Download - Procedure - BCIT · PDF fileProcedure 2. Approval to Release Proposal (Step 1 in illustration) At Step 1, the relevant authorities grant permission to formally release a specific bid

ProcedureProcedure

ContractPreparation

ProcedureNo.:2501-PR1 PolicyReference: 2501 Category: Finance DepartmentResponsible: SupplyManagement CurrentApprovedDate: 2016Apr28

DirectoryofRecordsClassification0650−10 1of16

Objectives

TheseproceduresapplydirectlytoPolicy2501,Contracts.Theobjectivesoftheseproceduresare:1. Toachieveanorderlyreviewofallcontractsduringtheirdevelopment,sothatBCITproperlyprotects

itsreputationandbusinessinterestsinitsexternalbusinessrelationships,balancedwiththeneedsofourpartners,customers,andsuppliers.

2. ToensurethatstaffwithsigningauthorityaregiventheinformationnecessarytoassesstheoverallmeritsofagivencontractpriortocommittingBCITtoperformance.

TableofContents

Objectives 1Applicability 1Scope 2Definitions 2DutiesandResponsibilities 2

RoleofContractsManager 2LegalAdvice 3ContractRepository 3DelegationofAuthority 3

IntroductiontoContractDevelopment 3LegalReview 3RiskAssessment 4

ContractDevelopmentProcess 5Orientation 51. Pre-ApprovalPhase 52. ApprovaltoReleaseProposal 73. NegotiationPhase 74. ApprovaltoSignContract 75. StepApprovalTableforRevenueContracts 86. StepApprovalTableforResearchContracts 97. StepApprovalTableforNon-monetaryContracts108. StepApprovalTableforPropertyLeases 109. ApprovalTableforExpenditureContracts 11

FormsAssociatedWithThisProcedure 16AmendmentHistory 16

Applicability

ThisprocedureappliestoallBCITemployeeswhoareinvolvedintheplanning,negotiation,preparation,orapprovalofcontractualdocuments.

ContractPreparation2501-PR1


ProcedureProcedureScope

Thisprocedureappliestoalltypesofcontractswiththefollowingexceptions:• Contractsrelatedtoemployeehiring• StudentcontractswhicharecoveredbyProcedure5100-PR1“StudentReports/Student

PerformanceContracts”

Definitions

Contract:awrittenagreementbetweentwoormorepartiesthatcreatesobligationsthatareenforceableorotherwiserecognizableatlaw.Forexample,someofthemostcommontypesofcontractualdocumentsatBCITare:

IndustryServiceAgreementsResearchGrantsDonationAgreementsFacilityRentalAgreementsFacilityAccessAgreementsPurchaseOrders,andtheirattacheddocuments(maintenanceagreements,etc.)MemorandaofUnderstanding(MOU’s)LettersofIntentAffiliationAgreementsArticulationAgreementsPropertyLeasesNon-disclosureAgreements(NDA’s)EducationalPartnershipsPropertyLeasesIntellectualPropertylicensingagreements

RevenueContract:acontractwherebyBCITwillreceivefundsforanyreason.ExamplesofRevenueContractsareIndustryServiceAgreements,ResearchGrants,FacilityAccessAgreements,FacilityRentalAgreements,PropertyLeases,andDonationAgreements.

ResearchContract:aRevenueContractarisingfromdealingswithanyofthefollowingagencies:

NationalResearchCouncil–IRAPWesternEconomicDiversification(WED)NationalScienceandEngineeringResearchCouncil(NSERC)MichaelSmithFoundationforHealthResearchICEFund(BC)BCKnowledgeDevelopmentFund(BCKDF)Anyotherfederalorprovincialgovernmentresearchfundingagency

ExpenditureContract:aBCITPurchaseOrder,withanyattachments,oranyotheragreementwherebyBCITcommitstopurchaseorrentorleaseanygoods,services,orrealproperty.

Proposal:anydocumentsubmittedtoanyexternalagencypresentingabusinessoffertowhichBCITispreparedtocommit,thatisintendedtoformthebasisofacontractorpartofacontract.

DutiesandResponsibilities

RoleofContractsManagerThispositionprovidesservicesandguidancetothecampuscommunityinrelationtotheidentification,qualification,andexecutionofexternalbusinessopportunities.Dutiesinclude:



ProcedureProcedure

DutiesandResponsibilities

(a)Guidingthenegotiation,assessment,creation,maintenance,andmanagementofcontractstoensurethattheyrepresenttheoptimaloutcomeforBCITintermsoffinancial,educational,andstrategicobjectives(b)ReviewofcontractsasspecifiedbyBCITpoliciestoensurethatnoinordinatelegal,financial,oroperationalrisksarepresented(c)Developmentandimplementationofacontractmanagementproceduretoensurethatappropriatestaffareawareofthefinancialandnon-financialbenefitsandobligationsincontractssothatBCITmayoptimizeitsperformanceandfinancialreturn.(d)Providingadministrativeservicesrequiredtoexpedite,manage,andreportonBCITcontractssothatinformationisreadilyavailablefordevelopingcost-effectiveandefficientstrategiesandprocedures.

LegalAdviceStaffwishingtoseeklegaladvicepertainingtocontractsrequiretheapprovaloftheinitiatingVicePresidentandtheVicePresident,FinanceandAdministration,priortocontactinganylegaladvisors.

ContractRepository

TheoriginalsofallexecutedcontractualdocumentsaretoberetainedbytheContractsManagerintheBCITContractRepository(vault),andelectronicallyinventoriedinboththeBCITRecordsManagementSystemandtheContractManagementDatabase.

DelegationofAuthority

Employeesauthorizedtosigncontractualcommitmentsmaydelegatetheirsigningauthority,intheirabsenceandforaspecifiedperiodoftime,toresponsiblenomineessubjecttothefollowingrestrictions:

• Thedelegatedauthoritymustbeformallydocumentedbye-mailorinwrittenform.• Theauthorizeddollarlimitsmustnotexceedthenormallimitssetoutfortheoriginalsigning

officers.

IntroductiontoContractDevelopment

TheseproceduresimplementtheContractDevelopmentProcessinorderto:• ProvideBCITapprovalauthoritieswithallinformationnecessarytoassesstheoverallvalueof

anycontractpriortocommittingBCITtoperformance• Achieveanorderlyreviewandapprovalofallcontractsduringtheirdevelopment

AllcontractsenteredintofororonbehalfofBCITmustcomplywiththeapprovedpoliciesoftheInstitute.Contractsmayconsistof,butarenotlimitedto,revenue,expenditure,ornon-monetarydocuments.BCITemployeesareresponsibletoensurethatallcontractsareprocessed,approved,andsignedinaccordancewiththeseprocedures.

LegalReview

TheContractsManagerwillreviewthetermsandconditionsofeveryproposalandcontractrecommendedforsignature.



ProcedureProcedureTheContractsManagermayrecommendamoredetailedreview:

a) wheretherearesignificantdeviationsfromBCITstandardconditions(templateswhereappropriate),or

b) wheretherearetermsproposedthatcouldposesignificantrisktoBCIT,orc) whenBCIThasneverparticipatedintheparticulartypeofarrangementbeingproposed.

Thiswillinitiallyinvolveadiscussionwiththecontractinitiator,whichmayleadtonegotiationswiththecustomerorsupplier.Dependingontheoutcomeofthenegotiations,theContractsManagermayconsultwithBCgovernmentgroupssuchastheRiskManagementBranchandtheIntellectualPropertyBranch,thefederalgovernment,provincialWorkSafe(WCB)organizations,andothers.Inaddition,itmaybeprudenttoconsultwithlegalcounsel.Thedegreetowhichlegalcounselbecomesinvolveddependsontheseverityandcomplexityofthepotentialrisksintheparticularsituation,andshallbedeterminedbytheContractsManager,whoshallcoordinateallassistancefromoutsidelegalcounseloncontractualmatters.

RiskAssessment

Theinitiatorisresponsibleforidentifyingandassessingtherisksassociatedwithenteringintoanyparticularcontract,andthismustbedocumentedinthePre-approvalPhase.TheContractBriefwilladdressmostissues,particularlythoseassociatedwiththesubjectmatterandactivitiestobedonebyBCIT.Itmayalsobenecessarytoperformmoredetailedfinancialduediligenceincertaincircumstances.Theneedforsuchanassessmentwouldoccurunderconditionssuchasthefollowing:

• Theproposedcontractisthefirstbusiness-dealingbetweenthecustomerandBCIT.• Therehasbeennobusinesswiththiscustomerinthepreviousthreeyears.• ThereisreasontobelievethecustomermayhavedifficultypayingtheBCITinvoicesas

required.• Asignificantamountofworkmustbedonepriortoinvoicingthecustomer.• ThecustomerhasanoutstandingbalanceowingtoBCIT.• Thecontractisforanamountover$100,000.

FinancialServiceswillassistinthisassessmentuponrequestfromtheschooldepartment.



ProcedureProcedure

ContractDevelopmentProcess

OrientationThefollowingchartillustratesthedevelopmentprocessforcontracts.Amoredetaileddescriptionofthestepsincontractdevelopmentfollowsthechart.Matrices(tables)areprovidedtoindicatetheappropriatesigningauthoritiesforthedifferentmonetaryvalues,throughoutthecontractdevelopmentprocess.Inaddition,examplesoftherequiredformsareshownattheendofthisprocedure,withinstructions.Theblankformsthemselvesareaccessedasseparatedocuments.

1. Pre-ApprovalPhaseInthisphase,thecontractinitiatorundertakesallactivitiesnecessarytoprepareandsubmitaproposaloroffertoacustomerthat,ifaccepted,couldresultinabindingcontractwithBCIT.Theseactivitiesmaybeinformalandarecarriedoutinamannerspecifictotheschool/department.



ProcedureProcedureTherevenueopportunitymaybeinresponsetoacustomerrequest,suchasaninformalrequest,letterrequest,formalRequestforProposals(RFP),orcallforgrantapplications.Thecontractinitiatorpreparestheformaldocuments(proposal,draftcontractterms,grantapplication,etc.)tobesubmittedtoacustomerorfundingagency.

Typicalactivitiesinthisphaseinclude:

• Conductinganeedsassessmentinthemarket• Identifyingpossiblecustomers• CheckingtheBCITContractsRepositorydatabaseforpreviouscontracts• Qualifyingpossiblecustomers• Establishinganypartnershipsneeded• Identifyingpossiblecompetition,etc.• Definingrequirements• WritingatechnicalsubmissionorStatementofWork• Refiningmarketinformation• Pricing/costing• Developinganimplementationplan• Detailingprojectbudgetsandfinances• Draftingprojectplansandschedules• Preparingstaffingrequirements(includingreleasetime,etc.)• Engagingincustomermeetings/demonstrations• Attendingconferencesandsitetours• Finalizingallrequirements• ObtainingapprovalfromResearchEthicsBoardand/orotherapprovalsperBCITresearch

policies• Doingafinancialanalysisoftheanticipatedaward• Writingacompletecommercialproposalwithpricing,scheduling,andcontractterms(draft

agreementtemplatesforselectedtypesofcontractsareavailableatwww.supply.bcit.ca/forms)

• Preparingaformalresponsetoaspecificformordocumentifrequired

(a)TheContractbriefThecontractinitiatorisresponsiblefordevelopingtheContractBrief,whichistherecordusedtosupporttherequest(s)forapproval.SuggestedformsfortheContractBriefaregivenatFigures2and3,buttheycanbetailoredtothespecificopportunities.

(b)Proposalformat

Whilethereisnospecificformatortemplateforproposalsingeneral,theycanbewritteninaformat,chosenbytheSchool/Department,thatiscompliantwiththeinstructions,ifany,fromthecustomer.TheContractsOfficecanofferassistanceinthewritingofproposals.

(c)Draft(sample)contract

Customersoftenrequirethatasuppliersubmitadraftcontractaspartoftherequestedproposal.Thiscanbeablankortemplateformthatcontainsonlygenerictermsandconditions,withnodeal-specificinformation.Evenwhennotspecificallyrequired,itisusuallygoodpracticetoincludeadraftcontractwithaproposal.Toprepareadraftcontract,theschool/departmentcaneitherconsulttheBCITFinancialServiceswebsite(www.bcit.ca/financialservices)toselectanappropriatetemplate,orcontacttheContractsManagerdirectlyforassistance.Note,perStep1approvallevels,thattheContractsManagermustreviewanyproposedcontracttermsbeforetheyarereleasedtoacustomer.



ProcedureProcedure2. ApprovaltoReleaseProposal

(Step1inillustration)AtStep1,therelevantauthoritiesgrantpermissiontoformallyreleaseaspecificbid,proposal,grantapplication,ordraftcontractinresponsetoacustomerrequest.

(a)TheContractInitiator

ThecontractinitiatorpresentstheContractApprovalForm(availableatwww.bcit.ca/financialservices)andtheContractBrief(attachedtoacopyoftheproposal/application)totherelevantauthorityintheschool/department,theContractsManager,andtheappropriateexecutiveauthority(asindicatedintheStepApprovalMatrixbelow),eitherinameetingorbycorrespondence.

(b)TheauthoritiesTheauthoritiessigntheContractApprovalform(Step1approvalsection),tosignifyStep1approval.

(c)TheInstitutedatabase

TheInstitutedatabaseisnowamendedtoincludetheContractBrief,theStep1Approval,andacopyoftheproposal.

3. NegotiationPhase

Thesecondphaseconsistsofnegotiationwithacustomerwhohasexpressedinterestintheproposedcontractbutwishestonegotiatesomechanges.Changesmayincludeworkscope,pricing,contractterms,orallthree.Theremaybeare-submissionofbidsatthispoint(abest-and-final-offerorsimilararrangement).Dependingonthecomplexityanddollarvalue,andthenatureoftherevisionstotheproposal,theStep1approvalauthoritymayrequestanotherStep1approvalpriortosubmissionoftherevisedbid.Thisphaseiscompletedwhenacompletecontracthasbeenconditionallyagreedtobetweentheparties,subjecttofinalreviewandformalapprovalbytheirrespectivesigningauthorities.

4. ApprovaltoSignContract

(Step2inillustration)ThisisthepointatwhichBCITformallyandlegallycommitstoperformacontract.(a)Thecontractinitiator

ThecontractinitiatorupdatestheContractBrieftoreflectanychangesarisingfromthenegotiations.

(b)ThecontractbriefAtthispoint,theContractBriefmustincludeadetailedpaymentschedule,inExcelformatasappropriate.

(c)Thecontractinitiator

ThecontractinitiatorpresentstheContractApprovalFormandtheContractBrief,attachedtoacopyofthecontract,totherelevantauthorityintheschool/department,theContractsManager,andtheappropriateexecutiveauthority(asindicatedintheStepApprovalMatrixbelow),eitherinameetingorbycorrespondence.

(d)TheauthoritiesTheauthoritiessigntheContractApprovalform,tosignifyStep2approval.



ProcedureProcedure(e)Thecontractinitiator

ThecontractinitiatorisresponsibleforobtainingandsendingafullyexecutedoriginalsignedcopyofthefinalcontracttotheContractsManagerforfilingintheContractsRepository.ItmustbeaccompaniedbytheassociatedContractApprovalFormandanyattachments,indicatingthatappropriatereviewshavebeendone,anddocumentingtheresolutionofanyconcernsorcautionsbroughtupbythesigningauthoritiesorothers.

(f)TheInstitutedatabase

TheInstitutedatabaseisnowamendedtoincludetheupdatedContractBrief,theStep2Approval,andthefinalcontract.

5. StepApprovalTableforRevenueContracts

Thistableindicatestherelevantsigningauthorityorauthoritiesrequiredtoapprovethestepandprogresstothenextphase.

EstimateUnknownValuesForcontractsthatarepricedonaunit-pricebasis,andforwhichthequantitiesareindefiniteorunknownatthetime,thereasonablyexpectedaggregatevalueoverthelifethecontractmustbeused,todeterminetheapprovalauthorityneeded.

Step1

Step2

DOLLARVALUE

Recommendationtoreleaseproposal

MandatoryReview

Authoritytosignproposal

Recommendcontractforsignature

MandatoryReview

Signcontractualdocument

Over$1,000,000

1.InitiatingDean/Director2.VPAdmin.CFO3.President

ContractsManager(Finance)

BoardofGovernors

1.InitiatingVP2.VPAdmin.&CFO


1.BoardofGovernors2.President

Upto$1,000,000

1.InitiatingDean/Director2.VicePresident3.VPAdmin.&CFO


PresidentorVPAdmin.&CFO

1.InitiatingDean/Director2.InitiatingVP


1.President2.VPAdmin.&CFO

Upto$500,000 1.InitiatingDean/Director2.VPAdmin.&CFO


VPAdmin.&CFO 1.InitiatingDean/Director


1.VPAdmin.&CFO2.InitiatingVP

Upto$50,000 1.InitiatingDean/Director


InitiatingDean/Director

1.InitiatingAssociateDean


InitiatingAssociateDean

Upto$5,000 n/a n/a n/a n/a Notrequired* InitiatingAssociateDean

*TheBoardofGovernorsmustapproveallcontractsover$1,000,000(withtheexceptionofPropertyLeases).UponwrittenapprovalbytheBoardofGovernors,thePresidentmaysignthecontractualdocument.

*Contractsunder$5,000donotrequirereviewbytheContractsManageriftheycontainBCITstandardtermsandconditionswithnomodificationsoradditions.



ProcedureProcedure

6. StepApprovalTableforResearchContractsThistableindicatestherelevantsigningauthorityorauthoritiesrequiredtoapprovethestepandprogresstothenextphase.

EstimateUnknownValuesForcontractsthatarepricedonaunit-pricebasis,andforwhichthequantitiesareindefiniteorunknownatthetime,thereasonablyexpectedaggregatevalueoverthelifethecontractmustbeused,todeterminetheapprovalauthorityneeded.

Step1

Step2

DOLLARVALUE


MandatoryReview Authoritytosignproposal


MandatoryReview Signcontractualdocument

Over$1,000,000

1.InitiatingDean/Director2.VPAdmin.&CFO3.President

VPResearchContractsManager(Finance)

BoardofGovernors

1.InitiatingVP2.VPAdmin.&CFO


1.BoardofGovernors2.President

Upto$1,000,000

1.InitiatingDean/Director2.VicePresident3.VPAdmin.&CFO


PresidentorVPResearch

1.InitiatingDean/Director2.InitiatingVP


1.President

2.VPAdmin.&CFO

Upto$500,000

1.InitiatingDean/Director2.VPAdmin.&CFO


VPResearch 1.InitiatingDean/Director


1.VPAdmin.&CFO

2.VPResearch

Upto$50,000

1.InitiatingDean/Director



1.InitiatingAssociateDean


InitiatingAssociateDean



ProcedureProcedure

7. StepApprovalTableforNon-monetaryContractsThischartindicatestherelevantsigningauthorityorauthorities,whichdependsonthestageoftheprocess(whichstep)andonthetypeofagreement.

TypeofAgreement

Step1 Step2


MandatoryReview*

Authoritytosignproposal


MandatoryReview1

SignContractualDocument

Non-DisclosureAgreements







AffiliationAgreements







MemorandaofUnderstanding(MOU’s)







LettersofIntent







ArticulationAgreements







EducationalPartnerships



VicePresidentEducation



VicePresidentEducation

orPresident

SignificantAgreements2

InitiatingDean/DirectorVPAdmin.&CFO


President InitiatingDean/DirectorVPAdmin.&CFO


President

8. StepApprovalTableforPropertyLeases

Thischartindicatestherelevantsigningauthorityorauthorities,whichdependsonthestageoftheprocess(whichstep)andonthetypeofagreement.

TypeofAgreement

Step1 Step2

OfferPreparation MandatoryReview* Recommendcontractforsignature

SignContractualDocument

PropertyLeaseAgreements(upto10,000sq.ft.)

CorporateServices ContractsManager(Finance&CorporateServices)

CorporateServices Director,CorporateServicesandVPAdmin.&CFO

PropertyLeaseAgreements(greaterthan10,000sq.ft.)

CorporateServices ContractsManager(Finance&CorporateServices)

CorporateServices DelegatedsignoffbytheBoardofGovernorstothePresidentandVPAdmin.&CFO



ProcedureProcedure

Non-MonetaryContracts–Notes1MandatoryReview

a) TheContractsManagermustreviewandapprovealldocumentsthatdeviatefromapprovedtemplates.b) TheContractsManager’sapprovalisnotrequiredfordocumentspreparedfromapprovedBCITtemplates

withnomodifications.2SignificantAgreements

TheseareagreementsthatmayposeextraordinaryrisksorhaveasubstantialimpactonBCIT.Examplesofsignificantagreementsarelistedbelow.ThislistreflectssomeareasofparticularconcernthatcallfordiligencebyeveryonewithinBCITinvolvedwiththetransaction.BeforeBCITentersintoanysignificantagreement,theremustbeappropriatedocumentedreviewandapprovaloftheproposedtransaction,includingreferencetoBCITexternallegalcounselwhereverapplicable.TheContractDevelopmentProcessachievesthis.Compliancewiththeseguidelinesrequiresprudentprofessionaljudgementinthecontextofriskmanagementobligations.Notethatthedollarvalueofacontractisnotnecessarilyanaccuratemeasureoftheriskassociatedwithit.

Examplesofsignificantagreementsinclude:a) Agreementswithrespecttotheacquisitionanddisposalofrealpropertyorothersubstantialassetsof

BCIT.b) Agreementsinregardtothelicensing,sale,orotherdispositionofBCITtechnologyorintellectual

property.c) Agencyagreementsforactivitiesinothercountries.SuchactivitiescanhaveanimpactnotonlyonBCIT

butalsoontheBCorCanadiangovernmentsduetolegislativerequirementsandpoliticalsensitivities.d) Agreementsthathavestatutory,regulatory,certification,orexportcontrolimplications.e) Agreementsorarrangementsthatcaninanywaybeinterpretedaslimitingcompetitionorrestraining

trade,accordingtocompetitionlegislation(AgreementonInternalTrade[AIT],NorthAmericanFreeTradeAgreement[NAFTA],ortheGeneralAgreementonTariffsandTrade[GATT]).

f) AgreementsthatbytheirnaturerequirereviewbyspecializedgroupssuchasTax,Finance,RiskManagement,Insurance,orIndustrialRelations.

g) AgreementswhereBCITisenteringintoajointventure,partnership,orsimilarlegalrelationshipwithanotherinstitutionorprivatecompany,particularlyiftheotherentityisoutsideCanada.

h) AgreementsenteredintobyBCITwhere,asamarketingstrategy,thereisreferencetoasignificantBCITpartnerortheBCgovernment,therebypossiblyexposingeitherorbothtoliability.

9. ApprovalTableforExpenditureContractsExpenditurecontractsmustbereviewedandapprovedaccordingtoPurchasingproceduresandsignedaccordingtoPolicy2501,Contracts.

ExpenditureContractsmustbeauthorizedasfollows:

DollarAmount MandatoryReview** RequiredSignature

Over$1,000,000 ContractsManager(Finance) BoardofGovernors*

Upto$1,000,000 ContractsManager(Finance) President

Upto$500,000 ContractsManager(Finance) VPAdmin.&CFO

Upto$250,000 ContractsManager(Finance) DirectorSupplyMgmtorAssistantDirectorSupplyMgmt



ProcedureProcedureUpto$75,000 ContractsManager(Finance) SeniorBuyer

Upto$50,000 ContractsManager(Finance) Buyer

PurchaseOrdersmustonlybeissuedafteraPurchaseRequisition(PR)hasbeenpreparedandapprovedpursuanttorelevantPurchasingpoliciesandprocedures.

*TheBoardofGovernorsmustapproveallcontractsover$1,000,000.UponwrittenapprovalbytheBoardofGovernors,thePresidentmaysignthecontractualdocument.

**ExpenditureContractsdonotrequirereviewbytheContractsManageriftheycontainonlyBCITstandardtermsandconditionswithnomodificationsoradditions.



ProcedureProcedure

InstructionsforContractApprovalFormUseforRevenueandNon-monetarycontracts

BCITContractNo.____________

REQUESTED APPROVAL PROJECT DESCRIPTION {Draw a heavy border around the correct step number, corresponding to the approval being requested}

{Provide a brief summary of the anticipated project, scope of services, products, curriculum etc.}

Step 1 Approval to Release Proposal Step 2 Approval to Sign Contract

FINANCIAL SUMMARY Accounting Codes {Provide fund, organization, and account codes for this contract} Contract Price {Provide an estimate of the total revenue or expense at the time of the

requested approval} Costs: - BCIT Labour {Fully burdened labour including salary, benefits, overhead} - Outside Labour {Any purchased services, including taxes} - Purchased Equipment {Any purchased/leased equipment costs, software, computers, etc.

including taxes} - Other Costs {All other costs including travel, disbursements, purchased curriculum,

etc. itemized as much as possible} Surplus/Deficit {Total revenue less total costs (deficits in brackets)} Payment Schedule (attach spreadsheet if necessary)

{Specify the month, year, and amount of each expected payment. Use a separate spreadsheet if there are more than 4 payments.

APPROVALS

APPROVAL AUTHORITY TITLE SIGNATURE DATE

Initiating School/Department Approval

Dean {See Sections 3,4 and 5 for approval levels}

Contracts Review Contracts manager {See Sections 3,4 and 5 for review requirements}

BCIT Approval VP Finance & Admin. {See Sections 3,4 and 5 for approval levels}

Figure1:InstructionsforContractApprovalForm



ProcedureProcedure

CONTRACT BRIEF - REVENUE

Whoisthecustomer?Wherearetheylocated?Isthecustomerfinanciallysound?

Givethenameofthecustomer,itsaddress,corporatestatusandevidencethattheentityisfinanciallysound

Whatisthescopeofwork?Products?Systems?Courseware?

Describewhatistobedone,inenoughdetailtoconveyanunderstandingtoarelativelyuninformedreader.

Howlikelyistheprojecttogoahead?

Describewhyyouthinkthisprojectwillactuallyhappen.Showevidenceofthecommitmentdemonstratedbythecustomer.

WillBCIThaveanypartnersinthisproject?Identifyanysignificantbusinessrelationshipsanddocumentation(MOU’setc)

Whoisthecompetition?Howlikelywillwewin?Competitiveanalysis.

IsBCITcompetingwithotherstowinthisproject,andhowlikelyisitthatwewillactuallybeawardedthework.

Whenwillthecontractbeawarded? Presenttheprojectschedule.

Doesthisopportunityfitourproductline,businessstrategy,goals?

DescribehowthisprojectisconsistentwiththeBCITmission,goalsandstrategy.

Isitinourplanofidentifiedopportunities,oranunplannedopportunity?

Describehowweheardofthisopportunity,andhowBCIThasplannedforitsimplementation.

DoesthisinvolveanadditiontoorchangeinBCIT’sofferedprograms?Ifso,doesitrequireanyinternalorexternalaccreditationprocess?

Describetheacademiccontentofthework,ifany,andanyapprovalsrequired.

Whatistheanticipatedvalueoftheaward?(Reasonablyexpectedaggregatevalueoverlifeofcontract)

Describethedollarvalueandthetimeframeoverwhichthemoneywillbeearned.

Willtherevenueexceedcosts?Arethereotherfundingsourcesforthisproject(i.e.costsharingagreements)?

Showwhattheanticipatedsurplusisexpectedtobe,andifitiszeroornegativeexplainwhyBCITisdoingtheworkandhowanyshortfallisfunded.

Whatwillitcosttowinthisjob?Whatinvestmentisneeded?

Giveabreakdownoftheexpectedcoststopursueandwinthiscontract,andwhetherBCITisrequiredtoinvestinordertoreceivemoney(costsharing,etc.)

Whatstrategywillweemploytowinthecontract? DescribewhywethinkBCITwillwin,ifthisiscompetitive.

Whataretheunusualorriskyaspectsofthisagreement?

DescribeanyotheruniqueorsignificantaspectsoftheagreementthatBCITseniormanagementshouldknowabout.

Figure2:ContractBrief–Revenue



ProcedureProcedure

CONTRACT BRIEF – NONMONETARY

Withwhomareweenteringintothisagreement?

Givethenameofthelegalentity,whereitislocated,anditscorporatestatus(company,society,school,etc.)

Whatisthescopeofagreement?Whatareweagreeingon?

Describewhatistobedone,inenoughdetailtoconveyanunderstandingtoarelativelyuninformedreader.

Willthisagreementleadtofuturefinancialagreements,suchasaformaljointventure?

Describethefullsequenceofanticipatedagreements.

WillthisinvolvedisposaloracquisitionofBCITassets?

Thisincludesmajorequipmentandrealestateleasesorpurchases.

Howlikelyistheprojecttogoahead?

Describewhyyouthinkthisprojectwillactuallyhappen.Showevidenceofthecommitmentdemonstratedbythecustomer.

Whoisthecompetition?IsAnybodyelsedoingthis?Competitiveanalysis

IsBCITcompetingwithothersforthisdeal,andhowlikelyisitthatwewillactuallysignthisagreement.

HowDoesthisopportunityfittheBCITpolytechnicmandate,businessstrategy,goals?

DescribehowthisprojectisconsistentwiththeBCITmission,goalsandstrategy.

Howdoesitfitourplanofidentifiedopportunities,orisitanunplannedopportunity?

Describehowweheardofthisopportunity,andhowBCIThasplannedforitsimplementation.

DoesthisinvolveanadditiontoorchangeinBCIT’sofferedprograms?Ifso,whatisit?Havetheappropriategroups(EducationCouncil,etc.)beennotified?

Describetheacademiccontentoftheworkifany.

Whatarethetax,finance,RiskManagement,insuranceorlabourrelationsimplications?

Describehowthisagreementorarrangementwillimpacttheseriskareas.

Doesthisinvolveanylegislationissues?

Describeanyrelevantstatutesforwhichcompliancewillregulatethework.

Doesthisinvolveanyinternationalsensitivity? BCITInternationalmustbemadeawareoftherisks.

Whatwillitcosttoimplementthisagreement?Whatinvestmentisneeded?

Giveabreakdownoftheexpectedcoststopursueandexecutethisagreement,andwhetherBCITisrequiredtoinvestinordertoreceivemoney(costsharing,etc.)

Whataretheunusualorriskyaspectsofthisagreement?

DescribeanyotheruniqueorsignificantaspectsoftheagreementthatBCITseniormanagementshouldknowabout.

Figure3:ContractBrief–Non-monetary



ProcedureProcedureFormsAssociatedWithThisProcedure

ContractApprovalForm

AmendmentHistory

1. Created 2009Nov09TheContractsprocedureswerepreviouslyincorporatedintoearlierversionsofPolicy2501,Contracts.

2. Revision1 2016Apr28

Download - Procedure - BCIT · PDF fileProcedure 2. Approval to Release Proposal (Step 1 in illustration) At Step 1, the relevant authorities grant permission to formally release a specific bid

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