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The Corporation Of The City Of Quinte West
By-Law Number 25-012
Being A By-Law To Adopt A Purchasing Policy for the City of Quinte West.
Whereas it is necessary to meet the requirements of the Municipal Act, namely
Section 270 (1) wherein the City must adopt policies with respect to its
procurement of goods and services;
And Whereas it is deemed desirable to establish a policy to direct the purchase
of goods and services by the various departments within the City;
And Whereas it is necessary to set out minimum requirements to ensure the City
obtains the best value in goods and services at the most economical cost to
provide the basic minimum requirements to ensure that quotations are obtained,
competitive purchasing is adhered to, and to continue to ensure that the City of
Quinte West obtains the best value, goods and services at the most economical
cost;
Now Therefore The Council Of The Corporation Of The City Of Quinte West
Hereby Enacts As Follows:
1.
That this By-law shall be entitled the "Purchasing Policy By-Law".
2.
That the Purchasing Policy as attached, inclusive of Schedules "A", "B"
and "C', is hereby adopted for the City of Quinte West.
3.
That By-law 21-073 is hereby repealed.
4.
This By-law shall take effect upon the final date of passing.
Read A First, Second And A Third Time And Finally Passed This 5th Day Of
February, 2025.
JL
i
Ait4+-----S--)
Jim Harrison, Mayor
dt
Jésh Machesney, Cyxy
Cler
THE CORPORATION OF THE CITY OF QUINTE WEST
SCHEDULE "A" TO BY-LAW NO. 25-012
PURCHASING POLICY
Page 1 of 50
PURCHASING BYLAW 25-012
SCHEDULE "A" - PURCHASING POLICY
SCHEDULE "B" - PURCHASING PROCEDURES/PROCESSES
SCHEDULE "C" - PURCHASING CARD PROGRAM
Revised: February 2025
THE CORPORATION OF THE CITY OF QUINTE WEST
SCHEDULE "A" TO BY-LAW NO. 25-012
PURCHASING POLICY
Page 2 of 50
Contents
SCHEDULE "A" PURCHASING POLICY
1.
DEFINITIONS ......................................................................................................................... 4
2.
PURPOSE ............................................................................................................................... 6
3.
PRINCIPLES ........................................................................................................................... 6
4.
ROLES AND RESPONSIBILITIES ........................................................................................... 7
5.
PROHIBITED ACTIONS ......................................................................................................... 8
6.
ENFORCEMENT ..................................................................................................................... 9
7.
REQUIREMENTS ................................................................................................................... 9
8.
AUTHORITY AND DOLLAR THRESHOLDS ......................................................................... 10
9.
PURCHASING UNDER EXISTING SUPPLY ARRANGEMENTS ........................................... 11
10.
EXEMPTIONS TO REQUIREMENT TO SOLICIT BIDS ......................................................... 11
11.
PURCHASE ORDERS ............................................................................................................ 13
12.
ACCOUNTING ..................................................................................................................... 13
13.
NON STANDARD PURCHASES........................................................................................... 14
14.
CO-OPERATIVE PURCHASING ........................................................................................... 16
15.
BRAND NAMES .................................................................................................................. 16
16.
ACCESSIBILITY FOR ONTARIANS WITH DISABILITIES ACT, 2005 .................................. 16
17.
ACCESSIBLE DOCUMENTS/COMMUNICATION .................................................................. 17
18.
ENVIRONMENTAL ............................................................................................................... 18
19.
IN HOUSE BIDS .................................................................................................................... 18
20.
DISPOSAL OF SURPLUS ITEMS.......................................................................................... 18
21.
REVIEW OF BYLAW ............................................................................................................. 18
SCHEDULE 'B' PROCESSES AND PROCEDURES
1.
CALLING OF COMPETITIVE BIDS ...................................................................................... 21
2.
PREPARATION OF BID DOCUMENTS ............................................................................... 21
3.
HEALTH AND SAFETY......................................................................................................... 22
4.
GOVERNMENTAL REQUIREMENTS .................................................................................. 23
5.
FREEDOM OF INFORMATION ............................................................................................. 23
6.
ADDENDA ........................................................................................................................... 23
7.
SUBMITTING A RESPONSE TO A BID OPPORTUNITY ..................................................... 23
8.
WITHDRAWAL PROCEDURE ............................................................................................. 24
9.
TYPES OF FORMAL PROCESSES ........................................................................................ 24
10.
GUARANTEES OF CONTRACT EXECUTION AND PERFORMANCE .................................. 26
11.
PARTICIPATION IN THE COMPETITIVE PROCESS ............................................................ 26
12.
LOBBYING ........................................................................................................................... 26
13.
EXCLUSION OF BIDDERS IN LITIGATION ......................................................................... 27
14.
EXCLUSION OF BIDDERS DUE TO PAST POOR PERFORMANCE..................................... 27
15.
SUB-CONTRACTING ............................................................................................................ 28
16.
BID OPENING ...................................................................................................................... 28
THE CORPORATION OF THE CITY OF QUINTE WEST
SCHEDULE "A" TO BY-LAW NO. 25-012
PURCHASING POLICY
Page 3 of 50
17.
ONLY ONE BID RECEIVED OR NO BIDS RECEIVED.......................................................... 28
18.
NO ACCEPTABLE BID OR EQUAL BIDS RECEIVED........................................................... 29
19.
PRELIMINARY CHECKING OF SUBMISSIONS ...................................................................... 30
20.
EVALUATION PROCESS ....................................................................................................... 31
21.
RESERVATION OF RIGHTS BY THE CORPORATION ............................................................ 32
22.
CONTRACT AWARD/CONTRACT EXECUTION AND PERFORMANCE ................................. 34
23.
SUPPLIER RELATIONS AND CONTRACT MANAGEMENT.................................................... 35
24.
EXERCISE OF CONTRACT RENEWAL OPTIONS.................................................................... 36
25.
ACCESS TO INFORMATION ................................................................................................. 36
26.
DEFAULT AND NON-PERFORMANCE.................................................................................. 37
27.
DISPUTE RESOLUTION ........................................................................................................ 37
28.
PERFORMANCE TRACKING ................................................................................................. 38
SCHEDULE 'C' PURCHASING CARD PROGRAM
1.
INTRODUCTION .................................................................................................................. 40
2.
POLICY.............................................................................................................................................. 40
3.
RESPONSIBILITIES........................................................................................................................... 43
4.
PROCEDURES.................................................................................................................................. 44
5.
PAYMENT & CALCULATION OF INTEREST..................................................................................48
6.
MANAGEMENT REPORTS............................................................................................................. 48
EMPLOYEE ACKNOWLEDGEMENT OF RESPONSIBILITIES...................................................................49
THE CORPORATION OF THE CITY OF QUINTE WEST
SCHEDULE "A" TO BY-LAW NO. 25-012
PURCHASING POLICY
Page 4 of 50
1. DEFINITIONS
"Award" means the selection of a Bidder and their
Goods and/or Services as accepted by the City;
"Agreement to Bond" means a letter or other form
issued by a bonding agency licensed to operate by the
Government of Canada or the Province of Ontario
advising that, if the Bidder is successful, the bonding
agency will issue the required bonds;
"Addenda or Addendum" means such further
additions, clarifications, deletions, modifications or
other changes to any Bid Document;
"Bid" means the Bidder's offer to sell to the City;
"Bidder" or "Proponent" or "Respondent" means
a person, Supplier, Vendor, contractor, developer or
professional, who submits a Bid to the City;
"Bid Deposit" means currency, certified cheque, bank
draft, bond surety issued by a surety company,
Irrevocable Letter of Credit, or other form of negotiable
instrument submitted by a Bidder as evidence of their
commitment to enter into an Agreement to do the
work outlined in the Bid Solicitation;
"Bid Document" means a Request for Tender,
Request for Quotation, Request for Proposal or other
document that states the City's desire to buy or to
consider buying and Bidders/Proponents offer to sell to
the City, the Goods and/or Services defined in the
Specification and/or Scope of Work;
"Bid Irregularity" means a deviation between the
requirements of a Bid Document request and the
information provided in the Bid response;
"Bidding System" means an electronic bidding
system for the secure transmission of bidding
documents, Bid data and related documents in
connection with the procurement of Goods and/or
Services;
"Certificate of Insurance" means official original
documents issued by an insurance company acceptable
to the City and licensed to operate by the Government
of Canada or the Province of Ontario certifying that the
Bidder is insured in accordance with the City's
insurance requirements as noted in the Bid Document;
"City" means The Corporation of the City of Quinte West;
"Committee" means a committee duly appointed by Council;
"Contract" or
"Agreement"
means
a binding
agreement between two or more parties that creates
an obligation to provide a particular Goods and/or
Services;
THE CORPORATION OF THE CITY OF QUINTE WEST
SCHEDULE "A" TO BY-LAW NO. 25-012
PURCHASING POLICY
Page 5 of 50
"Council" means the Council of The Corporation of the City of
Quinte West;
"Designate" means a person provided with the
written authority to act on another person's behalf;
"Department" means any City Department;
"Department Head" means the head of any City Department;
"Electronic Bidding (Facsimile, Email or
Internet)" means a method of issuing Solicitations
and/or receiving Bids where the process of issuing
and/or receiving Bids by facsimile, email or internet is
considered appropriate;
"Evaluation Committee" means a committee of staff,
which may include the Manager of Purchasing & Risk, and/or
outside consultant(s), but at any rate a minimum of two
people, established by the Department Head, to evaluate
Submission(s) according to the evaluation criteria in the Bid
Document;
"Goods and/or Services" includes supplies, equipment,
furniture, fixtures, construction, maintenance and service
Contracts and professional and consulting services but does
not include Real Property;
"Improvements" has the meaning given to it in the
Construction Act.
"Labour and Material Bond" means a bond issued by a
surety company on the City standard Form of Bond to
ensure that the contractor will fulfill its obligations to its
employees, subcontractors and Suppliers and thereby protects
the City. Any changes to the standard Form shall require
approval of the Purchasing Supervisor;
"MFIPPA" means Municipal Freedom of Information and
Protection of Privacy Act;
"Official Documents" means the mandatory
documents required by the City from the Vendor before
execution of a Contract i.e. Certificate of Insurance,
WSIB Certificate, Health & Safety Declaration, Bonding,
etc.;
"Performance Bond" means a bond issued by a surety
company licensed to do business in the Province of Ontario
and executed in connection with a Contract and which
secures the performance and fulfillment of the undertakings,
covenants, terms, conditions and agreements contained in the
Contract. The City, at its option, may accept renewable bonds.
"Proposal" or "Submission" means an offer
submitted in response to an invitation to a Supplier
to provide Goods and/or Services, on certain terms and
conditions;
"Purchase" means the acquisition of Goods and/or Services;
THE CORPORATION OF THE CITY OF QUINTE WEST
SCHEDULE "A" TO BY-LAW NO. 25-012
PURCHASING POLICY
Page 6 of 50
"Purchase Order" or "PO" means a document issued to a
Vendor formalizing the terms and conditions to Purchase Goods
and/or Services and may be issued in conjunction with a formal
contract or as a standalone document;
"Purchasing Card (P-Card)" means a type of credit
card issued at a corporate level by an authorized
lending institution. The cards are issued in an
individual's name, but the charges incurred are the
liability of the City;
"Purchasing Services" means the Purchasing
Services Department within the City of Quinte West
Finance Department;
"Real Property" includes lands, buildings, tenements
and any interest, estate, right or easement in lands;
"Submission" means a Bid document received from a
Supplier of Goods and/or Services in response to an
advertisement requesting Bids;
"Supplier" means a person or company from whom
the City may Purchase or lease Goods and/or Services;
"Trade Agreement" means an interprovincial or
international trade agreement to which Ontario is a
party and which contains obligations related to the
procurement of goods Contracts and service and
construction Contracts.
"Total Cost" or "Total Dollar Value" means the sum
of all costs including any non-refundable taxes.
"User Department" means the Department within
the City that requires the Goods and/or Services and
for which the Department Head or their Designate is
the contact for the purposes of the procurement
process;
"Vendor" means a party that supplies Goods and/or Services
to the City.
2. PURPOSE
Whereas, it is necessary to meet the requirements of the Municipal
Act, namely Section 270 (1) wherein the City must adopt policies
with respect to its procurement of goods and services;
And whereas, it is deemed desirable to establish a policy to direct
the purchase of goods and services by the various departments
within the City;
Schedules A, B, and C herein shall be deemed to be a part of By-
Law Number 21-073
3. PRINCIPLES
Procurement is the process by which the City acquires goods,
services and construction. Effective procurement is a critical support
function for local governments as they responsibly manage public
THE CORPORATION OF THE CITY OF QUINTE WEST
SCHEDULE "A" TO BY-LAW NO. 25-012
PURCHASING POLICY
Page 7 of 50
funds. The objective of this By-law is to ensure that the City
conducts procurement processes that conform to the following
principles:
(a)
Compliance with all applicable laws, regulations, by-laws,
policies and trade treaties;
(b)
Consistency with other City by-laws, policies and procedures;
(c)
Open, fair and transparent procurement that affords equal
access to all qualified suppliers;
(d)
Reciprocal non-discrimination and geographic neutrality with
respect to Ontario's trading partners and avoidance of
preference for local suppliers where prohibited;
(e)
Achieving best value for the City for the expenditure of public
funds through consideration of the full range of procurement
formats and the adoption of commercially reasonable
business practices;
(f) Effective balance between accountability and efficiency; and
(g)
Ensuring adherence to the highest standards of ethical
conduct.
4. ROLES AND RESPONSIBILITIES
The City must ensure that the management of all Procurement
Projects is free from actual or apparent internal conflicts of interest. All
participants in the Procurement Project (including all procurement
staff, all involved members of the Department, all members of the
evaluation team) must ensure that there are no undeclared actual or
apparent internal conflicts of interest.
The roles and responsibilities of City officers and employees are as
follows:
Department Head or designate:
(a) Identifying the need or requirement to be satisfied through a
Procurement Project;
(b)
Building a Procurement Project and obtaining appropriate
approval prior to proceeding to market;
(c) Developing or identifying an approved funding source;
(d)
Researching and understanding external market conditions
and potential sources of supply;
(e) Ensuring Department compliance with all procurement policies
guidelines, applicable laws; trade agreements and
regulations; and
(f)
Supporting the promotion of compliance with this By-law and
of sound procurement practices and supporting the provision
of appropriate education and training to employees involved
in Procurement Projects.
Manager of Purchasing or designate:
(a)
Researching, developing, updating and communicating
corporate purchasing policies, procedures, guidelines and
standards;
(b)
Advising City staff on policies, regulations and legislation
affecting procurement;
(c) Providing appropriate orientation, training and tools to
employees involved in public procurement activities;
(d)
Advising on Competitive Procurement Projects;
THE CORPORATION OF THE CITY OF QUINTE WEST
SCHEDULE "A" TO BY-LAW NO. 25-012
PURCHASING POLICY
Page 8 of 50
(e)
Monitoring compliance across the organization and reporting
on performance to the Director of Finance;
(f)
Serving as the interface between the City and the supplier
community during the procurement process;
(g)
Establishing supply arrangements to maximize value for the
organization;
(h)
Reviewing the City's procurement patterns to identify areas
where efficiency could be realized through aggregate
spending;
(i)
Monitoring established internal controls for compliance to the
purchasing process; and
(j)
Disposing of surplus and obsolete materials and equipment.
Chief Administrative Officer or designate:
(a)
Approving purchases per the delegation of authority; and
(b)
Providing oversight of the purchasing process.
Treasurer/Director of Finance or designate:
(a)
Providing support and oversight of the procurement process;
(b)
Ensuring proper internal controls including segregation of
duties; and
(c)
Supporting the promotion of compliance with this By-law and
of sound procurement practices.
Accounting Department:
(a)
Processing of all payments to vendors.
City Council
(a) In accordance with best practices in municipal procurement,
Council recognizes the need for a clear separation of political
and administrative functions in relation to the City's
procurement operations. It is the role of Council to establish
policy and to approve expenditures through the City's budget
approval process. Elected officials within the City must not
have any direct or indirect involvement in any Procurement
Project or decision outside of the required approvals set out
in this By-law.
(b)
Approval of deviation from policy when appropriate.
5. PROHIBITED ACTIONS
(a) Divisions of a Contract and/or Purchase Order - No
employee of the City shall divide a Purchase,
Contract or PO Amendment or change order to avoid
the requirements of the Tender, Proposal, Quotation
or a Low Value Purchase as noted herein. Nor shall
the Purchases be split in order to circumvent
prescribed spending authority dollar limits as outlined
in this policy.
(b)
Creating a Purchase Order after the goods, service or
construction has been received.
(c)
Submitting an invoice to accounts payable without a
Purchase Order number (excluding Purchasing Policy
THE CORPORATION OF THE CITY OF QUINTE WEST
SCHEDULE "A" TO BY-LAW NO. 25-012
PURCHASING POLICY
Page 9 of 50
Exemptions).
(d) Hiring a Supplier to do work for the City regardless of
the value, without first obtaining a valid Certificate of
Insurance, a signed Health & Safety Declaration and
WSIB Certificate of clearance where applicable.
Periodic reviews to ensure compliance will be
performed and all compliance issues will be reported
to the Director of Finance.
6.
ENFORCEMENT
Employees shall comply with all policies and procedures
contained in this bylaw and shall not deliberately violate
the policy.
Employee actions that violate the core principles of the
Purchasing Policy or an employee's continued non-
compliance with prescribed processes will be escalated
to the Director of Finance for further action and may be
subject to disciplinary action up to and including
termination at the discretion of management.
7.
REQUIREMENTS
7.1 Prior to the approval of the current budget, a department may
incur normal operating expenditures.
7.2
Council
approved
Departmental
budget
appropriations
for
expenditures shall be sufficient authorization for a Department to
proceed with the purchase of supplies and materials or with
work, subject to those limitations as established herein. Budget
allocation numbers are inclusive of any applicable taxes.
7.3 All purchasing will be conducted by the Department Head or
their designate for items as described in "Schedule A", Section 8
as applicable. Purchases as described in "Schedule A", Section
8.7, shall be made in cooperation with the Mgr. of Purchasing &
Risk Management.
7.4 No purchases shall be made for personal items for members of
Council, appointed officers or employees of the City except when
authorized by City Council or to be reimbursed in full.
7.5
No purchases shall be made which are covered by the Municipal
Conflict of Interest Act, without compliance with that Act.
7.6 No employee of the City of Quinte West shall have a direct or
indirect interest in a company, or own a company, which sells
goods or services to the City of Quinte West unless specifically
authorized by Council to do so.
7.7 Members of Council or of a Committee, appointed officers and
employees of the City are expressly prohibited from accepting,
directly or indirectly, from any person, company or corporation
to which any purchase order or contract is, or might be awarded,
any rebate, gift, money or anything of value whatsoever, except
where given for the sole use and benefit of the City.
THE CORPORATION OF THE CITY OF QUINTE WEST
SCHEDULE "A" TO BY-LAW NO. 25-012
PURCHASING POLICY
Page 10 of 50
8.
AUTHORITY AND DOLLAR THRESHOLDS
8.1 For the purpose of the relationship of price to the pre-authorized
expenditure limit, total cost means the sum of all costs (sales
taxes, excise taxes, goods and services taxes and duties)
including any non-refundable taxes.
8.2 In the case of a multi-year supply and/or service contract, the
pre-authorized expenditure limit shall refer to the estimated
expenditure over the life of the contract. (includes any optional
extensions)
8.3 Purchases may be made for items of low value by Department
Head or their designate by way of a Corporate credit card (P-card)
or petty cash where available. Use of in store charge accounts is
discouraged and will be questioned. Management will ensure that
those persons delegated purchasing authority are provided the
tools to fulfill that role in accordance with the city's policy.
8.4 For purchases up to $10,000.00
- Those delegated spending authority will ensure that the best
value for the spend is obtained.
- Comparison pricing should be obtained when practical.
8.5 For purchases between $10,001. and $40,000.
- Three (3) informal quotes shall be obtained if possible, either
telephone or written. Notation of quotations received or
explanation of why not will be included with the Invoice
Payment Package.
8.6 For purchases between $40,001. - $100,000.
- Three written quotes are required following an informal or formal
invitational quote process. Department staff will provide the
scope of the project and list of suppliers to the Purchasing
Department. Purchasing Department staff will coordinate the
request for quotations and or in consultation with the
Department determine if an open competition may be in the
best interest of the City.
- Care shall be taken to ensure that each vendor is given exactly
the same information. This may be accomplished by using a
form created specifically for that purpose outlining specifications
and requirements. These forms are project specific and will be
drafted by the user department.
- The supplier, who in the opinion of the Dept. Head or their
designate and the Manager of Purchasing or their designate,
offers the best overall product or service will be selected.
- A copy of all written quotations obtained must accompany the
Invoice Payment Package. Failure to do so will result in delay
of payment until proper documentation is provided by the
department or it is no longer reasonable to hold the payment in
fairness to the supplier. Such activities will be reported to the
Director of said department and further recorded to form part
of the quarterly purchasing report to committee.
- If obtaining three (3) quotes was not possible for any reason, a
written explanation shall accompany the Invoice Payment
Package.
- If a vendor other than the lowest price is selected, a written
explanation will be provided.
THE CORPORATION OF THE CITY OF QUINTE WEST
SCHEDULE "A" TO BY-LAW NO. 25-012
PURCHASING POLICY
Page 11 of 50
8.7 For purchases in excess of $100,000.
- A formal competitive bid process shall be used, unless
considered a single or sole source procurement (refer to
definitions Sch. A 13.2 and 13.3) and the process for approval
of same has been successfully completed.
- Competitive bids may be issued in conjunction with pre
qualification.
- In all cases, sealed bids shall be obtained using one of the
processes described in
"Schedule B"
under "Calling
of
Competitive Bids" or when appropriate, an alternate method
generally accepted in public procurement. Any deviation must
be approved by the Manager
of Purchasing and Risk
Management or their designate.
9.
PURCHASING UNDER EXISTING SUPPLY ARRANGEMENTS
9.1 When a pre-qualified supplier roster has been established for the
provision of goods or services through a formal competitive
process (i.e. Heavy Equipment with Operator), a separate
additional formal process is not required provided that the total
cumulative amount of each project does not exceed $100,000.
(tax excluded)
9.2 a. Notwithstanding the provisions of Section 5 & 6 hereof, where
an emergency occurs that in the opinion of the Department Head
or their designate constitutes immediate danger to health, safety,
life or property, and requires the immediate procurement of goods
and services, the Dept. Head or their designate may purchase
such goods or services by open market procedure regardless of
the amount of expenditure. While the objective generally is to
obtain the lowest price, having regard for such things as local
servicing, experience, availability, particular expertise, etc., and
those other factors that are set out elsewhere in this Bylaw and
schedules, there may be a possibility that the price obtained may
not be the lowest where the Dept. Head or their designate, or the
Council, as the case may be, have determined is appropriate and
justifiable. Where provisions herein would under normal
circumstances require written quotes or competitive bids, a full
written report regarding the emergency purchase is to be
submitted to the City's Chief Administrative Officer and a copy
shall be attached to the Purchase Order.
b. Clarification: The "emergency" exclusion is not to be used as
justification for avoiding a competitive bidding process where a
department has run out of time to effectively follow protocol
unless failure to complete the project constitutes immediate
danger to health, safety, life or property or is identified by
Council.
10.
EXEMPTIONS TO REQUIREMENT TO SOLICIT BIDS
The purpose of this section is to set out the specific items under
which a bid solicitation process is not required:
Training and Education
a) Conferences
b) Courses
c) Conventions
THE CORPORATION OF THE CITY OF QUINTE WEST
SCHEDULE "A" TO BY-LAW NO. 25-012
PURCHASING POLICY
Page 12 of 50
d) Magazines
e) Periodicals
f) Memberships
g) Seminars
h) Subscriptions to newspapers, magazines or other
periodicals
Refundable Employee
a) Advances
b) Meal Allowances
c) Miscellaneous - Non-travel
d) Travel Expenses
e) Travel Allowances
Employer's General Expenses
a) Payroll deduction remittance
b) Workers Safety Insurance Board
c) Medical
d) Licenses (vehicles etc.)
e) Debt payments
f) Grants to agencies
g) Damage claims
h) Legal settlements
i) Arbitration awards
j) Tax remittances
k) Charges to and from other government bodies or
government mandated or regulatory bodies
Professional and Special Services
a) Committee fees
b) Honorariums
c) Medical professional services
d) Temporary help
e) Rail crossing maintenance provided by CN or CP
f) Purchases from other levels of Government
g) Co-operative purchasing/VOR arrangements where the
City is purchasing together with other municipalities or
other public authorities or governmental agencies
h) Purchase of real property
i) Financial assistance
j) Services provided by licensed lawyers, notaries or
forensic auditors.
k) Insurance services including insurance premiums,
insurance adjusters
l) Any additional exceptions, expressly permitted in any
applicable Trade Agreement, as amended
m) Recurring maintenance contracts/agreements
n) Goods purchased on a commodity market
o) Works of Art
Utilities
a) Postage
b) Water, wastewater
c) Hydro
d) Gas
e) Telephone
f) Cable television
g) Internet services
h) Alarm monitoring
i) After hours call monitoring
THE CORPORATION OF THE CITY OF QUINTE WEST
SCHEDULE "A" TO BY-LAW NO. 25-012
PURCHASING POLICY
Page 13 of 50
11.
PURCHASE ORDERS
11.1 Goods or services paid using the Corporate Purchasing
Card do not require a purchase order. All supporting
documentation will be attached to the US Bank Canada
card statement and submitted monthly for payment.
11.2 A purchase order MUST be issued for all procurement
transactions unless otherwise stipulated herein and forms
part of the Invoice Payment Package.
11.3 A Blanket Purchase Order, is an agreement between the
City and a supplier under which the supplier will sell
certain "like" small dollar value item(s) to the City. In
keeping with the requirements of section 8.5, any one
purchase order shall not exceed $75,000.
11.4 A Contract Purchase Order, an agreement between the
City and a supplier under which a supplier will sell only
item(s) actually specified with estimated or actual
quantities at specified prices for a specific time period,
may be used by all Departments.
11.5
Notwithstanding
the
requirements for
purchasing
in
accordance with the provisions contained herein, those
goods and services as described in Sch. "A", Item 10 do
not require the issuance of a purchase order.
11.6 When engagement is a result of award of a formal RFx
process that results in execution of a formal contract kept
on file.
12. ACCOUNTING
12.1
Payment of all purchases with a dollar value less than
$10,000. will be processed in order of the following
preference:
a) City Purchasing Card - This eliminates the need for a
purchase order and reduces processing time. Where
P-cards are not accepted;
b) Issue a purchase order and payment is made by
invoice/cheque/EFT;
c) Petty cash where available.
12.2 Buyers must ensure that vendors are provided with a valid
purchase order number and that the purchase order
number is referenced on all related documentation.
All work orders and/or packing slips must reference the
purchase order number. The receiver of the goods or
services will indicate by way of their signature or initials on
supporting documentation that the goods or services have
been satisfactorily received.
All invoices will be delivered to the Mgr. of Purchasing or
their designate for daily distribution to user departments.
12.3 Each department will appoint the appropriate staff to
coordinate the preparation of the "Invoice Payment
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Package" for all purchases made at the departmental level.
Complete Invoice Payment Packages will be forwarded
without delay to the Manager of Purchasing or their
designate for processing through accounts payable.
The "Invoice Payment Package" must include:
- Unless exempt, a fully completed purchase order
whose number matches that shown on the supplier
invoice;
- The bill of lading or appropriate confirmation that the
goods and/or services have been satisfactorily
received and in accordance with the agreement of
any terms and conditions of the purchase. The
employee who received the goods or services must
sign and date; and
- For purchases between $10,000. and $75,000. (tax
included), a copy of each of the three (3) written
quotes obtained as evidence of compliance to the
purchasing policy.
12.4 Failure to provide ALL required documentation with each
invoice submitted for payment will result in the return of
same to the user department to facilitate completion of
package deficiencies.
12.5 Calls from suppliers regarding late payment of invoices
may be forwarded to the departmental coordinator for
follow up.
13. 13. NON STANDARD PURCHASES
13.1 When a Department Head or their designate intends to
select a supplier to provide goods, services or construction
pursuant to this section, the process to be followed is
dictated by the amount of the spend. In all cases, the
report (either staff report to committee or single/sole
source form) will include the compelling rationale that
warrants a non-competitive selection. Valid exemptions
are as provided herein (Sch. "A" - Section 13.2 and 13.3)
Approval to initiate a single or sole source procurement
must be given PRIOR TO deviation from this policy. In
the event that Council and/or committee are at recess the
Chief Administrative Officer is authorized to act on their
behalf.
In the event that a project has direct relevance to a
previous project, it must be determined if the previous
supplier has a clear advantage in bidding on the next
phase. The department head in consultation with the Mgr.
of Purchasing & Risk Management may declare that a
formal competition is not appropriate, and they would
proceed under the terms of a "single" source project
providing appropriate backup material.
Thresholds:
- $10,000. - $40,000. - requires completion of a single/sole
source form (Appendix A) signed by the Director of the
user department must accompany the invoice when
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submitted to finance for payment.
- $40,001.
-
$100,000.
-
requires
completion
of
a
single/sole source form (Appendix A) signed by the
Director of the user department and the CAO. The form
must accompany the invoice when submitted to finance for
payment.
- $100,001+ - requires Council approval. A detailed staff
report is to be prepared utilizing the City's standard Staff
Report template for single/sole purchases. Prior to
presentation to Council, a copy of the report must be
provided to the Manager of Purchasing & Risk or their
designate for circulation, comment and acknowledgement
within the Finance Dept. If the application to single/sole
source is successful, a copy of the Council minutes where
the Report was approved must be included in the Invoice
Payment Package when submitted for payment.
13.2 SINGLE Sourcing - The procurement of a good or service
from a particular vendor rather than through the
solicitation of bids from other vendors who can provide the
same or equivalent item.
Purchases may be made from a Single source without
quotation or competitive process where:
a)
Due to market conditions goods are in short supply.
Evidence of failed attempts at sourcing must be
provided.
b)
The compatibility of a purchase with existing
equipment, facilities or services is of paramount
consideration and that purchase must be made from
a Single source.
c)
An item or service is purchased for testing or trial
use.
d)
The City purchases supplies for resale.
e)
A product is leased or rented by the City with or
without a credit purchase option, and such purchase
option would be beneficial to the City.
f)
The consideration for a purchase is to be paid by a
third party and that third party agrees to or
designates the contractor.
g)
A situation creates immediate and serious need,
which may not be reasonably met by any other
procedure.
h)
Lack of supplies or services may adversely affect the
functioning of the City, threaten public or private
property or the environment, or jeopardize the
health or safety of the public.
i)
It is necessary to arrange interim contractual
arrangements following the expiration or breach of a
contract, or the receipt of unacceptable or non-
competitive bids.
j)
When no bids are received in a competitive process
and timelines or circumstance are not conducive to
review and reissue of the bid document.
k)
The extension of an existing Contract would prove
more cost effective or beneficial. The existing
contract must be identified.
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l)
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 cannot
be made for economic or technical reasons such as
requirements of interchangeability or inoperability
with existing equipment, software, services or
installations procured under the initial procurement
and would cause significant inconvenience or
substantial duplication of costs for the city.
m)
Software (annual renewal) may be authorized
by the
department
director
without
a
formal
procedure if the annual increase on renewed items
is less than 5% from the previous year. All
Software licences must be reviewed every five (5)
years with a report to Committee to justify a
change or continue with the current vendor.
13.3 SOLE Sourcing - The procurement of a good or service
that is unique to a particular vendor and cannot be
obtained from another source.
Purchases may be made from a Sole source without
quotation or competitive process where:
a) There is only one source of supply for the goods or
service. Supporting documentation from the
manufacture to indicate that a particular item cannot be
obtained from any other source must be provided by
the user department and accompany the Invoice
Payment Package when submitted to finance.
b) When the required item is covered by an exclusive right
such as a patent, copyright or exclusion license
c) Where supplies are offered for sale by tender, auction
or negotiation, such purchase shall be deemed to be a
sole source purchase.
13.4
All non-standard procurement will be reported to the
Corporate Finance Committee on a quarterly basis.
14. CO-OPERATIVE PURCHASING
14.1 The Corporation may participate with other government
agencies or public authorities, or Co-operative Purchasing
groups where it is in the best interest of the Corporation to
do so. In this event, the purchasing policy & procedures of
the lead agency shall prevail provided that those policies
and procedures are consistent with the City's obligations
under applicable trade agreements and the principles set
out in this By-law...
14.2 The decision to participate in co-operative purchasing
agreements will be made jointly by the Manager of
Purchasing or their designate and the responsible
operating Department.
15. BRAND NAMES
15.1 Any manufacturer's names, trade names, brand names or
catalogue numbers mentioned are for the purpose of
establishing and describing general performance and
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quality levels, unless specified otherwise. Such references
are not intended to be restrictive and bids are invited on
approved
generic
no-name
equals
and
comparable
equipment of any manufacturer. However, if a product
other than the one specified is bid, it is the bidder's
responsibility to name such product and prove to the City
that said product is equal to the specifications, and to
submit brochures, samples and or specifications in detail
on the item(s) bid upon request. The City shall be the sole
judge concerning the merits of bids submitted.
16. ACCESSIBILITY FOR ONTARIANS WITH DISABILITIES
ACT, 2005
16.1 In acquiring goods and services for the municipality,
municipal staff
shall
consider and
have
regard to
accessibility issues as they may reasonably pertain to such
acquisitions of goods and services and shall comply with
the requirements of the City's Municipal Accessibility Plan.
All new and renovated Cities owned facilities shall be
designed to meet or exceed the legislation concerning
people with disabilities.
16.2 If it is deemed not practicable to incorporate accessibility
design, criteria and features when procuring or acquiring
goods, services or facilities, a written report detailing the
reason for the exception will be kept on file and provided
to legislative authorities if requested to do so. (O. Reg.
19/11, s 5(2); O. Reg. 413/12, s 4 (2)
16.3 Contracts for the acquisition of goods and services shall
include the following elements:
a) That the Vendor shall comply with the Accessibility
Standards for Customer Service, O. Reg. 429-7
(appendix A) ("Regulation"), under The Accessibility
of Ontarians with Disabilities Act, 2005 (AODA);
b) That the Vendor shall ensure that its employees are
trained on providing accessible customer services.
Any training or training resources must conform to
the legislated requirements under the Act; and
c) That the Vendor shall maintain records of the
training, including dates when training was provided,
the number of employees who received the training
and individual training records. Where requested by
the City, the person, business or organization shall
provide written proof, as well as any documentation
regarding training policies, practices and procedures
to the City.
17. ACCESSIBLE DOCUMENTS/COMMUNICATION
17.1 Any Studies, Reports and/or Plans that result from this
project must be created and provided to the City in an
accessible format. Documents created, adapted or
otherwise presented on behalf of the City or to City
employees will be made available in accessible formats as
required in the AODA and O.Reg. 191/11, for the lifespan
of the document.
17.2 Unless determined by the City to not be practicable,
contractor's/service providers shall ensure that any
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information, products, deliverables and/or communication
(as defined in the Integrated Regulation) produced
pursuant to a Contract shall be in conformity with Word
Wide Web Consortium Web Content Accessibility Guidelines
(WCAG) 2.0 Level AA and shall be provided in accessible
Word, Excel, PowerPoint, PDF etc.
18.
ENVIRONMENTAL STEWARDSHIP
Procurement documents will consider the city's goals with regard
to environmental considerations as described in the Strategic
Plan adopted by Council, and will evolve as strategic direction,
delivery and action plans are further developed.
19.
IN HOUSE BIDS
19.1 In House Bidding is a process that allows for the comparison of
costs of having City staff completes a task versus having an
outside source provide that same service. In general, when a
competitive bid is called, the intention is to outsource the work.
The City reserves the right however to consider completion of
the work utilizing City staff when competitive bids are all over
budget, or when specifically stated in the competitive bid
document.
20. DISPOSAL OF SURPLUS ITEMS
20.1 The Purchasing Manager shall coordinate the disposal of all surplus
goods. Items deemed surplus to the City shall be disposed of by
first offering them to other Departments and if not required by any
City Department, it shall be disposed of in the most suitable
manner that will take into consideration the type of material being
disposed of and the cost-benefit to the City. Where the surplus
goods are deemed to be of significant value, such as the case with
vehicles, they shall be disposed of by means of Public Auction.
Net proceeds from the disposal of surplus assets shall be
transferred to the appropriate user dept. account
No surplus assets shall be sold directly to an Employee,
although this does not prohibit any Employee from purchasing
City surplus assets being sold through a public auction or
publically advertised bid process.
21.
REVIEW OF BYLAW
21.1 This Bylaw will be reviewed on a periodic basis to evaluate the
effectiveness of policy and procedure. It is anticipated that
reviews will be conducted every five years or more frequently if
required.
Page 19 of 50
THE CORPORATION OF THE CITY OF QUINTE WEST
SCHEDULE "B" TO BY-LAW NO. 25-012
PURCHASING PROCEDURES/PROCESSES
SCHEDULE "B"
PROCEDURES/PROCESSES
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SCHEDULE "B" TO BY-LAW NO. 25-012
PURCHASING PROCEDURES/PROCESSES
Page 21 of 50
1.
CALLING OF COMPETITIVE BIDS
1.1 The calling of competitive bids shall be the responsibility of
the Mgr. of Purchasing & Risk Management or their
designate in response to a request from a Dept. Head or
their designate.
1.2 In an effort to facilitate a thorough understanding of the
nature of the project, the Mgr. of Purchasing & Risk
Management will be advised in advance of any meeting
wherein the scope of the project and the means of
evaluation will be discussed and/or determined.
1.3 The Mgr. of Purchasing & Risk Management will be given a
minimum of two weeks or ten working days, once
specifications have been provided, to prepare the document
for release. In the event that a two week turnaround is not
possible due to workload or unforeseen circumstances,
notification will be given to the Director of Finance and the
user department as soon as that becomes apparent.
1.4 There should be a minimum of fifteen (15) calendar days
between the first day of advertising and the closing date.
Placement of advertisements will be the responsibility of
the Mgr. of Purchasing & Risk Management or their
designate. The first day that the project is posted to the
City's website will be considered day one of the required 15
day notification period
1.5 The Mgr. of Purchasing & Risk Management or their
delegate will be responsible for the distribution of all bid
documents, including those prepared by outside sources.
1.6 A comprehensive numbering and tracking system will be
maintained by the Mgr. of Purchasing & Risk Management
or their designate for all competitive bids issued by the
City.
1.7 When feasible, all bid information will be accessed through
the city's electronic bidding platform.
2.
PREPARATION OF BID DOCUMENTS
2.1 Those preparing specifications must be aware of the
conflict of interest created when a consulting organization
is involved in the development of the competitive
documents and also has the ability to fulfill the
procurement needs that are being contemplated in those
competitive documents.
"Restricted Parties" include any person who would be
defined to be in a conflict of interest under the provisions
of the Municipal Act or any other applicable legislation or
under the City's Conflict of Interest Policy and any parties
who have had direct, recent or current involvement in any
selection process in respect of the purchase in question.
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Restricted Parties are not eligible to participate as an
employee or advisor, consultant, investor, member or in
any other capacity with any proponent under any proposed
purchase with the City. The City may, in its sole and
absolute discretion, disqualify any potential purchaser who
uses a Restricted Party as part of any potential purchase.
2.2 Bid documents prepared in house shall be prepared by the
Mgr. of Purchasing & Risk Management or their designate
in conjunction with project specific information supplied by
the Department Head or their designate. All competitive
bid packages must be approved by both the Mgr. of
Purchasing & Risk Management or their designate and the
Dept. Head or their designate prior to release to the public.
2.3 All bid documents will clearly define any pre-qualification
system if used and any evaluation or scoring system to be
used.
2.4
Bid
documents
prepared
by
outside
sources,
i.e.
Consultants, must be reviewed by the Mgr. of Purchasing &
Risk Management or their designate for compliance with
the City's Policies and Procedures, before release to the
public. The Mgr. of Purchasing & Risk Management or
their designate will be responsible for document
distribution of all bid documents.
2.5 Appropriate levels of Insurance coverage for each project
will be determined on an individual basis.
2.6 When feasible, all bid documents will be posted on the
City's bidding system website. In the event of any
disputes regarding wording differences in the signed
contract and the originally issued bid document on file in
Purchasing, the originally issued bid document will prevail.
2.7 Suppliers, potential suppliers and consulting firms shall not
be requested to expend time, money or effort to design or
in developing specifications or otherwise help define a
requirement beyond the normal level of service expected.
Should such extraordinary services be required, the Mgr.
of Purchasing & Risk Management will be advised. If there
is no alternative but to request such services, the company
providing same, shall be compensated at a predetermined
fee. The resulting specifications shall become the property
of the Corporation for use in obtaining competitive bids.
Suppliers or Consultants who provide Design services
and/or specifications for work to be tendered or quoted
shall not be permitted to submit a bid for said work unless
it is agreed between the department and purchasing that
the process if fair, open and transparent and the provider
is not at an advantage over other potential bidders.
3.
HEALTH AND SAFETY
3.1 Prior to release of a bid document, all health and safety
considerations shall be addressed.
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3.2 Contractors providing goods and services to the City of Quinte
West must comply with and be held accountable for meeting
the requirements of the Occupational Health and Safety Act
3.3 The City's Health & Safety Policy requirements, as provided
by the City Health and Safety and Employee Services Officer,
will be included as part of each bid package for construction
services.
4.
GOVERNMENTAL REQUIREMENTS
Respondent's shall obey all Federal, Provincial, and Municipal
Laws, Legislation, Acts, Ordinances, Regulations, Orders in
Council and By-Laws, which could in any way pertain to the
work outlined in the Contract or the Employees of the Bidder.
If the Contractor shall discover any provisions in the drawings,
specifications or contract that are contrary to or inconsistent
with any law, rule or regulation, they shall at once report it to
the City's Representative, in writing
5.
FREEDOM OF INFORMATION
5.1 Release of information contained within an RFx response will
be subject to the Municipal Freedom of Information and
Protection of Privacy Act. Extracts of documents submitted
and the costs of their solutions may be used as part of a public
document for reporting purposes. Respondents must indicate
in their submission which, if any, parts of their response are
exempt from disclosure due to proprietary information.
5.2 Requests for information other than standard public
information (i.e., names of those submitting RFx, total
amount of bid not individual line costs) must be dated and
submitted in writing to the Purchasing Supervisor, after which
time the municipality has thirty days to respond.
6.
ADDENDA
6.1 Addendum/Addenda, if required, will be issued by Purchasing
Services and shall form part of the Bid Document.
Respondents shall acknowledge receipt of any addenda when
submitting their.
7.
SUBMITTING A RESPONSE TO A BID OPPORTUNITY
7.1 All bids will be issued from and received back at the Municipal
Office located at 7 Creswell Drive, Trenton Ward of the City of
Quinte West utilizing digital based system with paper based
method as a backup.
7.2 Unless otherwise stated, all Respondent's shall have a
Bidding System Vendor account and be registered as a Plan
Taker. This will enable the Bidder to download the clean
copy of the Bid Call Document, receive project specific
notifications such as addendum and to submit their bid
electronically through the Bidding System. In addition, it
facilitates a full digital report at closing.
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7.3 Late submissions will not be accepted by the Bidding System
or otherwise.
7.4 The City reserves the right, in case of problems with the
electronic bidding system, to change, at any time, to a
paper-based bidding system with respect to part or all of this
process.
7.5 RFx opening shall take place as soon as practical after the
closing time. RFxs received in the Bidding system are
unofficial until they have been reviewed by the City for
compliance.
7.6 The Corporation of the City of Quinte West reserves the right
to accept or reject all or part of any Bid (if the Bid Document
states that Part Bids will be accepted by the City), the right
to accept other than the lowest Bid, and the right to cancel
this Bid Call at any time without obligation
8.
WITHDRAWAL PROCEDURE
Respondent's may edit or withdraw their Bid Submission prior to
the closing time and date. However the Bidder is solely responsible
to:
i)
make any required adjustments to their Bid; and
ii)
acknowledge the addendum/addenda; and
iii)
Ensure the re-submitted Bid is RECEIVED by the Bidding
System no later than the closing date and time
9.
TYPES OF FORMAL PROCESSES
9.1 Request for Proposal (RFP) - the goal of which is to
implement an effective, objective, fair, open, transparent,
accountable and efficient process for obtaining unique
proposals designed to meet broad outcomes to a complex
problem or need for which there is no clear or single solution.
Award is based on the proposal that earns the highest score
and meets the requirements specified in the competition
based on qualitative, technical and pricing considerations.
Evaluation criteria will be identified in the bid document.
A Two-Envelope Approach may be utilized with RFP's for fair,
unbiased evaluation.
In the two envelope approach,
qualitative and technical information is evaluated first and
pricing information in a separate envelope is evaluated
thereafter, only if the qualitative and technical information
meet a minimum score requirement that is determined prior
to the release of bid documents.
9.2 Request for Tender - the goal of which is to implement an
effective, objective, fair, open, transparent, accountable and
efficient process for obtaining competitive bids based on
precisely defined requirements for which a clear or single
solution exists. Award is based on the lowest qualified bid
that meets the requirements specified in the bid documents.
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9.3 Request for Expression of Interest - a focused market
research tool used to determine vendor interest in a proposed
procurement. It may be issued simultaneously with a
Request for Qualifications when the proposed procurement is
well defined and the purchaser has clear expectations for the
procurement.
9.4 Request for Information - is used prior to issuing a
competitive document as a general market research tool to
determine what products and services are available, scope
out business requirements, and/or estimate project costs.
9.5 Request for Pre-qualification
- Request for Pre-qualification is a procurement process
used to pre-qualify vendors for subsequent participation
in the competitive bid process or in some cases to
establish a Call Out Roster. Responses from proponents
are evaluated against selection criteria, both qualitative
and technical, set out in the solicitation, and a list of pre-
qualified proponents is generated. The information
collected in this process may be used to "short list"
potential bidders for supplying goods or services where
the timeframe is tight or in the best judgment of the
Dept. Head or their designate and the Mgr. of Purchasing
& Risk Management or their designate deems it in the
best interest of the City to do so. The information
collected will be kept on file by the Mgr. of Purchasing &
Risk Management.
- When used as a tool to prequalify bidders for further
participation in a subsequent formal bid opportunity, the
Dept. Head or their designate has delegated authority to
select a minimum of three (3) vendors from this list for
invitation in a competitive bid process. When in the
opinion of the Dept. Head or their designate there are less
than three qualified vendors, a report will be written
detailing the circumstances of that decision and less than
three (3) vendors may be contacted with the approval of
Council. Vendors not participating in the pre-qualification
process will be ineligible to compete for contracts to
supply goods or services where a prequalification has
been performed.
- When used as a tool to establish a Call Out Roster, those
Respondents who are fully compliant with the
requirements of the RFPQ will be added to the call out list.
- Selection and evaluation criteria, both qualitative and
technical, will be used in determining which of the pre-
qualified components is actually awarded any contract or
proposal, notwithstanding pre-qualification.
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10. GUARANTEES OF CONTRACT EXECUTION AND
PERFORMANCE
10.1 The Department Head or their Designate and
Manager of Purchasing may require that a Bid be
accompanied by a Bid Deposit to guarantee entry into
a Contract.
10.2 In addition to the requirement of "Official
Documents", the successful Bidder may be required
to provide:
(i)
a Performance Bond to guarantee the faithful
performance of the Contract,
(ii)
a Labour and Material Bond to guarantee the
payment for labour and materials to be
supplied in connection with the contract
(iii) and/or an Irrevocable Letter of Credit.
(iv) All construction projects as defined by the
Construction
Act,
as
amended,
require
mandatory Surety Bonds as prescribed in the
regulation.
10.3 The Dept. Head or their designate and the Mgr. of
Purchasing & Risk Management shall select the
appropriate means to guarantee execution of 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.
11.
PARTICIPATION IN THE COMPETITIVE PROCESS
11.1 The integrity of the process is of the utmost importance.
11.2 Inquiries and/or clarifications will be accepted ONLY in
writing through the Mgr. of Purchasing & Risk Management
or their designate within the timelines as identified in the bid
document.
11.3 Responses will be provided in writing through the Mgr. of
Purchasing & Risk Management.
11.4 No verbal interpretation will be effective to modify any
component of the tender or any contract.
12.
LOBBYING
In order to ensure fairness to all Respondents, the City endeavors
to prevent unfair advantage created by lobbying. Therefore, the
City reserves the right to reject the RFx submission, at its sole
discretion, any Respondent engaging in lobbying in connection with
a competitive bidding process between a date that is no later than
the date of issue of the RFx and the date of signing of a contract
between the City and the Successful Respondent.
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Lobbying may include any activity that the City, in its sole
discretion, determines has or may give an unfair advantage to one
Respondent relative to other Respondents. Without limiting the
foregoing, lobbying may include:
a) Verbal or written communication with or to any City staff other
than those identified as contacts in this document.
b) Verbal or written communication with or to any City Council
member or the members of Council of its member municipalities.
c) Verbal or written communication with or to the Member of
Parliament, Members of Provincial Parliament or any related
government ministries.
d) Verbal or written communication with or to any staff of the
Premier's Office, Cabinet Office or any other member of Cabinet
or equivalent federal counterpart.
e) Direct or indirect requests by the Respondent to any person,
organization or group to provide a written or verbal expression
of support not required by this competitive bidding process to
any member of City staff or Council.
f) Verbal or written communication with or to media organizations.
g) Direct or indirect offers of gifts of any kind or value to any City
representative or personnel.
13.
EXCLUSION OF BIDDERS IN LITIGATION
13.1 The City may, in its absolute discretion, reject a Tender or
Proposal submitted by the bidder if the bidder, or any officer
or director of the bidder is or has been engaged, either
directly or indirectly through another corporation, in a legal
action against the City, its elected or appointed officers and
employees in relation to:
I.
any other contract or services; or
Ii
any matter arising from the City's exercising of its
powers, duties, or functions.
13.2 In determining whether or not to reject a quotation, tender
or proposal under this clause, the City will consider whether
the litigation is likely to affect the bidder's ability to work
with the City, its consultants and representatives, and
whether the City's' experience with the bidder indicates that
the City is likely to incur increased staff and legal costs in the
administration of the contract if it is awarded to the bidder.
14.
EXCLUSION OF BIDDERS DUE TO PAST POOR
PERFORMANCE
14.1 The Dept. Head or their designate shall monitor the
performance of all procurement Contracts and shall ensure
that where the performance of a supplier has been
unsatisfactory
in
terms
of
failure
to
meet
Contract
specifications, terms and conditions or for Health and Safety,
environmental or other violations, details of each event are
clearly documented with dates and times. A copy of such
documentation will be provided to the Manager of Purchasing
& Risk Management.
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14.2 Where it is found that a supplier has performed poorly or
below Contract requirements, the user department Director
in consultation with
the
Mgr. of Purchasing &
Risk
Management shall make a recommendation to Council about
ways to deal with such performance.
14.3 Past experience, including poor past performance may be a
factor in awarding contracts. The City reserves the right to
disqualify parties whose past performance was
unsatisfactory.
15.
SUB-CONTRACTING
15.1 The selected Respondent, who has signed a Contract with
the Corporation, shall be considered to be the Prime
Contractor and shall keep the operation totally under their
control and shall not assign, transfer or Sub-Contract any
portion without the written approval of the Corporation and
only under exceptional circumstances shall the Corporation
approve the assigning, transfer or Sub-Contracting of more
than 49% of the Total RFx amount. The consent of the
Corporation for such assignment or Sub-Contracting shall
not relieve the Prime Contractor from completion of the
project in accordance with the terms of the Contract.
Where a Respondent submits a joint RFx or proposes a
partnership arrangement, the Respondent must assume
the lead or Prime Contractor position. As such, the
Respondent
will
have
the
overall
responsibility
for
completing the project as proposed.
15.2 The City reserves the right to reject a Sub Contractor for
reasonable cause as determined at the city's sole
discretion. Upon such rejection, the Bidder shall be
required to propose an alternate Sub Contractor without
resulting change to the Bid.
16.
BID OPENING
16.1 Utilizing the city's bidding platform, results of the opening
will be made publicly available as soon as feasible following
the closing.
17.
ONLY ONE BID RECEIVED OR NO BIDS RECEIVED
17.1 In the event that only one bid is received in response to a
competitive bid, the Mgr. of Purchasing & Risk Management
or their designate along with the Dept. Head or their
designate will determine whether or not to proceed with the
opening. If in their opinion, using criteria based on the
number of bids which might reasonably be expected on a
given type of project, additional bids could be secured, the
bid may be returned unopened and the bidder advised that
the City may be recalling the tender at a later date.
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17.2 In the event that only one bid is received in response to a
competitive bid call, and the Mgr. of Purchasing & Risk
Management or their designate along with the Dept. Head or
their designate proceed with the opening and the bid is found
to be unacceptable, it will be rejected and the process as
described in 14.3 will be initiated.
17.3 If there are no responses to an RFx:
- Where no bids are received in response to an RFx made in
accordance with standard competitive bid procedures, the
Department Head in cooperation with the Manager of Purchasing
& Risk Management will take action in an attempt to determine
why. This may include reaching out to non-responsive plan
takers.
- A review of the scope of work will be undertaken by the user
department to determine the best manner in which to proceed.
If after this review no significant changes are identified, and time
permits, the RFx will be re-advertised and put to the
marketplace again. Where there are issues with timing or other
circumstances where sole sourcing is the optimum manner in
which to proceed, the project may continue utilizing the
procedure for a Single Source.
18.
NO ACCEPTABLE BID OR EQUAL BIDS RECEIVED
18.1 Where bids are received in response to a bid solicitation but
exceed project budget, are not responsive to the
requirement, or do not represent fair market value, a revised
solicitation may be issued in an effort to obtain an acceptable
bid.
18.2 The Dept. Head or their designate and the Mgr. of Purchasing
& Risk Management jointly may waive the need for a revised
bid solicitation and enter into negotiations with the lowest
responsive bidder, or the highest responsive bidder for a
revenue-driven
bid
selection
emanating
from
a
bid
solicitation, under the following circumstances:
i.
The total cost of the lowest responsive bid is in
excess of the funds appropriated by City Council for the
project or the highest responsive bid revenue is less than
approved in departmental estimates where reserved bid
amounts exist and,
ii.
The Dept. Head or their designate and the Mgr. of
Purchasing & Risk Management agree that the changes
required to achieve an acceptable bid will not change the
general nature of the requirement described in the bid
solicitation
18.3 In the case of building construction contracts, where the
total cost of the lowest responsive bid is in excess of the
appropriation made by City Council, negotiations may be
made if performed in accordance with the guidelines
established by the Canadian Construction Association and
published in their CCDC documents.
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18.4 In the case of road construction contracts, where the total
cost of the lowest responsive bid is in excess of the
appropriation made by City Council, negotiations may be
performed if in accordance with the guidelines established
by the Ontario Provincial Standards Specifications. If the
project cannot be negotiated to bring the total contract
within budget, the Department Head may take a report to
their Committee requesting permission to reallocate funds
from another approved project. If successful, the Director
of Finance will be notified to facilitate proper accounting
functions.
18.5 The City of Quinte West has the right to cease negotiations
and reject any offer at any time.
18.6 If two equal bids are received, the following items will be
taken into consideration:
i.
Prompt payment discount
ii.
When delivery is an important factor, the bidder
offering the best delivery date will be given
preference
iii. A bidder in a position to offer better after sales
service, with a good record in this regard shall be
given preference,
i.
A bidder with an overall satisfactory performance
record shall be given preference over a bidder known
to have an unsatisfactory performance record or no
previous experience with the City
ii.
All other things being equal, preference will be given
to the vendor whose place of business is local, in
order of City, Province & Country
iii. If (i) through (v) do not break the tie, equal bidders
shall be entered into a draw. The names of the tied
bidders shall be placed in a container and the tender
to be awarded shall be drawn by a member of
council. The time and location of the draw shall be
set by the Mgr. of Purchasing & Risk Management or
their designate, and the bidders shall be notified in
order that they may be present
19.
PRELIMINARY CHECKING OF SUBMISSIONS
19.1 Following the opening, the Manager of Purchasing & Risk
Management or their designate will prepare the Record of
Minutes and Results of Preliminary Evaluation to determine
compliance to all mandatory criteria. This report will be
forwarded to the Dept. Head or his/her designate for further
consideration by the evaluation committee
19.2 Standard mandatory criteria wherein non-compliance with
WILL result in rejection include but are not necessarily
limited to the following;
i.
bid form must be signed as necessary;
ii.
the correct bid form, if provided, must be used;
iii. the bid envelope must be time and date stamped
prior to the contract closing time;
iv. the bid deposit in the proper amount, if required,
must be included with submission; and
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SCHEDULE "B" TO BY-LAW NO. 25-012
PURCHASING PROCEDURES/PROCESSES
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v.
the bid is free of restrictions or alterations
19.3 If there is an error or incomplete material on any other
portion of the bid, then the decision as to whether or not to
accept or reject the submission shall be at the discretion of
the Dept. Head or his/her designate and the Mgr. Of
Purchasing & Risk Management. That decision will be based
upon the following considerations:
i.
Is the intention of the bidder clear?
ii.
Has the bidder made a conscientious attempt to
comply with the bid requirements?
iii.
Is it fair to all bidders to accept the tender or has the
bidder gained an unfair advantage?
19.4 If the amount bid for a unit price item does not agree with
the extension of the estimated quantity and the bid unit
price, or if the extension has not been made, the unit price
shall govern and the total price shall be corrected
accordingly.
19.5 If both unit price and total price are left blank, then both
shall be considered as zero.
19.6 Following completion of preliminary check procedures,
(section 17), bidding infractions shall be noted on the Record
of Tenders Opened. This notation must clearly state the
reason the bid is noted as incomplete or rejected.
19.7 Photocopies of all acceptable submissions (or best three) will
be forwarded to the Dept. Head or his/her designate for
further consideration by the Evaluation Committee. Original
documents will remain in the possession of the Purchasing
Coordinator or his/her designate to maintain the integrity of
the process.
20.
EVALUATION PROCESS
20.1 All responses to a competitive bid process will first be
reviewed by the Mgr. of Purchasing & Risk Management or
their designate to ensure compliance to both standard
mandatory criteria and project specific mandatory criteria;
checking of costs; and verification of extensions, additions
etc. All submissions determined to be qualified for further
consideration will be forwarded to the appropriate Dept.
Head for further review in determining a Respondents
understanding of and capability of performing the works or
services requested. Those found to be non-compliant will
be rejected by the Mgr. of Purchasing & Risk Management
or their designate at this point.
20.2 Responses to a Request for Proposal will undergo further
evaluation incorporating the scoring and weighting criteria
as presented in the original RFP document. This scoring
will be carried out by the evaluation committee. The
evaluation committee will be comprised of a mix of staff
and/or
department
committee
members
as
deemed
appropriate by the Dept. Head or their designate for the
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SCHEDULE "B" TO BY-LAW NO. 25-012
PURCHASING PROCEDURES/PROCESSES
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project. A minimum of two people will review and score
each proposal.
20.3 Responses to a Tender Call are subject to the standard
preliminary evaluation to ensure compliance to both
standard mandatory criteria and project specific mandatory
criteria; checking of costs; and verification of extensions,
additions etc. All submissions determined to be qualified
for
further
consideration will
be
forwarded
to
the
appropriate Dept. Head for further review in determining a
Respondents understanding of and capability of performing
the works or services requested in a fully qualified manner.
20.4 A copy of the completed evaluation forms along with
committee recommendation will be forwarded to the Mgr.
of Purchasing & Risk Management to be kept in a
confidential file and utilized for debriefing and/or dispute
resolution if necessary.
20.5 The Dept. Head or their designate shall prepare a
recommendation to the appropriate Committee or to
Council if required, otherwise direction will be provided the
Mgr. of Purchasing & Risk Management in writing to
proceed with award through the issue of a Notification of
Intent to Accept.
20.6 If a Request for Proposal or a Tender Call can be awarded
within the confines of the Council pre-approved budget
amount and the scope of the project, approval at Dept.
Head level is sufficient to proceed with official award. If a
Tender Call is to be awarded to other than the lowest
qualified bidder, the decision must be approved at Council
level prior to award.
20.7
Immediately following the evaluation of tenders, the Dept.
Head or their designate shall notify the Mgr. of Purchasing
& Risk Management in writing that the lowest two bids are
in order, and that the bid deposit, if applicable, other than
the lowest qualified and second lowest qualified bidder
should be returned.
21.
RESERVATION OF RIGHTS BY THE CORPORATION
Without limiting the generality of the anything else contained in this
RFx, the City reserves the right at any time in its sole discretion to:
a) Reject any Bid Submission, whether or not complete and
whether or not it contains all the required information;
b) Require clarification from a Bidder on any portion of this RFx;
c) Request additional information on any Bid submission;
d) Reject any and all Bid Submission without any obligation of
compensation or reimbursement to the Bidder;
e) Invalidate this RFx and issue a replacement RFx for this work
or work of a similar nature or portion thereof;
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f) Award a Contract to any Responsive Bidder;
g) Award a contract in its entirety or in part, to one or more
Respondent's;
h) Not award any contract to any Responsive Bidder;
i) Negotiate with any one or more of the Vendors with respect
to any aspect of the Request for RFx, this process,
mandatory requirements or otherwise with respect to the RFx
or any contract arising out of the RFx;
j) Not select the lowest Bidder for Contract award (1) even if it
is the only Bid received or (2) if selecting another Bid would
be in the best interests of the City, as determined by the City
in its sole discretion;
k) Contact and consider references as part of the evaluation
process;
l) Not award the contract to any Bidder who does not (if
requested by the City) furnish evidence, satisfactory to the
City, that it has experience in performing the type of Work
proposed and that it has sufficient capital and equipment to
enable it to successfully complete the work in a timely
manner;
m) The City may, in its sole and absolute discretion,
independently verify
any
information obtained
in
any
submission.
n) The City reserves the right without prejudice to accept or
reject any or all submissions and to waive technical defects,
irregularities, formalities and omissions at its sole discretion,
if in doing so, the best interest of the City will be served.
o) Alter the RFx schedule, bid call process or procedures or
objectives, or any other aspects of this RFx;
p) The City reserves the right to cancel this RFx without case
and without incurring any liability whatsoever if deemed in
the best interest of the City to do so.
q) The City reserves the right to terminate the contract without
notice if due to non-performance, unsatisfactory service or
unsatisfactory performance.
r) The City reserves the right to call in alternate services if the
successful Bidder is unable to provide the service when
requested.
s) Cancel this RFx if all Bid prices exceed the City's allocated or
estimated budget for the Work;
t) In the event that the Bid price submitted by the lowest
Responsive Bidder exceeds the Owner's budget for all of the
Work, the Owner reserves the right to (where in the opinion
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SCHEDULE "B" TO BY-LAW NO. 25-012
PURCHASING PROCEDURES/PROCESSES
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of the Owner it is possible to do so) award part of the Work
to that Bidder and;
u) Not award a Contract to a Bidder which Owner, acting
reasonably, feels will not be able to meet Work specifications
and/or performance standard and/or would be unduly hard to
manage
from
a
contract
management/administration
perspective,
All notwithstanding any custom of the trade to the contrary or
anything else contained in the Bid Documents.
22. CONTRACT AWARD/CONTRACT EXECUTION AND
PERFORMANCE
22.1 In the event that it is deemed beneficial to listen to
delegations from bidders, every bidder must be given an
equal opportunity to present themselves unless a short
listing is provided for in the tender document. Individual
written invitations, stating time, date and purpose of the
presentation, must be extended.
22.2 Upon the award of the contract, the Mgr. of Purchasing &
Risk Management or their designate shall without undue
delay send a "Notification of Intent" to the successful
bidder advising that their bid has been accepted for award
consideration.
22.3 The successful bidder has ten (10) working days from
official notification to produce evidence of appropriate
insurance, performance surety's if applicable, executed
contract or agreement etc. to the Mgr. of Purchasing &
Risk Management unless otherwise agreed. Under no
circumstance will the successful bidder commence work
until the appropriate documentation has been submitted
and acknowledged by the City. Non-compliance will result
in a stop work order.
22.4 If a formal contract other than the agreement in the bid
document is required, it shall be prepared by the Mgr. of
Purchasing & Risk Management or their designate and
submitted to the contractor for execution unless otherwise
directed. At that time, the Clerk or their designate and
Mayor will be asked to execute the document and the City
seal will be applied.
22.5 Where Engineering contracts are entered, the engineering
firm will be responsible for preparation of the standard
MEA/CEO agreement unless otherwise agreed to.
22.6 Once the contracts, bonds, et cetera, of the awarded
bidder have been signed and found acceptable by the
Dept. Head or their designate and the Mgr. of Purchasing &
Risk Management, the bid deposit if provided shall be
returned.
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SCHEDULE "B" TO BY-LAW NO. 25-012
PURCHASING PROCEDURES/PROCESSES
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22.7 If the contract has been awarded and the successful bidder
fails to provide a contract bond, cash or other acceptable
collateral within the specified time, the Department Head
or their designate and the Mgr. of Purchasing & Risk
Management or their designate may grant additional time
to fulfill the necessary requirements or may recommend
one of the following:
i.
That the contract shall be awarded to the next best
responsible bidder
ii.
That the contract shall be cancelled
22.8 In either of the above cases, any bid deposit of the
successful bidder may be forfeited. If the contract is to be
awarded to the next best responsible bidder, their deposit
shall be retained until he/she has actually executed the
written contract to the satisfaction of the Department Head
or their designate.
22.9 If the next best responsible bidder fails, or declines to
execute the contract if awarded to him/her, their deposit
shall also be forfeited.
23. SUPPLIER RELATIONS AND CONTRACT MANAGEMENT
Once the contract has been signed, it is essential that it be properly
managed. Departments are responsible for all aspects of contract
management. The following principles must be followed with respect
to the management of all City contracts:
23.1 Scope Management
The scope of each contract must be appropriately managed to
ensure that all deliverables are properly received, payments are
appropriately made, all timelines are met and any extension
options are appropriately exercised.
23.2 Payment to Suppliers
Departments are responsible for ensuring that all payments are
made in accordance with the contract and for reviewing and
approving supplier invoices.
Unless otherwise agreed or subject to the Construction Act
schedule, standard terms are Net 30 days.
Where a contract is subject to incremental payments, payment
certificates will be prepared by the department responsible for
the project utilizing the standard Quinte West format.
All vendors are encouraged to accept Electronic Funds Transfer
as a means of payment. Failure to complete and return the
required EFT forms may result in delay in payment.
23.3 Scope Changes and Contract Amendments
Scope changes and contract amendments are to be managed
prudently when unforeseen events arise when a project is
underway:
- The supplier must submit a change order request including
rationale, cost and timing implications;
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SCHEDULE "B" TO BY-LAW NO. 25-012
PURCHASING PROCEDURES/PROCESSES
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- The change must be approved by the City prior to
commencement of the work;
- The change must be funded within an approved budget;
- A copy of each change order must be provided to the
Manager of Purchasing & Risk and becomes part of the
project master file;
- Change orders are to be accounted for on any Payment
Certificate submitted for payment.
23.4 No amendment or revision to a contract shall be made unless the
amendment is in the best interest of the City.
23.5 Where expenditures for the proposed amendment combined with
the price of the original contract exceeds City Council approved
budget for the project, a report prepared by the Dept. Head or
their designate shall be submitted to the Director of Finance and
City Council recommending the amendment and proposing the
source of financing.
24.
EXERCISE OF CONTRACT RENEWAL OPTIONS
24.1
Where a contract contains an option for renewal, the Dept.
Head or their designate may exercise such option provided
that all of the following apply:
i.
The supplier's performance in supplying the goods,
services or construction is considered to have met
the requirements of the contract
ii.
The Dept. Head has determined that the exercise of
the option is in the best interest of the City.
iii.
Funds are available in appropriate accounts within
City Council approved budget including authorized
revisions to meet the proposed expenditure.
iv.
The Dept. Head shall provide a written explanation
as to why the renewal is in the best interest of the
City and include comment on the market situation
and trend.
24.2 When a specific timeframe for a renewal option is not
written in the original bid document, the renewal period
shall not exceed the original contract duration.
25.
ACCESS TO INFORMATION
25.1 The disclosure of information received relevant to the issue
of a bid solicitation or the award of contracts emanating
from bid solicitations shall be made by the appropriate
offices in accordance with the provisions of the Municipal
Freedom of Information and Protection of Privacy Act,
R.S.O. 1990, as amended.
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SCHEDULE "B" TO BY-LAW NO. 25-012
PURCHASING PROCEDURES/PROCESSES
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26.
DEFAULT AND NON-PERFORMANCE
26.1 The City reserves the right to determine, in its sole and
unfettered discretion, non-performance of the contract,
including the level of quality of Goods and/or Services
provided, and further reserves the right to cancel the
contract or any part of the contract if the Bidder fails to
correct deficiencies upon ten (10) calendar days' written
notice or at the City's discretion. The City's evaluation and
determination in regard shall be final and not reviewable
by any court or tribunal.
26.2 In the event that the Bidder fails or neglects to comply
with any condition set out in the contract, the Contract
may be unconditionally cancelled by the City without notice
and without penalty to the City.
26.3 Any termination of the contract by the City, as aforesaid,
shall be without prejudice to any other rights or remedies
the City may have.
26.4
If the City terminates the contract, it is entitled to:
- take possession of all of the work in progress, materials
and construction equipment then at the project site (at no
additional charge for the retention or use of the
construction equipment), and finish the work by whatever
means the City may deem appropriate under the
circumstances;
- withhold any further payments to the company until the
completion of the work and the expiry of all obligations
under the Correction of Defects Clause;
- recover from the company loss, damage and expense
incurred by the City by reason of the company's default
(which may be deducted from any monies due or
becoming due to the company, any balance to be paid by
the company to the City.)
26.5 The City reserves the right to disqualify for an
indeterminate period (minimum two (2) years), the name
of any Bidder for breach of terms and conditions of this
RFx or for unsatisfactory performance of the Contract.
This disqualification will apply to the terminated Bidder as
a bidder on future quotations, RFx or request for proposal
or a sub-trade to a bidder on future quotations, RFx, or
request for proposal issued by the City. The City further
reserves the right to publish the names of all disqualified
Respondent's in any future quotation, RFx or request for
proposal.
27. DISPUTE RESOLUTION
27.1 All potential contract disputes with suppliers must be
managed in accordance with the dispute resolution
mechanisms outlined in the contract. Where a contract is
silent on dispute resolution, Departments should ensure
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SCHEDULE "B" TO BY-LAW NO. 25-012
PURCHASING PROCEDURES/PROCESSES
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that potential disputes are proactively managed and
appropriately escalated.
Written copies of all
communications
and
correspondence
with
suppliers
concerning a contract dispute must be maintained by the
Department.
28.
PERFORMANCE TRACKING
28.1 Departments must also ensure that the performance of all
suppliers
is
appropriately
monitored
and
recorded.
Departments must maintain written
records of any
performance
issues,
including
correspondence
or
notifications to suppliers. Ensuring that performance
problems are addressed quickly and effectively and that a
written record is kept of all matters connected with
performance tracking is essential to proper contract
management. Further, Departments must
conduct
a
performance evaluation as per the vendor performance
procedure after the expiration or termination of every
contract in accordance with the criteria and forms
prescribed by Purchasing. These records will form part of
the main Purchasing file.
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THE CORPORATION OF THE CITY OF QUINTE WEST
SCHEDULE "C" TO BY-LAW NO. 25-012
PURCHASING CARD PROGRAM (P-CARDS)
SCHEDULE "C"
PURCHASING CARD PROGRAM
Page 40 of 50
THE CORPORATION OF THE CITY OF QUINTE WEST
SCHEDULE "C" TO BY-LAW NO. 25-012
PURCHASING CARD PROGRAM (P-CARDS)
1. INTRODUCTION
1.1
Purpose and Scope
The purpose of this policy is to ensure that responsibilities are
clearly defined and appropriate authority is delegated within an
outline of procedures for the use and control of the City of
Quinte West Purchasing Card Program (PCP)
The PCP is established as a method of making City purchases; on
line purchases; and or US funds purchases in accordance with
the purchasing policy of the City of Quinte West.
Charges are processed when the card is submitted for payment
and suppliers are paid within their established terms with the US
Bank Canada.
1.2
Background
Department employees, who occupy positions with delegated
purchasing authority by Dept. Heads, are authorized to use the
Purchasing Card to purchase goods and services (amount on
each card determined by thresholds established by Dept. Head)
in support of sound business practices, with a monthly limit to be
determined for each card holder.
The intended benefits of the Purchasing Card are: reduce the
costs of procurement and supplier payment; improved ease and
expediency of government purchasing; improve the timeliness of
supplier payments; improve control over department
purchasing; and improve management reporting on department
purchasing.
1.3
Authority
Department Heads have the authority to empower employees
within their departments or areas of responsibility.
2.
POLICY
2.1
Administration
a) The Mgr. of Purchasing & Risk Management or their designate
is responsible for the administration of the Purchasing Card
Program within the City of Quinte West.
b) Each Purchasing Card will have a unique number, and will be
issued in the name of the City of Quinte West and the name of
the employee who has been authorized to use that Card. The
card is not transferable to any other employee, even if that other
employee is also authorized to use a Purchasing Card on behalf
of the City of Quinte West. Improper card use will result in the
cancellation of the employee's card.
c) The Purchasing Card will be issued to employees who occupy
positions with delegated purchasing authority, on the approval of
the Department Head(s).
Page 41 of 50
THE CORPORATION OF THE CITY OF QUINTE WEST
SCHEDULE "C" TO BY-LAW NO. 25-012
PURCHASING CARD PROGRAM (P-CARDS)
2.2
Limited Restrictions
a) The limit for individual card purchases is restricted by the
dollar amount established by the Department Head.
b) The monthly credit card limit, which is the maximum monthly
amount chargeable to each Purchasing Card, is restricted to the
maximum dollar limit established by each Department Head.
Under no circumstances will a transaction be "split" into two or
more transactions to bypass the single transaction dollar limit.
c) The Mgr. of Purchasing & Risk Management , in cooperation
with the Department Head(s) will manage any changes of
transaction or spending limits.
2.3
Prohibitions
Purchasing Cards will not be used in the following
circumstances:
a) When the cost of the goods or services would be significantly
increased as a result of using the Card and an alternative
method of payment is available (i.e. a discount is provided by
the supplier as a result of not using the Card);
b) When the supplier does not take a credit card as a means of
payment;
c) For personal use vehicle operating and maintenance
expenses including vehicle repairs, fuel, oil etc;
d) For personal purchases;
e) To obtain cash advances.
2.4
Revoking of Card Privilege
Cardholders who do not adhere to the limits and prohibitions set
out above will have their card privileges revoked. The Mgr. of
Purchasing & Risk Management will consult with the Dept. Head
who will advise the employee of this discipline.
2.5
Refunds
No cardholder may accept cash or a cheque from a supplier who
is making a refund pertaining to a transaction previously charged
to a Purchasing Card account unless there is no viable
alternative.
2.6
Liability
a) Every cardholder shall attend a meeting with the Manager of
Purchasing & Risk or their designate, with the Director, Manager
or Supervisor of the department that the cardholder works for
and the cardholder shall be informed in writing of his or her
responsibilities and restrictions regarding the use of the
Purchasing Card and shall agree to them in writing.
b) Cardholders will be held liable for any misuse or willful
disregard of policies or operating procedures that result in a loss
of money, fraud or collusion.
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c) The liability for authorized charges on the Purchasing Cards
rests with the City of Quinte West, not the individual cardholder.
d) The maximum City liability for unauthorized use of the Card
following loss or theft of the Card shall be $50.00.
2.7
Unauthorized Use
Unauthorized use means a use that did not benefit the City and
was made by someone other than the cardholder. The City is
not liable for any unauthorized use of the Card which occurs
after notification of loss, theft or cancellation has been received
by the US Bank Canada, however, if the loss or theft of the Card
is not reported immediately, the City may be liable for all
unauthorized purchases charged to the account.
2.8
Statement Cycle
a) The statement cycle period ends on the 27th of each month
(or on the next business day if the 27th is on a weekend). The
spending limit balances on each card are reset to zero at this
time.
Expectations:
- Cardholders will be advised that their card activity
statement is available for viewing and reconciliation on the
desktop through Access Direct on the 28th of each month
giving them the option to reconcile daily
- Cardholders have five (5) working days after receipt of the
statement to allocate costs to accounts; if they are absent
a delegated person should reconcile the cardholder's
statement
- Cardholders will print the reconciliation after account
costing
- Cardholders will have their immediate supervisor sign off
on the statement and forward the original copy to
Purchasing accompanied by receipts for each transaction
- Lost receipts MUST be requested from the supplier by the
cardholder. Where replacement receipts are not available,
the cardholder will complete a Requisition for funds
detailing the purchase and have the appropriate party sign
off
- The approved print out or statement must be received by
Accounts Payable no later than the 5th of each month
It is acknowledged that some city departments may assign
administrative staff to help with reconciliation and submission of
statements to Finance.
2.9
Payments
To avoid the payment of interest, payments to the US Bank
Canada - Visa shall be made within 14 days following the
monthly statement date (also refer to 4.10.5 and 4.12)
2.10 International Purchases
Purchases made outside Canada will be converted to Canadian
funds at a rate established by Visa International Inc.
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PURCHASING CARD PROGRAM (P-CARDS)
3.
RESPONSIBILITIES
3.1
The Cardholder is responsible for:
a) Adhering to all conditions and restriction imposed on the
Purchasing Card by the City of Quinte West and US Bank
Canada;
b) submitting the Employee Acknowledgment of Responsibilities
and Obligations form to the Mgr. of Purchasing & Risk
Management acknowledging, signing and submitting that they
have read , understood and accept the conditions (Appendix A);
c) Ensuring that the Purchasing Card, monthly statements and
other documents bearing the Card number are kept in a secure
location with controlled access;
d) immediately notifying the US Bank Canada, the Department
Head or Mgr. of Purchasing & Risk Management of loss or theft
of the Card;
e) Returning the Card to the Mgr. of Purchasing & Risk
Management for cancellation as appropriate;
f) Providing a signed, reconciled card activity statement to
Purchasing on a monthly basis for all purchases made with the
card
g) Verifying the amount of HST paid to allow for accurate
rebates;
h) Resolving disputed charges;
I) keeping supporting documentation (i.e. sales slips, cash
register and credit card receipts, supplier notices etc.) related to
all purchases made with the Card for reconciliation, account
verification and audit purposes; and
j) Ensure that tax exemption; it Fire vehicle repairs, are taken
at the time the card is provided to the vendor.
3.2
The Department Head
The Department Head (or his/her designate) is responsible for:
a) Assessing the need for Purchasing Cards in cooperation with
the Mgr. of Purchasing & Risk Management based on operational
requirements;
b) Identifying the employee(s) who will be authorized to make
purchases through the use of a Purchasing Card;
c) Establishing the monthly credit limit for each cardholder in
cooperation with the Mgr. of Purchasing & Risk Management;
d) Specifying the types of items to be purchased with the Card,
or identify any merchant blocking necessary;
e) informing the Mgr. of Purchasing & Risk Management of the
need for issuance of new cards, cancellation of existing cards,
increases or decreases to credit limits, change in department or
area of responsibility of the Cardholder;
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f) Monitoring and controlling the utilization of Purchasing Cards
within their department or area of responsibility;
g) Reviewing on a regular basis, the Card activity statement for
all purchases charged to their budgets;
h) Ensure immediate supervisors are approving statement
reconciliations for their employees.
3.3
Mgr. of Purchasing & Risk Management
The Mgr. of Purchasing & Risk Management or his/her designate
is responsible for:
a) Collecting the reconciled activity statements from the
cardholders;
b) Developing corporate policies and procedures with regard to
the use of P-cards
c) Ensuring that all purchasing activity is done in accordance
with approved Purchasing policies and procedures, and
implementing corrective activities when warranted;
d) Ensuring that each cardholder is informed of his or her
responsibilities regarding the use of the P-card;
e) Ensuring that the use of P-Cards conforms to departmental
and corporate policy and procedures;
f) Authorizing the issuance or withdrawal of P-cards with the US
Bank Canada;
g) Processing increases or decreases to credit limits in
cooperation with Department Heads;
h) Processing bank forms with respect to changes of address
and changes of department or area of responsibility, in
cooperation with Department Head;
I) providing coordination with respect to monitoring the overall
utilization of P-cards within the City of Quinte West;
j) Compiling and reporting P-Card data to the Department
Head(s) as required;
k) Ongoing staff training
4.
PROCEDURES
4.1
Requests for Purchasing Cards
The Employee Personal Information form will be completed and
signed by the employee. and presented to the Mgr. of
Purchasing & Risk along with Director level approval to issue the
card.
The Department Head, in coordination with the Mgr. of
Purchasing & Risk Management will determine the "monthly
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credit limit and single transaction limit" of the Employee
Information section.
The Department Head must send the approved application form
to the Mgr. of Purchasing & Risk Management for transmittal to
the US Bank Canada.
Personal credit information is not required as the Card will be
issued to the City of Quinte West, not the employee.
Purchasing Cards are expected to be issued within ten (10)
working days from the date that the application form is received
by the US Bank Canada. The Cards will be sent directly to the
Mgr. of Purchasing & Risk Management at the address indicated
on the Bank Application Form.
4.2
Issuance of Purchasing Cards
Every cardholder shall attend a meeting with the Manager of
Purchasing & Risk or their designate, along with the Director,
Manager or Supervisor of the department that the cardholder
works for prior to release of the card to review the
Acknowledgement of Responsibilities form. The cardholder
signature will indicate that they understand and agree to its
terms.
Upon receipt of the Cards from the US Bank Canada, the
cardholder must ensure that all information on the card is
correct. Any inaccuracies are to be reported immediately to the
US Bank Canada Commercial Card Centre by the Mgr. of
Purchasing & Risk Management.
The Mgr. of Purchasing & Risk Management will inform the
cardholder of the responsibilities and restriction regarding the
use of the Purchasing Card and obtain a written
Acknowledgment of Responsibilities and Obligations form from
each cardholder before issuing the card (refer to Appendix A)
The Mgr. of Purchasing & Risk Management will retain the
Acknowledgment of Responsibilities and Obligations form for
safekeeping.
The cardholder must sign the Purchasing Card and store it in a
secure place when not in use.
The cardholder must activate the Purchasing Card by calling the
US Bank Canada as per the telephone number on the Purchasing
Card.
4.3
Cancellation of Purchasing Cards
The Manager of Purchasing & Risk or their designate will cancel
cards immediately upon notification of the need to do so.
4.4
Lost or Stolen Purchasing Cards
4.4.1 The cardholder must immediately notify the US Bank
Canada of any loss or theft of the card through the Commercial
Card Centre at 416-306-3636, or toll free at 800-588-8067.
Lost or stolen Cards can be reported 24 hours a day, seven days
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a week.
If the card is stolen, the police must be notified and a
police report requested by the Department Head.
4.5
Change of Department or Area of Responsibility
4.5.1 If the cardholder will no longer require use of the card as
a result of a change in department or area of responsibility, the
Card will be cancelled by the Mgr. of Purchasing & Risk
Management
4.6
Modification of Credit Limit
The Department Head will coordinate with the Mgr. of Purchasing
& Risk Management for any change in credit limit. The Mgr. of
Purchasing & Risk Management will complete and submit the
necessary paperwork to US Bank Canada.
Credit limit changes will be made within three (3) working days
from the date that the bank receives the form.
4.7
Disputed Charges
Items charged on monthly statements of accounts that do not
accurately reflect the transactions made by the cardholder (i.e.
bank errors such as wrong amount, incorrect account number,
multiple postings of the same item, etc.) are considered to be
disputed items.
The cardholder must notify US Bank Canada and advise the Mgr.
of Purchasing & Risk Management of the items disputed.
Disputed items reported by cardholders will be credited on the
individual statement the following month (provided they are
legitimate). The amount indicated on the statement is the
amount that should be paid to the US Bank Canada Commercial
Card Centre.
The cardholder shall provide information and assistance to the
US Bank Canada to settle the disputed item(s) as required.
It the questionable item is not a bank error but a supplier error
(i.e. late delivery, defective goods, wrong price, quantity
difference, returned goods, etc.) the matter must be settled
directly with the supplier by the cardholder. Such matters must
be drawn to the supplier's attention immediately so as to
minimize the delay in obtaining a credit to the Purchasing Card
account. When the amount in dispute is of an insignificant dollar
value, notices to suppliers should be confirmed in writing even
though settlement may be accomplished through telephone calls.
Copies of the notices to suppliers should be attached to the
monthly reconciliation activity statement. Items under dispute
with suppliers must not be deducted from the monthly statement
of account.
Disputed charges must be identified and the US Bank Canada
notified within 30 days of the statement date.
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4.8
Purchase of Goods and Services
Record of purchases made with P-cards must be submitted to
Purchasing by cardholders together with sales slips, credit
vouchers, notices to suppliers with the printed card activity
statement. A purchase order is not necessary for purchases
made with a P-card unless a single transaction amount exceeds
$2000.00.
The appropriate sales tax exemption must be noted at the time
of purchase to the supplier to ensure exemption from the
provincial sales tax where applicable. (Fire dept. only)
The appropriate taxes are to be paid where applicable.
For over the counter transactions or for services rendered, the
cardholder will certify that the goods have been received; when
goods are shipped, the cardholder must ensure that the goods
received match the order or sales slip.
For telephone orders, the cardholder should have the supplier
fax a copy of the receipt or instruct the supplier to supply a copy
of the receipt with the shipment.
For Internet orders, the cardholder may either print the order
from the computer or attach the receipt provided by the supplier
once the order arrives.
4.9
Access Direct Software
The Access Direct web page is designed for individual cardholder
use. It is provided as a delivery vehicle for the monthly
statement to allow cardholders the ability to complete the
monthly statements and allocate purchases to cost centers.
Cardholders may find the webpage useful to:
- Receive an electronic daily or monthly statement and print
it
- Reconcile transactions on their monthly statement
- Adjust transactions (i.e. allocate purchases to cost centers
or add additional information for use in company specific
reports)
- Electronically deliver revised monthly statements to
Purchasing
- Track project related expenses. This provides cardholders
with a complete expense reconciliation system
Each cardholder will be provided with the internet address to
verify and reconcile their statements daily or monthly where
applicable.
For cardholders that do not have access to use of a desktop
computer, a site coordinator will be assigned that has access to
a desktop computer for reconciliation of the card activity
statement.
The file may be downloaded and connected to the local area
network where it will be updated immediately.
4.10 Payment of Monthly Statements
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The statement of account will be issued on the 27th day of each
month and will be sent directly to the Purchasing Department
who will distribute with other regular invoices to appropriate
department for coding and approval for payment.
The following documentation must be sent to Accounts Payable
by the Purchasing Dept. for payment purposes: the printed copy
of the monthly card activity statement as reconciled, approved
by the cardholder and the Department Head or designate. The
detailed purchases listed on the statement must match the
charges shown on the monthly statement with adjusting entries
shown, as need be, for disputed items (bank errors)
Monthly reconciliation must include sales slips; credit vouchers
etc., and be sent to Purchasing. Purchasing will verify and
forward to Accounts Payable where the information will be
retained for audit purposes.
No cardholder shall have the authority to approve their own
statement of account.
In order to avoid the payment of interest, the approved monthly
statement with backup documentation must be sent to Accounts
Payable for payment on or before the 5th day of each month.
5.
PAYMENT AND CALCULATION OF INTEREST
In accordance with the terms of the agreement between the US
Bank Canada and the City of Quinte West, the payment of
interest to the US Bank Canada is based on a 14 day payment
period. Where the City is responsible for the delay, interest will
be automatically calculated and paid on overdue accounts.
6.
MANAGEMENT REPORTS
The management reports produced by the US Bank Canada
"Access Direct" software will be provided by the Mgr. of
Purchasing & Risk Management as requested and issued to all
Department Heads for monitoring purposes.
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PURCHASING CARD PROGRAM (P-CARDS)
EMPLOYEE ACKNOWLEDGMENT OF RESPONSIBILITES AND
OBLIGATIONS
and
AGREEMENT TO ACCEPT THE VISA PURCHASING CARD
The US Bank Canada Visa Purchasing Card represents the City's
trust in you. You are empowered as a responsible agent to
safeguard City assets.
1.
I understand that the card is for City approved purchases
only, and I agree not to charge personal items to my corporate
card.
2.
Application of a personal rewards program rebate/points in
conjunction with City funded p-card purchases is prohibited.
3.
Improper use of this card can be considered
misappropriation of City funds. This may result in
disciplinary action, up to and including termination of
employment.
4.
If the card is lost or stolen, I will immediately notify US Bank
Canada by telephone or report the loss directly to the Manager
of Purchasing & Risk or their designate to facilitate timely
cancellation of the card. ([email protected])
5.
I agree to surrender the card immediately upon termination of
employment, whether for retirement, voluntary or involuntary
reasons.
6.
The card is issued in my name. I will not allow any other
person to use the card. I am considered responsible for any
and all charges against the card.
7.
All charges will be billed directly to and paid directly by the City.
The bank cannot accept any monies from me directly; therefore
any personal charges billed to the City could be considered
misappropriation of City funds.
8.
As the card is City property, I understand that I will be
required to comply with internal control procedures
designed to protect City assets. This may include being
asked to produce the card to validate its existence and account
number. I will be required to produce receipts and statements
to audit its use.
9.
I will receive a monthly Reconciliation Statement which will
report all activity during the statement period. Since I am
responsible for all charges (but not for payment) on the card, I
will resolve any discrepancies by either contacting the supplier or
the bank.
10.
I understand that the Purchasing Card is not necessarily
provided to all employees. Assignment is based on my need to
purchase materials for City business. My card may be revoked
based on change of assignment or location. I understand that
the card is not an entitlement nor reflective of title or position.
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PURCHASING CARD PROGRAM (P-CARDS)
Visa Purchasing Card Number Issued in My Name:
Employee Printed
Name
Director's Printed
Name
Total Credit Limit on
This Card
EMPLOYEE # ASSIGNED FOR P-CARD PURPOSES: 9999
A meeting with the cardholder was held on
20
Your signature below is verification that on this day you have been
provided with an overview of the Cardholder terms and conditions
along with a printed copy of the city's Purchasing Policy including
Schedule "C" pertaining specifically to the P-card program and further
that you understand and agree to abide by all terms and conditions
thereof.
Employee Signature:
Dated:
In the presence of:
Dept. Head or Designate
Mgr. Purchasing & Risk or Designate