External Strategic Sourcing Policy

Transcription

1 External Strategic Sourcing Policy Effective: November 6, 2009 Revised: September 2015

2 TABLE OF CONTENTS 1. OVERVIEW APPLICATION AND SCOPE OBJECTIVES Accountability Demand Aggregation Quality Service Delivery Best Practices Transparency Value-For-Money and Savings CODE OF ETHICS Personal Integrity and Professionalism Accountability and Transparency Compliance and Continuous Improvement CONTRACTING INSTRUMENTS PROCUREMENT AND AGREEMENT APPROVALS PROCUREMENT PROCESS Procurement Planning Supplier Prequalification Consultants and External Lobbyists Competitive Procurement Competitive Procurement Procurement Response Time and Receipt Evaluation and Selection Agreement Award Debriefings Non Competitive Procurement Agreement Management PROCUREMENT RECORDS RETENTION CONFLICT OF INTEREST DISPUTE RESOLUTION PROCESS REPORTING ENVIRONMENTAL PROCUREMENT RESPONSIBILITIES AND ACCOUNTABILITIES Board of Directors President and Chief Executive Officer Director of Finance and Corporate Services Director of HR, Marketing and Communications Director of Sourcing and Relationship Management All OECM Contracted Legal Counsel APPENDIX A: GLOSSARY OF TERMS A.1 Accountability A.2 Accessibility for Ontarians with Disabilities Act A.3 Agreement on Internal Trade (AIT) A.4 Approval Authority A.5 Award... 16

3 A.6 Procurement Protest A.7 BPS A.8 BPS Procurement Directive A.9 Competitive Procurement A.10 Conflict of Interest A.11 Consulting Service A.12 Construction A.13 Contract A.14 Evaluation Requirements A.15 Evaluation Matrix A.16 Evaluation Team A.17 Freedom of Information and Protection of Privacy Act (FIPPA) A.18 Goods A.19 Master Agreement A.20 Negotiated RFP A.21 Offer A.22 Procurement A.23 Request for Information (RFI) A.24 Request for Proposal (RFP) A.25 Request for Quotation (RFQ) A.26 Request for Tender (RFT) A.27 Services A.28 Single Source A.29 Sole Source A.30 Stakeholders A.31 Submission A.32 Supplier A.33 Supply Chain Management A.34 Transparency A.35 Debriefing A.36 Value for Money... 21

4 Page: 4 of OVERVIEW OECM S mandate, as a not-for-profit Ontario Broader Public Sector ( BPS ) Group Procurement Organization ( GPO ) whose core business is collaborative sourcing and supplier partnership management. OECM s goal is to generate savings and process efficiencies for public sector and not-forprofit organizations by offering collaboratively sourced and competitively priced products and services through the OECM marketplace supplier partners. OECM will promote and collaboratively lead sourcing initiatives related to the: Generation of savings; Service improvement; and, Adoption of best practices and standards. 2. APPLICATION AND SCOPE This policy applies to all sourcing initiatives led by OECM on behalf of stakeholders. OECM s sourcing activities are governed by Canadian Law, relevant Ontario Provincial policies, legislation and trade agreements. Accordingly, this policy has been harmonized with the following reference documents: Accessibility for Ontarians with Disabilities Act (AODA) (Amended 2010); Agreement on Internal Trade (AIT); Broader Public Sector Accountability Act, 2010; Broader Public Sector Procurement Directive dated July 1, 2011; Canadian Law of Competitive Processes and Agreement Law; Freedom of Information and Protection of Privacy Act (FIPPA); Lobbyist Registration Act (as amended 2010); and, Ontario Human Rights Code. This policy will be reviewed and modified to ensure it is kept aligned with applicable government policies, legislation and trade agreements. P06 External Strategic Sourcing Policy September 2015 Page 4 of 21

5 Page: 5 of OBJECTIVE The overall objective of this policy is to ensure OECM acquires products and services to meet the needs of their stakeholders in an economically efficient, open, transparent, competitive and consistent manner. This policy follows principles that balance receiving value for money with a process that is transparent, fair and accessible. 3.1 Accountability OECM is accountable for the results of its sourcing, and agreement decisions and the transparency and fairness of its processes. Conflicts of interest, both real and perceived, are avoided at all times. Relationships will not be created which result in reliance on a particular supplier for a particular product and/or service. 3.2 Demand Aggregation OECM will leverage stakeholders buying power by consolidating spend to achieve economies of scale and service improvement. 3.3 Quality Service Delivery OECM aligns its sourcing events with the needs of its stakeholders. Savings, stakeholders receive through OECM s agreements, can be redeployed to other areas within their organizations. 3.4 Best Practices OECM will develop and/or apply sourcing best practices used in both private and public sectors. 3.5 Transparency Procurement opportunities are developed fairly with the goal of providing suppliers equitable access to information, required processes and results. Standardized processes are deployed, where possible, removing inefficiencies and creating a level playing field. OECM will ensure that its sourcing processes are open to any and all qualified suppliers, and all related processes are conducted in a fair, open and transparent manner. P06 External Strategic Sourcing Policy September 2015 Page 5 of 21

6 Page: 6 of Value For Money and Savings OECM uses a value for money approach that aims to deliver quality products and services at the lowest possible cost ensuring they meet or exceed known stakeholder requirements. OECM tracks and reports savings using a rigorous validation methodology. 4. CODE OF ETHICS To remain an ethical, professional, and accountable supply chain organization, all OECM staff will adhere to the following: 4.1 Personal Integrity and Professionalism Honesty, care and due diligence will be integral to all activities with all stakeholders and suppliers; Respect for each other and for the environment will be demonstrated; Confidential information will be safeguarded; and, Staff or advisors will not accept gifts or favours, provide preferential treatment, publicly endorse suppliers or products, or engage in any other activities that may create a real or perceived conflict of interest. 4.2 Accountability and Transparency Supply chain activities will be open and accountable; Sourcing will be conducted in a fair and transparent manner and obtain best value for participating stakeholders; and, Resources will be used in a responsible, efficient, and effective manner. 4.3 Compliance and Continuous Improvement Staff will continuously work to improve their skill levels, sourcing policies, processes and practices, share sourcing knowledge, and adopt and share innovative techniques and practices. All OECM staff will comply with this Code of Ethics and the laws of Canada and Ontario. P06 External Strategic Sourcing Policy September 2015 Page 6 of 21

7 Page: 7 of CONTRACTING INSTRUMENTS OECM s successful sourcing events result in master agreements with the highest-scoring supplier(s). Interested stakeholders contract directly with those suppliers through the execution of a Client Supplier Agreement (CSA), which is a Schedule to the master agreement. OECM has a proactive vendor management program but does not manage the day-to-day purchasing activities within the stakeholder s organizations. Refer to Section for information around how OECM manages its agreements. 6. PROCUREMENT AND AGREEMENT APPROVALS Procurement documents (i.e. Request for Proposals (RFP), Request for Information (RFI), Request for Quotation (RFQ), etc.) may be posted on a public electronic tendering system(s) once approved by the Director, Sourcing and Relationship Management. OECM s President and CEO approves the execution of all master agreements, and applicable amendments resulting from OECM s external sourcing events. The Director, Sourcing and Relationship Management will review and recommend, as appropriate, master agreement amendments. 7. PROCUREMENT PROCESS OECM has adopted the following mandatory procurement requirements identified in the BPS Procurement Directive. 7.1 Procurement Planning OECM will undertake procurement planning, in collaboration with participating stakeholders, as an integral part of the sourcing process to ensure that business needs for stakeholders are met and the objectives of this policy are achieved. A business case and project plan will be developed, approved (by the Director, Sourcing and Relationship Management), and maintained for each sourcing event. OECM will seek to collaborate with other group purchasing and shared service organizations where appropriate to effectively leverage purchasing requirements to achieve better value for money. P06 External Strategic Sourcing Policy September 2015 Page 7 of 21

8 Page: 8 of 20 Prior to seeking procurement approval and selecting a procurement method, OECM will assess the risk and complexity of the project to determine the most appropriate procurement strategy (e.g. standard RFP versus a Negotiated RFP). Negotiated RFPs, for instance, allow OECM to obtain improved performance standards and improved pricing through structured, transparent and defensible negotiation processes. Additionally, OECM may conduct total life cycle costing analysis to ensure all costs and benefits are considered. OECM assesses risk and privacy impacts, and develops appropriate mitigation strategies aligned with legislative requirements as required. Supplier consultations, via invitation and publically posted invitations, are carried out for each sourcing event to ensure there is a comprehensive understanding of the industry. Where results of informal supplier or product research are insufficient, OECM may use a formal Request for Information ( RFI) or Request for Expressions of Interest (RFEI) if warranted by time and effort. A response to an RFI or RFEI will not be used to pre-qualify a potential supplier and will not influence the chances of the participating suppliers from becoming the successful proponent in any subsequent opportunity. 7.2 Supplier Prequalification OECM may use a Request for Supplier Qualification (RFSQ) process to gather supplier information and qualifications in order to pre-qualify suppliers for products or services or to identify qualified suppliers in advance of future requirements. The RFSQ may be utilized as a pre-qualifying stage in a two-stage procurement process where only qualified suppliers are invited to participate in the second stage. 7.3 Consultants and External Lobbyists Consulting services must be competitively procured irrespective of value, unless an exemption as contemplated in Appendix A of this policy applies. Consulting services with a procurement value of $0 up to but not including $100,000 may be procured through an invitational competitive method or an open competitive method. Consulting services with a procurement value of $100,000 or greater will be procured by an open competitive method. The overall value of the procurement will not be reduced (e.g. dividing a single procurement into multiple procurements) in order to circumvent the required competitive process. OECM will not procure the services of an external lobbyist on its behalf (Lobbyists Registration Act amended 2010). P06 External Strategic Sourcing Policy September 2015 Page 8 of 21

9 Page: 9 of Competitive Procurement OECM will conduct open competitive procurements for all strategic sourcing initiatives conducted on behalf of stakeholders provided competition between suppliers exist. OECM may negotiate with sole source suppliers (e.g. for software) on an exception basis. All procurements with a total value equal to or more than $100,000 will be publically posted on an electronic tendering system Competitive Procurement Proposal Response Time and Receipt OECM will provide suppliers with a minimum response time of fifteen (15) calendar days for submission in response to an RFX. OECM will provide suppliers with a minimum of thirty (30) calendar days for procurements assessed as complex and/or high risk. OECM typically provides two (2) opportunities for suppliers to ask questions about the RFX document. Therefore, if OECM has misinterpreted a question, the supplier(s) may submit another question seeking further clarification. RFX documents will contain submission requirements, including the date, time and location. OECM will only close tenders on normal working days (Monday to Friday, excluding holidays), between the hours of 10 a.m. and 3 p.m. Submissions not received at the place and time specified in the RFX document will not be considered further, and shall be returned to the supplier, unopened, at the first opportunity Evaluation and Selection Every competitive RFX posted by OECM will disclose the approved evaluation methodology (including point allocations) and process to be used when assessing submissions, including the method of resolving a tie score. Any changes to the evaluation process will be made via posted addendum. Mandatory requirements will be kept to a minimum to ensure that no submission is unnecessarily disqualified. OECM may provide suppliers the opportunity, to rectify any mandatory requirement deficiencies at its sole and absolute discretion. Maximum justifiable weighting will be allocated to the price/cost component of the evaluation requirements. OECM will engage stakeholders in the evaluation of compliant RFX submissions. Evaluation team P06 External Strategic Sourcing Policy September 2015 Page 9 of 21

10 Page: 10 of 20 members are made aware of the restrictions related to utilization and distribution of confidential and commercially sensitive information collected through the competitive procurement process and refrain from engaging in activities that may create or appear to create a conflict of interest and must sign a conflict of interest/non-disclosure declaration prior to receiving submissions. Evaluators must ensure that everything they say or write about submissions is fair, factual, and fully defensible. Each member of the evaluation team will review and score each submission. OECM will be responsible for verifying financial and/or pricing data contained in the submissions. Following the evaluation process the highest-scoring submission(s) that met all of the mandatory requirements set out in the RFX will be declared the winning submission. Records of evaluation scores will be retained for audit purposes. The evaluation process may also include an assessment of a supplier s willingness to agree to the various terms and conditions in OECM s agreement template included in posted RFX. Unless expressly requested in the procurement document, OECM will not consider alternative strategies or solutions proposed by a supplier Agreement Award Authorities related to agreement award are outlined in Section 6 Procurement and Agreement Approvals. OECM will not discriminate against or provide preferential treatment to any supplier during any part of the sourcing process or when agreements are awarded. However, OECM reserves the right to not award an agreement to a supplier, in its sole and absolute discretion, in such cases where the supplier: Is not financially viable; Has misrepresented or provided inaccurate or misleading information; Has previously breached an agreement with OECM; Is in litigation with OECM; Has otherwise failed to perform such obligations to the reasonable satisfaction of OECM (e.g. has not submitted required reporting or cost recovery fees, disclosed executed Client Supplier Agreement); Has been charged or convicted of an offence related to the delivery of the product or service; Has revealed a conflict of interest or unfair advantage, or evidence of any unfair advantage is brought to the attention of OECM; and, P06 External Strategic Sourcing Policy September 2015 Page 10 of 21

11 Page: 11 of 20 Has any employees or agents who have been found to have colluded with any other supplier, its employees or agents in the preparation of the proposal submitted in response to an OECM procurement document. OECM will enter into a signed written master agreement with a successful supplier(s) before the provision of products or services commences. The executed master agreement will be based on the agreement posted with the RFX containing OECM s standard agreement terms and conditions. Supplier-provided agreements are not to be used whenever possible. OECM will first execute a master agreement with the highest-scoring supplier(s). The supplier will sign the master agreement, followed by OECM. Participating stakeholders will subsequently execute individual CSAs with the supplier(s). The executed master agreement will take precedence over the CSA if there are any conflicting terms or conditions between the agreements. All agreements will include suitable cancellation or termination clauses and appropriate legal advice will be obtained in the development of these clauses. Should customers have an immediate need for products and services while the Client Supplier Agreement is being approved, an interim purchase order process may be used. OECM will assess the appropriateness of this, and the justification for this will be documented and approved by the appropriate authority. The term of the agreement and any options to extend the agreement will be set out in the procurement document. Should the value of the procurement increase and exceed the original approval authority, OECM will ensure all necessary approvals are in place. If price escalation provisions are included in the agreement OECM will ensure that an appropriate framework and controls are included in agreement documents. Once the preferred supplier has been identified and the agreement has been awarded and signed, OECM will notify all suppliers that an agreement has been signed and the competitive process is complete. OECM will post the name(s) of the successful supplier(s) on the electronic tendering system(s) used to post the RFX, whenever appropriate. The agreement award notification will include the agreement start and end dates including any options for extension Debriefings OECM formally invites all suppliers (successful and unsuccessful) who submitted a proposal to an RFX to a debriefing session. Debriefings will be scheduled only after an agreement between the successful supplier(s) and OECM has been signed. P06 External Strategic Sourcing Policy September 2015 Page 11 of 21

12 Page: 12 of 20 OECM will only respond to a supplier s specific questions about their submission during the debriefing session. Information about other supplier submissions will not be discussed during the debriefing Non-Competitive Procurement Exceptions may exist whereby OECM may use a non-competitive process for products, services or construction over $100,000. The allowable exceptions to a non-competitive procurement must comply with the Agreement on Internal Trade (AIT). Formal documentation in the form of a business case will be completed in order to support and justify the approval of any exceptions. Non-competitive procurement processes including single and sole source procurements are defined in Appendix A - Glossary of Terms Agreement Management OECM proactively manages their supplier agreements. An agreement management process will be established in collaboration with the stakeholders and each supplier upon agreement execution. OECM will ensure the following provisions, where applicable: Establish an appropriate governance framework to provide agreement and service management oversight; Monitor supplier performance, ensuring adherence to agreed-upon contractual performance metrics; Actively engage and gather feedback from stakeholders on supplier performance; Conduct regular business reviews with supplier partners to review performance, risk assessment and management, and address any issues; Track, validate and report savings; Conduct agreement audits/spot checks as needed; and, Pursue innovation and continuous improvement throughout the life of the agreement. OECM agreements contemplate renewal processes and timing. Prior to the expiry of the agreement, OECM, in collaboration with the stakeholders, will review and determine if an agreement should be extended or retendered. P06 External Strategic Sourcing Policy September 2015 Page 12 of 21

13 Page: 13 of PROCUREMENT RECORDS RETENTION OECM will retain sourcing documents, in a recoverable form, as well as any other related information for reporting and auditing purposes for a period of seven (7) years. OECM will handle, store and maintain supplier s confidential and commercially sensitive information in a secure manner. 9. CONFLICT OF INTEREST OECM will consider any conflicts of interest during the procurement process applicable to all employees, advisors, stakeholders, external consultants or suppliers and take appropriate steps to remove any and all conflicts of interest, either real or perceived, from sourcing and procurement processes. All individuals involved in sourcing initiatives must declare all actual or potential conflicts of interest. 10. DISPUTE RESOLUTION PROCESS Suppliers may submit RFX protests concerning any aspect of the procurement process. The Director, Sourcing and Relationship Management, in consultation with stakeholders, will oversee all disputes and ensure these are handled in an ethical, fair, reasonable and timely manner. 11. REPORTING OECM will maintain agreement records and provide reports to the Board of Directors, stakeholders, and customers as required. 12. ENVIRONMENTAL PROCUREMENT OECM, in collaboration with stakeholders, will consider environmental sustainability and stewardship in the development of specifications, terms and conditions and agreements. 13. RESPONSIBILITIES AND ACCOUNTABILITIES 13.1 Board of Directors Endorse OECM s Annual External Sourcing Plan.. P06 External Strategic Sourcing Policy September 2015 Page 13 of 21

14 Page: 14 of President and Chief Executive Officer Approve this policy and associated revisions; Ensure OECM staff complies with the requirements of this policy; Establish appropriate organizational structure, systems, policies, processes, procedures, including appropriate staff development, to enable the responsible and effective provision of strategic sourcing, procurement, and business relationship services; Approve the Annual Sourcing Plan ensuring the plan responds to sector needs; Approve OECM externally sourced master agreements, and amendments thereto; and, Inform the Board of Directors of all sourcing agreement awards Director of Finance and Corporate Services Provide input into the OECM Annual Sourcing Plan and individual project sourcing strategies as related to financial issues and revenue generation; Review and verify RFX evaluations involving pricing and financial data, if required; and, Support sourcing initiatives related to Finance and Corporate Services as required Director of HR, Marketing and Communications Provide input into the OECM Annual Sourcing Plan and individual project sourcing strategies as related to Human Resources, Marketing and Communications; and, Support sourcing initiatives related to Human Resources, Marketing and Communications as required Director of Sourcing and Relationship Management Review and update this policy for approval, as needed; Lead the development of an Annual Sourcing Plan that reflects the needs of stakeholders and OECM; Ensure effective management of strategic sourcing, and agreement management, conducted in collaboration with stakeholders; Establish and maintain related guidelines, best practices and tools necessary for effective strategic sourcing, and agreement management; P06 External Strategic Sourcing Policy September 2015 Page 14 of 21

15 Page: 15 of 20 Review and approve procurement documents (e.g. RFXs, addendum, supplier invitations for consultation, etc.) prior posted on a public electronic tendering system; Review and approve OECM website sourcing content; Review and recommend master agreement amendments, where applicable; Coordinate periodic sourcing and agreement reporting to stakeholders, the Board of Directors and customers as required.; Establish and manage a dispute resolution mechanism for procurement as per the AIT; and, Investigate and respond expeditiously to sourcing or agreement complaints or concerns All Responsible for compliance to this Policy; Ensure that best value for money is received for contracted products and services; and, Seek the necessary approval authority for all procurements prior to conducting the procurement process OECM Contracted Legal Counsel As required: Review legal procurement and agreement templates; Review standard procurement terms and conditions; Review procurements prior to posting on a public electronic tendering system(s) as well as master agreements prior to execution; and Provide legal advice on procurement and agreements. 14. APPENDIX A: GLOSSARY OF TERMS A.1 Accountability The obligation of an employee, agent or other person to answer for or be accountable for, work, action or failure to act following their delegated authority. A.2 Accessibility for Ontarians with Disabilities Act OECM is committed to the highest possible standards for accessibility ensuring its internal agreements are consistent with the Ontario Human Rights Code, the Ontarians with Disabilities P06 External Strategic Sourcing Policy September 2015 Page 15 of 21

16 Page: 16 of 20 Act, 2001 and Accessibility for Ontarians with Disabilities Act, (Amended 2010) and its regulations in order to achieve accessibility for Ontarians with disabilities. A.3 Agreement on Internal Trade (AIT) A national agreement that regulates trade between the provinces to ensure equal access to public sector procurement for all Canadian suppliers. The Agreement aims to reduce barriers to the movement of persons, products, services and investments within Canada. The agreement can be found at: A.4 Approval Authority A.5 Award The authority delegated to a person designated to occupy a position to approve on its behalf one or more procurement functions within the procure-to-pay cycle up to specified dollar limits subject to the applicable legislation, regulations and procedures in effect at such time. The notification to a proponent of acceptance of a proposal, quotation or tender that results in an agreement. A.6 Procurement Protest A.7 BPS A dispute raised against the methods employed or decisions made by a contracting authority in the administration of a process, leading to the award of an agreement. The Broader Public Sector in Ontario. A.8 BPS Procurement Directive As part of the Broader Public Sector Accountability Act 2010, the purpose of the BPS Procurement Directive is to ensure that publicly funded products, services and construction are acquired by BPS organizations through an open fair and transparent process. The directive outlines responsibilities of BPS organizations and ensures that procurement processes are handled consistently throughout the BPS. P06 External Strategic Sourcing Policy September 2015 Page 16 of 21

17 Page: 17 of 20 A.9 Competitive Procurement A set of procedures for developing an agreement through a submission or competitive proposal. The intent is to solicit fair, impartial, competitive submissions. A.10 Conflict of Interest A situation in which financial or other personal considerations have the potential to compromise or bias professional judgment and objectivity. An apparent conflict of interest is one in which a reasonable person would think that the professional s judgment is likely to be compromised. It is important to note that a conflict of interest exists whether or not decisions are affected by a personal interest; a conflict of interest implies only the potential for bias, not a certainty. For example: A situation in which someone who must make a decision in an official or professional capacity may stand to profit personally from the decision. A.11 Consulting Service The provision of expertise or strategic advice that is presented for consideration and decisionmaking. A.12 Construction Construction, reconstruction, demolition, repair or renovation of a building, structure or other civil engineering or architectural work and includes site preparation, excavation, drilling, seismic investigation, the supply of products and materials, the supply of equipment and machinery if they are included in and incidental to the construction, and the installation and repair of fixtures of a building, structure or other civil engineering or architectural work, but does not include professional consulting services related to the construction agreement unless they are included in the procurement. A.13 Contract An obligation, such as an accepted offer, between competent parties upon a legal consideration, to do or abstain from doing some act. It is essential to the creation of an agreement that the parties intend that their agreement shall have legal consequences and be legally enforceable. P06 External Strategic Sourcing Policy September 2015 Page 17 of 21

18 Page: 18 of 20 The essential elements of a agreement are an offer and an acceptance of that offer; the capacity of the parties to agreement; consideration to support the agreement; a mutual identity of consent or consensus ad idem; legality of purpose; and sufficient certainty of terms. A.14 Evaluation Requirements A benchmark, standard or yardstick against which accomplishment, conformance, performance and suitability of an individual, alternative, activity, product or plan is measured to select the best supplier through a competitive process. Criteria may be qualitative or quantitative in nature. A.15 Evaluation Matrix A tool allowing the evaluation team to rate supplier proposals based on multiple pre-defined evaluation requirements. A.16 Evaluation Team Individuals designated/responsible for making supplier agreement award recommendations. The evaluation team would typically include representatives from the participating stakeholders representing finance, IT, procurement, facilities or other subject matter expert(s). Each member participates to provide business, legal, technical and financial input. A.17 Freedom of Information and Protection of Privacy Act (FIPPA) A.18 Goods The Freedom of Information and Protection of Privacy Act (FIPPA) is a National legislation stipulating a right of access to records held by public bodies and regulates how public bodies manage personal information. The FIPPA can be found at: In relation to procurement, moveable property (including the costs of installing, operating, maintaining or manufacturing such moveable property) including raw materials, products, equipment and other physical objects of every kind and description whether in solid, liquid, gaseous or electronic form, unless they are procured as part of a general construction agreement. A.19 Master Agreement P06 External Strategic Sourcing Policy September 2015 Page 18 of 21

19 Page: 19 of 20 A formal written document entered into at the end of the procurement process between the highest-scoring supplier and OECM. A.20 Negotiated RFP A.21 Offer A non-binding process used to request suppliers to supply solutions for the delivery of complex products or services or to provide alternative options or solutions offering the parties greater flexibly to reach a mutually acceptable final agreement, along with less legal exposure. A promise or a proposal made by one party to another, intending the same to create a legal relationship upon the acceptance of the offer by the other party. A.22 Procurement An acquisition by any means, including by purchase, rental, lease or conditional sale, of products, services or construction. A.23 Request for Information (RFI) A document issued to potential suppliers to gather general supplier, service or product information. It is a procurement procedure whereby suppliers are provided with a general or preliminary description of a problem or need and are requested to provide information or advice about how to better define the problem or need, or alternative solutions. A response to an RFI must not pre-qualify a potential supplier and must not influence their chances of being the successful proponent on any subsequent opportunity. A.24 Request for Proposal (RFP) A document used to request suppliers 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 requirements in which price is not the only factor. P06 External Strategic Sourcing Policy September 2015 Page 19 of 21

20 Page: 20 of 20 A.25 Request for Quotation (RFQ) A document similar to an RFT where OECM would describe exactly what needs to be purchased and the evaluation is based solely on price. A.26 Request for Tender (RFT) A document used to request supplier responses to supply goods or services based on stated delivery requirements, performance specifications, terms and conditions. An RFT usually focuses the evaluation criteria predominately n price and delivery requirements. A.27 Services Intangible products that do not have a physical presence. No transfer of possession or ownership takes place when services are sold, and they (1) cannot be stored or transported, (2) are instantly perishable, and (3) come into existence at the time they are bought and consumed. A.28 Single Source The use of a non-competitive procurement process to acquire products or services from a specific supplier even though there may be more than one supplier capable of delivering the same products or services. A.29 Sole Source The use of a non-competitive procurement process to acquire products or services where there is only one available supplier for the source of the products or service. A.30 Stakeholders May be School Boards, Colleges of Applied Arts and Technology, Universities, Broader Public Sector entities, and Not For Profit Organizations interested in participating in OECM led procurement initiatives, other collaborative sourcing organizations, government ministries. A.31 Submission A proposal, quotation or tender submitted in response to a solicitation from a contracting authority. A submission is the response to any RFX. P06 External Strategic Sourcing Policy September 2015 Page 20 of 21

21 Page: 21 of 20 A.32 Supplier Any person who, based on an assessment of that person's financial, technical and commercial capacity, is capable of fulfilling the requirements of a procurement request. A.33 Supply Chain Management The full range of processes that manage the flow of products and services, information, and dollars between suppliers, customers and end-users, as well as the supporting infrastructure required to enable these processes. A.34 Transparency A fundamental objective of OECM s Strategic Sourcing Policy. OECM must be open to all stakeholders. OECM s suppliers must have fair access to information on procurement opportunities, processes and results. A.35 Debriefing OECM offers a debriefing session to all proponents who submit a proposal in response to one of our RFXs. The sessions allow OECM to discuss the strengths and weaknesses of the proposal, and to provide constructive feedback that may assist the proponent in future procurement opportunities. A.36 Value for Money A fundamental objective of this Policy is to enable customers to maximize the value they receive from the use of public funds. A value for money approach aims to deliver products and services with a lower total life-cycle cost while maintaining high standards. P06 External Strategic Sourcing Policy September 2015 Page 21 of 21