Administrative Procedures

Administrative Procedure 515

Purchase of Goods and Services

Background

Purchases of all property, materials, supplies, equipment, and services on behalf of the
Lloydminster Public School Division shall be conducted in accordance with legislation and proper procurement procedures, and be consistent with the following basic principles:

The Lloydminster Public School Division will purchase goods required for the Lloydminster Public School Division through competitive buying practices, with minimum purchasing requirements, as specified in these procedures (See Table 1).

The Lloydminster Public School Division will purchase services required for the Lloydminster Public School Division through competitive purchasing practices whenever feasible and practical. Arrangements with current providers of services will be reviewed periodically in order to assess changes required, quality of service, and other relevant factors.

In those cases where the competitive purchasing process is utilized, consideration shall be given to prices, quality, the supplier’s reputation, experience, previous record of performance, and service.  In cases where it is difficult to determine the lowest evaluated bid, preference shall be given first to suppliers located in the City of Lloydminster, second, to suppliers situated elsewhere in Saskatchewan/Alberta and third, to suppliers situated elsewhere in Canada.

Where no competitive supply market exists, or it is considered in the best interests of the Lloydminster Public School Division, purchasing practices shall employ such value analysis and negotiation methods considered appropriate for obtaining acceptable materials at the lowest possible price.

Purchase Orders may be used when purchasing major items (value over five thousand dollars $5,000), or when required by the vendor.  Small goods may be purchased by means of Lloydminster Public School Division credit cards or petty cash funds when Lloydminster Public School credit cards aren’t accepted.

The Lloydminster Public School Division’s purchasing processes, forms, and services are to be utilized only for authorized Lloydminster Public School Division business.

Approval of purchasing on behalf of the Lloydminster Public School Division is limited to those individuals and spending limits outlined in Appendix A - Spending Limits.

The purpose of these procedures is to ensure that maximum value is obtained for the items purchased by the Lloydminster Public School Division consistent with sound purchasing practices.

Procedures

1. The Lloydminster Public School Division will purchase goods and services through competitive buying practices with minimum purchasing requirements as specified below: 
   1. Public Competitions shall be required when:
      1. The value of the purchase is expected to exceed seventy-five thousand dollars ($75,000); or, 
      2. In other cases where the Chief Financial Officer deems it to be in the best interests of the Lloydminster Public School Division; or,
      3. Required by the Education Act in its most recent form.
   2. A minimum of three (3) written quotations shall be requested when:
      1. The value of the purchase is expected to be between fifteen thousand dollars ($15,000) and seventy-five thousand dollars ($75,000); or,
      2. The value is expected to be fifteen thousand dollars ($15,000) or less, but the Chief Financial Officer deems it to be in the best interests of the Lloydminster Public School Division.
      3. Orders are not to be divided up for the purpose of circumventing the dollar values expressed in the procedures.
2. The following responsibilities and authorities will apply to the various purchasing functions:
   1. The Board of Education will be responsible for the ward of competitions for capital expenditures exceeding fifty thousand dollars ($50,000). Subsequent to the awarding of a contract by the Board of Education, the Director of Education is authorized to issue necessary change orders or amendments to the contract(s) in question. (If the cost of change orders or amendments to contracts exceeds the lower of 10% of the original budget or twenty-five thousand dollars ($25,000), the Chief Financial Officer will consult with the Director of Education, prior to authorizing the change.) The Chief Financial Officer will be responsible for all competition awards.
   2. Purchases may be authorized only by Lloydminster Public School Division budget managers, namely; those positions identified in Appendix A. Maintenance workers may, with the authorization of the Facilities Manager, purchase materials and supplies on the approved Lloydminster Public School Division purchasing card without an authorizing signature.
   3. Under the authority of the Director of Education, the Chief Financial Officer shall maintain overall responsibility for the purchase of all goods required for the operation of the Lloydminster Public School Division.
   4. Budget managers shall maximize the acquisition of goods through the competitive bidding process, rather than initiating smaller orders.
   5. Purchase of any goods or services from an employee or employee’s immediate family (ie: residents of the same household) will not be permitted without the prior written consent of the Chief Financial Officer.
3. It is expected that all requirements for goods purchased through the public competition process will be ordered by schools and the Lloydminster Public School Division Office at the time of the award.
   1. The purchase of goods can be made directly by budget managers utilizing purchase orders or through the use of purchasing cards. Goods obtained through the public competition process are excluded from this authority.  Only the responsible budget manager shall have the authority to execute a local purchase order.
4. The following guidelines shall govern the purchasing function in general:
   1. Financial commitments made outside the provisions of approved procedures shall not be binding on the Lloydminster Public School Division;
   2. No employee shall solicit or accept any major or substantial gift or entertainment from a current or potential supplier;
   3. No employee shall be influenced in any purchasing decision by considerations of personal gain;
   4. No employee shall receive any remuneration, either directly or indirectly, as agent for the sale of furnishings, apparatus, or equipment, or any other merchandise whatsoever for Lloydminster Public School Division use without the written authorization of the Director;
   5. All items purchased through the Lloydminster Public School Division’s purchasing processes, become the property of the Lloydminster Public School Division; and,
   6. The purchase of goods or services from a trustee or from a company of which a trustee is an owner must be approved by resolution of the Board of Education.

Definitions

Public Competition - A process requiring the competition to be publicly advertised and the
                                  proposal opening may or may not be made public.

Written Quotation - A process requiring selected vendors to submit written quotations.  Such
                                quotations are not opened publicly.  The contents of written quotations shall
                                be held in confidence until the closing time/date of the request.

Verbal Quotation - A process of securing price quotations from selected vendors verbally.

Blanket Order - A contract which provides for a vendor to supply specified products or services
                          for a specified period of time, with actual requirements to be determined,
                          requested, and delivered when and as required.

Reference:

Section 69, 85, 344, 354, 355, 368, Education Act
Section 38, The School Division Administration Regulations
New West Partnership Trade Agreement
Canadian Free Trade Agreement

Revised:

November 2021

Appendix A

LLOYDMINSTER PUBLIC SCHOOL DIVISION #99

Spending Limits

This document is to outline the operational spending limits for various levels of staff within the Lloydminster Public School Division. 

All of the spending limits outlined below for Levels 3 and below are for expenditures that are within the Board of Education approved budgets. Requests for spending outside of approved budgets must be approved by the Director of Education.

NOTE: Individuals shall not authorize an expense/agreement that relates directly to themselves, immediate family members, or any related businesses for themselves or immediate family members. These types of transactions must be approved by someone at Level 3 or higher before they are negotiated.