M1 – Procurement Procedures

1. Purpose

The purpose of the Procurement Procedures (Procedures) is to establish a standardized, transparent, and accountable framework for acquiring goods and services that support the academic and operational needs of RRC Polytech. The Procedures ensure that all procurement activities are conducted in a fair, ethical, and cost-effective manner, in compliance with applicable laws, regulations, funding agreements, and institutional policies. It aims to promote responsible stewardship of public and institutional resources, foster competitive procurement practices, and support the institution’s commitment to sustainability, equity, and Indigenous engagement.

2. Scope and Applicability

The Procedures apply to all employees, departments, and stakeholders involved in procurement activities. The Procedures cover all purchases, including goods, services, and construction, regardless of value and funding source.

3. Definitions

Unless otherwise stated, all terms used in the Procedures shall have the same meaning as defined in the M1 Procurement Policy. Additional terms that are not defined in the M1 Procurement Policy but are used in the Procedures shall be defined below:

3.1

“Canadian” means an individual who is a Canadian citizen or a permanent resident of Canada; A business entity that is legally incorporated or registered in Canada, with its headquarters and primary operations located in Canada; or a Good or Service that is substantially sourced, manufactured, assembled, or performed in Canada, meaning at least 51% of the total direct costs of production or delivery are Canadian in origin.

3.2

“Group Purchasing Organization (GPO)” means a buying group, purchasing consortium, or cooperative formed to leverage the collective purchasing power of multiple organizations or businesses in order to secure better pricing, terms, and service conditions from suppliers.

3.3

“Invitational Quotation” means a procurement method in which a purchasing organization solicits price quotations and other relevant information from select or pre-identified suppliers.

3.4

“Social Impact Supplier” means businesses that are diverse suppliers, social impact organizations, or social enterprises. This includes Indigenous businesses, Diverse Suppliers, Canadian Owned or Social Enterprises

4. Competitive Bidding Requirements and Thresholds

4.1

Procurement Services must be consulted for all procurements where the value is greater than $25,000. Procurement Services will:

1. provide tailored guidance and support; and
2. manage the solicitation of quotations or competitive bidding process to best meet the needs of the project and/or department that initiated a procurement process;

4.2

The following procurement thresholds are applicable:

4.3

Total Contract Value (TCV) considers the total landed cost of Goods or delivered Services including provincial and federal taxes.

4.4

It is prohibited to structure, divide, or split purchases with the intent of reducing their dollar value to fall below the thresholds outlined above.

5. Supplier Selection and Evaluation

All procurement activities must follow a fair, transparent, and objective evaluation process. The Procurement Team will assist departments in determining the appropriate procurement method (RFQ, RFP or other), developing evaluation criteria, and ensuring compliance with institutional policy and applicable trade agreements.

The Procurement Team is responsible for:

• Advising on appropriate procurement strategy;
• Assisting with the development of evaluation criteria and scoring methodology;
• Supporting documentation and approval processes;
• Release of the procurement request and collection of responses from prospective bidders (over $25,000)
• Overseeing the evaluation process to ensure fairness and consistency.
• Approving participation in collaborative procurement initiatives or cooperative group purchasing organizations, including outsourcing of the tendering process to an external entity.

The Requesting Department is responsible for:

• Defining the scope of work and desired outcomes clearly;
• Developing or contributing to the functional and technical requirements;
• Identifying any mandatory specifications or standards;
• Proposing appropriate evaluation criteria relevant to the purchase;
• Participating on the evaluation team, as needed;
• Ensuring sufficient budget approval is in place prior to procurement initiation;
• Confirming receipt and performance acceptance of goods or services once delivered.

The evaluation approach will vary based on the procurement type, as outlined below.

5.1 Request for Quotation (RFQ)

RFQs are used for low-complexity, well-defined purchases where the primary differentiator is price. The evaluation criteria must be objective and straightforward.

1. Price shall be the predominant evaluation factor, typically comprising at least 90–100% of the total score.
2. Other factors, such as delivery time, warranty, or compliance with specifications, may be considered if they are relevant and clearly defined in the RFQ.
3. Sustainability and Social Responsibility considerations as set out in Paragraph 7.2 may be included when applicable.

5.2 Request for Proposal (RFP)

RFPs shall be used for the procurement of complex purchases where factors such as innovation, quality, methodology, or supplier approach are important to the selection process and where price alone is not the sole determining factor. The evaluation process shall include multiple criteria, weighted according to the specific needs of the project. These criteria shall include:

1. Price – Must constitute a minimum 20% of the total score.
2. Quality and Effectiveness – Reflects the proposed solution’s ability to meet the identified functional and technical requirements.
3. Sustainability and Social Responsibility – Must be assigned a weighting between 5% and 25%, based on the potential environmental or social impact of the goods/services being procured (reference Section 7.2 for additional detail).
4. Additional Considerations (optional, based on procurement needs):
   1. Lead time or delivery schedule;
   2. Supplier qualifications, experience, and references;
   3. Innovation, risk mitigation, value-added services, etc.

5.3 Request for Quotation of Services (RFQS)

An RFQS can be used to solicit price quotes and service details from potential suppliers or service providers. It outlines the scope of services required, terms and conditions, and evaluation criteria, allowing vendors to submit competitive bids. RFQS is typically used for acquiring professional, technical, or specialized services where price, qualifications, and service quality are key considerations.

1. Price – Must constitute a minimum 20% of the total score.
2. Service Expectations and Requirements – Reflects the proposed solution’s ability to meet the identified service requirements.
3. Sustainability and Social Responsibility – Must be assigned a weighting between 5% and 25%, based on the potential environmental or social impact of the goods/services being procured.
4. Additional Considerations (optional, based on procurement needs):
   1. Lead time or delivery schedule;
   2. Supplier qualifications, experience, and references;
   3. Innovation, risk mitigation, value-added services, etc.

5.4 All criteria and their respective weights must be:

1. Clearly outlined in the RFX documents;
2. Applied consistently by all evaluators;
3. Supported with written rationale and scoring documentation (within the Euna Procurement application).

5.5 Supplier Code of Conduct

RRC Polytech is committed to ethical, legal, and socially responsible business practices and expects the same of its suppliers. Compliance with the Supplier Code of Conduct is a mandatory requirement for participation in procurement activities. Suppliers that fail to acknowledge, agree to, or comply with these standards will be deemed ineligible for consideration in the supplier selection process.

6. Waiver of Bidding and Quotation Requirements

6.1 Authority to Waive Requirements

The quotation or bidding requirements listed in the M1 Procurement Policy may be waived by the Director of Procurement and Logistics, in the following circumstances:

1. Sole Source: When the required Good or Service is available from only one qualified supplier, and no reasonable alternatives exist.
2. Strategic Partnership: When a Good or Service is to be provided through a strategic partnership.
3. Established Standard: When the Good, Service or Service Renewal aligns with an established standard within RRC Polytech.
4. Emergency: When an unforeseeable situation or emergent need arises that was not reasonably anticipated and requires immediate action.

6.2 Waiver Request Process

Departments seeking a waiver from the competitive bidding process must:

1. Complete the Waiver of Competitive Bid Form, available on the Procurement Team’s SharePoint site (Waiver).
2. Submit the completed form to the Director, Procurement and Logistics for review and approval.

All waiver requests must clearly state the rationale for the exemption and include supporting documentation, where applicable. Approval is at the sole discretion of the Director, Procurement and must be documented in accordance with audit and procurement transparency requirements.

7. Special Considerations

RRC Polytech is committed to advancing public value through procurement by supporting Canadian businesses, promoting sustainability, and fostering social responsibility. This section outlines special considerations that apply in specific circumstances and supplements the general procurement procedures.

7.1 Procuring Canadian

RRC Polytech is committed to supporting Canadian suppliers where permitted under applicable trade agreements and RRC Polytech policies.

Procurement activities should consider the following practices, where feasible:

1. Set-Asides for Canadian Businesses: For procurements valued below the threshold established by international trade agreements (as determined by Procurement services), RRC Polytech may, where justified and feasible, reserve contracts or portions of projects exclusively for Canadian suppliers.
2. Direct Awards to Canadian Suppliers: For low-value procurements under $10,000, qualified Canadian businesses may be prioritized for direct award.
3. Trade Compliance and Reciprocity: Procurement may exclude trade partners or suppliers that are subject to sanctions by the Government of Canada or whose primary operations or production facilities are located in countries whose governments are not complying with trade agreements to which RRC Polytech is bound (e.g., through tariffs, trade restrictions, or discriminatory practices affecting Canadian businesses).
4. Canadian Supplier Price Advantage: Procurement may apply a price preference, scoring advantage, or tolerance for Canadian suppliers in competitive processes, where allowed and justified. Price preference is not to exceed 10%.

The Procurement Team will determine appropriate methods to apply such preferences and ensure compliance with applicable trade obligations. All special considerations must be clearly outlined in the RFx documents.

7.2 Sustainability and Social Procurement

RRC Polytech is committed to integrating environmental, social, and economic sustainability into all procurement decisions, including low-value purchases. This commitment is guided by the M1 Procurement Policy.

1. Support Social Procurement
   1. Encourage opportunities for Indigenous businesses, social enterprises, and diverse suppliers.
   2. Include sustainable social criteria in competitive bids (e.g., local employment, inclusive hiring practices)
   3. Social Impact Supplier Price Advantage (RFQ):
      • Procurement may apply a price preference, scoring advantage, or tolerance for Social Impact suppliers in RFQ procurements where price is the primary criteria. The price preference is not to exceed 10%.
2. Support Environmental Sustainability
   1. Consider lifecycle impacts, energy efficiency, waste reduction, and environmentally preferred products.
   2. Incorporate sustainability-related evaluation criteria and supplier certifications where appropriate.
3. Low Value Purchase Order Process
   1. Staff must apply sustainability and social responsibility principles when making purchases under $25,000.
   2. The Procurement Team will provide guidance and tools to assist departments in aligning low-value purchases with RRC Polytech’s sustainability goals.

8. Purchase Order Process

A Purchase Order (PO) is required for all purchases of goods and services, except where a PO is not accepted or practical. Examples of exceptions include:

• Subscriptions
• Corporate Memberships
• Conference fees
• Hospitality and Entertainment
• Travel and Accommodations
• Job Advertisements

8.1 Purchase Request and Approval

1. The Requesting Department shall submit a purchase requestion through the ESM Purchase application, including specifications, budget information, and any other relevant details. Instructions can be found in the Purchasing Application Training Guide.
2. Approval requirements are determined by the ESM Purchase application based on Financial Approval Authority Limits outlined in the F3 — Financial Approval and Signing Authority Policy and Procedures.

8.2 Purchase Order Issuance

1. The Procurement Department will review the requests for contract compliance, policy adherence, and accuracy before issuing an authorized Purchase Order (PO) to the selected supplier.
2. Only the Procurement Department, or departments formally designated by Procurement (e.g., the Campus Store for retail inventory purchases), are authorized to issue POs to Suppliers.
3. Requesting Departments must not receive or pick up Goods from Suppliers without a properly authorized PO. Suppliers will be instructed not to deliver Goods or Services without a PO.

8.3 Receipt and Inspection of Goods/Services

1. NDC and EDC: Central Receiving personnel will verify delivery against the PO.
2. Regional Campuses: The requester is responsible for verifying delivery and completing the receiving entry in the ESM Purchase application. Any discrepancies or defects must be reported to the Procurement Department immediately.

8.4 Invoice Processing and Payment

1. Suppliers must submit invoices, referencing the PO number, directly to Accounts Payable.
2. The Accounts Payable Department performs a three-way match by verifying the invoice against the PO and the goods receipt recorded in the system, then processes payment according to the PO terms.

8.5 Procurement Records and Documentation

1. All procurement transactions are documented within the ESM Purchase application and/or Colleague and retained to ensure compliance and audit readiness.

8.6 Change Orders / Modifications to POs

1. Any changes to the scope, quantity, pricing, or delivery terms of an issued PO must be formally submitted through the ESM Purchase application as a change order request
2. Change orders must be reviewed and approved by Procurement and follow the same approval thresholds as the original PO

8.7 Non-Compliant Purchasing

1. Purchases made without a properly authorized PO may be considered non-compliant and subject to internal review.
2. Repeated non-compliance may result in escalation to senior management and may affect future purchasing privileges.

8.8 Supplier Performance and Dispute Resolution

1. Issues related to Supplier performance, contract non-compliance, or service disputes must be documented and reported to the Procurement Department
2. Procurement will coordinate with the Requesting Department and Supplier to resolve disputes in accordance with contractual terms and will engage Legal Services where appropriate.

9. Service Procurement Process

The procurement of Services must follow a consistent process to ensure clarity of scope, compliance with RRC Polytech policies, and appropriate risk management. Services will be procured through a Purchase Order (PO) or a Fee for Service (FFS) Agreement, depending on the nature, complexity, and risk profile of the Service.

9.1 Purchase Order (PO) for Services

1. Departments shall use a PO for the procurement of well-defined, or routine Services where deliverables, timelines, and costs are straightforward and easily managed through the standard PO process.
2. The Service description in the PO shall include all pertinent service details as outlined in the Statement of Work template (Purchased Services – Statement of Work.docx).
3. POs must be initiated through the ESM Purchase application and approved based on financial thresholds as defined in the F3 – Financial Approval and Signing Authority policy.
4. All relevant documentation including detailed quotes or scope of work documents shall be attached to purchase requisition in the ESM Purchase application.
5. Procurement Services may initiate a Fee for Service process, if deemed appropriate after review of the ESM Purchase requisition based on the criteria in Section 9.2.b.

9.2 Fee for Service (FFS) Agreement

1. Engagement Requirement:
   • Requesting Departments must engage Procurement Services for all service procurements anticipated to be $25,000 or greater, in accordance with Section 4.2. All Fee for Service Agreements, regardless of value, must be initiated through the ESM Purchasing application.
   • Fee for Services valued at less than $25,000 shall follow the Purchase Order process outlined in section 9.1.
2. Determination of Agreement Type:
   • Following the completion of a sourcing event or the submission of a Purchase Requisition for Services, Procurement Services will assess whether a Fee-for-Service (FFS) Agreement or a Purchase Order (PO) is the most appropriate mechanism for the engagement. Where necessary, this assessment will be conducted in consultation with Legal Services. Procurement Services will also be responsible for submitting the Legal Intake request, if required.

3. Review and Approval Process:
   • All FFS Agreements must be reviewed and approved by:
     1. Procurement Services – for procurement compliance
     2. Legal Services – for contract terms and conditions and signing process (execution)
     3. The appropriate signing authority – as outlined in the F3 – Financial Approval and Signing Authority Policy and Procedures
4. Execution and Documentation:
   • Once fully executed:
     1. The FFS Agreement shall include a reference to the Legal Intake number and will be referenced on the Purchase Order
     2. FFS Agreement must be attached to the PO in the ESM Purchase Application and submitted to the supplier
     3. All related invoices must reference the PO number for payment processing