BPS Procurement Directive Implementation Guidebook

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10. PROCUREMENT POLICIES AND PROCEDURES (MANDATORY REQUIREMENTS)The mandatory requirements within section 7.2 of the Directive set out how Organizations are required toconduct sourcing, contracting and purchasing activities.10.1. Purpose of Procurement Policies and Procedures10.1.1. ObjectiveThe mandatory requirements ensure that Organizations conduct procurement-related Supply Chain Activities inan open, fair and transparent manner.10.1.2. BenefitsThe mandatory requirements enable Organizations to:• Focus on value for money;• Ensure the fairness, transparency and accountability of the procurement process;• Eliminate redundant and low value-added activities throughout the procurement cycle;• Provide internal customers, suppliers and other stakeholders with a clear path for conducting supply chainrelatedactivities, thus improving customer confidence and satisfaction;• Reduce business risk and the potential for conflicts internally with colleagues and externally with tradingpartners;• Make procurement decisions defensible when facing trade or legal challenges or public criticism;• Provide all Members of an Organization with clear directions and expectations, thus improving productivityand morale; and• Establish consistent processes related to working with suppliers, thus enhancing mutual trust and enhancingrelationships.10.2. Adoption of the Procurement Policies and Procedures10.2.1. Implementation of the Mandatory Requirements of the DirectiveTo achieve compliance with the mandatory requirements, Organizations should communicate to the Members ofan Organization, suppliers and other stakeholders, the rationale and benefits of implementation. There are fourkey factors for ensuring compliance:• SupportReview the mandatory requirements with key stakeholders, including the Members of an Organization andinternal customers before they are implemented;• CommunicateRegularly communicate the mandatory requirements as well as the benefits of their implementation to all keystakeholders;Page 6
• MonitorImplement appropriate mechanisms to ensure that Members of an Organization are complying with themandatory requirements; and• Follow-upRegularly solicit feedback from key stakeholders regarding the existing organizational policies and procedures.Organizations should regularly review and improve their procurement policies and procedures.10.2.2. Internal AccountabilityOrganizations should identify a senior-level individual accountable for compliance. This individual shouldconsult with advisors and work with the funding ministry to implement requirements of the Directive. Theindividual should be given the authority to ensure compliance throughout the Organization.Senior management must work with the procurement department or organization (e.g., SSO) to ensureorganizational compliance with the mandatory requirements and determine appropriate measures in the eventof non-compliance.10.2.3. Related RequirementsOrganizations must conduct procurement activities according to the law in Ontario, including contract law, lawof competitive processes, privacy legislation, accessibility legislation and any other applicable legislation.Organizations are subject to various trade agreements including, but not limited to, the Agreement on InternalTrade and the Ontario–Quebec Trade and Cooperation Agreement (Ontario–Quebec Agreement).10.2.3.1. Ontario LawWhen conducting procurement, Organizations should understand their obligations. Individuals engaged inSupply Chain Activities on behalf of Organizations must be aware of the applicable laws and the importance ofprofessional conduct. Where necessary, Organizations should seek legal advice on procurement.10.2.3.2. Contract LawContract law applies to all agreements between an Organization and a supplier. Subject to the requirements ofcontract law, parties are able to negotiate the terms of their agreement to suit their business purposes.10.2.3.3. Law Of Competitive ProcessesDepending on the terms of an agreement between an Organization and a supplier, the law of competitiveprocesses may apply. The solicitation and the receipt of tenders or proposals may result in the formation of abid contract (also called Contract A) that governs how the Organization awards the work contract (also calledContract B) to a supplier. For these and other definitions, see Sections 11.3, Glossary of Terms and 11.4,Glossary of Acronyms.Page 7
Page 3: CONTENTS1. RELATIONSHIP TO THE DIRE
Page 6 and 7: 4. DIRECTIVE PRINCIPLESThe Directiv
Page 8 and 9: 9. SUPPLY CHAIN CODE OF ETHICS (COD
Page 12 and 13: 10.2.3.4. Privacy legislationThe Fr
Page 14 and 15: 10.3.1.2. Approval Authority For Pr
Page 16 and 17: 10.3.2.3. Competitive Procurement T
Page 18 and 19: 10.3.3.2.1 Request For Information
Page 20 and 21: 10.3.3.3.2 Vendor Of Record (VOR) A
Page 22 and 23: B. Second stage of the selection pr
Page 24 and 25: • Mandatory criteria (e.g., techn
Page 26 and 27: 10.3.3.4.6 Bidder’s ConferenceOrg
Page 28 and 29: 10.3.3.5.3 Evaluation MethodologyDi
Page 30 and 31: 10.3.3.5.7 Non-DiscriminationDirect
Page 32 and 33: Directive Mandatory Requirement #18
Page 34 and 35: 10.3.4. Non-Competitive Procurement
Page 36 and 37: 10.3.4.2.2 Sole SourcingWhere only
Page 38 and 39: 10.3.6 Procurement Records Retentio
Page 40 and 41: 10.3.7.3 Members Of An Organization
Page 42 and 43: 10.3.8.2 Bid Dispute Resolution Adv
Page 44 and 45: 11.2. Procurement StrategiesEach Or
Page 46 and 47: CommentsContract A sets out the del
Page 48 and 49: 11.3. Glossary of TermsAccountabili
Page 50 and 51: ElectronicTenderingEquipmentEvaluat
Page 52 and 53: Request For SupplierQualifications(
Page 54: 11.4. Glossary of AcronymsAIT - Agr

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