Purchasing and Tendering

Policy Statement:

The Community Living York South procurement function shall be performed in an open, fair and transparent manner where goods and services are procured in a competitive environment and where all transactions yield the optimal benefit to the agency. Community Living York South aspires to high ethical, legal, environmental, managerial and professional standards in the management of the resources entrusted to it. Procurement practices are in accordance with the most recent Broader Public Sector Procurement Directive issued by Management Board of Cabinet, which forms part and policy of this financial policies and procedures manual of Community Living York South.

Policy Goals and Objectives:

  • To ensure goods and services are purchased in an efficient and cost effective manner.
  • To establish internal control over the authorization of expenses.

Policy Criteria/Guidelines (If Relevant):

Community Living York South will promote fair and objective business practices by implementing a documented approval process for purchases. All purchases will require supporting documentation and invoices. Any discretionary purchase in excess of $3,000 will also require a purchase order. Purchase orders must be used prior to any commitment made for the purchase of any goods or services. Supporting documentation will include comparative pricing, quotations, tendered bids, or preferred supplier status. The following criteria will be applied in the approval process for all purchases, in no order of preference:

  • Lowest pricing
  • The quality of goods and services to be provided
  • Use of local business
  • Previous satisfactory work or supply of products to Community Living York South

Such purchases requiring a purchase order include furnishings, appliances, equipment, repairs and maintenance, renovations, and all contracted services. In the case of ongoing contracts (including family per diem agreements, consulting, snow removal, garbage disposal etc.) blanket purchase orders should be employed.

Where the Agency has established contracts or agreements with preferred suppliers or with Vendors of Record for the Ontario Broader Public Sector, staff shall purchase goods and/or services against these contracts or from these preferred suppliers or Vendors of Record.

Preferred Supplier/Preferred ContractorA supplier or contractor who has previously gone through a quotation or tender process successfully with Community Living York South, and has continued to supply the organization with superior workmanship, supply of products, or unique technical expertise, may be deemed a preferred supplier or preferred contractor. A preferred supplier must be approved by the Executive Director. Preferred suppliers are subject to tenders every three to five years.

Authorization Limits for Purchases:

  1. Up to $500 – Residential Supervisor
  2. $500 to $2,500 – Team Supervisor
  3. $2,500 to $5,000 – Manager
  4. $5,000 to $10,000 – Director
  5. $10,000 to $25,000 – Executive Director
  6. Over $25,000 – Executive Committee of Board of Directors

Quotation/Tender Limits:

  1. Under $500 – purchased at the discretion of the Residential Supervisor.
  2. $500 to $2,500 – purchased at the discretion of the Team Supervisor.
  3. $2,500 to $5,000 – three price comparisons (written, catalogue or phone).
  4. $5,000 to $50,000 – three written quotations.
  5. $50,000 to $100,000 – three written tenders, by invitation or advertising. Decision to be made by a committee of two to three senior staff.
  6. Over $100,000 – Public advertising for tenders, except for land and buildings. Decision to be made by the Executive Committee of the Board.
  7. Land and buildings – purchase price will be negotiated based on the fair market value of the property, which may include an independent appraisal. Decision to be made by the Executive Committee of the Board.

Where advertising or invitations have been done wide enough to attract the required quotes/tenders and less than three responses have been received, the committee will make a decision based on the quotes received, assuming the applicants are deemed qualified to provide the goods/services.

No Goods or services shall be split into lower dollar values to avoid compliance with the policy. Limits include cost of warranty, maintenance and service agreements plus applicable taxes.

Goods and services with an estimated cost under $10,000 related to the repair and maintenance of buildings and vehicles may be assigned to the Agency approved contractors.

Individuals/and or companies currently on our approved contractors list have a proven record of providing excellent service to the organization at competitive rates.

Individuals/and or companies who desire to do business with our agency and contact the Agency would be requested to provide information on their organization, rates and references. If appropriate, they will be invited to bid on available projects.

At least every five years, the agency will advertise in the local papers for contractors to submit an Expression of Interest to perform repair and maintenance work on our buildings or vehicles.

Emergency and/or Special Circumstances:

In an emergency/special circumstance, the following authority shall apply:

  • The Executive Director has authority to acquire goods or services up to $50,000 without regard to this policy.
  • The nature of the emergency/special circumstance and action taken must be provided in writing to the Executive Committee of the Board who will retain for audit purposes.

Monitoring Report Requirements (Frequency, Content, etc.):

  • Annual listing of contracts awarded over $50,000, disclosing the supplier and the amount to be provided to the Executive Committee.
  • Annual listing of emergency/special circumstances purchases to be provided to the Executive Committee.

Glossary of Key Policy Terms (Can be Part of Policy Statement Component)

Tender — A formal written request to provide clearly specified goods or services.

Emergency — Circumstances in which an immediate purchasing decision is necessary to prevent danger to life, danger to property or suspension of essential service.