Procurement Policy
PURCHASING AND PROCUREMENT POLICY
1. Purpose:
The purpose, goals and objectives of this policy and of each of the methods of procurement authorized herein are:
1.1 to obtain best overall value for the Township based on the best combination of:
price, taking into consideration both price per unit and end costs including, but not limited to: freight, delivery, impact on future operating costs and life-cycle costing; andrequired quality of product or level of service; and
with regard to services, demonstrated ability to perform or deliver the service; and
best financial advantage and overall value to the Township.
1.2 to encourage competition among suppliers;
1.3 to maximize savings for taxpayers;
1.4 to ensure service and product delivery, quality, efficiency and effectiveness;
1.5 to ensure fairness among bidders;
1.6 to ensure openness, accountability and transparency while protecting the financial best interests of the Township and achieving best overall value for it;
1.7 to have regard to accessibility for persons with disabilities when procuring goods, services or works;
1.8 to promote and maintain the integrity of the procurement process;
1.9 to protect staff, Council and vendors involved in the procurement process by providing clear direction, authorities and accountabilities;
1.10 to operate a centralized purchasing function through the Clerk-Treasurer.
2. Procurement Methods:
2.1 Small Order Purchases:
2.1.1 The Clerk-Treasurer or Department Head is authorized to make or approve small order purchases of goods and/or services up to the amount of $500.00, exclusive of applicable taxes, from such vendor and upon such terms and conditions that, in his or her judgment, are beneficial for the Township.
2.2 Informal Quotation Purchases:
2.2.1 The Clerk-Treasurer or Department Head is authorized to make or approve purchases of goods and services where the estimated expenditures exceed $500.00 but are less than $5,000.00, exclusive of applicable taxes, from such vendor and upon such terms and conditions as he or she deems appropriate after inviting at least three (3) written quotations from at least three suppliers.
2.2.2 In the event that three written informal quotations cannot be obtained and the need for the item is not imminent, the Clerk-Treasurer or Department Head shall submit a report regarding same to Council for direction.
2.2.3 In the event that three written informal quotations cannot be obtained and the need for the item is imminent, the Clerk-Treasurer or Department Head may proceed with the procurement and shall submit a written report regarding same to Council.
2.3 Formal Quotation Purchases - Tenders:
2.3.1 Unless otherwise specifically authorized by resolution of Council, the Clerk-Treasurer or Department Head shall procure all goods or services having an estimated value of $5,000.00 or more through a competitive tender process.
2.3.2 Annex "A" attached hereto describes tendering procedures.
2.3.3 Council may, by resolution, authorize a tender procurement to be completed by way of either public or invitational tenders.
2.3.4 Notwithstanding the above, adherence to the tendering requirement is not required with respect to the items listed below, or to a transaction specifically authorized by resolution of Council to be exempt from the tendering policy:
2.3.4.1 Single source supply;
2.3.4.2 Purchase by negotiation;
2.3.4.3 Request for Proposal;
2.3.4.4 Excluded procurements as set out in Section 12 hereof.
2.3.5 The tender process may be preceded by a Request for Expression of Interest and/or Request for Pre-Qualification as described in Section 2.5 hereof.
2.4 Formal Quotation Purchases - Request for Proposal:
2.4.1 The Clerk-Treasurer may issue a Request for Proposal when the goods or services required, or a portion thereof, cannot be specifically stipulated, when the requirements of the Township are best described in a general performance specification and/or when alternative or innovative solutions or methods are being sought for supply of goods or for performance of certain functions or services.
2.4.2 Annex "B" attached hereto describes the Request for Proposal procedure.
2.4.3 The Request for Proposal process may involve negotiations following the opening of proposals on any or all of the specifications, contract terms, prices or any other matter relating to the proposal.
2.4.4 The evaluation criteria and process for each Request for Proposal shall be developed by the Clerk-Treasurer, together with the Department Head if applicable, and shall be approved by Council prior to the proposal submission closing date.
2.4.5 The Request for Proposal process may be preceded by a Request for Expression of Interest and/or Request for Pre-Qualification as described in Section 2.5 hereof.
2.5 Request for Expression of Interest:
2.5.1 At the Township's option, any tender process or Request for Proposal process may be preceded by a Request for Expression of Interest and/or Request for Pre-Qualification, which may be used to assess bidder interest in submitting a bid to provide goods or services, to determine bidder ability to provide the desired goods or services, and to create a short-list of qualified bidders.
2.5.2 Where a Request is issued, a response shall be required from bidders by a designated date and time, and each such response must be signed by the bidder's authorized signing authority.
2.5.3 Expressions of Interest will be reviewed giving consideration to:
2.5.3.1 the bidder's ability (financial and otherwise) to provide the goods or services;
2.5.3.2 the bidder's level of experience in providing such goods or services;
2.5.3.3 the bidder's reputation as evidenced by references provided and any performance evaluations which may have been previously completed by the Township;
2.5.3.4 the bidder's ability to provide qualified and experienced staff, or suitable equipment, or both, to provide the desired goods or services;
2.5.3.5 the bidder's equipment and personnel management, if applicable; and
2.5.3.6 the quality of the product or service which the bidder is able to provide.
A short-list of pre-qualified bidders may be developed from the submission review process and a Request for Quotation or invitational tender may be prepared and issued to pre-qualified bidders.
2.6 Blanket Orders:
2.6.1 The Clerk-Treasurer may establish Blanket Orders using the applicable bid mechanism based upon the estimated annual expenditure.
2.6.2 In the case of equipment repairs and/or equipment rentals for amounts not exceeding budgeted amounts, Department Heads shall be authorized to select vendors not solely on the basis of cost, but also on ability, quality or workmanship, availability, overall performance and experience without first obtaining quotations.
2.6.3 Blanket Orders shall be issued for a specific time period with all ordering departments responsible for maintaining purchases within budget allocations.
2.7 Sole Source Procurement:
2.7.1 Purchase by sole source procurement, which may include purchase by negotiation, may be adopted if, in the judgment of the Clerk-Treasurer or Department Head in conjunction with Council, any of the following conditions apply:
2.7.1.1. Goods and/or services are in short supply due to market conditions;
2.7.1.2 The sources of supply are restricted to the extent that there is not effective price competition, or consideration of substitutes is precluded due to any of the following:
2.7.1.2.1 Components or replacement parts for which there is no substitute;
2.7.1.2.2 Compatibility with an existing product, facility or service is required;
2.7.1.2.3 Specific standards are adopted by Council;
2.7.1.3 Documented evidence is provided which confirms that the extension or reinstatement of an existing contract would prove most cost-effective or beneficial (applicable only where contracts have not yet expired);
2.7.1.4 Where the value of work is more than $500.00 but less than $5,000.00 and such work is required at a location where a contractor has already been secured through a tender or quote process by another party, with established unit prices, and it is deemed to be beneficial and cost-effective to extend the unit prices for the work to be completed for the Township;
2.7.1.5 Where the value of work is less than $500.00, and where a contractor able to do the work is already in the vicinity and it is deemed to be beneficial and cost-effective to engage that contractor's services to complete the work for the Township;
2.7.1.6 When only one bid or proposal is received through the procurement process and it is impractical to recall the requirements of the call for tenders, quotations or proposals.
2.8 Purchase by Negotiation:
2.8.1 The Clerk-Treasurer or a Department Head may purchase by negotiation with one or more vendors and the formal bid process may be waived under one or more of the following conditions:
2.8.1.1 When market conditions and the goods are in short supply; or
2.8.1.2 When there is only one source of supply; or
2.8.1.3 Where there may be more than one source of supply in the open market but only one source is recommended by the Clerk-Treasurer and/or Department Head for consideration on the grounds that it is more cost-effective or beneficial to the Township; or
2.8.1.4 When only one bid is received in response to a tender call or where only one bid is received which satisfies the requirements of the tender call; or
2.8.1.5 Where two or more identical bids are received in response to a tender call, the Clerk-Treasurer or Department Head may negotiate with all bidders who submitted identical bids, keeping all negotiations fair and ethical; or
2.8.1.6 When all bids which meet the desired specifications exceed the amount budgeted and it is not viable or in the best interests of the Township to accept the lowest bid, the Clerk-Treasurer or Department Head may negotiate with the two lowest bidders submitting a bid; or
2.8.1.7 Council authorizes purchase by negotiation by way of resolution.
2.8.2 The use of purchase by negotiation by the Township shall in no way obligate the Township to procure goods or services from any bidder or vendor with whom the Township undertakes negotiations.
3. Unsolicited Proposals:
3.1 Unsolicited proposals received by the Township shall be reviewed by the Clerk-Treasurer or relevant Department Head. Any procurement activity or contract resulting from an unsolicited proposal shall be awarded only on a non-competitive basis, and only when the requirements of the non-competitive procurement policies and procedures set out herein have been satisfied.
3.2 Submitters of unsolicited proposals shall be made aware that the content of their proposal, or a portion thereof, may be used to create a public or invitational tender or request for quotation and there shall be no obligation upon the Township to engage the submitter to provide the said goods or services. Submission of an unsolicited proposal shall in no way require the Township to procure the goods or services from the submitter.
4. Purchase of Used Equipment:
4.1 Department Heads are authorized to purchase used equipment that is sold by other municipalities by private sale or public auction, sold through a vendor licensed to sell used equipment, by sealed bid or by negotiation provided that:
4.1.1 The equipment meets or exceeds the departmental equipment requirements; and
4.1.2 It is documented that it is fiscally responsible to purchase a used piece of equipment rather than purchase new; and
4.1.3 If the total expenditure per piece of equipment exceeds $500.00, a report is provided to Council prior to acquisition detailing purchase information and expenses, and Council approval of the purchase of used equipment is obtained.
5. Emergency Purchases:
5.1 Notwithstanding the provisions of this policy, in case of an emergency, whether or not officially declared, when an event occurs that is determined by the Clerk-Treasurer or a Department Head to be a threat to:
5.1.1 public health
5.1.2 maintenance of essential Township services
5.1.3 welfare of persons or of public property, or
5.1.4 security of the Township or its interests
and response to the threat requires the immediate procurement of goods or services, and the imminent need does not permit time for a competitive bid process to take place, the Clerk-Treasurer may authorize the procurement of such goods, services and/or construction as is deemed necessary to remedy the situation.
5.2 The relevant details surrounding the emergency event shall be included in a report and submitted to Council as soon after the event as is reasonably practicable.
6. Exemptions:
6.1 The Clerk-Treasurer or a Department Head may request exemption from any or all of the purchasing methods outlined in this policy by submission of a report to Council requesting same. Any such exemption must be granted by resolution of Council.
7. Purchasing Authorizations and Responsibilities:
7.1 Expenditure Authorization:
7.1.1 Council has ultimate authority for all expenditures. Council delegates this authority by the adoption of budgets or by specific resolution. The Clerk-Treasurer shall not pay for any item that has not been authorized by Council through budget appropriation or by specific resolution. This purchasing policy provides guidelines outlining how spending authority is to be exercised.
7.2 Expenditure Approval and Responsibilities:
7.2.1 The Clerk-Treasurer shall be responsible for approval of accounts within the approved budget or any amendment to same as approved by Council.
7.2.2 Unspecified capital expenditures authorized in the annual estimates, and expenditures which exceed or may exceed approved budgeted amounts, require Council approval by way of resolution prior to procurement.
7.2.3 Resolutions approving budget amendments, capital expenditures or special appropriations shall set out the purpose of the expenditure, cost estimates or expenditure limitations, and the fund in which an appropriation has been provided. All reports recommending such resolutions must contain the Clerk-Treasurer's endorsement.
8. Administration:
8.1 The Clerk-Treasurer shall be responsible for the management, organization and administration of a centralized purchasing function.
8.2 The Clerk-Treasurer shall be responsible for the procurement, storage and distribution of all materials, equipment, supplies and services on behalf of the Township. Where the Clerk-Treasurer deems it expedient, he or she may delegate performance of any of these functions to the appropriate Department Head.
8.3 The Clerk-Treasurer shall be responsible and accountable for the operation of an effective inventory control system with the objective of keeping the inventory at a minimum but at an adequate level to support and supply the various municipal departments.
8.4 The Clerk-Treasurer shall be responsible for all vendor contacts and maintaining good business relations.
8.5 The Clerk-Treasurer shall be responsible for the issuance of all tender calls, Requests for Proposals and Requests for Expression of Interest. Heads of Departments shall supply the Clerk-Treasurer with specifications for procurements which clearly define required quality and/or function and which include such details, information, drawings, maps or other material as may be required to be attached to the tender documents or as may be needed for his or her guidance and information in the preparation and calling of tenders, in the requesting of proposals or in the placing of orders. Specifications are to be generic or "as equivalent". All factors influencing the purchasing decision are to be included in the specifications.
8.6 For the purposes of this policy, any reference herein to "Department Head" shall include the Chair of a committee or local board of the Township.
8.7 Department Heads and committees of the Township shall provide to the Clerk-Treasurer by January 31st in each year the estimates of their requirements for the subject fiscal year for budgetary purposes in order to ensure adequate supplies of goods and services.
8.8 The Clerk-Treasurer shall, with the cooperation of Department Heads, promote and co-ordinate standardization of goods wherever possible, and shall advise on and approve the practicability of specifications to ensure a maximum number of competitive bids and vendor ability to supply.
8.9 No contract or purchase shall be divided to avoid any requirement(s) of this policy.
8.10 In all procurements:
8.10.1 Consideration shall be given to total dollar costs and best value for the Township (which shall be based on the best combination of price, demonstrated ability to perform the work and best financial advantage to the Township, as determined by the Township in its sole and unfettered discretion) rather than only lowest bid price.
8.10.2 Where acceptance of other than the lowest tender or proposal received would result in a more reasonable end cost to and better value for the Township, a report on the proposed purchase and tenders or proposals received shall be submitted to Council for consideration, approval and, if deemed expedient, contract award.
8.10.3 Provided that all specifications and quality or performance requirements are met, total cost shall be the prime criteria used to determine best value for the Township, provided that, where total cost cannot be determined, unit price shall be the prime criteria.
8.11 The Township may participate with other units of government, their agencies, boards or committees, or public authorities in cooperative purchase ventures when the best interests of Alberton Township will be served. Where such participation is at variance with the Township's purchasing policy, Council shall first authorize participation.
8.12 Performance evaluations may be undertaken on suppliers and providers of services, and may be taken into account with regard to future acquisitions or Requests for Expressions of Interest.
8.13 All invoices and accounts from vendors shall be authorized by the Clerk-Treasurer, following approval of same by the applicable Department Head, prior to payment.
8.14 Between the last regular meeting of Council in any year and the adoption of estimates for the next year, the Clerk-Treasurer is authorized to pay all accounts for any ordinary business transactions of the Township which are required to maintain services prior to the adoption of estimates in addition to all accounts for approved expenditures, capital items and projects.
8.15 After the adoption of estimates, the Clerk-Treasurer is authorized to pay accounts in accordance with the estimates upon receipt of evidence of value received and approval of the appropriate Department Head.
8.16 Unless authorized by resolution of Council, or by by-law where the expenditure requires a reallocation of budgeted funds from one department to another, goods or services which have not been provided for in the budget shall not be ordered.
9. Exclusions:
9.1 The procurement methods described in this by-law do not apply to procurement of the following goods and services:
9.1.1 Training and education expenses, including travel expenses (meals, accommodations, transportation costs), conference or convention registration fees, course or seminar or workshop tuition or registration fees, membership fees and subscriptions;
9.1.2 The following general expenses: payroll deductions remittances, grants to agencies, damage claims, petty cash replenishment, tax remittances and insurance premiums, ongoing maintenance for existing computer hardware and software;
9.1.3 Professional and special services (excluding all contracted services except cleaning), including committee fees, legal fees and other professional services related to litigation or legal matters, witness fees, veterinary expenses, audit fees, bailiff fees or collection agency fees, medical examinations;
9.1.4 Utilities, telecommunications, advertising, licenses, certificates;
9.1.5 Goods and services provided by government agencies or Crown corporations, or provided in-house by the Township;
9.1.6 Goods, services and/or equipment deemed by the Clerk-Treasurer to be necessary or advisable to carry out the requirements of the Municipal Elections Act;
9.1.7 Any goods or services identified as excluded elsewhere in this policy or excluded by resolution of Council.
10. Investment Recovery - Disposition of Surplus Goods
10.1 Department Heads shall provide to the Clerk-Treasurer by no later than March 31st of each calendar year a list of items deemed as surplus assets for sale or disposal.
10.2 The Clerk-Treasurer shall circulate a notice containing a list of surplus assets to all departments and, within the time limitation set out in the notice, any department may request any surplus item or items for its use for municipal purposes free of charge.
10.3 Surplus assets not requested by any municipal department by the expiration of the time limit set out in the notice circulated by the Clerk-Treasurer shall be sold or disposed of by the Clerk-Treasurer by one or more of the following methods as the Clerk-Treasurer deems suitable to achieve maximum investment recovery: public advertisement for sale at fair market value, public auction, public tender, quotation or trade-in.
10.4 Any surplus assets remaining after attempted sale or disposition by any of the methods described in Section 15.3 may be donated to a municipal department for future fund-raising activities upon the request of the department, donated to a non-profit entity by way of resolution of Council, or discarded as waste.
10.5 Revenue generated from the sale of each surplus asset shall be credited to the appropriate capital reserve fund for the Department providing the asset, provided that proceeds of the sale of assets not originating from the Roads, Fire or Recreation Departments shall be designated as current year administrative income.
11. Conflict Of Interest
11.1 No procurements shall be made for, on behalf of or for the personal benefit or use of any elected or appointed member of Council, any officer of the Township or any employee of the Township.
11.2 Where an employee who is involved in any procurement process has any pecuniary interest, whether direct or indirect, in the procurement, the employee:
11.2.1 shall immediately disclose the interest and the nature thereof to the Clerk or, where it is the Clerk who has the pecuniary interest, to Council;
11.2.2 shall not take part in the award of the contract;
11.2.3 shall not attempt in any way to influence the award of the contract.
11.3 An employee has an indirect pecuniary interest if the employee or the employee's spouse or equivalent, or a child of the employee:
11.3.1 has a controlling interest in, is a shareholder in, or is a director or senior officer of a corporation which has a pecuniary interest in the procurement;
11.3.2 is a partner in or is the sole proprietor of an unincorporated business entity or enterprise that has a pecuniary interest in the procurement; or
11.3.3 is in the employ of a person, corporation, unincorporated business entity or enterprise that has a pecuniary interest in the procurement.
11.4 All Council members shall conduct themselves in accordance with the Municipal Conflict of Interest Act, R.S.O. 1990, c. M.50, as amended.
11.5 All employees, members of Council and appointed officers are prohibited from accepting, directly or indirectly, from any person, company or corporation to which any purchase order is or may be awarded, any rebate, gift, money or anything whatsoever of value, except where same is provided for the use and benefit of the Township.
12. Policy Review:
12.1 This policy shall be reviewed by Council prior to the end of each Council term to assess the effectiveness of the policy in achieving the objectives set out in Section 1 as well as in complying with the requirements of the Municipal Act, 2001, as may be amended from time to time
12.2 This policy shall be amended only by resolution of Council.
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ANNEX "A"
TENDER PROCEDURE
The following applies to all tenders issued by the Township but does not preclude the addition of further terms or conditions to any particular tender:
PRIOR TO TENDER DUE DATE:
1. Sealed tenders shall be obtained by the Clerk-Treasurer:
1.1 By posting notice of the tender on the Township's website;
1.2 By placing a minimum of two consecutive weekly advertisements in a newspaper having general local circulation, subject to the following:
1.2.1 Such advertisements may be placed in out-of-town newspapers if it is deemed beneficial by the Clerk-Treasurer to do so in order to attract a greater number of bids;
1.2.2 Where time is of the essence, a minimum of one advertisement may be placed in a newspaper having general local circulation. Such advertisement may be supplemented by local radio announcements and/or publication in additional publications as may, in the discretion of the Clerk-Treasurer, be deemed expedient.
1.3 By forwarding an invitation to submit a tender, along with all pertinent tender information, to all known suppliers, vendors of record, pre-qualified vendors, or such suppliers as Council may specify by resolution.
2. Tender documentation shall be prepared by the Clerk-Treasurer, in conjunction with the relevant Department Head where applicable. It is the responsibility of the Department Head to ensure that proper tender documents, plans and specifications are prepared and available to prospective tenders on the day that notice of the tender is first published or on the day that the invitation is issued, as may be the case.
3. Where tender forms are supplied that include a provision for signature by the Township and the tenderer, the form is to provide firstly for the signature of the tenderer, then secondly by the Township.
4. All tenders calls shall be identified by a numbering identifier assigned by the Clerk-Treasurer.
5. Unless otherwise authorized by Council, tenders shall close at 3:00 p.m. on a Wednesday that is not a holiday and shall be publicly opened by the Clerk-Treasurer and:
5.1 the applicable Department Head or designate; or
5.2 one member of Council
in Council Chambers of the Municipal Office forthwith after the specified closing time and date. Tender contents will be made public as a condition of the tendering process.
6. Where two or more identical bids are received which meet specifications, the Clerk-Treasurer may negotiate with the bidders who submitted the identical bids, keeping all negotiations fair and ethical, in order to achieve the Township's purchasing goals. The use of purchase by negotiation in this manner in no way obligates the Township to obtain goods or services from any of the bidders with whom negotiations are undertaken.
7. Where all bids received in response to a tender call that meet specifications exceed the amount budgeted for the procurement, the Clerk-Treasurer is authorized to negotiate with all bidders whose bids exceed the budgeted amount by 10% or less in order to achieve, or attempt to achieve, the Township's purchasing goals. The use of purchase by negotiation in this manner shall in no way obligate the Township to obtain goods or services from any bidder(s) with whom negotiations are undertaken, and Council may instruct that a contract not be awarded for the procurement regardless of the results of such negotiations.
8. If tenders are being sought with regard to capital projects, where:
8.1 the Township has the capability to perform the work itself or through its existing contracts; and
8.2 no acceptable proposals have been received; and
8.3 work schedules and capabilities permit; and
8.4 it is cost-effective to have the work performed internally or through its existing contracts,
Council may direct, by resolution, that a contract not be awarded with regard to the call for tenders and that the project be completed internally or under existing contracts.
9. The following phrases shall be included in all tender documents:
Lowest or any tender not necessarily accepted. The Township reserves the right to reject any or all bids, to waive irregularities and/or informalities therein, and to award the contract in the best interests to the Township based on the best combination of price, demonstrated ability to perform the work and best financial advantage to the Township, as determined by the Township in its sole and unfettered discretion.
Questions regarding this tender must be directed to (specify name, title, phone and fax numbers, and mailing address).
The Township reserves the right to disqualify tenders not submitted in strict accordance with the requirements of the tender documents and its procurement policy.
All pages of the tender document submitted must be numbered.
Bidders shall determine levy and collection of PST and GST on amounts bid and shall show separately the PST amount, GST amount and GST number, or, alternatively, shall cite the basis of exemption in lieu thereof.
The Township is governed by the Municipal Freedom of Information and Protection of Privacy Act and bidders acknowledge and agree that tender contents will be made public as a condition of the tendering process.
To ensure tenderer compliance with the provisions of the Occupational Health and Safety Act, the tender shall provide the Township with such assurance by completion of all information included in the tender package with regard thereto.
Tenders will be opened in the presence of the Clerk-Treasurer or designee, and the subject Department Head or designee, and one member of Council.
Tender openings shall be open to the public.
10. The Township may cancel any tender at any time prior to the opening of tenders.
11. The Township may, at its option, refuse to award a contract after tenders have been opened where all tenders received exceed the amount budgeted for the goods or services for which a tender was sought.
REFUSAL TO ACCEPT TENDERS:
12. The Clerk-Treasurer shall refuse to accept any tender submission that is:
Not sealed; or
Received after the closing deadline; or
Submitted after a tender has been cancelled.
BID IRREGULARITIES:
13. The following irregularities in bids shall result in automatic rejection of the tender:
Corporate seal or equivalent proof of authority to bind corporate bidder is missing
Signature of bidder or corporate authority is missing in any section of the tender document requiring execution
Original signatures not provided
Bid surety not submitted with bid when such surety is required
Bid security by way of certified cheque is not provided where same is required
Required bid security cheque is not certified
Insufficient bid security
Bid completed, or partially completed, in pencil or other erasable or removable medium
"White-Out" or similar product used on bid documents
Bidder does not attend mandatory site meeting when required
Pages missing from tender document
Bid received on documents other than those provided by Township (excluding additional sheets where tender allows for submission of same)
Part bid received where complete bid has been requested
Bid fails to meet specification or quality requirements
Bid documents suggest that the bidder has made a major mistake in calculations or bid, or has grossly misinterpreted the tender
Bid document wording has been altered
Bidder indicates refusal to allow tender contents, or any portion thereof, to be made public
Changes to unit price(s) not initialed
14. The irregularities described below may be waived by the Township at its discretion:
A proper response envelope or label is not used but the tender is sealed and received by the tender closing time specified
Bid contains minor typographical error(s) in wording
Minor changes to wording not initialed
Changes to mathematical extensions of unit prices or tax calculations not initialed
Bid is conditional
Bid is obscure
Bid contains additions not called for, erasures or alterations
15. Unit price(s) provided in a bid will govern, and the Clerk-Treasurer is permitted to correct errors only in mathematical extensions and/or tax calculations in a tender based thereon.
16. The Township reserves the right to accept or reject any or all tender submissions, including the lowest bid, in its absolute discretion. Where all bids have been rejected and/or disqualified, the Township reserves the right to reissue any bid document either in its original format or modified as best suits the requirements of the Township
TENDER PRE-AWARD PROCEDURE:
17. Subsequent to tender opening, a written report and recommendation, signed by the Clerk-Treasurer or applicable Department Head, shall be submitted for Council consideration and shall include the following:
17.1 Names of all bidders and values;
17.2 Comments as to any disqualification or bid irregularities. The absence of any comments by the author of the report shall be deemed by Council as confirmation that the author of the report has found the tender(s) for which no comments are provided to be valid and in order, and the author assumes full responsibility and may be held accountable in this regard.
17.3 A recommendation to award the contract to one bidder whose bid meets the specifications, terms and conditions of the tender, and whose tender offers the lowest ultimate cost to the Township for the goods or services being tendered with due consideration to the goals set out in Section 1 hereof. If the recommendation is to award a contract to other than the lowest tender, the grounds and rationale for the recommendation must be clearly stated.
17.4 Budgeted amount allocated for the procurement.
TENDER APPROVAL PROCEDURE:
18. After opening of bids, consideration by Council of the report described in Section 17 above, and discussion by Council:
18.1 Council shall make a decision whether or not to award a contract and such decision of Council shall be made in the form of a resolution or by-law, as appropriate. Where a contract is to be awarded, the resolution shall include authorization for the execution of any agreements or other necessary documents by the appropriate signing officers of the Township.
18.2 The Clerk-Treasurer shall forward a copy of the decision of Council to the appropriate Department Head and to all bidders.
18.3 The Clerk-Treasurer shall arrange for the completion of the procurement documentation, including the completion and execution by the successful bidder of any contract and receipt of all required bidder documentation, including insurance endorsements, etc. Once all bidder documentation is in order, the completed contract shall be executed on behalf of the Township and one signed copy shall be provided to the successful bidder.
18.4 After all documentation is finalized, the Clerk-Treasurer or Department Head shall proceed to complete the procurement.
TENDER AWARD PROTESTS - DISPUTE RESOLUTION:
19. Protests or disputes raised by any bidder with regard to any tender shall be resolved as follows:
19.1 All disputes shall be resolved between the bidder and authorized municipal staff only. Bidder involvement of members of Council in dispute resolution is prohibited.
19.2 The bidder shall deliver to the Clerk-Treasurer written notice of the dispute or protest, which notice shall list all issues in dispute.
19.3 No new or additional issues may be added to the list of issues by the bidder after the said list is received by the Clerk-Treasurer.
19.4 The Clerk-Treasurer and the applicable Department Head shall review each issue in dispute and shall respond to same in writing. When deemed expedient by the said municipal officers, they may meet with the bidder raising the dispute with a view to resolving same.
19.5 The Clerk-Treasurer shall provide a report to Council regarding every dispute filed which identifies:
19.5.1 the nature of the dispute;
19.5.2 attempts made to resolve the dispute;
19.5.3 how the dispute was resolved;
19.5.4 whether Council approval of the resolution is required.
Where required, Council approval of a proposed resolution of issues, or directions provided by Council with regard to a dispute, shall be provided Council by way of formal resolution.
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ANNEX "B"
REQUEST FOR PROPOSAL PROCEDURE
The following applies to all Requests for Proposal issued by the Township but does not preclude the addition of further terms or conditions to any particular Request for Proposal:
PRIOR TO PROPOSAL DUE DATE:
1. Sealed proposals shall be obtained by the Clerk-Treasurer:
1.1 By placing a minimum of two consecutive weekly advertisements in a newspaper or publication of general local circulation, subject to the following:
1.1.1 The advertisements may be published in out-of-town newspapers if the Clerk-Treasurer deems it beneficial to do so in order to attract a greater number of proposals;
1.1.2 Where time is of the essence, a minimum of one advertisement may be placed in a newspaper having general local circulation and such advertisement may be supplemented by local radio announcements and/or publication in additional publications as may, in the discretion of the Clerk-Treasurer, be considered appropriate;
and by posting notice of the Request for Proposal on the Township's website;
1.2 Where Council authorizes an invitational procurement, by forwarding an invitation to submit a proposal, along with all pertinent information, to all known suppliers, vendors of record, pre-qualified vendors, or such suppliers as Council may specify in the said resolution.
2. Proposal documentation shall be prepared by the Clerk-Treasurer, in conjunction with the requesting Department Head where applicable. It is the responsibility of the Clerk-Treasurer to ensure that proper Request for Proposal documents, are available to prospective submitters on the day that notice of the Request for Proposal is first published or on the day that the invitation is issued, as may be the case.
3. Where Request for Proposal forms are supplied that include a provision for signature by the Township and the submitter, the form is to provide firstly for the signature by the submitter, then secondly for signature by the Township.
4. All Requests for Proposal shall be identified on the proposal by a numbering identifier assigned by the Clerk-Treasurer.
5. Unless otherwise authorized by Council, proposals shall close at 3:00 p.m. on a Wednesday that is not a holiday.
6. Proposals shall be opened as soon as is practicable after the specified closing time and date by the Clerk-Treasurer together with either the applicable Department Head (or his/her designate) or one member of Council. Proposals will not be opened publicly due to the potential for the content of same to be subject to freedom of information and protection of privacy legislation.
7. Reports provided to Council regarding proposal contents shall be, are and shall remain confidential. Reports which are accessible by the public shall not include summaries of proposals or disclose protected information. Any public disclosure of information may be made only in accordance with the provisions of the Municipal Freedom of Information and Protection of Privacy Act.
8. In order to achieve the Township's purchasing goals as set out in Section 1 hereof, the Township may use purchase by negotiation with regard to any or all proposals received. The use of purchase by negotiation in this manner shall in no way obligate the Township to obtain goods or services from any proposal submitter(s) with whom negotiations are undertaken, and Council may instruct that a contract not be awarded for the procurement regardless of the results of such negotiations.
9. If proposals are being sought with regard to capital projects, where:
9.1 the Township has the capability to complete the project itself or through its existing contracts; and
9.2 no acceptable proposals have been received; and
9.3 work schedules and capabilities permit; and
9.4 it is cost-effective to complete the project itself or through its existing contracts,
Council may direct that a contract not be awarded with regard to the Request for Proposals and that the project be completed internally or under existing contracts.
10. The following phrases are to be followed and included in all Requests for Proposal:
The Township reserves the right to reject any or all proposals, and to waive irregularities and informalities therein.
Submission of a proposal in no way obligates the Township to award a contract.
Any contract which may be awarded as a result of a Request for Proposal shall be awarded in the best interests to the Township based on the best combination of price, demonstrated ability to perform the work and best financial advantage to the Township, as determined by the Township in its sole and unfettered discretion
Questions regarding this Request for Proposal must be directed to (name, title, phone number, fax number).
The Township reserves the right to disqualify proposals not submitted in accordance with the requirements of the request for proposal.
All pages of the proposal must be numbered.
Proposal submitters must determine levy and collection of PST and GST on amounts bid and shall show separately the PST amount, GST amount and GST number, or, alternatively, shall cite the basis of exemption in lieu thereof.
The Township is governed by the Municipal Freedom of Information and Protection of Privacy Act and proposal submitters acknowledge and agree that proposal contents will not be made public as a condition of the Request for Proposal process.
To ensure compliance with the Occupational Health and Safety Act, the proposal submitter shall provide the Township with such assurances as are requested in the Request for Proposal documents.
REFUSAL TO ACCEPT PROPOSALS:
11. The Township will refuse to accept any proposal provided in response to a Request for Proposal that is:
Not sealed
Received after the closing deadline
Submitted after a Request for Proposal has been cancelled.
PROPOSAL IRREGULARITIES:
12. The following irregularities in proposals shall result in automatic rejection of proposals submitted in response to a Request for Proposal:
Corporate seal or equivalent proof of authority to bind corporate proposal submitter is missing
Signature of proposal submitter or corporate authority is missing
Original signatures are not provided
Proposal completed, or partially completed, in pencil or erasable or removable medium
"White-Out" or similar product used on proposal documents
PROPOSAL PRE-AWARD PROCEDURE:
13. Subsequent to proposal opening and assessment, a confidential written report signed by the Clerk-Treasurer shall be submitted for Council consideration and shall include the following:
13.1 Budgeted amount for the procurement;
13.2 Names of all proposal submitters, a summary of the proposals received and their costs;
13.3 Comments as to any disqualification or irregularities. The absence of any comments by the author of the report shall be deemed by Council to be confirmation that the author of the report has found the proposals for which no comments are provided to be valid and in order, and the author assumes full responsibility and may be held accountable in this regard.
13.4 A recommendation:
13.4.1 to initiate the purchase by negotiation process;
13.4.2 to award a contract for the proposal which offers the desired goods or services at the lowest ultimate cost to the Township with due consideration to the goals set out in Section 1 hereof. If the recommendation is to award a contract to other than the lowest cost proposal submitted, the grounds and rationale for the recommendation must be clearly stated; or
13.4.3 not to award a contract.
PROPOSAL APPROVAL PROCEDURE:
14. Council shall make a decision whether or not to award a contract. Such decision of Council shall be made in the form of a resolution or by-law, as appropriate. Where the decision is to award a contract, the resolution or by-law shall include authorization for the execution of any agreements or other necessary documents by the appropriate signing officers of the Township.
15. The Clerk-Treasurer shall forward a copy of the decision of Council to the appropriate Department Head and to the successful proposal submitter.
16. The Clerk-Treasurer shall arrange for the completion of the procurement documentation, including the completion and execution by the successful proposal submitter of any contract and receipt of all required documentation from the proposal submitter, including insurance endorsements, confirmation of compliance with Occupational Health and Safety Act, etc. Once all documentation required of or from the proposal submitter is in order, the completed contract is to be executed on behalf of the Township.
17. Once all documentation is finalized, the Clerk-Treasurer or Department Head shall proceed to complete the procurement.
REJECTED PROPOSALS:
18. Unsuccessful proposal submitters may request a debriefing session with the Clerk-Treasurer to review their proposal submission. Discussion relating to any proposal submission other than that of the proposal submitter present shall be and is strictly prohibited.