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Supporting Documentation

Supporting documentation is required to provide reasonable assurance that a transaction was undertaken in accordance with internal or external legislation, regulations, policies and generally, good business practice.

Specifically, this is an internal control measure designed to safeguard University assets from potential financial risk, demonstrate approvals and authorizations when required, promote transparency, stewardship and accountability. It may be requested by internal and/or external auditors and may be provided under a Freedom of Information (FOI) request if appropriate.

Supporting documentation validates the procurement decision and related process, and will vary depending on the dollar threshold involved in the transaction.

Informal: Under $25,000

Informal Procurement is the process of purchasing goods and/or services below $25,000. These purchases can be made directly with a supplier without obtaining competitive quotations and are not subject to review by a Contracting Authority.

One of the following documents must be retained in support of the purchase, and kept on file:

  • Receipt
  • Invoice
  • Packing Slip
  • Quotation

Invitational: $25,000 to $121,199

Invitational Procurement is the process of inviting multiple suppliers to provide quotations. All suppliers should be given equal opportunity to provide the University with the requested goods and/or services by providing the same requirements to all invited suppliers. It is highly recommended that standard U of T Invitation to Quote (ITQ) templates be used when requesting supplier quotations. This ensures the detailed requirements are captured and shared with all suppliers.

Once all the quotations are received, the local unit evaluates the submissions and determines which supplier will be selected. Where price is not the only factor, the budget owner should formally document the rationale for selecting a higher priced quotation and keep all records on file. Similarly, suppliers who decline to quote (no-quotation) should do so in writing, which should be kept on file.

Supporting Documentation

Supporting documentation depends on the total purchase value:

  • 2 quotes for purchases between $25,000 – $74,999
  • 3 quotes for purchases between $75,000 – $121,199

Contracting Authority Review

When the total value of a Purchase Order $75,000 or above, the supporting documentation will be routed to the Contracting Authority for review*.

The review is based on:

  • Appropriate number of quotations obtained
  • Quotations obtained from different suppliers / distributors / manufacturers for same goods and/or services
  • Quotations dated and presented on supplier letterhead, unless a standard U of T Invitation to Quote template is used
  • Selected supplier’s quote has not expired
  • Supplier’s terms and conditions do not contradict U of T’s Standard Purchase Order Terms and Conditions
  • No obvious omissions to procurement scope that would increase dollar value above $121,199, such as:
    • Likelihood of repeated purchases (monthly, annual etc.)
    • Service fees with hourly rate, where total hours are an estimate
    • Quotation omits significant items such as delivery, training, installation, maintenance, extended warranty, vendor-specific consumables etc.

* UTSC and UPDC may have different review thresholds.

For more information:

Open Competitive: $121,200+

Open Competitive Procurement is the process of advising the marketplace that the University is intending to purchase goods and/or services when the total estimated value is at or above $121,200.

Once the selected supplier has been awarded the contract, which is signed by both parties, a copy should accompany the PO request. The Procurement Officer assigned to the project will review the PO to ensure pricing has accurately been reflected in accordance with the contract.

For more information:

Non-Competitive

Non-competitive procurement should only be undertaken in circumstances where a competitive procurement process is not possible. In these instances, a Procurement Policy Exemption Justification (PPEJ) form must be completed with the appropriate level of detail to support the non-competitive procurement decision.

Supporting Documentation

The following supporting documentation should be attached to the Purchase Order:

  • Procurement Policy Exemption Justification (PPEJ) form
  • Supplier Quotation
  • Proposed Statement of Work (if applicable)
  • Proposed Contract (if applicable)
  • Other related supporting documentation

Contracting Authority  Review

All non-competitive procurement requests $75,000 and above must be reviewed by the Contracting Authority.*

The PPEJ form and any additional documentation must clearly describe:

  • Good or service being purchased
  • Due diligence conducted to ensure no competitive products or services exist in the market
  • Detailed explanation of how the selected exemption is applicable to the procurement
  • Total estimated value accurately reflects entire duration of engagement
  • Approvals have been obtained by budget owner and one-up approver

* UTSC and UPDC may have different review thresholds.

For more information:

 

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