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MUNICIPALITY OF THE COUNTY OF ANNAPOLIS
POLICY AND ADMINISTRATION MANUAL
AM - 1.7.4
Section
Purchasing
Subject
Purchasing and Tendering Policy
Amended January 16, 2018
Page 1 of 12
APPLICATION
1. This Policy applies to the procurement by the Municipality of the County of Annapolis of all
goods and services, including construction and facilities, by purchase or lease, but does not
apply to procurements:
(a) by the Municipality from organizations owned or controlled by the Municipality;
(b) where a construction project is managed by a third party on behalf of the Municipality, in
which case the procurement for the project must be in accordance with the contract
between the Municipality and the third party, and in accordance with generally accepted
procurement practices.
2. This policy also applies to boards, agencies or commissions funded by the Municipality as a
condition for maintaining continued funding.
AUTHORITY
Public Procurement Act (May 2011, as amended)
DEFINITIONS
3. In this Policy:
(a) "alternative procurement practice" means the purchase of goods or services without a
public tender or other competitive process, in the circumstances described at Section 20
of this Policy;
(b) "best value" means evaluating bids not only on purchase price and life cycle cost
considerations, but also taking into account items such as environmental and social
considerations, delivery, servicing and the capacity of the supplier to meet other criteria
as stated in tender documents;
(c) "environmental considerations" means factors associated with the purchase,
manufacture, operation or disposal of a product or asset that affect the environment, such
as the degree to which the product or asset uses recycled materials, is energy efficient, or
produces or reduces greenhouse gas emissions;
(d) "life cycle cost" means the total costs associated with a product or asset over its life
span, including the cost of maintenance, repair, operation and disposal;
(e) "local business" means businesses whose main office or operations are physically
located within the boundaries of the Municipality of the County of Annapolis and
includes within the Towns of Annapolis Royal, Bridgetown and Middleton;
(f) "Municipality" means the Municipality of the County of Annapolis;
(g) "public tender" means publicly advertising the Municipality's intended procurement of
certain goods or services and inviting responses from interested suppliers. Public tenders
include traditional tenders, requests for proposals, and two phase bids, and are described
at Section 14 of this Policy;
(h) "request for proposals" means a formal invitation to suppliers to describe how their
services, methods, equipment or products can address and/or meet the needs of the
Municipality. Requests for proposals are described at Section 17 of this Policy;
MUNICIPALITY OF THE COUNTY OF ANNAPOLIS
POLICY AND ADMINISTRATION MANUAL
AM - 1.7.4
Section
Purchasing
Subject
Purchasing and Tendering Policy
Amended January 16, 2018
Page 2 of 12
(i) "request for quotations" means informally obtaining price quotations from a number of
different suppliers. Requests for quotations are described at Section 14 of this Policy;
(j) "social considerations" means factors associated with the purchase or manufacture of a
product or asset that relate to the rights or interests of the workers involved, such as
working conditions, fair wages, and compliance with human rights legislation and
conventions;
(k) "standing offer" means a source of supply available to the Municipality either through a
standing price agreement with a supplier or as a member of a larger group of purchasers.
Standing offers are described at Section 13 of this Policy;
(l) "traditional tender" means a formal invitation to suppliers to submit a bid to supply
specified goods or services. Traditional tenders are described at Section 16 of this
Policy;
(m) "two phase bid" means a two stage process in which suppliers submit proposals for
evaluation, and separately submit prices. Two phase bids are described at Section 19 of
this Policy.
POLICY INTENT
4. The purpose of this policy is to provide for the procurement of goods, services, construction
and facilities by the Municipality public sector entities in a fair, open, consistent and
transparent manner resulting in best value.
PROCUREMENT PRINCIPLES
5. All procurement carried out by the Municipality must be carried out with a view to:
(a) ensuring an equitable, open and transparent process for the acquisition of goods and
services by the Municipality;
(b) avoiding dishonesty, corruption or favouritism in the procurement of goods and services;
(c) encouraging competitive bidding wherever possible and, in any event, minimizing the
Municipality's cost of acquiring goods and services while obtaining best value;
(d) utilizing suppliers who can be expected to provide satisfactory performance;
(e) taking into account environmental considerations in all procurement decisions and
selecting environmentally beneficial goods and services where practical;
(f) complying with applicable regional, national, and international trade agreements,
including the Agreement on Internal Trade and the Atlantic Procurement Agreement;
(g) complying with the Public Procurement Act, S.N.S. 2011, c. 12 and Regulations
made pursuant to the Public Procurement Act.
6. Pursuant to Subsection 15(1) of the Public Procurement Act, all employees involved in
procurement on behalf of the Municipality must:
(a) ensure their procurement activities are conducted according to this Policy, provincial and
federal legislation, trade agreements and ethical business practices;
MUNICIPALITY OF THE COUNTY OF ANNAPOLIS
POLICY AND ADMINISTRATION MANUAL
AM - 1.7.4
Section
Purchasing
Subject
Purchasing and Tendering Policy
Amended January 16, 2018
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(b) encourage and support collaborative procurement amongst other municipalities and
public sector entities such as hospitals and school boards;
(c) follow leading procurement practices;
(d) in good faith, conduct business with current and prospective suppliers and be fair in all
business dealings;
(e) strive to obtain the best value for each expenditure;
(f) require suppliers provide accurate representations of goods, services and construction;
(g) encourage suppliers to consider integrating environmental, economic and social
considerations in their product or service offerings;
(h) encourage the negotiation of an equitable and mutually acceptable settlement when a
dispute arises;
(i) request removal from a procurement process when a personal conflict of interest is
perceived.
NORMAL PROCUREMENT PRACTICES
7. In addition to adhering to the principles in Sections 5 and 6, normal purchasing practices
must be as described below in Sections 8 to 11.
8. For goods and services having a value of less than $2,500:
(a) The procurement decision must be made by the applicable Director or Service Group
Manager or by an employee designated by one of those persons.
(b) Goods and services must be procured under a standing offer if one exists for the goods or
services required, and if doing so will provide best value.
(c) If the goods or services cannot be procured under subsection (b), they may be purchased
from any supplier, unless municipal staff have reason to believe that:
(i) purchasing the goods or services from that supplier would not provide best value;
or
(ii) acquiring the goods and services from that supplier would otherwise not conform
with the procurement principles in Section 5.
9. For goods and services having a value between $2,500 and $10,000:
(a) The procurement decision must be made by the applicable Director or Service Group
Manager or by an employee designated by one of those persons.
(b) Goods and services must be procured under a standing offer if one exists for the goods or
services required, and if doing so will provide best value.
(c) If the goods or services cannot be procured under Subsection (b), the goods or services
must be procured by a request for quotations.
MUNICIPALITY OF THE COUNTY OF ANNAPOLIS
POLICY AND ADMINISTRATION MANUAL
AM - 1.7.4
Section
Purchasing
Subject
Purchasing and Tendering Policy
Amended January 16, 2018
Page 4 of 12
10. For goods and services having a value between $10,000 and $25,000:
(a) The procurement decision must be made by the CAO or the applicable Director or
other position designated by the CAO.
(b) Goods and services must be procured under a standing offer if one exists for the goods or
services required, and if doing so will provide best value.
(c) If the goods or services cannot be procured under Subsection (b), the CAO or the
applicable Director or other position designated by the CAO must decide whether the
goods or services must be procured by a request for quotations or by public tender.
(d) If the goods or services are procured by a request for quotations, in addition to any other
requirements for the request for quotations process, the following requirements must be
met:
(i) all quotations must be obtained in writing;
(ii) all suppliers of the particular goods and services listed in the Municipality's
Supplier Registry must be given an opportunity to quote;
(iii) the request for quotations must be placed on the Municipality's web page.
11.
For goods and services having a value of more than $25,000:
(a) The procurement decision must be made by the CAO;
(b) Goods and services must be procured by public tender, which may be preceded by
a request for qualifications or request for expressions of interest.
12. Municipal staff may approve exceptions to the normal purchasing practices outlined in
Sections 8 to 11 of this Policy:
(a) when a more competitive process normally used for goods and services of higher
value, is used; or
(b) when, in accordance with the criteria described in the "alternative procurement
practices" provisions at Section 20 of this policy, it is necessary or appropriate that the
goods or services be purchased in accordance with that section.
GUIDELINES FOR PROCUREMENT PROCEDURES
13. Standing offers:
(a) A standing offer is a source of supply available to the Municipality either through a
standing price agreement with a supplier or as a member of a larger group of
purchasers, and includes:
(i) a standing agreement between the Municipality and a supplier in which the supplier
commits to providing specified goods or services at a specific price for a specific
period of time. Such standing agreements should themselves be the subject of a
competitive tender process;
MUNICIPALITY OF THE COUNTY OF ANNAPOLIS
POLICY AND ADMINISTRATION MANUAL
AM - 1.7.4
Section
Purchasing
Subject
Purchasing and Tendering Policy
Amended January 16, 2018
Page 5 of 12
(ii) equipment leasing programs through the Government of Nova Scotia;
(iii) Nova Scotia Provincial "standing offers" administered by the Nova Scotia
Government;
(iv) supplies and services available from the Nova Scotia Government;
(v) a procurement program administered by the Union of Nova Scotia Municipalities or
the Association of Municipal Administrators;
(vi) any other program available to several municipal units and other public sector
entities such as hospitals and school boards, provided that municipal staff is
satisfied that such program has been developed and conforms with the principles set
out in Section 5.
14. Request for quotations:
(a) A request for quotations process involves informally obtaining price quotations from
a number of different suppliers.
(b) Requests for quotations are generally used when the cost of the goods or services does
not warrant the time, effort and expense required for a formal public tender process.
(c) Quotations must normally be sought from at least three suppliers but fewer suppliers may
be used when three suppliers are not available within a reasonable distance, having regard
to the value of the goods and services, the shipping or travel cost and the amount of time
available before the goods and services are required to be available. If it is decided to
obtain fewer than three quotations, the person responsible for that decision must
document their reasons for doing so.
(d) Quotations must normally be obtained in writing, but when time does not permit the
obtaining of written quotations, the quotations may be obtained verbally, except when
this Policy stipulates otherwise. If a quotation is obtained verbally, the person obtaining
it must document the quotation, including the time, date, supplier, price and description
of the goods and services, the person from whom the quotation was obtained and the
name of the municipal staff obtaining the quotation.
15. Public tender:
(a) Public tender means publicly advertising the Municipality's intended procurement of
certain goods or services and inviting responses from interested suppliers.
(b) Public tenders are used for higher value procurements, when the cost of the goods or
services warrants the time, effort and expense required for a public tender process.
(c) Public tenders can be in the form of traditional tenders (see Section 16), requests for
proposals (see Section 17), or two phase bids (see Section 18).
MUNICIPALITY OF THE COUNTY OF ANNAPOLIS
POLICY AND ADMINISTRATION MANUAL
AM - 1.7.4
Section
Purchasing
Subject
Purchasing and Tendering Policy
Amended January 16, 2018
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16. Traditional tender:
(a) A traditional tender is a formal invitation to suppliers to submit a bid to supply specified
goods or services.
(b) A traditional tender should be used when the procurement requirements of
the Municipality can be clearly and completely specified.
(c) Traditional tenders do not have to be opened in public, but if they are not, the name of
each bidder and the amount of their bid must be made available to each bidder after the
tenders are opened.
(d) The Municipality must not negotiate with any bidders, but must award the procurement
contract to the bidder that meets the tender requirements and provides best value.
17. Request for proposals:
(a) A request for proposals is a formal invitation to suppliers to describe how their services,
methods, equipment or products can address and/or meet the needs of the Municipality.
(b) A request for proposals may be used when the Municipality is unable to clearly or
completely specify the goods or services required, and suppliers are therefore asked to
provide a solution to the problem, requirement or objective. Requests for proposals may
also be used for professional and consulting services.
(c) In order to preserve confidentiality of sensitive commercial information contained in a
proposal, proposals submitted in response to a request for a proposal need not be
opened in public, but must be opened in the presence of at least two representatives of
the Municipality, and after the proposals are opened a list of the proponents must be
available to the public and the proponents upon request.
(d) Negotiations may be conducted with a proponent after proposals have been opened,
subject to complying with the terms of the request for proposals which must be drafted
to avoid unfair "bid-shopping" by the Municipality (that is, to avoid using the bids
submitted as a negotiating tool to obtain a better price or other benefit).
(e) The Municipality must award the procurement contract to the supplier whose proposal is
determined to provide best value to the Municipality based upon the evaluation criteria
set out in the request for proposals and equitably applied to all proposals.
18. Two phase bids:
(a) A two phase bid process invites suppliers to submit bids as follows:
(i) Phase One: one or more steps in which bidders submit proposals for evaluation,
either with or without prices in a separate submission;
(ii) Phase Two: Only those bidders whose bids were determined to be acceptable will
be entitled to submit priced bids for consideration or, where prices are submitted
separately in Phase One, the prices are opened.
MUNICIPALITY OF THE COUNTY OF ANNAPOLIS
POLICY AND ADMINISTRATION MANUAL
AM - 1.7.4
Section
Purchasing
Subject
Purchasing and Tendering Policy
Amended January 16, 2018
Page 7 of 12
(b) A two phase bid process may be used when detailed specifications are not available or it
is impractical to prepare a specification based on price. This type of procurement has the
advantages of a request for proposals in Phase One and a traditional tender in Phase Two.
(c) The Phase One submissions need not be opened in public, but must be opened in the
presence of at least two representatives of the Municipality and a list of the proponents
will be available to the public and the proponents upon request. Phase Two bids must be
opened in public.
(d) The Municipality must not negotiate with any bidders, and must award the procurement
contract to the supplier whose proposal is determined to provide best value to the
Municipality based upon the evaluation criteria set out in the Phase One request for
submissions equitably applied to all proposals, and the prices in Phase Two.
19. Alternative procurement practices
(a) In certain circumstances, described in this section, the Municipality may purchase
goods or services without using one of the options set out above. An alternative
procurement purchase may occur only:
(i) Where an unforeseeable situation of urgency exists and the goods, services or
construction cannot be obtained in time by means of open procurement
procedures;
(ii) Where goods or consulting services regarding matters of a confidential or
privileged nature are to be purchased and the disclosure of those matters through
an open tendering process could reasonably be expected to compromise
government confidentiality, cause economic disruption or otherwise be contrary
to the public interest;
(iii) Where compliance with the open tendering provisions set out in this Policy would
interfere with the Municipality's ability to maintain security or order or to protect
human, animal or plant life or health;
(iv) In the absence of tenders in response to an open or selective tender, or when
the tenders submitted have been collusive, or not in conformity with the
essential requirements in the tender;
(v) To ensure compatibility with existing products, to recognize exclusive rights, such
as exclusive licenses, copyright and patent rights, or to maintain specialized
products that must be maintained by the manufacturer or its representative;
(vi) Where there is an absence of competition for technical reasons and the goods or
services can be supplied only by a particular supplier and no alternative or
substitute exists;
(vii) For the procurement of goods or services the supply of which is controlled
by a supplier that is a statutory monopoly;
(viii) For the purchase of goods on a commodity market;
MUNICIPALITY OF THE COUNTY OF ANNAPOLIS
POLICY AND ADMINISTRATION MANUAL
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Amended January 16, 2018
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(ix) For work to be performed on or about a leased building or portions thereof that
may be performed only by the lessor;
(x) For work to be performed on property by a contractor according to provisions of
a warranty or guarantee held in respect of the property or the original work;
(xi) For the procurement of a prototype or a first good or service to be developed in
the course of and for a particular contract for research, experiment, study or
original development, but not for any subsequent purchases;
(xii) For the purchase of goods under exceptionally advantageous circumstances such
as bankruptcy or receivership, but not for routine purchases;
(xiii) For the procurement of original works of art;
(xiv) For the procurement of subscriptions to newspapers, magazines or other
periodicals;
(xv) For the procurement of real property;
(xvi) For the procurement of goods intended for resale to the public;
(xvii) For procurement from philanthropic institutions, prison labour, persons with
disabilities, sheltered workshop programs or through employment equity
programs;
(xviii) For procurement from a public body or a non-profit organization; or
(xix) For the procurement of services of expert witnesses, specifically in anticipation
of litigation or for the purpose of conducting litigation.
(b) When an alternative procurement purchase occurs, the reason for doing so must be
documented.
REQUIREMENTS FOR ALL PUBLIC TENDERS
20. The following requirements apply to all public tenders, whether traditional tenders, requests
for proposals, or two phase bids:
(a) The Municipality must provide reasonable notice and opportunity to respond to public
tenders, and must post or place notices of public tenders as follows:
(i) on the public website maintained and operated by the government of Nova Scotia;
(ii) on the Municipality's website;
(iii) in the The Spectator;
(iv) in the The Chronicle-Herald, upon the direction of the CAO, when the CAO
determines that the cost and nature of the procurement warrants the expense of
doing so;
(v) in other media, as directed by the CAO, when the CAO determines that the cost and
nature of the procurement warrants the expense of doing so.
(b) Every public tender must include or have attached the terms and conditions that govern
the tender.
MUNICIPALITY OF THE COUNTY OF ANNAPOLIS
POLICY AND ADMINISTRATION MANUAL
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Section
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Subject
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Amended January 16, 2018
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(c) The terms and conditions of every notice of public tender must be consistent with:
(i) the standard instructions that support public tenders issued by the four Atlantic
provinces for goods and services, known as the Atlantic Standard Terms and
Conditions (a copy of which is attached as Schedule "A" to this Policy), for
the procurement of goods and services;
(ii) the standard instructions that support construction tenders issued by the
government of Nova Scotia, known as the Construction Contract Guidelines (a
copy of which is attached as Schedule "B" to this Policy), for the procurement of
construction.
(d) Public tenders should normally include specifications or terms as follows:
(i) expressly or by implication outlining the issues or criteria that will be used
for selection of a successful bidder or proponent;
(ii) a privilege clause stating that the lowest or any bid or proposal will not
necessarily be accepted;
(iii) the location for delivery of bids or proposals;
(iv) the means of delivery of bids or proposals, e.g., whether faxes or e-mails are
acceptable in addition to "hard copy" submissions;
(v) the time and date of closing;
(vi) a warning that tender documents and bids will be open to the public, except
to the extent otherwise stated in a call for tenders or a request for proposals,
in which event there must be included a warning that proposals or bids are
subject to the Freedom of Information and Protection of Privacy provisions of
the Municipal Government Act;
(vii) for design or architectural services, a statement that the Municipality will
own the copyright in the design, plans and other intellectual property
produced for the Municipality.
(e) Public tenders should also include a form of contract that the successful bidder will be
required to enter into with the Municipality, or should direct that bidders or proponents
must provide the form of contract with their bid or proposal.
(f) For each public tender that is awarded, the Municipality must post the name of the
successful supplier and the contract amount on the public website maintained and
operated by the government of Nova Scotia, and on the Municipality's website.
(g) The terms and conditions of every public tender must state the criteria that the
Municipality will use in evaluating responses. Those criteria are not limited to purchase
price and life cycle cost considerations, but may also include items such as environmental
and social considerations, delivery, servicing and the capacity of the supplier.
21. Upon the request of a supplier who is an unsuccessful bidder in a public tender, the
Municipality must conduct a debriefing with that supplier to provide feedback on the
evaluation of the public tender. The debriefing must be conducted as follows:
(a) the CAO or the individuals who evaluated the public tender must conduct the
debriefing;
MUNICIPALITY OF THE COUNTY OF ANNAPOLIS
POLICY AND ADMINISTRATION MANUAL
AM - 1.7.4
Section
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Amended January 16, 2018
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(b) the debriefing must provide reasons for the disqualification of the supplier, or in the
case where evaluation scoring was used, provide an overview of the supplier's score in
each category and reasons for that score;
(c) the debriefing must also provide information to the supplier on how to improve
future submissions;
(d) the debriefing must not disclose any information regarding other bidders or
their submissions.
LOCAL PREFERENCE AND SUSTAINABILITY CONSIDERATIONS
Local preference
22. Municipal staff (whoever has the authority to award the contract under this Policy)
must give preference to purchasing goods and services from local businesses in
accordance with the following:
(a) If the goods or services available from a local business are equal in providing best value
to those available from a non-local business, the goods or services from the local business
must be purchased.
(b) In evaluating which goods or services offer best value to the Municipality, the
Municipality must apply a preference of 10% to the price offered by a local business
as compared with non-local businesses, such that the price offered by the local
business is adjusted lower by 10% for the purposes of evaluating which goods or
services offer best value.
(c) All requests for quotations and notices of public tender must state that local
preference applies to the procurement.
(d) In accordance with the Atlantic Procurement Agreement, the local preference
described above does not apply to the following procurements:
(i) goods that have a value of $25,000 or greater;
(ii) services that have a value of $50,000 or greater;
(iii) construction that has a value of $100,000 or greater.
Sustainability considerations
23. Pursuant to the Public Procurement Act, in evaluating which goods or services offer best
value to the Municipality, the Municipality may consider sustainability criteria, meaning
environmental considerations, social considerations and economic considerations.
24. All requests for quotations and notices of public tender must list the sustainability
criteria that apply to the procurement.
MUNICIPALITY OF THE COUNTY OF ANNAPOLIS
POLICY AND ADMINISTRATION MANUAL
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GENERAL
Supplier registry
25. Suppliers wishing to do business with the Municipality shall be encouraged to register in the
Municipality's Supplier Registry. The Registry must be maintained by a staff person so
designated by the CAO and must consist of a table of prospective suppliers for goods and
services of various types, along with contract information. At least once per year, the
Municipality will advertise the existence of the Supplier Registry and the method of
registration in order to update the Registry. The Registry must be used as a source or
supplementary source of suppliers for requests for quotations, invitations to tender, requests
for proposals and other public purposes, subject always to the principles outlined in Sections
5 and 6 of this Policy.
Unsatisfactory suppliers
26. The Municipality may refuse to purchase goods and services from a supplier, and may
remove a supplier name from the Supplier Registry, if, in the opinion of Municipal Council,
the supplier has not provided satisfactory performance, satisfactory quality goods or has
otherwise not provided best value to the Municipality in dealings within the preceding three
years.
Conflicts of interest
27. If a staff member otherwise authorized to award a contract has a conflict of interest (that is,
he or she stands to gain or lose financially from a contract award), the award must be made
by the person to whom the conflicted staff member normally reports and the conflicted
staff member must not participate in the procurement process related to the contract in any
manner.1
Duration of contracts
28. Contracts for goods and services that are required to be procured by public tender under
this policy, including price agreements, must be re-tendered at least once every five (5)
years but may be re-tendered more frequently at the direction of Municipal Council.
Lease arrangements
29. Lease arrangements are subject to the provisions of this policy, save and except that
Municipal Council's authority must be obtained for any leases required by the Municipal
Government Act to be authorized by Council.
Approval of form of tender
30. Public tendering documents are to be reviewed by the CAO or his / her designate prior to
issuance to ensure consistency of tendering documents and practices.
1 Where Municipal Council is awarding a contract, the Municipal Conflict of Interest Act applies,
so any councillor who has a conflict of interest as defined in the Act must act accordingly.
MUNICIPALITY OF THE COUNTY OF ANNAPOLIS
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Expenditures
31. Expenditures for goods and services made pursuant to this policy must be made in
compliance with the Municipality's approved annual budgets.
Estimating the value of goods and services
32. In determining the cost of the goods or services for the purpose of deciding which of
Sections 8 to 11 apply to a purchase, staff must reasonably estimate the cost of the goods or
services.
Posting on Municipal Website
33. A copy of this policy must be posted on the Municipality's website.
Compliance with Policy
34. All staff and councillors must act in good faith to comply with this policy, but failure to
comply with this policy does not invalidate any procurement decision or act of the
Municipality, nor is the Municipality liable to any supplier or prospective supplier for
failing to comply with this policy.
Approved August 21, 2012
Amended January 16, 2018 - increased local preference (Sub-section 22 (b)) from 5% to 10%
Municipal Clerk's Annotation for Official Policy Book
I certify that this policy was adopted by Municipal Council as indicated below:
Seven (7) Day Notice................................................................................... January 9, 2018
Council Approval ..................................................................................... January 16, 2018
Carolyn Young January 16, 2018
Municipal Clerk
Date
At Annapolis Royal Nova Scotia
AM-1.7.4 Purchasing and Tendering Policy
Schedule "A"
Page 1 of 13
Atlantic Provinces Standard Terms and Conditions Goods and Services
Effective 2007 April.1 or later
NOTE: These Terms and Conditions and the Supplements for the issuing Province shall apply
only to those documents that reference them specifically. In the event of any conflict or
disagreement between these Terms and Conditions and the invitation documents, the
Invitation documents have precedence and will be assumed to be correct.
These Terms and Conditions are intended to cover a wide range of provincial procurements, including
goods and services. As such, not all clauses will be applicable in all situations. If Bidders have
questions regarding any of these Terms and Conditions, they must call the contact person named on
the Invitation form, or get in touch with the Procurement Office. To satisfy special requirements,
supplementary Terms and Conditions may also apply to some acquisitions. If this is the case, the
Invitation documents will reference any such documents, in addition to these Terms and Conditions.
The official Terms and Conditions are available from the Council of Atlantic Premiers (CAP) website
a http://www.cap-cpma.ca/default.asp?mn=1.62.74 . In the event of any discrepancy or conflict, the
Terms and Conditions at the CAP website will be considered the correct version. If you do not have
access to these documents on the Internet, contact your closest Procurement Office.
Failure to completely comply with these Terms and Conditions could cause the Bidder's
Bid to be disqualified.
Contents
The items listed below are links to the named sections of this document; click on any of them to jump
to that section.
Definitions
Provincial Offices
1. Date, Time and Place of Closing and Opening; Late Bids
2. Methods of Submission
2.1 General
2.2 Paper Bids
2.3 Fax Bids
2.4 Electronic Bids
3. Obtaining Documents
4. Vendor Registration
5. Liability for Costs
6. Alternative Bids; Altering Bids Already Submitted
7. Supporting Documents
8. Unit Prices and Extensions; Taxes excluded; Currency; Shipping costs
9. Duration of Bid / Award Prices
10. Payment Terms and Discounts
11. Delivery
12. Quality / Complete Product
13. Substitutions and Equivalents, Discontinued Items
AM-1.7.4 Purchasing and Tendering Policy
Schedule "A"
Page 2 of 13
14. Standards and Certification
15. Addenda, Corrections or Extensions of the Invitation
16. Environmental Considerations
17. Warranty
18. No Restrictions on Fair Use
19. Subcontractors and Consortium Bids
20. Right to Reject; Financial Stability; Non-Compliance
21. Cancellation; No Award
22. Governing Laws and Trade Agreements - Local Preference
23. Confidentiality and Freedom of Information
24. Bidders Located Outside Canada
25. Enquiries and Contacts
26. Accuracy of the Invitation; Right to Clarify
27. Language
28. Eligibility and Conflict of Interest
29. Extension to the Broader Public Sector
30. Miscellaneous Terms and Conditions
Definitions
Bid: Bidder's written offer to provide the required goods or services at a given price or rate, or any
similar document issued in reply to an Invitation. May also be referred to as a Proposal, Tender,
Quotation, Submission, Response or similar name.
Bidder: Any person, business, or Consortium that submits a Bid.
Broader Public Sector: Any governmental or government-funded entity within a Province, including the
MASH sector (Municipal governments, Academic institutions such as universities and community
colleges, School boards and Hospitals). Includes all government departments, agencies, boards, offices
and commissions and Crown Corporations.
Consortium: Two or more Bidders having no formal corporate links, who submit a joint Bid.
E-bid: A Bid submitted electronically via the Internet.
Fax Bid: A Bid submitted by means of facsimile transmission over telephone lines.
Invitation: A formal request for prices or responses, whether in printed or electronic form, with sealed
Bids, faxed Bids, electronically submitted Bids, or similar responses opened at a given time. May also be
referred to as a Tender, Request for Bids, Request for Quotations, Request for Proposals, Request for
Information, Prequalification, Request for Expression of Interest, or similar name. The Invitation
incorporates any addenda that may be issued.
Paper Bid: A Bid submitted in printed form, not through facsimile or other electronic medium
Procurement Office: The office responsible for the issuing and processing of Invitations for the
Province, as identified in the Invitation documents.
Province: Her Majesty the Queen in right of the Province or Provinces identified in the Invitation,
including the Procurement Office and the Department or agency on whose behalf the Invitation is
issued.
Denotations: The words "may" "could" or "should" denote the permissive. The words "must", "shall" or
"will" denote the imperative.
AM-1.7.4 Purchasing and Tendering Policy
Schedule "A"
Page 3 of 13
Provincial Offices
The table below gives specific information about the Procurement Office for each Province.
Prov
New Brunswick
Newfoundland &
Labrador
Nova Scotia
Prince Edward Island
Central Tendering
Branch
PO Box 8000
Room 205, 20 McGloin
St.
Marysville Place
Fredericton, NB E3B
5H6
Phone 506-453-2245
Fax 506-444-4200
Government
Purchasing Agency
30 Strawberrymarsh
Road
St. John's, NL Al B
4R4
Public Tenders Office
PO Box 787
Suite 200
6176 Young St.
Halifax, NS B3J 2V2
Procurement Services
PO Box 2000
Room 27, 2nd Floor Shaw
105 Rochford St.
Charlottetown, PE
CIA 7N8
Phone 902-424-3333
Fax 902-424-0622
e-mail [email protected]
Phone 709-729-3348
Fax 709-729-5817
Phone 902-368-4040
Fax 902-368-5171
Atlantic time, 1 hour ahead of
Eastern time (10:00 am
Eastern time is 11:00 am in
Nova Scotia)
Atlantic time, 1 hour
ahead of Eastern time
(10:00 am Eastern time is
11:00 am In Prince
Edward Island)
Newfoundland time,
1% hours ahead of
Eastern time
Atlantic time, 1 hour
ahead of Eastern time
(10:00 am Eastern time
is 11:00 am in New
Brunswick)
1. Date, Time and Place of Closing and Opening; Late Bids
1.1 Invitations will close at the time, date and location specified in the Invitation documents.
1.2 All Bids must be received in their entirety at or before the closing time specified; Bidders are
responsible for ensuring that their Bid, however submitted, is received on time and at the
location specified.
1.3 All times are local times; note the time difference between Bidder's location and the
Procurement Office (see Procurement Office table).
1.4 Bids received late, or not received completely by the closing time will not be considered; the
Procurement Office time clock will be assumed to be correct in the event of dispute.
1.5 All Bids must be sent to the Procurement Office (as identified in the Invitation documents), and
will be opened there, in accordance with that Procurement Office's rules for opening Bids.
1.6 Bids will be opened publicly at the time and date specified in the Invitation. The public is
allowed to attend Bid openings for most publicly-advertised Invitations - the website Invitation
Notice, advertisement and/or the Invitation document itself will specify if the Bid opening can be
attended by the public.
2. Methods of Submission
2.1 General
2.1.1 Bids must be legible and complete, must include the Invitation number and identify the
Bidder's name and address and supply all information requested; incomplete or illegible
Bids are subject to rejection.
AM-1.7.4 Purchasing and Tendering Policy
Schedule "A"
Page 4 of 13
2.1.2 All questions or areas on the Invitation form must be answered, even if it is only to
indicate that the referenced item is not available; blank items will be assumed to be
unavailable, and may result in rejection of Bidder's Bid.
2.1.3 Where the price summaries of the Bid do not fully explain the cost implications of an item,
additional pricing detail should be attached, and shall form part of the Bid.
2.1.4 Prices should be broken down as requested; if the cost of an item has been included in
some other item, enter "Included in Item [nn]".
2.2 Paper Bids
2.2.1 Bids must be enclosed in a sealed, opaque envelope or package.
2.2.2 The Bidder's name, the Invitation number and the Invitation closing date should be
clearly visible on the outside of the envelope or package.
2.2.3 The Bid must be signed by an appropriate authorized official of the firm submitting the
Bid.
2.3 Fax Bids
2.3.1 A Bid may be submitted by facsimile (fax) unless the Invitation documents state that fax
Bids are not acceptable.
2.3.2 Fax Bids may not be acceptable where the Bid must be accompanied by original
documents, plans, deposits, or physical samples.
2.3.3 Fax Bids are accepted for the convenience of the Bidder; the Province cannot ensure the
confidentiality or error-free receipt of fax Bids. A Bidder submitting a Fax Bid does so at
its own risk.
2.3.4 Submit Fax Bids to the Procurement Office only; do not send the Bid to any other fax
number unless specifically directed to do so.
2.3.5 The Bid must be signed by an appropriate authorized official of the firm submitting the
Bid.
2.4 Electronic Bids
2.4.1 E-bids, or Bids submitted partially in electronic format, are permissible only where the
Invitation documents specifically identify that they can be used, and should be submitted
in the manner and format specified; Bids not fulfilling these requirements may be rejected
without further consideration.
2.4.2 The Province cannot ensure the confidentiality or error-free receipt of electronically-
submitted Bids or Bid components, and cannot guarantee that the Internet connections or
website will be available at all times up to the closing time for Bid submission. A Bidder
submitting an Electronic Bid does so at its own risk.
2.4.3 Complete instructions for submitting e-bids are available online with any e-bid Invitation
opportunity.
2.4.4 Invitations that permit e-bids may require that all submissions be made in electronic
format, or they may allow a combination of electronic and written responses; the
conditions and permissible forms will be stated in the Invitation documents.
2.4.5 All e-bids are subject to verification by the Procurement Office to ensure that the Bid is a
bona fide offer submitted by the person or company named in the Bid.
2.4.6 Click on the links below to view further specific information about submitting Electronic
Bids for each Province. A new window will open in the browser to allow Bidders to view
this information. Close the new window when ready to return to this document.
AM-1.7.4 Purchasing and Tendering Policy
Schedule "A"
Page 5 of 13
Prov
New Brunswick
Newfoundland &
Labrador
Nova Scotia
Prince Edward Island
Link
See NB Supplement
Not Applicable
See NS Supplement
Not Applicable
3. Obtaining Documents
3.1 Bids should be submitted on the official Invitation forms as issued through the Procurement Office;
failure to use the correct forms could result in the Bid being rejected.
3.2 Click on the links below to view specific information about obtaining Invitation Forms for each
Province. A new window will open in the browser to allow Bidders to view this information. Close
the new window when ready to return to this document.
Prov
New Brunswick
Newfoundland &
Labrador
Nova Scotia
Prince Edward Island
Link
See NB Supplement
See NL Supplement
See NS Supplement
See PE Supplement
3.3 Only use copies of Invitation forms received from the official sources/agencies listed in section
3.2; improperly obtained forms could result in the Bid being rejected.
3.4 It is the Bidder's responsibility to obtain Invitation documents at their cost.
3.5 Bidders must not alter any portion of the Invitation or associated documents, with the exception
of adding the information requested by the Invitation. Bids containing clauses additional to the
Invitation that are "qualified" or "conditional" may be rejected.
3.6 The Invitation, or any supplementary document or portion thereof is proprietary information, and
must not be used by the Bidder for any purpose other than the submission of Bids without the
permission of the Procurement Office.
4. Vendor Registration
4.1 Click on the links below to view specific information regarding Bidder Registration and/or
Corporate Registration requirements for each Province. Bidder Registration deals with
processes required for Bidders to receive Invitations and/or submit Bids. Corporate Registration
deals with the requirements for doing business in the Atlantic Provinces, including receiving
awards. A new window will open in the browser to allow Bidders to view this information. Close
the new window when ready to return to this document.
Prov
New Brunswick
Newfoundland &
Labrador
Nova Scotia
Prince Edward Island
Link
See NB Supplement
See NL Supplement
See NS Supplement
See PE Supplement
5. Liability for Costs
5.1 Bidders are responsible for their own expenses in preparing, delivering or presenting a Bid and
for subsequent negotiations with the Province, if any. The Province will not defray any costs
incurred by a Bidder in responding to an Invitation.
5.2 The Province will not be responsible for any costs, expenses, losses, damages or liability
incurred by the Bidder as a result of, or arising out of, the submission of any Bid, or due to the
Province not accepting or rejecting any Bid.
AM-1.7.4 Purchasing and Tendering Policy
Schedule "A"
Page 6 of 13
6. Alternative Bids; Altering Bids Already Submitted
6.1 Alternative Bids are multiple replies to an Invitation, all or any of which are open for
consideration. If Alternative Bids are being made, each alternative should be submitted as a
complete, separate and independent Bid, and the Bid form, e-bid or fax must be identified with
words such as "Alternative A", "Alternative B", etc.
6.2 Multiple Bids submitted by the same Bidder and not clearly identified as Bid revisions will be
assumed to be Alternative Bids.
6.3 Bids already submitted may be amended prior to closing a) by submitting an amendment
identifying the plus or minus variance to the original Bid, or b) by sending in a complete new Bid,
clearly indicating it replaces the previously submitted Bid. Any such revision must clearly identify
the Invitation number and closing date of the Bid being submitted. A Bid revision replaces any
other Bid revisions previously submitted by the Bidder; only the last of any Bid revisions
received will be accepted.
6.4 Any Bid submitted in response to an Invitation may be withdrawn by written request to the
Procurement Office, but cannot be withdrawn, altered or changed in any way after the Invitation
closing date and time.
6.5 All requests for withdrawal, amendment or submission of a replacement Bid must be submitted
in writing on company letterhead or equivalent, and be signed by an authorized official of the
Bidder.
7. Supporting Documents
7.1 A brief supplementary statement may be included with the response to an item to give the
evaluators a clear understanding of the products/ personnel proposed and their ability to
perform the specified tasks.
7.2 In addition to the responses requested in the Invitation, Bidders may include specifications on
some or all proposed items for evaluation purposes.
7.3 Supporting documents should be suitably cross-referenced to the Invitation.
8. Unit Prices and Extensions; Taxes excluded; Currency; Shipping costs
8.1 All prices should be extended and totaled. The extended price is derived by multiplying the unit
price by the quantity of units required.
8.2 In the event of an error in calculation of the extended price, the unit price will be taken as correct
and will govern in the Bid evaluation and contract administration.
8.3 Do not include any Provincial or Federal sales taxes in the price.
8.4 All prices should be quoted in Canadian dollars unless other currencies are specifically
requested.
8.5 Shipping, cartage, loading, insurance and handling charges must be included in the total price. If
these charges have not been stated specifically, it will be assumed that they have been included
in the Bid price, i.e. FOB to the destination(s) listed in the Invitation. The Province will not
assume responsibility for any goods or services until they have been delivered to the
destination(s) specified in the Invitation.
8.6 Unless stated otherwise in the Invitation, a firm, all-inclusive price is required, i.e. hourly rates or
"Time and Materials" are not acceptable responses.
9. Duration of Bid/Award Prices
9.1 If the Bid is accepted, prices must remain firm for the duration of the contract unless otherwise
specified.
9.2 Unless stated otherwise in the Invitation, Bids must remain open to acceptance and are
irrevocable for a period of 90 days after the Invitation closing date.
AM-1.7.4 Purchasing and Tendering Policy
Schedule "A"
Page 7 of 13
10. Payment Terms and Discounts
10.1 Click on the links below to view specific information about Payment Terms and Discounts for
each Province. A new window will open in the browser to allow Bidders to view this
information. Close the new window when ready to return to this document.
Prov
New Brunswick
Newfoundland &
Labrador
Nova Scotia
Prince Edward Island
Link
See NB Supplement
See NL Supplement
See NS Supplement
See PE Supplement
11. Delivery
11.1 Where the Invitation includes a mandatory delivery schedule, the Province will assume that
the Bidder can meet the requested schedule and is satisfied that the goods or services
required will be available for delivery on the requested date(s).
11.2 If Bidders wish to specify a delivery schedule different from that requested in the Invitation,
they must provide specific delivery dates or a schedule in calendar days from the date a
Purchase Order is issued. Bids that do not meet the delivery schedule as requested in the
Invitation may be rejected.
11.3 Time is of the essence, and Bidder's delivery schedule is legally binding. The Province
reserves the right to assess penalties or cancel awards to Bidders who fail to meet their
stated delivery or completion dates.
12. Quality / Complete Product
12.1 Unless otherwise stated in the Invitation, all material included in the Bid must be new, first
quality goods; used, refurbished, second, obsolete, discontinued or demonstrator items
must only be proposed if the Invitation specifically requests or otherwise states that such
goods will be allowed.
12.2 By submitting a Bid, Bidder guarantees that, unless the Invitation specifies otherwise, all
components required to make the required equipment or system operable or to deliver the
required services have been included in the Bid, or will be provided at no additional charge
to the Province.
12.3 Where applicable, the end user must be provided with complete operation manuals,
warranty registration forms, user licenses/ authentications and/or other associated
documentation normally provided by the manufacturer, reseller, installer and/or consultant.
13. Substitutions and Equivalents, Discontinued Items
13.1 The specifications in the Invitation define the minimum acceptable goods and/or services
required. Minor deviations from the specifications may or may not be permitted at the sole
discretion of the Procurement Office.
13.2 The Invitation may specify items by brand name and/or model number to designate the
design, type of construction, quality, functional capability and/or performance level of the
product requested.
13.3 If an item has been discontinued during the Invitation process, or is otherwise unavailable,
the Procurement Office will cancel the Invitation, or will issue an Addendum to update the
specification. Bidders should notify the Procurement Office immediately when they become
aware of any discontinuation of specified items.
13.4 If Bidders feel that they can provide items with equivalent or better functionality at the same
or lower cost, they may be able to offer a substitute item. Substitutions offered must be of
equal or better quality and clearly identified, and accompanied by brochures and technical
information to permit evaluation of the item being offered. Substitution items must be
identified by manufacturer's stock/part number and other descriptive information to establish
equivalency.
Substitutions offered without documentation sufficient to determine
equivalency may be rejected as non-compliant.
AM-1.7.4 Purchasing and Tendering Policy
Schedule "A"
Page 8 of 13
13.5 The Procurement Office reserves the right to inspect or test any product bid to determine
equivalency, and may require demonstrator or sample items in order to be able to evaluate
the items proposed. The Province will be the sole judge of equivalency.
13.6 Specifications may, for technical or logistical reasons, require that the items specified be
supplied without substitution.
14. Standards and Certification
14.1 Where applicable, all equipment must be certified by the appropriate regulatory agencies
(e.g. Canadian Standards Association, Communications Canada, Transport Canada,
Canadian Gas Association, Health Canada, etc.), and/or must be approved by the
appropriate Provincial agency (e.g. Office of the Fire Marshal).
15. Addenda, Corrections or Extensions of the Invitation
15.1 The Procurement Office reserves the right to modify the terms of the Invitation at any time
prior to closing, at its sole discretion.
15.2 The Procurement Office will make information available to the public regarding any changes
made to the Invitation, or any change in the closing date or time. Bidders are responsible for
ensuring that they are aware of and have complied with any Addenda.
15.3 When these changes occur within five business days of the closing date, the closing date
may be extended to allow for a suitable Bid preparation time.
16. Environmental Considerations
16.1 The Province may seek to purchase recycled and/or environmentally sensitive products
where practical and effective.
16.2 Where appropriate, the integration of environmental considerations into Invitations may be
noted in the specifications; the specifications will identify these considerations to ensure that
suppliers have a full understanding of the conditions to be met. For example, the supply of
goods or services to Provincial parks may be affected by regulations such as the Canada
Wildlife Act that are not normally a consideration in Provincial procurements.
17. Warranty
17.1 The Bidder must describe the duration, type (e.g. on-site, depot, ship-in or carry-in) and
terms of the manufacturer's warranty on all goods.
17.2 If the Bidder provides any additional/ supplementary warranty coverage, describe this as
well.
17.3 If warranties can be upgraded or extended, identify the upgrade costs separately. Do not
include warranty upgrade or extension costs in the Bid price unless the Invitation specifically
states that the upgrade is a mandatory requirement.
17.4 If local service is a requirement of the Invitation, describe the means by which this will be
accomplished, i.e. by "own forces" or through a contractual arrangement with a third party
(which must be identified - see Section 19, "Subcontractors and Consortium Bids").
18. No Restrictions on Fair Use
18.1 The Bidder warrants that there are no patents, trademarks or other rights restricting the use,
repair or replacement of the goods or services furnished or any part thereof. The Bidder
agrees to indemnify and save harmless the Province from and against all claims filed or
prosecuted in any manner because of such use, repair or replacement of the goods or
services being a violation of any patent, trademark, or other right.
AM-1.7.4 Purchasing and Tendering Policy
Schedule "A"
Page 9 of 13
19. Subcontractors and Consortium Bids
19.1 The use of a subcontractor is permitted, and encouraged where this will result in skills and
technology transfer to the Province.
19.2 Names of all Subcontractors and/or Consortium members, and the services they will
provide, must be listed on or attached to the Bid, if requested.
19.3 If a Consortium Bid is being submitted, one of the Bidders must be prepared to take overall
responsibility for successful provision of the goods or services, and this must be defined in
the Bid. Failure to do so may result in disqualification of the Bid.
19.4 "Own Forces" may only be named as Subcontractors when the Bidder is equipped to carry
out and normally carries out the work noted.
19.5 If subcontractors (including "own forces") are named, work must be carried out by the
named forces and substitution of others will not be allowed without prior approval of the
Province.
20. Right to Reject; Financial Stability; Non-Compliance
20.1 Failure to comply with any of the mandatory terms or conditions contained or referenced in
the Invitation documents may result in the rejection of the Bid.
20.2 All of the terms, conditions and/or specifications stated or referenced in the Invitation are
assumed to be accepted by the Bidder and incorporated in the Bid.
20.3 Bidders may be required to demonstrate financial stability, authorization to provide the
goods/services being acquired, and/or regulatory agency approval, licensing or registration
as needed, or otherwise clarify Bidder's capability to satisfy the Invitation requirements. The
Procurement Office reserves the right to reject Bids from any Bidder that it feels is incapable
of providing the necessary labour, materials, equipment, financing or management
resources to perform the work or supply the goods in a satisfactory and timely manner.
20.4 The Province reserves the right to waive minor non-compliance where such non-compliance
is not of a material nature in its sole and absolute discretion, or to accept or reject in whole
or in part any or all Bids, with or without giving notice. Such minor non-compliance will be
deemed substantial compliance and capable of acceptance. The Procurement Office will be
the sole judge of whether a Bid is accepted or rejected.
20.5 The Procurement Office reserves the right to split an award amongst Bidders as deemed in
the best interests of the Province.
21. Cancellation; No Award
21.1 Issuing an Invitation implies no obligation on the Province to accept any Bid, or a portion of
any Bid submitted. The lowest or any Bid will not necessarily be accepted.
21.2 Invitations may be cancelled in whole or in part without penalty, when a) the price Bid
exceeds the funds allocated for the purchase; b) there has been a substantial change in the
requirements after the Invitation has been issued; c) information has been received by the
Province after the Invitation has been issued that the Province feels has substantially
altered the procurement; or d) there was insufficient competition in order to provide the level
of service, quality of goods or pricing required.
21.3 If no compliant Bids are received in response to an Invitation, the Province reserves the
right to enter into negotiations with one or more vendors in order to complete the
procurement.
21.4 The Province will be the sole judge of whether there is sufficient justification to cancel any
Invitation. 21.5 No action or liability will lie or reside against the Province in its exercise of its
rights under this section.
AM-1.7.4 Purchasing and Tendering Policy
Schedule "A"
Page 10 of 13
22. Governing Laws and Trade Agreements - Local Preference
22.1 Unless the Invitation documents specifically state otherwise, the Invitation, all Bids, and any
subsequent contracts will be construed and interpreted in accordance with the laws of the
Province in which the Invitation was issued.
22.2 Invitations subject to the Atlantic Procurement Agreement, the Agreement on Internal Trade,
or any other inter-provincial agreement, will be specifically identified as such in the public
notice and/or the Invitation documents.
22.3 Copies of any applicable trade or procurement agreements and/or legislation can be
obtained by contacting the Procurement Office.
22.4 Bidders agree to comply with all applicable laws, regulations and standards, including all
labour, occupational health & safety, and worker compensation requirements of the
Province.
22.5 The Procurement Office may consider and evaluate any Bids from other jurisdictions on the
same basis that the purchasing authorities in those jurisdictions would treat a similar Bid
from a supplier located in this Province. The Province will be the sole judge of whether
these conditions will be used and the extent to which they will be applied.
22.6 Vendors registered to do business in any Atlantic Province can bid on Invitations issued by
any other Atlantic Province without having to satisfy any local registration or residency
requirements.
22.7 Local Preference - Click on the links below to view specific information regarding local
supplier preference provisions for each Province. A new window will open in the browser to
allow Bidders to view this information. Close the new window when ready to return to this
document.
Prov
New Brunswick
Newfoundland &
Labrador
Nova Scotia
Prince Edward Island
Link
Not Applicable
Not Applicable
Not Applicable
See PE Supplement
22.8 Under Canadian law (and international agreements), your Bid must be arrived at separately
and
independently,
without
conspiracy,
collusion
or
fraud;
see
http://www.competitionbureau.gc.ca/internet/index.cfm?itemid=1243&Ig=e
for
further
information.
23. Confidentiality and Freedom of Information
Prov
New Brunswick
Newfoundland &
Labrador
Nova Scotia
Prince Edward Island
Link
Not Applicable
Not Applicable
See NS Supplement
Not Applicable
23.1 All Bids submitted become the property of the Province. By submitting a Bid, the Bidder
hereby grants the Province a license to distribute, copy, print or translate the Bid for the
purposes of the Invitation. Any attempt to limit the Province's right in this area may result in
rejection of the Bid.
AM-1.7.4 Purchasing and Tendering Policy
Schedule "A"
Page 11 of 13
23.2 Bidder's Bid package may be subject to disclosure under the Province's "freedom of
information" legislation. By submitting a Bid, the Bidder agrees to the appropriate
disclosure of the information supplied, subject to the provisions of the governing law. The
Province cannot guarantee the confidentiality of the complete content of any Bid after the
procurement has been awarded to the successful Bidder.
23.3 During the delivery and installation of goods and/or services, the Bidder or Bidder's staff
may have access to confidential information belonging to the Province. Should this occur,
the Bidder must ensure that such information is not released to any third parties or
unauthorized individuals; failure to comply may result in criminal or civil charges and/or the
Bidder's disqualification from any further Invitations issued by the Province.
24. Bidders Located Outside Canada
24.1 If a Bid is given in currency other than Canadian dollars, the Bidder assumes the risk of
variations in international exchange rates, and Bidder's prices must include all associated
costs and overheads connected with foreign currency transactions.
24.2 The bidder must arrange for clearance of goods through the Canada Border Services
Agency, along with all brokerage fees and payment of applicable Canadian taxes and
duties. For information pertaining to the Canada Border Services Agency please visit
http://www.cbsa-asfc.gc.ca .
24.3 The Bidder must arrange all visas, insurance, work permits, passports, etc. for personnel
required to visit Canada in association with the Bid.
24.4 All warranties on goods must be valid in Canada. To the extent that facilities are available,
warranty service should be provided in Canada.
24.5 There must be no conflict with authorized Canadian distributors of the goods and/or
services being Bid.
24.6 All goods must be compliant with Canadian operating environments (e.g. common
domestic electricity is 60Hz 115v 1 phase) and, where applicable, must be certified by the
appropriate Canadian regulatory agencies (reference para. 14.1).
24.7 Professional personnel (medical staff, engineers, architects, lawyers, accountants, etc.)
must be registered with the appropriate Canadian professional and/or regulatory
authorities, or must be eligible to register with such authorities if accepted for the work
being tendered.
24.8 Where any of the requirements set out in Paragraphs 24.1 to 24.7 inclusive are not met,
the Province reserves the right to reject the Bid, or to require bonds or sureties to ensure
compliance.
24.9 Sale of Goods Act - Bidder's acceptance of any Purchase Order(s) resulting from this
Invitation, in writing or by delivery, must include all of, and must be limited to, the terms and
conditions of the Purchase Order only. Formal objection is hereby made to any additional
or different terms a Bidder might propose in acceptance of any Purchase Order(s).
25. Enquiries and Contacts
25.1 In case of any dispute over the completeness, accuracy and/or interpretation of any
Invitation documents, the versions of such documents held by the Procurement Office will
be considered correct.
25.2 Information, offers, commitments or instructions obtained from any source other than the
Procurement Office will not be binding on the Province.
25.3 Enquiries regarding the Invitation must be made to the contact(s) named in the Invitation
documents (or their designates); quote the Invitation number on any correspondence.
AM-1.7.4 Purchasing and Tendering Policy
Schedule "A"
Page 12 of 13
25.4 If an envelope was included with the Invitation documents, this envelope must not be used
to submit an enquiry; these envelopes are not opened before the closing time for receipt of
Bids.
25.5 Enquiries and the responses given may be recorded and may be distributed to all other
Bidders as Addenda. No response shall be binding on the Province unless made in writing.
25.6 All enquiries regarding the interpretation of these Terms and Conditions, general
procurement policy or procedures must be made to the Procurement Office.
26. Accuracy of the Invitation; Right to Clarify
26.1 While the Province has tried to ensure accuracy in the Invitation, it is not guaranteed or
warranted by the Province to be accurate, nor is it necessarily comprehensive or
exhaustive.
26.2 The Procurement Office will assume that all Bidders have resolved any questions they
might have about the Invitation and have informed themselves as to existing conditions and
limitations, site restrictions, etc. before submitting their Bids.
26.3 Nothing in the Invitation is intended to relieve Bidders from forming their own opinions and
conclusions with respect to the matters addressed in the Invitation or its associated
documents.
26.4 The Province reserves the right in its sole discretion to clarify any Bid after closing by
seeking further information from that Bidder, without becoming obligated to clarify or seek
further information from any or all other Bidders. However, Bidders are cautioned that any
clarifications sought will not be an opportunity either to correct errors or change their Bids
in any substantive manner.
27. Language
27.1 Unless specifically requested otherwise, all Bids, supporting materials, operation manuals
and documentation must be in the language(s) as noted here. Click on the links below to
view default language requirements for each Province. A new window will open in the
browser to allow Bidders to view this information. Close the new window when ready to
return to this document.
Prov
New Brunswick
Newfoundland &
Labrador
Nova Scotia
Prince Edward Island
Link
See NB Supplement
See NL Supplement
See NS Supplement
See PE Supplement
28. Eligibility and Conflict of Interest
28.1 A Bid may not be eligible for acceptance if current or past corporate or other interests of the
Bidder may, in the Province's opinion, give rise to a conflict of interest in connection with a
project.
28.2 Bidders are cautioned that acceptance of their Bid may preclude them from bidding on
subsequent phases where a conflict of interest may arise; Bidders should study the project
implementation strategy to determine whether or not they plan to submit Bids on
subsequent phases.
28.3 If the Bid covers the first phase of what may prove to be a multi-phased project, the
successful Bidder on the initial phase may be permitted to bid on subsequent phases as
long as, in the Province's opinion, no conflict of interest would be created in performance of
the work by that Bidder.
28.4 Sub-contracting to any firm or individual whose current or past corporate or other interests
may, in the Province's opinion, give rise to a conflict of interest in connection with this
acquisition will not be permitted. This includes, but is not limited to, any firm or individual
involved in the preparation of the Invitation documents.
28.5 Provincial Requirements: Click on the links below to view further requirements for each
Province. A new window will open in the browser to allow Bidders to view this information.
Close the new window when ready to return to this document.
Schedule "A" to AM-3.2.1 Purchasing and Tendering Policy
Page 13 of 13
Prov
New Brunswick
Newfoundland &
Labrador
Nova Scotia
Prince Edward Island
Link
Not Applicable
Not Applicable
See NS Supplement
Not Applicable
29. Extension to the Broader Public Sector
29.1 The Province may choose to allow the Broader Public Sector (see Definitions) to purchase
goods or services from some Invitations. the Broader Public Sector are generally permitted
to purchase from "Standing Offers", which are long-term contracts resulting from an
Invitation. Other Invitations may also be available to the Broader Public Sector; if so, the
Invitation documents will state this.
29.2 By submitting a Bid to a Standing Offer or other identified Invitation, the Bidder agrees to
extend the same pricing to other eligible Broader Public Sector institutions as per the terms
and specifications in the Invitation.
30. Miscellaneous Terms and Conditions
Prov
New Brunswick
Newfoundland &
Labrador
Nova Scotia
Prince Edward Island
Link
See NB Supplement
Not Applicable
Not Applicable
Not Applicable
Schedule "B" to AM-3.2.1 Purchasing and Tendering Policy
CONSTRUCTION CONTRACT GUIDELINES
May 18, 2006
Schedule " B " to Purchasing and Tendering Policy
NOVA SCOTIA
Transportation and Public Works
Schedule "B" to AM-3.2.1 Purchasing and Tendering Policy
CONSTRUCTION CONTRACT GUIDELINES
INDEX
CCGO1 STATEMENT OF PURPOSE .................................................................................. 1
CCGO2 DEFINITIONS ......................................................................................................... 1
CCGO3 REQUIREMENT TO SOLICIT COMPETITIVE BIDS .............................................. 5
CCGO4 CONTENT OF TENDER NOTICE .......................................................................... 6
CCGO5 REGISTRATION REQUIREMENTS ....................................................................... 7
CCGO6 PREQUALIFICATION OF BIDDERS ...................................................................... 7
CCGO7 PREQUALIFICATION PROCESS .......................................................................... 7
CCGO8 CONSTRUCTION MANAGEMENT PROCESS ...................................................... 8
CCGO9 DESIGN BUILD PROCESS .................................................................................... 8
CCG10 UNIT PRICE CONTRACTS ..................................................................................... 9
CCG11 ESTIMATION OF CONTRACT VALUE ................................................................... 10
CCG12 NON-DISCLOSURE OF ESTIMATED CONTRACT VALUE .................................... 10
CCG13 QUERIES OF TENDER DOCUMENTS ................................................................... 10
CCG14 INCLUSIVE NATURE OF THE TENDER DOCUMENTS ......................................... 10
CCG15 INFORMATION IN THE TENDER DOCUMENTS ................................................... 10
CCG16 BID SECURITY/CONTRACT SECURITY ................................................................ 11
CCG17 CERTIFICATE OF RECOGNITION PROGRAM - LETTER OF GOOD STANDING 12
CCG18 RETURN OF CONTRACT SECURITY .................................................................... 12
CCG19 REPLACEMENT OF CONTRACT SECURITY ........................................................ 12
CCG20 CONTRACT INSURANCE ...................................................................................... 12
CCG21 WORKERS' COMPENSATION ACT ....................................................................... 13
CCG22 AMENDMENTS TO TENDER DOCUMENTS .......................................................... 13
CCG23 ADJUSTMENTS TO CLOSING TIME ...................................................................... 13
CCG24 CANCELLATION OF INVITATION TO BID ............................................................. 13
CCG25 BID MAY BE AMENDED .......................................................................................... 13
CCG26 WITHDRAWAL OF BID PRIOR TO TENDER CLOSING ......................................... 13
CCG27 PERMISSION TO WITHDRAW BID AFTER TENDER CLOSING ........................... 13
CCG28 CLOSING TIME FOR BIDS ..................................................................................... 14
CCG29 RECEIPT OF BIDS TO BE RECORDED ON DOCUMENTS ................................... 14
Schedule "B" to AM-3.2.1 Purchasing and Tendering Policy
CCG30 INFORMATION INCLUDED IN BIDS ...................................................................... 14
CCG31 LATE BIDS .............................................................................................................. 14
CCG32 NO BIDS ................................................................................................................. 14
CCG33 EXECUTION OF BIDS ............................................................................................ 14
CCG34 ERRORS IN CONTRACT VALUE ........................................................................... 15
CCG35 WORDS AND NUMBERS DIFFER ......................................................................... 15
CCG36 EQUIPMENT, PRODUCT AND MATERIAL SPECIFICATION AND STANDARD .... 15
CCG37 BID EVALUATION ................................................................................................... 15
CCG38 IDENTICAL BIDS .................................................................................................... 16
CCG39 NOTICE AWARD/REJECTION ............................................................................... 16
CCG40 NOTICE OF AWARD .............................................................................................. 16
CCG41 EFFECT OF BIDS HIGHER THAN THE ESTIMATED CONTRACT VALUE ........... 16
CCG42 BID DEPOSITORY .................................................................................................. 17
CCG43 RULES OF BID DEPOSITORY ............................................................................... 17
CCG44 FORM OF CONTRACT ........................................................................................... 17
CCG45 PAYMENTS UNDER CONTRACT .......................................................................... 17
CCG46 HOLDBACKS .......................................................................................................... 18
CCG47 PAYMENT ON COMPLETION OF THE WORK ...................................................... 18
CCG48 TAXES TO BE PAID ............................................................................................... 18
CCG49 TAXES NOT TO BE PAID ....................................................................................... 18
CCG50 BUILDING PERMITS .............................................................................................. 18
CCG51 CHANGES PERMITTED ......................................................................................... 18
CCG52 RELATIONS OF CONTRACTOR AND SUBCONTRACTOR .................................. 19
CCG53 RELATIONS OF CONTRACTING AUTHORITY AND SUBCONTRACTOR ............ 19
CCG54 REFERENCE TO VENDOR COMPLAINT PROCESS ............................................ 19
CCG55 REFERENCE TO ARCHITECTS & PROFESSIONAL ENGINEERING SERVICES 19
CCG56 E-PROCUREMENT ................................................................................................. 19
Schedule "B" to AM-3.2.1 Purchasing and Tendering Policy
Construction Contract Guidelines
May 18, 2006
Page 1
CCGO1 STATEMENT OF PURPOSE
1.1
These guidelines provide the process for the administration of the Province of
Nova Scotia construction contracts. The objective of these guidelines is to
maintain a high level of confidence in the procurement and contract
administration process by ensuring that bidding is fair, equitable, consistent,
efficient, and undertaken in an open and competitive manner.
1.2
The Province of Nova Scotia Procurement Policy of January 26, 2001, the Atlantic
Procurement Agreement, the Agreement on Internal Trade and Procurement
Services instructions provide the framework within which these guidelines have
been formulated.
1.3
These guidelines are not a substitute for the specifications of a particular project,
but highlight certain fundamental principles of the procurement and contracting
process.
1.4
The guidelines have been developed in consultation with the
Construction Association of Nova Scotia.
1.5
It is intended that these Construction Contract Guidelines will apply to all
construction
procurement
for
government
departments,
agencies,
commissions, school boards and health authorities and are recommended for
use (where deemed appropriate, at the discretion of the Contracting Authority)
by crown corporations, municipalities and academic institutions.
CCGO2 DEFINITIONS
The following definitions may be found in this document or related contract
documents.
2.1
Bid:
An offer submitted in response to an invitation to tender.
2.2
Bid closing time:
The time up to which bids will be accepted and beyond which bids will be
rejected.
2.3
Bidder:
A person, firm or corporation who submits a bid.
2.4
Bidding period:
A time provided to prospective bidders to assemble and submit their bid.
Further defined as the time period between the Invitation to bid and the bid
closing time.
2.5
Bid security:
A promise to pay to the contracting authority its costs of accepting another bid, up
to a limit, specified in the bid document, if it is the contracting authority's intent to
award a contract and the bidder fails to enter into the required contract.
Schedule "B" to AM-3.2.1 Purchasing and Tendering Policy
Construction Contract Guidelines
May 18, 2006
Page 2
2.6
Completion of the contract:
Completion of the contract shall have been reached when the work has been
certified as being complete and any deficiencies documented during the specified
warranty period have been corrected and so certified by the consultant and/or the
contracting authority on behalf of the public sector.
2.7
Completion of the work:
Completion of the work shall have been reached when all construction and all
deficiencies documented at the time of Substantial Performance have been
corrected, and so certified by the consultant and by the contracting authority on
behalf of the public sector.
2.8
Construction:
Construction means a construction, reconstruction, demolition, repair or renovation of
a building, structure, road, bridge or other engineering or architectural work. It does
not include professional consulting services related to the construction contract,
unless they are included in the procurement.
2.9
Construction management contracts:
A contracting strategy wherein the construction manager is responsible to provide
the contracting authority with complete executive and administrative functions
relative to the construction of the project, including the administration of all
contracts entered into as:
2.9.1 Direct agreements between the construction manager and the trade
contractors for various portions of the construction.
2.9.2 Direct agreements between the contracting authority and the trade
contractors.
2.10
Contract price:
The set amount of money considered and agreed to by both parties for the
execution of the work as described in the contract documents.
2.11
Contracting authority:
The public sector body-having authority to enter into a contract on behalf of the
Province of Nova Scotia.
2.12
Contractor:
The contractor is the person, firm or corporation identified as such in the contract.
The team contractor means the contractor or his authorized representative as
designated to the contracting authority.
Schedule "B" to AM-3.2.1 Purchasing and Tendering Policy
Construction Contract Guidelines
May 18, 2006
Page 3
2.13
Design build contracts:
A contracting strategy wherein the contracting authority enters into a contract with a
contractor, who will provide complete design, procurement and construction services
for a specified price.
2.14
Estimated contract value:
The estimated contract value is the total value of the work being tendered as
determined by the contracting authority from a Class A estimate. A Class A
estimate is an estimate that has been prepared, based on a complete set of
tender documents prior to tender call.
2.15
Evaluation criteria:
Evaluation criteria are the methods, standards and measures used to assess the
degree to which a bid has addressed the requirements identified in the invitation to
bid documents.
2.16
Invitation to bid:
An invitation to bid solicits competitive bids. An invitation to bid is used when the
requirement is adequately defined to permit the evaluation of bids against clearly
stated criteria and specifications. The bid document describes the specifications to
be met and the terms and conditions that will apply.
2.17
Irrevocable standby letter of credit:
A form of Bid, Performance, Payment and Warranty Security issued by a certified
financial institution subject to the Uniform Customs and Practices for Documentary
Credits (1993 Revision) International Chamber of Commerce (Publication No. 500),
for a sum as specified in the Invitation to Bid. The Irrevocable Standby Letter of
Credit will remain in effect until the Certificate of Completion of the Contract is
issued.
2.18
Lowest competent bid:
The lowest priced, compliant bid submitted by a responsible contractor or supplier is
deemed the lowest competent bid.
2.18.1 Responsible:
A responsible person, association of persons or body corporate is one
who is capable in all respects to perform the contract.
2.18.2 Compliant:
To be considered compliant, a proposal, bid or offer must meet all
requirements stipulated in the invitation. Bids are deemed to be non-
compliant if they fail to meet any mandatory requirement set out in the bid
solicitation.
2.19
Major change of scope:
Changes in scope of work of 10% or greater, of estimated contract value.
Schedule "B" to AM-3.2.1 Purchasing and Tendering Policy
Construction Contract Guidelines
May 18, 2006
Page 4
2.20
Minor change of scope:
Changes in scope of work of less than 10% of estimated contract value.
2.21
Pre-qualification of bidders:
The process where an open invitation is advertised and conducted for the purpose of
soliciting bidders to submit their qualifications to the contracting authority to be
evaluated and selected to be invited to bid on a tender. The submitted qualifications
are measured against predetermined evaluation criteria and those bidders receiving
a passing grade are invited to bid on the work.
2.22
Public advertisement:
A public advertisement means advertising in the public media with provincial
circulation. In addition, public advertisement includes a notice posted on the Nova
Scotia Procurement Website.
2.23
Public Tenders Office:
Procurement Services administers the bidding process on behalf of Departments,
Agencies, Boards and Commissions, of the Government of Nova Scotia.
2.24
Rejected bid:
A bid that is not considered on the basis that it does not meet the requirements
specified in the Invitation to bid documents.
2.25
Subcontractor:
A subcontractor is a person, firm or corporation having a direct contract with the
contractor to perform a part or parts of the work, or to supply products worked to a
special design according to the contract documents, but does not include one who
merely supplies products not so worked.
2.26
Substantial performance of the work:
Substantial Performance shall- have been reached when the work is ready for use or
is being used for the purpose intended and when the work to be done under this
contract is capable of completion or correction at a cost of not more than two and
one half percent of the contract price as so certified by the consultant and the
contracting authority.
2.27
Supplier:
One who furnishes material not worked to a special design.
2.28
Unit price contract:
A contract whereby both parties agree to carry out the work as described in the
tender documents, based on individual work item unit bid prices.
Schedule "B" to AM-3.2.1 Purchasing and Tendering Policy
Construction Contract Guidelines
May 18, 2006
Page 5
CCGO3 REQUIREMENT TO SOLICIT COMPETITIVE BIDS
3.1 The contracting authority shall invite bids prior to entry into any contract, subject to the
following:
3.1.1 Construction requirements with an estimated value of up to and including
$10,000 will be acquired by departments at competitive prices, in accordance
with procedures established by Procurement Services.
3.1.2 Construction requirements with an estimated value above $10,000 will be
posted on the Nova Scotia Procurement Website. In addition, bids or
proposals may also be invited to ensure an adequate degree of competition.
3.1.3 Construction requirements with an estimated value greater than $100,000 will
be publicly advertised. In addition, bids or proposals may be invited.
3.2 Conditions where alternative procurement practices may be used are identified in the
Province of Nova Scotia Procurement Policy, such as:
3.2.1 An unforeseeable situation of urgency or emergency where the good, service,
or construction requirement cannot be obtained by means of open
procurement procedures.
3.2.2 A situation where tendering could reasonably be expected to compromise
government confidentiality, cause economic disruption, or otherwise be
contrary to the public interest.
3.2.3 To ensure compatibility with existing products; to recognize exclusive rights,
such as exclusive licenses, copyright, and patent rights; or to maintain
specialized products that must be maintained by the manufacturer or its
representative.
3.2.4 Where, for technical reasons, there is an absence of competition, and the
goods or services can be supplied only by a particular supplier and no
alternative or substitute exists.
3.2.5 The procurement of goods or services for which there is a statutory monopoly
that is controlled by a supplier.
3.2.6 The purchase of goods on a commodity market.
3.2.7 Work to be performed on or about a leased building, or portions thereof, that
may be performed only by the lessor.
Schedule "B" to AM-3.2.1 Purchasing and Tendering Policy
Construction Contract Guidelines
May 18, 2006
Page 6
3.2.8 Work to be performed according to the provisions of a warranty or
guarantee.
3.2.9 The procurement of a good or service to be developed in the course of and
for a particular contract for research, experiment, study, or original
development, but not for any subsequent purchases.
3.2.10 The purchase of goods under exceptionally advantageous circumstances
such as bankruptcy or receivership, but not for routine purchases.
3.2.11 The procurement of original works of art.
3.2.12 The procurement of subscriptions to newspapers, magazines, or other
periodicals.
3.2.13 Processes that foster the development of minority businesses.
3.2.14 Processes that foster the development of sheltered workshop programs.
3.2.15 Goods intended for resale to the public.
3.2.16 Goods and services from persons with disabilities, philanthropic institutions,
or through employment equity programs
3.2.17 Services of expert witnesses, specifically in anticipation of litigation or for the
purpose of conducting litigation.
3.2.18 Medical services for persons in the care and custody of the province.
3.2.19 Procurement of goods or services from another level of government.
CCGO4 CONTENT OF TENDER NOTICE
4.1 It shall contain at least the following information:
4.1.1 A brief description of the procurement contemplated.
4.1.2 The place where a person may obtain information and tender documents.
4.1.3 The conditions of obtaining the tender documents.
4.1.4 The place where the bids are to be sent.
4.1.5 The date and time limit for submitting bids.
4.1.6 The time and place of the opening of the bids in the event of a public
opening.
4.1.7 A statement that the procurement is subject to the Atlantic Procurement
Agreement and Agreement on Internal Trade.
Schedule "B" to AM-3.2.1 Purchasing and Tendering Policy
Construction Contract Guidelines
May 18, 2006
Page 7
CCGO5 REGISTRATION REQUIREMENTS
5.1 The successful contractor and subcontractors must comply with the Nova Scotia
Corporations Registration Act or Partnerships and Business Names Registration Act
before a contract is awarded to them by the Minister.
CCGO6 PREQUALIFICATION OF BIDDERS
6.1 Where a contracting authority wishes to pre-qualify bidders before issuing an
invitation to bid for a contract in excess of $10,000, it shall publicly advertise for
bidders to submit their qualification for work of a specified nature for a specific
contract.
6.2 Only those bidders who are deemed as qualified shall be issued tender documents.
6.3 The contracting authority shall not add the name of a bidder to the qualified bidder list
except through the evaluation and acceptance of the bidder's qualification as
submitted in response to the pre-qualification process.
CCGO7 PREQUALIFICATION PROCESS
7.1 The contracting authority may invite interested contractors to submit their
qualifications for evaluation.
7.2 The submissions received are measured against a predetermined set of evaluation
criteria, usually consisting of three areas of interest:
7.2.1 Background information detailing the companies' project history, years in
business, principals of the company and surety information.
7.2.2 Safety qualifications of the firm.
7.2.3 Project specific information, including but not limited to, the contractor's past
experience with similar projects, personnel to be assigned to the project and their
curriculum vitae, approach to conducting the work, and references.
7.3 Each submission will be independently evaluated by a team of three or more
individuals representing the contracting authority. Scores are determined by applying
a predetermined set of evaluation criteria to each qualification submission. Upon
completion of the independent evaluations, the scores are reviewed and an average
score for each section of the submission is determined. The section scores are
totalled and a final score is determined.
Schedule "B" to AM-3.2.1 Purchasing and Tendering Policy
Construction Contract Guidelines
May 18, 2006
Page 8
7.4 If the final score for a qualification submission meets or exceeds a minimum
acceptable score, often 80 out of a possible 100 points, the contractor submitting the
qualification is invited to bid on the construction project.
7.5 A debriefing session is available upon written request to the contracting authority.
CCG08 CONSTRUCTION MANAGEMENT PROCESS
8.1 The contracting authority will engage where appropriate, the services of a design
consultant to prepare the design of the project and to prepare discrete trade package
tender documents.
8.2 The contracting authority will engage the services of a construction manager,
typically through pre-qualification and competitive bidding, or through a 2 envelope
system where the construction manager is evaluated on qualifications and price, to
administer the trade packages and to have overall responsibility for all aspects of the
construction project.
8.3 The contracting authority will tender the trade packages, for competitive bids. The
tender documents will disclose the contract terms between the trade contractor and
the construction manager such as labour relations obligations. The contracting
authority will either:
8.3.1 Assign the successful bidders to the construction manager's contract via
change order. The construction manager then assumes responsibility
for administering the trade contractors.
8.3.2 Enter into direct agreement with the trade contractors and have the
construction manager administer the contract.
CCG09 DESIGN BUILD PROCESS
9.1
The contracting authority may pre-qualify interested design build contractors
and sub-contractors as outlined in CCG7 (prequalification process).
9.2
The selected design build contractors are invited to submit a competitive bid
based on a performance criteria document prepared by the contracting
authority.
9.3
The performance criteria document will include, but not be limited to, the
following information:
The program description for the project.
9.3.1 Specific design requirements to be met.
9.3.2 Specific building system performance requirements to be met.
Schedule "B" to AM-3.2.1 Purchasing and Tendering Policy
Construction Contract Guidelines
May 18, 2006
Page 9
9.3.3 Geotechnical information for the site.
9.3.4 Schedule for the delivery of the completed project.
9.3.5 Adhere to the design review process.
9.3.6 Warranties to be provided for specific building systems.
9.3.7 Specific construction administration requirements, such as processes to be
followed.
9.4 The contracting authority will enter into a contract with the contractor who submits the
most competitive bid that meets all the tender requirements.
9.5 The design builder will be responsible to oversee and co-ordinate the activities of the
prime consultant, sub consultants and all subcontractors that were named in the pre-
qualification submission.
9.6 The contracting authority may consider the option for short listing and providing an
honorarium to the unsuccessful bidders on the short list.
CCG10 UNIT PRICE CONTRACTS
10.1 Each item for which a bid amount is required shall be described in the tender
documents.
10.2 The estimate of quantities of work to be carried out and materials to be furnished will
be as shown on the tender form. These quantities are approximate and the
contracting authority reserves the right to increase, decrease or omit quantities as
required.
10.3 The Tender Bid Form must be completed in full. A unit bid price must be entered, in
both written words and numerals, for each item where a quantity is shown.
10.4 Items may be subject to minimum or maximum unit prices, as described in the
contract documents. Unit bid prices, which are greater than the maximum permitted
for a particular item, will be reduced to the maximum allowable. Unit bid prices, which
are less than the minimum permitted for a particular item, will be increased to the
minimum allowable. The aggregate amount of the tender will be adjusted accordingly.
10.5 Tenders containing unit bid prices that are considered inconsistent with the actual
level of effort or cost of carrying out the work for a particular item are considered
unbalanced. Unbalanced bidding may be reason for rejection.
10.6 Unforeseen work that is not known at the time of tender call must be authorized and
payment provided by one of the following two methods:
Schedule "B" to AM-3.2.1 Purchasing and Tendering Policy
Construction Contract Guidelines
May 18, 2006
Page 10
10.6.1 The contracting authority shall obtain a letter of quotation from the
contractor, containing a unit price or prices for the additional work. Said
prices must be approved by the contracting authority before the work
commences.
10.6.2 An extra work order shall be issued by the contracting authority,
describing the work to be carried out. Compensation for the work shall be
on a cost plus basis.
10.7 If the additional work described in 10.6 is valued at more than 10% of the
original tender value, the additional items of work may be tendered in accordance
with the contracting authorities tendering policy.
CCG11 ESTIMATION OF CONTRACT VALUE
11.1
The contracting authority shall use its best reasonable efforts in the
circumstances to establish the value of the work and have funds approved prior
to invitation to bid. Class A construction cost estimates shall be in accordance
with the Canadian Handbook of Practice for Architects by the Royal
Architectural Institute of Canada.
CCG12 NON-DISCLOSURE OF ESTIMATED CONTRACT VALUE
12.1
The contracting authority will not normally disclose the estimated contract value.
CCG13 QUERIES OF TENDER DOCUMENTS
13.1
Questions relating to the bid document must be directed to the contact person
indicated in the tender documents. Requests for changes or clarifications must
be in writing, and the contracting authority will only be bound by its written
response, which shall be by way of addendum provided to known bidders.
CCG14 INCLUSIVE NATURE OF THE TENDER DOCUMENTS
14.1
Terms and conditions of the contract are as stated in the tender documents.
CCG15 INFORMATION IN THE TENDER DOCUMENTS
15.1
The tender documents shall include the following information:
Schedule "B" to AM-3.2.1 Purchasing and Tendering Policy
Construction Contract Guidelines
May 18, 2006
Page 11
15.1.1 Terms and conditions for submission of bids including:
I. Form on which bids are to be submitted.
II. Bid/Performance/Payment Security Requirements.
III. Information requested to be provided in the bid.
IV. Time and place of bid opening.
V. Acceptability of a bid submitted by facsimile.
15.1.2 Requirement to list the major subcontractors as part of tender submission and
a statement advising bidders that this requirement will be part of tender
evaluation.
15.2
The tender documents will generally include the following information:
15.2.1
Full description of goods or services required.
15.2.2 The bid form, amount, terms and conditions of bid/performance/payment
security.
15.2.3 Requirement that bids are to be submitted on mandatory forms supplied by
the contracting authority.
15.2.4 Requirement that bids are to be without conditions that would modify the
terms of the tender documents.
15.2.5 Completion date or other timing considerations.
15.2.6 Method of calculation of liquidated damages/early completion premium.
15.2.7 Payment terms.
15.2.8 Evaluation criteria.
15.2.9 Name and title of the designated contracting authority contact.
15.2.10 Other relevant information.
CCG16 BID SECURITY/CONTRACT SECURITY
16.1
When the value of a contract is estimated to be:
16.1.1 Equal to, or greater than $100,000, the bid/performance/payment security
shall be bonds on the contracting authorities prescribed forms, irrevocable
standby letters of credit, money order, certified cheques or bank drafts in
amounts specified in the tender documents.
16.1.2
Less than $100,000:
I. Bid security may be required.
II. The performance/payment security shall be provided only by the
successful bidder, after selection but prior to signing the contract.
Contract security shall be either bonds on the contracting authorities
prescribed forms, irrevocable standby letters of credit, money order or
certified cheques in amount specified in the tender documents.
16.2 When a bidder enters into a contract(s) with a subcontractor in an amount of $50,000
or more, the subcontractor will be required to provide contract security to the bidder.
Schedule "B" to AM-3.2.1 Purchasing and Tendering Policy
Construction Contract Guidelines
May 18, 2006
Page 12
16.3 If a bidder is notified of the contracting authorities intent to award a contract and fails
to enter into the contract, the contracting authority may retain the bid security to an
amount required to compensate for the extra costs incurred as a result of the bidder's
failure to enter into the contract up to the limit specified in tender documents.
CCG17 CERTIFICATE OF RECOGNITION PROGRAM - LETTER OF GOOD STANDING
17.1 The Occupational Health and Safety Requirements of all contracts dictate that any
prospective contractors and sub-contractors must meet the minimum standards of the
Province of Nova Scotia. Prior to contract award, at the request of the contracting
authority, the successful bidder must provide:
17.1.1 A certificate of recognition issued jointly by the Workers' Compensation Board
and an occupational health and safety organization approved by the Workers'
Compensation Board. Or
17.1.2 Valid letter of good standing from an occupational health and safety
organization approved by the contracting authority indicating the contractor is in
the process of qualifying for the certificate of recognition. Similarly,
subcontractors must provide certification within the period of time as stipulated
in the tender documents.
CCG18 RETURN OF CONTRACT SECURITY
18.1 Where a deposit held as contract security is no longer required by the terms of the
contract, the contracting authority shall return any unused portion of the deposit to the
contractor.
CCG19 REPLACEMENT OF CONTRACT SECURITY
19.1 Within 10 days of award of contract, the contractor may replace the contract security,
provided the replacement security is in the form of a bond, irrevocable standby letter of
credit, money order, certified cheque or bank draft in the amount specified.
CCG20 CONTRACT INSURANCE
20.1 The contracting authority may require the contractor to provide insurance. The form
and amount of any insurance required shall be defined in the tender documents.
20.2 Where insurance is required, the contractor shall not start work under the contract until
proof of the required insurance has been received by the contracting authority.
Schedule "B" to AM-3.2.1 Purchasing and Tendering Policy
Construction Contract Guidelines
May 18, 2006
Page 13
CCG21 WORKERS' COMPENSATION ACT
21.1 The contracting authority shall require upon request the contractor to furnish evidence
of coverage under the Worker's Compensation Act, R.S.N.S. and a clearance
certificate indicating the contractor, sub contractor(s) and other contractor(s) are in
good standing.
CCG22 AMENDMENTS TO TENDER DOCUMENTS
22.1 Tender documents may be amended by the contracting authority by the issuance of a
written addendum not less than five business days for major changes and three
business days for minor changes before bid closing time.
CCG23 ADJUSTMENTS TO CLOSING TIME
23.1 When an addendum is issued, the closing time shall, where necessary, be adjusted to
reasonably allow bidders to receive the addendum and adequately consider, prepare
and submit their bids, taking into account the impact of the addendum.
CCG24 CANCELLATION OF INVITATION TO BID
24.1 An invitation to bid may be cancelled at any time prior to award of a contract.
CCG25 BID MAY BE AMENDED
25.1 A bidder may amend a bid prior to the closing time.
CCG26 WITHDRAWAL OF BID PRIOR TO TENDER CLOSING
26.1 A vendor who has submitted a bid on a contract may request that the bid be
withdrawn. The withdrawal of a bid will be allowed if the request is submitted in writing
to the place prescribed for the receipt of bids and is received before the bid closing
time. The withdrawal request must be in an appropriate written form on the bidder's
letterhead including the signature of an authorized official. The withdrawal of a bid
does not disqualify a bidder from submitting another bid on that tender call, as long as
the revised bid is received on time. Bid withdrawal requests may be communicated by
post, hand delivery, or by facsimile.
CCG27 PERMISSION TO WITHDRAW BID AFTER TENDER CLOSING
27.1 The contracting authority may, upon receipt of bona fide evidence, permit the
withdrawal of a bid without penalty prior to award if such evidence, in the sole opinion
of the contracting authority, clearly indicates a serious demonstrable error has been
made in the preparation of the bid.
Schedule "B" to AM-3.2.1 Purchasing and Tendering Policy
Construction Contract Guidelines
May 18, 2006
Page 14
CCG28 CLOSING TIME FOR BIDS
28.1 Bid closing time shall be selected to reasonably allow for distribution of the invitations
and the preparation of bids.
28.2 The tendering period for publicly advertised invitations shall be a minimum of 15
calendar days, except where urgency may require a shorter period.
CCG29 RECEIPT OF BIDS TO BE RECORDED ON DOCUMENTS
29.1 The date, time and place of receipt of a bid shall be recorded on the bid envelope or
the facsimile cover sheet as the case may be.
CCG30 INFORMATION INCLUDED IN BIDS
30.1 Bids shall contain the following information:
30.1.1 The bid amount.
30.1.2 An offer to enter into a contract, which may be made by reference to the
tender documents.
30.1.3 The name of the person, firm, or corporation submitting the bid and
authorized signature(s).
30.1.4 A telephone number, facsimile number and address to which notifications may
be sent to the bidder.
30.1.5 Other information or documents requested in the tender documents.
CCG31 LATE BIDS
31.1 The contracting authority shall reject bids received after the closing time.
31.2 Late bids shall be returned to the bidder. In the case of sealed bids, they shall be
returned unopened unless there is no return address on the outside of the envelope,
whereby the envelope will be opened to obtain a return address.
CCG32 NO BIDS
32.1 As a result of a no bid situation the contracting authority reserves the right to negotiate
a construction contract with whomever they deem appropriate.
CCG33 EXECUTION OF BIDS
33.1 A bid shall be signed by the person or persons authorized to make the bid on behalf of
the person, firm or corporation that is submitting the bid.
Schedule "B" to AM-3.2.1 Purchasing and Tendering Policy
Construction Contract Guidelines
May 18, 2006
Page 15
33.2 When specified in the tender documents, amendments to a bid may be submitted by
facsimile transmission.
33.3 Facsimile transmissions indicating amendment to a price, (either an increase or
decrease amount to the price only) a change or withdrawal will be accepted up to bid
closing in accordance with the requirements of the Public Tenders Office.
33.4 Amendments must be signed on behalf of the bidder, by a person with signing
authority.
33.5 A written bid shall be submitted in an envelope which clearly identifies it as a bid
submitted in response to the invitation to bid.
33.6 Bids and security must bear original signatures.
33.7 Public Tenders Office time calculation will govern.
CCG34 ERRORS IN CONTRACT VALUE
34.1 Where unit prices are requested and the bid contains an error in calculating the bid
amount, the aggregate of the products of estimated quantities and respective unit
prices shall prevail.
CCG35 WORDS AND NUMBERS DIFFER
35.1 Where the bid is requested in both words and numbers, and the two do not
represent the identical amount, words shall prevail.
CCG36 EQUIPMENT, PRODUCT AND MATERIAL SPECIFICATION AND STANDARD
36.1 Specification and standards shall not be used for the sole purpose of limiting
competition.
CCG37 BID EVALUATION
37.1 The contracting authority will evaluate the bid based on the criteria outlined in the
bid documents and shall be conducted in accordance with the contracting
authorities' procurement policy and process.
Schedule "B" to AM-3.2.1 Purchasing and Tendering Policy
Construction Contract Guidelines
May 18, 2006
Page 16
CCG38 IDENTICAL BIDS
38.1 Where two or more bids are identical, the successful bidder shall be selected by a
coin toss by the contracting authority in the presence of the identical bidders.
CCG39 NOTICE AWARD/REJECTION
39.1 After the contracting authority has accepted a bid, the successful bidder will be
notified in writing and the bid security of the unsuccessful bidders will be returned.
The departmental contact person on the tender document is responsible for the
return of bid security.
39.2 Notices of award and rejection will be in writing.
CCG40 NOTICE OF AWARD
40.1 The notice of award constitutes a binding letter of acceptance and obligates the
contractor to begin the work and sign the formal contract documents. Prior to
beginning on-site work, all post tender documentation must be received to the
satisfaction of the contracting authority.
CCG41 EFFECT OF BIDS HIGHER THAN THE ESTIMATED CONTRACT VALUE
41.1 Where all bids submitted in response to an invitation to bid are higher than the
estimated contract value, bids shall not necessarily be invalidated for this reason.
41.2 If the lowest competent bidder is within 15% of the estimated contract value, the
contracting authority may choose to:
41.2.1 Award the contract for the bid amount.
41.2.2 Negotiate changes in the scope of work with the lowest competent bidder
(Within the framework of the original tender call, including all sub contractors
listed) to achieve an acceptable contract price. If negotiations fail, the
contracting authority can make changes to the scope of work and re-tender the
work or invite the three lowest competent bidders to re-bid the work.
41.3 If the lowest competent bidder is greater than 15% over the estimated contract
value, the contracting authority may choose to:
41.3.1 Award the contract for the bid amount.
41.3.2 Make major changes to the scope of work (10% of estimated contract value or
greater) and re-tender the work.
Schedule "B" to AM-3.2.1 Purchasing and Tendering Policy
Construction Contract Guidelines
May 18, 2006
Page 17
41.3.3 Make major changes to the scope of work (10% of estimated contract value or
greater) and invite the three lowest competent bidders to re-bid. If invited bids
fail to bring a bid to within 15% of the estimated contract value and subject to
confirmation of the contracting authorities' budget, the contracting authority
may take whatever action, which in its opinion will result in an acceptable
contract price.
41.3.4 Make minor changes to the scope of work (less than 10% of the estimated
contract value) and negotiate changes with the lowest competent bidder to
achieve an acceptable contract price.
CCG42 BID DEPOSITORY
42.1 The bid depository of Nova Scotia system of bid collection administered by the
Construction Association of Nova Scotia, or another system approved by the
contracting authority may be used for subcontract classifications as applicable to the
project provided that in the opinion of the contracting authority:
42.1.1 The process does not unduly limit the number of prime or trade bidders. 42.1.2
The potential for interference with free market forces is minimal compared to
benefits to be achieved.
42.2 When the bid depository is used, it will apply to the following:
42.2.1 Conventional general contract bids for projects with an estimated value of
$1,000,000 or greater.
42.2.2 Trade sections where the estimated value of the work of the trade section is
equal to or greater than 10% of the estimated value of the project based on the
contracting authority's estimates.
42.2.3 Any other trade section, which in the opinion of the contracting authority
constitutes a critical element of work and merits inclusion.
CCG43 RULES OF BID DEPOSITORY
43.1 The rules of the bid depository shall apply subject to any amendments provided by
the contracting authority as permitted by the bid depository rules.
CCG44 FORM OF CONTRACT
44.1 The contract form shall be the standard form used by the contracting authority, or a
form acceptable to both parties under the contract.
CCG45 PAYMENTS UNDER CONTRACT
45.1 The contract shall provide the basis on which payments under the contract will be
made.
Schedule "B" to AM-3.2.1 Purchasing and Tendering Policy
Construction Contract Guidelines
May 18, 2006
Page 18
45.2 Proof of payment to subcontractors and suppliers is required and will be in the form
of a Province of Nova Scotia approved statutory declaration provided by the general
contractor.
45.3 Progress payments may include compensation for the value of Products delivered
and stored on the Place of the Work provided as outlined in the bid documents.
CCG46 HOLDBACKS
46.1 The contracting authority will maintain holdback funds in accordance with the
Builders' Lien Act. The Builders' Lien Act provides that where the Province of Nova
Scotia is the owner of a property, the claim for lien may only be served upon the
Minister of Justice.
CCG47 PAYMENT ON COMPLETION OF THE WORK
47.1 Upon completion of the work according to its requirements, and following receipt of
any statutory declarations, the contracting authority shall release all funds due and
payable to the contractor, with the exception of any holdbacks properly retained.
CCG48 TAXES TO BE PAID
48.1 Taxes, which are the responsibility of the contractor, will be defined in the tender
documents.
CCG49 TAXES NOT TO BE PAID
49.1 The contracting authority will indicate in the tender documents whether or not taxes
are applicable to all or part of the work and the method of calculation and recording.
CCG50 BUILDING PERMITS
50.1 Municipal building permits are not required on projects unless stipulated by the
contracting authority.
CCG51 CHANGES PERMITTED
51.1 Nothing in these guidelines shall prohibit the contracting authority from issuing
change orders to accommodate changes in scope, schedule or price of the contract.
The value of such changes will be in accordance with the terms and conditions of
the contract.
Schedule "B" to AM-3.2.1 Purchasing and Tendering Policy
Construction Contract Guidelines
May 18, 2006
Page 19
CCG52 RELATIONS OF CONTRACTOR AND SUBCONTRACTOR
52.1 The contractor must bind every subcontractor to the terms and conditions of the
standard form of contract between the Minister and contractor, as far as applicable
to the subcontractor's work.
CCG53 RELATIONS OF CONTRACTING AUTHORITY AND SUBCONTRACTOR
53.1 Nothing in these guidelines or terms and conditions of the contract shall create
contractual relations between the subcontractor and the contracting authority.
CCG54 REFERENCE TO VENDOR COMPLAINT PROCESS
54.1 Vendor complaints must follow the format in the Vendor Complaint Process Guide
located on the Procurement website: www.gov.ns.ca/tenders
CCG55 REFERENCE TO ARCHITECTS & PROFESSIONAL ENGINEERING SERVICES
55.1 Proposals for Architects & Professional Engineering Services will be based on the
guidelines located on the Procurement website: www.gov.ns.ca/tenders.
CCG56 E-PROCUREMENT
56.1 Bidders who obtain the RFC and/or associated documents by electronic means or
who convert the printed document to electronic media must not alter any portion of
the document, with the exception of adding the information requested.
56.2 Bidders must follow and adhere to the General Instructions to Bidders as it relates to
electronic procurement located at the Procurement website: www.gov.ns.ca/tenders.
Schedule "B" to AM-3.2.1 Purchasing and Tendering Policy
Nova Scotia Model Policy Manual for Municipalities Chapter 22: Purchasing and Tendering Policy
Editors Annotations April 2012
Purchasing and Tendering Policy
Editor's Annotations
Enabling Legislation
The Public Procurement Act, R.S.N.S. 2011, c. 12 (the "Act") governs the procurement
practices of all municipalities in Nova Scotia. The Act and Regulations under the Act
contain a fairly comprehensive set of requirements that all municipalities must follow. The
Act has three primary purposes, outlined at s. 2:
(a) provide for the procurement of goods, services, construction and facilities by public
sector entities in a fair, open, consistent and transparent manner resulting in best
value;
(b) encourage competition, innovative ideas and solutions while respecting trade
agreement obligations;
(c) promote sustainable procurement in procurement decisions including identifying and
exploring opportunities to work with and support social enterprises and businesses
that are owned by and who employ under-represented populations.
Many municipal units have purchasing and tendering policies in place; however, pursuant
to s. 8(2)(a) of the Act, municipalities are required to adopt or adapt their procurement
policies to conform with the Public Procurement Act. Under s. 8(2)(b) of the Act, the
provincial Government's Sustainable Procurement Policy will be deemed to apply to all
municipalities that do not have policies in place that conform with the Act by May 19, 2012.
Municipal units are also bound by certain regional, national and international trade
agreement obligations, including the Agreement on Internal Trade and the Atlantic
Procurement Agreement.
Municipal units are also required to ensure that their public tender notice complies with all
legislation affecting the scope of the tender pursuant to s. 14(3) of the Public Procurement
Act. Under s.14(2) of the Act, the terms and conditions of every public tender notice must
be consistent with the Atlantic Standard Terms and Conditions for the procurement of
goods and services and Construction Contract Guidelines for the procurement of
construction.
Under s.15(1) of the Act, municipal employees are required to ensure that their
procurement activities are conducted according to the policies of the municipality, provincial
and federal legislation, trade agreements, and ethical business practices.
Municipalities are encouraged to consult the AMANS - NSMFC - FMCBC Recommended
Practice: Purchasing Policy (Approved 2008), available on the website of the Association of
Municipal Administrators at:
http://www.amans.ca/index.php?option=com_docman&task=search_result&Itemid=59
Also, under the Act there is a Procurement Advisory Group, and it is anticipated that this
Group will be putting together template tender and Request for Proposal documents,
contracts and other procurement documents to assist municipalities. This material should
be available through Service Nova Scotia and Municipal Relations.
Schedule "B" to AM-3.2.1 Purchasing and Tendering Policy
Important Notice
The reader is cautioned that editorial and drafting choices involve interpretation of the law.
Municipal units should consult with their own legal advisors before relying upon and
applying to their own circumstances, the comments or drafts contained in this Manual.
Comment
Particular care should be taken to obtain legal counsel regarding any departure from
accepted wordings in public tender documents, or regarding unconventional or casual
practices in awarding tenders.
The model Policy is drafted to be consistent with the Public Procurement Act and the
terms and principles from the Act.
Section 3 of the model Policy states that the Policy applies to all procurement by the
Municipality, and to all procurement by certain boards or agencies that receive funding
from the Municipality. The only exceptions are for purchases that the Municipality
makes from an organization that the Municipality owns or controls, or for construction
projects where the Municipality has hired a third party construction management
company that has responsibility for managing the procurement process for the project.
Section 4 of the model Policy states the underlying principles to be used in
procurement activities by the municipal unit. The principles are intended to ensure
public confidence in the honesty of the process, the fairness of treatment of competing
suppliers, the obtaining of the best value for municipal tax dollars expended on
procurement and other factors such as compliance with environmental objectives and
compliance with free trade agreements (within Canada). The principles are intended
to apply to all transactions.
Section 4(3) of the model Policy provides that municipalities engaging in procurement
should be doing so with a view to encouraging competitive bidding where possible,
minimizing the cost of acquiring goods and services while obtaining best value. Best
value pursuant to s. 2(2) of the model Policy means "evaluating bids not only on
purchase price and life cycle cost considerations, but also taking into account items
such as environmental and social considerations, delivery, servicing and the capacity
of the supplier to meet other criteria as stated in tender documents".
Section 5 of the model Policy sets out the obligations of employees involved in
procurement on behalf of the Municipality as required by the Public Procurement Act.
Section 7 to 10 of the model Policy details a sample hierarchy of procurement
practices depending on the value of the goods and services being purchased. All of
the dollar figures are used for illustration and may be varied by Council as there are
no specific requirements under the Municipal Government Act or the Public
Procurement Act. In reading these sections, it is important to consider the definitions
in section 2 and the guidelines in s. 12 - 20 for details of the procurement procedures.
The more elaborate and expensive processes such as public tender (which includes
either a request for proposals or a traditional tender) are reserved for the most
expensive purchases. For other purchases of lesser value, a variety of processes,
including price agreements, multi-municipal supply programs, and request for
quotations are recommended.
Schedule "B" to AM-3.2.1 Purchasing and Tendering Policy
Section 18 of the Policy outlines "alternative procurement practices", circumstances in
which the normal procurement practices in s. 7 to 10 may be departed from. These
exceptions include emergency purchases (described at s. 18(1)(a)), and are designed
to achieve beneficial outcomes, not to provide a means to circumvent the intent of the
Policy. Accordingly, the principles in s. 4 continue to apply to transactions which are
exempt from normal practice.
The model Policy provides requirements in s. 19 for all public tenders, whether
traditional tenders, requests for proposals or two-phase bids.
Section 20 of the model Policy provides for a debriefing of an unsuccessful bidder in a
public tender at the request of the unsuccessful bidder to provide feedback. A
debriefing procedure is required by s. 17 of the Public Procurement Act.
Granting a local preference when awarding a tender must comply with s. 13(1) and (2)
of the Public Procurement Act which is reflected in s. 21 of the model Policy. Under s.
13(1) of the Public Procurement Act, municipalities may apply a purchasing
preference for goods valued up to the thresholds of the Atlantic Procurement
Agreement, which are manufactured or produced in the Province. Section 21 of the
model Policy requires Municipal staff or Council to give preference to purchasing
goods and services from local businesses and sets out suggested guidelines for doing
so.
Under s. 22 and 23 of the model Policy, municipalities are encouraged to adopt
sustainability criteria when making their purchase decisions and considering which
goods or services offer best value to the municipality. Municipalities are encouraged
to consider environmental, social and economic considerations.
The model Policy contemplates the municipality setting up a Supplier Registry at s.
24. This ensures that businesses will have an opportunity not to be overlooked when
the municipality makes major purchases. Typically, local businesses would be more
aware of the Registry than outside businesses, and the use of a Supplier Registry is
likely to be welcomed by the local business community. Under the model Policy
wording in s. 25, only Council may strike an unsatisfactory supplier from the Registry.
Note that s. 24 and 25 are strictly optional, and if a municipality decides to adopt a
Supplier Registry, it must ensure that it applies adequate resources and attention to
properly maintain it. While a Supplier Registry could be useful, there is a risk that a
supplier who is struck from the Registry could take legal action against the
Municipality. Municipalities are therefore cautioned to seek the advice of their solicitor
before including these provisions in their Policy.
Section 32 of the model Policy requires that a copy of the municipality's Purchasing
and Tendering Policy be posted on the municipality's website as required by the
Public Procurement Act.
Section 33 is included to add some protection to municipalities in situations where the
Municipality has inadvertently not complied with some aspect of the Policy, and faces
legal action by an unsuccessful supplier.
The Chapter number in the Policy title bar should be replaced by each municipal unit
with the Chapter number it assigns to this Policy.