Procurement By-law No. 37-26 (Policy for Procurement of Goods, Services and Construction)
Strathroy-Caradoc, Ontario
· adopted 2026-04-20
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THE CORPORATION OF THE MUNICIPALITY OF STRATHROY-CARADOC
BY-LAW NO. 37-26
A BY-LAW TO ADOPT A POLICY FOR THE PROCUREMENT OF GOODS,
SERVICES, AND CONSTRUCTION
WHEREAS The Corporation of the Municipality of Strathroy-Caradoc (the "Municipality")
is defined both as a lower-tier municipality and municipality by the Municipal Act, 2001,
S.O. 2001, c. 25, (hereinafter, the "Act") which acts through resolution and by-law of
Council in accordance with subsection 5 of the Act, subject to delegated authority in
accordance with subsection 23.1 of the Act;
AND WHEREAS Council is of the opinion that it is desirable to promote and maintain
the integrity of the purchasing processes by providing clear direction and
accountabilities to Council, Suppliers and staff;
AND WHEREAS Subsection 270(1) of the Act provides that a municipality shall adopt a
policy for its procurement of goods and services and Ministry of Municipal Affairs
documentation confirms the appropriateness of confirming such policy in by-law;
AND WHEREAS The objective of the procurement function is to ensure that the
Municipality purchases goods, services and construction that provide the Municipality
with best value and which are delivered in a timely and efficient manner;
AND WHEREAS Section 9 of the Act provides that municipalities have the capacity,
rights, powers and privileges of natural persons, which includes the power to do things
that natural persons can do, such as, inter alia, enter into agreements for goods,
services and construction;
AND WHEREAS This policy provides for fairness, accountability, openness and
transparency in the Municipality's Procurement Processes, encourages competition and
efficiency, and ensures the Municipality purchases goods, services and construction
contracts which provide for best value and are delivered in a timely and efficient
manner; and
AND WHEREAS This this policy addresses the Canadian Free Trade Agreement
between the Federal, Provincial and Territorial Governments and the Trade and
Cooperation Agreement Between Ontario and Quebec, as required, and furthers the
spirit of the Canada-European Union Comprehensive Economic and Trade Agreement,
the Canada-UK Trade Continuity Agreement, 2021, the Comprehensive and
Progressive Agreement for Trans-Pacific Partnership, and the United States-Mexico-
Canada Agreement, as well as any other applicable trade agreements, as amended or
replaced;
NOW THEREFORE the Council of the Corporation of the Municipality of Strathroy-
Caradoc enacts as follows:
1. THAT: the Procurement of Goods and Services policy attached to and forming
part of this by-law be approved.
2. THAT: By-law No. 105-24, and any other policies related to procurement
previously approved by the Council of the Corporation of the Municipality of
Strathroy-Caradoc are hereby repealed.
3. THAT: this by-law shall come into force and effect on the date of its final passing.
Read a FIRST, SECOND and THIRD time and FINALLY PASSED this 20th day of
April, 2026.
____________________________
____________________________
Colin Grantham, Mayor
Jennifer Pereira, Clerk
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THE CORPORATION OF THE MUNICIPLAITY OF STRATHROY-CARADOC
PROCUREMENT OF GOODS AND SERVICES POLICY
Contents
1. OBJECTIVE AND SCOPE ....................................................................................... 5
2. DEFINITIONS ........................................................................................................... 5
3. PURCHASING PRINCIPLES ................................................................................... 9
4. AUTHORITY, ROLES, AND RESPONSIBILITIES ................................................. 10
4.1
Council of the Corporation of the Municipality of Strathroy-Caradoc ................ 10
4.2
Department Head ............................................................................................. 11
4.3
Municipality Treasurer ...................................................................................... 12
4.4
Procurement Services ...................................................................................... 13
4.5
Procurement Review Panel .............................................................................. 14
5. PROHIBITIONS ...................................................................................................... 14
6. PROCUREMENT PROCESSES ............................................................................ 15
6.1
Required Procurement Processes ................................................................... 15
6.1.1
Low Value Purchase Process (Up to $24,999.99) ..................................... 16
6.1.2
Competitive Procurement Processes ($25,000.00 or Greater) .................. 16
6.2
Cooperative Purchasing ................................................................................... 18
6.3
Tied Bids .......................................................................................................... 19
6.4
Over Budget Bids ............................................................................................. 20
6.5
Emergency Purchases ..................................................................................... 20
6.6
Non-use of Procurement Processes ................................................................ 20
6.7
Procurement Agreements ................................................................................ 21
6.8
Negotiation ....................................................................................................... 21
6.9
Exceptions to Procurement Processes ............................................................ 21
6.10 On-going Services and Contracts .................................................................... 23
6.11 Pre-Qualification of Suppliers ........................................................................... 23
6.12 Revenue Generating Contracts ........................................................................ 24
7. NON-APPLICATION .............................................................................................. 24
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8. EXEMPTIONS ........................................................................................................ 25
9. PROCUREMENT CONTRACT AMENDMENTS TO ADD GOODS OR SERVICES
26
10. RENEWAL OR EXTENSION OF PROCUREMENT CONTRACTS ....................... 26
11. DISPOSAL OF SURPLUS GOODS ....................................................................... 27
12. SUPPLIER CODE OF CONDUCT .......................................................................... 27
13. DISQUALIFICATOIN OF SUPPLIERS FOR NON-COMPLIANCE ........................ 28
14. LEGAL CLAIMS ..................................................................................................... 28
15. SUPPLIER PERFORMANCE EVALUATION......................................................... 28
16. MUNICIPALITY CODE OF CONDUCT AND CONFLICT OF INTEREST .............. 29
17. LOBBYING RESTRICTIONS ................................................................................. 30
18. PROCUREMENT PROCESS COMPLAINTS......................................................... 30
19. DEBRIEFS ............................................................................................................. 30
20. GREEN PROCUREMENT ...................................................................................... 30
21. ACCESSIBLITY ..................................................................................................... 31
22. SEVERABILITY ...................................................................................................... 31
23. EFFECTIVE DATE ................................................................................................. 32
SCHEDULE "A": SUPPLIER PERFORMANCE EVALUATION PROCEDURE .......... 33
SCHEDULE "B": SUPPLIER SUSPENSION PROCEDURE ....................................... 37
SCHEDULE "C": PROCUREMENT APPROVAL AUTHORITIES ............................... 42
SCHEDULE "D": IRREGULARITIES CONTAINED IN BIDS ....................................... 43
Page 5 of 43
1.
OBJECTIVE AND SCOPE
1.1
The objective of this by-law is to adopt a policy with respect to the
Procurement of goods, services and construction by the Municipality.
1.2
That the above recitals are true and hereby incorporated into this by-law by
reference.
1.3
This policy shall address the following:
a)
How procurement is administered by the Municipality;
b)
The core Procurement Processes used;
c)
The circumstances under which each form of the Procurement
Processes shall be used;
d)
The circumstances under which the Procurement Processes are not
required;
e)
How the integrity of Procurement Processes will be maintained; and
f)
How the interests of the Municipality, the public and persons
participating in Procurement Processes will be protected.
1.4
This policy applies to all departments and divisions of the Municipality, as
defined by the Act, with necessary contextual adaptation to address Council
and Board governance.
2.
DEFINITIONS
2.1
"Act" means the Municipal Act, 2001, S.O. 2001, c. 25, as amended or
replaced;
2.2
"Annual Budget" means the annual budget approved by the Municipality
of Strathroy-Caradoc and any amendment thereto.
2.3
"Approval Authority" means the authority to approve, award, and execute
Procurement Agreements, as well as any assignment or change requests
related to such procurements, up to the Total Procurement Values for the
respective body or person(s) set out in Schedule "C" - Procurement
Approval Authorities.
2.4
"Award Date" means the date at which Suppliers are notified of the award
of a Procurement through the Municipality's Bidding System or written
email.
Page 6 of 43
2.5
"Bid" means a Supplier's response to any form of a Procurement Process
issued by the Municipality.
2.6
"Bidding System" means the system of which the Municipality executes
Competitive Procurement Processes on the open market.
2.7
"Buying Group" means a group of two or more members that combine the
purchasing requirements and activities of the members of the group into
one joint Procurement venture. Buying groups include cooperative
arrangements in which individual members administer the Procurement
function for specific contracts for the group, and more formal corporate
arrangements in which the buying group administers Procurement for a
group of members. Buying groups may involve a variety of entities, including
public sector, private sector and not-for-profit organizations.
2.8
"CAO" means the Chief Administrative Officer of the Corporation of the
Municipality of Strathroy-Caradoc as appointed by by-law.
2.9
"Competitive Procurement Process" means an Invitational Competitive
Process, Request for Tender or Request for Proposal.
2.10 "Municipality" means the Corporation of the Municipality of Strathroy-
Caradoc, being a municipal corporation and both a lower-tier municipality
and municipality as defined by the Act.
2.11 "Municipality Treasurer" means the Treasurer of the Corporation of the
Municipality of Strathroy-Caradoc.
2.12 "Council" means the elected Municipal Council of the Corporation of the
Municipality of Strathroy-Caradoc.
2.13 "Delegated Authority" means the authority, delegated by Council to a
Department Head, to execute Procurement Agreements pursuant to this
policy.
2.14 "Department Head" means the highest-ranking individual in any
department recognized by the Municipality.
2.15 "Emergency Purchase" means an unbudgeted purchase made in a
situation where immediate action is required to prevent the possible loss of
life or property, a significant financial loss or a significant environment
impact.
2.16 "Exemption" means a Procurement to which this policy would ordinarily
apply, but which has been exempted from this policy under section 8 of this
policy.
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2.17 "Final Performance Evaluation Report" means the evaluation of a
Supplier's Performance that may be completed following the completion or
termination of a contract with the Municipality as prescribed in section 2(a)
of Schedule "A" - Supplier Performance Evaluation Procedure.
2.18 "Interim Performance Evaluation Report" means the evaluation of a
Supplier's performance that may be completed during the course of a
contract with the Municipality as prescribed in section 2(a) of Schedule "A"
- Supplier Performance Evaluation Procedure.
2.19 "Invitational Competitive Process" means a process where the Total
Procurement Value is $25,000.00-$99,999.99 (excluding taxes).
2.20 "Low Value Purchase" means a purchase with a Total Procurement Value
not exceeding $24,999.99 (excluding taxes).
2.21 "Municipality Decision Maker" means Council or a Department Head
with Delegated Authority.
2.22 "Performance Evaluation" means an evaluation of a Supplier's overall
performance following the completion of a contract with the Municipality.
2.23 "Public Competitive Process" means a process where the Total
Procurement Value is equal to or greater than $100,000.00 (excluding
taxes).
2.24 "Piggybacking" means a form of cooperative purchasing whereby a public
entity takes advantage of a Procurement Process of another public entity.
This allows a public entity that has not participated in a Procurement
Process to secure a commodity on the same terms and conditions as the
public entity that conducted the RFP. A Department Head may authorize
piggybacking when at their discretion, the prerequisites set out in section
6.2 are met;
2.25 "Procurement" means the acquisition of goods, services or construction.
2.26 "Procurement Agreement" means an agreement between the Municipality
and a Supplier for the purchase of goods, services or construction.
2.27 "Procurement Documents" means any document issued by the
Municipality to potential Suppliers to a Procurement Process, including but
not limited to: Procurement Notices, Request for Proposal Documents,
Request for Quotation Documents, Request for Tender Documents, Pre-
Qualification Documents, etc.
2.28 "Procurement Notice" refers to the communication of an active
Procurement Process by means of the Municipality's Bidding System, email
or other means.
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2.29 "Procurement Process" refers to any of the purchasing methods
described in section 6, of this by-law "Procurement Processes".
2.30 "Procurement Process Complaints" refers the method of which a
Supplier participating in a Procurement Process may file a complaint as
prescribed in section 18.
2.31 "Procurement Review Panel" a panel consisting of the Treasurer,
Procurement Services and the applicable Department Head who tend to
escalated Procurement related matters.
2.32 "Procurement Services" refers to Middlesex County's Procurement
Services department responsible for overseeing the Procurement Process
at the Municipality. Where Municipality chooses not to utilize the County's
Procurement Services, the Municipality's Department Head making the
Procurement shall be responsible for their duties within this by-law.
2.33 "Proposal" means the written bid submitted in response to a Request for
Proposals in which a Supplier proposes solutions to arrive at a specific end
product.
2.34 "Purchasing Authority" refers to the Municipality staff, usually the
Department Head, with authority to initiate a Procurement or Procurement
Process based on the terms of this by-law.
2.35 "Purchasing Designate" means a person designated by a Department
Head to exercise any or all responsibilities of that Department Head with
respect to this by-law. The Department Head must notify the Municipality
Treasurer in writing of the name(s) of the Purchasing Designate(s) within
their Department.
2.36 "Quotation" means the written bid submitted in response to a Invitational
Competitive Process in which a Supplier offers to supply goods, services or
construction at stipulated price.
2.37 "Request for Proposals" or "RFP" means a Procurement Process in
which a solution to an issue has been identified, but the method to achieve
that solution has not and there may be multiple different ways to achieve
the required solution.
2.38 "Request for Tenders" or "RFT" means a publicly advertised Procurement
Process in which Suppliers are invited to submit Bids for specified goods,
services or construction with a Total Procurement Value of $100,000.00 or
greater (excluding taxes). Price is the primary consideration in this process.
2.39 "Revenue Generating Contract" means a legal agreement between the
Municipality and a third party that yields a financial return for the
Municipality.
Page 9 of 43
2.40 "Supplier" means any person or enterprise that provides or could provide
goods, services or construction to the Municipality.
2.41 "Supplier Code of Conduct" means the rules and responsibilities of
Suppliers during and in relation to any Municipality Procurement detailed in
section 12.
2.42 "Suspension Recommendation Report" means the report to be
completed by a Department Head following a Supplier Performance
evaluation where it is to be recommended the suspend the Supplier from
future Municipality Procurements as prescribed within section 4(a) of the
Supplier Suspension Procedure (Schedule "B").
2.43 "Tender" means a bid submitted in response to a Request for Tenders in
which a Supplier offers to supply goods, services or construction at a
stipulated price.
2.44 "Total Procurement Value" means the total estimated cost, exclusive of
taxes, for the procurement of the particular goods, services or construction,
as determined by the Department Head usually during the budget process.
2.45 "Trade Agreements" means the Canadian Free Trade Agreement (CFTA),
Trade and Cooperation Agreement Between Ontario and Quebec
(OQTCA), Comprehensive Economic and Trade Agreement (CETA) and
such further and other agreements that apply to municipal procurement.
2.46 "Vender Performance Incident Report" means a report completed by a
Department Head upon an incident for documentation purposes.
3.
PURCHASING PRINCIPLES
3.1
Transparency
a)
The Municipality will ensure that its by-laws, policies, regulations,
and administrative procedures as they relate to this by-law and the
Municipality's purchasing functions are clear and made readily
accessible to the public.
b)
The Municipality will ensure that its notice of awarded contracts are
made readily accessible to the public, subject to legally recognized
confidentiality principles recognized in law.
3.2
Non-Discrimination
a)
The Municipality shall accord to the goods, services or construction
of non-local Suppliers treatment no less favourable than the best
treatment it accords to the goods, services or construction of local
Suppliers.
Page 10 of 43
3.3
Fairness
a)
Unless specifically set out herein, the Municipality shall ensure that
its needs for goods, services and construction are met through a
Procurement Process that provides Suppliers with equal opportunity
and equal treatment.
b)
The Municipality shall ensure that all Procurement Documents
clearly identify the requirements of the Procurement, the criteria that
will be used in the evaluation of Bids, and the methods of weighting
the evaluation criteria.
3.4
Best Value
a)
The Municipality shall ensure that all goods, services and
construction are purchased to achieve best value for the Municipality
and in a timely, efficient manner.
b)
To determine best value, the Municipality may take into account
factors such as price, quality, quantity, delivery, servicing, the
capacity of the Supplier to meet the requirements of the
Procurement, past performance, including past Performance
Evaluations, and any other criteria consistent with the purchasing
principles set out in section 3.0 of this by-law, "Purchasing
Principles".
4.
AUTHORITY, ROLES, AND RESPONSIBILITIES
4.1
Council of the Corporation of the Municipality of Strathroy-Caradoc
4.1.1 Council has ultimate authority for the expenditures of each
department operating within the Municipality. Council delegates its
purchasing authority to Department Heads through the authorization
of the Annual Budget or by specific resolution.
4.1.2 Council may also by by-law or resolution provide a Department Head
with the Delegated Authority to execute Procurement Agreements on
behalf of Council in which case the Department Head is the Approval
Authority for the purposes of this by-law. Where Council has not
provided a Department Head with Delegated Authority, Council shall
be the Municipality Decision Maker for the purposes of this by-law.
Page 11 of 43
4.2
Department Head
4.2.1 The Department Head is responsible for the purchasing function of
their department in accordance with this by-law, including;
a)
The acquisition of goods, services, or construction; and
b)
The disposal of surplus goods.
4.2.2 The Department Head may appoint a Purchasing Designate to
exercise any or all responsibilities assigned to that Department Head
in this by-law with the exception of executing Procurement
Agreements. It is the Department Head's responsibility to notify and
obtain approval from the Municipality Treasurer in writing regarding
the Purchasing Designate.
4.2.3 The Department Head shall determine and implement the
appropriate method of procurement as prescribed by section 6.0 of
this by-law, "Procurement Processes".
4.2.4 For a Procurement that equals or exceeds one hundred thousand
dollars ($100,000.00) the Department Head must engage
Procurement Services to facilitate the acquisition. For a Procurement
less than one hundred thousand dollars ($100,000.00), the
Department Head or designated staff shall engage Procurement
Services where appropriate.
4.2.5 The Department Head shall use the Procurement Document
templates approved and provided by Procurement Services.
4.2.6 The Department Head may request an Exemption from any or all of
the purchasing methods outlined in this policy by submission of a
request to Council.
4.2.7 The Department Head may refuse to enter into a Procurement
Agreement with a Supplier who has breached laws if the Department
Head believes it would not be in the best interest of the Municipality
to enter into a Procurement Agreement with a Supplier.
4.2.8 The Department Head shall exercise judgement in situations of
irregularity and is authorized to reject bids based on irregularities as
per Schedule "D" Irregularities Contained in Bids.
Page 12 of 43
4.2.9 Unless otherwise stated in this by-law or approved by Procurement
Services or the CAO, the Department Head shall ensure that all
Procurement Documents for Public Competitive Processes are
issued and received by electronic means using the Municipality's
Bidding System.
4.2.10 The Department Head is authorized to execute Procurement
Agreements on behalf of Council in a form approved by the
Municipality Treasurer where the Department Head is satisfied that
they are the Approval Authority as per Schedule "C" Procurement
Approval Authorities in the circumstances of the Procurement.
4.2.11 The Department Head is authorized to make Emergency Purchases
in any amount with CAO approval.
4.2.12 If a Department Head has made an Emergency Purchase, the
Department Head will present an information report to Council at the
earliest possible opportunity.
4.2.13 The Department Head shall report all procurement activities for
values of one hundred thousand dollars ($100,000.00) or greater
excluding taxes in a report to Council providing details of such
procurements for approval prior to awarding a contract.
4.2.14 The Department Head shall ensure that prior to the use of exceptions
to the Public Competitive Process with a value of one hundred
thousand dollars ($100,000.00) or greater they shall obtain the
approval of Municipality Council.
4.2.15 The Department Head shall submit invoices or accounts for goods,
services or construction to the Municipality Treasurer for payment.
Prior to submission, the Department Head shall sign each invoice or
account thereby denoting clerical accuracy and budgetary or specific
resolution approval. The signature of the Department Head is
deemed to authorize payment.
4.3
Municipality Treasurer
4.3.1 Reviews Procurements for approval where applicable as per
Schedule "C" of this Procurement by-law.
4.3.2 Participates in the Procurement Review Panel when necessary.
4.3.3 Reviews requests from Department Heads to appoint Purchasing
Designates for approval.
Page 13 of 43
4.3.4 Reviews requests for excess funds where applicable as per section
6.4 - Over Budget Bids.
4.3.5 Upon receipt of an invoice or account for goods, services or
construction signed by a Department Head the Municipality
Treasurer shall issue payment.
4.3.6 The Municipality Treasurer shall not issue payment for any goods,
services or construction that have not been authorized by Council in
the Annual Budget or by specific resolution.
4.3.7 Between the last regular meeting of Council in any year and the
adoption of estimates for the next year, the Municipality Treasurer is
authorized to pay invoices or accounts, which are, in their opinion,
ordinary business transactions required by a department to maintain
services. This shall include the payment of accounts or previously
approved capital items and projects.
4.4
Procurement Services
Middlesex County Procurement services shall operate a centralized
Procurement Services unit on behalf of the Municipality as requested.
Procurement Services will have the following responsibilities:
4.4.1 Assist in the Overall administration of the Procurement Policy.
4.4.2 Advise Department Heads on the appropriate Procurement Process.
4.4.3 Facilitate all procurements that involve a Public Competitive
Process.
4.4.4 Ensure requirements of applicable trade agreements, procurement
best practices, and legal precedent for Canadian public Procurement
matters are adhered to wherever necessary.
4.4.5 Prepares necessary Procurement Documents upon request.
4.4.6 Advise on the quality of specifications and requirements to ensure
department needs are met and to maximize fairness and
competition.
4.4.7 Advise and assist in the preparation of Procurement Agreements.
4.4.8 Educate those with authority or delegated authority to make
purchases on behalf of the Municipality on policies and procedures
as it pertains to the acquisition of goods and services.
Page 14 of 43
4.4.9 Act as the primary point of contact during the Procurement Process,
for Supplier performance reviews, debriefs, and complaints.
4.4.10 Assist the Municipality in maintaining records of Competitive
Procurement Processes identified in section 6.1.2 within the
Municipality's electronic filing system.
4.4.11 Where Municipality chooses not to utilize the County's Procurement
Services, the Municipality's Department Head making the
Procurement shall be responsible for their duties within this by-law.
4.5
Procurement Review Panel
4.5.1 For escalated or complex issues the Municipality shall form a
Procurement Review Panel consisting of the Municipality Treasurer,
Procurement Services, and the purchasing Department Head or their
respective designates.
4.5.2 The Procurement Review Panel's responsibilities may include but
are not limited to the reviewing and making decisions on the
following:
a)
Bid irregularities or other issues pertaining to a Bid (Schedule
"D");
b)
Escalated Procurement Process Complaints (section 18);
c)
Matters involving Supplier performance and suspension
(section 15).
5.
PROHIBITIONS
5.1
Splitting
THAT no purchase or contract for goods, services or construction shall be
divided to avoid the requirements of this by-law.
5.2
Intentional Delay
THAT no Department Head intentionally delays a purchase in order to avoid
use of a Procurement Process by means of an exception (section 6.9).
Page 15 of 43
5.3
Surplus Goods
THAT a Department Head, who declares goods surplus in accordance with
section 11 shall not bid or personally obtain any goods that they have
declared surplus.
5.4
Rewards
THAT every elected official and employee of the Municipality or member of
their family is expressly prohibited from accepting, directly or indirectly from
any Supplier or potential Supplier any rebate, gift or money, except:
a)
gifts of a very small intrinsic value;
b)
gifts given for the use and benefit of the Municipality;
c)
moderate hospitality during the normal course of business that would
not normally exceed what the Municipality would likely provide in
return and would not be perceived by others as influencing the
making of a business decision.
5.5
Conflict of Interest
THAT any elected official or employee shall declare to the Department
Head a potential conflict of interest and refrain from participating in a
Procurement Process where a conflict would be found or deemed to exist.
6.
PROCUREMENT PROCESSES
6.1
Required Procurement Processes
Unless otherwise indicated within this by-law, for all Procurements the
Department Head shall follow the Procurement Processes within this
section.
The standard Procurement Processes within this section and applicable
Approval Authorities identified in "Schedule C" are considered a minimum
requirement and utilizing a process of a greater Total Procurement Value
amount than the purchase being contemplated is advisable where it makes
good business sense.
Where applicable, the Department Head shall utilize the most up to date
Procurement Document.
Purchases and award of any Procurement must be contained within the
Annual Budget approved by Municipality Council with approval being
received by the applicable Approval Authority as prescribed in Schedule
"C".
Page 16 of 43
6.1.1 Low Value Purchase Process (Up to $24,999.99)
For Low Value Purchases with a Total Procurement Value amounting to
$24,999.99 or less excluding taxes Department Heads shall be authorized
to purchase directly from a Supplier without the requirement for multiple
quotes upon such terms and conditions as the Department Head deems
appropriate.
6.1.2 Competitive Procurement Processes ($25,000.00 or Greater)
Where the Total Procurement Value is equal to or greater than $25,000.00
excluding taxes the Department Head shall engage in a Competitive
Procurement Process as described below:
a)
General Competitive Procurement Process Requirements
Regardless of the form of Competitive Procurement Process utilized
the Procurement Notice issued shall contain the following:
i.
A clear description of the required goods, services or
construction being contemplated;
ii.
The timeframe for delivery of goods, services or
construction, or the duration of the contract;
iii.
The place where a Supplier may obtain additional
information required;
iv.
The place where inquiries and Bids are to be
submitted;
v.
The deadline for questions and submitting bids;
vi.
A statement that the Procurement is subject to this by-
law and the Trade Agreements defined herein.
b)
Advice and Consultation
Department Heads shall receive advice as necessary from
Procurement Services on the Procurement Process and shall follow
the current Procurement Documents provided by Procurement
Services for all Procurement Processes.
c)
Invitational Competitive Process ($25,000.00 - $99,999.99)
For the Procurement of a readily identifiable goods, services or
construction the Department Head shall issue Invitational
Competitive Process where the Total Procurement Value is equal to
or greater than $25,000.00 up to and including $99,999.99 excluding
taxes.
As part of the Invitational Competitive Process the Department Head
must receive a minimum of three Bids from potential Suppliers. The
Page 17 of 43
receipt of less than three different Suppliers may be approved by the
Municipality Treasurer where reasonable.
d)
Request for Tender "RFT" ($100,000.00 or Greater)
For a Procurement of a readily identifiable goods, services or
construction where the Total Procurement Value is equal to or
greater than $100,000.00 excluding taxes the Department Head
shall engage Procurement Services to issue a Request Tender or
"RFT".
A Procurement Notice for the RFT and the receipt of Bid submissions
must be orchestrated utilizing the Municipality's Bidding System. The
Department Head may choose to advertise the RFT on any medium
they deem appropriate.
With the greater Total Procurement Value, a form(s) of Bid and/or
Contract Security shall be considered on a case-by-case basis.
Bid pricing is posted publicly by the Municipality's Bidding System
immediately upon the deadline for submitting Bids.
e)
Request for Proposal "RFP" (Any Value)
For a Procurement in which comprehensive technical requirements
and specifications cannot be developed, the method or best method
to achieve solution has not been identified, and where there may be
multiple ways to achieve the required solution the Department Head
shall engage Procurement Services to issue a Request Proposal or
"RFP".
A Procurement Notice for the RFP and the receipt of Bid submissions
must be orchestrated utilizing the Municipality's Bidding System if the
Total Procurement Value is equal to $100,000.00 or greater. The
Department Head may choose to advertise the RFP on any medium
they deem appropriate.
Evaluation of an RFP can be a combination various metrics including
but not limited to capability, quality, and price. Procurement Services
shall use industry best practices to guide the Department Head to
determine the ultimate evaluation weightings and process.
The Procurement Notice shall include the following in addition to the
general requirements in section 6.1.2 a):
i.
A clear description of the scope of work and
deliverables that the Municipality is trying to achieve
through the RFP;
Page 18 of 43
ii.
The various evaluation stages such as an interview
and demonstration if applicable;
iii.
Transparent submission requirements and evaluation
criteria;
iv.
Anticipated timelines for the RFP evaluation process,
award, and contract deliverables.
6.2
Cooperative Purchasing
6.2.1 A Department Head is authorized to enter into arrangements with other
government bodies, ministries, agencies, boards, corporations, authorities,
entities or groups for the purchase of goods, services or construction using
Buying Groups and/or Piggybacking ventures where:
a)
the Procurement Documents created by the producing entity provide
permission for the Municipality to participate;
b)
the proposed use of the Procurement Documents of another entity is
within a timeframe authorized as set out in the Procurement
Documents created by the producing entity;
c)
The Department Head in their discretion, is convinced that the
Procurement Process used to obtain the entity's Procurement
opportunities provided for a fair and competitive process with equal
opportunity, equal treatment, and a fair process to all proponents,
sufficient to be relied upon by the Municipality;
d)
The Department Head, in their discretion, is convinced that use of
the Procurement Process of the producing entity will provide for best
value for the Municipality;
e)
The Department Head is convinced that the Municipality will meet its
obligations under the Trade Agreements should it use the Buying
Group or Piggybacking process; and:
f)
The Department Head, in their discretion, is convinced it is in the best
interest of the Municipality to rely upon the process produced by the
producing entity.
6.2.2 The Department Head shall seek the advice of Procurement Services prior
to the use of Buying Groups and Piggybacking;
6.2.3 The Department Head, at their own discretion, may seek to authorize a
cooperative purchasing venture; The Department Head, in a Municipality
produced Procurement Document, is authorized to allow other public
entities to Piggyback onto the Municipality produced Document, as a form
of Cooperative Purchasing, where:
Page 19 of 43
a)
the Procurement Document created provides for permission for other
entities to participate;
b)
the Procurement Document created provides for a clear timeline to
be used by another entity which in the opinion of the Department
Head, at their discretion, provides for a fair Procurement Process;
c)
The Procurement Document meets the Municipality's obligations
under the Trade Agreements;
d)
The Department Head, in their discretion, is convinced that use of
the Buying Group or Piggyback process of the producing will assist
in providing for best value for the Municipality, and;
e)
Appropriate release language is included in the Procurement
Document, which confirms the Municipality is not responsible for the
use of the Procurement Document and Municipality Procurement
Process by another entity.
6.3
Tied Bids
Where multiple Bids receive the exact same evaluation the following tie-breaking
process will occur to determine the successful Supplier:
6.3.1 Where the competitive Procurement was evaluated solely on low compliant
price such as an Invitational Competitive Process (section 6.1.2c) or
Request for Tender (6.1.2d), the tied Suppliers will be asked to resubmit
pricing through the original means of Bid submission within forty-eight (48)
hours of notification. Resubmitted pricing shall be equal to or less than the
original submitted price. If no resubmission or a higher priced than the
original submission is received as part of this process by a Supplier, they
will be removed from consideration when the competing Supplier(s) submit
a compliant resubmission. The lowest resubmission received shall be
deemed successful.
6.3.2 Where the competitive Procurement has evaluation criteria in addition to
price such as a Request for Proposal (section 6.1.2e) or a Pre-Qualification
of Suppliers (section 6.11), the Supplier with the higher evaluation score
when price is removed from the evaluation criteria shall be deemed
successful under the condition that the submission cost is below the Annual
Budget.
If the Bids in question are have identical evaluation scores with priced
removed from the evaluation criteria the Municipality shall request
Page 20 of 43
resubmission of pricing in the same manner prescribed in section 6.3.1. to
determine the successful Supplier.
6.3.3 If neither of the methods described in 6.3.1 and 6.3.2 are successful in
establishing an awarded Supplier the Department Head shall determine
whether to establish a successful Supplier by means of a coin flip where the
tied Suppliers are invited to attend in-person or virtually, or to re-issue the
applicable Procurement Process.
6.4
Over Budget Bids
For Procurements that result in the preferred Bid being above the budget approved
by Municipality Council additional funds may be granted at the discretion of the
applicable Approval Authority per the table below:
Preferred Bid's Amount Over Budget
Approval Authority
Up to and including $25,000.00
Municipality Treasurer
Greater than $25,000.00
Municipality Council
6.5
Emergency Purchases
6.5.1 When an event occurs that is determined by a Department Head or CAO to
be an imminent threat to the environment, life, or a threat to safety, public
health, the maintenance of essential Municipality services, the welfare of
persons or public property, the protection of the Municipality's physical
assets, or the security of the Municipality's interests and the occurrence
requires the immediate delivery of goods and/or services and time does not
permit conducting a Procurement Process to acquire such goods and/or
services the Department Head or CAO may make such a Procurement
without the involvement of Procurement Services or a Competitive
Procurement Process and is authorized to do so in the most expedient and
economical means possible. The Department Head or CAO will present a
report to Council at the following meeting regarding the Emergency
Purchase.
6.5.2 In case of a declared emergency the Municipality's Emergency Response
Plan will supersede this policy.
6.6
Non-use of Procurement Processes
A Department Head is not required to use the Procurement Process identified in
section 6, where the following sections of this policy apply:
Page 21 of 43
6.6.1 Section 6.9, "Exceptions to the Procurement Processes";
6.6.2 Section 7, "Non-application"; and Section 8, "Exemptions."
6.7
Procurement Agreements
The applicable Approval Authority as per Schedule "C" Procurement Approval
Authorities shall execute Procurement Agreements between the Municipality and
a Supplier in a form approved by the Municipality Treasurer.
6.8
Negotiation
Procurement Services and/or Department Heads are hereby authorized to conduct
negotiations with potential Suppliers following a Procurement Process where:
6.8.1 The intent to conduct negotiations is included in the Procurement Notice.
6.8.2 It appears from the evaluation that no Bid is clearly the most advantageous
in satisfying the specific evaluation criteria set out in the Procurement Notice
or Procurement Documents.
6.8.3 The Purchasing Authority shall ensure that any elimination of potential
Suppliers participating in negotiations is carried out in accordance with the
evaluation criteria set out in the Procurement Notice or Procurement
Documents.
6.8.4 The Purchasing Authority shall ensure that where negotiations are
concluded a common deadline for the remaining participating Suppliers to
submit any new or revised Bids is provided.
6.9
Exceptions to Procurement Processes
6.9.1 In the following circumstances, a Department Head may make purchases,
of any dollar amount, upon such terms and conditions, as the Department
Head deems appropriate, subject to receiving approval from the appropriate
Approval Authority identified in Schedule "C":
a)
Where a Procurement Process has been conducted and:
i. No Bids were submitted;
ii. No Bids that conform to the essential requirements of the
Procurement Documents were submitted;
iii. No Suppliers satisfied the conditions for participation; or
iv. The submitted Bids were collusive.
b)
Where a particular Supplier can only supply the goods or services
and no reasonable alternative or substitute goods or services exist
for any of the following reasons:
Page 22 of 43
i. The requirement is for a work of art;
ii. The protection of patents, copyrights, or other exclusive
rights; or
iii. Due to an absence of competition for technical reasons.
c)
Where additional deliveries by the original Supplier of goods or
services that were not included in the initial procurement are
required, if a change of Supplier of such additional goods or services:
i. Cannot be made for economic or technical reasons; and
ii. Would cause significant inconvenience or substantial
duplication of costs for the Municipality.
d)
When the extensions of an existing contract would prove more-cost
effective or beneficial if the change of Supplier would cause
significant inconvenience or duplication of costs.
e)
If strictly necessary, and for reasons of urgency brought about by
events unforeseeable to the Department Head, the goods or services
cannot be obtained in time using a Value Based Procurement
Process.
f)
If the procurement is for a prototype or a first good or service that is
developed in the course of, and for, a particular contract for research,
experiment, study, or original development.
g)
For purchases made under exceptionally advantageous conditions
that only, arise in the very short term in the case of unusual disposals
such as those arising from liquidation, receivership, or bankruptcy.
h)
If a contract is awarded to a winner of a design contest provided that:
i. The contest has been organized in a manner that is consistent
with the principles of this by-law, in particular relating to the
publication of a Procurement Notice; and
ii. The participants are judged by an independent jury with a view
to a design contract being awarded to a winner.
i)
If goods or consulting services regarding matters of a confidential or
privileged nature are to be purchased and the disclosure of those
matters through an open tendering process could reasonably be
expected to compromise government confidentiality, result in the
waiver of privilege, cause economic disruption, or otherwise be
contrary to the public interest.
6.9.2 Prior to the purchase or award under the circumstances in the section above
the Department Head shall obtain approval from the applicable Approval
Authority identified in Schedule "C".
Page 23 of 43
6.10 On-going Services and Contracts
The Municipality has on-going services and in force contracts with various Suppliers
where overly frequent Procurement is detrimental to the Municipality. The following
services are exempt from this by-law but will be procured at the discretion of Council:
6.10.1
Audit Services
6.10.2
Banking Services
6.10.3
Provision of Property and Liability
6.10.4
Employee Benefits
6.10.5
Existing Software Licensing
6.10.6
Maintenance and Cleaning Contracts
6.10.7
Counseling and Employment Assistance Services
6.10.8
Municipal Property Liability
6.10.9
Cyber Insurance
6.10.10
Other services as approved by Council.
6.11 Pre-Qualification of Suppliers
6.11.1 In situations where a Department or multiple Departments require the same
type of good, service or construction, or otherwise wishes for a procurement
to be Pre-Qualified, the Department Head may issue. A Pre-Qualification
Notice to establish a list of Pre-Qualified Suppliers prior to initiating a
Procurement Process for said goods, services, or construction, on a regular
or recurring basis.
6.11.2 Where a Department Head determines that a List of Pre-Qualified Suppliers
is desirable for a particular category of goods, services or construction, they
may issue a Request for Supplier Qualifications to gather information on
Supplier capabilities and qualifications.
6.11.3 Whereby means of a Public Procurement Process, a Request for Supplier
Qualifications for a particular category of goods, services or construction,
and has established a List of Prequalified Suppliers, the Department Head
may limit future Procurement Processes for goods, services or construction
in that category to the Suppliers included on the list.
6.11.4 A List of Pre-Qualified Suppliers is valid for a period of no longer than three
(3) years, upon expiry of which the Department Head may issue a Request
of Pre-Qualification to establish a new List of Pre-Qualified Suppliers for that
particular category of goods, services or construction.
Page 24 of 43
6.11.5 A request for Supplier Qualifications must be conducted in the same
manner as section 6.1.2.e "Request for Proposal" in addition to the
following:
a)
A statement notifying Suppliers that by making a submission they are
agreeing to be included on a List of Pre-Qualified Suppliers for the
purposes of future Procurements of the aforementioned goods,
services or construction;
b)
A statement notifying Suppliers of the time frame for which the List
of Pre-Qualified Suppliers will be valid and that during said period
further requests will not be published;
c)
A statement notifying Suppliers that during the period of validity only
those Suppliers on the List of Pre-Qualified Suppliers will receive
notice of Procurement of the category of goods, services or
construction for which the Request for Supplier Pre-Qualification was
issued;
d)
A statement clearly identifying how engagement of the successful
Pre-Qualified Suppliers is to be conducted if different than the
process laid out in section 6.1.2 "Competitive Procurement
Processes."
6.11.6 All submissions shall be evaluated using the criteria and methodology set
out in the Procurement Documents
6.11.7 Submission details are to be maintained in accordance with the
Municipality's Retention by-law.
6.11.8 Department Heads shall submit a report to Municipality Council for approval
to award all Pre-Qualification of Suppliers.
6.12 Revenue Generating Contracts
6.12.1 The issuance of a Procurement and approval of award of a Revenue
Generating Contract of any value requires the approval of the CAO.
6.12.2 Award of a Revenue Generating Contract greater than $50,000.00 shall
require Municipality Council approval.
7.
NON-APPLICATION
7.1
This policy does not apply to the following:
7.1.1 Municipality employment contracts;
Page 25 of 43
7.1.2 The acquisition of real property rights, excluding services related to
obtaining the property rights;
7.1.3 Any form of assistance, such as grants, loans, equity infusions,
surveys required for real estate matters, guarantees, and fiscal
incentives;
7.1.4 The acquisition or rental of land, existing buildings, or other
immovable property or the rights thereon;
7.1.5 The Procurement or acquisition of:
a)
Fiscal agency or depository services;
b)
Liquidation and management services for regulated financial
institutions; or
c)
Services related to the sale, redemption, and distribution of
public debt, including loans and government bonds, nots, and
other securities.
d)
Financial services respecting the management of government
financial assets and liabilities (i.e. treasury operations),
including ancillary advisory and information services, whether
or not delivered by a financial institution;
e)
Health services or social services;
f)
Services that may, under applicable law, only be provided by
licensed notaries;
g)
The procurement or goods, services or construction financed
primarily from donations that require the procurement to be
conducted in a manner inconsistent with this by-law;
h)
Procurement
between
the
Municipality
and
another
government body or enterprise;
i)
Procurement
from
philanthropic
institutions,
non-profit
organizations, prison labour, or natural persons with
disabilities.
8.
EXEMPTIONS
8.1
The following Procurements are exempt from this by-law:
8.1.1
Purchases for consulting services for a program where services
(i.e. Bridge inspection/evaluation) have been awarded to a
consulting firm on an on-going basis, where clearly identified in the
budget;
8.1.2
Purchases for the supply and placement of road material
throughout the Municipality of Strathroy-Caradoc not to exceed
$100,000.00 (excluding tax) when clearly identified in the budget;
Page 26 of 43
8.1.3
For goods purchased on a commodity market;
8.1.4
Purchases for on-going contracts;
8.1.5
Purchases requiring special payments (i.e. refundable expenses,
general employer expenses, tax payments);
8.1.6
Purchases relating to training and education (i.e. catering,
conferences, literature, offsite training, honorariums);
8.1.7
Purchases relating to real property (i.e. Licenses, easements,
leasehold improvements);
8.1.8
Fees for expert, specialized, professional services where the
subject matter is deemed to be either time sensitive and/or/
confidential by the CAO;
8.1.9
When, due to market conditions and in the judgement of
Department Heads, goods are in short supply;
8.1.10 Purchases of replacement parts, where the original equipment
manufacturer is the sole provider of that equipment; and
8.1.11 Any other Procurement deemed exempt by Council.
9.
PROCUREMENT CONTRACT AMENDMENTS TO ADD GOODS OR
SERVICES
9.1
Department Heads are authorized to amend Procurement Agreements to
add goods or services and increase the procurement value without a further
competitive process, provided:
a) sufficient funds are available in the Annual Budget; and
b) the Procurement Agreement includes an option to add the specific
goods or services.
9.2
A Procurement Agreement that does not include an option to add the
required goods or services may only be amended to add the goods or
services if an Exception or Exemption applies or with Municipality Council
approval.
10.
RENEWAL OR EXTENSION OF PROCUREMENT CONTRACTS
10.1 Department Heads are authorized to renew or extend Procurement
Agreements, without a further competitive process, provided: (a) sufficient
funds are available in the Annual Budget; and (b) the Procurement
Agreement includes an option to renew or extend.
Page 27 of 43
10.2 A Procurement Agreement that does not include an option to renew or
extend may only be renewed or extended if an Exception or Exemption
applies.
11.
DISPOSAL OF SURPLUS GOODS
11.1 The Department Head is hereby authorized to declare goods as surplus
and/or obsolete.
11.2 When no other use can be found for surplus or obsolete goods in other
Departments, they shall be added to the surplus list and at the discretion of
the Department Head, disposed of through public auction or in whatever
manner the Department Head deems to be is in the best interest of the
Municipality.
11.3 "Goods" does not include real property interests.
12.
SUPPLIER CODE OF CONDUCT
12.1 Supplier Responsibilities
a)
Suppliers participating in a Procurement Process shall:
i.
Respond to the Municipality's requests for participation in an
honest, fair and comprehensive manner that accurately
reflects their capacity to satisfy the requirements of the
procurement;
ii.
Submit a Bid only if they know they can satisfactorily perform
all obligations of the contract in good faith;
iii.
Maintain confidentiality of any confidential Municipality
information disclosed to the Supplier as part of the
Procurement Process;
iv.
Declare and fully disclose any actual or potential conflict of
interest in the performance of the contract; and
v.
Honour their Bid, except where they are permitted to withdraw
their Bid in accordance with the Procurement Documents.
b)
Suppliers participating in a Procurement Process shall not:
i.
Refuse to enter into a contract or refuse to fully perform the
contract once their bid has been accepted by the Municipality;
ii.
Threaten, intimidate, harass or otherwise interfere with any
Municipality employee or public office holder in relation to their
procurement duties; or
iii.
Offer gifts, favours or inducements of any kind to Municipality
employees or public office holders, or otherwise attempt to
Page 28 of 43
influence or interfere with their duties in relation to the
Procurement Process;
iv.
Suppliers shall fully perform their contracts with the
Municipality and follow any reasonable direction from the
Municipality to cure any default.
13.
DISQUALIFICATOIN OF SUPPLIERS FOR NON-COMPLIANCE
13.1 Any contravention of the Supplier Code of Conduct as prescribed in section
12 by a Supplier may be grounds for the Municipality to:
13.1.1 Disqualify a Supplier from the Procurement Process; and/or
13.1.2 Suspend a Supplier's eligibility to participate in any Procurement
Process as per the Supplier Suspension Procedure (Schedule "B").
13.2 The Municipality may also disqualify any Supplier where:
13.1.1 There is a conflict of interest that cannot be resolved in relation to
any Procurement;
13.1.2 There have been significant or persistent deficiencies in the
Supplier's performance of any substantive requirement or obligation
under a prior Procurement Agreement, whether or not the prior
Procurement Agreement included a Performance Evaluation
process as contemplated by section 15 of this by-law;
13.1.3 The Supplier is indebted to the Municipality; or
13.1.4 The Supplier has a current dispute with the Municipality;
13.1.5 The Supplier has received a poor vendor performance review or has
been suspended as per the Supplier Suspension Procedure
(Schedule "B");
13.1.6 The Supplier has exhibited behavior that is no longer be in the best
interest of the Municipality.
14.
LEGAL CLAIMS
14.1 Notwithstanding any other provision of this policy, no tender, proposal, or
quotation will be accepted from any company which has a claim or instituted
a legal proceeding against the Municipality or against whom the municipality
has a claim or instituted a legal proceeding with respect to any previous
contract, without prior approval by Council.
14.2 Section 14.1 above is grounded on the basis that it is unreasonable for the
Municipality, as a municipality with the capacity, rights, powers and
privileges of a natural person, to be compelled to enter into a Procurement
Agreement with a Supplier with whom it has a dispute.
15.
SUPPLIER PERFORMANCE EVALUATION
Page 29 of 43
15.1 In accordance with the Supplier Performance Evaluation Procedure
(Schedule "A"), a Department Head may institute a Performance Evaluation
or Vendor Performance Incident Report for any Procurement Agreement or
engagement.
15.2 In the event that a Performance Evaluation or Vendor Performance Incident
Report is conducted, the Department Head shall use the templates provided
by Procurement Services.
15.3 Where an evaluation of Supplier performance is completed, the Supplier
shall be notified and given the opportunity to respond as per the Supplier
Suspension Procedure prescribed in "Schedule B".
15.4 Where an evaluation of Supplier performance is completed and the results
are unsatisfactory, the Department Head shall follow the Supplier
Suspension Procedure prescribed in "Schedule B".
15.5 The results of any Performance Evaluation may be disclosed to other
municipalities or government bodies upon request, where it can be
demonstrated that the Supplier has listed the Municipality as a work
reference.
15.6 Any Performance Evaluation may be shared with the Corporation of the
County of Middlesex and the County's other lower tier municipalities if the
applicable Procurement Documents state such at the time of the
Procurement Process.
16.
MUNICIPALITY CODE OF CONDUCT AND CONFLICT OF INTEREST
16.1 No Council member or employee of the Municipality shall purchase or offer
to purchase on behalf of the Municipality any goods, services or
construction except in accordance with this policy.
16.2 No Council member or employee of the Municipality may purchase goods,
services or construction for personal use through the Corporation unless
authorized by Council or the Department Head and the CAO.
16.3 All Procurements of goods, services and construction described in this by-
law are subject to the requirements of the following policies of the
Municipality and to Ontario legislation, as may be applicable, including but
not limited to the following:
16.3.1
The Employee Code of Conduct
16.3.2
The Code of Conduct for Members of Council of the Municipality
of Strathroy-Caradoc
16.3.3
The Municipal Conflict of Interest Act and
16.3.4
The Municipal Act, 2001.
Page 30 of 43
17.
LOBBYING RESTRICTIONS
17.1 The Municipality may reject any bid by a Supplier that engages in lobbying
and may terminate the Supplier's right to continue in the Procurement
Process.
17.2 Suppliers, their staff members, and anyone involved in the Procurement
Process shall not engage in any form of lobbying or attempt to influence the
outcome of the Procurement Process. This restriction extends to all of the
employees or appointed officers of the Municipality and members of
Council.
17.3 Suppliers engaged in any lobbying may be suspended from participating in
Municipality Procurement Processes as per the Supplier Suspension
Procedure "Schedule A".
18.
PROCUREMENT PROCESS COMPLAINTS
18.1 Purchasing Authorities shall ensure that there is a dispute resolution clause
in the Procurement Document:
18.1.1 Suppliers shall have the ability to submit a complaint to Procurement
Services or designate in writing or email within thirty (30) days
following the Award Date of the applicable Procurement Process
18.1.2 Procurement Services or designate will provide a response in
writing or email. If the Supplier is not satisfied with the response,
within seven (7) days of the response, they have the ability to
request that the matter be escalated to the Procurement Review
Panel for response.
18.2 Suppliers from other Provinces shall be provided with the same rights and
privileges to challenge Procurement decisions as Suppliers in Ontario.
19.
DEBRIEFS
A Supplier with an unsuccessful submission for a Request for Proposal may
request a debrief from Procurement Services within fourteen (14) days of the
Award Date. Bid debriefs will strictly cover the evaluation scores received for only
that particular Supplier and any notes the evaluators may have provided during the
evaluation process.
20.
GREEN PROCUREMENT
Page 31 of 43
20.1 Subject to budgetary and operational requirements, the Municipality will
endeavour to acquire goods and/or services that minimize impacts on the
environment and perform efficiently and effectively. While evaluating goods
and/or services for a Procurement (including all aspects related to the
production, transportation, operational use, and replacement or disposal of
goods) the following environmental factors may be considered in addition
to the specific requirements of the goods and/or service:
a) durable and reusable, as opposed to single use or disposable items.
b) non-toxic
or
least
toxic
option,
preferably
compostable
or
biodegradable.
c) reduce greenhouse gas and air pollutant emissions.
d) ENERGY STAR® rated if available or most energy-efficient option.
e) recyclable, safely disposable or taken back by the Vendor at its end of
life.
f) made from recycled materials.
g) raw materials, if any, used in making the good be obtained and
manufactured in an environmentally sound, sustainable manner.
h) results in minimal or no environmental damage during normal use or
maintenance.
i) packaging and shipping material to be minimal (consistent with the care
of the goods) and preferably made of reusable, recycled or recyclable
materials; and
j) the lifecycle cost of the good through the acquisition, operation, and
end of life, including environmental impacts.
21.
ACCESSIBLITY
21.1 Procurement of Goods, Services and Facilities
As required by the Accessibility for Ontarians with Disabilities Act (AODA),
2005, as amended, when acquiring or procuring goods, services, and
facilities, the Municipality must incorporate accessibility criteria and
features, and will do so as early as possible in the procurement process.
Where it is not practicable to do so, an explanation must be provided upon
request, in accordance with the Municipality's Procurement Policy. Ensuring
accessibility is incorporated into all procurement activities is the primary
responsibility of the departments/divisions who manage these activities and
contracts.
22.
SEVERABILITY
22.1 Each section of this by-law is distinct and severable. If any section of this
by-law, in whole or in part, is or becomes illegal, invalid, void, voidable or
unenforceable in any jurisdiction by any court of competent jurisdiction, the
illegality, invalidity or unenforceability of that section, in whole or in part, will
not affect:
Page 32 of 43
22.2 The legality, validity or enforceability of the remaining sections of this by-
law, in whole or in part; or
22.3 The legality, validity or enforceability of that section, in whole or in part, in
any other jurisdiction.
23.
EFFECTIVE DATE
23.1 By-law No. 105-24 is repealed effective on April 20, 2026.
23.2 This Procurement Policy shall come into force and take effect on April 20,
2026.
Page 33 of 43
SCHEDULE "A": SUPPLIER PERFORMANCE EVALUATION PROCEDURE
1. Purpose and Interpretation
The purpose of this procedure is to establish a Performance Evaluation process in order
to evaluate Supplier performance in a transparent and consistent manner. Supplier
performance is critical to the success of procurement projects. Poor workmanship,
unnecessary contract delays and unsafe work practices will not be tolerated.
Defined terms used in this procedure have the meaning assigned in the Definitions within
section 2 of the Municipality's Procurement by-law.
2. Performance Evaluation
Where a Department Head or designate wishes to conduct any form of Performance
Evaluation, they shall inform Procurement Services of such and utilize the evaluation
template provided upon notification.
(a) Interim Evaluation
The Department Head may choose to formally evaluate the Supplier's performance and
complete the applicable Interim Performance Evaluation Report prior to the renewal or
extension of the contract, if applicable, and may formally evaluate the Supplier's
performance and complete an Interim Performance Evaluation Report at any time during
the term of the contract, as determined by the Department Head taking into account the
nature, complexity, value and length of the contract.
(b) Final Evaluation
The Department Head may choose to formally evaluate the Supplier's performance and
complete the Final Performance Evaluation Report upon completion, expiration or
termination of the contract.
3. Incident Reports
Specific incidents of poor performance, in particular any incidents related to the health
and safety matters, should be recorded at the time of occurrence or discovery. The
Incident Report form provided by Procurement Services may be used for this purpose.
Email correspondence and/or notes to file (whether in physical or digital format), may also
be used to record details of performance issues and incidents. A copy of the incident
report should be provided to Procurement Services and the Supplier and, where possible,
the Supplier's acknowledgement of the incident should be obtained.
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4. Interim Performance Evaluation Report
(a) Notification of Supplier
If completed, Procurement Services on behalf of the Department Head will notify the
Supplier of its overall performance rating and provide the Supplier with a copy of the
completed and signed Interim Performance Evaluation Report.
(b) Performance Issues
If the Supplier receives a "Unsatisfactory" rating on any of the rated criteria in the Interim
Performance Evaluation Report, Procurement Services, as well as any other Municipality
Staff or hired professional service (i.e.. Consultant, Engineer) will correspond with the
Supplier to clearly identify and discuss the performance issues, determine the corrective
action that will be taken to rectify and avoid recurrence of the performance issues, and
obtain the Supplier's agreement to take the corrective action within a specified time
period.
Following the above noted correspondence, Procurement Services will confirm the details
and outcome of the discussion in writing to the Supplier and will attach a copy of the
written record to the Interim Performance Evaluation Report.
If the performance issues are not rectified or if there is a recurrence of the performance
issues Procurement Services and the Department Head shall determine next steps.
5. Final Performance Evaluation Report
(a) Performance Issues
If the Supplier receives a "unsatisfactory" rating on any of the rated criteria in the Final
Performance Evaluation Report, Procurement Services shall communication such with
the Supplier and will consider any comments or explanations provided by the Supplier in
the finalization of the Final Performance Evaluation Report.
(b) Recommendation Based on Performance
Based on the final rating of the criteria in the Final Performance Evaluation Report, the
Department Head in conjunction with Procurement Services will make a recommendation
to either:
- allow the Supplier to continue participating in future Procurement Processes; or
- suspend the Supplier from participating in future procurement processes for a
period of up to ten (10) years in accordance with the Supplier Suspension
Procedure (Schedule "B").
(c) Recommendation for Continued Participation
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If the evaluation results in a recommendation to allow the Supplier to continue
participating in procurement processes, Procurement Services will notify the Supplier of
its final rating and the resulting recommendation and provide the Supplier with a copy of
the completed and signed Final Performance Evaluation Report.
(d) Recommendation to Suspend
If the evaluation results in a recommendation to suspend the Supplier from participating
in future Procurement Processes in accordance with the Supplier Suspension Procedure
(Schedule "B"), the following steps must be taken:
(i) Review by Procurement Services
The Department Head will submit the Final Performance Evaluation Report to
Procurement Services for review. Procurement Services will ensure that the Final
Performance Evaluation Report is complete, will discuss the ratings with the
Department Head, and will ask the Department Head to confirm that the Final
Performance Evaluation Report accurately reflects the Supplier's performance.
(ii) Preparation of Suspension Recommendation Report
The Department Head and Procurement Services will prepare the Suspension
Recommendation Report in accordance with the Municipality's Supplier
Suspension Procedure (Schedule "B").
(iii) Notification of Supplier
Upon approval to proceed from the CAO or Deputy CAO, in accordance with the
Supplier Suspension Procedure (Schedule "B"), Procurement Services will notify
the Supplier of the decision to recommend suspension and will provide the
Supplier with a copy of the Suspension Recommendation Report, attaching the
completed and signed Final Performance Evaluation Report. The notice will advise
the Supplier of the Supplier Suspension Procedure and the opportunity to respond
to the decision to recommend suspension.
6. Decision to Suspend
The decision with respect to suspension of the Supplier will be made in accordance with
the Supplier Suspension Procedure (Schedule "B"). The completed Final Performance
Evaluation Report will be attached to the Suspension Recommendation Report. A
decision under the Supplier Suspension Procedure is final.
7. Retention of Evaluation Reports
The Department Head will retain all original Interim and Final Performance Evaluation
Reports and will provide Procurement Services with a copy of each Performance
Evaluation Report. Procurement Services will retain copies of all Interim and Final
Performance Evaluation Reports.
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8. Disclosure of Results to Others
The results of any Performance Evaluation Processes are intended to be disclosed
internally across Municipality departments and may be disclosed to other government
bodies upon request and to any entity for which it can be demonstrated that the Supplier
has listed the Municipality as a reference or to any of the Municipality's lower tier
municipalities if the related procurement in regards to the contract stipulates such.
9. Consideration of Performance in Evaluation of Bids
The Municipality may consider documented past performance evaluation results in the
evaluation of future bids from the Supplier, whether or not the past performance resulted
in suspension in accordance with the Supplier Suspension Procedure and, may exclude
a Supplier based on significant or persistent deficiencies in past performance.
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SCHEDULE "B": SUPPLIER SUSPENSION PROCEDURE
1. Purpose and Interpretation
The purpose of this procedure is to set out the process for suspending Suppliers from
participation in the Municipality's Procurement Processes. Defined terms used in this
procedure have the meaning assigned in the Definitions within section 2 of the
Municipality's Procurement by-law.
2. Application
In order to ensure that the Municipality is receiving quality deliverables and value for
public money and is dealing with Suppliers that conduct business in a professional and
ethical manner, the Municipality may suspend Suppliers from participating in its
Procurement Processes for prescribed periods of time.
A decision to suspend a Supplier must be made in accordance with this procedure, must
be supported by evidence and must be based on the reasons and factors set out below.
Suppliers are responsible for any employees, representatives, agents or subcontractors
that are acting on their behalf and all references to the actions or conduct of the Supplier
under this procedure include the actions of any individual or entity acting on behalf of the
Supplier.
3. Reasons for Suspension
(a)
Crimes or Offences
If a Supplier is convicted of serious crimes or other serious offences, including bid-
rigging, price-fixing or collusion, fraud or other statutory offenses, the Municipality
will suspend that Supplier from participating in future Procurement Processes.
(b)
False Declarations
If a Supplier includes false or misleading information in its Bid the Municipality may
suspend that Supplier from participating in future Procurement Processes.
If a Supplier fails to disclose a conflict of interest in connection with a Procurement
Process or during the performance of a contract with the Municipality, and the
Municipality subsequently discovers that such a conflict of interest exists, the
Municipality may suspend that Supplier from participating in future Procurement
Processes.
The following non-exclusive factors should weigh in favour of suspension:
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The Supplier knowingly made misrepresentations or failed to disclose a conflict
of interest.
The misrepresentation or undisclosed conflict of interest resulted in the
Supplier having an unfair advantage or otherwise compromised the integrity of
the Municipality's Procurement Process.
(c)
Poor Performance
If a Supplier performs inadequately under a contract with the Municipality, the
Municipality may consider suspending that Supplier in any of the following
circumstances, providing adequate and supporting documentation is available as
per the Supplier Performance Evaluation Procedure (Schedule "A"):
(a) The deficiencies in performance were significant or persistent.
(b) The contract was terminated for performance issues prior to expiry.
(c) There were unrectified performance issues on a contract that resulted in extra
costs to the Municipality.
(d) The deliverables provided were defective or deficient, and either were not
replaced or repaired, or required multiple repairs.
(e) The Municipality brought a litigation proceeding against the Supplier in
connection with performance or non-performance of the Supplier's contractual
obligations.
(f) The suspension of the Supplier has been recommended in accordance with the
Municipality's Supplier Performance Evaluation Procedure (Sc A).
(d)
Professional Misconduct or Lack of Commercial Integrity
The Municipality may suspend a Supplier for professional misconduct or acts or
omissions that adversely reflect on the commercial integrity of the Supplier. Such
conduct includes, but is not limited to:
(a) unethical bidding practices, such as inappropriate offers of gifts to the
Municipality's officials, officers, employees or agents and inappropriate in-
process lobbying or prohibited communications during a Procurement Process.
(b) failing to perform contracts in a professional and competent manner in
accordance with the duty of honest performance and all applicable laws,
including safety and labour codes; and
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(c) engaging in litigious conduct or bringing frivolous or vexatious claims in
connection with the Municipality's Procurement Processes or contracts,
including but not limited to, unreasonable cost or expense claims or
unsubstantiated allegations impugning the integrity of the purchasing institution
or its staff in relation to a Procurement Process.
(d) Violation of the "Supplier Code of Conduct" as prescribed in section 12 of the
Municipality's Procurement by-law.
(e) Violation of section 17 "Lobbying Restrictions".
4. Process for Suspension
(a)
Suspension Recommendation Report
Any decision to suspend a Supplier must be supported by a written Suspension
Recommendation Report that contains all details connected with the analysis of
factors set out above.
The Suspension Recommendation Report will be provided by Procurement
Services and prepared by the applicable Department Head.
(b)
Length and Scope Suspension
The Suspension Recommendation Report must include the recommended length
and scope of the suspension.
The length of the suspension period should be proportional to the reasons for the
suspension and, in most cases, should not exceed a maximum of five (5) years. In
the most serious of cases involving convictions criminal or quasi-criminal offences,
a suspension period of up to ten (10) years may be considered.
The scope of the suspension can be either a blanket suspension for all
Procurement Processes or a suspension limited to Procurement Processes for
specific deliverables.
The scope of the suspension can apply to both corporate entities as well as
individuals.
(c) Supplier Notification and Opportunity to Respond
Procurement Services will notify the Supplier of the decision to recommend
suspension and will provide the Supplier with a copy of the Suspension
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Recommendation Report setting out the reasons for the suspension. The notice
will advise the Supplier of its opportunity to respond to the recommendation for
suspension by sending written submissions to Procurement Services within 10
business days of the date of the notice.
(d)
Decision of Procurement Review Panel
All decisions to suspend a Supplier must be approved by the Municipality's
Procurement Review Panel ("PRP"). The PRP is established in accordance with
the Municipality's Procurement by-law.
In making its decision, the PRP will consider the Suspension Recommendation
Report and any response submitted by the Supplier.
The PRP may seek any additional information it requires and may consult with
other staff, legal counsel or other advisors, as necessary.
(e)
Notice of Decision
The Supplier must be notified, in writing by mail and/or email, of the final
suspension decision made by the PRP.
If the recommendation for suspension is approved, the notification letter must
contain:
(a) the length of the suspension period and the scope of the suspension;
(b) full details as to the reasons for the suspension, including copies of any
documents or correspondence to support such a suspension; and
(c) notice of the Supplier's right to apply for reinstatement within the prescribed
time period and the process for requesting such a reinstatement.
5. Application for Reinstatement
A suspended Supplier may apply for reinstatement upon the completion of half of the
original suspension period. For example, if the original suspension period was two
years, the Supplier may apply for reinstatement after one year.
In order to apply for reinstatement, the Supplier must submit a written case for
reinstatement to Procurement Services, including supporting documentation, if
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necessary, that provides reasons why the original reason for the suspension would no
longer prove a risk for the Municipality.
(a) Applications for reinstatement are to be reviewed by the PRP. If the PRP
determines that allowing the Supplier the opportunity to participate in the
Municipality's Procurement Processes would no longer expose the Municipality to
risk, then the application for reinstatement may be approved.
(b) The Supplier must be notified, in writing by mail and/or email, of the final
reinstatement decision made by the PRP.
6. Suspended Suppliers List
Procurement Services must maintain an up-to-date and current list of all suspended
Suppliers. Any Supplier that is owned or controlled by the same individual(s) that
owned or controlled a suspended Supplier at the time it was suspended is also
considered suspended.
The list should contain, at a minimum:
(a) the full name of the Supplier or individual, where an individual is suspended;
(b) the names of the directors and officers of the Supplier, if applicable;
(c) the reasons for the suspension;
(d) the scope of the suspension (i.e. blanket suspension or specific deliverables); and
(e) the length of the suspension period and the date of the expiry of the suspension
period.
For any competitive Procurement Process, Procurement Services and/or must check
the suspended Suppliers list to ensure that bids are not accepted from suspended
Suppliers.
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SCHEDULE "C": PROCUREMENT APPROVAL AUTHORITIES
Procurement Approval Authorities
Procurement
Process
Total
Procurement
Value
By-Law
Section
Council
Approval
Required?
Approval
Authority
Low Value
Purchase
$0.00 to
$24,999.99
6.1.1
No
Department Head
Invitational
Competitive,
Request For
Proposals,
Cooperative
Purchasing
$25,000.00 to
$99,999.99
6.1.2 c)
6.1.2 e)
6.2
No
Department Head
Request For
Tenders,
Request For
Proposals,
Cooperative
Purchasing
$100,000.00 or
Greater
6.1.2 d)
6.1.2 e)
6.2
Yes
Council
Pre-Qualification
of Suppliers
Any Value
6.11
Yes
Council
Exceptions to
the Procurement
Process
Greater than
$20,000.00
6.9
Yes
Council
Emergency
Purchase
Any Value
6.5
Yes
CAO (Prior to
Purchase)
Council (Following
Purchase)
Revenue
Generating
Contracts
$0.00 to
$50,000.00
6.12
No
CAO
Greater than
$50,000.00
Yes
Council
Page 43 of 43
SCHEDULE "D": IRREGULARITIES CONTAINED IN BIDS
IRREGULARITIES
RESULT
Bids received after the submission
deadline
Automatic Rejection.
Bidding system will not receive late Bids.
Incomplete, illegible, or obscure bids
Automatic Rejection
Submissions in which all necessary
addenda have not been acknowledged.
Bidding System does not accept bids that
have not acknowledged all addenda
Failure to attend a mandatory site visit.
Automatic Rejection
Conditions placed by the supplier on the
submitted contract price that were not
granted by the Municipality previously.
Automatic Rejection
Bids containing minor mathematical
errors.
The Municipality has the right to correct
or request clarification on minor
mathematical errors.
Part bids (all required items not in bids)
Automatic Rejection unless allowed for by
the Municipality prior to submission
Performance Security:
Insufficient Performance Security (no or
insufficient bonds or agreement to bond)
Signature of bidder and/or bonding
company missing when bond or
agreement to bond requested.
Automatic Rejection
Withdrawal of Bids
Withdrawal of bids received after the
closing time will not be allowed.
Other minor irregularities
Procurement Services, in conjunction with
Department Head and Treasurer, shall
have the authority to waive irregularities,
which they jointly consider to be minor.