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Procurement Directive
July 2009
1. PURPOSE ....................................................................................................4
2 DEFINITIONS ................................................................................................4
3. APPLICATION AND SCOPE ........................................................................7
4 PRINCIPLES .................................................................................................8
5 MANDATORY REQUIREMENTS ..................................................................9
5.1 Procurement Planning - Ministries .................................................................... 9
5.1.1 Annual Procurement Planning................................................................... 9
5.1.2 Individual Procurement Planning............................................................. 10
5.1.3 Large Projects ......................................................................................... 10
5.2 Procurement Planning – Other Included Entities ............................................ 11
5.3 Procurement Value.......................................................................................... 11
5.3.1 Procurement Value Increases ................................................................. 11
5.4 Supply Source ................................................................................................. 12
5.4.1 Central Common Services........................................................................... 12
5.4.2 Vendor of Record Arrangements............................................................. 12
5.4.2.1 Establishing VOR Arrangements............................................................. 13
5.4.2.2 Conducting a Second Stage Selection Process.................................... 14
5.5 Procurement Methods - Ministries................................................................... 15
5.5.1 Consulting Services Procurements ......................................................... 15
5.5.2 Goods Procurements............................................................................... 15
5.5.3 Non-Consulting Services Procurements.................................................. 15
5.5.4 Non-Competitive Procurements .............................................................. 16
5.5.4.1 Allowable Exceptions – Consulting Services ....................................... 16
5.5.4.2 Allowable Exceptions – Goods and Non-Consulting Services ............... 17
5.5.5 Non-Competitive Procurements Business Case Requirements .............. 18
5.5.6 Non-Competitive Procurements for Unforeseen Situations of Urgency .. 19
5.6 Procurement Methods - Other Included Entities ............................................. 19
5.6.1 Consulting Services Procurements ......................................................... 19
5.6.2 Goods and Non-Consulting Services Procurements ............................... 20
5.7 Procurement Approvals - Ministries ................................................................ 20
5.7.1 Approval Authority ................................................................................... 20
5.7.1.1 Consulting Services Procurement Approvals ...................................... 20
5.7.1.2 Goods Procurement Approvals ............................................................... 22
5.7.1.3 Non-Consulting Procurement Approvals ............................................. 22
5.7.2 Ministry Approval Authority...................................................................... 23
5.7.3 Supply Chain Leadership Council Approval Authority ............................. 23
5.7.4 TB/MBC Approval Authority..................................................................... 24
5.7.5 Information Technology Approvals .......................................................... 24
5.8 Procurement Approvals – Other Included Entities .......................................... 24
6 PROCUREMENT PROCESS ......................................................................25
6.1 Research and Consultation ............................................................................. 25
6.2 Procurement Documents - Ministries .............................................................. 25
6.3 Procurement Documents – Other Included Entities ........................................ 27
6.4 Electronic Tendering ....................................................................................... 27
6.5 Bid Response Time ......................................................................................... 28
6.6 Additional Information...................................................................................... 28
6.7 Evaluation Process.......................................................................................... 28
6.8 Vendor Debriefings.......................................................................................... 29
6.8.1 Scheduling Vendor Debriefing Meetings ................................................. 29
This Directive replaces both the Management Board of Cabinet Procurement Directive
2007 and the Procurement Operating Policy November 2007.
1. PURPOSE
To ensure that goods and services, including construction, consulting services, and
information technology are acquired through a process that is fair, open, transparent,
geographically neutral and accessible to qualified vendors.
2 DEFINITIONS
“Agreement” means the formal written document that will be entered into at the end of
the procurement process.
“Agreement Ceiling Price” means the total cost for specified goods/services as
established in a contractual relationship with a third party.
“Cluster” means I&IT clusters as defined by the Information and Information Technology
Strategy 1998.
“Contract” means the aggregate of (a) the Form of Agreement including any schedules;
(b) the procurement document, including any addenda; (c) the Proposal; and (d) any
amendments executed in accordance with the terms of the Agreement.
“Deputy Head” means the Deputy Minister of a ministry or Chief Executive Officer of an
agency that must comply with this Directive in its entirety (see Section 3).
“Information Technology” means the equipment, software, services and processes used
to create, store, process, communicate and manage information.
“Invitational tenders” means a method of inviting at least three (3) vendors to respond to
a request for supply of goods or services based on stated delivery requirements,
performance specifications, terms, and conditions.
“Ministries” means all ministries, clusters, advisory, adjudicative and regulatory agencies
and any other agency that is required by a Memorandum of Understanding established
prior to July 2009 to comply with the MBC Procurement Directive or its predecessors.
“Other Included Entities” means all Crown Foundation, Trust, Operational Service and
Operational Enterprise agencies, as classified under the Agency Establishment and
Accountability Directive and all non classified entities where the Chair and/or Chief
Executive Officer is directly or indirectly appointed by Ontario.
“Procurement Value” means all costs and conferred value associated with a contractual
relationship with a third party
“Procurement Value Increase” means that the costs and conferred value associated with
a procurement initiative have increased subsequent to the procurement approval.
“Request for Information (RFI)” means a market research procurement document that is
used to elicit industry information on particular products and/or services from the vendor
community.
“Request for Proposal (RFP)” means a procurement document that requests vendors 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 Services (RFSe)” means the document used during the second stage
selection process to request submissions from a vendor(s) listed on a services Vendor of
Record arrangement.
“Request for Solution (RFSo)” means the document used during the second stage
selection process to request submissions from a vendor(s) listed on a software or
hardware Vendor of Record arrangement.
“Request for Tender (RFT)” means a procurement document that requests a vendor
response to supply goods or services based on stated delivery requirements,
performance specifications, terms, and conditions. A request for tender usually focuses
the evaluation criteria predominantly on price and delivery requirements.
“Supply Chain Management” means the Supply Chain Management Division of Ontario
Shared Services, Ministry of Government Services.
“Temporary Help Services” means the transactional, task-oriented work usually provided
through private sector temporary help agencies or organizations by way of non-OPS
employees.
“VOR Ceiling Price” means the maximum value per assignment, or per multiple project-
related assignments, under which a ministry may use the VOR arrangement.
“Volume Licensing Agreement (VLA)” means a software licensing program that software
publishers provide to large customers offering significant price discounts and common
Ministries seeking any exemptions from the mandatory requirements of the Procurement
Directive must receive prior MBC approval.
In applying this Directive, Ministries should refer to the Management Board of Cabinet
Directives on Establishing a Central Common Service, Agency Establishment and
Accountability, and Information & Information Technology, as well as their Ministry’s
Financial Delegations of Authority. Ministries should also refer to Regulation 381/07 COI
Rules for Public Servants and Former Public Servants.
This Directive also applies, in part, to all Crown Foundation, Trust, Operational Service
and Operational Enterprise agencies, as classified under the Agency Establishment and
Accountability Directive and all non classified entities where the Chair and/or Chief
Executive Officer is directly or indirectly appointed by Ontario. For the purposes of this
Directive, this group will be known as Other Included Entities. To be included as an
Other Included Entities, entities must not be required by a Memorandum of
Understanding established prior to July 2009 to comply with the MBC Procurement
Directive or its predecessors.
The following sections of this Directive are mandatory for Other Included Entities.
• Section 1 Purpose
• Section 2 Definitions
• Section 3 Application and Scope
• Section 4 Principles
• Section 5.2 Procurement Planning – Other Included Entities
Other Included Entities must establish and follow their own procurement policy and
related processes and procedures provided that they do not conflict with the above
mandatory sections.
Other Included Entities seeking exemptions from the mandatory sections of this Directive
that apply to them must receive prior MBC approval. Any such exemptions must then be
reflected in their Memorandum of Understanding.
4 PRINCIPLES
The overall objective of this Directive is to ensure Ministries and Other Included Entities
acquire the goods and services required to meet government needs in the most
economical and efficient manner, through a procurement process that conforms to the
following principles:
Access for qualified vendors to compete for government business must be open and the
procurement process must be conducted in a fair and transparent manner, providing
equal treatment to vendors.
Conflicts of interest, both real and perceived, must be avoided during the procurement
process and the ensuing Contract; and relationships must not be created which result in
continuous reliance on a particular vendor for a particular kind of work.
Goods and services must be procured only after consideration of ministry business
requirements, alternatives, timing, supply strategy, and procurement method.
Responsible Management
The procurement of goods and services must be responsibly and effectively managed
through appropriate organizational structures, systems, policies, processes, and
procedures.
Ministries and Other Included Entities that are subject to Ontario’s Trade Agreements
must also ensure that access for vendors to compete for government business is
5 MANDATORY REQUIREMENTS
Ministries are required to undertake procurement planning both for their annual
procurement requirements and individual procurement activities. Procurement planning
also assists in identifying the potential supply source and procurement method as well
as determining what and when approvals are needed to ensure sufficient time is allowed
to complete the procurement process.
i. current, ongoing and future business requirements including goods and services
being procured under existing Contracts;
ii. availability of necessary human, financial, technical and accommodation
resources to support the business requirements; and
iii. alternative options considered to satisfy the business requirements
iv. availability of necessary human, financial, technical and accommodation
resources;
v. consideration of alternative ways to satisfy the needs and selection of the most
appropriate option;
vi. an estimate undertaken of the Procurement Value; and
vii. necessary approval authorization to proceed.
Ministries are required to identify the value, supply source, procurement method, and
necessary approvals for each procurement identified in the plan.
Ministries seeking procurement approvals as part of the RbP must submit a business
case, for each procurement approval being sought, providing sufficient details on the
procurement to support appropriate decision making. Details will include, but not be
limited to, information on vendor community, procurement risks, and if appropriate
rationale for any non-competitive procurements. Ministries must refer to the annual RbP
instructions to confirm actual requirements
Ministries seeking in-year procurement approval must review the Procurement Approval
requirements Section 5.7.
For IT procurements, Ministries must also consider, as appropriate, delivery, testing and
acceptance requirements and any applicable technical architecture and design
requirements, standards and interface requirements.
Examples of conferred value include, but are not limited to, the exchange of goods
and/or services in return for other goods and/or services, revenue generating
opportunities and partnership agreements with non-profit organizations.
Where a project involves multiple related procurements, the estimated total Contract
value of all related procurements must be used to determine the procurement value.
Ministries and Other Included Entities must not take any actions to reduce the value of
procurements to avoid any requirements of this Directive regarding competition,
approvals or reporting. Such actions could include subdividing projects, procurements,
or Contracts and awarding multiple consecutive Contracts to the same vendor. The
award of multiple consecutive Contracts to the same vendor may be made only where
each assignment is unique or where prior approval of a Consulting Services follow-on
Agreement has been received.
It may be determined that certain commodities, such as fuel and food, require
contractual provisions for price increases. In these instances, Ministries and Other
Where internal ministry resources are not available, Ministries must use the following
supply sources for goods and services, in the order indicated below:
Except where the Management Board of Cabinet has directed that the services are to be
provided without charge, the inter-ministry charges for optional central common services
must recover the full costs required by the service ministry to deliver the goods and
services to client Ministries. Ministries must refer to the Ministry of Finance OPS Costing
and Pricing Policy and Guidelines for more information.
Finally, ministries may establish ministry-specific VOR Arrangements for the supply of a
particular required good/service.
Ministries must secure appropriate procurement approval authority prior to using a VOR
arrangement. The procurement approval authority requirement is based on the total
estimated Procurement Value of the procurement being conducted under the VOR
arrangement including potential follow on agreements. For projects that involve multiple
related procurements under one or more VOR arrangements, the procurement approval
authority is based on the total of all of the related procurements.
For VOR arrangements where there are multiple vendors, a further second stage
selection process is required to ensure buyers obtain the best value for money (Section
5.4.2.2).
Ministries must enter into a written Agreement with the successful vendor(s) selected
through a VOR arrangement. Prior to using a VOR arrangement(s), Ministries must also
refer to the VOR User Guide to identify and comply with any user requirements of that
VOR arrangement.
New VOR Arrangements are established on a regular basis. Ministries should consult
MyOPS Supply Chain Management for the list of available VOR Arrangements.
Only those Ministries, or successor Ministries, identified at the time the multi-ministry
VOR arrangement is established are entitled to use the VOR arrangement.
Ministry specific VOR arrangements are for the exclusive use of that ministry and may
not be utilized by any other ministry. Where opportunities are identified to expand
existing VOR arrangements from multi-ministry to enterprise-wide or ministry-specific to
multi-ministry, Ministries must consult with Supply Chain Management prior to seeking
approval authority.
The procurement document must be sent to the required number of vendors as follows:
Procurement Value Minimum Second Stage Requirement
Less than $25,000 Ministries may invite only 1 vendor unless
otherwise specified by the VOR User
Guide
$25,000 up to but not including Ministries must invite 3 vendors
$250,000
$250,000 up to but not including Ministries must invite 5 vendors
$750,000
$750,000 up to VOR Ceiling Price (if Ministries must invite 8 or more vendors
ceiling price greater than $750,000)
Above VOR Ceiling Price Ministries must use an open competitive
procurement or seek an exemption to the
Procurement Directive
Where there are fewer vendors on a VOR arrangement than the above noted
requirements, Ministries must invite all listed vendors. The procurement document must
If the estimated procurement value exceeds the approved VOR Ceiling Price, the
ministry must conduct an open competitive procurement or seek appropriate approval to
exceed the ceiling price.
As VOR Arrangement ceiling prices can vary, Ministries should verify the approved
ceiling price in the VOR User Guide available on MyOPS Supply Chain Management.
Certain VOR arrangements have been approved for mandatory use irrespective of
the value of the procurement and Ministries must use these VOR arrangements
where they are available.
Ministries must use an open competitive procurement for Consulting Services valued at
$100,000 or more.
Ministries must use an open competitive procurement for goods valued at $25,000 or
more.
Ministries must use an open competitive procurement process for all non-consulting
services valued at $100,000 or more.
Ministries must also see Section 5.5.6 where an unforeseen situation of urgency
exists that prevents the ministry from seeking appropriate procurements approvals.
e) Where only one supplier is able to meet the requirements of a procurement in the
following circumstances:
ii. For the procurement of goods and services the supply of which is controlled
by a supplier that is a statutory monopoly.
Ministries must also see Section 5.5.6 where an unforeseen situation of urgency
exists that prevents the ministry from seeking appropriate procurements approvals.
g) Where only one supplier is able to meet the requirements of a procurement in the
following circumstances:
c) The allowable exception which has been identified to support the non-competitive
procurement. For allowable exceptions where only one vendor is able to meet the
requirements Ministries must include documentary evidence supporting this
exception. Where no allowable exception exists, an exemption to the Procurement
Directive must be sought. The Ministry must identify the mandatory requirement(s)
from which it is seeks to be exempted.
e) Identifying if the selected vendor has previously been awarded a Contract with the
Ministry within the past five years for the same or closely related requirements, and
the type of procurement process(es) used.
g) A description of how the Ministry will ensure it will comply with the principles of the
Procurement Directive, particularly value for money.
An unforeseen situation of urgency does not occur where Ministries have failed to allow
sufficient time to conduct a competitive process.
A competitive process must be used for all Consulting Services, irrespective of the value
of the Contract.
Other Included Entities may use an invitational competitive procurement for Consulting
Services valued up to $100,000. An invitational competitive procurement is achieved by
requesting a minimum of three (3) qualified vendors to submit a written proposal in
response to the ministry’s requirements.
Other Included Entities must use an open competitive procurement for Consulting
Services valued at $100,000 or more.
Other Included Entities may utilize the allowable exceptions for non-competitive
procurement processes for Consulting Services as defined in Section 5.5.4.1 subject to
approval as defined in Section 5.8. Where a non-competitive procurement process is
required, but no allowable exception exists, Other Included Entities must seek prior
Procurement approvals may be required from within a ministry in accordance with the
ministry’s Financial Delegations of Authority (DOA), Supply Chain Leadership Council
(SCLC) or Treasury Board/Management of Cabinet (TB/MBC) depending on the
procurement value, the procurement method, and whether the procurement activity is
funded or unfunded.
Ministries must not take any actions to reduce the value of procurements to avoid
approval authority requirements. Such actions could include subdividing projects,
procurements, or Contracts and awarding multiple consecutive Contracts to the same
vendor.
It is acknowledged that Agreement Ceiling Price increases may be required over the
term of an Agreement. Ministries are encouraged to avoid such increases through
appropriate procurement planning.
Where Ministries have established that an Agreement Ceiling Price increase is required,
they must seek prior written approval from the appropriate delegated authority, noting
In seeking written approval, Ministries must identify the framework used to confirm that
the increased vendor costs are justified and how the government continues to obtain
value for money. Prior to implementing a ceiling price increase, Ministries and Other
Included Entities must determine whether the increase causes the total Procurement
Value to exceed the original procurement approval. If so, changes to the Agreement
Ceiling Price must not be made until the Ministry has sought new procurement approval
authority as appropriate.
Ministries must consult legal counsel in this regard to identify required changes to the
Agreement terms and conditions related to the Agreement Ceiling Price increase.
b) Program and controllership contact information. Ministries must identify the key
contact for the submission who may be contacted for more information.
c) Procurement title and description including how the procurement supports the
ministry’s business requirements.
f) Proposed Agreement start and end dates, including any proposed Agreement
extension periods.
ii. The number of years the incumbent vendor(s) has had an Agreement to
provide the goods/services being procured.
iv. Description of how the ministry will ensure the incumbent vendor does not
have an unfair advantage in this procurement.
j) Description of all known risks associated with the procurement and the proposed
mitigation strategy that will be used.
l) If applicable, confirmation that the ministry has addressed or will address any
Financial Administration Act considerations.
For IT related procurements, business cases must also be signed by the appropriate
Cluster Chief Information Officer.
For procurements that require TB/MBC approval authority, Ministries do not have to
submit a separate SCLC business case. However, Ministries must include in their MB20
submission the same information that would otherwise be included in the SCLC
business case. Submissions to TB/MBC must be signed by the Minister
Other Included Entities must not take any actions to reduce the value of procurements to
avoid approval authority requirements. Such actions could include subdividing projects,
procurements, or Contracts and awarding multiple consecutive Contracts to the same
vendor.
6 PROCUREMENT PROCESS
c) The name, telephone number and location of the person to contact for additional
information on the procurement documents.
e) The address, date and time limit for submitting responses to procurement
documents. Responses received after the closing date and time must be returned
unopened.
f) The time and place of the opening of the responses in the event of a public
opening.
g) For goods valued at $25,000 or more and services valued at $100,000 or more, a
statement that the procurement is subject to Ontario's Trade Agreements.
h) Tax compliance declaration that the vendor’s Ontario taxes are or will be in good
standing prior to signing an Agreement. The tax compliance declaration form and
related guidelines are available on MyOPS Supply Chain Management.
i) Notice that any confidential information supplied to the Ministry may be disclosed
by the Ministry 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 otherwise
required at law.
ii. reserve the right of the ministry to solely determine whether any situation or
circumstance constitutes a conflict of interest;
vi. require vendors to disclose any actual or potential conflict of interest arising
during the performance of an Agreement;
vii. reserve the right to prescribe the manner in which a vendor should resolve a
conflict of interest;
viii. allow the Ministry to terminate an Agreement where a vendor fails to disclose
any actual or potential conflict of interest or fails to resolve its conflict of
interest as directed by the ministry; and
Ministries must consult with legal counsel regarding their procurement documents
including the implementation and application of updated Agreement terms and
conditions.
Ministries must use Ontario’s electronic tendering system as established by the Ministry
of Government Services. The Ministry of Government Services has established an
Agreement with MERX™ (www.merx.com) to provide electronic tendering services to
the Ontario Government. Ministries must use MERX™. Certain standard elements must
be included in the different forms of procurement documentation that are posted.
Ministries must consult with Supply Chain Management or the MERX™ site to confirm
posting requirements.
In addition to the electronic tendering system, Ministries may also advertise in a national
newspaper accessible to all Canadian suppliers or the Daily Commercial News for
construction related procurements.
Other Included Entities are encouraged to utilize the bid response times recommended
for Ministries.
Ministries and Other Included Entities must pay particular attention to apply the
maximum justifiable weighting to price/cost but can also take into account quality,
quantity, delivery, servicing, experience, financial capacity of the vendor, and any other
criteria directly related to the procurement.
The evaluation of price/cost must be undertaken after the completion of the evaluation of
the mandatory requirements and any other rated criteria.
Following the evaluation process, Ministries and Other Included Entities may select only
the highest ranked submission(s) that have met all mandatory requirements set out in
the related procurement document.
a) Confirm the right to a debriefing, in writing, and allow vendors sixty (60) calendar
days following the date of the written communication to respond.
d) Ensure that the same participant(s) from a ministry participate in every debriefing
conducted. If Ministries have used a Fairness Commissioner in the procurement
process they may be invited to participate in the debriefing but must not conduct
the debriefings.
a) Provide a general overview of the evaluation process set out in the procurement
document;
f) Address specific questions and issues raised by the vendor in relation to their
submission.
In addition, Ministries may also provide the name(s) and address(es) of all vendors who
participated in the procurement including qualified and disqualified Proponents/Bidders
as well as those who submitted “no bid”.
The Contract must be finalized using the form of Agreement/Contract that was released
with the procurement document. When executing the Contract, the Ministry must obtain
the vendor signature before obtaining the designated Ministry signature.
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-
Posting Contract award information does not apply to the second stage selection
process when using a Vendor of Record Arrangement.
Procurement process documentation includes, but is not limited to, the following:
d) copies of all procurement documents used to qualify and select the vendor;
g) information relating to compliance with the Ontarians with Disabilities Act, 2001
where applicable;
i) information regarding any issues that arose during the procurement process;
n) information regarding all changes to the terms and conditions of the Agreement,
including any changes that resulted in an increase in the Agreement price;
o) information regarding the management of the vendor, including how the vendor’s
performance was monitored and managed and, where applicable, mechanisms
used to transfer knowledge from the vendor to staff;
Each year, Ministries will receive a written request from the Ministry of Government
Services. Ministries must refer to this written communication to confirm the information to
be reported and the due date of each report.
Ontario’s Trade Agreements describe the processes that are to be followed in case of
disputes. The Director, Corporate Procurement Policy and Planning Branch, Ministry of
Government Services is the Provincial Co-ordinator for addressing such disputes.
Where requirements in the Trade Agreements differ to this directive, Ministries must
comply with this directive. Ministries engaging in procurements to which the Trade
Agreements do not apply, must note that they are still be required to conduct the
procurement in accordance with the requirements of this Directive. Should this occur,
consult with the Ministry of Government Services’ Supply Chain Management Division.
The Tax Compliance Declaration Form and related guidelines are available on MyOPS
Supply Chain Management.
Where appropriate, Ministries must determine the requirement for business continuity
assurances from vendor(s) with whom they will establish an Agreement including
whether this should be an evaluated requirement. The need for such assurances must
be in the original procurement documents including the form of Agreement. Ministries
must ensure that they communicate these requirements when seeking assistance from
legal counsel.
Ministries should refer to the Information Security and Privacy Classification Policy for
more details on these requirements.
Ministries should refer to the Information Security and Privacy Classification Policy for
more details on storage of personal information or program data.
Ministries must use the Federal Environmental Choice Program standards when
acquiring goods and services valued at over $10,000. The Federal Environmental
Choice Program is characterized by the EcoLogo™ certification mark (three doves
entwined to form a maple leaf). This program provides assurance that the products
bearing the EcoLogo™ certification mark meet stringent environmental criteria. The
Federal Environmental Choice Program includes more than 3000 certified products.
Ministries must refer to www.environmentalchoice.com for more information on the
Federal Environmental Choice Program including the list of certified products and related
certification standards.
All surplus, obsolete or unusable movable assets must be identified and, disposed of
through the Ministry of Government Services unless being transferred to another
ministry or held for trade-in against the purchase of new assets. All arrangements for the
disposal of goods by sale must be equitable to potential buyers, avoid conflict of interest
concerns by excluding government employees as buyers and optimize the revenue to
the government.
Ministries must remove all confidential, personal and sensitive data from information
technology prior to disposing of the equipment.
Arrangements for the disposal of hazardous materials must comply with the regulations
and requirements of the Occupational Health and Safety Act, the Transportation of
Dangerous Goods Act, the Environmental Protection Act and any other rules and
regulations that from time to time may apply.
The Purchasing Card must be used for low dollar value purchases. Employees using the
purchasing card must not circumvent government or ministry procurement policies and
are required to agree to the terms and conditions of purchasing card use.
Ministries must follow the delegation of authority framework for their ministry to
determine which employees will be approved for a purchasing card.
Although purchasing cards are issued in the name of the employee, the Crown is liable
for all charges. Goods and services ordered or purchased for the use of the Crown in the
Right of Ontario are not subject to the Goods and Services Tax (GST). Cardholders are
responsible for informing merchants of this and ensuring that GST is not charged on
their transactions. To help facilitate this, the province’s GST exempt number is printed
on each purchasing card.
Ministries must follow the delegation of authority framework for their ministry to
determine which employee will be approved for a travel card.
The travel card is issued in the name of the employee. Cardholders are fully liable for all
charges, interest, fees, cash advances or adjustments levied against their card account
and are responsible for ensuring the statement is paid in full prior to the payment due
date. Cardholders are also responsible for compliance with all terms and conditions as
set out in the Cardholder Agreement and the Travel Card Use Agreement and the
Travel, Meal and Hospitality Expenses Directive.
8 CONSULTING SERVICES
In addition to the mandatory requirements set forth in Section 5, Ministries must adhere
to the following requirements specific to Consulting Services.
• information technology consulting (i.e. Advisory services that help clients assess
different technology strategies, including aligning their technology strategy with
their business or process strategy);
• research and development (i.e. investigative study for the purpose of increasing
the available store of knowledge and/or information on a particular subject);
• policy consulting (i.e. the provision of advisory services to provide policy options,
analysis and evaluation); and
For Consulting Services valued at or above $750,000, only Deputy Heads can provide
this written approval.
Other Included Entities are required to obtain appropriate approvals in accordance with
their MBC approved governance structure for procurement controllership
Ministries shall co-ordinate, monitor and control the combined efforts of internal and
external resources to ensure satisfactory completion of consulting assignments on
schedule and within budget. When applicable, a transfer of knowledge must occur from
consultant to staff to avoid a continuous reliance on consultants.
Follow-on Agreements are permitted only for Consulting Services where the total value
of all Agreements, does not exceed $750,000 and where an open competitive
procurement or VOR arrangement has been used to select a vendor.
Prior to entering into a follow-on Agreement the following activities must have taken
place:
• Appropriate approval has been obtained in writing prior to entering the original
Agreement;
• Procurement approval authority has been based on the total value of the work in
the original Agreement and the follow-on Agreements;
• The terms of the original Agreement were fulfilled and vendor performance was
satisfactory;
• The appropriate procurement method was used for the original Agreement such
as a VOR arrangement or an open competitive procurement;
• The procurement documents for the original work disclosed the total potential
scope of work to be completed.
9 INFORMATION TECHNOLOGY
In addition to the mandatory requirements set forth in Section 5, Ministries must adhere
to the following requirements specific to IT. These requirements apply whether licensing,
renting, leasing or purchasing IT. Ministries should also refer to the I&IT Directive and
the Operational Policy on the I&IT Project Gateway Process when acquiring IT for any
additional IT related requirements.
For the purposes of this section, information technology does not include the following
specialized single-purpose equipment such as computerized equipment used exclusively
for:
Ministries may establish ministry information technology standards that apply to the
ministry only, provided that such ministry standards do not conflict with corporate
information technology standards and that they are established on the basis of a fair,
open and transparent competitive process or are otherwise approved by MBC or the
Information Technology Standards Council.
9.4 Software
Ministries and Other Included Entities are encouraged to conduct open competitive
procurement for software but have the option of choosing software through a competitive
evaluation rather than a call for tenders. In a competitive evaluation, requirements must
be documented in functional terms and examine and record the fit of potentially suitable
software to functional requirements. The software product that meets the documented
functional requirements and has the lowest evaluated costs is the preferred product. All
relevant costs and benefits must be considered.
When procuring COTS, Ministries must comply with the supply source requirements.
However, prior to conducting an open competitive process, Ministries must first
determine if a ministry Agreement or Volume Licensing Agreement is available. In this
regard, the supply source requirements for COTS products are as follows:
• VOR arrangement
• Ministry Agreement
• Volume Licensing Agreement (VLA) – Resellers
• Volume Licensing Agreement – Direct sellers
• Open competitive procurement or competitive evaluation process
Prior to using a VLA, Ministries must review the VLA User Guide. The VLA User Guide
identifies specific processes that Ministries must follow including the requirement for
further competition to obtain best value for money or additional procurement approval
authority requirements. Ministries must also comply with all VLA terms and conditions
including, but not limited to, reporting and audit requirements.
Where Ministries are unable to acquire COTS products through a VOR arrangement,
ministry Agreement, or VLA, Ministries must conduct an open competitive procurement
or competitive evaluation in compliance with this Directive including, but not limited to,
appropriate procurement approval authority.
Ministries must obtain prior written approvals to procure COTS products through a
competitive procurement or competitive evaluation. Ministries must also follow the
Checkpoint 1 for Acquired Solutions Guideline
10 LARGE PROJECTS
In addition to the requirements set out in the Procurement Directive, Ministries must
adhere to the following requirements specific to Large Projects.
When developing the project procurement plan, Ministries must ensure that all of the
mandatory requirements of this Directive are addressed.
Ministries must ensure that appropriate design review and approval by the project
governance structure occurs prior to proceeding to the build stage.
Where Ministries conduct separate procurements for the design phase and the build
phase of a project, Ministries must determine whether or not the successful vendor(s) at
the design phase will be permitted to participate in the build stage and clearly indicate
this in the design phase procurement documents. As appropriate, Ministries are
encouraged to allow the successful design vendor(s) to bid on the build phase.
Ministries must provide full disclosure of the design and the design vendor(s) in the build
phase procurement documents including whether or not the successful design vendor(s)
are permitted to bid. Ministries must also ensure all interested vendors have access to
the same information made available to the successful design vendor(s). Ministries must
do this either through the procurement documents or other mechanisms such as a
reading room accessible to all vendors interested in responding to the procurement.
11 RESPONSIBILITIES
iv. Approve exemptions from the mandatory requirements contained in this Directive.
Ministers
ii. Approve in writing, in conjunction with the Deputy Head, the use of all non-
competitive procurement processes for Consulting Services irrespective of value
for Ministries.
iii. Approve in writing, in conjunction with the Deputy Head, Agreement ceiling price
increases for Consulting Services that would cause the total Agreement value to
reach or exceed $750,000.
iv. Approve in writing, in conjunction with the Deputy Head, the use of all non-
competitive procurement processes for Consulting Services valued at $100,000
and up to $1M or more for Other Included Entities.
vi. Publish and disseminate to Ministries policies and guidelines to enable the
government to achieve its objectives in the area of environmental procurement.
vii. Administer the disposal of all government owned movable assets and consumable
supplies except assets transferred between Ministries, consumable supplies
returned for credit or where specific legislation to the contrary exists.
i. Maintain and enforce the controllership standards and guidelines for general
purpose charge/credit and travel cards on behalf of the government.
iii. Apply any unpaid Contract proceeds to outstanding tax liabilities if a vendor
becomes non-compliant with the Ontario tax statutes during the term of a Contract.
i. Designate a point of contact within the Ministry of Revenue for bidders to query
their tax status with the Ontario government and dealing with any vendor
complaints arising from application of the process.
i. Provide advice to the Management Board of Cabinet on ministry requests for any
required approval or exemption from the mandatory requirements of this directive.
Deputy Heads
ii. Formally delegate the authority and responsibility for approvals concerning this
directive and the Purchasing Card to appropriate levels of management within the
ministry. This authority may not be delegated for non-competitive Consulting
Services procurements irrespective of value.
iii. Approve in writing, in conjunction with the Minister, the use of all non-competitive
Consulting Services procurement processes irrespective of value for Ministries.
iv. Approve in writing, in conjunction with the Minister, the use of all non-competitive
Consulting Services procurement processes valued at $100,000 and up to but not
including $1M for Other Included Entities.
vi. Approve in writing, submissions to Supply Chain Leadership Council for goods,
non-consulting services and open competitive Consulting Services.
vii. Approve in writing, in conjunction with the Minister, submissions to Supply Chain
Leadership council for non-competitive Consulting Services.
xii. Establish the appropriate controls and checks required for the integrity of the
Purchase Card process including appointing a Ministry Purchasing Card
Coordinator to act as liaison between employees, the Purchasing Card Service
Provider and the Ministry of Government Services.
xv. Approve the Consulting Services and Trade Agreement Reports prior to
submission to the Ministry of Government Services.
xvi. Approve in writing the use of follow-on Agreements for Consulting Services.
xvii. At the Deputy Head discretion, delegate authority to an appropriate ministry official
to approve the selected vendor and proposed Agreement for Consulting Services
valued at or above $100,000 and up to but not including $750,000.
xviii. Approve in writing the selected vendor and proposed Agreement for Consulting
Services valued at or above $750,000.
xix. At the Deputy Head discretion, delegate authority to an appropriate ministry official
of Agreement Ceiling Price Increases for Consulting Services valued at less than
$750,000.
xx. Approve in writing, in conjunction with the Minister, Agreement Ceiling Price
increases for Consulting Services that would cause the total Agreement value to
reach or exceed $750,000.
i. Approve competitive funded procurements valued between $1M and up to but not
including $10M.
iii. Provide advice to MBC on ministry requests for unfunded procurements, all
procurements valued at $10M or more, non-competitive procurements valued at
$1M or more, and exemptions from the mandatory requirements of this directive.
Cabinet Office
i. Approve the commissioning of all public opinion polls and market research studies
and all questions added on by a ministry to non-commissioned polls.
Voice Telecommunication Includes telephone (Centrex, PBX, Government Services Office of the Corporate Chief
equipment and services electronic key), voice processing Infrastructure Technology
(voicemail, audiotex, auto attendant, Services
interactive voice response), long distance
(inbound, outbound, calling card) and
other miscellaneous services (audio
conferencing, T-1)
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