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HomeMy WebLinkAboutCS 10-03 REPORT TO FINANCE & OPERATIONS COMMITTEE Report Number: CS 10-03 Date: February 7, 2003 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Amendment to Purchasing Policy Regarding Consulting Services Recommendation: 1. That Report CS 10-03 of the Director, Corporate Services be received for information and that: 2. the Purchasing Policy as approved by Council at its meeting on November 5, 2001 be amended to revise the delegation of authority for the engagement of consulting services as described in this report; and, 3. the appropriate officials of the City of Pickering be given authority to give effect thereto. Executive Summary: Purchasing Policy & Procedures were approved under Bylaw 5900/01 by Council at its meeting on November 5, 2001. Under this By-Law, the engagement of consulting services is limited as it only relates to consulting with respect to litigation or when a request for proposal process is utilized to acquire consulting service. A more clearly defined delegation of selection and spending authority from Council for the engagement of consultants is required. The amendment will provide some further definition, within specified degrees of latitude, thereby assisting in ensuring a smooth and effective process. Financial Implications: The recommended changes do not change the financial limits but rather clarify the wording in their application. Background: Current Policy The current policy as approved by Council exempts the engagement of consulting services if consulting is related to litigation (Reference: Appendix A of the Policy) and if not, the engagement may be made through the use of a Request for Proposal process (Reference: Item 04.09, Page 6 and 7 of the Policy). Report CS 10-03 Date: February 7, 2003 Subject: Amendment to Purchasing Policy Regarding Consulting Services Page 2 Under the current policy, when and if consulting and professional services is made through the use of a Request for Proposal process, the Manager, Supply & Services, subject to consultation with the appropriate Department Head, shall approve the award of a proposal for services up to $25,000; the Manager, Supply & Services, in consultation with the appropriate Department Head will recommend or concur in a recommendation to the Chief Administrative Officer who shall approve the award of a proposal for the purchase of services from $25,000 - $50,000; and for proposals over $50,000, the Selection Committee is to prepare a report with a recommendation to Council. The policy only provides direction when an RFP process is used for consulting or professional services, or when the consulting service is related to litigation. There are occasions when consulting or professional services outside of the policy categories are required and approval to proceed in a timely manner is required. For example: when a consultant is requested by a Department Head and selection is not made through an RFP process, the CAO may be requested to approve the request. Recommendations for Amendment A policy amendment to revise the delegation of authority for the engagement of consulting and professional services (when an. RFP process is not used) is recommended. Following is a recommended amendment to the Purchasing Policy, Classification: PUR; Category: 010; Subject: 001, Item 04.09: Delegation of Authority for the Engagement of Consultants and Professional Services Authorit Manager, Supply & Services can award subject to Department Head and CAO a roval Manager, Supply & Services can award subject to Department Head approval Dollar Limit Up to $50,000 Up to $5,000 Manager, Supply & Up to $50,000 Services can award subject to CAO approval Conditions In conjunction with Treasurer and appropriate Department Head where . purchasing procedures have been followed. Where purchasing procedures have been followed. Where it is not possible to follow purchasing procedures due to emergency, time constraints etc. a roval of Treasurer re uired. Where purchasing procedures have NOT been followed, written explanation by Dept Head to GAO, award subject to CAO approval who will a rise Council accordin I . Report CS 10-03 Date: February 7, 2003 Subject: Amendment to Purchasing Policy Regarding Consulting Services Page 3 The revised delegation of the selection and spending authority for the engagement of consultants and professional services will allow Council to delegate to the CAO approval up to $50,000 spending authority without conditions, subject to Treasurer's approval of funding. Where purchasing procedures have been followed, the revision will allow the CAO to delegate up to $5,000 spending authority to the Department Head, subject to the Treasurer's approval of funding. Where it is not possible to follow purchasing procedures, the revision will allow the CAO to delegate up to $5,000 spending authority to the Department Head with the approval of the Treasurer, subject also to the Treasurer's approval of funding. Where purchasing procedures have not been followed, will allow Council to delegate to the CAO approval of the requisite spending authority, who requires written explanation by the Department Head, and subject to the Treasurer's approval of funding. The CAD will apprise Council accordingly. The engagement of consultants and professional services over $50,000 remains subject to Council approval, in accordance with the Council approved Purchasing Policy. Attachments: Not applicable Approved 1 Endorsed By: ~ij-~~ Gillis A. Paterson Director, Corporate Services & Treasurer GAP:vw Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Council /:/ /. "