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Part 1: Principles:
The following principles will guide the procurement practices of the Town.
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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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Tendering & Competitive Bid Law requires that public procurement is subject to the Trade
Treaties.
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Accountability of the Town for the procurement of goods, services, and construction.
Part 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 Town.
Part 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, 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.).
Town Of Niverville-Administration
Policy No. A1-12:
Town Tendering and Procurement Policy
Effective Date:
December 4, 2012
Resolution# 378-12
Revision Date:
September 20, 2022
Resolution# 250-22
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Part 4: Scope:
The policy applies to the procurement of goods and services by purchase, lease, rental or other
agreement by the Town.
Part 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:
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Category 1: Up to $10,000 - For the acquisition of goods and services with a value of less than
$10,001, following due product research, the department managers are authorized to approve
purchases without first obtaining comparative quotes. Expediency in obtaining daily or
frequently used goods such as office and shop supplies is to be considered in purchasing.
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Funds are to be clearly identified in the Town's financial plan.
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Purchase orders may be required.
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Purchases are to be approved by senior management.
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Purchases by credit card are subject to these limits, individual card limits, and are also
subject to Policy F3-17 Town Credit Card Use Policy.
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Category 2: More than $10,000 and less than $25,000.00 - For the acquisition of goods and
services with a value of up to $25,000.00 for such services included and approved within the
annual Town's financial plan and for which at least 2 quotations will be requested, may be
approved by the CAO. These quotations shall be submitted in writing. In cases of minor
purchases or standardized supplies where comparative advertised prices are advertised, a copy
of an email or advertisements may serve as a written quotation.
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Category 3: More than $25,000.00 and less than $75,000.00 - For the acquisition of goods and
services with a value of more than $25,000.00 and less than $75,000.00, at least 3 written
quotations will be requested. Responses to all requests are not required, but proof of
submission of 3 requests for quotation (RFQ) vendors is 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. Purchases from suppliers of
items in highly competitive markets where the same price could be obtained from any supplier,
such as automobiles, may be purchased without quotations but must be documented and pre-
approved by the CAO. Expenditures which have been clearly identified and approved in the
annual Town's financial plan may be authorized by the CAO.
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Category 4: More than $75,000.00 (NWPTA Article 14(c)) - For the acquisition of goods and
services of more than $75,000.00, the Town will provide a bid opportunity, using a procurement
method identified in Part 6 of this policy. Funds are to be clearly identified in the Town's
financial plan. Council approval is required for capital construction projects where the
procurement could result in a disruption or significant change to existing services, in cases
where the low bid is not accepted, and professional contracts.
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Part 6: Methods And Processes Of Procurement:
The Town will use the following methods of procurement:
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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 Town and reasonable efforts have been made to obtain competing quotes.
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When the product or service is under warranty.
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Under exceptionally advantageous circumstances such as unforeseeable urgency and/or
specific construction materials.
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Where continuous service and maintaining relationships is required for capital asset
maintenance and for daily utilized goods and services, it is reasonably deemed to be a
financial disadvantage to change suppliers on a regular basis.
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During a disaster or emergency declared by a council or head of council under the
Emergency Measures Act where due to immediate need and time constraints normal
procurement methods cannot be followed.
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Requests for Quotation (RFQ) - the Town 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.
and it is determined that sufficient competition exists within this group.
Where possible, written quotations will be obtained from at least 2 suppliers. Verbal
quotations will be accepted for routine minor purchases.
o 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).
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Requests for Proposals (RFP) - an RFP will be used to initially engage the professional services
such as auditors, planning consultants, engineering consultants etc. and upon the professional
services being engaged may continue to until Council directs otherwise or the services are no
longer required (regardless of the amount of the anticipated procurement).
Potential suppliers will be asked to describe how their services, methods, equipment or
products can address and / or meet the needs of the Town.
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.
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Formal Tenders - the Town will formally tender for competitive bids for the procurement of
capital projects.
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Detailed specifications and requirements will be provided in tender documents. The
evaluation of tenders will be against detailed specifications and requirements.
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A Formal Tender is a formal, competitive sealed bidding process.
Part 7: Advertising Bid Opportunities:
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All bid opportunities solicited through a Request for Quotations, Request for Proposals, or a
Formal Tender will be posted on the Town's website and may be advertised at least once in the
Town's newsletter unless Council deems it to be in the best interest of the Town to have an
invitational tender only.
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Bid opportunities for Goods or Services of $75,000 or more and construction contracts of
$200,000 or more will also be posted on MERX and/or another system which is readily
accessible across Canada, in accordance with the new Canadian Free Trade Agreement
(CFTA)Article 504 3.(b) (replaces the former Agreement on Internal Trade MASH Annex 502.4)
and the New West Partnership Trade Agreement (NWPTA) Article 14(c).
Part 8: Award Of Contracts:
Quotations, proposals and tenders will be awarded using an evaluation process that is specified in the
procurement documents. Generally, the Town 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 highest scoring bidder whose proposal has met established evaluation criteria, in the case
of proposals submitted to the municipality in response to a Request for Proposal or Tender.
Total cost, qualifications, experience, services offered, past performance, scheduling
requirements, COR Certification, performance bonds, and warranty coverage are examples of
procurement scoring criteria that may be used. (Past performance evaluations are to be well
documented with relevant reliable information).
The Town retains the right to reject all bids if Council decides not to proceed with the purchase, if all
bids are too high, or if none meet the needs of the Town. All non-compliant bids will be rejected.
The Town may enter into a contract with the successful bidder. The form of the contract will be
dependant on the project specifications and determined by the Town.
Part 9: Procurement Administration And Accountability
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All requests for Quotes and or proposals, submissions, submission evaluations and
correspondence will be saved electronically in the Operations, RFP & Tenders folder of the Town
server.
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Completed Contracts/Agreements shall be saved electronically in the Planning and
Developments, Agreements and contracts folder.
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Upon receipt of invoices the Finance Officer will review and compare to RFQ/RFP to ensure
accuracy before approving payment.
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At the commencement of the project, the CAO and the supplier will review the Scope of Work to
establish requirements, responsibilities, schedules, contract terms etc. to ensure complete and
full understanding of the terms.
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Multi-invoice, multi-supplier projects will be assigned a project code, are to be recorded/tracked
with an Excel Project worksheet and entered to the accounting software with the
project/Trakker code.
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The CAO will provide Council with a monthly progress report for each capital construction
project that is underway.
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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.
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Procurement data will be tracked for bi-annual Manitoba MASH Sector Reporting requirements.
Part 10: Policy Amendments
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Minor changes/updates to policy wording for clarification purposes and inflationary increases to
Financial Limits may be made by the CAO when deemed necessary.
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A listing of changes along with the reasons for the changes shall be documented and saved with
the policy.