Management Board of Cabinet Procurement Directive July 2009

Procurement Directive July 2009

1

TABLE OF CONTENTS

1. 2 3. 4 5

PURPOSE ....................................................................................................4 DEFINITIONS ................................................................................................4 APPLICATION AND SCOPE ........................................................................7 PRINCIPLES .................................................................................................8 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

Procurement Directive July 2009

2

6.8.2 Conducting Vendor Debriefings............................................................... 29 6.9 Contract Management..................................................................................... 30 6.10 Post Contract Award Notification................................................................. 31 6.11 Documentation and Record Retention ........................................................ 31 6.12 Annual Reporting......................................................................................... 33

7.

OTHER RELATED POLICIES .....................................................................33
7.1 Ontario Trade Agreements.............................................................................. 33 7.2 Tax Compliance .............................................................................................. 33 7.3 Contractor Security Screening ........................................................................ 34 7.4 Business Continuity Planning.......................................................................... 34 7.5 Protection of Personal and Sensitive Information ........................................... 34 7.6 Storage of Personal Information or Program Data .......................................... 34 7.7 Public Opinion Polls and Market Research Studies ........................................ 34 7.8 Ontarians with Disabilities ............................................................................... 35 7.9 Environmental Considerations ........................................................................ 35 7.10 Disposition of Assets ................................................................................... 35 7.11 Corporate Card Program................................................................................ 36 7.11.1 Purchasing Card Program ...................................................................... 36 7.11.2 Travel Card Program ............................................................................... 36 7.12 Asset Management...................................................................................... 37 7.13 Domestic Steel ............................................................................................ 37

8

CONSULTING SERVICES ..........................................................................37
8.1 8.2 8.3 8.4 8.5 8.6 Approval of Vendor Selection.......................................................................... 38 Terms of Reference......................................................................................... 38 Assignment Substantiation.............................................................................. 38 Agreements with Universities and Colleges .................................................... 38 Unsolicited Research Proposals ..................................................................... 39 Follow-On Agreements.................................................................................... 39

9

INFORMATION TECHNOLOGY.................................................................39
9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 Acquisition of Information Technology ............................................................ 40 Alternative Financing....................................................................................... 40 Information Technology Standards ................................................................. 40 Software .......................................................................................................... 40 Commercial-Off-The-Shelf (COTS) Products and Related Services.............. 40 Custom Software Development....................................................................... 41 Open Source Software .................................................................................... 41 Maintenance and Support ............................................................................... 42 Agreement Terms and Conditions................................................................... 42 Lease-Purchase Agreements .......................................................................... 42

10
10.1 10.2

LARGE PROJECTS ................................................................................42
Procurement Planning for Large Projects ....................................................... 42 Separation of Design and Build in Procurement Process............................ 43

11 RESPONSIBILITIES ...............................................................................43 Appendix A - Central Common Services.............................................................48

Procurement Directive July 2009

3

PREAMBLE 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. To specify the responsibilities of individuals and organizations throughout each stage of the procurement process. To contribute to a reduction in purchasing costs. To ensure consistency in the management of procurement related processes and decisions. 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. “Cluster CIO” means the Cluster Chief Information Officer. “Consulting Service” means the provision of expertise or strategic advice that is presented for consideration and decision-making “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. “COTS product” means Commercial-Off-The-Shelf software or pre-packaged software. “COTS product and related services” means Commercial-Off-The-Shelf software or prepackaged software and related services including, but not limited to, maintenance, technical support services, installation, training, configuration and implementation services. “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). “Electronic Tendering System” means a computer-based system that provides vendors with access to information related to open competitive procurements.
Procurement Directive July 2009 4

“Fairness Commissioner” means an independent and impartial third party who observes and monitors the procurement process. “Information Technology” means the equipment, software, services and processes used to create, store, process, communicate and manage information. “Information Technology Standards” means technical standards adopted by the Government of Ontario but developed by recognized standards development organizations (SDO’s), and widely used throughout industry and other government jurisdictions, to support seamless interoperability in the delivery of e-government services. “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. “Large Projects” means procurement(s) related to complex projects involving either Information Technology and/or significant transformation of ministry business processes and operations “MBC” means Management Board of Cabinet. “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. “OCCIO” means the Office of the Corporate Chief Information Officer. “ODA” means the Ontarians with Disabilities Act, 2001. “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.

Procurement Directive July 2009

5

under which a ministry may use the VOR arrangement. or to respond to a particular request for proposals or tenders. performance specifications. or ministry specific. multi-ministry. A request for tender usually focuses the evaluation criteria predominantly on price and delivery requirements. including pricing. as set out in the particular VOR agreement. Ministry of Government Services. “Vendor of Record (VOR) Arrangement” means a procurement arrangement that authorizes one or more qualified vendors. “Single Sourcing” means 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. “Supply Chain Management” means the Supply Chain Management Division of Ontario Shared Services. or per multiple projectrelated assignments. terms. product or service suitability from potential vendors in order to pre-qualify or short list vendors to bid on specific categories of work or provide specific types of goods or services. “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. “SCLC” means the Supply Chain Leadership Council. “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. for a defined time period on terms and conditions. “TB/MBC” means Treasury Board/Management Board of Cabinet. “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. “Trade Agreements” means any applicable trade agreement to which Ontario is a signatory. technical information. “Temporary Help Services” means the transactional. “Volume Licensing Agreement (VLA)” means a software licensing program that software publishers provide to large customers offering significant price discounts and common Procurement Directive July 2009 6 . and conditions. “VOR Ceiling Price” means the maximum value per assignment. VOR Arrangements are categorized as enterprise-wide. task-oriented work usually provided through private sector temporary help agencies or organizations by way of non-OPS employees.“Request for Qualifications (RFQ)” means a procurement document used to solicit financial stability. “Request for Tender (RFT)” means a procurement document that requests a vendor response to supply goods or services based on stated delivery requirements.

all advisory. consulting services. Public and Media Relations and Creative Communications Services. 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. For the purposes of this Directive. Ministries should also refer to Regulation 381/07 COI Rules for Public Servants and Former Public Servants. regulatory agencies. public relations. this group will be known as Other Included Entities. Trust. VLAs are not VOR arrangements and have not been established competitively. • • • • • Section 1 Section 2 Section 3 Section 4 Section 5. To be included as an Other Included Entities. 3.2 Purpose Definitions Application and Scope Principles Procurement Planning – Other Included Entities 7 Procurement Directive July 2009 . in part. This Directive applies in its entirety to: • • • all ministries and clusters. that is required by a Memorandum of Understanding established prior to July 2009 to comply with the MBC Procurement Directive or its predecessors . APPLICATION AND SCOPE This Directive applies to the procurement of all goods and services including construction. Ministries should refer to the Management Board of Cabinet Directives on Establishing a Central Common Service. Agency Establishment and Accountability. as well as their Ministry’s Financial Delegations of Authority. This Directive is mandatory for Ministries and the principles and requirements must be applied to all procurements including the acquisition of central common services and establishment of Vendor of Record (VOR) arrangements. Operational Service and Operational Enterprise agencies. or its successor. Ministries seeking any exemptions from the mandatory requirements of the Procurement Directive must receive prior MBC approval. and information technology required to meet government needs except those related to advertising. and Information & Information Technology. Ministries should consult with the Advertising Review Board. adjudicative. The following sections of this Directive are mandatory for Other Included Entities. this group will be known as Ministries.business and legal terms and conditions. to all Crown Foundation. media relations or creative services and retention of outside legal services. In applying this Directive. 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. as classified under the Agency Establishment and Accountability Directive. This Directive also applies. any other agency. and refer to the Procurement Directive on Advertising. For the purposes of this Directive.

Any such exemptions must then be reflected in their Memorandum of Understanding.5 Section 6.8 Section 6. 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. and Fairness 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.4 Section 6. Value for Money Goods and services must be procured only after consideration of ministry business requirements. and relationships must not be created which result in continuous reliance on a particular vendor for a particular kind of work. providing equal treatment to vendors.7 Section 7. through a procurement process that conforms to the following principles: Vendor Access. supply strategy. must be avoided during the procurement process and the ensuing Contract. systems. and procedures. Responsible Management The procurement of goods and services must be responsibly and effectively managed through appropriate organizational structures.6 Section 5. both real and perceived. and procurement method.3 Section 5.6 Section 6. Geographic Neutrality and Reciprocal Non-Discrimination 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 Procurement Directive July 2009 8 .1 Procurement Value Procurement Methods – Other Included Entities Procurement Approvals – Other Included Entities Procurement Documents – Other Included Entities Electronic Tendering Bid Response Time Additional Information Evaluation Process Ontario’s Trade Agreements 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. processes. policies. alternatives.3 Section 6.• • • • • • • • • Section 5. Conflicts of interest. timing. Transparency. Other Included Entities seeking exemptions from the mandatory sections of this Directive that apply to them must receive prior MBC approval.

and/or legislative and regulatory requirements. technical and accommodation resources. financial.Ministries Ministries must undertake procurement planning as an integral part of the procurement process to identify goods and services needed to meet business requirements and identify opportunities to aggregate spending on goods and services both within ministries and across government. current. Ministries are required to undertake procurement planning both for their annual procurement requirements and individual procurement activities. technical and accommodation resources to support the business requirements. Ministries must assess the following planning requirements: • • • • early identification of needs. Procurement Directive July 2009 9 . and necessary approvals for each procurement identified in the plan. v. vi. 5.1.geographically neutral with respect to other jurisdictions that practice reciprocal nondiscrimination with Ontario. An annual procurement plan must take into consideration: i. justification for the acquisition. clear definition of requirements. 5 MANDATORY REQUIREMENTS 5.1 Annual Procurement Planning Ministries must submit an annual procurement plan as part of the Results-based Planning (RbP) process.1 Procurement Planning . ii. necessary approval authorization to proceed. consideration of alternative ways to satisfy the needs and selection of the most appropriate option. In doing so. Ministries are required to submit a list of all known procurements to be conducted in the upcoming fiscal year to support current. financial. compatibility of procurement needs with program policy. program. ongoing and future business requirements including goods and services being procured under existing Contracts. Ministries are required to identify the value. procurement method. alternative options considered to satisfy the business requirements iv. 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. supply source. and future business requirements. availability of necessary human. an estimate undertaken of the Procurement Value. ongoing. and vii. and iii. availability of necessary human.

early termination provisions. the roles and responsibilities of the successful vendor(s) and any other public sector participants. business continuity requirements.1. delivery. performance standards and service levels. Ministries seeking procurement approvals as part of the RbP must submit a business case. vendor qualification and evaluation requirements. information on vendor community. For IT procurements. impact of vendor participation. Procurement Directive July 2009 10 . vi. risk allocation and liability. for each procurement approval being sought. xv. ix. For IT projects. 5. privacy. Ministries may amend their annual procurement plan to address inyear business requirements. standards and interface requirements. but not be limited to. ii. x. xi. Ministries must also assess the following planning requirements for individual procurement activities as appropriate to that procurement: i.3 Large Projects Ministries must consider the separation of procurement activities related to each project stage when undertaking procurement planning related to projects involving the significant transformation of ministry business processes and operations. knowledge transfer and training. dispute resolution. performance management including remedies for non-performance. 5.1. 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. xiii. iii. reporting relationships and accountability mechanisms that will apply to the successful vendor(s). vendor compensation and payment. xiv.1. iv. security and confidentiality requirements. Ministries should refer to the Operational Policy on the I&IT Project Gateway Process.2 Individual Procurement Planning In addition to the planning requirements noted in Section 5. procurement timetable including procurement authority approvals. and if appropriate rationale for any non-competitive procurements.Ministries should refer to the annual RbP instructions for more details on the annual procurement plan. xii. as appropriate. xvi. testing and acceptance requirements and any applicable technical architecture and design requirements. vii. Details will include. ownership of deliverables and intellectual property rights including the obligation to ensure that the Government does not inadvertently infringe on rights belonging to third-parties. v. providing sufficient details on the procurement to support appropriate decision making. and other requirements deemed necessary viii. Ministries must also consider.7. procurement risks.

installation and documentation. delivery. Disposition costs. 5. revenue generating opportunities and partnership agreements with non-profit organizations. or other unforeseen circumstances.5. Ministries and Other Included Entities must ensure they have the appropriate procurement approval authority and have used the appropriate procurement method. support and maintenance. Benefits such as direct payments by the Crown to the successful vendor(s). Approval for Procurement Value Increases must be sought prior to proceeding with or continuing the procurement. 5. accommodation. Taxes and duties. It may be determined that certain commodities.3 Procurement Value Ministries and Other Included Entities must determine the value of a procurement in order to determine appropriate procurement approval authority and procurement method. but are not limited to. or Contracts and awarding multiple consecutive Contracts to the same vendor. Ministries and Other Included Entities must consider all costs and benefits. v. Costs and benefits include but may not be limited to: i. Such actions could include subdividing projects. To determine the value of a procurement. One-time costs such as site preparation. require contractual provisions for price increases. Procurement Value Increases may be caused by. procurements. iii. Where a project involves multiple related procurements. Ongoing operating costs including training. This is especially important when the Procurement Value Increase causes the Procurement Value to exceed the approval threshold of the original approver. such as fuel and food. the estimated total Contract value of all related procurements must be used to determine the procurement value. associated with entering a contractual relationship with a third party. ii. and any conferred value by the crown to the successful vendor(s). iv. 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. price increases.1 Procurement Value Increases When the value of a procurement increases. the exchange of goods and/or services in return for other goods and/or services. Examples of conferred value include. In these instances. Ministries and Other Procurement Directive July 2009 11 . indirect payments by third parties to the successful vendor(s). approvals or reporting. and vi.3.2 Procurement Planning – Other Included Entities Other Included Entities must ensure that procurement planning is an integral part of their procurement policy as necessary to support their business requirements and ensuring sufficient time is allowed to complete the procurement process. but not limited to. Price/cost of the goods and/or services. 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. volume uptake.

2 Vendor of Record Arrangements Enterprise-wide Vendor of Record (VOR) arrangements have been established to reduce procurement costs by providing ministries with access to one or more contracted vendors of goods and services common to more than one ministry. Finally. Vendor of Records arrangements Enterprise-wide Vendor of Record arrangements. Ministries and Other Included Entities must also ensure that the procurement documents. 5.000 or more and less than the approved VOR Ceiling Price. Except where the Management Board of Cabinet has directed that the services are to be provided without charge. Enterprise-wide VOR Arrangements may be established only by the Ministry of Government Services (MGS).4. Ministries must refer to the Ministry of Finance OPS Costing and Pricing Policy and Guidelines for more information. including the Agreement. in the order indicated below: i. Ministry Vendor of Record arrangements. Multi-ministry Vendor of Record arrangements. Where internal ministry resources are not available. identify the framework under which price increases will be permitted including. and any benchmarks that will be used to confirm the price increase. 5. Ministries must use the following supply sources for goods and services. Mandatory central common services. ii.Included Entities should anticipate such increases and ensure that they seek the appropriate procurement approval authority. Competitive procurement process. Procurement Directive July 2009 12 . Optional central common services. vi. allowable amount of increase. 5. the frequency of price increases. iv. Multi-ministry VOR Arrangements may be established where there is an identified need for a particular good/service among one or more ministries but where there is insufficient demand for an enterprise-wide VOR Arrangement. but not limited to. v. Ministries must use central common services that have been identified as mandatory.4. iii.1 Central Common Services Central common services are services provided by one ministry or agency to all other Ministries established under the Establishment and Use of a Central Common Services Directive. A list of central common services is attached as Appendix A. vii. 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 may establish ministry-specific VOR Arrangements for the supply of a particular required good/service.4 Supply Source Prior to conducting a procurement. Ministries must determine the appropriate supply source for the required goods and/or services first taking into consideration the availability of ministry resources. Enterprise-wide Vendor of Record arrangements must be used where the estimated Procurement Value is $25.

Ministries should consult MyOPS Supply Chain Management for the list of available VOR Arrangements. New VOR Arrangements are established on a regular basis.4. For projects that involve multiple related procurements under one or more VOR arrangements. Ministries must secure appropriate procurement approval authority prior to using a VOR arrangement. available on MyOPS Supply Chain Management. to determine the VOR Ceiling Price and whether a VOR is mandatory use under $25.2. Enterprise-wide VOR arrangements can only be established by the Ministry of Government Services while ministries can establish either multi-ministry or ministry specific VOR arrangements. specific user requirements such as insurance requirements as well as any other information identified by the ministry.000. 5. Ministries must comply with the principles and mandatory requirements of the Procurement Directive When establishing VOR arrangements.2). a single ministry lead must be established. Determine insurance coverage requirements related to the goods and services being procured and confirm when proof of insurance must be presented noting that where insurance is a requirement. Seek appropriate procurement approval authority based on the total estimated value of spending expected to occur over the life of the VOR arrangement.Ministries should note that there are some VOR arrangements where Management Board of Cabinet has approved mandatory use under $25. When establishing 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. Prior to using a VOR arrangement(s). Create a VOR User Guide that provides users with information about the VOR arrangement such as vendor contact information and pricing. In addition to the above noted requirements for the establishment of VOR arrangements. Ministries should refer to the VOR User Guide. For VOR arrangements where there are multiple vendors.4. Ministries must also refer to the VOR User Guide to identify and comply with any user requirements of that VOR arrangement.000. the lead ministry must also: Procurement Directive July 2009 13 . a further second stage selection process is required to ensure buyers obtain the best value for money (Section 5. the procurement approval authority is based on the total of all of the related procurements. Ministries must: i. iv.1 Establishing VOR Arrangements VOR arrangements must be established using an open competitive procurement process. iii.2.000. Ministries must enter into a written Agreement with the successful vendor(s) selected through a VOR arrangement. Establish an appropriate VOR Ceiling Price. For multi-ministry VOR arrangements. proof of insurance must occur at the second stage process unless identified by the ministry in their procurement approval document as being required when the VOR arrangement is initially established. Identify if the VOR arrangement is to be made mandatory for goods/services valued at less than $25. ii.

4. Ministries must not take any actions to reduce the value of procurements to avoid second stage selection process requirements. the second stage selection process is determined by the Procurement Value of all procurements being conducted under each VOR arrangement. and e) manage the resulting VOR arrangement. such as a Request for Solutions (RFSo) or Request for Services (RFSe).000 $250. Ontario Shared Services to verify that an enterprise-wide VOR arrangement is not possible.000 $750.a) consult with Supply Chain Management Division.000 Minimum Second Stage Requirement Ministries may invite only 1 vendor unless otherwise specified by the VOR User Guide Ministries must invite 3 vendors Ministries must invite 5 vendors Ministries must invite 8 or more vendors Ministries must use an open competitive procurement or seek an exemption to the Procurement Directive $25. The procurement document must Procurement Directive July 2009 14 . to Other Included Entities and Ontario broader public sector (BPS) entities. where appropriate. as part of the second stage selection process.000 up to but not including $750.000) Above VOR Ceiling Price Where there are fewer vendors on a VOR arrangement than the above noted requirements. identified at the time the multi-ministry VOR arrangement is established are entitled to use the VOR arrangement. or successor Ministries. Where Ministries are using multiple VOR arrangements. The procurement document must be sent to the required number of vendors as follows: Procurement Value Less than $25. 5. Ministries must consult with Supply Chain Management prior to seeking approval authority. VOR Arrangements may be made available. Only those Ministries.000 up to but not including $250. The required second stage selection process is determined by the Procurement Value of all procurements being conducted under a VOR arrangement.2 Conducting a Second Stage Selection Process Ministries conducting a second stage process must issue a written procurement document. d) manage the procurement process. b) secure the appropriate procurement approvals. c) identify all other user Ministries. Ministries must invite all listed vendors.000 up to VOR Ceiling Price (if ceiling price greater than $750. 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.2.

000 but may conduct procurements using their own policies. the ministry must conduct an open competitive procurement or seek appropriate approval to exceed the ceiling price. The Daily Commercial News may also be used for construction related procurements. Ministries may use an invitational competitive procurement for Consulting Services valued up to $100.Ministries Ministries must select and use the appropriate procurement method dependent on the type and value of the procurement.include appropriate selection criteria.2 Goods Procurements Ministries are encouraged to conduct an open competitive procurement for goods with an estimated value of up to $25. 5.5.000 or more. processes and procedures provided they are in accordance with the principles of this Directive. Ministries should verify the approved ceiling price in the VOR User Guide available on MyOPS Supply Chain Management. As VOR Arrangement ceiling prices can vary. An open competitive procurement is achieved by issuing procurement documents using Ontario’s electronic tendering system. Ministries must use an open competitive procurement for goods valued at $25. 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. processes.5. and procedures provided they are in accordance with the principles of this Directive.000 but may conduct these procurement using their own policies. Ministries must note that: 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. an evaluation process and any other applicable VOR arrangement instructions and include the form of Agreement to be signed If the estimated procurement value exceeds the approved VOR Ceiling Price.5 Procurement Methods . Procurement Directive July 2009 15 . 5.1 Consulting Services Procurements A competitive process must be used for all Consulting Services irrespective of the value of the procurement.5. Ministries must use an open competitive procurement for Consulting Services valued at $100.000. 5.3 Non-Consulting Services Procurements Ministries are encouraged to conduct an open competitive procurement for nonconsulting services with an estimated value of up to $25. 5.000 or more.

000 or more.5.000 or more for goods.5. These exceptions adhere to Ontario’s Trade Agreements and represent the only allowable circumstances where a non-competitive process may be used.000 and non-consulting services valued at or over $100.000 or more and for all Consulting Services irrespective of value. Where no allowable exception exists. the Ministry must seek prior MBC approval of an exemption to this directive. Non-competitive procurement processes include single and sole source procurements. This approval must be secured prior to conducting the non-competitive procurement.Ministry may use an invitational competitive procurement for non-consulting services valued at up to but not including $100. Exceptions exist whereby Ministries are allowed.000.4.6 where an unforeseen situation of urgency exists that prevents the ministry from seeking appropriate procurements approvals. Where Ministries wish to use a non-competitive procurement process. subject to appropriate procurement approval authority.1 Allowable Exceptions – Consulting Services The following are allowable exceptions for the non-competitive procurement of Consulting Services subject to appropriate procurement approvals: a) Where an unforeseen situation of urgency exists and the Consulting Services cannot be obtained by means of a competitive procurement process. Ministries must develop a business case and secure the appropriate procurement approvals in writing for all noncompetitive procurements valued at $25. Where approval is being sought for a non-competitive procurement to renew a Contract with an existing vendor.6). b) Where Consulting Services regarding matters of confidential or privileged nature are to be purchased and the disclosure of those matters through a competitive procurement process could reasonably be expected to compromise government confidentiality. for non-consulting services valued at $100.5. Ministries must seek MBC approval of an exemption to the Procurement Directive.000. Ministries must seek appropriate approvals prior to the contract end date and in sufficient time to permit an alternative procurement method. An unforeseen situation of urgency does not occur where Ministries have failed to allow sufficient time to conduct a competitive procurement process. 5. cause economic disruption or otherwise be contrary to the public interest.5. Procurement Directive July 2009 16 . Ministries must also see Section 5.4 Non-Competitive Procurements Except in unforeseen situations of urgency (see Section 5. but no allowable exception exists. to use a non-competitive process for goods valued at or over $25. 5. Ministries must use an open competitive procurement process for all non-consulting services valued at $100.

5. 5. asphalt compound and pre-mixed concrete for use in the construction or repair of roads. Compatibility with existing products may not be allowable if the reason for compatibility is the result of previous non-competitive procurements. cause economic disruption or otherwise be contrary to the public interest. in whole or in part. To ensure compatibility with existing products. c) Where a Contract is awarded under a co-operation agreement that is financed. 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. Where only one supplier is able to meet the requirements of a procurement in the following circumstances: i. Ministries must also see Section 5. services or construction cannot be obtained by means of a competitive procurement process. copyright and patent rights. gravel. e) Where a competitive procurement process could interfere with the government’s ability to maintain security or order or to protect human. animal or plant life or health. For the procurement of goods and services the supply of which is controlled by a supplier that is a statutory monopoly. Procurement Directive July 2009 17 . Where there is an absence of any bids in response to a competitive procurement process that has been conducted in compliance with this Directive.4. by an international organization only to the extent that the agreement includes different rules for awarding contracts. specifically in the case of sand.6 where an unforeseen situation of urgency exists that prevents the ministry from seeking appropriate procurements approvals. b) Where goods or non-consulting services regarding matters of confidential or privileged nature are to be purchased and the disclosure of those matters through a competitive procurement process could reasonably be expected to compromise government confidentiality. An unforeseen situation of urgency does not occur where Ministries have failed to allow sufficient time to conduct a competitive process. or to maintain specialized products that must be maintained by the manufacturer or its representatives.5.c) Where a competitive process could interfere with the government’s ability to maintain security or order or to protect human.2 Allowable Exceptions – Goods and Non-Consulting Services The following are allowable exceptions for the non-competitive acquisition of goods and non-consulting services subject to appropriate procurement approvals: a) Where an unforeseen situation of urgency exists and the goods. stone. such as exclusive licenses. d) e) ii. animal or plant life or health. to recognize exclusive rights.

vi. magazines or other periodicals.f) Where there is an absence of any bids in response to a competitive procurement process that has been conducted in compliance with this Directive. but not for routine purchases. iv. Where no allowable exception exists. For the purchase of real property. For the procurement of original works of art. 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. For a Contract to be awarded to the winner of a design contest. experiment. or to maintain specialized products that must be maintained by the manufacturer or its representatives. The Ministry must identify the mandatory requirement(s) from which it is seeks to be exempted. and the type of procurement process(es) used. to recognize exclusive rights. For the purchase of goods under exceptionally advantageous circumstances such as bankruptcy or receivership. c) d) e) Procurement Directive July 2009 18 . The allowable exception which has been identified to support the non-competitive procurement. ix. vii. For allowable exceptions where only one vendor is able to meet the requirements Ministries must include documentary evidence supporting this exception. Non-Competitive Procurements Business Case Requirements ii. xi. For work to be performed on property by a Contractor according to provisions of a warranty or guarantee held in respect to the property or original work. an exemption to the Procurement Directive must be sought. v.5. viii. For the purchase of goods on a commodity market. The rationale must support the permissible exception or exemption being requested. For the procurement of subscriptions to newspapers. g) Where only one supplier is able to meet the requirements of a procurement in the following circumstances: i. A description of the proposed non-competitive procurement process including the approximate value and the estimated Agreement start and end dates. such as exclusive licenses. copyright and patent rights. The rationale for using a non-competitive procurement process including the circumstances that prevent the use of a competitive procurement process. 5. iii. For work to be performed on or about a leased building or portions thereof that may be performed only by the lessor. study. To ensure compatibility with existing products. For the procurement of goods and services the supply of which is controlled by a supplier that is a statutory monopoly.5 Written documentation for non-competitive procurements must include: a) b) A description of the business requirements. x. For the procurement of a prototype or a first good/service to be developed in the course of research. or original development but not for any subsequent purchases.

Other Included Entities must seek prior Procurement Directive July 2009 19 . 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.6. Other Included Entities must use an open competitive procurement for Consulting Services valued at $100.Other Included Entities Consulting Services Procurements A competitive process must be used for all Consulting Services. Any other matters considered relevant. A description of how the Ministry will ensure it will comply with the principles of the Procurement Directive. and an assessment of all potential vendor complaints and how the ministry would respond and manage these complaints.1 subject to approval as defined in Section 5. but no allowable exception exists.f) A description of the potential pool of vendors that might have responded to a competitive procurement. a description of how the Ministry will meet these business requirements. irrespective of the value of the Contract.6 5. Ministries must promptly notify the Secretary of MBC and report back to MBC on the circumstances and justification of the urgency once the situation of unforeseen urgency is under control.000. Where a non-competitive procurement process is required. Other Included Entities may utilize the allowable exceptions for non-competitive procurement processes for Consulting Services as defined in Section 5. The impact on the business requirements if the non-competitive procurement is not approved. g) h) i) j) k) 5.000 or more.4.1 Procurement Methods . using a competitive procurement process. Other Included Entities may use an invitational competitive procurement for Consulting Services valued up to $100.5. where appropriate. Any alternatives considered. 5. The report back must include a description of the selection process and results.6 Non-Competitive Procurements for Unforeseen Situations of Urgency Where a non-competitive procurement is required due to an unforeseeable situation of urgency that cannot wait for a regularly scheduled SCLC or TB/MBC meeting.5.8. If appropriate. in the future. Ministries may conduct the procurement prior to obtaining the appropriate approvals. An unforeseen situation of urgency does not occur where Ministries have failed to allow sufficient time to conduct a competitive process. particularly value for money.

Supply Chain Leadership Council (SCLC) or Treasury Board/Management of Cabinet (TB/MBC) depending on the procurement value.5.4.7 Procurement Approvals .2. Requests for procurement approvals.6. processes. Where Ministries have established that an Agreement Ceiling Price increase is required.1 Consulting Services Procurement Approvals For approval purposes.8. the procurement method.6 for requirements specific to follow on agreements. Ministries must not take any actions to reduce the value of procurements to avoid approval authority requirements. This includes the allowable exceptions for the noncompetitive acquisition of goods and non-consulting services as defined in Section 5. The Agreement Ceiling Price must reflect the total value of the Agreement including potential follow-on Agreements. procurements.6. It is acknowledged that Agreement Ceiling Price increases may be required over the term of an Agreement. a ceiling price must be established in the Agreement with a successful vendor(s). Procurement approvals may be required from within a ministry in accordance with the ministry’s Financial Delegations of Authority (DOA). they must seek prior written approval from the appropriate delegated authority.1. Such actions could include subdividing projects. Ministries are encouraged to avoid such increases through appropriate procurement planning. For Consulting Services Agreements.2 Goods and Non-Consulting Services Procurements Other Included Entities are encouraged to conduct an open competitive procurement for all goods and non-consulting services but may conduct these procurements using their own policies.1 Approval Authority Except in unforeseen urgent situations as identified in Section 5. The Agreement Ceiling Price cannot exceed the Procurement Value identified in the procurement approval. noting Procurement Directive July 2009 20 . Ministries must refer to Section 8. must be in writing. 5. Once established.7. All unfunded Ministry procurements require TB/MBC approval.5. and procedures provided they are in accordance with the principles of this Directive.7. Ministries must seek the necessary approval authority for all procurements prior to conducting the procurement including those establishing or using a VOR arrangement(s).Ministries 5.approval from the most appropriate approval authority as determined by their procurement policy and subject to approval as defined in Section 5. 5. Ministries should anticipate future needs and include potential follow on agreements as part of the Procurement Value. and whether the procurement activity is funded or unfunded. or Contracts and awarding multiple consecutive Contracts to the same vendor. 5. Ministries are not permitted to make changes to the Agreement Ceiling Price unless allowed by contractual provisions. and any necessary subsequent approvals such as for Procurement Value Increases.

If so. Funded Ministry procurement approval requirements for Consulting Services are as follows: Procurement Method Invitational Competitive Open Competitive Value $0 up to but not including $100. 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. When the increase will cause the total value of the Agreement to reach or exceed $1M. changes to the Agreement Ceiling Price must not be made until the Ministry has sought new procurement approval authority as appropriate.000.000 $500. TB/MBC approval is required.000 up to but not including $1M $1M or more $750.000 $0 up to but not including $1M $1M up to but not including $10M $10M or more $0 up to but not including $500. Ministries and Other Included Entities must determine whether the increase causes the total Procurement Value to exceed the original procurement approval.000 up to but not including $1M $1M or more Approval Authority Ministry DOA Ministry DOA SCLC TB/MBC Deputy Head Minister SCLC TB/MBC Deputy Head Minister TB/MBC Submission Approval Ministry DOA Ministry DOA Deputy Head Minister Ministry DOA Deputy Head Minister Minister Deputy Head Minister Non-competitive Ceiling Price Increases Procurement Directive July 2009 21 . Prior to implementing a ceiling price increase. 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.that Ministries must secure both Deputy Head and Minister approval when the increase will cause the total value of the Agreement to reach or exceed $750. In seeking written approval.

000 $25.000 $25.000 up to but not including $1M $1M up to but not including $10M $10M or more $25.7.1.2 Goods Procurement Approvals Funded Ministry procurement approval requirements for goods are as follows: Procurement Method Ministry Process Open Competitive Value Up to $25.000 $25.1.000 up to but not including $1M $1M or more Procurement value exceeds VOR Arrangement ceiling price Approval Authority Ministry DOA Ministry DOA Ministry DOA SCLC TB/MBC Ministry DOA TB/MBC TB/MBC Submission Approval Ministry DOA Ministry DOA Ministry DOA Deputy Head Minister Ministry DOA Minister Minister Non-competitive VOR Arrangement Procurement Directive July 2009 22 .000 up to but not including $100.3 Non-Consulting Procurement Approvals Funded Ministry procurement approval requirements for non-consulting services are as follows: Procurement Method Ministry Process Invitational Competitive Open Competitive Value Up to $25.000 up to but not including $1M $1M up to but not including $10M $10M or more $0 up to but not including $1M $1M or more Procurement value exceeds VOR Arrangement ceiling price Approval Authority Ministry DOA Ministry DOA SCLC TB/MBC Ministry DOA TB/MBC TB/MBC Submission Approval Ministry DOA Ministry DOA Deputy Head Minister Ministry DOA Minister Minister Non-competitive VOR Arrangement 5.5.7.

c) d) e) f) g) h) i) iii. Proposed Agreement start and end dates. Description of how the ministry will ensure the incumbent vendor does not have an unfair advantage in this procurement. Proposed release date of the procurement documents. iv.7.3 Supply Chain Leadership Council Approval Authority For procurements where approval authority is within the Supply Chain Leadership Council’s approval threshold. Program and controllership contact information. Procurement title and description including how the procurement supports the ministry’s business requirements. Procurement Directive July 2009 23 . including any proposed Agreement extension periods.3) including any proposed extension periods. j) Description of all known risks associated with the procurement and the proposed mitigation strategy that will be used. Name of the incumbent vendor(s). Estimated total Procurement Value (Section 5. Where there is an incumbent vendor(s): i.7.2 Ministry Approval Authority For procurements where approval authority is within the ministry’s approval threshold. Deputy Heads may delegate authority to an appropriate ministry official(s) for procurements valued within ministry approval authority except for non-competitive consulting services. Ministries must submit a written business case that includes the following information: a) b) Ministry name. Deputy Heads may not delegate approval authority for noncompetitive Consulting Services procurements. 5. division and branch. Ministries must refer to their own ministry financial delegations of authorities and processes. ii. Proposed procurement method.5. Description of potential pool of vendors. The number of years the incumbent vendor(s) has had an Agreement to provide the goods/services being procured. Ministries must identify the key contact for the submission who may be contacted for more information. The procurement method used to select the incumbent vendor(s).

For goods and non-consulting services. 5. Submissions from classified agencies must be signed by the Deputy Minister of the oversight ministry. Additional information on SCLC is available on MyOPS Supply Chain Management.5. Deputy Heads may not delegate this authority. Ministries must refer to the Ministry of Finance.7. Ministries do not have to submit a separate SCLC business case.7. confirmation that the ministry has addressed or will address any Financial Administration Act considerations. and/or the Information Technology Project Approval Committee (ITPAC). Procurement Directive July 2009 24 .5. If applicable. the OCCIO. However. For procurements that require TB/MBC approval authority. Ministries should refer to the I&IT Directive and Operational Policy on the I&IT Project Gateway Process to determine appropriate IT related approvals. the procurement approval authority framework must reflect the procurement method and procurement value and assign authority to the most appropriate accountable authority in the agency as determined by the Board of Directors. Submissions to TB/MBC must be signed by the Minister 5. Any other relevant information in support of the procurement.8 Procurement Approvals – Other Included Entities Other Included Entities must include a procurement approval authority framework in their procurement policy.k) For non-competitive procurements. business cases must also be signed by the appropriate Cluster Chief Information Officer. Ministries must include in their MB20 submission the same information that would otherwise be included in the SCLC business case. SCLC business cases must be signed by the Deputy Minister and Minister. 5. l) m) For goods. For non-competitive Consulting Services irrespective of value.5 Information Technology Approvals In addition to the procurement approval. and competitive Consulting Services SCLC business cases must be signed by the ministry’s Deputy Head. Treasury Board Office intranet portal for more information on TB/MBC submissions.4 TB/MBC Approval Authority For any procurement that does not meet the criteria for approval under delegated authority. non-consulting services. Ministries must submit an MB20 submission for TB/MBC review. completion of the written requirements described in Section 5. IT projects that contain a procurement component may also require approvals from the Cluster CIO. For IT related procurements.

Such actions could include subdividing projects. procurements. 6 PROCUREMENT PROCESS 6. or Contracts and awarding multiple consecutive Contracts to the same vendor.For Consulting Services. Ministries must not apply mandatory participation of vendors in the research and consultation process as a condition for future bidding and must not solicit or accept formal submissions from vendors during the consultation process.000 Any Value $0 up to but not including $100. This consultation process must be conducted solely for information gathering purposes or to market test a proposed procurement scope.000 up to but not including $1M $1M or more Approval Authority Agency DOA Agency DOA Agency DOA Deputy Head Minister TB/MBC Submission Approval Agency DOA Agency DOA Agency DOA Agency DOA Deputy Head Minister Other Included Entities must not take any actions to reduce the value of procurements to avoid approval authority requirements. the specifications must deal with performance requirements and exclude all features that could unfairly confer an advantage to certain vendors. When the use of non-generic and/or non-functional terms is appropriate.1 Research and Consultation Ministries may decide to engage in a vendor consultation process prior to initiating a competitive procurement process such as issuing a Request for Information or draft Request for Proposal.Ministries To enable fair comparison of vendor submissions. Such standards must have been established through a prior competitive process or otherwise approved by the Management Board of Cabinet or the Information Technology Standards Council Procurement Directive July 2009 25 . For IT procurements. Ministries must include in all procurement documents the following information: a) A description of the needed goods or services in generic and/or functional terms specific to the business needs that the good or service will serve. procurement documents must be in writing and include sufficient details concerning the submission requirements. the procurement approval authorities of Other Included Entities are as follows: Procurement Method Invitational Competitive Open Competitive Non-competitive Value $0 up to but not including $100.000 $100. 6. approach and process. Ministries may express requirements in terms of corporate or ministry Information Technology standards as an alternative to functional terms.2 Procurement Documents .

Ministries must not unduly favour an incumbent vendor or unduly disadvantage non-incumbent vendors. if appropriate. Procurement Directive July 2009 26 . require prospective vendors participating in a procurement process to declare any actual or potential conflict of interest. quantity. delivery. Conflict of interest provisions that: i. by an order of a court or tribunal otherwise required at law. financial capacity of the vendor and any other criteria directly related to the procurement may be taken into account. The address.b) Full disclosure of the evaluation criteria and process to be used in assessing submissions. reserve the right of the ministry to solely determine whether any situation or circumstance constitutes a conflict of interest.000 or more and services valued at $100. In addition to bid price/cost. c) d) e) f) g) h) i) j) ii. if appropriate. In establishing the evaluation criteria and weighting of conversion costs. Tax compliance declaration that the vendor’s Ontario taxes are or will be in good standing prior to signing an Agreement. reserve the right to disqualify prospective vendors from a procurement process due to conflict of interest. define conflict of interest to include situations or circumstances that could give a vendor an unfair advantage during a procurement process or compromise the ability of a vendor to perform its obligations under the Agreement. date and time limit for submitting responses to procurement documents. a statement that the procurement is subject to Ontario's Trade Agreements. Ministries must assess conversion costs.000 or more. 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). iv. telephone number and location of the person to contact for additional information on the procurement documents. The tax compliance declaration form and related guidelines are available on MyOPS Supply Chain Management. For goods valued at $25. Responses received after the closing date and time must be returned unopened. iii. For IT procurements. Conditions that must be met before obtaining procurement documents such as confidentiality agreements. servicing. Ministries must pay particular attention to apply the maximum justifiable weighting to price/cost as part of the evaluation criteria. experience. The name. The time and place of the opening of the responses in the event of a public opening. quality.

000 for goods and at or above $100. l) m) Ministries must consult with legal counsel regarding their procurement documents including the implementation and application of updated Agreement terms and conditions. Procurement Directive July 2009 27 .com) to provide electronic tendering services to the Ontario Government. As appropriate mechanisms for amending the Agreement from time to time should be included. The Ministry of Government Services has established an Agreement with MERX™ (www. and allow the Agreement to be terminated where a conflict of interest cannot be resolved.000 for services. In addition to the electronic tendering system. k) The form of Agreement the successful vendor(s) is expected to sign.v.merx. viii. vii.2 as appropriate. Other information as deemed appropriate. reserve the right to prescribe the manner in which a vendor should resolve a conflict of interest. Ministries must use Ontario’s electronic tendering system as established by the Ministry of Government Services.4 Electronic Tendering Ministries and Other Included Entities must use electronic tendering for open competitive procurements valued at or above $25. Other mandatory policy requirements as appropriate. Ministries must consult with Supply Chain Management or the MERX™ site to confirm posting requirements. 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. Appropriate termination clause(s) must be included in Agreements. 6. Ministries may also advertise in a national newspaper accessible to all Canadian suppliers or the Daily Commercial News for construction related procurements. Ministries must use MERX™. ix. require vendors to avoid any conflict of interest during the performance of their contractual obligations for the ministry. 6. require vendors to disclose any actual or potential conflict of interest arising during the performance of an Agreement.3 Procurement Documents – Other Included Entities Other Included Entities are encouraged to adopt the information requirements for Procurement Documents noted in Section 6. Certain standard elements must be included in the different forms of procurement documentation that are posted. vi.

000 and a minimum of 30 calendar days for procurements assessed as complex/high risk procurements. including alternative service delivery. 6.mandatory requirements. and any other criteria directly related to the procurement. 6. including sub-weights.7 Evaluation Process Ministries and Other Included Entities must evaluate the bid responses received consistently and in accordance with the evaluation criteria. delivery. rating and methodology set out in the procurement document. quantity. servicing.5 Bid Response Time Sufficient time must be given to vendors to prepare and submit bid responses. 6. Where a vendor is disqualified for non-compliance of a mandatory requirement or fails to meet a minimum rated requirements score. goods valued at or over $25. experience. clarification or modification of the procurement documents must be provided in the same manner as the procurement document via an amendment or addendum and must be released in sufficient time prior to the submission deadline to allow bidders sufficient time to submit a responsive bid. for rated requirements. but is not limited. The evaluation of price/cost must be undertaken after the completion of the evaluation of the mandatory requirements and any other rated criteria. A full disclosure of the evaluation methodology and process includes. no further evaluation must take place. Other Included Entities are encouraged to utilize the bid response times recommended for Ministries. to: a) A clear articulation of all mandatory requirements. Procurement Directive July 2009 28 . Typically. an evaluation process is comprised of three components . which must indicate if the mandatory requirements will be assessed on a pass/fail basis and indicate how vendors achieve a passing grade.000 and non-Consulting Services valued at or over $100. Ministries must provide vendors a minimum response time of 15 calendar days for Consulting Services at any value. The submission deadline may be extended to ensure sufficient time is provided to bidders.Other Included Entities are encouraged to utilize the electronic tendering system as established by the Ministry of Government Services but may establish their own method of electronic tendering. 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. as identified in the procurement document. rated requirements and price/cost. The evaluation process to be used in assessing a vendor’s submission must be fully disclosed. financial capacity of the vendor. b) All weights.6 Additional Information Any additional information.

11). 6. oral interviews.8. Ministries must: a) Provide a general overview of the evaluation process set out in the procurement document. 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. Vendors have a right to a debriefing only after the legal Agreement between the successful vendor(s) and the Ontario Government has been signed.000 or more. d) Ensure that the same participant(s) from a ministry participate in every debriefing conducted.2 Conducting Vendor Debriefings In conducting vendor debriefing meetings. including any minimum rated score requirements. Ministries must ensure that all vendors who participated in the procurement are offered an opportunity for a debriefing. in writing. to determine costs for specific volumes and/or service levels. In responding to procurement documents. d) The role and weighting. demonstrations and site visits. 6. 6. e) Descriptions of the price/cost evaluation methodology including the use of scenarios in the evaluation process. Following the evaluation process. alternative strategies or solutions proposed by a vendor must not be considered.1 Scheduling Vendor Debriefing Meetings In scheduling vendor debriefings.8. vendors may sometimes propose alternative strategies or solutions to the business needs or apply conditions to their responses. e) Retain all correspondence and documentation relevant to the debriefing session as part of the procurement documentation (Section 6.c) Description of any short-listing processes. 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. of reference checks.8 Vendor Debriefings For all procurements valued at $25. b) Confirm the date and time of the debriefing session in writing. c) Conduct vendor debriefings individually. Procurement Directive July 2009 29 . if applicable. Unless expressly requested in the procurement documents. and allow vendors sixty (60) calendar days following the date of the written communication to respond. Ministries must: a) Confirm the right to a debriefing.

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. must be responsibly and effectively managed. 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”. Ministries may provide the vendor’s evaluation scores and their evaluation ranking (eg. The Contract must be finalized using the form of Agreement/Contract that was released with the procurement document. Changes to the term of the Agreement may change the procurement value.10). they must be advised that a formal freedom of information request can be submitted to the ministry’s Freedom of Information and Privacy Office. as it may contain confidential third party proprietary information subject to the mandatory third party exemption under the Freedom of Information and Protection of Privacy Act (FIPPA). where applicable. address. In addition.9 Contract Management All procurement of goods and services and the resulting Contract. other than as specified above. of the successful vendor as well as the Agreement award notice information (Section 6. and total bid price. The term of the Agreement. Following the procurement process. Particularly for goods and services procured as part of an I&IT project. When executing the Contract. 3rd of 5). All Contracts must include appropriate cancellation or termination clauses and appropriate legal advice should be sought on the development of these clauses. d) Provide suggestions on how the vendor may improve future submissions. Extensions to the term of Agreement beyond what is set out in the procurement document are considered nonProcurement Directive July 2009 30 .b) Provide the name. Ministries must not disclose information concerning other vendors. In conducting vendor debriefings. c) Discuss the strengths and weaknesses of the vendor’s submission in relation to the specific evaluation criteria and the vendor’s evaluated score. 6. e) Receive feedback from the vendor on current procurement processes/practices. the responsibilities of both the Ministry and the successful vendor must be defined formally in a signed written Contract before the provision of the goods or services commences. f) Address specific questions and issues raised by the vendor in relation to their submission. Prior written approval by the appropriate approval authority is necessary before changing Contract start and end dates. and any options to extend the Agreement must be set out in the procurement document. the Ministry must obtain the vendor signature before obtaining the designated Ministry signature. If a vendor makes such a request. the use of Contract clauses that permit cancellation or termination at critical project lifecycle stages must be considered. If more than price is evaluated.

the name(s) of the successful vendor(s). Vendor performance must be managed and documented.10 Post Contract Award Notification For goods over $25. and any performance issues must be addressed. Knowledge transfer to ministry staff must take place. 6. Procurement Directive July 2009 31 . Meal and Hospitality Expenses Directive and General Expenses Directive.000 and services over $100. All required approvals must be obtained for any Procurement Value Increases and ceiling price increases or other changes in terms and conditions of the Agreement. in the same manner the procurement documents were posted. All assignments must be properly documented. Posting Contract award information does not apply to the second stage selection process when using a Vendor of Record Arrangement. Ministries must post. debriefing requests. Any overpayment must be recovered. audits and legal challenges in a relevant.competitive procurements and appropriate approval authority must be obtained prior to proceeding. Agreement start and end dates including any options for extension and the total Agreement value upon completion of the evaluation process and after execution of the Contract with the successful vendor(s). vendor inquiries. the following: a) a copy of the procurement justification or business case.11 Documentation and Record Retention Ministries must ensure that all procurement decisions and decision making processes are recorded to account for and support the re-construction of facts related to a procurement.000. and. Particular attention should be paid to the following in managing procurement Contracts: • • • • • • • All payments must be in accordance with provisions of the Agreement. manage procurement Agreements and documentation to ensure Ministries can respond to any requests for information. Ministries must: • • • establish a file naming convention that will permit related procurement documents to be associated with each other retain procurement records in compliance with the Government of Ontario Common Schedule for Administrative Records. comprehensive and timely fashion. reliable. Procurement process documentation includes. but is not limited to. All payments for applicable expenses must be in accordance with the Travel. where applicable. 6.

Procurement Directive July 2009 32 . o) information regarding the management of the vendor. undertaken in the development of the procurement business case and/or procurement documents. q) contractor security screening decisions. the tax compliance declaration and Ministry of Revenue tax compliance verification. information regarding the second stage selection process used to select the particular vendor of record. h) copies of all responses. s) evidence of receipt of deliverables. where applicable. g) information relating to compliance with the Ontarians with Disabilities Act. d) copies of all procurement documents used to qualify and select the vendor.b) information regarding all vendor consultations. where applicable. c) evidence that all required approvals were obtained. including how the vendor’s performance was monitored and managed and. i) j) information regarding any issues that arose during the procurement process. submissions. notices. f) copies of all advertisements of procurement documents. proposals and bids received in response to procurement documents including the conflict of interest declaration. where applicable. 2001 where applicable. and posted announcements. n) information regarding all changes to the terms and conditions of the Agreement. k) information regarding all vendor debriefings including written documentation of the offer of vendor debriefing where applicable. including any requests for information. information regarding all evaluations of submissions. l) copies of all award letters. mechanisms used to transfer knowledge from the vendor to staff. m) copies of the Agreement(s). t) any other documentation as identified. p) risk assessment information and recommendations. r) information regarding all disputes or vendor complaints regarding the procurement including any Agreement disputes. proposals and bids received in response to procurement documents. including any changes that resulted in an increase in the Agreement price. e) where the procurement was conducted through a Vendor of Record arrangement.

exclusions and dispute resolution. Ministries engaging in procurements to which the Trade Agreements do not apply.2 Tax Compliance For procurements with a value of $25.000 and services and construction valued at or over $100. to the: Agreement Review Officer Revenue Collections Branch Ministry of Revenue Facsimile (905) 433 6009 The Tax Compliance Declaration Form and related guidelines are available on MyOPS Supply Chain Management. must note that they are still be required to conduct the procurement in accordance with the requirements of this Directive. 7. buying groups. consult with the Ministry of Government Services’ Supply Chain Management Division. Procurement Directive July 2009 33 . Ministries must only enter into Contracts with vendors whose Ontario tax obligations are in good standing. 7.1 Ontario Trade Agreements Ontario is party to certain inter-provincial and national Trade Agreements and must conduct its procurements in a prescribed manner in order to adhere to these agreements. Ministries must comply with this directive. The Director. Prior to signing the Agreement. Other Included Entities that are subject to Ontario’s Trade Agreements must ensure that their procurement policy reflects the requirements of Ontario’s Trade Agreement as appropriate. including fax number. Ministries must fax a copy of the successful vendor’s Tax Compliance Declaration.000. Should this occur. The Trade Agreements apply to the acquisition of goods valued at or over $25. and contact information. The Ministry of Revenue will confirm the vendor’s tax compliance status within 3 to 5 days.6. Ministries must verify the tax compliance status of the successful vendor(s) with the Ministry of Revenue. Other Included Entities may be subject to Ontario’s Trade Agreements including requirements for contracting rules.12 Annual Reporting Ministries must maintain procurement records and develop annual reports related to Consulting Services and Ontario’s Trade Agreements. OTHER RELATED POLICIES 7. Ministries must refer to this written communication to confirm the information to be reported and the due date of each report. along with the name. Vendors must complete and submit a signed copy of a Tax Compliance Declaration form. Ministries will receive a written request from the Ministry of Government Services. Corporate Procurement Policy and Planning Branch. Each year.000 or more. Where requirements in the Trade Agreements differ to this directive. address. Ontario’s Trade Agreements describe the processes that are to be followed in case of disputes. Ministry of Government Services is the Provincial Co-ordinator for addressing such disputes.

7. 7. 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. Where appropriate. Any information that is to be released must comply with applicable privacy legislation. Ministries should refer to the Information Security and Privacy Classification Policy for more details on these requirements. Ministries and Other Included Entities must conduct a risk assessment that includes undertaking a Privacy Impact Assessment (PIA) and a Threat Risk Assessment (TRA). Ministries must refer to the Contractor Security Screening Operating Policy and/or consult with the Emergency Management and Security Branch. Where contractor security clearance is required. 7.5 Protection of Personal and Sensitive Information Prior to undertaking any procurement of goods and/or services that may result in the release of personal or sensitive information. their supply chain is not disrupted in a manner that will prevent the delivery of time-critical functions and services. Ministries must consider how the procurement(s) will affect their obligations under the Business Continuity Operating Policy and take appropriate measures to ensure that in a state of emergency. it is the obligation of the procuring ministry to ensure that clearance is received prior to signing an Agreement with a successful vendor 7. Procurement Directive July 2009 34 . Ministries are encouraged to contact their Business Continuity Co-ordinators to determine if their procurement supports time-critical functions and services.4 Business Continuity Planning When procuring goods and services. Ministry of Government Services prior to conducting a procurement to determine if contractor security clearance is required.7. 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 storage of personal information or program data.7 Public Opinion Polls and Market Research Studies Ministries must obtain the prior approval of the Cabinet Office before undertaking any procurement for the commissioning of any public opinion polls or market research studies and before adding any questions to a non-commissioned poll.6 Storage of Personal Information or Program Data Personal information or program data that is considered confidential and essential to the operation of programs or considered as medium-sensitive or highly-sensitive must be stored and processed in accordance with the Information Security and Privacy Classification Policy. The need for such assurances must be in the original procurement documents including the form of Agreement.3 Contractor Security Screening Contractor security clearance may be required for vendors selected to provide goods and services to the Ontario Public Service. If required.

The Ontarians with Disabilities Act. personal and sensitive data from information technology prior to disposing of the equipment.10 Disposition of Assets The Ministry of Government Services is designated as the mandatory central common service provider and has sole responsibility for arranging the disposal of government owned motor vehicles. government owned computers and all other assets and consumable supplies. the Transportation of Dangerous Goods Act. including the establishment of VOR arrangements. and recycling measures in the development of commodity specifications. Arrangements for the disposal of hazardous materials must comply with the regulations and requirements of the Occupational Health and Safety Act. the Government of Ontario shall have regard to the accessibility for persons with disabilities to the goods or service. This program provides assurance that the products bearing the EcoLogo™ certification mark meet stringent environmental criteria. All surplus. terms and conditions. All arrangements for the disposal of goods by sale must be equitable to potential buyers. Ministries must also consider the government’s Surplus Assets Services. Ministries must remove all confidential. Where applicable. Ministries must refer to www. 7. 2001 when acquiring goods and services. the Environmental Protection Act and any other rules and regulations that from time to time may apply. its employees or the public. 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. Prior to conducting any procurements.8 Ontarians with Disabilities Ministries must comply with the Ontarians with Disabilities Act.com for more information on the Federal Environmental Choice Program including the list of certified products and related certification standards.000.” Ministries must consider accessibility when procuring goods and/or services. Ministries must use the Federal Environmental Choice Program standards when acquiring goods and services valued at over $10. a mandatory central common service. 2001 requires that “in deciding to purchase goods or services through the procurement process for the use of itself.environmentalchoice.9 Environmental Considerations Ministries conducting procurements with an estimated Procurement Value over $10. procurement documents should specify the desired accessibility standard to be met and provide for the evaluation of proposals in respect of those standards. The Federal Environmental Choice Program includes more than 3000 certified products. The Federal Environmental Choice Program is characterized by the EcoLogo™ certification mark (three doves entwined to form a maple leaf). obsolete or unusable movable assets must be identified and. and Agreement award decisions.7. 7. re-use. must consider environmental reduction. avoid conflict of interest concerns by excluding government employees as buyers and optimize the revenue to the government. Procurement Directive July 2009 35 . regardless of value.000.

1 Purchasing Card Program The Purchasing Card is a mechanism for acquiring and paying for low dollar value goods and services. 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. maintenance and fuel for those using a fleet management system (these costs must be charged to the fleet management card). 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. Cardholders are responsible for informing merchants of this and ensuring that GST is not charged on their transactions.11. To help facilitate this. reduces petty cash and accountable advance usage and simplifies the purchase process for employees. Meal and Hospitality Expenses Directive. the Crown is liable for all charges. 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. interest. Although purchasing cards are issued in the name of the employee. 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. and Travel and travel-related expenses.11 Corporate Card Program 7. The purchasing card must not to be used for: • • • • • • Personal purchases including points or rewards programs. Cash advances. 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). Procurement Directive July 2009 36 . Cardholders are fully liable for all charges. fees. Computer software without prior IT Cluster approval. Ministries must follow the delegation of authority framework for their ministry to determine which employees will be approved for a purchasing card.11. 7. Use of the Purchasing Card reduces the administrative costs of payables associated with low dollar value purchases. Salaries and wages (except for Temporary Help Services).2 Travel Card Program The Corporate Travel Card is a charge card that enables eligible public servants as well as employees and appointees of agencies classified under the Agency Establishment and Accountability Directive. The Purchasing Card must be used for low dollar value purchases.7. to pay for expenses incurred while travelling on approved business. avoids GST payment on most low dollar value purchases. improves cash flow and accounts receivable status for vendors. Expenses for fleet vehicles including repairs.

engineering. exploratory drilling services. the provision of advisory services to provide policy options. interior design. including aligning their technology strategy with their business or process strategy). primarily through the analysis of existing problems and development of plans for improvement.e. temporary help services. 7. and communication consulting (i. activities related to actuarial science. This includes organizational change management assistance and strategy development. community planning. research and development (i.13 Domestic Steel To support domestic steel vendors. procurement evaluation processes may include a price preference of 10% for Canadian steel products identified in vendor proposals submitted in response to construction procurement tenders with an estimated total Contract value of $100.e. training/education instructors. appraisal. rail tickets. social sciences). helping Ministries improve their performance. and aerial photography.e.e. realty. information technology consulting (i.The Crown has corporate liability for all airfare. Ministries must adhere to the following requirements specific to Consulting Services. and travel management transaction fees which will be charged to a diversion account. for example. services for the operation and maintenance of a facility or plant.e. 8 CONSULTING SERVICES In addition to the mandatory requirements set forth in Section 5. Advisory services that help clients assess different technology strategies. employment/ placement. water-testing services. investigative study for the purpose of increasing the available store of knowledge and/or information on a particular subject). 7.12 Asset Management Ministries must establish and maintain appropriate systems to enable the effective management and security of assets procured by government.e.000 or more. Consulting Service refers to the provision of expertise or strategic advice that is presented for consideration and decision-making such as: • management consulting (i. the provision of strategy and advice in conveying information through various channels and media).). analysis and evaluation). Procurement Directive July 2009 37 . health sciences. technical consulting (i. surveying. including the periodic physical verification and reconciliation of moveable assets at least once every four years and consumable supplies at least once every two years. policy consulting (i. • • • • • Consulting Services do not include services in which the physical component of an activity would predominate.

Ministries must document their prior consideration of using internal ministry resources as part of the procurement documentation if a decision is made to use Consulting Services. only Deputy Heads can provide this written approval. Ministries must seek prior written approval from their Deputy Head of the selected vendor and the proposed Agreement before the proposed Agreement is signed. For Consulting Services valued at or above $750. monitor and control the combined efforts of internal and external resources to ensure satisfactory completion of consulting assignments on schedule and within budget. 8. For Consulting Services Agreements valued at or above $100. engineers. chartered accountants.Consulting Services do not include any licensed professional services provided by medical doctors.1 Approval of Vendor Selection For Consulting Services valued at or above $100. Consulting Services assignments must have a start and end date. 8. and. progress reporting. veterinarians. to an appropriate official of the ministry. Deputy Heads may delegate this authority. background. Ministries shall co-ordinate. architects. Contracts must be made with. . pharmacists.2 Terms of Reference Clear terms of reference for the consulting assignment. knowledge transfer requirements must be established. or with the written concurrence of. a transfer of knowledge must occur from consultant to staff to avoid a continuous reliance on consultants. nurses.000 and up to $750. the terms of these Contracts must cover the full cost of the research. staff responsibilities. colleges or their staff.4 Agreements with Universities and Colleges For research and development projects involving universities. may affect the Procurement Value. Payments must be made to the administration or to another party only with the written concurrence of the administration. including the end date of the Agreement.3 Assignment Substantiation External Consulting Services must not be procured when existing internal resources are available for the assignment.000. constraints. including appropriate allowances for indirect and overhead costs. 8. approval requirements.000.000. In addition. dentists. land surveyors. the university/college administration. where applicable. Other Included Entities are required to obtain appropriate approvals in accordance with their MBC approved governance structure for procurement controllership 8. scope. Any change to a Consulting Services Agreement. When applicable. tangible deliverables/results. lawyers and notaries in their regulated capacities. including: objectives. in writing. timing. Ministries must ensure they have prior appropriate approval authority in this regard. Procurement Directive July 2009 38 .

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. size. 8. The terms of the original Agreement were fulfilled and vendor performance was satisfactory. These requirements apply whether licensing. leasing or purchasing IT. Procurement approval authority has been based on the total value of the work in the original Agreement and the follow-on Agreements. For the purposes of this section. traffic lights).5 Unsolicited Research Proposals Ministries may accept unsolicited research proposals that conform to other elements of administrative policy in cases where the government’s interests would not be better served by calling for competitive proposals for the project. Follow-on Agreements allow a Ministry to structure a procurement into several smaller portions for reasons of complexity. engine analysers).g. laboratory instrument monitoring systems.g. removable disks). uncertainty or improved management control. The procurement documents for the original work disclosed the total potential scope of work to be completed. renting. diagnostic tools (e. The appropriate procurement method was used for the original Agreement such as a VOR arrangement or an open competitive procurement. 39 Procurement Directive July 2009 . information technology does not include the following specialized single-purpose equipment such as computerized equipment used exclusively for: • • • • • • medical and scientific research.6 Follow-On Agreements A follow-on Agreement is one that follows and is related to an already completed Agreement. 9 INFORMATION TECHNOLOGY In addition to the mandatory requirements set forth in Section 5.8.g.g. and general information technology supplies (e. sensing devices (e. thermostats). does not exceed $750.000 and where an open competitive procurement or VOR arrangement has been used to select a vendor. Ministries must adhere to the following requirements specific to IT. process-control systems (e. Subsequent purchases of these services must be through an appropriate competitive process in accordance with the provisions of this Directive. Follow-on Agreements are permitted only for Consulting Services where the total value of all Agreements. 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. Deputy Head approval in writing must be obtained before entering into an Agreement and all such Agreements must be documented.

provided that such ministry standards do not conflict with corporate information technology standards and that they are established on the basis of a fair.9. prior to the acquisition of information technology including determination of exemption status. However. In this regard. leasing) for the proposed information technology. requirements must be documented in functional terms and examine and record the fit of potentially suitable software to functional requirements. Ministries must consider the value of all related services over the period of time that the ministry requires the COTS products. 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 Procurement Directive July 2009 40 . In a competitive evaluation. architectures and standards unless specifically exempt.3 Information Technology Standards Ministries must comply with all applicable enterprise-wide corporate information technology standards. prior to conducting an open competitive process.000.2 Alternative Financing Where the estimated total Contract value of a procurement is $1M or more. and related policies. open and transparent competitive process or are otherwise approved by MBC or the Information Technology Standards Council. Ministries must not sub-divide any of these costs when determining the Procurement Value. Ministries must first determine if a ministry Agreement or Volume Licensing Agreement is available. For procurement approval authority purposes. Ministries must refer to the I&IT Directive. Ministries must comply with the supply source requirements.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.5 Commercial-Off-The-Shelf (COTS) Products and Related Services Ministries must follow specific requirements that apply to the acquisition of COTS products and related services when the Procurement Value is expected to exceed $25. 9. Ministries may establish ministry information technology standards that apply to the ministry only. The software product that meets the documented functional requirements and has the lowest evaluated costs is the preferred product.1 Acquisition of Information Technology All ministry acquisition of information technology shall conform to applicable corporate and ministry policies. Ministries must consider alternative financing arrangements (eg. 9. When procuring COTS. 9. 9. All relevant costs and benefits must be considered.

Ministries must review the VLA User Guide.1. For non-competitive COTS products acquisitions valued at less than $25. Where COTS products are not available through VOR arrangements or ministry Agreements.000. but not limited to. ministry Agreement.6 Custom Software Development With defined exceptions. Ministries must consider the use of VLAs. 9. Ministries may consider the use of VLAs. Ministries seeking an allowable exception to conduct a non-competitive procurement for the purposes of compatibility must note that COTS products are considered compatible if they are interoperable and the exchange of data between software packages and/or hardware infrastructure is possible and complete with minimal adjustment and without data corruption. appropriate procurement approval authority. 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.7 Open Source Software Open source software solutions and proprietary software solutions that contain open source software elements must be acquired in a manner that is consistent with the Procurement Directive July 2009 41 . such as training or implementation costs related to the use of a new COTS product(s). Ministries must obtain prior written approvals to procure COTS products through a competitive procurement or competitive evaluation. copy and distribute COTS products within the Ontario Public Service. Ministries must obtain approval from their Cluster CIO to invoke an exception for Crown ownership of intellectual property rights in custom software procurements (see Guidelines for Ownership of IP in Custom Software Development). VLAs may include COTS products that have been previously selected in accordance with Section 7. Ministries must conduct an open competitive procurement or competitive evaluation in compliance with this Directive including. or VLA. Monetary considerations. Ministry Agreements must have been established through a prior competitive process or otherwise approved by the MBC or the Information Technology Standards Council. they must do so in compliance with this Directive. and where appropriate. 9. Where Ministries are unable to acquire COTS products through a VOR arrangement. within the Broader Public Service. Ministries must note that VLAs have not been established using an open competitive process and are not considered a substitute for competition. Ministries must follow the requirements of the VOR or Ministry User Guide.Where COTS products are available through VOR arrangements or ministry Agreements. but not limited to. Ministries must conduct a full technical review of product interoperability to demonstrate this requirement. Ministries must also comply with all VLA terms and conditions including. Ministries must consider VLAs. VLAs have been established with certain COTS vendors to take advantage of discounts and the right to use. Prior to using a VLA. Where COTS standards have been established in accordance with Section 7. are not sufficient justification for a non-competitive procurement process. reporting and audit requirements.1. Ministries must also follow the Checkpoint 1 for Acquired Solutions Guideline Where Ministries seek to conduct a non-competitive procurement of COTS products. suppliers may own the intellectual property rights in custom software procurements.

To maximize alignment with the business objectives. or improved management control but not to circumvent approval authorities. they must be engaged throughout the entire procurement process. do not require an open competitive procurement to complete the purchase since this is the completion of an existing procurement process. Ministries must adhere to the following requirements specific to Large Projects. The project procurement plan must be appropriate to and aligned with the key business objectives of the project and provide sufficient detail of all required procurements to successfully meet the key business objectives. the Information & Information Technology Directive and the MGS Operating Policy on Open Source Software 9. Ministries must consult with legal counsel regarding their procurement documents including the implementation and application of updated Agreement terms and conditions. When developing the project procurement plan.Procurement Directive. uncertainty. Ministries must also consider the use of a Fairness Commissioner to ensure the consistent application of the procurement processes.10 Lease-Purchase Agreements Goods that are the subject of a lease-purchase Agreement. In this regard.9 Agreement Terms and Conditions Ministries must implement and consistently apply updated Agreement terms and conditions in IT procurement documents that are made periodically to align with changes to government policy. Ministries must ensure that a procurement plan is developed and implemented. For already installed software or hardware. Ministries must refer to the MyOPS Supply Chain Management to access templates/Agreement precedents. Procurement Directive July 2009 42 . where maintenance and/or support was not included in the procurement approval or where maintenance and/or support services will expire. 10 LARGE PROJECTS In addition to the requirements set out in the Procurement Directive. 9. size.1 Procurement Planning for Large Projects When undertaking procurements related to complex projects involving either IT and/or significant transformation of ministry business processes and operations. Where Ministries use a Fairness Commissioner. 9. the procurement experts should play an advisory role to the project team. the procurement(s) should be conducted by project team members responsible for both project delivery and Agreement management and supported by procurement experts. Ministries must ensure that all of the mandatory requirements of this Directive are addressed.8 Maintenance and Support Ministries must include the acquisition of maintenance and/or support over the estimated life of the IT installation as part of the Procurement Value. Ministries may consider sub-dividing a project-related procurement(s) into several smaller procurements for the purposes of complexity. 10. where payments are partially or totally credited to the purchase. Ministries must seek the appropriate procurement approvals for the balance of the intended installation period or next anniversary of the installation when maintenance and/or support will be required.

Ministries must also ensure all interested vendors have access to the same information made available to the successful design vendor(s). whereby the same vendor would provide both design and build services. 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 ensure that the procurement documents. Where Ministries conduct separate procurements for the design phase and the build phase of a project. 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. This can be accomplished by conducting a single procurement with the build phase being subject to the successful completion of the design phase or by conducting separate procurements. iv. clearly outline the criteria by which satisfactory completion will be measured.Ministries must also refer to MyOPS. ii. Ministries must consult with. Procurement Directive July 2009 43 . ministry legal counsel regarding the appropriate completion and approval criteria for the procurement. As appropriate.2 Separation of Design and Build in Procurement Process For procurements that involve design and build phases. 10. Ministries must separate these phases in the procurement process. Project Management Centre of Excellence (PMCOE) and the Office of the Chief Corporate Information Officer intranet site for more information on managing Large Projects in the OPS. Approve exemptions from the mandatory requirements contained in this Directive. Periodic review of this directive to ensure it continues to serve the government’s procurement strategy. and provide direction to. Ministries must ensure that appropriate design review and approval by the project governance structure occurs prior to proceeding to the build stage. iii. Ministries are encouraged to allow the successful design vendor(s) to bid on the build phase. Approve unfunded and/or non-competitive procurements valued at $1M or more and all procurements valued at $10M or more for Ministries. especially the Agreement. Where Ministries determine it appropriate to conduct a single procurement. Ministries must validate the satisfactory completion of the design phase before proceeding with the build phase. Approve non-competitive Consulting Services procurements valued at $1M or more for Other Included Entities. 11 RESPONSIBILITIES Management Board of Cabinet i. 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.

the use of all noncompetitive procurement processes for Consulting Services irrespective of value for Ministries. consumable supplies returned for credit or where specific legislation to the contrary exists.000 and up to $1M or more for Other Included Entities. Administer Ontario’s Trade Agreements. vi. viii. Sponsor and co-ordinate government wide initiatives to achieve improvements in the planning. in conjunction with the Deputy Head. Support the Minister of Government Services in the administration of Ontario’s Trade Agreements including receiving and directing complaints relating to Ontario's Trade Agreements to the appropriate ministry or ministries for response and resolution. ii. iv. Approve in writing. acquisition and management of goods and services. Deputy Minister of Government Services i. Approve in writing. Procurement Directive July 2009 44 . iv. iii. Agreement ceiling price increases for Consulting Services that would cause the total Agreement value to reach or exceed $750. any submissions to TB/MBC. in conjunction with the Deputy Head. Approve in writing. the use of all noncompetitive procurement processes for Consulting Services valued at $100. Maintain appropriate procurement mechanisms including electronic tendering systems as central common services to Ministries. Evaluate the effectiveness of this Directive and make recommendations to Management Board of Cabinet on required changes to this Directive. Periodically make recommendations to MBC on updating this Directive. Receive. ii. Provide. iii. Ministers i.Minister of Government Services i. assistance to Ministries in the development of the appropriate organization structures and processes to facilitate the planning.000. v. Publish and disseminate to Ministries policies and guidelines to enable the government to achieve its objectives in the area of environmental procurement. ii. in conjunction with the Deputy Head. Administer the disposal of all government owned movable assets and consumable supplies except assets transferred between Ministries. Approve in writing. acquisition and management of goods and services. vii. consolidate and transmit procurement reports as required by Ontario's Trade Agreements. on request.

Approve in writing. Negotiate. 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. iv. Provide advice to the Management Board of Cabinet on ministry requests for any required approval or exemption from the mandatory requirements of this directive.ix. submissions to Supply Chain Leadership Council for goods. establish and maintain the corporate Contract for general purpose charge/credit and travel cards on behalf of the government. This authority may not be delegated for non-competitive Consulting Services procurements irrespective of value. v. non-consulting services and open competitive Consulting Services. in conjunction with the Minister. the use of all non-competitive Consulting Services procurement processes valued at $100. Approve in writing. vii. Secretary of Management Board of Cabinet i. ii.000 and up to but not including $1M for Other Included Entities. Approve in writing. any submissions to TB/MBC. submissions to Supply Chain Leadership council for non-competitive Consulting Services.2 that their Ontario taxes are in good standing. iii. vi. Maintain and enforce the controllership standards and guidelines for general purpose charge/credit and travel cards on behalf of the government. Deputy Minister of Finance i. Establish an appropriate organizational structure/process to verify. 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. Approve in writing. Deputy Minister of Revenue i. in conjunction with the Minister. prior to Contract award and annually for multi-year Contracts. in conjunction with the Minister. in conjunction with the Minister. the accuracy of declarations from bidders made in accordance with Section 7. Procurement Directive July 2009 45 . iii. Formally delegate the authority and responsibility for approvals concerning this directive and the Purchasing Card to appropriate levels of management within the ministry. ii. the use of all non-competitive Consulting Services procurement processes irrespective of value for Ministries. Deputy Heads i. Ensure compliance with the mandatory requirements of this Directive. Approve in writing.

delegate authority to an appropriate ministry official of Agreement Ceiling Price Increases for Consulting Services valued at less than $750. in conjunction with the Minister. xi. xvi.000. delegate authority to an appropriate ministry official to approve the selected vendor and proposed Agreement for Consulting Services valued at or above $100. as requested by the Deputy Minister of Government Services. xv. Supply Chain Leadership Council i. the Purchasing Card Service Provider and the Ministry of Government Services. xvii. processes. 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. xii. including regular staff training.000. xviii. Ensure ministry participation on the Supply Chain Leadership Council. Approve the Consulting Services and Trade Agreement Reports prior to submission to the Ministry of Government Services. ix. Agreement Ceiling Price increases for Consulting Services that would cause the total Agreement value to reach or exceed $750.000. Investigate and respond expeditiously to vendor and government complaints arising from the obligations of Ontario's Trade Agreements. Make employees aware of post-service restrictions regarding conflict of interest. xix. Approve in writing the selected vendor and proposed Agreement for Consulting Services valued at or above $750. xiv. At the Deputy Head discretion. Approve competitive funded procurements valued between $1M and up to but not including $10M. Comply with all applicable enterprise-wide corporate information technology standards approved by the Management Board of Cabinet.000. Approve in writing the use of follow-on Agreements for Consulting Services. As appropriate. xx. At the Deputy Head discretion. xiii. publish and disseminate policies and guidelines for the management of any central common service which has been delegated to that Deputy Head. systems. procedures. provide approved mandatory central common services to Ministries and administer. Establish appropriate ministry organization structures. to enable the responsible and effective management of the procurement of goods and services. Approve in writing.000 and up to but not including $750. Procurement Directive July 2009 46 . policies.viii. x.

ii. all procurements valued at $10M or more. and exemptions from the mandatory requirements of this directive. non-competitive procurements valued at $1M or more. Approve the commissioning of all public opinion polls and market research studies and all questions added on by a ministry to non-commissioned polls. Cabinet Office i. Provide advice to MBC on ministry requests for unfunded procurements. Approve non-competitive Consulting Services valued between $500. iii.000 and up to but not including $1M. Procurement Directive July 2009 47 .

and server management. including government-owned computers Enabling Software Services. Utilities and Tools Services Network. mitigation or prevention of any disease. and Components. As outlined in the OPC Financial Policies Supplier Ministry Government Services Division/Branch (if applicable) Advertising Review Board Air Transportation Natural Resources Aviation and Forest Fire Management Asset Disposal Government Services Ontario Shared Services General Administrative Services Office of the Corporate Chief Infrastructure Technology Services.Central Common Services Mandatory Service Advertising Description (if applicable) Includes advertising. data centre. abnormal physical state.Appendix A . or symptoms thereof in humans and for restoring. public and media relations and creative communication services but not recruitment advertising Provision/arrangement of non-scheduled air transportation or specialty air transportation for authorized travel on government business Disposal of movable assets (except vehicles). OCCIO Ontario Government Pharmaceutical and Medical Supply Services Common Applications and Services Computer Services Government Services Government Services Drugs and Related Medical Supplies for Human Use Health and Long-term Care Financial Services Government Contributions to Employee Benefit Plans Government Motor and Passenger Vehicles Government Services Government Services Acquisition. help desk. correcting or modifying any human organic function. OCCIO Office of the Corporate Chief Infrastructure Technology Services. disposal and management Government Services Ontario Shared Services Financial Transaction Services Ontario Shared Services Business Support Services Ontario Shared Services Supply Chain Management Procurement Directive July 2009 48 . Provision of drugs and related medical supplies for use in the diagnosis. disorder. treatment. Enterprise Common Application Services.

and distributing French official government terminology and providing guidelines on preferred usage in French. The results of such surveys. regulations. with or without questions added by another party. transaction and project management Provision of recruitment advertising As prescribed by Agreement. or Sections 10 and 11 of the Statistics Act Provincial statutes. and French language wills that affect interests in land Setting. Ministries must comply Attorney General Government Services Government Services Division/Branch (if applicable) ServiceOntario Access and Inquiry Services Ontario Shared Services General Administrative Services Legal Services Advertising Review Board Communication Services Government Services Ontario Realty Corporation Ontario Shared Services Business Support Services Government Services Finance Centre for Leadership and Human Resources Management Economic and Revenue Forecasting and Analysis Legislative Counsel Attorney General Translation Services (2) Government Services Ontario Shared Services General Administrative Services Procurement Directive July 2009 49 . might be obtainable by a ministry or agency. maintaining.Mandatory Service Government Telephone Directory Insurance and Risk Management Services Legal Services Media Non-Commissioned Opinion Polls Description (if applicable) Production of government telephone directory Supplier Ministry Government Services Government Services Payroll Services Real Property and Accommodation Services Recruitment Advertising Statistics Canada Prescribed Data Translation Services (1) Acquisition of legal services Purchase of space and time in the domestic media Non-commissioned polls are quantitative public opinion surveys conducted independently of the Ontario Government by private organizations. memorandum of understanding. property management and client services. Provision of CORPAY system Realty advice and portfolio planning.

voice processing (voicemail. audiotex. long distance (inbound. T-1) Provision of Workforce Information Network Supplier Ministry Division/Branch (if applicable) Travel Services Government Services Ontario Shared Services Supply Chain Management Voice Telecommunication equipment and services Government Services Office of the Corporate Chief Infrastructure Technology Services Workforce Information Network Government Services Ontario Shared Services Business Support Services Optional Service Actuarial Services Mass Mailing Services Records Storage Description (if applicable) Supplier Ministry Government Services Government Services Government Services Division/Branch (if applicable) Human Resources Division Ontario Shared Services General Administrative Services Archives of Ontario Procurement Directive July 2009 50 . interactive voice response).Mandatory Service Description (if applicable) with the English-French and FrenchEnglish Translation and Proofreading Services Operating Policy. electronic key). PBX. Management of corporate Agreements for travel services including ticketed transportation. accommodation and car rental requirements Includes telephone (Centrex. calling card) and other miscellaneous services (audio conferencing. outbound. auto attendant.