Policy 2.3.6: Procurement - Appendix B

Effective: September 21, 2005
Responsibility: Vice-President and Chief Financial Officer

APPENDIX B - Procurement modes – Guidelines

The tables provided in the following pages, identify the authorized procurement modes according to the nature and estimated value of the required purchase. The procurement method describes the type of bid solicitation, the minimal number of suppliers to invite, the purchase method, and the method of sending and receiving the procurement documents.

Purchase type Amount Minimum Number of Suppliers to invite Type of solicitation Type of request
(1)		 Delivery of the request Receipt of offers Evaluation Criteria Method or Purchase document
(1), (5)
Goods (with or without services) $0 to $499 n/a n/a n/a n/a n/a n/a Petty Cash (2)
Corporate credit card (2)Purchase order
Invoices
$500 to $999 n/a n/a n/a n/a n/a n/a Corporate credit card (2)
Purchase order
Invoices (2)
$1,000 to $4,999 n/a n/a n/a n/a n/a n/a Purchase order
$5,000 to $49,999 3 By invitation IR Phone, fax or Email (3)) Phone, fax or Email (3) Price Purchase order
RFQ Email Paper copy and Electronic Price Purchase order
RFP Price and others Purchase Agreement
RFSO Price and otherss Standing Offer
$50,000 to $499,999
(6)		 5 By invitation RFQ Email Paper copy and Electronic Price Purchase order
RFP Price and others Purchase Agreement
RFSO Price and others Standing Offer
$500,000 & over (7) n/a Public (MERX) RFQ MERX Paper copy and Electronic Price Purchase Agreement
RFP Price and others Purchase Agreement
RFSO Price and others Standing Offer

Purchase type Amount Minimum Number of Suppliers to invite Type of solicitation Type of request
(1)		 Delivery of the request Receipt of offers Evaluation Criteria Method or Purchase document
(1), (5)
Services $0 to $499 n/a n/a n/a N/a n/a n/a Petty Cash (2)
Service order
Invoices (2)
$500 to $4,999 n/a n/a n/a N/a n/a n/a Invoices(2)
Service order
$5,000 to $49,999 1 By invitation IR, RFQ Phone, fax or
Email		 Paper copy and Electronic Price Service order
RFP Price and others Service Agreement (4)
RFSA Price and others Supply Arrangement
$50,000 to $499,999
(6)		 3 By invitation RFQ email Paper copy and Electronic Price Service Agreement (4)
RFP Price and others Service Agreement (4)
RFSA Price and others Supply Arrangement
$500,000 & over
(7)		 n/a Public (MERX) RFP MERX Paper copy and Electronic Price and others Service Agreement (4)
RFSA Price and others Supply Arrangement

Purchase type Amount Minimum Number of Suppliers to invite Type of solicitation Type of request
(1)		 Delivery of the request Receipt of offers Evaluation Criteria Method or Purchase document
(1), (5)
Construction $0 to $499 n/a n/a n/a N/a n/a n/a Petty Cash (2)
Service order
Invoices (2)
$500 to $4,999 n/a n/a n/a N/a n/a n/a Invoices (2)
Service order
$5,000 to $49,999 1 By invitation RFQ Phone, fax or
Email		 Paper copy and Electronic Price Service order
RFP Price and others Service Agreement (4)
RFSA Price and others Supply Arrangement
$50,000 to $4,999,999
(6)		 3 By invitation RFP Email Paper copy and Electronic Price and others Service Agreement (4)
RFSA Price and others Service Agreement (4)
$5,000,000 & over
(7)		 n/a Public (MERX) RFP MERX Paper copy and Electronic Price and others Service Agreement (4)

Notes:

(1) The types of requests and purchase documents to use are provided as general guidelines. They should always be validated by the Supply Management Service and/or the Law Department to ensure that the required purchase specifications are properly addressed (e.g. warranty, insurance, intellectual property, compliance with laws, etc.);
(2) For goods or services not covered by a previously negotiated agreement. Purchases under $500 or using Corporate procurement cards, must comply with corporate policies, and in particular Corporate Policy 2.3.4 – Cash Funds;
(3) The list of invited suppliers and offers received by phone, fax or email must be documented and kept on file;
(4) The type of Service agreement to be used (short form, complete form or customized form) shall be determined on a case-by-case basis in consultation with SMS or the Law Department;
(5) Goods or services must be purchased from the preferred supplier when a contract/agreement is currently in force for the said goods or services.
(6) Except for exceptions listed in article 4.9 of section II. Guiding principles of the policy.
(7) Except for exceptions listed in articles 4.9 and 4.10 of section II. Guiding principles of the policy.

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