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Effective: September 21, 2005
Responsibility: Vice-President and Chief Financial Officer

• Purpose
• Statement of Policy
• History
• References
• Person Responsible for Interpretation and Application
• Appendix A - Definitions
• Appendix B – Procurement modes - Guidelines
• Appendix C – Procurement process
• Appendix D - Corporate Procurement card
• Appendix E - Procurement of goods and services via the Internet
• Appendix F - Guidelines for Social and Economic Development Objectives
• Appendix G - Employee Purchase Plans

PURPOSE

The purpose of this policy is to ensure that the Corporation receives the best value for the goods and services required for its operations and that these goods and services are purchased through open, fair, transparent, consistent, cost effective and cost efficient procurement procedures.

SCOPE

This policy applies to the procurement of goods and services including and without limitation:

• General products and services required to support operations;
• Maintenance agreements;
• Production goods and services;
• Professional and consulting fees;
• Real estate and construction services; and
• Technology related products and services;

It is also applicable to the key procurement functions that govern the process of procuring goods and services within the Corporation, namely:

• Bid solicitation;
• National agreements management;
• Supplier selection; and
• Supplier relationship management (SRM).

This policy does not apply to the following types of contracts and Agreements:

• Purchase / lease of Real estate property;
• Programming and intellectual property;
• Business Agreements relating to broadcast distribution undertakings (BDU’s); and
• Engaging individuals, including talent.

STATEMENT OF POLICY

The objective of this policy is to ensure that the Corporation receives best value for the goods and services required for its operations, through open, fair, transparent consistent, cost effective and cost efficient procurement procedures. To ensure compliance with these objectives, the general principles of responsibility, accountability, transparency and non-discrimination guide the procurement process. Furthermore, all purchases of goods and services for the Corporation shall be carried out in accordance with all applicable laws, CBC / Radio-Canada’s Social and Economic Development Objectives, as well as any applicable international trade agreements.

Supply Management Services (SMS) mandate is to ensure compliance to these objectives; therefore SMS should be involved in or consulted for all procurement activities of the Corporation subject to this policy with the exception of procurements under $ 1,000 when a Purchase Order is not required. SMS will determine its level of involvement based on the specific requirements of each procurement.

All purchases of goods or services will be made in accordance with the established procurement guidelines and processes. Although single source solicitation is permitted in certain situations as set out in this policy, employees should favour competitive bids, where feasible, when procuring goods and services to ensure the Corporation procures its goods and services requirements in the most cost effective manner.

Such purchases will be made with appropriate management approval as required and in accordance with this policy and any applicable CBC/Radio-Canada management policies.

I. Roles and Responsibilities

Supply Management Service (SMS)

SMS will proactively assist all CBC/ Radio-Canada business units with their procurement activities, by providing best-in-class procurement practices in addition to guidance and support, while acting as an unbiased and independent party to the procurement activities. As such, SMS will work closely with CBC /Radio-Canada internal stakeholders and suppliers to effectively identify cost efficient solutions and consequently, drive value for CBC/Radio-Canada.

The role of the SMS is to, but not limited to:

• Ensure that the purchases of goods and services required by the Corporation are carried out in the most efficient, timely and cost effective manner possible while complying with the procurement process described in this policy and all other applicable corporate policies;
• Identify opportunities for value creation by applying industry best procurement practices, such as consolidating needs, process re-engineering and /or negotiating better agreements with suppliers;
• Administer national agreements owned by Supply Management and report on their implementation, compliance and value creation; and,
• Lead and manage the procurement process for all Open Bid (Public) Solicitations (solicitations greater than $ 500,000).

Finance & Administration (Corporate & Media)

• Given that Finance co-signs all procurement contracts, it is Finance’s responsibility to validate compliance to this policy prior to signing the Agreement, and report any instances of non-compliance to SMS for filing, follow-up and control purposes.

Law Department

• Provide advice, assistance and tools to SMS and business units during the contracting process.
• Create, validate and/or approve non-standard contracts.

Shared Services Centre (SSC)

• As SSC is responsible for the payment process, it will ensure that payments are made only for properly authorized and fulfilled purchase requests; and
• SSC must validate compliance to this policy, and report any instances of non-compliance to SMS for filing, follow-up and control purposes

CBC/Radio-Canada Employees

a)	For all purchases of goods or services, it is the responsibility of all employees of CBC/Radio-Canada to adhere to and comply with the principles stated in this policy and the following corporate policies: 2.2.3 – Conflict of Interest and Ethics 2.2.21 – Code of Conduct 2.3.8 - Delegation of Financial Authorities (DFA) 2.9.3 – Delegation of Signing Authority (DSA) All employees of CBC/Radio-Canada who purchase goods or services on behalf of the Corporation or are involved in the procurement process should have a sound understanding of the policy requirements and guidelines herein.
b)	All employees of CBC/Radio-Canada who purchase goods or services on behalf of the Corporation shall be accountable for their actions and decisions, and shall maintain and make readily available documents and records pertaining to the procurement process.
c)	All employees of CBC/Radio-Canada who purchase goods or services on behalf of the Corporation must disclose any possible conflicts of interest to SMS prior to the procurement. SMS may decide not to proceed with the supplier due to appearance /perception of conflict which may result in a reputational risk to CBC/Radio-Canada. Employees shall ensure that all purchases are completed with the highest level of integrity, consistency and transparency.
d)	All employees of CBC/Radio-Canada who purchase goods or services on behalf of the Corporation shall consult with SMS and other departments as required in this policy (reference: Appendix C, section 1) and will also consult other individuals or departments that will or could be affected by the purchasing decision before initiating the purchase.
e)	All employees of CBC/Radio-Canada will report any non-compliance to the procurement policy guidelines to the SMS.

EXEMPTION TO THE POLICY

Any exemption to waive the requirements of this policy must be documented and pre-approved by the Vice-President and Chief Financial Officer prior to any commitment towards the supplier.
The form « Exemption – Justification and Approval » must be completed by the requester, signed by the responsible component Vice-President and submitted to the Vice-President and Chief Financial Officer for approval.

Should the responsible component Vice-President disagree with the Vice-President and Chief Financial Officer’s decision with respect to the non-approval of an exemption, the case will be brought to the President and Chief Executive Officer for resolution, together with the rationale used by both sides.

II. Guidelines
When identifying the procurement mode based on the spend thresholds located in Appendix B, individuals must:

• not prepare, design or otherwise structure a procurement initiative, select a valuation method or divide procurement requirements in order to manipulate the procurement value or avoid the obligations of this policy;
• procure goods and services using the most efficient and cost effective approach to select a supplier, either by utilizing a National Agreement or through bid solicitation; and
• determine the most appropriate procurement strategy for each requirement in order to obtain best value and ensure the timeliness and cost effectiveness of each solicitation, while respecting CBC/Radio-Canada’s guiding principles, which include competition, accountability and equal treatment.

III. Guiding principles

BID SOLICITATION

All requests for bid solicitation will use one of SMS’s recommended basic procurement modes to request information from potential suppliers. Their definitions and other general terms used in the procurement domain are provided for in Appendix A for correct interpretation of this policy. The selected procurement mode will determine the type of bid solicitation, the minimal number of suppliers to invite, and the authorized purchase method. It will also vary according to the nature and estimated value of the purchase. In order to best protect the interests of the Corporation and its employees, all bidding and solicitation will be carried out in compliance with this policy and its detailed procedures. To facilitate this process, the form « Procurement Checklist » [(mandatory for certain transactions) reference: Appendix C section 11] shall be completed and accompany the Purchase Requisition or contract.

Irrespective of the procurement thresholds as set out in this policy, SMS encourages all employees to obtain competitive bids where possible when procuring goods and services for the Corporation.
All procurement documentation (winning and non-winning proposals, bid evaluations, procurement checklist etc) must be kept on file by the requester and be available for audit. Documentation should be filed in accordance with CBC/Radio-Canada’s Records Management classification and retention policies.

The Corporation may restrict bid solicitation to pre-qualified goods, services or suppliers only, and only if the prequalification process was announced through a bid solicitation method compliant with the procurement rules.

PROCUREMENT MODE

The tables provided in Appendix B, identify the authorized procurement modes according to the nature and estimated value of the required purchase. The procurement mode describes the type of bid solicitation, the minimal number of suppliers to invite, the purchase method, and the method of sending and receiving the procurement documents.

The types of requests and purchase documents to use are provided as general guidelines. When customized documents are required, they should always be validated by the Supply Management Service (solicitation documents) and the Law Department (Agreements) to ensure that the required purchase specifications are properly addressed (e.g. warranty, insurance, intellectual property, compliance with laws, etc.).

PROCUREMENT VALUE
The procurement value is the estimated total financial commitment resulting from a procurement activity, including all expenses related to fully executing all available renewals and contract extension options available in the contract. The number and duration of the renewal options must be fixed, unlimited renewal options are prohibited. While calculating the procurement value, all forms of remuneration including premiums, fees, commissions, travel & expenses and interest shall be taken into account. The calculated value will exclude all applicable taxes.

The procurement value (as defined above) will be used to establish the proper DFA / DSA authorization levels.

EXCEPTIONS TO THE BID SOLICITATION PROCESS
Where mandated in the tables provided in Appendix B, all expenditures are obtained through competitive bid solicitation. In certain circumstances competitive bidding may not be the most cost-effective approach to procurement. To address these circumstances there are nine (9) specific exceptions detailed in section 2.1 of Appendix C that would allow the bid solicitation process to be waived.

Furthermore, when the procurement value dictates the use of open (Public) bid solicitation instead of by Invitation for purchases of goods and services, additional exceptions may apply. Although the exceptions detailed in section 3.2 of Appendix C could apply to waive the open (Public) bid solicitation process, bid solicitation on invitation would still be required.

Any exception from bid solicitation under section 2.1 and 3.2 of Appendix C of the policy must be documented, pre-approved by SMS, and the documentation must be kept on file by the requester and be available for audit. A copy of this documentation must also be sent to SMS with all other procurement documents (contract, PO etc).

It is strongly recommended that sufficient planning and timing be allowed for the competitive bid process to be implemented. Poor planning is not sufficient reason to waive the process and proceed with single sourcing.

All procurement policy exceptions or exemptions must be approved prior to any commitment towards the supplier.

COMPLIANCE

SMS will monitor compliance with the policy on an ad-hoc basis with the support of the Internal Control department.

The form « Procurement Policy - Non-Compliance » must be completed to document all cases of non-compliance for an explanation of the circumstances/factors contributing to the non-compliance and corrective actions as applicable to be taken to ensure future policy compliance. Any incidents of non-compliance will be investigated by the SMS. The Vice-President and Chief Financial Officer (CFO) and the respective component Vice-President will review and acknowledge the plan for resolution. In the case where the non-compliance is within the CFO component the Vice-President, Legal Services shall also review the plan.

NATIONAL AGREEMENTS

One of the objectives of Supply Management Services (SMS) is to leverage CBC/Radio-Canada’s buying power by consolidating needs and negotiating National Agreements. These are enterprise wide Agreements with preferred pricing and reduced administrative costs that have been developed to drive savings and efficiencies. SMS manages supplier relationships and performance, implementing new practices, and liaising with key stakeholders, to maximize value from these Agreements.

In order to maximize the benefits (as outlined above) of these Agreements, all employees should procure their requirements for goods or services from the preferred supplier, when a contract / Agreement is currently in force for the said goods or services, subject to availability.

SMS maintains a current list of all National Agreements on its iO! portal..

SUPPLIER RELATIONSHIP MANAGEMENT

Quality suppliers are central to all of the Corporation’s procurement processes and lead to superior stakeholder satisfaction. That being said, all employees who purchase goods and services on behalf of the Corporation will be professional and form solid relationships with all of their internal and external business partners, all the while upholding the strongest ethical practices. Likewise, these employees will also ensure that suppliers maintain high standards of reliability and quality of service throughout the entirety of their mandates.

To ensure supplier compliance to performance metrics, all departments are encouraged to follow leading Supply Management practices for Performance Management, such as Balanced Scorecards, Key Performance Indicators (KPI’s), Value measurement and scheduled business reviews, or other predetermined factors (as agreed upon and / or appearing in the final contract). Consistent measurement of supplier performance will encourage suppliers to remain fully compliant to the agreed upon terms of their contracts with CBC / Radio-Canada, ultimately leading to greater stakeholder satisfaction.

HISTORY

• This policy was updated March 2013 to modify Appendix A & Appendix C
• This policy was updated November 2012
• This policy was updated December 2009 to add Appendix J
• This policy was updated September 2008
• This policy was updated January 2006.
• This policy consolidates and replaces Corporate Policies 2.3.6 – Contracts, Quotations and Tenders and 2.3.19 – Procurement of Goods and Services.
• Policies 2.3.6 and 2.3.19 were originally Corporate Policies 603.10 - Contracts, Quotations and Tenders and 601.20 - Procurement of Goods and Services respectively.

REFERENCES

CBC /Radio-Canada By-law 16
Corporate Policies:
2.2.3 – Conflict of interest and ethics
2.2.21 –Code of Conduct
2.3.2 - Assets
2.3.4 - Cash Funds
2.3.8 - Delegation of Financial Authorities (DFA)
2.3.17 - Management of Foreign Currency Risk
2.3.23 - Travel Management
2.3.30 - Fleet Management
2.9.1 - Records and Information Management
2.9.3 - Delegation of Signing Authority (DSA)
External Policies:
Agreement on Internal Trade (AIT) Annex 502.3

PERSON RESPONSIBLE FOR INTERPRETATION AND APPLICATION

All questions pertaining to the interpretation or application of this policy should be referred to the Director, Policy and Internal Control.
The responsibility for interpretation of this Policy ultimately resides with the Senior Director, Supply Management.

DEPARTMENT RESPONSIBLE TO UPDATE THIS WEB PAGE

Corporate Secretariat.

APPENDIX A - DEFINITIONS

1. Bid Solicitation

The term « Bid Solicitation » means all forms of solicitation of competitive offers from the suppliers. The types of bid solicitation described below are those most frequently used by the Corporation:

(1a) Price and Availability request (PAR)
A Price and Availability request is an informal request sent to suppliers for information concerning prices and availability of specific goods or services. Designed for a quick response, this method is used for small competitive or directed purchases (generally valued under $ 25,000), for goods or services that can be easily identified by phone, e-mail or facsimile and must be delivered quickly. The list of invited suppliers (if applicable) and offers received by telephone, e-mail or facsimile must be documented and kept on file.
(1b) Request for Information (RFI)
This method is used to gather information from the suppliers in order to:

• Determine the range of potential products or solutions available;
• Clarify and define the market characteristics;
• Identify and evaluate risks associated with the project or related procurement; and
• Evaluate the potential costs of the project and the related procurement process.

(1c) Request for Information & Qualification (RFIQ)
This method is used to gather information from the suppliers similar to the RFI listed above, with the addition of qualifying all proponents who meet the qualification requirements as potential sources of supply. If CBC/Radio-Canada decides to issue an RFP, RFSO or RFSA, only those suppliers who qualified under the original RFIQ will be invited to participate.

(1d) Request for Proposal (RFP)
A Request for Proposal (RFP) is used for purchases where the selection of a supplier cannot be made solely on the basis of the lowest price. An RFP is used to procure the most cost-effective solution based upon pre-determined weighted evaluation criteria identified in the RFP.

(1e) Request for Qualification (RFQL)
This method is used for qualification of goods or services or to invite suppliers, if they meet the required qualification criteria, to register on a permanent source list or on a particular source list intended for a specific need or some subsequent needs.
When CBC/Radio-Canada wishes to limit offers to qualified goods, services or suppliers, the qualification process must be conducted through a RFQL.

(1f) Request for Quotation (RFQ)
This method is used when a purchase request is received for goods and services when the required goods and/or services are well defined, such as a request for off-the-shelf goods. The documents are kept simple so that the contract can be awarded quickly. The lowest-priced responsive bid, (the lowest bid that complies with all the mandatory requirements specified in the e-mail request or RFQ document) will be awarded the contract.

(1g) Request for Standing Offer (RFSO)
Allows the Corporation to obtain specific prices over a certain period of time for given products or services without committing CBC/Radio-Canada to a minimal volume or spend amount. Standing offers are not contracts. When CBC/Radio-Canada issues a purchase order against a standing offer, it then becomes a contract.

(1h) Request for Supply Arrangements (RFSA)
This method is used to invite Suppliers to submit an Offer to become a Qualified Supplier and enter into a Supply Arrangement with CBC/Radio-Canada for specified services. It allows the Corporation to obtain specific services parameters such as types of services, expertise level, rates, geographical availability, etc. over a certain period of time. The Supply Arrangement (SA) establishes a framework with a Qualified Supplier to permit the expeditious processing of legally binding contracts for specific services through a Statement of Work (SOW). A SA does not commit CBC/Radio-Canada to a minimal volume or spend amount. Supply Arrangements establish a set of procurement procedures and include a minimum set of contract terms and conditions applicable to any resulting contract(s) formed by an executed SOW.

When multiple Supply Arrangements exist for the same category requirement, bid solicitation rules as outlined in this policy apply to the pre-qualified pool of vendors possessing a Supply Arrangement.

2. Buying Group

Buying Group means an organization, involving two or more entities, created to achieve efficiencies and economies of scale by combining the purchasing requirements and activities of the members of the group into one joint procurement process. Buying Groups include cooperative arrangements in which individual members administer the procurement function for specific contracts for the group, and more formal corporate arrangements in which the organization administers procurement for group members. Buying groups may involve a variety of entities, including public sector, private sector and not-for-profit organizations.

3. e-Procurement

Term used to describe the business-to-business purchase and sale of goods and services over the Internet.

4. Non-Compliance

A Non-compliance is a significant deviation or breach to the Procurement Policy. For the purpose of this policy, non-compliance monitoring is defined as the risk-based review or assessment of procurement transactions and is intended to identify, report and correct instances of non-compliance.

The compliance monitoring approach will be developed in conjunction with the Internal Control group.

5. Offer

Generic term to identify a response to a bid solicitation. An offer can be for prices, quotations, proposals, etc., including any combination and/or all of the above.

6. Open (Public) Bid Solicitation

The term « Open Bid Solicitation » refers to bid solicitation being conducted through a public system where bid solicitation is not restricted to selected proponents. The invitation to respond to an open bid solicitation is posted on an electronic tendering system that is equally accessible to all Canadian suppliers, such as the MERX system (www.merx.com).

As CBC/Radio-Canada intends to treat all received offers as confidential, CBC/Radio-Canada shall not issue any publication of offers received to a bid solicitation on any electronic tendering system.

7. Procurement mode

The procurement mode describes the type of bid solicitation, the minimum number of suppliers to invite, the authorized solicitor and the authorized purchase method. The procurement mode varies according to the nature and estimated value of the required purchase. Authorized procurement modes are provided in the Procurement Matrix (Appendix B).

8. Procurement process

The procurement process means the acquisition by any means, including by purchase, rental, lease or conditional sale, of goods, services or construction. The formal procurement process has seven phases: Identifying opportunities, developing category profiles, sourcing strategy, identify selection factors, bid solicitation, negotiate and implement Agreements.

9. Requester

Any authorized individual of the Corporation who wishes to purchase goods or services on behalf of the Corporation.

10. Supplier

For the purposes of this policy, the terms Supplier, Vendor, Proponent are interchangeable and refer to a business offering to or providing goods and services to the Corporation.

APPENDIX B
Procurement modes – Guidelines

Table A – Spend Thresholds & Bid types

Estimated Value of Purchase $	Purchase Type	Minimum Number of Suppliers to Invite	Solicitation Document	Method or Purchase Document
$0 - $999	Goods Only	1	N/A	Petty cash (<$500) (1)
	Goods with Services			Credit card
	Services Only			Direct Invoice
	Construction			Purchase Order
$1,000 to $4,999	Goods Only, Goods with Services	1	PAR	Purchase Order
	Services Only, Construction			Direct Invoice or Purchase Order
$5,000 to $24,999	Goods Only, Goods with Services	1	PAR, RFQ	Purchase Order with or without contract
	Services Only, Construction
$25,000 to $49,999	Goods Only, Goods with Services	3	RFQ, RFP, RFSO	Purchase Order with or without contract
	Services Only, Construction	1	RFQ, RFP, RFSA
$50,000 to $499,999	Goods Only	3	RFQ, RFP, RFSO	Purchase Order
	Goods with Services, or Services Only		RFQ, RFP, RFSA	Purchase Order with Contract (2)
$ 50,000 to $4,999,999	Construction	3	RFQ, RFP, RFSA	Purchase Order with Contract
Open Bid (Public) Solicitation
$500,000 & over	Goods Only, Goods with Services, Services Only	(Merx)	RFQ, RFP, RFSO	Purchase Order with Contract
$5,000,000 & over	Construction		RFQ, RFP, RFSA

Notes:

1). Petty cash purchases, (under $500), must comply with Corporate Policy 2.3.4 – Cash Funds;
2) Purchases of Goods with Services up to $ 499,999 can be purchased by Purchase Order only, provided that the Service component of the total amount can be broken out separately and does not exceed $ 49,999 in value. Refer to Appendix C – clause 12: Contracting, for further details.

Table B: Types of Bid Solicitations

Type of Solicitation Request	Description	Delivery of Request	Receipt of Offer	Evaluation Criteria	Decision Matrix
Price and Availability Request (PAR)	Informal request sent to suppliers for information concerning prices and availability	Phone, fax or email	Phone, fax or email	Price Availability	Price
Request for Quotation (RFQ)	For simple, quick, well-defined purchases.	Email	Paper & electronic copy	Price Availability Billing Warranty	Lowest cost responsive bid (as defined in bid document)
Request for Proposal (RFP)	For use when the selection of a supplier cannot be made solely on the basis of the lowest price	Email	Paper copy mandatory, electronic copy optional	Price, Availability, Warranty, Technical, Commercial, Financial, Expertise, Experience	Most cost effective solution based upon evaluation criteria identified in solicitation document
Request for Supply Arrangements (RFSA)	For procurement of services & construction via a Statement of Work (SOW), by securing pricing for a defined period of time through a Supply Arrangement (SA). No commitment to minimal spend amounts, volumes or exclusivity	Email	Paper copy mandatory, electronic copy optional	Price, Availability, Warranty, Technical, Commercial, Financial, Expertise, Experience	Supply Arrangements awarded based upon evaluation criteria identified in solicitation document. Individual Statements of Work awarded based on criteria identified in Supply Arrangement.
Request for Standing Offer (RFSO)	For procurement of goods only via individual Purchase Orders, by securing pricing for a defined period of time through a Letter of Standing Offer (LSO). No commitment to minimal spend amounts, volumes or exclusivity.	Email	Paper copy mandatory, electronic copy optional	Price, Availability, Warranty, Technical, Commercial, Financial, Expertise, Experience	Standing Offers awarded based upon evaluation criteria identified in solicitation document.

APPENDIX C - Procurement Process

1. GUIDELINES

Procurement of goods and services shall comply with the following process:
1.1 To improve efficiency of the procurement process, standard legal documents developed by the Law department and SMS shall be used within the procurement process whenever possible. All non-standard bid solicitation documents and other forms of agreements shall be validated by the Law department. Appropriate Corporate departments (SMS, Law department, Risk Management, Finance and Administration) are consulted as applicable.

1.2 Employees of the Corporation who wish to purchase goods and/or services that include any technology interface (Broadcast Production Technology, Transmission, computer equipment or computer applications or telecommunications equipment or telecommunications interfaces, etc.) shall consult with the relevant Technology department(s) (Media Operations & Technology, Media Technology Services, Information Technology) at the beginning of the procurement process.

1.3 Any purchase of goods and/or services that may have an impact on industrial relations and/or working conditions will require consultation with the People & Culture department at the beginning of the procurement process.

1.4 Any purchase of goods and/or services that may have an impact on Supplier/Customer partnerships will require consultation with the Sales & Revenue department at the beginning of the procurement process. For these specific situations, Sales & Revenue must be notified prior to announcing the results of any formal solicitation.

2. EXCEPTIONS

Exceptions stated in articles 2.1 and 3.2 of Appendix C of the policy, shall be documented and the documentation must be kept on file by the requester and be available for audit. A copy of this documentation must be sent to SMS with all procurement documents (contract, PO etc).

2.1 All expenditures (including all expenses related to an option or a possibility of extending the contract term) are obtained through bid solicitation as described in Appendix B, except in the following cases:

(a)	Contracts with the only supplier able to meet the bid requirements, including contracts to ensure compatibility with existing products, to recognize exclusive rights, such as television licenses, copyright and patent rights, or to maintain specialized products that must be maintained by the manufacturer or its representative;
(b)	Contracts with the only supplier able to ensure the continuation of guarantees or warrantees;
(c)	Contracts concluded where an urgent situation occurs due to events unforeseen and/or unforeseeable by the requesting business unit;
(d)	Goods or services regarding matters of a confidential, competitive or privileged nature, where disclosure of those matters could reasonably be expected to compromise confidentiality, cause economic disruption or otherwise be contrary to the public interest or the interests of the Corporation;
(e)	For the purchase of goods under exceptionally advantageous circumstances such as bankruptcy or receivership, but not for routine purchases;
(f)	Contracts for procuring services which can be provided only by the following authorized professionals: physicians, dentists, nurses, pharmacists, veterinarians, lawyers and notaries;
(g)	For the procurement of a first good (prototype, new technology) for the purpose of evaluating performance characteristics and compatibility for potential use by the Corporation;
(h)	When CBC / Radio-Canada National Agreements exist for the supply of goods and or services, provided that the National Agreement was properly executed in accordance with this Procurement Policy;
(i)	When external Agreements, created by Buying Groups that CBC/Radio-Canada is a member / participant of, exist for the supply of goods and or services.

2.2 All exception requests must be approved prior to the initiation of any action towards the supplier. A copy of the exception request shall be routed to SMS for filing, follow-up and control purposes.

2.3 Requests for exceptions do not alleviate the requirements and obligations of the DFA/DSA policies.

3. OPEN BID (PUBLIC) SOLICITATION

3.1 Process
The process of open bid solicitation shall comply with the following rules:

The open bid solicitation shall be posted on an electronic tendering system that is equally accessible to all Canadian suppliers, namely the MERX system (www.merx.com)

The notice of open bid solicitation shall contain at least the following information:

(a)	A brief description of the procurement contemplated;
(b)	The place where a person may obtain information and procurement documents;
(c)	The conditions for obtaining the procurement documents;
(d)	The place where the offers are to be sent;
(e)	The date and time limit for submitting offers;

The open bid solicitation process shall not discriminate:

(a)	Between the goods or services of a particular Province or region, including those goods and services included in construction contracts, and those of any other Province or region;
(b)	Between the suppliers of such goods or services of a particular Province or region and those of any other Province or region.

3.2 EXCEPTIONS TO OPEN (PUBLIC) BID

The Corporation shall use open bid solicitation for purchases of goods and services over $500,000 and construction projects over $5 million except for the exceptions listed in 2.1 and for the following cases where bid solicitation on invitation is still required:

(a)	Procurement intended for resale to the public;
(b)	Contracts for procuring cultural or artistic goods or services including goods and services relating to the creation, production, distribution or broadcasting of programming in Canada including co-productions, sports and news;
(c)	Contracts for procuring services, which, under applicable laws or regulations in the province of tender, can be provided only by the following authorized professionals: engineers, architects, land surveyors, and accountants. In these cases, competitive offers will be obtained only from the certified professionals of the said province.
(d)	Contracts for procuring financial services for managing the entity’s assets (including endowment funds) and liabilities, and accessory consulting and information services
(e)	Contracts for procuring goods and services to be used outside Canada or for construction work outside Canada
(f)	For the procurement of a prototype or a first good or service to be developed in the course of and for a particular contract for research, experiment, study or original development, but not for any subsequent purchases;
(g)	For the procurement of polls, surveys, audience measurements and analysis, advertising and public relations services.
(h)	For pre-qualified goods, services or suppliers, only if the prequalification process was announced through an open bid solicitation method.

4. INITIATING A PROCUREMENT REQUIREMENT

Any procurement initiative shall be approved by the appropriate manager with proper financial delegations and signing authority prior to engaging the procurement process.

4.1 Purchase Requisition
When requesting a Purchase Order, the procurement request is to be submitted to SMS in the form of a Purchase Requisition (PR), through SAP. Only in exceptional circumstances, will a requirement for a procurement request be accepted in a format other than a PR.

4.2 Reference Material for Bid Solicitation preparation
SMS maintains on the Corporate iO! Intranet site guidelines to define clearly the bid solicitation requirements:

5. CONFIDENTIALITY

Any offers provided by suppliers or service providers are to be treated as confidential.

Only essential information is to be divulged to persons other than decision-making personnel in the bid review team.

6. COMMUNICATIONS WITH SUPPLIERS

Any clarification provided to one supplier must be provided to all other proponents anonymously.

In case of delays or suspensions of any procurement activity, all suppliers should be notified.

7. BID OPENING

The bids received in accordance with a bid solicitation (i.e. by due date, time and with specific markings), are to be opened in the presence of at least two (2) persons witnessing that the container (envelopes, boxes, parcels, etc.) has not been tampered with and that the bid opening process is fair and just. Unless otherwise specified, there shall not be any publication of bids.

Where practical, the Bid opening should be a two step process:

• All cost and pricing data should be removed or completely separated from the rest of the Proposal.
• Only after the Technical (Goods / Services) proposal has been opened, evaluated and scored, should the cost and pricing data be opened for those proposals that met or exceed the pre-determined technical requirements. If a proposal does not meet the minimum technical requirements, the cost and pricing data should be returned to the Proponent unopened.

Specific factors (as applicable) such as prices, discounts, performance bond, security/guarantee deposit, etc., should be identified for each of the offers opened and listed on an "offer chart/summary" for comparison purposes and for the acceptance/rejection of offers submitted.

The bid opening committee should initial the offers received and the sections where the important factors are quoted and sign the completed offers chart/summary report.

The offers opening, the offers chart/summary and the offers evaluation shall be documented and filed.

8. EVALUATION OF OFFERS

All bid solicitation documents (including pre-qualification documents) shall clearly identify the criteria that will be used for the evaluation of the offers, the relative importance of those criteria and a brief outline of the methods that will be used to evaluate those criteria.

This evaluation grid shall be defined internally, prior to receiving the suppliers’ offers but shall not form part of the bid solicitation documents. Evaluation criteria shall include all technical and operating performance requirements. SMS will work side-by-side with its internal stakeholders to derive the good or service’s Total Cost of Ownership (TCO) and other key supplier selection factors. The contract is to be awarded to the supplier with the best combined score resulting from the lowest TCO and greatest ability to respond to the evaluation criteria requirements as indicated in the solicitation documents.

The SMS (as applicable) and the requesting department should perform an in-depth evaluation of the submitted/accepted offers.

All submission documents received from Proponents (where applicable) should be evaluated as follows:

All cost and pricing data should be removed or completely separated from the rest of the Proposal. Only after the Technical (Goods / Services) proposal has been evaluated and scored, and the consensus has been reached by the evaluation team, should the cost and pricing data be opened for those proposals that met or exceed the pre-determined technical requirements. If a proposal does not meet the minimum technical requirements, the cost and pricing data should be returned to the Proponent unopened.

9. CLARIFICATION WITH SUPPLIERS

When one or more offers show wide variations in price from other competitive offers, and these variations appear to be due to misunderstanding or error, these offers should be reviewed with the proponents concerned. However, care must be taken not to give any information that could provide the proponent with an unfair advantage or disadvantage over the other proponents.

10. SUPPLIER’S OFFER

A purchase order or a contract referring to a supplier’s offer constitutes the acceptance of the supplier’s offer by CBC/Radio-Canada.

Reference to an offer on a CBC/Radio-Canada purchase order becomes part of our purchase contract. Particular care should be taken to ensure that all terms and conditions of the offer meet CBC/Radio-Canada requirements. All differences between the supplier’s offer and the purchase order or the related contract must be detailed with the appropriate references.

11. PROCUREMENT CHECKLIST

In order to ensure that the procurement process is applied according to this policy, the requester shall complete the form « Procurement checklist » as follows:

Requirement for use:

1. For all procurements resulting from formal solicitations (RFP etc.) and / or when Contracts are required.
2. When exceptions to bid solicitation are requested.

The requester shall attach the form to the contract going for internal signatures, or the Purchase requisition in SAP.
Note: Individual Call-ups against a valid Contract, Letter of Standing Offer (LSO), National Agreement, or Supply Arrangement (SA) do not require a Procurement Checklist.

12. CONTRACTING

The type of Service agreement to be used (GSA, or customized form) shall be determined on a case-by-case basis in consultation with SMS or the Law Department.

Irrespective of the contract (Agreement) thresholds as set out in this policy, Business Units and /or employees should in consultation with SMS and/or the law department, carefully review their procurement requirement and determine if a contract will better protect the interests of the Corporation.

Contracts are strongly recommended without limitation for the following:

• When Supplier’s personnel will be performing work in CBC/Radio-Canada facilities
• Customized or ‘made to order’ goods or services
• Intellectual property ownership

The requester shall be responsible to involve the appropriate signatories of the resulting contract as per DSA to obtain proper approval as required throughout the process.
A copy of the executed contract should be entered into a central contract repository database.

13. UNSUCCESSFUL BIDDERS

Subject to restrictions pertaining to open bid solicitation, unsuccessful bidders who have submitted written offers, must be notified in writing (or via email) in a timely manner upon completion of the procurement process, preferably once an agreement has been executed with the successful supplier.

14. BID DISPUTE RESOLUTION

The bid dispute resolution process is intended to ensure that any dispute is handled in an ethical, fair, reasonable and timely fashion. Where a vendor wishes to dispute the outcome of a bid, subsequent to a debriefing with the Procurement department, the process outlined below is to be followed:

(1)	The aggrieved party is to file its bid protest with the Senior Director, Supply Management within 15 business days of the debriefing meeting. The aggrieved party’s filing should include: The name and address of the vendor Identification of the contract or bid solicitation being protested Detailed and factual statement of the grounds for protest Supporting documentation Desired relief, action or ruling
(2)	The Senior Director, Supply Management will respond to the aggrieved party within 10 business days of receiving the bid protest notice.
(3)	If a resolution cannot be achieved, the aggrieved party must contact the Chief Financial Officer and copy the Senior Director, Supply Management Services within 10 business days of receiving the first response from the Senior Director, Supply Management.
(4)	The Chief Financial Officer will respond to the aggrieved party within 10 business days of receiving the bid protest notice.
(5)	The final decision on the issue will be made by the Chief Financial Officer and will be communicated within 10 business days of receiving the bid protest.

The dispute resolution process shall not cause delay in the awarding of a contract.

Contact information:
Email: supplym@cbc.ca
Attn: Senior Director, Supply Management Services

APPENDIX D - Corporate Procurement card

The Corporate Procurement card (Pro-card) was introduced in order to achieve efficiencies in the procurement of goods and services. The intended purpose is:

• To facilitate transactions where credit cards are the only acceptable method of payment.
• To reduce and / or eliminate the requirement for and demand on cash funds;
• To achieve operational efficiencies and cost savings; and
• For emergency situations.

1. GENERAL PRINCIPLES

Corporate Procurement cards are to be used solely for the purpose of acquiring goods and services on behalf of CBC/Radio-Canada. Using corporate credit cards for personal transactions is prohibited.

The Corporate Procurement card can be issued only to permanent CBC/Radio-Canada employees. Permanent employees include contract employees as well as people working at the CBC Pension Board

Corporate Procurement cards issued to employees, are not to be given or loaned to other employees, regardless of the circumstances.

CBC/Radio-Canada employees cannot participate in card benefits or rewards programs that would provide personal benefit.

Cardholders must agree to the terms and conditions outlined on the application forms and as outlined in the guidelines and procedures of this policy. Failure to comply with these terms and conditions will result in cancellation of the card.

Any breach of these terms and conditions will be considered as a breach of the Code of Conduct and will be dealt with accordingly. Such breaches could be grounds for disciplinary measures that can lead to employee’s dismissal.

2. AUDITING AND REPORTING

• The Network & Corporate - Finance and Administration offices will be responsible for conducting regular reviews of credit card transactions and will submit reports to the appropriate managers.
• Cardholder must maintain on file for audit purposes, on CBC /Radio-Canada premises in accordance with Corporate Policy 2.9.1 – Records and Information Management policy, copies of all invoices, receipts, confirmation of purchase documents and correspondence and provide his/her supervisor with copies of such documents on request;

3. ROLES AND RESPONSIBILITIES

Corporate Manager, Supply Management

• Responsible for entire program, controls, and Supplier Relationship Management.
• Approve credit limit requests greater than the standard credit limit.
• Review and / or approve requests for exceptions to the restricted use of the card.
• Perform an annual review of active card holders to confirm the cardholder status and the employee’s need for a Corporate Procurement Card.
• Have procedures in place to ensure that credit cards are cancelled in a timely basis for departed employees.

Finance & Administration Officer
The designated Finance Officer will:

• approve all applications for Corporate Procurement Cards
• Assist in the follow-up on any misuse of the card and cancel the card immediately if there is proof that the card has not been used in accordance with policy.
• Periodically review the transaction status to ensure that transactions are approved in a timely manner
• Cancel cards as appropriate

Cardholder
The cardholder must use the card in accordance with Corporate Policy 2.3.6 – Procurement and the responsibilities, restrictions and obligations identified in this form.

The cardholder should consider other acquisition options such as Purchase Orders and contracts where operationally feasible in order to minimize the risks associated with card usage.

The Cardholder is responsible for the safekeeping of the card, and will be held accountable:

• To ensure that the card is used only for legitimate business purposes;
• To ensure that the card is NOT used for the items specified and agreed to on the application form and also listed in section 5.1 below;
• To obtain and file for audit purposes, on CBC / Radio- Canada premises in accordance with Corporate Policy 2.9.1 – Records and Information Management. policy, copies of all invoices, receipts, confirmation of purchase documents and correspondence and provide his/her supervisor with copies of such documents on request;
• To advise his/her supervisor and the appropriate Finance Officer of any incorrect charges/transactions in order to follow-up and obtain credit from the issuing institution if warranted.

Cardholder’s direct Supervisor

• Assist in the follow-up on any misuse of the card and cancel the card immediately if there is proof that the card has not been used in accordance with policy. As certified on the application form, the Supervisor or his/her delegate approving the application MUST review and approve all transactions on a monthly basis or ensure that the appropriate Finance Officer is advised of any incorrect charges/transactions in order to follow-up and obtain credit from the issuing institution if warranted. For managers reporting directly to Vice Presidents, quarterly or annual reports should be submitted to the VP for review and sign-off. The supervisor must also ensure that there is a legitimate requirement for the card on an ongoing basis before approving applications.
• It is the responsibility of the Supervisor or his/her delegate approving the transactions to ensure that the supporting documents are kept and filed for audit purposes on CBC/Radio- Canada premises in accordance with Corporate Policy 2.9.1 – Records and Information Management. Timely authorization of transactions is the responsibility of the manager who approved the issuance of the card.
• To periodically complete reviews and audits of transactional data and/or exception reports as required.

4. CARD LIMITS

• The individual purchase or transaction limit is $1,000.
• Purchase splitting is not allowed. Multiple passes for a single transaction for the express purpose of bypassing transaction limit is strictly prohibited.
• The credit limit for a P-Card is $5,000.
• Only under exceptional circumstances will limits for greater amounts be approved by the Corporate Manager, Supply Management responsible for the Procurement Card file.

5. RESTRICTIONS ON CARD USAGE

1. Restrictions exist on certain type of expenses. The list of restricted items can be found on iO!
2. Any exception to this list must be granted by the Corporate Manager, Supply Management responsible for the Procurement Card program with supporting justification from the requester. All other type of expenses are allowed, according to the procurement policy, provided they are for business purposes only and not for personal use.

6. APPLICATION AND APPROVAL PROCESS FOR CARD

The following forms must be completed by the employee requesting a Corporate procurement card.

• Corporate procurement card application form
• Employee Acknowledgement Form

7. REPORTING LOST OR STOLEN CARDS

If cards are lost or stolen, the cardholder must take the following steps:
1). Advise the credit card company immediately, which provides emergency service twenty-four hours a day, seven days a week for lost or stolen cards, and cards can usually be replaced within 48 hours.
2). The designated Finance Officer must be advised as the cardholder will receive the replacement card.

8. CANCELLATION OF CARD

Should an employee leave the Corporation or be transferred to another department, the employee must return their card to the cardholder’s manager.
The Designated Finance Officer can, at their discretion, cancel a card at any time should an employee contravene this policy and/or the terms and conditions of the credit card application form.

APPENDIX E – Procurement of goods and services via the Internet

In addition to following the normal corporate policies and procedures and sound business practices, employees who acquire goods and services over the Internet must take additional measures to protect the Corporation when they use Corporate Credit Cards.

The CBC/ Radio-Canada Information &Technology department is responsible for setting, implementing and monitoring the technological standards that the Corporation is to follow. These include encryption protection, especially when credit cards are quoted and used for payment. Employees must not change the security settings installed by IT.

Supply Management is responsible for setting, implementing and monitoring the procurement practices that the Corporation is to follow. These are outlined in the procedures and guidelines below.

PROCEDURES AND GUIDELINES

1. The delegations of financial authority apply to e-Procurement transactions.
2. Procurement rules and principles stated in this policy (credit cards usage and related dollar limits, SMS involvement, procurement process, etc.) also apply to e-Procurement transactions.
3. Payments by credit card over the Internet shall be made only on an approved Corporate Procurement Card and can be made only if payment over the Internet is the only option.
4. Online Ordering:

(a)	Vendor Selection: One must ensure the Corporation deals with reputable vendors. The steps to follow include the following: Locate and record a physical address and phone number; Read the vendor’s policies, including security policy, privacy policy and return policy; Look for certifications or sales on the site, call its support lines to establish that there are people there and check the Better Business Bureau (http://www.bbbonline.org); Questions on the reliability of vendors should be referred to the SMS. The steps taken to verify the vendor’s reliability should be documented.
(b)	Online shopping cart: If SMS has pre-negotiated with certain vendors for the Corporation’s employees to have access to their electronic catalogues via an online shopping cart over the Internet, employees using the catalogues are considered to have processed the acquisition through the SMS. Such an order is deemed to have been made by a Purchase Order.
(c)	Availability of goods and services: As payment occurs at point of sale, transactions should be completed only when items are available from stock.
(d)	Terms and conditions of sale: In addition to the price, the terms and conditions of sale should be consistent with the quality and quantity of goods. Questions on insurance coverage should be referred to Insurance and Risk Management, Head Office.

5. Many sites store a user’s personal information and use passwords to protect this information. Credit card information and information related to other payment mechanisms should not be stored on-line. The following IT password requirements should be followed:

• Passwords should be a minimum of 8 characters long;
• Include upper case and lower case letters, numbers and special characters;
• Whole words should not be used;
• Passwords should be changed in accordance with IT guidelines

Provide only the minimum amount of personal information necessary to complete the transaction.

6. Delivery should be made to a CBC/ Radio- Canada address and received by the Receiving Department.
7. When applicable, invoices should be sent directly to the National Payment Centre and not to the person making the purchase.
8. One should keep copies of the transaction; links to on-line sites may change. Critical information that should be kept includes confirmations, dollar amounts, delivery dates, delivery methods, handling fees, warrantees and return policies.

APPENDIX F - Guidelines for Social and Economic Development Objectives

Consistent with the Federal Government of Canada, CBC/Radio-Canada seeks the optimal balance of benefits to the organization and the Canadian people through its purchases. As part of this approach, CBC/Radio Canada has developed these guidelines for certain social and economic development objectives to be pursued through procurement.

One of the socio-economic development objectives relates to Aboriginal business. CBC/Radio-Canada wishes to help develop Aboriginal business. To that end, CBC/Radio Canada will provide Aboriginal businesses with greater opportunities to sell their goods and services to CBC/Radio-Canada.

Another socio-economic development pursued through procurement is employment equity. CBC/Radio-Canada is subject to the Employment Equity Act - the purpose of which is to achieve equality in the workplace so that no person shall be denied employment opportunities or benefits for reasons unrelated to ability including women, aboriginal peoples, persons with disabilities and members of visible minorities (Human Resources Policy No. 2.2.2).

In order to pursue these economic development objectives through its procurement process, CBC/Radio-Canada will apply the following guidelines:

1. Aboriginal firms are encouraged to compete for CBC/Radio-Canada’s opportunities for the purchases of goods and/or services; and, CBC/Radio-Canada managers are encouraged, when feasible, to voluntarily provide opportunities for competition among Aboriginal businesses.
2. Companies using best practices in employment equity are encouraged to compete for CBC/Radio-Canada’s opportunities for the purchases of goods and/or services; employment equity best practices include removing barriers impeding designated groups such as women, aboriginal peoples, persons with disabilities and members of visible minorities to equal employment opportunities.
3. CBC/Radio-Canada will disclose these guidelines in all procurement documents related to multiple bid solicitation (e.g. Request for Proposals).
4. Should two or more Proposals obtain the same highest score, based on pre-defined evaluation criteria, CBC/Radio-Canada will favour in the following order:
   1. the Aboriginal business (as registered in the Aboriginal Business Directory maintained by Industry Canada), or
   2. the company registered to the Federal Contractors Program for Employment Equity or any recognised equivalent program.

APPENDIX G - Employee Purchase Plans

CBC/Radio-Canada management is aware that several suppliers provide price discounts to CBC/Radio-Canada employees for the purchase of their goods or services for personal use. These programs are often referred to as “Employee Purchase Plans” and are offered by suppliers whether they currently deal with CBC/Radio-Canada or not. This practice is ultimately between the suppliers, whether they currently deal with CBC/Radio-Canada or not, and the employees. It should be noted that CBC/Radio-Canada does not in any way endorse such programs. Furthermore, these programs must never be considered in any way when selecting suppliers for CBC/Radio-Canada in compliance with CBC/Radio-Canada’s Procurement Policy. In addition, suppliers are prohibited from promoting these programs using CBC/Radio-Canada’s resources such as e-mails and the iO! Portal.