Frequently Asked Questions: Broader Public Sector Procurement Directive

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Ashley Glenn
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1 Frequently Asked Questins: Brader Public Sectr Prcurement Directive 1. What is the Brader Public Sectr (BPS) Prcurement Directive? The Brader Public Sectr Accuntability Act, 2010 prvides the authrity fr the Management Bard f Cabinet t issue directives gverning the prcurement f gds and services by designated brader public sectr rganizatins. The Brader Public Sectr (BPS) Prcurement Directive prvides cnsistent prcurement practices fr BPS rganizatins t: imprve accuntability and transparency fr prcurement decisins and prcesses, and maximize the value that BPS rganizatins receive frm the use f public funds. The BPS Prcurement Directive is based n the Supply Chain Guideline which was develped in cnsultatin with BPS rganizatins. 2. What is the difference between the BPS Prcurement Directive and the Supply Chain Guideline? The BPS Prcurement Directive replaces the BPS Supply Chain Guideline issued by the Ministry f Finance in The BPS Prcurement Directive strengthens the Supply Chain Guideline t better align with prcurement rules within the Ontari Public Service and related trade agreements by intrducing mandatry requirements related t: cmpetitive acquisitin f cnsulting services regardless f dllar value, the apprval authrity framewrk related t cnsulting services, and effective management f BPS cntracts. 3. Wh is cvered by the BPS Prcurement Directive? The BPS Prcurement Directive applies t all designated brader public sectr rganizatins under the Brader Public Sectr Accuntability Act, 2010 as fllw: a. every hspital, b. every schl bard, c. every university in Ontari and every cllege f applied arts and technlgy and pstsecndary institutin in Ontari whether r nt affiliated with a university, the enrlments f which are cunted fr purpses f calculating annual perating grants and entitlements, d. every apprved agency designated as a children s aid sciety under subsectin 15 (2) f Part I f the Child and Family Services Act, e. every cmmunity care access crpratin,

2 f. every crpratin cntrlled by ne r mre designated brader public sectr rganizatins that exists slely r primarily fr the purpse f purchasing gds r services fr the designated brader public sectr rganizatin r rganizatins, g. every publicly funded rganizatin that received public funds f 10 millin dllars r mre in the previus fiscal year f the Gvernment f Ontari, and h. every rganizatin that is prescribed fr the purpses f this definitin. Please refer t questin six fr a list f entities that are currently exempt frm the definitin f designated brader public sectr rganizatin. 4. When will designated brader public sectr rganizatins have t cmply with the BPS Prcurement Directive? The implementatin will fllw a phased-in apprach. The timelines are: April 1, 2011 Hspitals, Schl Bards, Clleges, Universities Cmmunity Care Access Crpratins and Children s Aid Scieties 5. Des the BPS Prcurement Directive apply t all prcurement activities? One f the purpses f the BPS Prcurement Directive is t ensure that publicly funded gds and services are acquired by BPS rganizatins thrugh a prcess that is fair, transparent and cmpetitive. Fr designated brader public sectr rganizatins, the BPS Prcurement Directive applies t the purchase f any gds, cnstructin, and services, including but nt limited t infrmatin technlgy and cnsulting services made using public funds. Only exemptins, exceptins r nn-applicatin clauses existing under the Agreement n Internal Trade (AIT) r ther trade agreements apply. Furthermre, the BPS Prcurement Directive als applies t these gds and services purchased jintly with ther rganizatins. 6. Are there rganizatins that dn t need t fllw the BPS Prcurement Directive? The fllwing entities, amng thers, are currently exempt frm the definitin f designated brader public sectr rganizatin: municipalities, lcal bards, lng term care hmes, bards f health, rganizatins that undertake their activities fr the purpse f prfit t their sharehlders and public bdies as designated under the regulatins f the Public Service f Ontari Act. As such, these rganizatins are nt required t fllw the BPS Prcurement Directive. As well, publicly funded rganizatins that received less than $10 millin in public funds in the previus fiscal year f the Gvernment f Ontari are nt required t fllw the BPS Prcurement Directive. Thse BPS rganizatins receiving less than $10 millin in funding are encuraged t apply best practices t increase efficiency, fairness and transparency in their prcurement practices.

3 7. My rganizatin receives funding frm varius surces. Which funds d I include t calculate the value f public funds received in rder t determine if I am a publicly funded rganizatin that received public funds f 10 millin dllars r mre in the previus fiscal year f the Gvernment f Ontari? Yu have t take int accunt the public mney that is prvided directly by the Gvernment f Ontari r a public bdy as designated in the regulatins under the Public Service f Ontari Act, 2006, thrugh a grant, transfer payment r ther funding arrangement. It als includes the mney received by the schl bard frm taxes levied under the Educatin Act fr schl purpses. In the calculatin, d nt include: mney that is paid fr the prvisin f gds r services t the Gvernment f Ontari r an agency f the Gvernment f Ontari, mney that is paid by the Gvernment f Ontari r an agency f the Gvernment f Ontari under a fee fr service arrangement, r mney that is prvided by the Gvernment f Ontari r an agency f the Gvernment f Ontari, by way f a lan r lan guarantee. 8. Where can I find a list f the agencies f the Gvernment f Ontari r public bdies that will help me in my calculatin f public funds? Please cnsult Regulatin 146/10 under the Public Service f Ontari Act, 2006 fr a cmplete listing f public bdies. 9. I am a publicly funded rganizatin but I received less than $10 millin in public funds during the previus fiscal year f the gvernment. Is there anything I have t d? While nt in scpe under the BPS Prcurement Directive, rganizatins that receive less than $10 millin in public funds are still encuraged t apply best practices t increase efficiency in their prcurement practices. 10. What are the requirements included in the BPS Prcurement Directive? The BPS Prcurement Directive has the fllwing requirements: Supply Chain Cde f Ethics Prcurement Plicies and Prcedures (PPP) 11. What are the threshlds fr cmpetitive prcurement under the BPS Prcurement Directive? Different requirements will apply based n the value and the type f gds and services that is prcured by designated BPS rganizatins.

BPS rganizatins may chse t keep their existing plicies but must ensure they meet all the requirements f the BPS Prcurement Directive. 13.

4 12. I already have prcurement plicies and prcedures (PPP). D I have t replace them with the PPP included in the BPS Prcurement Directive? The PPP prvided in the BPS Prcurement Directive is nt intended t replace existing plicies. BPS rganizatins may chse t keep their existing plicies but must ensure they meet all the requirements f the BPS Prcurement Directive. 13. I am part f a purchasing grup and nt all the rganizatins in ur grup have t fllw the BPS Prcurement Directive. Des that mean I can t buy thrugh that grup anymre? If yu are a designated brader public sectr rganizatin, the BPS Prcurement Directive applies t yur individual and jint prcurement activities. Yu will have t ensure that yur purchasing activities cnducted thrugh the purchasing grup meet the requirements f the BPS Prcurement Directive. 14. What are the tls available t help rganizatins implement the BPS Prcurement Directive? The BPS Supply Chain Secretariat is wrking with ther ministries t prvide training, templates and prcess maps t aid in implementatin. 15. Will I have t reprt n the implementatin f the BPS Prcurement Directive? Of the designated BPS rganizatins, nly hspitals are required t prepare attestatins regarding their cmpliance with specific aspects f the legislatin. Other designated brader public sectr rganizatins are currently nt required t reprt. Hwever, the legislatin prvides the pwer t make regulatins requiring these rganizatins t prvide attestatins f cmpliance with the requirements f the Act.

5 Ministries may chse t prvide plicy directin n reprting. Yur ministry will cmmunicate their expectatins. 16. Lking at the definitin f cnsulting as strategic advice, legal and audit seem t fit int this definitin. Are they? The Directive defines cnsultant as a persn r entity that under an agreement, ther than an emplyment agreement, prvides expert r strategic advice and related services fr cnsideratin and decisin-making. Further, the Directive defines "cnsulting services" as the prvisin f expertise r strategic advice that is presented fr cnsideratin and decisin-making. Whether a service in questin is deemed cnsulting service shuld be determined by the nature f the service being prcured and nt by the designated prfessin being represented. Services prvided by the licensed prfessinals may cnstitute cnsulting services. Where an rganizatin is seeking t btain expertise r strategic advice fr cnsideratin and decisin-making, ntwithstanding the designated prfessin prviding the service, the rganizatin is seeking t btain cnsulting services. Under these circumstances, rganizatins must utilize cmpetitive prcurement irrespective f the value f the prcurement. At the same time, prcurement f services that in Ontari may, by legislatin r regulatin be prvided nly by any f the fllwing licensed prfessinals: medical dctrs, dentists, nurses, pharmacists, veterinarians, engineers, land surveyrs, architects, accuntants, lawyers and ntaries, des nt cnstitute cnsulting services. Organizatins shuld still clearly delineate between prfessinal services that are prviding expertise r strategic advice fr cnsideratin and decisin-making and prfessinal services that fall utside this scpe. It is up t each rganizatin t determine whether the services they require are cnsulting services r nt. 17. Des the University president have t sign ff n every nn-cmpetitive prcurement even if the exemptin falls under the AIT exemptins? Fr nn-cmpetitive prcurement, the President r CEO must apprve ALL cnsulting service cntracts under $1M; the bard f directrs must apprve ALL cnsulting services fr $1M r mre. The President r CEO may nly apprve nn-cmpetitive prcurement f cnsulting services where there is an applicable exemptin, exceptin, r nn-applicatin clause under the trade agreements. 18. D bks fr the bkstre fall under the AIT exemptin f gds fr resale? Yes, but nly if the bks in questin are prcured fr resale t the public. AIT Annex 502.4, sub-sectin (a) f Sectin L, Nn-Applicatin, ntes that prcurement f gds intended fr resale t the public is excluded. 19. What abut Fundatins?

6 If yu are asking abut funds received by a university frm a fundatin, here is what applies. The directives apply t all "public funds", that is, funds received frm an Ontari gvernment ministry r a "public bdy" under the Act. Funds received by a university frm a fundatin which is nt a public bdy wuld nt be cvered by the Directives. Hwever, rganizatins are encuraged t apply best practices such as thse in the Directives when spending ther funds as well. Dnrs, as well as taxpayers, expect that their dnatins will be used wisely and with due regard fr value fr mney. As fr the rules which apply t a fundatin affiliated with a university, if a fundatin is legally part f a university, then the BPS Prcurement and Expenses Directives apply. Hwever, if the fundatin is a separate legal entity, then the determinatin wuld be based n whether the separate legal entity (the fundatin) received $10M r mre in public funds. If the fundatin received $10 millin r mre, then it is subject t bth f the BPS Directives. Organizatins are encuraged t seek legal cunsel t determine the exact legal status f a specific rganizatin. 20. Re Sec d we need an apprval authrity schedule fr each f the 5 functinal prcurement rles? Yes. Organizatins must establish and dcument an apprval authrity schedule (AAS) fr prcurement f gds and nn-cnsulting services. The AAS must identify, fr each f the functinal prcurement rles identified in Sectin f the Directive (Requisitin, Budgeting, Cmmitment, Receipt and Payment), authrities that are allwed t apprve prcurements fr different dllar threshlds. The AAS must be apprved by the bard f directrs f the Organizatin r its equivalent. In smaller rganizatins, these rles may be staffed by the same individuals but the rganizatin must dcument each persn's rle and apprval authrity fr each functinal prcurement rle. 21. Is the Cnflict Of Interest template yu sent ut mandatry, and des everyne have t sign it? N, this and ther templates n the BPS Supply Chain Secretariat website, are prvided t assist rganizatins that d nt already have standard dcuments. Use f these templates is nt mandatry. Sectin f the Directive states: Evaluatin team members must sign a cnflict-f-interest declaratin and nn-disclsure f cnfidential infrmatin agreement. These frms must be signed befre evaluatin f every prcurement. 22. Wh d I cntact if I have questins abut the BPS Prcurement Directive? Please cntact: Ein MacDnald, Directr Strategic prcurement Services ein.macdnald@queensu.ca Tel: Ext 32175

De minimis aid declaration

De minimis aid declaration De minimis aid declaratin Declaratin within the scpe f the prvisin f aid as referred t in the de minimis aid Regulatin (OJ 2006, L379). It is recmmended that yu read the explanatry ntes in the annex t