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POLICY Effective Date: August 27, 2012
Amended: January 22, 2018
April 25, 2022
Section: Finance
Title: Purchasing and Sales Policy
POLICY STATEMENT
Amended A pril 25, 2022
This document defines the general purchasing and tendering policies for the Town
of Oliver in compliance with MUSH (municipalities, universities, schools and
hospitals) sector thresholds, the Community Charter, Local Government Act and
other relevant legislation. City staff involved in the procurement of goods and/or
services on behalf of the City must comply with the guidelines set out in this policy.
1.0 PURPOSE
The purpose of this policy is to identify the principles guiding the procurement of goods,
services and construction of assets required by the Town of Oliver (Town) in the performance
of the duties and responsibilities assigned to it. In achieving the maximum economy,
efficiency and effectiveness in the performance of this function, the Town has endorsed
certain fundamental principles which are applicable to all Departments.
2.0 PURCHASING PRINCIPLES
2.1 Procure the necessary quality and quantity of goods and services in an
efficient, timely, cost-effective manner, while maintaining the controls
necessary for a public institution.
2.2 Encourage an open and transparent process for the acquisition and disposal of
goods and services.
2.3 Ensure the maximum value is obtained regarding acquisition of products and
services by determining the full cost over the lifetime of the product or service.
2.4 Procure goods and services giving due consideration to the Town’s
commitment to encourage the use of environmentally friendly products and
services as well as local suppliers.
2.5 Ensure that the guidelines set out in the Code of Conduct as identified in this
policy are adhered to.
2.6 Ensure the maximum value is gained when disposing of surplus goods and that
they are sold in a transparent and publicly acceptable manner.
2.7 Ensure compliance with Town policies and bylaws, the Community Charter and
all other Provincial and National laws and regulations that apply to the
procurement of goods, services and construction.
2.8 Ensure that purchasing policies and practices support the direction of the
Town and are in compliance with policy established by Council.
Purchasing and Sales Policy
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3.0 RESPONSIBILITIES
3.1 Town Council shall approve any amendments to this policy.
Amended A pril 25, 2022
3.2 The CAO will support the implementation of this policy and recommend any
amendments. The CAO will ensure compliance with this policy.
3.3 The Department of Finance will administer the Purchasing and Sales Policy to
ensure that goods and services are acquired and disposed of in accordance with
this policy.
3.4 The Town operates on a decentralized purchasing model. It is the responsibility
of department managers to ensure their department’s purchasing practices are
in conformance with the Town’s purchasing policy and procedures. All invoices
and purchase orders must be approved by department managers or, within
established spending limits, by their designate. The Chief Financial Officer must
be advised, in writing, of the departmental designate along with a sample
signature.
3.5 Department Managers are responsible for ensuring budgeted funds are available
in duly authorized accounts before making commitments for goods and services.
4.0 PROHIBITIONS
4.1 Include:
4.1.1 Purchase by the Town of goods and services for personal use by or on
behalf of any member of the Town Council, appointed officers, employees
or their immediate families.
4.1.2 Purchase by the Town of goods and services from any member of its
Council, appointed officers, employees or their immediate families or from
any other source that would result in a conflict of interest unless the
purchase is disclosed and participation discontinued in accordance with
the Community Charter.
Amended January 22, 2018
4.1.3 The purchase of any Town goods by a member of its Council, appointed
officers, employees or their immediate families, unless it is goods the Town
is selling for profit or is available to the general public.
4.2 Exclude:
4.2.1 Purchases through the Employee/Council Electronic Device Purchase
Program.
5.0 CODE OF CONDUCT
5.1 Those employees who have been delegated authority to commit Town funds and
those employees responsible for corporate assets will abide by the Code of
Conduct as it applies to their duties performed for the Town.
5.2 Employees of the Town will not use their authority or office for personal gain and
will seek to uphold and enhance the standing and image of the Town.
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Purchasing and Sales Policy
6.0 INSURANCE
6.1 To assist in protecting the Town against losses, all contractors providing
services to the Town are required to obtain and maintain insurance for a
specified amount and duration indicated during the procurement process.
Insurance must be obtained from an insurance company duly registered,
licensed and approved to conduct insurance business in the Province of British
Columbia and be no lower than $2,000,000 (two million dollars). Contractors
must also indicate whether they carry Worker’s Compensation Board coverage.
7.0 WORKER'S COMPENSATION
7.1 Contractors shall be deemed to be the Principal Contractors within the meaning
of the Worker's Compensation Council ("WCB") Industrial Health and Safety
Regulations for the Province of British Columbia and must comply with WCB
Health & Safety Regulations and all other WCB regulations that apply to the works.
8.0 RIGHT TO REJECT BID DUE TO LITIGATION OR NON-COMPLIANCE WITH ZONING
BYLAWS
8.1 Without limiting the foregoing, the Town may, in its absolute discretion, reject
any tender or proposal submitted by a proponent if:
8.1.1 the Tenderer or any officer or director of the Tenderer is or has been
engaged either directly or indirectly through another corporation in a
legal action against the Town or its elected or appointed officers or
employees in relation to:
(i) any other contract for works or services; or
(ii) any matter arising from the Town’s exercise of its powers, duties or
functions under the Community Charter or another enactment, within
five years of the date of the invitation to tender; or
8.1.2 the use of any real property owned or occupied by the Tenderer, located
in the Town of Oliver and used by the Tenderer in connection with the
performance of the Contract, including use as an office, as storage or as a
works yard, is not a permitted use of that property as established by the
Town’s Zoning Bylaw or any covenant in favour of the Town, unless such
use constitutes a legal non-conforming use.
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9.0 PURCHASING AUTHORITY AND APPROVAL LIMITS
9.1 Only those persons delegated authority are authorized to commit the Town for
materials, equipment, supplies and services as authorized by the annual budget.
Amended April 25, 2022
9.2 The CAO, Departmental Managers and/or their delegate are given authority to
execute purchase orders for materials, equipment, supplies and services in
accordance with the following criteria:
9.2.1 Items and/or services are included in the annual budget. Items and/or
services that are supplemental to the budget but do not create a budget
deficit for the department. Any transfer of funds between accounts within
a specific function must be approved as a budget amendment by Council
in the form of a resolution.
9.2.2 Accepted supplier is the lowest qualified bidder meeting requirements
and/or specifications, or in the case of an RFP, the recommended proposal
receives the highest criteria score, as set out in Schedule A of this policy.
9.3 Council approval is required for all purchases which exceed the budgeted amount
of the department. Council approval is also required for those tenders where the
accepted supplier is not the lowest qualified bidder meeting specifications or
requirements.
9.4 Authority Limits for Town Staff:
Amended April 25, 2022
Purchases Authority
Council (Formal Resolution) over $100,000
Chief Administrative Officer or designate
(countersignature of CFO & Department Head
up to $100,000
Chief Financial Officer (“CFO”)
(countersignature of Department Head required) up to $75,000
Managers/Department Head
designate (countersignature of
up to $75,000
Other staff (with approval of the supervisor) up to $5,000
9.5 Purchases Exempt From Purchase Orders
9.5.1 Costs related to court actions or damage claims
9.5.2 Subscriptions, publications, dues and fees
9.5.3 Utility accounts
9.5.4 Insurance premiums
9.5.5 Salaries, wages and benefits
9.5.6 Grant in aid payments
9.5.7 Clerical purchases under $100, Manager’s approval on invoice is sufficient
(public works department must always use purchase orders)
9.5.8 Travel expenses, which require submission of expense form
9.5.9 Requests for additions to the list of exempt purchases must be
forwarded to the Chief Financial Officer for approval
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Purchasing and Sales Policy
10.0 PURCHASING PROTOCOL – Quotes, Tenders, RFPs, and Change Orders
Amended A pril 25, 2022
10.1 Where goods and services to be purchased are contained in a current budget
approved by Council, the general practice to be followed shall be:
Estimated Purchase Value Actions Required
Below $10,000
May be done without quotations. Every effort should
be made to obtain the best value for the goods and
services.
From $10,000 to $30,000 Requires informal written quotations preferably
solicited from at least three suppliers / sources
From $30,000 to $75,000 Requires solicitation of formal written quotations from
a minimum of three suppliers
Over $75,000 Requires formal procurement process to be
undertaken (i.e. Request for Proposals or Invitation to
Amended A pril 25, 2022
10.1.1 Expenditures below $10,000 may be done without quotations. Every effort
should be made to obtain the best value for goods and services. :
Amended A pril 25, 2022
10.1.2 Expenditures from $10,000 to $$30,000:
(i) Attempt to obtain at least three (3) written offers from suppliers;
and
(ii) Department Managers shall issue a purchase order to the successful
supplier and, if applicable, require the supplier to enter into a written
agreement with the Town.
Amended A pril 25, 2022
10.1.3 Expenditures over $30,000 but not exceeding $75,000:
(i) Best effort to obtain at least three (3) written offers from suppliers which
must be documented; and
(ii) In the event that fewer than three (3) suppliers respond by deadline, that
the Department Manager has the authority to proceed with award of
contract; and
(iii) The applicable Department Manager shall make a recommendation for
the CAO’s approval; and
(iv) If approved by the CAO, the Department Manager shall issue a
purchase order to the successful supplier and, if applicable, require the
supplier to enter into a written agreement with the Town.
Amended A pril 25, 2022
10.1.4 Expenditures over $75,000:
(i) Invite and accept only sealed tenders or RFPs from potential
suppliers and:
Publicly receive and open all tenders and initial the tenders
when they are opened; or,
Initial the RFPs upon opening (Proposals are not subject to
public openings);
(ii) The Department Manager shall make a recommendation for the
CAO consideration, who in turn will forward the recommendation to
Council for consideration and approval; and,
(iii) If approved by Council, the Department Manager shall issue a purchase
order to the successful supplier and, if applicable, require the supplier
to enter into a written agreement with the Town.
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10.2 A written agreement between a supplier and the Town is required under this
section in the following circumstances:
10.2.1 if requested by the supplier;
10.2.2 for contracts that exceed a value of $50,000
10.2.3 if a RFP and subsequent successful proposal do not contain sufficient
elements, such as specifications, conditions, warranties, or indemnities, to
constitute a satisfactory contract for either party;
10.2.4 if there is already a contract between the Town and the supplier, but
there are changes to that contract for the particular expenditure.
11.0 PURCHASING PROTOCOL – HIRING PROFESSIONALS
11.1 This section shall apply when purchasing professional or technical consulting
services related to the following general types of disciplines:
11.1.1 Engineering and land use planning services
11.1.2 Architectural services
11.1.3 Law and Negotiating services
11.1.4 Computer services
11.1.5 Financial services
11.1.6 Management services
11.2 For the services noted in Subsection 11.1 of this policy, the primary consideration
shall be technical proficiency of the firm or individual providing the service.
Close consideration shall be given to the supplier’s record of service with the
Town and with other municipalities.
11.3 The following protocol will govern the hiring of professional consultants for
Non-Recurring projects or specialized work (e.g. building design, canal
rehabilitation, contaminated site clean-up, etc.):
Amended A pril 25, 2022
11.3.1 Competent consultants will be invited to submit proposals to the Town.
These submissions shall follow section 13.0 of this Purchasing and Sales
Policy. The CAO shall determine whether these invitations are sent only to
selected firms or are advertised to the general public. This decision shall be
based on the degree of expertise required for the particular project.
11.3.2 Selection of successful proponents shall be based on a wide range of
factors including relevant experience, completeness of the proposal,
proven reliability of the proponent, projected completion dates as well as
overall price. The primary selection tool will not be price; it will be value.
11.4 The following protocol will govern the hiring of professional consultants for
ongoing professional services where continuity of knowledge is deemed
imperative:
Amended April 25, 2022
11.4.1 Competent consultants will be invited to submit proposals to the Town.
These submissions shall follow section 13.0 of this Purchasing and Sales
Policy. The CAO shall determine whether these invitations are sent only to
selected firms or are advertised to the general public. This decision shall be
based on the degree of expertise required for the particular project.
11.4.2 Selection of successful proponents shall be based on a wide range of
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factors including relevant experience, completeness of the proposal,
proven reliability of the proponent, projected completion dates, overall
price as well as ongoing availability for service. The primary selection tool
will not be price; it will be value.
Amended A pril 25, 2022
11.4.3 Changes which require a new consultant to re-learn the operation of
utility systems or the legal history of the Town will be avoided where
possible. In effect, the Town’s relationship with some professional
consultants providing ongoing services shall parallel the relationships
established with staff professionals in larger municipal corporations. The
role of these consulting professionals will be similar to the roles
set out for city engineers, city solicitors, etc. in larger municipalities. Every
five years Department Manager’s should compare Town consultant rates
with rates charged to similar size municipalities, for like services, to
ensure rates charged to the Town are competitive.
Amended A pril 25, 2022
11.4.4 Department Manager’s should annually review the overall quality of
services being provided to ensure a level of competitiveness still exists and
in rare occasions, if necessary, with the approval of the CAO, re-tender the
services.
12.0 GENERAL TENDERING GUIDELINES
12.1 Department Managers are responsible for the preparation of the tender
instructions, conditions, specifications, and pricing formula.
12.2 Notwithstanding 12.1, Department Managers may delegate preparation of
tender packages to consultants subject to budget availability.
12.3 Procedures for receiving and opening tenders shall conform to the following:
12.3.1 Tenders enclosed in sealed envelopes will be received at the tender
address until tender closing time;
12.3.2 All tenders will be recorded as to the date and time received at the
front counter who will file the tender in the vault until tenders are
opened;
12.3.3 Two staff members should proceed with the tender opening at
precisely the designated time on the closing day;
12.3.4 Tender envelopes should be opened and each tender shall be checked to
ensure that it is signed and valid.
12.3.5 Individual tenders should be read to the interested public. No special
order exists in which to read tenders.
12.3.6 Where only one tender is received, the Town reserves the right to not
make the amount of the tender public at the tender opening. The
amount of the tender will be made public if a contract is awarded.
13.0 GENERAL RFP GUIDELINES
13.1 The applicable department is responsible to prepare the necessary RFP
documents. If Department Managers deem it appropriate, RFP processes can be
preceded by a Request for Expression of Interest (RFEI) to gauge interest and
prequalification, whereupon only a limited number of proponents are invited to
submit proposals.
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13.2 The RFP should define the nature of the goods and/or services to be
provided, how they are expected to be used and/or problems they are
expected to address.
13.3 If mandatory requirements are necessary, they should be kept to a minimum and
must be carefully worded so as not to eliminate a vendor with an otherwise good
proposal.
13.4 RFP’s must be prepared in a manner that avoids creation of a “Contract A” that
would restrict the Town in making its selection of a successful proponent. Such a
structure will typically result in the proponent retaining the right to withdraw their
proposal without penalty.
13.5 The criteria to be used in the evaluation of proposals are outlined in Schedule A
attached to this policy.
13.6 Potential proponents should be allowed sufficient time to prepare a good
response.
13.7 The applicable department should receive all proposals for evaluation.
Proposals should be treated as confidential documents.
13.8 Requests for Proposals (RFP;s) shall be reviewed by an Evaluation Team which
shall consist of at least two staff members.
13.9 Each Evaluation Team member shall complete the RFP Evaluation Form for each
proposal as outlined in the attached Schedule A.
13.10 Upon completion of Step 2 of Schedule A, the Evaluation Team shall
determine, by consensus, the score for each proposal and shall forward
these scores to Council for its consideration to select the successful
proponent.
14.0 TENDERS/RFPs THAT EXCEED THE BUDGET
14.1 Where a tender or RFP exceeds its budget, the applicable Department
Manager must take one of the following actions:
14.1.1 Recommend rejection of all Tenders or Proposals and re-tender; or
Amended A pril 25, 2022
14.1.2 With the CAO, jointly recommend that Council approve a transfer of extra
funding from other line items included in a budget approved by Council or
from reserves in order to accept the tender or proposal.
15.0 BONDING REQUIREMENTS
15.1 Contractors shall provide the specified surety bonds or certified cheques or
irrevocable letter of credit to the Town of Oliver.
15.2 A Bid Bond is to accompany Tenders and RFP’s.
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15.3 Performance and/or Labour and Material Bond is to be delivered to the Town
within ten (10) days of the date of notice on contract award.
15.4 The following chart outlines contract types as well as preferred Bond types:
Amended A pril 25, 2022
Contract Type
Bid Bond or
Cash
Equivalent
Performance
Bond
Labour & Material
Payment Bond
Construction, maintenance, or
service contracts under
$100,000
Nil Nil Nil
Construction contracts for
structural or miscellaneous
work over $100,000 & up to
$250,000
10% Nil Nil
Construction contracts over
$250,000
10% 50% Surety Bond 50%
Construction contracts for
other than standard structural
work including underground
work; or unusual or high risk
work on all types of contracts
10% 50% 50%
Maintenance or service
contracts over $75,000 per
year. If contract is for more
than one year, bid bond is
based on first 12 months cost
10% At discretion of
CAO and/or
Department
Manager
At discretion of CAO
and/or Department
Manager
Amended A pril 25, 2022
15.5 The above table is a guideline only. Depending on the anticipated risk of non-
performance bonding requirements may be increased, decreased or eliminated at
the discretion of the Department Manager or CAO.
16.0 SINGLE-SOURCE PURCHASES
16.1 A Department Manager may make purchases without inviting offers from
suppliers if:
16.1.1 there exists only a single supplier from whom the purchase can be
made;
16.1.2 the circumstances in which the purchase is required are extraordinary; or,
16.1.3 the circumstances in which the purchase is required involve an
emergency, which refers to an unexpected event that requires prompt
action.
16.2 A purchase made under Subsection 16.1.1 and 16.1.2 requires the approval of:
Amended A pril 25, 2022
16.2.1 the CAO for purchases not exceeding $100,000; or,
16.2.2 the Town Council for purchases exceeding $100,000.
Amended A pril 25, 2022
16.3 The CAO or designate is authorized to proceed with any purchase made
under Subsection 16.1.3 without soliciting proposals or tenders.
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17 IDENTICAL TENDER OR QUOTATION PRICES
17.2 Where the total price of two or more tenders or quotations are the same, awards
shall be made first to firms located in the Town of Oliver, second to firms
located in British Columbia, and third to firms located in Canada.
18.0 PREFERENCE FOR LOCAL SUPPLIERS
18.1 The intent of this policy is to ensure the Town receives the best value
possible on goods and services it procures. The Town supports local
merchants by encouraging the use of local suppliers and by purchasing
locally, where all things are equal.
18.2 The following priorities will be given where all things are equal, (i.e. after
giving due consideration to determining overall BEST Value):
18.2.1 Firstly - Locally
18.2.2 Secondly - Within the Province
18.2.3 Thirdly - Within Canada
18.2.4 Fourthly - Outside Canada
18.3 For the purpose of this policy, “local” shall mean in the order of preference as
listed below:
18.3.1 An in-town business with a local business license; or,
18.3.2 An Area “C” business with a local business license.
18.4 No percentage differences or dollar references will be given to purchasing
locally as that would represent a direct grant to local suppliers; however, full
consideration will be given to potential future costs or savings that may be
experienced by using a local supplier.
19.0 CONFIDENTIALITY
19.1 A total bid price is public information. However, it is considered unethical as well
as damaging to the Town’s position to allow unit price information from one
vendor to pass to another vendor.
19.2 Access to information shall be subject to provisions of the Freedom of
Information and Protection of Privacy Act.
20.0 ENVIRONMENTAL PURCHASING
In addition to the principles included in section 2, the Town of Oliver supports the use of
environmentally sustainable products and practices and expects staff to pursue this objective
in the acquisition of goods and services for the Town. This will be accomplished by ensuring
that the user departments review and modify existing specifications, and write new
specifications, to include environmentally sustainable choices subject to both suitability and
costs.
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20.1 General Principles
20.1.1 To specify products that do not harm the environment in their
manufacture, use or disposal (third party certification such as the “Eco
Logo” or “Energy Star” may be used.)
20.1.2 To consider the environmental facts along with price and performance.
20.1.3 To secure comprehensive, accurate and meaningful information about the
environmental performance of products or services sufficient to determine
environmental preference.
20.2 Procedures
20.2.1 Department staff (or delegate) will review and modify existing
specifications and write new specifications to include options for the
use of environmentally sound products and processes.
20.2.2 Environmentally preferred products must meet or exceed the same
engineered standards for the traditional products with respect to
performance, structural integrity, life span and safety.
20.2.3 The Town may be prepared to pay a premium (1% of budgeted cost or
$250, whichever is lower) for the environmentally friendly option, within
reason, but any significant impact on budgets must be appropriately
approved.
20.2.4 Department staff (or delegate) will remain alert to sources of recycled
materials, products made from recycled materials and other
environmentally beneficial products, bringing such information to the
attention of the Department Manager.
21.0 SURPLUS ASSET DISPOSAL
21.1 The Town of Oliver recognizes that assets purchased for its use will eventually
become surplus to its needs. These assets are deemed surplus due to:
Obsolescence
Worn out
Too costly to maintain
No longer used
Amended April 25, 2022
21.2 All surplus assets estimated to have a monetary value shall be disposed of by the
Finance Department upon the CAO’s approval, in the manner which will receive
the best possible return to the Town. Except for trade-ins, surplus assets valued in
excess of $10,000 shall be referred to Council stating reasons for disposal. Once
Council approval is received the Finance Department will dispose of the surplus
assets in a manner that will receive the best possible return to the Town.
21.3 All surplus assets shall be sold on an “as is/where is” basis. No warranties or
guarantees are to be offered or implied in the sale of the surplus assets.
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21.4 It is the responsibility of each Department Manager to notify the Chief Financial
Officer, in writing, of surplus assets. Where applicable, the list must contain make,
model and serial number. The Chief Financial Officer will provide this information
to Council via the council reading file.
21.5 Prior to disposition, a list of surplus assets will be circulated to all Town
departments to see if they can be of use in another department.
21.6 When deemed to be in the Town’s best interest, surplus assets will be traded in
on replacements.
21.7 Proceeds from the sale of surplus assets will be credited back to the
appropriate fund.
21.8 The sale of surplus assets, valued in excess of $200, to members of Council,
appointed officers, employees or their immediate families is prohibited unless the
assets have also been made available for the general public to purchase through
a competitive bidding process.
21.9 The sale of surplus assets valued below $200 will firstly be available to members of
Council, appointed officers and employees. The Chief Financial Officer will
determine the value of the asset and notify members of Council, appointed
officers and employees as to any interests in purchasing the asset. If more than
one person expresses interest in purchasing the asset the interested parties will
provide the Chief Financial Officer with a closed bid. The highest bidder will be
allowed to purchase the asset. If there are no interested parties, the asset will be
donated to a local charity.
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SCHEDULE “A”
REQUEST FOR PROPOSALS EVALUATION FORM
Proponent’s Name:
Project Title:
Evaluation Date: Evaluator:
Step 1: YES NO
Mandatories
Proposal received prior to closing
Sub-Consultant list
Project Manager identified
Project Team identified – Resumes included
Reference List
Workers Compensation Number provided
Sufficient number of proposal copies
Step 2: Assigned
Points Points
Proponent (15-30
points)
Qualifications of firm and project team members
Experience of firm and project team members
References
Resources
Proposal (30-50
points)
Scope
Methodology
Environmental Performance
Scheduling
Project Team - Level of Effort
Clarity of Proposal
Price (20-50 points)
Consideration of Price Presented Price = (lowest cost
proposal divided by proposal being evaluated) x (%
weight)
Total Score Proponent + Proposal + Price Scores 100
[Review and add any specific items that should be in the mandatory section or Specific items
for the proposal related to the project]
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Purchasing and Sales Policy
Evaluation Team Members shall use the following list of questions to complete the RFP
Evaluation Form:
Proponent Evaluation – 15 to 30 Points Total
(i) Qualifications of Firm and Project Team Members:
Are the firm and project team members specialized and qualified in the nature of the
project work?
(ii) Experience of Firm and Project Team Members:
Has the firm completed similar projects during the last three years? Do the assigned
project team members have experience with similar projects?
(iii) Past Performance:
Is the firm’s record of past performance sound? Do reference checks reveal
weaknesses? Was abnormal level of monitoring required? Does the firm consistently
complete assignments on time and within budget?
(iv) Resources:
Does the firm have ample resources (e.g. staff, equipment, etc.) to apply to this
project?
Proposal Evaluation – 30 to 50 Points Total
(i) Scope:
Do the objectives, scope, work plan, and prediction of results comply with the
terms of reference and project objectives?
(ii) Methodology:
Is the methodology clear and in sufficient detail to cover all necessary aspects? Does
the proposal reflect the required understanding of the project? Is each task clearly
outlined and in logical sequence?
(iii) Environmental Performance
What is the environmental burden and unit cost of a product or service, from its
design through to production and then final disposal?
(iv) Scheduling:
Does the proposal indicate that the achievement of objectives will be met according
to an acceptable schedule? Are they within the timelines set by the terms of reference
(if outlined in the terms of reference)? Are problems or delays accounted for? Is timing
realistic for the project?
(v) Project Team:
Is the level of effort (total hours) adequate, low or high? Are the hours of professionals
involved adequate, low or high? Is the proportion of professional vs. technical hours
adequate or appropriate?
(vi) Clarity of Proposal:
Is the proposal clear, concise, and logical?
Price Evaluation – 20 to 50 Points Total
(i) Total Price
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APPENDIX 1
Environmental Performance Decision Criteria
Basic evaluation criteria for rationalizing the purchase of environmentally sound
alternatives:
(i) Does the alternative product meet or exceed the minimum required performance
specifications? (e.g) durability, safety, structural integrity. (If no, use the conventional
product; if yes move to (ii)).
(ii) Is the unit pricing of the alternative product equal, or less than, the conventional
product? (If yes purchase the alternate product; if no move to (iii)).
(iii) What is the total annual cost differential of using the alternate product instead of the
conventional? (If the effect on budget is nominal use the alternate product; if the
effect on budget is more than nominal go to (iv)).
(iv) By using the alternate product are there any offsetting benefits that can be clearly
measured and recorded in cost avoidance accruing to the same Business Unit, or to
other business Units and, if so, do those benefits equal or exceed the extra
acquisition costs? (If yes purchase the alternate product; if no go to (v)).
(v) Are there any other benefits that are not measurable in any direct monetary sense
but are benefits that we ought to realize for other on-pecuniary reasons?,
e.g. “green benefits” such as reduced pollution, air emissions, effluent release,
recyclable & disposal issues etc. (If no, purchase the conventional product; if yes
define those reasons and report them through established reporting channels to
get the increased budget commitment approved. In either case go to (vi).
(vi) If acquisition of the alternative product at the higher cost is approved purchase the
alternate product; if not purchase the conventional product.