Purpose
St. Francis Xavier University strives to maintain the highest professional standards in the stewardship of the resources entrusted to it. The University must ensure that goods, services, and construction are acquired in manner that obtains best value for the university, uses a fair and open process, and meets all legal and ethical obligations.
Scope
This Policy applies to the purchase of all goods, services, and construction, regardless of the funding source, made on behalf of the University, including capital expenditures.
Definitions
- Alternative Procurement - Specialized or exceptional practices that allow for deviation from the procurement processes that the value or nature of the goods, services or construction would normally require. This could include a noncompetitive procurement in the place of a competitive process, and a limited competition in the place of an open competition.
- Best Value - Evaluation of quotes or proposals including purchase price and life cycle cost considerations including sustainability, environmental considerations, social considerations, accessibility, delivery, service, risk and the capacity of the supplier to meet other criteria as stated in the solicitation documents.
- Bid/Tender - A legally required competitive public process requesting submissions in response to a solicitation (tender or RFx) document based on the value of the procurement.
- Buying Group - Cooperative procurement organizations created to support the purchasing requirements and activities of members.
- Construction - Construction, reconstruction, demolition, repair or renovation of a building, structure, road or other engineering or architectural work, but does not include professional consulting services related to the construction contract, unless they are included in the procurement.
- Employee - Refers to any person paid by the University including faculty, staff, and administrators whether full time or part time. It also includes persons who are acting in a position of authority on behalf of the University without compensation. Examples include but are not limited to: members of Alumni, Board of Governors, Volunteers, and Consultants.
- Goods - Physical materials, furniture, merchandise, equipment, stationery and other supplies required for the delivery of teaching, research and administration, and may include services that are incidental to the provision of such supplies.
- Limited Competition - An alternative procurement practice that may be used where the circumstances permit the procurement of goods, services or construction through an invitational competition when an open competition would otherwise be required.
- Non-employee - An individual with a temporary business relationship with the University, such as speaking, attending a lecture, meeting, workshop or research collaboration. Examples can include, but are not limited to, members of Alumni, Board of Governors, Volunteers, and Consultants.
- RFx - Collective term that references solicitations including request for information (RFI), request for proposal (RFP), request for quote (RFQ), request for bid (RFB) and more.
- Solicitation Process - Solicitation of competitive bids from suppliers. Options include open competition (public process, an invitational competition or limited competition.
- Services - Services required by the University for the transaction of its business and affairs, including professional consulting services. Validation is required for all vendors, including contractors and service providers, who do work on StFX properties.
- Supplier/Vendor - A person or organization carrying on the business of providing goods, services or construction.
- Sustainable Procurement - A framework for purchasing activities to create intentional positive environmental, social, and economic impacts, while maintaining an open, fair and transparent procurement process.
- Total Cost of Ownership - Total cost of ownership is the consideration of al financial obligations including initial purchasing, operations and maintenance, utilities and energy, renewal terms, and decommissioning or disposal.
- Value of Procurement - The estimated maximum total value of the procurement over its entire duration, whether awarded to one or more suppliers, taking into account all forms of remuneration, including: (i) premiums, fees, commissions, and interest; and (ii) the total value of options if the procurement provides for the possibility of options.
- Workflow - Financial system electronic approval process supporting the Contract Approval/Signing Authority Policy. Security authentication is based on each unique employee WebFX user ID and password.
Policy
All purchase requests must be approved by the University prior to commitment to a supplier through the workflow process. The University will:
a) Conduct the procurement of goods, services, construction and facilities in a fair, open, consistent and transparent manner resulting in overall best value;
b) Promote sustainable procurement practices;
c) Strive to attain the best value by achieving the lowest cost in the fulfillment of specified needs with appropriate levels of quality and service.
1. Sustainability and Accessibility
Employees are required to consider sustainability and accessibility as part of their selection process and include assessments of environmental, economic, social, and ethical factors. Procurement decisions consider the best value including the total cost of ownership of an item or service which includes an analysis of the supplier’s response to the above criteria.
Consider identifying and exploring opportunities to work with and support social enterprises and businesses that are owned by and/or employ underrepresented populations and support positive environmental, social and economic impacts. The University incorporates sustainability and accessibility criteria and features when procuring goods, services and construction.
Where applicable, procurement documents will specify the desired criteria to be met and provide guidelines for the evaluation of proposals in respect of those criteria.
2. Purchasing Thresholds
All purchase transactions valued at CAD $2,500 or greater require an official purchase order and may require a written contract.
The total Contract Value/purchase price determines the procurement process and the approval authority required (including Board approval if applicable). Refer to the Contract Approval/Signing Authority Policy for approval authority requirements.
The following table outlines the dollar thresholds (pre-tax) of the University. Please contact Procurement Services for guidance:
| Purchase Threshold (Cdn $) | P-card* | Purchase order | Quotations Required | RFx Process |
|---|---|---|---|---|
| $100,000* + (high value) | No | Yes | No | Publicly posted – Contact Procurement |
| $25,001 - $99,999 (moderate value) | No | Yes | 3 written | Optional – contact Procurement |
| $2,500 - $25,000 (low-moderate value) | No | Yes | 2 - 3 written | No |
| $1 - $2,499 (low value) | Yes* | Optional | Optional | No |
*Canadian suppliers only – up to individual Pcard threshold
**Suppliers providing services who will be working in person at any University property require validation as per Occupational Health & Safety. It is the responsibility of the employee requesting the service to ensure supplier validation BEFORE they arrive on campus to perform work.
Invoices for the purchase of goods and services** under $2,500 but higher than an employees’ Pcard limit MUST be submitted to Payment Services by email and include G/L account codes and confirmation of receipt. Payment authorization is validated through the workflow process.
The delivery address for purchased goods MUST be a University address. Invoices submitted directly to Payment Services for goods delivered to other physical locations (i.e. home address, personal PO Box) will not be paid.
Ownership of all purchases, regardless of the funding source, made on behalf of the University, including capital expenditures, remain the property of the University.
Payment requests will not be processed without ALL required documentation, including a confirmation of payment and receipt (packing list, courier acknowledgement).
Exclusions:
- Furniture and Equipment (Office, laboratory, and home office)
- Gift cards – (subject to Gift & Award Policy –coming soon)
- Alcohol and Meals – (see Travel and Expense and Hospitality Policy – coming soon)
- Narcotics or cannabis
- Computer hardware (i.e., desktops, laptops, tablets, smart phones, interactive technology, printers, etc. – contact IT Services)
- Laboratory or Research Animals
- Biological materials
- Cylinder Gases
- Radioactive materials
- Controlled substances or hazardous chemicals or materials
- Leasing or rental of equipment for more than 30 days
- Drugs, prescriptions
- Flowers or balloons, Gifts and contributions, including gift cards (refer to HR Recognition of Significant Events Policy)
- Maintenance or Service Contracts
- Salaries, Wages or Consulting Fees
Creating separate transactions with a supplier in order to avoid a competitive process is not permitted under StFX policy or by federal or provincial laws and trade agreements. Splitting payments using a Pcard is not permitted.
3. Procurement Planning
Effective project planning is essential to ensuring effective results and limiting risk. Planning must be considered for every high value procurement project.
A high value procurement that has levels of complexity, risk, or a profile that requires a significant allocation of attention, time and resources averages approximately 300 days from the initial project identification to award. This does not include the delivery or implementation of the project post award. Allow enough time to complete effective planning and execution of the process.
Failure to plan for the amount of time required to complete the RFx process required for a procurement is not justification for an alternative procurement or an emergency procurement.
Sufficient time must be set aside to properly plan for a high value procurement project. Planning will include consideration for:
a. an initial identification of the need, including a budget, mapping statement and estimated total procurement value
b. determining other internal or external advice that may be required (e.g., Legal, Finance, consultant services)
c. determining the appropriate execution strategy (e.g., Open, Non-Competitive, Limited)
d. developing proper specifications and requirements including identifying opportunities for consolidation of requirements
e. pricing structures
f. evaluation plan
g. RFx format selection
h. justification for using an Alternative Procurement Practice (Non-Competitive or limited competition only)
The exception to this requirement would be in the case of an Emergency Procurement as outlined in the Emergency Procurement section of this policy.
Alternative Procurement (ALTP)
Alternative procurement practices may be used in exceptional circumstances to balance the need to be open and competitive with the demands of urgent or specialized situations. Alternative procurement practices must not be used to avoid competition between suppliers or to discriminate against specific individual or groups of suppliers.
The use of alternative procurement practices must be authorized by a Vice President or the President. The rationale permitting the Alternative procurement practice will be documented on the appropriate form and will provide substantiation for the actions taken.
To request an alternative procurement, complete the Alt-P form and submit to Procurement for review. A response will be provided indicating whether or not the details provided are supported as an Alt-P by Procurement.
The approving senior administrator is responsible and accountable for any decision to authorize or proceed with a procurement process or transaction that does not have the support of Procurement.
High value alternative procurements are required by law to be publicly posted and may be subject to legal challenge.
Failure to anticipate the amount of time required to complete the RFx process required for a procurement is not justification for an alternative procurement.
4. Emergency Procurement
Where an urgent need arises due to an immediate risk to the safety or health of employees or the general public or because of the possibility of serious damage to public or private property, a senior administrative employee is authorized to procure the necessary goods, services or construction as they determine appropriate. In doing so, the senior administrative employee should take into account and fulfill the objectives and requirements of this policy to the extent possible under the circumstances.
Failure to anticipate the amount of time required to complete the RFx process required for a procurement does not constitute an emergency.
5. Supply and Service Agreements
Procurement Services may use supply and service agreements established by other public sector entities or Buying Groups when those agreements have been established through a competitive process and contain language that allow terms to be extended to other public sector entities (e.g. Interuniversity Services, Provincial and Federal agreements, other available University or public sector agreements). Multiple quotations may not be required for the purchase of goods and services made from a contracted supplier. Contact Procurement Services for information on available supply and service contracts and their thresholds.
6. Workflow
Submission of a purchase request initiates an approval process by email based on the general ledger account code and purchase value. Refer to Workflow Groups and Approvals for more information.
7. Research Grants
Research grant holders are required to follow the University’s established policies for the procurement of goods and services. Additional restrictions may be imposed by the granting agency and may supersede University requirements.
8. Gift Giving and Awards
Refer to 4012 Gift Giving and Award Policy – coming soon
9. Personal Funds
Personal funds shall not be used to purchase University goods, services or construction.
10. Custom Clearance Imports & Exports
Procurement Services is responsible for the customs clearance requirements for the import or export of any goods and services to the University. Refer to the Customs Clearance Process document.
11. Surplus Materials
Procurement Services is responsible for the sale or disposal of surplus/scrap University assets. Refer to the Disposal of Surplus Material Process document.
12. Exclusions/Exceptions
a. Travel – Purchasers of travel related services are subject to the University Travel Policy and other applicable policies.
b. Campus Store – For retail resale only
c. Angus L. MacDonald & Marie Michael Library – permitted to purchase books and related materials only
Procedure
Supporting Documentation
None applicable.
Related Policies
Purchasing activities are required to comply with other University policies including, but not limited to:
- P-Card Policy
- Travel & Expense Card (Tcard) Policy
- Travel and Expense Policy
- Contract Authorization Policy
- Gift Giving and Award Policy – coming soon
- Hospitality Policy – coming soon
- Conflict of Interest
- Occupational Health & Safety
Legal Framework
In addition to the above mentioned policies, this policy will be interpreted in accordance with applicable law, and, if any of these legal provisions are modified, abrogated, superseded, or added to, the policy will be interpreted in accordance with the new legal framework:
- Nova Scotia Public Procurement Act
- Freedom of Information and Protection of Privacy Act, Nova Scotia (FOIPOP)
- Occupational Health and Safety Act, Nova Scotia (OH&S)
Trade agreements may also impose specific procurement requirements on the University:
- Canadian Free Trade Agreement (CFTA)
- Comprehensive Economic Trade Agreement with the European Union (CETA)
- Comprehensive and Progressive Trans-Pacific Partnership (CPTPP)
- World Trade Organization – Agreement on Government Procurement (WTO-GPA)
- Canada-UK Trade Continuity Agreement (Canada-UK TCA)
