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Policy: Tendering & Procurement
Section: Administration
Policy #2013-02
Resolution #64-13
Effective Date: March 26, 2013
1. PRINCIPLES
The following principles will guide the procurement practices of the Municipality and the
process for the sale of municipal capital assets.
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An open, fair and consistent process for the procurement of all goods, services and
construction projects that will ensure the best value for dollar spent.
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Procurement processes that encourage competitive bidding for the supply of all goods
and services.
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An open, fair and consistent process for the sale of surplus capital assets that will ensure
the best value for capital assets sold.
-
Accountability of the Municipality for the procurement of goods and services and the
disposal of surplus capital assets.
2. PREAMBLE
The purpose of this policy is to establish guidelines for the purchase of goods and services and
for construction projects undertaken by the Municipality and guidelines for the sale of
municipal capital assets.
3. DEFINITIONS
Bid means a competitive bid received from a supplier in response to a verbal or written
Request for Quotation, a Request for Proposal or an Invitation to Tender.
Bid Opportunity means a publicly advertised invitation for suppliers to submit bids for the
provision of goods or services through a Request for Quotation, a Request for Proposal or an
Invitation to Tender.
Goods mean all types of personal property (machinery, gravel, office supplies, computer
hardware, land, etc.).
Services mean all types of services, including construction (consulting, engineering and design,
accounting and auditing services, legal services, maintenance, operation and repair of buildings,
machines or equipment, etc).
4. SCOPE
The policy applies to the procurement of goods and services by purchase, lease, rental or other
agreement by the Municipality and the disposal of surplus capital assets by the Municipality.
5. PROCUREMENT GUIDELINES
The value of the goods and services is the total financial commitment resulting from the
procurement, including any premiums, fees, commissions, interest, duty, freight and applicable
taxes.
The following guidelines will be followed for the purchase of goods and services:
Up to $7,500 - For the acquisition of goods and services with a value of up to $7,500 at
least 2 quotations will be required. These quotations shall be written except in cases of
insufficient time, minor purchases or standardized supplies where a verbal quotation
will be considered acceptable. Funds are to be clearly identified in the municipality's
financial plan.
More than $7,500 and less than $40,000- For the acquisition of goods and services with
a value of more than $7,500 and less than $40,000, at least 2 written quotations will be
required. These quotations shall be written except during a state of local emergency
where due to immediate need and time constraints normal procurement methods
cannot be followed.
More than $40,000 - For the acquisition of goods and services of more than $40,000,
the municipality will provide a bid opportunity, using a procurement method identified
in Section 6 of this policy.
Bid opportunities will be posted on the municipality's website and advertised in the Grandview
Exponent or Parkland Shopper or Dauphin Herald.
The bid opportunity will also be posted on MERX and/or another system which is low cost, easy
to use and readily accessible across Canada, in accordance with the Agreement on Internal
Trade MASH Annex 502.4.
The municipality is not required to accept a bid if Council decides not to proceed with the
purchase, if all bids are too high, or if none meet the needs of the municipality. The municipality
retains the right to reject the lowest or any bid.
6. METHODS AND PROCESSES OF PROCUREMENT
The Municipality will use the following methods of procurement:
Sole Source Purchases - Sole source purchases will be used in the following circumstances:
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when there is only one available supplier of a required product or service that meets the
needs of the Municipality.
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during a state of local emergency where due to immediate need and time constraints
normal procurement methods cannot be followed.
Requests for Quotation - the Municipality may obtain quotations for provision of goods and
services for which there are specific requirements in the following manner:
- by directly contacting known suppliers.
This method will be used for the procurement of minor goods and services such as
standard office supplies, repairs, small tools, etc.
Where possible, written quotations will be obtained from 3 suppliers.
Verbal quotations must be documented and will be accepted for routine minor
purchases.
The municipality will contact only local suppliers if it is determined that sufficient
competition exists.
- through a written Request for Quotations (RFQ)
an RFQ for the procurement of goods and services will be used where the goods and
services have specific and detailed requirements, but are not considered to be "minor"
and the cost of the good or service does not warrant the time and level of effort
required for a formal tender process.
Suppliers will be invited to provide quotations for the sale of goods or services
through a public advertisement (bid opportunities).
The award of a Request for Quotation will typically go to the lowest total cost bid
received from a supplier.
Requests for Proposals (RFP)
An RFP will be used to acquire professional services such as auditors, planning consultants,
engineering consultants etc. regardless of the amount of the anticipated procurement.
Potential suppliers will be asked to describe how their services, methods, equipment of
products can address and / or meet the needs of the municipality. An award of a contract will
be given to the supplier whose proposal is determined to be the most advantageous to the
municipality based on criteria for evaluation set out in the RFP and applied to all proposals.
Formal Tenders - the Municipality will formally tender for competitive bids for the
procurement of capital projects.
Detailed specifications and requirements will be provided in tender documents. The evaluation
of tenders will be against detailed specifications and requirements.
A Formal Tender is a formal, competitive sealed bidding process. Typically, the award of a
tender goes to the lowest total cost bid received from a supplier meeting the specifications and
requirements of the tender.
7. ADVERTISING BID OPPORTUNITIES
All bid opportunities solicited through a Request for Quotations, Request for Proposals, or a
Formal Tender will be posted on the municipal website and advertised at least once in the
Grandview Exponent or Parkland Shopper or Dauphin Herald.
All bid opportunities for the procurement of goods and services valued equal to or greater than
$100,000 and construction projects valued equal to or greater than $250,000 will be advertised
on Manitoba's electronic tendering system (MERX) (http://www.merx.com/) and/or another
system which is low cost, easy to use and readily accessible across Canada.
8. AWARD OF CONTRACTS
Quotations, proposals and tenders will be awarded using the evaluation process that is
specified in the procurement documents. Generally, the Municipality will award contracts as
follows:
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to the lowest total cost bid, in the case of quotations received from a supplier for a good
or service
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to the bidder whose proposal has met established evaluation criteria, in the case of
proposals submitted to the municipality in response to a Request for Proposal
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to the lowest total cost bid received from a supplier meeting the specifications and
requirements of the tender.
The Municipality is not required to accept any bid if the Municipality decides not to proceed
with the purchase.
When all factors are equal, in terms of price, quality, suitability, service and delivery, the
municipality may give preference to a "local" supplier.
The Municipality may enter into a contract with the successful bidder. The form of the contract
will be determined by the Municipality.
9. DELEGATION OF APPROVALS
Authority to approve procurements of a good or service is as follows:
Up to $22,500 - Chief Administrative Officer, as long as the low bid is accepted or the
expenditure is identified in the municipality's financial plan
Over $22,500 - Council
All contracts for professional services - Council
10. PROCUREMENT ACCOUNTING AND MANAGEMENT
Procurement Tracking System
The Chief Administrative Officer (CAO) will prepare accounts payable listings that include the
supplier name, the good(s) and/or service(s) provided and the amount payable to each
supplier.
The accounts payable listing(s), supported by invoices that have been signed by the appropriate
department head(s), are to be submitted to Council at the first regular meeting of Council each
month for payment approval by resolution of Council.
The CAO will issue payment for all accounts payable authorized for payment by resolution of
Council and to maintain adequate record of accounts payable listings, the corresponding
invoices and cheque registry information.
Procurement Reporting System
The CAO will provide Council with a monthly report on contracts awarded under this policy.
The CAO will provide Council with a monthly progress report for each capital construction
project that is underway. A progress report will be provided each month, beginning with the
starting month of the project until the completion of the project when all invoices relating to
the project have been paid.
11. PROCESS FOR SELLING SURPLUS CAPITAL ASSETS:
Surplus capital assets will be disposed of in the following manner:
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competitive bid process through a Request for Quotations
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public auction
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trade
Invitations to bid on capital assets offered for sale by the municipality will be:
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posted on the municipality's website for at least 7 calendar days before the closing date
of the invitation to bid.
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published in at least one edition of the Grandview Exponent or Parkland Shopper or
Dauphin Herald.
Contracts for the sale of a capital asset to a bidder shall be awarded using the evaluation
process that is specified in the invitation to bid. The municipality is not required to accept a bid
if Council decide not to proceed with the sale, for example, if all bids are too low. The highest or
any bid will not necessarily be accepted.
The CAO may, with the approval of council, award surplus capital assets without competition or
auction to any municipality in limited circumstances, as determined and approved by Council.
This policy is authorized by Resolution # 64-13, dated March 26, 2013.
BACKGROUND
The Municipality may complete municipal works by way of contracting an individual or
company to complete said work.
APPLICATION
1) Any individual, company and/or contractor hired by the Municipality will provide, at
their own expense, the necessary Workers' Compensation Board compensation
coverage for itself, or any employees engaged in the execution of the said works
and provide the Gilbert Plains Municipality with proof of such compliance.
(Documentation may be faxed, emailed or dropped off directly to the municipal office and
must be provided before any work is begun.)
2) Any individual, company and/or contractor hired by the Municipality will obtain, at
their own expense, Commercial General Liability Insurance covering claims for
injury, death or damage to property in an amount of not less than 2 million dollars
($2,000,000.00) per occurrence;
And any individual, company and/or contractor hired by the Municipality must
maintain coverage throughout the term of the work project and must provide
evidence of coverage to the Gilbert Plains Municipality;
Such insurance shall name the Gilbert Plains Municipality, its employees and agents
as additional insured with respect to the works provided under the contract.
(Documentation may be faxed, emailed or dropped off directly to the municipal office and
must be provided before any work is begun.)