HomeMy WebLinkAboutPUR 010 Purchasing PolicyC4 4
PICKERING
Policy
Procedure Title: Purchasing Policy
Policy Number
PUR 010
Reference
Municipal Act, 2001, S.270
Resolution #136/01
Resolution #166/11
Resolution #68/12
Resolution #125/16
Resolution #240/20
Date Originated
(m/d/y)
November 5, 2001
Date Revised (m/d/y)
October, 2011
May 22, 2012
January 18, 2016
February 24, 2020
Pages
24
Approval: Chief Administrative Officer
Point of Contact
Manager, Supply & Services
Policy Objective
Through the City of Pickering's Corporate Priorities process, two key priorities recognized are
Financial Management and Corporate Best Practices. In light of these stated Corporate
Priorities, the City is committed to provide leadership, quality service delivery, and the best value
to our taxpayers through the provision of fair, transparent, competitive procurement policies,
procedures and processes.
The City will achieve this through efficient and professional service delivery, appropriate
commitment authority, consultation, cooperation, innovative solutions, standardization, education
and collective knowledge of products and market conditions, and partnerships while developing
and maintaining quality vendor and client relations
Index
01 Definitions
02 Responsibilities
03 Administrative Procedures
04 Purchasing Principles
05 Sustainability Considerations
06 Authorities, Procurement Methods and Dollar Limits
07 Approvals During Council Recess
08 Third Party Contracts Related to Development
09 Single Source or Sole Source
10 Consulting and Professional Services
11 Design and Development Service
12 Emergency Purchase
13 Cooperative Purchasing
14 Purchasing Cards
15 Disposal of Surplus Assets
16 Code of Purchasing Ethics
17 Conflict of Interest
18 Prohibitions
19 Exceptions
20 Confidentiality — Access to Information
21 Disqualification of Bidders
22 Bidder Terminated, Unsatisfactory Performance
23 Tendering Irregularities
01 Definitions
01.01
01.02
01.03
Acquisition - the process of obtaining goods and services.
Authority or Authorized - the right to conduct the tasks outlined in this Policy.
Bid - an offer or submission received from a vendor in response to a request,
which may be accepted, not considered or rejected.
01.04 Bidder - the person, firm or corporation submitting an offer to the City.
01.05 Blanket Order - a type of purchase order which is an agreement between the
City and supplier to facilitate the reordering of repetitive use materials or
services for a specified term (e.g. for repairs or maintenance purposes) and not
to be used for a Capital expenditure.
01.06 Centralized Purchasing - the activities, conducted by the Supply & Services
Section of the Finance Department which is responsible for the acquisition of all
goods and services.
01.07 Chief Administrative Officer (CAO) - the Chief Administrative Officer of the
City or a designate.
City - The Corporation of the City of Pickering.
Clerk - the City Clerk or a designate.
Committee - a Standing Committee of Council.
01.08
01.09
01.10
01.11
Consulting and Professional Services - services requiring technical skills
provided on the basis of a defined project or undertaking to recommend and/or
assist in implementing solutions including but not limited to supervision related
to the project or undertaking..
01.12 Contract - a binding agreement between two or more parties. In the absence of
any other document, a Purchase Order constitutes a contract.
01.13 Contract Administrator - a person with authority to administer the terms of a
contract to oversee the work of a vendor or contractor.
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Policy Number: PUR 010
01.14 Cooperative Purchasing - the participation of the City with one or more public
agencies in a bid solicitation.
01.15 Council - the Council of the City of Pickering.
01.16 Delegate - a person given authority by the Manager to acquire pricing on goods
and services.
01.17 Designate - a person authorized to act on behalf of another which may include
signing authority to purchase within prescribed limits and/or approval authority.
01.18 Director - a Director, or the Chief Administrative Officer in the capacity as Head
of the Administration Department, or designate, as head of a department.
01.19 Disposal - the selling, trading, assignment, and/or scrapping of surplus assets.
01.20 Emergency - a situation that is, in the opinion of the CAO or a Director, a threat
to public health, safety, property, life or the environment and exists where the
immediate acquisition of goods or services is essential to prevent serious delay,
injury, damage, restore basic service provided by the City and warrants
operating outside this Policy or limit potential liability.
01.21 Evaluation Committee - procedures may be established to provide for an
evaluation committee comprised of a minimum of two representatives from the
Client Department and one from Supply & Services to evaluate proposals in an
RFP process for the purpose of making a recommendation.
01.22 Goods and/or Services - labour, materials, products, equipment, services,
supplies, act to be done, furnished or performed by a vendor that are the
subject of the contract.
01.23 Informal Quotation — an offer received from a vendor through an informal
process in response to a request for pricing which can be on a vendor's
quotation form.
01.24 Limited Purchase Order - form used to acquire items carried in inventory, to
repair and/or service a vehicle or equipment or items considered shop sundries.
01.25 Manager - the Manager, Supply & Services or a designate, under the general
direction of the Treasurer.
01.26 Proposal - a written offer from a vendor in response to a written request for
proposal (RFP) which may be subject to discussion or negotiation. An RFP
process may be used when the good or services cannot be definitively
specified, where such proposals would result in specific offers by the vendors.
01.27 Purchase Order - contract, in an approved form, issued to a vendor to acquire
goods or services, including Blanket Order and Limited Purchase Order.
01.28 Purchase Requisition - a request, in a form approved by the Manager to
acquire goods or services.
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01.29 Purchasing Card (PCard) - a credit card issued by the City that is used to
purchase and pay for goods and/or services subject to spending and/or
transaction limits.
01.30 Quotation - a written offer received from a vendor in a form prescribed by the
Manager in response to a request for quotation (RFQ).
01.31 Responsive and Responsible Bidder - one who complies with the instructions
of the bidding document, contractual terms, conditions, specifications and who
can reasonably be expected to provide satisfactory performance of the
proposed contract based on adequate financial and other resources,
satisfactory reputation, references, and performance on similar contracts.
01.32 Real Property - lands, buildings, tenements and/or any interest, estate or right
or easement affecting same.
01.33 Surety - a formal pledge lodged, or sum of money deposited, as a guarantee
against a damage or loss, non -fulfillment of an obligation, such as a specified
amount in the form of cash, certified cheque, bid bond, agreement to bond,
performance bond, labour and materials payment bond, letter of credit or any
other approved form or collateral acceptable and deemed necessary by the
Treasurer.
01.34 Single Source - where there is more than one source in the open market but
only for reasons of function or service, one vendor is recommended for
consideration of the particular goods and/or services.
01.35 Sole Source - only one source of supply available for particular goods and/or
services.
01.36 Standardization - the adoption of a single product or group of products to be
used by one or more departments.
01.37 Systems Contract - an agreement with a supplier carrying an inventory of
specific items for the City such as office supplies, janitorial supplies, work wear,
etc.
01.38 Tender - a written offer in a form specified by Supply & Services received from
a bidder in response to a request for tender.
01.39 Treasurer - Director, Corporate Services & Treasurer or a designate.
01.40 Vendor - individual, firm, supplier, contractor, architect, consultant or bidder.
02 Responsibilities
02.01 Council to:
a) Approve this Policy.
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Policy Number: PUR 010
b) Actively support the Purchasing Policy.
02.02 Chief Administrative Officer to:
a) Approve amendments to this policy for consideration by Council.
b) Actively support the Purchasing Policy.
02.03 Treasurer to:
a) Review amendments to this Policy made by the Manager for consideration
by the CAO and Council.
b) Approved administrative changes to procedures required to implement the
provisions of this Policy.
c) When required or requested, provide final decisions in regards to matters of
interpretation and implementation of this Policy.
d) Review and approve all award reports to ensure sufficient budgeted funds
exist to support the recommendation for award.
e) Approve changes to the PCard transaction limit to reflect changes for
efficiencies.
f) Assess the potential risks by vendors providing goods or services to
determine appropriate insurance coverage and obtain requisite proof of
coverage.
02.04 Manager to:
a) Recommend necessary amendments to this Policy for consideration by the
Director, Corporate Services & Treasurer and CAO.
b) Interpret and apply the provisions of this Policy on a day-to-day basis.
c) Prepare and maintain administrative procedures required to implement the
provisions throughout this Policy.
d) Administer PCard program and procedures.
03 Administrative Procedures
03.01 This Policy shall be read in conjunction with written administrative procedures.
04 Purchasing Principles
04.01 The Manager shall:
a) Be responsible for the provision of services for the acquisition and disposal
of goods or services required by the City.
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Policy Number: PUR 010
b) Arrange for the procurement by purchase, rental or lease of the required
quality and quantity of goods or services in an efficient and cost-effective
manner.
c) Ensure the greatest value for the City by exercising professional purchasing
practices, free from influence and interference, and encourage open, fair,
transparent and competitive bidding and where practical, sustainable
practices.
d) Promote acceptance of bids based on total acquisition and life cycle cost, or
in the case of a service, the preferred or best level of service, rather than the
lowest bid received.
e) Provide for the appropriate level of delegated commitment authority to
enable clients to meet service level expectations.
f) Assist in the facilitation, comparison and assessment of alternate service
delivery options.
05 Sustainability Considerations
05.01 Staff shall:
a) Consider, and where appropriate include, one or more of the following
matters when preparing specifications for the acquisition of goods and
services:
• reducing greenhouse gas emissions;
• protecting indoor and outdoor air quality;
• improving energy, fuel and water efficiencies;
• improving biodiversity;
• protecting the quality and/or quantity of ground and surface water
systems;
• minimizing packaging and waste;
• making efficient use of natural resources, and using sustainable
harvesting or extraction practices, including Forest Stewardship Council
(FSC) certified papers;
• giving preference to high quality durable materials that can be repaired
and/or upgraded;
• requiring materials that contain reusable parts, and/or that are made from
renewable, compostable or recyclable materials or can be taken back for
recycling;
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• reducing or eliminating hazardous or toxic substances; and/or,
• minimizing human health impacts.
05.02 The Manager shall:
a) Encourage sustainable purchasing practices and promote the use of and
utilize the Government Incorporating Purchasing Practices, which are
Environmentally Responsible (G.I.P.P.E.R.) guide as part of the awareness
of environmentally responsible procurement to address sustainability
objectives.
06 Authorities, Procurement Methods and Dollar Limits
06.01 The Manager and Treasurer shall have the authority and responsibility to
operate a centralized purchasing program on behalf of the City.
06.02 The Manager shall have the authority to negotiate terms or conditions of a
contract or agreement as deemed necessary.
06.03 The Manager, Treasurer or delegates shall have the authority to sing contracts,
agreements and any other documents on behalf of the City with third parties for
the acquisition, delivery and maintenance of goods or services acquired in
accordance with this Policy.
06.04 Dollar limits (Canadian funds) include all costs or acquisition including delivery,
custom fees and duties, disposal surcharges, and any other fees, charges or
costs, but exclude HST.
06.05 The Manager, with the approval of the appropriate Director for the employee
concerned, may delegate to an employee all or part of the authority to purchase
up to an amount of $1,000 on the understanding the employee promotes the
objectives of this Policy.
06.06 The Manager may recommend a bidder for the acquisition of goods or services
upon such terms and conditions as he or she deems appropriate consistent with
the requirements of this policy (summarized in Appendix 2).
06.07 The Manager shall have the discretion to review pricing and processes
undertaken to ensure compliance with this Policy.
06.08 Pricing for good or services over $1,000 and up to $5,000 not covered by a
contract, service or blanket order may be obtained by the Manager or Director of
initiating department with a minimum of one informal quote.
a) Where the Director of initiating department or designate obtains one informal
quote, they are responsible for:
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• Obtaining all Health & Safety and Insurance related documents and
requisite approvals, ensuring all requirements are met, prior to
submitting a requisition.
• Monitoring and ensuring that work is not divided into multiple single
quotes to circumvent the requirements of the Purchasing Policy and
not routinely source to the same vendor.
06.09 Pricing for goods or services over $5,000 and up to $30,000 not covered by a
contract, service or blanket order, shall be obtained by the Manager. Three
information quotes, where possible, are required.
06.10 Pricing for goods or services with an estimated total price over $30,000 shall be
obtained by the Manager. The Manager shall determine when a Request for
Proposal, Request for Quotation or Tender is the most appropriate method to
acquire goods or services and shall solicit a minimum of three proposals,
quotations or tenders if possible. Advertising is at the discretion of the Manager
but an estimated value over $100,000 shall be advertised.
06.11 Where the compliant quotation or tender meeting specifications and offering
best value to the City is acceptable or where the highest scoring proposal is
recommended and the estimated total purchase is:
a) Over $30,000 and up to $75,000, the Manager may approve the award,
subject to consultation with the appropriate Director and confirmation of
financing by the Treasurer.
b) Over $75,000 and up to $250,000, the Manager may approve the award,
subject to the approval of the Director, Treasurer and the CAO.
c) Over $250,000, the Manager may approve the award, subject to the
approval of the Director, Treasurer, CAO and Council.
06.12 Revenue generating proposals for services are subject to the approval of
Council prior to the Manager awarding the contract.
06.13 Goods or services obtained by sealed public tender shall be advertised or by
invitation from a list of qualified bidders, or a combination thereof. Tendering
documents shall be issued and opened in public at a specified date and time.
Tenders that are late, illegible, unsigned, contain insufficient deposit, contain
uncertified cheques, are incomplete or do not include a deposit, bond or surety,
shall be rejected. The terms and conditions of the deposit, bond or surety are
subject to the approval of the Treasurer. The Manager and appropriate Director
shall jointly recommend a tendering award.
06.14 The Manager shall ensure that all recommendations dealing with the award of a
quotation, proposal or tender contains the appropriate funding statement from
the Treasurer.
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06.15 Authorities and responsibilities shall be applied and administered having regard
to the provisions of the Corporate Financial Control Policy and approved Signing
Authorities.
06.16 If a bid has been approved by Council and awarded to the selected Bidder and
the selected Bidder fails to enter into a contract, the Manager shall be granted
the authority to proceed to the next lowest responsive and responsible Bidder or
the next highest evaluated responsive and responsible proponent for a proposal
call, for the award of this contract, without going back to Council for approval,
providing there are no bid irregularities, requirements remain unchanged and
the new contract is within budget. The approval shall be obtained from the
appropriate Director, Treasurer and CAO. The Director shall prepare a report to
Council for information purposes for the next scheduled Committee and Council
meeting.
07 Approvals During Council Recess
07.01 The Chief Administrative Officer is authorized to act on behalf of Council in
approving an award of a project, and the Treasurer is authorized to approve
financing for same, during any recess, break or absence of Council on the
condition that:
a) the project is in budget approved by Council;
b) such actions are in compliance with the Purchasing Policy and the Financial
Control Policy;
c) the project is not debt financed; and,
d) a report respecting those approvals is subsequently submitted to Council.
08 Third Party Contracts Related to Development
08.01 City works and services being completed through a Third Party contract
identified in a subdivision, development, or site plan agreement are exempt from
the requirements of the Purchasing Policy and may proceed without a purchase
order, without a report to Council and without other requirements typical of work
contracted by the City where:
a) funding has been approved in the budget;
b) funding is not debt financed;
c) works are identified in approval plans and/or defined in the Developer's
Agreement; and,
d) works are being completed by the Developer's contractor.
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09 Single Source or Sole Source
09.01 The Manager is authorized to make single or sole source purchases without
competitive bids and enter into a contract if any of the following conditions
apply.
09.02 Excludes Section 10, Consulting and Professional Services.
09.03 Single Source examples:
a) In an emergency.
b) A fluctuating market prevents the Manager from obtaining price protection or
owing to market conditions, the required goods or services are in short
supply.
c) Bids have been solicited and no responsible bid has been received or bids
fail to comply with the specifications or conditions, or the lowest bid received
exceeds the estimated cost and it is impractical to recall.
d) The extension or reinstatement of an existing contract would prove most cost
effective or beneficial. The extension shall not exceed one year.
e) Goods are required for resale and the determining criteria are marketability
and profitability, e.g. Museum, promotional items.
f) The nature of the requirement would not be in the public interest to solicit
competitive bids as in the case of security or confidentiality.
g)
Due to market conditions or unexpected circumstances, required goods or
services are in short supply.
09.04 Sole Source examples:
a) Competition is precluded because of the existence of a sole source, patent
rights, copyrights, secret processes, or control of basic raw material or
similar circumstances.
b) Component or replacement part is involved for which there is no substitute.
c) Compatibility with an existing product is the overriding consideration.
d) The purchase involves goods or services for which there is no substitute.
e) Supply of which is controlled by a vendor with a monopoly.
f) Purchase of goods in a commodity market.
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g) Work to be performed on or about a leased building or portions thereof that
may be performed only by the lessor.
h) Work to be performed on property by a contractor according to provision of a
warranty or guarantee held in respect of the property or the original work.
i) For a contract to be awarded to the winner of a design contest.
j) Original works of art.
k) Purchase of real property.
09.05 The appropriate Director shall summarize the rationale for a single or sole
source request in a memo to the Manager.
09.06 A single source or sole source purchase up to $10,000 is subject to the
approval of the Manager.
09.07 A single source or sole source purchase over $10,000 and up to $30,000 is
subject to the approval of the Manager and the Director.
09.08 A single source or sole source purchase exceeding $30,000 and up to $125,000
is subject to the approval of the Manager, Director, Treasurer and the CAO.
09.09 A single source or sole source purchase exceeding $125,000 is subject to
Council approval.
09.10 Public Art Project purchases or Public Art projects with costs that exceed
$25,000 are subject to Council approval.
09.11 The Manager and appropriate Director or designate is authorized to enter into
negotiations with competitive bids and enter into a contract if deemed
advantageous.
10 Consulting and Professional Services
10.01 Notwithstanding the provisions of this Policy, which covers the acquisition of
goods or services, the acquisition of Consulting and Professional Services shall
be conducted in accordance with the provisions of this section.
10.02 Consulting and Professional Services will be acquired on a "quality based
selection" methodology rather than only the lowest price.
10.03 The Manager may obtain the services of a particular consultant selected by the
initiating Director without going through a competitive process. Where the funds
are available in the approved budget and the project or annual cost of a
consulting or professional service assignment is expected to be:
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a) Less than $30,000 is subject to the approval of the Director.
b) Between $30,000 and $50,000 is subject tot the additional approval of the
Treasurer and the CAO.
c) Above $50,000 is subject to the additional approval of Council. The initiating
Director shall submit the Report to Council to obtain approval.
d) The initiating Director is responsible to obtain all Health & Safety and
Insurance related documents and requisite approvals, ensuring all
requirements are met, prior to submitting a requisition.
The Director is responsible to clearly identify phases of the work in the
memo seeking approval, monitoring and ensuring that work is not
divided to multiple assignments to circumvent the requirements of the
Purchasing Policy and not routinely sourced to the same consultant.
ii. The Director shall maintain a listing of the name of consultant, project
title, duration, scope, cost, purchase order number and other pertinent
details of the engagement for quick access to enquiries.
iii. The project file shall include objectives in measurable deliverables
and at the end of the project, include the signature of the senior
management person signifying the deliverables have been met.
10.04 Where written proposals are obtained by the Manager in accordance with
procedures set out in Section 06 and funds are available in the approved
budget:
a) An award up to $30,000 is subject to the approval of the Manager and
Director.
b) An award between $30,000 and $50,000 is subject to the additional approval
of the Treasurer and the CAO.
c) An award over $50,000 is subject to the additional approval of Council.
10.05 A purchase order is required to confirm the consulting agreement.
11 Design and Development Service
11.01 Where design or specification development is required, the vendor providing it
shall be considered a consultant and contracted as such. The design or
specifications shall become the property of the City for use in obtaining
competitive bids.
11.02 A vendor providing design, services, consulting or specifications shall be
advised up front that they will not be permitted to submit pricing or bid in the
competitive process for the requirement if a competitive advantage or conflict of
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interest is deemed to exist. The CAO and Director, Finance and Treasurer will
provide a final determination on this matter.
11.03 Where the design and end product is part of the same requirement or project,
the scope of work will be combined and procured as one project in a competitive
method.
12 Emergency Purchase
12.01 In an emergency situation the Manager shall, on the approval of the appropriate
Director, obtain such goods and services as are necessary to respond to the
emergency. If the purchase amount exceeds $5,000, the Director must notify
the Treasurer at the earliest possible time. If the purchase exceeds $50,000,
the Treasurer and the CAO shall be notified and the Director shall submit a
report of the incident to the appropriate Committee and Council at the earliest
possible time.
13 Cooperative Purchasing
13.01 The Manager may enter into arrangements with municipalities, local boards and
other public bodies on a cooperative or joint venture basis where there are
economic advantages and where the best interests of the City would be served.
The policy of the government agency or public authority hosting the cooperative
call for bids is to be the accepted policy of the City for the cooperative call and
no other approval by the City is required beyond that of the Manager,
appropriate Director and Treasurer, unless debt financing is required then,
Council approval must first be obtained.
13.02 Section 13.01 above does not preclude the issuance of a purchase order.
14 Purchasing Cards
14.01 Purchasing Cards shall be used in accordance with the Purchasing Card
Procedure.
14.02 The Treasurer has the authority to temporarily adjust the transaction limit for
one time purchases.
15 Disposal of Surplus Assets
15.01 The Manager is authorized to dispose of surplus assets in a cost effective and
efficient manner with the approval of the appropriate Director and the Treasurer.
16 Code of Purchasing Ethics
16.01 The Code of Purchasing Ethics established by the National Institute of
Governmental Purchasing Inc. and the Purchasing Management Association of
Canada shall apply to Supply & Services staff.
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16.02 The participation of Members of Council and Employees of the Corporation of
the City of Pickering in the procurement process shall be governed by, in the
case of Members of Council, the City's Council Code of Practice; and in the
case of employees, by the City's Employee Code of Conduct.
17 Conflict of Interest
17.01 All Members of City Council, Committee or Board must comply with the
Municipal Conflict of Interest Act.
17.02 With respect to all City purchasing, City Employees must declare and disclose
to the Manager any actual or potential direct or indirect conflict of interest with
respect to their involvement in a procurement process, including all evaluation
processes, and, where necessary, not participate in a procurement process
where there is a conflict of interest.
17.03 Vendors will be required to declare any real or potential conflict of interest in all
instances involving the procurement of goods and services.
17.04 The City, through the Manager, reserves the right to disqualify the vendor from
further consideration in any instance involving the procurement of goods and
services which demonstrates a conflict of interest.
17.05 A conflict of interest arising during the term of a contract must be reported
immediately to the Manager. If the Manager and the vendor are unable to
rectify the conflict of interest to the Manager's satisfaction, the City may
terminate the contract. Failure to disclose a potential conflict of interest during
the term of a contract may result in termination of the contract by the City.
18 Prohibitions
18.01 No employee or Member of Council, Committee or Board shall bid on the sale of
goods except those disposed of by public auction.
18.02 The City shall make no personal purchase for any employee, Member of
Council, Committee or Board.
18.03 No employee, or Member of Council, Committee or Board shall purchase or
offer to purchase on behalf of the City, except as may be provided for in this
Policy or with the express authority of Council.
18.04 Contracts entered into in contravention of Section 18.03 will not be binding upon
the City. The employee, or Member of Council, Committee or Board who
entered into the contract will be responsible for the contract.
18.05 No requirements for goods or services shall be divided to avoid the
requirements of this Policy and the total project or annual requirement shall be
considered.
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19 Exceptions
19.01 Items listed in Appendix 1 are excluded from the requirements of this Policy.
The items may be procured by obtaining one price, subject to the funds being
available in the current or capital budgets. For accountability and transparency
purposes, a Purchase Order may be required when there is a set pre-
determined fee or an upset limit.
19.02 Notwithstanding, Directors are required to provide details to the Treasurer and
the CAO of any contractual arrangements under Appendix 1 with third parties
that exceed $25,000 annually or are for more than one year. Such details will
be provided prior to the commencement of the contract arrangement.
20 Confidentiality - Access to Information
20.01 Contents of quotation, tendering, request for proposal documents, with the
exception of the information read publicly at a tender opening or reported to
Council, shall be treated as confidential and protected as set out under The
Municipal Freedom of Information and Protection of Privacy Act (MFIPPA),
RSO, 1990, Section 11 (c), as amended.
20.02 Subject to The Municipal Freedom of Information and Protection of Privacy Act
(MFIPPA), RSO, 1990, no employee, or any appointed or elected official, shall
divulge the unit prices paid by or quoted to the City for goods or services. The
total price in the case of public tenders, or the total price in the case of
quotations, the name of the successful bidder, as well as any prices included in
public reports to Committee and Council may be revealed.
21 Disqualification of Bidders
21.01 A tender, proposal or quotation submitted by a bidder shall be rejected:
a) If the bidder, or any officer or director of the bidder is or has been engaged
either directly or indirectly through another corporation including by common
ownership or control or otherwise related to a party in litigation with the City,
its elected or appointed officers, or its employees,
and
b) In the opinion of the Manager, the litigation is likely to affect the bidder's
ability to work with the City, its consultants or representatives, and the City's
experience with the bidder in the matter giving rise to the litigation 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.
22 Bidder Terminated, Unsatisfactory Performance
22.01 The City reserves the right to not consider a bidder for a period of time or
exclude a bidder from eligibility to submit a bid, when:
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1. a bidder has provided unsatisfactory performance by documented evidence
or substandard performance or unfulfilled commitment; or,
2. a bidder has been deemed an unsafe contracting party, where the is
documented evidence of disregard for or violation of the City's health and
safety regulations, practices, instructions or non-compliance of the
Occupational Health & Safety Act and Codes; or,
3. there is evidence that a bidder has attempted to exert illegal, undue or
inappropriate influence over an employee, consultant, official, Member of
Council, other bidder or any other person in connection with the City's
decision to accept or decline a bid.
22.02 In reaching a decision, the 'Manager, and appropriate Director shall be entitled
to rely upon results of performance evaluations relating to other contracts for the
City and outside parties performed by the subject bidder.
22.03 No tender, proposal or quotation will be considered or accepted from the subject
bidder during the term of the suspension.
22.04 Previous experience or the results of any performance evaluation may be
disclosed by City staff to other municipalities or government bodies upon
request, where the subject bidder has listed the City as a reference.
22.05 The bidder may apply to the City for reconsideration or reinstatement if the
bidder is able to demonstrate that the practices or issues leading to the
suspension have been rectified.
22.06 The City reserves the right to no consider a tender/quotation/RFP from a bidder
or any company affiliated with or controlled by the bidder who:
a) has been prohibited from bidding on City contracts by City Council;
b) has had a contract with the City terminated within three years of the bid
close date due to default of the contract;
c) has failed to rectify the performance of any previous contract default to the
City's satisfaction, and cannot provide assurances and demonstrate
appropriate action to ensure the same or similar problems will not reoccur;
or,
d) has failed to provide health and safety documentation to the City's
satisfaction.
23 Tendering Irregularities
23.01 Guideline for Handling Irregularities:
a) To maintain the integrity of the public tendering process.
Policy Title: Purchasing Policy Page 16 of 24
Policy Number: PUR 010
b) To maintain a flexible process in which low bids are not rejected because of
minor irregularities. This approach allows the City to maximize the
advantages of a competitive public tender process.
c) To ensure that the City's Policy for dealing with irregular tenders promotes
fair competition.
d) To ensure that any bid accepted by the City is legally capable of being
accepted.
e) To ensure that no bidder can avoid its bid by its own default or mistake.
f) Irregularities that go beyond the scope of these guidelines shall be reviewed
with the Treasurer and the Manager shall have the authority to waive
irregularities deemed to be minor. In exercising judgement, the advice of the
City Solicitor may be requested. Where deemed to be a major irregularity,
the Treasurer shall consult with the CAO who jointly shall have the final
decision on acceptance or rejection of the bid.
23.02 Tendering irregularities will be dealt with follows:
Policy Title: Purchasing Policy
Policy Number: PUR 010
Page 17 of 24
Irregularities
Response
1.
Late bid.
• Automatic rejection and will be returned
unopened to the bidder. Bids will be
deemed to have been received when
the City has stamped the envelope with
the time and date of receipt.
• If the bidder's address is not clearly
available on the envelope or package, it
will be opened solely to access this
information in order to return it to the
bidder.
2.
Bid envelope or package is not sealed.
• Automatic rejection.
3.
Bid not completed by non -erasable ink.
• Automatic rejection.
4.
Bid not legible.
• Automatic rejection.
5.
Bidder's original ink signature missing
from signature page.
• Automatic rejection.
6.
Bid qualified or restricted by a statement
or alteration added to any part of the
document.
• Automatic rejection.
Policy Title: Purchasing Policy
Policy Number: PUR 010
Page 17 of 24
7.
Bid received on documents other than
those provided by the City.
• Automatic rejection unless allowed for in
the bid instructions or received on a true
copy (not retyped) of the original
document issued by the City
8.
Bid does not meet specifications.
• Automatic rejection.
9.
Alternate bid.
• Automatic rejection unless allowed for in
the bid instructions or bidder has
completed original bid and provided an
alternate bid in addition to the original.
10.
Bid Security
a) Surety's Corporate seal or Surety
signature missing from Bid Bond or
Agreement to Bond.
b) Bid Bond or Agreement to Bond does
have Surety's Corporate seal and
Surety signature but does not have
bidder's corporate seal or bidder's
statement to bind the corporation.
c) Bid Deposit, Bid Bond or Agreement
to Bond not provided, or not in the form
specified or does not name the correct
municipality as obligee, or the Surety is
not licensed to do business in Ontario.
d) Bid Deposit, Bid Bond of insufficient
amount.
e) Agreement to Bond not sufficient.
f) Bid security is not in compliance with
the number of days open for
acceptance as stated in the bid
documents.
• Automatic rejection.
• Two working days to correct.
• Automatic rejection.
• Automatic rejection.
• Automatic rejection.
• Two working days to correct and if
bidder fails to do so, bid will be rejected.
11.
Bid does not acknowledge addenda.
• Automatic rejection unless every
change set out in the addenda is clearly
visible on the face of the bid OR the
relevant addendum issued is solely for
the purpose of revising the closing date
and time.
Policy Title: Purchasing Policy
Policy Number: PUR 010
Page 18 of 24
12.
Bid received from a bidder who has not
been approved as a pre -qualified bidder
under a prequalification process.
• Automatic rejection.
13.
Bid received from a bidder whom did
not sign -in at mandatory site visit when
instructed to do so in the tendering
instructions.
• Automatic rejection.
14.
Failure to return the documents as
specified.
• Automatic rejection unless otherwise
specified in the tendering instructions.
15.
Partial bid (all items not bid).
• Automatic rejection unless allowed for in
the tendering instructions.
16.
Tender envelope unclear as to contents.
• Automatic rejection.
17.
Uninitialed changes to the bid
documents that are minor (e.g. bidder's
address is amended by over -writing but
not initialed).
• Two working days to correct. The City
reserves the right to waive initialling and
accept the tender.
18.
Unit prices in the Schedule of Prices
have been changed but not initialed.
• Two working days to correct. The City
reserves the right to waive initialling and
accept the tender.
19.
Other mathematical errors that are not
consistent with unit prices.
• Two working days to initial corrections
as made by the City. Unit prices shall
govern and the tender will be corrected
accordingly. The City reserves the right
to waive initialling and accept tender as
corrected.
20.
Pages are missing from bid.
• Two working days to supply the missing
pages where in the opinion of the
Manager, the missing page(s) would not
directly affect the bid submitted. The
City reserves the right to waive the need
to receive the missing pages and accept
the tender or to reject the tender
outright at the discretion of the
Manager.
Policy Title: Purchasing Policy
Policy Number: PUR 010
Page 19 of 24
21.
Withdrawal of bid.
• Withdrawal of bids received after the
closing date and time will not be
allowed.
22.
Tie bids.
• The Manager may use one of the
following methods of dealing with two
low tied bids, based on the specific
situation.
• Request the two low bidders to resubmit
pricing only. No other change to the bid
is allowed. Bidders shall be allowed 24
hours from time of request.
• Use a coin toss to select a
recommended bid.
• The outcome of the tie breaking method
shall be final.
23.
Completion date is other than specified
in the tendering specifications.
• Two working days to clarify the
completion date. The City reserves the
right to waive the clarification of the
completion date and accept the tender,
or to reject the tender outright.
Please refer to all associated Procedures and Standard Operating Procedures, if applicable, for
detailed processes regarding this Policy.
Appendices
Appendix 1 Exceptions
Appendix 2 Summary of Procurement Method and Approval Authority
Policy Title: Purchasing Policy Page 20 of 24
Policy Number: PUR 010
Appendix 1
Exceptions
The following items may be procured by obtaining one price, subject to the funds being
available in the current or capital budgets. For accountability and transparency purposes, a
Purchase Order may be required when there is a set pre -determined fee or an upset limit.
Those categories where this may be applicable are marked with an asterisk.
Notwithstanding, it is expected that the objectives of this Policy will be promoted in any
expenditures for goods or services.
1. Petty Cash expenditures (Policy FIN 030-001)
2. Purchases under $1,000
3. Training and Education
a) Conference, Course, Convention and Seminar, including accommodation, travel
b) Magazine, Book, Periodical, Subscriptions
c) Membership Fee
d) Facilitator, Trainer Fee
4. Catering, Food or Entertainment Services *
5. Advertising
a) Newspaper (national and local), periodical, trade journal, magazine (A contract
arrangement for advertising such as the Community Page is not considered an
exception).
6. Professional Fees *
a) Consultant fee related to litigation
b) External Auditor
c) Legal Services
d) Ontario Land Surveyor
e) Property Appraisal
f) Medical Service
g) Mediation Service
h) Laboratory Service
i) Actuarial Studies and Reports
j) Assessment Appeal, Assessment Services and Related Expenses
k) Banking, Brokerage or Underwriting Service, Investment and Related Services
Including Funds Transfer and Security
I) Liability, Property and Other Forms of Insurance and Adjusting Services
m) Temporary Help
n) Collection Services
o) Tax and Cost Recovery Reviews
Policy Title: Purchasing Policy Page 21 of 24
Policy Number: PUR 010
7. Utility Services (acquisition, repairs, maintenance and minor replacements)
a) Natural Gas and Heating Oil
b) Sewer and Water
c) Postage
d) Electricity
e) Telecommunication Service Providers
f) Cable Television
g) Internet Service Providers
8. Work or services to or from other government agencies, utilities, Provincial or Federal
agencies, Crown Corporations, municipalities, public agencies, or Boards.*
9. Third party contracts related to development. Refer to Policy Section 08.
10. Provision of services required by Councillors as provided for in the Council
Compensation Policy unless requested (Policy ADM 190).
11. Maintenance Contract (Proprietary, Non -Value Added Resellers)
a) annual maintenance fees where the approved vendor is the sole source provider
of the service; and,
b) upgrades already approved including support and training where the vendor is
the sole source provider of the upgrade.
12. Acquisitions and Disposal of Real Property including rental, lease.
13. Acquisition of goods or services under a government pricing program.
Note: *Categories where a Purchase Order may be required.
Policy Title: Purchasing Policy Page 22 of 24
Policy Number: PUR 010
Summary of Procurement Method and Approval Authority
Purchase order required unless stated otherwise herein. Amounts exclusive of HST.
Manager = Manager, Supply & Services
Director = appropriate Director
Appendix 2
Procurement Method
Dollar Range
Approval
Purchasing Card or Invoice
Purchase Order not issued
Staff Purchase
Up to $1,000
Delegated by Director
1 Informal Price obtained by Staff (1)
$1,000 to $5,000
Director
3 Informal Prices obtained by S&S
$5,000 to $30,000
Manager and Director
Quotation, RFP or Public Tender
(Manager, S&S to determine)
' $30,000-$75,000
$75,000-$250,000
$250,000 +
• Revenue Based
Manager and Director
plus CAO
plus Council
plus Council
Single Source, Sole Source, Sec.9
Dollar Range
Approval
Director may obtain services
directly from a particular
consultant for specific
assignment / project (2)
Up to $10,000
$10,000 to $30,000
$30,000 to $125,000
$125,000 +
Manager
plus Director
plus Treasurer & CAO
plus Council
Consulting & Professional Services
Section 10
Dollar Range
Approval
Director may obtain services
directly from a particular
consultant for specific
assignment / project (2)
Up to $30,000
$30,000 to $50,000
$50,000 +
Manager, Director
plus Treasurer & CAO
plus Council
Quotation or RFP
(Manager, S&S to determine)
Up to $30,000
$30,000 to $50,000
$50,000 +
Manager, Director,
plus Treasurer & CAO
plus Council
Emergency Purchase, Section 12
Dollar Range
Approval
Up to $5,000
$5,000 to $50,000
$50,000 +
Director
plus notify Treasurer
plus notify CAO and
submit Report to Council
1)
Initiating Director or designate responsible to obtain all Health & Safety and Insurance related
documents and requisite approvals, ensuring all requirements are met, prior to submitting a
requisition. Also responsible for monitoring and ensuring that work is not divided into multiple
single quotes to circumvent the requirements of the Purchasing Policy and not routinely
sourced to the same vendor.
Policy Title: Purchasing Policy
Policy Number: PUR 010
Page 23 of 24
2) Initiating Director responsible to obtain all Health & Safety and Insurance related documents
and requisite approvals, ensuring all requirements are met, prior to submitting a requisition.
Director responsible to clearly identify phases of the work in the memo seeking approval,
monitoring and ensuring that work is not divided into multiple assignments to circumvent the
requirements of the Purchasing Policy and not routinely sourced to the same consultant.
Director shall maintain a listing of the name of consultant, project title, duration, scope, cost,
purchase order number and other pertinent details of the engagement for quick access to
enquiries. The project file shall include objectives in measurable deliverables and at the end
of the project, include the signature of the senior management person signifying the
deliverables have been met.
Policy Title: Purchasing Policy Page 24 of 24
Policy Number: PUR 010