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Procurement Policy
Page 1 of 51
POLICY
Policy:
PROCUREMENT POLICY
Department:
Corporate Services
Division:
Finance
By-Law No.:
2015-69
Prepared By: Karen Jacques
Approval Date:
June 1, 2015
Pages:
51
Replaces:
Purchasing Policies and Procedure - January 1, 2005
INDEX
1. POLICY STATEMENT
PAGE 2
2. PURPOSE
PAGE 2
3. SCOPE
PAGE 3
4. DEFINITIONS
PAGE 3 to PAGE 8
5. INTERPRETATIONS
PAGE 8 to PAGE 9
6. GENERAL CONDITIONS
PAGE 9 to PAGE 10
7. RESPONSIBILITIES AND AUTHORITIES
PAGE 10 to PAGE 14
8. STANDARDIZATION
PAGE 14
9. REQUIREMENT FOR APPROVED FUNDS
PAGE 14 to PAGE 15
10. EXPENDITURE APPROVAL
PAGE 15
11. REPORTING
PAGE 15 to PAGE 16
12. EMERGENCY PURCHASING
PAGE 16 to PAGE 17
13. PURCHASE ORDERS
PAGE 17 to PAGE 18
14. PURCHASING THRESHOLDS
PAGE 18 to PAGE 25
15. SEALED BID PROCEDURES
PAGE 25 to PAGE 32
16. BIDDER ELIGIBILITY
PAGE 32 to PAGE 33
17. CONTRACTS AND AGREEMENTS
PAGE 34 to PAGE 35
18. CONTRACT PROGRESS PAYMENTS
PAGE 35
19. SUPPLIER DISCRIMINATION
PAGE 35
20. INDEMNITY
PAGE 36
21. INSURANCE
PAGE 36
22. COMPLETION OF CONTRACTED SERVICES
PAGE 36
23. CONTRACTOR PERFORMANCE RATING SYSTEM
PAGE 37
24. EXCEPTIONS TO PROCUREMENT PROCEDURES
PAGE 37 to PAGE 40
25. CONFLICT OF INTEREST
PAGE 40 to PAGE 41
26. INVENTORY AND MATERIAL
PAGE 41
27. DISPOSAL OF SURPLUS GOODS
PAGE 41 to PAGE 42
28. PETTY CASH
PAGE 42
29. CORPORATE CREDIT CARDS
PAGE 42 to PAGE 43
30. PURCHASING CARDS
PAGE 43
31. ACCESSIBILITY FOR ONTARIANS WITH DISABILITIES ACT
PAGE 44
32. OCCUPATIONAL HEALTH AND SAFETY ACT
PAGE 44
33. RECORDS AND INFORMATION
PAGE 44 to PAGE 45
34. PROCEDURES
PAGE 45
APPENDIX A - GOODS AND SERVICES EXEMPT FROM THE PROVISIONS OF THE
PROCUREMENT POLICY
APPENDIX B - BID IRREGULARITIES
APPENDIX C - TENDERS vs. RFPs
Procurement Policy
Page 2 of 51
1. POLICY STATEMENT
1.1.
The Corporation of the Town of Amherstburg is committed to open and transparent
purchasing activities in the manner that best serves the interests of the Town of
Amherstburg and keeps business moving forward.
2. PURPOSE
2.1.
To procure by purchase, rental, or lease the required quality and quantity of goods and
services, including professional and consulting services, in an efficient, timely, and cost
effective manner.
2.2.
To encourage open competitive bidding for the acquisition and disposal of goods and
services where practicable.
2.3.
To consider all costs, including, but not limited to, acquisition, operating, training,
maintenance, quality, warranty, payment terms, disposal value and disposal costs, in
evaluating bid submissions from qualified, responsive, and responsible vendors.
2.4.
To give full consideration to the annual aggregate value or to consider the total project cost
of specific goods and services that will be required by each department, and by the Town
as a whole, prior to determining the appropriate acquisition method.
2.5.
To monitor and report on the economic climate and legislative changes which may have an
impact on the Town of Amherstburg and to determine the appropriate actions to be taken
through purchasing policies and procedure.
2.6.
To encourage the purchasing of goods and services with due regard to the preservation of
the natural environment. Vendors may be selected to supply goods made by methods
resulting in the least damage to the environment, and supply goods incorporating recycled
materials where practicable.
2.7.
To provide a time frame for regular review for effectiveness and validity.
2.8.
To provide a transparent methodology for the acquisition of goods and services to Council
and constituents, and to ensure that vendors have fair access to information on
procurement opportunities, processes, and results.
2.9.
To provide a consistent approach to completing projects and acquiring contracts for the
best value, on time, and on budget, while meeting all program requirements.
2.10. To create a standard for document retention, which provides complete records of all bids,
proposals, and quotations received, which would be made available for inspection by the
Town's auditors and/or managers until the end of the year and then filed in accordance with
the Town's Record Retention By-laws.
Procurement Policy
Page 3 of 51
3. SCOPE
3.1.
This policy applies to all Town of Amherstburg staff authorized to purchase items and
procure services on the Town's behalf. This includes, but is not limited to, full-time and
part-time employees, firefighters, temporary and contract employees, appointees to
agencies or boards, committees, volunteers, etc.
3.2.
This policy does not apply to Amherstburg Police Services.
3.3.
This policy shall be adhered to at any time a transfer of funds results in the direct supply of
goods and/or services, construction activities, consulting fees and professional services,
etc. to the Town of Amherstburg with the exception of items listed in Appendix A - Goods
and Services Exempt from the Provisions of the Procurement Policy.
3.4.
This policy shall be reviewed every five years from the date it becomes effective, or sooner,
at the discretion of the CAO.
4. DEFINITIONS
4.1.
Accountability means the obligation to answer to the general public, Council, and vendors
for procurement results and for the manner in which purchasing responsibilities are
discharged.
4.2.
Acquisition means the process of obtaining goods and services. Can also mean an item
that has been acquired.
4.3.
Agreement means a legal document that binds the Corporation of the Town of
Amherstburg and all other parties, subject to the provisions of the contract.
4.4.
Applicable Taxes means the Harmonized Sales Tax (HST) and any other provincial tax
payable in Canada and the Province of Ontario by law.
4.5.
Annual Aggregate Value means the total amount anticipated to be spent annually by all
departments on a particular type of good or service.
4.6.
Approval means the authorization to proceed with the purchase or disposal of goods or
services.
4.7.
Best Lifecycle Cost means the most economic value for money over the expected life of
an item. Factors considered include, but are not limited to acquisition cost, installation,
disposal value, disposal cost, training costs, maintenance costs, quality of performance,
depreciation values and replacement costs.
4.8.
Best Value means the price that results in the lowest expense to the Town for ownership,
operation, or purchase. This cost is derived after considering all factors such as price,
quality, service, terms, conditions and warranties.
4.9.
Bid means an offer or submission received in response to a request for quotation, tender,
or proposal, being subject to acceptance or rejection.
Procurement Policy
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4.10. Bidder is a person, firm, or corporation that submits a bid in response to a call for
proposals, quotations or tenders.
4.11. Bidders List is the list of vendors who have expressed interest in submitting bids by either
submitting Expressions of Interest or Prequalification, or who have already obtained sealed
bid documents for a bid opportunity. This may also be referred to as the "Plan Takers List".
4.12. Bid Irregularity means a deviation between the requirements (terms, conditions,
specifications, special instructions, etc.) of a bid request and the information provided in the
submitted bid. (See Appendix B).
4.13. Bid Request means a formal request for bids which may be in the form of a Request for
Quotation, Request for Proposal, or Tender call.
4.14. Chief Administrative Officer (CAO) is the Chief Administrative Officer for the Corporation
of the Town of Amherstburg, which includes the roles and responsibilities as laid out in
Section 229 of the Municipal Act, 2001.
4.15. Clerk is the Municipal Clerk for the Corporation of the Town of Amherstburg, which
includes the roles and responsibilities as laid out in Section 228 of the Municipal Act, 2001.
4.16. Contract means a legally binding agreement between two or more parties. Such
agreements will consist in the form of a:
a. Purchase order, or;
b. Purchase order incorporating a formal agreement, or;
c. Formal agreement between the Town and other parties that creates
an obligation to provide defined goods and/or services.
4.17. Conflict of Interest is a situation where private interests or personal considerations may
affect the judgement of an employee or elected official of the Town of Amherstburg to act in
the best interest of the Town. It includes using the employee's or elected official's position,
confidential information, corporate time, material, or facilities for expected or actual private
gain or advancement. A conflict may also exist where interests benefit any member of the
employee or elected official's family, friends, or business associates.
4.18. Cost Effective Bid means a bid received in response to a request that offers the best
value for money, taking into consideration a quantitative and qualitative selection
procedure.
4.19. Council refers to the current elected Council for the Corporation of the Town of
Amherstburg. This includes, as an entirety, the Mayor, Deputy Mayor and Councillors.
4.20. Co-Op means a co-operative acquisition venture.
4.21. Director is the person responsible for direction and operational control of a division as
defined on the Town's organizational structure.
Procurement Policy
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4.22. Deliverable is a thing able to be provided, such as a service or merchandise. May be an
item required to fulfill a contract.
4.23. Designated Signing Authority means the person or people authorized to execute legally
binding contracts on behalf of the Town of Amherstburg.
4.24. Direct Acquisition means the acquisition of goods and/or services without issuing a call
for bids or obtaining comparative quotations.
4.25. Disposal means the removal of materials owned by the Town of Amherstburg deemed to
be surplus by either sale, trade-in, auction, alternative use, gifting, recycling, destruction, or
delivery to landfill.
4.26. Emergency means a situation where the purchase of goods and services requires
immediate action to prevent or correct dangerous or potentially dangerous safety
conditions, prevent further damage, restore minimum service, or to ensure the safety of the
public.
4.27. Execute means to legally bind the Corporation of the Town of Amherstburg to the terms
and conditions defined within an agreement by applying signatures of designated signing
authorities of all parties named in the agreement and the corporate seal (if applicable).
4.28. Expanded Works means approved construction projects in which an unexpected problem
arises during construction, which does not expand the original scope of the project, but is
necessary to deliver the original approved work.
4.29. Expression of Interest (EOI) means a situation where vendors are solicited by the Town
to advise of their ability or desire to undertake Town projects. This is not to obtain costs for
services.
4.30. Goods and/or Services includes supplies, equipment, property insurance, maintenance,
professional and consulting services, and service contracts not otherwise provided for.
4.31. Labour and Materials Payment Bond is a security provided by a bonding or surety
company to the owner of a construction project on behalf of a contractor. These bonds are
issued usually with (and for the same amount as) performance bonds, and cover payment
for all equipment, labour, materials, and service in the event that the contractor fails to pay
for them under the terms of the contract.
4.32. Lease is a method of financing and acquisition which binds the Town to a stream of future
payments. Council approval is required to enter into a lease, along with, or subsequent to,
the acquisition approval. Entry into a lease agreement by the Town shall be subject to the
provisions of the Municipal Act, 2001 and the regulation thereto.
4.33. Lowest Responsive Bid means the lowest bid price submitted that meets the
requirements and specifications as set out in the bid request.
4.34. Maintenance Bond is a type of surety bond purchased by a contractor that protects the
Town for a completed construction project for a specified time period against defects and
faults in materials, workmanship and design that could arise later if the project was done
incorrectly.
Procurement Policy
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4.35. Manager reports directly to a Director (or the CAO in some instances) and who is
responsible for a department within a division of the Corporation, as defined on the Town's
organizational structure.
4.36. Material Safety Data Sheet (MSDS) is an information sheet for hazardous materials,
including an index of chemical compounds with details of properties, handling details,
precautions, and first-aid procedures.
4.37. Negotiation means the action or process of conferring with one or more vendors leading to
an agreement on the acquisition of the required goods and services under the conditions
outlined in this policy.
4.38. Open Market Procedure means obtaining price quotations from vendors verbally or in
writing.
4.39. Performance Bond is a surety that calls for specific monetary payment to a beneficiary if
the purchaser or maker fails to do something or acts in violation of a contract.
4.40. Pre-Qualification means a submission of information used to verify eligibility of potential
bidders. This may include information regarding experience, financial strength, education,
background, personnel, firms or corporations used to qualify the bidder to supply goods,
services or construction to the Town. This information does not create any contractual
obligation between the bidder and the Town, but may be a prerequisite to further
procurement contracts to the Town.
4.41. Privilege Clause means the standard clause used in bid documents and advertising that
reads in part "the lowest or any tender may not necessarily be accepted".
4.42. Procurement means the combined functions of purchasing, inventory control,
transportation, receiving and inspection, salvage, and disposal.
4.43. Procurement Policy provides guidelines for acquiring goods and services for the Town of
Amherstburg as approved by Council. Also known as the Purchasing Policy. For the Town
of Amherstburg, the Procurement Policy is this document provided herein.
4.44. Professional and Consulting Services includes the services provided by architects,
engineers, designers, appraisers, management or financial consultant, brokers, lawyers,
and any other consulting and professional services rendered on behalf of the Town of
Amherstburg.
4.45. Project Manager is the initiating Town department Manager that will be managing the
implementation of a project from the award of contract though to project completion.
4.46. Proposal is an offer to provide goods or services to the Town where it is not feasible or
practical to prepare precise specifications, or where alternatives to detailed specifications
will be considered and may be subject to further negotiations. A proposal provides
solutions to arrive at an end product and allows for evaluation on criteria other than price.
Procurement Policy
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4.47. Purchase means to acquire goods or services in exchange for an agreed upon price. May
also be in the form of a rental or lease.
4.48. Quotation means an offer to sell goods and/or services to the Town, or an offer to
purchase surplus goods or materials from the Town.
4.49. Responsive and Responsible Bidder is a bidder responding to a bid solicitation who
complies with its provisions, including specifications, contract terms, and conditions as set
out in the bid document and who can reasonably be expected to provide satisfactory
performance on the proposed contract based on reputation, references, performance on
previous contracts, and sufficiency of financial and other resources.
4.50. Request for Proposal (RFP) is a form of bid solicitation in regards to a particular project,
but does not provide detailed specifications, terms or conditions. An RFP invites solutions
from bidders that will provide all of the project initiatives. Proposals are critiqued and
scored not only by price, but also by historical projects and experience, equipment,
personnel, and proposed work plans, or any other pertinent details. The use of proposals
enables the Town to provide cost analysis as necessary and negotiate contract terms, fair
and reasonable prices, but does not preclude competition for technical excellence or price.
Typically the contract is awarded to the bidder with the highest proposal score.
4.51. Request for Quotation (RFQ) is a formal request for prices on specific goods or services
based on comprehensive technical specifications. The contract is awarded to the lowest
compliant bidder.
4.52. Risk Manager is the Municipal Clerk for the Corporation of the Town of Amherstburg.
4.53. Sealed Bid Documents are specification documents prepared and distributed to bidders
when tenders, Requests for Quotation (RFQs), or Requests for Proposal (RFPs) are
issued. These documents include instructions on how to submit bids/proposals, project
specifications, bid forms, insurance requirements, bonding requirements, etc.
4.54. Sealed Bid Process is the process of soliciting bids or proposals, allowing interested
parties to submit bids or proposals, and evaluating the bids or proposals to determine the
successful proponent. Sealed bid processes include Request for Quotations (RFQs),
Request for Proposals (RFPs), and Tenders.
4.55. Services means all professional, consulting, construction, and maintenance provided to the
Town by third party companies.
4.56. Senior Management Team (SMT) is comprised of the Chief Administrative Officer and the
Directors. If a Director is unavailable, a delegate may be assigned.
4.57. Single Source or Sole Source means there is more than one source in the open market,
but only for reasons of function or service, one vendor is recommended for consideration of
the supply of the particular goods and/or services.
4.58. Surety means a specified dollar amount in the form of cash, certified cheque, bid bond,
performance bond, labour and materials payment bond, letter of credit, or any other form as
deemed necessary and stated in any quotation, tender, or proposal documents issued by
the Town.
Procurement Policy
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4.59. Tender is a formal form of bid solicitation where the Town publishes the specifications,
terms, conditions and any and all details concerning the proposed contract. Tenders are
typically awarded to the lowest compliant bidder.
4.60. Town is the Corporation of the Town of Amherstburg.
4.61. Treasurer is the Treasurer for the Corporation of the Town of Amherstburg, which includes
the roles and responsibilities as laid out in Section 286 of the Municipal Act, 2001.
4.62. Unbalanced Bid means a bid in which the bidder places an unreasonably high value on
certain items in a unit price contract, and unreasonably low price on other items within the
same bid for purposes of receiving large payments at the beginning of a contract, or for
maximizing its profits on items that will be used in a contract in greater quantities than
estimated in the bid document, and under-pricing items it believes will be used in
significantly lesser quantities.
4.63. Unbudgeted Expenditure is an expense that was not provided for in the approved Capital
or Operational budget and requires additional funds at the approval of the CAO, Director of
Financial Service and/or Council.
4.64. Verbal Quotation is a price received in person or via telephone, with written
documentation to record the price provided.
4.65. Work is the activities, services, acquisition of goods or equipment, matters and things
required to be completed, delivered or performed by a contractor under contract.
5. INTERPRETATIONS
5.1.
Unless the context requires otherwise, use of the singular also implies the plural, and vice
versa.
5.2.
Whenever the words "include", "includes", or "including" or other similar terms are used in
this policy, they are deemed to be followed by the words "without limitation".
5.3.
Any reference to this Policy to any statute or any section of a statute shall, unless expressly
stated, be deemed to be reference to the statute as amended, restated or re-enacted from
time to time. Any references to a By-law or Town policy shall be deemed to be a reference
to the most recent passed policy or By-law and any replacements thereto.
5.4.
All dollars in this document are expressed in Canadian Dollars.
5.5.
All solicitations and processes under this Policy shall be conducted in English.
6. GENERAL CONDITIONS
6.1.
Where a Director is authorized to undertake any act pursuant to this policy, such act may
be undertaken by a Director's authorized designate.
Procurement Policy
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6.2.
Where it is recommended that a contract be executed, contracts and agreements with the
following aggregate values shall be executed as follows:
6.2.1.
Under $100,000 shall be executed in accordance with Section 14.4 of this
policy.
6.2.2.
Over $100,000 shall be executed by the Mayor and Clerk upon approval
by Council.
6.3.
Any commitments being made where it is recommended that a contract be executed by the
Mayor and the Clerk must first be approved by Council.
6.4.
No expenditure or commitment shall be incurred or made, and no account shall be paid by
the Town, for goods and services except as approved by Council or as otherwise
authorized in accordance with this policy.
6.5.
A vendor may be ineligible to bid on projects for a period of up to two years on the basis of
documented poor performance, non-performance, or conflict of interest. See Section 23 -
Contractor Performance Rating System.
6.6.
Material Safety Data Sheets (MSDS) must be maintained and placed on file by the user
department for all relevant products.
6.7.
When using the Privilege Clause which reads in part "the lowest or any tender may not
necessarily be accepted", the specific reasons must be stated why the bids may not be
accepted within the contract document.
6.8.
No employee or elected official shall purchase, offer to purchase, or acquire any
goods and/or services on behalf of the Town except in accordance with this policy.
6.9.
A contract shall not be awarded where the provisions of this policy have not been adhered
to.
6.10. Elected officials shall not procure or acquire goods and/or services.
6.11. The Town shall reject all acquisitions for services where the services could result in the
establishment of an employee-employer relationship.
6.12. Acquisition of goods and/or services for the Town shall be conducted using the methods of
purchasing noted in Section 14 - Purchasing Thresholds of this policy based on the
prescribed purchasing thresholds.
6.13. Notwithstanding any other provisions of this policy, the acquisition of the items listed in
Appendix A - Exceptions to Provisions of the Procurement Policy do not fall under the
guidelines of the Procurement Policy and shall be subject to applicable policies and
procedures established from time to time.
Procurement Policy
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6.14. Acquisition of goods and/or services with dedicated available budget funds for the Town
shall be carried forth using the purchase/contract values as thresholds for the methods
prescribed in Section 14 - Purchasing Thresholds in which items and/or services are
procured. Costs are estimated values of the goods and/or services, exclusive of all
taxes, delivery charges, labour and incidental expenses.
6.15. In the event that procurement involves a tender for construction, the estimated value of the
project must be provided by the consulting engineer preparing the specifications. If a
consulting engineer has not been assigned to the project, the Project Manager shall
calculate the estimated cost estimate using up-to-date fair market values.
6.16. In the event that a service contract is required, or a designated supplier is required to
provide goods or services throughout the course of a specified time period, the estimated
value of goods and services over the full term of the contract shall be used to determine
the appropriate procurement procedure to use to obtain said goods and services.
6.17. No action shall be taken to subdivide purchases in order to reduce the estimated price
thresholds or to otherwise avoid or circumvent the application of any of the provisions of
this policy.
7. RESPONSIBLITIES AND AUTHORITIES
7.1.
CAO has the authority and responsibility to:
7.1.1.
Approve any purchases and acquisitions with a value between $50,000 and
$100,000 in accordance with this policy.
7.1.2.
Instruct Directors and Managers not to award a contract and may direct staff to
submit recommendations to Council for approval.
7.1.3.
Provide additional restrictions concerning purchasing and procurement where
such action is considered necessary and in the best interests of the Town.
7.1.4.
Inform Council when non-compliance to this policy has occurred.
7.1.5.
Place additional restrictions related to purchasing where such action is considered
necessary and in the best interests of the Town.
7.1.6.
Approve emergency purchases as outlined in this policy.
7.1.7.
Review requests with the Director of Financial Services for unbudgeted
expenditures of $5,000 or more or for variances to approved budgets of $5,000
or more.
7.1.8.
Review requests from Directors for exceptions to procurement procedures and
grant these exceptions if deemed appropriate.
7.1.9.
Review requests to deem items surplus and grant approval at their discretion.
Procurement Policy
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7.2.
Director of Financial Services has the authority and responsibility to:
7.2.1.
Continuously monitor and evaluate the efficiency and effectiveness of this policy in
cooperation with the Manager of Special Projects.
7.2.2.
Inform the CAO when non-compliance to this policy has occurred.
7.2.3.
Ensure that the purchase of all goods and services for the Town is made within the
approved annual Operating and Capital Budgets or upon authority of a resolution
of Council within the limits and conditions set out in such resolutions.
7.2.4.
Review requests with the CAO for unbudgeted expenditures of $5,000 and over or
for variances to approved budgets of $5,000 or more. Advise initiating department
if funds can be secured and how they will be financed.
7.2.5.
Advise all Town departments on availability of funds and financing for purchasing
and procurement activities.
7.2.6.
Manage the purchasing card program and ensure that all cardholders have
appropriate employment status with the Town.
7.3.
Manager of Special Projects has the authority and responsibility to:
7.3.1.
Continuously monitor and evaluate the efficiency and effectiveness of this policy in
cooperation with the Director of Financial Services.
7.3.2.
Coordinate and advertise sealed bid opportunities through appropriate media
outlets and/or the Town website.
7.3.3.
Issue sealed bid documents and addenda, receive bids/tenders/proposals, and
coordinate opening procedures for sealed-bid processes.
7.3.4.
Consult with initiating departments on RFP evaluation committee composition and
coordinate evaluations of proposal submissions.
7.3.5.
Review submitted bids, tenders, and proposals for errors or omissions.
7.3.6.
Recommend successful proponents and bidders to issuing departments based on
results of sealed-bid processes.
7.3.7.
Coordinate Purchase orders for issuing departments for purchases and
acquisitions valued over $5,000.
7.3.8.
Maintain contractor performance reviews on file.
7.3.9.
Prescribe project start up and close out procedures to be conducted by Project
Managers at the onset and completion of contracted services.
Procurement Policy
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7.4.
Directors (all) have the authority and responsibility to:
7.4.1.
Approve any purchases and acquisitions with a value between $5,000 and
$50,000 in accordance with this policy.
7.4.2.
Assume overall accountability for purchasing activities within their departments.
7.4.3.
Ensure that all provisions of this policy have been met before purchasing any
goods and/or services.
7.4.4.
Determine and achieve specific objectives as outlined in each project requiring
purchase of goods or acquisition of services.
7.4.5.
Ensure that financing has been arranged with the Finance Department for capital
initiatives prior to any funds being required or spent for said projects.
7.4.6.
Award contracts valued at less than $50,000 where delegated power in exercised
within the limits prescribed in this policy, where the CAO has provided approval,
and where the requirements of this policy are met.
7.4.7.
Prepare reports to Council recommending the award of a tender, proposal, or
quotation as outlined in Section 14 - Purchasing Thresholds, or as specifically
assigned by the CAO.
7.4.8.
Submit a request for approval to the CAO and Director of Financial Services for
any unbudgeted expenditure of $5,000 and over, or for variances to approved
budgets greater than $5,000.
7.4.9.
Review contract amendments and change orders and submit a report to Council
for approval if the original contract price with the amendment results in an overage
of more than 5% of the budgeted amount for that contract. Issue change orders if
the expanded work has been approved.
7.4.10.
Provide Council with reports recommending the extension of contracts if said
contract has a provision for optional extensions.
7.4.11.
Conduct emergency purchases and conduct the appropriate reporting or approval
procedures as outlined in Section 12 - Emergency Purchasing.
7.4.12.
Notify the CAO of items valued at $5,000 and over to be deemed surplus and
request disposal of same. Offer the surplus items to other Town departments for
their use at no charge, prior to disposal.
7.4.13.
Request exceptions to the Policy for approval by the CAO.
7.5.
Managers have the authority and responsibility to:
7.5.1.
Approve any purchases and acquisitions with a value up to $5,000 in accordance
with this policy.
Procurement Policy
Page 13 of 51
7.5.2.
Initiate a project for which a purchase and acquisition was attained, after
Council/Director approval from commencement to completion of the initiative.
7.5.3.
Provide cost estimates to the Manager of Special Projects for projects to be
acquired through sealed bid processes.
7.5.4.
Obtain Purchase Orders for items and services valued over $5,000.
7.5.5.
Provide the project specifications for the scope of work to the Manager of Special
Projects for the preparation of sealed bid documents.
7.5.6.
Conduct prescribed project start up and close out procedures.
7.5.7.
Notify the Manager of Special Projects if there are alterations in employment
status with any purchasing card holders in their respective departments.
7.6.
Council has the authority and responsibility to:
7.6.1.
Award contracts with values of over $100,000.
7.6.2.
Waive any section of this procurement policy as it deems appropriate.
7.6.3.
Review and make by resolution any decision regarding purchasing or procurement
wherein Administration is requesting their counsel.
7.6.4.
Declare a conflict of interest in any purchasing matter at a meeting at which the
purchasing matter is the subject of discussion or consideration.
7.7.
Risk Manager has the authority and responsibility to:
7.7.1.
Review draft sealed bid documents for appropriate agreements, insurance, and
liability standards prior to issue.
7.7.2.
Request additional insurance from contractors and services providers in instances
where amplified risk has been identified.
7.8.
Vendors and Service Providers have the responsibility to:
7.8.1.
Disclose any and all conflicts of interest to the Town prior to or during the bid
process.
7.8.2.
Not engage in any form of bid rigging or collusion of any nature.
7.8.3.
Not participate in any conduct which is or could be reasonably construed as
any form of political or other lobbying, or as an attempt to influence the
outcome of any procurement process during the currency of any process
prior to the award of contract.
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8. STANDARDIZATION
8.1.
It will be the policy of the Town of Amherstburg, wherever possible, to standardize the
purchasing of goods and the acquisition of services to allow for:
8.1.1.
A reduced number of goods and services required.
8.1.2.
Increased volume on common items or series.
8.1.3.
Maximizing volume buying opportunities.
8.1.4.
Providing economies of scale.
8.1.5.
Reducing handling, training, and storage costs.
8.1.6.
Co-operative purchasing activities.
8.1.7.
Competitive bid results.
8.1.8.
Reduced overall cost.
9. REQUIREMENT FOR APPROVED FUNDS
9.1.
The exercise of authority to award a contract is subject to the identification and availability
of sufficient funds in appropriate accounts within Council approved annual Operating and
Capital budgets.
9.2.
Where goods or services are routinely purchased or leased on a multi-year basis, the
exercise of authority to award a contract is subject to:
9.2.1.
The identification and availability of sufficient funds in appropriate accounts for the
current year within Council approved estimates, and;
9.2.2.
The requirement for the goods or services will continue to exist in subsequent
years and, in the opinion of the Director of Financial Services, the required funding
can reasonably be expected to be made available.
9.3.
Directors may reject all purchase requests for which sufficient funds are not available and
identified.
9.4.
Directors will coordinate all leasing requirements including term capitalization rate, lease
vs. buy (or other) analysis, etc. Directors will ensure that all lease commitments comply
with the Municipal Act, 2001 as amended and regulations made thereunder. All leases
shall be approved by Council, regardless of estimated costs.
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9.5.
Where this policy prescribes financial limits on purchases and contracts that may be
awarded under the authority of a Director, or provides for financial limits on contracts
required to be reported to Council, for the purpose of determining whether a purchase or
contract falls within these prescribed limits, the amount considered shall be the sum of all
costs to be paid to the supplier excluding all taxes and less any rebates.
10. EXPENDITURE APPROVAL
10.1. Council has the ultimate authority for all expenditures and delegates this authority to staff
through the approved annual Operating and Capital Budgets and by specific resolution.
10.2. For purchases and acquisitions approved and included in the Operating and Capital
budget, the following approval procedures are required:
10.2.1.
Valued up to $5,000 - Managers shall approve the purchase and acquisition.
10.2.2.
Valued between $5,000 and $50,000 - Directors shall approve the purchase and
acquisition.
10.2.3.
Valued between $50,000 and $100,000 - Directors shall submit a request for
approval to the CAO. Approval shall be provided from the CAO in writing, with a
copy of said approval provided to the Manager of Special Projects.
10.2.4.
Valued over $100,000 - Directors shall submit a request for approval to Council.
10.3. For purchases not included in the approved budget, or items that are expected to exceed
the approved budgeted amount, the following procedures are required:
10.3.1.
Directors shall submit a request for approval to Council for:
10.3.1.1. Any unbudgeted expenditure of $5,000 or more.
10.3.1.2. Any expected variance for the net department Operating budget greater
than $5,000.
11. REPORTING
11.1. An administrative report to the CAO by a Director is required for the approval of the
acquisition of goods and/or services where all of the following criteria has been met:
11.1.1.
The value of the goods and/or services is between $50,000 and $100,000.
11.1.2.
Procedures defined by this policy have been followed.
11.1.3.
The acquisition is within the approved departmental budget amount with the funding
sources determined.
11.1.4.
The lower responsive bid is being recommended.
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11.2. A report to Council by a Director is required for the approval of the acquisition of goods
and/or services where any one or more of the following criteria has been met:
11.2.1.
The value of the goods and/or services is over $100,000.
11.2.2.
The Procurement Policy is being waived.
11.2.3.
Acquisition is a lease arrangement.
11.2.4.
The acquisition exceeds the approved departmental budget.
11.2.5.
There was no provision in the approved budget for this item and the item is an
unbudgeted expenditure.
11.2.6.
The lowest responsive bid is not being recommended for award of contract.
11.2.7.
The CAO requests that a report be presented to Council for consideration and
approval.
11.2.8.
There is a requirement by a senior level of government (federal or provincial) for
Council approval.
11.2.9.
A Change Order is required and/or expanded works will alter the cost of the
project above 5% of the original approved project cost.
12. EMERGENCY PURCHASING
12.1. Notwithstanding the provisions of this policy, "Emergency" shall be defined as the following:
12.1.1.
A threat to public health.
12.1.2.
The maintenance of essential Town services.
12.1.3.
The welfare of persons or public property.
12.1.4.
The security of the Town's interest where the occurrence requires the immediate
delivery of goods or services and time does not permit for competitive bids.
12.2. The following shall apply when purchasing goods and services in an emergency event:
12.2.1.
Purchases with a total value excluding applicable taxes between $5,000 and
$10,000:
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12.2.1.1. Directors may initiate and approve emergency purchases between
$5,000 and $10,000. Immediately following said purchase, the Director
shall notify the CAO and the Director of Financial Services in writing of
the purchase with full details concerning the circumstances under which
the purchase was made. Purchases of this nature will require that as
many comparative quotes as practical under the circumstances be
obtained.
12.2.2.
Purchases with a total value excluding applicable taxes over $10,000:
12.2.2.1. Directors initiating the purchase shall obtain the prior approval of the
CAO, or in the absence of the CAO, the Director of Financial Services in
consultation with the Mayor or Deputy Mayor for the town. As soon as
reasonably possible following the purchase, the director shall issue an
information report to the CAO.
12.3. In the absence of both the CAO and the Director of Financial Services, the Director may
directly purchase the goods or services which require immediate action to prevent further
damage, to restore minimum service or ensure safety of the public. In this event, the
Director shall inform the CAO and the Director of Financial Services of the occurrence
immediately upon their return.
13. PURCHASE ORDERS
13.1. Purchase orders shall be obtained from the Manager of Special Projects prior to any
purchase or acquisition of services valued at $5,000 and over.
13.2. Purchase orders shall be considered approved for commencement when the following
signatures are present on the purchase order:
13.2.1.
Issuing Manager/Director
13.2.2.
Director of Financial Services
13.2.3.
Manager of Special Projects
13.2.4.
CAO (only required in instances where the purchase is an unbudgeted
expenditure)
13.3. Blanket purchase orders may be established by the Manager of Special Projects by the
competitive purchasing method for the estimated annual value, when all of the following
criteria has been met:
13.3.1.
One or more departments repetitively orders the same deliverables, or range of
deliverables, and the actual demand (including quantity, delivery date, delivery
location, etc.) is not known in advance.
13.3.2.
The deliverables are readily available to be ordered when the requirement arises.
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13.3.3.
Prearranged prices or a prearranged pricing basis can be established at the outset
and there is no need or intention to negotiate prices at the time of order.
14. PURCHASING THRESHOLDS
14.1. Items and Services Valued Under $5,000 - Direct Acquisition
14.1.1.
This process is undertaken where all of the following criteria exist:
14.1.1.1. The requirements for goods and services can be defined and for which a
clear and single solution exists.
14.1.1.2. The total cost of the goods and services is not greater than $5,000
excluding applicable taxes.
14.1.1.3. Sufficient funds are available in the approved Operating or Capital
Budgets to pay for the goods and services.
14.1.2.
A report to Council authorizing the acquisition is not required.
14.1.3.
A Purchase Order is not required.
14.1.4.
Quotes are not required, however, informal quotations may be requested where it
is in the best interest of the Town to do so.
14.1.5.
Purchases are to be placed on corporate accounts, where available.
14.1.6.
Purchasing Cards or Credit Cards may be used for low-value purchases in
accordance with Section 29 - Corporate Credit Cards, and Section 30 -
Purchasing Cards contained within this policy.
14.1.7.
All such purchases shall be supported by invoices and delivery slips as approved
by the department Manager.
14.2. Items and Services Valued $5,000 to $50,000 - Quotations
14.2.1.
A minimum of three quotations (where possible) are to be sought before the Town
commits to any vendor.
14.2.2.
The award of contract shall be to the lowest compliant bid.
14.2.3.
The Town reserves the right to accept or reject any quotation.
14.2.4.
Directors shall approve acquisitions valued between $5,000 and $50,000 and
provide notice of said approval in writing to the Manager of Special Projects.
14.2.5.
A report to Council is not required.
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14.2.6.
For Purchases between $5,000 and $15,000 - Informal Quotation
14.2.6.1. This process is undertaken where all of the following criteria exist:
a. The requirement for goods and services can be defined and for
which a clear and single solution exists.
b. The total cost is greater than $5,000 and less than $15,000
excluding applicable taxes.
c. Sufficient funds are available in the approved Operating or Capital
budget to pay for the goods and services.
d. An authorized Purchase Order has been provided to the initiating
department for the goods and services.
14.2.6.2. An informal quotation is a process where suppliers are requested to
submit quotations on specific goods or services. This process does not
involve advertising, sealed bids, or the preparation of formal quotation
documents.
14.2.6.3. The respective department shall submit to the Manager of Special
Projects a minimum of three quotations before the Town commits to any
vendor.
14.2.6.4. If only one quotation is received, the Town may exercise its right to
cancel the call for quotations.
14.2.6.5. The CAO and the Director have the authority to legally bind any
associated agreements or contracts.
14.2.6.6. Where appropriate, the Manager of Special Projects may deem it
necessary to acquire goods and services valued between $5,000 and
$15,000 by way of formal Request for Quotation (RFQ), Tender or
Request for Proposal (RFP).
14.2.7.
For Purchases between $15,000 and $50,000 - Formal Request for Quotation
(RFQ)
14.2.7.1. This process is undertaken where all of the following criteria exist:
a. The requirement for goods and service scan be defined and for
which a clear and single solution exists.
b. The total cost is greater than $15,000 and less than $50,000
excluding applicable taxes.
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c. Sufficient funds are available in the approved Operating or Capital
budget to pay for the goods and services.
d. An authorized Purchase Order has been provided to the initiating
department for the goods and services.
14.2.7.2. An RFQ is a competitive process where suppliers are requested to
submit quotations on specific goods or services. The formal process
includes:
a. Preparation of an RFQ document by the Manager of Special
Projects, in coordination with the initiating department. This
document provides the prospective bidders with clear instructions,
specifications, terms and conditions and a quotation form on which
bids are to be submitted.
b. A time and place where bids will close.
c. Invitation to bidders by public advertisement or direct invitation, at
the discretion of the Manager of Special Projects and the Project
Manager.
14.2.7.3. An RFQ will be issued by the Manager of Special Projects.
14.2.7.4. The CAO and the department Director have the authority to legally bind
any associated agreements or contracts.
14.2.7.5. Where appropriate, the Manager of Special Projects may deem it
necessary to acquire goods and services valued between $15,000 and
$50,000 by way of Tender or Request for Proposal (RFP).
14.3. Items and Services Valued Over $50,000 - Tender or Request for Proposal (RFP)
14.3.1.
Reports shall be provided by the issuing department Director for consideration and
approval of the award of contract. This report shall provide a summary of the bid
process and provide sources of financing, allocation of revenues and other
financial commentary where appropriate. The reporting structure is as follows:
14.3.1.1. Valued between $50,000 to $100,000 - Report submitted to the CAO for
consideration and approval.
14.3.1.2. Valued over $100,000 - Report submitted to Council for consideration
and approval.
14.3.2.
Copy of contract approval shall be provided to the Manager of Special Projects in
writing by way of CAO's approval or Council resolution.
14.3.3.
The Mayor and Clerk have the authority to legally bind any associated agreements
or contracts.
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14.3.4.
A Purchase Order is required prior to issuing Tenders or RFPs.
14.3.5.
The Town reserves the right to accept or reject any quotation.
14.3.6.
The issuing Department is responsible for maintaining current bonds, insurance
certificates and WSIB certificates, as called for in the bid documents. Copies of
executed contracts, containing the required insurance certificates, bonds and
financial securities and WSIB certificates, etc. shall be provided to the initiating
department, the consultant (if applicable), the contractor, Clerk, and Manager of
Special Projects.
14.3.7.
Tender
14.3.7.1. Used for items, services, or construction with precise specifications
valued over $50,000.
14.3.7.2. This process is undertaken in cases where all of the following criteria
exist:
a. The requirements for goods and services can be defined and for
which a clear and single solution exists.
b. The total cost of the goods and services is greater than $50,000
excluding applicable taxes.
c. Sufficient funds are available in the approved Operating or Capital
budget to pay for the goods and services.
d. An authorized Purchase Order has been provided to the initiating
department for the goods and services.
e. Bids can be submitting on a common pricing basis.
f.
Best value for the Town can be achieved by an award selection
made on the basis of the lowest bid that meets specifications.
14.3.7.3. A tender is a competitive process where suppliers are requested to
submit tenders with definitive specifications, volumes and scope of work.
The formal process includes:
a. Preparation of tender documents by the Manager of Special
Projects, in coordination with initiating department. This document
provides the prospective bidders with clear instructions,
specifications, contract terms and a tend form on which tenders are
to be submitted.
b. Official receipt and opening of bids.
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c. Invitation to bidders by public advertisement or direct invitation, at
the discretion of the Manager of Special Projects and the Project
Manager.
14.3.7.4. Tenders require a reply by a designated date and time, signed by a
corporate officer authorized to bind the Corporation. Any requested bid
deposits, securities, or bonds must be included with the submission.
Replies are delivered directly to the Clerks Department and are opened
at a public tender meeting. If only one tender is received, the Town has
the option of not opening the bid and closing the call for tender as
outlined in Section 15.6 - Only One Bid Received from a Call for Bids.
14.3.7.5. Tenders will be issued by the Manager of Special Projects.
14.3.7.6. The award of contract shall be to the lowest compliant bid, in keeping
with the specifications and past contractor performance.
14.3.7.7. Each sealed bid received in response to a tender call shall be reviewed
to determine whether a bid irregularity exists and if any, action is taken
according to the nature of the irregularity (see Appendix B).
14.3.8.
Request for Proposal (RFP)
14.3.8.1. Used for the engagement of professional and consulting services for a
project over $50,000 where a project design or execution plan is required
to be provided with the proposal submission.
14.3.8.2. This process is undertaken in cases where all of the following criteria
exist:
a. The requirements for goods and services cannot be specified.
b. The requirements of the Town are best described in a general
performance specification.
c. The total cost of the goods and services is greater than $50,000
excluding applicable taxes.
d. Sufficient funds are available in the approved Operating or Capital
budget to pay for the goods and services.
e. An authorized Purchase Order has been provided to the initiating
department for the goods and services.
f.
Best value for the Town can be achieved by an award selection
made on the basis of a specified RFP evaluation criteria ranking
scheme and analysis by an RFP evaluation committee.
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14.3.8.3. An RFP will be issued by the manager of Special Projects in cooperation
with the initiating department.
14.3.8.4. A standard RFP requires information from proponents that includes, but
is not limited to, qualifications and experience, strategy, approach,
methodology, scheduling, past performance, facilities and equipment,
references, as well as associated cost.
14.3.8.5. RFPs are not formally opened in public and are scored by a designated
Evaluation Committee using an evaluation scoring scheme based on the
submission criteria required in the proposal submissions. RFPs are not
awarded solely on the proposal price, but are awarded based on the
highest scoring compliant proposal and at the recommendation of the
Evaluation Committee. Price is a consideration during the evaluation
and the weight of the proposal price shall vary based on the specific
project program. It is not necessary to disclose prices or terms at the
time of submission. If only one proposal is received, the Director has the
options of not opening the proposals and closing the call for proposals,
as outlined in Section 15.6 - Only One Bid Received from a Call for Bids.
14.4. Summary Table:
Estimated
Purchase
Acquisition Method
Approval
Granted
By:
Signing
Authority
For
Contracts &
Agreements
Direct
Acquisition
Request for
Quotation (RFQ)
Tender
Request
for
Proposal
(RFP)
Informal
Formal
Up to $5,000
Manager
Not
Applicable
$5,000 to
$15,000
*
*
Director
CAO &
Director
$15,000 to
$50,000
*
*
Director
CAO &
Director
$50,000 to
$100,000
CAO
CAO &
Director
Over
$100,000
Council
Mayor &
Clerk
*A tender or RFP may be used in place of an RFQ if the project scope deems it more
appropriate to use these methods. See Appendix C - Tenders vs. RFPs.
check mark
check mark
check mark
check mark check mark
check mark check mark
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14.5. Pre-Bid Request Activities
14.5.1.
Sealed bid processes may be preceded by a call for Expressions of Interest (EOI)
or a Request for Prequalification. These activities are conducted at the discretion
of the initiating department and prepared and issued by the Manager of Special
Projects.
14.5.2.
Expression of Interest (EOI)
14.5.2.1. Used to determine a set of invited bidders and available service
providers prior to issue of an invitation to bid.
14.5.2.2. EOIs do not result in the award of contract. EOIs precede a call for bids
and do not request pricing information.
14.5.2.3. The Manager of Special Projects will issue an EOI at the request of the
initiating Director to determine a set list of users who are capable of
providing a particular product or service, when the availability of said
product or service is unknown.
14.5.2.4. EOIs require potential bidders to supply background information that may
include corporate history of their business, services/products they
supply, previous similar projects completed, catalogues, and any other
information that provides the Town with an indication of the ability of the
business to provide the required products or services. The compliant
responses to the EOI will make up the list of bidders that the invited bid
request will be provided to.
14.5.2.5. EOIs are advertised publicly, and responses to the EOI are required by a
designated date and time.
14.5.3.
Request for Prequalification
14.5.3.1. Used to determine a list of qualified and competent bidders prior to issue
of an invitation to bid based on having met and provided all required
prequalification criteria.
14.5.3.2. Prequalifications do not result in an award of contract. Prequalifications
precede a call for bids and do not request pricing information.
14.5.3.3. A request for prequalification is issued by the Manager of Special
Projects at the request of the initiating department.
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14.5.3.4. Prequalifications are used to identify contractors or consultants who
would be allowed to submit bids for certain projects. Prequalification is
typically used where the project requires highly technical expertise.
Prequalification requests that bidders demonstrate that they have the
ability to undertake the scope of work for the project. Only qualified
bidders are eligible to submit a bid when a call for bids has been issued.
14.5.3.5. A reply the request for prequalification is required by a designated date
and time, signed by an officer authorized to legally bind the corporation.
15. SEALED BID PROCEDURES
15.1. Specifications
15.1.1.
All sealed bid documents must first be reviewed and approved by the Manager of
Special Projects and secondly by the Risk Manager prior to being issued.
Issuance of sealed bid documents to bidders will be out of a centralized location at
Town Hall, coordinated by the Manager of Special Projects.
15.1.2.
If in the opinion of the Director, after consultation with the Manager of Special
Projects, it is not feasible for the Town to prepare defined specifications in order to
solicit bids, an RFP for Professional Services, Consultant, or Engineer may be
issued for this purpose. If, in the opinion of the Director, a firm has acute
knowledge of the project specifics, or has past experience relating to the scope of
work involved in the project where it would be disadvantageous for another firm to
prepare the specification documents, the preparation may be assigned to that
particular firm upon approval of the CAO.
15.1.3.
Engineers or Consultants employed to manage project projects and perform
contract administration shall work with the Manager of Special Projects to ensure
that projects are prepared and administered in conformance to this policy.
15.1.4.
When sealed bid documents are being prepared by the Manager of Special
Projects, the issuing department must provide the scope of work specifications
and technical details to the Manager of Special Projects to be included in the
documents prior to preparation.
15.1.5.
Documents and any other information provided to potential suppliers and bidders
must identify the minimum requirements and specifications that suppliers and
bidders must meet.
15.1.6.
Where practical, specifications or terms of reference should be considered that are
detailed but not brand specific to leave room for potential vendors to provide
alternatives in the event that an equal or better-proven product or method is
available.
15.1.7.
Vendors, or potential vendors, should not be requested to expend time, money, or
effort on design or in developing specifications beyond the normal level of service
expected from vendors.
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15.1.8.
The Town reserves the right to charge a fee to potential bidders and proponents
for the acquisition of sealed bid documents.
15.1.9.
Insurance requirements specified in bid documents for service providers and
contractors will be specified and approved by the Town's Risk Manager. The
Town may alter the insurance requirements stated in this policy at their discretion
and at any time.
15.1.10. All sealed bid documents shall include provisions regarding the Accessibility for
Ontarians with Disabilities Act (AODA). See Section 31.
15.2. Bonds and Securities
15.2.1.
The Manager of Special Projects, the Director of Financial Services, and the
Project Manager shall agree on the most appropriate measures to guarantee
execution and performance of a contract which may include, but are not limited to:
15.2.1.1. Financial bonds for contract performance.
15.2.1.2. Certified cheque, bank draft or money order. These are permitted for
contracts that shall be reasonably competed within three months of the
award of contract.
15.2.1.3. Irrevocable Letter of Credit naming the Town of Amherstburg as
beneficiary that permits draws to be made without inquiry by the issuer
as to whether the Town has a right between itself and the supplier to
make a demand.
15.2.1.4. Other forms of security deposits, provisions for liquidated damages,
progress payments and holdbacks.
15.2.2.
The Town reserves the right to use e-bonds and e-bond services if it so chooses.
15.2.3.
Bid Bonds
15.2.3.1. A bid bond guaranteeing entry into contract shall be included the sealed
bid submission envelope for:
a. Municipal construction projects.
b. Special maintenance contracts.
c. Demolition contracts.
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15.2.3.2. The amount of the bid bond shall be at the discretion of the Manager of
Special Projects and the Project Manager, but shall not be less than 10%
of the bid. The Town may waive the requirement of a bid bond if the cost
of obtaining said bid bond is disproportionate to the cost of the contract
prior to issuing a bid request.
15.2.3.3. A certified cheque from the bidder in the required bid bond amount may
be submitted in lieu of a formal bid bond document where the project can
reasonably be expected to be complete within three months or less.
15.2.3.4. All forms of security shall be returned to unsuccessful bidders when the
contract has been awarded and executed.
15.2.4.
Performance Bond and Labour and Materials Payment Bond
15.2.4.1. Performance Bonds and Labour and Materials Payment Bonds are
required for all construction projects valued over $75,000.
15.2.4.2. Performance Bonds are required for all service contracts and non-
construction projects valued over $75,000.
15.2.4.3. The Manager of Special Projects and the Risk Manager may require
Labour and Materials Payment Bonds for any project with any estimated
value if it is deemed to be in the best interests of the Town to do so.
15.2.4.4. Where Performance Bonds and Labour and Materials Payment Bonds
are required, the amount of such security shall be no less than 50% of
the amount of the total project cost. The Manager of Special Projects,
Risk Manager, and the Project Manager shall have the discretion to
require security in excess of 50% of the total project cost, if in their
opinion it would be in the best interests of the Town to do so.
15.2.5.
Maintenance Bond
15.2.5.1. The amount of the bond shall be determined by the Manager of Special
Projects and the Risk Manager and shall not be less than 50% of the
total project cost.
15.2.5.2. The Manager of Special Projects and the Risk Manager may require a
Maintenance Bond for any project with any estimated value if it is
deemed to be in the best interests of the Town to do so.
15.2.6.
Holdback
15.2.6.1. If it has been deemed that a risk to the Town of Amherstburg has not
been adequately limited by the progress payment provisions of the
contract, an additional minimum holdback of 10% may be required.
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15.2.6.2. Holdback funds on construction contracts may be released when all of
the following has occurred:
a. The contractor submits a statutory declaration that accounts have
been paid and that all documents have been received for all damage
claims.
b. A clearance from WSIB has been provided for any arrears of WSIB
assessments.
c. It has been verified that there are no existing construction liens
applied to the project and all requirements of the Construction Liens
Act have been satisfied.
d. Receipt of certification, where applicable, that liens have not been
registered.
e. Certification from the Director that the conditions of the contract have
been satisfied.
15.3. Sealed Bid Management
15.3.1.
The Manager of Special Projects will prepare and/or approve all sealed bid
documents and advertise and issue on behalf of the issuing department through a
standardized process and at a centralized location at Town Hall.
15.3.2.
Sealed bid documents and associated addenda will be issued and received by the
Manager of Special Projects who will act as the Corporate Contact between the
Town and potential bidders, proponents and local construction associations for all
sealed bid procedures. All inquiries regarding sealed bid processes will be
addressed to the Corporate Contact. Inquiries regarding technical aspects of the
project will be directed to the Project Manager, who may also be named as an
additional Corporate Contact in the bid documents.
15.3.3.
After the contract has been awarded, the Project Manager will oversee the
completion of the contract per the specifications identified in the contract.
15.4. Sealed Bid Submissions
15.4.1.
Bids or proposals for the Town of Amherstburg in the form of the RFQ, RFP or
Tender shall be submitted and received in the manner prescribed in the sealed bid
specifications. Any bid documents that are submitted or received in a manner
contrary to that which is prescribed in the bid document will be deemed an
irregular bid in accordance with Appendix B - Bid Irregularities.
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15.4.2.
Where a mandatory site meeting is specified and required as part of the sealed bid
process, only those proponents attending the mandatory site meeting shall be
permitted to submit a bid for that project. Bids from proponents who did not attend
mandatory site meetings will be immediately disqualified in accordance with
Appendix B - Bid Irregularities.
15.4.3.
All bid documents submitted to the Town of Amherstburg by formal bid process
shall be submitted to the Town in a sealed envelope and shall be clearly marked
as to the contents bearing the provided envelope cover sheet as provided in the
bid documents. Any bids received in an unsealed envelope and/or absent of any
provided envelope cover shall be immediately disqualified in accordance to
Appendix B - Bid Irregularities.
15.4.4.
Faxed or emailed bids will not be accepted unless otherwise stated in the bid
documents.
15.4.5.
Bids submitted by proponents/bidders shall include all of the mandatory
information specified in the bid document. Missing or incomplete mandatory
information shall cause a bid to be immediately disqualified in accordance to
Appendix B - Bid Irregularities.
15.4.6.
A proponent may submit more than one bid up to the official closing time. The last
bid document received from a proponent shall supersede and invalidate all bids
previously submitted by that proponent.
15.4.7.
Proponents may withdraw their bid in accordance to the process specified in the
bid documents.
15.4.8.
Bids received after the official closing time shall be immediately disqualified and
returned unopened to the bidder.
15.4.9.
Bids received without the application of the corporate seal may be considered
executed provided the signatory has declared that they are legally able to bind the
corporation. Should this declaration be absent, the Town may review the situation
on a case by case basis as noted in Appendix B - Bid Irregularities.
15.4.10. Where a bid requires a supplied list of all subcontractors to be employed by the
contractors on a project, any proposed changes to or deletion of subcontractors
after the public opening of the bid shall require the prior approval of the Project
Manager.
15.4.11. The Town of Amherstburg reserves the right to declare a bid to be unbalanced, as
defined in Section 4.0 - Definitions.
15.4.12. The Town of Amherstburg is under no obligation to accept the lowest or any bid
received through sealed bid process and the Town will not accept any
responsibility, financial or otherwise, claimed by or resulting from, a proponent's
response to a bid document.
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15.4.13. The Town of Amherstburg reserves the right to withdraw or change the scope of
any bid document without providing reason for such change or withdrawal at any
time during the bid process up to the point where the contract has been awarded.
The Town will not accept responsibility, financial or otherwise, for any proponent
responding to such withdrawal or changed bid document.
15.4.14. The Town of Amherstburg reserves the right to issue addendums to a bid
document as specified in each individual bid document prior to the closing date
and time. Bidders must acknowledge receipt of said addendums with their
submissions on the appropriate bid form.
15.4.15. The Town of Amherstburg reserves the right to accept or reject any bid at any time
during the bid process and will not accept responsibility, financial or otherwise, for
any proponent responding to such call for bids.
15.4.16. Bidders responding to a bid request by the Town of Amherstburg are responsible
for reviewing the bid documents in their entirety, in conjunction with this policy and
shall be responsible for responding to a bid request in the manner prescribed in
the bid document and this policy.
15.5. Sealed Bid Opening and Analysis
15.5.1.
Opening of RFQs and tenders will be organized by the Manager of Special
Projects. The Project Manager, Consulting Engineer (if applicable), Director of
Financial Services, and Clerk shall be in attendance to witness the proceedings. If
one of the aforementioned employees is not able to attend an opening, a delegate
may be assigned.
15.5.2.
Tenders and RFQs will be opened by the Manager of Special Projects, who will
declare the following:
15.5.2.1. Bidder name.
15.5.2.2. If a bid bond was required as part of the bid document, its presence shall
be acknowledged or its absence announced.
15.5.2.3. Total amount of the bid.
15.5.2.4. Acknowledgement of addendum/addenda.
15.5.3.
Verification of the total amount of each quotation announced and recorded at the
opening shall be subject to correction following an analysis of the submitted bids
for bid irregularities.
15.5.4.
Proposals received as a result of an RFP will be first opened by the Manager of
Special Projects and Project Manager to confirm compliance to submission
standards and then further evaluated and scored by an appointed Evaluation
Committee.
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15.5.5.
All submitted bids, proposals, and tenders shall be verified, tabulated, and
analyzed for errors and omissions by the Manager of Special Projects. A
document containing the results of the bid analysis will be provided to the issuing
department. This review and analysis must be conducted prior to the
recommendation to Council on the award of contract.
15.5.6.
If the procurement documents were prepared in cooperation with an Engineer,
Consultant or other service provider, the bids shall further be analyzed by said
professional with a result of their review provided in writing, and shall be included
as an attachment to any reports to the CAO or Council.
15.6. Only One Bid Received From a Call For Bids
15.6.1.
In the event that only one bid is received from a call for bids, the unopened bid
may be returned to the bidder, when in the opinion of the Project Manager and the
Manager of Special Projects, additional bids could have been secured. The Town
may recall for bids at a later date.
15.6.2.
In the event that only one bid is received in response to a call for bids, the bid may
be opened and evaluated in accordance with this policy and the bid may be
considered by the Town. In order to open the bid, bidder must sign a waiver
acknowledging that the Town has the right to accept, reject, or negotiate the
submitted bid. Failure to sign the waiver will result in "No Acceptable Bids
Received" as stated in section 15.7 - No Acceptable Bids Received in this policy.
15.7. No Acceptable Bids Received
15.7.1.
The Town has the right to deem that no acceptable bids were received where, in
the opinion of the Project Manager, it was determined one of the following
conditions exist:
15.7.1.1. The bid prices exceed the Town's budget for that purpose.
15.7.1.2. The bid specifications are determined to be inadequate or ambiguous, or
otherwise in need of revision.
15.7.1.3. The goods or services forming in the subject of the tender are no longer
required.
15.7.1.4. It is realized that the terms and conditions of the tender did not allow for
consideration of all cost factors in the relation to the supply.
15.7.1.5. The needs of the Town can be satisfied by a less expensive article
differing from which the bids were invited.
15.7.1.6. The bids are not responsive to the intent or requirement of the bid
document and do not represent fair market value.
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15.7.2.
If the Town deems that no acceptable bids were received, a revised call for bids
may be issued in an effort to obtain an acceptable bid.
15.7.3.
The Town will not be responsible financially or otherwise, to a bidder who has
responded to the bid process wherein no acceptable bids were received.
15.7.4.
The Manager of Special Projects, in consultation with the CAO, may waive the
need for a further bid call and decide to negotiate with the sole compliant bidder if
the total cost of the sole compliant bid is in excess of the approved budget for that
acquisition. If the Town negotiates with a bidder, the Town may discontinue
negotiations at any time and reject all bids received.
15.8. Equal Bids Received
15.8.1.
If after a call for bids, two or more bids are received which are equivalent in value
and these bids represent the lowest compliant bids, the Manager of Special
Projects may provide these bidders with the opportunity to provide further bids. If
at the result of this second submission of bids a tie persists, other factors may be
considered that include, but are not limited to delivery dates, completion dates,
sales service records, previous project history and references.
15.8.2.
If a decision cannot be made to break the tied bids after all the factors have been
considered, the successful bidder will be selected by random draw conducted by
the Manager of Special Projects and witnessed by the Project Manager, the
Director of Finance, the Clerk, and the two tied bidders. A bidder may elect not to
attend the draw, however the draw will proceed regardless.
15.9. Bid Irregularities
15.9.1.
Bid irregularities will be classified and handled in the manner described in
Appendix B - Bid Irregularities.
15.9.2.
The town reserves the right to waive minor irregularities or deem an irregularity not
listed in Appendix B.
15.10. Council Privilege
15.10.1. Council shall have the right to approve or reject any submitted tenders, proposals,
or bids or approve or reject any part thereof, where Administration is requesting
their counsel.
16. BIDDER ELIGIBILITY
16.1. The Town reserves the right to restrict the eligibility of a bidder, or reject a submitted bid,
based on the following circumstances:
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16.1.1.
Poor Contractor Performance Rating
16.1.1.1. Contractors with unsatisfactory Contractor Performance Ratings on file
shall not be eligible to bid on Town projects until the performance rating
has expired. See Section 23 - Contractor Performance Rating System.
16.1.2.
Litigation
16.1.2.1. The Town shall reject a tender, proposal or quotation submitted by a
bidder if the bidder, or any officer or director of the bidder, is or has been
engaged, either directly or indirectly through another corporation, in a
legal action against the Town, its elected or appointed officials, and
employees in relation to any other contract or services, or any matter
arising from the Town's exercise of its powers, duties, or functions. A
rejection under this clause shall be determined upon the Town's
experience with the bidder and the likeliness that awarding the contract
to the bidder will incur increased staff and legal costs in the
administration of the contract.
16.1.3.
Poor References
16.1.3.1. If references provided by the contractor indicate that past performance
by the contractor has contributed to unsavory consequences for a
property owner, this may disqualify the contractor from being eligible to
bid on Town projects. This can include circumstances of, but are not
limited to, non-performance, poor quality workmanship, failure to meet
projected deadlines, non-attendance, non-completion, etc.
16.1.4.
Construction Liens
16.1.4.1. Contractors that have a Construction Lien currently registered against
them, or a property on which they are conducting work under their
leadership, shall not be eligible to submit bids on Town of Amherstburg
bid opportunities.
16.1.5.
Labour Force Strikes
16.1.5.1. Contractors that are currently embroiled in a labour strike by their
workforce shall not be eligible to submit bids for Town projects while the
labour strike is in effect.
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17. CONTRACTS AND AGREEMENTS
17.1. Formal agreements or contracts shall be issued when the resulting acquisition is complex
and includes various particular terms and conditions, or when the risk Manager and the
Manager of Special Projects deem appropriate.
17.2. Council must approve the award of contract or agreement for acquisitions over $100,000
prior to the contract being officially awarded to the selected proponent.
17.3. Formal agreements and contracts entered into as a result of a commitment to acquire
goods or services shall be in a form satisfactory to the Town and shall be executed by the
individuals authorized to execute contracts and agreements for the purchasing threshold
that the acquisition falls under as follows:
17.3.1.
Under $100,000 - signed by the CAO and requisitioning Director
17.3.2.
Over $100,000 - signed by the Mayor and the Clerk
17.4. Prior to the commencement of any work or the supply of any goods and services where the
value is over $5,000, the contractor must submit to the Town the required documentation to
form a complete contract as indicated by the bid documents that may include, but is not
limited to:
17.4.1.
Required Bonds and Securities
17.4.2.
Proof of Insurance
17.4.3.
WSIB Certificates
17.5. Projects shall not commence, or the provisions of the items acquired shall not be supplied,
until the formal agreement or contract has been executed by all parties and all insurance,
bonds and securities have been received, if said agreement is deemed necessary.
17.6. Where a contract may extend beyond the term of Council, the contract shall contain
provisions to minimize the financial liability of the Town of Amherstburg should the
subsequent Council not approve sufficient funds to complete the contract and the Town
may terminate the contract.
17.7. No amendment or revision that alters the original contract price shall be reflected without a
corresponding alteration to the scope of work. Change orders shall be issued and
executed by the Director for expanded works. Where expenditures for contract
amendments combined with the original contract price exceed the contract price approved
by Council by over 5%, a report to Council shall be submitted by the Director
recommending the expanded works. If the contract amendment results in an overage in
the approved budget for that item, this report must also indicate same and provide the
source of finance for the overage, as approved by the Director of Financial Services.
Approval of Council must be provided prior to the execution of the change order.
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17.8. Where contracts and agreements provide provisions for optional extensions after the
original contract period, and where the acquisition valued at $100,000 and over, the
Director shall provide to Council for their approval, a report that summarizes the following:
17.8.1.
That a contractor performance review has been conducted and the performance
has been satisfactory in meeting the terms of the contract.
17.8.2.
Why the renewal is in the best interest of the Town of Amherstburg.
17.8.3.
Any contractual increases as a result of the extension of the original contract and
the funding sources as approved by the Director of Financial Services.
17.9. Original copies of executed contracts shall be provided to the following:
17.9.1.
Initiating Department
17.9.2.
Contractor
17.9.3.
Consultant (where applicable)
17.9.4.
Clerk
17.10. A reproduced copy of the executed contract shall be provided to the Manager of Special
Projects.
18. CONTRACT PROGRESS PAYMENTS
18.1. All progress payment certificates, final certificates, release of holdback certificates, detail
sheets, and back-up documentation shall be prepared by the Project Manager, or provided
to the Project Manager by the engineering consultant. Payment certificates shall be
accompanied by invoices supplied by the contractor for that certificate billing period, that
include proof of payment for all subcontractors and suppliers. The Project Manager shall
review the invoices and claims for payment and provide to the appropriate signing authority
for payment approval.
18.2. If a discrepancy exists in the quantities provided in a progress payment certificate, payment
shall be withheld for that certificate until the discrepancy is resolved in a manner
satisfactory to the Town.
19. SUPPLIER DISCRIMINATION
19.1. The Discriminatory Business Practices Act and the Trade Agreements forbid the granting of
a preference to a local supplier as a form of discrimination. Therefore, in compliance with
the law and Trade Agreements, the Town shall not discriminate between the deliverables or
suppliers of a particular province, city, or geographic region and the deliverables or
suppliers of another province, city, or region.
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20. INDEMNITY
20.1. The Town shall be indemnified for and against any claim, loss, cost, or damage resulting
from a supplier's obligations under a contract.
21. INSURANCE
21.1. Minimum insurance required by service providers, contractors, or other professional
services shall be required by the Town and will be specifically stated in sealed bid
documents.
21.2. The value of insurance required shall be at the discretion of the Town's Risk manager, who
may increase the insurance requirements or may identify another risk requiring coverage
for a project at any time provided the increased requirement is disclosed in the sealed bid
documents.
21.3. The Town of Amherstburg shall be named as an additional insured in the contractor's
insurance policy and the policy shall contain a cross-liability and severability of interest
clause. This policy shall also indemnify the Town from and all claims, demands, losses,
costs, or damages resulting from the performance of a contractor's obligation under a
contract.
21.4. Insurance policies shall not be altered, cancelled, or allowed to lapse without having
provided thirty days' notice in writing to the Town. If alterations are made to the policy in
any manner that would affect the Town as to the coverage specified in the policy for any
reason, thirty days' notice shall be given by the insurer to the Town.
21.5. Prior to any contractor commencing work on behalf of the Town, the contractor shall
provide a certificate of insurance to the Town.
21.6. Contractors shall maintain insurance that provides adequate coverage for loss by burglary,
theft, or fire of any stock or equipment and dishonesty of employees or agents of the
contractor on Town property.
21.7. Contractors shall maintain adequate automobile insurance that will provide coverage for
bodily injury and property damage caused by vehicles owned by the contractor.
22. COMPLETION OF CONTRACTED SERVICES
22.1. Projects that have been acquired through sealed bid process shall follow specified project
start up and close out procedures conducted and documented by the Project Manager, with
copies being provided to the Manager of Special Projects.
22.2. Start up and close out procedures shall be prescribed by the Manager of Special Projects.
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23. CONTRACTOR PERFORMANCE RATING SYSTEM
23.1. Upon completion of contracted services, a post-project performance review will be
arranged between the Project Manager and the Contractor. This review will provide an
overview of the Contractor's performance and provide a recommendation by the Project
Manager as to whether the Contractor's performance was satisfactory or unsatisfactory.
23.2. The Contractor's performance review will be documented using prescribed forms as
defined by the Manager of Special Projects, and will be acknowledged by both the Project
Manager and the Contractor. Should a Contractor refuse to sign the performance review
document, the review will be considered unsatisfactory, regardless of outcome.
23.3. Performance reviews shall be kept on file by the Manager of Special Projects.
23.4. Contractors who receive an unsatisfactory performance review will not be eligible to bid on
Town projects for a two-year period from the date of the review. Bids received will be
returned unopened to ineligible bidders.
23.5. The CAO may extend or cancel a Contractor's ineligibility period at his discretion.
24. EXCEPTIONS TO PROCUREMENT PROCEDURES
24.1. Exceptions to specified procurement and purchasing procedures may be requested by a
Director and approval shall be granted by the CAO.
24.2. Exceptions to the Procurement Policy will be documented in writing with records kept on file
by the Manager of Special Projects.
24.3. Exceptions will only be considered by the CAO in the following circumstances:
24.3.1.
Volatile Market Conditions
24.3.1.1. Notwithstanding the provisions of this policy, where market conditions
are such that long term price protection cannot be obtained for goods
and services, the Director will obtain competitive prices for short term
commitments until such a time reasonable price protection and firm
market pricing is restored.
24.3.2.
Sole Source Purchasing
24.3.2.1. Purchase by negotiation may be adopted if any of the following
conditions apply:
a. Goods and services are in short supply due to market conditions.
b. The sources of supply are so specialized or restricted to the extent
that there is not effective price competition.
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c. Consideration of substitutes is precluded due to any of the following:
i.
Components or replacement parts for which there is no
substitute.
ii.
Compatibility with an existing product, facility, or service is
required.
iii.
Specific standards are adopted by Council.
d. There is documented evidence that the extension or reinstatement of
an existing contract would prove most cost effective or beneficial (a
savings of a minimum of 10% of the original contract must be
proven). The contract shall only be reinstated if the previously
contracted work was substantially completed less than one calendar
year.
e. Work is required at a location where a contractor has already been
secured through a procurement process, with established unit prices
and it is considered to be beneficial and cost effective to extend the
unit prices for the work to be completed for the Town. This shall only
apply if the project for which the unit prices are to be extended was
substantially completed less than one calendar year.
f.
After the procurement process has closed, it may be necessary for
discussion to clarify and/or make significant revision(s) to the initially
defined requirements of the call for bids.
g. When only one bid is received through the bid solicitation process
and it is impractical to recall the requirements of the call for bids.
24.3.3.
Pilot Projects
24.3.3.1. The Town may participate in an experimental trial or test to confirm that a
program or initiative is attainable and within the best interests of the
Town to pursue. Funds may be extended to initiate said program trial or
test, regardless if the initiative is executed past the trial period or test
phase.
24.3.3.2. A contractor or service provider coordinating a pilot project may be
directly acquired, upon approval of the CAO.
24.3.4.
Council Privilege
24.3.4.1. Council, by means of official recommendation, may waive the
Procurement Policy on a case by case basis.
Consideration of substitutes is pre
due to any of the following:
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24.3.5.
Emergency Purchasing
24.3.5.1. Notwithstanding the provisions of this policy, the following shall only
apply in case of an emergency, when an event occurs that is determined
by a Director and the CAO to be:
a. A threat to public health.
b. The maintenance of essential town services.
c. The welfare of persons of public property, or
d. The security of the Town's interests and the occurrence requires the
immediate delivery of goods or service and time does not permit for
competitive bids.
24.3.5.2. Sole sourcing because of an emergency on the basis noted in section
23.3.5.1 shall be applied in accordance to section 12 - Emergency
Purchasing provided in this policy.
24.3.6.
Cooperative or Joint Venture
24.3.6.1. The Town may participate with other government agencies or public
authorities in cooperative purchasing and acquisition ventures, or utilize
a "piggy back clause" within public sector contracts whenever it is
determined to be in the best interest of the Town to do so.
24.3.6.2. The Town may enter into arrangements with area municipalities, local
boards, and other public bodies or authorities for the purchase of
deliverables on a cooperative or joint basis where there are economical
advantages to doing so, provided that under any such approved
arrangement the methods utilized are competitive and adequate
arrangements have been made for the provision of all necessary support
required for the method of purchase.
24.3.7.
Unsolicited Proposal
24.3.7.1. Any purchasing activity resulting from the receipt of an unsolicited
proposal shall comply with the provisions of this policy. A contract
resulting from an unsolicited proposal shall be awarded on a non-
competitive basis only when the purchasing requirements comply with
the non-competitive purchasing policies and procedures.
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24.3.8.
Consulting and Professional Services
24.3.8.1. If it has been deemed necessary to obtain a firm to provide consulting
and/or professional services, the CAO may waive the requirement to use
a sealed bid process for the acquisition of these services and may
approve a consultant or professional services for a particular project
without competitive process where one or more of the following
conditions exist:
a. The works are a continuation of a previous project.
b. The firm has demonstrated unique qualifications to undertake the
project including in-house experience or historical data of the
Municipality.
c. Time constraints restrict the ability to seek proposals or quotations
that would result in increased costs or loss of provincial or federal
funding.
24.3.9.
Group Procurement Organizations
24.3.9.1. The Town may participate in programs provided by not-for-profit group
procurement organizations that offer competitively-sourced and priced
products and services through collaborative sourcing agreements.
24.3.9.2. These organizations conduct competitive bidding processes on behalf of
Public Sector organizations and provide access to the Town to the
details of the procurement process and associated records.
24.3.9.3. The Manager of Special Projects may provide a roster of products and
services available to the Town by a group procurement organization to
minimize costs and maximize approved budgets.
25. CONFLICT OF INTEREST
25.1. Where an elected official, officer, or employee of the Town either on his own behalf or while
acting for, by, with, or through another, has any pecuniary interest, direct or indirect, in any
purchasing matter present at any meeting at which the purchasing matter is the subject of
discussion or consideration, the elected official, officer or employee of the Town shall:
25.1.1.
Not take part, in any way, in the procurement process for which the conflict exists
including, but not limited to, the securing of pricing or preparation of bid
documents, contact with vendors participating in the bid, the official closing and
recording of bids received, evaluation and discussion of bids, negotiation,
authorization or approval of the contract, authorization or approval of payments
under the contract, or any other matter related to the purchase.
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25.1.2.
Disclose the interest and general nature thereof prior to any discussion or
consideration of the matter at any time.
25.1.3.
Not take part in the discussion of, or vote on, any question in respect to the matter.
25.1.4.
Not attempt in any way, whether before, during, or after the meeting, to influence
the voting in respect of the matter.
25.2. All consultants, contracted services, and vendors must disclose to the Town prior to
accepting an assignment, signing a contract, and/or providing goods and/or services, any
potential conflict of interest. If a conflict of interest exists, the Town, as directed by the
department Director, may at its discretion, withhold the assignment, contract, or provision of
goods and/or services.
25.3. If during an assignment, contract, or delivery of goods/services the service provider or
vendor is retained by another client giving rise to a potential conflict of interest, the service
provider shall so inform the Town.
25.4. At any time during a bid process beginning with the preparation of a bid document through
to the award and commitment stage, no person shall accept, directly or indirectly, from any
person or organization to which the acquisition is, or might be awarded, anything of any
value or preferential treatment including rebates, gifts, meals, money, event tickets or
special privileges.
26. INVENTORY AND MATERIAL
26.1. Department Managers shall be responsible for inventory management and shall ensure a
physical inventory of stock items be taken on a periodic basis and shall allow for adequate
inventory obsolescence.
26.2. The Manager of Special Projects may alter the source of a supply of a deliverable in
consultation with the initiating department, if it is in the best interests of the Town to do so.
26.3. Upon receipt of deliverables, Managers shall promptly inspect the deliverable for
compliance with the terms of the contract. The Manager of Special Projects shall be
notified of any deviation of the terms of the contract and shall assist as required to rectify
the deviation.
27. DISPOSAL OF SURPLUS GOODS
27.1. Directors shall notify the CAO of items deemed surplus that have a value of $5,000 or more
and approval shall be granted by the CAO to dispose of these surplus goods.
27.2. Prior to the disposition of surplus goods, the Director shall circulate a list of the surplus
assets available for use to all Town departments and they may be acquired by other Town
departments free of charge.
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27.3. Surplus assets not required by any Town department shall be sold or disposed of by the
initiating department via formal auction, internet auction, tender, trade-in, demolition,
recycling, or disposal at landfill.
27.4. Profit from the disposition of surplus goods will be credited to the initiating department in a
defined holding account for future reserve fund allocation.
27.5. Surplus assets may also be awarded to a non-profit entity upon approval of the CAO.
27.6. Disposal of unsafe or hazardous surplus items shall be the responsibility of the originating
department and shall be conducted in accordance with this policy.
28. PETTY CASH
28.1. Every effort shall be made to minimize usage of petty cash and to make purchases on
Town accounts without the direct exchange of cash funds. Petty cash is to be used only in
instances where no other option is practical.
28.2. The CAO may choose to eliminate or implement a petty cash till at their discretion.
28.3. The use of petty cash shall adhere to the Cash Handling Policy.
28.4. Petty cash purchases shall not exceed $200.
29. CORPORATE CREDIT CARDS
29.1. Corporate credit cards have been entrusted to authorized senior administration. These
credit cards are to be used in compliance with the Procurement Policy and the issuing
creditor's terms and conditions.
29.2. Corporate credit cards limits shall be set by the Director of Financial Services in
consultation with the CAO.
29.3. Every effort shall be made to make purchases on Town accounts without having to utilize
corporate credit cards. Credit cards are to be used only in instances where charging on
Town accounts or using a purchasing card is not practical.
29.4. Only certain types of vendors are registered to corporate credit cards. Transactions at
vendors that are not registered with the corporate credit card will be declined.
29.5. Monthly statements will be provided to card holders and all credit card transactions must
be reconciled with original receipts to the Accounts Payable Department as soon as
possible, having been first approved by the cardholder's supervisor (if applicable).
29.6. Credit cards are user specific and delegation of authority is not permitted when making
transactions.
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29.7. The cardholder is responsible for immediately reporting a lost or stolen credit card first to
the credit card company, and secondly to the Director of Financial Services.
29.8. The credit card is the property of the Town of Amherstburg and is intended to be used for
necessary circumstances that keep business moving forward.
29.9. Under no circumstances may the corporate credit card be used for personal purchases or
cash advances.
29.10. Failure of the cardholder to adhere to the provisions and regulations of the corporate credit
card may result in the loss of privileges and may result in disciplinary action.
30. PURCHASING CARDS (P-CARDS)
30.1. Purchasing cards shall be used to procure low-value expense items.
30.2. Purchasing cards will be issued to employees approved to make purchases on behalf of
the Town for small dollar purchases.
30.3. P-card purchase receipts shall be signed by cardholders for validation purposes. Receipts
must be supplied to the Accounts Payable department at the first available opportunity after
purchase, with associated General Ledger account numbers and managerial authorization.
Monthly statements will be provided to the Accounts Payable Department who will reconcile
this statement with the associated P-card purchase receipts.
30.4. Purchasing cards are user specific and delegation of authority is not permitted when
making transactions.
30.5. The cardholder is responsible for ensuring the safety and integrity of the purchasing card at
all times. Cardholders shall immediately report a lost or stolen purchasing card to the
Director of Financial Services.
30.6. The purchasing card is the property of the Town of Amherstburg and is intended to be used
for necessary circumstances that keep business moving forward.
30.7. Under no circumstances may the purchasing credit card be used for personal purchases.
30.8. Failure of the cardholder to adhere to the provisions and regulations of the purchasing card
may result in the loss of privileges and may result in disciplinary action.
30.9. The Director of Financial Services shall coordinate applications for card users. Department
Managers shall be responsible for immediately notifying the Director of Financial Services
of any employment status changes with cardholders in their respective departments.
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31. ACCESSIBILITY FOR ONTARIANS WITH DISABILITIES ACT (AODA)
31.1. Contractors and service providers, including subcontractors if applicable, that provide
services to the public or third parties on behalf of the Town of Amherstburg shall ensure
that all its employees, agents, volunteers or others for whom the contractor is legally
responsible receive training regarding the provision of the goods and services
contemplated herein to persons with disabilities in accordance with Section 6 of the Ontario
Regulation 429/07 (the "Regulation") made under the Accessibility for Ontarians with
Disabilities Act, 2005, as amended (the "Act"). The contractor shall ensure that such
training includes, with limitation, a review of the purposes of the Act and the requirements
of the Regulation, a review of the Town's Policy on Accessible Customer Service
Standards, as well as instruction regarding all matters set out in Section 6 of the
Regulation.
31.2. The contractor shall also maintain a record of all training provided to the contractor's
personnel on the Town's accessible customer service standards as required under this
section, which shall include at a minimum, the dates on which the training was provided
and the number of individuals to whom the training was provided. The vendor shall furnish
any required records of accessible customer service training to the Town within ten days of
the Town's request, unless otherwise agreed upon by the Town. The Town reserves the
right to require the contractor to amend its training policies to meet the requirements of the
Act and the Regulation.
32. OCCUPATIONAL HEALTH AND SAFETY ACT
32.1. Contractors and service providers shall comply with all requirements of the Occupational
Health and Safety Act, 1990 and the Regulation for Construction Projects and
Amendments, as administered by the Ontario Ministry of Labour and all subsequent
amendments of said act.
32.2. In the event that the contactor fails to comply with the requirements of the above mentioned
act, the Town may suspend the continuation of the work forthwith and the suspension will
remain in effect until the contractor has taken whatever remedies are necessary to comply
with said act. Suspension of the work by the Town on account of the provisions of this
clause, shall not allow the contractor an extension of the time of completion and the
contractor may be liable for liquidated damages to the Town.
32.3. If the project tender price exceeds $50,000 the successful contractor shall notify the
Ontario Ministry of Labour with a Notice of Project as required under the Occupational
Health and Safety Act and Regulation, and shall provide a copy of same to the Town.
33. RECORDS AND INFORMATION
33.1. Purchasing records will be retained in accordance with the Town's Record Retention By-
law.
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33.2. The Town is subject to the Municipal Freedom of Information and Protection of Privacy Act.
Subject to provisions of this Act, the Town will use reasonable efforts to safeguard the
confidentiality of any information identified by a supplier as confidential, but shall not be
liable in any way whatsoever if such information is disclosed.
33.3. Purchasing files shall be maintained by the Manager of Special Projects to monitor and
review the effectiveness of this policy and associated procedures, and to ensure
compliance to this Policy.
34. PROCEDURES
The Manager of Special Projects has the authority to establish procedures for implementing this
policy and to amend those procedures as required in the best interests of the Town with the
concurrence of the CAO and Town Solicitor (if required).
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APPENDIX A - GOODS AND SERVICES EXEMPT FROM THE PROVISIONS OF THE
PROCUREMENT POLICY
The following items are exempt from the provisions of this policy:
1. Petty Cash Items
2. Training and Education
2.1. Conferences
2.2. Courses
2.3. Conventions
2.4. Memberships
2.5. Seminars
2.6. Periodicals
2.7. Magazines
2.8. Staff training
2.9. Staff development
2.10. Staff workshops
2.11. Subscription
3. Employee "Work Related" Expenses
3.1. Advances
3.2. Meal allowances
3.3. Travel and hotel accommodations
3.4. Entertainment
3.5. Miscellaneous Non-Travel
4. Employer's General Expenses
4.1. Payroll deduction remittances
4.2. Licenses (vehicle, elevators, radios, etc.)
4.3. Debenture payments
4.4. Grants to agencies
4.5. Payment of damages
4.6. Tax remittances
4.7. Charges to/from other government or Crown agencies
4.8. Employee income
4.9. Financing fees and rates
5. Professional and Special Services
5.1. Committee fees
5.2. Witness fees
5.3. Court reporters fees
5.4. Honoraria
5.5. Arbitrators
5.6. Legal Settlements
5.7. Integrity Commissioner
(cont'd)
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6. Utilities
6.1. Postage
6.2. Water and sewer charges
6.3. Electricity
6.4. Cable television
6.5. Internet
6.6. Natural Gas
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APPENDIX B - BID IRREGULARITIES
1. A bid irregularity is a deviation between the requirements (terms, conditions, specification, special
instruction, etc.) of a bid request and the information provided in a bid response.
2. Bid irregularities will be classified as "Major Irregularities", "Minor Irregularities" and "Mathematical
Error".
2.1. Major Irregularity
2.1.1. A deviation from the bid request that affects the price, quality, quantity, or delivery
and is material to the award of contract. If the deviation is permitted, the bidder could
gain an unfair advantage over the competition. The bid that contains a major
irregularity must be rejected.
2.1.2. In the event that a bid is rejected due to a major irregularity, the Town may disqualify
the bidder from participating in Town bid requests for a period of up to one year, at
the discretion of the initiating Department Director
2.2. Minor Irregularity
2.2.1. A deviation from the bid request that affects form rather than substance. The effect
on price, quality, quantity, or delivery is not material to the award. If the deviation is
permitted or corrected, the bidder would not gain an unfair advantage over
competitors. A Director, in collaboration with the Manager of Special Projects, may
permit the bidder to correct a minor irregularity.
2.3. Mathematical Error
2.3.1. An error in mathematical calculation in the bid response. The Manager of Special
Projects will correct errors in mathematical extensions and/or taxes and the unit price
will govern.
2.4. Summary of Bid Irregularities
ITEM
DESCRIPTION
MAJOR MINOR
ACTION
2.4.1
Late bids (by any amount of time)
Automatic rejection
2.4.2
Bids completed in pencil instead of ink
Automatic rejection
2.4.3
Unsealed tender envelope
Automatic rejection
2.4.4
Envelope cover sheet not applied to
submission envelope
Automatic rejection
2.4.5
Bid received on documents other than
those provided (pages have been
reproduced by bidder)
Automatic rejection, unless
otherwise specified in bid
documents
2.4.6
Partial bids (prices for all items have
not been provided)
Automatic rejection
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ITEM
DESCRIPTION
MAJOR MINOR
ACTION
2.4.7
Changes are made to bid form but are
not initialled by bidder
Bidder provided 2 business
days to initial the error. Town
reserves the right to waive the
requirement to initial bid and
may accept as is. Reviewed
on a case-by-case basis.
2.4.8
Alternate items bid in whole or in part
May be considered unless
specified that alternates are not
accepted
2.4.9
Mathematical errors exist in the bid
which are not consistent with the unit
prices.
Bidder provided 2 business
days to initial the error. Unit
prices will govern total price.
2.4.10 Unit prices in the schedule of prices
have been changed but are not
initialled by bidder
Bidder provided 2 business
days to initial the error. Town
reserves the right to waive the
requirement to initial bid and
may accept as is. Reviewed
on a case-by-case basis.
2.4.11 Bids containing minor clerical errors
Bidder provided 2 business
days to initial the error. Town
reserves the right to waive the
requirement to initial bid and
may accept as is. Reviewed
on a case-by-case basis.
2.4.12 Bidder has not acknowledged
addendum/addenda.
Automatic rejection
2.4.13 Pages requiring completion of
information by vendor are missing
Automatic rejection
2.4.14 Bid form is not signed
Automatic rejection
2.4.15 Bid form does not contain corporate
seal of bidder, or notation of ability to
bind corporation
Bidder provided 2 business
days to apply seal or provide
proof of ability to bind the
corporation. Town reserves
the right to waive the
application of corporate seals
provided the signatory has
noted that they are legally able
to bind the corporation.
Reviewed on a case-by-case
basis.
2.4.16 Bid bond is not submitted with bid
Automatic rejection
2.4.17 Bid bond amount is insufficient
Automatic rejection, unless the
insufficiency is trivial or
insignificant.
2.4.18 Bid bond is not executed
Automatic rejection
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ITEM
DESCRIPTION
MAJOR MINOR
ACTION
2.4.19 Cheque submitted for bid bond is not
certified
Automatic rejection
2.4.20 Agreement to bond is not submitted
with bid
Automatic rejection
2.4.21 Agreement to bond is not executed
Automatic rejection
2.4.22 Surety company is not licensed to do
business in Ontario (bid bond,
agreement bond, etc.)
Automatic rejection
2.4.23 Bidder did not attend mandatory site
meeting
Automatic rejection
2.4.24 Bidder has an unsatisfactory
performance review currently on file
with an inelibility period still in effect
Automatic rejection
2.4.25 Bid documents suggest that the bidder
has made a major mistake in
calculations or intent to bid
Consultation with Town
solicitor on a case-by-case
basis
2.4.26 Bid contains kickback
Automatic rejection and
suspension of bidder's
eligibility to bid on Town
projects for period of one year.
The above list of irregularities should not be considered all-inclusive. The Manager of Special
Projects will review minor irregularities not listed.
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APPENDIX C - TENDERS vs. RFPs
1. The following is provided to assist in determining which procurement method, Tender or RFP, is
more appropriate in instances where the acquisition is valued over $50,000:
1.1. Request for Proposals (RFPs)
1.1.1. An RFP solicitation should be used when the Town wants to review and implement
different and new solutions to a problem, project or business process. The RFP
document provides proponents with an overview of the perceived or expected
requirements. It does not give a detailed project plan as it is expected that this is
what the proponent will develop in response to the RFP. To summarize, an RFP is
used when:
a.
You know what you want, but not how to get it
b.
The purchaser is looking for the best solution to solve a problem or
deliver a good or service, but is not exactly sure how to achieve it
c.
There is no detailed material, procedure and/or specification
d.
The good or service is not clearly defined
e.
Looking for a general solution to a problem
1.1.2. The proposals will be evaluated and scored by an evaluation committee to
determine the proponent with the most complete submission in accordance with the
Town's needs. The evaluation is not solely based on cost for services, but also
scored on several criteria, including proposed solutions, qualifications, references,
etc.
1.2. Tenders
1.2.1. A tender call should be used when the Town knows what they want and how they
want to achieve that. The tender document provides bidders with exact
specifications for the item/service they desire and are seeking the best possible
price to obtain that item/service. To summarize, a tender is used when:
a.
You know what you want and how you want it done.
b.
The purchaser has an exact item or service defined is looking for the
best price to deliver it.
c.
There is detailed methodology, procedure, and/or specification.
1.2.2. Tenders are analyzed for errors or omissions and the tender is typically awarded to
the bidder with the lowest compliant tender price.