PURCHASING POLICY AND PROCEDURES

Issue date: March 2010

TABLE OF CONTENTS
THE HOSPITAL PURCHASING POLICY

GOVERNANCE

PROCUREMENT REQUIREMENTS

PROCESSES

APPENDICES
a. Glossary of terms
b. Products and services Templates
c.

Mandatory Requirements

d. Associated Policies

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THE HOSPITAL PURCHASING POLICY

OBJECTIVE
To maximize value for money in the acquisition of goods and services through fair, open and transparent
purchasing practices which comply with all applicable federal and provincial legislation and trade
agreements, resulting in the highest quality service delivery.

POLICIES
1. All purchases made by the Hospital will be compliant with the hospitals policies and procedures.
2. These policies and procedures will be aligned with the Ontario Supply Chain Guideline.
3. All purchase orders and contracts will be executed according to this policy and the Hospitals Signing
Authority Policy ( insert link).
4. Single/sole sourced purchases are acceptable only under circumstances defined in the associated
purchasing procedures, and must be executed in accordance with the Agreement on Internal Trade.
5. Vendors of Record (VOR), or preferred supplier arrangements, may be established for the supply of a
certain category of goods, services or construction where strategic relationships with a small group of
suppliers will result in greater value for the hospital. VORs must be set up through an open and
competitive purchasing process.
6. All purchasing related activities will be transacted in compliance with the Supply Chain Code of Ethics
and the Conflict of Interest policies of the hospital.
NB: All processes are detailed in the Purchasing Procedures.

EXCEPTIONS
Any exceptions to these policies require written justification and the approval of the Vice-President,
Finance.

SCOPE
The Purchasing Policy applies to all individuals involved with purchasing or other supply chain-related
activities at the Hospital.

GUIDING PRINCIPLES

Customer Satisfaction
To procure quality goods and services in the appropriate quantity and time to fully satisfy customer
requirements and assist in providing the highest standards in patient care.

Business Analysis
To support sound business analysis and encourage meaningful participation of suppliers in a
competitive process prior to the establishment of a business relationship or contract award.

Process
To solicit, using the highest standards of professionalism and ethical conduct, tenders or proposals
from which to make a choice for award of a purchase order or contract. The form of competitive
bidding, solicitation and contract will be auditable, open, without favoritism and the most appropriate
for the related requirement.

Risk Management
To reduce business risk and the potential for internal and external conflicts of interest through the
application of specific and transparent policies. To ensure patient and staff safety are considered in
all purchasing decisions.

Employee Productivity/Satisfaction
To provide clear direction and expectations for employees.

Value for Money

To maximize value for money in all acquisitions, applying leading practices such as Total Cost of
Ownership analysis when making purchasing decisions.

Licenses
To ensure that all purchases are licensed as documented in the hospitals purchasing procedures.

Donations, Research or Educational Funds

To promote fair and equitable treatment of all suppliers, donations of funds to support research
(outside a Research grant or agreement), education or other endeavors will not grant preferential
treatment to suppliers who provided them.

Information Practices
To ensure that all activities are in compliance with the hospitals Information Practices policy.

Dealing with Suppliers

To treat suppliers with courtesy, fairness, respect, honesty and professionalism and to ensure that no
supplier has an unfair advantage over its competitors. To respect and not disclose Suppliers
confidential information.

THRESHOLDS
These thresholds apply to all goods and services*:

Dollar Value

Number of Quotes

Solicitation Method

Response Method

$1 - $25,000

1 quote

Verbal

Verbal

$25,001 $99,999

3 quotes**

Invited bid (written)

Written

$100,000

Public RFx

*All thresholds are before tax.

**Every effort must be made to obtain three written quotes. In certain circumstances (see below) this may
not be possible, and written documentation of the reason must be included in the file.

REASONS:
a. There are fewer than three suppliers capable of supplying the products or services
b. Three suppliers are solicited, but fewer than three elect to respond

GOVERNANCE
INTRODUCTION
These procedures detail the processes, roles and responsibilities that support and enable the hospital
Purchasing Policy. They are aligned to the Broader Public Sector (BPS) Supply Chain Guideline.

POLICY
All purchases made by the Hospital will be compliant with the hospitals policies and procedures.

SCOPE
The Purchasing Policy and associated procedures apply to all individuals involved with purchasing or
other supply chain-related activities at the hospital.
This procedure applies to all sourcing activities by the hospital and to all purchase order transactions.

EXCEPTIONS
Any exceptions to these procedures require written justification and the approval of the Vice-President,
Finance.

CONFLICT OF INTEREST
Consistent with the Conflict of Interest Policy and the Supply Chain Code of Ethics, individuals will not
engage in any activity that may create, or appear to create, a conflict of interest, such as accepting gifts
or favours, or providing preferential treatment to suppliers or products. During a sourcing event, all direct
relationships between participating individuals and supplier organizations must be fully disclosed in a
Conflict of interest document. 24

[Supply Chain Code of Ethics]

[The Hospital Conflict of Interest Policy]

PROHIBITED ACTIVITIES
It is prohibited to
a. evade or circumvent the requirements of these procedures including, but not limited to, the division of
purchases to avoid the threshold requirements
b. purchase, on behalf of any staff member or consultant the hospital or their families, any goods and/or
services for personal use.

SEGREGATION OF DUTIES
The Hospital will segregate at least three of the five functional purchase to pay roles. Responsibilities
for these functions lie with different departments or at a minimum with different individuals: [1]

Roles

Explanation

Who

Requisition

Authorize the supply chain department to End User requesting the product
place an order
or service

Budget

Authorize that funding is available to

cover the cost of the order

Departmental budget holder

Commitment

Authorize release of the order to the

supplier under agreed-upon contract
terms

Purchasing role in the supply chain

department

Receipt

Authorize that the order was physically

received, correct and complete

Individual receiving the goods

Payment

Authorize release of payment to the

supplier

Accounts Payable

SIGNING AUTHORITY
It is a hospital policy to ensure there are clear statements and procedures indicating the required signing
authority for supply/disbursement requisitions, capital equipment requisitions, capital construction
projects, contracts and expense reimbursement claims. [2]
[Signing Authority]

PROCUREMENT REQUIREMENTS
There are different competitive procurement mechanisms available depending on the desired outcome.
These include:

Verbal Quotation

Invitational bid

Request for Information (RFI)

Request for Supplier Qualifications (RFSQ)

Competitive procurement

Request for Proposal (RFP)

Request for Quotation (RFQ)

VERBAL QUOTATION
For purchases less than $25,000 one verbal (or written quotation) must be obtained either before the
purchase or at time of purchase (e.g., if a purchase is made on a procurement card, the transaction
receipt will be the quotation).

INVITATIONAL BID
An invitational bid is one where a specific number of suppliers are requested, in writing, to submit bids.
For Hospital purchases greater than $25,000 but less than $100,000, it is the policy to request three (3)
invitational bids and every effort must be made to obtain bids from three suppliers. In circumstances (see
below) where this is not possible, written documentation of the reason must be included in the file.

REASONS:
a. There are fewer than three suppliers capable of supplying the products or services
b. Three suppliers are solicited, but fewer than three elect to respond

REQUEST FOR INFORMATION (RFI)

The purpose of an RFI is to gather general supplier, product and/or service information. This mechanism
may be used when the purchaser is researching a contemplated procurement and has not yet determined
what characteristics the ideal solution would need.
Responses to RFI questions normally contribute to the final version of a subsequent RFP and may
include targeted questions about the required output/acquisition, seeking combinations of industry leading
practices, suggestions, expertise and even concerns and additional questions from suppliers. An RFI
should not request pricing information.
RFIs do not pre-qualify potential suppliers and must not influence their chances of being a successful
supplier on any subsequent opportunity. [4]
An RFI should request (but is not limited to) the following type of information:

interest and/or capability to provide certain goods or services;

background of the supplier and its key personnel;

experience with similar work (firm and staff assigned);

technical product information; and

overview of the suppliers service/product offering.

Any resulting competitive procurement process will be issued in accordance with this procedure. The RFI
may not lead to a formal competitive bidding process.

REQUEST FOR SUPPLIER QUALIFICATIONS (RFSQ)

The purpose of an RFSQ is to gather information on supplier capabilities and qualifications, with the
intention of creating a list of pre-qualified suppliers. An RFSQ may be used either to identify qualified
candidates in advance of expected future competitions or to short list qualified vendors.
a. An RFSQ can be used to understand what suppliers have the capabilities required. This process is
generally followed by an RFP or a Request for Quotation (RFQ), whereby only the suppliers identified
through the RFSQ process will be invited to respond to the actual competition. This can make the
number of responses and the evaluation process more manageable for the evaluators, while allowing
unqualified suppliers to avoid the effort and expense of preparing a complete competitive response.
b. An RFSQ can be used to pre-qualify suppliers who are interested in supplying goods or services in
the future if, as and when requested. The typical result of this procedure is a Vendor of Record
(VOR) or a preferred suppliers list (see below).
An RFSQ document should:

define the type of goods or services included as part of the process, and set upper limits to the value
of future awards;

indicate the time duration the list is to be valid, the method(s) by which qualified suppliers can be
placed on the list, and at what specific intervals opportunities for qualification will arise and

indicate that suppliers who do not participate in the pre-qualification or do not appear on the list may
be excluded from opportunities.

The RFSQ must contain specific language to disclaim any obligation to actually call on any supplier as a
result of the pre-qualification to supply such goods or services.[5]
An RFSQ must be used to pre-qualify suppliers. Selection of pre-qualified suppliers must be based on
fully disclosed evaluation criteria.
The RFSQ is a two-step process:
a. Evaluate and rank the suppliers, creating a list of pre-qualified suppliers. This will be the result of
issuing a request for pre-qualification document requiring suppliers intending to submit a response to
provide such information as, but not limited to:

experience with similar work (firm and staff assigned);

references provided from other customers for similar work;

verification of applicable licenses and certificates;

health and safety policies and staff training;

financial capability;

an overview of the suppliers service/product offering and

pricing

b. Those suppliers that are short-listed may be invited to participate in the second step of the process,
i.e. responding to an RFP and/or RFQ. As a result of pre-qualification only those pre-qualified

suppliers will be able to participate in any subsequent competitive bidding process, if there is one.
The request for pre-qualification will not necessarily result in a formal competitive bidding process.

VENDORS OF RECORD
Vendors of record are used to reduce costs by establishing strategic relationships with a small group of
suppliers. A VOR can also be called a preferred suppliers list, with the premise being that organizations
should try to focus as much procurement spend as possible through their VOR or preferred suppliers,
where typically the best price is achieved.
Many VOR arrangements have been established by the Ministry of Government Services (MGS). The
MSG website www.doingbusiness.mgs.gov.on.ca allows Ontario Broader Public Sector organizations to
view the list of VOR arrangements and identify opportunities to leverage those arrangements.
Organizations may also establish organization-specific VOR arrangements for the supply of a certain
category of goods, services or construction. A VOR arrangement may be established only through an
open and competitive procurement process and requires appropriate approval authority. Organizationspecific VOR arrangements must be for the exclusive use of that organization and may not be utilized by
any other organization. Multi-organizational VOR arrangements may be established where there is an
identified need for a common category of goods, services or construction among two or more
organizations.
A VOR arrangement requires a second-stage selection process to assist purchasing organizations in
obtaining best value for money. Given that an open competition has already occurred to establish all
VOR arrangements, the second-stage selection process shall be concerned only with the particular
goods, services or construction project to be procured, including the specific needs and issues for a
particular assignment or project, such as contract price, the resources to be assigned, availability and
timelines to complete the assignment or project.
BPS organizations may use source lists, such as VORs or preferred suppliers lists for competitive
procurements, provided that for any source list:

The opportunity to register on the source list has been advertised competitively on an electronic
tendering system;

A supplier that meets the conditions for registration on the source list is able to register at any
time; and

All registered suppliers in a given category are invited to respond to all calls for competitive
procurement in that category.

Once the specific VOR or Preferred Supplier list has been established through an open competitive
RFSQ which clearly outlines the terms and conditions of the VOR arrangement, the following process
must be followed to contract with one particular VOR:

If the estimated procurement value is below $25,000 the Hospital may use the VOR arrangement to
select any one VOR vendor or, where applicable based on the good or service to be acquired, ask
more than one vendor to bid on the specific project/assignment.

For contracts between $25,000 and $249,999, where applicable, at least three vendors must be
asked to bid.

For contracts between $250,000 and $749,999, where applicable, at least five vendors must be
asked to bid.

For contracts over $750,000 a new competitive process must be initiated, unless another limit has
been approved in connection with a particular VOR arrangement.

COMPETITIVE BID PROCEDURES

THRESHOLDS
Competitive bid thresholds are governed by the Agreement on Internal Trade (AIT) and are documented
in the Hospital Purchasing Policy. Every effort should be made to aggregate volume in order to meet the
highest possible threshold. Conversely, it is not permitted to split a purchase into smaller units to avoid
following these practices.
All thresholds are before tax, and are on a per transaction basis.

PURCHASES < $25,000:

At or before the time of purchase, a quote must be obtained and documented, and be made part of the
PO Record. Upon supplier selection, if any, a written agreement or purchase order must be issued.
In the event of a purchasing card transaction, the statement and receipt will be considered to be the
documented quote.

PURCHASES FROM $25,001 TO $99,999:

Three written quotations are required, if available (see note below). All suppliers must receive an
identical invitation and follow the process detailed therein for competitive procurements. Suppliers will be
invited to submit written quotations or proposals. Upon supplier selection, if any, a written agreement or
purchase order is issued. The process must be fully documented, including the original invitation,
specifications and evaluation criteria.
Every effort must be made to obtain three written quotes. In certain circumstances (see below) this may
not be possible, and written documentation of the reason must be included in the file.

There are fewer than three suppliers capable of supplying the products or services

Three suppliers are solicited, but fewer than three elect to respond

It is a single or sole source request

PURCHASES EQUAL TO OR GREATER THAN $100,000:

The Hospital will follow an open and competitive bid process for all goods, services and construction. [3]

COMPETITIVE DOCUMENTS
Two main types of competitive documents are described below:
a. Request for Proposal (RFP): The purpose of this document is to request suppliers to supply solutions
for the delivery of complex goods, services or construction or to provide alternative options or
solutions. It is a process that uses predefined evaluation criteria in which price is not the only factor.
b. Request for Quotation (RFQ): The purpose of this document is to request suppliers bids to supply
goods or services based on stated delivery requirements, performance specifications, terms and
conditions. An RFQ usually focuses the evaluation criteria predominantly on price and delivery
requirements.
The documents must include:
a. Full disclosure of the evaluation criteria, process and methodology to be used in assessing
submissions. The competitive documents should clearly identify the requirements of the procurement;
the criteria that will be used in the evaluation of bids; and the methods of weighting and evaluating the
criteria. The competitive documents must also identify those criteria that are considered mandatory
and any technical standards that need to be met;
b. The name, telephone number, mailing address and email address of the bid administrator for
additional information on the procurement documents and a statement that suppliers who go outside
of this contact person may be disqualified;
c.

Conditions that must be met before obtaining procurement documents such as conflict of interest
declarations, confidentiality agreements and non disclosure agreements, if appropriate;

d. The address, date and time limit for submitting bids. Bids received after the closing date and time
must be returned unopened;
e. The process, date and time limit for the submission of questions on the procurement documents;
f.

The time and place of the opening of the bids in the event of a public opening;

g. The submission rules and competitive clauses to be followed, which may include bid format,
language, inclusion of an executive summary, number of copies required, attendance at a bidders
conference and any additional rules to be followed in order to be considered a compliant bid;
h. A draft copy of the contract to be signed in the event of an award of the procurement;
i.

A request for a list of any subcontractors to be used to complete the procurement;

j.

The period of irrevocability of bids where bids cannot be withdrawn (typically 120 days from the
closure of the competitive process);

k.

For goods, services and construction valued at $100,000 or more, a statement that the procurement
is subject to Ontario's trade agreements; and

Notice that any confidential information supplied to the organization may be disclosed by the organization
where it is obliged to do so under the Freedom of Information and Protection of Privacy Act (FIPPA), by
an order of a court or tribunal or otherwise required at law.

SPECIFICATION REQUIREMENTS
A description of the required goods or services in generic and/or functional terms specific to the business
needs that the good or service will serve must be included in all sourcing documents. When the use of
non-generic and/or non-functional terms is appropriate, the specifications must deal with performance

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requirements and exclude all features that could unfairly present an advantage to certain suppliers. The
following requirements should be adhered to in the preparation of the specifications:
a. Specifications should be detailed and not brand-specific. Suppliers should be able to provide
alternatives if an equal or better-proven product or method is available
b. Sole or single source purchase: approval of specifications which result in a sole or single source
purchase will be at the discretion of the appropriate functional Vice President
c.

Suppliers who consult in the development of specifications: a supplier who is paid to provide
assistance in the development of specifications is prohibited from submitting a proposal for which
those specifications apply

d. Ownership of Specifications: notwithstanding any assistance in the preparation of the

specifications by a consultant, it is intended (subject to the contractual arrangements made) that the
specifications will be and remain the property of the Hospital.

BID ADMINISTRATOR
a. Ensure compliance to the Hospital Purchasing Policy and Procedures;
b. Obtain quotations for acquisitions in accordance with the thresholds established in the Hospital policy;
c.

Determine, in consultation with end users, the make-up of the evaluation team and the sourcing
strategy including method, schedule of events and evaluation criteria;

d. Ensure members of the evaluation team sign a confidentiality and non-disclosure agreement and
declare any conflicts of interest;
e. Prepare, post and distribute Sourcing Documents, using the appropriate publication media or
advertising opportunity (e.g. MERX, trade papers etc.);
f.

Determine, in consultation with the end users, the need for and timing of site meetings/bidders
conferences;

g. Facilitate the development of work descriptions and specifications that clearly describe the work to be
carried out, the objectives to be obtained and the time-frame, and that are structured to encourage
and accommodate the use of the competitive process;
h. Ensure that an equal opportunity to compete exists for all firms and individuals, providing that they
meet the criteria established for the particular procurement event;
i.

Ensure that an employer-employee relationship will not result when contracting for the services of
individuals;

j.

Manage all communications with Suppliers during the sourcing event, up to and including contract
execution/purchase order (PO) award.

k.

Open bids, determine responsiveness and acceptability of each bid.

l.

Complete analysis and scoring of financial requirements

Co-ordinate evaluation process, ensuring due process is followed by evaluation team members;
arrange evaluation team meetings and take minutes; consolidate and record scores; communicate
results to evaluation team and to all suppliers;

m. Conduct de-briefings as requested by suppliers;

n. Store and secure procurement documents, and security deposits, if applicable;
o. Ensure that fees paid do not exceed the appropriate market rate for the service provided;
p. Prepare and distribute for approval the Executive Summary and contract documents;

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q. Ensure the execution of all POs and contracts in accordance with the Hospitals signing policies; and
r.

Administer the service delivery under the contract and deal with the Supplier after the PO or contract
is executed.

PURCHASE REQUISITIONS
Purchase requisitions may be either manual or electronic, provided that they are approved and are in
compliance with these procedures and the Signing Authority Policy.
A Purchase Requisition is required to initiate an RFQ or an RFP and must be based on a budget
estimate. It must, at a minimum, contain the following:
a. Accounting codes;
b. Shipping address;
c.

Quantity required and unit of measure (i.e. case or each);

d. A complete description of the goods and/or services required including complete technical
specifications (as appropriate to the complexity of the sourcing event);
e. Delivery date required;
f.

In the case of single/sole source transactions, the Purchase Requisition must be supported with a
completed, signed and approved Single/Sole Source form.

g. Budgeted amount.

ADVERTISING AND POSTING COMPETITIVE DOCUMENTS TO MARKET

The advertising and posting practices during a competitive process must use accepted media to
uphold the principles of fair, open and transparent dealings; to encourage maximum competitive
response; and to ensure that suppliers have a positive experience in dealing with the organization. In
accordance with the AIT, calls for competitive procurements shall be made through an electronic
tendering system that is equally accessible to all Canadian suppliers, and the Hospital will use MERX or
Biddingo to post the RFP or RFQ requirements. [6] These will be posted by the Hospital Sourcing Team.

COMMUNICATIONS DURING COMPETITION

The competition process begins when the competitive procurement documents are issued and ends on
the closing date. This is commonly referred to as the blackout period. During the blackout period in all
competitive situations, all communication with suppliers involved in the process must occur formally
through the Bid Administrator identified in the competitive documents. During this period, the competitive
sourcing documents may be clarified or modified through the use of one of two types of responses:
a. An addendum response; or
b. A question and answer (Q&A) response.
Addenda and Q&As are posted in the same manner as the competitive documents were advertised to the
market and therefore will be made available to all potential suppliers.
Addendum response: An addendum is prepared if modifications to the competitive sourcing documents
are necessary (e.g., amending, adding or deleting information due to errors, conflicts or deficiencies in the
documents). An addendum may modify the documents by:
a. Inserting new, revised or repaginated pages;
b. Inserting new or revised drawings;

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c.

Deleting pages or drawings; and/or

d. Inserting pages that were inadvertently omitted from the posted competitive procurement documents.
All addenda must be issued at least seven days prior to the closing date. If an addendum is issued within
seven days of the closing date, the date may be extended accordingly.
Question and answer responses: A Q&A response is prepared if clarification of the RFP/RFQ
documents is required without the need to modify the posted competitive procurement documents. Any
answer that results in a change to any aspect of the competitive procurement documents must be
addressed by making corresponding modifications to the documents by an addendum. Generally,
questions are requested to be submitted no less than seven days prior to the closing date, although
questions may be considered after that and, if warranted, consideration may be given to extending the
closing date, taking into account the project schedule. The objective is to ensure that all suppliers receive
as much relevant information as possible to respond to the bid.

TIMELINES FOR POSTING COMPETITIVE PROCUREMENTS

All publicly advertised bids must provide suppliers a minimum response time of 15 calendar days for
procurements valued at $100,000 or more. [7] For products or services that are more complex,
consideration must be given to providing response times longer than 15 days to ensure that suppliers
have a reasonable period of time to submit a bid. The timeline should also take into account the
complexity of the procurement and the time needed by the organization to properly disseminate the
information.

BIDDERS CONFERENCE
Bidders conferences are optional, and may be held if the Bid Administrator believes there is information
that potential suppliers will better understand if the information is presented to them in person (e.g.,
asking contractors to outfit a building with electricity is easier to respond to after being given a site tour).
Bidders conferences are identified in the RFP/RFQ bid documents and usually held shortly after the
posting of the competitive documents to give suppliers ample time to craft responses based on the
information given at the bidders conference. At the bidders conference, only the procurement in question
can be discussed and any questions and answers that were discussed need to be documented and
provided to all suppliers, whether or not they were in attendance. A bidders conference should cover all
the essential information from the competitive documents, including the following:
a. Scope and requirements of the procurement;
b. Submission guidelines (rules of the competitive process);
c.

Timelines for the competitive process, including deadlines for questions and submissions;

d. Evaluation criteria, process and methodology; and

e. Contact information for the Bid Administrator.
It should also be determined prior to posting the competitive documents whether the bidders conference
is mandatory, meaning that if potential suppliers do not attend, their bids will be returned unopened.

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EVALUATION
BID RECIEPT
Competitive sourcing documents must clearly state the date, time and location for submission. The
closing date is set on a normal working day (Monday to Friday, excluding provincial and national
holidays), and submissions that are delivered after the closing time must not be considered. [8]
For bids where paper copies are required, it is important to identify bid opening information in the
competitive documents. The process for opening paper bids is as follows:
a. Stamp each bid as it arrives with the date, time, location, company name and contact information;
b. Do not open any bids until after the competitive process has closed;
c.

Ensure there is at least one witness to view the bid openings; and

d. Open the bids following the same process that was documented in the posted competitive
documents.

EVALUATION CRITERIA
Every competitive process must establish evaluation criteria. The evaluation criteria will be used by the
bid evaluation team, to decide which bid should be selected from the competitive process. In evaluating
bids, the evaluation team may take into account not only the submitted price but also quality, quantity,
transition costs, delivery, servicing, environmental considerations, the capacity of the supplier to meet
requirements of procurement, experience, financial capacity of the supplier, and any other criteria directly
related to the procurement. The Bid Administrator and the evaluation team must ensure that the
price/cost criteria have the maximum justifiable weighting.
For IT procurements, organizations must assess compatibility and integration with existing
computing infrastructure, as well as conversion costs, if appropriate. In establishing the
evaluation criteria and weighting of conversion costs, the bid evaluation team must not unduly
favour an incumbent supplier or unduly disadvantage non-incumbent suppliers.
Evaluation criteria and weightings must be developed, reviewed and approved before the competitive
process begins. These criteria must be included in the competitive documents. The competitive
documents must also identify those criteria that are considered mandatory and any technical standards
that need to be met. The evaluation criteria cannot be changed or altered once the competitive process
has begun. [9]
Typically, an evaluation process comprises three components: mandatory requirements, rated
requirements and price/cost. The Bid Administrator must not request information from suppliers
that will not be evaluated or that might affect the evaluation process. It is recommended that the
bid evaluation team ensures the criteria and weighting will deliver the result that best meets the
requirements.

EVALUATION PROCESS
The first step in the evaluation process is to determine if submissions are compliant. Submissions may be
considered to be materially compliant, but certain clarifications may be sought. Materially non-compliant
submissions should be rejected. Once the compliant submissions have been identified, the Bid
Administrator should proceed with the balance of the evaluation process.

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The Bid Administrator must fully disclose the evaluation methodology and process to be used in
assessing a suppliers submission. [10] A full disclosure of the evaluation methodology and process must
include the following:
a. A clear articulation of all mandatory requirements. The document must indicate if the mandatory
requirements will be assessed on a pass/fail basis and indicate how suppliers achieve a passing
grade. Where a supplier is disqualified for non-compliance with a mandatory requirement, no further
evaluation should take place;
b. All weights, including sub-weights, for rated requirements. Where a supplier fails to meet a stated
minimum score for rated requirements no further evaluation should take place;
c.

Description of any short-listing processes, including any minimum rated score requirements;

d. The role and weighting, if applicable, of reference checks, oral interviews and demonstrations; and
e. Descriptions of the price/cost evaluation methodology, including the use of examples in the evaluation
process, to determine costs for specific volumes and/or service levels. The evaluation of price/cost
must be undertaken only after completion of the evaluation of the mandatory requirements and any
other rated criteria for all bids.

EVALUATION TEAM
Every competitive process requires an evaluation team that will be responsible for reviewing all the
compliant bids and scoring each of those bids. The following should be considered:
a. Evaluation team members should be selected and their participation confirmed before the competitive
documents have been posted and the evaluation team members should be included in the
development of the evaluation criteria and weighting. Team members may include end users,
educators, supply chain experts, subject matter experts, financial experts and representatives of the
sourcing or purchasing function, as appropriate. Evaluation teams should be comprised of
appropriate members to ensure that a proper evaluation is conducted.
b. An evaluation team lead should be selected by the evaluation team members to be responsible for
coordinating the evaluation process
c.

It is recommended that the Bid Administrator at minimum participate in the oversight of the process,
but preferred if he/she is the team lead.

d. The Hospital will follow the evaluation process guide

The Evaluation team members must be aware of the restrictions related to confidential information shared
through the competitive process and refrain from engaging in activities that may create or appear to
create a conflict of interest. The Bid Administrator must require team members to sign a conflict-ofinterest declaration and non-disclosure agreement. [11]

SELECTION PROCESS
The Bid Administrator must ensure that each member of the evaluation team has completed an
evaluation matrix rating each of the suppliers. In some circumstances, a smaller team may be created to
rate clinical or technical attributes. Records of evaluation scores must be auditable. Evaluators should be
aware that everything they say or document must be fair, factual, fully defensible and may be subject to
public scrutiny. [12]

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The evaluation team must select only the highest ranked submission(s) that have met all mandatory
requirements set out in the related procurement document. Unless expressly requested in the purchasing
documents, organizations must not consider alternative strategies or solutions proposed by a supplier.
[13] The method to resolve a tie score must be identified in the evaluation criteria of the bid documents,
including weighting, if applicable. [14] Please speak with your manager to determine the appropriate tiebreak methodology. Tie-break criteria are also subject to the rules of nondiscrimination.
Additional considerations during the selection process include:
a. The Bid Administrator is entitled to ask suppliers for clarification on their bid as long as it does not
change their bid in any way.
b. A revised solicitation can be issued when bids are received in response to a solicitation but exceed
the hospitals budget, are not responsive to the requirement or do not represent fair market value, in
an effort to obtain an acceptable bid.
c.

If no bids are acceptable and it is not reasonable to go through any other method, organizations may
choose to negotiate directly with the supplier that most closely meets the requirements.

d. Any supplier whose submission is rejected during the evaluation process will be notified of the
rejection in writing as soon as possible after completion of the evaluation. With the exception of any
pricing that was made publicly available at the time of a public opening, all submission evaluation
details must be kept confidential.

NON-DISCRIMINATION
In compliance with the Agreement on Internal Trade (AIT), The Hospital must refrain from any
discrimination or preferred treatment in awarding a contract to the qualified supplier from the competitive
process, unless justifiable based on the circumstances described below. [15] Decisions based on
discrimination may be subject to bid protests or disputes from those suppliers who believe the process
may have been unfair or biased.
a. The Hospital will not:

discriminate between the suppliers and/or the good or services they provide of a particular
province or region, including those goods and services included in construction contracts or

impose or consider, in the evaluation of bids or the award of contracts, local content or other
economic benefits criteria that are designed to favour a particular province or region, including
those goods and services included in construction contracts.

b. Except as otherwise provided, measures that are inconsistent with section (a) include the following:

The imposition of conditions that are based on the location of a supplier's place of business in
Canada, the place in Canada where the goods are produced or the services are provided, or
other like criteria;

The biasing of technical specifications in favour of, or against, particular goods or services,
including those goods or services included in construction contracts, or in favour of, or against,
the suppliers of such goods or services for the purpose of avoiding the requirements of the bid
process;

The timing of events in the competitive process so as to prevent suppliers from submitting bids;

The specification of quantities and delivery schedules of a scale and frequency that may
reasonably be judged as deliberately designed to prevent suppliers from meeting the
requirements of the procurement;

16

c.

The division of required quantities or the diversion of budgetary funds to subsidiary agencies in a
manner designed to avoid these obligations; and

The use of price discounts to favour particular suppliers.

Except as otherwise required to comply with international obligations, the Hospital may accord a
preference for Canadian value added, subject to the following conditions:

The preference for Canadian value added must be no greater than 10 per cent;

The Hospital will specify in the call for competition the level of preference to be used in the
evaluation of the bid; and

All qualified suppliers must be informed through the call for competition of the existence of the
preference and the rules applicable to determine the Canadian value added.

d. Except as otherwise required to comply with international obligations, the Hospital may limit its
competition to Canadian goods, Canadian services or Canadian suppliers, subject to the following
conditions:

The procuring organization must be satisfied that there is sufficient competition among Canadian
suppliers;

All qualified suppliers must be informed through the call for competition of the existence of the
preference and the rules applicable to determine Canadian content; and

The requirement for Canadian content must be no greater than necessary to qualify the procured
good or service as a Canadian good or service.

CONTRACT AWARD
EXECUTING THE CONTRACT
Following the procurement process, a signed written contract or purchase order must be established.
The agreement between the Hospital and the successful supplier must be defined formally in a signed
written contract before the provision of the goods, services or construction commences. When executing
the contract, The Hospital must obtain the supplier signatures before obtaining the appropriate Hospital
signature. In situations where an immediate need exists for goods or services and the Hospital and the
supplier are unable to finalize a contract, a letter of intent, memorandum of understanding (MOU) or
interim purchase order may be used. This will allow for the immediate needs to be met, while final
negotiations take place towards finalizing the contract.[16]
The contract must be finalized using the form of agreement/contract that was released with the
procurement document. [17]
All contracts must include appropriate cancellation or termination clauses.[18] In the case of IT projects in
particular, the contract must contain clauses that permit cancellation or termination at critical project lifecycle stages.
The term of the agreement and any options to extend the agreement must be set out in the procurement
document. Changes to the term of the agreement may change the procurement value. Prior written
approval by the appropriate authority is necessary before changing contract start and end dates.
Extensions to the term of agreement beyond what is set out in the procurement document are considered
non-competitive procurements and therefore The Hospital must seek appropriate single-source approval
authority prior to proceeding. [19]

17

Contracts: criteria to consider in determining when a contract is required

a. Value
One time or recurring purchase > $100,000
b. Period of time
Recurring purchase will be made over 6 months or longer
c. External risk
Assess probability and potential level of exposure
d. Credibility of the other party
Reputation
Reliability
Financial health
Purchase Order Exceptions
a. Audit
b. Consultants
c. Couriers
d. Legal
e. Nursing Agencies
f. Office supplies (applies to online purchases from approved supplier)
g. Rental agreements
h. Utilities

CONTRACT SIGNING AUTHORITIES

Execution of contracts must be in accordance with the Signing Authority.

PREPARATION AND SIGNING OF CONTRACTS

All contracts, with the exception of single source contracts, will use the form of agreement as issued with
the competitive bid document.
The following must be completed prior to routing contracts for execution:

Obtain agreement to all terms from the supplier and the Hospital;

Obtain legal input as needed with regard to any changes in contract language;

Complete an Executive Summary using the prescribed format, setting out the key details of the
contract and any concerns about the contract including any discussion with Legal on the contract;

If the contract is a sole source or single source, a completed and signed Sole or Single Source
Certification should be attached to the Executive Summary;

Ensure, prior to the release of the contract to the supplier, that contracts are reviewed, approved and
any outstanding issues resolved by the appropriate the Hospital.

PROCESS
The contract will be executed as follows
1. It will then be executed by the appropriate authority at The Hospital;
2. The hospital will keep its copy for the duration of the retention period according to the hospital policy;
3. In all events, the original Requestor will receive an electronic or paper copy of the contract for
contract administration purposes.

18

SIGNING REQUIREMENTS
The Hospital will not execute a contract until all required documentation, identified in the bid document,
has been received in satisfactory form and reviewed by the Bid Administrator. Copies of required
mandatory documentation will be part of the supporting documentation attached to the Executive
Summary package when it is forwarded for contract execution. The successful bidder will submit all
documentation requested in the bid document to the Bid Administrator within the time period specified in
the bid document, and following notification of award of the contract, or as otherwise provided for in the
Agreement. Such documentation may include, but is not limited to:

Executed bonding documents

Executed agreement

Medical Device Licenses

Site Establishment Licenses

Insurance and WSIB documentation

Material Safety Data Sheets

Any other documentation required to facilitate the execution of or required pursuant to the contract.

AWARD NOTIFICATION
Once the qualified supplier has been selected and the contract has been awarded and signed, the Bid
Administrator must notify all suppliers that a contract has been signed and the competitive process is
complete.
For purchases valued at $100,000 or greater, the Bid Administrator must post, in the same manner as the
procurement documents were posted, the name(s) of the successful supplier(s). Contract award
notification must occur only after the agreement between the successful supplier and the Hospital has
been executed. The contract award notification must include the agreement start and end dates, including
any options for extension. [20]

19

SUPPLIER DEBRIEFING
For purchases valued at $100,000 or greater, the Bid Administrator must inform all suppliers who
participated in the procurement process of their entitlement to a debriefing. [21] The details of the supplier
debrief should be included in the competitive documents, including the process for booking debrief
sessions at the conclusion of the procurement process. The Hospital must allow suppliers 60 calendar
days following the date of the contract award notification to respond. In scheduling supplier debriefings,
the Bid Administrator must:
a. Conduct an internal preparation meeting with the appropriate internal stakeholders
b. Confirm the date and time of the debriefing session to the supplier in writing;
c.

Conduct separate debriefings with each supplier;

d. Ensure that the same participant(s) from the Hospital participate in every debriefing conducted.
e. Retain all correspondence and documentation relevant to the debriefing session as part of the
procurement documentation.
In conducting supplier debriefing meetings, the Bid Administrator must:
a. Provide a general overview of the evaluation process set out in the procurement document;
b. Discuss the strengths and weaknesses of the suppliers submission in relation to the specific
evaluation criteria and the suppliers evaluated score. If more than price is evaluated, the organization
may provide the suppliers evaluation scores and their evaluation ranking (e.g., third of five);
c.

Provide suggestions on how the supplier may improve future submissions;

d. Be open to feedback from the supplier on current procurement processes and practices; and
e. Address specific questions and issues raised by the supplier in relation to their submission.
In conducting supplier debriefings, the debriefing team must not disclose information concerning other
suppliers, other than as specified above, as it may contain confidential third party organization proprietary
information subject to the mandatory third party exemption under the FIPPA. If a supplier makes such a
request, they must be advised that a formal Freedom of Information (FOI) request can be submitted.
Questions unrelated to the procurement process must not be responded to during the debriefing and
must be noted as out of scope based on the debriefing process agreed to in the procurement documents.

20

EXEMPTIONS FROM THE COMPETITIVE PROCESS

This section covers non-competitive purchasing when the Hospital goes directly to one supplier to meet
the requirements of the procurement. There are two main types of direct awards:
a. Single Sourcing is the use of a non-competitive procurement process to acquire goods, services or
construction from a specific supplier even though there may be more than one supplier capable of
delivering the same goods, services or construction.
b. Sole Sourcing means the use of a non-competitive procurement process to acquire goods or
services where there is only one available supplier for the source of the goods or service.

SINGLE SOURCING
Allowable exceptions for competitive procurements include:
a. Where an unforeseen situation of urgency exists and the goods, services or construction cannot be
obtained by means of open procurement procedures. Where a non-competitive procurement is
required due to an urgent situation, the Hospital may conduct the procurement prior to obtaining the
appropriate approvals provided that the urgency has been justified in writing;
b. Where goods or consulting services regarding matters of confidential or privileged nature are to be
purchased and the disclosure of those matters through an open competitive process could
reasonably be expected to compromise confidentiality, cause economic disruption or otherwise be
contrary to the public interest;
c.

Where a contract is awarded under a cooperation agreement that is financed, in whole or in part, by
an international organization only to the extent that the agreement includes different rules for
awarding contracts;

d. Where construction materials are to be purchased and it can be demonstrated that transportation
costs or technical considerations impose geographic limits on the available supply base, specifically
in the case of sand, stone, gravel, asphalt compound and pre-mixed concrete for use in the
construction or repair of roads;
e. Where an open competitive process could interfere with the Hospitals ability to maintain security or
order or to protect human, animal or plant life or health;
f.

Where there is an absence of any bids in response to an open competitive process that has been
conducted in compliance with this document; and

g. Where only one supplier is able to meet the requirements of procurement in the circumstances (sole
sourcing).

21

SOLE SOURCING
In accordance with the Agreement on Internal Trade (AIT), in the situation where only one supplier is able
to meet the requirements of procurement, an organization may use the sole source justification
procurement procedures in the following circumstances:
a. To ensure compatibility with existing products, to recognize exclusive rights, such as exclusive
licenses, copyright and patent rights, or to maintain specialized products that must be maintained by
the manufacturer or its representative;
b. Where there is an absence of competition for technical reasons and the goods or services can only
be supplied by a particular supplier and no alternative or substitute exists;
c.

For the procurement of goods or services, the supply of which is controlled by a supplier that is a
statutory monopoly;

d. For work to be performed on or about a leased building or portions thereof that may be performed
only by the leaser;
e. For work to be performed on property by a contractor according to provisions of a warranty or
guarantee held in respect of the property or the original work;
f.

For a contract to be awarded to the winner of a design contest;

g. For the procurement of a prototype or a first good or service to be developed in the course of and for
a particular contract for research, experiment, study or original development, but not for any
subsequent purchases;
h. For the purchase of goods under exceptionally advantageous circumstances such as bankruptcy or
receivership, but not for routine purchases;
i.

For the procurement of original works of art;

j.

For the procurement of subscriptions to newspapers, magazines or other periodicals; and

k.

For the procurement of real property.

REQUIREMENTS FOR SOLE OR SINGLE SOURCING

A Sole or Single Source Certification Form must be completed and signed by the Hospital
functional Vice President. [22] The Hospital Director of Sourcing will review and ensure the request
meets the requirements of the AIT.

A member of the Hospital purchasing or sourcing team will obtain a quotation from the supplier.

A purchase requisition must be completed and approved by the Hospital in accordance with the
Hospital signing authority policy to initiate the purchase order.

A copy of the completed Sole or Single Source Certification Form must be retained in the contract file
and/or PO Record.

22

BID PROTEST PROCESS

Awaiting direction from the Ministry of Finance
BPS organizations must communicate the bid protest procedures for suppliers in all competitive and
procurement documents to ensure that any dispute is handled in a reasonable and timely fashion. BPS
organizations must ensure that their process is compliant with the bid protest procedures as set out in the
AIT and the Ontario-Quebec Procurement Agreement. [25]

RECORDS MANAGEMENT
RECORDS RETENTION POLICY
All original purchasing and contract documentation for the contracting of goods, services or construction,
as well as any other pertinent information for reporting and auditing purposes, must be maintained for a
period of ten years and be in recoverable form [23]

PROCUREMENT FILES AND FORMAL CONTRACTS

GENERAL
For the purpose of reporting and auditing, Procurement documents as well as any other pertinent
information must be retained in the Procurement file as follows:
a. A copy of the procurement justification or the business case;
b. Information regarding all supplier consultations, if any, including any requests for information,
undertaken in the development of the procurement business case and/or procurement documents;
c.

Evidence that all required approvals were obtained, such as:

Signed requisition;

Signed Sole/Single Source Justification, if applicable;

Signed Capital Approval, if applicable;

d. With regard to pre-qualifications, all documents used to pre-qualify suppliers, including any evaluation
documentation;
e. Information relating to compliance with the Ontarians with Disabilities Act, 2001;
All purchasing documentation as set out in this section is to be retained in both physical hard format as
well as stored in soft format, following the same file format as the physical hard file, on the designated
shared file at the Hospital.

23

CONTRACT FILE RESULTING FROM RFPS AND RFQS

Competitive Procurement files must, as a minimum, contain the following (in addition to the any of the
previous items that are applicable):
a. The final copy of the RFx document as issued to the bidding community, including evidence of
posting, advertisement or issuance by invitation;
b. Originals of all issued Addenda for the RFx process, including confirmation of issuance in the case of
invitational competitions vs. publicly posted via MERX;
c.

An evaluation folder in the file with a copy of the evaluation template, all individual evaluation scores,
the combined evaluation score, any evaluation documentation and/or notes, particularly as they relate
to consensus;

d. Copies of all bid responses, including electronic formats as applicable;

e. Originals of all signed Conflict of Interest Declaration forms from evaluation team members;
f.

Copy of the Tax Compliance Declaration, and the Revenue office Tax Compliance Verification;

g. Copies of award letters/letters of intent/posted announcements;

h. Working copy of the executed agreement (original to be retained in central contract repository), final
redline version of changes to terms and conditions.
i.

Copies of any documentation relating to issues that arose during the competitive process (i.e. late bid
receipt, failure to attend a mandatory information session).

j.

Copies of all debriefing offerings, presentations, meeting notes, supplier details etc.;

k.

All pertinent documentation pertaining to supplier performance and management of the supplier,
including mechanisms implemented for supplier management;

l.

Risk assessment analysis and recommendations as applicable;

m. Security screening requirements, as applicable;

n. All documentation pertaining to supplier disputes, negotiations, notice letters, settlements etc.;
o. Evidence of receipt of deliverables;
p. Mandatory documents may include but are not limited to:

Insurance documentation;

Renewal letters;

Medical Device Licenses;

WSIB certificates etc.

q. General correspondence, emails etc. filed in chronological order;

r.

Purchase Order, as applicable; and

s.

Any other pertinent documentation required by the Hospital.

24

SAMPLE CONTRACT FILE RESULTING FROM SIMPLE AND VERBAL

QUOTES (<$25,000)
The following documents are required to be retained in the PO file:
a. Approved Requisition;
b. A written agreement or purchase order; and
c.

Notation for any verbal quotations or other pertinent documentation.

SAMPLE CONTRACT FILE RESULTING FROM WRITTEN QUOTATIONS

($25,001 - $99,999)
a. Approved Requisition;
b. A written agreement or purchase order;
c.

Evidence of at least three written quotations

Every effort must be made to obtain three written quotes. In certain circumstances this may not be
possible, and written documentation of the reason must be included in the file, i.e.

There are fewer than three suppliers capable of supplying the products or services

Three suppliers are solicited, but fewer than three elect to respond

d. Single/sole source justification where quotes have not been obtained, unless otherwise not required
by Hospital policy.
e. Any other pertinent documentation.
All Purchase Order files will be filed and retained on hand as follows:
f.

In a central file managed by the Sourcing Team,

g. Within each supplier file, Purchase Orders will be in chronological order with the most recent
Purchase Order at the front of the file.
h. Purchase Order files for the current fiscal year, plus the prior fiscal year will be retained on site; with
the exception to any Purchase Orders that contain renewal term, in which case, such Purchase
Orders will be retained on hand until the file is pulled for action on the renewal term.
All other Purchase Orders will be archived annually and retained in accordance with the policy retention
period.

25

PROCESSES
TABLE OF CONTENTS
1. Purchase Need Identified Purchase Process Starting Decisions
2. In-Hospital Purchases Process Overview
3. In-Hospital Purchases Process Overview Notes
4. In-Hospital Competitive RFP Purchase Process (>$100,000)
5. In-Hospital Single/Sole Source Purchase Process
6. In-Hospital Single/Sole Source Purchase Process Notes
7. In-Hospital Evaluation Process
8. Pharmacy Purchases Process Overview
9. Pharmacy Competitive RFP Purchase Process
10. Pharmacy Single/Sole Source Purchase Process (Drugs Only
(Process maps to be inserted here)

26

APPENDICES

APPENDIX A
GLOSSARY OF TERMS (SUPPLY CHAIN GUIDELINE)
Accountability

The obligation of an employee, agent or other person to answer for or be

accountable for, work, action or failure to act following delegated authority.

Agreement

A formal written document entered into at the end of the procurement

process.

Agreement on Internal
Trade (AIT)

A national agreement that regulates trade between the provinces to

ensure equal access to public sector procurement for all Canadian suppliers.
The Agreement aims to reduce barriers to the movement of persons, goods,
services and investments within Canada.
The agreement can be located at:
http://www.ic.gc.ca/eic/site/ait-aci.nsf/eng/home

Approval Authority

The authority delegated by the BPS organization to a person designated to

occupy a position to approve on its behalf one or more procurement
functions within the plan-to-pay cycle up to specified dollar limits subject to
the applicable legislation, regulations and procedures in effect at such time.

Approval Level

Criteria, often dollar levels, that define which approvals are needed for
various business transactions. Limits are set on the size and nature of the
business transactions and are assigned to the individual or job role
1
authorized to execute based on the appropriate level of responsibility.

Award

The notification to a proponent of acceptance of a proposal, quotation or

tender that brings a contract into existence.

Bid

A proposal, quotation or tender submitted in response to a solicitation from a

contracting authority. A bid covers the response to any of the three principal
methods of soliciting bids, i.e., Request for Tender, Request for Proposal
and Request for Quotation.

Bid Protest

A dispute raised against the methods employed or decisions made by a

contracting authority in the administration of a process, leading to the award
of a contract.

Bidders Conference

A meeting chaired by the soliciting BPS organization to discuss with potential

proponents, technical, operational and performance specifications, and/or
the full extent of financial, security and other contractual obligations related
to a bid solicitation.

Heydarian, D. (2008). SAP Business One...To Go - 11. Document Creation, Authorizations, and Approvals.
Retrieved March 23, 2009, from SAP Community Network,
Website:https://www.sdn.sap.com/irj/scn/wiki?path=/display/B1/SAP+Business+One...To+Go++11.+Document+Creation,+Authorizations,+and+Approvals

Competitive Procurement

A set of procedures for developing a procurement contract through a bidding

2
or proposal process. The intent is to solicit fair, impartial, competitive bids.

Conflict of Interest

A situation in which financial or other personal considerations have the

potential to compromise or bias professional judgment and objectivity.
An apparent conflict of interest is one in which a reasonable person would
think that the professionals judgment is likely to be compromised.
It is important to note that a conflict of interest exists whether or not
decisions are affected by a personal interest; a conflict of interest implies
only the potential for bias, not a likelihood.
For example: A situation in which someone who must make a decision in
an official or professional capacity may stand to profit personally from
3
the decision.

Construction

Construction, reconstruction, demolition, repair or renovation of a building,

structure or other civil engineering or architectural work and includes site
preparation, excavation, drilling, seismic investigation, the supply of products
and materials, the supply of equipment and machinery if they are included in
and incidental to the construction, and the installation and repair of fixtures of
a building, structure or other civil engineering or architectural work, but does
not include professional consulting services related to the construction
contract unless they are included in the procurement.

Contract

An obligation, such as an accepted offer, between competent parties upon a

legal consideration, to do or abstain from doing some act. It is essential to
the creation of a contract that the parties intend that their agreement shall
have legal consequences and be legally enforceable. The essential elements
of a contract are an offer and an acceptance of that offer; the capacity of the
parties to contract; consideration to support the contract; a mutual identity of
consent or consensus ad idem; legality of purpose; and sufficient certainty of
terms.

Direct Award

The award of a procurement contract without organizing a competitive

process. A direct award is only appropriate under certain special
4
circumstances as set out in Section 5.3.9.1.

Electronic Tendering

A computer-based system that provides suppliers with access to information

related to open competitive procurements.

3
4

Davis, W.S & Yen, D.C (1998). The Information System Consultant's Handbook: Systems Analysis and Design
(Chapter 41). CRC Press. Retrieved March 23, 2009, from Halon Institute of Technology, Website:
http://www.hit.ac.il/staff/leonidM/information-systems/ch41.html
Fischbach, R. & Plaza, J. (2009). RCR Conflicts of Interest. Retrieved March 23, 2009, from Columbia University,
Website: http://www.columbia.edu/ccnmtl/projects/rcr/rcr_conflicts/q_a/index.html
European Commission (2008). Glossary of terms. Retrieved on March 23, 2009, from Practical Guide and General annexes,
Website: http://ec.europa.eu/europeaid/work/procedures/implementation/practical_guide/documents
/a1_glossary_en.doc.

Evaluation Criteria

A benchmark, standard or yardstick against which accomplishment,

conformance, performance and suitability of an individual, alternative,
activity, product or plan is measured to select the best supplier through a
5
competitive process. Criteria may be qualitative or quantitative in nature.

Evaluation Matrix

A tool allowing the evaluation team to rate supplier proposals based on

multiple pre-defined evaluation criteria.

Evaluation Team

Individuals designated/responsible to make award recommendation.

The evaluation team would typically include representatives from the
purchasing organization and subject matter expert(s). Each member
6
participates to provide business, legal, technical and financial input.

Evaluation Team Lead

The individual selected by the evaluation team to be responsible for

coordinating the evaluation process.

Fair Market Value

The price that would be agreed to in an open and unrestricted market

between knowledgeable and willing parties dealing at arm's length who are
fully informed and not under any compulsion to transact.

Fiscal Year

Twelve-month period covered by the government's yearly budget, defined by

the date in which it ends.
Each fiscal year runs from April 1 to March 31 of the next calendar year;
i.e., fiscal year 200809 runs represents the 12-month period from
April 1, 2008 to March 31, 2009.

Freedom of Information
and Protection of Privacy
Act (FIPPA)

The Freedom of Information and Protection of Privacy Act (FIPPA) is a

National legislation stipulating a right of access to records held by public
bodies and regulates how public bodies manage personal information.
http://www.accessandprivacy.gov.on.ca/english/act/index.html

Goods

5
6

In relation to procurement, moveable property (including the costs of

installing, operating, maintaining or manufacturing such moveable property)
including raw materials, products, equipment and other physical objects of
every kind and description whether in solid, liquid, gaseous or electronic
form, unless they are procured as part of a general construction contract.

Business Dictionary (2009). Evaluation Criteria. Retrieved on March 23, 2009, from
http://www.businessdictionary.com/definition/evaluation-criteria.html
Virginias Information Technologies Agency (2008). Procurement Manual (Chapter 13). Retrieved March 23, 2009,
from The IT Procurement Project Team, Website: http://www.vita.virginia.gov/uploadedFiles/SCM/
Procurement_Manual/Chapter_13/SCM_Chapter13.pdf

Green Procurement

The purchase of environmentally preferable goods and services and the

integration of environmental performance considerations into the
procurement process including planning, acquisition, use and disposal.
Environmentally preferable goods and services are those that have a lesser
or reduced impact on the environment over the life cycle of the good or
service, when compared with competing goods or services serving the same
purpose.
Environmental performance considerations include, among other things: the
reduction of greenhouse gas emissions and air contaminants; improved
energy and water efficiency; reduced waste and support of reuse and
recycling; the use of renewable resources; reduced hazardous waste; and
reduced toxic and hazardous substances.

Group Purchasing
Initiatives (GPI)

A buying group created to achieve efficiencies and economies of scale by

combining the purchasing requirements and activities of multiple
7
organizations into one joint procurement process. GPIs include cooperative
arrangements in which individual members administer the procurement
function for specific contracts for the group, and more formal corporate
arrangements in which the organization administers procurement for group
members. GPIs may involve a variety of entities, including public sector,
private sector and not-for-profit organizations. Also, GPIs may develop
common contracts available to a broader group, which allow members to
select from multiple suppliers.

In-Scope Recipients

BPS organizations that, after April 1, 2009, have entered into a funding
agreement (or agreements) for more than $10 million (cumulatively) per year
with the Ministries of Health and Long-Term Care, Education and Training,
Colleges and Universities.

Non-Discrimination

Fairness in treating suppliers and awarding contracts without prejudice,

discrimination or preferred treatment, unless justifiable by the situations
outlined in Section 5.3.8.3.6.

Offer

A promise or a proposal made by one party to another, intending the same to

create a legal relationship upon the acceptance of the offer by the other
party.

Procurement

Acquisition by any means, including by purchase, rental, lease or conditional

sale, of goods, services or construction.

The minimum number of entities required to qualify as a Group Purchasing Initiative will be defined in 200910.

Procurement Card
(P-Card)

An organizational credit card program primarily used for low-cost,

non-inventory, non-capital items, such as office supplies or travel expenses.
The card allows procurement or field employees to obtain goods and
services without going through the requisition and authorization procedure.
P-cards may be set up to restrict use to specific purchases with pre-defined
suppliers or stores, and offer central billings.
Unlike the P-card, which is primarily a purchasing tool, a corporate card is
issued to an individual under a corporate program, with the purpose of
paying for expenses related to their job. Corporate cards will often have
8
individual billing but central account management.

Procurement Lead

The individual assigned for each procurement who will be accountable for
meeting the requirements of this document.

Procurement Policies
and Procedures (PPP)

A document providing a framework and 25 mandatory requirements to

govern how organizations conduct sourcing, contracting and purchasing
activities, including approval segregation and limits, competitive and noncompetitive procurement, conflict of interest, and purchasing and contract
awarding. The PPP provides a common set of rules for managing the
procurement of goods, services and construction across the BPS.

Procurement Value

The estimated total financial commitment resulting from a procurement,

taking into account optional extensions.

Purchase Order (PO)

A purchaser's written offer to a supplier formally stating all terms and

conditions of a proposed transaction.

Request for Expressions

of Interest (RFEI)

A document used to gather information on supplier interest in an opportunity

or information on supplier capabilities/qualifications. This mechanism may
be used when a BPS organization wishes to gain a better understanding of
the capacity of the supplier community to provide the services or solutions
needed. A response to a RFEI must not pre-qualify a potential supplier and
must not influence their chances of being the successful proponent on any
subsequent opportunity.

Request for Information

(RFI)

A document issued to potential suppliers to gather general supplier, service

or product information. It is a procurement procedure whereby suppliers are
provided with a general or preliminary description of a problem or need and
are requested to provide information or advice about how to better define
the problem or need, or alternative solutions. A response to an RFI must not
pre-qualify a potential supplier and must not influence their chances of being
the successful proponent on any subsequent opportunity.

CA Magazine, (2004). P-card makes purchasing easier. Retrieved on March 24, 2009, from CA Magazine,
Website: http://www.camagazine.com/2/2/7/0/0/index1.shtml

Request for Proposal

(RFP)

A document used to request suppliers to supply solutions for the delivery of

complex products or services or to provide alternative options or solutions.
It is a process that uses predefined evaluation criteria in which price is not
the only factor.

Request for Supplier

Qualifications (RFSQ)

A document used to gather information on supplier capabilities and

qualifications, with the intention of creating a list of pre-qualified suppliers.
This mechanism may be used either to identify qualified candidates in
advance of expected future competitions or to narrow the field for an
immediate need. BPS organizations must ensure that the terms and
conditions built into the RFSQ contain specific language to disclaim any
obligation on the part of the BPS organization to actually call on any supplier
as a result of information-gathering activities to supply such materials or
services.

Request for Tender

(RFT):

A document used to request supplier responses to supply goods or services

based on stated delivery requirements, performance specifications, terms
and conditions. An RFT usually focuses the evaluation criteria predominantly
on price and delivery requirements. This document may also be called a
Request for Quotation (RFQ) where the organization has described exactly
what needs to be purchased and the evaluation is made solely on price.

Requisition

A formal request to obtain goods or services made within a BPS

organization, generally from the end-user to the purchasing department.

Segregation of Duties

A method of process control to manage conflict of interest, the appearance

of conflict of interest, and errors or fraud. It restricts the amount of power
held by any one individual. It puts a barrier in place to prevent errors or fraud
9
that may be perpetrated by one individual.

Services

Intangible products that do not have a physical presence. No transfer of

possession or ownership takes place when services are sold, and they (1)
cannot be stored or transported, (2) are instantly perishable, and (3) come
into existence at the time they are bought and consumed.

Single Source

The use of a non-competitive procurement process to acquire goods or

services from a specific supplier even though there may be more than one
supplier capable of delivering the same goods or services.

Sole Source

The use of a non-competitive procurement process to acquire goods or

services where there is only one available supplier for the source of the
goods or service.

Supplier/Vendor

Any person who, based on an assessment of that person's financial,

technical and commercial capacity, is capable of fulfilling the requirements of
a procurement.

Gregg, J., Nam, M., Northcutt, S. & Pokladnik, M. (2008) Security Laboratory: Separation of Duties in Information
Technology. Retrieved March 23, 2009, from The SANS Technology Institute, Website: http://www.sans.edu/
resources/securitylab/ it_separation_duties.php

Supply Chain
Management

The full range of processes that manage the flow of goods and services,
information, and dollars between suppliers, customers and end-users,
as well as the supporting infrastructure required to enable these processes.

Supply Chain-Related
Activities

Any activity whether directly or indirectly related to an organizations plan,

source and procure, move and pay processes. It includes everything, starting
from research, scoping and defining needs by end-users until the final
payment.

Total Cost of Ownership/

Total Life-Cycle Costs
(TCO)

An estimate or calculation that considers all direct and indirect costs of an

asset, good or service over its useful life, from acquisition to disposal. Total
cost of ownership includes items such as the purchase price, implementation
fees, upgrades, maintenance contracts, support contracts, licence fees and
10
disposal costs.

Transparency

A foundational objective of the PPP. BPS institutions must be open to all

stakeholders. BPS suppliers must have fair access to information on
procurement opportunities, processes and results.

Vendor Debriefing

A practice of informing a supplier as to why their bid was not selected upon
completion of the contract award process. The process and elements of a
vendor debrief session are detailed in Section 5.3.8.4.3.

Value for Money/

Best Value

A foundational objective of the PPP. BPS institutions must maximize the

value they receive from the use of public funds. A value-for-money approach
aims to deliver products and services with a lower total life-cycle cost while
maintaining a high standard.

Vendors-of-Record (VOR)
Arrangement

A procurement arrangement that authorizes organizations to select from one

or more pre-qualified vendor(s), typically by way of a formal second-stage
process, for a defined period on terms and conditions, including pricing, as
set out in the particular VOR agreement. Vendors-of-record arrangements
are used to reduce costs to the organization by establishing strategic
relationships with a small group of suppliers.

10

Vitasek, K. (2009). Supply Chain Management Terms and Glossary. Retrieved March 23, 2009, from Council of Supply
Chain Management Professionals, Website: http://cscmp.org/digital/glossary/document.pdf

APPENDIX B
PRODUCTS AND SERVICES MANAGED BY SOURCING
(Source, Contract, Purchase Order)

Biomedical Engineering Supplies

Capital Equipment

Clinical Laboratory Supplies

Diagnostic Imaging Supplies

Electro-Diagnostic Supplies

Equipment Maintenance

Equipment Parts

Equipment Rental/Lease

Housekeeping Supplies

Medical and Surgical Supplies

Medical Gases

Minor Equipment Purchases

Offsite Records Storage

Plant Maintenance Equipment

Plant Maintenance Supplies

Printing Supplies

Respiratory Therapy Supplies

Stationary & Office Supplies

Therapeutic Supplies

Utilities

END TO END SOURCING NOT PROVIDED BY XXXXXXXX

Advertising

Building & Grounds Expense

Course Registration Fees & Materials

Data Processing

Diagnostic Imaging Service

Drugs (Pharmaceuticals)

Education Supplies

Event Food/Beverage

Elevator Maintenance

Food

Laboratory Services

Land/Building/Rent/Lease

Landscape/Snow Renewal

Laundry

Licenses

Linen

Membership Fees

Pharmacy Packaging & Comp

Postage

Professional Fees

Referred-Out Services Tests

Renovations

Security Services

Subscriptions

Telecommunications

Travel

PARTIAL
(further clarification required)

Product Categories

Scope of Service

Computer Hardware

Purchase Order

General Supplies

Partial

Software License Fees

Purchase Order

Referred-Out Services

Partial

Research Supplies

Partial

Courier

Source, Contract

Waste Management

Source, Contract

Building Cleaning Services

Source, Contract

APPENDIX C

TEMPLATES
TABLE OF CONTENTS
Evaluation Team Non Disclosure and Conflict of Interest
Vendor Debriefing
Award Notification Letter
Contract Award Letter
Proposal Evaluator Handbook
Single/Sole Source Form

EVALUATION TEAM NON DISCLOSURE

AGREEMENT TEMPLATE
TO BE COMPLETED BY EACH EVALUATION TEAM MEMBER
Name of Evaluation Committee Member: ________________________
RE: [RFP Title]
In accordance with the BPS Procurement Policies and Procedures, the Hospital must consider any
conflicts of interest during procurement activities.
I am a participant of the procurement initiative for the Request for Proposal (RFP) [RFP
Number (if available) and Title] as a [Role and Title].
I acknowledge that I will acquire certain knowledge or receive certain written or oral information
(collectively, the Information) which is non-public, confidential or proprietary to the proponents responding
to the RFP. If unauthorized parties receive the Information, the interests of either the proponent or the
Hospital may be severely damaged.
I agree that, unless required by law or in the course of the procurement process, I will keep all the
Information confidential. I will not, without the written consent of the Hospital reveal or disclose it to
anyone. Nor will I use it directly or indirectly for any purpose other than to gather requirements, develop
RFP content, evaluate the proposals or advise the Hospital regarding the selection of the proponent for
the procurement initiative.
I further agree not to copy or circulate the Information except as a result of the written direction of [Name
of Bid Administrator]. I agree to keep all the procurement documents and templates and written
information relating to the RFP in a secure place and to return this documentation to [Name of Bid
Administrator] at their written request. I also agree not to initiate or respond to any external inquiry
relating to the RFP.
In addition, unless otherwise required by law, or having obtained the written consent of the Hospital, I will
not disclose to any person (other than persons authorized by the Hospital) any information about the
project and the proposals submitted in response to the RFP. This includes the terms, conditions or other
facts relating to the project, the evaluation, the matters discussed by the Evaluation Team and the
proposals. This also includes, but is not limited to, the fact that discussions are taking place with respect
to these things and their status, or the fact that the Information has been made available to me.
I understand and agree that any delay or failure by the Hospital in exercising its rights, powers or privilege
does not free me from these obligations. Nor shall any single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right, power or privilege THERE under.
I have completed a Conflict of Interest Disclosure (attached).

Signature

Print Name

Evaluation Team Non Disclosure Agreement Template

Date

PURCHASING CONFLICT OF INTEREST DECLARATION

TO BE COMPLETED BY EACH PROCUREMENT EVALUATION TEAM
MEMBER

I have read the Hospital Supply Chain Code of Ethics (attached) and understand the expectations for
ethical conduct. Consistent with the Supply Chain Code of Ethics, I am capable of identifying a situation
that constitutes a Conflict of Interest, such as but not limited to:
1. Engaging in outside employment;
2. Not disclosing an existing relationship that may be perceived as being a real or apparent influence on
my objectivity in carrying out an official role;
3. Providing assistance or advice to a particular vendor participating in a competitive bid;
4. Having an ownership, investment interest, or compensation arrangement with any entity participating
in the bid process with the organization;
5. Having access to confidential information related to the procurement initiative; and
6. Accepting favours or gratuities from those doing business with the organization.
I agree to abide by the Hospital Supply Chain Code of Ethics and Purchasing Policy and Procedures in all
of my procurement activities. I declare that there are no actual or potential conflicts of interest arising out
of my participating in procurement activities, except for the following:

1.
2.

Signature

Print Name

Date

Please return to [Name of Bid Administrator] Thank you.

Evaluation Team Non Disclosure Agreement Template

SUPPLY CHAIN CODE OF ETHICS

All individuals involved with purchasing or other supply chain-related activities at the Hospital 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 organizations, suppliers and other stakeholders. Respect
must be demonstrated for each other and for the environment. Confidential information must be
safeguarded. Individuals must not engage in any activity that may create, or appear to create, a conflict of
interest, such as accepting gifts or favours, or providing preferential treatment to suppliers or products.
During a sourcing event, all direct relationships between participating individuals and supplier
organizations must be fully disclosed in a conflict of interest document.
Supply chain activities must be open and accountable. In particular, contracting and purchasing activities
must be fair, transparent and conducted with a view to obtaining the best value for public money. All
participants must ensure that public sector resources are used in a responsible, efficient and effective
manner.
All individuals involved in purchasing or other supply chain-related activities must comply with this Code
of Ethics, the associated policies outlined below 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.

ASSOCIATED POLICIES:

Purchasing

Privacy [ref]

Confidentiality

Conflict of Interest

Respect

Code of Conduct

Greening

Evaluation Team Non Disclosure Agreement Template

VENDOR DEBRIEFING TEMPLATE

RFP Number and Title
Date Debriefing Request Received:

Proponent Company Name:

Debrief Facilitator Name and Contact:

Proponent Representative Attendees Name and Contact Information:

Debriefing Date and Location:

Name and Contact Information of Other Participants:

Document Checklist
Evaluation Scoring Sheets
Strengths and Weaknesses Summary
Name(s) and Address(es) of all Suppliers who Participated in the Procurement (optional)
Contract Award Notice

1
Vendor Debriefing Template

Strengths and Weaknesses: Provide a summary of the key strengths and weaknesses of the Proponents response.
Strengths:

Weaknesses:

Future Improvements:

Issues: Include any identified issues during the vendor debrief. Document all issues in the space below and escalate to senior management or legal counsel
accordingly.
Issue(s):

Issue(s) escalated to the following individuals:

2
Vendor Debriefing Template

Other: Note any other relevant topics, notes, and summaries in the section below.

Formal Closure of Debrief Session:

Organization

Names

Signatures

Date

Debrief Facilitator
Proponent
Representative
Procurement Lead
Additional Comments

3
Vendor Debriefing Template

AWARD NOTIFICATION LETTER

[Insert date here]

Solicitation Number:

[Insert RFP/RFT Number and Title here]

Issue Date:

[Insert Date here]

Close Date & Time:

[Insert Date and Time here]

Award Date:

[Insert Date here]

Successful Proponent:

[Insert Successful Proponents Name here]

SUBJECT:

NOTICE OF AWARD

This notice is to advise that the contract has been awarded to [Name of the successful
Proponent] pursuant to the above-noted procurement process.
The Hospital would like to take this opportunity to thank all proponents for responding to the
above referenced procurement opportunity for the provision of [Insert Project Description].
In accordance with section [Insert from the Posted Competitive Document], unsuccessful
proponents are entitled to a debriefing meeting, during which they will be provided with feedback
regarding their submission. In order to be debriefed, unsuccessful proponents must issue a
request to [Name of Bid Administrator] within 60 days from the date of this notice.
If you have any questions concerning this process or would like to request a debriefing, please
contact.
[Contacts name]
[Contacts title]
[Contacts mailing address]
Phone:

[Contacts phone number]

Fax:

[Contacts fax number]

Email:

[Contacts e-mail]

Sincerely,
[Insert Signatorys Name and Title here]

Award Notification Letter

CONTRACT AWARD LETTER

[Insert date here]
[Insert proponents name here]
[Insert proponents full address here]
Attention:

[Insert proponents contact name here]

SUBJECT:

NOTICE OF AWARD [Insert RFP Number and Title of RFP/RFT here]

The Hospital is pleased to advise that you are the selected proponent pursuant to the abovenoted procurement process.
Enclosed please find three (3) copies of the Agreement for your signature. Please return all
copies of the executed Agreement as well as the following documentation to the address set out
above within fifteen (15) calendar days of receipt of this notice:
- [List any additional documentation requirements or authorization forms]
Failure to provide these documents the Hospital within the specified timeline may result in the
rescission of your selection in accordance with the rules of this procurement process.
Following execution of the Agreement by the Hospital, one original signed copy will be returned to
you for your records.
Please be advised that this notice of award letter should not be construed as permission from the
Hospital to begin the work detailed in the Agreement. The Hospital will not be responsible or
liable for any expenses related to the Deliverables, and the selected proponent is not to accept
work requests prior to the execution of the Agreement by the Hospital. Work may begin pursuant
to the Agreement when:
a. the Agreement signed by both parties is returned to the selected proponent, and
b. written permission is expressly given to the Supplier by a the Hospital Representative to
begin work under the Agreement.
If you have any questions concerning this process, please contact [contacts name] at
[contacts phone number].

Sincerely,
[Insert signatorys name and title here]

Contract Award Letter

PROPOSAL EVALUATOR HANDBOOK

INCLUDING EVALUATION MATRIX

RFP #XXX

RFP Title

RFP Posted:

[Date]

RFP Closed:

[Date]

Evaluation Team Lead:

[Contact Details]

INTRODUCTION
Thank you for agreeing to participate on the Evaluation Team to review proponent proposals
submitted in response to [RFP #- Title]. We appreciate and value your commitment and
participation on this initiative.
This document outlines the evaluation process and your role and responsibilities as an evaluator.
If you have questions after reading this document, please contact [Bid Administrator].

GOALS
By issuing this RFP, the Hospital intends to select a supplier that, through the evaluation process
of this RFP, is found to be the best qualified based on rated criteria and most suitable to provide
the goods or services to meet the requirements of the Hospital.
At the conclusion of the evaluation process, The Hospital will enter into a contractual Agreement
with [Number] supplier(s) for the provision of these goods and services for a [Insert Term and
extensions].

REQUIREMENTS
[List Requirements as detailed in the RFP in this Section provide supplementary
information to evaluators as required]

EVALUATION TEAM
Evaluation of the RFP proposals will be performed by the following Team:

EVALUATION TEAM LEAD (TEAM LEAD)

[Evaluator Name, Title, Org]

A Team Lead should be nominated by the Evaluation Team to be responsible for preparing a
Summary Evaluation of each proposal reviewed by the team.

TEAM MEMBERS

[Evaluator Name, Title, Org]

[Evaluator Name, Title, Org]

EVALUATION PROCESS
PRINCIPLES OF EVALUATION
The proposal evaluation process must adhere to the following principles:

DEFENSIBLE

A clear and logical process must be rigorously applied.

Proposal Evaluator Handbook

TRANSPARENT

Evaluators should conduct assessments individually and independently from other team
members and must clearly document their findings in the scoring booklets. Findings must be
converted to numeric scores so that there are both a qualitative and a quantitative summary
of each proposal. Each Evaluator must clearly document all comments/findings to ensure
integrity of the procurement process, as this documentation may be used to debrief
proponents. Additionally, evaluation booklets are subject to the Freedom of Information and
Protection of Privacy Act (FIPPA) and in this regard can be requested through a Freedom of
Information (FOI) request; and

Final conclusions and award recommendations should be arrived at by team consensus.

INTEGRITY

The process should be objective

Evaluators must declare all existing and potential conflicts of interest

Evaluators must sign a declaration attesting that all existing and potential conflicts of
interests were disclosed.

Confidentiality and security must be ensured:

Evaluators are not to discuss the evaluation with each other prior to the evaluation
team meeting.

Evaluators are not to discuss the evaluation with anyone outside the Evaluation
Team.

Evaluation process must be objective and fair

Only material submitted as part of the RFP submission and material obtained by formal
clarification can be evaluated;

No communication with proponents is allowed. Evaluators must sign a Non Disclosure

Agreement to this effect, and must maintain that condition during and after the RFP
process; and

All bids must be treated in the same manner and given equal consideration.

DOCUMENTED

The process must be documented to support selection of the ultimate proponent and to
facilitate debriefing of unsuccessful proponents;

All documentation must be clear and concise to facilitate future scrutiny such as audits and
requests through an FOI application; and
The process and results must be summarized, documented and retained for future public
scrutiny.
Note: Evaluation Handbooks are reviewed and held by [Internal Sourcing] as the custodian of
the official procurement file.
Stages of Proposal Evaluation

Proposal Evaluator Handbook

REVIEW MANDATORY REQUIREMENTS

Each proponents written submission must comply with all the mandatory requirements as set out
in the RFP. Proposal submissions that do not comply with any of the mandatory requirements
should be disqualified and not evaluated further. The Team Lead is to conduct this part of the
Evaluation Process.

EVALUATION OF WRITTEN SUBMISSIONS

The Evaluation Teams responsibility is to review the proponents written submissions to
determine a shortlist of proponents.
At the conclusion of the individual evaluation and scoring, a consensus meeting will be convened
to arrive at the consensus score for each proposal by discussion and, in the case where a
consensus score cannot be reached, an averaging of each Evaluators final scores. A master
consensus document will be developed by the Team Lead based on the findings from the
consensus meeting and will contain a summary of the Evaluators comments for all of the rated
criteria of the RFP.

SCORING THE RATE BID FORM OR PRICING

The Rate Bid Form or Pricing must be evaluated after the completion of the Rated Criteria. The
Team Lead will conduct this part of the Evaluation Process.
Points will be assigned to each proposal using the following formula:
XX points

LOWEST BID PRICE____

points awarded

proponents bid price

For example, if the lowest proposal A is $2 and proposal B is $4, proposal A will receive
100% of the available 40 points, and proposal B will receive 40 X $2 / $4 = 20 points.

CUMULATIVE SCORE
Cumulative Score

Weighting (Points)

Rated Criteria

XX points

Rate Bid Form/Pricing

XX points

Total Available Points

XXX points

TIE SCORES
There must be clear winner to support award recommendation. If there is no clear winner (tied
score between proponents) The Hospital will follow the tie-break procedures as defined in the
RFP.

Proposal Evaluator Handbook

SCORING METHOD
Rated criteria have been developed for this evaluation and have been detailed in this document.
The rated criteria are identical to the published criteria in the RFP. The process for scoring these
criteria is outlined below.
In applying scores through the evaluation process, evaluators should note that proposals are
evaluated against the Evaluation Teams expectations of what are acceptable responses to the
criteria. For consistency, the following table describes the characteristics attributable to particular
scores between 0-100 and is inserted as an example of acceptable evaluation responses.

Score

Characteristics

0 - 39

Submission is unacceptable; demonstrates little understanding of the

requirements; criterion is absent from submission

40 - 69

Submission is not adequate; misses key requirements

70 - 79

Submission meets basic expectations and requirements

80 - 100

Submission meets and exceeds expectations and requirements, clearly

demonstrates an understanding of program requirements and details how services
will be provided to meet stated standards/expectations/service levels

Each Evaluator must maintain working notes of their evaluation in their individual scoring
booklet noting positive/negative attributes and general comments for each criterion. The
team will produce a summary showing the scoring allocated to each submission, together with a
written justification of their scoring.

QUESTIONS AND ANSWERS DURING THE EVALUATION PERIOD

Evaluators may request clarification at any time during the evaluation period by forwarding
questions to the Procurement Lead who will ensure that the question is answered by a subject
matter expert and made available to all Evaluation Team members.

Proposal Evaluator Handbook

RESPONSIBILITIES OF EVALUATORS
INDIVIDUAL SCORING OF PROPOSALS
1. Review the RFP and addenda/attachments fully and thoroughly, with particular focus on the
evaluation criteria.
2. Review proposals, assign points and write corresponding comments to support each
individual score. Comments are necessary to support your evaluation and will be used to
conduct debriefings with unsuccessful proponents. Minimal comments and incomplete
sentences are insufficient and may leave the impression that due diligence was not applied
during the evaluation. Evaluation booklets can potentially be requested through a Freedom
of Information (FOI) request.
Note: Each Evaluator could be requested to justify their comments at a later date.
3. Evaluate proposal content and not style. Presentation styles will vary from expensive glossy
to straightforward letter proposals. It is critical that the focus be on content only and in
accordance with the pre-established evaluation criteria as set out in the RFP document.
4. Assess each proposal independently of the other submissions. Rate compliance with each
criterion separately
5. Review all information in the proposal. If the Evaluators find information in the proposal, but
not where it is technically supposed to be located, they must take the information into
account.
6. Proponents responses are to be scored solely on whether they answer the RFP the way they
were instructed and whether they provide an adequate solution.
7. Evaluators must sign their final individual scoring sheets.
8. After the individual portion of the evaluation has been completed, Evaluators will meet to
discuss their responses, clarify inconsistencies, and to determine what their final group
consensus or average scores will be. These scores will be multiplied by the total points
allocated per deliverable in order to determine a weighted score per deliverable. Weighted
scores will be added to determine the final score for each proponent in the rated criteria
section.
9. The Team Lead will then prepare the Consensus Evaluation Summary for each proposal
evaluated by the team by coordinating all comments and feedback from the team members in
order to provide the proponent with an overall summary of the strengths and weaknesses of
their proposal. This Summary Consensus will be signed by each member of the Evaluation
Team.

PROPOSAL INFORMATION CLARIFICATIONS

If the Evaluation Team determines that information supplied by a proponent requires clarification,
the question should be formulated in writing. All contact with proponents for the purpose of
obtaining clarification will be through the Bid Administrator in conjunction with the appropriate
legal counsel, if required. Under no circumstances may a member of any Evaluation Team
contact any proponent directly to obtain clarifications on a proposal.

Proposal Evaluator Handbook

COMPLETION OF SCORING SHEETS

After completion of the evaluation, all summary material and individual Evaluators notes
must be collected (please ensure that the scoring booklets are legible) and presented to
the Bid Administrator. Working papers/records of the evaluation process must be
assembled to ensure that a thorough audit trail is established. All Evaluators must sign
and date the front cover of all of their Scoring Sheets. The scoring sheets are provided
below.

Proposal Evaluator Handbook

EVALUATOR SCORING SHEET

RFP # [number] for
[RFP title]
[RFP Title]

Evaluator:
[Print Name]

Full Legal Name of Proponent:

Title:

Date of evaluation:

Signature:

Proposal meets the key criteria? (Yes/No):

Available Score for

General = XX points

Available Score for

Specifications = XX
points

Available Score for

Service, Support,
Training, Warranty
= XX points

Available Score
Experience and
Qualifications = XX
points

Total Rate Criteria

Score = XX points

Proponents Score =

Proponents Score =

Proponents Score =

Proponents Score =

Proponents Score =

Evaluator Scoring Sheet

COMPLETION OF SCORING SHEETS

Every section MUST be filled out by Evaluators including qualitative comments to support ALL scoring.
Rated Criteria
**SAMPLE CRITERIA**

Item

Weight

(a)

Organizational Stability

X points

(b)

Personnel

X points

(c)

Safety Standards

X points

Proponent Total Score General

X points

(d)

Product/Service/Solution Description or
Design

X points

(e)

Quality

X points

(f)

Delivery Time/Availability

X points

Proponent Total Score Specifications

X points

(g)

X points

Service/Support

Evaluator Scoring Sheet

Evaluators
Score

STRENGTHS

Page
#

WEAKNESSES

Rated Criteria
**SAMPLE CRITERIA**

Item

Weight

(h)

Training

X points

(i)

Warranty

X points

Proponent Total Score Service, Support,

Training, Warranty

X points

(j)

Experience

X points

(k)

Qualifications

X points

(l)

References

X points

Proponent Total Score Experience and

Qualifications
Proponent Total Score

Evaluator Scoring Sheet

Evaluators
Score

STRENGTHS

Page
#

WEAKNESSES

X points
XX points

THE HOSPITAL SINGLE/SOLE SOURCE CERTIFICATION FORM

This documentation must be completed and approved by the functional Vice President and may be used as
supporting documentation in the case of a competitive dispute. The document must be attached to the procurement
documents file and maintained for a period of ten years (10 years) or as required.

Requisition #

__________________

1. Identify the type of non-competitive procurement.

Sole Source (only one available supplier capable of delivering the goods or service).
Single Source (more than one supplier capable of delivering the goods or services)

2. Identify/specify the allowable exception applicable to this non-competitive procurement (select from
Appendix A Sole Source; or Appendix B Single Source, as applicable). Please refer to Appendix
A & B on the back of this document.
_____________________________________________________________________________________
3. Provide supporting rationale as to why an open competitive procurement method cannot be used to
acquire the goods or services.
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________

Initiator (Print) ______________________ (Signature) ________________________

(Date)______________

Functional Vice President (Signature) _________________________________________ (Date) ______________

Single/Sole Source Certification Form

Appendix A - Sole Source

Appendix B - Single Source

Sole Sourcing: means the use of a noncompetitive procurement

process to acquire goods or services where there is only one available
supplier for the source of the goods or service.

Single Sourcing is the use of a noncompetitive procurement process

to acquire goods, services or construction from a specific supplier even
though there may be more than one supplier capable of delivering the
same goods, services or construction.

In accordance with the AIT, in a situation where only one supplier is

able to meet the requirements
of a procurement, an organization may use sole source strategy when
one or more of the allowable exceptions are met.
Allowable exceptions for competitive procurements include:
a. To ensure compatibility with existing products, to recognize
exclusive rights, such as exclusive
licences, copyright and patent rights, or to maintain specialized
products that must be maintained
by the manufacturer or its representative;
b. Where there is an absence of competition for technical reasons and
the goods or services can
only be supplied by a particular supplier and no alternative or
substitute exists;
c. For the procurement of goods or services, the supply of which is
controlled by a supplier that is a
statutory monopoly;
d. For the purchase of goods on a commodity market;
e. For work to be performed on or about a leased building or portions
thereof that may be performed
only by the leaser;
f. For work to be performed on property by a contractor according to
provisions of a warranty or
guarantee held in respect of the property or the original work;
g. For a contract to be awarded to the winner of a design contest;
h. For the procurement of a prototype or a first good or service to be
developed in the course of and
for a particular contract for research, experiment, study or original
development, but not for any
subsequent purchases;
i. For the purchase of goods under exceptionally advantageous
circumstances such as bankruptcy
or receivership, but not for routine purchases;
j. For the procurement of original works of art;
k. For the procurement of subscriptions to newspapers, magazines or
other periodicals; and
l. For the procurement of real property.

Allowable exceptions for Single Source competitive procurements

include:
a. Where an unforeseen situation of urgency exists and the goods,
services or construction cannot be
obtained by means of open procurement procedures. Where a
noncompetitive procurement is
required due to an urgent situation, organizations may conduct the
procurement prior to obtaining
the appropriate approvals provided that the urgency has been justified
in writing;
b. Where goods or consulting services regarding matters of
confidential or privileged nature are
to be purchased and the disclosure of those matters through an open
competitive process could
reasonably be expected to compromise confidentiality, cause economic
disruption or otherwise
be contrary to the public interest;
c. Where a contract is awarded under a cooperation agreement that is
financed, in whole or in part,
by an international organization only to the extent that the agreement
includes different rules for
awarding contracts;
d. Where construction materials are to be purchased and it can be
demonstrated that transportation
costs or technical considerations impose geographic limits on the
available supply base, specifically
in the case of sand, stone, gravel, asphalt compound and premixed
concrete for use in the
construction or repair of roads;
e. Where an open competitive process could interfere with the
organizations ability to maintain
security or order or to protect human, animal or plant life or health;
f. Where there is an absence of any bids in response to an open
competitive process that has been
conducted in compliance with this document; and
g. Where only one supplier is able to meet the requirements of
procurement in the circumstances
(sole sourcing).

APPENDIX D
MANDATORY REQUIREMENTS
SEGREGATION OF DUTIES AND APPROVAL AUTHORITY LEVELS
1. Segregation of Duties BPS organizations must segregate at least three of the five functional
roles. Responsibilities for these functions should lie with different departments or at a minimum with
different individuals. In circumstances where it is not feasible to segregate three roles, as in the case
with smaller organizations, adequate compensating controls approved by the external auditor will be
acceptable. (Section 5.3.6.1)
2. Approval Authority BPS organizations must have a documented delegation of authority schedule
that outlines the organizations authority levels for each of the five functional roles described in the
segregation of duties (Section 5.3.6.1) and seek the necessary approval for all procurements prior to
conducting the procurement. (Section 5.3.6.2)

COMPETITIVE VS. NON-COMPETITIVE PROCUREMENT

3. Competitive vs. Non-Competitive Procurement Process Determination In accordance with the
AIT, the Ontario-Quebec Procurement Agreement and the PPPs principle of transparency, BPS
organizations must conduct open competitive procurements where the estimated value of
11
procurement of goods, services or construction is $100,000 or greater. (Section 5.3.7.1)

COMPETITIVE PROCUREMENT
4. Information Gathering A response to an RFI or RFEI must not pre-qualify a potential supplier and
must not influence their chances of being the successful proponent on any subsequent opportunity.
(Section 5.3.8.1.2)
5. Pre-Qualification BPS organizations must ensure that the terms and conditions built into the
RFSQ contain specific language to disclaim any obligation on the part of the BPS organization to
actually call on any supplier as a result of the pre-qualification to supply such materials or services.
(Section 5.3.8.1.3)

PURCHASING
6. Advertising and Posting Competitive Documents to Market In accordance with the AIT, calls
for competitive procurements shall be made through an electronic tendering system that is equally
accessible to all Canadian suppliers.
Construction contracts between $100,000 and $250,000 are not subject to the requirements of the
AIT. Calls for those competitive procurements can be made through an electronic tendering system
and/or one or more of the following methods:
a. Publication in one or more predetermined daily newspapers that are easily accessible to all Canadian
suppliers; or
b. The use of source lists, such as VORs or preferred suppliers lists. (Section 5.3.8.2.3)
7. Timelines for Posting Competitive Procurements Purchasing BPS organizations must provide
suppliers a minimum response time of 15 calendar days for procurements valued at $100,000 or
more. (Section 5.3.8.2.5)

11

The threshold for construction has been set to align with the lower of the two requirements as set by the AIT and the OntarioQuebec Procurement Agreement respectively.

EVALUATION
8. Bid Receipt BPS organizations must ensure that the closing date is set on a normal working day
(Monday to Friday, excluding provincial and national holidays). Submissions that are delivered
after the closing time must not be considered. (Section 5.3.8.3.1)
9. Evaluation Criteria Evaluation criteria should be developed, reviewed and approved before
the competitive process begins. These criteria must be included in the competitive documents.
The competitive documents must also identify those criteria that are considered mandatory and any
technical standards that need to be met. The evaluation criteria cannot be changed or altered once
the competitive process has begun. (Section 5.3.8.3.2)
10. Evaluation Process BPS organizations must fully disclose the evaluation methodology and
process to be used in assessing a suppliers submission. (Section 5.3.8.3.3)
11. Evaluation Team Evaluation team members must be aware of the restrictions related to
confidential information shared through the competitive process and refrain from engaging in activities
that may create or appear to create a conflict of interest. BPS organizations must require team
members to sign a conflict-of-interest declaration and non-disclosure agreement. (Section 5.3.8.3.4)
12. Evaluation Matrix BPS organizations must ensure that each member of the evaluation team has
completed an evaluation matrix rating each of the proponents. Records of evaluation scores must be
auditable. Evaluators should be aware that everything they say or document must be fair, factual,
fully defensible and may be subject to public scrutiny. (Section 5.3.8.3.5)
13. Selection Process BPS organizations must select only the highest ranked submission(s) that
have met all mandatory requirements set out in the related procurement document. In responding to
procurement documents, suppliers may sometimes propose alternative strategies or solutions to the
organizations business needs. Unless expressly requested in the procurement documents,
organizations must not consider alternative strategies or solutions proposed by a supplier. (Section
5.3.8.3.5)
14. Tie-Score Process The method to resolve a tie score must be identified in the evaluation criteria
of the RFP, including weighting, if applicable. Tie-break criteria are also subject to the rules of
non-discrimination defined in Section 5.3.8.3.6. (Section 5.3.8.3.5)
15. Non-Discrimination In compliance with the AIT, BPS organizations must refrain from any
discrimination or preferred treatment in awarding a contract to the preferred supplier from the
competitive process, unless justifiable based on the circumstances described below. (Section
5.3.8.3.6)

CONTRACT AWARD
16. Executing the Contract The agreement between the purchasing BPS organization and the
successful supplier must be defined formally in a signed written contract before the provision of the
goods, services or construction commences. When executing the contract, the organization must
obtain the supplier signatures before obtaining the designated organizations signature. In situations
where an immediate need exists for goods or services and the purchasing organization and the
supplier are unable to finalize a contract, a letter of intent, memorandum of understanding (MOU) or
interim purchase order may be used. This will allow for the immediate needs to be met, while final
negotiations take place towards finalizing the contract. (Section 5.3.8.4.1)
17. Establishing the Contract The contract must be finalized using the form of agreement/contract
that was released with the procurement document. (Section 5.3.8.4.1)

18. Termination and Cancellation Clauses All contracts must include appropriate cancellation or
termination clauses and BPS organizations should seek appropriate legal advice on the development
of these clauses. (Section 5.3.8.4.1)
19. Contract Extensions The term of the agreement and any options to extend the agreement must
be set out in the procurement document. Changes to the term of the agreement may change the
procurement value. Prior written approval by the appropriate approval authority is necessary before
changing contract start and end dates. Extensions to the term of agreement beyond what is set out in
the procurement document are considered non-competitive procurements and BPS organizations
must seek appropriate approval authority prior to proceeding. (Section 5.3.8.4.1)
20. Award Notification For purchases valued at $100,000 or greater, BPS organizations must post, in
the same manner as the procurement documents were posted, the name(s) of the successful
supplier(s). Contract award notification must occur only after the agreement between the successful
supplier and the organization has been signed. The contract award notification must include the
agreement start and end dates, including any options for extension and the total agreement value.
(Section 5.3.8.4.2)
21. Vendor Debriefing Notification For purchases valued at $100,000 or greater, BPS organizations
must inform all suppliers who participated in the procurement process of their entitlement to a
debriefing. (Section 5.3.8.4.3)

NON-COMPETITIVE PROCUREMENT
22. Non-Competitive Procurement Documentation When a BPS organization bypasses the
competitive process for any of the situations identified in Section 5.3.9.1, formal documentation must
be completed to support and justify the decision. This documentation must be completed and
approved by the appropriate authority levels within the organization and may be used as supporting
documentation in the case of a competitive dispute. (Section 5.3.9.2)

PROCUREMENT DOCUMENTS AND RECORDS RETENTION

23. Records Retention All procurement documents, as well as any other pertinent information for
reporting and auditing purposes, must be maintained for a period of seven years and be in
recoverable form if requested. (Section 5.3.11)

CONFLICT OF INTEREST
24. Conflict of Interest BPS organizations must consider any conflicts of interest during procurement
activities applicable to all employees, external consultants or suppliers. The organization must require
any individual involved in supply chain-related activities to declare all actual or potential conflicts of
interest. (Section 5.3.12)

BID PROTEST PROCEDURES

25. Bid Protest Procedures BPS organizations must communicate the bid protest procedures for
suppliers in all competitive and procurement documents to ensure that any dispute is handled in a
reasonable and timely fashion. BPS organizations must ensure that their process is compliant with
the bid protest procedures as set out in the AIT and the Ontario-Quebec Procurement Agreement.
(Section 5.3.13)

APPENDIX E
ASSOCIATED POLICIES