HomeMy WebLinkAboutCS 30/01
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REPORT TO COUNCIL
FROM:
Gillis A. Paterson
Director, Corporate Services & Treasurer
DATE: September 20,2001
REPORT NUMBER: CS 30-01
SUBJECT: Request for Proposal
RECOMMENDATION:
It is recommended that Report CS 30-01 of the Director, Corporate Services & Treasurer be
received for information.
ORIGIN:
Director, Corporate Services & Treasurer
AUTHORITY:
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The Municipal Act, R.S.O. 1990, as amended and Regulations Thereunder
FINANCIAL IMPLICATIONS:
Not applicable.
EXECUTNE SUMMARY:
Not applicable.
BACKGROUND:
Over the course of the last month, Purchasing and Finance staff have held a number of meetings
to develop a Purchasing By-law. This initiative was undertaken as it was time to review the
current Purchasing Policy and to address concerns raised around Request for Proposal
procedures. Weare now at the stage where we are just completing some fine tuning. I have
attached a copy of the draft by-law for your information and expect this by-law to be forwarded
to the Finance Committee for final approval in October.
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In addition, I have included an excerpt from the draft Purchasing Procedures that covers detailed
procedures pertaining to Request for Proposal. While staff procedures are not normally
submitted to a Committee or Council it was felt that, due to the nature of this item, it was
appropriate in this case. There are still a number of meetings to be held which have been
scheduled over the next couple of weeks. We are targeting that the Purchasing Procedures will
be released around the same time. However, timing restrictions may precipitate that the
Purchasing Procedures be released in November.
Report to Council CS 30-01
Subject: Request for Proposal
Date: September 20, 2001
Page 2
ATTACHMENTS:
1. Draft Purchasing By-Law
2. Draft Purchasing Procedures
GAP:vw
Recommended for the consideration of Pickering
City Council
Thomas J. uinn, Chief Administrative Officer
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Prepared / Approved / Endorsed By:
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'-1JiUis A. Paterson
Director, Corporate Services & Treasurer
Pickering draft policies and procedures September 19,2001
2.0
PURCHASING BY -LAW
ATTACHMENT#-L- TO REPORT#~ ~o- OJ
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THE CORPORATION OF THE CITY OF PICKERING
BY-LAW NUMBER-
l>~~1"
ESTABLISHING POLICIES GOVERNING THE PURCHASE
AND DISPOSAL OF GOODS AND SERVICES
(Hereinafter called the Purchasing By-law)
WHEREAS the Council of the Corporation of the City of Pickering (hereinafter the City) has
sole authority to allocate funds through its adoption of budgets for approved corporate programs
and objectives;
AND WHEREAS the City recognizes the need for sound and effective purchasing policies for
the commitment of public funds in the acquisition of goods and services;
AND WHEREAS this by-law establishes the authority and responsibilities governmg the
purchase and disposal of goods and services subject to certain exceptions;
AND WHEREAS in the interests of administrative efficiency and the elimination of unnecessary
__ duplication of service, the Library Board has historically adopted the purchasing policies and
procedures of the City and have relied on the staff of the City to provide certain services for their
purchasing needs;
AND WHEREAS the City of Pickering and the Town of Ajax have formed the Ajax Pickering
Transit Authority as a separate entity as in a board o.r commission;
AND WHEREAS this by-law anticipates the continuation of the cooperative arrangements
between the City and the Library Board;
AND WHEREAS the Council of the Corporation has by resolution adopted on ( date) authorized
the enactment ofthis by-law and the repeal of resolution #35/89 item #15 and any other By-laws
or resolutions formerly governing the subject matter of this by-law;
NOW THEREFORE the Council of the Corporation enacts as follows:
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Pickering draft policies and procedures September 19,2001
PURCHASING POLICY
DRAFT
1.00 PURCHASING PRINCIPLES
The Manager, Supply & Services (hereinafter referred to as the Manager) shall:
1.01 Be responsible for the provision of purchasing services for the acquisition and disposition
of all goods and services required by the City, the library Board and the Ajax Pickering
Transit Authority (hereinafter referred to collectively as the City).
1.02 Arrange for the procurement, by purchase, rental or lease, the required quality and
quantity of goods and services in an efficient and cost- effective manner.
1.03 Ensure the greatest value for the City by exercising professional purchasing practices, free
from influence and interference, and encourage where practical, standardization and open
and competitive bidding.
1.04. Promote acceptance of bids based on total acquisition and life cycle cost rather than the
lowest bid received.
1.05 Provide for the appropriate level of delegated commitment authority to enable clients to
- meet service level expectations.
1.06 Assist in the facilitation, comparison and assessment of alternate service delivery options.
1.07 Encourage wherever possible, specifications that are environmentally responsible and
friendly.
2.00 AUTHORITIES AND RESPONSIBILITIES
2.01 The Manager, who shall report to the Director of Corporate Services and Treasurer,
(hereinafter referred to as the Treasurer) is hereby given the authority and responsibility
to operate a centralized purchasing program on behalf of the City of Pickering in
accordance with the requirements of this By-law and to act on behalf of the City in
entering into contracts with third parties for the purchase and disposal of all goods and
servIces.
2.02 The Manager, with the approval of the department head responsible for the employees
concerned, may delegate to an employee or employees who are not in Supply & Services,
all or part of the authority to purchase goods and services up to an amonnt of $500 on the
understanding that employees use their own judgement to promote the objectives of this
by-law in any competitive or direct purchase.
_ 2.03 Goods and services with an estimated total purchase price greater than $500 and not
exceeding $5,000, shall be obtained by the Manager by whatever method of purchase
deemed appropriate. Informal written quotations should be sought whenever possible for
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Pickering draft policies and procedures September 19'8~
purchases between $5,000 and $25,000. After consultation with the appropriate ~P}"
department head, the Manager shall approve an award upon such terms and conditions
deemed beneficial to the City on the understanding that the objectives of this by-law in
any competitive or direct purchase are met.
2.04 Goods and services with an estimated total purchase price greater than $25,000 and not
exceeding $100,000, shall be obtained by the Manager by endeavouring to obtain a
minimum of three written quotations. Where the compliant quotation meeting
specifications and offering the best value to the City is acceptable, and subject to
consultation with the appropriate department head, the Manager shall approve the award.
2.05 Goods and services with an estimated total purchase price greater than $100,000 shall be
obtained by the Manager by sealed public tender. Tenders will be publicly advertised or
by invitation from a list of qualified bidders, or a combination thereof, Tenders will be
issued, received and then opened in public. Tenders that are late, illegible, unsigned,
contain insufficient deposit, contain uncertified cheques, 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 ofthe Treasurer.
Where the compliant tender meeting specifications and offering the best value to the City
is acceptable, and subject to consultation with the appropriate department head, the
,- Manager will recommend or concur in a recommendation to the Chief Administrative
Officer who shall approve the award.
In the case of purchase arrangements that exceed one year or allow for extension for more
than one year subject to satisfactory negotiations, and the value of the original term or
results of any extension will result in the total contract price exceeding $100,000 the
report recommending award shall so indicate.
2.06 Where the recommended tender is not from the lowest acceptable bidder, the award must
be approved by Council.
2.07 Notwithstanding the provisions of Section 2.00, goods and services including but not
limited to the acquisition of consulting and professional services may also be made
through the use of Requests for Proposals (RFP).
The Manager, subject to consultation with the appropriate department head shall approve
the award of a proposal for the purchase of goods and services up to $25,000.
The Manager, subject to 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 goods and services from $25,000 -
$50,000.
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Where it expected that the total purchase price is greater than $50,000, a selection
committee shall be established consisting of the Manager, the initiating department head
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Pickering draft policies and procedures septemb.J:;J~l4J:r
and other individuals having appropriate expertise. The selection committee shall
determine a recommendation for award. A joint report setting out the recommendation
shall be submitted by the Manager and department head to the appropriate Standing
Committee and Council who shall approve the award.
In the case of purchase arrangements by Request for Proposal (RFP) that exceed one year
or allow for extension for more than one year subject to satisfactory negotiations, and the
value of the original term or results of any extension will result in the total contract price
exceeding $50,000 the report recommending award shall so indicate.
2.08 The Manager shall ensure that all recommendations dealing with the award of tenders or
proposals contain the appropriate funding statement from the Treasurer.
2.09 Notwithstanding 2.01, subject to ~tatutory requirements and where all the requirements of
this By-law have been met, the appropriate officials are authorized to execute formal
contracts.
2.10 Authorities and responsibilities shall be applied and administered having regard to the
provisions ofthe Corporate Financial Controls By-law.
2.11 Authorization limits shall adjust annually in accordance with the Consumer Price Index as
- published by Statistics Canada and the Manager shall advise accordingly.
2.12 Where an official of the City is authorized to act pursuant to this By-law such act may be
done by such official's authorized designate.
3.00 NEGOTIATION
The Manager, is authorized to enter into negotiations without formal competitive bids, under the
following circumstances:
3.01 When an event which could not be foreseen occurs, that is a threat to public health,
service, welfare or public property, and requires the immediate delivery of supplies or
performance of service.
3.02 When competition is precluded because of the existence of a sole source, patent rights,
copyrights, secret processes, control of basic raw material or similar circumstances.
3.03 When bids have been solicited and no responsive bid has been received, or the lowest bid
received exceeds the estimated cost, or the lowest bids received are identical.
3.04 When all bids fail to comply with the specifications or conditions and it is impractical to
recall.
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3.05 When the extension or reinstatement of an existing contract would prove most cost-
effective or beneficial. The extension shall not exceed one year.
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Pickering draft policies and procedures September DRAFT
3.06 When a fluctuating market prevents the Manager from obtaining price protection or
owing to market conditions, required goods or services are in short supply.
4.00 EMERGENCY PURCHASE
4.01 In a situation where the immediate purchase of goods or services is essential to prevent
serious delays, further damage, threat to life, restore minimum service, the Manager shall,
on the approval of the appropriate department head obtain such goods and services at the
lowest obtainable prices given the emergent nature of the situation. In the event that the
purchase amount exceeds $5,000, the Treasurer is to be notified at the earliest time. In the
event that the purchase amount exceeds $50,000 a report of the incident shall be
submitted to the appropriate Committee and Council at the earliest time.
5.00 CO-OPERATIVE PURCHASING
5.01 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 this By-law; and the awarding and
_ reporting of such contracts is generally in accordance with the requirements of this By-
law.
6.0 DISPOSAL OF SURPLUS PROPERTY
6.01 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, arranging for
their disposal in a cost effective and efficient manner.
The Manager is authorized to dispose of real property in accordance with the policies
adopted by Council from time to time.
7.00 PROHIBITIONS
7.01 Subject to the Municipal Conflict of Interest Act, no member of City Council, Standing
Committee or Board, or officer of the City is or will become interested directly or
indirectly as a contracting party or otherwise in or in the performance of the contractor or
in the supplies, goods, or business to which it relates or in any portion of the profits
thereof, or in any such supplies to be used therein or in any of the monies to be derived
there from.
7.02 No employee or member of City Council, Standing Committee or Board shall bid on the
_ sale of goods except those disposed of by public auction.
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Pickering draft policies and procedures septemt!;)~'t Fr
7.03 The City shall make no personal purchase for any employee, member of City Council,
Standing Committee or Board, unless specifically authorized by Council.
7.04 No employee, or member of City Council, Standing Committee or Board, shall purchase
or offer to purchase on behalf of the City except as may be provided for in this By-law.
7.05 No requirement for goods or services shall be divided to avoid the requirements of this
By-law and the total project or annual requirement shall be considered.
8.0 CODE OF PURCHASING ETHICS
8.01 The code of purchasing ethics established by the National Institute of Governmental
Purchasing Inc. and the Purchasing Management Association of Canada shall apply to all
staff involved in the procurement process
9.0 EXEMPTIONS
9.01 Items listed in Appendix "A" are excluded from the requirements of this By-law.
Notwithstanding, department heads are expected to provide details to the Treasurer and
the Chief administrative Officer of any contractual arrangements ( under Appendix 'A')
with third parties that exceed $25,000 annually or are for more than one year. These
_ include, but are not limited to arrangements for insurance and brokerage, counselling,
banking, audit, legal, survey and property appraisal.
10.0 ADMINISTRATIVE PROCEDURES
10.01 This By-law shall be read in conjunction with any written administrative policies and
procedures.
The Manager shall prepare and maintain administrative procedures to implement this By-
Law. The Treasurer and Chief Administrative Officer shall approve such procedures.
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Pickering draft policies and procedures September 0>>1
APPENDIX 'A' -EXEMPTIONS '4J:r
The following items are excluded from the requirements of this By-law and expenditures will be in
accordance with established procedures. Notwithstanding, it is expected that the objectives of this by-law
will be promoted in any expenditures for goods and services.
1. Petty Cash expenditures
2. Training and Education
a) Conference, Course, Convention and Seminar
b) Magazines, Books, Periodicals, Subscription
c) Membership
3. Refundable Employee Expenses
a) Advances
b) Meal Allowances
c) Travel
4. Advertising
5.
Special Fees
a) Counselling service
b) Medical service
c) Banking, brokerage or underwriting service
d) Insurance and related costs (Liability, Property etc., Premiums, Payments and Adjusting
Fees)
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6. Professional Fees
a) Consultant fee related to litigation
b) External auditor
c) Legal services fees
d) Ontario Land Surveyor
e) Property Appraisal
7. Utility Services
a) Gas and heating oil
b) Sewer and water
c) Postage and related costs
d) Hydro
e) Telephone
8.
Tenders or quotations for goods or services to be provided by Utilities, Provincial or
Federal Agencies, Crown Corporations, Municipalities, public agencies, when similar
goods or services are not available from other sources.
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Pickering draft policies and procedures September 19,2001
REQUEST FOR PROPOSALS ATTACHMENT # L TO REPORT # C~ 3!lR4.Fr
11.1 Overview
11.0
The Request for Proposals (RFP) method of purchase is a competItIve method of
purchase that mayor may not include Vendor pre-qualification. The process generally
follows the activities included in a typical procurement cycle (see 1.0 General).
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 mayor 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.
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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 ofterms 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.
11.2 Prohibitions, Restrictions and Compliance
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 and is in compliance with the
Purchasing By-law and purchasing procedures. Goods or services that are obtained
without following the Purchasing By-law and purchasing procedures will not be accepted
and any invoices received will not be processed for payment.
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.
11.3 Procedures
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Client responsibilities:
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1.
Pickering draft policies and procedures September 19,2001
Complete Online Purchasing Requisition. DRAFT
Submit any attachments by email or internal mail quoting the requisition number.
2.
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 (in point form) and submit a
Scope of Work/Service and a requisition ifnot already submitted.
3. Assign 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 methodology,
timelines, evaluation process and criteria.
6.
In conjunction with the Client, complete criteria and establish a weight for each
criteria.
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7. Establish an evaluation committee with a mImmum composItion of two
representatives from the Client department and one from Supply & Services.
8. Advertise 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).
9. Circulate bid documents to prospective bidders.
10. Respond to enquiries during bidding period.
11. Receive proposals. Note: Not a public opening.
12. Meet with Client to review proposals received. Each member of the evaluation
committee is given a copy of the proposal response and an evaluation criteria.
Members are requested to evaluate each response against the criteria and upon
completion forward to Supply & Services representative.
13.
Receive the completed evaluation from each committee member and transfers all
figures to a summary to show the complete evaluation from all members for each
bid response. Total all committee member responses for each vendor and
establish an average score.
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Pickering draft policies and procedures septemben>>OI
Review the results with the evaluation committee. The committee has the OPti~J:.,.
of the following:
A) Select proponent who has the highest average score. Supply &
Services then sets up a meeting with the selected proponent and the
committee members. This meeting is called to confirm
understanding of the Scope of Wode/Services as set out in the
proposal and to finalize timelines.
OR
B) If scoring is close, the committee could decide to interview all or
the three proponents with the highest scores. Supply & Services
sets up an interview session with each proponent. The committee
prepares interview questions. Proponents mayor 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.
15.
Award proposal call as follows:
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. For proposals over $50,000 selection committee to prepare report
with recommendation to Council
. For proposals between $25,000 and $50,000 Manager/Department
Head submit (joint report) with recommendation to Chief
Administrative Officer
. For proposals under $25,000 submit recommendations to the
Manager
16. Receive approvals, notify successful Vendor, issue Purchase Order and/or contract
agreement.
17. Send a letter of regret to unsuccessful proponents (optional).
18. Resolve any contract administration or pricing issues with Accounting, Client, and
Vendor.
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