1 Purchasing at McMaster Purchasing Resources 2011

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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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AccountsPayable

Purchasing Resources Treasury OperationsFinancial Services

TravelCustoms

&Traffic

PurchasingServices

MailServices

StoresABB & HSc

Assistant Vice-President(Administration)

“Purchasing Resources”

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www.mcmaster.ca/bms/BMS_Purchasing Resouces.htm

Mission:

Supply management through value-added services.

Purchasing Resources

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• Agreement on Internal Trade (Chapter 5)

• Ontario/Quebec Trade Agreement

• Bill 122 – Procurement Directive

• Ontario Gov’t Supply Chain Guidelines

• Laws of Competitive Bidding

Founding Principles re Procurement

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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

Funding Agencies

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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 & < $10,0001 quotation secured by end userRequisition for purchase to be sent to Purchasing

Services

Goods > $10,000 & < $50,0003 (new April 1, 2011) quotations secured by Requisitioner or

Purchasing ServicesRequisition for purchase to be sent to Purchasing Services

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How to Acquire Goods & Services

Goods > $50,000Formal bidding required through Request for Proposal

(RFP)

Goods > $100,000Formal 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 Certificatehttp://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. Requester

2. Account Holder

3. 1 Level Higher than Account Holder i.e. Chair

4. 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 President

>$999,999 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 criteriaExample:• Total Acquisition Cost 40%• Technical Evaluation 19%• Ability to Deliver Services 19%• Bidder’s Methodology to assist Community Partners

convert/transform to a different platform from current 10%• Sustainability Goals 7%• Ability to provide all groupings 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 evaluationTotal 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:

PerishablesRadioactive materialPurchases for Health Sciences CentreP.O. requested by supplierPurchases from non-Canadian suppliers

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Purchase Requisitionhttp://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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ResponsibilitiesCustomer

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: x24668

Fax: 905-522-0554

Health Sciences Stores:

Telephone: x22337

Fax: 905-572-7506

Travel:

Telephone: x24520

Fax: 905-572-1015