Acquiring Goods & Services
PURCHASING CATEGORIES
The process to follow in purchasing goods and services depends upon the estimated dollar value of the proposed purchase.
PURCHASES UNDER $1,500
Purchases with an estimated value under $1,500 may be made using a purchase requisition.
Quotations are not required; however, it is recommended that more than one supplier be considered for the supply of the product or service to maximize value.
PURCHASES BETWEEN $1,500 AND $5,000
Purchases with an estimated value between $1,500 and $5,000 must be initiated with a Purchase Requisition followed by a Purchase Order. At least one quotation is required; however quotations from more than one supplier are recommended and are generally required by research funders.
PURCHASES OVER $5,000 THAT DO NOT REQUIRE A BID PROCESS
Purchases with an estimated value within the following ranges must be initiated by a Purchase Requisition, and require at least three quotations except where fewer than three suppliers exist worldwide:
Goods $5,000 - $ 25,000
Services $5,000 - $ 50,000
Construction $5,000 - $100,000
PURCHASES REQUIRING A BID PROCESS
Purchases with an estimated value that exceeds the values stated below must be made following a Public Tender, Public Vendor Qualification or a Request for Proposals process as determined by Procurement Services. Purchase requirements for goods and services in this category can be initiated with a Purchase Requisition or by contacting Procurement Services directly.
Goods $ 25,000
Services $ 50,000
Construction $100,000
LEASES OR RENTAL OF EQUIPMENT
Requests for lease or rental agreements must be initiated by contacting Procurement Services. These agreements are negotiated by Procurement Services.
QUOTATIONS
Quotations obtained as part of a purchasing process must reflect the method of calculation most appropriate for the estimated cost and/or nature of the goods and services under consideration. Estimated costs must include the price of the goods or services, all taxes, freight and shipping charges, insurance, customs and other related costs. A quotation template for use with CFI-related quotes can be found at http://www.innovation.ca/finance/2005/rfq_e.pdf
PURCHASING METHODS
The various methods of purchasing can be described as follows:
INTERNAL REQUISITION (IR)
Internal requisitions are used to purchase goods and services on campus (eg., office supplies, computer services, Central Printing services, etc.). Please note that UPEI Bookstore is the preferred supplier for office supplies.
PURCHASE REQUISITION / PURCHASE ORDER
A purchase requisition provides authorization for Procurement Services to initiate a purchasing transaction.
Fully completed purchase requisitions must be forwarded to Procurement Services for review and approval.
Upon approval of the purchase, Procurement Services creates a Purchase Order and delivers it to the supplier. Once the supplier accepts the terms of the Purchase Order, the Purchase Order becomes a contract between the University and the supplier.
A copy of the Purchase Order is sent to the Employee who submitted the Purchase Requisition to confirm the transaction, and as a reference for the receiving process and the terms of the contract.
BID PROCESS
To initiate a purchase using a bid process, Employees may submit a completed purchase requisition or contact Procurement Services. Procurement Services determines which bid process will be used in the circumstances.
There are three types of bid process:
o A public tender is a formal solicitation document inviting binding proposals for delivery of goods, services and construction. The public tender process will assess the total evaluated cost for each offer including assessment of maintenance, on-going operating costs such as consumables and warranty details. In a Tender, the requirements are clearly defined with price, work schedule, and delivery, representing some of the evaluation criteria. All suppliers who submit a bid will be informed of the award results.
o A request for proposals is a process used primarily for those situations where there are no generic specifications or requirements and the purchaser wants to obtain products or services which best meets their needs. For example, there may be differences in the materials or equipment configuration, which are proprietary to a particular supplier. Such differences can impact on the proposed solution to meet University needs. In such instances, bidding suppliers are asked to provide a detailed recommendation on how the project should proceed and a breakdown of the goods or services required. The process for issuing a request and receiving proposals is the same as for public tenders.
o A public vendor qualification is a process during which vendors are pre-qualified before they are able to participate in a bid process. This document solicits vendors for the purpose of identifying and pre-qualifying capable vendors based on specific criteria.
Procurement Services manages all aspects of the bid process with input from the Researcher requesting the purchase as required, particularly in relation to the preparation of the request for proposals and bid specifications.
All communications with potential suppliers must be made by Procurement Services. Communication outside of this process could undermine the integrity of the process resulting in a failed bid or proposal.
The University follows a strict set of procedures regarding the receipt, custody and opening of bids.
OTHER PURCHASING PROCESSES
Any purchase requirement that cannot be processed by following one of the processes described above will be administered by Procurement Services on a case-by-case basis.
