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ProcedureProcedure
ContractPreparation
ProcedureNo.:2501-PR1 PolicyReference: 2501 Category: Finance DepartmentResponsible: SupplyManagement CurrentApprovedDate: 2016Apr28
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Objectives
TheseproceduresapplydirectlytoPolicy2501,Contracts.Theobjectivesoftheseproceduresare:1. Toachieveanorderlyreviewofallcontractsduringtheirdevelopment,sothatBCITproperlyprotects
itsreputationandbusinessinterestsinitsexternalbusinessrelationships,balancedwiththeneedsofourpartners,customers,andsuppliers.
2. ToensurethatstaffwithsigningauthorityaregiventheinformationnecessarytoassesstheoverallmeritsofagivencontractpriortocommittingBCITtoperformance.
TableofContents
Objectives 1Applicability 1Scope 2Definitions 2DutiesandResponsibilities 2
RoleofContractsManager 2LegalAdvice 3ContractRepository 3DelegationofAuthority 3
IntroductiontoContractDevelopment 3LegalReview 3RiskAssessment 4
ContractDevelopmentProcess 5Orientation 51. Pre-ApprovalPhase 52. ApprovaltoReleaseProposal 73. NegotiationPhase 74. ApprovaltoSignContract 75. StepApprovalTableforRevenueContracts 86. StepApprovalTableforResearchContracts 97. StepApprovalTableforNon-monetaryContracts108. StepApprovalTableforPropertyLeases 109. ApprovalTableforExpenditureContracts 11
FormsAssociatedWithThisProcedure 16AmendmentHistory 16
Applicability
ThisprocedureappliestoallBCITemployeeswhoareinvolvedintheplanning,negotiation,preparation,orapprovalofcontractualdocuments.
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ProcedureProcedureScope
Thisprocedureappliestoalltypesofcontractswiththefollowingexceptions:• Contractsrelatedtoemployeehiring• StudentcontractswhicharecoveredbyProcedure5100-PR1“StudentReports/Student
PerformanceContracts”
Definitions
Contract:awrittenagreementbetweentwoormorepartiesthatcreatesobligationsthatareenforceableorotherwiserecognizableatlaw.Forexample,someofthemostcommontypesofcontractualdocumentsatBCITare:
IndustryServiceAgreementsResearchGrantsDonationAgreementsFacilityRentalAgreementsFacilityAccessAgreementsPurchaseOrders,andtheirattacheddocuments(maintenanceagreements,etc.)MemorandaofUnderstanding(MOU’s)LettersofIntentAffiliationAgreementsArticulationAgreementsPropertyLeasesNon-disclosureAgreements(NDA’s)EducationalPartnershipsPropertyLeasesIntellectualPropertylicensingagreements
RevenueContract:acontractwherebyBCITwillreceivefundsforanyreason.ExamplesofRevenueContractsareIndustryServiceAgreements,ResearchGrants,FacilityAccessAgreements,FacilityRentalAgreements,PropertyLeases,andDonationAgreements.
ResearchContract:aRevenueContractarisingfromdealingswithanyofthefollowingagencies:
NationalResearchCouncil–IRAPWesternEconomicDiversification(WED)NationalScienceandEngineeringResearchCouncil(NSERC)MichaelSmithFoundationforHealthResearchICEFund(BC)BCKnowledgeDevelopmentFund(BCKDF)Anyotherfederalorprovincialgovernmentresearchfundingagency
ExpenditureContract:aBCITPurchaseOrder,withanyattachments,oranyotheragreementwherebyBCITcommitstopurchaseorrentorleaseanygoods,services,orrealproperty.
Proposal:anydocumentsubmittedtoanyexternalagencypresentingabusinessoffertowhichBCITispreparedtocommit,thatisintendedtoformthebasisofacontractorpartofacontract.
DutiesandResponsibilities
RoleofContractsManagerThispositionprovidesservicesandguidancetothecampuscommunityinrelationtotheidentification,qualification,andexecutionofexternalbusinessopportunities.Dutiesinclude:
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ProcedureProcedure
DutiesandResponsibilities
(a)Guidingthenegotiation,assessment,creation,maintenance,andmanagementofcontractstoensurethattheyrepresenttheoptimaloutcomeforBCITintermsoffinancial,educational,andstrategicobjectives(b)ReviewofcontractsasspecifiedbyBCITpoliciestoensurethatnoinordinatelegal,financial,oroperationalrisksarepresented(c)Developmentandimplementationofacontractmanagementproceduretoensurethatappropriatestaffareawareofthefinancialandnon-financialbenefitsandobligationsincontractssothatBCITmayoptimizeitsperformanceandfinancialreturn.(d)Providingadministrativeservicesrequiredtoexpedite,manage,andreportonBCITcontractssothatinformationisreadilyavailablefordevelopingcost-effectiveandefficientstrategiesandprocedures.
LegalAdviceStaffwishingtoseeklegaladvicepertainingtocontractsrequiretheapprovaloftheinitiatingVicePresidentandtheVicePresident,FinanceandAdministration,priortocontactinganylegaladvisors.
ContractRepository
TheoriginalsofallexecutedcontractualdocumentsaretoberetainedbytheContractsManagerintheBCITContractRepository(vault),andelectronicallyinventoriedinboththeBCITRecordsManagementSystemandtheContractManagementDatabase.
DelegationofAuthority
Employeesauthorizedtosigncontractualcommitmentsmaydelegatetheirsigningauthority,intheirabsenceandforaspecifiedperiodoftime,toresponsiblenomineessubjecttothefollowingrestrictions:
• Thedelegatedauthoritymustbeformallydocumentedbye-mailorinwrittenform.• Theauthorizeddollarlimitsmustnotexceedthenormallimitssetoutfortheoriginalsigning
officers.
IntroductiontoContractDevelopment
TheseproceduresimplementtheContractDevelopmentProcessinorderto:• ProvideBCITapprovalauthoritieswithallinformationnecessarytoassesstheoverallvalueof
anycontractpriortocommittingBCITtoperformance• Achieveanorderlyreviewandapprovalofallcontractsduringtheirdevelopment
AllcontractsenteredintofororonbehalfofBCITmustcomplywiththeapprovedpoliciesoftheInstitute.Contractsmayconsistof,butarenotlimitedto,revenue,expenditure,ornon-monetarydocuments.BCITemployeesareresponsibletoensurethatallcontractsareprocessed,approved,andsignedinaccordancewiththeseprocedures.
LegalReview
TheContractsManagerwillreviewthetermsandconditionsofeveryproposalandcontractrecommendedforsignature.
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ProcedureProcedureTheContractsManagermayrecommendamoredetailedreview:
a) wheretherearesignificantdeviationsfromBCITstandardconditions(templateswhereappropriate),or
b) wheretherearetermsproposedthatcouldposesignificantrisktoBCIT,orc) whenBCIThasneverparticipatedintheparticulartypeofarrangementbeingproposed.
Thiswillinitiallyinvolveadiscussionwiththecontractinitiator,whichmayleadtonegotiationswiththecustomerorsupplier.Dependingontheoutcomeofthenegotiations,theContractsManagermayconsultwithBCgovernmentgroupssuchastheRiskManagementBranchandtheIntellectualPropertyBranch,thefederalgovernment,provincialWorkSafe(WCB)organizations,andothers.Inaddition,itmaybeprudenttoconsultwithlegalcounsel.Thedegreetowhichlegalcounselbecomesinvolveddependsontheseverityandcomplexityofthepotentialrisksintheparticularsituation,andshallbedeterminedbytheContractsManager,whoshallcoordinateallassistancefromoutsidelegalcounseloncontractualmatters.
RiskAssessment
Theinitiatorisresponsibleforidentifyingandassessingtherisksassociatedwithenteringintoanyparticularcontract,andthismustbedocumentedinthePre-approvalPhase.TheContractBriefwilladdressmostissues,particularlythoseassociatedwiththesubjectmatterandactivitiestobedonebyBCIT.Itmayalsobenecessarytoperformmoredetailedfinancialduediligenceincertaincircumstances.Theneedforsuchanassessmentwouldoccurunderconditionssuchasthefollowing:
• Theproposedcontractisthefirstbusiness-dealingbetweenthecustomerandBCIT.• Therehasbeennobusinesswiththiscustomerinthepreviousthreeyears.• ThereisreasontobelievethecustomermayhavedifficultypayingtheBCITinvoicesas
required.• Asignificantamountofworkmustbedonepriortoinvoicingthecustomer.• ThecustomerhasanoutstandingbalanceowingtoBCIT.• Thecontractisforanamountover$100,000.
FinancialServiceswillassistinthisassessmentuponrequestfromtheschooldepartment.
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ProcedureProcedure
ContractDevelopmentProcess
OrientationThefollowingchartillustratesthedevelopmentprocessforcontracts.Amoredetaileddescriptionofthestepsincontractdevelopmentfollowsthechart.Matrices(tables)areprovidedtoindicatetheappropriatesigningauthoritiesforthedifferentmonetaryvalues,throughoutthecontractdevelopmentprocess.Inaddition,examplesoftherequiredformsareshownattheendofthisprocedure,withinstructions.Theblankformsthemselvesareaccessedasseparatedocuments.
1. Pre-ApprovalPhaseInthisphase,thecontractinitiatorundertakesallactivitiesnecessarytoprepareandsubmitaproposaloroffertoacustomerthat,ifaccepted,couldresultinabindingcontractwithBCIT.Theseactivitiesmaybeinformalandarecarriedoutinamannerspecifictotheschool/department.
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ProcedureProcedureTherevenueopportunitymaybeinresponsetoacustomerrequest,suchasaninformalrequest,letterrequest,formalRequestforProposals(RFP),orcallforgrantapplications.Thecontractinitiatorpreparestheformaldocuments(proposal,draftcontractterms,grantapplication,etc.)tobesubmittedtoacustomerorfundingagency.
Typicalactivitiesinthisphaseinclude:
• Conductinganeedsassessmentinthemarket• Identifyingpossiblecustomers• CheckingtheBCITContractsRepositorydatabaseforpreviouscontracts• Qualifyingpossiblecustomers• Establishinganypartnershipsneeded• Identifyingpossiblecompetition,etc.• Definingrequirements• WritingatechnicalsubmissionorStatementofWork• Refiningmarketinformation• Pricing/costing• Developinganimplementationplan• Detailingprojectbudgetsandfinances• Draftingprojectplansandschedules• Preparingstaffingrequirements(includingreleasetime,etc.)• Engagingincustomermeetings/demonstrations• Attendingconferencesandsitetours• Finalizingallrequirements• ObtainingapprovalfromResearchEthicsBoardand/orotherapprovalsperBCITresearch
policies• Doingafinancialanalysisoftheanticipatedaward• Writingacompletecommercialproposalwithpricing,scheduling,andcontractterms(draft
agreementtemplatesforselectedtypesofcontractsareavailableatwww.supply.bcit.ca/forms)
• Preparingaformalresponsetoaspecificformordocumentifrequired
(a)TheContractbriefThecontractinitiatorisresponsiblefordevelopingtheContractBrief,whichistherecordusedtosupporttherequest(s)forapproval.SuggestedformsfortheContractBriefaregivenatFigures2and3,buttheycanbetailoredtothespecificopportunities.
(b)Proposalformat
Whilethereisnospecificformatortemplateforproposalsingeneral,theycanbewritteninaformat,chosenbytheSchool/Department,thatiscompliantwiththeinstructions,ifany,fromthecustomer.TheContractsOfficecanofferassistanceinthewritingofproposals.
(c)Draft(sample)contract
Customersoftenrequirethatasuppliersubmitadraftcontractaspartoftherequestedproposal.Thiscanbeablankortemplateformthatcontainsonlygenerictermsandconditions,withnodeal-specificinformation.Evenwhennotspecificallyrequired,itisusuallygoodpracticetoincludeadraftcontractwithaproposal.Toprepareadraftcontract,theschool/departmentcaneitherconsulttheBCITFinancialServiceswebsite(www.bcit.ca/financialservices)toselectanappropriatetemplate,orcontacttheContractsManagerdirectlyforassistance.Note,perStep1approvallevels,thattheContractsManagermustreviewanyproposedcontracttermsbeforetheyarereleasedtoacustomer.
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ProcedureProcedure2. ApprovaltoReleaseProposal
(Step1inillustration)AtStep1,therelevantauthoritiesgrantpermissiontoformallyreleaseaspecificbid,proposal,grantapplication,ordraftcontractinresponsetoacustomerrequest.
(a)TheContractInitiator
ThecontractinitiatorpresentstheContractApprovalForm(availableatwww.bcit.ca/financialservices)andtheContractBrief(attachedtoacopyoftheproposal/application)totherelevantauthorityintheschool/department,theContractsManager,andtheappropriateexecutiveauthority(asindicatedintheStepApprovalMatrixbelow),eitherinameetingorbycorrespondence.
(b)TheauthoritiesTheauthoritiessigntheContractApprovalform(Step1approvalsection),tosignifyStep1approval.
(c)TheInstitutedatabase
TheInstitutedatabaseisnowamendedtoincludetheContractBrief,theStep1Approval,andacopyoftheproposal.
3. NegotiationPhase
Thesecondphaseconsistsofnegotiationwithacustomerwhohasexpressedinterestintheproposedcontractbutwishestonegotiatesomechanges.Changesmayincludeworkscope,pricing,contractterms,orallthree.Theremaybeare-submissionofbidsatthispoint(abest-and-final-offerorsimilararrangement).Dependingonthecomplexityanddollarvalue,andthenatureoftherevisionstotheproposal,theStep1approvalauthoritymayrequestanotherStep1approvalpriortosubmissionoftherevisedbid.Thisphaseiscompletedwhenacompletecontracthasbeenconditionallyagreedtobetweentheparties,subjecttofinalreviewandformalapprovalbytheirrespectivesigningauthorities.
4. ApprovaltoSignContract
(Step2inillustration)ThisisthepointatwhichBCITformallyandlegallycommitstoperformacontract.(a)Thecontractinitiator
ThecontractinitiatorupdatestheContractBrieftoreflectanychangesarisingfromthenegotiations.
(b)ThecontractbriefAtthispoint,theContractBriefmustincludeadetailedpaymentschedule,inExcelformatasappropriate.
(c)Thecontractinitiator
ThecontractinitiatorpresentstheContractApprovalFormandtheContractBrief,attachedtoacopyofthecontract,totherelevantauthorityintheschool/department,theContractsManager,andtheappropriateexecutiveauthority(asindicatedintheStepApprovalMatrixbelow),eitherinameetingorbycorrespondence.
(d)TheauthoritiesTheauthoritiessigntheContractApprovalform,tosignifyStep2approval.
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ProcedureProcedure(e)Thecontractinitiator
ThecontractinitiatorisresponsibleforobtainingandsendingafullyexecutedoriginalsignedcopyofthefinalcontracttotheContractsManagerforfilingintheContractsRepository.ItmustbeaccompaniedbytheassociatedContractApprovalFormandanyattachments,indicatingthatappropriatereviewshavebeendone,anddocumentingtheresolutionofanyconcernsorcautionsbroughtupbythesigningauthoritiesorothers.
(f)TheInstitutedatabase
TheInstitutedatabaseisnowamendedtoincludetheupdatedContractBrief,theStep2Approval,andthefinalcontract.
5. StepApprovalTableforRevenueContracts
Thistableindicatestherelevantsigningauthorityorauthoritiesrequiredtoapprovethestepandprogresstothenextphase.
EstimateUnknownValuesForcontractsthatarepricedonaunit-pricebasis,andforwhichthequantitiesareindefiniteorunknownatthetime,thereasonablyexpectedaggregatevalueoverthelifethecontractmustbeused,todeterminetheapprovalauthorityneeded.
Step1
Step2
DOLLARVALUE
Recommendationtoreleaseproposal
MandatoryReview
Authoritytosignproposal
Recommendcontractforsignature
MandatoryReview
Signcontractualdocument
Over$1,000,000
1.InitiatingDean/Director2.VPAdmin.CFO3.President
ContractsManager(Finance)
BoardofGovernors
1.InitiatingVP2.VPAdmin.&CFO
ContractsManager(Finance)
1.BoardofGovernors2.President
Upto$1,000,000
1.InitiatingDean/Director2.VicePresident3.VPAdmin.&CFO
ContractsManager(Finance)
PresidentorVPAdmin.&CFO
1.InitiatingDean/Director2.InitiatingVP
ContractsManager(Finance)
1.President2.VPAdmin.&CFO
Upto$500,000 1.InitiatingDean/Director2.VPAdmin.&CFO
ContractsManager(Finance)
VPAdmin.&CFO 1.InitiatingDean/Director
ContractsManager(Finance)
1.VPAdmin.&CFO2.InitiatingVP
Upto$50,000 1.InitiatingDean/Director
ContractsManager(Finance)
InitiatingDean/Director
1.InitiatingAssociateDean
ContractsManager(Finance)
InitiatingAssociateDean
Upto$5,000 n/a n/a n/a n/a Notrequired* InitiatingAssociateDean
*TheBoardofGovernorsmustapproveallcontractsover$1,000,000(withtheexceptionofPropertyLeases).UponwrittenapprovalbytheBoardofGovernors,thePresidentmaysignthecontractualdocument.
*Contractsunder$5,000donotrequirereviewbytheContractsManageriftheycontainBCITstandardtermsandconditionswithnomodificationsoradditions.
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ProcedureProcedure
6. StepApprovalTableforResearchContractsThistableindicatestherelevantsigningauthorityorauthoritiesrequiredtoapprovethestepandprogresstothenextphase.
EstimateUnknownValuesForcontractsthatarepricedonaunit-pricebasis,andforwhichthequantitiesareindefiniteorunknownatthetime,thereasonablyexpectedaggregatevalueoverthelifethecontractmustbeused,todeterminetheapprovalauthorityneeded.
Step1
Step2
DOLLARVALUE
Recommendationtoreleaseproposal
MandatoryReview Authoritytosignproposal
Recommendcontractforsignature
MandatoryReview Signcontractualdocument
Over$1,000,000
1.InitiatingDean/Director2.VPAdmin.&CFO3.President
VPResearchContractsManager(Finance)
BoardofGovernors
1.InitiatingVP2.VPAdmin.&CFO
VPResearchContractsManager(Finance)
1.BoardofGovernors2.President
Upto$1,000,000
1.InitiatingDean/Director2.VicePresident3.VPAdmin.&CFO
VPResearchContractsManager(Finance)
PresidentorVPResearch
1.InitiatingDean/Director2.InitiatingVP
VPResearchContractsManager(Finance)
1.President
2.VPAdmin.&CFO
Upto$500,000
1.InitiatingDean/Director2.VPAdmin.&CFO
VPResearchContractsManager(Finance)
VPResearch 1.InitiatingDean/Director
VPResearchContractsManager(Finance)
1.VPAdmin.&CFO
2.VPResearch
Upto$50,000
1.InitiatingDean/Director
VPResearchContractsManager(Finance)
InitiatingDean/Director
1.InitiatingAssociateDean
VPResearchContractsManager(Finance)
InitiatingAssociateDean
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ProcedureProcedure
7. StepApprovalTableforNon-monetaryContractsThischartindicatestherelevantsigningauthorityorauthorities,whichdependsonthestageoftheprocess(whichstep)andonthetypeofagreement.
TypeofAgreement
Step1 Step2
Recommendationtoreleaseproposal
MandatoryReview*
Authoritytosignproposal
Recommendcontractforsignature
MandatoryReview1
SignContractualDocument
Non-DisclosureAgreements
InitiatingDean/Director
ContractsManager(Finance)
InitiatingDean/Director
InitiatingDean/Director
ContractsManager(Finance)
InitiatingDean/Director
AffiliationAgreements
InitiatingDean/Director
ContractsManager(Finance)
InitiatingDean/Director
InitiatingDean/Director
ContractsManager(Finance)
InitiatingDean/Director
MemorandaofUnderstanding(MOU’s)
InitiatingDean/Director
ContractsManager(Finance)
InitiatingDean/Director
InitiatingDean/Director
ContractsManager(Finance)
InitiatingDean/Director
LettersofIntent
InitiatingDean/Director
ContractsManager(Finance)
InitiatingDean/Director
InitiatingDean/Director
ContractsManager(Finance)
InitiatingDean/Director
ArticulationAgreements
InitiatingDean/Director
ContractsManager(Finance)
InitiatingDean/Director
InitiatingDean/Director
ContractsManager(Finance)
InitiatingDean/Director
EducationalPartnerships
InitiatingDean/Director
ContractsManager(Finance)
VicePresidentEducation
InitiatingDean/Director
ContractsManager(Finance)
VicePresidentEducation
orPresident
SignificantAgreements2
InitiatingDean/DirectorVPAdmin.&CFO
ContractsManager(Finance)
President InitiatingDean/DirectorVPAdmin.&CFO
ContractsManager(Finance)
President
8. StepApprovalTableforPropertyLeases
Thischartindicatestherelevantsigningauthorityorauthorities,whichdependsonthestageoftheprocess(whichstep)andonthetypeofagreement.
TypeofAgreement
Step1 Step2
OfferPreparation MandatoryReview* Recommendcontractforsignature
SignContractualDocument
PropertyLeaseAgreements(upto10,000sq.ft.)
CorporateServices ContractsManager(Finance&CorporateServices)
CorporateServices Director,CorporateServicesandVPAdmin.&CFO
PropertyLeaseAgreements(greaterthan10,000sq.ft.)
CorporateServices ContractsManager(Finance&CorporateServices)
CorporateServices DelegatedsignoffbytheBoardofGovernorstothePresidentandVPAdmin.&CFO
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ProcedureProcedure
Non-MonetaryContracts–Notes1MandatoryReview
a) TheContractsManagermustreviewandapprovealldocumentsthatdeviatefromapprovedtemplates.b) TheContractsManager’sapprovalisnotrequiredfordocumentspreparedfromapprovedBCITtemplates
withnomodifications.2SignificantAgreements
TheseareagreementsthatmayposeextraordinaryrisksorhaveasubstantialimpactonBCIT.Examplesofsignificantagreementsarelistedbelow.ThislistreflectssomeareasofparticularconcernthatcallfordiligencebyeveryonewithinBCITinvolvedwiththetransaction.BeforeBCITentersintoanysignificantagreement,theremustbeappropriatedocumentedreviewandapprovaloftheproposedtransaction,includingreferencetoBCITexternallegalcounselwhereverapplicable.TheContractDevelopmentProcessachievesthis.Compliancewiththeseguidelinesrequiresprudentprofessionaljudgementinthecontextofriskmanagementobligations.Notethatthedollarvalueofacontractisnotnecessarilyanaccuratemeasureoftheriskassociatedwithit.
Examplesofsignificantagreementsinclude:a) Agreementswithrespecttotheacquisitionanddisposalofrealpropertyorothersubstantialassetsof
BCIT.b) Agreementsinregardtothelicensing,sale,orotherdispositionofBCITtechnologyorintellectual
property.c) Agencyagreementsforactivitiesinothercountries.SuchactivitiescanhaveanimpactnotonlyonBCIT
butalsoontheBCorCanadiangovernmentsduetolegislativerequirementsandpoliticalsensitivities.d) Agreementsthathavestatutory,regulatory,certification,orexportcontrolimplications.e) Agreementsorarrangementsthatcaninanywaybeinterpretedaslimitingcompetitionorrestraining
trade,accordingtocompetitionlegislation(AgreementonInternalTrade[AIT],NorthAmericanFreeTradeAgreement[NAFTA],ortheGeneralAgreementonTariffsandTrade[GATT]).
f) AgreementsthatbytheirnaturerequirereviewbyspecializedgroupssuchasTax,Finance,RiskManagement,Insurance,orIndustrialRelations.
g) AgreementswhereBCITisenteringintoajointventure,partnership,orsimilarlegalrelationshipwithanotherinstitutionorprivatecompany,particularlyiftheotherentityisoutsideCanada.
h) AgreementsenteredintobyBCITwhere,asamarketingstrategy,thereisreferencetoasignificantBCITpartnerortheBCgovernment,therebypossiblyexposingeitherorbothtoliability.
9. ApprovalTableforExpenditureContractsExpenditurecontractsmustbereviewedandapprovedaccordingtoPurchasingproceduresandsignedaccordingtoPolicy2501,Contracts.
ExpenditureContractsmustbeauthorizedasfollows:
DollarAmount MandatoryReview** RequiredSignature
Over$1,000,000 ContractsManager(Finance) BoardofGovernors*
Upto$1,000,000 ContractsManager(Finance) President
Upto$500,000 ContractsManager(Finance) VPAdmin.&CFO
Upto$250,000 ContractsManager(Finance) DirectorSupplyMgmtorAssistantDirectorSupplyMgmt
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ProcedureProcedureUpto$75,000 ContractsManager(Finance) SeniorBuyer
Upto$50,000 ContractsManager(Finance) Buyer
PurchaseOrdersmustonlybeissuedafteraPurchaseRequisition(PR)hasbeenpreparedandapprovedpursuanttorelevantPurchasingpoliciesandprocedures.
*TheBoardofGovernorsmustapproveallcontractsover$1,000,000.UponwrittenapprovalbytheBoardofGovernors,thePresidentmaysignthecontractualdocument.
**ExpenditureContractsdonotrequirereviewbytheContractsManageriftheycontainonlyBCITstandardtermsandconditionswithnomodificationsoradditions.
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ProcedureProcedure
InstructionsforContractApprovalFormUseforRevenueandNon-monetarycontracts
BCITContractNo.____________
REQUESTED APPROVAL PROJECT DESCRIPTION {Draw a heavy border around the correct step number, corresponding to the approval being requested}
{Provide a brief summary of the anticipated project, scope of services, products, curriculum etc.}
Step 1 Approval to Release Proposal Step 2 Approval to Sign Contract
FINANCIAL SUMMARY Accounting Codes {Provide fund, organization, and account codes for this contract} Contract Price {Provide an estimate of the total revenue or expense at the time of the
requested approval} Costs: - BCIT Labour {Fully burdened labour including salary, benefits, overhead} - Outside Labour {Any purchased services, including taxes} - Purchased Equipment {Any purchased/leased equipment costs, software, computers, etc.
including taxes} - Other Costs {All other costs including travel, disbursements, purchased curriculum,
etc. itemized as much as possible} Surplus/Deficit {Total revenue less total costs (deficits in brackets)} Payment Schedule (attach spreadsheet if necessary)
{Specify the month, year, and amount of each expected payment. Use a separate spreadsheet if there are more than 4 payments.
APPROVALS
APPROVAL AUTHORITY TITLE SIGNATURE DATE
Initiating School/Department Approval
Dean {See Sections 3,4 and 5 for approval levels}
Contracts Review Contracts manager {See Sections 3,4 and 5 for review requirements}
BCIT Approval VP Finance & Admin. {See Sections 3,4 and 5 for approval levels}
Figure1:InstructionsforContractApprovalForm
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ProcedureProcedure
CONTRACT BRIEF - REVENUE
Whoisthecustomer?Wherearetheylocated?Isthecustomerfinanciallysound?
Givethenameofthecustomer,itsaddress,corporatestatusandevidencethattheentityisfinanciallysound
Whatisthescopeofwork?Products?Systems?Courseware?
Describewhatistobedone,inenoughdetailtoconveyanunderstandingtoarelativelyuninformedreader.
Howlikelyistheprojecttogoahead?
Describewhyyouthinkthisprojectwillactuallyhappen.Showevidenceofthecommitmentdemonstratedbythecustomer.
WillBCIThaveanypartnersinthisproject?Identifyanysignificantbusinessrelationshipsanddocumentation(MOU’setc)
Whoisthecompetition?Howlikelywillwewin?Competitiveanalysis.
IsBCITcompetingwithotherstowinthisproject,andhowlikelyisitthatwewillactuallybeawardedthework.
Whenwillthecontractbeawarded? Presenttheprojectschedule.
Doesthisopportunityfitourproductline,businessstrategy,goals?
DescribehowthisprojectisconsistentwiththeBCITmission,goalsandstrategy.
Isitinourplanofidentifiedopportunities,oranunplannedopportunity?
Describehowweheardofthisopportunity,andhowBCIThasplannedforitsimplementation.
DoesthisinvolveanadditiontoorchangeinBCIT’sofferedprograms?Ifso,doesitrequireanyinternalorexternalaccreditationprocess?
Describetheacademiccontentofthework,ifany,andanyapprovalsrequired.
Whatistheanticipatedvalueoftheaward?(Reasonablyexpectedaggregatevalueoverlifeofcontract)
Describethedollarvalueandthetimeframeoverwhichthemoneywillbeearned.
Willtherevenueexceedcosts?Arethereotherfundingsourcesforthisproject(i.e.costsharingagreements)?
Showwhattheanticipatedsurplusisexpectedtobe,andifitiszeroornegativeexplainwhyBCITisdoingtheworkandhowanyshortfallisfunded.
Whatwillitcosttowinthisjob?Whatinvestmentisneeded?
Giveabreakdownoftheexpectedcoststopursueandwinthiscontract,andwhetherBCITisrequiredtoinvestinordertoreceivemoney(costsharing,etc.)
Whatstrategywillweemploytowinthecontract? DescribewhywethinkBCITwillwin,ifthisiscompetitive.
Whataretheunusualorriskyaspectsofthisagreement?
DescribeanyotheruniqueorsignificantaspectsoftheagreementthatBCITseniormanagementshouldknowabout.
Figure2:ContractBrief–Revenue
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ProcedureProcedure
CONTRACT BRIEF – NONMONETARY
Withwhomareweenteringintothisagreement?
Givethenameofthelegalentity,whereitislocated,anditscorporatestatus(company,society,school,etc.)
Whatisthescopeofagreement?Whatareweagreeingon?
Describewhatistobedone,inenoughdetailtoconveyanunderstandingtoarelativelyuninformedreader.
Willthisagreementleadtofuturefinancialagreements,suchasaformaljointventure?
Describethefullsequenceofanticipatedagreements.
WillthisinvolvedisposaloracquisitionofBCITassets?
Thisincludesmajorequipmentandrealestateleasesorpurchases.
Howlikelyistheprojecttogoahead?
Describewhyyouthinkthisprojectwillactuallyhappen.Showevidenceofthecommitmentdemonstratedbythecustomer.
Whoisthecompetition?IsAnybodyelsedoingthis?Competitiveanalysis
IsBCITcompetingwithothersforthisdeal,andhowlikelyisitthatwewillactuallysignthisagreement.
HowDoesthisopportunityfittheBCITpolytechnicmandate,businessstrategy,goals?
DescribehowthisprojectisconsistentwiththeBCITmission,goalsandstrategy.
Howdoesitfitourplanofidentifiedopportunities,orisitanunplannedopportunity?
Describehowweheardofthisopportunity,andhowBCIThasplannedforitsimplementation.
DoesthisinvolveanadditiontoorchangeinBCIT’sofferedprograms?Ifso,whatisit?Havetheappropriategroups(EducationCouncil,etc.)beennotified?
Describetheacademiccontentoftheworkifany.
Whatarethetax,finance,RiskManagement,insuranceorlabourrelationsimplications?
Describehowthisagreementorarrangementwillimpacttheseriskareas.
Doesthisinvolveanylegislationissues?
Describeanyrelevantstatutesforwhichcompliancewillregulatethework.
Doesthisinvolveanyinternationalsensitivity? BCITInternationalmustbemadeawareoftherisks.
Whatwillitcosttoimplementthisagreement?Whatinvestmentisneeded?
Giveabreakdownoftheexpectedcoststopursueandexecutethisagreement,andwhetherBCITisrequiredtoinvestinordertoreceivemoney(costsharing,etc.)
Whataretheunusualorriskyaspectsofthisagreement?
DescribeanyotheruniqueorsignificantaspectsoftheagreementthatBCITseniormanagementshouldknowabout.
Figure3:ContractBrief–Non-monetary