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Procurement Policy

Effective Date

This policy is in effect as at November 30, 2016 and supersedes the Contracting Policy published September 16, 2009.

Policy Objective and General Purpose

The objective of the Procurement Policy of the Canadian Museum for Human Rights (Museum or CMHR) is to acquire goods and services in a manner that is fair, open and transparent, and that supports the effective, efficient and economic fulfilment of the Museum’s mandate as set out in the Museums Act.

In order to achieve this objective, the Museum will: delineate the responsibilities of the Board and the Museum’s management as they relate to contracting and procurement activities, establish the general principles that will guide the Museum’s contracting and procurement activities, describe the specific principles that will govern CMHR’s contracting and procurement activities, and ensure CMHR meets or exceeds the Crown Corporation requirements of all applicable trade agreements or acts. 

The Museum will acquire goods and services in a manner that results in the best value to the Crown and, when appropriate, give preference to groups with specific regional and economic development focus. 

The Museum will not split contracts or work to avoid the requirements outlined in the areas of:

  • Delegation of Financial and Human Resources Signing Authorities;
  • competitive bidding process; or
  • reporting.

Application

This policy applies to CMHR employees, management, executive and board. Procurement “in kind” is not covered in this policy.

References 

External:
Agreement on Internal Trade
The Museums Act

Internal:
Delegation of Authority Policy
Delegation of Financial and Human Resources Signing Authority
PROPRO-1.0: Delegated Procurement Process
PROPRO-3.0: Solicitation Process
PROPRO-6.0: Evaluation Process
PROPRO-7.0: Service Agreement Standing Offer Call-Up Process
PROPRO-8.0: Procurement Exception Process
PROPRO-9.0: Conflict of Interest (Formal Evaluation Panel)

Responsibilities Related to Procurement 

  1. Board of Trustees
    1. Responsible to Parliament, through the Minister of Canadian Heritage.
    2. Responsible to review and approve all contracts as per the thresholds outlined in the Delegation of Financial and Human Resources Signing Authority.
  2. Chief Executive Officer and President (CEO)
    1. Responsible to the Board of Trustees.
    2. Responsible to review and approve all contracts within the thresholds outlined in the Delegation of Financial and Human Resources Signing Authority.
  3. Chief Financial Officer (CFO)
    1. Responsible to support the CEO and President in the coordination of required contracting documentation and reporting.
    2. Responsible to review and approve all contracts within the thresholds outlined in the Delegation of Financial and Human Resources Signing Authorities of their budget.
    3. Responsible to report quarterly to the Audit and Risk Management Committee on all contracts issued with a total contract value over $100,000 (include supplier’s name, contract value, contract term, contract purpose).
    4. Responsible to report quarterly to the Board of Trustees on anticipated future contracts of a value over $500,000.
  4. Procurement Manager
    1. Maintains the Procurement Policy, and any process, forms or training that relate to contracting and procurement.
    2. Ensures the requirements of the Procurement Policy are understood and carried out.
    3. Responsible to track and report any procurement exceptions under $25,000.
    4. Responsible to manage any request for procurement exception of $25,000 and greater.
    5. Responsible to track any contract amendments that increase the original contract amount by 20% or more and report to the CFO on a quarterly basis.
  5. Employee
    1. Responsible to review and approve all contracts within the thresholds outlined in the Delegation of Financial and Human Resources Signing Authorities of their budget.
    2. Ensuring all procurement and contract policies and procedures are adhered to within their delegation level.
    3. Understand and comply with the Procurement Policy.

Contracting Authorities and Limits 

The Museum will respect the contracting authorities as defined in the Delegation of Financial and Human Resources Signing Authority.

Procurement Method

The Museum will procure goods and services through the most cost-effective method available amongst the following alternatives: Request for Proposal (RFP), Negotiated Request for Proposal (nRFP), Request for Tender (RFT), Invitation to Tender (ITT), Request for Quote (RFQ), Request for Pre-qualification (RFPQ), Request for Standing Offer (RFSO), call-up against standing offers, and single/sole source purchases.

The procurement process will be executed as follows:

Value

Process

Responsible

Prerequisite

Tools

 Up to $999.99

One quote

Budget holder or delegate

Budget Available

-

>$1,000-$9,999.99

Three quotes, informal, invitational

Budget holder or delegate

Budget available

Delegated Procurement Process,* call-up against service agreement or standing offer, or pre-qualified supplier through RFPQ

$10,000-$24,999.99

Three quotes, formal process, invitational

Budget holder or delegate

Budget available

Delegated Procurement Process*, RFQ, call-up against service agreement or standing offer or pre-qualified supplier through RFPQ

Services or Construction $25,000-$100,000

Formal invitational process

Procurement with Budget holder or delegate and team

Approved Project Charter

Solicitation Process, RFQ, RFP, nRFP, RFSO, RFT, ITT

Goods $25,000 and greater

Public Posting

Procurement with Budget holder or delegate and team

Approved Project Charter or Project Scope Summary and Sign-Off

Solicitation Process, RFP, nRFP, RFSO, RFT, ITT

Services or Construction $100,000 and greater

Public Posting

Procurement with Budget holder or delegate and team

Approved Project Charter or Project Scope Summary and Sign-Off

Solicitation Process, RFP, nRFP, RFSO, RFT, ITT

*Where the Delegated Procurement Process is used, procurement activities are delegated to the budget holder or delegate; however, contracts, agreements and purchases will flow through procurement for review and finalization.

Procurement Method Exceptions

During typical day-to-day operations at the Museum, procurement exceptions may be required where:

  • an unforeseeable situation of urgency exists and the goods, services or construction cannot be obtained in time by means of open procurement procedures;
  • goods or consulting services regarding matters of a confidential or privileged nature are to be purchased, where disclosure through open procurement may have harmful consequence;
  • open procurement was followed and no bids were received;
  • CMHR needs to ensure compatibility with existing products, licenses, copyrights, or where specialized products must be maintained by the manufacturer or its representative;
  • Work is performed on a property by a contractor according to a warranty or guarantee held in respect of the property or the original work; or
  • It is a result of a contract to be awarded based on the winner of a design contest.

In order to ensure the Museum is applying these exceptions appropriately, it will;

  1. Ensure such exceptions are documented using the appropriate process and templates relevant to the exception.
  2. Be able to demonstrate that the need leading to the requirement was unforeseeable.
  3. Seek pre-approval for the procurement exception, whenever appropriate.

Non-application 

The thresholds and processes described in this Policy do not apply to the following:

  1. services that may only be provided by licensed professionals;
  2. procurement of goods or services that are considered unique or an original work art, including photography;
  3. a contract or agreement with any other public body, non-profit, philanthropic group, or museum;
  4. purchase of goods intended for resale to the public;
  5. procurement of real property or leasing of property;
  6. travel, networking, hospitality, training and educational opportunities; and
  7. advertising and public relations services.

Conflict of Interest

Any employee who is contracting or contributes to a decision to contract must declare if there is a conflict of interest in accordance with the CMHR Code of Conduct.

For any solicitations with a total annual budget of $25,000 or more, the evaluation team will sign a project-specific Confidentiality Form.

Supplier Relationship Management

The Museum is fair and open throughout contracting activities. To keep communication strong and effective, the Museum will:

  1. debrief any supplier upon request;
  2. maintain records of both positive and negative contractual experiences whenever documentation exists;
  3. document poor contractual experiences that would be disadvantageous in future work or service contracts or agreements;
  4. perform contract close-out steps to ensure both parties grow and benefit from any successes or lessons learned;

The Museum will post the appeal process on its website to demonstrate their commitment to fair, transparent and open contracting.