encourage the use of personal credit
cards for expenditures that will be charged to the University. See Purchasing Card System below.
Confirmation PO's
Where a department wants to proceed with the purchase of supplies, equipment or services prior to
the paperwork being processed, they may contact the Purchasing Division with the appropriate
information and, in accordance with the established policy and procedure, a purchase order number
will be issued.
Departments will be able to give the purchase order number verbally to the supplier and the
appropriate requisition and documentation will then need to be provided to the Purchasing Division in a
timely manner.
Petty Cash
Certain departments have established petty cash floats. These funds are to be used primarily to
purchase low value miscellaneous consumable supplies of an emergent nature. The purchase of
equipment from these funds is not permitted and the petty cash system should not be used to
circumvent the established purchasing procedures.
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PURCHASING DIVISION PRACTICES
1. Construction Contracts
Reasonable efforts will be taken to manage risks associated with tendered construction contracts.
Procedures/Guidelines:
a) For contracts up to and including FIFTY THOUSAND DOLLARS ($50,000.00), the contractor may
be required to provide an irrevocable letter of credit or certified cheque in the amount of FIFTY
PERCENT (50%) of the contract price.
b) For contracts over FIFTY THOUSAND DOLLARS ($50,000.00), the contractor will be required to
provide a Performance Bond for a minimum 50% of the contract price plus a Labour and
Materials Payment Bond for a minimum 50% of the contract price issued by an assurance
company licensed to do business in the Province of BC.
2. Personal Use Purchases
The University's purchasing systems or procedures may not be used by individuals to purchase any
goods and services for personal use. Exceptions to this are initiatives such as the employee purchase
plan for computers and are permitted at the discretion of the CFO.
3. Conflict Of Interest
No employee of the University shall engage in or have a financial interest, directly or indirectly, in any
activity that conflicts or raises a reasonable question of conflict with his duties and responsibilities.
No employee shall sell or assist in the sale of instructional services, supplies, or equipment within or to
the University and shall not furnish lists of students or staff to anyone selling such services or materials.
The Purchasing Division is prohibited from acquiring supplies or equipment directly or indirectly from
any employee of the University.
Employees shall use the University issued purchasing card or purchase order system when making
expenditures that will be charged to the University. If not issued a UFV Purchasing Card, employees
should only use their personal credit cards for small or minor purchases and avoid the appearance of
accumulating points or some other benefits.
4. Emergencies
If an emergency occurs during normal working hours, the Director, Supplies Management or the
purchasing staff may issue a purchase order number verbally without following the normal procedures.
If an emergency occurs during non-working hours, the department or administrator should obtain the
goods or services however possible. Under both circumstances the proper documentation and account
codes should be prepared as soon as possible after the emergency.
5. Co-Operative Ventures
The Purchasing Division is authorized to participate in co-operative purchasing, joint ventures and
shared services initiatives with other public sector agencies. Expenditures of this nature will follow the
procedures established by the lead agency responsible for the initiative that may in some cases vary
from the University's procedures.
6. Professional and Consulting Services
To the extent practical the University will ensure that decisions related to the use of professional and
consulting services are handled appropriately, even though the service may be exempted by the
purchasing policy. Objective evaluation criteria should be used in selecting consultants or professionals
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and should take into consideration factors such as cost, ability, experience, and proficiency as well as
any other relevant factors. The approach used should provide an opportunity for qualified firms to be
considered and where appropriate, lead to the development of an approved list of firms for the
University for commonly used services.
7. Receiving & Reporting
It is the responsibility of the departmental signing authority to ensure that the goods and services
ordered on their behalf and delivered directly to them are properly and promptly accounted for and
received. When goods have been received in good order, a signed copy of the receiving report or,
where applicable, the packing slip, clearly quoting the purchase order number is to be promptly
forwarded to Accounts Payable.
Any goods received damaged (apparent or concealed) must be reported to the vendor and/or carrier
within 48 hours of receipt. Most vendors now require that purchasers obtain a “Return Material
Authorization” before accepting returned goods. Contact the vendor or Purchasing before returning
goods to vendors.
8. Payment Procedure
Prompt submission of the receiving report information or the packing slip to Accounts Payable will
ensure that timely payment is made to the vendor, any prompt payment cash discounts offered are
earned and good customer/vendor relations are maintained.
9. Disposal of Surplus Assets
All assets are owned by the University and are under the care, custody and control of a particular
department. The Purchasing Division is responsible for the disposal of surplus assets. Departments may
not sell or transfer equipment.
All surplus furniture and equipment should first be offered to other departments in the University
before the surplus items are disposed of in some other manner. Departments with surplus items should
advise the Purchasing Division of particulars along with the value that they would like to receive for the
goods. The Purchasing Division will co-ordinate and circulate information and attempt to match the
surplus with a need elsewhere. Interested Departments will work out the details of the transfer with
each other. The Purchasing Division will participate in the transfer by assisting in establishing fair market
value, transferring funds, updating inventory, etc.
Surplus items that cannot be relocated within our system after a reasonable period of time will be dealt
with as follows:
- Kept and stored for possible use or transfer at some later date
- Used as a trade in to reduce the purchase cost of new replacement items
- Disposed of by the Purchasing Division via established procedures
10. Special Category Expenditures
Subject to applicable University policies and procedures (including having budget funds available), these
transactions are exempted from the purchasing policy and a purchase order is not necessarily required
for the following items. If any of the transactions are processed using the University's purchasing card
then they should be reported Monthly using the Reconciliation Form.
a) Petty Cash Expenditures
b) Professional Development and Education Services
- Courses Payments / Reimbursements
- Convention/Conference Registrations
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- Memberships or Dues
- Seminars
- Periodicals / Magazines / Subscriptions
- Staff Training / Development / Workshops / Delivery Services (after necessary approval)
c) Refundable Employee Expenses
- Minor Travel Expenses, Meals, Parking, Hotel, Airlines
- Mileage Allowance / Vehicle
- Cash Advances
d) Utilities and Miscellaneous
- Postage
- Hydro
- Gas
- Telephone Service Charges
- Courier Service Charges
e) General Expenses
- Payroll Remittances
- Medical and Dental Expenses
- Licenses (vehicles, elevators, radios, etc.)
- Charges to or from other government bodies or Crown Corporations
f) Immediate Legal Services
PURCHASING CARD SYSTEM
1. Objectives
To provide a convenient and efficient method of procuring and paying for low value goods and services
by simplifying the procurement process, reducing paperwork, speeding up vendor payments and
empowering the department administrators.
2. Operational Guidelines
It is the University's practice to use purchasing cards for departmental procurement and payment of
goods and services within established purchasing authorization limits where it is efficient, economical
and operationally feasible to do so.
The purchasing card may be used for single item purchases up to $1,000 and a combined total for the
sales transaction of $1,000 per day excluding all taxes. Dollar limit and other restrictions (such as cash
advances) on the cards may be adjusted to suit the requirements of the department.
The Director, Supplies Management will establish minimum and maximum levels for annual credit limits
based on the position and need. The authorized signing authority must approve the maximum annual
credit limit for each purchasing card issued based on department requirements, size and type. Any
other additional restrictions will be communicated in writing to the cardholder. Usual policies related
to HST – HARMONIZED SALES TAX apply to purchases with purchasing cards.
COMPETITIVE BID THRESHOLDS CHART
Departments may obtain quotes for individual items valued at less than $5,000 where service and
support is not required by obtaining a written quote (or quotes) and submit to Purchasing Services
along with a duly signed Purchase Requisition provided the item is not under contract by the University.
Departments should request information from Vendors about warranty and delivery costs at the time of
obtaining a quote however Purchasing Services will confirm this information at the time of purchase
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PURCHASES OF GOODS AND SERVICES (LEASES/CONTRACTS AND CONSULTING)
Dollar Value
1. Goods
2. Services
$0 - $5,000
One to three written
quotes may be
obtained by Users and
forwarded to
Purchasing Division by
the authorized
signatory for issuance
of a Purchase Order
$5,000 - $75,000
Competitive Bid
Process by Purchasing
Division - Formal or
Informal
Process may be
delegated to some
departments where
appropriate.
$75,000+
Public Bid Process –
BC Bid
CONSTRUCTION (FACILITIES, CAMPUS PLANNING AND MAINTENANCE SERVICES)
3. Construction
Bid Process may be
delegated to the
authorized signatory
of Facilities Services or
Campus Planning’s
Project Office and
forwarded to
Purchasing Division by
the authorized
signatory for issuance
of a Purchase Order
Purchasing and Competitive Bidding (130)
Competitive Bid
Process by Purchasing
Division - Formal or
Informal
Public Bid Process – BC
Bid
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