Municipal Tendering & Procurement Policy FIN-E-2025-01 — full text

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Municipal Tendering & Procurement Policy Page 1 of 9 RURAL MUNICIPALITY OF WEST ST. PAUL Council Policy Municipal Tendering & Procurement Policy Policy No.: FIN-E-2025-01 Effective Date: Immediate Replaces Policy: ADM 2025-06 Resolution No.: 2025-402 Review Date: As required Resolution Date: September 25, 2025 1. PRINCIPLES 1.1 The following principles will guide the procurement practices of the Municipality and the process for the sale of municipal capital assets. - 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. - Procurement processes that encourage competitive bidding for the supply of 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. - Tendering and Procurement rules established in the new Canadian Free Trade Agreement and New West Partnership Trade Agreement (NWPTA). - To adhere to the highest standards of ethical conduct and avoid any real or perceived conflicts between the interests of the Municipality and those of the Municipality's employees, elected officials and committee members. 2. PREAMBLE 2.1 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. Tendering and Procurement Policy Page 2 of 9 3. DEFINITIONS Bid means a competitive offer to provide goods, services or construction made by a supplier in response to a verbal or written Request for Quotation, a Request for Proposal or an Invitation to Tender. Bid means a publicly advertised invitation for suppliers to submit Opportunity bids for the provision of goods or services through a Request for Quotation, a Request for Proposal or an Invitation to Tender. Co-operative means a variety of arrangements whereby two or more public Group procurement entities combine either requirement in a single Purchasing procurement process to obtain advantages of volume purchases from the same supplier(s) or contractor(s). Council means the duly elected Council of the Rural Municipality of West St. Paul. Goods means all types of personal property (machinery, gravel, office supplies, computer hardware, land, etc.). Municipality means the Rural Municipality of West St. Paul. Person means a natural person or an enterprise. Procurement means the acquisition by any means, including by purchase, rental, lease or conditional sale, of goods, services or construction. Services means 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.). Supplier means a person or group of persons that provides or could provide goods or services. Value means the total financial commitment resulting from the procurement of goods and services, including any premiums, fees, commissions, interest, duty, freight and applicable taxes. Tendering and Procurement Policy Page 3 of 9 4. SCOPE 4.1 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. 4.2 The Municipality endorses the principle of Co-Operative Group Purchasing with other municipalities, school divisions or other quasi-government agencies. The Municipality may join these agencies or participate in the Association of Manitoba Municipalities purchasing program in respect of purchases where it is in the best interests of the Municipality to do so. 5. PROCUREMENT GUIDELINES 5.1 The purchase of goods, services or construction will follow the guidelines listed in Table 1, except during a disaster or emergency declared by Council, or a disaster or emergency declared by Council or Head of Council under The Emergency Measures Act. Table 1: Procurement Guidelines Value Guidelines Goods and/or Services Up to $5,000 - Purchased without estimates or quotes. - Funds are to be clearly identified in the Municipality's Financial Plan. More than $5,000 and less than $10,000 - Requires a price comparison. - Funds are to be clearly identified in the Municipality's Financial Plan. More than $10,000 and less than $75,000 - At least three (3) written quotations will be required. Funds are to be clearly identified in the Municipality's Financial Plan More than $75,000 - The Municipality will provide a bid opportunity. Construction Up to $5,000 - Purchased without estimates or quotes. - Funds are to be clearly identified in the Municipality's Financial Plan. More than $5,000 and less than $10,000 - Requires a price comparison. - Funds are to be clearly identified in the Municipality's Financial Plan. More than $10,000 and less than $200,000 - At least three (3) written quotations will be required. Funds are to be clearly identified in the Municipality's Financial Plan. More than $200,000 - The Municipality will provide a bid opportunity. Tendering and Procurement Policy Page 4 of 9 5.2 Submissions to bid opportunities accepted from suppliers in sealed envelopes will not be opened until the closing date. Residents will be notified of closing date and time of bid opening by email blast and on the municipal website. At such time, all bids will be opened in public view, either in Council Chambers or other designated area accessible to the public. 5.3 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 if it does not meet the needs of the Municipality. 5.4 The Municipality does not permit preferential treatment of local suppliers. 6. METHODS AND PROCESSES OF PROCUREMENT 6.1 The Municipality will use the following procurement processes: - Requests for Quotation - the Municipality may obtain quotations for provision of goods and/or services for which there are specific requirements in the following manner: - By directly contacting known suppliers - This process 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. - Through a written Request for Quotations (RFQ) - an RFQ for the procurement of goods and/or services will be used where the goods and/or services have specific and detailed requirements but are not considered to be "minor" and the cost of the goods and/or service does not warrant the time and level of effort required for a formal tender process. A public advertisement (bid opportunity) invites suppliers to provide quotations for the sale of goods or services. The award of an RFQ will typically go to the lowest total cost bid received from a supplier, however, the Municipality reserves the right to not make an award to the lowest bid. Tendering and Procurement Policy Page 5 of 9 - Requests for Proposals (RFP) - Subject to paragraph 8 below, 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, and 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. - Request for Expressions of Interest - The CAO may conduct a request for expressions of interest for the purposes of determining the availability of suppliers of any goods, services or construction and for the purposes of keeping a list of available suppliers. - Formal Tenders - the Municipality will formally tender for competitive bids for the procurement of construction projects valued equal to or greater than $200,000 and 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; however, the Municipality reserves the right to not make an award to the lowest bid. - Sole Source Purchases - 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; and - during a disaster or emergency declared by Council, or a disaster or emergency declared by Council or Head of Council under The Emergency Measures Act. Tendering and Procurement Policy Page 6 of 9 7. ADVERTISING BID OPPORTUNITIES 7.1 Bid opportunities for the procurement of goods and services valued equal to or greater than $75,000 and construction projects valued equal to or greater than $200,000 will be advertised on the municipal website, MERX and in a local newspaper. 8. AWARD OF CONTRACTS 8.1 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 a good or service. - 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. 8.2 The Municipality is not required to accept any bid if the Municipality decides not to proceed with the purchase. 8.3 The Municipality may enter into a contract with the successful bidder. The form of the contract will be determined by the Municipality. 8.4 The Municipality may renew or continue existing contracts without a competitive bid process for ongoing professional service contracts such as, but not limited to, legal services, consulting services, engineering services, and IT Services. When tendering for such new contracts, such bid opportunities will provide that the winning bidder may have their contract renewed or extended without a further competitive bid process. 9. DELEGATION OF APPROVALS 9.1 Authority to approve procurements of goods, services or construction is provided in Schedule "A" of this policy. 10. PROCUREMENT ACCOUNTING AND MANAGEMENT Tendering and Procurement Policy Page 7 of 9 10.1 Purchase Orders All purchases, which are charged to the account of the Municipality with various suppliers, must be preceded by the issuance of a Purchase Order. The following payments do not require a Purchase Order: purchases made with a Municipal credit card, government transfer payments, petty cash, expense accounts, progress payments for capital projects, professional fees, instructor fees and volunteer honorariums. Purchase Orders must be completed and bear the appropriate authorizations as per the authorizations and approvals provided in this Policy prior to ordering goods or services on behalf of the Municipality. The approving individual is responsible for ensuring that the purchase is appropriate and within the budget guidelines. The following information must be provided: - Date - Supplier name and address - Number of items ordered - Brief description of Goods or Services - - Code of applicable expense account - Firm price or if firm price is not available, an estimate with a note that an estimate is being provided - Signature of authorizing individual within their signing authority It is the ordering department's responsibility to ensure that goods or services ordered and invoiced for have be received in satisfactory condition. The authorizing individual must verify by signature on the Purchase Order, Invoice or Packing Slip that the goods or services were received. 10.2 Procurement Tracking System At the commencement of the project, the CAO or staff as directed by 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. Tendering and Procurement Policy Page 8 of 9 An accounts payable listing that includes the supplier name, a brief description of the Goods, Services or Construction provided and the amount payable to each supplier for payments with a value of $50,000 or more will be submitted to Council during the quarterly finance report for information. The CAO will issue payment for all accounts payable authorized for payment through the Financial Plan and by resolution of Council and maintain adequate record of accounts payable listings, the corresponding invoices and cheque registry information. 11. PROCESS FOR SELLING SURPLUS CAPITAL ASSETS: 11.1 Surplus capital assets will be disposed of in the following manner: - competitive bid process through a Request for Quotations; or - public auction; or - Through the CAO as set forth below. 11.2 Requests for Quotations on capital assets offered for sale by the Municipality, or capital assets to be sold by public auction will be: - posted on the Municipality's website for at least 10 days before the closing date of the invitation to bid; and - published in at least in one edition of a local newspaper at least 10 days before the closing date of the invitation to bid. 11.3 Sale of a capital asset to a bidder shall be awarded using the evaluation process that is specified in the Request for Quotations. The Municipality is not required to accept a bid if Council decides not to proceed with the sale. For example, if all bids are too low, the highest or any bid will not necessarily be accepted. 11.4 Capital assets to be offered for sale by the Municipality by public auction shall be awarded using a process specified by the CAO, and the CAO or the CAO's delegate, has the discretion at the public auction to not accept a bid and/or for the public auction to be adjourned. 11.5 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. - END- Tendering and Procurement Policy Page 9 of 9 RURAL MUNICIPALITY OF WEST ST. PAUL Tendering and Procurement Policy SCHEDULE "A" DELEGATION OF APPROVALS Authority to approve procurements of goods, services or construction is as follows: - Up to $5,000 - Operations Foreman, Lead Utility Operator, Recreation Services Coordinator, Facilities and Parks Coordinator and Executive Assistant, as long as the expenditure is authorized in the interim operating budget or identified in the Municipality's Financial Plan. - Up to $40,000 - Directors and Fire Chief, as long as the lowest bid is accepted and the expenditure is authorized in the interim operating budget or identified in the Municipality's Financial Plan. - Up to $100,000 - Chief Administrative Officer (CAO), as long as the lowest bid is accepted and the expenditure is identified in the Municipality's Financial Plan - Over $100,000 or where the low bid is not accepted - Council - All contracts for professional services - Council - Any person delegated Approval Authority shall ensure that an approved budget exists for the proposed Procurement and that such Procurement does not violate any of the Municipality's policies or any applicable law. Any such procurement shall also satisfy any applicable audit requirements of the Municipality. - Council must approve any Procurement process in the following circumstances: i) Where the provisions of the Tendering and Procurement Policy are being waived; or ii) Where an acquisition was not included in the approved budget.