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00014949.DOCX:
Purchasing and Procurement
Policy
Page 2 of 35
Table of Contents
1.
PURPOSES, GOALS & OBJECTIVES ................................................................ 4
2.
DEFINITIONS ............................................................................................. 4
3.
SCOPE .................................................................................................... 8
4.
PROCUREMENT PRINCIPLES ........................................................................ 8
4.1
TRANSPARENCY........................................................................................ 8
4.2.
EFFICIENCY .............................................................................................. 9
4.3.
EFFECTIVENESS........................................................................................ 9
4.4.
FAIRNESS AND CONSISTENCY ...................................................................... 9
4.5.
OBJECTIVITY ............................................................................................ 9
4.6.
VALUE ..................................................................................................... 9
4.7.
LEGAL COMPLIANCE .................................................................................. 9
5.
COMPLAINTS ............................................................................................ 9
6.
INTERPRETATION ...................................................................................... 9
7.
RESPONSIBILITY AND AUTHORITY ............................................................... 10
8.
ACCESSIBILITY ........................................................................................ 11
9.
ADVERTISING OF PURCHASING OPPORTUNITIES ........................................... 11
10.
CANCELLATION OF REQUEST FOR QUOTATION, PROPOSAL OR TENDER .............. 11
11.
REQUEST FOR PRE-QUALIFICATION OF ACCEPTABLE SUPPLIERS...................... 11
12.
DIRECT PURCHASES - (NON-COMPETITIVE) PURCHASES OF $0 TO .................... 12
13.
LOWER VALUE PURCHASES - PURCHASES OF $2,501.00 - $5,000.00 (EXCLUDING
HST) ..................................................................................................... 13
14.
MID-RANGE PURCHASES BETWEEN $5,001.00 AND $15,000.00 (EXCLUDING HST) .. 13
15.
HIGH VALUE PURCHASES BETWEEN $15,001.00 AND $50,000.00 (EXCLUDING HST) 13
16.
HIGH VALUE REQUEST FOR TENDER - PURCHASES $50,001.00 AND OVER
(EXCLUDING HST) .................................................................................... 14
17.
REQUEST FOR PROPOSAL - (MAY INCLUDE THE ENGAGEMENT OF PROFESSIONAL &
CONSULTING SERVICES & MAY BE OF ANY DOLLAR VALUE) ............................. 16
18.
SPECIAL CIRCUMSTANCE PURCHASES ........................................................ 16
19.
SINGLE SOURCE PURCHASES .................................................................... 17
19.2. SOLE SOURCE PROCUREMENT .................................................................. 18
19.3. EXCEPTIONAL ALTERNATIVE/NEGOTIATION METHOD ...................................... 18
20.
PETTY CASH ........................................................................................... 19
21.
CO-OPERATIVE PURCHASING ..................................................................... 19
22.
CORPORATE CREDIT CARDS ...................................................................... 19
23.
TENDER AND CONTRACT ADMINISTRATION ................................................... 20
23.1. FINANCIAL SECURITIES AND INSURANCE ...................................................... 20
23.2. BID IRREGULARITIES ................................................................................ 20
23.3. FORM OF CONTRACT ................................................................................ 20
23.4. SUPPLIER PERFORMANCE ......................................................................... 21
23.5. SUBMISSION OF TENDERS AND PROPOSALS ................................................. 21
23.6. ENVIRONMENTALLY SOUND ACQUISITIONS ................................................... 22
23.7. CONTRACT EXECUTION ............................................................................ 22
23.8. EXERCISE OF CONTRACT RENEWAL OPTIONS ............................................... 22
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23.9. CONTRACT AMENDMENTS AND REVISIONS ................................................... 23
24.
LEASE CONTRACTS ................................................................................. 23
25.
TERM OF COUNCIL ................................................................................... 24
26.
ACCESS TO INFORMATION ......................................................................... 24
27.
PROVIDING ASSISTANCE ........................................................................... 24
28.
CONFLICT OF INTEREST ............................................................................ 24
29.
DISPOSAL OF SURPLUS AND OBSOLETE GOODS ............................................ 25
29.1. AUTHORITY FOR DISPOSAL OF SURPLUS GOODS ........................................... 25
29.2. MEANS OF DISPOSAL OF SURPLUS GOODS: .................................................. 26
30. MISCELLANEOUS TERMS/PROVISIONS ............................................................ 26
30.1 ELECTED OFFICIAL ROLE ......................................................................... 26
30.2 NO EMPLOYER - EMPLOYEE RELATIONSHIP ................................................. 26
30.3 CONSULTANTS' CONFLICTS OF INTEREST - DISCLOSURE ................................ 26
30.4 NO SPLITTING ........................................................................................ 27
30.5 UNSOLICITED PROPOSALS ....................................................................... 27
30.6 GIFTS ................................................................................................... 27
30.7 NO DISCRIMINATION ................................................................................ 27
30.8 COMPLIANCE ......................................................................................... 27
30.9 DISCIPLINARY ACTION ............................................................................. 27
30.10 ACCOUNTABILITY ................................................................................... 27
SCHEDULE "A" - Purchasing Exemptions ................................................................. 28
SCHEDULE "B" - Chart of Bid Irregularities ................................................................ 30
SCHEDULE "C" - Purchasing and Execution Authority .................................................. 32
SCHEDULE "D" - RFP Completion and Submission Requirements.................................... 32
Page 4 of 35
1.
PURPOSES, GOALS & OBJECTIVES
The purposes, goals and objectives of this Policy are:
a) To protect the interests of the Village, the public and persons participating in
the procurement process and to establish purchasing policies to ensure the
most cost-effective methods are used to purchase goods and services by the
Village. This will be accomplished by reinforcing fairness, openness,
transparency and integrity, and by adopting consistent and standard
approaches for all stages of the Village's procurement processes;
b) To promote where applicable in purchasing activities of the Village, the
requirements of the Accessibility for Ontarians with Disabilities Act, 2005, SO
2005, c 11;
c) To monitor all purchases within current control resources and to maximize
savings to the taxpayers; and
d) To standardize the procurement of goods and services wherever possible, to
meet the following objectives:
-
To allow for reduced number of goods and services required;
-
To maximize volume buying opportunities;
-
To provide economies of scale;
-
To reduce handling, training and storage costs;
-
To minimizing maintenance costs;
-
To reduce overall cost; and
-
To leverage value.
2.
DEFINITIONS
Wherever a word is used in this Policy with its first letter capitalized, the term is
being used as it is defined in this section. Where any word appears in ordinary
case, its regularly applied meaning in the English language is intended.
a)
"Appropriated" means the provision of funds in the annual budget. Where
Council has not yet adopted a budget for the current year, an expenditure
shall be deemed to be appropriate if the expenditure is for daily operations
and routine maintenance, and does not exceed the budget from the previous
year.
b)
"Award", "Awarded" and "Awarding" means authorization to proceed with
the purchase of goods, services or construction from one or more selected
suppliers or contractors.
c)
"Best Value" means the optimal balance of performance and cost as
determined by the decision-maker and in accordance with any pre-
determined evaluation plan.
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d)
"Bid" means an offer or submission from a bidder in response to a Request for
Quotation, Request for Tender, or Request for Proposal in accordance with
the terms and conditions of the Village's bid documents.
e)
"Bidder" means one who submits a response to a call for a bid.
f)
"Bid Deposit" means the form of security required by the terms and
conditions of Bid Solicitations to guarantee that the successful supplier enters
into a Contract with the Village.
g)
"Bid Irregularity" means a deviation between the requirements of a bid
request and the information provided in a bid response (see Appendix B).
h)
"Bid Solicitation" means a formal request for Bids including a Request for
Quotation, Request for Tender, or Request for Proposal.
i)
"Budget" means the budget or portion of the budget approved by Council.
j)
"Chief Administrative Officer" or "CAO" means the Chief Administrative
Officer of the Corporation of the Village of Merrickville-Wolford, who also has
the discretion and authority to act as a Department Head.
k)
"Compliant Bid" means a Bid that meets the terms and conditions of the Bid
Solicitation and this Policy.
l)
"Conflict of Interest" means a situation where a personal, business or other
interest of an elected or appointed official, officer or employee of the Village
is, or can be reasonably perceived to be, in conflict with the interests of the
Village, and includes, but is not limited to:
i) the giving or receiving of a direct or indirect personal gain or benefit, or
a direct or indirect advantage or privilege, by any person or business
that offers goods and/or services to the Village;
ii) a direct or indirect interest in any business that provides goods and/ or
services to the Village; and
iii) a situation in which private interests or personal considerations may
affect an elected or appointed official, officer or employee's judgment
in acting in the best interest of the Village.
m)
"Construction" means the process of utilizing labour to build, alter, repair,
improve or demolish any structure, building or public improvement, and
generally does not apply to routine maintenance, repair or operations of
existing real property.
n)
"Contract" shall mean a legally binding agreement, enforceable by the
courts, between two or more parties that creates an obligation to provide
defined goods and/or perform defined services in exchange for some
consideration.
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o)
"Council" means the Council for the Corporation of the Village of Merrickville-
Wolford.
p)
"Department Head" means an employee who holds
operational
responsibility for a municipal function or service identified as a department in
the Village's organization chart. Where responsibility for a function or service
cannot be ascribed to a Department Head, this definition shall be deemed to
mean the CAO.
q)
"Designate" means a person authorized in writing by the Department Head
or CAO, or as described in staff job description(s), employment contracts or
Village human resources Policy, to act on their behalf, for the purpose of this
Policy.
r)
"Disability" or "Disabilities" shall have the same meaning as set out in the
Accessibility for Ontarians with Disabilities Act, 2005, SO 2005, c 11, or any
successor legislation thereto.
s)
"Emergency" shall mean a situation where, in the opinion of the CAO, the
purchase of goods and services requires immediate action to prevent or
correct dangerous or potentially dangerous safety conditions, to protect the
Village against heightened liability, or ensure the safety of the public as a
result of a sudden unexpected event.
t)
"Expression of Interest" shall mean a situation where vendors are solicited
by the Village to advise the Village of their ability or desire to undertake
municipal requirements.
u)
"Goods" means, in relation to procurement, moveable property (including the
costs of installing, operating, maintaining or manufacturing such moveable
property), including raw materials, products, 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 general construction
contract.
v)
"Lowest Compliant Bid" means the Compliant Bid that would provide the
Village with the desired goods and/or services at the lowest cost. The lowest
or any compliant bid may not necessarily be accepted.
w)
"Normal Operating Expenditure" means an expenditure of an operational,
recurring nature and does not include one-time special or capital
expenditures.
x)
"Professional Services" means those services requiring the skills of
professionals for a designated service requirement including:
i) architects, engineers, designers, surveyors, geoscientists, project
managers, financial consultants, auditors, accountants, doctors,
dentists and lawyers;
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ii) firms or individuals having specialized competence in environmental,
planning, human resources or similar disciplines; and
iii) software consultants and any other persons providing IT and similar
services.
y)
"Promotional Material" are products branded with a logo or slogan and
distributed at no cost to promote the brand. These products include note
pads, mugs, pens, key chains and other small items valued at under $20.00.
z)
"Proponent" means one who submits a response to a Request for Proposal,
Request for Tender or Request for Quote. This term can be used
interchangeably with "Bidder".
aa) "Proposal" means the submission received or the response to a Request for
Proposal, acceptance of which may be subject to further negotiation.
bb) "Purchase" means to acquire goods and/or services by purchase, rental,
lease or trade.
cc) "Quote" means a submission to the Village in response to a request for the
cost of providing goods, services or construction to the Village, for purchases
under $15,001.
dd) "Request for Expression of Interest" or "RFEOI" means a public request
made by the Village seeking responses from potential suppliers for the
purpose of compiling a roster of suppliers who may be interested in providing
goods and/or services to the Village from time to time. Receipt of an expression
of interest by the Village does not create any obligation between the potential
supplier and the Village, but may be a precondition to qualifying for
subsequent Bid Solicitations issued by the Village.
ee) "Request for Pre-Qualification" or "RFPQ" means a public request by the
Village seeking submissions outlining the experience, financial strength,
education, background and significant personnel of potential suppliers, to
create a roster of suppliers who may, from time to time, qualify to supply
goods and/or services to the Village.
ff) "Request for Proposal" or "RFP" means a request for proposals from
Proponents for goods, services or construction and is generally based on
providing a solution to objectives stated within applicable terms of reference.
The request document must clearly state the evaluation criteria; price may
not be the primary evaluation factor when making a recommendation to award
the contract.
gg) "Request for Quotation" or "RFQ" means a public request for quotation for
the provision of goods, services or construction to the Village based on
defined requirements and where a clear solution exists.
hh) "Request for Tender" or "RFT" means a public request for tenders for the
provision of goods, services or construction to the Village based on defined
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requirements and where a clear solution exists.
ii) "Services" means intangible products that do not have a physical presence
and includes professional services. No transfer of possession or ownership
takes place when services are sold and they: 1) cannot be stored or
transported; 2) are instantly perishable; and 3) come into existence at the time
they are bought and consumed.
jj) "Single Source" means the non-competitive procurement process to acquire
goods and/or services from a specific supplier even though there may be
more than one supplier capable of delivery of the same goods and/or
services.
kk) "Sole Source" means there is only one source of the goods and/or services
that meets the requirements of the Village.
ll) "Special Circumstance" means:
i)
An event that is exceptional or could not be foreseen and is likely to
pose a threat to the health, safety or welfare of the public;
ii)
An event that, unless immediately addressed is likely to cause
significant loss or damage to property;
iii) An event that has disrupted any essential service that needs to be re-
established without delay; or
iv) An Emergency.
mm) "Tender" means an offer submitted to the Village in response to a formal
request for the cost of providing goods, services or construction to the Village.
nn) "Tenderers" means a person, agent, company or other entity that formally
responds to a call for tenders by submitting a price to do the work or provide
the product.
oo) "Village" means the Village of Merrickville-Wolford.
3.
SCOPE
This Policy will be applicable to all departments of the Village.
4.
PROCUREMENT PRINCIPLES
The following principles are intended to protect the integrity of the procurement
process, to prevent unauthorized spending and to minimize risks to the
procurement activities of the Village.
4.1
TRANSPARENCY
The procurement process must be transparent.
Openness and
transparency refer to clarity and disclosure about the process for arriving at
Page 9 of 35
procurement decisions. Policies that promote openness and transparency
are to be governed by legal considerations with respect to confidentiality and
protection of privacy.
4.2.
EFFICIENCY
Efficiency measures the quality, cost and amount of goods and services
procured as compared to the time, money and effort used to procure them.
4.3.
EFFECTIVENESS
Effectiveness refers to the extent to which the procurement process is
achieving its desired results in terms of meeting the needs of the Village.
4.4.
FAIRNESS AND CONSISTENCY
Fairness and consistency will be promoted in the treatment of prospective
suppliers to avoid discriminatory practices.
4.5.
OBJECTIVITY
The procurement of goods and services will be approached in an objective
and unbiased way that is not influenced by personal or private interests.
4.6.
VALUE
All purchasing decisions must consider the Best Value in terms of price,
quality, risk, service and contribution to the operations of the Village. Value
means the advantage or gain that the Village derives from the item or
service.
4.7.
LEGAL COMPLIANCE
Purchasing and procurement activities must comply with all Federal and
Provincial laws and regulations.
5.
COMPLAINTS
Any complaints from a supplier or potential supplier concerning any aspect of the
procurement process shall be submitted in writing to the appropriate Department
Head, with a copy to the CAO and the Treasurer. The Treasurer shall investigate
and resolve the matter and may refer the matter to Council, at his/her discretion.
6.
INTERPRETATION
6.1.
Wherever this Policy refers to a person or thing with reference to gender or
the gender neutral, the intention is to read the Policy with the gender
applicable to the circumstances.
6.2.
Schedule "A" - Purchasing Exemptions is incorporated into this Policy.
6.3.
Schedule "B" - Chart of Bid Irregularities is incorporated into this Policy.
6.4.
Schedule "C" - Purchasing and Execution Authority is incorporated into this
Policy.
6.5.
Schedule "D" - RFP Completion and Submission Requirements
Page 10 of 35
7.
RESPONSIBILITY AND AUTHORITY
7.1.
Every person who purchases goods and services shall exercise that
authority in a responsible manner consistent with public purchasing
practices and procedures and in accordance with the applicable laws of the
Province of Ontario, the Government of Canada and the regulations made
pursuant to this Policy. All purchases must be approved by the Department
Head or their Designate, and CAO where required by this Policy.
7.2.
Committees and individual members of Council have no spending authority,
and cannot enter into purchase or service agreements. Any expenses
incurred must be pre-approved by the Treasurer.
7.3.
The methods of purchasing outlined in this Policy shall not apply to the
purchase of those goods and services outlined in Schedule "A". Authority
for the purchases of goods and services outlined in Schedule "A" is not
required to be governed by this Policy as long as the funding is available in
the Budget.
7.4.
The exercise of authority to award a contract is subject to the identification
and availability of sufficient funds in appropriate accounts within Council's
approved Budget.
7.5.
Where goods and services are routinely purchased or leased on a multi- year
basis, the exercise of authority to award a contract is subject to:
a) The identification and availability of sufficient funds in appropriate
accounts for the current year within Council approved Budgets; and
b) Confirmation by the Treasurer that the required funding can be
reasonably expected to be made available in future years.
7.6.
Expenditures are authorized by Council through adoption of the annual
budget. Prior to budget adoption, departments are authorized to expend
funds at the previous years' service levels.
7.7.
The Department Head has the authority to award contracts in the
circumstances specified in this Policy provided that delegated authority is
exercised within the limits prescribed.
7.8.
The Department Head and/or CAO is responsible for ensuring that all
purchasing commitments represent good value for the Village and comply
with all policies of the Village.
7.9.
The Treasurer shall monitor compliance with these policies and shall inform
the Chief Administrative Officer when non-compliance has occurred.
7.10. For purchases not included in the approved budget, or for items that are
expected to exceed the approved budgeted amount by $5000.00 or more,
the following procedures are required:
Page 11 of 35
a) The Department Head must notify the Treasurer and receive the
approval of the CAO before proceeding; and
b) The Department Head will take a report to Council, outlining the
proposed purchase or overage, the reason for it, along with how the
purchase or overage will be funded.
8.
ACCESSIBILITY
8.1.
Pursuant to the Accessibility for Ontarians with Disabilities Act, 2005, SO
2005, c 11, as amended, in deciding to purchase goods or services, the
Village will have regard for persons with disability. The Village is committed
to accessibility principles and is taking steps to improve accessibility in
accordance with the Ontarians with Disabilities Act, 2005, SO 2005, c 11.
8.2.
Suppliers and contractors providing service to the Village may, as required
by the Accessibility for Ontarians with Disabilities Act, 2005 or subsequent
legislation, be required to sign a "Third Party Declaration" related to their
training in accessibility requirements.
9.
ADVERTISING OF PURCHASING OPPORTUNITIES
9.1.
Purchases requiring an RFP, RFQ or RFT shall, at a minimum, be advertised:
a) On the Village's website from the date that the Bid Solicitation is issued
up to and including the date on which the Bid Solicitation closes; and/or
b) One time, at least seven (7) calendar days before the Bid Solicitation
closes, in a local newspaper that has circulation within the Village.
10.
CANCELLATION OF REQUEST FOR QUOTATION, PROPOSAL OR TENDER
A Department Head, with the concurrence of the CAO, or the CAO individually, may
cancel a Request for Quotation, Proposal or Tender at any time up to contract
award, and shall ensure that the confidentiality of any bid submitted is maintained
in accordance with the provisions of the Municipal Freedom of Information and
Protection of Privacy Act RSO 1990 c. M.56, as amended ("MFIPPA").
11.
REQUEST FOR PRE-QUALIFICATION OF ACCEPTABLE SUPPLIERS
11.1. The Village may conduct a Request for Pre-Qualification (RFPQ) to develop
a list of suppliers that may be eligible to submit a Bid on subsequent Bid
Solicitations or to develop a roster of suppliers for professional services.
11.2. Pre-Qualification may be considered in the following circumstances:
a) The work will require substantial project management by the Village and
could result in substantial cost to the Village if the supplier is not
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appropriately experienced;
b) The goods and/or services to be purchased must meet national safety
standards;
c) The work involves complex, multi-disciplinary activities, specialized
expertise, equipment, materials or financial requirements;
d) Miscellaneous repairs and services as are required by the Village such
as plumbers, electricians, locksmiths and drywall contractors;
e) There could be substantial impact on the Village 's operations if the work
is not satisfactorily performed the first time; or
f) Any other circumstances deemed appropriate by the CAO or
Department Head.
11.3. An RFPQ shall be provided to potential suppliers identified by the
Department Head, which sets out the criteria for prequalification which may
include, but are not limited to:
a) Experience on similar work (firm and staff assigned);
b) References provided from other customers for similar work;
c) Verification of applicable licences and certificates;
d) Health and safety policies and staff training; and
e) Financial capability.
11.4. Supplier submissions will be evaluated and ranked and a short list of pre-
qualified suppliers will be invited to participate in the second step of the two-
step purchasing process being a Request for Proposal or a Request for
Tender.
11.5. An RFPQ is not a legal offer but only an invitation for suppliers to make
offers to the Village.
12.
DIRECT PURCHASES - (NON-COMPETITIVE) PURCHASES OF $0 TO
$2500.00 (EXCLUDING HST)
12.1. A non-competitive procurement process shall be permitted where the
valuation of the purchase is $2,500.00 or less, excluding HST, so as to allow
for procurement of lower value goods and services in an efficient and timely
manner without seeking competitive pricing.
12.2. The CAO, Department Head and/or Designate shall have authority to make
purchases where the required goods or service can be specified, and are of
a value of $2,500.00 (excluding HST) or less as stated above and may be
Page 13 of 35
acquired by direct purchase without formally seeking comparative bids,
although informal comparative pricing is encouraged.
12.3. All disbursements shall be evidenced by invoices approved by the CAO,
Department Head or Designate.
Only purchases that can be demonstrated to have been made at or below fair
market value shall be made.
13.
LOWER VALUE PURCHASES - PURCHASES OF $2,501.00 - $5,000.00
(EXCLUDING HST)
13.1. The CAO, Department Head and/or Designate shall have authority to make
purchases to meet the requirements of the Village for the acquisition of
goods, services or construction having a value of $2501.00 - $5,000.00.
13.2. The user department shall obtain 3 Quotes for the required item through
vendor advertising, telephone, fax, catalogue, internet, or other means,
where possible and practicable. The Department shall keep a record of such
Quotes.
13.3. Only purchases that can be demonstrated to have been made at fair market
value shall be made.
13.4. All disbursements shall be evidenced by invoices approved by the CAO,
Department Head or Designate.
14.
MID-RANGE PURCHASES BETWEEN $5,001.00 AND $15,000.00 (EXCLUDING HST)
14.1. Purchases estimated between $5,001.00 and $15,000.00 shall be handled
by the CAO, Department Head, or Designate, obtaining a minimum of 3
written Quotes where possible and practicable, which shall be evaluated on
overall cost, Best Value, and the criteria outlined in the quote request. The
Department Head shall keep a record of such quotations.
14.2. Quotes need not be obtained if the purchase qualifies for Single Source or
Sole Source purchases.
14.3. All disbursements shall be evidenced by invoices approved by the CAO,
Department Head or Designate.
15.
HIGH VALUE PURCHASES BETWEEN $15,001.00 AND $50,000.00
(EXCLUDING HST)
15.1. The CAO, Department Head or Designate shall issue a Request for
Quotation (RFQ) which shall include the following information:
a) The specifications for the goods and services required;
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b) The name and address of the Village and person to whom the Bids
should be directed;
c) The date and time of closing for the receiving of sealed Bids; and
d) Required delivery date, if applicable.
15.2. Bids received by the Village must be submitted and received in the manner
as specified in the bid document, and include specifications of
products/services, supplier's company name, name of individual receiving
RFQ, date, amount and delivery date.
15.3. The winning Bid shall be selected based on the Best Value to the Village.
The Bidder acknowledges that the Village shall have the right to reject any,
or all, RFQ for any reason, or to accept any RFQ which the Village in its
sole unfettered discretion deems most advantageous to itself. The lowest
bid will not necessarily be accepted.
15.4. In the instance a Bid provides for a deviation between the requirements of
an RFQ and a Bid, the Bid Irregularities listed at Schedule "B" shall be
applied.
15.5. If only one Bid is received, the Village may exercise its right to cancel the
RFQ or may accept the bid, at its discretion.
15.6. Bids may be opened in public by representatives from the department.
Prices are disclosed unless protected under legislation. Members of the
public attending the opening will record their name on a sign in sheet.
15.7. No report to Council is necessary provided that the expenditure is within
budget, unless otherwise determined by the CAO.
15.8. Bids shall remain confidential until after the date and time of closing.
15.9. All disbursements shall be evidenced by invoices approved by the CAO,
Department Head or Designate.
16.
HIGH VALUE REQUEST FOR TENDER - PURCHASES $50,001.00 AND OVER
(EXCLUDING HST)
16.1. A Request for Tender shall be used for purchases exceeding $50,001.00
(excluding HST) where all the following criteria apply:
a) Two or more sources are considered capable of supplying the
requirement;
b) The requirement is adequately defined to permit the evaluation of
tenders against clearly stated criteria;
c) The market conditions are such that tenders can be submitted on a
Page 15 of 35
common pricing basis;
d) Sufficient funds are available and identified in appropriate accounts
within Council approved budgets, except in an emergency situation;
e) Any Bid irregularities shall be dealt with in accordance with Schedule "B";
and
f)
The provisions of this Policy are complied with.
16.2. The CAO or Department shall prepare and publish the advertisement as
outlined at section 9 of this Policy.
16.3. Tenders received by the Village must be submitted and received in the
manner as specified in the bid document, and include specifications of
products/services, supplier's company name, name of individual receiving
tender, date, amount and delivery date.
16.4. If only one tender is received, the Village has the option of not opening the
bid and closing the call for tender.
16.5. Tenders received are opened in the presence of the Department Head or
Designate, Treasurer or Designate as well as anyone from the general
public. Members of the public attending the opening will record their name
on a sign in sheet.
16.6. The winning bid shall be selected based on the Best Value to the Village.
The Bidder acknowledges that the Village shall have the right to reject any,
or all, tenders for any reason, or to accept any tender which the Village in
its sole unfettered discretion deems most advantageous to itself. The lowest
tender will not necessarily be accepted.
16.7. Tenders are reviewed by the applicable staff/consultant and a written report
prepared and presented to Council recommending the award of the contract
to the supplier meeting all mandatory requirements and providing Best
Value as stipulated in the Request for Tender.
16.8. The contract will then be awarded by Council.
16.9. The Department Head is responsible for obtaining current insurance
certificates, WSIB certificates, and performance bonds, as called for in the
bid documents.
16.10. The original agreement shall be sent to the Clerk for filing with the minutes
and bylaws of the Village.
16.11. The original performance bond and a copy of the agreement shall be sent
to Treasury.
16.12. All disbursements shall be evidenced by invoices approved by the CAO,
Department Head or Designate.
Page 16 of 35
17.
REQUEST FOR PROPOSAL - (MAY INCLUDE THE ENGAGEMENT OF
PROFESSIONAL & CONSULTING SERVICES & MAY BE OF ANY DOLLAR
VALUE)
In certain instances, when the requirements for goods and/or services cannot be
definitively specified, a Request for Proposal is used. An RFP is an invitation to
enter into negotiations. The process involves solicitation of proposals from
interested and qualified vendors or consultants, by invitation or advertisement. If and
when the successful party is chosen, they have been granted the opportunity to
negotiate with the Village for the work, but they have not yet been awarded the
contract. An RFP is used in conjunction with strong evaluation criteria that includes
but is not limited to price. Schedule D outlines the RFP requirements.
17.1. A request for proposals shall be issued where the goods, services or
construction cannot be specifically defined and it is anticipated that bidders
may propose a variety of alternatives to fulfill the Village`s requirements.
17.2. All RFPs shall clearly set out evaluation criteria and weightings on a pre-
determined point system upon which an award of the RFP may be made.
17.3. The RFP shall clearly indicate those needs which have been determined
and which will have to be fulfilled by the successful proponent. For example,
the proposal shall clearly state mandatory criteria that are project related
and weighted criteria such as qualifications and the approach. The CAO,
Department Head or Designate shall be responsible for establishing such
criteria.
17.4. The RFP shall not be construed as a contract to purchase goods and
services and the Village is not bound to accept the lowest price submitted.
Price may not be the primary evaluation factor and subsequent award
recommendation.
17.5. RFPs are not formally opened in public.
17.6. The advertisement and approval processes, will be subject to the limits and
guidelines established in sections 14, 15 and 16, depending on the value of
the RFP.
18.
SPECIAL CIRCUMSTANCE PURCHASES
18.1. Purchases that are required to respond to a Special Circumstance, as
defined in this Policy, shall be authorized in accordance with Schedule "C".
18.2. All such purchases must be reported to the Treasurer and the CAO the
following business day and all purchases must have written evidence of
approval from the CAO.
Page 17 of 35
18.3. Contracts required to effect Special Circumstance purchases shall be
signed in accordance with the Document Execution Authorities set out in
Schedule "C".
18.4. The CAO may enter into a contract for the provision of services under a
qualifying special circumstance. Any contractual agreements must then be
approved by Council at its next Council meeting.
18.5. Where an emergency exists requiring the immediate procurement of goods,
services and construction and time does not permit the Department Head
and/or CAO to follow normal purchasing activities to acquire such goods
and services, the CAO may authorize the purchase required by the most
expedient and economical means, without following the purchasing by-law.
18.6. When such action is taken as outlined above, the Department Head or
Designate and/or CAO shall report such action to Council forthwith, if the
amount is outside the budget allotment.
19.
SINGLE SOURCE PURCHASES
19.1. SINGLE SOURCE PROCUREMENT
Purchase of goods or services and direct appointment of a consulting
professional by negotiation with a single vendor or consultant may be
permitted, if it is deemed in the best interest of the Village, it has the written
approval of the CAO and Treasurer before proceeding, and in the judgment
of the Department Head any of the following conditions apply:
a) The goods and services are in short supply due to market conditions;
b) In the case of professional and consulting services, specialized
expertise is required which is not available from more than one
professional/consultant, or the issue is a continuation or recurrence of a
previous issue;
c) The sources of supply are restricted to the extent that there is not
effective price competition, or consideration of substitutes is precluded
due to any of the following:
i. Components or replacement
parts for which there is no
substitute;
ii. Compatibility with an existing product, facility or service is required;
or
iii. Specific standards are adopted by Council;
d) There is documented evidence that the extension or reinstatement of an
existing contract would prove most cost effective or beneficial;
Page 18 of 35
e) Work is required at a location where a contractor or professional has
already been secured through a tender process, with established unit
prices by another party and it is considered to be beneficial and cost
effective to extend the unit prices for the work to be completed for the
Village;
f)
The project is a multi-year contract;
g) Only one bid/proposal is received through the procurement process and
it is impractical to recall the requirements of the call for
quotations/proposals. After the process has closed, it may be necessary
for discussion to occur to clarify and/or make revisions to the initially
defined requirements of the call for quotations/ proposals; or
h) The nature of the requirement is such that it would not be in the public
interest to solicit competitive Bids, as in the case of security or
confidential matters.
19.2. SOLE SOURCE PROCUREMENT
Sole source procurement may be permitted if a specialized item/ service is
required which is only available from one vendor. The requisitioning
department will require the written approval of the CAO and Treasurer
before proceeding. All purchases shall be authorized in accordance with the
Purchasing Authorities set out in Schedule "C" based on the dollar value of
the sole source procurement and all Contracts shall be signed in accordance
with the Document Execution Authorities set out in Schedule "C" (again,
based on the dollar value of the sole source procurement).
19.3.
EXCEPTIONAL ALTERNATIVE/NEGOTIATION METHOD
A formal Bid Solicitation process may be waived and the CAO, a
Department Head or Designate may purchase by negotiation with one (1)
or more suppliers under the following conditions:
a) The required goods and/or services are in short supply;
b) Competition is precluded due to the existence of any patent right,
copyright, technical secret or control of raw material;
c) A Sole Source is being recommended;
d) Two (2) or more identical Bids are received;
e) The Lowest Compliant Bid received meeting all specifications exceeds
the Budget amount;
f)
The extension of an existing Contract would be more effective;
Page 19 of 35
g) Only one (1) Bid is received in response to a Bid Solicitation;
h) The Bid Solicitation process has been cancelled without Award;
i)
A roster for professional services has been developed; or
j)
There is Council authorization to do so.
All purchases shall be authorized in accordance with the Purchasing
Authorities set out in Schedule "C" and all Contracts shall be signed in
accordance with the Document Execution Authorities set out in Schedule "C".
20.
PETTY CASH
20.1. Cash purchases (petty cash) may be used by staff in accordance with
established procedures and where the value is less than $50.00.
20.2. Cash purchases are not to be split to bypass the transaction dollar limit.
21.
CO-OPERATIVE PURCHASING
The Village may enter into arrangements with any government body, ministry,
agency, board, corporation or authority on a co-operative or joint basis for
purchases of goods and/or services where there are economic advantages in doing
so and such purchases comply with this Policy.
22. CORPORATE CREDIT CARDS
22.1
Corporate credit cards may be issued to Department Heads upon CAO
approval. Credit cards are to be used in compliance with the Procurement
Policy and the issuing creditor's terms and conditions. The credit card is the
property of the Village.
22.2
Corporate credits cards can only be used to conduct official municipal
business and only where the normal procurement process is impractical, or
in the case of emergencies. Credit cards may be used to arrange
registration, accommodations and travel for municipal training and
conferences, but only if attendance at the training and conference has been
approved in advance by the CAO.
22.3
Elected Officials are not permitted to have a corporate credit card.
22.4
The cardholder will be subject to a card limit of $3000 or less.
22.5
Monthly statements will be provided to card holders by Finance staff and all
credit card transactions must be reconciled with original receipts and
returned to the Finance Department as soon as possible.
22.6
The cardholder is responsible for immediately reporting a lost or stolen credit
card first to the credit card company, and secondly to the Treasurer.
Page 20 of 35
22.7
Under no circumstances may the corporate credit card be used for personal
purchases or cash advances.
22.8
Failure of the cardholder to adhere to the provisions and regulations of the
corporate credit card may result in the loss of privileges and/or disciplinary
action up to and including termination for cause in accordance with the
Village's human resources Policy.
23.
TENDER AND CONTRACT ADMINISTRATION
23.1. FINANCIAL SECURITIES AND INSURANCE
i.
The Village may require that a Bid be accompanied by a Bid Deposit or
other similar security to guarantee that the successful supplier enters
into a Contract with the Village.
ii.
In addition to the security referred to above, the successful supplier may
also be required to provide:
a) A performance bond to guarantee the performance of the Contract;
b) A labour and materials bond to guarantee the payment for labour and
materials to be supplied in connection with a Contract; and/or
c) Such further
security as the CAO or Department Head deems
appropriate in the circumstances.
iii.
Prior to the commencement of work, the supplier shall provide to the
Village, proof of insurance in accordance with the Bid Solicitation,
satisfactory to the Department Head.
iv.
Failure to comply with all terms and conditions of a Bid Solicitation,
including, but not limited to, failure to provide proof of insurance as
required, shall be just cause for cancellation of the Award.
v.
Prior to the Village issuing payment to a supplier and before any work
commences, the supplier shall provide a Certificate of Clearance from
the Workplace Safety and Insurance Board confirming all premiums or
levies have been paid to the Board to date.
23.2.
BID IRREGULARITIES
The process for administering irregularities contained in Bids pertaining to
all Bid Solicitations shall be as set out in Schedule "B".
23.3.
FORM OF CONTRACT
i.
A formal written agreement satisfactory to the CAO or Treasurer shall
be used when the resulting Contract is of significant value, exceeding
$50,001. This requirement may be waived at the discretion of the CAO
or Treasurer.
Page 21 of 35
ii.
It shall be the responsibility of the Department Head, in consultation
with the CAO or Treasurer, to determine if it is in the best interest of the
Village to establish a formal written agreement with the supplier.
iii.
Where it is recommended that a written agreement be executed, it will be
authorized by:
a) the Head of Council and CAO after being approved by Council for contracts
over $50,000; and
b) the Department Head and/or CAO for contracts under $50,000.
23.4.
SUPPLIER PERFORMANCE
i.
The Department Head, or Designate, shall monitor and document the
performance of suppliers providing goods and/or services to that
department. The Department Head, Treasurer and CAO shall be
notified in writing when the performance of a supplier has been
unsatisfactory.
ii.
The Village may, at the discretion of the CAO, disqualify a supplier from
bidding on any Bid Solicitation or reject a Bid if a supplier:
a) Has, at any time, threatened, commenced or engaged in legal
claims or litigation against the Village;
b) Is involved in a claim or litigation initiated by the Village;
c) Previously provided goods and/or services to the Village in an
unsatisfactory manner;
d) Has failed to satisfy an outstanding debt to the Village;
e) Has a history of illegitimate, frivolous, unreasonable or invalid
claims;
f) Provides incomplete, unrepresentative references or receives
unsatisfactory external and/or internal references in a reference
check undertaken by the Village.
g) Has engaged in conduct that leads the Village to determine that it
would not be in the Village's best interests to accept the Bid.
23.5.
SUBMISSION OF TENDERS AND PROPOSALS
Sealed tenders or proposals, clearly marked as to contents, shall be
accepted. Tenders or proposals by facsimile or in electronic form will not be
accepted, unless specified in the tender or proposal bid solicitation.
Page 22 of 35
23.6.
ENVIRONMENTALLY SOUND ACQUISITIONS
Departments will, when possible, endeavor to include specifications in Bid
Solicitations that provide for energy efficient products, reusable products
and products that contain the minimum level of post-consumer waste and/or
maximum amount of recyclable content, without significantly affecting the
intended use of the product or service. It is recognized that cost analysis is
required in order to ensure that the products are competitively priced.
23.7.
CONTRACT EXECUTION
Successful bidder(s)/proponent(s) who are required to execute a contract
agreement with the Village shall provide the following items for performance
of a contract:
a)
Contract security;
b)
Proof of insurance;
c)
Certificate of Workplace Safety and Insurance Board (WSIB)
compliance;
d)
Policy and Procedures related to Health & Safety;
e)
Signed Third Party Declaration of and supporting documentation that
the supplier received AODA training;
f)
Project schedule;
g)
Accrediting credentials; and
h)
Any other relevant documentation as may be warranted and requested
at the discretion of Council, the CAO or the Department Head.
The Department Head shall select the appropriate means to guarantee
execution and performance of the contract. Means may include one or more
of, but are not limited to, financial bonds or other forms of security deposits,
provisions for liquidated damages, progress payments, and holdbacks.
23.8.
EXERCISE OF CONTRACT RENEWAL OPTIONS
i.
Where a contract contains an option for renewal, the CAO may authorize
the Department Head to exercise such option provided that:
a) The supplier's performance in supplying the goods, services or
construction is considered to have met the requirements of the
contract;
b) The exercise of this option is in the best interest of the Village; and
Page 23 of 35
c) Funds are available in appropriate accounts within Council
approved budget including authorized revisions to meet the
proposed expenditure.
ii.
Where it is recommended that a contract be renewed, it will be authorized
by:
a) the Head of Council and CAO after being approved by Council For contracts
over $50,000; and
b) the Department Head and/or CAO for contracts under $50,000.
23.9.
CONTRACT AMENDMENTS AND REVISIONS
i.
No amendment or revision to a contract shall be made unless the
amendment is in the best interest of the Village.
ii.
No amendment that changes the overall cost to the Village or value of
the contract shall be agreed to without a corresponding change in
requirement or scope of work.
iii.
Amendments to contracts are subject to the identification and availability
of sufficient funds in appropriate accounts within Council's approved
Budget including authorized revisions, approved by resolution of
Council.
24.
LEASE CONTRACTS
In general, rental or leasing arrangements will be considered when the one-time
cost of purchase of the goods or service cannot be reasonably justified and the
goods or services are legitimately required to meet an operational need.
24.1. Lease/rental contracts will be negotiated by the Department Head, in
consultation with the CAO and Treasurer.
24.2. The lease/rental contract will require the written approval of the CAO and
Treasurer.
24.3. All financing leases must comply with the Municipal Act 2001, S.O. 2001,
c.25, as amended.
24.4. A report to Council will be required, unless the lease value is less than
$50,000. The report shall include a description of the product or service,
the value of the product or service, term of lease, monthly and annual
lease payments, residual amount, interest costs and a comparison of
lease/purchase options and shall include a recommendation by the
Department Head, Treasurer and CAO.
Page 24 of 35
24.5. Any analysis of lease/rental or buy options, whether prepared at the time of
proposed procurement or during any review of operational needs or long
term planning exercise, must be submitted to the Treasurer and CAO for
review and recommendation prior to going forward to Council or any
committee of Council.
24.6. A copy of all rental and lease documents must be forwarded to the
Treasurer after finalization and the original documents must be sent to the
Clerk.
25.
TERM OF COUNCIL
Where a contract may extend beyond the term of the Council, the contract may
contain provisions to minimize the financial liability of the Village should the
subsequent Council not approve sufficient funds to complete the contract and the
contract must be terminated by the Village.
26.
ACCESS TO INFORMATION
26.1. The disclosure of information received relevant to the issue of bid
solicitations or the award of contracts shall be made by the appropriate
officers in accordance with the provisions of MFIPPA.
26.2. All suppliers who contract with the Village shall adhere to or exceed the
standards set in the MFIPPA and other relevant Ontario or federal privacy
legislation or common law as may be passed or amended from time to time,
as if they are agents of the Village as related to the confidential and secure
treatment, including collection, use, disclosure or retention of personal
information, other confidential information of the Village, and all records
thereof which they come into contact with in the course of performing
services or providing goods to the Village.
27.
PROVIDING ASSISTANCE
The CAO has the authority, provided there is no adverse impact upon the
operations of the Village, to lend, lease, rent or otherwise provide any vehicle,
equipment, facility or other goods owned by the Village to any federal, provincial,
or municipal body, ministry, agency, board, corporation or other public authority
when such action is reasonably justified due to unforeseen conditions and shall
report such action to Council forthwith.
28.
CONFLICT OF INTEREST
28.1. The submission of all bids must include a declaration by the Bidder that
there is no actual, potential, or reasonably perceived conflict of interest in
that Bidder submitting a Bid in respect of that Bid Solicitation, or where there
Page 25 of 35
is an actual, potential, or reasonably perceived conflict of interest, the
Bidder must provide details of the conflict of interest. Where a Bidder
submits details in respect of an actual, potential, or reasonably perceived
conflict of interest, the Department Head shall review the details and, in
consultation with the Village's legal counsel, determine if the actual,
potential, or reasonably perceived conflict of interest serves to disqualify
that Bidder from further participation in the Bid Solicitation.
28.2. Personal purchases shall not be made for any elected or appointed officials,
members of a board or commission, or for Village officers, employees or their
families.
28.3. Every elected official, appointed officer, past or present employee of the
Village or member of an employee's family is expressly prohibited from
accepting, directly or indirectly, from any person, company, firm or
corporation and to which any Contract is, has or might be awarded, any
rebate, gift or money, except:
a) Moderate hospitality during normal course of business that would not
significantly exceed what the Village, through its Budget would likely
provide in return and would not be perceived by others as influencing
the making of a business decision.
28.4. All elected officials, officers or employees of the Village shall declare any
Conflicts of Interest to the Treasurer and CAO and shall have no involvement
in a purchasing process where a real or perceived Conflict of Interest has
been found or deemed to exist, including but not limited to:
a) Requesting the goods and/or services, setting the parameters of the
Purchase, evaluating Bids or recommending, deciding, approving or
making Awards; and
b) Direct contact with those making those purchasing decisions.
28.5. Any employee who has a conflict of interest, meaning a situation where the
employee's personal interests may affect or may reasonably be perceived
to affect the employee's judgement in acting in the best interest of the
Village, shall disclose the conflict of interest to the Chief Administrative
Officer (CAO) and shall withdraw from the procurement process. Members
of Council, committees and local boards shall comply with the Municipal
Conflict of Interest Act.
29.
DISPOSAL OF SURPLUS AND OBSOLETE GOODS
29.1. AUTHORITY FOR DISPOSAL OF SURPLUS GOODS
The disposal of surplus and obsolete goods shall be evaluated on a case-
by-case basis. Surplus and obsolete goods includes, but is not limited to,
equipment, furniture, and vehicles. The Department Head, in conjunction
Page 26 of 35
with the Treasurer and CAO, have the authority to sell, exchange, or
otherwise dispose of goods declared as surplus to the needs of the Village,
where it is cost effective and in the best interest of the Village to do so.
29.2. MEANS OF DISPOSAL OF SURPLUS GOODS:
Surplus and obsolete goods may:
a) Be offered to other departments or Public Bodies;
b) Be sold by external advertisement, formal request, auction or public
sale (where it is deemed appropriate, a reserve price may be
established);
c) Be sold or traded to the original Supplier or others in that line of
business where it is determined that a higher net return will be
obtained than by following other procedures;
d) Be donated to a registered charity;
e) Be recycled; or
f) Be scrapped, in the event that all efforts to dispose of goods are
unsuccessful.
The sale or offer of such goods to employees, Municipal Councillors, or their
family members, is prohibited.
30. MISCELLANEOUS TERMS/PROVISIONS
30.1 ELECTED OFFICIAL ROLE
Elected officials shall be involved in the procurement process only as voting
members of Council. Elected officials shall not make purchasing
commitments or acquire goods and services on behalf of the Village and
shall not interfere with or attempt to influence staffs' adherence to this
Policy.
30.2 NO EMPLOYER - EMPLOYEE RELATIONSHIP
The CAO and/or Department Head shall reject any purchase requisition or
proposal for services where the services could result in the establishment
of an employer-employee relationship.
30.3 CONSULTANTS' CONFLICTS OF INTEREST - DISCLOSURE
All consultants (engineers, architects, legal and other advisors) retained by
the Village shall disclose any real or potential conflict of interest prior to
accepting a contract or as soon as the conflict is evident to the consultant.
The Village may then withhold the assignment from the consultant until the
matter is resolved or may terminate the contract without penalty, at the
Page 27 of 35
Village's sole discretion.
30.4 NO SPLITTING
Splitting of orders (dividing of large orders into two or more smaller
requisitions) to stay within expenditures thresholds is not permitted.
30.5 UNSOLICITED PROPOSALS
Unsolicited proposals will not be accepted by the Village. Unsolicited proposals
should not be considered where they would circumvent any planned procurement
process, including but not limited to any potential RFEOI process.
30.6 GIFTS
No employee shall accept any gifts or favors from any vendor, contractor or
others who may do business with the Village that could tend to influence the
employee in the performance of his/her duties. "Gifts" do not include
promotional materials with a value of less than $20.00.
30.7 NO DISCRIMINATION
In accordance with best practices, the Village shall attempt to achieve the
best value in the procurement of goods and services. Therefore, no
preference will be given for the purchase of goods and/or services based
on local content, nor will the Village practice local or geographic preference
in awarding contracts.
30.8 COMPLIANCE
A Department Head shall not award a contract where this Policy has not
been complied with or when the Department Head has been advised not to
do so by the Treasurer or CAO.
30.9 DISCIPLINARY ACTION
Any employee who knowingly acts in contravention of this Policy, as
amended from time to time, shall be subject to disciplinary action in
accordance with the Human Resources Policies of the Village.
30.10 ACCOUNTABILITY
Accountability refers to the obligation to justify decisions made in terms of
prudent spending of public funds, and provides clear delegation of authority
and a means of ensuring implementation of plans authorized in the annual
budget.
Page 28 of 35
SCHEDULE "A" - Purchasing Exemptions
The purchasing methods described in this Policy do not apply to the following goods and
services:
1. Petty Cash items
2. Training and Education
a) registration and tuition fees for conferences, conventions, courses and
seminars
b) magazines, books and periodical unless the purchase of such items are
subject to value-added services
c) memberships
3. Refundable employee/Councillor expenses
a) meal allowances
b) travel and entertainment
c) miscellaneous - non travel
4. Employer's general expenses
a) payroll deductions remittances
b) medical
c) licenses, (vehicles, etc.)
d) debenture payments
e) grants
f) tax remittances
g) damage claims
h) payments for employment
i) charges to/from other Government or Crown corporations
5. Professional Services
a) Committee fees
b) Medical and laboratory services
c) Fees for professional services, including but not limited to, Human Resources, Legal,
Engineering and Planning
d) Funeral and Burial expenses
e) Appraiser fees
f) Witness fees
g) Honorariums
h) Advertising
i) Legal settlements
j) Insurance
6. Ongoing maintenance and software licensing agreements for equipment such as
computer hardware and software, telecommunications equipment, elevators, and
HVAC equipment.
7. Banking Services and Charges
8. Utilities (monthly charges)
a) Water and Sewer
Page 29 of 35
b) Electricity
c) Gas
d) Postage
e) Communication infrastructure services (Bell, Cogeco, etc.)
f) Utility relocations
g) Construction work completed by Railways on property of the Village and billed
to the Village.
Page 30 of 35
SCHEDULE "B" - Chart of Bid Irregularities
Irregularity
Response
Late Bids
Automatic rejection
Unsealed Envelope
Two (2) working days to correct to the
satisfaction of department, otherwise
automatic rejection
No bid deposit, uncertified cheque, or
financial security not an original
Two (2) working days to correct to the
satisfaction of department, otherwise
automatic rejection
Amount of Financial Security is
insufficient
Two (2) working days to correct to the
satisfaction of department, otherwise
automatic rejection
Name, or signature of supplier, or
bonding company is missing or
incomplete
Two (2) working days to correct to the
satisfaction of department, otherwise
automatic rejection
Failure to provide a letter of
agreement to bond (if applicable)
Two (2) working days to correct to the
satisfaction of department, otherwise
automatic rejection
Bids completed in erasable medium
Two (2) working days to correct to the
satisfaction of department, otherwise
automatic rejection
Signature of representative authorized to
bind the supplier missing or incomplete
on the document
Two (2) working days to correct to
the
satisfaction
of
department,
otherwise automatic rejection
Form of Proposal or Quotation missing or
incomplete
Two (2) working days to correct to the
satisfaction of department, otherwise
automatic rejection
Signature of witness, if required,
missing or incomplete
Two (2) working days to correct
otherwise automatic rejection
Date of Bid missing or incomplete
Two (2) working days to correct,
otherwise automatic rejection (or
automatic rejection if stated in the Bid
Solicitation)
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Irregularity
Response
Bids received on documents other
than those provided or specified by
the Village
Two (2) working days to correct to the
satisfaction of department, otherwise
automatic rejection
Bids containing minor obvious clerical
errors or mathematical errors
Two (2) working days to initial the
correction as made by the Village. Unless
otherwise stated in the Bid, the unit price
shall prevail and the total Bid price shall be
adjusted accordingly. The Village reserves
the right to waive initialing and accept Bid
as corrected.
Incomplete, illegible or obscure Bids or
Bids which contain information not
called for, erasures, overwriting or
strike outs (not initialed)
Two (2) working days to correct to the
satisfaction of the Village, otherwise
automatic rejection.
Bids, in which all necessary Addenda
have not been acknowledged
Two (2) working days to confirm Bid to the
satisfaction of the Village, or if stated in
the Bid Solicitation automatic rejection.
Failure to attend mandatory site visit (if
required)
Automatic rejection.
Working days start from the hour the Bidder is notified by Village staff of the irregularity.
Page 32 of 35
SCHEDULE "C" - Purchasing and Execution Authority
Method of
Purchasing
Dollar
Value
Purchasing
Authority
Document
Execution
Authority
Type of
Agreement with
Supplier
Direct Purchases -
(non-competitive)
Purchases of $0 to
$2500
0- $2500
Any employee
authorized by the
CAO or
Department Head
CAO,
Department
Head or
Designate
Direct acquisition
Low Value
Purchases
(3 verbal
quotations for
goods and
services)
$2501 to
$5000
CAO,
Department
Head
or
Designate
CAO,
Department
Head or
Designate
Direct
acquisition
Mid-range
Purchases
(obtaining a
minimum 3 written
quotations
for goods and
services)
$5001 to
$15,000
CAO,
Department
Head
or
Designate
CAO,
Department
Head or
Designate
Direct
acquisition
High Value
Purchases (formal
bid solicitation to
obtain quotations)
$15,001 to
$50,000
CAO,
Department
Head or
Designate
Department
Head and/or
CAO
Direct
acquisition or
Agreement
High Value
Tenders or RFP's
$50,001
and over
CAO,
Department
Head or
Designate
Head of
Council and
CAO
Direct
acquisition or
Agreement
Special
Circumstances
N/A
Department Head
and/or CAO
Department
Head and/or
CAO
Direct
acquisition or
Agreement
Page 33 of 35
SCHEDULE "D" - RFP Completion and Submission Requirements
a) The entire work is to be awarded to one (1) Contractor and therefore ALL ITEMS must
be bid on the RFP Form.
b) When so required by the Village, the Contractor shall produce evidence as to his
qualifications and previous experience in the types of work contemplated by this
Contract.
c) All unit prices must be clearly indicated. The person signing on behalf of the Contractor
must initial erasures, overwriting, or strike-outs.
d) In the event of a discrepancy between the unit price submitted and the extension
utilized in the calculation of the total for any item, then the unit price shall govern.
e) The total bid must not be restricted by a statement added to the RFP Form or a
covering letter, or alterations to the RFP Form provided by the Village. Adjustments
by fax, telegram or letter to an RFP already submitted will not be considered. A bidder
desiring to make adjustments to an RFP must withdraw the RFP and/or supersede it
with a later submission prior to the closing time of the RFP call.
f) For an interpretation of the tendering requirements, the Village of Merrickville-Wolford
Procurement Policy shall govern.
g) The RFP Envelope must be clearly marked as to the fact it is an RFP.
h) Each amount in the RFP shall be a reasonable price for each item. The CAO,
Treasurer or Department Head or Designate, as defined herein, shall be the sole judge
of such matters and should any RFP be considered to be unbalanced or unclear it may
be rejected, or additional clarification may be requested prior to acceptance or
rejection.
RFP Deposit
a) A certified cheque or bid bond made payable to the Village in the amount of 5% of
the total tender must be submitted with the RFP if requested. The cheques of the
two lowest bidders will be retained until acceptance of the tender by the Village
and execution of a contract. The cheques of all other bidders will be returned within
7 days of tender opening.
b) The Village shall not pay interest on RFP deposits.
Bonding Requirements
a) The successful Bidder will file with the Village a 50% performance bond, and a
50% labour and materials bond signed and sealed by a recognized bonding
company, in the amount of 100% of the total RFP value, upon request.
b) Upon receipt of such bonds, the RFP deposit will be returned to the contractor.
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c) The surety of the successful Bidder and the bonds referred to shall be to the
satisfaction of the Treasurer.
Collusion
The Bidder shall not engage in collusion of any sort and, in particular, shall:
(a) ensure that no person or other legal entity, other than the Bidder has any
undisclosed interest in the RFP;
(b) prepare its RFP without any knowledge of, comparison of figures with, or
arrangement with, any other person or firm preparing an RFP for the
same work.
Right to Accept or Reject Tenders
Notwithstanding any other provision in this Contract, The Village of Merrickville-Wolford
reserves the right in its sole, absolute and unfettered discretion to:
a) make public the names of any or all bidders and their quoted price;
b) request written clarification or the submission of supplementary written
information in relation to the clarification request from any bidder and incorporate
such response to that request for clarification into the bid;
c) consider during the evaluation of the RFP and/or adjust a bidder's scoring and/or
reject a Bid on the basis of:
i) a financial analysis;
ii) information provided by references;
iii) the bidder's past performance on previous contracts awarded by the
Village of Merrickville-Wolford;
iv) the information provided by a Bidder pursuant to the Village of
Merrickville-Wolford exercising its clarification rights under this RFP process;
or
v) Any other information deemed relevant by the Village of Merrickville-
Wolford that arises during the Bid process;
d) verify with any Bidder or with a third party any information set out in an RFP;
e) check references other than those provided by any bidder;
f) disqualify any bidder whose RFP contains misrepresentations or any other
inaccurate or misleading information, or any qualifications;
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g) disqualify any bidder or the RFP of any bidder who has engaged in conduct
prohibited by this RFP process;
h) make changes, including substantial changes, to this call for RFP provided that
those changes are issued by way of addenda in the manner set out in this Bid;
i) select the bidder other than the bidder whose bid reflects the lowest cost to the
Village of Merrickville-Wolford or the highest overall score;
j) cancel this RFP process at any stage;
k) cancel this RFP process at any stage and issue a new RFP call or RFP for the
same or similar deliverables;
l) accept or reject any or all RFPs in whole or in part;
m) accept any irregular or non-compliant bid;
n) discuss with any bidder different or additional terms to those contemplated in this
RFP call; or
o) if a single bid is received, reject the bid of the sole bidder and cancel this RFP
call or enter into direct negotiations with the sole bidder.
These reserved rights are in addition to any other expressed rights or any other rights
which may be implied in the circumstances. The bidders acknowledge that the Village of
Merrickville-Wolford may rely upon the criteria it deems relevant, even though such criteria
may not have been disclosed to the bidders. By submitting an RFP, the bidder
acknowledges the Village of Merrickville-Wolford's rights under this Section and absolutely
waives any right or cause of action against the Village of Merrickville-Wolford or its agents
arising in any way from or relating to this RFP process, whether such right arises at law,
equity, in contract, negligence or otherwise.
Acceptance of the RFP shall occur at the time the Village awards the RFP and not
necessarily at the time the award is communicated to the successful Bidder.