Supply Chain Management Procedures Manual...Supply Chain Management Procedures Manual Status:...

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Category:Procurement Procedure

Number:30.0

Revision: 7

Issue Date: 09/02/2015

Title: GENERAL - GOODS & SERVICES UP TO $3,000

Scope: 1 - Procurement General2 - Procurement of Goods & Services up to $3,000

NOTE: IF YOU ARE VIEWING THIS DOCUMENT THROUGH THE GRID, SOME LINKS MAY NOT

WORK AS THE ORIGINATING DOCUMENTS RESIDE IN DIFFERENT DATABASES.

Related Procedures:

Corporate PCorporate PCorporate PCorporate P &&&& P PROP PROP PROP PRO 1111 ---- PROCUREMENT OF GOODSPROCUREMENT OF GOODSPROCUREMENT OF GOODSPROCUREMENT OF GOODS &&&& SERVICESSERVICESSERVICESSERVICES

Corporate PCorporate PCorporate PCorporate P &&&& P FinP FinP FinP Fin 1111 ---- AUTHORIZATION OF EXPENDITURESAUTHORIZATION OF EXPENDITURESAUTHORIZATION OF EXPENDITURESAUTHORIZATION OF EXPENDITURES )SCMSCMSCMSCM----31313131 ---- PURCHASING CARDSPURCHASING CARDSPURCHASING CARDSPURCHASING CARDS

RELATED DOCUMENTSRELATED DOCUMENTSRELATED DOCUMENTSRELATED DOCUMENTS ::::

Public Tender ActPublic Tender ActPublic Tender ActPublic Tender Act ---- Province of NewfoundlandProvince of NewfoundlandProvince of NewfoundlandProvince of Newfoundland &&&& LabradorLabradorLabradorLabrador Government Purchasing Agency ActGovernment Purchasing Agency ActGovernment Purchasing Agency ActGovernment Purchasing Agency Act ---- Province of NewfoundlandProvince of NewfoundlandProvince of NewfoundlandProvince of Newfoundland &&&& LabradorLabradorLabradorLabrador Provincial Tender Award Reporting SystemProvincial Tender Award Reporting SystemProvincial Tender Award Reporting SystemProvincial Tender Award Reporting System ((((TARSTARSTARSTARS))))Corporate Contract Selection Guidelines DatabaseCorporate Contract Selection Guidelines DatabaseCorporate Contract Selection Guidelines DatabaseCorporate Contract Selection Guidelines Database ---- Lotus NotesLotus NotesLotus NotesLotus Notes

Contract Management GuidelinesContract Management GuidelinesContract Management GuidelinesContract Management Guidelines DocumentDocumentDocumentDocument ---- Lotus Notes Corporate Contract Selection Guidelines DatabaseLotus Notes Corporate Contract Selection Guidelines DatabaseLotus Notes Corporate Contract Selection Guidelines DatabaseLotus Notes Corporate Contract Selection Guidelines Database

Procedure

1. PROCUREMENT GENERAL

Goods, Services and Construction are procured in compliance with the following values

(including taxes and transportation charges for p -card only), unless otherwise directed by

means of an approved Purchasing Exception Report [(Goods, Services, Work) (Lease)

In accordance with FIN 1.

TYPE OF

PROCUREMENT

1 QUOTE or

Purchase Card

3 QUOTES PUBLIC TENDER

GOODS, SERVICES OR

LEASE OF SPACE

Up to $5,000

see Note A

$5,001 to $10,000

see Note A

Over $10,000

see Note A

WORK

Up to $5,000

see Note A

$5,001 to $20,000

see Note B

Over $20,000

see Note B

PROFESSIONAL

SERVICES

Over $100,000

see Note C

Note A may require Technical Specification incorporated into Services <

250k Standard (see Corporate Contract Selection Guidelines

Database)

Note B requires Technical Specification incorporated into Services < 250k

Standard (see Corporate Contract Selection Guidelines Database)

Note C requires use of appropriate standard (see Corporate Contract

Selection Guidelines Database)

Requests for Proposals are issued for Professional Services such as legal , medical, engineering,

architectural, environmental, accounting, land surveying, insurance brokerage and banking.

Long Term Supply Agreements for commodity groupings provide the best pricing , quality and

delivery through an exclusive supply source , to reduce administrative, acquisition, and

inventory costs and provide timely materials delivery .

Agreements are normally for a three year period , options to extend for 1 year increments may

be included.

A Purchasing Exception Report [(Goods, Services, Work) (Lease)] is required (see P & P PRO 1

- PROCUREMENT OF GOODS & SERVICES) to justify purchases such as Sole Source ,

Emergencies, Professional Services, or other than low bidder.

Purchase Requisitions are not required for certain purchases where invoice approval in

accordance with the Corporate P & P Manual is acceptable. For such purchases, direct contact

can be made with Vendors, which include the following:

Building, Quarry permits and Easementso

CEA Assessmentso

Conference Registration Feeso

Corporate contributions, charitable donations, and scholarshipso

Credit Card Serviceso

Demurrageo

Director’s Fees and Expenseso

Employee travel, hotel accommodations and vehicle rentalso

Entertainmento

Insurance Claimso

Legal fees associated with the purchase or lease of real propertyo

Membership Dueso

Petty Cash Itemso

Postageo

Public Service Announcements & Media Advertisingo

Retirement, recognition dinners, and corporate sponsored eventso

Taxes, Custom Duties, Brokerage Fees, Government Assessmentso

Water Rightso

Purchases to $3,000, excluding taxes, where Purchasing Cards are not accepted.o

Oil & Gas, expenditures related to production profits , (ie, marketing, processing and o

transportation)

2. PROCUREMENT OF GOODS & SERVICES UP TO $5,000

Purchases up to $ 5000 may be made by purchase card, direct quotation or by reference to

existing agreements, price listings, or trade catalogues. The buyer can obtain a direct quotation

generally from one vendor or several sources if available . The buyer determines if price is fair

and reasonable, reviews terms & conditions and Issues purchase order .

Requestor:

2.1.1 8 digit parts (stock and non-stock) identified on the JDEdwards inventory catalogue are

added to a work order, the work order must be approved and moved to a status 30.

Items will be ordered through the Goods & Service Process

2.1.2 For non-inventory, unplanned, or emergency work requestor uses Purchase Card in

accordance with SC31 - PURCHASING CARDS - OBTAINING AND USING.

2.1.3 Where vendor will not accept P-card, or ship goods without purchase order . Prepare

paper requisition; arrange approvals and keys into JDEdwards .

OR forwards requisition to clerk in area for entry into JD Edwards .

Area Clerk:

2.2.1 Records auto generated requisition number on paper requisition . Attaches any

specifications or drawings if applicable and forwards documentation to Supply Chain

Department. (by email to: [email protected])

2.2.3 Files original purchase requisition in the area and maintains for 7 years for audit

purposes

Or

Forward the paper requisition complete with any quotes received , to Supply Chain

Management for entry into JDEdwards and processing

Purchasing Clerk:

2.2.1 Receives requisitions, reviews requisition for appropriate commodity code , cost codes,

description, and GL Dates. Verifies any discrepancies with requestor , and keys Purchase

Requisition on-line. (May consult with Team Lead, Procurement for correct commodity

code)

2.2.2 Records JDEdwards assigned requisition number on paper requisition and places in

responsible Buyers mail slot complete with any attachments for action .

Buyer:

2.3.1 Keeps requisition, together with all other supporting documentation in working file ,

generates requisition to quote, assigns closing date and forwards to suitable vendor (s)

for quote.

When replies are received they are reviewed and a purchase / blanket order is issued.

(requestor/stores workers may be asked for input where there appear to be

discrepancies or alternates offered).

2.3.2 Faxed and e-mail quotations are acceptable and are not required to be followed up

with an original.

Forms: RequisitionPurchasing Exception Report (Goods, Services, Work)Purchasing Exception Report (Lease)

Click the link to access the Forms databaseClick the link to access the Forms databaseClick the link to access the Forms databaseClick the link to access the Forms database ....



Number:30.01

Revision: 5


Title:GOODS & SERVICES $ 5,000 TO $10,000 AND WORK TO $ 20,000 - THREE QUOTES

Scope: The procurement of:- goods and services $5,000.00 to $10,000.00, - work to $ 20,000.00.

Processed by requesting quotes from a minimum of three vendors wherever possible unless either:- directed by means of an approved Purchasing Exception Report; or - procurement is for goods under $ 10,0000 which have similar attributes to goods for which there is

an existing long term partnering agreement.

Related Procedures:

30303030 ---- PROCUREMENTPROCUREMENTPROCUREMENTPROCUREMENT ---- GENERALGENERALGENERALGENERAL ---- PROCUREMENTPROCUREMENTPROCUREMENTPROCUREMENT ---- GOODS OVERGOODS OVERGOODS OVERGOODS OVER $25,000$25,000$25,000$25,000

---- PROCUREMENTPROCUREMENTPROCUREMENTPROCUREMENT ---- SERVICES OVERSERVICES OVERSERVICES OVERSERVICES OVER $50,000$50,000$50,000$50,000 ,,,, AND CONSTRUCTION OVERAND CONSTRUCTION OVERAND CONSTRUCTION OVERAND CONSTRUCTION OVER $100,000$100,000$100,000$100,000 ....

---- EMERGENCY PURCHASE ORDERSEMERGENCY PURCHASE ORDERSEMERGENCY PURCHASE ORDERSEMERGENCY PURCHASE ORDERS

Procedure

PURCHASE OF GOODS & SERVICES BETWEEN $5,000 & $10,000 AND WORK BETWEEN $5,000

& $20,000 - THREE QUOTES

Buyer:

1.1 Reviews on-line requisitions for suggested Vendors , reviews any specifications for

closing dates, special instructions, Schedule of Prices and relevant documentation

requirements.

1.2 Generates quote from requisition .

1.3 Assigns closing date to Quotation Request and selects vendors .

1.4 Forwards to vendors by most appropriate means .

1.5 Receives quotes from vendors and prepare a comparative spreadsheet .

Faxed and e-mail quotations are acceptable and not required to be followed up with an

original.

1.6 Where required, forwards to Requestor for evaluation , an evaluation package including:

- "Approval to Award" form,

- Comparative spreadsheet

- Copies of all bids for technical evaluation .

Further evaluation is required only when :

- Identified by requestor

- Material offered differs from that specified on the purchase requisition ; or

- The total price quoted has a price variance of 20%.

Note: All 3 digit commodities are normally returned to the requestor for further

evaluation.

Requestor:

2.1 Reviews the quotation package received from the Buyer .

2.2 Completes, signs and obtains approval for the "Approval to Award" form in accordance

with Hydro Group P&P FIN 1 - AUTHORIZATION OF EXPENDITURES (if original

requisition approvals are sufficient further approval is not required ). Form must include

appropriate complete account code (BU/CC/CT) and work order information if

applicable) work order must be at an approved status .

2.3 Forwards "Approval to Award" form to Buyer before the return date requested by the

Buyer. If there are multiple orders (Purchase/Blanket) for one quotation request

package, the requestor will forward individual "Approval to Award" forms for each

applicable vendor.

Incomplete Approval to Award forms will be returned to requestor 's for additional

information when required to process orders .

Buyer:

3.1 Confirms that the approver has sufficient signing authority as per P&P FIN1

3.2 Issues Order(s) (Purchase/Blanket)

3.3 Forwards email to requestor with applicable order information by attaching copy of

order Detail Screen.

3.4 Forwards the complete order file to Purchasing Clerk for filing .

Forms: RequisitionPurchasing Exception Report (Goods, Services, Work)Purchasing Exception Report (Lease)Approval to Award



Number:30.02

Revision: 6


Title: GOODS OVER $10,000 .- PUBLIC TENDERING

Scope: The procurement of Goods exceeding $10,000.00 and Work over $20,000.00 requires Public

Tendering unless directed by means of an approved Purchasing Exception Report.

Related Procedures:

Procedure

PUBLIC TENDERING:

GOODS OVER $10,000 PUBLICLY TENDERED.

GENERAL INFORMATION

Buyers are responsible for Commodity Goods & Services Purchases, preparation of

comparative spreadsheet, approval to award memo.

Purchasing Clerks are responsible for Work, (Construction Tenders/Contract Management)

preparation of comparative spreadsheet , approval to award memo, any additional

documentation required regarding tender payments , deposits, tender letter of award, setup in

Contract Management where applicable .

Purchasing Clerks prepare all letters of award including for professional services .

Reservations for the Supply Chain Public Tender Opening Room are coordinated with the Buyer

and/or Purchasing Clerk and are based on availability of the Tender Opening Room allowing

ample time for each tender opening depending on complexity . Closing/Opening date is

determined by allowing a minimum of 15 calendar days for advertising and receipt of tender

for goods and 21 calendar days for work. Supply Chain staff have access to record reservations

in the Rooms Reservation Database through Lotus Notes .

All Public Tenders must be recorded on Hydro 's web site.

Public Tenders for Hydro Only, must be recorded on the Government Purchasing Agency 's

Tender Award Reporting System (TARS).

Any Public Tenders for other Nalcor lines of business are not reported to GPA .

Public Tenders for Oil & Gas are forwarded to NOIA,

For all tenders, ONLY NAMES OF TENDERERS ARE POSTED NO DOLLAR VALUES .

PUBLIC TENDER - GOODS & SERVICES OVER $10,000

Requestor

1.1 Forwards documentation (tech spec) to Buyer in electronic format where possible in pdf

format. .

Buyer:

2.1 Reviews on line requisitions for suggested vendors , reviews any specifications for

closing dates, special instructions, schedule of prices and relevant documentation

requirements.

2.2 Generates quote from requisition , (where applicable). Obtains specification or

standards for inventory items or services as required .

2.3 Coordinates closing date for tender with requestor where required ,

2.4 Assign closing date in JDEdwards.

2.5 Assign Address Number, for tender publication. Where applicable forwards notice to

suggested vendors to download. (See process below)

2.6 Refer to Procedure 30.14, On-Line Tendering for process.

2.7 Forwards file to Purchasing Clerk for preparation of web page notice , including

description, closing date, and any special instructions.

2.8 Forwards tender documents to Purchasing Clerk in PDF format to be uploaded to web

page.

2.9 Where applicable, faxes quotation request, forwards to vendors by most appropriate

means, or sends notification to suggested vendors of down load availability .

NOTIFYING VENDORS OF PUBLIC TENDER POSTING

Buyer:

Notes:

3.1 For use at buyer discretion where required . Each Buyer has been assigned a temporary

OQ Number "NOTICE TO DOWNLOAD", to notify suggested vendors.

3.2 All tenders are posted on Nalcor 's on-line tendering application

www.bids.nalcorenergy.com. Vendors registered for specific commodity types receive

automatic notification when a tender is posted .

Purchasing Clerk:

4.1 Where applicable, posts tender to Hydro's Webpage, TARS site (Government Purchasing

Tendering Award Reporting System), (see Procedure 25 Webpage Listing for Public

Tender Openings

Forms: RequisitionPurchasing Exception Report (Goods, Services, Work)Approval to Award



Category:PROCUREMENT Procedure

Number:30.03

Revision: 2


Title: WORK OVER $20,000 CONTRACTS PUBLIC TENDERING

Scope:

Related Procedures:

Procedure

This section also applies to Professional Services also see Procedure No . 30.11

PUBLIC TENDER - WORK OVER $20,000 -

(CONSTRUCTION TENDER/CONTRACT MANAGEMENT)

Professional Services up to $100,000 must have a Purchasing Exception Report

Professional Services over $100,000 requires Public Tendering.

Work Requiring Document (Specification) Number:

GENERAL INFORMATION CONTRACT MANAGEMENT

This section is in accordance with the Contract Management Guideline Document available in

the Corporate Contract Selection Guidelines through the Lotus Notes Database .

The Services Under $250k document is formatted to support majority of the work

requirements and does not contain a formal agreement . Other document formats are

available in the Corporate Contract Selection Guidelines through the Lotus Notes Database .

Contract Documents must be assigned a contract number , and will contain:

- Schedule of Prices; and

- Tender closing date and time

- Signature Page

(see Contract Management Guideline link in the Corporate Contract

Selection Guidelines through the Lotus Notes Database ).

Contracts requiring

- diary payments

- lump sum pricing - single payment

- Service Type (janitorial, snowclearing)

Will be processed as Blanket Orders.

Multiple year service type contracts such as snow clearing , janitorial or maintenance contracts

will be processed as blanket order with one line item and a lump sum amount. Orders must

include a cancel date at the header and line items levels . Details of the multiple years will be

detailed in the line text. Separate lines required if work order is different .

Contract Management Module will be used for all construction type work .

Contracts processed in any module can use the automated Progress Billing Form available

through Excel in the Showcase Reports .

Requestor/Project Manager:

4.1 Uses the Corporate Contract Selection Guidelines in Lotus Notes Database.

Instructions are provided within the contract standard for preparation of individual

contract documents. (instructions are shown as hidden text in documents , turn on the

show/hide button ¶ in word to view the instructions ,) The instructions should be

reviewed carefully to ensure that all requirements to suit the work being performed are

included. If additional advice is required, it may be obtained from the Team Lead ,

Supply Chain.

4.2 Contacts Supply Chain Management via e -mail ([email protected]) with details of

project. This e-mail should provide the complete account code (BU/CC/CT) and work

order number if applicable, contract title and estimated dollar value .

Purchasing Clerk:

5.1 Access [email protected], email account to print information for file .

5.2 Verify the account code, verify or assign a commodity code number and the status of

the work order.

5.3 Enters request into JDEdwards as Enter Contract to obtain "OQ" document number.

Assign (use current date for reporting purposes ).

5.4 Advises Requestor/Project Manager of Tender Number and buyer assigned .

(Commodity Class 902, 903, 904 & 907 are temporarily assigned to Team Lead

Procurement for distribution between 5 Buyers.

5.5 Prepares tender file including:

Tender/Contract specification & drawings �

Tender Opening Record, �

Contract Checklist�

Maintains file for all Public Tenders until close date .�

Creates file folder for tender on H :/Materials Management Working Files for Tender �

(Tender Number & Buyers initials)


6.1 Drafts Contract specification includes tender number in document . Reviews with Legal,

Insurance, Controller's (Taxation), Labor Relations, Safety and Environment

Departments, as necessary.

6.2 Contacts Purchasing Clerk/Buyer to coordinate a Tender Closing Date , before

completing document,

NOTE:

Purchase of goods where there is a technical specification (does not contain any

commercial conditions) to describe the goods and no special conditions are required

DOES NOT REQUIRE A CONTRACT NUMBER, the document should not contain a closing

date. This type of document should be forwarded to Supply Chain along with a

purchase requisition. This type of purchase will be processed as a purchase order .

Purchasing Clerk/Buyer:

7.1 Assigns tender closing date and records tender number in the Room Reservations

database.


8.1 Forwards document to the Buyer for a general review of requirements for insurance 's

and vendor supplied documentation , including the general conditions, and commercial

terms & conditions.

Documents should be in electronic format .

Buyer:

9.1 Reviews documentation for changes or suggestions where required , notifies

requestor/project manager of any discrepancies.

*9.2 Check document for neatness (ie, no track changes marks, headers contain contract

number, table of contents contains page numbers .)


10.1 Clarifies discrepancies, notifies buyer to proceed.

10.2 Forwards final documents to the Buyer , documents should be in an electronic format

(word format to obtain schedule of prices and pdf format for web posting ) unless there

are large drawings that are not available in electronic format , then sufficient sets of

documents & drawings are required. Cover page of document should be stamped and

approved by the responsible engineer . (Cover Sheets CFLCo Contracts only are scanned

to the Buyer).

10.3 Provides any special instructions, Pre-tender Meetings, Mandatory Site Visits, etc.

Buyer:

11.1 Refer to Procedure 30.14, On-Line Tendering for process.

11.2 Supply Chain Management will start the tendering process .

11.3 Assembles quotation request package and delivers to Purchasing Clerks for forwarding

to vendors by most appropriate means .

NOTIFYING VENDORS OF PUBLIC TENDER POSTING

Buyer:

Note: This process is at Buyer discretion. Used when requestor has suggested a new vendor .

(a) Address Number 2 is also a blank vendor for shipping instructions

"See Download"

12.1 Each Buyer has been assigned a temporary OQ Number "NOTICE TO DOWNLOAD"

12.2 Text Information must be updated with current tender number . Closing Dated and

vendors must be deleted for each new tender notification being forwarded .

12.3 Vendors and closing date can be updated for each new Public Tender closing date .

Purchasing Clerk:

13.1 Where applicable, posts tender to Corporate Webpage , TARS site (Government

Purchasing Tendering Award Reporting System ). (see Procedure 25 Webpage Listing for

Public Tender Openings

13.2 Confirms Public Tender Opening Room is reserved in Lotus Notes Database .

13.3 Posts tender to www.bid.nalcorenercy.com Nalcor's on-line Tendering Application.

Forms:




Number:30.04

Revision: 7


Title:WORK OVER $20,000.00 AWARD PROCESS Blanket Orders & Contract Management

Scope: The procurement of:- Services / Work, and Construction over $20,000requires Public Tendering unless directed by means of an approved Purchasing Exception

Report.

Related Procedures:

30303030 ---- PROCUREMENTPROCUREMENTPROCUREMENTPROCUREMENT ---- GENERALGENERALGENERALGENERAL34343434 ---- PROCUREMENTPROCUREMENTPROCUREMENTPROCUREMENT ---- GOODS TOGOODS TOGOODS TOGOODS TO $25,000$25,000$25,000$25,000 ,,,, SERVICES TOSERVICES TOSERVICES TOSERVICES TO $50,000$50,000$50,000$50,000 ,,,, CONSTRUCTION TOCONSTRUCTION TOCONSTRUCTION TOCONSTRUCTION TO $100,000$100,000$100,000$100,00035353535 ---- PROCUREMENTPROCUREMENTPROCUREMENTPROCUREMENT ---- GOODS OVERGOODS OVERGOODS OVERGOODS OVER $25,000$25,000$25,000$25,00037373737 ---- PARTNERING AGREEMENTSPARTNERING AGREEMENTSPARTNERING AGREEMENTSPARTNERING AGREEMENTS

38383838 ---- EMERGENCY PURCHASE ORDERSEMERGENCY PURCHASE ORDERSEMERGENCY PURCHASE ORDERSEMERGENCY PURCHASE ORDERS

Procedure

WORK OVER $20,000 TENDER AWARD PROCESS USING BLANKET ORDERS.

(CONSTRUCTION TENDER/CONTRACT MANAGEMENT)

Buyer:

1.1 Receives approval to award, verifies account code, signing authority, and forwards

request to Purchasing clerk to prepare letter of award to vendor per approval to award

and tender document or requisition with Purchasing Exception Form .

1.2 Where tender submission from successful vendor includes required documentation ,

identify on the contract checklist and remove requirements from the letter of award .

Purchasing Clerk:

2.1 Prepares letter of award, per documentation and forwards to Buyer for signature .

2.2 Prepares form for Occupational Health & Safety.

Buyer:

3.1 Reviews and signs letter of award, and form for Occupational Health & Safety.

3.2 Buyer faxes the letter of award to vendor , where necessary, may request the

Purchasing Clerk fax letter.)

Purchasing Clerk:

4.1 Faxes form for Occupational Health & Safety.

4.2 Updates Hydro web-page and other applicable websites with awards . (TARS, )

4.3 Forwards copy of Letter of award to Requestor .

Buyer:

5.1 Ensures all documents outlined in letter of award are received in defined time frame .

(10 business days) Follow-up request to be sent if no action is received following 10

business days.

5.2 Examines all returned documents ensuring they comply with requirements in Letter of

Award; ensures documents are properly executed and in format according to Hydro 's

requirements.

5.3 Follows up any irregularities in documentation , with contractor, insurance company,

bonding company, Workplace Health, Safety and Compensation Commission, Risk &

Insurance, Legal Department and/or Requestor.

5.4 Notifies Requestor and Contractor in writing (Notice to proceed) when all

documentation is in place and contractor can proceed with work .

5.5 Notifies Purchasing Clerk to return bid securities to vendors as required.

5.6 Prepares Accounts Payable Cheque Request Form to notify Treasury to release bid

securities received in the form of Certified Cheque .

5.7 Forwards to Team Lead, Procurement for approval.

Purchasing Clerk

6.1 Awards Contract in On-Line Tendering Application. Notifies unsuccessful bidders.

(on-line process)

Team Lead, Procurement

7.1 Approves and forwards Accounts Payable Cheque Request Form to Treasury .

Treasury

8.2 Approves and forwards Accounts Payable Cheque Request Form to Accounts Payable .

Accounts Payable

9.1 Process cheque request.

Treasury

10.1 Notifies vendor when funds have been deposited to their account if using Electronic

Funds Transfer, if a manual cheque is generated, forwards cheque to Vendor or Supply

Chain as required.

Buyer:

11.1 Generates Blanket Order in JDE (See section for Service Type Contracts)

11.2 Forwards complete package to Purchasing Clerk for filing . See next section for contracts

that contain an Agreement.

11. CONTRACTS WITH FORMAL AGREEMENT- AWARD PROCESS

Buyer:

In accordance with IT 2.4 of our contract standards

"For a faxed Tender to be valid, all original Tender documentation, identified with the Tender

number, shall be received by not later than 4:00 p.m. on the second Business Day following

the Tender Closing."

THIS CLAUSE IS REQUIRED WHERE BONDING FORMS PART OF THE TENDER .

ORIGINAL BONDS ARE REQUIRED. (Note: Bonds in pdf format are acceptable.)

Purchasing Clerk:

11.1.1 For those contracts with an Agreement section , using a complete copy of the tender

document, prepares documents for execution by the Contractor and the

Corporation as follows:

-Original - inserts original bid in specification, designates as "Original"

11.1.2 For “Original” documents make the following changes :

Complete Agreement:

- Letter of Award to be inserted after cover page , before "Agreement"

- Page 1 of the Agreement Section - complete date (same date as the Letter of Award

and the Contractor's name.

- If there are Minutes or Post Tender Clarifications :

Change the paragraph which starts "AND WHEREAS Contractor has submitted it 's

Tender for the said…." To include references to Post Tender Clarifications and

Minutes of Post Tender

Clarification Meeting.

(Refer to Forms directory under Agreement .)

- Complete signing page of Agreement with complete name and address of the

Contractor.

- Post Tender Clarifications/ Addendum:

Insert, as an Appendix immediately following the Agreement

Post Tender Clarifications (such as Minutes, Letter, Fax Messages or confirmation of

various pages of Form of Tender, which, may not have been completed when the

bid was submitted. (listing the documents in order of date , most recent descending)

- Addendum:

Insert the reference page of an Addendum (i.e.: the page that says "remove this and

insert this") immediately following the Table of Content . All Addenda reference

pages should be included, with the latest Addenda reference pages in front of the

earlier.

- Replace original document pages with the actual pages of the Addendum in each

section. If multiple Addenda affect the same document , make sure that the

document only has the page from the latest Addenda (the Addendum pages have

"Addendum" and the number of the Addendum typed at the top of the page .

- Amendments submitted by the Vendor relating to the tender submission , should be

placed at the beginning of the Form of Tender section

Forward Document to Buyer to verify prior to copying

- Arrange for two copies of “Original”

One copy is designated as "Conformed"

- One copy is designated as "Contractor"

- Forward the Original and Contractor copy to the Contractor along with a copy of the

Letter of Award.

- The conformed copy is retained in the contract file with the Buyer .

Contractor:

Signs both documents and returns to Buyer .

Buyer:

Contract Value less than $1 mil to be signed in accordance with signing authority .

(Originator of the contract in co-ordination with the Buyer are responsible to obtain this

signing authority.)

Contract Value $1 mil and greater must be signed by Legal.

11.2.1 Follow-up with contractor to ensure receipt of signed returned contract documents .

(Buyers must follow-up with contractor within 10 days to ensure signed documents are

returned.)

Contracts value less than $1mil: Buyer will contact Requestor/Project Manager advising that

contract is ready for execution:

Project Manager will arrange with their "reports to" (individual with appropriate signing

authority) to meet with Buyer to sign document.

Buyer will witness both signatures.

11.2.2 Prepares memo to Legal.

11.2.3 Forwards all three documents to Legal with the appropriate memo for completing

execution of the contract.

Senior Legal Counsel

11.3.1 Arranges completion of contract execution (signatures on all three documents).

11.3.2 Returns all three documents to the Buyer

Buyer:

11.4.1 Notifies Contractor that work can proceed using the Contract Notice to Proceed on the

H:/Materials Management Forms file.

11.4.2 Forwards documents to Purchasing Clerk

Purchasing Clerk:

11.5.1 Prepares "Return Document Letter" to Contractor and memo to requestor .

11.5.2 Sets up contract in the Contract Management Module . Where contract is defined in

the Contract Management Module , close the original OQ to relieve commitment .

JDE Contract Module Import - Quick Steps.pdf

11.5.3 Contracts that require diary payments will require a Blanket Order to be set -up by the

Buyer.

Buyer:

11.6.1 Issues Blanket Order (if applicable) and advises Accounts Payable of any special

payment terms, i.e., Diary Payment, etc. (Note: where diary payments are required,

notify vendor to send in first invoice to Accounts Payable to have automatic payments

setup in JDE.)

SERVICE TYPE CONTRACTS (example, Snow Clearing, Equipment And Operator Rental )

Blanket order to be setup for $1.00 value.

Ensure description provides sufficient information for AP to identify

(Snow Clearing Wabush as per contract)

(Equipment and Operator region ?)

Blanket Order Line Detail

duration of contract�

Schedule of prices for equipment , salt excreta per contract�

where contract is for multiple years at different rates , detail required. �

optional years for extension if applicable�

note required to indicate that all invoices to be processed based on invoice approval . �

Cancel date will be the initial term of the contract . Buyer will be required to enter a reminder

in calendar to request new insurance certificated as required , and a reminder to renew

contract at end of initial term.

11.6.2 Forwards tender file to Purchasing Clerk for labelling and filing by Contract Order

number.

Purchasing Clerk:

11.7.1 Prepares file and enters information into TRIM . (Total Records Information

Management)

Forms: RequisitionPurchasing Exception Report (Goods, Services, Work)Purchasing Exception Report (Lease)Tender Document Payment RecordTender Opening RecordApproval to Award FormAward LetterAward LetterAward LetterAward LetterOccupational Health & Safety FormFormFormFormWorkers' Compensation form Hydro CF(L)CoLetter to Unsuccessful Bidder.




Number:30.05

Revision: 2


Title: ADDENDA AND NOTIFICATION OF TENDER EXTENSION CLOSING DATE

Scope: Handling of Addenda

Related Procedures:

Procedure

ADDENDA / NOTIFICATION OF EXTENSION

Requestor:

1.1 In conjunction with Supply Chain determines need for addenda .

1.2 Obtains the Addendum form from the Corporate Contract Selection Guidelines Lotus

Notes Database. Prepares addenda and forwards to Buyer in electronic format . Sends

notification to Buyer to request extension of closing date .

Buyer:

2.1 Reviews addenda and forwards to Purchasing Clerk .

Purchasing Clerk:

3.1 Prepares Addendum letter, on request from Buyer, forwards for signature.

3.2 Refer to Procedure 30.14, On-Line Tendering, Section 4 Adding Addendum.

3.3 Refer to Procedure 30.14, On-Line Tendering, Section 4 Adding Addendum.

3.4 Prints paper copy of addenda and places a copy in each document on file (where

applicable) retains copy for file.

3.5 Posts notice of the addenda on the Webpage , and full addenda if it is in pdf format .

3.6 Acknowledgement copy retained

NOTIFICATION OF EXTENSION OF CLOSING DATE

Requestor:

4.1 Sends request to extend closing date to Buyer

Buyer

5.1 Prepares letter "Notice of Extension" and forwards to Purchasing Clerk for Posting and

notification to tender downloaders .

5.2 Reassigns tender closing date in lotus notes room reservations .

Purchasing Clerk

6.1 Updated webpage with revised closing date and sends notification to tender

downloaders. Acknowledgement of receipt is required and retained in the tender file .

Forms: NONENONENONENONE




Number:30.06

Revision: 2


Title: PUBLIC TENDER OPENING,

Scope: Define Process for Public Tender Opening, preparation of evaluation spreadsheets and

posting tender results

Related Procedures:

Procedure

PUBLIC TENDER OPENINGS:

Receipt of bids:

ALL TENDERS CLOSE AT 3:00 PM ON A SPECIFIED DAY AND OPEN AT 9:00 AM ON THE

FOLLOWING BUSINESS DAY

Faxed bids for Commodity Goods & Service are acceptable and are not required to be �

followed by original unless otherwise specified .

Faxed bids for Work are acceptable, the faxed bid must include schedule of prices , �

signature & verification of bid bond/cheque/security if applicable. Faxed bids for work must

be followed with original documentation within 48 hours of the tender closing or the bid

will be rejected.

Tenders submitted through on-line tendering are acceptable, where bonding is required, �

original documentation for contract work must received on the second business day after

the closing date, failure to comply will result ing the being rejected .

Purchasing Clerk:

Receives faxed quotes, places in an inter-office envelope marked with tender number .�

Retrieves tender responses that are scheduled to be opened for that day .�

Opens tender box daily (located in main lobby), clears fax machines (check memory) at 3:00 �

pm and sorts the envelopes to tender file .

E-mail tender responses are not accepted .�

Delivers all tenders to the Public Tender Opening Room Level 2 Hydro Place. �

Ensure tenders retrieved from tender box are time stamped and received prior to closing �

time of 3:00. Retain envelope with time and date stamp.

A tender may not be opened unless there are at least 2 witnesses present. �

Tender Opening Record must be signed by both Supply Chain Representatives and all

attending.

Tender responses are opened at random , the following information read aloud.

- tender number;

- name of bidder; (Refer to Procedure 28

Information to be recorded from tender : �

Name of Bidder

Date and time of receipt

Total Tendered Price (For other than commodities)

Disclosure of Tendering Information

If there are no attendees it must be recorded on the form at the opening . �

All tenders received must be initialed by 2 witnesses.�

Purchasing Clerk posts tender results to web page . Only the names of bidders will display , �

webpages have been updated so that results are not displayed .(see Procedure 25 Webpage

Listing for Public Tender Openings )

Dollar amount is posted as N/A until total tendered amount is confirmed .

(Contract spreadsheets are prepared and verified by P -Clerks. Commodity spreadsheets

are prepared and verified by Buyers .) Instances with no Total Tendered Amount remain

N/A.

Documents are downloaded from the on -line tendering application and saved in Working �

File. (Dollar value for commodity tenders are confirmed by the Buyer , construction tenders

are confirmed by the Purchasing Clerk see next section for process )

Purchasing Clerk forwards quote package to the buyer for evaluation .�

Prepare memo to Treasury for tender bid deposits in the form of certified cheque . (Retain �

copy of cheque) Cheques that are not forwarded to Treasury must be put in secure area

under lock.

Forms:




Number:30.07

Revision: 2


Title: TENDER EVALUATION AND AWARD PROCESS

Scope:

Related Procedures:

Procedure

TENDER EVALUATION AND AWARD PROCESS:

Purchasing Clerk:

For Construction/Contract Management tenders, prepares comparative spreadsheet �

verifying calculations and extensions, prepares memo & approval to award form.

Scans tenders to buyer for evaluation purposes .�

Purchasing Clerk forwards to the buyer tender package for evaluation including : �

- Comparative spreadsheet

- Scans or copies of all bids for technical evaluation

- Memo and "Approval to Award" form.

Buyer:

Receives quotes/evaluation package from Purchasing Clerk.�

Saves scanned documents in appropriate folder on : H:\Materials Management\Working �

Files Contracts - Commodities (year)

Prepares comparative spreadsheet for commodity tenders , reviews evaluation package for �

completeness and accuracy, including spreadsheet.

Reviews spreadsheet prepared by Purchasing Clerk for Construction Contracts to ensure �

that all requirement set out in the contract are included , ie bonding, insurance, WHSCC,

COR etc. If Contractor is Browz compliant, ensures all documentation is current .

Forwards to Requestor complete package including Memo , Approval to Award form, �

comparative spreadsheet, and copies of all tenders received.

Further evaluation is required only when :

- Identified by requestor

- Material offered differs from that specified on the purchase requisition ; or

- The total price quoted has a price variance of 20%.

- Inventory items will require evaluation if the items being quoted differ from our

inventory standard

Requestor:

Reviews the quotation package received from the buyer .�

Prepares technical analysis.�

For Construction/Contract Management tenders, arranges & conducts Post Tender �

Clarification Meeting if required. (Request Buyer attendance if required )

Clarifies any point of concern with respect to performance of the work and Records �

Minutes of Meeting. Copies of minutes are forwarded to Buyer for inclusion in the contract

document of file.

Completes, signs and obtains approval for the "Approval to Award" form in accordance �

with Hydro Group P&P FIN 1 - AUTHORIZATION OF EXPENDITURES (if original requisition

approvals are sufficient further approval is not required ).

Form must include appropriate complete account code (BU/CC/CT) and work order

information by line item (if applicable) work order must be at an approved status.

Forwards "Approval to Award" form to Buyer within the validity period of the tender as �

indicated by the Buyer. If there are multiple Purchase Orders for one quotation request

package, the requestor will forward individual "Approval to Award" forms for each

applicable vendor.

Indicates on "Approval to Award" form if progress billings are applicable . �

Construction/Contract Management Tenders require an executed copy of any Minutes and �

any other Post Tender Clarifications together with the "Approval to Award"

Incomplete Approval to Award forms will be returned to requestors for additional

information when required to process orders .

Buyer:

Confirms that the approver on original requisition has sufficient signing authority as per �

P&P FIN1 - AUTHORIZATION OF EXPENDITURES.

Issues Purchase Order. If the evaluation indicates that there is substantial savings in �

splitting a purchase for like items, Buyer will do so (usually after consultation with

requestor)

Forwards email to Requestor with applicable PO information by attaching copy of PO Detail �

Screen. (copy to Purchasing Clerk to update award status on webpage .)

Forwards the complete PO file to Purchasing Clerk for filing .�

Purchasing Clerk:

Updates Hydro web-page and other applicable websites with awards . (TARS)�

Forms:




Number:30.08

Revision: 1


Title:CHANGE ORDERS

Scope: Change orders in in accordance with Public Tender Act. Changes to Purchase Orders are made through the use of a Purchase Requisition for changes approved in accordance with Hydro Group P&P Fin 1 - Authorization of Expenditures. Purchase Requisition should take into consideration the total value of the Purchase Order

plus the aggregate amount of all change orders.

Related Procedures:

Hydro Group PHydro Group PHydro Group PHydro Group P &&&&P FINP FINP FINP FIN 1111 ---- Authorization of ExpendituresAuthorization of ExpendituresAuthorization of ExpendituresAuthorization of Expenditures30303030 ---- PROCUREMENTPROCUREMENTPROCUREMENTPROCUREMENT ---- GENERALGENERALGENERALGENERAL34343434 ---- PROCUREMENTPROCUREMENTPROCUREMENTPROCUREMENT ---- GOODS TOGOODS TOGOODS TOGOODS TO $25,000$25,000$25,000$25,000 ,,,, SERVICES TOSERVICES TOSERVICES TOSERVICES TO $50,000$50,000$50,000$50,000 ,,,, CONSTRUCTION TOCONSTRUCTION TOCONSTRUCTION TOCONSTRUCTION TO $100,000$100,000$100,000$100,00035353535 ---- PROCUREMENTPROCUREMENTPROCUREMENTPROCUREMENT ---- GOODS OVERGOODS OVERGOODS OVERGOODS OVER $25,000$25,000$25,000$25,00036363636 ---- PROCUREMENTPROCUREMENTPROCUREMENTPROCUREMENT ---- SERVICES OVERSERVICES OVERSERVICES OVERSERVICES OVER $50,000$50,000$50,000$50,000 ,,,, AND CONSTRUCTION OVERAND CONSTRUCTION OVERAND CONSTRUCTION OVERAND CONSTRUCTION OVER $100,000$100,000$100,000$100,000 ....

37373737 ---- PARTNERING AGREEMENTSPARTNERING AGREEMENTSPARTNERING AGREEMENTSPARTNERING AGREEMENTS

Procedure

CHANGE ORDER LIMITS AND APPROVALS:

Original order/contract value up to $100,000 - Changes not to exceed $15,000 - Requires

Project Manager Approval

Original order/contract value between $10,000 & $500,000 - Changes not to exceed greater of

10% or $15,000 - Requires Manager (VP Report) approval

Original order/contract value over $500,000 - Changes not to exceed greater of 5% or $50,000 -

Requires CEO or responsible VP approval .

All values are cumulative, and based on original contract value and scope. All changes in

excess of these limitations require the prior approval of the Board of Directors .

BUYERS SHOULD NOT PROCESS ANY CHANGE ORDERS WITHOUT NOTIFYING REQUESTOR

AND OBTAINING REQUIRED APPROVALS.

CHANGE ORDERS/COMMODITY

Commodity Purchases:

Requestor:

1.1 Prepares Purchase Requisition for change and obtains approval in accordance with

Public Tender Act, and Hydro Group signing authority P&P & Fin 1. Changes in excess of

the prescribed change order limits require prior approval of the Board of Directors .

Buyer:

2.1 Checks the Purchase Requisition to ensure compliance with the Public Tender Act and

Hydro Group signing authority per P&P FIN1.

2.2 Issues Purchase Change Order on system.

Service Type Blanket Orders - Payments are based on approved invoices :

3.1 AP verifies the individual approving the invoice has signing authority .

3.2 AP verifies JDE Change Order Inquiry screen to ensure limits are not exceeded , If limits

are exceeded, Change Order with approvals is required.

3.3 AP forwards Lotus Note to Buyer (cc to Originator) to advise that the blanket order has

insufficient funds for processing of invoices and request the originator to forward

change order to Buyer.

3.4 Buyer to confirm change order limits , prior to issuing change order, contact requestor

to determine if invoice being processed is the final invoice .

Final Invoice: advise requestor that a change order is being processed to cover the total

amount of outstanding invoice. Once invoice is processed, order will be closed.

Not Final Invoice: advise requestor that a change order with appropriate approvals is

required.

BUYERS SHOULD NOT PROCESS ANY CHANGE ORDERS WITHOUT NOTIFYING REQUESTOR AND

OBTAINING REQUIRED APPROVALS.

CONTRACT CHANGE ORDERS

Requestor:

4.1 Prepare a Change Order. The form of Change Order to be used is :

- Blanket orders uses a purchase requisition (change) form

- Contract (OS) uses a Contract Change Order.

4.2 Arranges approval of the Change Order in accordance with the Public Tender Act and

Hydro Group signing authority per P&P FIN1.

OR

4.3 Obtains approval from the Board of Directors through Legal Departmentwhere change

order exceed limits set by the Public Tender Act .

Legal

5.1 Sends notification to Team Lead, Procurement of Board Approved Change Order

Requestor:

6.3 Submits all original Change Orders to Supply Chain Management (where applicable

Board Approved Change Order)

Buyer

7.1 Verifies the Change Order to ensure compliance with the Public Tender Act and Hydro

Group signing authority per P&P FIN1.

7.2 For Blanket Orders enters the Change Order information as separate line items on the

Blanket Order.

7.3 For Contracts, approved Change Orders are forwarded to the Purchasing Clerk for

processing in JDEdwards.

Purchasing Clerk

8.1 Enter change order on line through Contract management module in JDE

Forms: Requisition




Number:30.09

Revision: 1


Title: CONTRACTS Close-out

Scope:

Related Procedures:

CONTRACT CLOSE OUT - CONTRACT MANAGEMENT MODULE

This process is not always required, only when requested by the Project Manager.

Purchasing Clerk:

1.1 Receives letter of final acceptance & close out documents from Accounts Payable .

1.3 Relieves contract commitments in JDE (Refer to JDE Procedure 0677 Contract

Management)

Buyer:

2.1 Receives letter of final acceptance, and close out documents from Purchasing Clerk .

Arranges for return of performance security if applicable . Letters for return of

performance securities should be saved in the contract file on H drive .

2.2 Forwards documents for filing in the Contract file .

Procedure

Forms:




Number:30.10

Revision: 0


Title: CANCELLED TENDERS

Scope: Define Process for filing of Cancelled Tenders

Related Procedures:

CANCELLED TENDERS

1 Cancelled Public Tenders are retained in the Supply Chain file room for a period of 1

year. In cases where the tender is cancelled, the web page will be updated to reflect

cancellation, and deposits returned where applicable , Vendors are notified. In cases

that may be disputed at a later date , the quote file is recorded and maintained as

cancelled quotes. (Refer to Procedure 13 Supply Chain Filing and Retention -

Procurement).

Procedure

Forms:




Number:30.11

Revision: 2


Title: PROFESSIONAL SERVICES

Scope: Professional Services $3,000. up to $100,000. in accordance with PRO1 require 3 quotes otherwise requisition must be accompanied with a Purchasing Exception Report.Professional Services in excess of $100,000. in accordance with PRO1 must be publicly tendered.

Requests for Proposals are issued for Professional Services such as legal, engineering, architectural, accounting, land surveying, banking or insurance services, voice telephone services, or other services providing an opinion, creativity, a design, or technical expertise, such as environmental, medical, or audit.

Awarding Professional Service RFP's to multiple vendors with work assignments.

Related Procedures:

Procedure

Value between $5,000 - $100,000 - Three Quotes

Requestor:

1.1 Forward requisition for Professional Services with accompanying RFP for services

required and list of suggested vendors to Supply Chain .

Buyer

2.1 Generates quote,

2.2 Prints quote and forwards to suggested vendors .

2.3 Return to requestor for evaluation

Value between $5,000 - $100,000 - Purchasing Exception

Requestor

3.1 Forward requisition for Professional Services with accompanying Purchasing Exception

Report and any proposal or quote documentation from vendor to Supply Chain

Buyer

4.1 Uses obtains required documentation OR

Contacts vendor requesting documentation :

Commercial General Liability Insurance�

Automobile Insurance �

Letter of Good Standing from WHSCC�

Where applicable Errors and Omissions Insurance . �

4.2 Issues order when documentation is received .

Value in excess of $100,000 - Publicly Tendered.

Awarding to Multiple Vendors for Long Terms Services with Work Assignments .

5.1 Approval to award will be forwarded to Supply Chain for value of $1.00. This is to set

up a Blanket Order for Filing Purposes referred to as Master Blanket Order .

Buyer will obtain insurance requirements , WHSCC to be maintained in Master �

Blanket Order.

Insurance Documents and WHSCC to be renewed annually .�

Requestor

6.1 Work Assignments - Release from Master Standing Offer Requisition

To ensure checks and balances are in place :

Each work assignment will require a purchase release order with appropriate �

signing authority for value of work, noting the Master Blanket Order Number

and Buyer.

Requisitions/Release must contain the following information in the text : �

Individuals name that is being assigned or Scope of Work �

Hourly Rate �

Estimated hours�

Duration of work�

Total Estimated dollar value will be keyed as Lump Sum . �

Quote from Service Provider�

Supply Chain

7.1 Each release order will be keyed individually , assigned to the Buyer responsible

Buyer will generate a blanket order and reference the Master Blanket Order on �

the Purchasing Information Screen, and notify Requestor of order number .

Forms:




Number:30.12

Revision: 0


Title: REJECTION OF TENDERS

Scope: Define a process where tenders are received late.

Related Procedures:

Procedure

30.12 REJECTION OF TENDERS

30.12.1 Tenders may be rejected during the evaluation process where:

Late receipt of tenders; �

Tenders deposited at Reception Tender Deposit Box must be time and date stamped. Due �

care is exercised when opening tenders to ensure that tender is received prior to tender closing time. Late tenders shall not be opened and shall be returned to the Tenderer. If late tender does not identify tenderer an exception is made and the envelope is opened to obtain the return address.Late faxed tenders are not returned to tenderer and are kept in the Purchase Order file with �

a copy of the Transmission Report. In the event of extenuating circumstances beyond control of the tenderer or Hydro, the decision will be the responsibility of the Manager of Supply Chain.

Key elements of the bids have not been included.�

If Tender is not properly identified or signed.�

Unsolicited bids will not be considered ; however, alternative tenders, where requested, will be �

considered for further evaluation to determine whether they are owner approved equivalent (s). Failure to provide specification and/or catalogue information of an equivalent product within the specified (48 hours) may result in rejection of the tender.Non-receipt of Tender Deposit.�

Buyer/Purchasing Clerk:

30.12.2 Notifies Team Lead, Procurement that a tender should be rejected and states the reason.

Team Lead Procurement

30.12.3 Reviews and approves rejection of tender.

Purchasing Clerk:

30.12.4 Drafts letter to rejected bidders showing reason for rejection.30.12.5 Returns rejected bids to Tenderer.

Forms:



Number:30.13

Revision: 0


Title: PURCHASING - PREPAID ORDERS

Scope: Define process to notify requestor, accounts payable and inventory control of prepaid

orders.

Related Procedures:

ProcedureOn occasion there is a requirement by vendor for Supply Chain to issue orders where terms of payment are prepaid with order.

Buyer:

1.1 Create purchase order 1.2 Notify requestor of the exceptional terms of payment1.3

Non-inventory item (3 digit part) Buyer may key receipt or provide instruction to local receiving station to receive order or portion

Inventory item (8 digit part) Buyer must notify applicable warehouse of exceptional payment terms and request receipt.

Storesworker:

2.1 Receipts the material/s and adds note to the PO that parts have been received on-line but not physically received at their receiving station. 2.2 Notifies Buyer that receipt has been keyed.

Buyer:

3.1 Notify accounts payable of exceptional terms of payment for order and that receipt has been keyed. 3.2 Request cheque to be forwarded to accompany order.

Forms:




Number:30.14

Revision: 2


Title: On-Line Tendering

Scope: Define Process

Related Procedures:

ProcedureNALCOR ENERGY ESOLUTIONS EPROCUREMENT - QUICK STEPS

Forms:


Nalcor Energy Policies and Procedures

n~~CC~t" ~C~r gate Policies and Procedures~ ~~~~~~ ~

Policy Number: FIN-001

Page 1 of 7

Authorization and Procurement of Goods, Services and Work - ~ ~ ~-

~~.

Policy Group: FinanceSupply ChainSupply Chain


Policy Owner: Manager,Supply Chain

Created By: Kelsey Hayley/NLHydro

Last Revisied By: Kelsey Hayley/NLHydro

Copyright (c) Nalcor Energy

Nakor Energy - (orpor~te Policies and Procedures

Revision Number: 1

Approved Date: February 8th,2016

Creation Date: Feburary 8th,2016

Date of Last Revision: Feburary 8th,2016

http://grid/corporateintranet/nepoliciesprocedures.nsflPrintDoc/AFF7A078DFAEFA25A32... 8/8/2017


L~ ~IaIC~1r ~C~raorate Policies and Procedures~r~erg~ ■

Policy Title: Authorization and Procurement of Goods, Services and Work

Policy Group: Finance

Supply Chain

Supply Chain


Policy Owner:

Policy Statement

Page 2 of 7

Nalcor Energy and its Affiliates procure goods, services and work requirements in a competitive and cost efficient manner, consistentwith good business practices and in accordance with relevant legislation.

Purpose

This policy outlines requirements related to the appropriate authorization of and procedures related to the procurement

of goods and services and work in accordance with Nalcor's signing authority matrix and the relevant legislation. Thepolicy describes the conditions that must be met to request and approve a purchase requisition, as well as the

procurement methods to be utilized. The policy also addresses allowable exceptions to these requirements (where

applicable), as well as guidance in relation to any required changes in contracts.

Guiding Principles

1. Capital and operating expenditures shall be within the annual budgets approved by the Boards of Directors. In the

case of Hydro for regulated operations, capital expenditures shall be within the Annual Capital Budget approved by

the Public Utilities Board.

2. Nalcor Energy purchases its products and services in a competitive and cost efficient manner, consistent with good

business practices and within relevant legislation.

3. Achieving best value is the core principle underpinning the Corporation's procurement. This principle requires a

comparative analysis of all relevant costs and benefits of each proposal throughout the whole procurement lifecycle(Lifecycle costing). In addition to cost, a lifecycle assessment would also consider such factors as the maturity of themarket, the performance history and credit worthiness of prospective suppliers, relative risk of each proposal, theflexibility to adapt to changes over the lifecycle, financial considerations including direct and indirect benefits that

could be obtained, future price at disposal, contract extension options and legislation and regulations applicable tothe acquisition.

4. Tenders will be awarded based on total value analysis of the bids submitted. This analysis may include price, quality

and suitability of product or service in reference to our specifications, vendor performance, delivery commitment,

environmental factors, safety awareness programs, and other aspects as deemed necessary.

5. Nalcor is committed to and will encourage local supplier development and wil l ensure that procurement methods

provide full and fair opportunity to local enterprises.

6. Competition is a key element in Nalcor's procurement and is encouraged through effective supplier development

Nalcor Energy Policies and Procedures FIN-001: Authorization and Procurement of Goods, Services

and Work

Version 1, Feburary 8th, 2016

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Nalcor Energy Policies and Procedures Page 3 of 7

and communication and the use of competitive procurement processes.

7. Efficiency and effectiveness of resources is also a fundamental principle of Nalcor's procurement. Efficiency isenhanced by conducting transparent, fair and appropriately competitive processes of a scale commensurate with

the size and risk profile of each particular project. Effectiveness can be achieved by ensuring that the property or

service being sought will make the maximum possible contribution to the relevant outcome including identifyingthe needs, accurately drafting functional specifications, rigorously assessing responses and negotiating the final

contract and diligently managing the contract.

8. Nalcor will adhere to ethical business practices, dealing with potential suppliers with trust and respect and treatingall participating potential suppliers as equitably as possible. Employees involved in procurement must not seek tobenefit from supplier practices that may be dishonest, unethical or unsafe, including the acceptance of gifts or

hospitality.9. Nalcor must ensure that its procurement processes is open and transparent and that decisions are justified and

conducted soundly and that procurement related actions are documented, defensible and substantiated.

10. Further detail on Nalcor's Procurement Principles can be found in the supporting documents to this policy.

11. Newfoundland and Labrador Hydro (NL Hydro) must follow the regulations of the Public Tender Act, which requirespublic tenders for specific circumstances and states that the preferred bidder on a tender would be the vendor withthe lowest qualified bid, having met all of the specifications of the tender. The Act outlines exceptions to theserules and requirements if the contracts are not awarded to the preferred bidder.

12. Authority to purchase or enter into contracts must be approved by individuals possessing an appropriate level ofsigning authority. Commitments and expenditures may only be authorized when under the direct control of theperson involved and when the approver is not the direct beneficiary of the expenditure.

13. The Supply Chain Management and Administration Department has the authority to solicit quotations, call tenders,issue purchase orders and award contracts for Nalcor Energy and its subsidiaries. Purchase orders or contracts willbe issued only if they are supported by an appropriately approved Purchase Requisition or an Approval to Awardform prior to the commitments being made.

Definitions and Terms

Blanket order: Document used to purchase a service, usually for extended periods; can also be used as a payment tool toadminister a contract payment.

Change Order: A change in the scope of work or total costs as previously contemplated in an existing contract

Contract: Document used to bind both parties to a contract for performance of requirements normally associated withconstruction, supply or service contracts (usually upon acceptance of a tender submitted in response to a call for tender).

Direct Quotation: Solicitation of a quote from a single vendor for the purchase of goods, services and work

Distribution Requirements Program: Inventory system that automatically identifies when inventory falls below a certainpre-determined level, highlighting the need to replenish stock

Energy Corporation Act: Act assented to on June 14, 2007 to establish an energy corporation for the Province of

Newfoundland and Labrador as an agent of the Crown.

Lease: A transfer of the possession of leased space for a fixed period of time at a specified rent - in the context of thePublic Tendering Act includes a renewal of a lease

Professional Services: Services that provide an opinion, a design or technical expertise such as environmental, medical,

technology or audit services.

Public Tender Act: An Act to provide for the calling of tenders for the execution of public works and the acquisition of


and Work




goods and services by government funded bodies

Page 4 of 7

Purchase Order: Document used to commit to the purchase of goods or services with Nalcor's Standard PurchasingTerms and Conditions.

Purchase requisition: Internally developed form utilized by the business to notify Supply Chain Management of requiredgoods, services or work, including authorization to proceed with procurement

Request for Proposal: Document used to request pricing when specification for a product or service cannot be welldefined, or to acquire Professional Services

Request for Quotation: Document used to request pricing from suppliers. Commitments to purchase are normallyconfirmed with a purchase order.

Tender Document: Document used to request pricing and other information from suppliers or contractors forconstruction, major equipment supply, transmission or distribution projects and specialty services.

Scope of Application

This policy applies to all divisions and lines of business within Nalcor Energy. There are specific provisions for the LowerChurchill Project ("LCP"), for the development stage of the project provided in the attached 2011-03 CEAP for furtherinformation.

Note that this policy does not address the following transactions:

Blanket orders and long term supply agreements, which are non-standard purchases that are usually initiated bySupply ChainPurchases made using employee corporate cards, which are covered in FIN14 -Corporate CardsEmployee travel expenses, which are addressed in Travel Expenses Policy

Standards and Requirements

Nalcor Energy and subsidiaries (excluding NL Hydro)

The Energy Corporation Act states that Nalcor Energy and its subsidiaries (with the exception of Hydro) are not requiredto follow the Public Tender Act related to procurement unless declared by the Lieutenant-Governor. However, subject tothe prior approval of the Lieutenant-Governor in Council, the Corporation shall develop and adopt procurement principlesthat follow best industry practices for procurement and contracting, including transparent supplier development,monitoring and reporting and those principles shall apply to the Corporation and its subsidiaries.

Nalcor and its subsidiaries shall report to the Minister on their procurement activities and shall include a summary ofcontracts entered into and the identities of suppliers to whom the contracts have been awarded every 6 months. Asummary of the procurement principles adopted and the reports required shall be made public by the Minister bypresenting them to the House of Assembly and other effective means, including electronically. The Public Tender Act canbe used as guidance by Nalcor Energy and its subsidiaries (excluding Hydro) in developing its procurement procedures.

NL Hydro

NL Hydro is required to follow the Public Tender Act for the procurement of its goods, services and work.


and Work




Upon complhicsion and receipt of an approved purchase requisition, goods, services and work are to be procured in

compliance with the following values (excluding taxes):

Procurement Method

PROCUREMENT Direct Quotation 3 Quotes Public TenderOF: or

Purchase Card

GOODS, SERVICES orUp to $5,000 $5,000 to $10,000 Over $10,000

LEASE of SPACE

WORK Up to $5,000 $5,000 to $20,000 Over $20,000

PROFESSIONALUp to $5, 000

$5,000 toOver $100,000

SERVICES $100,000

For purchases in excess of $5,000, the Buyer is required to obtain quotations from a minimum of three (3) vendors (as

determined by the requestor or identified by the Buyer for known suppliers of the required material/service). These

quotations may be provided by the requestor.

Approval to Award forms are to be utilized in situations when multiple quotes or public tendering is required. Upon

determination of a successful quote/bid (as outlined below), these forms must be completed by the initiator and

approved by an employee with appropriate signing authority.

Authorization of Change Orders to all contracts shall be subject to the following limits as established through delegation

of the authority of the Board of Directors, in compliance with specific requirements for changes to contracts awarded

under the Public Tender Act:

RIGINAL CONTACT UMULATIVE CHANGE REQUIRED

WARD VALUE RDER AMOUNT PER PPROVAL

ONTRACT LEVEL

Less than or equal to Up to $15,000

Project

100,000 Manager

rester than $100,000rester of $15,000 or 10% Manager

less than $500,000

President andrester than $500,000 rester of $50,000 or 5% CEO or Vice-

President

Values are cumulative, and based on the original contract value. All changes in excess of the cumulative change order

limitations require prior approval from the Board of Directors.

General

Employees shall not use their position to influence the awarding of Purchase Orders or Contracts to acquire a direct or

i ndirect benefit for themselves or a family member. Such actions would be considered a conflict of interest, in accordancewith Nalcor's Code of Business Conduct and Ethics.

Purchase requisitions and Approval to Award forms must be approved in accordance with policy FIN12 —Signing

Authorities.

Nalcor Energy Policies and ProceduresFIN-001: Authorization and Procurement of Goods, Services

and Work




Process /Procedure

Standard Purchase Initiation and Authorization

All standard non-inventory purchases are initiated through the use of Purchase Requisitions. Employees completePurchase Requisition forms (via manual or electronic means), which will be forwarded to an appropriate individual forapproval. The designated approver of the purchase requisition must possess a sufficient level of signing authority andoversight/control of the purchase involved to approve the requisition. Upon approval, the purchase requisition isforwarded to Supply Chain Management for review and processing.

For inventory replenishment purchases, an electronic requisition is generated by Materials Control Clerks as a result ofmessages received by running the Distribution Requirements Program (DRP). The required level of inventory/materialsprocurement approval is dependent upon the value and type of purchase. Please refer to policy SCM 30 —Procurementof Goods and Services including Construction for further details.

Non-standard purchases may also be initiated through other mechanisms, including blanket orders and long term supplyagreements and employee corporate cards. Please refer to policies SCM 30 —Procurement of Goods and Servicesincluding Construction and FIN14 -Corporate Cards for further details.

Purchase Requisitions and Orders are not required for costs related to interest, project insurance and other items whereinvoice approval is deemed acceptable. For such purchases, direct contact can be made with Vendors. Examples of thesecircumstances are listed below:

Building, Quarry permits and Easements

. CEA Assessments

. Conference Registration Fees

. Corporate contributions, charitable donations, and scholarships

. Credit Card Services

. DemurrageDirector's Fees and Expenses

. Employee travel, hotel accommodations and vehicle rentalsEntertainment

. Insurance Claims

. Legal fees associated with the purchase or lease of real propertyMembership DuesPetty Cash ItemsPostagePublic Service Announcements &Media Advertising

. Retirement, recognition dinners, and corporate sponsored events

In cases where a Purchase Requisition is not required, the original invoice supporting the expenditure will be approved inaccordance with this policy.

Proposals submitted to Nalcor are reviewed and analyzed by Supply Chain Management to ensure compliance withcommercial terms, however the requestor/project manager of the tender is responsible for financial and technicalevaluations in compliance with requirements of the requested work.

Procurement Process Authorization

Upon receipt of a purchase order or contract for the procurement of goods, services and work, the Supply Chain


and Work




Management department will review the selected method of procurement to ensure the proper process was followedbased on the nature and value of the expenditure or commitment. Supply Chain Management will also review the signingauthority of the received purchase requisition approval to ensure the appropriate level of approval has been obtained.

I n instances where Supply Chain Management has determined that the requisite procurement process has not beenfollowed, or inappropriate purchase requisition approval has been granted, the requisition will be rejected and returnedto the requesting department until appropriately remediated. Remediation may involve revisiting procurementmethodology or provision of an approved purchasing exception report.

Responsibilities

Purchase Requestors

. Identification of potential suppliers for goods, services or work in accordance with the appropriate procurementframework

Provision of approved purchase requisitions and completed purchasing exception reports (where applicable)

Business Unit Management

. Approval of purchase requisitions, Approval to Award forms and Change Orders in accordance with appropriatesigning authority

Supply Chain Management

. Review of submitted requisitions to ensure appropriate procurement protocols have been followed as indicated inStandards and Requirements Section and Process/Procedures Section

Supporting and Related DocumentsPi ihlir Tnnrlc~r drt

Enemy Corporation Act

Nalcor Energy's Procurement Principles (contact Manager, Supply Chain Management and Administration)

Nalcor's Code of Business Conduct and Ethics Guideline

Corporate Card Policy

Authorization and Procurement of Goods, Services and Work Policv

Purchase Requisition

Approval to Award

Purchasing Exception Report

Attachments


Nalca Energy - (orpo~ate Puluies aed Procedures

FIN-001: Authorization and Procurement of Goods, Servicesand Work


http://grid/corporateintranet/nepoliciesprocedures.nsf/PrintDoc/AFF7A078DFAEFAZSA32... 8/8/2017


~1~~CC~1" t~►rp~r~t~ Polici~~ and Procedures~nerge~ ■


Page 1 of 7

Corporate Cards t ~ - .. _ >; ~ .;:~.. , _ ~; ; ~ ,.. -.t::~ . , .;;

Policy Group: Finance Revision Number: 1Supply ChainSupply Chain

Policy Number: FIN-014 Approved Date: February11th, 2016

Policy Owner: Manager,Supply Chain

Created By: Kelsey Hayley/NLHydro Creation Date: Feburary 9th,2016

Last Revisied By: Kelsey Hayley/NLHydro Date of Last Revision: Feburary 9th,2016

Copyright (c) Nalcor Energy

Naicai Enetgp -(orpo~ate pciicies and Pro~c~edures --- — --~----

http://grid/corporateintranet/nepoliciesprocedures.nsf/PrintDoc/8C40D 10575AAE579A325... 8/8/2017


1~~~ ~" +C~~ ~~~~~ P~oficies and Procedures~ ~~~~~~ ~

Policy Title: Corporate Cards

Policy Group: Finance

Supply Chain

Supply Chain


Policy Owner:

Policy Statement

Page 2 of 7

Corporate cards are issued to those employees (and contractors, in exceptional circumstances) who travel for corporate businessand/or may be required to purchase materials under apre-determined cost threshold for incidental unplanned work or immediateneeds without a purchase requisition.

Purpose

This policy provides guidance for the issuance and management of corporate cards and the related procurement of goods,services, and work through corporate cards. The policy describes the conditions where a corporate card can be used andoutlines allowable and prohibited purchases. It also addresses the processes for the issuance, revoking and safeguardingof corporate cards, including actions required upon detection of fraudulent activity.

Guiding Principles

1. To reduce the administrative burden associated with smaller purchases and to facilitate immediate purchasingneeds, employees are permitted to make specified business purchases up to a predetermined cost threshold ontheir corporate cards.

2. Supply Chain Management and Administration are responsible for the issuance and administration of the corporatecards on behalf of Nalcor Energy.

Definitions and Terms

Cardholder Agreement: An agreement signed by the cardholder as part of the application process outlining cardholderrequirements.

Corporate card: A third party purchase card issued to employees to make purchases on behalf of Nalcor for businesspurposes.

Exceptional Coding: The reallocation of costs by an employee to business units or cost types other than the default codingpredetermined by the employees' home business units/vendor merchant category codes. Expenditures requiring

exceptional coding generally relate to capital, intercompany, third party billing, ornon-standard operating activitiesassigned to an incorrect cost code.

Nalcor Energy Policies and Procedures FIN-014: Corporate Cards




Nalcor Energy ("Nalcor"): includes Naicor Energy and all lines of business including Newfoundland and Labrador Hydro,

Churchill Falls, Energy Marketing, Bull Arm Fabrication, Oil and Gas and the Lower Churchill Project.

Scope of Application

This policy applies to all individuals in possession of corporate cards, across all lines of business and divisions within Nalcor

Energy.

Standards and Requirements

Corporate cards are issued to those employees who travel for corporate business and/or may be required to purchasematerials under apre-determined cost threshold for incidental unplanned work or immediate needs without the need for

a purchase requisition.

Corporate cards should only be issued to those who require them for authorized business purposes.

Corporate cards should not be issued to:

. Employees who have no purchasing responsibilities;

. Employees who do not travel;

. Temporary employees whose full employment term is less than eight weeks*

*Call-back employees that are employed for a term of greater than 8 weeks, but may not work eight weeks consecutively,

will return their corporate cards to their supervisor during periods of suspension of employment.

Employees are not to use their personal credit cards for business expenses that are permissible on corporate cards.

Employees are required to retain detailed receipts for business expenditures, which are to be submitted with their

respective approved corporate card statements to Accounts Payable, upon approval by their supervisor.

Corporate cards have been set up to record transactions to a default business unit based upon the employees' home

business unit. Cost codes are also predetermined based on Merchant Category Codes defined by the nature of the vendor

(e.g. Merchant Category Codes are mapped to 1 of 22 defined object accounts). Employees are required to provide any

adjustments to the predetermined coding to Accounts Payable through a Purchasing Card Statement —Exceptional Coding

Form.

Extensive details related to obtaining and appropriate use of corporate cards are outlined in Supply Chain ManagementPolicy 31.1 Obtaining and Use of Purchase Cards. Please refer to the noted policy for further details where applicable.

Expense Limits and Purchase Restrictions

Corporate cards should only be used for authorized business purposes in accordance with limits on individual and monthly

transactions. The limits are enforced by the corporate card provider, such that single expenditures cannot exceed $5,000

and monthly transaction limits cannot exceed $10,000 (both inclusive of taxes). Splitting of transactions to circumvent the

single expenditure limit is prohibited. Instances of transaction splitting are flagged by the corporate card provider and

sent to Supply Chain Management for review.

The above noted limits may be increased in exceptional circumstances (e.g. course registration, overseas travel, etc.). Any

required changes to limits must be approved by the employee's direct supervisor and the Manager, Supply Chain and

Administration. The ability to change purchase card limits is limited to Purchase Card Administrators.





I n addition to the above limits, the following items cannot be purchased on purchase cards:

. Meals and entertainment;

. Fuel for fleet vehicles (should be purchased on vehicle card except in areas where vehicle card is not accepted);

. Personal Computers (including:

. those for personal use (including approved peripheral devices) to be financed under Employee Purchase

Program. These must be paid for personally and submitted for reimbursement by the employee or paiddirectly by the Company to the supplier in accordance with Employee Purchase Program Policy;

. desktops, laptops and WYSE devices acquired under the Information Systems capital program which must berequested through a Hardware Request Application sent to Information Systems and approved prior topurchase;

. Healthcare services including prescription drugs;

. Cash advances;

. Items easily convertible to cash (e.g. gift cards);

. Inventory items; and

. Any personal purchases.

Note: As the employee's home business unit is accountable for the cost of the acquisition of (Pads and (Phones, these maybe paid fir using the employee's corporate card but must also be requested through the Hardware Request Application as

the Information Systems department must ensure that the devices have the appropriate configuration, including security.

Supply Chain Management will monitor the corporate card transaction file for card violations on asemi-annual basis.Violations and potential violations will be reported to the employee's supervisor for subsequent discussion with the

employee and action, if required.

Process /Procedure

Purchase Card Issuance

An employee's department/area manager must approve the issuance of a corporate card to an employee via the

completion of the "Purchasing Card Employee Application and Agreement" form. Supply Chain Management is

responsible for issuing corporate cards to employees upon receipt of approval from an appropriate supervisor.

Under certain circumstances, corporate cards may also be issued to external contractors. The issuance of a corporate card

to a contractor follows the same process as that for an employee as noted above. However, the Employee Purchasing

Card Application and Agreement must be approved by the Vice President overseeing the business unit in which the

contractor is hired prior to issuance. Supply Chain Management will verify that this approval has been obtained prior

processing the request for corporate card.

Submission of Corporate Card Statements to Accounts Payable

Each employee receives his/her corporate card statement listing all of the detailed transactions for the previous month on

a monthly basis when the card has been used. Employees must review and reconcile their card statements by verifying

that all activity is appropriate and attaching the original invoices/detailed receipts for each transaction listed on the

statement. It is the cardholder's responsibility to obtain any missing receipts. If the cardholder is unable to obtain these

receipts from the supplier, he/she must indicate why they have been unable to provide the receipt along with a

description of the expenditure on the purchase card statement.

Each employee is required to acknowledge the accuracy of the card statement by signing the statement as evidence of

their review. If there are items that require exceptional coding (i.e. non-default corporate card cost codes), the employee

will complete and attach an "Exceptional Coding Form" to the card statement indicating the items that are to be

exceptionally coded along with the appropriate coding.



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The following transaction types qualify as those that should be exceptionally coded and are identified on the PurchasingCard Statement -Exceptional Coding Form:

. All capital transactions (including travel expenses charged to a capital project);

. Intercompany transactions;

. Transactions related to third party billings;

. Charges between regulated and non-regulated business units;

. All transactions related to Corporate Mobile Equipment (e.g. vehicles and mobile tools that do not have anassociated vehicle card); and

. Operating items over $100 coded to inappropriate accounts.

Employees must forward their signed statement directly to their immediate supervisor for review and approval.Supervisors are responsible for ensuring that all purchases have been made for legitimate business purposes, areappropriately coded and that appropriate receipts are attached to the purchase card statement.

Upon completion of review and approval, the supervisor will submit the approved statement to the Accounts Payabledepartment on a timely basis, who are responsible for verifying that the statement is appropriately approved and thatrequired supporting documentation is attached (e.g. receipts, exceptional coding form).

Purchase Card Revoking

Employee corporate cards may be revoked or cancelled under the following circumstances:

Delinquency submitting statement over 90 days;

. Change in job (i.e. transfer to another department, promotion, etc.);Long term disability /leave of absence /maternity leave;

. Termination/retirement;Extended period of inactivity; and

. Improper use of the card.

Delinquent Cardholders

The Supply Chain Management group will address circumstances where card statements have not been submitted on atimely basis as follows:

Outstanding 30 days —notice sent to Cardholder;

Outstanding 60 days —notice sent to Cardholder and Supervisor; and

Outstanding 90 days — A Purchase Card administrator will suspend the card. A notification will be sent to theCardholder and his/her Area/Department Manager by Supply Chain Management, notifying the individual that thecard has been suspended. Approval of the cardholders divisional Vice President is required to reinstate theaccount.

Change in lob Status

When an employee's job status changes as a result of transferring to another job/department, Line of Business, extendedleave or long term disability, it is the responsibility of the employee's supervisor to notify the purchase card

administrators to make any requisite changes (i.e. transfer to new business unit, suspension or cancellation) to theemployee's card.

Safeguarding of Corporate Cards

I n the event that a cardholder's corporate card has been lost or stolen, the employee must immediately notify the card





provider in order to facilitate the cancellation of the card.

Page 6 of 7

All cardholders are expected to carefully scrutinize their card statements on a regular basis for any suspicioustransactions. If a suspicious transaction is noted, the cardholder should immediately notify their supervisor and SupplyChain Management, as well as the card provider. Should the card provider suspend an individual's card due to suspicionof inappropriate activity, the cardholder must contact the provider for resolution of the issue. If errors are detected onthe card statement, it is the responsibility of the cardholder to contact vendors to resolve the issue(s).

All corporate cards are equipped with chip technology wherein a Personal Identification Number (PIN) is required tocomplete any transactions. Cardholders should create a secure PIN that would not be easily guessed or detected in theevent that the corporate card is lost or stolen. Employees should not disclose their PIN, card number or lend their

corporate card to other co-workers or individuals. An exception to the above pertains to situations where administrativeassistants may possess card information on file for purposes of making purchases on behalf of the cardholder (such asbooking corporate travel), and fleet vehicles in Churchill Falls.

Responsibilities

Cardholders

. Providing detailed receipts and card statements supporting corporate card expenditures to Accounts Payable on atimely basis

. Exceptional coding of applicable corporate card transactions

. Demonstrating the business purposes of expenditures incurred

. Protection and safeguarding of corporate cards in their possession

. Resolution of issues with transactions appearing on card statements with card provider or vendors

Supervisors/Managers

. Approving applications for employee corporate cards and changes to card limits

. Approving employee corporate card statements on at timely basis and ensuring that detailed receipts are present

. Ensuring all costs have been incurred for a valid business purpose and are appropriately coded

. Ensuring staff compliance with the Corporate Cards policy and taking corrective action as required for instances ofnon-compliance

Supply Chain Management

. Issuance, suspension and cancellation of corporate cards

. Monitoring corporate card usage and approving increased card limits

. Suspension of delinquent cards

Accounts Payable

. Verifying that the statement is appropriately approved and that required supporting documentation is attached(e.g. receipts, exceptional coding form)

Processing corporate card transactions and related adjustments on a monthly basis

Supporting and Related DocumentsObtaining &Use, Purchase Card Policy

Purchasing Card Employee Application and Agreement form





Purchasing Card Statement -Exceptional Coding Form

Attachments


t~~l~a Eta~rgy -~r~r~~r~te ~flEi~~~ aid P~~~e~~r~s

Page 7 of 7

FIN-014: Corporate CardsVersion 1, Feburary 9th, 2016


Service Provided By:

651 Colby Drive, Waterloo, Ontario N2V 1C2 Tel: (519) 884-3352 Fax: (519) 725-1394 www.eSolutionsGroup.ca

NALCOR ENERGY ESOLUTIONS EPROCUREMENT – QUICK STEPSXXXXXXXXXXXXXXXXXX

TABLE OF CONTENTS

1. WEB UTILITIES – CREATING CSV FILES - BUYER ............................................................................... 1

2. POSTING AND SETTING UP EBIDS (ESOLUTIONS SYSTEM) .............................................................. 5

3. ADDING E-BID DETAIL ...................................................................................................................... 7

4. ADDING ADDENDUM ..................................................................................................................... 12

5. VIEW RESULTS / EXPORTING SUBMISSIONS .................................................................................. 14

6. AWARDING THE BID / POSTING BID RESULTS ............................................................................... 18

JUNE 2015 Page | 1

The following lists of steps are the high-level tasks to complete a bid post / setup from start to finish. For

more detailed instructions and more advanced options, please refer to the user manual.

1. WEB UTILITIES – CREATING CSV FILES - BUYER

1. Open your web browser (this application works best with Microsoft Internet Explorer 8 and

above).

2. Enter the following into the address bar of your web browser, and hit enter: http://webutilities

HWU will validate your user account automatically. There is no need to worry about logging in

or out of the application.

**NOTE: Web utilities is NOT accessible from outside the Hydro network. You must be logged

into the Hydro network with your Windows account.

3. Locate the Purchase Data Export module

JUNE 2015 Page | 2

This screen requires your JDE username and password

JUNE 2015 Page | 3

4. In the “Order Number” field, enter the order/quote number that you wish to format/prepare for

export

5. Click the “Preview Export” button next to the Order Number field (see above).

6. Click the “Export” button as shown above, which appears only after generating and previewing

data.

7. A pop up window will appear with an option to save or open the new CSV file

8. Click save, save the document in the H:\Materials Management\Working Files Contracts –

Commodities, create a new file for each new tender.

JUNE 2015 Page | 4

9. Open the Excel File

Here is where you determine what will appear on the on-line tendering page.

If all items are for the same line of Business and for the same destination, note to the P-Clerk to

remove these columns and put the information on the header when imported. (See further

instruction below.)

Add text to Column H - Unit Price and I – Extended Total

10. Click save, save the document in the H:\Materials Management\Working Files Contracts –

Commodities, create a new file for each new tender.

NOTE: Do not add any rows above the imported text.

Prepare file and forward to Purchasing Clerk.

CONTRACT TENDERS:

Schedule of Prices is to be provided in Excel Format.

BUYER

File opens in excel

Ensure that if there are multiple tables each table is copied and saved individually.

Naming format example:

Table 1: Schedule of Prices

Table 2: Additional Work

Table 3: Additional Material

Table 4: Optional Items

JUNE 2015 Page | 5

Contract

Number:

Contract

Title:

Item

Number Item Description

Unit of

Measure

Estimated

Quantity Unit Price

Extended

Cost

1 Crane inspections at Paradise River Hydro station 0.00

2 Crane Inspections at Bay d'espoir. 0.00

Appenedix 10 - Schedule of Prices

2015-60762MA

Crane inspection services for Hydro Generation

Save excel spreadsheet, “Save As” tender number with Buyer Initial

Save as Type CSV (Comma delimited).csv

Remove any characters ($ , .) from the file.

Your are ready to setup tender step 19 covers importing the file.

Forward file to Purchasing Clerk for posting.

2. POSTING AND SETTING UP EBIDS (ESOLUTIONS SYSTEM)

1. Login to eSolutions eProcurment System

2. Navigate to http://nalcor.esolutionsgroup.ca/Nalcor%20Energy/Management/Login

.1 Enter the username that was provided. (firstname + lastname, eg; janethiscock)

.2 Enter the password that was provided. (temporary: 123456)

JUNE 2015 Page | 6

.3 Enter the domain that was provided (domain: nalcor energy)

3. Navigate to the bid section

.1 Click on the eProcurement link on the left-hand side (see below -#1)

.2 Click on the Bids tab at the top of the page (see below - #2)

.3 Create new bid by clicking on ‘Create’ button (shown above - #3)

4. Fill in the details on the Bid Details Page

1. Title – Enter the Quote Number and Name

2. Status – Design Mode Important: Leave the bid status in “Design Mode” until you have

completed setting it up (see below)

3. Type – select the type of bid (eg Public Tender, Quote, RFP, etc)

4. Pickup Location – you can leave it empty

5. Publish Date – the date and time you want the bid to go onto the website. You can

schedule a bid to be published on a future date and it will be posted automatically on

JUNE 2015 Page | 7

that time. (Note: if your are publishing at a defined, ensure that fax notifications are

coordinated to be released at the same time)

6. Date Closing – the closing date for the bid. On this exact date and time, the bid will shut

down and no one will be able to submit anymore or register to get documents.

7. Question Deadline: Not mandatory

8. Department – Select your Line of Business

9. Division – just select “Division”

10. On-Line Submission: Where on-line submission is applicable, select from dropdown

box. (Once on-line Submission is selected, ebids tab will open at top of screen) (Note:

On Buyer checklist advise if submission is available for on-line submission)

11. Available to Public – Leave it as is – Public (usually this will be set as Public unless you

want to do a private bid or the second date of a pre-qualification)

12. Show Teams Member – leave it to be Show to Pubic

13. Show Bids Submitted – Select Hide from Public

14. Show Unofficial Results – leave it to be Hide from Public

15. Enter any special instruction, ie CSMP, Site Meeting

16. Select the Commodity Categories that are applicable (normally the first two digits of a

item number.)

17. Upload relevant documents such as Specification, Drawings etc. Browze: H://Materials

Management/Working Files……. Pages (not required)

Upload PDF File

18. Save the bid by clicking the ‘Add Bid’ button

3. ADDING E-BID DETAIL

JUNE 2015 Page | 8

1. Click on the eBid tab (note: the eBid tab will only appear if you have Online Submission =

Required)

2. Adding Envelopes Add a number of envelopes this will allow bidders to attach multiple

documents. (NOTE: If you put a check mark in the box beside each envelope, this makes

attachments for each envelope mandatory.

NOTES: NO CHECK MARK MEANS IT’S NOT MANDATORY.

When adding envelopes for commodity tenders, ensure check mark is removed unless technical

component is required, then name envelope Technical Component and mark mandatory.

For construction tenders and RFP, Ensure envelopes are named, and checked to make

mandatory.

Envelope Names: Tender Submission (Mandatory)

Bonding Requirements (Mandatory where applicable)

WHSCC and Insurance Requirements (Mandatory)

Technical (if required Not Mandatory)

3. Navigate to the bottom of the page and click the Create button, choose Import from CSV

4. Select the file from the H drive working folder (that you saved in step #7 of Web Utilities

Creating csv file page 2 of this document)

5. Once the data has been imported, you need to modify the table properties to configure the

tables.

6. Your bid table will display in the grid below. You can make changes to data if you need to by

editing it in the grid and saving.

JUNE 2015 Page | 9

NOTE: Before editing any columns, Toggle Text Fields to move the Line of Business and INCO

Terms columns. This allows more space for vendors to view the complete screen. Once

information is keyed, select Toggle Text Field to close this screen.

7. Select Edit Table Properties

8. Once the Properties page appears follow these steps

9. Include Line Item Numbering Select Yes and Start at Number 1. (not shown on picture below)

JUNE 2015 Page | 10

10. Select INCO Terms Delete this column (should have already been moved to Toggle Text) (1)

11. Configure each table column to the appropriate type (eg Text, Unit Price, Quantity, Amount)

(May add a text column for vendors comments for commodity tenders, make sure additional

columns added are “Editable on Public” where applicable. (2)

12. Ensure that the Unit Price column is set as “Editable on Public”

13. Extended Price Field

14. Save the Changes. After you save, the software will detect that you want to do a calculation. It

will ask you to pick the fields to calculate. Select the Qty and the Unit Price. (note: if you do not

see Quantity and Unit Price as options, click the back button and ensure you setup your table

properly see steps #2 and #3 above)

15. Change the name of the table to the name of the quote or the table name as per the bid

document.

16. Include the subtotal at the bottom. (3)

17. Include a summary table (sets the total bid price)(4)

JUNE 2015 Page | 11

18. Imported table mark all items as mandatory, which will not all vendors to submit partial bids.

Select Edit Table Rows

19. Select None Required and Save Table. And Close

20. If everything is complete, then click the save button

21. To view how your bid is going to look, click the Preview button at the bottom right side of the

screen. This will open up a page where you can view what you have entered.

22. Generate Bid Document will generate a pdf document. May want to do this for inventory or

commodity tenders so that a vendor can have a working document, not necessary for

construction contracts and RFP.

23. Navigate to the Team Members Tab and add the appropriate buyer’s name.

24. Select the Buyers name from the list (see below)

25. Click the Add button

26. Double click on the buyers name in the list, then type in their Role. Eg “Buyer” (see below)

JUNE 2015 Page | 12

27. If everything is formatted appropriately, select the bid details page and change the status to

“Open”

28. Save the bid

29. The system will automatically send out a notification email to all vendors who are registered

under the commodity of a particular tender.

4. ADDING ADDENDUM

1. Search for the tender, highlight and select Edit

2. Select Addenda, and attach applicable file.

Select Upload

3. You will be prompted to notify plan takers

JUNE 2015 Page | 13

4. To change the closing date, select ebids tab, you will be prompted to notify plan takers of

change. NOTE: If we are extending the closing date, it is necessary to attach a notice of

extension letter as we require the plan taker to acknowledge receipt of the notice of extension.

5. Sending email, follow the prompts

6. Select Next

7. Selecting Vendors to receive notification

JUNE 2015 Page | 14

5. VIEW RESULTS DOWNLOAD/ EXPORTING SUBMISSIONS

One the bid has closed (it will automatically close on the closing date/time) the results will be

available for you to see and download.

1. To view the submissions, click the “Submission” tab (see below)

JUNE 2015 Page | 15

2. You can view the results of the submission by click on the magnifying glass next to the

completed submission. (A box will open up with the submission data, see image below)

Note: You cannot view incomplete submissions, so the magnifying glass will not be lit up for

those that are not complete

3. To view the completed submission, click the link that says “Completed Submission”

4. To export all of the bid documents (eg if the vendor uploaded documents) you can press the

“Export All Bid Documents” (see below) This page should be printed to take to the tender

opening.

5. To export all completed submissions, click the link that says “Export All Completed Submissions”

6. Select Save As

Save in appropriate folder.

NOTE THIS IS A NEW FOLDER

JUNE 2015 Page | 16

7. When file is saved following screen will display , Select View Downloads

8. Select Open

9. Select Open

10. After you export all submission, a folder will be created for you that has all of the submissions in

the folder. Inside there will be a folder for each vendor. There will also be a an Excel file that

breaks down the cost of the submission (Commercial Evaluation File) for all vendors.

JUNE 2015 Page | 17

To add vendors who submitted via fax or hand delivered

Select the Award Tab, in the submitted section, search for Vendor ( may take a few seconds),

then Add the Vendor. If vendor is not a registered as a Plan Taker, we can add the vendor

manually under the Plan Takers Tab, the vendor requires to be listed as a Plan Taker before you

can add them to the Award Tab.

To add pricing, double click in the value field and manually key the tendered amount, Make sure

to Save.

JUNE 2015 Page | 18

11. To display Tender Results (name only)

Go to Bid Detail Tab,

Show Bids Submitted: select Show to public

Show Unofficial Results: select Show to Public

6. AWARDING THE BID / POSTING BID RESULTS

Note: Award results will not appear on the website unless the bid status is set to “Award”.

After you have evaluated all of the bids, you can post the award results to the website by

choosing the awarded vendor.

1. Navigate to the bid, and select the “Award” tab

JUNE 2015 Page | 19

2. The award tab will show all of the bids that have been submitted (this information will not be

published on the website unless the “Show Bid Submitted” option is enabled on the bids detail

tab”

3. To select a vendor(s) to award, type in their name into the box that says “search for vendor” –

highlighted above. This list will only list vendors that have submitted, it will not search for other

vendors in the database

4. Select the vendor from the list and click “Add”

5. You can manually type in the awarded value into the comments and notes field

JUNE 2015 Page | 20

6. After you end the value, click the save button.

Attachments:

Status: Original

Category:

Finance Policy No:

FIN 1 Revision No:

9

Title: AUTHORIZATION OF EXPENDITURES

ApprovedApprovedApprovedApproved 2006200620062006 MarchMarchMarchMarch 22222222

IssuedIssuedIssuedIssued 2006200620062006,,,, MarchMarchMarchMarch 23232323

Policy:

General

1. Capital and operating expenditures shall be within the annual budgets approved by the Boards of Directors (and in case of Hydro, Annual Capital Expenditures approved by the Public Utilities Board).

2. Hydro’s Board of Directors must approve any proposed unbudgeted capital expenditure which equals or exceeds $1 Million.

3. CF(L)Co’s Board of Directors must approve:

3.1 any changes to its operating or capital budgets which equal or exceed:- $10 Million in the aggregate; or - $5 Million for any single budget item

3.2 capital budget of any Subsidiary Company where the budget exceeds $500,000 plus aggregate amount of capital expenditures that are fully recoverable from third parties, and any material variations to such budget.

4. Proposed Commitments and expenditures shall be approved by employees with a level of signing authority equal to or greater than the amount of the expenditure.

5. Expenditures may only be authorized:5.1 when under the direct control of the position involved5.2 when the approver is not the direct beneficiary of the expenditure.

6. Expenditures, in addition to compliance with this Policy, shall be in compliance with:6.1 P & P PRO 1 - Procurement of Goods, Services and Work for expenses other than travel;

and6.2 P & P EMR 11- Travel Expenses for travel expenses.

7. Work Orders will normally be used for accumulating capital and operating expenditures.

8. Signing Authority (assigned to a position) is related to a position’s reporting level, and normally is to a maximum of the following amounts:

CONTRACT APPROVALS

Position Expenditures

OriginalContract Value

Change Orders1

(cumulative value)

8.1 Board of Directors Unlimited > $500,000 Unlimited

8.2 CEO/ Vice-President / General Manager Unlimited > $500,000 $50,000 or 5%

8.3 Manager $ 500,000 > $100,000& <=$500,000

$15,000 or 10%

8.4 Project Manager $ 100,000 <= $100,000 $15,000

8.5 Engineer / Supervisor / Designated Planner

$ 50,000

8.6 Designated Project Manager / Specialist and Temporary assignment as approved by the Divisional Vice-President

$ 25,000

Note 1: Change Order limit is greater of dollar amount or percentage of original contract, BASED

upon ORIGINAL CONTRACT VALUE AND SCOPE.Changes exceeding these limits require PRIOR APPROVAL of Board of Directors

9. Signing Authority may be temporarily assigned to cover absence from a position.

Operating

10. Proposed unbudgeted operating expenditures and reductions in expenditures require justification and Divisional Vice-President’s approval.

11. Operating expenditures shall be reviewed and forecast regularly.

Capital

12. Proposed unbudgeted capital expenditures, reductions in expenditures and scope changes require appropriate justification and Divisional Vice-President’s approval.

13. Prior approval is required from the Public Utilities Board before making unbudgeted capital expenditures that exceed the approved Capital Contingency Fund.

14. Management of a Capital Job Cost must comply with the Project Management Manual (PMM).

Related Policies:

Procedure

General

Director, Human Resources

15. Maintains the list of Signing Authorities, by position, which shall be available electronically.

Supervisor/Director, Human Resources

16. The immediate supervisor may temporarily assign a position’s signing authority to cover an employee’s absence from the position. Implementation shall be through electronic notification to Human Resources Department, specifying the employee affected and the period of time covered.

Employee

17. Where an employee is the direct beneficiary of an expenditure, approval of such expenditure shall be required from the employee’s supervisor. In the absence of the supervisor, the next higher level of signing authority may approve the expenditure.

18. A Work Order may be established to group or track specific expenses, whether operating or capital.

19. Commitments and expenditures will be coded to applicable Work Orders and approved (electronically where available) by an incumbent with appropriate Signing Authority.

20. Purchase Orders or contracts are required to support costs involving a commitment or expenditure in excess of three thousand ($3,000.00) - see P&P PRO 1 – Procurement of Goods, Services and Work. Purchase Orders are not required for costs related to interest, project insurance, other capitalized overheads and for items listed in Materials Management and Administration Manual - Procedure 30 (Procurement - General).

Operating

21. Operating expenditures will normally be incurred and approved through the Work Order process.

22. A detailed review of operating expenditures for the current year shall take place:23.1 on a regular basis23.2 with a specific review:

- during preparation of the following year’s operating budget; and - in October.

23. An Operating Expenses forecast is required when any Budget Expenditure Group year end variance from original budget is expected to exceed the greater of 2.5% or $1,000. Divisional Vice-President Approval of the forecast is required for:23.1 the Salary Group of expenditures;23.2 power purchases;23.3 fuels and Lubricants associated with generation and23.4 any net change to an expenditure group.

24. Any item which changes the original intent of the operating budget also requires Divisional Vice-President Approval.

Capital

25. Approval of the Divisional Vice-President is required:25.1 For a Capital Job exceeding the approved capital budget by the lesser of

15% or $25,00025.2 For a Capital Job Change Order, where:

- the project scope changes, including cancellation;- the approved Job is forecast to be exceeded by the lesser of 15%

or $25,000- the approved Job is forecast to be underrun by more than $500,000.

26. Management Committee approval is required for any unbudgeted Capital Job.

27. Forecast changes to Capital Job shall be made in accordance withPMM 06.43 -Project Cost Reporting and shall be approved by the Project Manager.

Forms:

Click the link to access the Forms database.



Number:30.14

Revision: 2


Title: On-Line Tendering

Scope: Define Process

Related Procedures:

ProcedureNALCOR ENERGY ESOLUTIONS EPROCUREMENT - QUICK STEPS

Forms:




Number:31.01

Revision: 18


Title: PURCHASE CARD - CARDHOLDER - OBTAINING AND USE

Scope: Purchasing cards ( P-cards) represent a delegation of purchasing authority from Supply Chain Management to the responsible employee within Nalcor Energy. Supply Chain Management is responsible for issuance and control of P-cards. Supply Chain are also responsible to follow-up for outstanding P-Card Statements. Failure to have statements returned in a timely manner will result in suspension of a p-card. Reinstatement of a suspended card will require VP approval.

Purchasing cards are used primarily for travel, in accordance with Corporate Policy and Procedure EMR 11-Travel Expenses. They may also be used to obtain goods and services for incidental unplanned work or immediate needs. Purchase Cards are not intended to replace the Goods and Services Process.

Single expenditure not to exceed $5,000.00 and monthly transaction limit of $10,000.00. Exceptional circumstances may apply, and require the approval of the Area Manager, Divisional VP in agreement with Manager of Supply Chain to have the limits extended for individual cards

Material and Services required to carry out planned operating and capital work should be obtained through the Goods and Services or Purchasing Process.

Transactions will be recoded as follows and must be identified on the Purchasing Card Statement - Exceptional Coding Form:· All capital transactions (including travel expenses charged to a capital project)· Inter-company transactions· Transactions related to third party billings· Charges between regulated and non-regulated Business Units.- All transactions related to Corporate Mobile Equipment.

Cardholder may exceptionally code for any other individual transactions greater than $100.00.

Supply Chain Management will monitor purchasing card activity. If cards are misused or Purchasing Card Guidelines are not followed, card holders will be subject to corrective action as outlined in Corporate Policies and Procedures EMR 5 - Dismissal for Cause, EMR 18 - Dishonest or Fraudulent Activities and the Employee Handbook - Section IV: Your Job - Corrective Action.

P-cards are not required for: - employees who have no purchasing responsibilities;- employees who do not travel;

- temporary employees whose term is less than eight weeks.

Related Procedures:

Purchase Card AdministratorsPurchase Card AdministratorsPurchase Card AdministratorsPurchase Card Administrators :::: Janet HiscockJanet HiscockJanet HiscockJanet Hiscock ---- Team Lead ProcurementTeam Lead ProcurementTeam Lead ProcurementTeam Lead Procurement ((((ExtExtExtExt 1252125212521252))))Debbie ShawDebbie ShawDebbie ShawDebbie Shaw ---- Purchasing ClerkPurchasing ClerkPurchasing ClerkPurchasing Clerk ((((ExtExtExtExt 1854185418541854)))) Amelia FitzgeraldAmelia FitzgeraldAmelia FitzgeraldAmelia Fitzgerald ---- Supply Chain AnalystSupply Chain AnalystSupply Chain AnalystSupply Chain Analyst ((((ExtExtExtExt 5317531753175317))))Laura DihnamLaura DihnamLaura DihnamLaura Dihnam ---- Purchasing ClerkPurchasing ClerkPurchasing ClerkPurchasing Clerk ((((ExtExtExtExt.... 1335133513351335))))

Cycle Period for Purchase CardCycle Period for Purchase CardCycle Period for Purchase CardCycle Period for Purchase Card ---- Transactions between theTransactions between theTransactions between theTransactions between the 22222222nd day of a month to thend day of a month to thend day of a month to thend day of a month to the 21212121st day of the nextst day of the nextst day of the nextst day of the next monthmonthmonthmonth.... Statements normally are received by cardholder during the first week of each monthStatements normally are received by cardholder during the first week of each monthStatements normally are received by cardholder during the first week of each monthStatements normally are received by cardholder during the first week of each month ....

Corporate PCorporate PCorporate PCorporate P &&&&P EMRP EMRP EMRP EMR 5555 ---- Dismissal for CauseDismissal for CauseDismissal for CauseDismissal for CauseCorporate PCorporate PCorporate PCorporate P &&&&P EMRP EMRP EMRP EMR 11111111 ---- Travel ExpensesTravel ExpensesTravel ExpensesTravel Expenses

Corporate PCorporate PCorporate PCorporate P &&&&P EMRP EMRP EMRP EMR 18181818 ---- Dishonest or Fraudulent ActivitiesDishonest or Fraudulent ActivitiesDishonest or Fraudulent ActivitiesDishonest or Fraudulent Activities

Procedure

1. GENERAL RESPONSIBILITIES

Employee:

1.1 Cardholder is responsible to ensure:- that a fair and reasonable price is obtained for the goods and services;- that Cardholder executes Employee Agreement outlining responsibilities;- that all transactions are accurate and legitimate business expenses;- receipt of goods and services;- total value does not exceed $5,000 per transaction, including all applicable taxes and

transportation charges;- that multiple transactions are not issued to cover a purchase in excess of $5,000;- that monthly credit limit for individual cardholders of $10,000 is not exceeded; - that purchases meet Hydro standards. (Tools, Equipment and Personal Protective

Equipment).- that purchases are NOT charged to the P-card for the following items:

Meals and entertainment expenditures�

Fuel for fleet vehicles that contain a corporate fuel and maintenance card (PHH �

card) Computers�

Personal services including�

- Prescription drugs- Health care services and medical devices.Cash advances�

Gift Cards�

Inventory Purchases (Goods defined on the JDEdwards Item Master).�

Personal Purchases.�

1.2 Cardholders assigned to Capital Projects will be required to code their statement accordingly (use Purchasing Card Statement – Exceptional Coding Form) and forward to Accounts Payable.

2. OBTAINING PURCHASING CARD

2.1 Completes Purchasing Card - Employee Application and Agreement form. There is one application form, use drop down boxes to select line of business. There is a separate form for CFLCo Vehicles. Complete application online, print, signs and forwards the Application and the Agreement to Dept./Regional Manager or Section Superintendent for approval. Forward application to [email protected].

Dept./Area Manager or Section Superintendent:2.2 Authorizes the issue of a P-card to employee. 2.3 Provides employee with the appropriate Business Unit to which the card is to be coded.2.4 Forwards approved Purchasing Card - Employee Application and Agreement to Purchase

Card Administrator.

2.5 Notifies Supply Chain Management's Purchase Card Administrator when an employee transfers to a different Asset or Operating Business Unit or when an employee is retired or terminated. (See section 8 Retired or Terminated Employee and 11 Change Request)

Employee: 2.6 Receives purchase card and memo from Purchase Card Administrator, reviews and signs

memo “Acknowledgement for Receipt of Purchasing Card” and returns to Purchase Card Administrator.

3. USING CARD FOR TRAVEL:

Employee:3.1 Uses only for travel related expenses as authorized in accordance with Corporate P&P EMR

11 - Travel Expenses.3.2 Signs transaction slip/point of sale receipt, obtains original invoice, and retains for attachment

to P-card statement. If a description is not evident from receipt, employee should note it on the receipt.

4. USING CARD FOR PICK-UP PURCHASE:

Employee:4.1 Obtains original invoice, and retains for attachment to P-card statement. If a description is not

evident from receipt, employee should note it on the receipt

5. USING CARD FOR ONLINE, TELEPHONE, MAIL AND FAX PURCHASE:

Employee:5.1 Selects merchandise or service and provides the supplier with order and P-card number.5.2 Instructs supplier to forward goods or service, together with original invoice and transaction

slip directly to cardholder’s attention. Invoice must identify that transaction is covered by P-card.

6. MATERIALS TO BE RETURNED TO VENDOR:

Employee:6.1 Contacts Vendor for authorization and/or shipping instructions to return material.6.2 Returns material together with:

- a copy of the transaction slip; and - a copy of the original invoice.

6.3 Receives credit slip from Vendor which must be maintained to reconcile the monthly statement.

6.4 Ensures credit is issued to purchase card statement for returned goods.

7. RECONCILIATION, PAYMENT, APPROVAL AND RECORD RETENTION:

Employee:7.1 Receives monthly statement from P-card Supplier. Statements are dated the 22 of each

month, and should be received and by cardholders by the 10th of the following month. (Statement dated August 22, cardholder should be in receipt of statement by September 10. Statement should be reconciled, approved by supervisor and forwarded to Accounts Payable by the 22nd of September.) After this date statement is 30 day old and will

be followed up by Supply Chain.)7.2 Reconciles original invoices to transactions listed on statement.7.3 Acknowledges verification of all transactions listed are legitimate business expenses, by

signing credit card statement at bottom.7.4 Identifies discrepancies and takes appropriate action to resolve them. (see Dispute Process). 7.5 Codes the statement using Purchasing Card Statement – Exceptional Coding Form

- All capital transactions (including travel expenses charged to a capital project)- Inter-company transactions- Transactions related to third party billings- Charges between regulated and non-regulated Business Units.- All transactions related to Corporate Mobile Equipment should be exceptionally coded in

accordance with Fleet Services Policy.: - Any other individual transactions greater than $100.00 if required.

7.6 Attaches all original invoices and transaction slips/point of sale receipt and exceptional coding form to statement and obtains the approval of the immediate supervisor.

7.7 It is the Cardholder's responsibility to obtain any missing / lost receipts. If unable to obtain these receipts from the supplier the Cardholder should indicate the following on their purchase card statement. Do not hold-up sending approved statment to A/P make note on statement, obtain supervisor approval- Receipt was lost & unable to obtain copy - Description of expenditure- Approval of their Supervisor

7.8 It is the responsibility of the card holder to ensure that their purchase card statement is returned to Accounts Payable by the 22nd day of the following month. Supply Chain Management will follow up for statements that have not been received by the specified date.

Supervisor: 7.9 Receives monthly statement from employee, accompanied by original receipts. 7.10 Reviews employees P-card statements and attached receipts to ensure all transactions are

legitimate business expenses and all items requiring exceptional coding are identified on the attached Exceptional Coding Form.

7.11 Ensure any transactions that are not legitimate business expenses (eg personal expense) are reimbursed to Hydro, personal cheque must accompany statement.

7.12 Addresses the purchase card policy with the individual to ensure compliance.7.13 Addresses any questionable transactions including possible violations as identified by

Purchasing Card Administrator. 7.14 Approves employee P-card statement. 7.15 Forwards all original invoices, transaction slips/point of sale receipts, approved statement and

exceptional coding form to Accounts Payable by the 22nd day of the month for retention and audit purposes.

Accounts Payable7.16 Verifies receipt of approved statements from cardholders against master statement billing

each month. 7.17 Advises Purchase Card Administrator of cardholders from whom approved statements have

not been received and any P-card violations (personal charges) that are identified from review of the employees approved P-card statement.

Purchasing Card Administrator7.18 Will follow up on outstanding approved P-card Statements, a Lotus Note will be forwarded in

accordance with the schedule listed requesting they submit their approved P-card statement to Accounts Payable Notifications will be sent as follows:

Outstanding 30 days - Cardholder, Supervisor and Manager�

Outstanding 60 days - Manager, Supply Chain for review and suspension�

After these 2 notifications, purchase cards will be suspended for approved statements that have not been received.

Purchase cards that have been suspended will require approval of the responsible Vice President to be reinstated.

7.19 Review monthly file from Accounts Payable for violations.

8. LEAVE OF ABSENCE/SEASONAL WORKERS

It is the responsibility of the Immediate Supervisor to notify Supply when an employee is terminated. Termination notifications which are completed on-line are automatically forwarded to Supply Chain.

NOTE: If leave of absence is in excess of two months, card must be cancelled. Less than two months, card can be suspended and reactivated.

Seasonal Worker Employee: Upon notification of terminations, return purchase card to immediate supervisor.

Supervisor: Notify Supply Chain of employees termination date and expected date of return. Retain seasonal workers purchase card in a secure place (safe)

Employee/Supervisor:8.1 Notify Purchasing Card Administrator noting effective date for Leave of Absence.

Employee:8.2 On return to work, notify Purchasing Card Administrator to have card reactivated or forward

new application to Purchasing Card Administrator requesting new purchasing card.

9. RETIRED OR TERMINATED EMPLOYEE:

Supervisor:Employee Termination notices that are completed on line are automatically sent to Supply Chain to cancel purchase cards. Ensures final statements are approved and forwarded to Accounts Payable.

9.1 Collects card from employee.9.2 Notifies Purchase Card Administrator to cancel card.9.3 Destroys Card

10. DISPUTE PROCESS

(After receipt of monthly cardholder has 90 days to dispute a transaction. Statement and accompanying receipts forwarded to Accounts Payable with note that originals will follow once dispute is reconciled. ENSURE ACCOUNTS PAYABLE ARE IN RECEIPT OF THE STATEMENT WITHIN THE REQUIRED 30 DAYS.)

10.1 Supplier Error:Employee:

10.1.1 Contacts supplier directly.Supplier:

10.1.2 Reviews information and either demonstrates the charge is legitimate, credits account, or continues dispute.

Employee:10.1.3 Contacts P-card Administrator, if dispute continues.

Purchase Card Administrator:10.1.4 Works with P-card Supplier to resolve outstanding disputes.

10.2 Bank Error:Employee:

10.2.1 Contacts P-card Administrator with details.

Purchase Card Administrator: 10.2.2 Works with P-card Supplier to correct the error.

11. LOST OR STOLEN CARD

Employee:

11.1 Notifies P-card Supplier immediately of any lost or stolen card at telephone number

1-800-588-8067. To report suspected fraud charges on a card holder statement Please call1-866-540-9904.

Purchasing Card Supplier11.2 Cancels the lost or stolen card and issues a replacement card within two business days.11.3 Forwards replacement card to Purchase Card Administrator for distribution to employee as

outlined in Section 2 - Obtaining Purchasing Card.

12. CHANGE REQUEST:

Employee/Supervisor:12.1 Forwards request to Purchase Card Administrator outlining requested change(s)

(e.g. Employee transfers to different Business Unit or location, the default Business Unit and forwarding address for the statement must be updated.)

Note: If an employee moves from Hydro to CFLCo (or vice versa) a new application must be completed with the new supervisory approval, old card is cancelled.

13. MONTHLY REVIEW AND STANDARD REPORTS (Possible Violations)

Purchase Card Administrator:

13.1 Reviews monthly transactions and identify possible violations. This process is done between the 23 and 30 of each month prior to cardholders receiving their statement.

Following types of transactions will be reviewed:�

Multiple transactions to one vendor, same transactions date, in excess of $5,000.�

Single transactions in excess of $5,000.�

Meals & Entertainment Expenses.�

Review the excel statement billing file to identify other items other possible violations �

such as: Restaurants Liquor Boards

13.2 Prepares list of cardholders identified with possible violations. 13.3 Forwards email to cardholder and supervisor outlining particulars of possible violation.

Requests review of the individual cardholder statement. Attaches copy of card holder statement in Adobe Format to the email.

13.4 Maintains listing of possible violations.13.5 Adds any P-card Violations to the monthly Purchasing Violation Report for furtherance to

Management.Employee/Supervisor

13.6 Forwards response to Purchase Card Administrator reference any possible violations and notes comments on employees P-card statement.

13.7 Implements corrective action as outlined in the Employee Handbook - Section IV: Your Job - Corrective Action.

Purchasing Card Administrator: 13.8 Reviews dashboard report and cardholder statements.13.9 Contacts cardholder to advise and reinforce procedure, copy to supervisor.13.10 If inconsistencies continue further contact will be made with cardholders supervisor, Business

Unit Manager, or Area Manager.13.11 Review monthly file from Accounts Payable.

Employee13.12 Will be subject to corrective action for repeated non-compliance of these Guidelines and

Procedures, as outlined in the Corporate Policy and Procedure EMR 5 - Dismissal for Cause, Corporate P&P EMR 18 – Dishonest or Fraudulent Activities and Employee Handbook Section IV: Your Job - Corrective Action.

Forms:


Supply Chain Management Procedures Manual...Supply Chain Management Procedures Manual Status:...

Documents

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