Section 3.1: Finance

Approved: June 19, 2007

Revised: December 17, 2024

PURCHASING

Procedures

1.0             Purpose 

District School Board Ontario North East (DSB1) will procure all goods and services in a manner that will maximize the value it receives from the use of public funds.  This administrative procedure has been developed to ensure system-wide efficiency, cost effectiveness, and provide quality materials, supplies and services consistent with the needs and strategic plan of the board.

This administrative procedure applies to all individuals involved with purchasing or supply chain related activities.

2.0             Code of Ethics

2.1             Personal Integrity and Professionalism

Individuals involved with purchasing or other supply chain related activities must act, and be seen to act, with integrity and professionalism.  Honesty, care and due diligence must be integral to all supply chain activities within and between Broader Public Sector (BPS) organizations, suppliers, and other stakeholders.  Respect must be demonstrated for each other and for the environment.  Confidential information must be safeguarded.  All participants must not engage in any activity that may create or appear to create a conflict of interest such as accepting gifts or favours providing preferential treatment or publicly endorsing suppliers or products.

2.2             Accountability and Transparency

Supply chain activities must be open and accountable.  Contracting and purchasing activities, must be fair, transparent and conducted with a view to obtaining the best value for public money.  Participants must ensure that public sector resources are used responsibly, efficiently and effectively.

2.3             Compliance and Continuous Improvement

All individuals involved in purchasing or other supply chain related activities must comply with the Code of Ethics and the laws of Canada and Ontario.  All individuals should continuously work to improve supply chain policies and procedures to improve their supply chain knowledge and skill levels, and to share leading practices.

3.0             Responsibilities

3.1             It is the responsibility of the immediate supervisor to ensure staff members are informed on current board policies and procedures, ensuring they adhere to them.

3.2             The board will ensure that the purchasing function is performed with:

3.2.1            Open competitive bidding on the acquisition of all goods and services;

3.2.2            A high level of service to all schools and administrative departments; 

3.2.3            Consideration for accessibility, environmental, health and safety regulations.

Goods procured by the board must comply with technical and safety regulations set forth by the Government of Canada and the Province of Ontario, including goods owned or purchased by staff members that are brought into/onto board property. 

The board will incorporate accessibility criteria and features when procuring goods and services where applicable.  Procurement documents will specify the desired accessibility criteria and features to be met and guidelines for evaluation of proposals. Where it is impractical for the board to incorporate accessibility criteria and features, the Superintendent, Manager, Principal or Purchasing Coordinator responsible for the procurement will provide a written explanation. 

Purchases of good and services will not knowingly be made from manufacturers who operate in contravention of local and international labour laws and standards.

3.2.4            The required quality of products and services through purchase, lease, or rental at the lowest total acquisition cost from the most responsive and responsible vendor.

3.3             A bid shall not necessarily be accepted if it is the lowest or if only one bid is received. 

3.4             Fundraising by schools, administrative departments, individuals, and groups will operate in accordance with purchasing and cash handling procedures and within approved budgets.

4.0             Conflict of Interest

4.1             Staff of DSB1 shall not have a pecuniary interest either directly or indirectly, in any contract with the board or with any person acting for the board in any contract for the supply of goods and/or services for which the board pays or is liable, directly or indirectly.

4.2             Where a conflict of interest arises, it will be evaluated, and an appropriate mitigating action will be taken.

4.3             All board staff will adhere to section 217 of the Education Act regarding the promotion or sale of goods and services to the board.

5.0             Ownership

5.1             Purchases will not be made for the personal use of staff members.

5.2             All equipment and supplies purchased through the board approved budget, school generated funds or donations remain the exclusive property of the board.

6.0             Cooperative Purchasing 

The board encourages cooperative purchasing with other boards and broader public sector agencies when it is in the boards best interest to do so.  The procedures and policies of the agency calling the tender, proposal, or quotation will be followed.

7.0             Authorization

7.1             The purchasing department under the authority of the Manager of Finance or designate has the authority to purchase goods and services on behalf of the board.

7.2             No person, regardless of level of authorization, may approve payments to themselves. Cheque requisitions, travel expense forms etc. will be approved by the claimant’s supervisor or by the Superintendent of Business.

8.0             Approval Authority

9.0             Consulting Services

Consulting services are the provision of expertise or strategic advice that is presented for consideration and decision-making by an entity or a person that is under an agreement and not employed by the board.

10.0        Limitations

10.1        All staff of the board in a position of responsibility for a budget will:

10.1.1       Purchase at a fair price any product or non-consulting service with a value of less than $10,000 before taxes.

10.1.2       Obtain a minimum of three quotations or advertise for consulting services with a value up to $121,200.

10.1.3       Advertise through a nationally accessible electronic bulletin board such as Bids and Tenders, products or services with a value of $121,200 and over by public tender or request for proposal.

10.2        The above amounts apply to groups of products.  For example, the purchase of one projector valued at $700.00 would not require competitive quotations, but the purchase of ten projectors would.

10.3         single procurement cannot be divided into multiple procurements to circumvent the approval process.

11.0        Exceptions

11.1        It is expected that all purchases will be made using the appropriate purchasing procedures.

11.2        If staff have exhausted all efforts to obtain three written quotes and can support this with documentation then a minimum of two written quotes is acceptable.

11.3        The Purchasing Coordinator shall be permitted discretion in the number of competitive bids to be obtained in time sensitive situations.  For example, where program funding is available for a limited period.  The Superintendent of Business will be advised, in writing of any discretionary purchase greater than $30,000.

11.4        Non-Competitive Procurement

The following are considered examples of discretionary purchases:

11.4.1       Emergency Purchase

Staff of Building Services have delegated authority, under the authority of the Superintendent of Business to purchase goods and/or services during emergency maintenance situations.  Emergency maintenance goods and services purchased will be reported to the Superintendent of Business as soon as possible after the situation has been resolved.

11.4.2       Sole Source Purchases

Sole source purchases are made only when items are unique and possess specific characteristics that can be filled by only one source; to ensure compatibility with existing products; to protect exclusive rights such as copyright, patents, or exclusive license; or to maintain specialized equipment that will be maintained by the manufacturer or its representative.

11.4.3       Single Source Purchase

Single source purchases may be made where an unforeseen situation of urgency exists and the goods, non-consulting services, or construction cannot be obtained by means of open procurement procedures. All single source purchases require the written approval of the Superintendent of Business prior to commencement.  The approval document will be attached to the invoice.   Extensions of existing contracts shall be used wherever possible.

11.4.4       Purchase by Negotiation

Purchase by negotiation shall apply when, in the judgement of the Purchasing Coordinator in consultation with the Superintendent of Business, any of the following conditions exists:

• Unstable market conditions or a short supply of a commodity
• Only one source of the goods and/or services as defined in paragraph 11.4.2
• All bids received fail to comply with the specifications, tender terms and conditions, and it is impractical to recall tenders
• The lowest bid received substantially exceeds the budget, and it is impractical to recall tenders
• The extension or revision of an existing contract (where allocated) would prove more cost effective or beneficial or
• Only one bid is received.

11.5        Non-competitive procurements of goods and non-consulting services must be approved by an authority one level higher than the requirements stated in Paragraph 8.  Non-competitive procurement of consulting services up to but not including $200,000 must be approved by the Superintendent of Business.  Non-competitive procurements of consulting services over $200,000 must be approved by the CEO.

12.0        Procedures for Tenders with a value of $121,200, and over

12.1        Tenders will be called to close prior to the opening of submissions.  All submissions are to be submitted electronically through the Bids and Tender website unless otherwise stated.

12.2        The electronic tender posting will state the closing date, and time.  The tender results will be made publicly available on the posting site.  There will be no in-person opening.

12.3        The submission review committee shall consist of:

• Superintendent of Business or designate
• Manager of Finance or designate
• Purchasing Coordinator or designate

12.4        Late submissions will not be accepted by the Bids and Tenders platform.  The time that the platform received the completed submission shall be deemed the official time of submission.

12.5        Tenders will be opened and the contract price excluding applicable taxes will be displayed publicly on the Bids and Tenders page for each Bid opportunity.

12.6        The review committee will review tenders for compliance.

12.7        The rejection of any submission and the reason for rejecting will be recorded and communicated to the bidder.

13.0        Procedures for Requests for Proposals with a value of $100,000 and over

13.1        Late submissions will not be accepted by the Bids and Tenders platform.  The time that the platform receives the completed submission shall be deemed the official time of submission.

13.2        The Superintendent or manager of originating department or their designate and/or the assigned evaluation committee will evaluate the proposal submissions and prepare a proposal record that will include the project description, duration, evaluation, criteria, list of proponents and the recommended proponent to be awarded.

14.0        Confidentiality

 When dealing with bidders/proponents, staff of DSB1 shall guarantee the confidentiality of all specification and price quotations made by bidder/proponents subject to the tender submission opening/request for proposal evaluation process and the Municipal Freedom of Information and Protection of Privacy Act.

15.0        Vendor Suspension/Removal from the submission process, Pre-Qualified or Vendor of Record List

The Superintendent of Business may, through written notification, suspend a vendor from participating in any board request processes if any of the following causes occur:

• Unsatisfactory performance on board contracts, and/or failure to respond promptly to service calls
• Poor delivery, failure to deliver, under or over shipments
• Failure to abide by contract terms and conditions, or failure to meet specifications
• Making unauthorized substitutions
• Continuous billing errors
• Poor quality or workmanship
• Conviction of the business or an officer or Principal shareholder of the business of a criminal offence in connection with obtaining, attempting to obtain, or performance of a contract or subcontractor
• Bankruptcy
• Unethical practices or violation of board policies or administrative procedures.

References

Education Act, section 169.1 Duties and Powers of Boards: effective Stewardship of Resources

Education Act, section 217 Promotion or Sale by Employees to the Board

Education Act, section 283 Chief Executive Officer: Maintain Effective Organization

Education Act, section 286 Duties of Supervisory Officers: Supervise Business Functions

Broader Public Sector Procurement Directive, April 2024

Broader Public Sector Accountability Act, 2010

Ontario-Quebec Trade and Cooperation Agreement (Ontario-Quebec Agreement)

Building Ontario Businesses Initiative, July 2023

Occupational Health and Safety Act

Workplace Safety and Insurance Board Act

Municipal Freedom of Information and Protection of Privacy Act

Ministry of Finance Supply Chain Guideline

Accessibility for Ontarians with Disabilities Act, 2005 191/11 (AODA)

Canadian-European Union Comprehensive Economic and Trade Agreement (CETA)

Canadian Free Trade Agreement (CFTA)

Board Policy 1.1.6 Governance

Board Policy 3.1.5 Purchasing Card Program