Procurement Guiding Principles. Northwest Supply Chain Collaboration. for the. Regional Members of the Northwest Supply Chain

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Regional Members

of the Northwest Supply Chain

Procurement Guiding Principles

for the

Northwest Supply Chain

Collaboration

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Table of Contents

Introduction……….. Pg 3 Policies & Procedures……….. Pg 4 Governance/Structure/Operation……… Pg 5 Procurement Objectives……… Pg 6 Methods of Acquisition and Thresholds………. Pg 7 NSC Authority………. Pg 10 Bid Information and Purchasing Trends……….. Pg 11 Local Preference and Accounts Payable process……… Pg 12 WSIB………. Pg 13 Business Partnerships……… Pg 14 BPS………. Pg 15 Contacts……….. Pg 16 FAQ’s……….. Pg 17

Questions may be directed to: Derek Gascoigne, General Manager

Northwest Supply Chain 980 Oliver Road 1st Floor, Room#1480

Thunder Bay, Ontario P7B 6V4

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How do I arrange to meet with a department?

Individual departments may be contacted directly via

Switchboard at (807) 684-6001. However; all visits to the NSC require reporting to the TBRHSC Purchasing Department to obtain a visitor’s badge, and sign in. Please speak with the Secretary in Purchasing for further details / orientation. Do you release tender and RFP award information? Yes. Once awarded, information is posted online at www.merx.com or upon written request, may be released through the NSC.

Can I submit tenders and RFP’s electronically?

No. All submissions are to be submitted or delivered in hard copy format, with an accompanying electronic copy that con-tains all of the necessary documentation on a device such as USB stick or CD . The NSC is presently Investigating an elec-tronic bid receipt/process/evaluation tool.

My tender is only 1 minute late, can you accept it?

No. Delivery at the stated date and time is a mandatory condi-tion and will not be deviated at any time, no matter how uncon-trollable the circumstance.

Introduction

The NSC collaboration is comprised of 13 member hospitals within LHIN 14 of Northwestern Ontario. We support our Members’ Supply Chain Management needs through a consolidated strategic sourcing model that drives cost efficiencies, while encouraging local businesses to bid and participate in a competitive procurement process regarding supplies, services, and capital. We feel we provide optimal Supply Chain Management practices and systems that result in collaborative value driven outcomes and quality health care for the patient and client.

The Northwest Supply Chain (NSC) is constantly seeking new Supplier relationships while also strengthening relationships with current Suppliers.

The NSC actively pursues new member opportunities and our affiliates and customers include NWCCAC, NWHA, EMS, NOSM, Lakehead University and Confederation College.

The NSC’s principles are to follow the Ontario Broader Public Sector Supply Chain Code of Ethics which include; Personal Integrity & Professionalism, Accountability & Transparency, Teamwork, and Compliance & Continuous Improvement; while maintaining and preserving the natural environment. Suppliers are encouraged to supply goods made by a method resulting in the least damage to the environment, while not financially impairing the NSC’s ability to balance budgets

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NSC Policies & Procedures

Processes and delegated authority levels are governed by a Policy and Procedure Manual and we comply with the Broader Public Sector Procurement Directive. To view the entire set of policies, please visit our office at :

Northwest Supply Chain

c/o Thunder Bay Regional Health Sciences Centre 980 Oliver Road

1st Floor, Room#1480 Thunder Bay, ON

P7B 6V4

Or access the NSC’s information at www.tbrhsc.n

et/nsc

Mission Statement

“To support Members’ Supply Chain Management

needs through a consolidated strategic sourcing

model that drives cost efficiencies.”

Frequently Asked Questions

Does the NSC maintain a bidders list?

No. The onus is on the bidder to monitor the local newspaper, the NSC’s website, merx.com, and to stay in contact with the NSC department through scheduled meetings.

Do we have a local preference Policy?

No. Under the Canadian Agreement on Internal Trade (AIT), a business cannot be prejudiced on geographic location.

Why is there a fee charged for tender documents?

On occasion, tender fees are charged to offset tender docu-ments such as floor plans / architecture drawings, etc. How can we ensure a timely payment on our Invoices?

Invoices which do not contain a reference P.O. number, do not reflect proper pricing, or incorrect payment terms, may delay payment due to the added processing time. Cheques are put into general mail delivery unless pre-arrangements have been made. (I.e. Suppliers will pick-up their cheque)

Can I view tenders on line?

All tenders over $100,000 are posted at www.merx.com. Ques-tions may be forwarded to (807) 684-6500.

How are decisions made?

Collaborative tenders are reviewed by an Evaluation Commit-tee and scored as per the requirements set out in the RFX. Recommendations are brought forward to the Steering Commit-tee for review and approval. Individual facilities then follow their specific approval signing authority process.

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How is the NSC structured, and how do I contact

them?

General Manager Derek Gascoigne gascoigd@tbh.net (807) 684-6500 Reg. Mgr., Strategic

Sourcing

Michal Giardetti giardetm@tbh.net (807) 684-6968 Reg. Mgr., Data

Man-agement & Distribution

Phil Thompson thompsph@tbh.net (807) 684-6202 Contract Administrator David Gladun,

RPN gladund@tbh.net (807) 684-6500 Clinical Contract Specialist Nicole Landgraff Wegner RN landgran@tbh.net (807) 684-6969 Business Analyst Mark Deleo deleom@tbh.net

(807) 684-6508 Contract Procurement

Specialist (CPS)

Cindy Langen langenc@tbh.net (807) 684-6971

CPS Mary Nucci nuccim@tbh.net

(807) 684-6970 CPS Dave Krasnichuk krasnicd@tbh.net

(807) 684-6506

CPS Robyn Goral goralr@tbh.net

(807) 684-6737 Contract Procurement

Coordinator

Brian Cassidy cassidbr@tbh.net (807) 346-2343 CPS Matthew Fragale fragalem@tbh.net

(807) 346-2364 The main phone number to the NSC is (807) 684-6500. Secretary Cynthia Gerolami

Governance/Structure/Operation

 The NSC operates on a centralized collaborative model co-sponsored by Thunder Bay Regional Health Sciences Cen-tre and St. Joseph’s Care Group, located in Thunder Bay.  All legacy members have an equal vote at the table and a formalized monthly Steering Committee manages govern-ance and recommendations put forth. Roberts Rules are utilized and prevail.

 Each organization signs their own standardized Form of Agreement for RFX collaborative initiatives.

 Through the use of Purchase Orders, and Blanket Orders; member hospitals requisition their needs through their inter-nal purchasing departments

 The NSC will issue a formal tender should the goods/

services/capital required exceed the $100,000 contract term threshold or if a collaborative opportunity, approved by the Steering Committee is identified.

 Due to the centralized model for facilitating collaborative tenders, it is important that supply partners develop and maintain an effective relationship with both member hospi-tals and the NSC.

Scope of Collaboration

 Strategic Sourcing and Administration— Medical/ Surgical and Support Services requirements

 Regional procurement including Goods and Services upon request.

 Capital for Medical and General requirements.  Pharmacy.

 Distribution and Warehousing.  Data Management

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Procurement Objectives

 To ensure openness, accountability and transparency while protecting the financial best interests of the NSC and its members.

 To encourage competition amongst suppliers  To maximize savings and create value

 To ensure service and product delivery, quality, efficiency and effectiveness

 To ensure fairness amongst bidders

 To have regard for accessibility for persons with disabilities pertaining to Goods and Services purchased by the NSC

The NSC’s principles include consideration for the total lifecycle cost of:

 Acquisition  Installation  Staff Training

 Repair / Preventative Maintenance  Operation and Supply Costs  Disposal

We do not focus entirely on the lowest invoice price as our deci-sions are ultimately based on the overall value proposition.

Broader Public Sector Procurement Directive

The purpose of the procurement directiveis to define accept-able behaviors and standards that should be common for eve-ryone involved with supply chain activities, such as: planning, purchasing, contracting, logistics and payment.

The Directive is meant to complement the existing policies, pro-cedures, and codes; and to elevate our standards of practice. Phase I: includes two principles which incorporate a

Sup-ply Chain code of ethics, procurement policies and procedures.

(Effective April 1st, 2011)

Phase II: will include additional standards incorporating a range of leading practices, standards, and met-rics. (TBA)

Supply Chain Code of Ethics:

In order to ensure an ethical, professional and accountable supply chain, the following principles will be adhered to:

 Personal Integrity and Professionalism  Accountability and Transparency

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Business Partnerships

The NSC has formed an alliance with many businesses and purchasing organizations.

These include:

 OHA – Ontario Hospital Association provides education and leading practice initiatives to the betterment of hos-pital practices

 Medbuy and HealthPro – offers group buying for health-care related facilities. The NSC represents members of both organizations which provides tendering, and offers expertise in pharmaceutical, medical / surgical, clinical, diagnostic equipment, capital and utilities.

 Ministry of Government Services

 CAHO – The Council of Academic Hospitals of Ontario provides capital equipment tendering for medical / sur-gical, clinical and diagnostic equipment

 St. Joseph’s Health Services—Capital Equipment  Other Shared Service Organizations in Ontario and

abroad.

Methods of Acquisition and Thresholds

Goods, Non-Consulting Services and Construction Total

Procurement Value

(Parts and Labour)

Approval Authority Procurement Method $0 up to but not including $25,000 ex-cluding Minor Equipment.

Manager/ Director Purchase Order Requisition, VOR and/or three written

quotes $25,000 up to

but not includ-ing $100,000 excluding Capi-tal items.

Director Purchase Order Requi-sition and Invitational

Competitive

$100,000 up to but not includ-ing $250,000 excluding Capi-tal items.

Senior Manager Formal Open Competi-tive

Process through and electronic tendering

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Methods of Acquisition and Thresholds

Capital Equipment, Building and/or Building Service Equipment Total

Procurement Value

(Parts and Labour)

Approval Authority Procurement Method $0 up to but

not including $25,000.

Manager/ Director and Executive Di-rector Capital

Plan-ning & Operations.

Purchase Order Requisition, VOR and/or three written

quotes. $25,000 up to

but not includ-ing $100,000.

Director and Executive Director Capital Planning &

Operations. Purchase Order Requisition and Invitational Competitive. $100,000 up to

but not includ-ing $250,000 .

Senior Manager and Executive Di-rector Capital

Plan-ning & Operations.

Formal Open Competi-tive

Process through an electronic tendering

system. $250,000 up to

but not includ-ing $500,000

Senior Manager and EVP Corporate

Services & Operations.

Formal Open Competi-tive

Process through an electronic tendering

system. $500,000 up to

but not includ-ing $1,000,000

EVP Corporate Services & Operations and President and CEO

Formal Open Competi-tive

Process through an electronic tendering

system. $1,000,000 or

more EVP Corporate Services & Operations & President & CEO per Board motion.

Formal Open Competi-tive

Process through an electronic tendering

system.

WSIB, Insurance and Bonding

As part of the NSC’s risk mitigation program, contractors and consultants must furnish proof that they have (or will obtain) the required insurance and WSIB coverage. This protects the NSC from being held liable if there is a claim filed by a contrac-tor if injured while conducting work on the NSC membership’s property. The NSC may request additional protection, often on large construction tenders, by requesting bidders to provide bonding. This may be in the form of a bid, payment and or per-formance bond. Bonding is not exclusive to construction and may be used in any areas where unacceptable risk is per-ceived

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Local Preference Consideration

Preference to local Suppliers is not permitted under the Cana-dian Agreement on Internal Trade (AIT) which states that busi-nesses cannot be discriminated by geographic location. The NSC recognizes the value of local suppliers and has initi-ated processes such as:

 Encouraging local Suppliers to participate in bid lists via Supplier of record.

 Provide a guiding principles handbook to potential future Suppliers.

 Increased issuance of RFP’s posted on merx.com Accounts Payable Process

The NSC respects the need to ensure suppliers are paid timely and accurately. The Accounts Payable Department assists us in fulfilling this objective, and in turn suppliers need to provide us with:

 Invoices which contain an accurate description of the price and quantity of the services rendered.

 Invoices which reference a purchase order, or credit card number.

 Invoices delivered to Northwest Supply Chain can be addressed to:

Attn: Accounts Payable 980 Oliver Road, Thunder Bay, ON P7B 6V4.

 Hospitals holding the signed contract will normally be the payer of the invoice.

Professional Services Total Procurement

Value Approval Authority Procurement Method $0 up to but not

including $25,000.

Manager/Director Purchase Order Requisition, VOR,

and/or three writ-ten quotes $25,000 up to but

not including $100,000

Director Purchase Order Requisition and Invitational

Com-petition. Consulting Services

Total Procurement

Value Approval Authority Procurement Method $0 up to but not

including $100,000

Director Purchase Order Requisition and Invitational/ Open Competition $100,000 up to but not including $250,000

Senior Manager Open Competition

$250,000 up to but not including $500,000

Senior Manager and EVP Corpo-rate Services and

Operations

Open Competition

Audit and Legal Services Any Value EVP Corporate

Services & Opera-tions, Audit Committee and/or

Senior Director Quality & Risk

Management (legal services)

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NSC Authority

Competitive Approval Authority Schedule For Approved Budget Requests

Total Purchase Amount Member Delegate Purchasing Authority Level NSC Delegate Purchasing Authority Level $0 up to but not

in-cluding $25,000 Manager Steering Commit-$10,000 up to but not

including $100,000 Director/G.M. Steering Commit-tee

Greater than

$100,000 G.M/Chairperson Steering Commit-tee

INDIVIDUAL HOSPITAL SIGNING AUTHORITIES AND THEIR RESPECTIVE POLICIES AND PROCEDURES GUIDE OUR

PRACTICES.

Lowest Bid

The NSC shall be under no obligation to accept the lowest bid, or any bid that is submitted verbally or via email. The NSC may remove or eliminate a Supplier from consideration for contract awards at our discretion, on the basis of documented poor past performance or failure for Supplier to comply with mandatory requirements.

Late Submissions

Submissions received after the specified closing date and time, or submissions that do not have a signed Form of Offer, will not be accepted.

Purchasing Trends

 Increased collaboration amongst hospitals in the region and province.

 Increased electronic commerce (merx.com) with specific focus on reducing ordering, delivery and payment trans-action costs (ghx.com).

 Supplier consolidation and leveraging increases discount levels through increased purchase volumes.

 Moving away from annual tenders to multi year business awards (3 – 5 years) plus optional extensions.

 Increased use of RFP’s vs. RFT’s. Moving towards a fo-cus on total lifecycle cost vs. purchase cost.

 Increased focus on education and training, of both inter-nal staff and business community.

 Increased focus on Supplier accountability. This includes monitoring performance through post contract manage-ment and safety records.

 Increased consideration in decision making of both social and environmental responsibilities.

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