HomeMy Public PortalAboutProcurement Policy_P-04_Effective 2020-05-07Municipality of the District of Chester
Policy P-04
Amended -Effective Date: May 7, 2020
Procurement Policv P-04 (continued
Table of Contents
Paqe 12
1.0 Purpose and Objectives.........................................................................................................................................................3
2.0 Definitions...................................................................................................................................................................................3
3.0 Application.................................................................................................................................................................................. 5
4.0 Directives.....................................................................................................................................................................................5
5.0 Alternative Procurement Practices.................................................................................................................................... 7
6.0 Bid Opening, Evaluation, and Award................................................................................................................................7
7.0 Fair Treatment for Nova Scotia Suppliers....................................................................................................................... 8
8.0 Other Considerations.............................................................................................................................................................. 8
9.0 Obligations under the Public Procurement Act........................................................................................................... 9
10.0 Amendments........................................................................................................................................................................... 9
Appendix1.......................................................................................................................................................................................10
Appendix2.......................................................................................................................................................................................13
Appendix3.......................................................................................................................................................................................14
Notice of Intention to Amend -Council - Apri123, 2020 (2020-175)
15t Notice -Council - Apri130, 2020 (2020-185)
2�a Notice -Council - May 7, 2020 (2020-195)
Effective Date - May 7, 2020
Procurement Poli
P-04 (continued
Pae 3
The Municipality of the District of Chester (Municipality) is committed to acquiring goods and
services on a competitive basis to ensure that best value is received for our taxpayers and that
procurement opportunities are handled in a transparent, accessible and equitable manner.
The Municipality is committed to:
• Providing for the procurement of goods, services, construction and facilities in a fair, open,
consistent, and transparent manner resulting in best value;
• Encouraging competition, innovative ideas and solutions, while respecting all Legislative
and Trade Agreement obligations;
• Promoting sustainable procurement in procurement decisions, including identifying and
exploring opportunities to work with and support social enterprises and businesses that
are owned by and who employ under -represented populations;
• Ensuring that qualified suppliers have equal opportunity to bid on the Municipality's
procurement activity;
• Being accountable for procurement decisions.
2.0 Definitions
For the purposes of this policy, the following definitions are provided:
Atlantic Standard Terms &Conditions
Standard instructions that support public tenders issued by the four Atlantic provinces for
goods and services. Supplements may be added if and when required.
Best I/on
lue
Evaluating bids not only on purchase price and life cycle cost considerations, but also
taking into account items such as environmental and social considerations, delivery,
servicing, and the capacity of the supplier to meet other criteria as stated in the tender
documents.
Bid
A supplier response to a public tender notice to
facilities.
Construction
provides goods, services, construction or
Notice of Intention to Amend -Council -April 23, 2020 (2020-175)
1St Notice -Council -April 30, 2020 (2020-185)
2114 Notice -Council - May 7, 2020 (2020-195)
Effective Date - May 7, 2020
Procurement Folic
P-04 (continued
The construction, reconstruction, demolition, repair, or renovation of a building, structure,
road or other engineering or architectural work, excluding the professional consulting
services related to the construction contract unless they are included in the procurement.
Construction Contract Guidelines
Standard instructions developed in consultation with the Construction Association of
Nova
Scotia that support construction tenders.
Goods
Materials, furniture, merchandise, equipment, stationery, and other supplies required by
the Municipality for the transaction of its business and affairs and includes services that
are incidental to the provision of such supplies.
Facilities (also referred to as Building L eases
All building lease requirements covering the conveyance of the right to use tangible
building property for a specified period of time in return for rent.
Procurem en t A d visory Group
The advisory group established by the Public Procurement Act to provide advice and
recommendations to advance the outcomes of the Act.
Procurement Activity
The acquisition of all goods, services, construction, or facilities procured by purchase,
contract, lease, or long-term rental.
Procurement value
The value of the total contract excluding taxes but including all options whether exercised
or not. For Facilities this value is determined by the monthly lease/rent times the term of
the contract.
Procurement Vve,6 Portal
The public website maintained by the Province where all public tender notices are posted.
Public A d vertisem en t
Advertising a public tender notice on the procurement web portal.
Public Procuremen t A ct (PPA
An Act outlining the rules related to the procurement activity of all public sector entities
in the Province of Nova Scotia.
Public Tender
Procurement for goods, services, construction, or facilities obtained through public
advertisement.
Notice of Intention to Amend -Council -April 23, 2020 (2020-175)
1St Notice -Council -April 30, 2020 (2020-185)
2nd Notice - Council - May 7, 2020 (2020-195)
Effective Date - May 7, 2020
Procurement Policv P-04 (continued
Pae 5
Public Tender lvouce
Notice of intended procurement for goods, services, construction, or facilities obtained
through public advertisement.
Services
Services required by the Municipality for the transaction of its business and affairs,
excluding services provided by an employee through a personal services contract.
Standing Offer
A standing offer is a contractual arrangement with a supplier to provide certain goods or
services on an 'as required' basis, during a particular period of time, at a predetermined
price or discount, generally within a predefined dollar limit.
Sustainable Procurement
Sustainable Procurement involves taking a holistic approach to obtain best value. This will
be done by integrating the following considerations in the procurement process:
• Environmental considerations: e.g. Green House Gas Reduction, Waste Reduction,
Toxic Use Reduction
• Economic considerations: e.g. Life Cycle Cost, Fiscal Responsibility, Support for the
Local Economy
• Social considerations: e.g. Employee Health and Safety, Inclusiveness and Fair
Wage, Health Promotion.
3.0 Application
This policy applies to all procurement activity of the Municipality effective June 1, 2012.
The Chief Administrative Officer of the Municipality is responsible for ensuring compliance with
tH1s policy.
All Municipal personnel who have
construction, or facilities must adhere
responsi bi I ity for the procurement of goods, services,
to this policy. Failure to adhere may result in a temporary
or permanent loss of procurement privileges or in
and/or dismissal.
4.0 Directives
4. � value
more extreme cases result in disciplinary action
Low Procurement
• Goods up to and including $ 25,000
• Services up to and including $ 50,000
• Facilities up to and including $ 50,000
Notice of Intention to Amend -Council -April 23, 2020 (2020-175)
1St Notice -Council -April 30, 2020 (2020-185)
2nd Notice - Council - May 71 2020 (2020-195)
Effective Date - May 7, 2020
Procurement Policv P-04 (continued
• Construction up to and including $ 100,000
Paae 16
For all low value procurement activity with d procurement vdlue ds outlined above (excluding
taxes), Municipal personnel are expected to, as far as practicable, attempt to obtain at least three
quotes and recommend award to the supplier offering best value. The only exception to this would
be when the Municipal personnel are using Alternative Procurement Practices as outlined in
section 5.0 of this Policy or are accessing a publicly tendered standing offer. Where increased
competition is appropriate, Municipal personnel may choose to publicly tender for goods,
services, construction or facilities that fall within the above thresholds.
When selecting the list of suppliers to be provided the opportunity to quote, Municipal personnel
will make every effort to ensure a fair and open process is followed. While Municipal personnel
are expected to invite only qualified suppliers, they are not to consistently invite bids from only
one or a select group of suppliers. Invitations and bidding opportunities are to be equitably
distributed among all potential bidders in an area, and all interested and qualified suppliers are
to be evaluated on a consistent and equitable basis. The evaluation criteria will be determined
prior to soliciting quotations and will include various elements to allow for the determination of
best value. For low value procurement activity, the evaluation criteria may also include a
preferential component for local suppliers.
For all low value procurement, the Chief Administrative Officer is authorized to award to the
supplier offering best value for all contracts under the amounts listed above in value, in any one
case, provided that the expenditure is included in the approved budget allocation. An information
report will be provided to Council for all expenditures that fall between $10,000 and the amounts
noted above. Approval of the Council of the Municipality will be required for all purchases of
goods, services and construction that exceed the above noted values or which are not included in
the approved budget allocation.
4.2 High l/alue Procuremer�t.
• Goods over $ 25,000
• Services over $ 50,000
• Facilities over $50,000
• Construction over $ 100,000
All procurement activity with a procurement value over the thresholds (excluding taxes) outlined
above must be obtained through a public tender. See appendix 2 of this Policy for an outline of
the various tools that can be used for public tender. The only exception to this would be when
Municipal personnel are using an Alternative Procurement Practices as outlined in section 5.0 of
this policy, or is accessing a publicly tendered standing offer. All public tender opportunities must
be posted on the Province of Nova Scotia Procurement Web Portal. Municipal personnel may,
where appropriate, also advertise in local, provincial, or national media; however, there is no
obligation to do so. In addition, a notice of tender opportunity may be sent to selected suppliers
where required to ensure an adequate degree of competition.
Notice of Intention to Amend -Council -April 23, 2020 (2020-175)
1St Notice -Council -April 30, 2020 (2020-185)
2nd Notice - Council - May 7, 2020 (2020-195)
Effective Date - May 7, 2020
Procurement Policy P -o4 (continued
4.3 Schedule for Routing Procurement
Page 17
Ongoing service -related contracts with the Municipality will be routinely tendered in accordance
with this Policy as outlined in Appendix 3.
5.0 Alternative Procurement Practices
In order to balance the need for open, competitive process with the demands of urgent or
specialized circumstances, Alternative Procurement Circumstances have been developed. These
circumstances must be used only for the purposes intended and not to avoid competition or used
to discriminate against specific suppliers. To ensure appropriate use, each circumstance must be
documented by Municipal personnel stating the rationale permitting the Alternative Procurement
Circumstance and signed by the Chief Administrative Officer. All documents must be filed and
maintained for audit purposes. See Appendix 1 for a list of the Alternative Procurement
circumstances, as well as further requirements on documentation.
6. � Bid Opening
Bids are accepted in accordance with the closing time, date, and place stipulated in the bid request
documents. Members of the public may receive the list of bidders electronically after bid opening.
6.2 Bid Evaluation
All bids are subject to evaluation after opening and before award of contract. The bid request
documents must clearly identify the requirements of the procurement, the evaluation method,
evaluation criteria based on the purpose and objectives of this policy, and the weights assigned
to each criterion.
6.3 A ward
The winning bidder and contract award amount for all high value procurement activity must be
posted on the Province of Nova Scotia's Procurement Web Portal. After contracts have been
awarded, routine access to information at the vendors request shall be provided in the following
areas:
Bidders list
Name of winning bidder
• Award price excluding taxes of the winning bidder
If the tender is not awarded for any permissible reason, all bidders will be informed of the decision.
Should the project be re -tendered at a future date, all bidders will be contacted to re -submit a
bid at their discretion.
Notice of Intention to Amend -Council -April 23, 2020 (2020-175)
1St Notice -Council -April 30, 2020 (2020-185)
2nd Notice -Council - May 7, 2020 (2020-195)
Effective Date - May 7, 2020
Procurement Poli
P-04 (continued
Access to tender documents or other proprietary information is subject to the provisions 01 the
Freedom of Information and Protection of Privacy Act.
6.4 Supplier DC7 "C7finq
At the request CA supplier who submitted a bid, Municipal personnel will conduct a supplier
debriefing session to provide feedback on the evaluation of the public tender. Suppliers can find
out how their proposal scored against published criteria, obtain comments on their bid, and
gather information on how future bids may be id
mprove.
other bids, nor will information on other bids be provided.
Supplier's bids are not compared to
6.5 Supplier Complaint Process (SCP)
When a supplier is not satisfied with the information provided in a supplier debriefing, the supplier
may file a complaint in accordance with the Supplier Complaint Process as defined in the Public
Procurement Act. The SCP is not a dispute resolution process, but rather is intended to handle
supplier complaints and to improve faulty or misleading procurement processes. The SCP is an
integral part of a fair and open procurement policy.
7.0 Fair Treatment for Nova Scotia Suppliers
The preference is to give preference to local (our Municipality) unless otherwise directed by
council for Low Value Procurement. Preference will be given by applying a 5% bonus to bidders
located within the Municipality.
p
8.0 Other Considerations
8. � Coopera tive Procuremen t
This preference will be clearly communicated as part of each
rocurement procedure.
Municipal personnel are encouraged to look for opportunities to collaborate with government
agencies when the arrangement may result in overall cost savings or other substantial advantages.
For example, joint procurement may be appropriate to procure commonly used goods, services,
fuel oil, natural gas, telecommunications, etc.
8.2 Standing Offers
Municipal personnel may access all Province of Nova Scotia standing offers, as well as any
standing offer established through the Procurement Advisory Group for the Province should
Municipal personnel wish to make use of the savings opportunities. Standing offers can be used
up to $25,000 per project for goods, or $100,000 per project for services. For consulting services,
Municipal personnel should prepare a Statement of Work and obtain 3 quotes from vendors on
the standing offer.
Notice of Intention to Amend -Council -April 23, 2020 (2020-175)
1St Notice -Council -April 30, 2020 (2020-185)
2110 Notice - Council - May 7, 2020 (2020-195)
Effective Date - May 7, 2020
Procurement Policv P-04 (continued
11
'A!AUJM = I MISSION
Page 19
In addition to the areas already covered by this Policy, the following are additional obligations of
the Public Procurement Act that the Municipal personnel are required to adhere to with their
Procurement practices.
9.7 Terms and Conditions
Every public tender notice must include or have attached the terms and conditions that govern
the purchase of goods, services, construction, or facilities. The terms and conditions of every public
tender notice must be consistent with the Atlantic Standard Terms and Conditions for the
procurement of goods, services, or facilities and the Construction Contract Guidelines developed
in collaboration with the Construction Association of Nova Scotia for the procurement of
construction.
9.2 Posting Tender Notices and A wards
All opportunities subject to a public tender must be advertised on the Province of Nova Scotia
Procurement Web Portal. The Municipality must also post on the Procurement Web Portal the
name of the successful bidder for the public tender and the contract amount awarded.
9.3 Code of Ethics
Municipal and board members must ensure their conduct in relation to procurement activity is
consistent with the "Duties of public sector entity employees" in the Public Procurement Act. This
includes a request for removal from a procurement activity when a personal conflict of interest is
perceived.
9.4 Other
Policy Posting
The Municipal Clerk personnel will ensure this policy is posted on the Mupality web
site.
Supplier De velopmen t A cti vi ties
Municipal will make every attempt where appropriate to participate in vendor outreach
activities as requested by the Procurement Governance Secretariat
Regula tions
Municipal will make sure that procurement practices remain consistent with any
regulations that are adopted under the Public Procurement Act.
This policy may be amended from time to time with the approval of the Municipal Council. Such
amendments will be communicated to the public on the Municipal website.
Notice of Intention to Amend -Council -April 23, 2020 (2020-175)
1St Notice -Council -April 30, 2020 (2020-185)
2nd Notice - Council - May 7, 2020 (2020-195)
Effective Date - May 7, 2020
Procurement Policv P-04 (continued
Appendix 1
Alternative ProcurementApproval, Consultation, and Reporting Process
Low va I u e:
Paqe 110
Municipal personnel wishing to make use of a low value alternative procurement practice
(with the exception of an emergency) must consult with the Chief Administrative Officer
to obtain approval and identify the most appropriate means by which to proceed with the
satisfaction of the requirement. If in agreement, the Chief Administrative Officer may direct
Municipal personnel to proceed with the procurement. The Chief Administrative Officer
may wish to confer with provincial government procurement officials for discussion,
validation, and or alternative options.
High value:
Municipal personnel wishing to make use of a high value alternative procurement practice
(with the exception of an emergency) must consult with the Municipal Council to obtain
approval and identify the most appropriate means by which to proceed with the
satisfaction of the requirement. If in agreement, the Municipal Council may direct
Municipal to proceed with the procurement. The Chief Administrative Officer may wish to
confer with provincial government procurement officials for discussion, validation, and or
alternative options.
Alternative Procurement Circumstances
A. No Threshold Restrictions
Municipal personnel may use the following Alternative Procurement practices as
described below for the procurement of goods, services, construction or facilities, with
no threshold restrictions:
1. Where an unforeseeable situation of urgency exists and the goods, services, or
construction cannot be obtained in time by means of open procurement
procedures. Entities must ensure inadequate planning does not lead to
inappropriate use of this exemption.
2. Where goods or consulting services regarding matters of a confidential or
privileged nature are to be purchased and the disclosure of those matters through
an open tendering process could reasonably be expected to compromise
government confidentiality, cause economic disruption, or otherwise be contrary
to the public interest.
Notice of Intention to Amend -Council -April 23, 2020 (2020-175)
1St Notice -Council -April 30, 2020 (2020-185)
211 Notice -Council - May 7, 2020 (2020-195)
Effective Date - May 7, 2020
Procurement Policv P-04 (continued
Paae 111
3. Where compliance with the open tendering provisions set out in this Chapter
would interfere with a Party's ability to maintain security or order, or to protect
human, animal, or plant life or health.
4. In the absence of tenders in response to an open or selective tender, or when the
tenders submitted have been collusive, or not in conformity with the essential
requirements in the tender.
5. To ensure compatibility with existing products, to recognize exclusive rights, such
as exclusive licenses, copyright, and patent rights, or to maintain specialized
products that must be maintained by the manufacturer or its representative.
6. Where there is an absence of competition for technical reasons and the goods or
services can be supplied only by a particular supplier and no alternative or
substitute exists.
7. For the procurement of goods or services the supply of which is controlled by a
supplier that is a statutory monopoly.
8. For the purchase of goods on a commodity market.
9. For work to be performed on or about a leased building or portions thereof that
may be performed only by the lessor.
10. For work to be performed on property by a contractor according to provisions of
a warranty or guarantee held in respect of the property or the original work.
11. For the procurement of a prototype or a first good or service to be developed in
the course of and for a particular contract for research, experiment, study or
original development, but not for any subsequent purchases.
12. For the purchase of goods under exceptionally advantageous circumstances such
as bankruptcy or receivership, but not for routine purchases.
13. For the procurement of original works of art.
14. For the procurement of
periodicals.
subscriptions to newspapers, magazines, or other
15. For the procurement of real property.
16. For the procurement of goods intended for resale to the public.
Notice of Intention to Amend -Council -April 23, 2020 (2020-175)
1St Notice -Council -April 30, 2020 (2020-185)
2nd Notice - Council - May 7, 2020 (2020-195)
Effective Date - May 7, 2020
Procurement Policv P-04 (continued
Page 112
17. For the procurement from philanthropic institutions, prison labour, persons with
disabilities,
programs.
sheltered workshop programs, or through employment equity
18. For the procurement from a public body or a non-profit organization.
19. For the procurement of services of expert witnesses, specifically in anticipation of
litigation or for the purpose of conducting litigation
Notice of Intention to Amend -Council -April 23, 2020 (2020-175)
1St Notice -Council -April 30, 2020 (2020-185)
2nd Notice -Council - May 7, 2020 (2020-195)
Effective Date - May 7, 2020
Procurement Policv P-04 (continued
Below is an outline of the tools to be used when issuing a public tender:
Request for Proposal (RFi�
Pape � 13
Used when a supplier is invited to propose a solution to a problem, requirement, or
objective. Suppliers are requested to submit detailed proposals (bids) in accordance with
predefined evaluation criteria. The selection of the successful proposal is based on the
effectiveness, value, and price of the proposed solution. Negotiations with suppliers may
be required to finalize any aspect of the requirement.
Request for Construction (RFC)
Used to publicly tender for acons
truction, reconstruction, demolition, remediation, repair,
or renovation of a building, structure, road, bridge, or other engineering or architectural
work. When a supplier is invited to bid on a construction project the tender documents
usually contain a set of terms and conditions and separate bid form that apply to that
specific project. Suppliers are requested to submit a response (bid) in accordance with
predefined criteria. The selection of the successful proposal is based on a number of
factors as described in the tender documents. A request for construction usually does not
include professional consulting services related to the construction contract, unless they
are included in the specifications.
Request for Quotation (RFQ)
A request for quotation on goods or products with a minimum specification. Award is
usually made based on the lowest price meeting the specification. An RFQ does not
normally but may sometimes include evaluation criteria.
Request for Standing Offer (RSO)
A public tender to provide commonly used goods or services. The term of the standing
U1 can vary in duration but will be clearly defined in the tender documents. RSO's may
include evaluation criteria depending on the requirement.
Request for Expression of In terest (REl)
The Request for the Expression of Interest is similar to the Request for Proposal and is
sometimes referred to as aPre-Qualification, where suppliers are invited to propose a
solution to a problem. The REI, however, is only the first stage in the procurement process.
Bidders responding to the REI will be short listed according to their scoring in the
evaluation process. The short-listed firms will then be invited to respond to a subsequent
Request for Proposal. A REI does not normally include pricing as price as a key evaluation
criteria used in the second stage RFP process.
Notice of Intention to Amend -Council -April 23, 2020 (2020-175)
1St Notice -Council -April 30, 2020 (2020-185)
2nd Notice - Council - May 7, 2020 (2020-195)
Effective Date - May 7, 2020
Procurement Policy P-04 (continued
Schedule of Routine Procurement Activities
E
Animal Control
Heavy Equipment Services
Sewer Repa i r
Sludge Removal and Disposal Services
Waste Collection
Wood Grinding/Chipping
Eve rev
Derelict vehicle Collection
Engineering Services
Flagging
HHW Services
Printing Services -commencing April 1, 2013
Snow Re m ova I
Vehicle Repair
Banking Services
Surveying Services
Every 2 years
Paper Shredding
Salting
Annually
Courier Services
Heating and Air Conditioning
Trail Work
At the Discretion of Council
Auditing Services
Legal Services
Notice of Intention to Amend -Council -April 23, 2020 (2020-175)
2020 (2020-185)
1St Notice -Council -April 30,
2nd Notice -Council - May 7,
Effective Date - May 7, 2020
2020 (2020-195)
Page � 14
Procurement Pohcv P -o4 (continued
Paqe 115
P le
Official
Annotation
Notice of Intention to
Adopt/Amend
Council — April
23, 2020
2020-175
Date of First Notice at
Council
Cou nci I — April
301 2020
Date of Second Notice at Council
Council — May
7, 2020
2020-195
Effective Date
May 7, 2020
I certify that this Policy
was amended by
Council as indicated
above.
n !•1^'
r .
OP
May 11, 2020
-M
Pamela . Myra, unicipal Clerk
Date
r
il
h tid t J
Notice of Intention to Amend -Council -April 23, 2020 (2020-175)
1St Notice -Council -April 30, 2020 (2020-185)
2nd Notice - Council - May 7, 2020 (2020-195)
Effective Date - May 7, 2020
Procurement Policv P-04 (continued) Page 116
ADOPTION/AMENDMENT INFORMATION
Notice of Intention to Amend -Council -April 23, 2020 (2020-175)
1St Notice -Council -April 30, 2020 (2020-185)
2id Notice -Council - May 7, 2020 (2020-195)
Effective Date - May 7, 2020
Date
Reason for Adoption/Amendment
2014
To
include consideration for local preference and low threshold
value and
Amendment
inclusion
of 20% value for local (Municipal submissions)
2015
To
change the low threshold value from 20% to 5% for local preference.
Amendment
2016
Amendments
to Appendix 3 — change in length of terms for
Engineering
Amendment
Services,
Auditing Services, and Legal Services
2018
Amendment
to Appendix 3 — add Sludge Removal and Disposal Services
to
Amendment
be
renewed every three (3) years.
2019
Amendment
to Appendix 3 to:
Amendment
Remove "Sludge Removal and Disposal Services"
from under
heading "Every 3 years"
®
Add "Sludge Removal and Disposal Services" from under
heading
"Every 5 years".
2020
Amendment
to Appendix 3 to:
Amendment
Remove "Heavy Equipment Services" from under heading
"Annually"
®
Add "Heavy Equipment Services" under heading "Every
5 years".
Notice of Intention to Amend -Council -April 23, 2020 (2020-175)
1St Notice -Council -April 30, 2020 (2020-185)
2id Notice -Council - May 7, 2020 (2020-195)
Effective Date - May 7, 2020