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THE LOCAL GOVERNMENT OF PINAWA
POLICIES AND PROCEDURES MANUAL
Policy Name
Municipal Tendering and Procurement
Department
Administration
Approved
December 11, 2012
Resolution
3130-12-12
Revised
September 10, 2013
Resolution
3436-09-13
Revised
June 9, 2015
Resolution
4154-06-15
Revised
July 12, 2016
Resolution
4583-07-16
Revised
June 13, 2017
Resolution
4917-06-17
Revised
March 14, 2023
Resolution
7025-03-23
Review
Related Bylaw
PRINCIPLES
The following principles will guide the procurement practices of the Municipality and the process for the
sale of municipal assets:
An open, fair and consistent process for the procurement for all goods, services and construction
projects that will ensure the best value for dollars spent.
Procurement processes that encourage competitive bidding for the supply of all goods and services.
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.
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.
DEFINITION
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.).
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SCOPE
The policy applies to 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.
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 $5000 - Discretionary spending is permitted up to $5000. Funds are to be clearly identified in
the municipality's financial plan.
More than $5000 and less than $10,000 - For the acquisition of goods and services with a value of
more than $5000 and less than $10,000, at least three (3) 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 $10,000 - For the acquisition of goods and services of more than $10,000, 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 local newspaper, if
over $10,000. 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.
METHODS AND PROCESSES OF PROCUREMENT
The Municipality will use the following methods of procurement:
Sole Source Purchases - will be used in the following circumstances:
when there is only one available supplier of a required product or service that meets the needs of
the Municipality.
during a state of local emergency where due to immediate need and time constraints normal
procurement methods cannot be followed.
Request 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 three (3) suppliers. Verbal quotations 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 Quotation (RFQ). An RFQ for the procurement of goods or services will
be used where the goods or services have specific and detailed requirements, but are not considered
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to be "minor" and the cost of the goods or services 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.
Request 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 or 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.
ADVERTISING BID OPPORTUNITIES
All bid opportunities solicited through a Request for Quotation, Request for Proposal, or a Formal Tender
will be posted on the municipal website and advertised at least once in the local newspaper.
All bid opportunities for the procurement of goods or 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.
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:
To the lowest total cost bid, in the case of quotations received from a supplier for goods or
services
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
To the lowest total cost bid received from a supplier meeting the specifications and requirements
of the tender
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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.
The municipality will withhold 10% of any contracts over $10,000.00. A penalty clause may be included
on any contracts. The LGD employee or designate shall be designated the Project Manager by Council.
The Project Manager has the discretion to approve project change orders up to 10% of the contract, to a
maximum of $10,000.00.
DELEGATION OF APPROVALS
Authority to approve procurements of goods or services is as follows:
Less than $5000 - designated officer, as long as the expenditure is identified in the municipality's
financial plan.
Up to $10,000 - Resident Administrator, as long as the low bid is accepted and the expenditure is
identified in the municipality's financial plan.
Over $10,000 or where the low bid is not accepted - Council
All contracts for professional services - Council
PROCUREMENT ACCOUNTING AND MANAGEMENT
1. Procurement Tracking System
The accountant will prepare accounts payable listings that include the supplier's name, the goods
and/or services 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 authorized by the Resident Administrator or the Assistant Resident
Administrator, approved by the Finance Chair and presented to Council for review.
The accountant will issue payment for all accounts payable authorized for payment. The accountant
will maintain adequate record of accounts payable listings, the corresponding invoices and cheque
registry information.
2. Procurement Reporting System
The Resident Administrator will provide Council with a monthly progress report on contracts awarded
under this policy.
The Resident Administrator 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.
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Spending Amounts
Delegation of Approvals
Up to $5000 - Discretionary spending is permitted
up to $5000. Funds are to be clearly identified in
the municipality's financial plan.
Designated officer, as long as the expenditure is
identified in the municipality's financial plan.
More than $5000 and less than $10,000 - For the
acquisition of goods and services with a value of
more than $5000 and less than $10,000, at least
three (3) 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.
Up to $10,000 - Resident Administrator, as long as
the low bid is accepted and the expenditure is
identified in the municipality's financial plan.
More than $10,000 - For the acquisition of goods
and services of more than $10,000, 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 local
newspaper, if over $10,000. The bid opportunity
will also be posted on MERX.
Over $10,000 or where the low bid is not accepted
- Council
All contracts for professional services - Council
Methods of Procurement
Processes of Procurement
Sole Source Purchases
will be used in the following circumstances:
when there is only one available supplier of a
required product or service that meets the
needs of the Municipality.
during a state of local emergency where due to
immediate need and time constraints normal
procurement methods cannot be followed.
Request 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 three (3) suppliers. Verbal
quotations will be accepted for routine minor
purchases.
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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.
Through a written Request for Quotation (RFQ)
An RFQ for the procurement of goods or services
will be used where the goods or services have
specific and detailed requirements, but are not
considered to be "minor" and the cost of the goods
or services 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.
Request 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 or 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.
ADVERTISING BID OPPORTUNITIES
All bid opportunities solicited through a Request for Quotation, Request for Proposal, or a Formal
Tender will be posted on the municipal website and advertised at least once in the local newspaper.