HomeMy WebLinkAboutPUR 010-001 Purchasing ProcedureCat/ O0
PICKERING
City Procedure
Procedure Title: Purchasing Procedure
Procedure Number
PUR 010-001
Reference
Municipal Act, 2001, S.270
Date Originated
January 24, 2002
Date Revised
February 14, 2014
April 2016
Pages
35
Approval: Chief Administrative Officer
Procedure Objective
Point of Contact
Manager, Supply & Services
To establish procedures to ensure employees follow consistent steps in the procurement
process in accordance with the provisions of the Purchasing Policy.
Index
01 Definitions
02 Procurement Cycle
03 Prohibitions, Restrictions and Compliance
04 Disclosure of Budget
05 Questions
06 Purchasing Policy
07 Forms
08 Requisitioning Goods and Services
09 Purchase Orders
10 Receiving Goods and Services
11 Request for Information and Expression of Interest (RFEI)
12 Request for Quotations
13 Request for Tenders
14 Request for Proposals
15 Emergency Purchases — Over $1,000
16 Disposal
17 Co-operative Purchasing
18 Vendor Performance
19 Accessibility Considerations
01 Definitions
01.01 Acquisitions - the process of obtaining goods and services.
01.02 Authority or Authorized — the right to conduct the tasks outlined in this
Procedure.
01.03 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 Board — a group of persons who manage or control an aspect of business
related to the City.
01.07 Centralized Purchasing - the activities conducted by the Supply & Services
Section of the Corporate Services Department which is responsible for the
acquisition of all goods and services.
01.08 Chief Administrative Officer (CAO) - the Chief Administrative Officer of the City
or a designate.
01.09 City - The Corporation of the City of Pickering.
01.10 Clerk - the City Clerk or a designate.
01.11 Committee - a Standing Committee of Council.
01.12 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.
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Procedure Number: PUR 010-001
01.13 Contract - a binding agreement between two or more parties. In the absence of
any other document, a Purchase Order constitutes a contract.
01.14 Contract Administrator - a person with authority to administer the terms of a
contract to oversee the work of a vendor or contractor.
01.15 Cooperative Purchasing - the participation of the City with one or more public
agencies in a bid solicitation.
01.16 Council - the Council of the City of Pickering.
01.17 Delegate — a person given authority by the Manager to acquire pricing on
goods and services.
01.18 Designate - a person authorized to act on behalf of another which may include
signing authority to purchase within prescribed limits and/or approval authority.
01.19 Director - a Director, or the Chief Administrative Officer in the capacity as Head
of the Administration Department, or designate, as head of a department.
01.20 Disposal - the selling, trading, assignment, and/or scrapping of surplus assets.
01.21 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 procedure or limit potential liability.
01.22 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.
01.23 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.
01.24 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.
01.25 Inventory Control - the management of materials required by departments to
ensure that they are available when required while at the same time minimizing
investment.
01.26 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.
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Procedure Number: PUR 010-001
01.27 Manager - the Manager, Supply & Services or a designate, under the general
direction of the Treasurer.
01.28 Personal Purchase — goods or services requested by an elected official, an
appointed official or by any employee of the City, the requirement for which is
not for City purposes but is for the benefit and use of the person requesting the
purchase.
01.29 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.
01.30 Publicly Advertised — advertising in any publication of general circulation
including the Internet.
01.31 Purchase Order - contract, in an approved form, issued to a vendor to acquire
goods or services, including Blanket Order and Limited Purchase Order.
01.32 Purchase Requisition - a request, in a form approved by the Manager to
acquire goods or services.
01.33 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.
01.34 Quotation - a written offer received from a vendor in a form prescribed by the
Manager in response to a request for quotation (RFQ).
01.35 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.
01.36 Real Property - lands, buildings, tenements and/or any interest, estate or right
or easement affecting same.
01.37 Surety — a formal pledge lodged, or sum of money deposited, as a guarantee
against a damage or loss, non -fulfilment 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 of collateral acceptable and deemed necessary by the
Treasurer.
01.38 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.
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Procedure Number: PUR 010-001
01.39 Sole Source — only one source of supply available for particular goods and/or
services.
01.40 Standardization — the adoption of a single product or group of products to be
used by one or more departments.
01.41 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.
01.42 Tender - a written offer in a form specified by Supply & Services received from
a bidder in response to a request for tender.
01.43 Treasurer — Treasurer or a designate.
01.44 Vendor — individual, firm, supplier, contractor, architect, consultant or bidder.
02 Procurement Cycle
02.01 The following represents some of the more typical procurement activities:
• initial client meeting (if required)
• selection of purchasing method e.g. quotation, proposal or tender or direct
purchase
• preparation of technical specifications, drawings and evaluation criteria
• preparation and review bid document package
• publishing the document (if required)
• issuing the bid document
• bid document submission
• bid receipt and analysis
• preparation of the procurement award
• approvals
• preparation and execution of documents
• contract administration
03 Prohibitions, Restrictions and Compliance
03.01 No purchase of goods and services having a price in excess of $500 shall be
authorized unless it is from an agreement established by the Manager, Supply
& Services and is in compliance with the Purchasing Policy and these
procedures.
03.02 Goods or services that are obtained without following the City's Purchasing
Policy and Procedures are not acceptable. Any such invoices will not be
processed for payment without the authorization of the Director.
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Procedure Number: PUR 010-001
03.03 Any employee who knowingly contravenes any of the above is committing an
act of misconduct and is liable for the purchase as well as disciplinary action.
04 Disclosure of Budget
04.01 Disclosure of specific budget information in relation to planned expenditures is
only permitted at the discretion of the Manager, Supply & Services.
05 Questions
05.01 Questions in regards to these procedures or guidelines should be referred to
the Manager, Supply & Services. Any changes or substantive interpretations
will be reflected in the form of an amendment to these policies and procedures.
06 Purchasing Policy
06.01 Please refer to Purchasing Policy for Council approved Policy and dollar limits.
07 Forms
07.01 The following forms have been developed to support the various processes
outlined in this Procedure:
• Addendum
• Advertisement
• Bidders application
• Contractor evaluation
• Tangible capital asset
• Evaluation summary
• Materials requisition
• Purchase Order
• Receiving report
• Record of tenders — opened and checked
• Regret letter
• Report to Council
• Requisition — online
• Requisition — manual
07.02 Prohibitions, Restrictions and Compliance — No changes are permitted to the
above forms and agreements without the consent or the Manager, Supply &
Services.
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Procedure Number: PUR 010-001
08 Requisitioning Goods and Services
08.01 Overview
There are three types of Purchase Requisitions, an Online, Manual and
Materials Requisition.
An approved Online/Manual Requisition shall be forwarded to Supply &
Services to acquire all goods and services with the following exceptions:
• purchases up to an amount of $1,000 (Section 06.05 of Purchasing Policy);
• items which are exceptions are outlined in Appendix I of the Purchasing
Policy and any other purchases identified from time to time by Supply &
Services and Accounting Services;
• purchases acquired through the use of delegated Low Value procurement
tools (e.g. purchasing cards or credit cards and other methods as
prescribed by the Manager, Supply & Services);
• purchases of stationery supplies under a systems contract from the City's
supplier of record that can be requisitioned/ordered through the Internet, by
electronic order form, by telephone or by fax. This contract utilizes the
vendors' inventory, catalogues, delivery facilities and the vendors' order
forms. The City does not carry any of the items in inventory. A department
may obtain goods directly from the vendor in accordance with purchasing
procedures. The Signing Authority must assign the Account Number to be
charged and sign the form to approve the transaction prior to releasing the
order;
• other systems contracts initiated and maintained by Supply & Services to
facilitate the acquisition of the various goods required by the City; and
• to acquire goods from the Central Stores inventory. Goods carried in the
Central Stores include maintenance, lighting, hardware, safety and first-aid
supplies. A Materials Requisition shall be used for these purposes.
08.02 On-Line/Manual Requisition
Client responsibilities:
1. Complete an Online/Manual Requisition form by logging onto the
purchasing program from your computer. If computer access is not
available, complete a manual requisition form. The Requisition should
include the following information:
• account number(s)
• authorized project code for capital expenditures (if applicable)
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Procedure Number: PUR 010-001
• description of goods and/or services
• any special instructions
• budget estimate if over $1,000
• date required
2. Forward Requisition for approval.
3. Submit Online/Material Requisition to Supply & Services together with
any additional information e.g. detailed specifications, any relevant criteria
for consideration during evaluation and selection of goods or services.
Supply & Services responsibilities:
1. Review requisition for completeness.
2. Determine method of purchase.
3. Acquire goods and services in accordance with the requirements of the
Purchasing Policy and Purchasing Procedures.
08.03 Materials Requisition
The Central Stores area maintains an inventory of items that can be obtained
through the use of a Materials Requisition. A Materials Requisition shall be
used to acquire goods for and from Central Stores for work to vehicles and
equipment, undertaken by City staff. A Work Order must accompany the
Material Requisition. Goods purchased shall be recorded on the Work Order to
maintain a complete service record. Where possible, the manufacturer's
number and specifications should be provided on the Material Requisition to
facilitate the purchase of the appropriate goods. If goods are not available from
the inventory, a Purchase Order shall be issued to acquire such shop sundries.
Client responsibilities:
1. Complete Material Requisition including:
• department
• account number
• quantity
• stock number
• description of goods
• date
2. Forward Materials Requisition for approval.
3. Forward completed form to Central Stores.
Materials Clerk responsibilities:
1. Review requisition for completeness.
2. Release goods from inventory.
3. Process and distribute paperwork as required.
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Procedure Number: PUR 010-001
09 Purchase Orders
09.01 Overview
Purchase Orders are required for the purchase of all goods and services
except for purchases up to an amount of $1,000 (Section 06.05 of the
Purchasing Policy); items exempt as outlined in Appendix I of the Purchasing
Policy; acquired under Low Value purchase arrangements approved by the
Manager, (e.g. purchasing cards or credit cards), or acquired through other
forms of contract or agreements, or any other purchases identified from time
to time by Supply & Services and Accounting Services.
There are basically three types of purchase orders. A Standard Purchase
Order, a Limited Purchase Order and a Blanket Purchase Order:
1. A Standard Purchase Order is used to acquire goods and services.
2. A Limited Purchase Order is used to acquire items carried in inventory;
items required to repair and/or service a vehicle and equipment; and
items considered shop sundries.
3. A Blanket Purchase Order, which is similar to a Standard Purchase
Order, but represents an agreement between the City and a vendor
under which the vendor will provide goods to the City during an agreed
period of time with specific instructions and/or limitations. Supply &
Services may initiate and maintain Blanket Purchase Order
arrangements to facilitate the acquisition of the various goods and
services required by the City. Goods and services may then be obtained
directly from the vendor by the requisitioner in accordance with
purchasing procedures.
Blanket Purchase Order arrangements issued as a result of a competitive
process may be multi-year (subject to the terms and conditions of the bid
request).
Any Blanket Purchase Order issued to a vendor without competition shall not
exceed a time period of one year. At the expiry of such Blanket Purchase
Order, the Manager will re-evaluate the arrangement in accordance with
Section 04 Purchasing Principles of the Purchasing Policy. A new Blanket
Purchase Order is to be issued for subsequent requirements.
09.02 Procedures
Purchase Order preparation and circulation
Supply & Services responsibilities:
1. Complete Standard Purchase Order from online requisition OR in the
case of Limited Purchase Orders complete by hand.
2. Distribute copies as designated on the Purchase Order.
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Procedure Number: PUR 010-001
Standard Purchase Order Amendment or Cancellation
Amendments or cancellation of a Purchase Order or other forms of agreement
can only be initiated by communicating to Supply & Services in the form of an
authorizing memorandum or e-mail. Cancellations recommended on the basis
of "poor performance" must be accompanied by supporting information.
Contract terms and conditions in effect must be carefully reviewed prior to
initiating action so that the impact to both the Corporation and the vendor can
be quantified. There may be restocking fees or penalties so the condition of
goods must be assessed. Where services are provided, work may have to be
terminated on a job that is partially complete. Supply & Services is responsible
for providing investigative services and/or be the arbitrator to ensure vendor
relations as well as the user department's interest are protected.
Client responsibilities:
1. The Client department, in collaboration with Supply & Services is
required to review and analyze the impact to the Corporation with
respect to penalties or constraints which the Corporation may be
subjected to by amending or cancelling an order, contract or agreement
prior to notification of vendor.
2. Provide written request with related supportive information to amend or
cancel the Purchase Order.
Supply & Services responsibilities:
1. Review the amendment or cancellation requirements and supportive
information
2. Co-ordinate a meeting with the Client and/or Vendor and/or Legal
Services if deemed to be necessary.
3. Prepare an amended Purchase Order and/or otherwise communicate
with the vendor and client.
Blanket Purchase Order
Supply & Services responsibilities:
1. To determine if Blanket Order is a feasible method of purchasing in
collaboration with the client and vendor.
2. Request can be initiated by client, or reviewed by Supply & Services.
3. To set up Order and update Blanket Order listing and distribute to
Directors.
4. To monitor contract expiration dates in collaboration, where necessary, in
order to review before expiry.
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Procedure Number: PUR 010-001
10 Receiving Goods and Services
10.01 Overview
It is very important that goods and services provided are properly inspected
prior to acceptance. Failure to initiate immediate action in response to
incomplete transactions, damaged goods, inadequate service etc. can limit the
City's ability to obtain satisfactory restitution.
Goods and services received are accompanied by a packing slip or work order.
In the event either does not accompany the delivery, a receiving form is to be
prepared by the requisitioning department's employee receiving the goods or
services.
10.02 Procedures
Receiving
Client responsibilities:
To ensure goods are received and signed for by a representative of the
department. The inspection process shall include:
1. Inspect the packaging and note any damage on the receiving form.
2. If the goods are not acceptable do not accept.
3. If the goods are received unopened, write "subject to inspection" along
with signature on the bill of lading.
4. Note on the packing slip and bill of lading any visible damage to the
package.
5. Note on the packing slip any concealed damage (when package is
opened).
6. Compare the packing slip to the goods received for accuracy.
7. Keep the bill of lading and packing slip with the shipment in the event the
shipment has to be reported for damage or return.
8. Sign the receiving form and forward to Accounts Payable.
9. When releasing against a Blanket Order, ensure the proper account
number is indicated on receiving documents and that it is appropriately
authorized.
10. Advise Supply & Services in writing (email) of problems encountered with
the contract and/or vendor as soon as possible.
Exchange and Return
Supply & Services Responsibilities:
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Procedure Number: PUR 010-001
If the goods are initially accepted and subsequently deemed unacceptable
contact the vendor immediately and confirm return/new shipment
arrangements.
Client responsibilities:
1. Report any damage or make request for return in writing (email) to Supply
& Services.
2. Exchange and return situations must include notations with respect to the
reasons and damage (if applicable) on the receiving form.
3. Person who requested the return must identify returned goods on the
packing slip or receiving report and distribute copy to Accounts Payable.
4. Retain copy and attach to client's copy of Purchase Order to ensure
transaction is resolved.
5. Vendor to be contacted by Supply & Services or client as agreed to under
the circumstance.
11 Request for Information or Expression of Interest (RFEI)
11.01 Overview
A Request for Information (RFI) or Request for Expression of Interest (RFEI)
may be used prior to the preparation of a more formal bid solicitation using one
of the accepted purchasing methods. An RFI or RFEI can be used in a number
of circumstances including, but not limited to, pre -qualifying and/or establishing
a short list of qualified vendors as a front end to a more formal bid solicitation. It
can also be used to assist in developing options, better define scope or detailed
design and documentation requirements in the case of projects where there is
minimum reference or precedence or where new technologies may be involved.
11.02 Prohibitions, Restrictions and Compliance
The preparation and issuance of an RFI or RFEI shall be undertaken by Supply
& Services with the involvement of the appropriate department.
11.03 Procedure
The following are guidelines only:
A Request for Information or Request for Expression of Interest document
usually consists of the following:
• project title or name
• project summary
• method of submission including: time, dates, address, telephone
number, fax number
• outline of response requirements including the number of pages and
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Procedure Number: PUR 010-001
topics to be addressed
• contact person(s) where Vendor can get additional information
• overview of and timing of selection or short list of Vendors; and
• evaluation criteria if required at this stage.
The objective is to determine as much information or interest in the required
purchase of goods or services in order to proceed to a more formal request for
quotation, tender or proposal. It is expected that the results of the RFI or RFEI
will assist in the development of a more definitive approach to the marketplace
using the most appropriate purchasing method, contractual terms and
conditions and purchase agreement.
The type of information that might be required of a vendor could include:
• ability to work within budget and schedule
• alternatives availability
• availability of vendor
• cost implication regarding conversion, retraining, set up
• experience and expertise of the vendor
• financial stability of the vendor
• methodology proposed
• qualification of staff
• value added; and
• warranties available
A questionnaire can be used to obtain information regarding the vendor,
product or service offerings, capabilities, references and any other information
required to establish, pre -qualify or short-list vendors.
12 Request for Quotations
12.01 Overview
The Request for Quotations (RFQ) method of purchase is a competitive
method. The process generally follows the activities included in the typical
procurement cycle, Section 02. Depending on the degree of complexity or
dollar value of the procurement, it will be necessary to carry out many of these
activities albeit to a varying extent. The specifications for the goods and
services and terms of purchase should allow for competitive quotations to be
received. A sufficient number of vendors shall be requested to submit
quotations so that at least three responsive quotations are received.
12.02 Procedures
Client responsibilities:
1. Complete Purchase Requisition (Refer to Section 08).
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Procedure Number: PUR 010-001
2. Submit to Supply & Services any attachments by email or internal mail
quoting the requisition number.
Supply & Services responsibilities:
1. Review requisition to ensure all required information is completed and
ensure the RFQ is the most appropriate Purchasing Method.
2. Assign Quotation number.
3. Prepare Request for Quotation (RFQ).
4. Fax, mail or courier Request to selected vendors.
5. After closing date and time, at a specified location, review submissions.
Not a public opening.
6. Confirm that all of the required information is provided.
7. Complete evaluation summary.
8. Select lowest acceptable, responsive and responsible bid.
9. Review with client as necessary.
10. Obtain necessary approval from client department.
11. Request appropriate securities (if required) from vendor.
12. Issue Purchase Order or other form of contract.
13. Distribute copies as designated on the Purchase Order.
14. Vendor name and price which is subject of an award may be released to
unsuccessful bidders.
13 Request for Tenders
13.01 Overview
The Request for Tenders (RFT) method of purchase is a competitive method of
purchase that may include supplier or contractor pre -qualification. The process
generally follows the activities included in the typical procurement cycle,
Section 02. Given the complexity or dollar value associated with tenders it will
be necessary to carry out many of these activities. The specifications for the
goods and services and terms of purchase should allow for competitive tenders
to be received.
Tenders, for the most part, lend themselves to standard commodities and
services as well as 'traditional' construction contracts. Complex initiatives or
new technologies are better acquired by proposals.
13.02 Prohibitions, restrictions and compliance
All tenders are issued and received by Supply & Services.
Advertising is at the discretion of the Manager, but over $100,000 must be
advertised.
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Procedure Number: PUR 010-001
When advertised, should be in a publication of general circulation, the Internet
or chosen from a list of qualified bidders in accordance with the requirements of
the Purchasing Policy.
13.03 Procedures
a) Preparation and distribution of tendering documents
Tendering documents are issued by Supply & Services, in collaboration
with the client department. Requirements including specifications
contained within the document are to be specific, clearly stated, easily
understood, and are mandatory requirements that must be met by the
vendor in order to be considered.
Client responsibilities:
1. Complete Purchase Requisition (Refer to Section 08).
2. Submit to Supply & Services any attachments by email or internal
mail quoting the requisition number.
Supply & Services responsibilities:
1. Review Purchase Requisition to ensure all required information is
completed and the Request for Tender is the most appropriate
Purchasing Method.
2. Assign Tender number.
3. Advertisement should include a general description of the contract;
where and how the official tendering document can be obtained, the
closing date, time and location, and the cost for the official tendering
documents (if any). Any applicable mandatory site meeting or any
prequalification should be clearly identified in the advertisement.
4. Meet with client to review any questions or concerns.
5. Create and/or review draft Request for Tender.
6. Review any necessary changes with client approval if necessary.
7. Supply all prospective bidders with one copy of the official tendering
documents, bid label and a set of plans or specifications (if
applicable).
8. If a fee for the official tendering documents is requested, it shall be
paid to the City of Pickering. The Manager shall determine an
appropriate fee and it shall be non-refundable, unless otherwise
specified. If the fee is refundable, the fee shall be returned when
applicable conditions have been met, (i.e. original blank tender
document is returned in good condition and within the time
specified), and otherwise the fee shall be deemed to be non-
refundable.
9. Bidders are required to provide a bid deposit with their tender
submission (if requested) in accordance with the tendering
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Procedure Number: PUR 010-001
document. The amount may vary, depending upon the value or
scope of the tender. The bid deposit shall be retained by the City to
ensure that the bidder will enter into a contract and provides
additional surety documentation (or such other documents with
respect to the project) as requested.
10. Respond to enquiries during bidding period.
b) Record of Tendering Information
1. A list of prospective bidders shall be maintained by Supply &
Services in the tendering file.
2. It is essential that the name, address and telephone number of
prospective bidders are recorded when tender documents are
released to facilitate distribution of addenda.
c) Changes to Competition
Changes to a tender under call shall be made in the form of a written
addendum, i.e. change in specification; closing date has been extended;
competition has been cancelled. As well, interpretations to bidder inquiries
may also justify a change to a tendering call.
d) Notification of Addenda to Prospective Bidder
The following describes how the prospective bidders are notified:
1. For the purposes of this section, delivery shall mean delivery.
acknowledged by a receipt such as registered mail, courier, pick up,
or facsimile transmission.
2. Ensure Addenda is available to prospective bidders.
3. Ensure Addenda is posted electronically when tender is advertised
electronically.
4. Ensure that any Addenda accompany subsequent tendering
documents released.
e) Notification to Prospective Bidder When Competition Closing Date/Time
Has Been Extended
When the competition closing date/time for receiving tenders has been
extended, in addition to the addenda, an advertisement setting out the
revised competition closing information shall be inserted in the
publication(s) originally used, when practical.
f) Disposition of Tenders When Competition Closing Date/Time Has Been
Extended
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Procedure Number: PUR 010-001
9)
When the competition closing date/time for receiving tenders has been
extended, tenders already received shall be handled as follows:
• If the extension is two weeks or less, the bidder shall be advised that
their tender will be returned immediately upon receipt of a written
request to return.
• If the extension is more than two weeks, tenders already received
shall be returned unopened by hand delivery addressed to the last
known place of business.
Cancellation of Competition
1. Each prospective bidder who obtained tendering documents shall be
notified in writing of the cancellation of the competition by courier
addressed to the last known place of business. If practical,
notification of the delivery may also be given by telephone or
facsimile.
2. When a competition is cancelled, no further tenders will be received.
All tenders delivered to the City shall be time stamped and returned
unopened to the prospective bidders, by courier addressed to the
last known place of business.
h) Recall of Tenders
A tender may be recalled at the discretion of the Manager and the
appropriate Director, who shall set out the justification for such recall in
the final Report.
i) Withdrawal of Tender
1. A bidder who has submitted a tender may request that his/her tender
be withdrawn. The withdrawal shall be allowed if the request is
made before the competition closing date and time. Withdrawal
requests must be directed to the City by hand delivery, facsimile or in
person and signed by an authorized signing officer of the bidder.
2. Telephone requests shall not be considered.
3. Tenders confirmed as withdrawn prior to the competition closing
shall be returned unopened to the prospective bidder and recorded
on the Tender Summary Sheet as withdrawn.
4. Withdrawal requests received after the competition closing time will
not be received. The bidder concerned shall be informed that the
withdrawal request arrived too late for consideration. However, the
bidder may withdraw a tender during the tender opening under
certain circumstances. (Refer to Item 6 below).
5. Withdrawal of a tender does not disqualify a bidder from submitting
another tender on the same competition, if both the withdrawal
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Procedure Number: PUR 010-001
j)
notice and the subsequent tender are received prior to competition
closing.
6. When more than one tender is opened on the same day, a bidder
who has been read out as low on a previous tender (same day) may
withdraw from subsequent tenders in the following manner:
• A written notice of withdrawal, signed by the bidder, will be
handed to the Clerk before any bids are read out on the tender(s)
to whom it applies.
• The withdrawal notice shall be attached to the applicable bid and
the withdrawal shall be announced. The amount of the withdrawn
bid shall not be read out and shall be returned.
• Tenders withdrawn under this procedure cannot be reinstated.
Example - a bidder cannot reinstate a withdrawn tender if
subsequent checking proves that a tender submitted on a
previous contract was not, in fact, low bid.
7. Any correspondence requesting withdrawal of a tender discovered at
the public opening shall be read by the Clerk who shall state the
nature of the correspondence, the name of the bidder and the tender
number. The withdrawal notice shall be attached to the envelope,
and shall be returned to the bidder.
Opening Tenders
1. The public tender opening will take place at a specified time, date
and location.
2. A listing of tenders received consisting of the names of bidders for
each tender shall be available to people present at the tender
opening.
k) Opening Committee
1. A minimum of three City staff to include the Clerk, Manager and
appropriate Director or designates shall attend a public tender
opening.
2. Any other people may attend the public opening.
I) Action on Unknown Tender at Opening
Any tender that does not have the tender number or project description on
the envelope shall be opened and placed with its appropriate group by the
Clerk.
m) Action on Correspondence Found Enclosed in the Envelope
If correspondence is found enclosed with a tender in the envelope which,
in the opinion of the Clerk, could qualify the bid in any way, the tender
Procedure Title: Purchasing Procedure Page 18 of 35
Procedure Number: PUR 010-001
shall initially be considered an improper bid and shall be so noted in the
record of tenders opened and the tender read out in the normal manner.
This or any additional correspondence and the tender shall be referred to
the Manager for a decision as to its acceptance or rejection at a later time.
n) Action When More Than One Tender Under Same Name
1. If more than one tender is received under the same name for the
same competition without any notice of withdrawal, the tender
contained in the envelope bearing the time closest to the competition
closing time shall be considered by the Clerk the intended bid. The
other tender(s) received for that bidder shall be considered
withdrawn and returned to the bidder in the usual manner. (Refer to
Section 13.03 subsection i)).
2. If two tenders are received in the same envelope, the properly
executed copy or if both are properly executed and prices differ, the
lower price shall be considered the intended bid.
o) Announcing Bid Amounts and Recording Information
1. When all tenders have been accounted for, the Clerk shall announce
the following details for each tender, the contract number, the name
of the bidder and the total bid amount. Other requirements may be
checked and read out as well, (e.g. the amount of the bid deposit,
agreement to bond form, addenda).
2. The tender summary sheet shall be used to record information read
out at the opening.
3. If other things need to be checked by the Clerk, the Manager will
advise.
4. When all tenders have been read out and the information has been
recorded, the Tender Summary Sheet shall be closed off by drawing
a diagonal line in the unused space under the information listed.
5. The signatures of all people present must appear on the Tender
Summary Sheet.
p) Alternate Bid
When provided for in the tendering document, a bidder may submit an
alternate to the specifications, such alternate tender shall be identified as
an Alternate Bid, read out and recorded.
q) Evaluation
1. Tendering documents shall be checked for compliance to tendering
requirements and non-compliance shall deem the tender to be
irregular.
Procedure Title: Purchasing Procedure Page 19 of 35
Procedure Number: PUR 010-001
2. Extreme care must be exercised to ensure that irregular tenders are
handled in a manner which is fair to the bidders, the public and in the
best interest of the City.
3. An irregularity which deems a tender an "automatic rejection" and
discovered during the public tender opening, shall be stated aloud,
shall be so noted on the tender summary sheet and pricing shall not
be read out. When rejection of Tender is discovered after the tender
opening, it shall be so noted on the tender summary sheet and
pricing shall not be carried forward.
4. An irregularity which may deem a tender "subject to further review"
discovered during the public tender opening, shall be stated aloud,
shall be so noted on the tender summary sheet and pricing will be
read out. An irregularity discovered after the tender opening, its
acceptability is still subject to further review. If it is acceptable, bid
information will be carried forward. If it is not acceptable, bid
information will not be carried forward.
r) Checking Tendering Documents
Tenders shall be checked as soon as practical following the public tender
opening. The following details are checked:
• tendering envelope is clearly marked and sealed
• required form of tender has been used
• tender must be legible and completed in ink
• bid is properly executed
• bid sets out the base price in the terms called for in the tendering
documents
• bid deposit is provided and in an acceptable form
• agreement to bond (bonding) is provided and in an acceptable form
• bid is not qualified
• bid is submitted by a qualified bidder on a pre -qualified tender call, if
applicable
• additional tendering requirements have been met
• tender meets specifications
• erasure, overwriting, or strikeout initialled by the person signing the
document
• tender is not obscured by the use of correction fluid or correction
tape
• tendered unit prices and extensions are available for checking; and
• unit price shall govern and extension will be corrected accordingly
s) Action When Bid is Rejected
1. When checking procedures are completed, a bidder who has had a
tender rejected shall be advised in writing.
Procedure Title: Purchasing Procedure Page 20 of 35
Procedure Number: PUR 010-001
2. The completion summary memorandum to the appropriate Director
shall include the details of the rejected bids.
t) Action Where Two or More Bids Received in the Same Amount
Where two or more responsive and responsible bidders have submitted
bids and have bid the same amount refer to Purchasing Policy Item 23.02,
No. 22.
u) Competition Summary
A competition summary memorandum which includes a recommendation
shall be prepared by Supply & Services and sent to the appropriate
Director.
v) Award of Tender
1. A Report to Council recommending the award shall be prepared by
the Client and signed by the appropriate Director, Manager and
Treasurer if there are financial implications. The Director shall
include comments about the recommended bidder's past
performance, funds available, account charges, project cost, and a
recommendation for approval to accept a tender.
2. Notwithstanding the guidelines for irregular tenders, the Council
may, in its sole discretion, waive any irregularity.
3. The City reserves the right to accept, not accept or reject any tender.
4. Upon acceptance of a tender, the bidders shall be notified of the
award.
w) Disposition of Bid Deposit
Following the opening of tenders, all deposits other than the deposits of at
least the low three bidders may be returned to the applicable bidders. If
deposits are returned by hand delivery, acknowledgement of receipt in
writing must be signed by the bidder. The retained deposits will be held
until the contract is awarded and deposits other than the deposit of the
successful bidder shall be returned via courier.
x) Action upon Tender Acceptance - Execution of Contract
1. When a recommendation to accept a tender is approved, the bidder
shall be advised as soon as practical and shall be considered under
contract for tendered work upon receiving confirmation from the
Manager.
2. The bidder shall be allowed ten working days from the date of
receiving confirmation to provide acceptable securities. Once
Procedure Title: Purchasing Procedure Page 21 of 35
Procedure Number: PUR 010-001
y)
received, the deposit of the bidder shall be returned as
aforementioned.
Bonding Requirements
1. When requested in the tendering documents, a Performance Bond
and/or Labour and Material Payment Bond for the specified amount
issued by a Bonding Company satisfactory to the Treasurer, must be
furnished by the bidder within ten days of the acceptance of the
contract.
2. In the event the bidder wishes to substitute for any of the bonding
requirements a certified cheque, bank draft, money order or letter of
credit, such substitute must be approved by the Treasurer.
z) Action When Successful Bidder Does Not Enter Contract
If a contract has been awarded and a successful bidder:
1. Fails to fulfill necessary requirements, (e.g. provide acceptable
securities, contract bond, cash or other acceptable collateral) within
the specified time, additional time may be granted or
recommendation may be submitted to the original approving
authority (i.e. Chief Administrative Officer or Council):
• that the tender shall be awarded to the next higher bidder; or
• that the competition shall be cancelled.
2. Indicates the work of the contract will not be performed, with the
concurrence of the Director, recommend to the original approving
authority (eg. Chief Administrative Officer or Council):
• that the tender shall be awarded to the next higher bidder; or
• that the competition shall be cancelled,
3. In both of the aforementioned situations, the deposit of the
successful bidder shall be forfeited to the City. In addition, the City
may claim for damages.
4. If a deposit was not requested for the contract and a successful
bidder fails to fulfill necessary requirements or fails to enter into or
perform the contract, the City may claim for damages.
13.04 Tendering Irregularities
Guideline for handling irregularities:
1. To maintain the integrity of the public tendering process.
2. 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.
3. To ensure that the City's policy for dealing with irregular tenders promotes
fair competition.
Procedure Title: Purchasing Procedure Page 22 of 35
Procedure Number: PUR 010-001
4. To ensure that any bid accepted by the City is legally capable of being
accepted.
5. To ensure that no bidder can avoid it's tender by its own default or
mistake.
6. Irregularities that go beyond the scope of these guidelines shall be
reviewed with the Treasurer who shall consult with the Chief
Administrative Officer who shall have the final decision on acceptance or
rejection of the bid.
7. Tendering irregularities will be dealt with as follows:
Procedure Title: Purchasing Procedure
Procedure Number: PUR 010-001
Page 23 of 35
Irregularity
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
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
Procedure Title: Purchasing Procedure
Procedure Number: PUR 010-001
Page 23 of 35
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.
12.
Bid received from a bidder who has not
been approved as a pre qualified bidder
under a prequalification process
• Automatic rejection
Procedure Title: Purchasing Procedure
Procedure Number: PUR 010-001
Page 24 of 35
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 (i.e. bidder's
address is amended by over -writing but
not initialed)
• Two working days to correct and 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 and 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.
21.
Withdrawal of bid
• Withdrawal of bids received after the
closing date and time will not be
allowed.
Procedure Title: Purchasing Procedure
Procedure Number: PUR 010-001
Page 25 of 35
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.
14 Request for Proposals
14.01 Overview
The Request for Proposals (RFP) method of purchase is a competitive method
of purchase that may or may not include Vendor pre -qualification. The process
generally follows the activities included in a typical procurement cycle, Section
02. Depending on the degree of complexity or dollar value associated with the
proposal it will be necessary to carry out many of these activities albeit to a
varying extent.
Some or all of the specifications and contract terms and conditions may not be
determined prior to proposals being solicited. Depending upon the terms of the
proposal call, the process may involve negotiations subsequent to the
submission of proposals on any or all of the specifications, contract terms and
price. Proponents may or may not be invited or permitted to submit a final and
best offer.
The use of proposals allows for greater flexibility in selecting a successful
bidder, however, all proponents are to be given the same information, and must
be treated equally and fairly. The RFP document still forms the basis for the
contract. The contract may include information that was not originally specified
in the RFP document.
Procedure Title: Purchasing Procedure Page 26 of 35
Procedure Number: PUR 010-001
With regard to professional services, it is the intention of the City to employ
consultants generally on the basis of their perceived competence and expertise
relative to the project in hand, the cost of their services, their ability to complete
the work within the required time, and their past record in performing similar
work.
A Request for Information or Request for Expression of Interest may be issued
in advance of a proposal to assist in the development of a more definitive set of
terms and conditions, scope of work and the selection of qualified Vendors.
Alternatively, it may be incorporated into the proposal document where pre -
qualification of Vendors is required
14.02 Procedures
Client responsibilities:
1. Complete Online Purchasing Requisition (Refer to Section 08).
2. Submit any attachments by email or internal mail quoting the requisition
number.
Supply & Services responsibilities (and Client where indicated):
1. Review requisition and/or meet with Client for an initial meeting to ensure
all required information is available and the Request for Proposal is the
most appropriate Purchasing Method.
2. If not already submitted, request the Client to prepare a description of the
scope of work/service.
3. Assign RFP document number.
4. Prepare draft proposal document (may be prepared by the Client if
applicable).
5. Review draft document with Client. Discuss specific areas such as
methodology, timelines, evaluation process and criteria.
6. Advertise request for proposal (only if required) including a general
description of the proposal, where and how the document can be
obtained, the closing date, time and location, and the cost for the
documents (if any).
7. Circulate documents to prospective respondents.
8. Respond to enquiries during bidding period.
9. Receive proposals (which are not a public opening).
10. Review submissions.
11. Complete preliminary summary and provide to client.
12. If required, meet with Client to review proposals received.
13. If required, establish an evaluation committee with a minimum
composition of two representatives from the Client department and one
from Supply & Services.
Procedure Title: Purchasing Procedure Page 27 of 35
Procedure Number: PUR 010-001
14. In conjunction with the Client, complete criteria and establish a weight for
each criteria.
15. Each member of the evaluation committee is given a copy of the proposal
response and evaluation criteria. Members to evaluate each response
against the criteria.
16. Receive the completed evaluation from each evaluation committee
member and transfer all figures to a summary to show the complete
evaluation from all members for each response.
17. Total all committee member figures for each respondent and establish an
average score.
18. Review the results with the evaluation committee. The committee has the
option of the following:
a) Select respondent who has the highest average score. If required,
Supply & Services sets up a meeting with the selected proponent
and the committee members. This meeting is called to confirm
understanding of the Scope of Work/Services as set out in the
proposal and to finalize timelines.
or
b) If scoring is close, the evaluation committee could decide to
interview all of the three proponents with the highest scores. Supply
& Services sets up an interview session with each proponent. The
Evaluation Committee prepares interview questions. Proponents
may or may not get a copy of the questions prior to interview. A
matrix is then created to evaluate the proponent's responses in the
interview session and to establish the successful proposal.
19. If an evaluation committee is not required, Supply & Services select
acceptable proposal.
20. Award proposal call as follows:
• For proposals under $75,000 submit recommendations to the
Manager, subject to consultation with the appropriate Director and
confirmation of funding by the Treasurer;
• For proposals between $75,000 and $125,000 Director submit
recommendation to Director and Chief Administrative Officer; or
• For proposals over $125,000 Director to prepare report with
recommendation to Council.
21. Receive approvals, notify successful vendor, issue Purchase Order and/or
agreement.
22. Send a letter of regret to unsuccessful proponents (optional).
23. Resolve any contract administration or pricing issues with accounting
service, client, and vendor.
Procedure Title: Purchasing Procedure Page 28 of 35
Procedure Number: PUR 010-001
15 Emergency Purchases — Over $1,000
15.01 Overview
In the event of an emergency, the Purchasing Policy permits the Manager to
act accordingly. An emergency is defined as an event that could not be
foreseen, that is a threat to the public health and welfare, the public service, or
public property that requires the immediate delivery of supplies or the
performance of service. The direct acquisition of goods or services is deemed
essential. Existing Blanket Purchase Agreements may be used to respond to
the emergency. Alternatively new supply arrangements may have to be
developed. It is in everyone's best interest to minimize such incidences and
limit the application of this procedure to genuine emergency situations.
The responsibility for requesting the emergency acquisition rests with the Chief
Administrative Officer, respective Director or their designates.
15.02 Procedure
In the event of an emergency, Supply & Services will work with the client and
the vendor community to obtain the necessary goods and services. If
circumstances are such that Supply & Services are not available, the client will
contact the vendor community directly.
Client responsibilities:
1. Evaluate the emergency situation in terms of the imminent need for goods
and services.
2. Contact Supply & Services to establish supply arrangements. In the event
of an emergency during business hours the requisitioner must obtain a
purchase order and any necessary departmental approvals.
3. In the event that contact cannot be made with Supply & Services proceed
to establish supply arrangements directly.
4. Prepare a Purchase Requisition (Refer to Section 08). In the case of
requisitions for goods already ordered/acquired under an emergency
purchase order, provide the following by the next business day:
• purchase order number if already obtained from Supply & Services
• vendor name and address
• method of shipping
• FOB terms
• pricing
• taxes
• confirmation and delivery date.
5. Prepare a memorandum outlining the circumstances that required the
emergency purchase of goods and services and submit to Supply &
Services.
Procedure Title: Purchasing Procedure Page 29 of 35
Procedure Number: PUR 010-001
Supply & Services responsibilities:
1. Upon notification of an emergency situation requiring the immediate
acquisition of goods and services, establish necessary sources of supply
consistent with consideration to best business practice but without the
need for competition if this requirement cannot be met.
2. Upon receipt of the Purchase Requisition, process a Purchase Order, in
accordance with normal purchasing procedures.
3. Review the memorandum report, and prepare or otherwise obtain any
necessary post approvals in accordance with emergency provisions of the
Purchasing Policy.
4. In the event that the purchase requires the approval of Council, the
provisions of the Purchasing Policy shall apply.
16 Disposal
16.01 Overview
Disposal involves the sale, exchange, transfer of goods owned by the City that
are surplus to its needs. Goods may be disposed of by several methods
including but not limited to public auction, co-operative purchasing, call for
competitive bids, trade-in, donation to charity or educational institute,
scrapping, or as Council may otherwise direct. Unless otherwise stated items
subject to disposal are considered "As is, where is". The Manager is authorized
to dispose of surplus or obsolete goods and equipment by using it in other
departments or, if no longer useful for municipal purposes, arrange for their
disposal in a cost effective and efficient manner.
Real property (lands, buildings, tenements and any interest, estate or right or
easement affecting same) is to be disposed of in accordance with the policies
adopted by Council from time to time.
All net proceeds from the disposition of any surplus goods or property shall be
deposited to the credit of the general revenue of the Corporation.
16.02 Prohibitions, restrictions and compliance
Employees, members of Council, Committee or Board may not purchase any
item(s) directly from the City unless disposed of by public auction.
Anyone who knowingly contravenes the Purchasing Policy commits an act of
misconduct and is liable to disciplinary action.
16.03 Procedure
Client responsibilities:
Procedure Title: Purchasing Procedure Page 30 of 35
Procedure Number: PUR 010-001
1. When goods owned by the City (fixed assets) are no longer required
within a department, the Director shall advise remaining Directors to
determine if there is a use for the item(s) elsewhere in the City's
operation.
2. If an item is transferred from one department to another, a Tangible
Capital Asset form shall be completed by the originating department,
approved by Director and forwarded to Corporate Services for processing.
3. If no Director has an interest in the item(s) and it is available for Supply &
Services as a trade-in on an upcoming acquisition, Supply & Services
shall be advised.
4. When an item is offered as a trade-in, a Tangible Capital Asset form shall
be completed by the originating department, approved by Director and
forwarded to Corporate Services for processing and a copy forwarded to
Supply & Services.
5. When no Director has an interest in the item(s) and it is not being offered
as a trade-in, it shall be declared surplus and disposed of by way of public
auction or Supply & Services may determine an alternative method of
disposal. A Tangible Capital Asset form shall be completed by the
originating department, approved by the Director and forwarded to
Corporate Services for processing.
6. When goods are deemed to be scrap, a Tangible Capital Asset form shall
be completed by the originating department, approved by Director and
forwarded to Corporate Services for processing and a copy forwarded to
Supply & Services. An appropriate method of disposal shall be
determined by Supply & Services.
Supply & Services responsibilities:
1. Arrange for the surplus goods to be auctioned or otherwise dispose of
them. Sale proceeds shall generally be in the form of cash, certified
cheque, credit note or any combination at the time of disposal.
2. Upon receipt of any sale proceeds, verify receipt against goods sold, and
forward proceeds to Accounting Services.
3. Maintain a record of any transactions for reporting purposes.
17 Co-operative Purchasing
17.01 Overview
The Manager may enter into arrangements with municipalities, local boards and
other public bodies or public authorities on a co-operative or joint venture basis
where there are economic advantages and where the best interests of the City
would be served in so doing; providing that under such arrangements the
method of acquisition used is a competitive method similar to that described in
the Purchasing Policy and the awarding and reporting of such contracts is
generally in accordance with the requirements of the Policy.
Procedure Title: Purchasing Procedure Page 31 of 35
Procedure Number: PUR 010-001
The co-operative method of purchasing with other public agencies shall be
utilized when advantageous and practical.
17.02 Procedure
Supply & Services responsibilities:
1. Submissions relating to the City shall be received by Supply & Services. A
recommendation shall be prepared and forwarded with a summary and, if
required, copies of the submissions, to the appropriate Director or
designate in accordance with normal purchasing procedures.
2. The Director or designate shall respond in writing, including account
number(s) and budget available.
3. When the budget allocation is available and an evaluation deems an RFP,
RFQ or RFT acceptable an award can be made.
4. A contract may be established upon such terms and conditions deemed
beneficial to the City.
18 Vendor Performance
18.01 Overview
It is very important that a vendor's performance is evaluated on an ongoing
basis; not only to ensure compliance to the contract terms and conditions, but
also to provide some basis for resolving disputes and/or dealing with
requirements for additional or future business with the City.
Contract terms and conditions in effect must be carefully reviewed prior to
initiating action so that the impact to both the Corporation and the vendor can
be quantified. Where services are provided, work may have to be terminated on
a job that is partially complete. Supply & Services is responsible for providing
investigative services and/or be the arbitrator to ensure vendor relations as well
as the user department's interest and those of the City are protected.
Supply & Services, in conjunction with Client departments, will provide more
formal evaluation criteria for specific classes of purchase (e.g. blanket order
vendors). The results of an evaluation shall be considered for future projects.
18.02 Procedure
Client responsibility:
1. Document performance concerns on a timely basis.
2. Copy Supply & Services on any correspondence to vendors dealing with
performance issues.
3. Request Supply & Services assistance in resolving performance issues.
Procedure Title: Purchasing Procedure Page 32 of 35
Procedure Number: PUR 010-001
4. As requested by Supply & Services, complete a bidder's evaluation form,
obtain the signature of the appropriate Director and send to Supply &
Services.
Supply & Services responsibilities:
1. Provide the necessary support to bring satisfactory resolution to vendor
performance issues up to and including termination and provision of new
sources of supply.
2. Maintain a bidder's rating system(s).
3. Provide a bidder's rating to that bidder upon request by the bidder.
4. Remove a bidder from the list of bidders for future projects.
Note: Future shall be considered as a minimum of one year from the
date a bidder is notified or the project term. After such time has lapsed, a
bidder may be added to the List of Bidders upon request by the bidder
and after satisfactory evaluation to confirm acceptability.
19 Client Responsibilities
Item 06.08 Informal Quotation Method $1,000 - $5,000
(1) Client department staff to obtain H&S and insurance related documents and
requisite approvals prior to submitting a requisition. Director 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.
Item 10.03 Consulting and Professional Services
(2) Client department staff to obtain H&S and insurance related documents and
requisite approvals 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.
20 Accessibility Considerations
20.01 Staff shall consider and, where appropriate, include one or more of the
following matters when preparing specifications for the acquisition of goods
and services:
1. The availability of a product or service with similar utility which
provides a higher level of accessibility.
Procedure Title: Purchasing Procedure Page 33 of 35
Procedure Number: PUR 010-001
2. Universal design principles.
3. Giving preference to goods and services which provide a higher level
of accessibility for persons with disabilities.
20.02 The Manager shall encourage accessible purchasing practices and
promote the use of and utilize the resources listed in Appendix 1.
Appendices
Appendix 1 Resources for Procurement of Accessible Goods and Services
Procedure Title: Purchasing Procedure Page 34 of 35
Procedure Number: PUR 010-001
Appendix 1
Resources for Procurement of Accessible Goods and Services
1. Accessible Procurement Toolkit: http://www.ap-toolkit.info/default.asp
2. 2007 Facility Accessibility Design Standards, City of London, Ontario —
http://www. london.ca/city-hall/accessibility/Documents/FADS 2007 final.pdf
3. International Best Practices in Universal Design, March 2006 -
http://www.gaates.org/documents/BP en.pdf
Procedure Title: Purchasing Procedure Page 35 of 35
Procedure Number: PUR 010-001