Management Board of Cabinet Procurement Directive July 2009

Procurement Directive July 2009

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TABLE OF CONTENTS

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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

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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

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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

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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

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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

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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

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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

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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.

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“Supply Chain Management” means the Supply Chain Management Division of Ontario Shared Services. as set out in the particular VOR agreement. multi-ministry. “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. 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. 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. “Vendor of Record (VOR) Arrangement” means a procurement arrangement that authorizes one or more qualified vendors. A request for tender usually focuses the evaluation criteria predominantly on price and delivery requirements. “Temporary Help Services” means the transactional. or to respond to a particular request for proposals or tenders. terms. “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 . technical information. or per multiple projectrelated assignments. under which a ministry may use the VOR arrangement. or ministry specific. for a defined time period on terms and conditions. and conditions. “Trade Agreements” means any applicable trade agreement to which Ontario is a signatory. “TB/MBC” means Treasury Board/Management Board of Cabinet. “VOR Ceiling Price” means the maximum value per assignment. Ministry of Government Services. performance specifications. “SCLC” means the Supply Chain Leadership Council. including pricing. “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. “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. “Request for Tender (RFT)” means a procurement document that requests a vendor response to supply goods or services based on stated delivery requirements. “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. VOR Arrangements are categorized as enterprise-wide.

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

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.6 Section 5.5 Section 6.3 Section 5. Transparency.4 Section 6. timing. both real and perceived. Any such exemptions must then be reflected in their Memorandum of Understanding.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. Other Included Entities seeking exemptions from the mandatory sections of this Directive that apply to them must receive prior MBC approval. and procedures.6 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. Responsible Management The procurement of goods and services must be responsibly and effectively managed through appropriate organizational structures. systems. policies. 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 . providing equal treatment to vendors. Value for Money Goods and services must be procured only after consideration of ministry business requirements. through a procurement process that conforms to the following principles: Vendor Access. processes.• • • • • • • • • Section 5.7 Section 7. alternatives. must be avoided during the procurement process and the ensuing Contract.8 Section 6. and procurement method.3 Section 6. and relationships must not be created which result in continuous reliance on a particular vendor for a particular kind of work. supply strategy. Conflicts of interest.

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

vi. risk allocation and liability. reporting relationships and accountability mechanisms that will apply to the successful vendor(s). xv. Details will include. privacy. xi. but not be limited to. knowledge transfer and training. Ministries should refer to the Operational Policy on the I&IT Project Gateway Process. vii. xii. impact of vendor participation. performance management including remedies for non-performance. For IT procurements. performance standards and service levels. iv. and other requirements deemed necessary viii. vendor compensation and payment. procurement timetable including procurement authority approvals. procurement risks. information on vendor community. Ministries seeking procurement approvals as part of the RbP must submit a business case. 5. vendor qualification and evaluation requirements. xiii. dispute resolution. as appropriate. iii.Ministries should refer to the annual RbP instructions for more details on the annual procurement plan. Procurement Directive July 2009 10 . ix.7.1. xiv. ii. delivery. 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.1. x.2 Individual Procurement Planning In addition to the planning requirements noted in Section 5. for each procurement approval being sought. providing sufficient details on the procurement to support appropriate decision making. testing and acceptance requirements and any applicable technical architecture and design requirements. v.1. Ministries must also assess the following planning requirements for individual procurement activities as appropriate to that procurement: i. 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. early termination provisions. standards and interface requirements. and if appropriate rationale for any non-competitive procurements. security and confidentiality requirements.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. xvi. the roles and responsibilities of the successful vendor(s) and any other public sector participants. For IT projects. Ministries may amend their annual procurement plan to address inyear business requirements. Ministries must also consider. business continuity requirements. 5.

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. iv. the estimated total Contract value of all related procurements must be used to determine the procurement value. One-time costs such as site preparation. support and maintenance.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. or other unforeseen circumstances. installation and documentation. associated with entering a contractual relationship with a third party. Ministries and Other Included Entities must consider all costs and benefits.3. and vi. 5. v. approvals or reporting. Where a project involves multiple related procurements. require contractual provisions for price increases. delivery.1 Procurement Value Increases When the value of a procurement increases. Price/cost of the goods and/or services. Benefits such as direct payments by the Crown to the successful vendor(s). such as fuel and food. In these instances. Ministries and Other Procurement Directive July 2009 11 . ii. Disposition costs. but are not limited to. procurements. This is especially important when the Procurement Value Increase causes the Procurement Value to exceed the approval threshold of the original approver. Such actions could include subdividing projects. revenue generating opportunities and partnership agreements with non-profit organizations. To determine the value of a procurement. Taxes and duties. Costs and benefits include but may not be limited to: i. Ministries and Other Included Entities must ensure they have the appropriate procurement approval authority and have used the appropriate procurement method. price increases. or Contracts and awarding multiple consecutive Contracts to the same vendor. It may be determined that certain commodities. Procurement Value Increases may be caused by. Ongoing operating costs including training. indirect payments by third parties to the successful vendor(s). iii. the exchange of goods and/or services in return for other goods and/or services. and any conferred value by the crown to the successful vendor(s). 5.5. Approval for Procurement Value Increases must be sought prior to proceeding with or continuing the procurement. volume uptake. 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. Examples of conferred value include.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 not limited to. accommodation.

Mandatory central common services. ii. 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. v. 5. Enterprise-wide VOR Arrangements may be established only by the Ministry of Government Services (MGS). iii. Competitive procurement process. Procurement Directive July 2009 12 .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.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. identify the framework under which price increases will be permitted including. Ministry Vendor of Record arrangements. but not limited to. Ministries must use the following supply sources for goods and services. iv. Ministries must refer to the Ministry of Finance OPS Costing and Pricing Policy and Guidelines for more information.Included Entities should anticipate such increases and ensure that they seek the appropriate procurement approval authority. Multi-ministry Vendor of Record arrangements. A list of central common services is attached as Appendix A.4.4 Supply Source Prior to conducting a procurement. Optional central common services. Vendor of Records arrangements Enterprise-wide Vendor of Record arrangements. vii.4. allowable amount of increase. Ministries and Other Included Entities must also ensure that the procurement documents.000 or more and less than the approved VOR Ceiling Price. 5. Where internal ministry resources are not available. Finally. including the Agreement. Enterprise-wide Vendor of Record arrangements must be used where the estimated Procurement Value is $25. in the order indicated below: i. ministries may establish ministry-specific VOR Arrangements for the supply of a particular required good/service. Ministries must use central common services that have been identified as mandatory. Ministries must determine the appropriate supply source for the required goods and/or services first taking into consideration the availability of ministry resources. Except where the Management Board of Cabinet has directed that the services are to be provided without charge. the frequency of price increases. 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. 5. vi. and any benchmarks that will be used to confirm the price increase.

2). Seek appropriate procurement approval authority based on the total estimated value of spending expected to occur over the life of the VOR arrangement. iii. to determine the VOR Ceiling Price and whether a VOR is mandatory use under $25. The procurement approval authority requirement is based on the total estimated Procurement Value of the procurement being conducted under the VOR arrangement including potential follow on agreements. For multi-ministry VOR arrangements. Establish an appropriate VOR Ceiling Price.4.000. When establishing a VOR arrangement. Create a VOR User Guide that provides users with information about the VOR arrangement such as vendor contact information and pricing. 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. For projects that involve multiple related procurements under one or more VOR arrangements. 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.4. Ministries must also refer to the VOR User Guide to identify and comply with any user requirements of that VOR arrangement. Ministries must secure appropriate procurement approval authority prior to using a VOR arrangement. New VOR Arrangements are established on a regular basis.000. Ministries should refer to the VOR User Guide. Identify if the VOR arrangement is to be made mandatory for goods/services valued at less than $25. 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.1 Establishing VOR Arrangements VOR arrangements must be established using an open competitive procurement process. ii.2. Ministries must enter into a written Agreement with the successful vendor(s) selected through a VOR arrangement. For VOR arrangements where there are multiple vendors. a further second stage selection process is required to ensure buyers obtain the best value for money (Section 5. Ministries must: i. Ministries should consult MyOPS Supply Chain Management for the list of available VOR Arrangements. specific user requirements such as insurance requirements as well as any other information identified by the ministry. In addition to the above noted requirements for the establishment of VOR arrangements. iv.Ministries should note that there are some VOR arrangements where Management Board of Cabinet has approved mandatory use under $25. Prior to using a VOR arrangement(s).2. the procurement approval authority is based on the total of all of the related procurements. the lead ministry must also: Procurement Directive July 2009 13 . Ministries must comply with the principles and mandatory requirements of the Procurement Directive When establishing VOR arrangements.000. 5. available on MyOPS Supply Chain Management.

such as a Request for Solutions (RFSo) or Request for Services (RFSe).000 up to VOR Ceiling Price (if ceiling price greater than $750. to Other Included Entities and Ontario broader public sector (BPS) entities. 5.000 up to but not including $250. Where Ministries are using multiple VOR arrangements.000 up to but not including $750.000 $750. The required second stage selection process is determined by the Procurement Value of all procurements being conducted under a VOR arrangement. The procurement document must be sent to the required number of vendors as follows: Procurement Value Less than $25. b) secure the appropriate procurement approvals.2. Ontario Shared Services to verify that an enterprise-wide VOR arrangement is not possible. identified at the time the multi-ministry VOR arrangement is established are entitled to use the VOR arrangement. The procurement document must Procurement Directive July 2009 14 .4. and e) manage the resulting VOR arrangement.000 $250. the second stage selection process is determined by the Procurement Value of all procurements being conducted under each VOR arrangement. d) manage the procurement process. as part of the second stage selection process.000) Above VOR Ceiling Price Where there are fewer vendors on a VOR arrangement than the above noted requirements.2 Conducting a Second Stage Selection Process Ministries conducting a second stage process must issue a written procurement document. Only those Ministries. c) identify all other user Ministries.a) consult with Supply Chain Management Division. Ministries must consult with Supply Chain Management prior to seeking approval authority. Ministry specific VOR arrangements are for the exclusive use of that ministry and may not be utilized by any other ministry. where appropriate. Ministries must not take any actions to reduce the value of procurements to avoid second stage selection process requirements.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. VOR Arrangements may be made available. Ministries must invite all listed vendors. or successor Ministries. Where opportunities are identified to expand existing VOR arrangements from multi-ministry to enterprise-wide or ministry-specific to multi-ministry.

5.Ministries Ministries must select and use the appropriate procurement method dependent on the type and value of the procurement.5 Procurement Methods .000 or more. 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.000.000 or more. 5. Ministries must use an open competitive procurement for Consulting Services valued at $100.1 Consulting Services Procurements A competitive process must be used for all Consulting Services irrespective of the value of the procurement. 5.2 Goods Procurements Ministries are encouraged to conduct an open competitive procurement for goods with an estimated value of up to $25.5. Ministries may use an invitational competitive procurement for Consulting Services valued up to $100. 5. Procurement Directive July 2009 15 .include appropriate selection criteria.000 but may conduct these procurement using their own policies. An open competitive procurement is achieved by issuing procurement documents using Ontario’s electronic tendering system. and procedures provided they are in accordance with the principles of this Directive.3 Non-Consulting Services Procurements Ministries are encouraged to conduct an open competitive procurement for nonconsulting services with an estimated value of up to $25.000 but may conduct procurements using their own policies. processes. 5. 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. the ministry must conduct an open competitive procurement or seek appropriate approval to exceed the ceiling price. Ministries must use an open competitive procurement for goods valued at $25. The Daily Commercial News may also be used for construction related procurements. As VOR Arrangement ceiling prices can vary. 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. processes and procedures provided they are in accordance with the principles of this Directive.5. Ministries should verify the approved ceiling price in the VOR User Guide available on MyOPS Supply Chain Management.

An unforeseen situation of urgency does not occur where Ministries have failed to allow sufficient time to conduct a competitive procurement process. to use a non-competitive process for goods valued at or over $25. but no allowable exception exists. 5. Where no allowable exception exists.6). Ministries must seek MBC approval of an exemption to the Procurement Directive.000. Ministries must use an open competitive procurement process for all non-consulting services valued at $100.1 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.5.5. for non-consulting services valued at $100.6 where an unforeseen situation of urgency exists that prevents the ministry from seeking appropriate procurements approvals. 5.5.4 Non-Competitive Procurements Except in unforeseen situations of urgency (see Section 5.000 or more and for all Consulting Services irrespective of value. These exceptions adhere to Ontario’s Trade Agreements and represent the only allowable circumstances where a non-competitive process may be used. Exceptions exist whereby Ministries are allowed. Ministries must develop a business case and secure the appropriate procurement approvals in writing for all noncompetitive procurements valued at $25. Ministries must also see Section 5.000 or more.4. Procurement Directive July 2009 16 . Ministries must seek appropriate approvals prior to the contract end date and in sufficient time to permit an alternative procurement method. cause economic disruption or otherwise be contrary to the public interest. subject to appropriate procurement approval authority. Where approval is being sought for a non-competitive procurement to renew a Contract with an existing vendor.5. 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.000 or more for goods.Ministry may use an invitational competitive procurement for non-consulting services valued at up to but not including $100. Non-competitive procurement processes include single and sole source procurements.000 and non-consulting services valued at or over $100.000. This approval must be secured prior to conducting the non-competitive procurement. the Ministry must seek prior MBC approval of an exemption to this directive. Where Ministries wish to use a non-competitive procurement process.

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

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

f) A description of the potential pool of vendors that might have responded to a competitive procurement. 5. g) h) i) j) k) 5. a description of how the Ministry will meet these business requirements. 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. Where a non-competitive procurement process is required. Other Included Entities must seek prior Procurement Directive July 2009 19 . Any other matters considered relevant. If appropriate.000. Ministries may conduct the procurement prior to obtaining the appropriate approvals. Other Included Entities must use an open competitive procurement for Consulting Services valued at $100.8.5. A description of how the Ministry will ensure it will comply with the principles of the Procurement Directive.4.6 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. in the future.000 or more. The impact on the business requirements if the non-competitive procurement is not approved.Other Included Entities Consulting Services Procurements A competitive process must be used for all Consulting Services.6. particularly value for money. but no allowable exception exists. where appropriate.5. irrespective of the value of the Contract. An unforeseen situation of urgency does not occur where Ministries have failed to allow sufficient time to conduct a competitive process. Other Included Entities may utilize the allowable exceptions for non-competitive procurement processes for Consulting Services as defined in Section 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. Other Included Entities may use an invitational competitive procurement for Consulting Services valued up to $100.6 5.1 Procurement Methods . 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. Any alternatives considered. using a competitive procurement process. The report back must include a description of the selection process and results.

processes. This includes the allowable exceptions for the noncompetitive acquisition of goods and non-consulting services as defined in Section 5.1 Approval Authority Except in unforeseen urgent situations as identified in Section 5. procurements. Supply Chain Leadership Council (SCLC) or Treasury Board/Management of Cabinet (TB/MBC) depending on the procurement value.8.7 Procurement Approvals . Ministries are not permitted to make changes to the Agreement Ceiling Price unless allowed by contractual provisions.6. they must seek prior written approval from the appropriate delegated authority.7. 5.6.6 for requirements specific to follow on agreements. and any necessary subsequent approvals such as for Procurement Value Increases.1. 5.Ministries 5. The Agreement Ceiling Price cannot exceed the Procurement Value identified in the procurement approval. Ministries should anticipate future needs and include potential follow on agreements as part of the Procurement Value.approval from the most appropriate approval authority as determined by their procurement policy and subject to approval as defined in Section 5. the procurement method. must be in writing.4.5. a ceiling price must be established in the Agreement with a successful vendor(s). Where Ministries have established that an Agreement Ceiling Price increase is required. For Consulting Services Agreements. Requests for procurement approvals. Procurement approvals may be required from within a ministry in accordance with the ministry’s Financial Delegations of Authority (DOA). and whether the procurement activity is funded or unfunded.5. Once established.2. All unfunded Ministry procurements require TB/MBC approval. Ministries must not take any actions to reduce the value of procurements to avoid approval authority requirements. The Agreement Ceiling Price must reflect the total value of the Agreement including potential follow-on Agreements.1 Consulting Services Procurement Approvals For approval purposes. Such actions could include subdividing projects. Ministries must seek the necessary approval authority for all procurements prior to conducting the procurement including those establishing or using a VOR arrangement(s). or Contracts and awarding multiple consecutive Contracts to the same vendor. Ministries are encouraged to avoid such increases through appropriate procurement planning. noting Procurement Directive July 2009 20 . and procedures provided they are in accordance with the principles of this Directive. 5.2 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.7. It is acknowledged that Agreement Ceiling Price increases may be required over the term of an Agreement. Ministries must refer to Section 8.

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 . TB/MBC approval is required.000 $0 up to but not including $1M $1M up to but not including $10M $10M or more $0 up to but not including $500.000. In seeking written approval. 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. When the increase will cause the total value of the Agreement to reach or exceed $1M. If so.000 $500. 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.000 up to but not including $1M $1M or more $750. Prior to implementing a ceiling price increase. changes to the Agreement Ceiling Price must not be made until the Ministry has sought new procurement approval authority as appropriate.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. 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 and Other Included Entities must determine whether the increase causes the total Procurement Value to exceed the original procurement approval.

000 $25.000 $25.000 $25.7.1.1.7.000 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 5.2 Goods Procurement Approvals Funded Ministry procurement approval requirements for goods are as follows: Procurement Method Ministry Process Open Competitive Value Up to $25.5.000 up to but not including $1M $1M up to but not including $10M $10M or more $25.000 up to but not including $100.000 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 .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.

Deputy Heads may not delegate approval authority for noncompetitive Consulting Services procurements. Name of the incumbent vendor(s). Proposed release date of the procurement documents. The procurement method used to select the incumbent vendor(s). Proposed Agreement start and end dates.3) including any proposed extension periods. ii. j) Description of all known risks associated with the procurement and the proposed mitigation strategy that will be used.7.2 Ministry Approval Authority For procurements where approval authority is within the ministry’s approval threshold.3 Supply Chain Leadership Council Approval Authority For procurements where approval authority is within the Supply Chain Leadership Council’s approval threshold. 5. Deputy Heads may delegate authority to an appropriate ministry official(s) for procurements valued within ministry approval authority except for non-competitive consulting services. including any proposed Agreement extension periods. Ministries must identify the key contact for the submission who may be contacted for more information. Program and controllership contact information.7.5. Description of potential pool of vendors. Procurement Directive July 2009 23 . Procurement title and description including how the procurement supports the ministry’s business requirements. Proposed procurement method. Description of how the ministry will ensure the incumbent vendor does not have an unfair advantage in this procurement. Ministries must submit a written business case that includes the following information: a) b) Ministry name. iv. division and branch. Estimated total Procurement Value (Section 5. Where there is an incumbent vendor(s): i. The number of years the incumbent vendor(s) has had an Agreement to provide the goods/services being procured. Ministries must refer to their own ministry financial delegations of authorities and processes. c) d) e) f) g) h) i) iii.

Ministries do not have to submit a separate SCLC business case. and competitive Consulting Services SCLC business cases must be signed by the ministry’s Deputy Head. SCLC business cases must be signed by the Deputy Minister and Minister. Additional information on SCLC is available on MyOPS Supply Chain Management.k) For non-competitive procurements.4 TB/MBC Approval Authority For any procurement that does not meet the criteria for approval under delegated authority. the OCCIO. Treasury Board Office intranet portal for more information on TB/MBC submissions.5. If applicable.7. For goods and non-consulting services. completion of the written requirements described in Section 5. 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. Ministries should refer to the I&IT Directive and Operational Policy on the I&IT Project Gateway Process to determine appropriate IT related approvals.5 Information Technology Approvals In addition to the procurement approval. Submissions from classified agencies must be signed by the Deputy Minister of the oversight ministry.5.8 Procurement Approvals – Other Included Entities Other Included Entities must include a procurement approval authority framework in their procurement policy. Ministries must submit an MB20 submission for TB/MBC review. IT projects that contain a procurement component may also require approvals from the Cluster CIO. Ministries must include in their MB20 submission the same information that would otherwise be included in the SCLC business case. business cases must also be signed by the appropriate Cluster Chief Information Officer. Deputy Heads may not delegate this authority. For non-competitive Consulting Services irrespective of value. Procurement Directive July 2009 24 . Any other relevant information in support of the procurement. For IT related procurements. 5. Ministries must refer to the Ministry of Finance. non-consulting services. Submissions to TB/MBC must be signed by the Minister 5. confirmation that the ministry has addressed or will address any Financial Administration Act considerations. l) m) For goods.7. For procurements that require TB/MBC approval authority. 5. and/or the Information Technology Project Approval Committee (ITPAC). However.

the specifications must deal with performance requirements and exclude all features that could unfairly confer an advantage to certain vendors. 6 PROCUREMENT PROCESS 6. procurements. approach and process. 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. 6. 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.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.000 $100.000 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. Ministries may express requirements in terms of corporate or ministry Information Technology standards as an alternative to functional terms. When the use of non-generic and/or non-functional terms is appropriate. 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 .000 Any Value $0 up to but not including $100.For Consulting Services. For IT procurements. or Contracts and awarding multiple consecutive Contracts to the same vendor. procurement documents must be in writing and include sufficient details concerning the submission requirements.2 Procurement Documents .Ministries To enable fair comparison of vendor submissions. This consultation process must be conducted solely for information gathering purposes or to market test a proposed procurement scope. Such actions could include subdividing projects. 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.

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

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

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

d) The role and weighting.000 or more. Unless expressly requested in the procurement documents. to determine costs for specific volumes and/or service levels. vendors may sometimes propose alternative strategies or solutions to the business needs or apply conditions to their responses.1 Scheduling Vendor Debriefing Meetings In scheduling vendor debriefings. Vendors have a right to a debriefing only after the legal Agreement between the successful vendor(s) and the Ontario Government has been signed. d) Ensure that the same participant(s) from a ministry participate in every debriefing conducted.11). Ministries must ensure that all vendors who participated in the procurement are offered an opportunity for a debriefing. demonstrations and site visits.2 Conducting Vendor Debriefings In conducting vendor debriefing meetings. Ministries must: a) Provide a general overview of the evaluation process set out in the procurement document. Ministries must: a) Confirm the right to a debriefing.8.8. oral interviews. 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. b) Confirm the date and time of the debriefing session in writing. including any minimum rated score requirements. e) Retain all correspondence and documentation relevant to the debriefing session as part of the procurement documentation (Section 6. if applicable. Procurement Directive July 2009 29 . c) Conduct vendor debriefings individually. in writing. of reference checks. 6. and allow vendors sixty (60) calendar days following the date of the written communication to respond.8 Vendor Debriefings For all procurements valued at $25. e) Descriptions of the price/cost evaluation methodology including the use of scenarios in the evaluation process. Following the evaluation process.c) Description of any short-listing processes. 6. 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. 6. In responding to procurement documents. alternative strategies or solutions proposed by a vendor must not be considered.

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

Ministries must post. 6. and. where applicable. All payments for applicable expenses must be in accordance with the Travel. manage procurement Agreements and documentation to ensure Ministries can respond to any requests for information. Vendor performance must be managed and documented. Any overpayment must be recovered.competitive procurements and appropriate approval authority must be obtained prior to proceeding. in the same manner the procurement documents were posted.000 and services over $100. Knowledge transfer to ministry staff must take place. reliable. audits and legal challenges in a relevant. and any performance issues must be addressed. the name(s) of the successful vendor(s). 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. All assignments must be properly documented. Procurement Directive July 2009 31 .000. Particular attention should be paid to the following in managing procurement Contracts: • • • • • • • All payments must be in accordance with provisions of the Agreement.10 Post Contract Award Notification For goods over $25. vendor inquiries. Posting Contract award information does not apply to the second stage selection process when using a Vendor of Record Arrangement. but is not limited to. 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). 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. 6. debriefing requests. Procurement process documentation includes.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. the following: a) a copy of the procurement justification or business case. Meal and Hospitality Expenses Directive and General Expenses Directive. comprehensive and timely fashion.

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

including fax number. Ministries must verify the tax compliance status of the successful vendor(s) with the Ministry of Revenue. 7. Prior to signing the Agreement. Ministries will receive a written request from the Ministry of Government Services. Ministries must fax a copy of the successful vendor’s Tax Compliance Declaration. Vendors must complete and submit a signed copy of a Tax Compliance Declaration form.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. Should this occur.000. 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. Ministries must refer to this written communication to confirm the information to be reported and the due date of each report. Ministries engaging in procurements to which the Trade Agreements do not apply. consult with the Ministry of Government Services’ Supply Chain Management Division. Ontario’s Trade Agreements describe the processes that are to be followed in case of disputes. Other Included Entities may be subject to Ontario’s Trade Agreements including requirements for contracting rules. Ministries must only enter into Contracts with vendors whose Ontario tax obligations are in good standing. Corporate Procurement Policy and Planning Branch. The Director.000 and services and construction valued at or over $100.2 Tax Compliance For procurements with a value of $25. along with the name. address.6. 7. buying groups. The Ministry of Revenue will confirm the vendor’s tax compliance status within 3 to 5 days. must note that they are still be required to conduct the procurement in accordance with the requirements of this Directive. exclusions and dispute resolution.000 or more. Each year. OTHER RELATED POLICIES 7. 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.12 Annual Reporting Ministries must maintain procurement records and develop annual reports related to Consulting Services and Ontario’s Trade Agreements. Procurement Directive July 2009 33 . Ministries must comply with this directive. and contact information. Ministry of Government Services is the Provincial Co-ordinator for addressing such disputes. The Trade Agreements apply to the acquisition of goods valued at or over $25. Where requirements in the Trade Agreements differ to this directive.

Ministries and Other Included Entities must conduct a risk assessment that includes undertaking a Privacy Impact Assessment (PIA) and a Threat Risk Assessment (TRA).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. Ministries should refer to the Information Security and Privacy Classification Policy for more details on storage of personal information or program data. Procurement Directive July 2009 34 .7. Ministries should refer to the Information Security and Privacy Classification Policy for more details on these requirements. If required. 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.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.3 Contractor Security Screening Contractor security clearance may be required for vendors selected to provide goods and services to the Ontario Public Service. Ministries must refer to the Contractor Security Screening Operating Policy and/or consult with the Emergency Management and Security Branch. 7. it is the obligation of the procuring ministry to ensure that clearance is received prior to signing an Agreement with a successful vendor 7. 7.4 Business Continuity Planning When procuring goods 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. 7. Any information that is to be released must comply with applicable privacy legislation.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. Ministries are encouraged to contact their Business Continuity Co-ordinators to determine if their procurement supports time-critical functions and services. Ministry of Government Services prior to conducting a procurement to determine if contractor security clearance is required. Ministries must ensure that they communicate these requirements when seeking assistance from legal counsel. Where contractor security clearance is required. their supply chain is not disrupted in a manner that will prevent the delivery of time-critical functions and services. The need for such assurances must be in the original procurement documents including the form of Agreement.

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

Expenses for fleet vehicles including repairs. The Purchasing Card must be used for low dollar value purchases. The purchasing card must not to be used for: • • • • • • Personal purchases including points or rewards programs. To help facilitate this. Meal and Hospitality Expenses Directive. to pay for expenses incurred while travelling on approved business. and Travel and travel-related expenses. maintenance and fuel for those using a fleet management system (these costs must be charged to the fleet management card). Although purchasing cards are issued in the name of the employee. Use of the Purchasing Card reduces the administrative costs of payables associated with low dollar value purchases. the Crown is liable for all charges.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.1 Purchasing Card Program The Purchasing Card is a mechanism for acquiring and paying for low dollar value goods and services. avoids GST payment on most low dollar value purchases.7.11. reduces petty cash and accountable advance usage and simplifies the purchase process for employees. Cardholders are responsible for informing merchants of this and ensuring that GST is not charged on their transactions. 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. improves cash flow and accounts receivable status for vendors. fees. Cardholders are fully liable for all charges.11 Corporate Card Program 7. 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). Salaries and wages (except for Temporary Help 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. 7. interest. 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. the province’s GST exempt number is printed on each purchasing card. 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. The travel card is issued in the name of the employee.11. Ministries must follow the delegation of authority framework for their ministry to determine which employee will be approved for a travel card. Procurement Directive July 2009 36 .

exploratory drilling services. and aerial photography. activities related to actuarial science. surveying. 7. engineering. the provision of strategy and advice in conveying information through various channels and media). employment/ placement.e. social sciences). interior design. Ministries must adhere to the following requirements specific to Consulting Services. appraisal.e.e. Advisory services that help clients assess different technology strategies. research and development (i. and communication consulting (i.e. 7. services for the operation and maintenance of a facility or plant. This includes organizational change management assistance and strategy development. 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. community planning. the provision of advisory services to provide policy options. information technology consulting (i.13 Domestic Steel To support domestic steel vendors. realty.12 Asset Management Ministries must establish and maintain appropriate systems to enable the effective management and security of assets procured by government. training/education instructors. for example. 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. Procurement Directive July 2009 37 . investigative study for the purpose of increasing the available store of knowledge and/or information on a particular subject).). 8 CONSULTING SERVICES In addition to the mandatory requirements set forth in Section 5.e. and travel management transaction fees which will be charged to a diversion account. health sciences. • • • • • Consulting Services do not include services in which the physical component of an activity would predominate. including aligning their technology strategy with their business or process strategy).The Crown has corporate liability for all airfare. rail tickets. policy consulting (i.e. water-testing services. helping Ministries improve their performance.000 or more. analysis and evaluation). primarily through the analysis of existing problems and development of plans for improvement. Consulting Service refers to the provision of expertise or strategic advice that is presented for consideration and decision-making such as: • management consulting (i. technical consulting (i. temporary help services.

including the end date of the Agreement. For Consulting Services valued at or above $750. Ministries must ensure they have prior appropriate approval authority in this regard. architects.000. land surveyors.1 Approval of Vendor Selection For Consulting Services valued at or above $100. in writing. 8. 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. progress reporting. Deputy Heads may delegate this authority. Consulting Services assignments must have a start and end date. Any change to a Consulting Services Agreement. a transfer of knowledge must occur from consultant to staff to avoid a continuous reliance on consultants.000. and. including: objectives.4 Agreements with Universities and Colleges For research and development projects involving universities. Procurement Directive July 2009 38 . 8. dentists. nurses. staff responsibilities. the university/college administration. the terms of these Contracts must cover the full cost of the research. monitor and control the combined efforts of internal and external resources to ensure satisfactory completion of consulting assignments on schedule and within budget. approval requirements. including appropriate allowances for indirect and overhead costs. In addition.000 and up to $750. may affect the Procurement Value. When applicable. chartered accountants. or with the written concurrence of. only Deputy Heads can provide this written approval. lawyers and notaries in their regulated capacities. colleges or their staff. to an appropriate official of the ministry.000. Payments must be made to the administration or to another party only with the written concurrence of the administration. tangible deliverables/results. Ministries shall co-ordinate. 8. background. scope.2 Terms of Reference Clear terms of reference for the consulting assignment. veterinarians. Ministries must seek prior written approval from their Deputy Head of the selected vendor and the proposed Agreement before the proposed Agreement is signed. constraints. timing. Other Included Entities are required to obtain appropriate approvals in accordance with their MBC approved governance structure for procurement controllership 8. knowledge transfer requirements must be established. Contracts must be made with. pharmacists. engineers.Consulting Services do not include any licensed professional services provided by medical doctors. where applicable. For Consulting Services Agreements valued at or above $100.3 Assignment Substantiation External Consulting Services must not be procured when existing internal resources are available for the assignment. .

renting. leasing or purchasing IT. traffic lights). removable disks). Ministries must adhere to the following requirements specific to IT.000 and where an open competitive procurement or VOR arrangement has been used to select a vendor. engine analysers). sensing devices (e. The terms of the original Agreement were fulfilled and vendor performance was satisfactory. For the purposes of this section. 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. size. uncertainty or improved management control. Subsequent purchases of these services must be through an appropriate competitive process in accordance with the provisions of this Directive.g. 39 Procurement Directive July 2009 .6 Follow-On Agreements A follow-on Agreement is one that follows and is related to an already completed Agreement. diagnostic tools (e. laboratory instrument monitoring systems.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. 9 INFORMATION TECHNOLOGY In addition to the mandatory requirements set forth in Section 5.g. The procurement documents for the original work disclosed the total potential scope of work to be completed. thermostats).g. Follow-on Agreements allow a Ministry to structure a procurement into several smaller portions for reasons of complexity. Deputy Head approval in writing must be obtained before entering into an Agreement and all such Agreements must be documented. 8.g. The appropriate procurement method was used for the original Agreement such as a VOR arrangement or an open competitive procurement. Procurement approval authority has been based on the total value of the work in the original Agreement and the follow-on Agreements. does not exceed $750. and general information technology supplies (e.8. 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. These requirements apply whether licensing. information technology does not include the following specialized single-purpose equipment such as computerized equipment used exclusively for: • • • • • • medical and scientific research. Follow-on Agreements are permitted only for Consulting Services where the total value of all Agreements. process-control systems (e.

Ministries must not sub-divide any of these costs when determining the Procurement Value. and related policies. Ministries may establish ministry information technology standards that apply to the ministry only.1 Acquisition of Information Technology All ministry acquisition of information technology shall conform to applicable corporate and ministry policies. requirements must be documented in functional terms and examine and record the fit of potentially suitable software to functional requirements.3 Information Technology Standards Ministries must comply with all applicable enterprise-wide corporate information technology standards.000. 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. 9. open and transparent competitive process or are otherwise approved by MBC or the Information Technology Standards Council.2 Alternative Financing Where the estimated total Contract value of a procurement is $1M or more. However. When procuring COTS. Ministries must consider the value of all related services over the period of time that the ministry requires the COTS products. prior to conducting an open competitive process. leasing) for the proposed information technology. The software product that meets the documented functional requirements and has the lowest evaluated costs is the preferred product. Ministries must consider alternative financing arrangements (eg. 9. architectures and standards unless specifically exempt. Ministries must refer to the I&IT Directive. All relevant costs and benefits must be considered. Ministries must comply with the supply source requirements. prior to the acquisition of information technology including determination of exemption status. For procurement approval authority purposes.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. In a competitive evaluation.9. 9.4 Software Ministries and Other Included Entities are encouraged to conduct open competitive procurement for software but have the option of choosing software through a competitive evaluation rather than a call for tenders. In this regard. the supply source requirements for COTS products are as follows: • • • • • VOR arrangement Ministry Agreement Volume Licensing Agreement (VLA) – Resellers Volume Licensing Agreement – Direct sellers Open competitive procurement or competitive evaluation process Procurement Directive July 2009 40 . Ministries must first determine if a ministry Agreement or Volume Licensing Agreement is available.

Ministries must conduct a full technical review of product interoperability to demonstrate this requirement. 9. Ministries must also follow the Checkpoint 1 for Acquired Solutions Guideline Where Ministries seek to conduct a non-competitive procurement of COTS products. 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.6 Custom Software Development With defined exceptions. within the Broader Public Service. VLAs may include COTS products that have been previously selected in accordance with Section 7. appropriate procurement approval authority. copy and distribute COTS products within the Ontario Public Service. For non-competitive COTS products acquisitions valued at less than $25. Prior to using a VLA. Ministries must review the VLA User Guide. ministry Agreement. Where Ministries are unable to acquire COTS products through a VOR arrangement. Ministry Agreements must have been established through a prior competitive process or otherwise approved by the MBC or the Information Technology Standards Council.1.1. Where COTS products are not available through VOR arrangements or ministry Agreements. and where appropriate. Ministries must consider VLAs. Ministries must obtain prior written approvals to procure COTS products through a competitive procurement or competitive evaluation. 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). Where COTS standards have been established in accordance with Section 7. are not sufficient justification for a non-competitive procurement process. suppliers may own the intellectual property rights in custom software procurements. 9. Ministries must follow the requirements of the VOR or Ministry User Guide. but not limited to. reporting and audit requirements. Ministries may consider the use of VLAs. Ministries must note that VLAs have not been established using an open competitive process and are not considered a substitute for competition. The VLA User Guide identifies specific processes that Ministries must follow including the requirement for further competition to obtain best value for money or additional procurement approval authority requirements. Ministries must conduct an open competitive procurement or competitive evaluation in compliance with this Directive including.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 . or VLA. Ministries must also comply with all VLA terms and conditions including. VLAs have been established with certain COTS vendors to take advantage of discounts and the right to use. such as training or implementation costs related to the use of a new COTS product(s). Monetary considerations. Ministries must consider the use of VLAs. they must do so in compliance with this Directive. but not limited to.000.Where COTS products are available through VOR arrangements or ministry Agreements.

Ministries must consult with legal counsel regarding their procurement documents including the implementation and application of updated Agreement terms and conditions. Ministries must adhere to the following requirements specific to Large Projects. 9. they must be engaged throughout the entire procurement process. Ministries must refer to the MyOPS Supply Chain Management to access templates/Agreement precedents. uncertainty. 10 LARGE PROJECTS In addition to the requirements set out in the Procurement Directive. or improved management control but not to circumvent approval authorities. Ministries may consider sub-dividing a project-related procurement(s) into several smaller procurements for the purposes of complexity.Procurement Directive. where maintenance and/or support was not included in the procurement approval or where maintenance and/or support services will expire. Where Ministries use a Fairness Commissioner.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. 9. Ministries must also consider the use of a Fairness Commissioner to ensure the consistent application of the procurement processes.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. 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. the Information & Information Technology Directive and the MGS Operating Policy on Open Source Software 9. size. Procurement Directive July 2009 42 . For already installed software or hardware. To maximize alignment with the business objectives. the procurement experts should play an advisory role to the project team. Ministries must ensure that a procurement plan is developed and implemented. where payments are partially or totally credited to the purchase. do not require an open competitive procurement to complete the purchase since this is the completion of an existing procurement process. In this regard.10 Lease-Purchase Agreements Goods that are the subject of a lease-purchase Agreement. the procurement(s) should be conducted by project team members responsible for both project delivery and Agreement management and supported by procurement experts. When developing the project procurement plan. 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. 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. 10.

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

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

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

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

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

mitigation or prevention of any disease. 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 . 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. disorder. Provision of drugs and related medical supplies for use in the diagnosis. and Components. data centre. including government-owned computers Enabling Software Services. or symptoms thereof in humans and for restoring. 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. Utilities and Tools Services Network. abnormal physical state. OCCIO Office of the Corporate Chief Infrastructure Technology Services. help desk. treatment. correcting or modifying any human organic function. 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). and server management. Enterprise Common Application Services.Appendix A .

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. and French language wills that affect interests in land Setting. maintaining. transaction and project management Provision of recruitment advertising As prescribed by Agreement. The results of such surveys. Provision of CORPAY system Realty advice and portfolio planning. might be obtainable by a ministry or agency. with or without questions added by another party. memorandum of understanding. regulations. property management and client services. 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 . or Sections 10 and 11 of the Statistics Act Provincial statutes. and distributing French official government terminology and providing guidelines on preferred usage in French.

outbound. auto attendant.Mandatory Service Description (if applicable) with the English-French and FrenchEnglish Translation and Proofreading Services Operating Policy. PBX. long distance (inbound. accommodation and car rental requirements Includes telephone (Centrex. interactive voice response). Management of corporate Agreements for travel services including ticketed transportation. 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 . voice processing (voicemail. calling card) and other miscellaneous services (audio conferencing. audiotex. electronic key).

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