1. General Policy Statement

2. Purchasing Activities

3. Code of Ethics

4. Local Purchasing & Canadian Content

5. Donation of Goods & Services

6. Product Endorsement

7. Disposal of Surplus Goods & Trade-Ins

8. Personal Purchasing for Staff

9. Purchasing Procedures

10. Financial Limits for Purchasing Activity

11. Turn-Around Time for Purchasing Activity

1. GENERAL POLICY STATEMENT

1. Algonquin’s acquisition practices shall assist the College achieve its long-term vision, and be consistent with its goals and objectives.

2. As a publicly funded institution Algonquin College shall maintain high legal, ethical, managerial and professional standards in the management of the financial resources entrusted to it. Specifically the College shall strive to:

   1. Continually lower costs while improving the quality of goods and services acquired.

   2. Develop and maintain good public relations with the vendor community through courtesy, professional competence and high standards of business ethics.

   3. Provide its Staff with tools and training to improve their skills in Purchasing techniques, including negotiating and public relations, as well as the execution of legal contracts, and cost reduction techniques.

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2. PURCHASING ACTIVITIES

1. The authority and responsibility for purchasing commitments on behalf of the College is vested in the Purchasing Department, with some exception, noted below. Purchasing activity is initiated by College staff through the use of:

   1. Online requisitions, using the College financial system

   2. Small-Dollar orders

   3. Procurement card

   4. Employee Payroll Reimbursement
       

2. Other purchasing activities, not executed through the Purchasing Department are:

   1. Petty Cash

   2. Acquisitions from College Ancillary Services

       

3. The use of payment Vouchers for the acquisition of goods and services is not acceptable.

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3. CODE OF ETHICS

1. Policy Statement
   College staff shall maintain and practice the highest standards of business ethics, professional competence and courtesy when dealing with suppliers.

2. Purpose
   To ensure that public funds are spent in an ethical manner, that Algonquin maintains a positive public image, and that the College’s purchasing activity withstand audit scrutiny.

3. Scope
   This policy applies to all College employees

4. Guideline - (click here)

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4. LOCAL PURCHASING AND CANADIAN CONTENT

1. Policy Statement
   The College will, without contravention of government regulations and competitive bidding policies, give preference to local suppliers and products with higher Canadian content.

2. Purpose
   To improve supply management efficiency as well as business relations with local suppliers.

3. Scope
   This policy applies to all of the College’s campuses. Preference will be given to purchase goods and services from suppliers located near the User’s Campus.

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5. DONATION OF GOODS & SERVICES

1. Policy Statement
   The donation of goods / services to the College will be processed by the Purchasing Department.

2. Purpose
   To ensure the donation complies with College fixed-asset policies, CCRA regulations, health & safety requirements, and offer good value to the College.

3. Guidelines

   1. User Departments will forward details of proposed donations to the Purchasing Department for approval and processing prior to making any commitments to the donor.

   2. Purchasing, in conjunction with the User, will determine whether the proposed donation offers value to the College, and should, in fact, be accepted. In making this decision, Purchasing will consider the value of the donation, as well as all associated costs, including:

   3. Responsibility for existing contracts, payment schedules.

   4. Removal, transportation, installation, wiring.

   5. Repair, upgrading, training.

   6. On-going licensing, maintenance contracts.

   7. Cost of new related equipment, accessories, supplies, service.

   8. Purchasing will ensure compliance of the donation with C.S.A., WHMIS and other regulations.

   9. Purchasing will determine the Fair Market Value, obtain independent value assessment if required (see Appendix "A"), and issue a tax receipt, if requested.

   10. Purchasing will record the donation on a database software (Raiser’s Edge), and provide reports as required.

   11. Purchasing will send a letter to the donor (usually with the tax receipt) acknowledging the donation and thanking the donor.

   12. If the donation includes equipment deemed by the College to be inventoriable on the Fixed Asset list, Purchasing will provide details to the Fixed Assets Clerk, to ensure that the equipment is recorded promptly.

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6. PRODUCT ENDORSEMENT

1. Policy Statement
   Suppliers shall not use the College name or wordmark without prior authorization by the Purchasing Department.

2. Purpose
   To protect the College name, reputation and public relations.

3. Suppliers shall submit to the Purchasing Department a written request for permission if they wish to use Algonquin’s name or wordmark in their publication or advertising.

4. Suppliers will include a copy of the publication or ad, as well as details about its intended use.

5. The purchasing Department will review the request, obtain College Management approval, and respond to the supplier in writing.

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7.  DISPOSAL OF SURPLUS GOODS AND TRADE-INS

1. Policy Statement
   To ensure fair and equitable processing, the EXTERNAL disposal of surplus goods and trade-ins shall be centralized in the Purchasing Department.

2. Purpose
   To maximize revenues from the sale of surplus goods, prevent conflict of interest, and ensure compliance with College policies.

3. Scope
   This policy applies to the sale or trade-in of goods to entities external to the College, with the exception of on-site sales held at the College.

4. Guidelines

   1. Goods that have been declared surplus shall be made available to other College departments prior to disposal.

   2. Staff in the department declaring goods as surplus, as well as staff in the Purchasing Department shall not be permitted to bid on the goods without prior approval by the Director of Finance.

   3. When goods are declared for sale externally, the Purchasing Department shall offer them first to the other Ontario Colleges, then to other Public Institutions, before selling them to private buyers.

   4. Goods offered by a department to a supplier as trade-in, shall be made available first to other College departments. If the goods are claimed by another department, the "purchaser" shall transfer the appropriate funds to the "selling" department.

       

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8. PERSONAL PURCHASING FOR STAFF

1. Policy Statement
   The College Purchasing Department shall assist employees in their personal purchases

2. Purpose
   To enable employees to benefit from special vendor discounts, and to implement a personal purchasing system which is ethical and fair to all vendors.

3. Scope
   The personal purchasing system shall cover all products and services that may be of interest to College staff.

4. Guidelines

   1. The Purchasing Department will maintain a list of vendors interested in the program, and the special terms and conditions offered.

   2. The list of suppliers and their terms will be communicated to all College employees.

   3. The Purchasing Department shall inform its vendors, and solicit their interest in participating in this program, in order to provide all vendors an equal opportunity.

   4. All transactions will be carried out directly between the staff member and the vendor. Algonquin, or its Purchasing Department will not be held liable in cases of dispute, nor become involved in the resolution of individual transactions.

       

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9. PURCHASING PROCEDURES

The purpose of this section is to establish uniform procedures, and provide guidelines to College staff and the Purchasing Department that are consistent with the policies of the College.

1. The Purchase Requisition

   1. A Purchase Requisition is required to initiate the purchasing process for most goods and services required by the College. Exceptions to this requirement may be:

      1. Small Dollar Orders

      2. Procurement card

      3. Purchases from Ancillary Services

      4. Petty Cash

   2. The Purchase Requisition must be raised electronically, on the College Financial Information System. Refer to the System User Guide.
      
      
   3. The Purchase Requisition should indicate a recommended supplier. Note that it is ultimately the responsibility of the Purchasing Department to select the supplier that satisfies User requirements while providing best value to the College.
      
      
   4. Indicate on the Purchase Requisition the "required date" for the goods / services. Highlight any "rush", or special requirements, but please keep in mind that advance planning , and providing the supplier with reasonable lead-time will result in a more economical purchase.
      
      
   5. Please forward any quotes, specifications or other attachments to the Purchasing Department, noting the requisition number on the document.
      
      
   6. The Purchasing Department will review the requisition prior to processing to ensure that it meets all relevant regulations and complies with College policies.
      
      
   7. The Purchasing Department will endeavor to process requisitions in a timely manner, as set out in Appendix "B".

       

2. Rush and Emergency Orders

   1. Requisitions are routinely handled during the next business day after the budget-holder’s approval, with lead-times as set out in Appendix "B". In cases when goods / services are required faster than normal lead-times, the following guidelines should be followed.

   2. Enter in the requisition comments field: "RUSH", or better: "Delivery required before....". This will ensure prompt attention by Purchasing staff.

   3. In emergency cases please call the Purchasing Department after approval of the requisition, and request special, immediate processing. Purchasing staff will help you resolve the emergency, but since this process is inefficient, request that you keep this activity to a minimum.

   4. Remember that most "emergency" needs can be fulfilled using your Procurement card, or the Small Dollar Order system.

       

3. Request for Quotes

   1. The requirement and limits for competitive bidding is detailed in the Purchasing Policies, Appendix "A".

   2. The College recognizes that certain goods or services are available from only one source. In these cases, the bidding process is not possible and may be precluded.

   3. In addition to the supplier(s) recommended by the User, Purchasing will request quotes from others on its List of Qualified Vendors.

   4. Suppliers will be accorded a reasonable period of time, depending on the complexity of the acquisition, to prepare their quotes. Normal time-frames are from 3 to 10 working days.

   5. Quoted prices will remain confidential, as outlined in the policy on Purchasing Code of Ethics.

   6. The Purchasing Department will evaluate the quotes, and submit a written summary and recommendation to the User Department.

   7. While the lowest bidder may not necessarily be selected, with all other factors being equal the low bidder should be favored.

       

4. Public Tenders

   1. Where the total value of the requisition exceeds the threshold set out in Appendix "A", a public tendering process shall be implemented, under the following guidelines.

   2. Tenders shall be addressed to the Board of Governors, in care of the Purchasing Department, acting as its agent. Tenders shall remain sealed until after the closing time.

   3. Following government regulations, tenders will be advertised in a medium which accessible across Canada. Preference will be given to electronic advertising.

   4. Tenders will be received and recorded by the Purchasing Department. Tenders received after the official, advertised closing time will be returned to the bidder, unopened.

   5. Tenders are opened publicly by a delegate of the Board of Governors, witnessed by the Purchasing and User Departments. Vendors may attend.

   6. Tendered information, including total bid prices, is in the public domain. However, in accordance with the Protection of Privacy Act, proprietary information and unit prices which affect business competitiveness, will remain confidential.

   7. Bids will be evaluated by the Purchasing and User Departments. A recommendation will be issued, documenting the evaluation criteria and selection process, and highlighting the best value to the College, particularly if the low bidder is not selected.

       

5. Contract Tracking

   1. The Purchasing Department will maintain a database of all on-going contracts which require periodic renewal or cancellation.

   2. In addition to general information about the contract, the database shall keep track of 3 significant dates:

      1. The contract termination date

      2. The contract renewal/cancellation date (e.g. 90 days prior to termination).

      3. The User notification date, 30 days prior to the renewal date.

   3. On the "User Notification Date", Purchasing will forward a written reminder to the User, requesting renewal or cancellation instructions.
      
      
   4. Particular attention will be given to contracts that contain an automatic-renewal clause. In order to prevent cases of unwanted renewal, the Purchasing Department will cancel such contracts by the cancellation date, unless instructed otherwise by the User.
      
   5. Supply contracts are governed by the same policies as other acquisitions. Where competition exists, contracts will be tendered according to the usual Purchasing Procedures.

       

6. Expediting

   1. The Purchasing Department will expedite "open orders". These are defined as Purchase Orders which have, according to the Financial Information System (F.I.S.), items still outstanding beyond the "required date".

   2. The Expediting Clerk will contact the User to verify if the goods have, in fact, been received, and update the F.I.S. accordingly.

   3. In case of outstanding requirements, the Expediting Clerk will contact suppliers to verify the status of the order, and consult with the User to decide whether to cancel outstanding items.

   4. The Expediting Clerk will keep track of critical shipments, and follow up on deliveries with the supplier prior to the "required date".

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10.   FINANCIAL LIMITS FOR PURCHASING ACTIVITY

Petty Cash, not to exceed $50.00

Decentralized Order, Including Small Dollar Orders, Procurement Card, and Employee Payroll Reimbursement, not to exceed 500.00

Verbal quote from a single supplier are acceptable for orders under 1000.00

Verbal quote from 3 suppliers, required for orders in the range 1000 - 3000.00

Formal quotes from a minimum of 3 suppliers, required for orders 3000 - 50,000.00

Formal public tender, all acquisitions over 50,000.00

Donations - Independent Fair-Market-Value assessment for tax receipts over 30,000.00

 

Guidelines

The above limits do not include taxes

The above limits apply to total orders, which may not be split up to circumvent these limits.

It is recognized that in the special circumstances, the above limits will need to be bypassed. Such circumstances must be recorded on the Purchase Requisition.

The public tendering process may be circumvented only with the written approval of the Vice-President, Finance & Administration.

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11. TURN-AROUND TIME FOR PURCHASING ACTIVITY

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