For the purpose of this document, the following definitions apply:

Purchasing Terms

Request for Information: A Request for Information (RFI) is used on high value and/or complex purchases to identify the interest of potentially qualified suppliers in the marketplace and/or for budgetary pricing. An RFI does not form a contractual commitment. No award results from an RFI. An RFI may lead to an RFP.

Request for Proposal: A Request for Proposal (RFP) is a competitive bid process that is undertaken typically for higher dollar value and/or complex transactions where factors in addition to price will be used to make the final purchasing decision, e.g. qualifications, experience, etc. It identifies business or research objectives with mandatory and optional requirements and may be linked to a previously issued Request for Information (RFI). An RFP is normally awarded based on a weighting of evaluation criteria, including price.

Request for Quotation: A Request for Quotation (RFQ) is a competitive bid process that is undertaken typically for transactions where price is the key factor in the purchasing decision. Standard specifications and/or brand or direct equivalent goods are specified. An RFQ is normally awarded on the basis of lowest price meeting the mandatory technical requirements.

Types of Competitive Bids

Construction Tender: A Construction Tender (initiated by Physical Plant) is a call for bids, usually issued on a stipulated sum basis (plans and drawings requesting one specific bid price), and normally to pre-qualified contractors. The lowest priced bid which meets the mandatory requirements of the tender is awarded the contract.

Independent Contractors: An Independent Contractor is a supplier providing a non-employment service, for example consulting work, program/web design, professional service or testing service. Tenders for Independent Contractors are conducted through the Request for Proposal (RFP) process. A University of Manitoba standard (pro-forma) Independent Contractor Agreement (ICA) is normally developed as the contractual agreement.

Consulting Services (construction): Consulting Services (construction) including architectural consulting services, engineering consulting services, and construction management services, are tendered by RFP, normally using a two-stage pre-qualification and proposal process. Supplier selection is based on a weighting of evaluation criteria, including service fees. A customized Professional Services Agreement or Design Consultant Agreement is normally developed for the contracted services.

Purchase Orders

Purchase Order: A Purchase Order (PO) is a binding agreement between the University of Manitoba and the supplier to provide the noted goods/services according to the terms and conditions of the order. A PO is committed to the requisitioner's Fund Organization Account Program (FOAP) when it is issued, and remains committed until the supplier is paid. A copy of the PO is sent to the Requisitioner at the time the order is placed.

P.O. Acknowledgement Copy: A PO Acknowledgement Copy is faxed to the requisitioner's designated fax number associated with the Organization code of their FOAP, to confirm the issuance of a PO for goods/services ordered under $2,500. This copy is for the requisitioner’s files and does not require further action.

P.O. Receipt Notification Copy: A PO Receipt Notification Copy is faxed to the requisitioner's designated fax number associated with the Organization code of their FOAP, to confirm the issuance of a PO for goods/services ordered for $2,500 or more. This copy must be returned to Purchasing Services to acknowledge receipt of the goods/services and is required in order to make payment to the supplier.

1.0 Reason for Procedure(s)

To set out procedures secondary to the Policy entitled Purchasing.

2.0 Procedure(s)

2.1 Purchasing Services is authorized to make purchases and commit the University to binding agreements for the acquisition of goods and services in accordance with the Purchasing Policy.

The overall cost of the goods or services requisitioned, will determine the appropriate purchasing method.

2.2 Information Technology Procurement

All purchases of information technology goods and services (consulting, hardware, software, cellular phones, audio visual, printing equipment, accessories, peripherals, etc.), must be made through the designated methods by the IT Procurement Centre.

2.3 Cost of Purchase (per order) is under $2,500

If a purchase is under $2,500 the following Distributed Purchasing Systems are available to University requisitioners. These systems are designed for direct order placement to suppliers. Requisitioners are required to retain ordering and receiving documentation for reconciliation to their FOAP and for future audit requirements.

i) Systems Contracts are exclusive contracts with designated suppliers for specific commodities of goods or services, with pricing and other terms negotiated University wide. If the contracted products or services are less than $2,500 in value, the University is obligated to purchase from the designated supplier. Systems Contract Requisition forms must be sent by the requisitioner directly to the supplier. The invoice is sent directly, by the supplier, to Supplier Payment Services for payment. The unit ordering will automatically have their FOAP charged when the invoice is paid.

ii) Preferred Supplier Agreements are similar to Systems Contracts except without an obligation to buy from the designated supplier. Systems Contract Requisition forms are sent by the requisitioner directly to the supplier. The invoice is sent by the supplier directly to Supplier Payment Services for payment. The unit ordering will automatically have their FOAP charged when the invoice is paid.

iii) Standing Orders are arranged to facilitate repetitive (under $2,500) purchases from one supplier over the course of a fiscal year, and are competitively tendered like a Purchase Order (as outlined in 2.3 to 2.6 below). Standing Orders outline the cost of goods or services required over a fiscal year. Purchasing Services helps negotiate the best price and other service requirements. The cost of the order is committed to FOAP at the time of setup. The initial value can be an estimate that is revised over the course of the year with a Change Order. Requisition to Purchase forms must be submitted to Purchasing Services to set-up the initial Standing Order. The awarded supplier will be issued a formal University of Manitoba Purchase Order. The Requisitioner will be provided with a PO copy. Requests are then placed directly with the supplier and the invoices are sent directly from the supplier to Supplier Payment Services for payment. The invoice payment will reduce or remove the associated commitment on the designated FOAP accordingly.

iv) Purchasing Cards (PCard) are used to purchase goods or services not otherwise available through Systems Contracts, Preferred Agreements, or Standing Orders. This method is useful for memberships, subscriptions, registrations and other low dollar goods/services. A Visa Order form is used to place the order with the desired supplier. Payments to the PCard issuer are made monthly and result in a charge to the designated FOAP. For information on how to obtain a PCard, contact Supplier Payment Services.

v) Low Dollar Purchase/Payment Program (LDP) is used to purchase goods or services not otherwise available through Systems Contracts, Preferred Agreements, Standing Orders, or the PCard. This method is useful for memberships, subscriptions, registrations and other low dollar goods/services, where a PCard is not accepted. A LDP order is placed directly by the requisitioner to a supplier accepting a LDP form. A LDP form requests the supplier to send the invoices directly to the requisitioner. The requisitioner attaches the invoice to the authorized LDP form and submits it to Suppler Payment Services for Payment. Entry of the invoice for payment to the supplier results in a charge to the designated FOAP. Further information on this program is available by contacting Supplier Payment Services.

If the goods/services cannot be purchased by any of the above methods/programs, a Requisition to Purchase should be completed and submitted to Purchasing Services for order placement.

2.4 Cost of Purchase (per order) is between $2,500 and $24,999

If a purchase is between $2,500 and $24,999 it can be made without competitive tendering at the discretion of Purchasing Services. This is usually for commonly ordered items, homogeneous products, and/or purchases from a wide variety of supplies. A Requisition to Purchase form must be completed by the requisitioner and should describe the goods/services in detail and any information about a suggested supplier should be attached. The form and any quotes already solicited by the requisitioner must be sent to Purchasing Services. The decision whether or not to pursue competitive tendering will be based on the information provided, the price, the competitiveness of the product/service, quotations obtained by the requisitioner and fair and overall balanced purchases from local and/or national suppliers. The awarded supplier will be issued a PO.

2.5 Cost of Purchase (per order) is between $25,000 and $99,999 (Construction/renovation between $25,000 and $249,000)

If a purchase is between $25,000 and $99,999, it must normally be tendered, taking into consideration the suggested suppliers of the requisitioner. A Requisition to Purchase form or tender document must be completed by the requistioner including a detailed description of the goods/services and any other requirements and specifications. The contemplated purchase is tendered by either a construction tender, a Request for Quotation (RFQ), or a Request for Proposal (RFP). The opportunity will be publicly advertised and/or specifically sent to known suppliers. The brand or equivalent may be specified. The bids will be evaluated on price and other criteria depending upon the value, complexity, and competitiveness of the product/service. The awarded supplier will be issued a PO.

2.6 Cost of Purchase (per order) is $100,000 or greater See 2.6 for construction/ renovation thresholds

If the purchase is $100,000 or greater the purchase transaction is subject to the Federal/Provincial Agreement on Internal Trade (AIT). A Requisition to Purchase form must be completed by the requisitioner including a detailed description of the goods/services and any other requirements and specifications. The opportunity will be publicly advertised and specifically sent to known suppliers. The brand or equivalent may be specified. The bids will be evaluated on price and other criteria depending upon the value, complexity, and competitiveness of the product/service. The awarded supplier will be issued a PO.

2.7 Construction/renovation over $250,000

If the construction/renovation purchase is $250,000 or greater the purchase transaction is subject to the AIT. An RFP or Construction Tender will be issued by Purchasing Services. The RFP or Construction tender will be advertised publicly, and normally open to only pre-qualified contractors by stipulated sum sealed bids, and awarded to the lowest compliant bid. A standard construction industry contract is normally developed for the construction/renovation service.

2.8 Upon making the decision on the type of purchase that is necessary, the Requisitioner should complete a Systems Contract form, Visa Order form, Low-Dollar Purchase/Payment (LDP) form, or Requisition to Purchase form as applicable. For instructions on completing these forms, please visit the Purchasing Services website.

3 .0 Accountability

3.1 The University Secretary is responsible for advising the President that a formal review of the Procedure is required.

3.2 The Comptroller is responsible for the communication, administration, and interpretation of this Policy.

4.0 Review

4.1 Formal Procedure reviews will be conducted every ten (10) years. The next scheduled review date for these Procedures is July 3, 2019.

4.2 In the interim, these Procedures may be revised or rescinded if:

(a) the Approving Body deems necessary; or
(b) the relevant Bylaw, Regulations, or Policy is revised or rescinded.

5 .0 Effect on Previous Statements

5.1 These Procedures supersede the following:

(a) all previous Board/Senate Procedures, and resolutions on the subject matter contained herein; and
(b) all previous Administration Procedures, and resolutions on the subject matter contained herein; and
(c) all previous Faculty/School Council Procedures stemming from the Faculty/School Council Bylaw and academic and admission Regulations and any resolutions on the subject matter contained herein; and
(d) Policy 307 Purchasing and Receiving, Policy 303 Financial Commitments.

6.0 Cross References

1) Purchasing Policy
2) Environmental Sustainability Policy (in development)