Admin Policy #2018-05 Purchasing and Procurement Policy
Digby, Nova Scotia
· adopted 2018-04-03
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CLASSIFICATION: General Government - Finance
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pg. 1 Administrative Policy # 2018-05 Purchasing and Procurement Policy
Administrative Policy # 2018-05
Purchasing and Procurement Policy
1. Purpose:
To provide guidelines for the purchasing and procurement of all goods and services
for the Town of Digby based on sound management and public procurement
practices. Procurement methods shall be open, fair, transparent and consistent, while
being both efficient and effective; procurement methods should reflect the need to
make timely decisions and make best use of staff time to reach defendable
procurement decisions.
To establish a more efficient and cost effective method of procuring and paying for
low dollar value, high volume goods and services, as well as, travel expenses,
registrations and other corporate affiliated expenses, while maintaining acceptable
levels of controls and accountability.
2. Scope:
This Policy is applicable to the Town Council and all Town of Digby employees involved
in the procurement process and applies to all procurement and purchasing activity of
the Town of Digby,
3. References:
Nova Scotia Municipal Government Act
Public Procurement Act
4. Authority:
Section 67 of the Municipal Government Act states that "Where an Act of the
Legislature authorizes or directs a municipality to make an expenditure enter into a
contract or guarantee or take action as a result of which it may be required to pay
money, the sums required are for the ordinary lawful purposes of the municipality".
CLASSIFICATION: General Government - Finance
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pg. 2 Administrative Policy # 2018-05 Purchasing and Procurement Policy
Section 65 of the Municipal Government Act authorizes the Council of the Town to
expend money required for service delivery by the Town.
Section 31 (2) (d) (i) of the Municipal Government Act gives authority to the Chief
Administrative Officer subject to policies adopted by the council to make or authorize
expenditures, and enter into contracts on behalf of the municipality, for anything
required for the municipality where the amount of the expenditure is budgeted or
within the amount determined by the council by policy, and may delegate this
authority to employees of the municipality,
Section 4 of the Public Procurement Act applies to public sector entities acquiring and
suppliers providing goods, service, construction and facilities.
5. Definitions:
"Town" means Town of Digby.
"Council" means the Council of the Town of Digby
"Chief Administrative Officer" means the Chief Administrative Officer of the Town of
Digby
"Department Head" means a Director, or a Designate appointed as Department
Head by the Chief Administrative Officer.
"Low Value Procurement Thresholds" means expenditures that do not exceed; Goods
Greater than twenty-five thousand dollars ($25,000), Services Greater than fifty
thousand dollars ($50,000), and Construction Greater than one hundred thousand
dollars ($ 100,000),
"High Value Procurement Thresholds" means expenditures that exceed; Goods
Greater than twenty-five thousand dollars ($25,000), Services Greater than fifty
thousand dollars ($50,000), and Construction Greater than one hundred thousand
dollars ($ 100,000),
"Immediate Expenditure Condition" means a condition that was not foreseen at a
preceding Council meeting and which, in the CAO's reasonable judgement, requires a
decision to be made:
o before the next scheduled Council meeting, in the case of expenditures
aggregating $50,000 or less; and
o before an emergency meeting of Council can practically be convened, in other
cases.
CLASSIFICATION: General Government - Finance
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pg. 3 Administrative Policy # 2018-05 Purchasing and Procurement Policy
"REMO Emergency Expenditure" means an unbudgeted expenditure during REMO
operations where the Digby Emergency Coordination Centre (ECC) has been activated
or State of Local Emergency declared in accordance with the Regional Emergency
Management Bylaw and /or the Emergency Management Act.
6. Objectives:
The Town of Digby is committed to:
o Providing for the procurement of goods, services, construction and facilities in
a fair, open, consistent, and transparent manner resulting in best value.
o Encouraging competition, innovative ideas and solutions, while respecting all
Legislative and Trade Agreement obligations.
o Promoting sustainable procurement in procurement decisions, including
identifying and exploring opportunities to work with and support social
enterprises and business that are owned by and who employ under-
represented populations.
o Ensuring that qualified suppliers have equal opportunity to bid on the Town of
Digby's procurement activity.
o Being accountable for procurement decisions.
7. Policy Statement:
The Chief Administrative Officer (CAO) of the Town of Digby is responsible for ensuring
compliance with this policy.
All Town of Digby personnel who have responsibility for the procurement of goods,
services, construction, or facilities must adhere to this policy. Failure to adhere may
result in temporary or permanent loss of procurement privileges or in more extreme
cases result in disciplinary action and/or dismissal.
8. Purchasing Authority:
The Chief Administrative Officer is authorized to make contracts for the acquisition of
goods, services, and construction required for carrying on the business of the Town,
where the amount of contracted expenditure does not exceed, in any one case, the
sum of fifty thousand dollars ($50,000) and where such expenditure does not exceed
the budget allocation by 10%.
The Chief Administrative Officer is authorized to make decisions on purchases and
expenditures under an "Immediate Expenditure Condition" and/or a "REMO
CLASSIFICATION: General Government - Finance
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pg. 4 Administrative Policy # 2018-05 Purchasing and Procurement Policy
Emergency Expenditure". The Chief Administrative officer shall report purchases or
expenditures made under an "Immediate Expenditure Condition" and/or a "REMO
Emergency Expenditure" to Council at the next Council Meeting immediately
following the purchase or expenditure for Council approval.
A Director is authorized to make contracts for the acquisition of goods, services, and
construction required for carrying on the business of the Town, where the amount of
contracted expenditure does not exceed, in any one case, the sum of twenty thousand
dollars ($20,000) and where such expenditure is within the budget allocation.
Designates may be appointed by Directors to purchase within their respective
Departments, except that the expenditure by such designate shall not exceed, in any
one case, two thousand five hundred dollars ($2,500) and where such expenditure is
within the budget allocation. Written documentation from each Director must be
forwarded to the Director of Finance listing delegates for each department and the
purchasing limits for each designate.
The Chief Administrative Officer must first approve any person designated by a
Director to purchase on behalf of the Department as well as the dollar limit on such
purchasing by the designate.
Where a Department has no Director the Chief Administrative Officer may appoint
and approve a designate as Department Head to purchase within their respective
Departments, except that the expenditure shall not exceed in any one case, the dollar
limit approved by the Chief Administrative Officer. Written documentation from the
Chief Administrative Officer shall be supplied to the Director of Finance listing the
designate, and the department and the purchasing limits.
Purchases in Excess of Fifty thousand dollars ($50,000) are subject to the approval by
Town Council.
All dollar threshold references are to be values excluding tax.
9. Procedures:
It shall be the responsibility of the Chief Administrative Officer, through the Director
of Finance to ensure that all purchases by the Town are for approved Town of Digby
use, cost-effective and are carried out in accordance with this policy statement and
legal requirements.
CLASSIFICATION: General Government - Finance
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pg. 5 Administrative Policy # 2018-05 Purchasing and Procurement Policy
Department Heads shall be responsible for the purchase of goods, services, and
construction for their respective Departments, subject to the procedures as set out
within this policy and its appendices.
Subject to the specific sections of this policy, where possible, all requirements are to
be purchased on a competitive basis.
Consistent with the stated objectives, all purchases made on a competitive basis shall
be made at the lowest possible cost, provided the quality, delivery, and service are
equivalent. Past performance is an important consideration Factor.
Department Heads shall consolidate and standardize items used within their
respective Departments and the Chief Administrative Officer shall encourage the
overall standardization of items used by the Town.
When one or more Department requires similar goods, services and construction, the
purchase of such goods, services and construction shall be combined to achieve the
most cost effective acquisition possible.
When significant cost savings may accrue to the Town, consideration should be given to
coordinating purchase of common goods, services and construction with other levels of
government.
Every effort shall be made to ensure that specifications used to obtain bids shall be
clear, concise and fair.
Each Department shall maintain a list of suppliers/vendors capable of providing
goods, services and construction used on a regular basis.
The Purchasing Authority shall ensure that, wherever possible and economical,
specifications are prepared to provide for the expanded use of products and services
that contain the maximum level of post-consumer recyclable waste and/or recyclable
content, without significantly affecting the intended use of the products or service.
Acquisitions, which are to be leased, shall be acquired using the same procedures as
if they were being purchased outright. The value to be considered for the purpose of
applying the procedures shall be the value of the item(s), not the lease payments. All
lease documents shall be coordinated through the Director of Finance, who shall
CLASSIFICATION: General Government - Finance
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pg. 6 Administrative Policy # 2018-05 Purchasing and Procurement Policy
analyze the lease as to its treatment and authorize the lease documents on behalf of
the Town of Digby.
Certain goods or services or construction, that meet the needs of the Town, may only
be provided by one supplier and therefore, the cost of tendering may be redundant.
Negotiation is the method of purchase used to complete the terms and conditions for
this purchase. Council approval is required to initiate this procedure.
Purchasing Authorities shall maintain a file system that records proof of verbal and
written quotations and bids.
10. Purchase Tools:
There are several means by which the purchasing of goods, services and construction may
occur. The following shall be the acceptable means of purchase, along with details on the
criteria. Controls for each method of procurement are included as appendices to this
policy.
Petty Cash Criteria (also -Petty Cash Controls- Appendix A)
These criteria are designed to ensure that purchases are for approved Town of Digby use,
cost-effective and in compliance with the Town of Digby Purchasing and Procurement
Policy and legal requirements.
As a general rule, a petty cash fund of no more than $500 shall be kept by the
Finance Department, the amount to be subject to the approval of the Chief
Administrative Officer.
A petty cash custodian shall be designated by the Director of Finance. This
custodian shall be responsible for the petty cash fund, its replenishment and
preparing year-end documents related to the funds held.
Expenditures from a petty cash fund shall be for miscellaneous items and shall
not exceed, in any one case, One Hundred dollars ($100.00).
Purchase Orders Criteria (also -Purchase Order Controls- Appendix B)
These criteria are designed to ensure that purchases are for approved Town of Digby use,
cost-effective and in compliance with the Town of Digby Purchasing and Procurement
Policy and legal requirements.
Generally a purchase order serves as a supporting document for a purchase,
identifies the purchasing authority and indicates that funds have been committed
for a purchase.
CLASSIFICATION: General Government - Finance
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pg. 7 Administrative Policy # 2018-05 Purchasing and Procurement Policy
Purchase orders shall be required for all purchases over One Hundred dollars
($100.00) and are issued to authorize the vendor to supply the goods or services.
This is one tool to finalize the bid process for goods and services.
A purchase order will be obtained and approved by the Purchasing Authority
before any order for construction, facilities, goods or services is placed. In case of
emergency approval shall be obtained as soon as possible thereafter.
Purchase orders shall be fully completed and an accurate estimate of the cost is
to be given.
Some purchases involve payments of a recurring nature, therefore, after the initial
purchase order subsequent purchase orders are not required. They are also not
required for legislated mandatory contributions to the Province of Nova Scotia or
other levels of government.
Purchase Orders are not required when there are a number of purchases of less
than $100 in value in each transaction made at local businesses where charge
accounts are maintained and submit a monthly statement to the Town for
payment. However the Department Heads shall review, and sign the monthly
statements from the suppliers, to verify price and receipt of goods.
The original copy of the purchase order shall be forwarded to the vendor, the
second copy shall be matched with the invoice when received and the Department
shall retain the third copy. The purchase order shall be signed by the proper
authority depending on the cost of the goods acquired, as outlined in the
"PURCHASING AUTHORITY" section of this policy.
The purchase order shall describe the goods and/or services and/or construction,
the account to be charged, the terms and conditions and shall be priced and
extended as to total cost.
"Standing" Purchase Orders shall be required yearly for goods or services supplied
to the Town of Digby on a continual basis. These shall be prepared in April of each
year. A statement should be written on each standing purchase order that
indicates that the "continual purchase is subject to satisfactory pricing and quality
of goods or service"
CLASSIFICATION: General Government - Finance
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pg. 8 Administrative Policy # 2018-05 Purchasing and Procurement Policy
If, for urgent reasons, immediate acquisition is necessary and it is not possible to
deliver a purchase order prior to acquisition, a purchase order will be issued and
marked "confirmation".
A purchase is not to be split into multiple purchase orders to avoid the intent of
this policy and/or avoid procedures required for the threshold values defined in
this policy.
Purchase orders are not required where petty cash accounts may be maintained.
Petty cash is for minor purchases which typically are of an immediate nature. Petty
cash purchases are not to exceed the amount set in the Petty Cash Criteria Section
of this Policy, except for in emergency situations, and approved by the CAO.
Purchasing Cards
The Town of Digby is committed to:
Reducing the cost of the procuring and paying for low dollar value goods, services,
and travel expenses by reducing the number of small orders and invoices
processed and the number of cheques issued.
Eliminating the issuance of travel and cash advances in addition to separate
payments or registration fees, transportation costs, and accommodations.
Maintain the existing levels of discounts negotiated with suppliers for prompt
payment by providing a more efficient payment process.
Streamline administrative functions and reduce the time spent by departments
processing payments.
Maintain an acceptable level of accountability and safekeeping of the Town of
Digby's assets by setting appropriate limits and restrictions on the use of cards.
Purchasing Cards Criteria (Also -Purchasing Cards Controls-Appendix C)
These criteria are designed to ensure that purchases are for approved Town of Digby use,
cost-effective and in compliance with the Town of Digby Purchasing and Procurement
Policy and legal requirements.
Bank Cards
Six bank credit cards currently exist issued to the Mayor, the Chief
Administrative Officer, the Director of Finance, the Executive Assistant, the
CLASSIFICATION: General Government - Finance
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pg. 9 Administrative Policy # 2018-05 Purchasing and Procurement Policy
Director of Public Works and the Public Works Forman to improve the cost-
effectiveness of purchases and to reduce the administrative burden.
Notwithstanding the above the Chief Administrative Officer shall use
discretion in the number of cards in use at the Town of Digby. The Chief
Administrative Officer shall review the nature of the positions which have or
may require cards, and the requirements of their respective departments.
Bank cards may be used for travel/discretionary spending purposes of the
Cardholder, as allowed in the Town of Digby policies and operating budgets.
Original receipts for these types of travel/discretionary purchases shall be
attached to the credit card statement when presented to Finance for payment.
No purchase order is required for travel/discretionary purchases where such
expenditure is within the budget allocation.
Bank Cards may be used for procuring both goods and services for the Town
of Digby.
A purchase order shall be requisitioned prior to the ordering of the goods and
duly approved by the Department Head. This shall ensure that Department
Heads are fully aware of all expenditures within their respective department.
Disputed items are purchases that do not accurately reflect the transactions
made by the cardholder (e.g. wrong amount, incorrect account number,
multiple postings, etc.) The cardholder shall be responsible for reporting these
as soon as possible to the Director of Finance.
Problems with merchants relating to unsatisfactory goods, late delivery,
changes from quoted process, etc. Shall not be considered disputed items and
shall be settled directly with the vendor by the buyer. In the event the goods
are to be returned to the supplier, the cardholder shall request a Return
Confirmation Number from the supplier along with return instructions and
forward the goods back to the supplier in accordance with these instructions.
All credits must be processed against the bank card; under no circumstances
shall a cash refund be permitted.
Fleet Fuel Cards
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pg. 10 Administrative Policy # 2018-05 Purchasing and Procurement Policy
The Town of Digby has Fleet Fuel Cards that are supplied to the Public Works
Department and Fire Department, to improve the cost-effectiveness of
purchases and to reduce the administrative burden.
No purchase order is required for purchases on a Fleet Fuel Card.
A Fleet Fuel Card purchases are limited to fuel and petroleum products.
A separate Fleet Fuel Card is assigned to each applicable Town owned vehicle.
The Director of Public Works and the Fire Chief shall be responsible approve
the purchases on Fleet Fuel Cards of their respective departments before
submitting the original receipts to Finance for payment.
Local Vendor Credit Accounts Criteria
These criteria are designed to ensure that purchases are for approved Town of Digby use,
cost-effective and in compliance with the Town of Digby Purchasing and Procurement
Policy and legal requirements.
The Town of Digby has several credit accounts with local vendors.
These local vendors bill the town on a monthly basis, for numerous small value
purchases.
A Standing Purchase Order shall be required as per the Purchase Order Criteria
Section of this Policy for purchases from a local vendor that has an approved
credit account with the Town of Digby.
On-line Payments Criteria
These criteria are designed to ensure that purchases are for approved Town of Digby use,
cost-effective and in compliance with the Town of Digby Purchasing and Procurement
Policy and legal requirements.
The Town of Digby has many recurring purchases that can be paid by either direct
debit or E-Transfer.
These payments can only be executed by the Finance Department.
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pg. 11 Administrative Policy # 2018-05 Purchasing and Procurement Policy
On line payments are subject to a Standing Purchase Order approved by the Chief
Administrative Officer.
11. Purchasing Process:
There are four levels of purchasing which must be observed to ensure that the Town
acquires goods, services and construction in the most cost-effective manner.
Informal purchasing
Invitational bids
Public (advertised) tenders
Emergency acquisition
Informal Purchasing
Where expenditures do not exceed, in any one case, seven hundred fifty dollars ($750),
formal price comparisons are not necessary but may be appropriate from time to time to
ensure that the Town is getting the best value for the dollar. Where the value of the goods
and services to be purchased is between $ 751 and $4,999, three verbal quotations shall be
sought and written record kept. It has been the practice of Town of Digby to patronize local
suppliers as much as possible for informal purchasing.
Invitational Bids
Where expenditures are more than five thousand dollars ($5,000), but do not exceed:
Goods Greater than twenty-five thousand dollars ($25,000),
Services Greater than fifty thousand dollars ($50,000),
Construction Greater than one hundred thousand dollars ($ 100,000),
in any one case, at least three known suppliers (including all known local suppliers) shall be
invited (by written invitation) to submit a quote for the supply of the goods or services.
Specifications
The Department Head shall prepare specifications for the goods or services or construction
to be acquired by invitation and shall prepare the letter of invitation.
Invitational Bid Evaluation
All bids are subject to evaluation after opening and before award of contract. The bid request
documents must clearly identify the requirements of the procurement, the evaluation
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pg. 12 Administrative Policy # 2018-05 Purchasing and Procurement Policy
method, evaluation criteria based on the purpose and objectives of this policy, and the
weights assigned to each criterion.
Invitational Bid Award
It shall be customary to award to the bidder of the lowest price meeting the specifications.
However, the Town reserves the right to make an award for reasons deemed to be in its best
interest. An award shall not be made in any circumstances to a firm that did not submit a bid
on an invitational bid call.
Public Tenders
Where expenditures exceed:
Goods Greater than twenty-five thousand dollars ($25,000),
Services Greater than fifty thousand dollars ($50,000),
Construction Greater than one hundred thousand dollars ($ 100,000)
In any one case, public tenders shall be solicited through public advertisement in
accordance with the "PUBLIC TENDER PROCESS" section of this policy.
All procurement activity with a procurement value over the thresholds (excluding
taxes) outlined above must be obtained through a public tender, which may be
preceded by a request for qualifications or request for expressions of interest. See
Appendix E of this policy for an outline of tools available for public tender. The only
exception to this would be when Town of Digby personnel are using an Alternative
Procurement Circumstance, or are accessing a publicly tendered standing offer.
Emergency Acquisition
Notwithstanding any of the above in Section 11, in the case of an emergency, where public
safety is at risk and/or where the delay resulting from inviting tenders or bids would be
injurious to the public interest and/or the Town's assets, the Chief Administrative Officer may
approve the purchase and report it to the Council at the earliest date thereafter.
12. Public Tender Process
Council Approval
An invitation to tender or a public tender call shall only be made if the goods, services or
construction have been budgeted for or otherwise approved by Town Council.
Specifications
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pg. 13 Administrative Policy # 2018-05 Purchasing and Procurement Policy
The Department Head shall prepare specifications for the goods or services or construction
to be acquired by tender and prepare the advertisement.
Tender Documents
Tender documents shall include the following:
Form of "Instructions to Bidders"
Form of "Tender"
Form of "Contract Agreement"
Form of "General Conditions"
Project drawings and/or specifications where required.
Workers Compensation Board Coverage Requirements
o For contractors and service providers required to have WCB coverage, the
Town is to be provided with an up to date WCB clearance letter. For
contractors or service providers not required to have WCB coverage (eg.
fewer than 3 employees in a non-mandatory industry) the contractor shall
either provide an up to date WCB clearance letter or a statement that they
are not covered by WCB. This requirement shall be referenced in all
requests for tender whether written or verbal.
o In addition to the above requirements, an Indemnification and Hold
Harmless Clause shall be inserted in all contracts. Example wording:
"The Supplier agrees to defend, indemnify and save harmless the Town of
Digby from and against any and all claims of any nature, actions, causes of
action, losses, expenses, fines, costs (including legal costs), interest or
damages of every nature and kind whatsoever arising out of or related to
the Supplier's status with WCB. This indemnity shall be in addition to and
not in lieu of any proof of WCB status and compliance to be provided by
the Supplier in accordance with this Contract, and shall survive this
Contract."
Insurance Requirements:
o Contractors and service providers shall provide a certificate of insurance as
proof of types of coverages and minimum limits of coverages. The specific
required coverages shall be referenced in all requests for tender whether
written or verbal. The successful tenderer shall not commence work under
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pg. 14 Administrative Policy # 2018-05 Purchasing and Procurement Policy
the contract until satisfactory proof of insurance has been submitted to the
Town.
o In addition, an Indemnification and Hold Harmless Clause shall be inserted in
all contracts. Example wording:
"The Supplier shall defend, indemnify and save harmless the Town of Digby,
its elected officials, officers, employees and agents from and against any and
all claims of any nature, actions, causes of action, losses, expenses, fines, costs
(including legal costs), interest or damages of every nature and kind
whatsoever, including but not limited to bodily injury, sickness, disease or
death or to damage to or destruction of tangible property including loss of
revenue or incurred expense resulting from disruption of service, arising out
of or allegedly attributable to the negligence, acts, errors, omissions,
misfeasance, nonfeasance, fraud or willful misconduct of the Supplier, its
directors, officers, employees, agents, contractors and subcontractors, or any
of them, in connection with or in any way related to the delivery or
performance of this Contract. This indemnity shall be in addition to and not in
lieu of any insurance to be provided by the Supplier in accordance with this
Contract, and shall survive this Contract.
A privilege clause shall be included in the tender and advertisement that states "The
Town reserves the right to reject any or all tenders, not necessarily accepting the
lowest tender, but accepting any tender which it may consider to be in its best
interest. The Town also reserves the right to waive formality, informality or
technicality in any tender."
The tender documents must set out the closing date and time, the fact that all tenders
submitted must be in sealed envelopes, clearly marked with the purpose of the tender
and the time and place at which they will be opened.
When tenders are received, they shall be date and time stamped. Tenders received
after the closing date and time shall be returned to the bidder, unopened.
Posting
All public tender opportunities must be posted on the province of Nova Scotia Procurement
Web Portal, and the Town of Digby Website. Town of Digby personnel may wish where
appropriate to also advertise in local, provincial, or national media; however, there is no
obligation to do so. In addition, a notice of tender opportunity may be sent to selected
suppliers where required to ensure an adequate degree of competition.
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pg. 15 Administrative Policy # 2018-05 Purchasing and Procurement Policy
Public Opening
Invitational Bids and Public Tenders shall be opened in public in the presence of at least two
people, one of whom shall be the Department Head, or designate, of the Department making
the purchase, or the Chief Administrative Officer, or designate. The Department Head shall
ensure that a recorder documents the proceedings at the opening, including the names of
those persons in attendance and the amounts of the bids.
Bid Evaluation
All bids are subject to evaluation after opening and before award of contract. The bid request
documents must clearly identify the requirements of the procurement, the evaluation
method, evaluation criteria based on the purpose and objectives of this policy, and the
weights assigned to each criterion.
Tender Award
It shall be customary to award the tender to the bidder of the lowest price meeting the
specifications. However, the Town reserves the right to make an award for reasons
deemed to be in its best interest. An award shall not be made in any circumstances to a
firm that did not submit a bid on a tender call.
All purchases over $50,000 must be approved by Town Council. There are two other
situations where Council approval will be required:
o if acceptance of the tender would result in the cost being more than budgeted and,
o if the recommendation is to be a supplier who is not the lowest bidder.
In the event that all bids exceed the budgeted amount or otherwise do not meet the
criteria established by the Town, one of the following options will be followed:
o Cancel the process and do not purchase
o Make an award to the lowest acceptable bidder based upon the amount of the
budget overrun, and the significance and priority of the purchase;
o Undertake negotiations in the scope of the work with the bidder submitting
the lowest acceptable tender;
o If the previous three options are not acceptable, recall the tender.
The winning bidder and contract award amount for all high value procurement activity
must be posted on the Province of Nova Scotia's Procurement Web Portal. After contracts
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pg. 16 Administrative Policy # 2018-05 Purchasing and Procurement Policy
have been awarded, routine access to information at the vendor's request shall be
provided in the following areas:
o Bidders list:
Name of winning bidder
Award price excluding taxes of the winning bidder
Access to tender documents or other proprietary information is subject to
the provisions of the Freedom of Information and Protection of Privacy
Act.
o Supplier Debriefing
At the request of a supplier who submitted a bid, Town of Digby personnel will
conduct a suppler debriefing session to provide feedback on the evaluation of the
public tender. Suppliers can find out how their proposal scored against published
criteria, obtain comments on their bid, and gather information on how future bids
may be improved. Bids are not compared to others, nor will information on other
bids be provided.
o Supplier Compliant Process (SCP)
When a supplier is not satisfied with the information provided in a supplier
debriefing, the supplier may file a complaint in accordance with the Supplier
Complaint Process as defined in the Public Procurement Act. The SCP is not a
dispute resolution process, but rather is intended to handle supplier complaints
and to improve faulty or misleading procurement processes. The SCP is an integral
part of a fair and open procurement policy.
Purchase Order/Contract
Award of the tender shall be made by the appropriate Purchase Authority. A formal contract
along with a purchase order shall be prepared for the total amount of the goods, services and
construction that is to be signed by the appropriate authority and the successful respondent.
Alternative Procurement Circumstances
There exists common exceptions to public tendering. These circumstances are listed as
Appendix D. The Alternative Procurement Process shall not be used to avoid competition or
to discriminate against specific suppliers.
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pg. 17 Administrative Policy # 2018-05 Purchasing and Procurement Policy
13. Request for Proposals Process:
When seeking professional services that cannot be rigidly defined under tender
specifications, the Purchasing Authority shall prepare a Request for Proposal (RFP). The
RFP shall generally describe the scope of work or goods entailed, and would invite written
proposals from prospective suppliers which detail the methodology to be utilized, the
time frame for completion and an estimated cost for completion of the outlined work.
The Purchasing Authority may stipulate an amount for the services to enable a more fair
evaluation of the proposals.
The selection of the successful bidder shall be based on consideration of a number of
relative factors and shall not be selected on the basis of price alone. The Purchasing
Authority is then authorized to negotiate a final contract with the selected bidder. All final
contracts require the approval of Town Council.
As to licensed professional services including audit, architect, banking, legal, insurance,
investment and engineering services: Generally, these services will be subject to a
Request for Proposal process on a three to five-year basis. The Chief Administrative
Officer, and the Director of Finance are responsible to carry out this process and file a
recommendation with Town Council for the appointment.
The Chief Administrative Officer, and/or the Director of Finance shall prepare the
specifications for these services, call for proposals, carry out the necessary interviews (if
required), and prepare a recommendation for Town Council.
14. Receipt of Goods or Services:
Immediately upon receipt of goods, authorized staff shall ascertain that the delivery is
acceptable as to condition, quantity, quality and conformity to the Purchase Order
requirements.
If the goods or services are accepted, the delivery slip (or a receiving report) shall be
signed by the person authorized by the Purchasing Authority to receive the goods and
such slip shall be matched with the purchase order and invoice.
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pg. 18 Administrative Policy # 2018-05 Purchasing and Procurement Policy
If the goods or services are not acceptable and are rejected or returned by the person
authorized to receive them, the delivery slip (or receiving report) shall be delivered to the
Purchasing Authority. The carrier is to be notified promptly of any damage.
When a service has been ordered and is in the form of a continuing activity, which is
automatically paid monthly, it is the responsibility of the Purchasing Authority to notify
Finance Department Accounts Payable of any change in the normal payment procedures.
With respect to construction work, a field verification on the detailed physical progress
shall be supported by a summary of the items and values, duly approved by the
Department Head or designate, which shall satisfy the payment support and
requirements.
Department Heads shall be required to approve all invoices, vouchers, claims for payment
for goods and services purchased by their respective Departments. Such approval shall
ensure that all documentation including purchase order, delivery/packing slip or receiving
report is attached and that pricing is appropriate.
Such approvals by Department Heads shall be undertaken in a timely manner to avoid any
credit interest charges. The Town of Digby strives to pay its vendors of goods, services
and construction within a thirty (30) day-period, unless other terms are detailed on the
vendor's invoice.
15. Payment for Goods and Services:
Departments shall forward all invoices and cheque vouchers to the Finance Department
for payment properly authorized and accurately coded.
The Finance Department shall be responsible to verify that all appropriate steps and
approvals for the acquisition of and payment for the goods and services were in place,
using appropriate verification procedures.
16. Fair Treatment of Nova Scotia Suppliers
Based on the principle of best value for the Town of Digby and when deemed to be in their
best interests, Town of Digby personnel may apply a preference for goods valued up to and
including $25,000 that are manufactured or produced in Nova Scotia. The final decision to
apply a preference to a Nova Scotia supplier shall be approved by the CAO. Town of Digby
personnel may also choose to apply a Nova Scotia preference or restrict the receipt of
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pg. 19 Administrative Policy # 2018-05 Purchasing and Procurement Policy
quotations at or below the low value procurement thresholds to Nova Scotia suppliers. Any
decision made by Town of Digby personnel should be based on budget considerations, and
shall be approved by the CAO.
17. Local Preference and Sustainability Considerations.
Town of Digby staff must give preference to purchasing goods manufactured or produced
and services from local businesses in accordance with the following:
In evaluating which goods or services offer best value to the Town of Digby, the
Town of Digby must apply a preference of 5% 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 5% for the purposes of evaluating which
goods or services offer best value.
All requests for quotations and notices of public tender must state that local
preference applied to the procurement.
In accordance with the Atlantic Procurement Agreement, the local preference
described above does not apply to high value procurement as outlined in section
[12] of this Policy.
Pursuant to the Public Procurement Act, the Town of Digby may consider
sustainability
criteria,
meaning
environmental
considerations,
social
considerations and economic considerations.
All requests for quotations and notices of public tender must list the sustainability
criteria that apply to the procurement.
18. Other Considerations:
Cooperative Procurement
Town of Digby personnel are encouraged to look for opportunities to collaborate with
government agencies when the arrangement may result in overall cost savings or other
substantial advantages. For example, joint procurement may be appropriate to procure
commonly used goods, services, fuel oil, natural gas, telecommunications, etc.
Standing Offers
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pg. 20 Administrative Policy # 2018-05 Purchasing and Procurement Policy
Town of Digby personnel may access all Province of Nova Scotia standing offers, as well as
any standing offer established through the Procurement Advisory Group for the Province
should Town of Digby personnel wish to make use of the savings opportunities.
19. Obligations under the Public Procurement Act:
In addition to the areas already covered by this policy, the following are additional obligations
of the Public Procurement Act that the Town of Digby personnel are required to adhere to
with their procurement practices.
Terms and Conditions
Every Public tender notice must include or have attached the terms and
conditions that govern the purchase of goods, services, construction, or
facilities. The terms and conditions of every public tender notice must be
consistent with the Atlantic Standard Terms and Construction Contract
Guidelines developed in collaboration with the Construction Associations of
Nova Scotia for the procurement of construction.
Posting Tender Notices and Awards
All opportunities subject to a public tender must be advertised on the Province
of Nova Scotia Procurement Web Portal. Town of Digby personnel must also
post on the Procurement Web Portal the name of the successful bidder for the
public tender and the contract amount awarded.
Code of Ethics
Town of Digby personnel and council must ensure their conduct in relation to
procurement activity is consistent with the "Duties of public sector entity
employees" in the Public Procurement Act. This includes a request for removal
from a procurement activity when a personal conflict of interest is perceived.
Other
i. Policy Posting
Town of Digby personnel will ensure this policy is posted on the town's
web site.
ii. Supplier Development Activities
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pg. 21 Administrative Policy # 2018-05 Purchasing and Procurement Policy
Town of Digby personnel will make every attempt where appropriate to
participate in vendor outreach activities as requested by the Procurement
Governance Secretariat.
iii. Regulations
Town of Digby personnel will make sure that procurement practices
remain consistent with any regulations that are adopted under the Public
Procurement Act.
20. Other:
This Policy repeals and supersedes Administration Policy # 2017-09 Procurement Policy and
repeals Administration Policy #2010-08 Expenditures Policy
Clerk's Annotation for Official Policy Book
Date of Notice:
March 19, 2018
Date of adoption:
April 3, 2018
Policy effective date:
April 3, 2018
I certify that this Purchasing and Procurement Policy was adopted by Council as indicated above.
April 4, 2018
Clerk
Date
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pg. 1 Administrative Policy # 2017-0 Procurement Policy
Appendices
Appendix A - Petty Cash Controls
These controls are designed to ensure that petty cash funds are properly established, maintained,
safeguarded and protected against misuse.
1.
All petty cash funds are established through the Finance Department.
2.
The custodian shall store petty cash in a locked, metal cash box to be stored out of sight in a
secure location.
3.
Petty cash is replenished regularly to avoid shortages and to record expenditures within the
fiscal period they have occurred.
4.
All petty cash shall be balanced and replenished at the end of the fiscal year -- March 31.
5.
Petty cash is never replenished or supplemented from sources other than reimbursements
from the Finance Department.
6.
Petty cash is never used for loans, advances, personal expenses or to cash cheques.
7.
Petty cash is not used to make payments to individuals for services (other than personal
services that are small and non-recurring in nature.)
8.
A petty cash voucher shall be prepared for each withdrawal indicating the details of that
withdrawal. The person making the purchase shall be required to return the original sales slip
(to be attached to the voucher) along with remaining funds.
9.
Petty cash reimbursements are approved at the departmental level by the Director and are
supported with original receipts. Approvals shall be obtained by the Accountant and the
Director of Finance through the reimbursement process.
10. Petty cash is reconciled monthly by someone other than the custodian and annually by a
representative from the Finance Department.
11. Petty cash is counted periodically and agreed to records; by someone other than the
custodian.
12. Cash custody, transaction recording and reconciliation to financial statements are performed
by different personnel.
13. Unspent petty cash funds are closed and returned to the Finance Department at the end of
the fund's usefulness.
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pg. 2 Administrative Policy # 2017-0 Procurement Policy
Appendices
Appendix B: - Purchase Order Controls
These controls are designed to ensure that purchases are for approved Town of Digby use, cost-
effective and in compliance with the Town of Digby Purchase and Procurement Policy and legal
requirements.
1.
Purchases are initiated with the appropriate level of signed authorization.
2.
Written agreement or contracts are completed when warranted instead of, or in addition to
a purchase order. (E.g. for retaining consultants or service providers.)
3.
Quotations are obtained in accordance with the Purchasing and Procurement Policy.
4.
Orders are not split to circumvent requirements for purchase orders or competitive bidding.
5.
If a sole source supplier is used, the justification is documented and authorized in accordance
with the Purchasing and Procurement Policy requirements.
6.
Invoices and cheque requests are approved by the Department head and Director of Finance
and/or the Chief Administrative Officer.
7.
Invoices are reviewed for accuracy and agreed to purchase orders, goods receipts, contract
terms, etc. prior to payment.
8.
Payments are cancelled if goods are returned.
9.
All available vendor discounts are taken.
10. Business numbers must be clearly displayed on all invoices and small suppliers that do not
charge Harmonized Sales Tax must denote that on invoice,
11. Purchase initiation, goods receiving and Financial Information Systems entries are performed
by different individuals.
12. Federal Income Tax guides are referred to when determining whether an employee or
independent contractor relationship exits.
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pg. 3 Administrative Policy # 2017-0 Procurement Policy
Appendices
Appendix C: - Purchasing Card Controls
The following controls ensure that the purchasing cards are used for authorized Town of Digby
business and conform to the criteria outlined in this policy statement.
1.
Cards shall be issued in the name of the Town of Digby and the individual designated by the
CAO. The Director of Finance shall be responsible to ensure that the individual is familiar with
the guidelines for the use of this card as outlines in this document. Cardholders should fully
be trained on the responsibilities associated with the purchasing cards, including telephone,
fax and internet purchases, as well as the repercussions if they abuse the card.
2.
Purchasing cards are not to be used for personal purchases or cash advances.
3.
Under no circumstances shall a transaction be split into two or more separate receipts to
bypass the transaction dollar limit on the card or the approval limits of the employee.
4.
Billing statements are to be approved by the Chief Administrative Officer, the billing
statement of the Chief Administrative Officer is to be approved by the Mayor and Deputy
Mayor.
5.
Purchases made on the purchasing card shall be the liability of the Town of Digby. Upon
receipt of a monthly bill, the Finance Department will ensure payment is effected promptly
to avoid financing charges.
6.
The cardholder shall keep a copy of all supporting documentation (e.g. cash register and
purchasing card receipts, vendor notices, purchase register, etc.) and attach it to the monthly
statement. The cardholder shall certify that the goods have been received by signing the sales
slip.
7.
Purchasing cards are stored in a secure location when not in use.
8.
Purchasing cards are used only by the person named on the card or the approved designate.
9.
Expenditures are reconciled with the billing statement monthly.
10. Purchase initiation/processing and reconciliation are performed by different individuals.
11. The Director of Finance reviews billing reports monthly for propriety of use and follows up
questionable items with the cardholder and/or the CAO.
12. Purchasing cards will be cancelled when the cardholder no longer holds a position approved
for a card, no longer requires the card, the card is lost or stolen or when the cardholder has
terminated employment with the Town of Digby. The card may also be cancelled if it is not
used in accordance with the guidelines outlined in this document. A written request from the
cardholder's manager shall be forwarded to the Director of Finance with the name of the
cardholder and the reason for cancellation. The Director of Finance shall contact the bank
and shall confirm the cancellation. It shall be the responsibility of the manager to ensure that
terminated employee's cards are cancelled immediately upon termination from the Town of
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pg. 4 Administrative Policy # 2017-0 Procurement Policy
Appendices
Digby. It shall also be the manager's responsibility to ensure that cancelled purchasing cards
are returned to the Director of Finance for destruction.
13. All purchasing cards shall remain the property of the Town of Digby and must be protected
in the same way as a personal purchasing card. Should the card be lost or stolen, it shall be
the cardholder's responsibility to report the event immediately to the bank and to the
Director of Finance. If the cardholder requires assistance with statements, disputed items or
other issues, they shall contact the Director of Finance.
Roles and Responsibilities
14. Director of Finance shall be responsible to:
a) Administer and audit the purchasing card program
b) Maintain a master list for all cards
c) Maintain all original cardholder's agreements
d) Ensure monthly billings are paid in a timely fashion
e) Ensure cardholders are completing statement reconciliations accurately
f) Offer training and support to cardholders when issues occur during the process
g) Monitor employee activates, print reports, and adjust spending levels
h) Perform random audits of purchasing card transactions
i) Track historical data to monitor program performance and ensure cost control targets
are reached
j) Overall administration of purchasing card program
15. Cardholder shall be responsible for:
a) The security of their card and should not share the purchasing card or the card number
with other individuals
b) The use of the card in accordance with the guidelines outlines in this document and
other related policies and procedures
c) Confirm budget allocation for items being purchased
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pg. 5 Administrative Policy # 2017-0 Procurement Policy
Appendices
d) Keep supporting documents (e.g. cash register and purchase card receipts, vendor
notices, packing slips, etc.) related to all purchases made with the card for reconciliation
e) Contacting the supplier if there are any problems with the order received and address
disputes for a resolution.
f) Ensure all returns are credited to the statement
g) Reporting lost or stolen cards to the bank and the Director of Finance
h) Returning the card when requested to do so
CLASSIFICATION: General Government - Finance
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pg. 6 Administrative Policy # 2017-0 Procurement Policy
Appendices
Appendix D- Alternative Procurement Circumstances
Town of Digby personnel may use the following alternative procurement practice processes
described below:
a) Where an unforeseeable situation of urgency exists and the goods, services, or
construction cannot be obtained in time by means of open procurement procedures.
Entities must ensure inadequate planning does not lead to inappropriate use of
exemption.
b) 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.
c) Where compliance with the open tendering provisions set out in this policy would
interfere with a party's ability to maintain security or order, or to protect human,
animal, or plant life or health.
d) 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 tenders.
e) To ensure compatibility with existing products, to recognize exclusive rights, such as
exclusive license, copyright, and patent rights, or to maintain specialized products that
must be maintained by the manufacturer or its representative.
f) 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.
g) For the procurement of goods or services the supply of which is controlled by a
supplier that is a statutory monopoly.
h) For the purchase of goods on a commodity market.
i) For work to be performed on or about a leased building or portions there of that may
be performed only by the lessor.
j) For work to be performed on property by a contractor according to provisions of
warranty or guarantee held in respect of the property or the original work.
k) 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.
l) For the purchase of goods under exceptionally advantageous circumstances such as
bankruptcy or receivership, but not for routine purchases.
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pg. 7 Administrative Policy # 2017-0 Procurement Policy
Appendices
m) For the procurement of originals works of art.
n) For the procurement of subscriptions to newspapers, magazines, or other periodicals.
o) For the procurement of real property.
p) For the procurement of goods intended for resale to the public.
q) For the procurement from philanthropic institutions, prison labour, persons with
disabilities, sheltered workshops programs, or though employment equity programs.
r) For the procurement from a public body or a non-profit organization.
s) For the procurement of services of expert witnesses, specifically in anticipation of
litigation or for the purpose of conducting litigation.
t) Unsolicited proposal
CLASSIFICATION: General Government - Finance
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pg. 1 Administrative Policy # 2017-0 Procurement Policy
Appendix 3 - Procurement Tools
Appendix E- Procurement Tools
Below is an outline of some of the various tools available for use when issuing a public tender:
1.
Request for Proposal (RFP)
Used when a supplier is invited to propose a solution to a problem, requirement, or objective.
Suppliers are requested to submit detailed proposals (bids) in accordance with predefined
evaluation criteria. The selection of the proposal is based on the effectiveness, value, and
price of the proposed solution. Negotiations with suppliers may be required to finalize any
aspect of the requirement.
2.
Request for Construction (RFC)
Used to publicly tender for a construction, reconstruction, demolition remediation, repair, or
renovation of a building, structure, road, bridge, or other engineering or architectural work.
When a supplier is invited to bid on a construction project the tender documents usually
contain a set of terms and conditions and separate bid form that apply to that specific project.
Suppliers are requested to submit a response (bid) in accordance with predefined criteria.
The selection of the successful proposal is based on a number of factors as described in the
tender documents. A request for construction usually does not professional consulting
services related to the construction contract, unless they are included in the specifications.
3.
Request for Quotations (RFQ)
A request for quotations on goods or products with a minimum specification. Award is usually
made based on the lowest price meeting the specification. An RFQ does not normally but may
sometimes include evaluation criteria.
4.
Request for Standing Offer (RSO)
A public tender to provide commonly used goods or services. The term if the standing offer
can vary in duration but will be clearly defined in the tender documents. RSO's may include
evaluation criteria depending on the requirement.
5.
Request for Expression of interest (REI)
The request for the Expression of interest is similar to the Request for Proposal and is
sometimes referred to as a Pre-Qualification, where suppliers are invited to propose a
solution to a problem. The REI, however, is only the first stage in the procurement process.
Bidders responding to the REI will be short listed according to their scoring in the evaluation
process. The short listed firms will then be invited to respond to a subsequent Request for
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pg. 2 Administrative Policy # 2017-0 Procurement Policy
Appendix 3 - Procurement Tools
Proposal. A REI does not normally include pricing as price is a key evaluation criteria used in
the second stage RFP process.