BYLAW - Procurement By law - 20130528 - 550013THE CORPORATION OF THE TOWN OF AURORA
By-law Number 5500-13
BEING A BY-LAW to
define the procurement
policies and procedures
for The Corporation of
the Town of Aurora.
WHEREAS paragraph 3 of subsection 270(1) of the Municipal Act, 2001, S.O. 2001,
c. 25, as amended provides that a municipality shall adopt and maintain policies with
respect to its procurement of goods and services;
AND WHEREAS on December 14, 2004 The Corporation of the Town of Aurora (the
"Town") passed a by-law regarding its procurement of goods and services, being By-
law Number 4621-04. F;
AND WHEREAS on March 25; 2003 the Town adopted a corporate policy regarding
procurement policies and procedures, being Town Administration Procedure No. 50;
AND WHEREAS it is deemed necessary to adopt a policy by by-law with respect to
the Town's procurement of goods and services to replace By-law Number 4621-041
and Administration Procedure No. 50;
NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE TOWN OF
AURORA HEREBY ENACTS AS FOLLOWS:
TABLE OF CONTENTS
PART 1: PRINCIPLES, DEFINITIONS, APPLICATION, AND AUTHORITY
1. PURPOSES, GOALS, AND OBJECTIVES OF THIS BY-LAW ............................... 3
2. PROCUREMENT PRINCIPLES AND PRACTICES ................................................ 3
3. DEFINITIONS OF THIS BY-LAW............................................................................ 4
4. APPLICATION....................................................................................................... 10
5. RESPONSIBILITIES.............................................................................................. 11
6. AUTHORITY.......................................................................................................... 12
7. RESTRICTIONS AND EXCEPTIONS.................................................................... 12
PART 2: PROCUREMENT APPROVAL AND METHODS
8. PRESCRIBED COUNCIL APPROVAL.................................................................. 13
By-law Number 5500-13 Page 1
9. BID REVIEW COMMITTEE (BRC) AND BID IRREGULARITIES ......................... 14
10. PROCUREMENT PROCESS.................................................................................. 14
11. PRE-QUALIFICATION........................................................................................... 15
12. STANDARD PROCUREMENT METHODS........................................................... 15
13. ALTERNATIVE PROCUREMENT METHODS ...................................................... 18
PART 3: POST -AWARD REQUIREMENTS AND PERFORMANCE
14. CONTRACT EXECUTION..................................................................................... 22
15. CONTRACTOR PERFORMANCE......................................................................... 23
16. CONTRACT TERMINATION................................................................................. 23
PART 4: SPECIFIC BID AND PROCUREMENT ISSUES
17. CONTINGENCIES................................................................................................. 24
18. CANCELLATION OF SOLICITATION................................................................... 24
19. ACCESS TO INFORMATION................................................................................ 24
PART 5: PERSONAL AND REAL PROPERTY
20. DISPOSAL OF PERSONAL PROPERTY.............................................................. 25
21. REAL PROPERTY................................................................................................. 26
PART 6: MISCELLANEOUS CONSIDERATIONS AND GENERAL ITEMS
22.
TIE BIDS RECEIVED.............................................................................................
26
23.
NO LOCAL PREFERENCE...................................................................................
26
24.
ENVIRONMENTAL CONSIDERATIONS...............................................................
26
25.
ACCESSIBILITY CONSIDERATIONS ....... :...........................................................
27
26.
BLACK -OUT PERIOD...........................................................................................
27
27.
LOBBYING............................................................................................................
27
28.
BY-LAW REVIEW..................................................................................................
28
29.
REPEAL, PRECEDENCE, AND TRANSITION.....................................................
28
30.
SHORT TITLE........................................................................................................
28
31.
IN FORCE..............................................................................................................
28
SCHEDULE "A" - EXCEPTIONS............................................:...................................
29
SCHEDULE "B" - BID IRREGULARITIES..................................................................
30
SCHEDULE "C" - PROPOSAL IRREGULARITIES
.................................................... 32
SCHEDULE "D" - BID THRESHOLDS.......................................................................
34
By-law Number 5500-13 Page 2
1. PURPOSES, GOALS, AND OBJECTIVES OF THIS BY-LAW
The purposes, goals, and objectives of this by-law, and of each of the methods
of Procurement authorized herein, are:
(a) to encourage competition among Bidders, Proponents, and
Contractors;
(b) to ensure that Bidders, Proponents, and Contractors are accountable to
the Town and the public;
(c) to provide the highest level of government service at the least possible
cost;
(d) to ensure fairness and objectivity toward and amongst Bidders during
the procurement process;
(a) to ensure openness, accountability and transparency while protecting
the financial best interests of the Town;
(f) to obtain the best value for the Town when procuring Goods, Services,
and Construction;
(g) to avoid conflicts between the interests of the Town and those of the
Town's employees and elected officials;
(h) to ensure compliance with international/interprovincial trade treaties or
agreements, as amended;
(i) to reduce waste, harmful emissions, and substances, and to increase
the development and awareness of environmentally responsible
procurement and/or other best green procurement practices available
when developing the Bid Document for Goods, Services, and
Construction; and
(j) to incorporate, where applicable, the requirements of the Accessibility
for Ontarians with Disabilities Act, 2005, as amended ("AODA") in
Procurement activities of the Town as well as any requirements
contained in other legislation (either provincial or federal) which may
impact the Procurement activities of the Town.
2. PROCUREMENT PRINCIPLES AND PRACTICES
Procurement affects and is affected by the public sector organization as a
whole, and the community it serves, whether at the local, provincial, or
national level. Therefore, the Town has adopted the Public Procurement
Principles and Practices, as follows:
Accountability:
Taking ownership and being responsible to stakeholders for our actions. This
value is essential to preserve the public trust and protect the public interest.
Ethics:
Acting in a manner true to the values listed herein. Acting ethically is essential
to preserve the public's trust.
Impartiality:
Unbiased decision -making and action. This value is essential to ensure
fairness for the public good.
By-law Number 5500-13 Page 3
Professionalism:
Upholding high standards of job performance and ethical behavior. This value
is essential to balance diverse public interests.
Service:
Obligation to assist stakeholders. This value is essential to support the public
good.
Transparency:
Easily accessible and understandable policies and processes. This value is
essential to demonstrate responsible use of public funds.
3. DEFINITIONS OF THIS BY-LAW
3.1 In this by-law, the following words have the following meanings:
(a) "Authority" or "Authorized" means the legal right to conduct the
tasks outlined in this by-law as may be directed by Council and/or
delegated to the CAO or a Department Head pursuant to this by-law or
by resolution of Council. Authorized Purchases are those that have
prior approval of Council either through resolution or through the
Department budget;
(b) "Award", "Awarded", or "Acceptance" means authorization to
proceed with the Purchase for Goods, Services, or Construction from a
selected Bidder;
(c) "Bid" means a Tender, Proposal, or quotation submitted in response to
a Solicitation from the Town;
(d) "Bid Bond" means a monetary or financial Bond by which a third party
(the surety) accepts liability and guarantees that: (i) the Bidder will not
withdraw the Bid, (ii) the Bidder will furnish other Bonds as required,
and (iii) if the contract is awarded to the bonded (insured) Bidder, the
Bidder will accept the Contract as Bid, or else the surety will pay a
specific amount;
(e) "Bid Deposit" means a sum of money, a negotiable instrument, a
cheque, another acceptable cash alternative (such as an irrevocable
Letter of Credit), or a guarantee that the Bidder will enter into a Contract
with the Town if the Bid is accepted. The form and type of Bid Deposit
will be specified in the Bid Document;
(f) "Bid Document" means the Town's Solicitation document which may
be in the form of a Quick Bid Request for Quotation (QB-RFQ), Quick
Bid Request for Proposal (QB-RFP), Request for Quotation (RFQ),
Request for Tender (RFT), Request for Proposal (RFP), Request for
Pre -Qualification (RFPQ), or Sale;
(g) "Bidder" means the individual or legal entity submitting a Bid. For
clarity, in this by-law only, the word "Bidder" shall also include
"Proponent", "Respondent" and "Offeror". The definition shall also
include any principal, director, or officer of that Bidder, bidding directly
for Town Contracts or indirectly through another legal entity;
(h) "Bid Review Committee" or "BRC" means a committee constituted to
review Irregularities and other issues pertaining to Bids as required;
(i) "Bond" means a form of financial protection against damages; a
binding agreement executed by a Contractor/Bidder and a third party
(surety) to guarantee the performance of certain obligations or duties to
the Town;
By-law Number 5500-13 Page 4
(j) "CAO" means the Chief Administrative Officer of the Town, or his/her
designate;
(k) . "Compliant Bidder" means a Bidder whose Bid does not vary from the
specifications and terms set out in the Bid Document.
(1) "Conflict of Interest" means a situation where a personal or business
interest of a Council member, officer, or employee of the Town may be
in conflict with the best interests of the Town, and includes a situation
where:
(i) a Council member, officer, or employee of the Town (or a family
member thereof) may receive a direct or indirect pecuniary
personal gain, benefit, advantage or privilege, from any
individual or business (or any person related to such business)
that wishes to provide or provides Goods, Services, or
Construction to the Town; or
(ii) a Council member, officer, or employee of the Town (or a family
member thereof) that has a direct or indirect pecuniary interest in
any business that wishes to provide or provides Goods, Services
or Construction to the Town,
and such Conflict of Interest shall be declared prior to Bid submission,
to be addressed prior to Award, in accordance with subsection 7.5 of
this by-law;
(m) "Construction" means the process of utilizing labour to build, alter,
repair, improve or demolish any structure, building or public
improvement and includes any associated preparation, investigation,
and supply of materials and equipment, but generally does not apply to
routine maintenance, repair or operations of existing Real Property;
(n) "Contract' means the agreement in writing governing the performance
of the work which has been executed by the Town and the selected
Bidder following Acceptance by the Town of the selected Bidder's Bid.
Generally, the term "Contract" shall also mean an obligation, such as an
accepted offer, between competent parties upon a legal consideration
to do or abstain from doing some act. Generally, the essential
elements of a Contract are: (i) an offer and an acceptance of that offer;
(ii) the capacity of the parties to contract; (iii) consideration to support
the contract; (iv) a mutual identity of consent; (v) legality of purpose;
and (vi) sufficient certainty of terms. A Contract is also an agreement
between parties with binding legal and moral force, usually exchanging
Goods, Services, Sale of Real or Personal Property, or Construction for
money or other consideration;
(o) "Contractor" means the selected Bidder to whom the Contract is
awarded and whom is undertaking the execution of the work under the
terms of the Contract. Also, an individual or business having an
agreement with the Town to furnish Goods, Services, or Construction
for an agreed upon price. For clarity, in this by-law only, "Contractor"
shall also include "Vendor';
(p) "Co-operative Purchasing" means: (i) the action taken when two or
more entities combine their requirements to obtain advantages of
volume purchases including administrative savings and other benefits;
and (ii) a variety of arrangements whereby two or more public
procurement entities purchase from the same Vendors) or
Contractors) using a single Solicitation;
By-law Number 5500-13 Page 5
(q) "Council' means the Council of The Corporation of the Town of
Aurora;
(r) "Department" means a department of the Town;
(s) "Department Head" means a Director, or his/her designate, of the
Town who is responsible for a Department, and shall include the CAO
with respect to his/her direct responsibilities for a Department;
(t) "Election Period" means the period of time in the year of a regular
municipal election starting from nomination day and ending on the day
that is fixed for the beginning of the next term of Council, as such days
may be defined in the Municipal Elections Act, 1996, S.O. 1996, c. 32,
as amended;
(u) "Electronic Bidding" means a method of issuing Solicitations and/or
receiving written Bids where the process of issuing and/or receiving
Bids by facsimile, email, or internet is considered appropriate and valid;
(v) "Emergency Purchase" means an event or circumstance where the
immediate purchase for Goods or Services, or the entering into of a
Construction Contract, is essential or necessary in accordance with
subsection 13.4 of this by-law. An Emergency Purchase shall also
include any other expenditure that is necessary to respond to any
emergency of the Town or as required under the Emergency
Management and Civil Protection Act, R.S.O. 1990, c. E.9, as
amended;
(w) "Evaluation Committee" means a component of the Request. for
Proposal process, whereby a committee is established to conduct
proposal evaluations, interviews, and negotiations during Proposal
evaluation for Goods, Services, or Construction;
(x) "Financing Lease" means a lease which allows for the provision of
Goods, Services, or Construction if the lease may or will require
payment by the Town of financing, interest, bonuses, premiums, or
other charges or costs for the Goods, Services or Construction in
compliance with: (i) O. Reg. 653/05, as amended, made under the
Municipal Act, 2001, S.O.2001, c. 25, as amended, or any successor to
such regulation; and (ii) Town Administration Procedure No. 60, or any
successor thereto;
(y) "Formal' means a form of response to a Solicitation or submission of a
Bid that requires the response or Bid to be submitted inside of a sealed
envelope or package;
(z) "Goods" means moveable property including: (i) the costs of installing,
operating, maintaining, or manufacturing such moveable property; and
(ii) raw materials, products, supplies, equipment, and other physical
objects of every kind and description whether in solid, liquid, gaseous or
electronic form, unless they are procured as part of a Construction
Contract;
(aa) "In -House Bid" means a bid made by a Department, submitted in
response to a Solicitation, where the provision of the Goods, Services
or Construction will be provided entirely by the employees of the Town;
(bb) "Informal' means a form of response to a Solicitation or submission of
a Bid that does not require the response or Bid submission to be
submitted inside of a sealed envelope or package, and may include
Electronic Bidding;
By-law Number 5500-13 Page 6
(cc) "Irregularity" means a defect in a Bid or Proposal, or a deviation
between the requirements of a Solicitation and the information provided
in a Bid or Proposal. Schedule "B" - Bid Irregularities of this by-law
establishes the action that will be taken if a Bid Irregularity exists in
relation to a Bid submitted in response to an Quick Bid Request for
Quotation (QB-RFQ), Request for Quotation (RFQ), Request for Tender
(RFT), Request for Pre -Qualification (RFPQ), or Sale. For the purposes
of this definition, an Irregularity in a Proposal submitted in response to a
Request for Proposal (RFP) or Quick Bid Request for Proposal (QB-
RFP) are specifically addressed separately under Schedule "C"-
Proposal Irregularities of this by-law, which establishes the action that
will be taken if a Proposal Irregularity exists;
(dd) "Letter of Credit" means a document issued by a Canadian Schedule
I or II bank authorizing the bearer to draw a specified amount from that
bank or its agent; a letter or similar statement extending credit up to a
given amount at a Canadian Schedule I or 11 bank for a person who has
paid or guaranteed that amount to the issuing bank;
(ee) "Labour and Material Bond" means a bond that assures payments,
as required to all persons supplying labour or material for the
completion of work under the Contract. The Labour and Material
payment bond in the form of CCDC 222 (as may be amended) or the
most recent applicable Canadian Construction Documents Committee
Form may be acceptable to the Town depending on the requirements of
the Bid Document;
(ff) "Litigation" means any formal dispute between the Town and any
other party, adverse in interest, including third party and cross claims,
where a legal proceeding has been commenced for an injunction, a
mandatory order, a declaration, the recovery of money, or an arbitration
proceeding;
(gg) "Local Board" means a municipal service board, transportation
commission, public library board, board of health, police services board,
planning board, or any other board, commission, committee, body or
local authority established or exercising any power under any statute
.with respect to the affairs or purposes of one or more municipalities,
excluding a school board and a conservation authority;
(hh) "Low Value Purchase" or "LVP" means a purchase of Goods,
Services, or Construction which is not included as part of an existing
Contract and is not available out of the Town's inventory. LVPs shall
not exceed the amount stated in Schedule "D" - Bid Thresholds of this
by-law;
(ii) "Multi -Step Solicitation" means a method of source selection
involving at least two competitive Procurement steps;
Qj) "Offeror" means an individual or legal entity that makes an offer in
response to a sale of Personal Property;
(kk) "Performance Security" means monetary or financial security by
which a third party accepts liability and guarantees that a Bidder
selected for Award of a Contract will complete the work required under
the Contract; this security can take the form of a Bond, certified cheque,
cash, or Letter of Credit as directed by the Bid Document. The
Performance Security protects the Town from loss due to the Bidder's
inability to complete the Contract as agreed by financially securing the
fulfillment of Contract requirements;
By-law Number 5500-13 1Page 7
(II) "Personal Property" means tangible or intangible property, other than
Real Property, and includes moveable property subject to ownership,
with exchange value;
(mm) "Piggyback" means a form of intergovernmental Co-operative
Purchasing in which the Town can extend the pricing and terms of a
Contract established by another governmental entity to enter into a
similar Contract with the provider of the Goods, Service, or
Construction. The Town may participate with other government
agencies or public authorities in co-operative purchasing where it is in
the best interests of the Town to do so;
(nn) "Procurement" means: (i) purchasing, renting, leasing or otherwise
acquiring any Goods, Services, or Construction, and includes all
functions that pertain to such acquisition, including the description of
requirements, preparation, Solicitation, selection, and Award of
Contract and all phases of Contract administration; and (ii) the
combined functions of purchasing, inventory control, traffic and
transportation, receiving, inspection, storekeeping, salvage and
disposal operations with respect to Goods, Services, and Construction;
(oo) "Proponent" means the individual or legal entity who submits a
response to a Request for Proposal (RFP) or Quick Bid Request for
Proposal (QB-RFP);
(pp) "Proposal" means a document submitted by a Proponent in response
to a Request for Proposal (RFP) or Quick Bid Request for Proposal
(QB-RFP) to be used as the basis for negotiation or for entering into a
Contract;
(qq) . "Purchase" means the act and function of responsibility for the
Procurement for Goods, Services, or Construction;
(rr) "Purchase Order" means the Town's written order to a
Contractor/Vendor formally stating all terms and conditions for the
purchase of Goods, Services, or Construction or a written acceptance
of an offer received in accordance with this by-law;
(ss) "Purchasing Card" or "P-Card" means a payment method whereby
employees of the Town are Authorized by the CAO and/or Department
Head to deal directly with Contractors for LVPs or as otherwise
specified by the Purchasing Manager, using a Town credit card issued
by a chartered bank or major credit card provider. The Purchasing
Card is to be used in accordance with the Town's Purchasing Card
Program Policies and Procedures, as amended;
(tt) "Purchasing Division" means the division or section of a Town
Department that is responsible for the Procurement of Goods, Services,
and Construction for the Town;
(uu) "Purchasing Manager" means the Manager of Purchasing for the
Town, or his/her designate;
(vv) "Real Property" means land and its permanently affixed buildings or
structures, and includes any property which is not Personal Property;
(ww) "Request for Expressions of Interest" or "RFEI" means a non-
binding Procurement method whereby the Town makes a request to the
marketplace for the purposes of compiling a list of individuals or legal
entities who may be interested in providing Goods, Services, or
Construction to the Town;
By-law Number 5500-13 Page 8
(xx) "Request for Information" or "RFI" means a non -binding Procurement
method whereby the Town states its need for input from interested
parties for a possible upcoming Solicitation. A Procurement practice
used to obtain comments, feedback or reactions from potential
Contractors prior to the issuing of a Solicitation;
(yy) "Request for Pre -Qualification" or "RFPQ" means a request for the
submission of pre -qualification Bid documents relating to, among other
information that may be requested by the Town, experience, financial
strength, and personnel who may, from time to time, qualify to supply
Goods, Services, or Construction to the Town, but which generally does
not create any contractual obligation between the Respondent
submitting the pre -qualification submission and the Town, but which
may be a pre -condition to further Procurement Contracts with the Town;
(zz) "Request for Proposal" or "RFP" and the associated "Quick Bid
Request for Proposal or "QB-RFP" means the document used to
solicit Proposals from Proponents for Goods, Services, or Construction
or as may be required in accordance with the thresholds stated in
Schedule "D" - Bid Thresholds of this by-law. For further clarification,
price is usually not the primary evaluation factor in these Proposals. An
RFP or QB-RFP may provide for negotiation of all terms, including
price, prior to Contract Award. An RFP or QB-RFP may include the
provision for the negotiation of best and final offers and may be a single
step or multi -step process;
(aaa) "Request for Quotation" or "RFQ" and the associated "Quick Bid
Request for Quotation" or "QB-RFQ" means a request by the Town
for prices for the provisions for Goods, Services, or Construction up to
the threshold amount stated in Schedule "D" - Bid Thresholds of this by-
law;
(bbb) "Request for Tender" or "RFT" means a request for Tenders for the
provision of Goods, Services or Construction to the Town or as may be
required in accordance with the thresholds stated in Schedule "D" - Bid
Thresholds of this by-law;
(ccc) "Respondent" means the individual or legal entity submitting a
response to a Request for Pre -Qualification, Request for Expressions of
Interest, or Request for Information;
(ddd) "Responsible, Bidder" means a Bidder whose reputation, past
performance, and business and financial capabilities are such that the
Bidder would be judged by the Town to be capable of satisfying the
Town's needs for a specific Contract. A Bidder, as the context requires,
that is fully capable to meet all the requirements of the Solicitation or
other process and subsequent Contract. Such Bidder shall possess the
full capability, including financial and technical, satisfactory past
performance, including a satisfactory Town's Contractor performance
evaluation (where applicable) to perform as contractually required and
shall be able to fully document the ability to provide good faith
performance;
(eee) "Sale" means the act of selling Town Personal Property or Real
Property that is no longer needed by the Town and is designated for
disposal;
(fff) "Service" or "Services" means: (i) the furnishing of labour, time or
effort by a Contractor, which may involve the delivery or supply of
products; (ii) a Contract for labour to perform a service to meet a
specific requirement; or (III) any professional or general service work
performed which does not result in the delivery of Goods or materials;
By-law Number 5500-13 Page 9
(ggg) "Single Source" means a method of Procurement used after soliciting
and negotiating with only one Contractor where there is more than one
potential source available for the Procurement of the Goods, Services,
or Construction;
(hhh) "Sole Source" means a method of Procurement used where there is
only one source or Contractor able to meet the requirements of the
Procurement;
(iii) "Solicitation" means an invitation for Bids or Proposals;
GA) "Tender" means a document submitted by a Bidder in response to a
Request for Tender (RFT), to be used as the basis for entering into a
Contract;
(kkk) "Treasurer" means the Director of Corporate & Financial Services for
the Town, or his/her designate;
(III) "Town" means The Corporation of the Town of Aurora;
(mmm) "Town Solicitor" means the Director of Legal Services of the Town or
his/her designate;
(nnn) "Undertaking to Provide a Bond or Letter of Credit" means a pledge
or guarantee by an insurance company, bank, corporation, entity, or
individual on behalf of the Bidder through which the surety protects
against default or failure of the principal to satisfy the obligations of a
Contract;
(000) "Unsolicited Bid/Proposal" means a Bid or Proposal submitted by a
Bidder in the absence of a Solicitation from the Town, which may be
submitted in response to a perceived need but not in response to a
Solicitation;
(ppp) "Vendor" means a supplier/seller of Goods or Services; and
(qqq) "Working Day" means Monday to Friday inclusive, and excludes: (i)
Saturday and Sunday; (ii) any statutory holiday recognized by the
Town; and (iii) any day that the Town's main office (Town Hall) is
closed.
3.2 To establish the definition of any other Procurement terms not herein included,
reference may be made to the latest edition of the Institute for Public
Procurement (NIGP) Public Procurement Dictionary of Terms and the
Purchasing Management Association of Canada (PMAC) Dictionary of
Purchasing Terms.
4. APPLICATION
4.1 This by-law shall apply to all Departments of the Town. For clarity, this by-law
does not apply to purchases of Central York Fire Services or any municipal
services corporation established by the Town.
4.2 No purchase of Goods, Services, or Construction or Sale of Personal Property
shall be authorized unless it is in compliance with this by-law.
4.3 This by-law does not apply to the lease, use, purchase, disposal, or Sale of
Real Property or to any matter to which Town Administration Procedure No. 55
applies, or any successor thereto.
By-law Number 5500-13 Page 10
5. RESPONSIBILITIES
5.1 Department Heads shall be responsible for:
(a) all Procurement activity in their Department within the prescribed limits
of this by-law, including recommendation of Award and preparing the
necessary report to Council if required;
(b) delegating spending authority limits to Department staff in compliance
with this by-law and all applicable Town policies;
(c) ensuring that that all of provisions of section 1 of this by-law are
complied with;
(d) ensuring that all Procurement activities and decisions are Authorized by
this by-law and are carried out within the financial and other limits set
out in Schedule "D" - Bid Thresholds;
(a) ensuring that no Procurement activity or decision in their Department is
contrary to this by-law and informing Council, in consultation with the
Purchasing Manager and Town Solicitor, when serious and material
non-compliance has occurred;
(f) monitoring of all contract expenditures and ensuring that financial
limitations have been complied with;
(g) ensuring that all required documentation (e.g., WSIB clearance,
insurance certificate, executed agreement) has been received prior to
commencement of any work;
(h) ensuring that all accounts are paid within the times set out in a Contract
(provided a Contractor has met all conditions of the applicable
Contract);
(i) ensuring that all Goods, Services, or Construction contracted for have
been received as per the terms of Contract;
(j) ensuring that all Awards are subject to the identification and availability
of sufficient approved funding in appropriate accounts, and that the
required funding for future years of a Contract can reasonably be
expected to be made available in the current or future yearly budgets
based on historical spending on similar Contracts; and
(k) ensuring that Contracts are monitored and documented in compliance
with the Contractor performance procedures contained in this by-law to
ensure that performance is in accordance with the requirements of the
Contract, and notifying the Purchasing Manager if action is to be taken
to correct the performance of a Contractor where it falls below the
standard required by the applicable Contract, including the completion
of a Contractor performance report.
5.2 The Purchasing Manager shall be responsible for:
(a) providing Procurement advice and services to each Department, the
CAO, Council, and Local Boards for the purposes of fulfilling the
Procurement needs of the Town;
(b) ensuring that all required documentation (e.g., WSIB clearance,
insurance certificate, executed Contract) has been received prior to
commencement of any work;
(c) all aspects of the Solicitation process and ensuring compliance to the
terms and conditions of Bid Documents;
By-law Number 5500-13 Page 11
(d) ensuring compliance by Town staff with this by-law and reporting non-
compliance to the appropriate Department Head, and to the Town
Solicitor and CAO as necessary;
(e) developing appropriate processes or procedures to ensure that the
provisions of this by-law are met and to ensure the proper functioning of
Procurement for the Town;
(f) the standardization of Goods and Services where appropriate and
possible, in collaboration with the user Department(s);
(g) the disposal of Personal Property which has been declared surplus by a
Department Head;
(h) participating in Co-operative Purchasing with other levels of
government, municipalities, boards, agencies, commissions, or private
sector entities where it is in the best interests of the Town; and
(i) compliance with section 1 of this by-law.
6. AUTHORITY
6.1 In the event that a Bid has been approved by Council and Awarded to the
selected Bidder and the selected Bidder fails to enter into a Contract, the
Purchasing Manager shall be granted the Authority to proceed to the next
lowest Compliant and Responsible Bidder or the next highest evaluated
Compliant and Responsible Proponent for the Award of a Contract, without
going back to Council for approval to Award, providing the requirements
remain unchanged and the new Contract is within budget. Prior to such new
Award, the Purchasing Manager shall obtain approval from both the
responsible Department Head and the CAO. The Department Head shall
prepare a report to Council for information purposes.
6.2 The CAO has the Authority to:
(a) instruct Department Heads not to Award Contracts, notwithstanding
their Authority to do so under this by-law, and instead to submit
recommendations for Contract Award to Council for approval; in
addition, the CAO may provide additional restrictions concerning
Procurement where such action is considered necessary and in the
best interest of the Town;
(b) Award Contracts during the time that regular Council meetings are
suspended, during a period of Council recess in excess of thirty (30)
days, or during the Election Period, as a result of a Solicitation that
normally requires Council approval, provided that a report is submitted
to Council (as soon as reasonably possible) setting out the details of
any Contract Awarded pursuant to this Authority;
(c) Award Contracts for an Emergency Purchase, in accordance with
section 13.4 of this by-law; and
(d) delegate spending authority limits to staff in compliance with this by-law
and all applicable Town policies.
7. RESTRICTIONS AND EXCEPTIONS
7.1 The acquisition methods described in this by-law are not required for the
Purchase of those items listed in Schedule "A" — Exceptions, or as otherwise
listed in this by-law.
7.2 No Contract or Purchase Order for Goods, Services, or Construction may be
divided into two or more parts to avoid the application of the provisions of this
by-law.
By-law Number 5500-13 Page 12
7.3 No Town employee, Council member, or Local Board member or employee
shall personally obtain any Real or Personal Property of the Town that has
been declared surplus unless it is obtained through a public process.
7.4 No Town employee or Council member shall Purchase on behalf of the Town
any Goods, Services or Construction, except in accordance with this by-law.
7.5 All Council members and employees of the Town shall declare any Conflict of
Interest to the Purchasing Manager and the CAO (and to their Department
Head if they are an employee of the Town), and such persons shall not
participate in the Procurement process to which the Conflict of Interest relates.
7.6 All Procurement undertaken by the Town shall be undertaken in accordance
with this by-law, the Corporate Policies and Procedures of the Town, and in
accordance with the Municipal Conflict of Interest Act, R.S.O. 1990, c. M.50,
as amended.
7.7 The Town may only enter into a Financing Lease in accordance with the
Town's policies related thereto.
7.8 The Town may use any privilege clause contained in the Town's Bid
Documents for consideration of the acceptance or rejection of any Bid
received by the Town pursuant to this by-law.
7.9 During the consideration of Award of Contracts, or during consideration to
determine whether a Bidder is a Responsible Bidder, the Town may consider,
among other items: previously completed Contractor evaluations, past
performance, and performance evaluation reports. In addition, where the
Purchasing Manager, in consultation with the relevant Department Head and
the Town Solicitor, is of the opinion that an Award to a Bidder would
undermine the business reputation of the Town or undermine the public's
confidence in the integrity of the Town's Procurement process as a result of
the Town having knowledge or information of such Bidder's criminal activity,
bid -rigging, anti -competitive practices, or other activities that are meant to
undermine the Procurement process (whether at the Town or elsewhere), the
Purchasing Manager may then determine that such Bidder is not a
Responsible Bidder and disqualify such Bidder. At his/her sole discretion, the
Purchasing Manager has the right to disqualify a Bidder based on any
unresolved performance or financial disputes.
PART 2: PROCUREMENT APPROVAL AND METHODS
8. PRESCRIBED COUNCIL APPROVAL
8.1 Save and except for the circumstances in Section 6 of this by-law, setting out
additional and alternative Authority, the following Awards are subject to
Council approval:
(a) where there is no provision in the Town's annual budget for the item
subject to the Contract or Purchase Order;
(b) any Contract requiring approval from the Ontario Municipal Board;
(c) any Contract required by statute to be made by Council;
(d) any Contract prescribed by a court order;
(e) any Award where Council has requested final approval to Award;
(f) any Award having a total cost (excluding taxes) that would be higher
than the Council -approved capital estimates or capital budget for such
Award, and the necessary adjustments cannot be made;
By-law Number 5500-13 Page 13
(g) where Authority to approve has not been expressly delegated by
Council or by Schedule "D" — Bid Thresholds of this by-law;
(h) any Award having a total cost (excluding taxes) that falls within a
threshold category that requires Council approval as set out in
Schedule "D" - Bid Thresholds;
(i) where an Award is being recommended pursuant to a RFQ or RIFT and
the recommended Bidder is not the lowest Compliant Bidder, because
the lowest Compliant Bidder has been determined not to be a
Responsible Bidder; or
(j) as otherwise requested to obtain approval by the CAO.
9. BID REVIEW COMMITTEE (BRC) AND BID IRREGULARITIES
9.1 There shall be a Bid Review Committee, hereinafter referred to as the 'BRC',
composed of, at a minimum, the following members of Town staff:
• the Purchasing Manager or designate; and
• a lawyer from the Legal Services Department, or designate.
Furthermore, if deemed to be required by the above members of the BRC, a
representative from the Town Department requesting the Procurement and/or
any other party deemed appropriate by the BRC, may be added to the BRC.
9.2 In the event that a Bid contains an Irregularity that cannot be resolved by the
Purchasing Division, or where there is a challenge to the Procurement
process, the Bid at issue shall be referred to the BRC. The BRC shall review
any such Bid or challenge and take the action prescribed in Schedule "B" - Bid
Irregularities or Schedule "C" - Proposal Irregularities, as appropriate. The
decision of the BRC shall be final.
10. PROCUREMENT PROCESS
10.1 Where applicable, each of the Procurement methods set out in this by-law
shall be undertaken in compliance with the following:
(a) the scope of the Goods, Services or Construction shall be clearly and
extensively defined by the Bid Document;
(b) the Bid document shall be, to the extent possible, standardized using
common forms and processes;
(c) the Solicitation shall be advertised, if applicable, to ensure the most
comprehensive and competitive response reasonably possible to the
Solicitation, at the discretion of the Purchasing Manager;
(d) all Bids received by the Town shall be kept together in a secure place
until the time for opening;
(e) all Bids shall be evaluated using an open, fair, and transparent process
as may be possible under the circumstances of a particular Solicitation;
(f) for Proposals, the evaluation criteria, and evaluation rating shall be
identified in the Request for Proposal document and shall be evaluated
by the Evaluation Committee based on that criteria and rating, unless
superseded by an Addendum, using a standardized form of evaluation
record;
(g) all Bid Documents shall clearly set out the requirements for the price
element of the Bid, specifying whether the Bid price is submitted on a
unit price or subtotal or total price basis and whether it is net of any
taxes; in addition, a Bid Document may include provisions for early
By-law Number 5500-13 Page 14
payment discounts, premiums, financing charges, administrative costs,
cost of living or other escalations, contingencies or other deductions or
additions and how any contract extras shall be dealt with;
(h) Bid records shall be filed and maintained in accordance with any
applicable record retention by-law and/or policy of the Town;
(i) Bids shall be Awarded based on the terms and conditions specified in
the Town's Bid Documents and in accordance with this by-law;
(j) all Bidders shall, where required by this by-law, be required to comply
with the Contract preparation and execution requirements of section 14
of this by-law if they are Awarded the Contract;
(k) Contracts shall be monitored and documented by the Department Head
in accordance with section 15 of this by-law, to ensure that performance
is in accordance with the requirements of the Contract and steps shall
be taken to correct the performance of a Contractor where it falls below
the standard required by the Contract; and
(1) all Contracts, once Awarded and executed by the Town, are public
documents, save and except for detailed pricing submissions (but
excluding the totals as set out in the pricing document of the Bid
Documents) and personal information protected under the Municipal
Freedom of Information and Protection of Privacy Act. No Bidder may
insert conditions to exempt their Contract from such public disclosure or
accessibility.
11. PRE -QUALIFICATION
11.1 REQUEST FOR PRE -QUALIFICATION (RFPQ)
(a) The Purchasing Manager may conduct a RFPQ for the purpose of
selecting qualified Bidders to respond to a subsequent Solicitation.
(b) When a RFPQ is issued, a pre -qualification Bid Document shall be
provided to potential bidders setting out the criteria for pre -qualification.
(c) The Town may use any information provided by a Bidder in response to
a RFPQ in the evaluation of a subsequent related Bid and/or select a
limited number of Bidders to be qualified to Bid on the subsequent
related Solicitation.
(d) Advertisement of the RFPQ shall be based on the estimated Contract
value, in accordance with Schedule "D" - Bid Thresholds of this by-law.
(e) The selection of Bidders following a RFPQ shall not create any
contractual obligation between the Town and a pre -qualified Bidder and
does not oblige the Town to issue any subsequent Solicitation.
(f) Pre -qualification under a RFPQ may be made a specific pre -condition
to any other Procurement method utilized by the Town, in which case
the Town may restrict participation in a subsequent related Solicitation
to only those RFPQ responding parties who meet the requirements
established in the RFPQ or the selected limited number of Bidders that
are deemed to be most qualified to' Bid on the subsequent related
Solicitation, and choose to advertise a subsequent Solicitation to only
those parties.
12. STANDARD PROCUREMENT METHODS
Unless any other section or exception of this by-law applies, the method of
Procurement for Goods, Services, or Construction shall be in accordance with the
methods described in this section as determined by the Purchasing Manager. All
By-law Number 5500-13 Page 15
Procurement methods noted in this section shall comply with the reporting and
approval requirements set out in Schedule "D" - Bid Thresholds.
12.1 REQUEST FOR EXPRESSIONS OF INTEREST (RFEI) / REQUEST FOR
INFORMATION (RFI)
(a) The Purchasing Manager may conduct a RFEI or a RFI for the purpose
of determining the availability of any Goods, Services or Construction,
or for the purpose of developing a subsequent Solicitation.
(b) The Solicitation for a RFEI or RFI shall be advertised in accordance
with Schedule "D" — Bid Thresholds.
(c) The receipt of a submission by a Respondent in response to a RFEI or
a RFI does not create any contractual obligation on the part of the
Town.
12.2 LOW VALUE PURCHASE (LVP)
(a) LVPs can be used for the Procurement of Goods, Services, or
Construction not covered by a term Contract or co-operative Contract,
having an estimated total cost within the applicable threshold set out in
Schedule "D" - Bid Thresholds.
(b) The Department Head may appoint individuals and assign a limit of
spending authority to make LVPs. Such purchases are at the discretion
of the Department Head, who shall ensure that they are made at fair
value.
(c) Competition or advertisement are not required to make a LVP, but can
be made and handled by any Department or the Purchasing Manager.
(d) LVPs may be made utilizing a Purchase Order or a Purchasing Card.
(e) A Contractor subject to a LVP shall be required to comply with the
contractor performance requirements set out in section 15 of this by-
law.
12.3 INFORMAL QUICK BID REQUEST FOR QUOTATION (QB-RFQ) I
INFORMAL QUICK BID REQUEST FOR PROPOSAL (QB-RFP)
(a) QB-RFQs or QB-RFPs can be used for the Procurement of Goods,
Services, or Construction not covered by a term Contract or co-
operative Contract, having an estimated total cost within or below the
applicable threshold set out in Schedule "D" - Bid Thresholds.
(b) A Solicitation for a QB-RFQ or a QB-RFP may be released by a
Department Head (or a designate) or the Purchasing Manager, on an
invitational basis and/or advertised as set out in Schedule "D" - Bid
Thresholds.
(c) Any Irregularities in a Bid submitted in response for a Solicitation of a
QB-RFQ or a QB-RFP shall be dealt with in accordance with Schedule
"B" - Bid Irregularities or Schedule "C" - Proposal Irregularities and in
compliance with the procedures of this by-law.
12.4 FORMAL REQUEST FOR QUOTATION (RFQ)
(a) RFQs can be used for the Procurement of Goods, Services, or
Construction having an estimated total cost within or below the
applicable threshold set out in Schedule "D" - Bid Thresholds.
(b) The Solicitation for a RFQ shall be advertised in accordance with
Schedule "D" — Bid Thresholds. In the case of a pre -qualified RFQ,
By-law Number 5500-13 Page 16
only the selected pre -qualified Bidders shall' be notified about the
Solicitation.
(c) Any Irregularities in a Bid responding to a RFQ shall be dealt with in
accordance with Schedule "B" - Bid Irregularities and in compliance with
the procedures stated in this by-law.
12.5 REQUEST FOR TENDER (RFT)
(a) RFTs can be used for any dollar value for the Procurement of Goods,
Services, or Construction, but a RFT shall be used for the Procurement
of Goods, Services, or Construction having an estimated total cost
within the applicable threshold set out in Schedule "M - Bid Thresholds.
(b) A RFT may be used where all of the following criteria apply:
(i) two or more sources are considered capable of supplying the
Goods, Services or Construction;
(ii) the Goods, Services, or Construction is adequately defined to
permit the evaluation of Bids against clearly stated criteria and/or
specifications; and
(iii) the market conditions are such that Bids can be submitted on a
competitive pricing basis.
(c) The Solicitation for a RFT shall be advertised in accordance with
Schedule " Y — Bid Thresholds. In the case of a pre -qualified RFT, only
the selected pre -qualified Bidders shall be notified about the Solicitation
and be eligible to submit a Bid.
(d) Any Irregularities in a Bid responding to an RFT shall be dealt with in
accordance with Schedule "B" - Bid Irregularities and in compliance with
the procedures stated in this by-law.
12.6 REQUEST FOR PROPOSAL (RFP)
(a) RFPs can be used for any dollar value for the Procurement of Goods,
Services, or Construction, but a RFP shall be used for the Procurement
of Goods, Services, or Construction having an estimated total cost
within the applicable threshold set out in Schedule "D" - Bid Thresholds.
(b) The goal of a RFP is to implement an effective, objective, fair, open,
transparent, accountable and efficient process for obtaining unique
Proposals designed to meet broad outcomes to a complex problem or
need for which there is no clear or single solution, and to select a
Proposal that best meets the requirements specified in the competition,
based on qualitative, technical and pricing considerations.
(c) A RFP may provide for negotiation of all terms, including price, prior to
Award. The scope of negotiability may be restricted in a RFP. A RFP
may include the provision for the negotiation of best and final offers,
and may be a single or multi -step process.
(d) A RFP may be used where any of the following criteria apply:
(i) the selection of the Proponent depends more upon the
effectiveness of the proposed solution than the price alone;
(ii) it is expected that negotiation with one or more Proponents may
be required with respect to any aspect of the Contract; or
(iii) the precise Goods, Services, or Construction, or the
specifications are not known or are not definable and it is
expected that the Proponent will further define them, or for which
By-law Number 5500-13 Page 17
a variety of solutions to the requirement are likely to exist.
(e) The Solicitation for a RFP shall be advertised in accordance with
Schedule "D" — Bid Thresholds. In the case of a pre -qualified RFP, only
the selected pre -qualified Proponents shall be notified about the
Solicitation.
(f) Any Irregularities in a Bid responding to a RFP shall be dealt with in
accordance with Schedule "C" - Proposal Irregularities and in
compliance with the procedures stated in this by-law.
13. ALTERNATIVE PROCUREMENT METHODS
13.1 MULTI -STEP BID CALL
(a) A Multi -Step Bid Call is a Solicitation consisting of at least two stages.
The specific process being implemented will be set out in the Bid
Documents and established by the Purchasing Manager. Generally, it
will consist of the following two steps:
(i) Step 1: a request for a technical Bid is made followed by
evaluations and discussion, without considering any prices, and
the selection of Compliant Bidders and Responsible Bidders
whose technical requirements are considered most acceptable;
and
(ii) Step 2: the review of sealed Bid prices from only those Bidders
whose technical requirements have been rated acceptable in
Step 1.
(b) A Multi -Step Bid Call shall be advertised in accordance with Schedule
"D" — Bid Thresholds. In the case of a pre -qualified Multi -Step Bid Call,
only the selected pre -qualified Respondents shall be notified about the
Solicitation.
13.2 UNSOLICITED BID/PROPOSAL
(a) An Unsolicited Bid/Proposal received by the Town may be reviewed by
the relevant Department Head and the Purchasing Manager.
(b) Any Procurement activity resulting from the receipt of an Unsolicited
Bid/Proposal shall comply with any pertinent provisions of this by-law.
The provisions relating to LVPs, Single Source, Sole Source, or
Emergency Purchases, as appropriate, shall apply to a non-competitive
Contract resulting from an Unsolicited Bid/Proposal.
13.3 NEGOTIATION
(a) Negotiation may be used in conjunction with any other Procurement
methods set out in this by-law for the procurement of Goods, Services,
or Construction, or for the Sale of Personal Property, or for the
development of any Contract, when any of the following criteria apply:
(i) the Goods, Services, or Construction are deemed necessary by
the CAO or Department Head as a result of an Emergency
Purchase which would not reasonably permit the use of any
other prescribed Procurement method;
(ii) due to abnormal market conditions, the Goods, Services, or
Construction required are in short supply;
(iii) where there is a Single Source or Sole Source of the Goods,
Services, or Construction which would be acceptable, permitted
under this by-law, and is cost effective;
By-law Number 5500-13 Page 18
(iv) where only one Proposal/Bid is received and it exceeds the
amount budgeted for the procurement, negotiations may be
conducted, if appropriate under the circumstances;
(v) after the Request for Proposal process closed, if appropriate
under the circumstances, to clarify any terms of the Proposal and
any resulting Contract;
(vi) with the highest evaluated Compliant and Responsible Bidder to
a Request for Proposal; however, if a negotiated agreement
cannot be reached, the Town may proceed to negotiate with the
next highest evaluated Compliant and Responsible Bidder;
(vii) where the extension or reinstatement of an existing Contract,
with Council approval, would be more cost effective or beneficial
to the Town;
(viii) where, for security or confidentiality . reasons, it is in the best
interest of the Town;
(ix) with the highest Offeror in response to a Sale of Personal
Property; or
(x) where authorized by Council to do so.
(b) The award of any negotiated Contract shall comply with the Contract
execution provisions contained in section 14 and the contractor
performance provisions contained in section 15 of this by-law.
13.4 EMERGENCY PURCHASES
(a) In the case of an emergency declared pursuant to the Town's Municipal
Emergency Management Program and Emergency Response Plan,
purchases shall be authorized as set out in such Program and Plan,
and the Treasurer shall prepare the required accountability and
financial reports for Council for information following the declaration of
the termination of the emergency. During such emergency, this by-law
shall serve only as a reference for those officials in authority during
such emergency, and otherwise is suspended for all Purchases directly
or indirectly related to addressing and managing such emergency. The
overriding Procurement guideline in such an emergency shall be to
address the emergency as quickly and safely as possible so as to
protect human life, while minimizing costs to the Town.
(b) In the event of an emergency that does not fall into paragraph (a) of this
section, an Emergency Purchase may be made when an event occurs
that is determined by the Mayor and the CAO to be a threat to any of
the following:
(i) public health;
(ii) the maintenance of essential Town services or to prevent
disruption of essential Town services;
(iii) the safety or welfare of persons or of public property; or
(iv) the security of the Town's interests and the occurrence requires
the immediate delivery for Goods, Services, or Construction;
and time does not permit for competitive Bids.
(c) The following process shall be conducted for any Emergency
Purchases pursuant to paragraph (b) of this subsection:
By-law Number 5500-13 Page 19
(i) Where it is estimated that the expenditure is within the Authority
of the Department Head as stated in Schedule "D" - Bid
Thresholds of this by-law, the Purchasing Manager, upon the
recommendation of the Department Head, shall secure any
Goods, Services, or Construction required in an efficient,
expeditious manner that is in the best interest of the Town.
A Purchase Order shall be issued or a Purchasing Card shall be
used. In case of an after -hour emergency, if a Purchasing Card
is not available, a Purchase Order shall be issued the next
Working Day.
(ii) Where it is estimated that the expenditure exceeds the Authority
of the Department Head as stated in Schedule "D" - Bid
Thresholds of this by-law, the approval of the CAO shall be
required. The Purchasing Manager, upon the recommendation
of the CAO, shall secure any Goods, Services, or Construction
required in an efficient, expeditious manner that is in the best
interest of the Town.
An information report shall be submitted by the CAO to Council,
as soon as reasonably possible, explaining the actions taken and
the reasons therefore.
A Purchase Order shall be issued or a Purchasing Card shall be
used. In case of an after -hour emergency, if a Purchasing Card
is not available, a Purchase Order shall be issued the next
Working Day.
13.5 SOLE SOURCE PURCHASES
(a) A Sole Source Purchase may be utilized for the Procurement of Goods,
Services, or Construction without the competitive Procurement process
when there is only one source that is able to meet the requirements of
the Procurement, which may be due to their unique ability or skill,
possession of proprietary technology, copyright, patent or other
intellectual property.
(b) The Purchasing Manager shall require satisfactory justification from the
requesting Department Head explaining the reasons for the Sole
Source Purchase.
(c) Sole Source Purchases shall be arranged by the Purchasing Manager
and shall be in compliance with Schedule "D" - Bid Thresholds of this
by-law.
(d) Sole Source Purchases shall comply with the reporting and approval
requirements set out in Schedule "D" - Bid Thresholds of this by-law.
(e) Sole Source Purchases shall be required to comply with the Contract
execution requirements of section 14 and the Contractor performance
requirements of section 15 of this by-law.
(f) A semi-annual report of all Sole Source Purchases not requiring
Council approval shall be prepared by the Purchasing Manager and
reported to the CAO.
13.6 SINGLE SOURCE PURCHASES
(a) Single Source purchasing may be conducted for the Procurement of
Goods, Services, or Construction without the competitive Procurement
process, when any of the following circumstances apply:
(i) for reasons of standardization, warranty, function or service,
By-law Number 5500-13 Page 20
such as technical qualifications;
(ii) where compatibility with an existing product, equipment, facility
or services is a paramount consideration;
(iii) where a Good is purchased for testing or trial use, or for resale;
(iv) where the Town has a rental contract and an offer to buy-out the
equipment or extend the rental contract may be beneficial to the
Town;
(v) for matters involving security, police matters, or confidential or
privileged issues where the disclosure of such matters through
an open Solicitation process could reasonably be expected to
compromise confidential or privileged information, interfere with
the Town's ability to maintain security or order or to protect
human, animal or plant life or health, cause economic disruption,
or otherwise be contrary to the public interest;
(vi) a Contract is to be awarded under a Co-operative Purchase or a
Piggyback arrangement;
(vii) in the absence of any Bids in response to a Solicitation for Bids
made in accordance with this by-law;
(viii) in an Emergency Purchase situation pursuant to section 13.4 of
this by-law;
(ix) notwithstanding anything in this by-law, where a purchase is
determined by Council to be fair and reasonable and is made
from a non-profit corporation for the purpose of achieving
charitable Town objectives; or
(x) for the extension or renewal of an existing Contract where the
amount of the extended or renewed Contract is within the
budgeted amount for the provision of such Goods, Services, or
Construction, or is otherwise approved by Council.
(b) The Purchasing Manager shall require satisfactory justification from the
requesting Department Head explaining the reasons for the Single
Source Purchase.
(c) Single Source Purchases shall be arranged by the Purchasing Manager
and shall be in compliance with Schedule "D" - Bid Thresholds of this
by-law.
(d) Single Source Purchases shall comply with the reporting and approval
requirements set out in Schedule "D" - Bid Thresholds.
(e) Single Source Purchases shall be required to comply with the Contract
execution requirements of section 14 and the Contractor performance
requirements of section 15 of this by-law.
(f) A semi-annual report of all Single Source purchases not requiring
Council approval shall be prepared by the Purchasing Manager and
reported to the CAO.
13.7 CO-OPERATIVE PURCHASING AND PIGGYBACK
(a) The Town may participate with other government agencies or pubic
authorities in Co-operative Purchasing where it is in the best interests of
the Town to do so. The Town is not required to adhere to the
advertising requirements under this by-law and does not need to
conduct its own competition when engaged in Co-operative Purchasing.
By-law Number 5500-13 Page 21
The policies and procedures regarding the Solicitation and Procurement
process of the government agencies or public authorities calling the Co-
operative Purchasing Bid on behalf of the participants are to be
accepted policies and procedures for that particular Bid.
(b) The Town may Piggyback by accepting the results of a competitive
Procurement process of another government agency or pubic authority
where the provisions of the original Solicitation allow for such
Piggyback. The Town is not required to adhere to the advertising
requirements under this by-law and does not need to conduct its own
competition when engaged in a Piggyback purchase.
(c) Co-operative Purchasing and Piggyback Purchases shall comply with
the reporting and approval requirements set out in Schedule "D" - Bid
Thresholds.
13.8 IN-HOUSE BIDS
In -House Bids shall only be utilized where external sources have also been
requested to submit Bids and where Council has approved such Bids.
13.9 "NO COST" PROCUREMENT
(a) "No Cost" Procurement occurs where the Town does not bear any cost
(expense or capital expenditure). This type of Procurement activity
includes revenue generating opportunities and cost pass -through to a
third party for a particular project.
(b) Revenue generating opportunities shall be acquired by the Town using
the same Procurement methods and approval requirements according
to the dollar amount thresholds in Schedule "D" — Bid Thresholds for
Procurement that has a cost to the Town, which shall be determined
based on an actual value (if available) or reasonable estimate of the
value/expected revenue of the "No Cost' Procurement.
(c) Cost pass -through to a third party where the third party is covering less
than one hundred percent (100%) of the total costs for a particular
project shall 'be acquired by the Town using the same Procurement
methods and approval requirements according to the dollar amount
thresholds in Schedule "D" — Bid Thresholds for Procurement that has a
cost to the Town, which shall be determined based on an actual value
(if available) or reasonable estimate of the value/expected revenue of
the "No Cost' Procurement. Full cost coverage by a third party is dealt
with in Schedule "A" — Exceptions to this by-law.
PART 3: POST -AWARD REQUIREMENTS AND PERFORMANCE
14. CONTRACT EXECUTION
14.1 Prior to the commencement of the provision of Goods, Services, or
Construction, the selected Bidder shall be required to: (a) execute a Contract;
(b) acquire a Purchase Order; or (c) obtain a written requisition from the Town,
depending on the type and dollar amount threshold of the Procurement as set
out in Schedule "D" — Bid Thresholds of this by-law. Where applicable for
LVPs, Town staff may utilize P-Cards for the acquisition of Goods and
Services.
14.2 Where applicable, a selected Bidder shall be required to submit any and all
such documents, certificates, and securities as a condition precedent to, and
for the performance of, a Contract, at the discretion of the Purchasing
Manager. Such items may include, without limiting the generality of the
By-law Number 5500-13 Page 22
foregoing: a Bond, other security for damages in the form of a negotiable
instrument, insurance certificates, a certificate of clearance from the
Workplace Safety and Insurance Board (WSIB), the contractor's Health &
Safety policy, confirmation of compliance with the AODA, and a project
schedule.
15. CONTRACTOR PERFORMANCE
15..1 The Department Head shall be responsible for monitoring the performance of
Contractors. The Department Head shall document evidence related to same
and advise the Purchasing Manager in writing where the performance of a
Contractor has been unsatisfactory in terms of failure to meet Contract
specifications, performance, invoicing conditions, health and safety
requirements, environmental protections, or any other Town requirements set
by the Purchasing Manager from time to time.
15.2 Upon completion of a Contract or the supply of Goods, Services, or
Construction for the Town by a Contractor, a written performance evaluation of
the Contractor shall be completed by the relevant Department Head and the
Purchasing Manager and the evaluation shall be place in the Town file
corresponding to the Contractor. A copy of the evaluation and supporting
documentation may be made available to persons requesting Town references
for a future Contract and also may be reviewed and may form part of the
criteria when considering the Town's future Award of Contracts.
15.3 In a case where an interim performance evaluation is done prior to the
completion of a Contract or the supply of Goods, Services, or Construction,
and where the interim evaluation has determined the Contractor performance
to be unsatisfactory for any reason, a Department Head or the Purchasing
Manager may request an interim evaluation meeting with a Contractor to
discuss any deficiencies and to establish a time for their rectification.
15.4 A Contractor deemed, in the sole opinions of the relevant Town staff and the
Purchasing Manager, to have poor or unsatisfactory performance of a
Contract may:
(a) be refused the Award of a future Contract;
(b) have Town staff recommend that Council not Award a future Contract to
the Contractor; or
(c) be placed on a probationary period.
A probationary period may specify additional requirements as determined by
the Purchasing Manager, including the requirement of additional Contract
performance security or interim performance evaluations to ensure that the
terms of a future Contract are strictly adhered to.
16. CONTRACT TERMINATION
16.1 Where a Contract is required pursuant to Schedule "D" — Bid Thresholds, and
the authority to execute the Contract is delegated therein to a Department
Head, then the CAO, upon the recommendation of the Purchasing Manager,
has the Authority to terminate such a Contract at any time under the following
circumstances:
(a) where a Contractor is in default of terms and/or obligations under an
applicable Contract and has failed to remedy such default as agreed
upon during an interim evaluation meeting to address the issue;
(b) where a Contractor commits an act of bankruptcy, a receiver is
appointed on account of insolvency of a Contractor or in respect of any
By-law Number 5500-13 Page 23
of its property, or if the Contractor makes a general assignment for the
benefit of its creditors; or
(c) where it is discovered that the award of a Contract was induced through
illegal or fraudulent means or that the Contractor has acted in violation
of any federal or provincial laws during the performance of the Contract.
16.2 Where a Contract is required pursuant to Schedule "D" — Bid Thresholds, and
the authority to execute the Contract requires Council approval, then only
Council shall have the Authority to terminate such Contract, on the advice of
the relevant Department Head and the Purchasing Manager.
PART 4: SPECIFIC BID AND PROCUREMENT ISSUES
17. CONTINGENCIES
17.1 Where any Purchase of Goods, Services, or Construction has been
Authorized under this by-law, the relevant Department Head may Authorize
the disbursement of additional funds for unknown/unexpected conditions or
circumstances affecting the Contract work, provided that such additional funds
shall not exceed ten percent (10%) of the original Contract amount, and
provided that the additional funds are required to complete work set out in the
original Contract.
18. CANCELLATION OF SOLICITATION
18.1 The Purchasing Manager may cancel any Solicitation where:
(a) no Bids were received in response to the Solicitation or none of the
received Bids were from a Compliant and Responsible Bidder;
(b) the prices contained in all the submitted Bids in response to the
Solicitation exceed the approved budget amount for the project or
Purchase, and there is a cancellation request from the Department
Head who initiated the Solicitation; or
(c) in the opinion of the Department Head responsible for the Solicitation:
(i) a material change in the scope of work or specifications is
required and a new Solicitation should be issued according to
the Purchasing Manager;
(ii) none of the Bids received adequately address the purpose or
intent of the Solicitation or the goal or need of the Town that was
to be addressed through the Solicitation;
(iii) the Goods, Services, or Construction to be provided by the
Solicitation are no longer required by the Town; or
(iv) in the opinion of the Purchasing Manager, the integrity of the
Solicitation has been compromised or the Procurement process
was materially flawed.
19. ACCESS TO INFORMATION
19.1 The disclosure of information received pursuant to any Procurement process,
Solicitation, or the Award of a Contract shall be made in accordance with the
provisions of the Municipal Freedom of Information and Protection of Privacy
Act and the Personal Health Information Protection Act, as amended.
By-law Number 5500-13 Page 24
19.2 Evaluation score sheets of individual Town staff evaluators for each Bidder or
Proponent shall remain confidential. Members of Council may not be part of
any Bid evaluation process.
PART 5: PERSONAL AND REAL PROPERTY
20. DISPOSAL OF PERSONAL PROPERTY
20.1 Personal Property of the Town, such as furniture, vehicles, equipment, stocks
of all supplies, and other Goods and materials, which are no longer used by
the Town or which have become obsolete, worn out, or incapable of being
used, shall be identified as surplus by the applicable Department Head. Any
disposal or Sale of such surplus items shall be in accordance with the
provisions of this by-law where applicable. The terms of such disposal or Sale
shall be documented.
20.2 Personal Property shall be disposed of using the following process:
(a) The Town's Purchasing Division (in consultation with the relevant
Department Head) shall first offer surplus Personal Property to other
Departments or Local Boards.
(b) Should any Personal Property remain available after the provisions of
paragraph (a) have been carried out, the Purchasing Manager shall
dispose of such items by one of following methods, which method is
determined by the Purchasing Manager according to the potential for
the highest monetary return for the Personal Property and the
resources available to engage such a process:
(i) Sale: A Sale Solicitation shall be issued and advertised on an
electronic tender system, daily newspaper, or through the York
Purchasing Cooperative. Offers shall be received by facsimile,
electronically, or by sealed Bid, as determined by the Purchasing
Manager;
(ii) Public auction: The Purchasing Manager shall arrange for the
Personal Property to be sold at a public auction. A minimum bid
may or may not be set and shall be determined by the
Purchasing Manager with input from other Town staff as
appropriate; or
(iii) Sale or return/trade-in to a Vendor: Sale or trade-in of the
Personal Property directly to a Vendor or Contractor in the
applicable line of business.
(c) Any Personal Property still available after the provisions of paragraphs
(a) and (b) have been carried out shall be disposed of by one of the
following methods:
(i) The Purchasing Manager shall notify community and/or non-
profit agencies, as applicable, of the Town's intent of disposal
and negotiate such disposal with any groups or individuals that
indicate interest in a manner that is in the best interest of the
Town.
(ii) Any other reasonable manner, including disposal as waste, at
the discretion of the Purchasing Manager.
(d) Where an item or a group of similar items has been declared surplus
and has a value of less than One Hundred Dollars ($100.00), all as
determined by the Purchasing Manager, the Department Head
By-law Number 5500-13 Page 25
responsible for such item(s) may dispose of such item(s) in a manner
alternative to, and not in accordance with, the methods set out under
paragraphs (a), (b), and (c), at the discretion of the applicable
Department Head.
20.3 No Town staff member, Council member, or Local Board member shall
personally obtain any Personal Property that has been declared surplus
unless it has been obtained in accordance with any applicable provisions of
this by-law.
21. REAL PROPERTY
21.1 This by-law shall not apply to the acquisition or Sale of Real Property. Real
Property interests of the Town shall be acquired or disposed of in accordance
with the Town's Administration Procedure No. 55 — Real Estate Sales,
Purchases, and Leases, as may be amended or successor thereof, together
with any other applicable process or by-laws dealing with the acquisition,
disposal, or Sale of Real Property, which are separate from this by-law.
PART 6: MISCELLANEOUS CONSIDERATIONS AND GENERAL
ITEMS
22. TIE BIDS RECEIVED
22.1 In the case of tie between two Compliant and Responsible Bidders and where
multiple awards are not possible, the Town shall determine the winning Bid
from the two tied Bids by a coin toss conducted by the Purchasing Manager.
22.2 In the case of a tie between three or more Compliant and Responsible Bidders
and where multiple awards are not possible, the Town shall determine the
Winning Bid from the group of tied Bids by a random lottery draw conducted by
the Purchasing Manager.
23. NO LOCAL PREFERENCE
23.1 The Town will endeavour to achieve the best value in its transactions. The
Town will not be bound to Purchase Goods or Services based upon Canadian
content, nor shall the Town practice local preference in awarding Contracts,
unless specifically required to do so by an upper -tier government body. All
Procurement processes are to be conducted so as not to unduly exclude local
vendors while at the same time maintaining the duty to conduct a fair
competition and adhere to the generally accepted legal principles applicable to
Procurement.
24. ENVIRONMENTAL CONSIDERATIONS
24.1 For the purposes of this section:
"Environmentally Preferred" means Goods and Services that have a lesser
impact on human health and the environment when compared with competing
products or services. This comparison may consider raw material acquisition,
production, recycled content, manufacturing, waste management, packaging,
distribution, re -use, operation, maintenance or disposal. An environmentally
preferred Good or Service will meet the criteria of a recognized third party
certification program, where such a specification exists for that product class.
"Third Party Environmental Certification" means an independent
organization that licenses and certifies products that meet environmental
standards developed by that organization. The certification programs most
By-law Number 5500-13 Page 26
frequently used to certify environmentally preferred products are provided in
the Town's Green Procurement Policy.
24.2 To encourage the procurement of Environmentally Preferred Goods and
Services with due regard to the preservation and enhancement of the natural
environment, Bid Documents may require methods resulting in the least
damage to the environment, such as those products which have a recognized
Third Party Environmental Certification, where practicable and in accordance
with the Town's Green Procurement Policy.
25. ACCESSIBILITY CONSIDERATIONS
25.1 The Town is committed to giving people with disabilities the same opportunity
to access Town Goods and Services and allowing them to benefit from the
same Services, in the same place and in a similar way as other customers.
Pursuant to the provisions of the AODA ands. 5(1) of O. Reg. 191/11, as
amended, the Town shall incorporate accessibility design, criteria, and
features when procuring or acquiring Goods, Services, or facilities, except
where it is not practicable to do so. Programs, Goods, Services, facilities, etc.
should be accessible to persons with disabilities (visible and invisible),
including (without limitation): hearing loss, vision loss, physical or mobility
related impairments, temporary disabilities, learning, speech, language,
cognitive, psychological, psychiatric, intellectual and developmental
disabilities, allergies, and multiple chemical sensitivities.
25.2 If it is determined not to be practicable to incorporate accessibility design,
criteria, and features when Purchasing Goods, Services, or facilities, the
Department Head responsible for any such Procurement shall, upon request,
provide an explanation.
26. BLACK -OUT PERIOD
26.1 Any communication initiated by Bidders to Council members, Town staff, or
Town consultants relating to any pending Award or submitted Bids, other than
to Town staff in the Purchasing Division, is prohibited during the period of time
from the submission of the Bid up to and including the date that the Contract
or Purchase Order with the selected Bidder is executed or approved by the
Town. Any such communication in violation of this subsection will entitle the
Purchasing Manager to disqualify the offending Bidder from consideration for
Award.
26.2 For Bids only (excluding Proposals) and in consultation with the relevant
Department Head, prior to Award the Purchasing Manager may release some
or all of the Bidders who have been determined not to be the lowest Compliant
Bidder, together with their securities held by the Town (including Bid Deposits,
Labour and Material Bonds, and Performance Security).
27. LOBBYING
27.1 From the time the Bid Documents are released in a Solicitation until after the
Award by the Town, no solicitations or lobbying may be made to any Town
staff member, Council member, Town consultant, or to the news media by any
director, officer, principal, employee, agent, family relation, or other
representative of a Bidder (including any other parties that may be involved in
a business relationship with the Bidder) with respect to the merits or value of
the Bidder's Bid. Any such communication in violation of this section will
entitle the Purchasing Manager to disqualify the offending Bidder from
consideration for Award. This subsection does not apply to presentations or
delegations expressly requested by Town staff or by Council, whether in the
Bid Documents or otherwise.
By-law Number 5500-13 Page 27
28. BY-LAW REVIEW
28.1 This by-law shall be monitored and evaluated for effectiveness continuously by
the Purchasing Manager and shall be comprehensively reviewed upon specific
request by the CAO or by Council
29. REPEAL PRECEDENCE AND TRANSITION
29.1 By-law Number 4621-04.17, as amended, and all schedules thereto, is hereby
repealed on the day of this by-law coming into force and effect.
29.2 Town Administration Procedure No. 50, as amended, is hereby repealed on
the day of this by-law coming into force and effect.
29.3 This by-law shall take precedence in the case of any conflict with any other
Town policies or procedures relating to Procurement.
29.4 Notwithstanding section 29.1, for the purposes of transition to this by-law, all
Procurement that commenced (being the date that Bid Documents were
released to the public in a Solicitation) prior to the effective date of this by-law
are subject to the provisions of By-law Number 4621-04.F up to and including
the Award of the Contract or Purchase Order.
30. SHORT TITLE
30.1 This by-law may be referred to as the 'Procurement By-law".
31. IN FORCE
31.1 This by-law shall come into full force and effect on the date of final passage
hereof.
READ A FIRST AND SECOND TIME THIS 28TH DAY OF MAY, 2013.
READ A THIRD TIME AND FINALLY PASSED THIS 28TH DAY OF MAY,
2013.
�as
to form
LegalScrvkes
23=20�3
, TOWN CLERK
By-law Number 5500-13 Page 28
SCHEDULE"A"
The acquisition methods described in this by-law are not required for the
Procurement of the following items:
1. Training and Education
(a) conferences, conventions, courses, and seminars
(b) magazines, books, and periodicals (including subscriptions thereto)
(c) membership dues/fees, continuing education, or certification processes
(d) facilitators and program hosts
(e) staff development, training, and workshops (including all related
equipment, resources, and supplies)
2. Refundable Employee Expenses
(a) as per the approved Town Corporate Policy for employee
reimbursement and allowances
3. Town General Expenses
(a) payroll, benefit premiums, and employee remittances
(b) medical evaluations, consultations, or expenses required by the Town
(c) licences and certificates (e.g., vehicle, elevators, software, etc.)
(d) debenture payments and sinking fund payments
(e) purchase or disposition of financial investments
(f) insurance premiums and expenses
(g) claim and litigation settlements
(h) adjuster service expenses
(i) grants to agencies (in accordance with any applicable Town policies)
(j) newspaper, social media, or other media advertising/notices
(k) Town promotional material
(1) ancillary banking or financial services
(m) bank charges and brokerage fees
(n) payments regarding Real Property (e.g., lease payments, etc.)
(o) remittances of all forms of taxes
(p) charges to and from other governmental bodies (e.g., school boards,
federal and provincial ministries/bodies/agencies, Teranet, LSRCA,
etc.)
(q) payments for employment and temporary help
(r) petty cash replacement
4. Professional and Special Services
(a) committee fees
(b) honorariums
(c) legal fees, expert witness/consultant fees, and other court fees/costs
(d) appraiser
(e) special forensic auditor
(f) land surveyor
(g) real estate agent
(h) arbitrator, mediator, and other similar professionals
(i) postage and courier services
(j) utility charges — including: water, sewer, electricity, natural gas,
telecommunication services, internet, cable television, maintenance
charges, utility relocations, utility construction, and utility acquisition
(k) events or programs supporting non-profit organizations
(1) Town -sponsored employee purchase plans
(m) suppliers and entertainers for special events and programs
(n) Goods, Services, or Construction where one hundred percent (100%) of
the total cost is being paid by or reimbursed by a third party
By-law Number 5500-13 Page 29
SCHEDULE " W
BID IRREGULARITIES
For the purposes of this by-law, the following actions shall be taken regarding Bid
Irregularities (as defined in this by-law, excluding Proposal Irregularities).
ITEM
DESCRIPTION'
ACTION
1.
Late Bid.
2.
Bid not submitted at location specified in the
Solicitation.
3.
Bid submitted in other format than specified
in the Solicitation.
4.
Bid not submitted usin re uired forms.
5.
Bid envelope not sealed.
6.
Bid not legible.
7.
Bid Document not signed in ink with an
original signature (if required by Solicitation)
or not signed by all Bidders (if Bid is on
behalf of a joint -venture).
8.
Signature page not provided in the Bid (if
specified and required in the Solicitation).
9.
Pages requiring completion of information or
specification not submitted with the Bid (if
specified and required in the Solicitation).
10.
Failure to submit a list of subcontractors (if
required in the Bid Document).
11.
Unit price in the "price schedule" which has
been changed but not initialed and the unit
price extension/total price is not consistent
with the unit price as amended.
Automatic rejection.
12.
Pricing page(s) not submitted with the Bid (if
specified and required in the Solicitation).
13.
Bid Deposit (if requested) not submitted with
the Bid.
14.
Bid submitted from a Bidder that has not
been pre -qualified, where pre -qualification
was required in the Solicitation.
15.
Bidder did not attending a mandatory site
meeting if required in the Solicitation).
16.
Undertaking to Provide a Bond or Letter of
Credit, or actual Bond not submitted with the
Bid or not original signed copy (if
requested).
17.
Undertaking to Provide a Bond or Letter of
Credit, or actual Bond, submitted on a form
or in a format not permitted in accordance
with the Bid Document.
18.
Bond, Bid Bond, Undertaking to Bond, or
Agreement to Bond missing: a corporate
seal, proof of authority to bind bonding
company, signature of Bidder, or seal and
signature of surety as applicable).
19.
Incomplete Bid.
Automatic rejection, unless it is stated in the
Solicitation that partial Bids are acceptable,
and the Bid is complete in respect of the
portion of the scope of work or deliverable(s)
that is Bid upon.
If a unit/item price in a Bid is blank, it shall be
interpreted as no charge for that item.
20.
All Addenda not acknowledged as specified
Automatic rejection, unless the relevant
in the Bid Document or each addendum (if
addendum issued is solely for the purpose of
issued).
revising a closing date and/or time and the
Bid is received in accordance with revised
date and/or time.
By-law Number 5500-13 Page 30
ITEM
DESCRIPTION
ACTION
21.
Bid submitted by a Bidder (or by an affiliate,
Possible rejection. Referred to Bid Review
related entity, principal, officer, or director of
Committee for review, consideration, and
such Bidder), who is in unresolved Litigation
determination. Factors to be considered will
with the Town or is the subject of third party
include, but are not limited to: (a) the
claims involving the Town.
severity, materiality, and nexus between the
Litigation and the work for which the Bid is
submitted; (b) where the Town has been
named as plaintiff or defendant pursuant to a
subrogated interest, an appropriate
arrangement has been made to indemnify
the Town; and (c) the Bidder's performance
under previous Contracts with the Town, the
Town's claims history with the Bidder, and an
assessment of the overall risk and total cost
in entering into a Contract with the Bidder.
22.
Alterations, additions, deletions or qualifying
Automatic rejection, unless in the opinion of
statements (referred to as a "variation")
the Bid Review Committee, such variation is
made to the Bid Documents or provided with
considered to be immaterial to the Town.
the Bid.
23.
Alternate items bid in whole or in part that
Rejection of any alternative items not
were not requested in the Solicitation.
requested by the Solicitation.
24.
Bids containing minor clerical errors
If in the opinion of the Purchasing Manager
the errors are of a minor nature and are not
material to the Bid, they can be waived at the
option of the Purchasing Manager.
Otherwise, the Bid shall be rejected. May be
referred to the Bid Review Committee for final
determination.
25.
Strikeouts, erasures, whiteouts, or
Automatic rejection, unless in the opinion of
overwrites made to the Bid form, not initialed
the Purchasing Manager, the failure to initial
by an authorized person.
is minor in nature and is not material to the
determination of the Bid. Otherwise, the Bid
shall be rejected. May be referred to the Bid
Review Committee for final determination.
26.
Mathematical errors for total price which are
Bidders shall accept corrections to total price
not consistent with the unit price or
or tax calculation that is made by the
mathematical errors such as tax calculation
Purchasing Manager. Unit prices shall
errors.
always govern.
27.
Unit price in the "price schedule" which has
Bid will be accepted unless, in the opinion of
been changed but not initialed and the unit
the Purchasing Manager, the changes to the
price extension/total price is consistent with
unit prices create ambiguity and uncertainty —
the unit price as amended.
in such case, the Bid shall be rejected. May
be referred to the Bid Review Committee for
final determination.
28.
Bid Deposit (if requested) contains
Automatic rejection unless insufficient
insufficient funds as called for in the Bid
amount is de minimis ($2.00 or less).
Document.
29.
Other Bid Irregularities
Referred to the Bid Review Committee for
review, consideration, and determination.
The above list of Irregularities is not to be considered as all-inclusive. All Bid
Irregularities (except late bids that were automatically rejected) may be forwarded to
the Bid Review Committee for review, consideration, and determination in
accordance with this by-law.
The application of this Schedule "B" - Bid Irregularities shall not apply to non -binding
Procurement.
By-law Number 5500-13 Page 31
SCHEDULE"C"
PROPOSAL IRREGULARITIES
For the purpose of this by-law, the following actions shall be taken regarding
Proposal Irregularities (as defined in this by-law, excluding Bid Irregularities).
ITEM
I DESCRIPTION
ACTION
1.
Late Proposal.
2.
Proposal not submitted at location specified
in the Solicitation.
3.
Proposal submitted in other format than
specified in the Solicitation.
4.
Proposal not submitted using required forms.
5.
Proposal envelope not sealed.
6.
Proposal not legible.
7.
Proposal not signed in ink with an original
signature (if required by the Solicitation) or
not signed by all Proponents (if Proposal is
on behalf of a joint -venture).
8.
Signature page not provided in the Proposal
ifspecified and required in the Solicitation).
9.
Pages requiring completion of information or
specification not submitted with the Proposal
ifspecified and required in the Solicitation).
10.
Failure to submit a list of subcontractors (if
required in Bid Document).
11.
Unit price in the "price schedule" which has
been changed but not initialed and the unit
price extension/total price is not consistent
with the unit price as amended.
Automatic rejection.
12.
Pricing page(s) not submitted with the
Proposal (if specified and required in the
Solicitation).
13,
Proposal Deposit (if requested) not submitted
with the Proposal.
14.
Proposal submitted from a Proponent that
has not been pre -qualified, where pre -
qualification was required in the Solicitation.
15.
Proponent did not attending a mandatory site
meeting if required in the Solicitation).
16.
Undertaking to Provide a Bond or Letter of
Credit, or actual Bond (if requested), not
submitted with the Proposal.
17.
Undertaking to Provide a Bond or Letter of
Credit, or actual Bond, submitted on a form or
in a format not permitted in accordance with
the Bid Document.
18.
Bond, Bid Bond, Undertaking to Bond, or
Agreement to Bond missing: a corporate
seal, proof of authority to bind bonding
company, signature of Proponent, or seal and
signature of surety as applicable).
19.
Proposal does not address all components
Missing component will be scored zero. If
identified in the Bid Document.
the component has been identified in the Bid
Document as requiring a response for that
component but no response is given, then
automatic rejection.
20.
All Addenda not acknowledged as specified
Automatic rejection, unless the relevant
in the Bid Document or each addendum or
addendum issued is solely for the purpose of
the (if issued).
revising a closing date and/or time and the
Proposal is received in accordance with
revised date and/or time.
By-law Number 5500-13 Page 32
ITEM
DESCRIPTION
ACTION
21.
Proposal submitted by a Proponent (or by an
Possible rejection. Referred to Bid Review
affiliate, related entity, principal, officer, or
Committee for review, consideration, and
director of such Proponent), who is in
determination. Factors to be considered will
unresolved Litigation with the Town or is the
include, but are not limited to: (a) the
subject of third party claims involving the
severity, materiality, and nexus between the
Town.
Litigation and the work for which the
Proposal is submitted; (b) where the Town
has been named as plaintiff or defendant
pursuant to a subrogated interest, an
appropriate arrangement has been made to
indemnify the Town; and (c) the
Proponent's performance under previous
Contracts with the Town, the Town's claims
history with the Proponent, and an
assessment of the overall risk and total cost
in entering into a Contract with the
Proponent.
22.
Proposal containing minor clerical errors.
If in the opinion of the Purchasing Manager
the errors are of a minor nature and are not
material to the Proposal, they can be waived
at the option of the Purchasing Manager.
Otherwise, the Proposal shall be rejected.
May be referred to the Bid Review
Committee for final determination.
23.
Proposal Deposit (if requested) contains
Automatic rejection unless insufficient
insufficient funds as called for in the Bid
amount is de minimis ($2.00 or less).
Document.
24.
Mathematical errors for total price which are
Bidders shall accept corrections to total price
not consistent with the unit price or
or tax calculation that is made by the
mathematical errors such as tax calculation
Purchasing Manager. Unit prices shall
errors.
always govern.
25.
Unit price in the "price schedule" which has
Proposal will be accepted unless, in the
been changed but not initialed and the unit
opinion of the Purchasing Manager, the
price extension/total price is consistent with
changes to the unit prices create ambiguity
the unit price as amended.
and uncertainty — in such case, the Proposal
shall be rejected. May be referred to the Bid
Review Committee for final determination.
26.
Other Proposal Irregularities.
Referred to the Bid Review Committee for
review, consideration, and determination.
The above list of Irregularities is not to be considered as all-inclusive. All Proposal
Irregularities (except late proposals that were automatically rejected) shall be
forwarded to the Bid Review Committee for review, consideration, and determination
in accordance with this by-law.
The application of this Schedule "C" - Proposal Irregularities shall not apply to non-
binding Procurement.
By-law Number 5500-13 Page 33
SCHEDULE"D"
BID THRESHOLDS
For the purpose of this by-law, the following are the required Procurement methods,
approval Authority, reporting requirements, and Contract requirements for the
specified amount thresholds.
DOLLAR
SOURCE OF
THRESHOLDS
METHOD OF
REPORT
APPROVA,U
CONTRACT
(EXCLUDING
PROCUREMENT
BIDS
TO
AWARD
TYPE
(ADVERTISING)
TAXES)
1. BIDS AND PROPOSALS
Purchases made from
the competitive -
Town staff as
Up to
Low Value Purchase
marketplace where
delegated by the
pase or
$5,000.00
(LVP).
possible and
Not applicable
applicable
Purchase Order
practicable.
Department
Advertising is not
Head
required.
(a) Advertising at the
discretion of the
Purchasing Manager,
Informal
in consultation with
Quick Bid Request for
the applicable
Quotation
Department Head;
(QB-RFQ)
(b) Solicitation to list
$5,000.01 to
-or-
of pre -qualified
Bidders;
Not applicable
Department
Head
purchase Order
$30,000.00
Informal
(c) Obtaining a
Quick Bid Request for
minimum of three (3)
Proposal
written quotes where
(QB-RFP)
possible; or
(d) Direct negotiation
with a. single source
or sole source Bidder.
Formal
Purchase Order
Request for Quotation
and Contract
$30,000.01 to
(RFQ)
Advertising is required
Department
(executed by the
$100,000.00
-or-
in such manner as
Not applicable
Head
applicable
Formal
directed by the
Department
Request for Proposal
Purchasing Manager
Head)
(RFP)
Formal
Council
Purchase Order
Request for Tender
Advertising is required
(from the
and Contract
Over
(RFT)
- or -
in such manner as
applicable
Council
(executed by the
Mayor and Town
$100,000.00
Formal
directed the
Department
Clerk as per
Request for Proposal
purchasing Manager
M
Head or
Council
(RFP)
designate)
direction)
2. EMERGENCY PURCHASES
Up to $50,000.00
Not applicable
Advertising not
Not applicable
Department
P-Card or
Emergency
required
Head
Purchase Order
$50,000.01 to
Not applicable
Advertising not
Not applicable
CAO
Emergency
$100,000.00
required
purchase Order
Council
as soon as
reasonably
possible by the
Emergency
CAO explaining
Purchase Order
Advertising not
actions taken
and Contract (if
Over $100,000.00
Not applicable
required
and reasons
CAO
emergency
therefore
situation permits;
(may be after the
executed by the
emergency is
CAD)
over and after
Purchase is
Awarded)
By-law Number 5500-13 Page 34
DOLLAR
SOURCE OF
THRESHOLDS
METHOD OF
BIDS
REPORT
APPROVAL/
CONTRACT
(EXCLUDING
PROCUREMENT
(ADVERTISING)
TO
AWARD
TYPE
TAXES
3. SOLE SOURCE, SINGLE
SOURCE, CO-OPERATIVE PURCHASING, & PIGGYBACK
Sole Source,
Up to $5,000.00
Single Source,
Co-operative
advertising not
required
Not applicable
Department
Head
P-Card or
Purchase Order
Purchasing, or
Piggyback
Sole Source,
$5 0
Single Source,
Co-operative
Advertising not
Not applicable
Department
Purchase Order
$50,0,000.0.00
Purchasing, or
required
Head
Piggyback
Sole Source,
CAD
(from the
Purchase Order
$50,000.01 to
Single Source,
Co-operative
Advertising not
applicable
CAD
and Contract
$100,000.00.
Purchasing, or
required
Department
(executed by the
Piggyback
Head or
CAD)
designate)
Council
Purchase Order
Sole Source,
(from the
and Contract
Over $100,000.00
Single Source,
Co-operative
Advertising not
applicable
Council
(executed by the
Mayor and Town
Purchasing, or
required
Department
Head or
Clerk as per
Piggyback
designate)
Council
direction)
4. DETERMINATION OF AVAILABILITY OF GOODS AND SERVICES
Request for
Advertising is required
Expressions of
in such manner as
Interest
directed by the
Not applicable
(RFFEI)
Purchasing Manager.
Not applicable
Not applicable
Not applicable
Request for
May be followed by
Information
another Procurement
(RFI)
method.
5. PRE -QUALIFICATION AND MULTI -STEP BIDS
May be used in
conjunction with
Request for Pre-
Advertising is required
As specified in
As specified in
As specified in
another
qualification
in such manner as
related
related
related
Procurement
- or -
directed by the
Procurement
Procurement
Procurement
method listed in
Schedule "D" — Bid
Multi -Step Bid Call
Purchasing Manager
method
method
method
Thresholds
Methods of Procurement listed in this Schedule are minimum methods only in
accordance with sections 11, 12, and 13 of this by-law. Formal Requests for Tender
(RFT) and Formal Requests for Proposal (RFP) may be used for any dollar
thresholds at the discretion of the applicable Department Head. Similarly, Council
approval to Award may also be sought at the discretion of the applicable Department
Head or the CAO.
All Contracts that are to be executed and required by this Schedule "D" — Bid
Thresholds shall be reviewed and approved as to form by Legal Services prior to
execution.
By-law Number 5500-13 Page 35