Body: Council Type: By-law Meeting: Regular Date: 2011 Collection: By-laws Municipality: South Frontenac
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TOWNSHIP OF SOUTH FRONTENAC BY-LAW 2011-76
A BY-LAW TO REPLACE SCHEDULE “D” of BY-LAW 2004-111 AND ESTABLISH A NEW PROCUREMENT POLICY FOR THE TOWNSHIP.
WHEREAS Section 270 of the Municipal Act requires municipalities to adopt certain policies for the administration of various operations within the municipality; and, WHEREAS the Council of the Township of South Frontenac deems it expedient to update the Procurement Policy; NOW THEREFORE THE CORPORATION OF THE TOWNSHIP OF SOUTH
FRONTENAC, BY ITS COUNCIL, HEREBY ENACTS AS FOLLOWS: THAT:
Schedule “D”- Procurement Policy, shall be adopted, as described and attached to this By-law, and appended to By Law 2004-111
All previous versions of Schedule “D” passed by the Township of South Frontenac, are hereby repealed.
This by-law shall come into force and take effect on the day of its passing. Dated at the Township of South Frontenac this 15th day of November 2011. Read a first and second time this 15th day of November 2011.
Read a third time and finally passed this 15th day of November 2011. THE CORPORATION OF THE TOWNSHIP OF SOUTH FRONTENAC
V
Way
‘£. G
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Davison, Mayor
-Administrator
SCHEDULE “D” TO BY-LAW 2004.111
CORPORATION OF THE TOWNSHIP OF SOUTH FRONTENAC PROCUREMENT POLICY
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Township of South Frontenac Procurement Policy Procurement Policy Goals
1’ T?^-n^r? ^l:)el?ness’ ^irness’. accountability and transparency while
protecting the financial best interests of the Township of South’ Frontenac.
2- I°.lel^t -g.u^.^"-e-s-f?r.the.,municipali,ty .to e.nsure that a" P"rchases-of
materials, supplies and services provide the lowest costs consistent with the
required quality, service, product delivery, efficiency and effectiveness.
- To promote and maintainjhe integrity of-the purchasing process and protect Council, vendors and staff involved in the process by providing dear d.ect.n and accountabilities and by reviewing the policy every three years or earlier to evaluate its effectiveness. General Provisions
No Contract for Goods, Services or Construction may be divided into two or more parts to avoid the application of the provisions oftheBy-Law Purchases shall be deemed eligible for special treatment on a case-by-case basis by the CAO and/or Township Mayor.
No employee shall Purchase, on behalf of the Township of South Frontenac, any Goods, Services or Construction, except in accordance with the By-Law
Goods and services purchased outside of the provisions of this policy will not be accepted and any invoices received will not be processed for payment
Any lease financing must be undertaken in accordance with the Lease Financing Bylaw.
Where an employee involved in the Award of any Contract, either on his or her
own behalf, or while acting for, by, with or through another person, has any pecuniary interest, direct or indirect, in the Contract, the employee, shall
Immediately disclose the interest to the Department Head involved in the
Award of the Contract and shall describe the general nature thereof; .
Shall not take part in the Award of the Contract; and Shall not attempt in any way to influence the Award of the Contract
An employee_has an indirect pecuniary interest in any Contract in which the Township of South Frontenac is concerned if,
a) the employee or his or her spouse or same-sex partner
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.
^T ^a_rT.holder ir?:ora dlrectoror senior’officer of> a corporation that does not offer its securities to the public that has a pecuniary interest in^he
Contract, .
I88. T^).r^?-llin9_int?res? in.or is ?.director or senior officer of’a corporation
that offers its securities to the public that has a pecuniary inte,Bstin-the Contract, or
.
^.n?^Tb^ofa? lncorPorated association or partnership, that has a
pecuniary interest in the matter; or
y t_he-employee olr his or her SPOUSe or same-sex partner is in the employment
of a person, unincorporated association or partnership that has a pecuniarv interest in the Contract.
^115^u/1_c!l,Temb?r-s shj!?!t20n^?t themselves i" accordance with the Municipal Conflict of Interest Act, RSO 1990, c M50 as amended.
Operational Purchases
Prior to the approval of the budget, operational purchases up to 50% of the value
of ^preceding years budget may be made without Councii approval. Approval shall be obtained beyond the 50% limit. Total Acquisition Cost
Where dollar limits are prescribed, the contract amount shall be the estimated
Total Acquisition Cost before taxes, less any rebates. Prescribed Council Approval
The following Contracts require advance approval by Council: a) Any contract where the Total Acquisition cost is greater than the Council Approved Budget;
b) Any Contract greater than $25,000, where an irregularity precludes the Award of a Contract to the supplier submitting the lowest bid;
c) Any Contract where a Good, Service or Construction is available from only one source of supply and the total Acquisition Cost of such Good, Service or Construction exceeds $25,000; or where a Bid Solicitation has been restricted to a single source of supply because standardization or compatibility is the overriding consideration;
d) Any Contract where the Request for Proposal method of purchase of
Goods, Services or Construction is being used and the estimated value of
the Good, Service or Construction exceeds $50,000.
e) When any Contract is required in accordance with the Township of South Frontenac’s Financing Lease Policy.
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All other contracts may be awarded by staff in accordance with this policy Responsibilities and Authorities
?^al?^-nLHe-T^sha11 be responsible for and shall have authority for initiating procurement activity.
Notification of Procurement Opportunities Notification of procurement opportunities for Goods, Services or Construction
exceeding a Total Acquisition Cost of $5 000 shall be posted to the Township
websiteand may be supplemented by other means of notification as appropriate (newspaper, trade website etc.) Procurement Procedures
Where circumstances give rise to an issue of adherence or non-adherence to the requirements of the By-law which cannot be resolved to the satisfaction of the Department Head, the Department Head shall advise the CAO and Treasurer who shall have the authority to determine the appropriate action. All else being equal, local suppliers will be given preference in the vendor selection process.
Purchasing Methods: Purchases Less Than $5,000
Purchases under $150 are exempt from this policy
Purchases less than $5000 may be purchased from a Vendor of Record (VOR) When a VOR is not able to supply the required item, three quotes shall be obtained and the lowest supplier shall be selected.
Purchases Between $5,000 and $25,000 inclusive
When a vendor is not chosen from a VOR listing; a Request for Quotation shall be issued for purchases between $5,000 and $25,000 inclusive.
In appropriate circumstances, a Request for Proposal or a Request for Tender
may be utilized for the purchase of Goods, Services or Construction in this range.
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Purchases Exceeding $25,000: Request for Tender
^ec!uest f?r Tender sha11 be used for purchases exceeding $25,000 where the following criteria apply
?’ ^o-r_m.ore_so^rces.are considered capable of supplying the requirement; b. the requirement is adequately defined to permit the evaluation of tenders against clearly stated criteria; and
c. it is intended that the Lowest Compliant Bid will be accepted.
If the contract doesn’t meet the criteria for prescribed Council approval, the department head shall forward the contract for approval by the CAO Request for Proposal
A Request for Proposal shall be used where either of the following applies: a- owin9 to the nature of the requirement, suppliers are invited to propose a
solution to a problem, requirement or objective and the selection of the supplier is based on the effectiveness of the proposed solution rather than on price alone; or
b. It is expected that negotiations with one or more bidders may be required with respect to any aspect of the requirement.
The Department Head shall be a member of the committee formed to evaluate the response to the Request for Proposal
The applicable Department shall establish evaluation criteria, which may include, but are not limited to, factors such as approach, equipment and facilities,
experience and qualifications, methodology, past performance and scheduling, price and strategy.
The CAO may award contracts resulting from a Request for Proposal provided that
a. The estimated Total Acquisition Cost of the Goods, Services or Construction does not exceed $50,000;
b. The Award is made to_the supplier meeting all mandatory requirements
and determined, by reference to an evaluation criteria, as providing best value;
c. Sufficient funds are available and identified in appropriate accounts within Council Approved Budgets; and
d. The provisions of the Procurement Policy and By-law are complied with
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Vendors of Record
A VOR listing shall be compiled by staff and recommended to Council for approval on a bi-annual basis. The VOR listing shall consist of vendors who have
es^shedan_acce business relationship ^ the Townsh^Theintentof a VOR listing is to avoid the Township absorbing the administrative’ costs of
seeking multiple and repetitive quotes. For contracted vendors: their VOR’status
shall be determined as contracts become due for renewal. Any VOR vendoTcan be removed from the list at any time for reasons that must be clearly
documented. In general, the selection of a vendor as a VOR must be well documented with the rationale for the selection.
^T?=thterea^e, multiple VOR for a particular contract, the Department Head
shaNgive consideration to the expertise, experience and availabilrtyofth^vendor Meeting the most appropriate vendor. If all else is equal the Department Head will assign such work in such a way as to achieve equitable distribution of
work between vendors. In House Bids
Work may be assigned fn House for the procurement of Goods, Services or construction in circumstances where the CAO considers it appropriate to do so. Guarantee of Contract Execution and Performance
The need for and the amount and method of payment for a Bid Bond or Performance Bond is to be determined by the Department Head in consultation
with the CAO.
Unless circumstances warrant, the standard refundable deposit to guarantee entry into a Contract, for Requests for Tenders and Requests for Proposals shall be as follows:
Estimated total Acquisition cost $25,000 or less Greater than $25,000
Minimum Deposit required 5%
10%
If a bid bond is required, prior to the commencement of the work, the successful
bidder may be required to provide the following security in addition to the security referred to above
a. A performance bond to guarantee the performance of a Contract, and b. A payment bond to guarantee the payment for labour and materials to be supplied in connection with a Contract.
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The Department Head shall select the appropriate means to guarantee execution and performance of the Contract. Means may include one ormoreof"but"ar’enot
1mted,to^ed?hec^bankdraft. irrev-“e letterofcred^ney order ^rwspna^ aydt)ond.issued b^an app-d guarantee company properly licensed injhe province of0ntario;on bond formsacceptabletothe
Township of South Frontenac.
tMt^ret^[ea^^^tel1^^nl^fh^o^’t^’^"^c?Li^li^ll^^li^e^T^factory Department Head must be obtained, ensuring indemnificationofthe
Township of South Frontenac from any and all claims, demands, losses, costs or damages resulting from the performance of a Bidder’s obligations unde-rthe Contract and from a^y other risk determined by the Department Head as requiring coverage. The Township of South Frontenac shall be added to the contractor’s insurance policy as an “Additional Named Insured”
Prior to commencement of work, a Certificate of Clearance from the Workplace
Safety and Insurance Board shall be obtained ensuring all premiums or levies have been paid to the Workplace Safety and Insurance Board to the date of payment.
Bids in Excess of Project Estimates
Where Bids are received in response to a Bid Solicitation, but exceed project
estimates, the Department Head, Treasurer and CAO, jointly may enter
“eQOtiations with the Lowest Compliant Bidder to achieve an acceptable Bid
within the project estimate
Emergency Purchases
Where an Emergency exists requiring the immediate procurement of Goods, Services or Construction, the CAO may authorize purchase of the required
Goods, Services or Construction by the most expedient and economical means.
As soon as practicable thereafter, the CAO will present a report to Council. Cooperative Purchasing
The Township of South Frontenac may participate with other government agencies or public authorities in cooperative purchasing where it is in the best interest of the Township of South Frontenac to do so.
T!l?J^oli^ies^.ttle ?°.ye.rnme.nt a?encies or public authorities calling the
cooperative Bid Solicitation shall be the accepted policy for that particular purchase.
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Identical Tenders
If the Lowest Compliant Bids from two or more bidders are identical in Total
Acquisition cost_or_unit price, the Department Head, in conjunction with the
Treasurer and CAO is authorized to enter into negotiations’with the bidders who
hay^submitted the identical price in an attempt to obtain a lesser price and shall maintain a record in respect of such negotiations.
Ih?..D.epartm.en,t Head’CA0’ or Treasurer shall not reveal information pertaining
to such negotiations or the manner in which the final price was determined to any
of the bidders concerned. The Department Head shail include as part of the record, a report concerning the results of such negotiations.
When negotiations are not successful in breaking the identical tenders, then the successful bidder shall be determined by coin toss. The coin toss shall be performed in the presence of the CAO, Treasurer, and Department Head in charge of that service.
Submission Irregularities The process for administering irregularities shall be as set out in Schedule “B” Contractual Agreement
Formal agreements shall be entered into when the resulting Contract is complex
and will contain terms and conditions other than standard contractual terms and conditions.
It shall be the responsibility of the Department Head, in consultation with the
Treasurer to determine if it is in the best interest of the Township of South Frontenac to establish a formal agreement with the supplier. Where it is deemed that a formal agreement is required, the formal agreement shall be reviewed by the Department Head, CAO, Treasurer and Legal Counsel as required.
Where a formal agreement is required the CAO shall execute the agreement in the name of the Township of South Frontenac Specialized Services
Banking, Audit, Legal, Engineering and Planning Consulting.
These services are recognized to require a combination of expertise, experience and knowledge of the Township’s operations, policies and practices. Tendering
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for these services will be considered on a five-year cycle. Council may renew an arrangement for the provision of these services by resolution. Insurance
Insurance services are normally provided on an annual basis. Council may approve an annual renewal by resolution for up to five years after which insurance services shall be tendered.
Engineering Consulting
The requirements for engineering consulting services span a wide range of circumstances. Generally, for unique, high cost projects the Municipality will request written proposals for services. The criteria for selection should be identified in the request for proposals.
For long term projects, such as landfill management, where the background
in_fo=rm?tl?n ?<nd accumulated reporting is important to the understanding of the project, the Municipality may retain a consultant for the life of the project.
For small, short-term or one time constrained projects, the CAO may select a
consultant and report to Council on the selection process. For Small Assignments up to $10,000:
The Public Works Manager (PWM) selects a consultant on a rotational basis.
Together the assignment requirements and fees are developed, they are confirmed in writing, and the PWM retains the consultant. For Mid Size Projects from $10,000 to $50,000
The PWM selects a consultant on a rotational basis. Together the assignment
requirements and fees are developed, they are confirmed in writing, and the PWM provides a report to the CAO for Council approval to retain the consultant. For Large Projects greater than $50,000 or Unique Projects The PWM invites or advertises (if very large or unique) Proposals from at least
three consultants. The Proposals are evaluated and PWM provides a report to
the CAO for Council approval to retain the consultant. Employee Benefits
Quotations for the supply of employed benefits may be obtained upon the
completion of negotiations of the terms of the benefit package. Council may extend by resolution the term of the benefit provider.
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Sole Source Suppliers
In Municipal operations from time to time circumstances will create a sole source
supplier for goods or services. Where this situation arises, the purchase of’a
supplier service must be provided for in the budget or approved by Council prior to budget approval.
Access to Information
The disclosure of information received relevant to the issue of Bid Solicitations or the Award of Contracts emanating from Bid Solicitations shall be in accordance with the provisions of the Municipal Freedom of Information and Protection of Privacy Act, R.S.0.1990, C.M56, as amended.
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Schedule A
Goods and Services “Exempt” from Provisions of the Procurement Policies Items under $150
Conferences, Courses, Seminars and Conventions Memberships
Periodicals, Magazines and Subscriptions Employee / Councillor Expenses Professional Services Utilities
Advertising services
s
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Schedule B Administering Irregularities Irregularity
Response
Late Bids
Automatic rejection and not opened or
2
Bid requirements not completely met
3
Restricted or qualified bids
4
Bids received on documents
other than those provided by the Township
read publicly
Rejection depends on significance of bid requirements oversight Rejection depends on significance of bid restriction or qualification Automatic rejection
5
Corporate Seal or Authorized
48 hours to correct
6
Signatory signature missing Failure to provide security bond
Automatic rejection
Overwrites, strikethroughs, or
48 hours to initial
erasures are not initialed 8
Documents in which addenda
9
with financial implications have not been acknowledged All other irregularities
Automatic rejection
Depending on the significance of the irregularity, the bid envelope will either be automatically rejected, 48 hours will be given to correct and initial, or the bid may be accepted with the [rregularities
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