Procurement Procedures

A.  APPENDICES

1. Four appendices to this policy and procedures provide detailed guidelines and requirements for Procurement activities at VCC:
   
   
   
   1. Appendix A: Procurement Authority Limits
   
   
   2. Appendix B: Detailed Standards for the Procurement of Goods, Services and Construction
   
   
   3. Appendix C: Vendor Complaint Review, Public Postings, Trade Agreement Compliance, and Privacy
   
   
   4. Appendix D: Special Procurement Authorities
   
   
   
   

B.  ROLES AND RESPONSIBILITIES

This section defines key accountabilities and responsibilities of procurement functions by role.

2. Vice Presidents are responsible for procurement activities occurring within their departments:
   
   
   
   1. Planning and fully documenting to established VCC standards, the process to acquire goods, services and construction.
   
   
   2. Ensuring procurement processes are initiated only where spending authority and department budget are available.
   
   
   3. Managing, with the support of Procurement Services, solicitation and contract award processes in a prudent and unbiased manner that fairly treats all potential vendors and bidders.
   
   
   4. Using demand aggregation, and provincial CSAs, CISAs and Lists of Qualified Suppliers/MSOs identified by Procurement Services as available to VCC, for the procurement of goods and services to meet program requirements.
   
   
   5. Ensuring that contracts for goods, services and construction are designed to provide the best value to VCC.
   
   
   6. Ensuring that contracts for goods, services and construction are based upon the VCC General Services Agreement, the VCC General Goods Agreement or, where appropriate, upon other templates approved for use by Procurement Services.
   
   
   7. Ensuring that all acquisitions and disposals are compliant with VCC policies and procedures, applicable legislation, and trade agreements.
   
   
   8. Committing VCC to contracts procured in accordance with this policy, to the value set out in Appendix A.
   
   
   
   


3. Director, Procurement is responsible for:
   
   
   
   1. Developing and revising the procurement policy and providing official communications and interpretations of these documents.
   
   
   2. Providing support and advice on the procurement policy and procedures, including the development and management of a procurement training program.
   
   
   3. Developing and revising procurement-related contract administration and providing official communications and interpretations.
   
   
   4. Monitoring and reporting for compliance with this procurement policy.
   
   
   5. Ensuring solicitation and contract award processes are managed in a prudent and unbiased manner that fairly treats all potential vendors and bidders.
   
   
   6. Ensuring that procurement planning is undertaken as part of program/service/goods acquisition process and establishing a multi-disciplinary committee to plan and document the process for any procurement opportunity over $75,000.
   
   
   7. Identifying provincial CSAs that will provide best value to VCC.
   
   
   8. Identifying and initiating supply arrangements across other provincial institutions with a view to achieving demand aggregation and best value to VCC.
   
   
   9. Identifying opportunities for supply arrangements across VCC with a view to achieving demand aggregation and best value to VCC and to establish processes (including Lists of Qualified Suppliers and MSOs) to expedite smaller transactions that are repeated throughout the year.
   
   
   10. Establishing and maintaining a centralized repository containing:
       
       
       
       • full documentation of all procurement activities undertaken by VCC;
       
       
       • all procurement contracts entered into by VCC; and
       
       
       • all approved waivers of competitive process recommended, including approval or disapproval of same.
       
       
       
       
   
   
   11. Establishing and maintaining on the VCC internal website, a location for the posting of detailed procurement procedures, supply arrangements, pro-forma documents and award decisions taken by VCC.
   
   
   12. Establishing and maintaining on the VCC public website, a location for the posting of award decisions taken by VCC.
   
   
   13. Establishing processes for the development and approval of procurement and contracting documents, which must include seeking the advice of VCC legal counsel, where appropriate. Ensuring legal review is documented.
   
   
   14. Establishing guidelines for the procurement of environmentally responsible products and services
   
   
   15. Ensuring processes used by the Departments to acquire goods, services and construction are documented to VCC standards.
   
   
   16. Establishing and managing a formal process for VCC vendor complaints (refer to Appendix C).
   
   
   17. Ensuring that contracts for goods, services and construction, are designed to provide the best value to VCC and are based upon the VCC General Services Agreement, the VCC General Goods Agreement, or upon other templates approved for use by Procurement Services.
   
   
   18. Ensuring that all VCC acquisitions and disposals are consistent with policy, applicable legislation and trade agreements.
   
   
   19. Disposing of all tangible and intangible assets that are surplus to VCC requirements.
   
   
   20. Providing a sole point of access to BC Bid®, the official procurement website of the provincial public sector, for VCC and coordination of all postings on that website on behalf of VCC.
   
   
   21. Ensuring approval to post is attained from the VCC Board of Governors (Board) for every posting above $500,000 on BC Bid®.
   
   
   22. Providing operational procurement services advice to Departments.
   
   
   
   


4. 
   
   The Executive Director, Finance & Chief Financial Officer (CFO) is responsible for:
   
   
   
   1. Ensuring all procurements initiated with the approval of the Board are procured according to VCC policy, and that resulting contracts are fully negotiated and documented using VCC approved General Services Agreements or other contract templates approved for use by Procurement Services
   
   
   2. Providing direction to the Director, Procurement respecting the development of procurement policies and presenting recommendations to the Board.
   
   
   3. Approving the form and content of all procurement solicitation and contracting documents placed into standard usage at VCC.
   
   
   4. Ensuring all contracts are fully negotiated and documented using VCC approved General Service Agreement, General Goods Agreement or other contract templates approved for use by the Procurement Services.
   
   
   5. Approving every posting below $500,000 made to BC Bid®.
   
   
   6. Ensuring legal review of procurement solicitation documents including contract templates and third party contract language where appropriate.
   
   
   7. Reviewing reports on approved waivers.
   
   
   8. Ensuring appropriate approvals are obtained to cover amendments to Contracts
   
   
   9. Ensuring that all approvals within the authority threshold of the Board are recorded accurately and in a sufficient level of detail in the minutes of the Board and are advised in writing to the Director, Procurement.
   
   
   10. Committing VCC to contracts procured in accordance with this policy, to the value set out in Appendix A.
   
   
   
   


5. Board of Governors / Finance & Audit Committee VCC is responsible for:
   
   
   
   1. Approving of all procurement policies recommended by the Executive Director, Finance & CFO.
   
   
   2. Approving or rejecting procurement plans/proposals, and providing recommendations to award a contract within Board thresholds.
   
   
   3. Directing the Executive Director, Finance & CFO to initiate approved plans/proposals using the appropriate procurement strategy.
   
   
   4. Committing VCC to contracts procured in accordance with this policy, to the value set out in Appendix A.
   
   
   
   

C.  CORPORATE SUPPLY ARRANGEMENTS

6. VCC's Procurement Services will identify and initiate provincial CSAs, CISAs, BCNETSource supply arrangements, and VCC supply channels where those arrangements would provide opportunities for demand aggregation and best value to VCC.


7. Departments must participate in supply channels identified or initiated by Procurement Services where those arrangements would provide best value to VCC.


8. Refer to Appendix A for the specific procurement limits that apply when a corporate supply channel is not available.

D.  WAIVERS OF COMPETITIVE PROCESS

9. Contracts for acquisitions (of goods, services, and construction) and disposals may be negotiated and directly awarded without competitive process where one or more of the following conditions apply:
   
   
   
   1. The contract is with a public body or a non‐profit organization.
   
   
   2. The Department can strictly prove that one and only one supplier is qualified, or is available to provide the goods, services or construction.
   
   
   3. Where an unforeseeable situation of urgency exists and the goods, services or construction could not be obtained in time by means of open procurement procedures.
   
   
   4. A competitive process would interfere with a VCC's ability to maintain security or order or to protect human, animal or plant life or health.
   
   
   5. The acquisition is of a confidential or privileged nature and disclosure through an open bidding process could reasonably be expected to compromise VCC confidentiality, cause economic disruption or be contrary to the public interest.
   
   
   6. The acquisition is primarily for resale.
   
   
   
   


10. In all cases, a Waiver of Competitive Process must be completed, recommended and approved, prior to VCC entering into a contract for provision of the goods, services, or construction.

E.  DUE DILIGENCE

11. Procurement planning must be undertaken as part of the program/service planning process.


12. Procurement Services must ensure that procurement planning is undertaken as part of program/service/goods acquisition process and must take steps to establish multi-disciplinary committees to plan and document the planning process for any procurement opportunities over $75,000.


13. Opportunities to initiate demand aggregation across provincial educational and government operations that provide overall savings to VCC, and must make recommendations for their initiation should be recommended to the Director, Procurement.


14. Departments must advise Procurement Services of their procurement plans and requirements for common goods, services and construction in advance of program needs.


15. Departments must participate in provincial CSAs, CISAs, and VCC supply channels identified or initiated by Procurement Services where those arrangements would meet the requirements and provide best value to VCC.


16. Departments require the explicit approval of Procurement Services to not participate in established supply arrangements where such arrangements are available.


17. Departments must review alternatives to acquiring new goods, services and construction such as considering repairs to existing assets and transfer of used assets.


18. Departments must have the appropriate authority and funding to complete a procurement project prior to soliciting proposals, awarding a contract, or contracting for any goods, services, or construction.

F.  PREFERRED PROCUREMENT PROCESSES AND INSTRUMENTS

19. Procurement of Services
    
    
    
    1. A negotiated request for proposal (NRFP) is the preferred method for soliciting proposals for services. Notifications of such solicitations will be posted on the provincial government's BC Bid® website. Proponents shall typically have three or four weeks to submit proposals. A request for proposal (RFP) can be used where appropriate and approved by Procurement Services.
    
    
    2. The responses received by closing time will be evaluated in accordance with the previously disclosed financial and non-financial criteria and weights to produce a ranking.
    
    
    3. Proposals not meeting stated mandatory criteria will be rejected as soon as they are found materially non-compliant.
    
    
    4. Negotiations will proceed with the top-ranked proponent on a services agreement drawn up by applying a VCC approved General service Agreement or based upon an alternative contract template approved by Procurement Services and VCC's legal counsel.
    
    
    
    


20. Procurement of Goods
    
    
    
    1. Where the attributes of goods to be acquired can be specified, an invitation to quote (ITQ) will be issued and a notification posted on the BC Bid® website. Responses submitted by closing time will be evaluated in terms of:
       
       
       
       1. compliance with stated requirements; and
       
       
       2. lowest price.
       
       
       
       
    
    
    2. Negotiations with the qualified respondent that submitted the lowest price will proceed on a goods agreement drawn up by applying a VCC approved General Goods Agreement or alternatively a purchase order will be submitted to the respondent as a form of contract. The contract between VCC and the supplier is formed by acceptance of the purchase order or signing of the General Goods Agreement.
    
    
    
    


21. Procurement of Construction
    
    
    
    1. Typically, each jurisdiction has an established custom of trade for its construction industry. Larger projects are put to tender with documents and drawings being made available at a central place known to general contractors. The form of solicitation on larger construction projects will be an invitation to tender (ITT). Bids are received and responses are ranked by price. Responses are then submitted to technical consultants for further evaluation. Price will be the main consideration but may be eclipsed by other factors providing the ITT was specific enough as to those additional criteria.
    
    
    2. Resulting contracts will be industry specific owing to needs to address construction related requirements like bonding, builder's risk insurance and liens.
    
    
    3. For smaller, less complex and lower value acquisitions of building and grounds maintenance services, ITTs, NRFPs, or RFPs may be employed with the approval of Procurement Services.
    
    
    
    


22. Other Processes and Instruments
    
    
    
    1. For specialized procurement needs, there is a toolbox of instruments that includes NRFPs, RFPs, MSOs, RFQs, RFIs and  EOIs. These tools may be used only upon the recommendation of VCC's Procurement Services.
    
    
    
    

D.  CONFLICT OF INTEREST

23. To ensure transparency and equitability in the completion of all procurements, employees and any Board member(s) involved in the procurement process or the award decision must strictly adhere to VCC's Standards of Employee Conduct & Conflict of Interest Policy 202 or Board Conduct Bylaw G.1.0.


24. An employee or Board member must not participate in the evaluation of responses to a procurement if any respondent could involve a direct relative, a person married to a direct relative, or a person sharing the same household as the employee, or respondent where the potential evaluator holds a shareholding or a financial interest. A direct relative means a spouse, parent, grandparent, grandchild, sibling or child.
    
    
    
    1. Each evaluator is required to provide to the Chair of the Evaluation Committee a declaration that conflict does not exist at the point the identity of the respondents becomes known to the evaluator.
    
    
    2. The signed declarations of conflict must be appropriately filed.
    
    
    
    


25. An employee or Board member must not participate in a contracting decision if the contracting process or contract could involve a direct relative, a person married to a direct relative, or a person sharing the same household as the employee.


26. An employee or Board member, who is exposed to an actual, perceived or potential conflict of interest in relation to an actual or proposed solicitation, must disclose the matter to his or her supervisor and the contract manger.
    
    
    
    1. If, after review, it is determined that there is a conflict, the supervisor must remove the employee from this particular situation.
    
    
    2. The supervisor must advise Procurement Services of the issue of potential conflict at the time it is raised as a concern, and of the resolution of the issue once that determination is made.
    
    
    
    


27. An employee or Board member who fails to disclose a conflict of interest is subject to disciplinary action up to and including dismissal or removal from the Board. Any suspected conflicts of interest must be investigated by a VCC manager who is free of any real or perceived conflict and thereafter promptly resolved.


28. Employees or Board members involved in any capacity with the procurement of goods, service, or construction, or in the management of contracts for the provision of goods, services, or construction may not accept any gifts, special favours, or considerations of any other manner, from potential respondents to procurement opportunities, contractors/suppliers, or individuals associated with contracts/suppliers, unless such gifts are approved in advance by the President.


29. This policy directive applies irrespective of the dollar value of such gift, special favour, or other consideration.

H.  INTERNAL PROVISION VS. PROCUREMENT SUPPLY OPTIONS

30. Where the outsourcing of an internally provided service is being considered, or where VCC is considering a service that was not previously provided by VCC, and the contract for ongoing services over the anticipated term and extensions is greater than $200,000 before taking any steps to find a contractor, a Department must ensure that a benefit-cost justification exists for the contract, including, where appropriate, comparing the cost of contracting out with the cost of providing the service in-house if the in-house resources are readily available.


31. The benefit-cost assessment should address risks of reliance on external parties, contract succession challenges and vendor relationship management issues over the term of the contract.


32. Contract outcomes must be defined; and the contract must be consistent with policy, applicable legislation, and trade and collective agreements.

I.  CONTRACT AWARD, MANAGMENT AND EXTENSION

33. Where a contract for the continuation of a service is to be awarded (that is not the result of exercising an option to renew) and the requirements have not changed from those provided under the initial contract, the Department may rely upon the original benefit-cost justification if it is still relevant. The Vice President responsible for the Department may request an update to the original justification where the business situation warrants.


34. A contract must not result in the contractor occupying on an ongoing basis, an organizational position, or take the place of work normally conducted or acquired by a central support function within VCC.


35. A contract must not result in the establishment of an employer/employee relationship. Every contractor engaged by the VCC must be independent and operating at arm's length from VCC.


36. Employees must not divulge any information that could impair the negotiating position of the VCC or that could benefit the competitive position of one contractor at the expense of another.

J.  PUBLIC POSTING – BID OPPORTUNITIES, AMENDMENTS AND NOTICE OF CONTRACT AWARDS

37. Where VCC policy or applicable intergovernmental trade agreements require the advertisement of an opportunity that notice must be posted on the BC Bid® website. Procurement Services is the sole agent of VCC authorized to post opportunities and solicitation amendments on BC Bid®.


38. If a solicitation is found to have a material omission or error, prospective proponents must be notified by way of an amendment posted on the BC Bid® website. If any such change amendment should fall less than five days before responses are due, the closing time should be extended to provide respondents reasonable time to consider any such change and to revise their submissions.


39. Procurement Services must post all award decisions taken by VCC to a location on the VCC public website established and maintained for that purpose.

K.  INTERGOVERNMENAL TRADE AGREEMENTS

40. VCC is part of the “MASH sector” that includes municipalities, publicly funded post- secondary academic institutions and school boards, and health regions. As a member of the provincial public sector, broadly defined, it must therefore comply with three intergovernmental trade agreements:

The federal-provincial intergovernmental Canadian Free Trade Agreement (CFTA). Annex 504.3 extends the CFTA to acquisitions by MASH sector with the following expected full- term contract values:

1. $121,200 or more for goods or services excluding construction; and


2. $302,900 or more for construction.

The British Columbia-Alberta Trade, Investment and Labour Mobility Agreement (TILMA). TILMA applies to MASH sector acquisitions with expected full-term contract valuesof:

1. $75,000 or more for goods;


2. $75,000 or more for services; and


3. $200,000 or more for construction.

Exceptions to TILMA are listed in Part V of the agreement.

British Columbia-Alberta-Saskatchewan-Manitoba New West Partnership Trade Agreement (NWPTA) supplements TILMA. The NWPTA applies to MASH sector acquisitions with expected full-term contract values of:

1. $75,000 or more for goods;


2. $75,000 or more for services; and


3. $200,000 or more for construction.

Exceptions of the NWPTA are listed on Part V of the agreement.

L.  CONTRACT SUPPORT BY VCC

41. Where funding is provided to the contractor to acquire assets the contract must identify the assets and the funding provided for the purpose of acquiring the assets. The contract must also state who owns the assets that are provided to a contractor by VCC; the assets created as a result of the contracted services; or the assets that are purchased by the contractor with funds provided by VCC.


42. The contract must also state who is responsible for the maintenance of the asset during the period of the contract and the disposition of the assets at the termination of the contract. The specific and prior approval of the Executive Director, Finance & CFO is required before VCC enters into any situation where it funds the Contractor acquisition of an asset.


43. Where VCC is willing to provide services to a contractor (e.g., office accommodation or computer networking services), this must be disclosed to all prospective respondents to a solicitation and offered in a non-discriminatory manner.


44. Departments and Procurement Services must not bestow a favour on, or grant preferential treatment to, any prospective contractor.

M.  STRATEGIC PARTNERSHIP AGREEMENTS

45. VCC may enter into a Strategic Partnership contract, agreement or alliance with external organizations. A department may request to Procurement Services negotiate a strategic partnership with an external entity if the following conditions are met:
    
    
    
    1. The request is consistent with the vision and values as articulated in the VCC strategic plan; and
    
    
    2. The request is supported by a comprehensive cost benefit analysis that has been reviewed and recommended by appropriate key areas of the College; and
    
    
    3. Any good or services the agreement will cover is exempt from the competitive process, for example, acquisitions primarily for resale; and/or
    
    
    4. As a condition of funding from an external source, VCC is required to leverage funding or support from other external sources to maximize benefits to students and VCC
    
    
    
    


46. The Director, Procurement Services will review initial requests for strategic partnership agreements and will recommend to Executive Director, Finance & CFO to approve or reject the request.


47. Procurement Services will advise College Advancement of potential strategic partnership opportunities.

N.  SUPPLIER DONATIONS

48. To ensure transparency and fairness of the procurement process, procurement decisions and activities except for Strategic Partnership Agreements must not be mixed up or tied to solicitation of supplier donations.


49. Discussions with potential donors including contractors pertaining to donations or support for VCC activities and undertakings must be conducted only through the VCC Marketing Department and/or VCC Foundation.

O.  Supplier Samples

50. Budget Officers may accept product samples from suppliers only if samples are:
    
    
    
    1. delivered under Strategic Partnership Agreements;
    
    
    2. provided as a donation gift-in-kind through the VCC Foundation;
    
    
    3. not solicited in any manner from the supplier; or
    
    
    4. used for educational evaluation purposes as follows:
       
       
       
       1. samples are distributed equitably to students enrolled in the course for student evaluation, or
       
       
       2. samples are used in the preparation for or delivery of course content, where the product evaluation will be undertaken. 
       
       
       
       
    
    
    
    

The quantity of samples must be reasonable in relation to the evaluation to be conducted.

P.  FORMER EMPLOYEES OF VCC

51. An employee who has received a severance payment on termination of employment must repay all or portion of the lump sum payment if remuneration is received from a contract with VCC within the severance settlement period.


52. VCC shall hold former employees to their common law duty to maintain the confidentiality of information to which they had access while employed by VCC. VCC employees who have reason to believe that a former employee may have breached that duty must immediately report to the Executive Director, Finance & CFO without fear of reprisal or retaliation.

Q.  ENVIRONMENTAL RESPONSIBILITY

53. Departments must follow the Green Purchasing Guidelines (available on myVCC) established by Procurement Services respecting the procurement of environmentally responsible products and services.


54. Where VCC environmental policies exist and apply to the acquisition of goods or services, those policies should be reflected in the evaluation criteria. The general provisions of the procurement policy requiring open competition and value for money will continue to apply.

R.  STANDARD DOCUMENTS

55. VCC has established standard documents and templates that must be used for all procurement processes and contracts, unless Procurement Services develops and approves the use of an alternate document to meet a specific business requirement.


56. Appropriate documents will be applied under the guidance of Procurement Services, any by employees authorized to initiate a procurement process.


57. Internal controls have been established over change control to verify the integrity of the fixed schedules to the General Services Agreement With controlled access in place, VCC may incorporate the fixed schedules into the General Services Agreement by reference.


58. All documents and templates are available on VCC's internal website myVCC.

S.  TRAINING AIDS

59. Training aids are available on VCC's internal website myVCC.