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THE DISTRICT MUNICIPALITY OF MUSKOKA
BY-LAW 2025-45
Being a by-law to adopt a Procurement Policy
WHEREAS pursuant to section 270 ( 1) of the Municipal Act, 2001, municipalities are
required to adopt policies with respect to procurement, by the municipality, of goods
and services;
AND WHEREAS it is desirable to adopt an updated policy for procurement by the
District of Muskoka;
AND WHEREAS it is desirable to establish expenditure limits and signing authorities
with respect to procurement by the District of Muskoka;
THEREFORE the Council of The District Municipality of Muskoka ENACTS AS
FOLLOWS:
Procurement Policy
1.
Policy Fl-007-2025 attached hereto as Schedule "A" forms part of the by-law
and shall be and is hereby adopted as the Procurement Policy of The District
Municipality of Muskoka.
2.
Amendments to Schedule "A" shall only be done by way of amendment to this
by-law, except for Amendments to Schedule "D" shall be done in accordance
with Section 9.1.3 Thresholds for Purchasing.
3.
The guiding principle shall be that procurement by or in the name of the District
of Muskoka will be using competitive processes that are open, fair and
transparent.
4.
Subject to any exceptions set out in Schedule "A" hereto, acquisition of goods
and/or services by or on behalf of the District of Muskoka is not authorized
unless the acquisition is done in compliance with this by-law.
Delegated Procurement Authorities
5.
Delegated authorities to award a contract and execute a legal agreement or
issue a purchase order evidencing a contract shall be as set out in policy Fl-
007-2025. Any conditions, restrictions, or requirements for exercising authority
detailed in policy Fl-007-2025 shall apply.
Implementation and Conflicts
6.
By-law 2016-39 and By-law 2020-38, are hereby repealed.
7.
The provisions of this by-law apply to any and all procurement initiated by or
on behalf of the District of Muskoka after this by-law is passed despite any
references to the contrary in any by-laws, regulations or policies or other
documentation.
Enacted and Passed this 17th day of November, 2025.
THE DISTRICT MUNICIPALITY OF MUSKOKA
Per:
---
District Clerk A. Back
Note: Schedule "D" revised as
of January 1, 2026
POLICY
Name: Procurement Policy
Number: FI-007-2025
Administrative Approval Date: October 22, 2025
Council Approval Date:
November 17, 2025
Most Recent Amendment Date: October 22, 2025
Effective Date:
November 17, 2025
By-law reference:
Supersedes: FI-007-2020
CONTENTS
1.
POLICY .............................................................................................................................. 1
2.
PURPOSE .......................................................................................................................... 2
3.
APPLICATION .................................................................................................................... 2
4.
DEFINITIONS ..................................................................................................................... 2
5.
PROCUREMENT GOALS AND OBJECTIVES ................................................................... 7
6.
GENERAL CONDITIONS ................................................................................................... 8
7.
RESPONSIBILITIES AND AUTHORITIES .........................................................................12
8.
REQUIREMENT FOR APPROVED FUNDS ......................................................................17
9.
METHODS OF PROCUREMENT ......................................................................................18
10. OTHER ..............................................................................................................................30
SCHEDULE "A" - EXCLUSIONS ..............................................................................................37
SCHEDULE "B" - SUBMISSION IRREGULARITIES ................................................................40
SCHEDULE "C" - ALTERNATE DISPUTE RESOLUTION PROCESS - COMPETITIVE BID
PROCESS ...................................................................................................45
SCHEDULE "D" - SUMMARY OF THRESHOLDS FOR PURCHASING - WITHIN APPROVED
BUDGET ......................................................................................................47
SCHEDULE "E" - SUMMARY OF THRESHOLDS FOR PURCHASING - INSUFFICIENT
BUDGET ......................................................................................................50
SCHEDULE "F" - CONTRACT LENGTH AND EXTENSION AUTHORITY ...............................51
SCHEDULE "G" - PROCUREMENT DECISION MAKING PROCESS FOR GOODS AND
SERVICES ...................................................................................................52
1. POLICY
This Policy has been developed to comply with Section 270. (1) of the Municipal Act
S.O. 2001, Chapter 25, which provides that all municipalities and local boards shall
adopt and maintain policies with respect to the procurement of goods and services.
Name: Procurement Policy
Number: FI-007-2025
Page 2
2. PURPOSE
The purpose of this Policy is to express The District Municipality of Muskoka's
("District") goals and objectives in relation to the procurement of goods, services and
construction and to describe the means by which the District will ensure an open,
transparent and fair procurement process.
3. APPLICATION
3.1
This Policy applies to all District employees, volunteers and elected officials.
3.2
This Policy applies to all departments of the District and will be adopted in
principle and, at their own discretion, by affiliate boards, committees and
commissions of the District.
3.3
This Policy applies to the procurement of all goods, service(s) or construction
except for those items set out in Schedule "A". In addition to the items set out
in Schedule "A", this Policy does not apply to the purchase, disposal or lease
of real property.
3.4
Where a proposed Contract provides for the District to receive revenue from
a contractor, or the proposed Contract is at no cost to the District, the
processes and authority limits set out in this Policy which are applicable to
the total cost of a Contract shall be construed as applicable, to the total
revenue payable under the Contract.
4. DEFINITIONS
Acquisition
The purchase of Goods, Services and/or Construction.
Agreement
A formal written document that may be executed by the District and the selected
Supplier to confirm the commitment of the parties in a Procurement process.
Approval Authority
The authority to approve Procurements including the Award, Contract, and Contract
Amendments not exceeding the approved budget, up to the authority levels for the
respective body or person(s) set out in Section 7.2.3.
Authorized Delegate
The individual holding a position which has been delegated by Council an Approval
Authority and includes any other individuals further delegated such Approval
Authority in accordance with the Procurement Policy.
Award
The notification to a Bidder of acceptance of a proposal, quotation or tender that
brings a Contract into existence.
Name: Procurement Policy
Number: FI-007-2025
Page 3
Bid
An offer or submission received from a Bidder in response to a Call for Bid, which is
subject to acceptance or rejection.
Bidder
A person or entity who submits a Bid in response to a Call for Bids and includes
proponents and respondents.
Buying Group / Group Purchasing Organization
A group of two or more members, external to the District, that combines the
purchasing requirements and activities of the members of the group into one joint
procurement process.
Call for Bid
A formal or informal request for Bid and includes, but is not necessarily limited to, a
Request for Quotation, Proposal, Tender, Pre-Qualification or Standing
Arrangement.
Chief Administrative Officer or CAO
The person appointed to that position as approved by Council and includes his or
her Designate.
Collusion
An activity undertaken by two or more people for the purpose of dividing the market,
setting prices, limiting production, or limiting open competition, by deceiving,
misleading, or defrauding others of their legal rights, or to obtain an objective
forbidden by law, typically by defrauding or gaining an unfair advantage.
Compliant Bid or Compliant Bidder
A responsive and responsible Bid or Bidder that submits a Bid, respectively, that
meets all requirements stipulated in the Call for Bid and that possesses the capacity
and ability, including financial and technical abilities, to perform as contractually
required.
Conflict of Interest
A situation in which, due to financial or other personal considerations, there is a risk
that professional judgment, objectivity or actions have the potential to compromise or
unduly influence a procurement outcome, whether real or perceived.
Construction
A creation, reconstruction, demolition, repair or renovation of a building, structure or
other civil engineering or architectural work, including site preparation, excavation,
drilling, seismic investigations, soil investigations, the supply of products and
materials and equipment and machinery if they are included in and incidental to the
construction, and the installation and repair of fixtures of a building, structure or
other civil engineering design or architectural work, but does not include the
Consulting and Professional Services related to the construction Contract unless
they are included in the specifications for that Procurement.
Name: Procurement Policy
Number: FI-007-2025
Page 4
Consulting and Professional Services
Those services requiring the skills of a specialist for a defined service and includes
architects, engineers, designers, surveyors, planners, accountants, auditors,
management professionals, marketing professionals, software and information
technology experts, financial consultants, lawyers, law firms, real estate agents and
brokers, environmental planners and engineers, hydro geologists, transportation
planners and engineers, communications consultants and any other consulting or
professional services required by the District.
Contingency
An event or circumstance that may give rise to an increase in a Contract price, and
which could not have been reasonably anticipated at the time the Call for Bids
closed.
Contract
A legal agreement between two or more parties. Agreements can be in the form of a
formal legal agreement or Purchase Order.
Contract Administrator
The staff member responsible for overseeing the management of the Contract.
Contract Change Order
A mutually agreed upon addition to, deletion from, or modification of a Contract
between the District and the Vendor that could not have been reasonably foreseen
and thereby included in the Call for Bid document.
Cooperative Purchasing
The coordination of the District's purchases with purchases from other government
agencies or public authorities such as other municipalities, conservation authorities,
school boards and hospitals.
Corporate Wide Procurement
The acquisition of Goods and/or Services on a corporate wide basis.
Council
The Council of The District Municipality of Muskoka comprised of the District Chair
and elected officials.
Department
The department initiating the acquisition of the Goods and/or Services on behalf of
the District.
Department Head
The person(s) responsible for the procurement activities within their Department,
which includes the CAO, Commissioners, Directors, Managers and Designates.
Designate
A person authorized to act on the behalf of an Authorized Delegate.
Name: Procurement Policy
Number: FI-007-2025
Page 5
District
The District Municipality of Muskoka.
Electronic Tendering
An internet-based process that provides suppliers with online access to information
related to open competitive procurements, including advertising, receiving and
submitting Bid related information.
Emergency Purchase
An Acquisition that does not follow the standard methods of Procurement because of
a circumstance described in Section 9.3.3 of this Policy.
Essential Service
A service rendered by which the interruption would endanger the life, health or
personal safety of those receiving the service. These services may include but are
not limited to hospitals, long term care, electricity, water, telephone, police, fire,
ambulance and air traffic control.
Goods
Moveable property including the costs of installing, operating, maintaining, or
manufacturing such moveable property, and any necessary raw materials, products,
supplies, equipment and other physical objects of every kind and description
whether in solid, liquid, gaseous or electronic form, unless they are procured as part
of a Construction Contract.
Irregularity
A deviation between the requirements (terms, conditions, specifications, special
instructions) of a Call for Bid and the information provided in a Bid response.
Low Cost Purchase
A purchase of Goods, Services and/or Construction at the thresholds indicated in
this Policy.
Negotiation
The action or process of conferring with one or more Vendors with the goal of
reaching an agreement on an Acquisition made pursuant to this Policy.
Non-Management Staff
An employee who has been delegated Approval Authority and is not a Department
Head.
Procurement
Purchasing, renting, leasing or otherwise acquiring any Goods, Services and/or
Construction, including the description of requirements, solicitation method, selection
of sources, preparation and Award of Contract and all phases of the contract
administration.
Name: Procurement Policy
Number: FI-007-2025
Page 6
Public Service
A service provided by the government to people living within its jurisdiction. These
services may include but are not limited to roads, bridges, parks, waste
management, water treatment and distribution, wastewater collection and treatment,
housing and community services.
Purchase Order
A written Contract with a successful Bidder that has a unique number, which
formalizes the acceptance of an offer received in accordance with this Policy and
enables payment through financial system.
Request for Expression of Interest or EOI
A formal, non-binding process where information is requested from Suppliers
regarding the feasibility and availability of specific Goods and/or Services in the
marketplace and to determine if there are enough suppliers to justify a RFQ, RFP or
RFT.
Request for Information or RFI
A formal, non-binding process for gathering information from potential Suppliers of a
good or service during the planning phase of a project when product requirements,
specifications or purchase options cannot clearly be identified. An RFI is often used
as a precursor to a Call for Bid.
Request for Pre-Qualification or RFPQ
A formal, non-binding solicitation document to obtain detailed information from firms
and/or individuals that may include their experience, financial strength, education,
background and personnel, to prequalify to supply Goods, Services and/or
Construction to the District. The RFPQ may be a precondition to a further Call for
Bid.
Request for Proposals or RFP
An informal or formal request for prices and details on Goods and/or Services from
Suppliers, where the Goods and/or Services may not be able to be fully defined or
specified or when alternate methods are being sought to perform a certain function
or service, at the time of the request and/or where price is not the primary evaluation
factor. RFP's may have provisions for Negotiations and may be in a single or multi-
step process.
Request for Quotations or RFQ
An informal or formal request for prices for an Acquisition where comprehensive
technical specifications can be developed.
Request for Standing Arrangement or RFSA
A contract under which the District may purchase Goods and/or Services which will
be required on an ongoing basis but where the exact types or quantities of goods
and services required may not be precisely known or the time period during which
the Goods and/or Services are to be delivered may not be precisely determined.
Name: Procurement Policy
Number: FI-007-2025
Page 7
Request for Tender or RFT / Invitation to Tender or ITT
A formal, binding request for prices for an Acquisition where comprehensive
technical specifications can be developed.
Service
The services to be provided under a Contract and includes labour and Consulting
and Professional Services.
Single Source
A non-competitive Procurement method used when a purchase is made from one
source of supply where others may be available, or where a limited number of
Suppliers are contacted.
Social Procurement
Using a Procurement process to generate positive social outcomes which may
include job creation, training, or apprenticeships for historically disadvantaged
communities, or reducing carbon emissions, in addition to the efficient delivery of
goods and services and may include other benefits as defined by the local
community or the District.
Sole Source
A non-competitive Procurement process to acquire Goods and/or Services where
there is only one available or known Supplier for the source of the particular Goods
and/or Services in the open market.
Supplier/Vendor
Any individual or organization providing or seeking to provide Goods, Services
and/or Construction to the District.
Unsolicited Proposal
An offer or proposal submitted by a Vendor in the absence of a Call for Bid. It may
be submitted in response to a perceived need but not in response to a Call for Bid.
Unfair Advantage
A risk that the Bidder or any of its members had access to information related to the
bid solicitation that was not available to other Bidders and that would, give or appear
to give, the Bidder an unfair advantage.
5. PROCUREMENT GOALS AND OBJECTIVES
(a) Procure Goods, Services and Construction in an efficient, timely and cost
effective manner in accordance with legislative requirements, District Strategic
Priorities, as well as the directives and expectations of Council, management
and the public at large.
(b) Ensure an open and competitive Procurement process, treating all Suppliers
and submissions in an objective and equitable manner.
Name: Procurement Policy
Number: FI-007-2025
Page 8
(c) To obtain the best value for the District when procuring Goods, Services or
Construction by regularly conducting a competitive bid process, where required
in this Policy, to ensure the District is receiving the best possible and current
market price.
(d) To consider all costs and factors over the lifetime of the Acquisition, including
but not limited to, Acquisition costs, installation, disposal value, disposal costs,
training costs, maintenance costs, reliability and quality of performance.
(e) To utilize comprehensive and unbiased specifications.
(f) To promote respect for and ensure compliance with all applicable trade
agreements, laws and regulations.
(g) To encourage the procurement of Goods, Services or Construction with due
regard to the preservation of the natural environment and the promotion of
human rights and fair labour practices.
(h) To adhere to the highest standards of ethical conduct and avoid any real or
perceived conflicts between the interests of the District and those of the
District's employees elected officials and committee members.
6. GENERAL CONDITIONS
6.1
No District staff, elected official or committee member shall purchase or offer
to purchase, on behalf of the District, any Goods, Services or Construction
except in accordance with this Policy.
6.2
Any employee who intentionally and knowingly acquires or disposes of any
Goods or Services for the District in contravention of this Policy may be
subject to disciplinary action.
6.3
Exceptions to this Policy are identified in Schedule A.
6.4
Council approval shall be required where the provisions of the Procurement
Policy are being waived.
6.5
All purchases must have appropriate pre-approved funding and must be
authorized prior to the preparation of a Call for Bid unless Council has
otherwise authorized the release of the Call for Bid prior to approval of the
funding.
6.6
No employee or designated representative for the District shall prepare,
design or otherwise structure a Procurement, select a valuation method or
divide Procurement requirements into two or more parts in order to
circumvent any obligation and/or threshold of this Policy.
Name: Procurement Policy
Number: FI-007-2025
Page 9
6.7
The District shall not enter into any Contract where there would be the
establishment of an employee-employer relationship, except as exempted
under Schedule A.
6.8
Standardization
It shall be the intent of the District, wherever possible, to standardize the
purchase of Goods, Services and Construction to allow for:
(i)
reduced amount of Goods, Services and Construction required;
(ii)
increased volume on common cross departmental items or services;
(iii) maximizing volume buying opportunities;
(iv) providing economies of scale;
(v)
reduced handling, training and storage costs;
(vi) minimizing maintenance costs;
(vii) Cooperative Purchasing activities;
(viii) more competitive Bid results; and
(ix) reduced overall costs.
6.9
Non-Discrimination
The District will practice reciprocal non-discrimination and geographic
neutrality with respect to Ontario's trading partners and avoid preferential
treatment of local suppliers in accordance with trade treaty obligations, so
long as treaty partners are acting in good faith of the trade treaties.
6.10
Records Retention and Access to Information
All Procurement activities must be supported by the appropriate
documentation and all records relating to a Procurement process must be
retained by the issuing department in accordance with the Records Retention
By-Law and Schedules, as amended.
The disclosure of information received in relation to a Call to Bid or the
Award shall only be made by the appropriate staff in accordance with the
provisions of the Municipal Freedom of Information and Protection of Privacy
Act, R.S.O. 1990, c. M.56, as amended.
6.11
Accessibility
When procuring Goods, Services and Construction, the District will
incorporate accessibility criteria and features when applicable and practical
as may be required from time to time by applicable legislation.
Name: Procurement Policy
Number: FI-007-2025
Page 10
When applicable, Procurement documents will specify the desired
accessibility criteria to be met and provide guidelines for the evaluation of
proposals in respect of those criteria. When it is not practical for the District
to incorporate accessibility criteria and features for Acquisition, the
Department Head will provide a written explanation, upon request.
The District will promote and incorporate, whenever possible, accessibility
considerations in their Procurement activities.
Suppliers must have the ability to produce deliverables in accessible formats
and make sure that all communication, equipment, venues and materials
take into account a person's disability so that all in attendance may
participate equally.
In accordance with section 6 of Ontario Regulation 429/07, Accessible
Standards for Customer Service, the Supplier is responsible for ensuring that
all of its employees, volunteers and others for which the Supplier is
responsible are adequately trained.
6.12
Sustainable Procurement
In keeping with the District's strategic priority area of our environment, the
District acknowledges the responsibility of promoting sustainable objectives
in a manner which includes consideration of social, environmental and
economic factors.
Department's will endeavour to include specifications in bid solicitations
which encourage greater sustainability through considerations of the
environmental and social repercussions and long-term impacts of each
Acquisition as well as climate change and environmental sustainability in
establishing scoring and evaluation for Requests for Proposals.
This will be done where practical and appropriate considering full lifecycle
assessments, energy efficient products, reusable products and products that
contain maximum recyclable content, accomplished through methods
promoting minimum waste, without significantly affecting the intended use of
the product or service.
6.13
Social and Community Benefit
To the extent practicable, the District shall endeavor to promote and
incorporate Social Procurement opportunities and community benefit
approaches into its Procurements, having regard to the requirements of all
applicable legislation and trade treaties.
6.14
Legal Claims
The District reserves the right to neither accept nor Award to any Bidder,
inclusive of its sub-contractor(s), a Contract with whom the District is in
litigation.
Name: Procurement Policy
Number: FI-007-2025
Page 11
6.15
Collusion
Collusion will not be tolerated, and Bids may be rejected without further
consideration if Collusion is suspected or present. The District will report any
suspected cases of collusion or other bid-rigging offences under the
Competition Act to the Competition Bureau or to other relevant authorities.
6.16
Code of Ethics and Conduct
All procurement shall be undertaken in accordance with the District's Code of
Ethics and Conduct Policy PP: 00, as amended, the Muskoka District
Council Procedure By-Law No. 2023-50, as amended and the Municipal
Conflict of Interest Act, R.S.O. 1990, c.M.50, as amended.
6.17
Lobbying Restrictions
Vendors, their staff, or anyone involved in preparing a Bid shall not engage
in any form of political or other lobbying whatsoever or seek to influence the
outcome of the procurement process or subsequent Award. This restriction
extends to all of the District's elected officials, committee members and staff.
No elected officials, committee members, or employees shall provide
information regarding the District's need for a specific Acquisition to
prospective Vendors where the provision of the knowledge could provide an
unfair advantage whether perceived or actual.
The District may reject any Bid by any Bidder that engages in lobbying,
without further consideration, and may terminate that Bidder's right to
continue in the Procurement process.
During the Procurement process, all communications shall be made through
the Contract Administrator or any staff member otherwise listed in the Bid
document. No Vendor or person acting on behalf of a Vendor or group of
Vendors shall contact any elected official, committee member or other
employee of the District to attempt to seek information. This restriction
extends to all the District's elected officials, committee members and staff.
6.18
Elected Officials and Committee Members
In accordance with best practices in municipal procurement, elected officials
and committee members recognize the need for a clear separation of
political and administrative functions in relation to the District's Procurement
operations.
Elected officials and committee members shall separate themselves from the
Procurement process. This includes, but is not limited to, obtaining
information on any particular Procurement and participating as an evaluation
member in any Procurement process.
6.19
Policy Review
The Commissioner of Finance and Corporate Services shall review as
appropriate, but no later than every three (3) years, the effectiveness of this
Name: Procurement Policy
Number: FI-007-2025
Page 12
Policy and report to Council, where applicable, recommending any changes
to meet the needs and requirements of the District.
7. RESPONSIBILITIES AND AUTHORITIES
7.1
Responsibilities
District staff is accountable for the decisions and actions they take pursuant
to this Policy and in the administration of Contracts that have been awarded.
Procurement activities shall be subject to all applicable District policies and
any specific provisions of the Municipal Act, and all other relevant Federal
and Provincial legislation.
Council
Council will be required to review Procurement processes under the
circumstances highlighted in Section 7.2.1 (a). Department Heads shall
create a report to be included in the Council agenda for consideration for
approval. Council may delegate approval of items to all Standing
Committees, upon prior notice, pursuant to Section 7.2.1 (b).
Standing Committee
Standing Committees will be required to review Procurement processes
under the circumstances highlighted in Section 7.2.1 (c). Department Heads
shall create a report to be included in the Committee agenda for
consideration for approval.
Chief Administrative Officer
(a) Ensure that all staff adhere to the Procurement Policy and shall
address any non-compliance that the Commissioner of Finance and
Corporate Services has brought to their attention.
(b) Together with the relevant Department Head has the authority to
award Emergency Purchases as outlined in Section 9.3.3.
(c)
Together with the Commissioner of Finance and Corporate Services
has the authority to approve additional funding for new acquisitions or
additions to acquisitions that are over budget but that cumulatively, the
project cost variance from budget does not exceed the amounts in
accordance with Section 8.
(d) Where necessary, the CAO is authorized to approve the Contracts
normally subject to Council approval during the time that regular
Council meetings are suspended, provided that a report is submitted to
Council as soon as reasonably possible, setting out the details of any
Contract approved pursuant to this authority.
Name: Procurement Policy
Number: FI-007-2025
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Commissioner of Finance and Corporate Services
(a) Ensure all purchases are performed in accordance with the
Procurement Policy.
(b) Addresses all instances of non-compliance with this Policy with the
appropriate Department Head and continued non-compliance shall be
reported to the CAO.
(c)
Delegate Approval Authority to staff within the parameters established
within this Policy.
(d) Together with the Chief Administrative Officer has the authority to
approve additional funding for new acquisitions or additions to
acquisitions that are over budget but cumulatively the project cost
variance from the budget does not exceed the amounts in accordance
with Section 8.
Department Head
(a) Ensure that funds are available and approved in the current budget as
approved by Council.
(b) Responsible for all Procurement activities within their department and
ensuring they are carried out in accordance with this Policy.
(c)
Have the authority to Award and execute Contracts based on the
requirements of the Policy up to the thresholds as per their signing
authority.
(d) Together with the Chief Administrative Officer has the authority to
award Emergency Purchases as outlined in Section 9.3.3.
(e) Monitor all contract expenditures to ensure compliance with financial
limits.
Manager, Procurement
(a) Responsible for ensuring consistent application of this Policy.
(b) Provides Procurement advice and related services that may be
required by departments for the purpose of fulfilling the Procurement
needs of the District.
(c)
Monitors compliance with this Policy and notifies the Commissioner of
Finance and Corporate Services of any non-compliance.
(d) Provides advice and related services that may be required by
departments for the purpose of fulfilling the disposal of assets that have
been deemed surplus in accordance with the Disposal of Surplus and
Obsolete Assets Policy FI-004-2010.
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Number: FI-007-2025
Page 14
(e) Acts as the District's representative with other public agencies on
initiatives where such involvement is in the best interest of the District.
(f)
Participates as a member of the Bid Review Committee.
(g) Where applicable, participates in Negotiations.
All Employees
(a)
All District employees are responsible for complying with this Policy.
Employees involved in Procurement activities must understand their
obligations and responsibilities under this Policy and any applicable
procedures.
(b)
Employees should consult with the Manager, Procurement in respect
to any questions regarding the application or interpretation of this
Policy.
7.2
Approval Authority
7.2.1 General
Any person delegated Approval Authority shall ensure that an
approved budget exists for the proposed Procurement and that such
Procurement does not violate any of the District's policies or any
applicable law. Any such Procurement shall also satisfy any
applicable audit requirements of the District.
(a) Council must approve any Procurement process in the following
circumstances.
(i) Where the provisions of the Procurement Policy are being
waived.
(ii) Where an acquisition was not included in the approved
budget.
(iii) Any contract requiring approval from the Ontario Land
Tribunal.
(iv) Any contract prescribed by statute to be authorized by
Council.
(v) Where a substantive Bidder complaint has been filed prior to
the Award of a Bid as determined by the Department Head
and CAO in accordance with Section 10.11.2.
(vi) Where Council has directed staff to provide a report to
Council.
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(b) Council may delegate approval of these items to all standing
committees, upon prior notice:
(i) Where an Acquisition or Contract Change Order exceeds the
approved budget in accordance with the amounts outlined in
Section 8.
(ii) Where the lowest Compliant RFQ or RFT submission is not
being recommended for Award.
(iii) Where the highest scoring Compliant RFP submission is not
being recommended for Award.
(c)
All Standing Committees are delegated the authority to approve
any Procurement process in the following circumstances:
(i) The value of the contract award is greater than $800,000
including any Contingency allowance and does not exceed
the Council approved budget by the amounts in accordance
with Section 8.
(ii) A Single Source procurement greater than $100,000 is being
proposed.
(iii) An Emergency Purchase greater than $1,500,000 is being
proposed.
(iv) Other procurements as delegated by Council pursuant to
Section 7.2.1 (b).
7.2.2 Delegation of Spending Authority
Within the expenditure limits and the policies and procedures set out
herein, staff shall be and are hereby empowered to procure Goods,
Services or Construction, and Award Contracts in the name of the
District.
1.
Staff will be assigned the appropriate Approval Authority level(s)
upon acceptance of the job, as necessary, subject to the limits
outlined in Section 7.2.3, unless otherwise determined by the
Department Head, in consultation with the Commissioner of
Finance and Corporate Services.
2.
Limits for staff may vary, may not be assigned to the maximum,
and may not be the same for each person in the same Approval
Authority level in Section 7.2.3. In determining the expenditure
limits to be assigned to a member of staff, the Commissioner of
Finance and Corporate Services shall identify:
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(i)
the nature of Goods, Services and/or Construction the staff
member is permitted to acquire; and
(ii)
the dollar limits applicable to each type of Acquisition.
3.
The Commissioner of Finance and Corporate Services shall
keep a current list of all assigned expenditure limits.
4.
All standing committees shall be and are hereby delegated
authority to Award Contracts subject to:
(i)
the limitations set out in section 7.2.1 (b); and
(ii)
prior notice to Council on receipt of notice under 4 (ii), Council
may, by resolution, require any Award of Contract be done
by Council.
7.2.3
Approval Authority Levels
Maximum Procurement Approval Authority Levels*
Total Procurement
Amount ($)
Delegated Purchasing Authority Level
Up to $25,000
Non-Management Staff
Up to $50,000
Managers
Up to $100,000
Directors
Up to $500,000
Commissioners
Up to $800,000
CAO
Over $800,000
Standing Committee Approval
*Maximum limits are subject to Section 7.2.2.
(a)
All procurement Approval Authorities assume that sufficient
funding has been previously approved to cover the
Procurement amount.
(b)
For the purpose of determining whether a Procurement falls
within the prescribed Approval Authority Levels that may be
Awarded under the delegated purchasing authority, the amount
shall be the sum of all costs to be paid to the Vendor under the
Contract, including the non-rebated portion of tax.
(c)
For multi-year Contracts, for the purpose of determining
whether a Procurement falls within the prescribed Approval
Authority Levels that may be Awarded under the delegated
purchasing authority, the amount shall be the sum of all costs
to be paid to the Vendor under the initial term of the Contract,
as indicated in the Call for Bid, including the non-rebated
portion of tax.
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7.2.4
Execution of Award
(a)
The person who has the applicable Approval Authority for the
Procurement shall also have the authority to execute the Award
and sign the Contract, in part, on behalf of the District.
(b)
For all Procurement Contracts that require Committee or
Council approval, the District officials named in the resolution
shall execute such Contracts on behalf of the District.
(c)
All Procurement Contracts issued by the District that do not
require Council approval shall be signed by the person who
has the applicable Approval Authority and the Manager,
Procurement.
8. REQUIREMENT FOR APPROVED FUNDS
(a) The beginning of the Procurement process commences with the approval by
Council of the operating and capital budgets for the District. Upon approval of
these budgets, staff has the authority to purchase Goods, Services and
Construction. Council approval will be required to release a Call for Bid prior to
approval of the budgets.
(b) Where certain Goods and Services are routinely purchased on a multi-year
basis, the exercise of authority to Award and execute such a Contract is subject
to the following:
(i)
the identification and availability of sufficient funds in appropriate accounts
for the current year within Council approved operating budget.
and
(ii)
the opinion of the Department Head that the requirement for the Goods or
Services will continue to exist in subsequent years and the concurrence of
the Commissioner of Finance and Corporate Services that the required
funding can reasonably be expected to be made available.
(c) Where Construction projects will expand multiple years, the exercise of
authority to Award and execute such a Contract is subject to the total contract
value not exceeding the allocated amount in the capital budget and forecast.
(d) Acquisitions that are deemed by a Department Head to be necessary but that
are not in the budget must be approved by Council or Committee, if so
delegated, prior to the commencement of the solicitation process.
(e) Capital budgets for Construction projects with an estimated cost of greater than
$100,000 should include a Contingency allowance of 15%.
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Insufficient Budget at Time of Award of Solicitation
In the event that the Bid that is recommended for Award exceeds the approved
funds available, the District may pursue any of the following options:
i.
Council may increase the approved budget, provided that there are sufficient
funds available to allow the District to Award. Department Heads are required
to submit a report to Council seeking approval of the additional funds, as
required by AD:51 Capital Budget Preparation, Monitoring and Reporting, as
amended unless one of the following conditions outlined in (a) or (b) applies:
(a) The total cost of the Acquisition is less than $500,000 and does not
exceed the approved budget by the lessor of $75,000 or 15%; or
(b) The total cost of the Acquisition is greater than $500,000 and does not
exceed the approved budget by the lessor of $250,000 or 15%.
(c)
If the conditions in either (a) or (b) applies, the Department Head shall
submit a request for additional funding to the CAO, and Commissioner
of Finance and Corporate Services. The CAO, and Commissioner of
Finance and Corporate Services, shall identify the additional funding
sources required for the unfavourable variance and approve the request
at their discretion.
ii.
Award part of the Call for Bid;
iii.
Negotiate with the lowest Compliant Bidder;
iv.
Negotiate based on the terms of the Call for Bid;
v.
Cancel the Call for Bid; or
vi.
Materially revise the Call for Bid and issue a revised Call for Bid.
9. METHODS OF PROCUREMENT
9.1 Procurement Process and Thresholds
9.1.1 General
(a) The dollar values for Procurement limits or thresholds represent the
cumulative value spent in one calendar year for a particular Good
and/or Service.
(b) For multi-year contracts, it is the estimated total of the Procurement
value over the term of the contract, including any extensions or
renewals that will govern which Procurement process applies.
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(c)
Sales taxes, excise taxes, goods and services taxes, harmonized
sales taxes, duties and shipping shall be excluded in determining
the procurement limit and the type of Procurement process to be
followed.
(d) Purchases and/or Contracts shall not be divided to avoid the
requirements of the Procurement Policy or to circumvent prescribed
spending authority dollar limits.
9.1.2 Corporate Wide and Departmental Procurement
Procurement may be undertaken on a corporate wide or departmental
basis in accordance with this section.
(a) The Commissioner of Finance and Corporate Services shall from
time to time, in conjunction with the CAO and Department Heads,
establish a list of Goods and/or Services to be acquired on a
corporate wide basis.
(b) The list of Goods and/or Services to be procured on a corporate
wide basis shall include designation of the lead department
responsible for the Procurement of the items listed.
(c) Goods and/or Services not acquired on a corporate wide basis may
be acquired on a departmental basis.
(d) The provisions of this Policy shall be complied with regardless of
whether the Procurement is done on a corporate wide basis or
departmental basis.
9.1.3 Thresholds for Purchasing
(a) A summary of thresholds for purchasing shall be maintained in
Schedule D to this Policy.
(b) The thresholds included in Schedule D shall be reviewed and
adjusted every two years in accordance with the limits set out in the
Canadian Free Trade Agreement (CFTA).
9.2 Standard Methods of Procurement
The Acquisition methods described below shall be utilized, unless another
section of this Policy applies, as recommended by the Manger, Procurement
and shall be advertised, reported, approved and the Contract executed in
accordance with the provisions of this Policy.
The thresholds, advertising, approval and purchase execution parameters are
outlined in Schedule D.
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9.2.1 Low Cost Purchase (LCP)
(a) Conditions of Use
i.
The Goods, Services and/or Construction are not covered
under an existing Contract or supply arrangement. The
Manager, Procurement will provide access to information on
existing corporate Contracts.
ii.
The Goods and/or Services are required on an item-by-item
basis.
iii.
Intended for one-off or small, multiple purchases with a
cumulative value not exceeding the threshold.
iv.
If the deliverables are required on a frequent or recurring basis,
and there is no existing supply arrangement, staff should
consult with the Manager, Procurement or their Department
Head about the possibility of establishing a Standing
Arrangement.
v.
Where practical, soliciting multiple quotes is encouraged to
ensure best value is being obtained. Quotations may be
obtained through Supplier catalogues or websites or by
contacting the potential Supplier(s) by telephone or email.
(b) Evaluation and Award
i.
Best value for the District can be achieved when selection is
made on the basis of total lifecycle cost that meets all the
requirements.
ii.
Purchases may be made using corporate purchasing card or
Purchase Order and Vendor invoice.
9.2.2 Informal Request for Quotation (RFQ)
(a) Conditions of Use
i.
The requirements can be fully defined.
ii.
Solicitation will be issued to a minimum of three (3) Bidders.
iii.
An open competitive process may be conducted in place of an
invitational competition.
(b) Evaluation and Award
i.
The RFQ shall be awarded to the lowest priced Compliant
Bidder.
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ii.
Best value for the District can be achieved by an award
selection made on the basis of total lifecycle cost that meets all
terms, conditions and specifications.
iii.
A Purchase Order and, where applicable an Agreement will be
required.
9.2.3 Formal Request for Quotation (RFQ)
(a) Conditions of Use
i.
The requirements can be fully defined.
ii.
This format is for use in a simplified Procurement of standard
Goods, Services, or Construction.
iii.
Solicitation shall be through an Electronic Tendering method.
(b) Evaluation and Award
i.
The RFQ shall be awarded to the Lowest Compliant Bidder.
ii.
Best value for the District can be achieved by an award
selection made on the basis of total lifecycle cost that meets all
terms, conditions and specifications.
iii.
A Purchase Order and Agreement will be required.
9.2.4 Request for Tender (RFT)
(a) Conditions of Use
i.
The requirements can be fully defined.
ii.
This format is for use for the Procurement of Goods, Services
or Construction where there is a need for legally binding,
irrevocable Bids.
iii.
Solicitation shall be advertised through an Electronic Tendering
method.
(b) Evaluation and Award
i.
The RFT shall be awarded to the Lowest Compliant Bidder.
ii.
Best value for the District can be achieved by an award
selection made on the basis of total lifecycle cost that meets all
terms, conditions and specifications.
iii.
A Purchase Order and Agreement will be required.
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9.2.5 Informal Requests for Proposals (RFP)
(a) Conditions of Use
i.
Comprehensive technical specifications cannot be fully defined
or specified; or
ii.
Alternate methods or innovative solutions are being sought to
perform a certain function or service.
iii.
Solicitation will be issued to a minimum of three (3) Bidders.
iv.
An open competitive process may be conducted in place of an
invitational competition.
(b) Evaluation and Award
i.
Evaluation will be based on the criterion as outlined in the Call
for Bid Document of which, price is only one criterion.
ii.
Award of the Contract shall be issued to the highest scoring
Compliant Bidder.
iii.
A Purchase Order and, where applicable an Agreement will be
required.
9.2.6 Formal Requests for Proposals (RFP)
(a) Conditions of Use
i.
Comprehensive technical specifications cannot be fully defined
or specified; or
ii.
Alternate methods or innovative solutions are being sought to
perform a certain function or service.
iii.
Solicitation shall be advertised through an Electronic Tendering
method.
(b) Evaluation and Award
i.
Evaluation will be based on the criterion as outlined in the Call
for Bid Document of which, price is only one criterion.
ii.
Award of the Contract shall be issued to the highest scoring
Compliant Bidder.
iii.
A Purchase Order and Agreement will be required.
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9.2.7 Request for Standing Arrangements (RFSA)
(a) Conditions of Use
i.
The same Goods and/or Services will be required on a
repetitive basis over a period of time, and the actual demand is
not known in advance, or
ii.
A need is anticipated for a range of Goods and/or Services for a
specific purpose, but the actual demand is not known at the
outset, and delivery is to be made when a requirement arises, or
iii.
There is a need for a list of Vendors for their services that will
be provided on an "as needed or required" basis.
(b) Evaluation and Award
i.
More than one Vendor may be selected where it is in the best
interests of the District, and the Call for Bid allows for more than
one; and
ii.
Selection methodology and evaluation criterion (where
required) will be as outlined in the Call for Bid document.
iii.
A Purchase Order and Agreement will be required. Payment
may be made using a corporate purchasing card, where
applicable.
9.2.8 Request for Information (RFI)
(a) Conditions of Use
i.
There is a need to seek information, clarification, comments,
feedback and/or reactions from the marketplace that may assist
in compiling a potential future Call for Bid.
ii.
The RFI shall be advertised through an Electronic Tendering
method.
iii.
Submissions shall be provided at no cost to the District.
(b) Evaluation and Award
i.
An RFI submission does not create any contractual obligation
between the District and the respondent.
ii.
An RFI will not be used as a prequalification tool.
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9.2.9 Request for Expression of Interest (RFEOI)
(a) Conditions of Use
i.
There is uncertainty regarding the market availability and
interest in providing the Good or Service.
ii.
The submissions received may assist with a potential future
Call for Bid.
iii.
The RFEOI shall be advertised through an Electronic Tendering
method.
iv.
Submissions shall be provided at no cost to the District.
(b) Evaluation and Award
i.
An RFEOI submission does not create any contractual
obligation between the District and the respondent.
ii.
An RFEOI will not be used as a prequalification tool.
9.2.10 Request for Pre-qualification (RFPQ)
(a) Conditions of Use
i.
When work is considered to be complex, high risk or there is a
need to develop a short list of qualified Bidders that have the
capabilities to meet the District's needs.
ii.
Is the initial phase of a two or more phase solicitation process.
iii.
The RFPQ shall be advertised through an Electronic Tendering
method.
(b) Evaluation and Award
i.
An RFPQ submission does not create any contractual
obligation between the District and the Bidder.
ii.
Selection methodology and evaluation criterion will be as
outlined in the Call for Bid document.
iii.
A subsequent Call for Bid document will be issued as outlined
in the RFPQ only to the pre-qualified Bidders.
9.3 Alternative Methods of Procurement
9.3.1 Sole Source
The requirement for a competitive bid process may be waived under the
authority of the Department Head with the consent of the Commissioner
of Finance and Corporate Services.
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Where a Sole Source over $25,000 is proposed, Department staff will
issue a memo to the Department Head, Manager, Procurement and
Commissioner, Finance and Corporate Services, outlining the Sole
Source procurement and providing proof of one of the valid reasons
below.
The Procurement may be conducted using a Sole Source process for
the following valid reasons:
(i)
Statutory or market-based monopoly;
(ii)
Competition is precluded due to the application of any Act or
legislation or because of the existence of patent rights,
copyrights, license, contract restrictions, technical secrets or
controls of raw material; or
(iii) The complete item, service, or system is unique to one
Supplier, and no reasonable and competitive alternative or
substitute exists.
Following approval by the Department Head and Commissioner of
Finance and Corporate Services, the Department Head may conduct
direct Negotiations with the Supplier.
9.3.2 Single Source
The requirement for a competitive Bid process may be waived under
the authority of the Department Head with the consent of the
Commissioner of Finance and Corporate Services. The Procurement
may be conducted using a Single Source process if the Goods and/or
Services are available from more than one source, but there are valid
and sufficient reasons for selecting one Supplier in particular or
requesting Bids from a limited number of Suppliers where open
competition would normally be required.
Where a Single Source between $25,000 and $100,000 is proposed,
department staff will issue a memo to the Department Head, Manager,
Procurement and Commissioner, Finance and Corporate Services,
outlining the Single Source procurement and providing proof of one of
the valid reasons below.
Where a Single Source over $100,000 is proposed, a written report
indicating the rationale for a non-competitive selection shall be
submitted to the appropriate Standing Committee for approval prior to
the Award of any Contract.
The following are valid reasons for a Single Source purchase, the
Standing Committee may approve items or circumstances that are not
listed, at their discretion:
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(i)
An attempt to acquire the required Goods and/or Services by
soliciting competitive submissions has been made in good
faith, but has failed to identify any willing and compliant
Suppliers;
(ii)
The confidential nature of the requirement is such that it would
not be in the public interest to solicit competitive submissions;
(iii) Construction, renovations, repairs, maintenance etc. in respect
of a lease by the District that may only be done by the lessor,
in accordance with a lease agreement;
(iv) A Good or Service is compatible with an existing Good or
Service where a substitute is available, however the warranty,
maintenance or service will be affected if the substitute is
used;
(v)
Standardization on a particular make or model of the required
Goods is desirable for the purposes of minimizing inventories
of spare parts, minimizing the time and expense associated
with operator training, and maximizing operator transferability,
etc.;
(vi) Where due to abnormal market conditions, the Goods,
Services or Construction required are in short supply;
(vii) A Good or Service is being purchased for a defined testing or
trial use period, no longer than twelve (12) months;
(viii) For the Procurement of Goods under exceptionally
advantageous circumstances such as bankruptcy or
receivership, but not for routine purchase;
(ix) When the District has a lease with a purchase option and
exercising the purchase option would be beneficial;
(x)
A consulting firm which has satisfactorily partially completed a
project may be recommended for award of the balance of the
project where:
1. The consultant has specific knowledge of the project and
has undertaken work for which duplication would be
required if another firm were to be selected; and
2. There is a financial benefit to the District in awarding the
contract.
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(xi) The Procurement is for additional deliveries by the original
Supplier of Goods or Services that were not included in the
initial Procurement, if a change of Supplier for such additional
goods or services:
1. cannot be made for economic or technical reasons such
as requirements of interchangeability or interoperability
with existing equipment, software, services, or
installations procured under the initial procurement; and
2. would cause significant inconvenience or substantial
duplication of costs for the District.
9.3.3
Emergency Purchases
Where an emergency exists and time does not permit a standard
method of Procurement, the Department Head, jointly with the CAO
may authorize an Emergency Purchase up to $1,500,000 when it is
required in one of the following circumstances:
(i)
Prevent or alleviate serious delay;
(ii) Maintain Essential Services or to prevent the disruption of
Essential Services;
(iii) An unexpected interruption of a Public Service;
(iv) Maintain security and/or order;
(v) Protect public property;
(vi) Protect human, animal or plant life;
(vii) A spill of a pollutant;
(viii) Comply with official orders issued by a senior level of
government;
(ix) Comply with the Emergency Response Plan or respond to a
State of Emergency;
(x) As required by the provincial Emergency Management and Civil
Protection Act, 1990 (as amended).
In an Emergency Purchase, the deliverables will be acquired in an
expedited manner and the requirement for open competition is waived
under this section.
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Emergency Purchases should be discussed with the Commissioner of
Finance and Corporate Services prior to the Acquisition to ensure that
funding is allocated accordingly.
The Emergency Purchase limit of $1,500,000 is exclusive of the
Delegated Purchasing Authority Levels outlined in Section 7.2.3.
The relevant details surrounding the Emergency Purchase shall be
included in a report and submitted to the responsible Standing
Committee or District Council during the next scheduled meeting.
Situations of urgency resulting from the failure to properly plan for a
Procurement do not constitute an emergency.
9.3.4
Cooperative Purchasing and Buying Groups
The District may participate with other government agencies or public
authorities in Cooperative Purchasing ventures or utilize Buying Group
Contracts when it is in the best interest of the District to do so and in a
manner consistent with applicable trade agreements.
The Cooperative Purchasing or Buying Group process may be
conducted in accordance with the procurement policies and
procedures of the entity that is responsible for coordinating and
leading the process, provided that those policies and procedures are
consistent with the District's obligations under applicable trade
agreements and the Procurement goals and objectives set out in this
Policy.
The District may, subject to approval, enter into a Contract or
participate in a Procurement process administered by a Cooperative
Purchasing venture or Buying Group without undergoing a separate
competitive Procurement process. Where the original Procurement
process includes a requirement for a second stage selection process
or there are multiple awarded vendors, the District may conduct an
invitational competitive Procurement.
A Cooperative Purchasing or Buying Group Contract is deemed to be
an open competitively awarded Procurement Contract. Approvals to
award the Contract must be obtained as set out in this Policy prior to
committing the District to purchase any Goods, Services or
Construction and are subject to the limits in Section 7.2.3.
Where the Province of Ontario has established a "Vendor of Record"
arrangement, the District may use such arrangement in place of any
procurement process otherwise required in the Procurement Policy.
The District and each government agency or public authority will issue
its own purchase order or enter into their own Contract for their
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respective Goods, Services or Construction when purchasing through
a cooperative arrangement such as the Muskoka Parry Sound Public
Purchasing Group or a joint venture.
Where a form of agreement has been included in the Procurement
process for a Cooperative Purchasing venture or a Buying Group, the
District will use the form of agreement included in the Procurement
process.
The District may issue a purchase order or contract on behalf of local
area municipalities or agencies for shared services or other joint
ventures. Agreements shall be put in place to outline the obligations of
all parties involved in these arrangements.
9.3.5
Unsolicited Proposals
Unsolicited Proposals, including any offers for presentations or
product or service trials received by the District shall be reviewed by
the Department Head to determine if it is in the best interests of the
District to follow a competitive process as outlined in this Policy.
In the absence of a competitive process, a Contract may only be
awarded in respect of an Unsolicited Proposal if a Single or Sole
Source Procurement is permitted in accordance with this Policy.
9.3.6
Negotiated Purchases
Negotiations during the Procurement process may be used under any
of the following circumstances:
(i)
When the Lowest Compliant Bid received exceeds the amount
allocated in the budget;
(ii)
When all bids received are non-compliant and it is impractical to
reissue the Call for Bid;
(iii) During a Single, Sole or Emergency purchase;
(iv) When a competitive bid process has been conducted and an
extension of the contract term is available as outlined in the
original Call for Bid document;
(v)
When a competitive bid process has been conducted and the
Contract has expired or will expire shortly and unforeseeable
circumstances have caused a delay in issuing a new call for Bid;
in such case, the Contract extension should not extend beyond a
one (1) year term;
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(vi) Where a competitive bid process has been conducted and
expanded works or coordinated works are appropriate in the
circumstances; and
(vii) Where the Call for Bid includes a process for Negotiation.
10. OTHER
10.1 Term of a Contract
10.1.1
The term of a Contract will be determined by the Contract
Administrator, in consultation with the Department Head and, where
appropriate, the Manager, Procurement.
10.1.2
Notwithstanding Section 10.1.4, a Contract will not extend past five
(5) years without a bid solicitation process being conducted.
Contracts may consist of varying initial terms and renewals but
must not exceed a total length of five (5) years.
10.1.3
Where a Contract will expire within ninety (90) days and the District
has identified a need to extend the Contract past a five (5) year
period, the Contract may be extended on the same terms and
conditions at the discretion of the Department Head for up to one
(1) additional year term. The Contract must be extended prior to the
end of the current Contract term. The value of the Contract
extension must be within delegated spending authority and
approved budget, or the extension will require a staff report to the
appropriate Standing Committee for approval.
Circumstances where a Contract can be extended past a five (5)
year period may include, but are not limited to, volatile market
conditions, supply chain instability, periods of significant inflation
and lack of competition.
10.1.4
For Contracts, where the development, implementation, costs
and/or risk to the District is deemed as being significant, the term of
the Contract may be extended up to ten (10) years at the discretion
of the Department Head, with approval by the CAO. A Contract
over five (5) years in length must be approved by the Department
Head and CAO prior to the Call for Bid being issued.
10.1.5
Where the District is participating in a Cooperative Purchasing or
Buying Group Contract, the term of the Contract will be consistent
with the length of the Contract identified in the Procurement
process, subject to Vendor Performance. The term of the Contract
may be greater than five (5) years in a Cooperative Purchase or
Buying Group Acquisition and will not be subject to further
approval.
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10.1.6
The length of time for each Contract will be determined by factors
such as ensuring best value for the District, the nature and
complexity of the Procurement, industry, technology
advancements, market conditions, competition, sustainability,
historical experience and any other factors deemed necessary by
the District.
10.1.7
On an annual basis Contract Administrators will complete a review
of Contracts currently in place to determine those eligible for
renewal and will conduct a bid solicitation process where required
to establish new Contracts.
10.2 Exercise of Contract Renewal Options
10.2.1
Where a Contract contains an option for renewal, the Department
Head may authorize the exercise of such option provided that all of
the following apply:
(i)
the Supplier's performance in supplying the Goods and/or
Services or Construction is considered to have met the
requirements of the Contract;
(ii) any price increases are consistent with the prevailing market
conditions for the Goods and/or Services being purchased or
were previously included in the Call for Bid document;
(iii) the facts justifying the decision to Award the Supplier
previously are still relevant at the time of Contract renewal;
(iv) the value of the Contract extension is within delegated
spending authority, or the renewal of a Contract has previously
been authorized by Committee and Council in a staff report at
the time of Contract Award;
(v) funds are available or will be available in appropriate accounts
within the approved budget, including authorized revisions, to
meet the proposed expenditure; and
(vi) the Contract is extended prior to the end of the current
Contract term.
10.2.2
Where a Contract contains no option for renewal, the Department
Head may authorize the extension of the Contract on the same
terms and conditions for a period of time no greater than one (1)
year from the date of expiration provided that all of the conditions
outlined above in Section 10.2.1 are met.
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10.3 Contract Amendments and Revisions
10.3.1
No amendment to a Contract shall be made unless the amendment
is in the best interest of the District.
(i)
No amendment that changes the price of a Contract shall be
agreed to without a corresponding change in requirement or
scope of work.
(ii)
Amendments to Contracts are subject to the identification
and availability of sufficient funds within approved budgets
including authorized amendments.
(iii)
Where a Contract contains an option for renewal, this will not
be considered a Contract amendment, and the provisions of
Section 10.2 shall apply.
(iv)
Department Heads may authorize amendments to Contracts
within their Approval Authority limit, provided that the total
amended value of the Contract does not exceed the
approved budget.
(v)
The CAO may authorize amendments to Contracts, greater
than their Approval Authority limit, provided that the total
amended value of the Contract does not exceed the
approved budget.
(vi)
Where a Contract Change Order or the cumulative value of
the Contract Change Orders plus the original Contract price
exceeds the Council approved budget by less than the
amounts identified in Section 8, the Department shall obtain
the appropriate authorization from the CAO and
Commissioner of Finance and Corporate Services prior to
executing the Contract Change Order.
(vii)
Where a Contract Change Order or the cumulative value of
the Contract Change Orders plus the original Contract price
exceeds the Council approved budget by more than the
amounts identified in Section 8, Council approval of
additional funds is required.
(viii) Funding should be in place prior to approving the Contract
Change Order and prior to the execution of the work.
(ix)
Amendments to a Contract may only be done by way of a
Contract Change Orders if:
a. the Contract stipulates that a change may be made by
way of Contract Change Orders and provides detailed
Name: Procurement Policy
Number: FI-007-2025
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procedures to establish the nature of the change in the
Goods, Services and/or Construction and the
determination of the price adjustments applicable to any
such change, and
b. proper documentation is prepared in accordance with the
provisions of the Contract.
10.4 Specifications
10.4.1
Contract Administrators are responsible for the preparation of the
specifications for the applicable Acquisition method.
10.4.2
The Manager, Procurement may review and recommend
amendments to the specifications.
10.4.3
Specifications should be clear and concise. They must not be
structured to restrict or limit competition due to brand or other
similar requirements. They shall allow for potential Vendors to
provide alternatives in the event that an equivalent product or
method is available. Biasing of specifications in favour of, or
against, a particular Good or Service is prohibited. Nothing in this
section restricts the ability to design specifications in unique
situations, e.g. standardization or compatibility with existing Goods
or Services.
10.4.4
Vendors may be requested to expend time, money and effort on the
content or in the development of a specification(s) or otherwise help
define a requirement to be contained in the specifications that may
be used in a Procurement document. A Vendor who provides such
assistance shall be deemed as a consultant of the District and the
specifications are deemed the property of the District. Such a
Vendor shall be prohibited from submitting a response to a Call for
Bid for which those specifications apply.
10.5 Advertising
10.5.1
Where only selected potential Suppliers will be eligible to
participate in a Procurement process, invitation should be made
through email, phone or with the use of an Electronic Tendering
system.
10.5.2
Where a Procurement process will be open to all, advertising will be
made using an Electronic Tendering system and any other forms of
advertising as determined by the District.
10.5.3
Open competitive Bid opportunities below the thresholds outlined in
the Canadian European Economic Trade Agreement (CETA) will be
advertised for a minimum of fourteen (14) calendar days.
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Number: FI-007-2025
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10.5.4
The District will align posting procedures of competitive bid
documents to the time periods set out in CETA for opportunities
above the thresholds. It is important that District staff plan
effectively to allow sufficient time to follow the requirements of the
Procurement Policy.
10.6 Corporate Purchasing Card
10.6.1
Acquisitions made with the corporate purchasing card must comply
with this Policy and the District's Purchasing Card Policy and
Procedures.
10.6.2
Purchasing cards should be used wherever possible for LCP's and
based on the cardholder's limits.
10.6.3
No personal purchases may be made with the corporate
purchasing cards. District staff shall not use corporate purchases to
gain personal points or other similar benefits in any Vendor reward
program.
10.7 Bid Review Committee
10.7.1
The Manager, Procurement, in collaboration with the Department
Head of the related Procurement and Legal Services, where
required, make up the Bid Review Committee. This Committee will
review Bid Irregularities as required.
10.7.2
When a Bid Irregularity is present, action shall be taken in
accordance with the attached Bid Irregularity Schedule "B".
10.8 Evaluation Criteria and Committees
10.8.1
Call for Bid documents must include all information necessary to
allow Suppliers to prepare and submit responsive Bids. Call for Bid
documents shall include all pertinent details concerning the
evaluation criteria that will be used in the evaluation of Bids,
including the methods of weighting and evaluation.
10.8.2
Evaluation Committees are used with some Acquisition methods to
allot points according to the criteria and submission requirements in
the Call for Bid. The committee should consist of a minimum of
three (3) individuals and where possible should include a cross
section of members from several departments.
10.8.3
The highest scoring submission will be the successful Bidder,
subject to the terms and conditions of the Call for Bid and this
Policy.
10.9 Tie Bids
10.9.1
Quotes or Tenders - In the case of two or more Bids that are
considered absolutely equal in terms of the total acquisition cost,
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and where multiple awards are not possible, the names of the tied
Bidders shall be placed on equal size pieces of paper and drawn
from a receptacle by the Manager, Procurement.
10.9.2
Proposals - In the case of two (2) or more proposals that have an
identical total score, and where multiple awards are not possible,
the Bidders will be given an opportunity to submit a best and final
offer on their financial proposal. Proposals will then be re-scored
based on the evaluation process defined in the RFP.
10.10 Vendor Performance and Suspension
10.10.1 Contract Administrators are responsible for monitoring and
documenting Vendor performance and ensuring compliance with
Contracts, in accordance with this Policy and the District's Vendor
Performance Evaluation Procedure to ensure both the District and
the Vendor fulfil the requirements of the Contract.
This procedure is available to Vendors on the District's website.
10.10.2 The District may suspend Vendors from participating in future
Procurement opportunities in accordance with the District's Vendor
Suspension Procedure. This procedure is available on the District's
website.
10.11 Alternative Dispute Resolution - Competitive Bid Process Protest
10.11.1 All Vendors dealing with the District or bidding on potential
Contracts shall resolve any and all disputes they have specific to
the competitive Bid process through the Alternative Dispute
Resolution (ADR) process described in Schedule C and shall agree
to such process as part of any response to the competitive Bid
process.
10.11.2 The award of any Contract shall not be rescinded or the progress of
any project delayed by a request for the use of the ADR unless
recommended by the relevant Department Head and/or CAO.
10.11.3 Any Vendor that has asked to participate in the ADR process will be
provided with information by the Manager, Procurement to assist
them to understand the Bid process and to assist them to improve
their future Bid submissions for the District.
10.12 Alternative Dispute Resolution - Contract Disputes
10.12.1 Any Contract disputes that arise between the successful Bidder and
the District during the term of the Contract shall be handled through
the Contract dispute process as outlined within the Call for Bid
document or Contract.
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Number: FI-007-2025
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10.12.2 All Procurement Contracts shall contain Vendor Performance,
Alternative Dispute Resolution and Termination clauses in the best
interests of the District.
______________________________________________________________________
Related Policies/Procedures:
AD:51 Capital Budget Preparation, Monitoring and Reporting
AD:52 Operating Budget Administration
Delegation of Authorities By-Law No.2018.65, as amended
FI-004-2010 Disposal of Surplus and Obsolete Assets
FI-012-2016 Acquisition, Disposition, Lease and Licence of Occupation and related By-
Laws
Muskoka District Council Procedure By-Law No. 2023-50, as amended
PP:00 Code of Ethics and Conduct Policy
Vendor Performance Evaluation Procedure
Vendor Suspension Procedure
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SCHEDULE "A" - EXCLUSIONS
Goods and Services Not Subject to the Provisions of the Procurement Policy
Competitive bidding processes are not required for the following categories. The list
below is not comprehensive. The CAO and Commissioner Finance and Corporate
Services will from time-to-time review and approve new situations or items to determine
if they fall within the purview of this schedule, upon recommendation from the Manager,
Procurement.
Any Contracts necessary to complete the Purchase of Goods and/or Services outlined
in Schedule A shall be signed by the appropriate employee based on their delegated
Approval Authority in this Policy, provided that, the Contract has been prepared in a
form satisfactory to Legal Services and funding is available in the approved budget.
(1) Employer's General and Operating Expenses
(a) Payroll deduction remittances.
(b) Medicals.
(c) Tax remittances.
(d) Debt payments.
(e) Grants and levies.
(f) Licenses, certificates and other approval required (for example, regular
license fees for vehicles, elevators, radios).
(g) Insurance claims and adjudications, legal settlements, mediation and
arbitration awards.
(h) Employment contracts and accompanying expenses.
(i) Refundable expenses, including cash advances, meal allowances, travel
expenses and accommodation.
(j) Temporary help (staffing agency, consultant, etc.) to fill a vacant job
position(s), not to exceed $133,800 for the anticipated length of the contract.
(k) Other employee related expenses, such as memberships in professional
organizations, staff relations, staff development and training, staff attendance
of seminars, courses, workshops, conferences, conventions or trade shows.
This shall not include any training specifically designed for the District.
(l) Real property payments including land, buildings, leasehold interests,
easements, encroachments and licenses, or the like.
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(2) Professional and Special Services
(a) Additional non-recurring Accounting and Auditing Services.
(b) Financial services respecting the management of financial assets
(investments) and liabilities (sale, redemption, and distribution of public debt,
including loans and government bonds, notes and other securities).
(c) Public Debenture Sales.
(d) Group Benefits.
(e) Committee Fees.
(f) Appraisers of real property for property insurance assessments.
(g) Medical Professional Services from Doctors, Dentists, Nurses, and
Pharmacists.
(h) Services of expert witnesses or factual witnesses used in court or legal
proceedings.
(i) Confidential Items (Forensic Audits).
(j) External Legal Services Providers.
(k) Procurement of social services that are subject to Service Agreements, such
as childcare providers.
(l) Procurement of Goods or Services from philanthropic institutions, non-profit
organizations, prison labour, or natural persons with disabilities.
(3) Utilities
(a) Electricity.
(b) Postal Services.
(c) Water.
(d) Natural Gas.
(e) Communications infrastructure services such as Bell, Cogeco, Rogers, etc.
(f) Utility connections and relocations.
(4) Charges to and from other Government Bodies (Federal, Provincial or
Municipalities), Crown Corporations, and Government Legislative Bodies.
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(5) Other
(a) Antiques and Artifacts (shops, sales, repairs, but not including restoration).
(b) Acquisition of Art (but not including commissioned works of art).
(c) Publications (including newspapers, periodicals, magazines or books), CDs,
DVDs and all copyrighted material.
(d) Ongoing maintenance, support and licensing agreements for hardware and
software for systems originally acquired in accordance with this Policy.
(e) Non-legally binding agreements.
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Number: FI-007-2025
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SCHEDULE "B" - SUBMISSION IRREGULARITIES
A Bid Irregularity is a deviation between the requirements (terms, conditions,
specifications, special instructions) of a Call for Bid and the information provided in a
Bid response.
A "major irregularity" is a deviation from the bid request that affects the price, quality,
quantity or delivery, and is material to the award. If the deviation is permitted, the Bidder
could gain an unfair advantage over competitors. The District shall reject any Bid, which
contains a major irregularity.
A "minor irregularity" is a deviation from the bid request, which affects form, rather
than substance. The effect on the 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. The District may permit the Bidder to correct a minor
irregularity.
Where a Call for Bid contains a rectification notice period, the District will provide the
Bidder with an opportunity to rectify deficiencies in accordance with the procedures
outlined in the Call for Bid.
MATHEMATICAL ERRORS - RECTIFIED BY STAFF
District staff will correct errors in mathematical extensions and/or taxes, and the unit
prices will govern.
ACTION TAKEN:
The Bid Review Committee shall be responsible for all action taken in dealing with bid
irregularities, and acts in accordance with the nature of the irregularity:
major irregularity (automatic rejection)
minor irregularity (Bidder may rectify)
mathematical error (additions or extensions) as above
The list of irregularities in this schedule should not be considered all-inclusive. The Bid
Review Committee will review minor irregularities not listed and acting in consensus
shall have authority to waive other irregularities or grant two (2) business days to correct
such irregularities, which they jointly consider to be minor.
In the event that the Vendor withdraws its bid due to the identification of a major
irregularity, the District may disqualify such Vendor from participating in District Bid
opportunities for a period of up to one year, and where applicable, cash the Vendor's
bid deposit.
Where a Vendor has been given notice of a specified time period to correct an
irregularity, the Vendor shall be deemed to be in default of the process and, where
Name: Procurement Policy
Number: FI-007-2025
Page 41
applicable, the bid deposit shall be forfeited if the correction is not made. The
submission will be given no further consideration for Award.
This Bid Irregularity list shall apply where the Irregularity is with respect to a stated
requirement of a formal Call for Bid (RFQ, RFP, RFT, and RFSA) or information
gathering Bid (RFEOI, RFI, RFPQ) and where the submission must be received
on/before a specified date and time.
GENERAL
ITEM
IRREGULARITY
RESPONSE
1.
Late Submissions
Automatic rejection
2.
Unsealed Envelopes (does not apply to
electronic submissions)
At the time of submission the District's
representative will ask the submitter to seal or in
the absence of submitter the District
representative will seal and initial along the seal
3.
Failure to attend mandatory site visit
Automatic rejection
4.
Partial Submissions (all items not bid on)
Acceptable unless complete submission has
been specified in the request
5.
Conditional Submissions (Submissions
qualified, based on a Bidder's condition
or restricted by an appended statement)
Rejection unless, in the opinion of the Bid
Review Committee, the qualification or
restriction is minor and would not adversely
affect an award decision and/or the total price
6.
Submissions containing minor obvious
clerical errors that do not result in any
ambiguity with respect to the overall
submission and/or award decision
Two (2) business days to correct and initial
errors
7.
Submitter has not been previously
qualified under a related pre-qualification
process, where applicable
Automatic Rejection
8.
More than one submission from the same
submitter and not identified as an
alternative or optional submission or, no
written withdrawal notice has been
received
The submission package bearing the most
recent date/time stamp will be considered the
intended submission and the previously
date/time stamped submissions will be
considered withdrawn
9.
Failure to include required supplementary
copies of the original at time of
submission
Two (2) business days to submit
10.
Other Minor Irregularities
The Bid Review Committee shall have the
authority to waive irregularities, which are
considered minor
11.
Any Irregularity
Despite the provisions herein contained, Council
may waive any irregularity where it considers it
to be in the best interest of the District
Name: Procurement Policy
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BID DOCUMENTS
ITEM
IRREGULARITY
RESPONSE
12.
All required sections of the document not
completed
Automatic rejection unless, in the consensual
opinion of the Bid Review Committee, the
incomplete nature is trivial or insignificant and
does not affect the total price
13.
Un-initialed changes to the request
documents which are minor (e.g. the
Bidder's address is amended by
overwriting but not initialed)
Two (2) business days to correct and initial
errors. The District reserves the right to waive
initialing and accept the submission
14.
Incomplete, illegible or obscure
submissions or submissions which
contain additions not called for, erasures,
alterations, or strike-out errors or
irregularities of any kind
Automatic rejection, unless the Bid Review
Committee deems the irregularity as immaterial
and the irregularity is remedied by the Bidder -
two (2) business days to correct
15.
Submissions not completed in ink or
typewritten (does not apply to electronic
submissions)
Automatic rejection
16.
Submissions not completed in English
Automatic rejection
17.
Failure to acknowledge addenda
identified as amending e.g.: results in
financial implications
Automatic rejection
18.
Failure to acknowledge addenda
identified as informational e.g.: closing
date extended
Two (2) business days to acknowledge
19.
Submissions received on Call for Bid
documents other than those by the
District
Automatic rejection, unless in the opinion of the
Bid Review Committee, the intention of the
Bidder is clear, and the bid submission details
do not deviate in any material manner from
those provided by the District
20.
Authority to bind the Bidder signature
missing
Automatic rejection
21.
Authority to bind the Bidder signature not
an original (does not apply to electronic
submissions)
Automatic rejection
22.
Alternate items provided in whole or in
part
Available for further consideration unless
specified otherwise in the request
23.
Pages requiring completion of
information by Bidder are missing
Automatic rejection unless, in the consensual
opinion of the Bid Review Committee, the
nature of the missing information does not
impact the ability of the District to conduct a fair,
competitive evaluation
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Number: FI-007-2025
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BID DEPOSIT
ITEM
IRREGULARITY
RESPONSE
24.
Bid Deposit or Bid Bond not submitted
with submission
Automatic rejection
25.
Bid Deposit or Bid Bond not in the
acceptable form
Automatic rejection
26.
Certified Cheque not certified
Two (2) business days to rectify
27.
Amount on Bid Deposit or Bid Bond is
incorrect and/or insufficient
Two (2) business days to rectify
28.
Surety provider and/or Bidder's
authorized signature missing from the
Bid Bond
Two (2) business days to rectify
29.
Effective period of Bid Bond is less than
the irrevocable period stipulated in the
call for bid document
Two (2) business days to rectify
AGREEMENT TO BOND
ITEM
IRREGULARITY
RESPONSE
30.
Agreement to bond with the District not
submitted
Automatic rejection
31.
Agreement to bond amount is incorrect
and/or insufficient
Two (2) business days to rectify
32.
Surety provider and/or Bidder's
authorized signature missing from
Agreement to Bond
Two (2) business days to rectify
PRICING
ITEM
IRREGULARITY
RESPONSE
33.
Failure to include the Schedule(s) of
Items and Prices, Price Form, or Price
Details, as may be applicable, for
inclusion with the submission
Automatic rejection
34.
Pricing or signature pages missing
Automatic rejection
35.
Submissions Containing Minor
Mathematical Errors
Two (2) business days to correct and initial
errors. The District reserves the right to waive
initialing and accept submission
36.
Conditions placed by the Bidder on the
Total Contract Price
Automatic rejection, unless in the opinion of the
Bid Review Committee, the conditions are trivial
or insignificant
37.
Unit price has been changed but not
initialed and the price extension is
consistent with the unit price as amended
Two (2) business days to correct initial errors.
The District reserves the right to waive initialing
and accept bid
Name: Procurement Policy
Number: FI-007-2025
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ITEM
IRREGULARITY
RESPONSE
38.
Unit price has been changed but not
initialed and the price extension is not
consistent with the unit price as amended
Automatic rejection
39.
Unit price extension which is not
consistent with the unit price
The District will correct the extension based on
the unit price provided. Unit pricing will govern
40.
Other mathematical errors which are not
consistent with the unit prices
Two (2) business days to initial corrections. Unit
prices will govern. The District reserves the right
to waive initialing and accept submission
41.
Pricing appears to be unbalanced to the
extent that it would have a significant
adverse effect to the District if awarded
Automatic rejection
POST AWARD NOTIFICATION
ITEM
IRREGULARITY
RESPONSE
42.
Failure to execute required bonding or
financial security within the prescribed
time period
Automatic rejection and Bid Deposit forfeited
43.
Failure to execute a Contract Agreement
within the prescribed time period
Automatic rejection and Bid Deposit forfeited
44.
Failure to provide supporting documents,
as specified within the bid document and
within the prescribed time period
Automatic rejection and Bid Deposit forfeited
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Number: FI-007-2025
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SCHEDULE "C" - ALTERNATE DISPUTE RESOLUTION PROCESS -
COMPETITIVE BID PROCESS
As part of the Alternative Dispute Resolution Process (ADR) directly related to the
competitive bid process, any Bidder who has asked to participate in the ADR process
will be provided with information typically in the form of a debrief from a member(s) of
the evaluation team where applicable, designed to assist them to both to understand the
bid process that occurred and to assist them in improving their future bid submissions to
the District. The award of any contract shall not be rescinded, or the progress of any
project shall not be delayed by a request for use of the ADR Process, unless
recommended by the Department Head and the Chief Administrative Officer.
Note: Any information provided to a Bidder through this process and/or any
information provided by the Bidder to the District will remain confidential,
wherever requested, provided that it complies with MFIPPA.
The step-by-step procedure to be followed for the ADR process is as follows:
1.
A written request for an explanation of the contract award must be received by
the District within seven (7) business days of the notification of the award
decision. Within fourteen (14) business days of this request, or such later date
as may be mutually agreed upon, a bid debriefing will take place with the
evaluation team lead. Only details from this Bidder's submission will be
discussed at this meeting.
2.
Should the Bidder continue to have concerns following the meeting described
above, that Bidder may request in writing, within seven (7) business days of
the first meeting, an award debriefing session with the Manager from the
Department involved. This meeting shall take place within fourteen (14)
business days of the request described above, or such later date as may be
mutually agreed upon.
At this meeting, the successful Bidder for the specific contract in dispute shall
be identified, and the reasons why the contract was awarded to that Bidder will
be discussed at this meeting. However, this would not include any proprietary
information respecting any bids.
3.
If the Bidder continues to have concerns regarding this specific contract award
and the decision made respecting same, the Bidder may then request a
meeting with the Manager from the department involved, the Manager,
Procurement and the District Solicitor, where applicable. This request must be
received in writing within seven (7) business days following the meeting
described in Number 2. above, and the meeting shall take place within
fourteen (14) business days of that request or at such later date as may be
mutually agreed upon.
4.
If the Bidder continues to be dissatisfied, the Bidder may then request further
review by the CAO and District Solicitor. Such request shall be received within
Name: Procurement Policy
Number: FI-007-2025
Page 46
seven (7) business days of the meeting described in Number 3. above, and
this review of the matter shall take place within fourteen (14) business days of
the request. At the point that the written request is made, the Bidder shall
provide a written summary of its position. As part of their review, the CAO and
District Solicitor may request a meeting with the Bidder in advance of reaching
their conclusion(s).
5.
Following the review described in Number 4. above, the District may
recommend, or the unsuccessful Bidder may ask the District to appoint a
mediator to assist in trying to resolve any outstanding issues between the
parties. This mediator shall not have the authority to make a binding decision
but shall make their best efforts to assist the parties to reach a mutually
acceptable solution.
6.
Alternatively, the District, or the unsuccessful Bidder, may ask for the
appointment of an arbitrator to be appointed by the District. Such an arbitrator
is to render a final decision in writing within three months following the request.
Costs for the mediator and/or arbitrator, as the case may be, shall be equally
shared by the parties and a bond for half of the total estimated associated
costs shall be posted by the unsuccessful Bidder in advance of the process
beginning. Any resolution reached through the mediation or arbitration process
shall remain confidential if requested by either of the parties.
Name: Procurement Policy
Number: FI-007-2025
Page 1
SCHEDULE "D" - SUMMARY OF THRESHOLDS FOR PURCHASING - WITHIN APPROVED BUDGET
All Procurement Authorities Assume Sufficient Funding Has Been Approved
Purchase
Type
Purchase Threshold
Procurement Method
Solicit By
Authority to Approve the Award
of the Contract
Purchase Execution
Low Cost
Purchase
(LCP)
$0 - $25,000
Process facilitated by
Department directly soliciting
quotes or comparing published
prices, where practical
Informal communication
In accordance with delegated
Approval Authority
Corporate Purchasing Card
or;
Purchase Order and Vendor Invoice
or;
Agreement and Purchase Order, where
applicable
Informal
Request for
Quotation
(RFQ)
$25,001 - *$139,000
Process facilitated by
Department directly
Optional: Process facilitated by
Procurement
Bids are solicited from a
minimum of three (3) Vendors
By email or by invitation
through Electronic Tendering
System
Optional: Posted publicly through
Electronic Tendering System
In accordance with delegated
Approval Authority
Purchase Order and where applicable,
Agreement
Formal
Request for
Quotation
(RFQ)
*$139,000 +
Process facilitated through
Procurement or Engineering
and Public Works
Call For Bid issued to the open
market
Electronic Tendering
system
Optional: Other forms of
advertising where desired
In accordance with delegated
Approval Authority up to $800,000
Committee/Council approval
required for contracts greater than
$800,000
Agreement and Purchase Order
Request for
Tender
(RFT)
*$139,000 +
Process facilitated through
Procurement or Engineering
and Public Works
Call For Bid issued to the open
market
Electronic Tendering
system
Optional: Other forms of
advertising where desired
In accordance with delegated
Approval Authority up to $800,000
Committee/Council approval
required for contracts greater than
$800,000
Agreement and Purchase Order
Name: Procurement Policy
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Purchase
Type
Purchase Threshold
Procurement Method
Solicit By
Authority to Approve the Award
of the Contract
Purchase Execution
Informal
Request
for Proposal
(RFP)
$25,000 - *$139,000
Process facilitated by
Department directly
Optional: Process facilitated by
Procurement
Bids are solicited from a minimum
of three (3) Vendors
By email or by invitation
through Electronic Tendering
System
Optional: Posted publicly
through Electronic Tendering
System
In accordance with delegated
Approval Authority
Purchase Order, and where applicable
Agreement
Formal
Request for
Proposal
(RFP)
*$139,001 +
Process facilitated through
Procurement or Engineering
and Public Works
Call For Bid issued to the open
market
Electronic Tendering
system
Optional: Other forms of
advertising where desired
In accordance with delegated
Approval Authority up to $800,000
Committee/Council approval
required for contracts greater than
$800,000
Agreement and Purchase Order
Establish
Standing
Arrangement
(RFSA)
Any Amount
Process facilitated through
Procurement or Engineering
and Public Works
Call For Bid issued to the open
market
Electronic Tendering
system
Optional: Other forms of
advertising where desired
The Department Head shall
authorize specific staff to create
specifications for the RFSA
Agreement
Order or Call
for Work
from
Standing
Arrangement
In accordance with
the process outlined
in the RFSA
document
In accordance with the process
outlined in the RFSA document
In accordance with the process
outlined in the RFSA document
In accordance with delegated
Approval Authority
Purchase Order and Agreement (if
required)
or:
Corporate Purchasing Card
Request for
Prequalificati
on (RFPQ)
Any Amount
Process facilitated through
Procurement or Engineering
and Public Works
RFPQ document issued to the
open market
Electronic Tendering
system
Optional: Other forms of
advertising where desired
The Department Head shall
authorize specific staff to create
specifications for the RFPQ
Not Applicable
Name: Procurement Policy
Number: FI-007-2025
Page 3
Purchase
Type
Purchase Threshold
Procurement Method
Solicit By
Authority to Approve the Award
of the Contract
Purchase Execution
Request for
Information
(RFI) or
Expression of
Interest (EOI)
Not Applicable
Process facilitated through
Procurement or Engineering
and Public Works
RFI or EOI documents issued
to the open market
Electronic Tendering
system
Optional: Other forms of
advertising where desired
The Department Head shall
authorize specific staff to create
specifications for the RFI or EOI
Not Applicable
Single
Source
$25,001 +
Process facilitated by
Department directly
One (1) written quotation
required
Email
Department Head and
Commissioner of Finance and
Corporate Services between
$34,701 - $100,000
Standing Committee over
$100,001
Agreement and Purchase Order
Sole
Source
$25,001 +
Process facilitated by
Department directly
One (1) written quotation
required
Email
Department Head and
Commissioner of Finance and
Corporate Services
Standing Committee over
$800,000
Agreement and Purchase Order
Emergency
Purchase
$25,001 +
Process facilitated by
Department directly
One (1) written quotation,
where practical and possible,
given the circumstance
Email or phone
Department Head and CAO
between $34,701 - $1,500,000
Standing Committee over
$1,500,001
Agreement, where possible given the
circumstance, and Purchase Order
Contract
Change
Order
Any Amount
Process facilitated by
Department directly
Written documentation required
Email
In accordance with delegated
Approval Authority
The CAO may authorize Contract
Change Orders greater than
$800,000 within approved budget
Contract Change Order documentation
*The purchase threshold amounts will be adjusted for inflation every 2 years at the start of the year to be consistent with the Canadian Free Trade Agreement.
These limits are in effect until December 31, 2028.
Name: Procurement Policy
Number: FI-007-2025
Page 50
SCHEDULE "E" - SUMMARY OF THRESHOLDS FOR PURCHASING - INSUFFICIENT BUDGET
Sufficient Funding Has Not Been Included in the Approved Budget
Purchase Type
Acquisition
Amount
Over Approved Budget
Amount
Authority to Approve the
Additional Funding
Authority to Execute the
Contract, Change Order, Contract
Extension
Goods, Services
and Construction
(Operating Budget)
Any Amount Any Amount
Department Head and
Commissioner of Finance
and Corporate Services
In accordance with delegated
Approval Authority
Goods, Services
and Construction
(Capital Budget)
Less than
$500,000
The lessor of $75,000 or
15%
CAO and Commissioner of
Finance and Corporate
Services
In accordance with delegated
Approval Authority
Greater than the lessor
of $75,000 or 15%
Council
In accordance with Council
Resolution
Goods, Services
and Construction
(Capital Budget)
Greater than
$500,000
The lessor of $250,000
or 15%
CAO and Commissioner of
Finance and Corporate
Services
In accordance with delegated
Approval Authority
Greater than the lessor
of $250,000 or 15%
Council
In accordance with Council
Resolution
Name: Procurement Policy
Number: FI-007-2025
Page 51
SCHEDULE "F" - CONTRACT LENGTH AND EXTENSION AUTHORITY
Description
Authority
Proposed initial Contract length in the
Call for Bid is greater than five (5)
years
Department Head and CAO
Contract is expiring and there is a
need to extend past five (5) years
Contract extension is within approved
budget
Department Head in accordance with
delegated Approval Authority up to
$800,000 per year
Committee/Council approval required for
extensions greater than $800,000 per year
Contract is expiring and there is a
need to extend past five (5) years
Contract extension is not within
approved budget
In accordance with the Authorities
listed in Schedule E
Committee/Council approval required for
extensions greater than $800,000 per year
Contract contains an extension option
and is within approved budget
Department Head in accordance with
delegated Approval Authority up to
$800,000 per year
Committee/Council approval required for
extensions greater than $800,000 per year,
unless the renewal has been previously
authorized at the time of Contract Award
Contract contains an extension option
and is not within approved budget
In accordance with the Authorities
listed in Schedule E
Committee/Council approval required for
extensions greater than $800,000 per year,
unless the renewal has been previously
authorized at the time of Contract Award
Contract does not contain an
extension option and is within
approved budget. Contract can be
extended for one (1) additional year
Department Head in accordance with
delegated Approval Authority up to
$800,000 per year
Committee/Council approval required
for extensions greater than $800,000
per year
Contract does not contain an
extension option and is not within
approved budget. Contract can be
extended for one (1) additional year
In accordance with the Authorities
listed in Schedule E
Committee/Council approval required for
extensions greater than $800,000 per year
Name: Procurement Policy
Number: FI-007-2025
Page 52
SCHEDULE "G" - PROCUREMENT DECISION MAKING PROCESS FOR GOODS
AND SERVICES
Determine the expected dollar value of the purchase.
Approved funding must be in place prior to commencement of any
Procurement activity
Under $25,000
as per Approval
Authority Limits
Low Cost Purchase
by Purchase Order
or Purchasing Card
$25,001 to $800,000
as per Approval
Authority Limits
Non-Competitive
process:
Sole Source - only
one vendor
Single Source - more
than one may exist but
has been chosen for a
unique purpose
Yes
Request for Quotation:
Describes the goods/services
exactly as required
Invitation to Tender:
Formal invitation to bid on
supplying defined
goods/services
Request for Proposals:
Formal request to propose on
goods/services which may not
be fully defined
Co-operative Purchases /
Buying Group:
Coordination of purchases with
other government agencies or
public authorities
Request for Quotation:
Describes the goods/services
exactly as required
Invitation to Tender:
Formal invitation to bid on
supplying defined
goods/services
Request for Proposals:
Formal request to propose on
goods/services which may not
be fully defined
Co-operative Purchases /
Buying Group:
Coordination of purchases
with other government
agencies or public authorities
Yes
$800,001+
requires Standing
Committee
Approval by
resolution
Expenditure must
be approved by
the CAO and the
Department
Head.
District Council
notification
required as
follow-up
No
Does more than
one supplier exist?
Does more than one
supplier exist?
Emergency
Situation up to
$1,500,000